AstroNova Inc (NASDAQ:ALOT) Q3 2020 Earnings Conference Call - Final Transcript
Dec 04, 2019 • 09:00 am ET
Good day and welcome to the AstroNova's Third Quarter 2020 Financial Results Conference Call. Today's conference is being recorded.
At this time, I would like to turn the call over to Scott Solomon from the Company's Investor Relations firm, Sharon Merrill Associates. Sir, please go ahead.
Thank you Brittany. Good morning everyone and thank you for joining us. Hosting this morning's call are Greg Woods, AstroNova's President and CEO, and David Smith, the company's Chief Financial Officer. Greg will discuss the company's operating results, David will take you through the financials, Greg will make some concluding comments, and then management will be happy to take your questions. By now you should have received a copy of the earnings release that was issued today. If you do not have a copy, please go to the Investors section of the AstroNova website, www.astronovainc.com.
Please note that statements made during today's call that are not -- statements of historical fact are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1934. These forward-looking statements are based on a number of assumptions that could involve risks and uncertainties, accordingly, actual results could differ materially, except as required by law. Any forward-looking statements speak only as of today, December 4, 2019. The company undertakes no obligation to update these forward-looking statements.
For further information regarding the forward-looking statements and the factors that may cause differences, please see the Risk Factors in AstroNova's annual report on Form 10-K and the other filings the company makes with the Securities and Exchange Commission.
I'll now turn the call over to Greg.
Thank you, Scott. Good morning, everyone. Thank you for joining us on today's call.
AstroNova's third quarter results reflected a continuation of the industry headwinds that affected revenue mix and margins in both our product identification and test and measurement segments in the second quarter of this fiscal year. As noted on our Q2 call, these near term challenges do not compromise our confident positive outlook or the strong secular tailwinds that we believe position us well for long term profitability and growth.
We continue to focus on accelerating revenue growth in areas not impacted by these specific headwinds and on improving operational efficiencies throughout the company. Additionally, we are continuing to invest in new products and technologies as well as strengthening our global talent to achieve our long term strategic objectives.
Looking at our segments Test and measurement continued to be adversely affected by the ripple effect related to the grounding of the 737 MAX which has been idled since March. As we discussed on our Q2 call, this grounding affects us not only in terms of new installs, but also deferrals on optional maintenance and retrofit printer upgrades to aircraft that are needed to fill the void until the MAX returns to service. As to when that will be, the status of the situation is well covered by the industry and general business press. Based on that information, we expect that