By Katherine Hamilton
AstroNova is restructuring and letting go of 10% of its employees in an effort to save $3 million.
The data-visualization company said Thursday it plans to make the job cuts primarily in its product identification segment. It also plans to cut about 70% of its MTEX product portfolio in Portugal, as that operation has been underperforming, AstroNova said. It has integrated MTEX's sales marketing and customer support functions into its global teams.
The restructuring comes as AstroNova is experiencing lower sales in certain areas, including product identification, the company said. It is expecting fourth-quarter revenue of $37.4 million, below the $39.6 million it earned in the same period a year earlier. Revenue was also down by a longer-than-anticipated ramp up of orders following a strike at Boeing.
A waiver and amendment to the company's revolving credit facility and term loans with Bank of America. The change waives certain covered covenants, provides more relaxed financial covenant ratios in fiscal 2026 and allows AstroNova to make smaller payments on certain term loans while it restructures.
AstroNova is integrating new print engine technology into product identification and MTEX, which it expects to complete by the end of the year and aims to lower the total cost of ownership for those products.
The company also wants to increase ownership of consumables, convert certain products to streamline operations and optimize leadership.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
March 20, 2025 17:39 ET (21:39 GMT)
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