AstroNova implement realignment of Product Identification segment

AstroNova announced the implementation of a realignment of its Product Identification, or PI, segment. The realignment is designed to streamline the cost structure and enhance the operational efficiencies of the segment to capitalize on the synergies of the company’s Astro Machine, Inc. subsidiary, which was acquired in August 2022. As part of the realignment, AstroNova will transition more PI printer manufacturing from both Asia and its West Warwick, Rhode Island plant to the Astro Machine facility in Elk Grove Village, Illinois. In addition, AstroNova will exit certain older, lower-margin or low volume PI products to focus on expanding the sales of higher margin product lines with more advanced functionality and greater demand. Related initiatives include consolidation of international PI sales and distribution facilities and streamlining of AstroNova’s channel partner network, as well as acceleration of the ongoing printer retrofit program to restore printers sidelined due to a supplier’s ink quality issue. The actions being announced are expected to generate more than $2.4M in annualized savings for AstroNova. To realize these ongoing improvements, the Company will incur a pre-tax restructuring charge of approximately $3.2M, of which approximately $1.7M will be non-cash. A substantial portion of the restructuring charge will be recorded in the company’s Q2 financial results for the three months ended July 29.