Astro-Med, Inc. (Astro-Med), a patient monitoring devices company, has reported net sales of $71.7 million for the full year of fiscal 2009, compared with the net sales of $72.3 million in the previous year-end. It reported net income of $2.9 million, or $0.40 per diluted share, for the full year of fiscal 2009, compared with the net income of $4.3 million, or $0.57 per diluted share, in the previous year-end.
Fourth Quarter ended January 31, 2009, company reported net income of $263,000, equal to $0.04 per diluted share on sales of $15,631,000. During the comparable period of the previous year, the Company reported net income of $1,340,000, equal to $0.18 per diluted share on sales of $18,131,000.
Net income in the prior year’s fourth quarter included a restructuring charge of approximately $316,000 after tax equal to $0.04 per diluted share. The previous year’s Fourth Quarter net income also included a tax benefit of $739,000, equal to $0.10 per diluted share related to the closing of our sales and service offices in Italy and the Netherlands.
Further to the restructuring charge, net income in the prior fiscal year includes tax benefits of $1,185,000 or $0.15 per diluted share due to favorable reduction of certain income tax examinations as well as benefits related to the disposition of the Company’s subsidiary in Italy, noted above.
Commenting on the results, Albert W. Ondis, chief executive officer, said, “For the year which ended January 31, 2009, the Company achieved sales of $71,783,000, improved Gross Profit Margins to 43.3%, raised the operating income margin to 6.4% and earned net income of approximately $3,000,000 or $.40 per diluted share. In addition, the Company added $4,500,000 to its cash and marketable securities balance of $22,105,000 to maintain a current ratio of 6.08:1. During the year we introduced four new major products, strengthened our field sales organization and formalized our acquisition strategy. Astro-Med’s focus and energy will continue to center on achieving our Mission of customer-centered sales growth, increased profitability, and enhanced shareholder value.
“As we stated in our preliminary earnings and sales statement of February 18, 2009, the effects of the economic slowdown were rather broadly felt, particularly in our QuickLabel Systems product lines. QuickLabel Systems products, which serve the packaging industry, are closest to retail markets so that QuickLabel product demand fluctuates with consumer demand. As retail consumers cut back on purchases in all geographic markets, sales of our label printing consumables and label printers slowed significantly. The sales decline was felt most in the United States, but our export sales were also affected.
“We also felt a rather sudden slow down in sales of our Test & Measurement product lines since these data recorder and telemetry products are considered capital equipment purchases, and many businesses and organizations applied the brakes quite summarily to such purchases. Sales of our Ruggedized Products line, consisting principally of the special cockpit printers we make for aircraft such as the new Boeing 787, the Airbus A380, and certain models of the Boeing 747 and Boeing 777, were negatively impacted by the well-publicized production delays at both Boeing and Airbus. Demand was also impacted by the slow down in passenger air travel which has led the airlines to postpone new airplane deliveries.”
However, in the face of these negative developments, Ondis concluded, “Our Grass Technologies product lines achieved strong sales as our sleep diagnostic and other neurological diagnostic and research products gathered increased acceptance from customers around the world.”
Ondis described a program of cost-reduction now underway at Astro-Med. “Notwithstanding the favorable news from our Grass Technologies product line, we have already instituted an austerity program to mitigate the effects of the business slowdown. Included and already in effect are wage and salary freezes, layoffs, and a general reduction in the working hours of most of our employees involved in production. We are continuing all R&D activities as we believe that the development of advanced new products will promote the growth and profitability of Astro-Med,” said Ondis.