AstroNova Inc (NASDAQ:ALOT) Q2 2021 Earnings Conference Call - Final Transcript

Sep 09, 2020 • 09:00 am ET

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AstroNova Inc (NASDAQ:ALOT) Q2 2021 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, good morning and welcome to the AstroNova's Second Quarter Fiscal 2021 Financial Results Conference Call. [Operator Instructions]

I will now turn the call over to Mr. David Calusdian, of the company's Investor Relations firm, Sharon Merrill. Please go ahead, sir.

Executive
David Calusdian

Thank you, David. 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 make a few comments on the financials, Greg will make 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 historical statements of historical facts 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, September 09, 2020.

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 will now turn the call over to Greg.

Executive
Greg Woods

Thank you, David. Good morning, everyone and thank you for joining us today. While the COVID-19 pandemic has generated significant challenges for all of us, I'd like to start the call today by thanking our employees around the world for their commitment and extraordinary efforts and adapting to this new reality. The team's adherence to our core values and the structure of the AstroNova operating system has led to the implementation of several innovative ways to address these challenges. I will highlight a few of these examples in today's comments.

Now let's get into the drivers of our second quarter performance. Starting with our largest segment, Product Identification, which accounts for nearly 80% of our business, revenue was down by 2% from the second quarter of fiscal 2020 and by about 3% from the sequential first quarter of fiscal 2021. This segment traditionally relies heavily on tradeshow participation, in-person sales calls and product demos to generate demand. For the stay-at-home mandate, social distancing measures, and bans on large gatherings severely restricted those marketing opportunities, particularly at the beginning of the quarter.

However, as we moved through the quarter, the Product Identification team made good progress adapting to the COVID challenges by accelerating the transition to digital business practices. This switch to digital combined with the customer enthusiasm for our recently refreshed printer offerings resulted in a solid pick up in printer sales and supplies