12/10/2025

speaker
Operator
Conference Operator

Greetings. Welcome to Astronova's third quarter fiscal year 2026 financial results. At this time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note, this conference is being recorded. At this time, I'll turn the conference over to Deborah Pulaski, Investor Relations for Astronova. Thank you, Deborah. You may now begin.

speaker
Deborah Pulaski
Investor Relations

Thank you, and good morning, everyone. We certainly appreciate your interest in Astro Nova, and thank you for sharing your time with us today. Joining me on our call are Yorick Itman, our President and Chief Executive Officer, and Tom DeBile, our Chief Financial Officer. You should have earnings released across the wires earlier this morning, as well as the slides that will accompany our conversation today. If not, you can find these documents on the Investor Relations section of our website, astronovainc.com. Please turn to slide two to review cautionary statements. As you are likely aware, during the formal presentation as well as the Q&A session, management may make some forward-looking statements about our current plans, beliefs, and expectations. These statements apply to future events that are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from what is stated here today. These risks, uncertainties, and other factors are provided in the earnings release as well as in other documents filed by the company with Securities and Exchange Commission. These documents can be found on our website or at sec.gov. Also, as noted on the slide, management will refer to some non-GAAP financial measures. We believe these will be useful in evaluating our performance. However, you should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. You can find reconciliations of non-gap measures with comparable gap measures in the tables that accompanies today's release and slides. So now if you will turn to slide three, I'll turn the call over to Yorick to begin.

speaker
Yorick Itman
President and Chief Executive Officer

Yorick? Thank you, Debbie. Good morning, everyone, and thank you for joining us today. Our third quarter results are an early demonstration of our execution on the plan to transform Astronova. Our priorities remain focused on improving customer engagement, strengthening operational performance, and building a culture of accountability and urgency. While we're early in our transformation efforts, there were clear signs of progress across both segments in the quarter, including meaningful improvements in margins and cash generation. I am encouraged by the momentum we're building inside the organization. If you turn to slide four, I will talk through sales by segment. Product ID delivered year-over-year revenue growth in Q3, supported by improved execution across the business. Our mill and sheet flat pack printer business, or Astra Machine, performed well, with sales up 14% as productivity improvements enabled increased shipment cycles. We also had higher shipments sequentially of direct-to-package overprint printers, including the redesigned AJA 800. Sales increased as updated systems reached customers and we continued to gain valuable feedback. The reorganization of commercial sales, which focused separate teams on customer retention and customer acquisition, has gained traction. Sales of our legacy desktop label printers increased nearly 5% over last year's third quarter and was up 6% over the second quarter of this fiscal year. We are improving engagement by our existing customers. reconnecting with customers we had previously lost, and developing a clearer understanding of the sales cycles for our newer, higher-value printer platforms. We also continue to advance and validate our next-generation print solutions. With upgraded Emtex units now in customer environments, we are gaining insight we need to refine the product and ensure our offering meets customer expectations. Turn to aerospace. The business maintained its leading market position with major aircraft manufacturers. We continue to make progress transitioning customers to our top rider product family. Customer adoption remains strong, and shipments of the top rider exceeded 80% of total flight deck printer in the quarter. We also saw healthy demand patterns this last quarter. Orders increased 24% year over year, and we benefited from improving production schedules at our major OEMs. Aerospace remains a stable and profitable business for us, and we expect industry build rates to remain a positive tailwind as we head into the fourth quarter and fiscal 2027. Across Estranova, we continue to strengthen our culture around customer centricity, transparent communication, and disciplined operating focus. With that, I will turn it over to Tom to review the financials.

Disclaimer

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Investor presentation