AstroNova, Inc. (NASDAQ:ALOT) Q2 2024 Earnings Call Transcript

Samir Patel: Got it. And then I know we’ve talked about this before, is there — with where you are right now with the retrofits, do you have any sort of sizing around how much of an impact those issues are to your revenue in the PI segment? Put differently, like, you did $26 million this quarter, give or take. Where would you see that figure once you get those retrofits done, kind of based on the supply of the printers that are offline and the supplies that you’re not selling?

Gregory Woods: Yes. We haven’t given guidance on that. What I can tell you is the two-two Cs that are primarily the ones that have the highest volume that are impacted by that. They typically generate in the neighborhood of $20,000 a year in revenue. And there’s roughly — I think we’re about halfway through that upgrade program. So as far as units that are touched. So one thing to keep in mind, too, is once we upgrade it, then they need to use the ink supplies and/or label supplies that they have in-house before they buy more. So there’s a bit of a ramp-up in that process.

David Smith: Yes. And Samir, it’s David. I’ll just comment that, obviously, to take a step like this, where we are moving rapidly to spend all this money, we are expecting a return on that. It’s a good economic decision to do it. The faster we do it, we’re faster, we’ll get the money back and I think it’s pretty high — we think it’s a pretty high-return endeavor from a cash flow perspective.

Samir Patel: Okay. That makes sense. That’s helpful.

Operator: Thanks, Samir. At this time, we have no further questions registered. So with that, I will hand back to Greg Woods for final remarks.

Gregory Woods: Great. Well, thank you, everyone, for joining us here this morning, and we look forward to keeping you updated on our progress. Have a good rest of the day. Bye now.

Operator: This concludes today’s call. Thank you for your participation. You may now disconnect your lines.