Nature of Operations, Segment Reporting and Geographical Information

12 Months Ended

Jan. 31, 2023

Segment Reporting [Abstract]

Nature of Operations, Segment Reporting and Geographical Information

Note 18—Nature of Operations, Segment Reporting and Geographical Information

Our operations consist of the design, development, manufacture and sale of specialty printers and data acquisition and analysis systems, including both hardware and software and related consumable supplies. We organize and manage our business as a portfolio of products and services designed around a common theme of data acquisition and information output. We have two reporting segments consistent with our revenue product groups: Product Identification (“PI”) and Test & Measurement (“T&M”).

Our PI segment produces an array of high-technology digital color and monochrome label printers and mini presses, labeling software and supplies for a variety of commercial industries worldwide and includes our newly acquired Astro Machine. AstroNova’s T&M segment produces data acquisition systems used worldwide for a variety of recording, monitoring and troubleshooting applications for many industries including aerospace, automotive, defense, rail, energy, industrial and general manufacturing. The T&M segment also includes our line of aerospace flight deck and cabin printers.

Business is conducted in the United States and through foreign branch offices and subsidiaries in Canada, Europe, China, Southeast Asia and Mexico. Manufacturing activities are primarily conducted in the United States. Revenue and service activities outside the United States are conducted through wholly owned entities and, to a lesser extent, through authorized distributors and agents. Transfer prices are intended to produce gross profit margins as would be associated with an arms-length transaction.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies herein. We evaluate segment performance based on the segment profit before corporate and financial administration expenses.

Summarized below are the revenue and segment operating profit (loss) (both in dollars and as a percentage of revenue) for each reporting segment:

($ in thousands)	Revenue						Segment Operating Profit (Loss)								Segment Operating Profit (Loss) as a % of Revenue
	2023		2022		2021		2023			2022		2021			2023			2022			2021
Product Identification	$	103,089	$	90,915	$	90,268	$	7,889		$	10,411	$	12,885			7.7	%		11.5	%		14.3	%
T&M		39,438		26,565		25,765		8,989			3,398		(1,032	)		22.8	%		12.8	%		(4.0	)%
Total	$	142,527	$	117,480	$	116,033		16,878			13,809		11,853			11.8	%		11.8	%		10.2	%
Corporate Expenses								11,435			9,553		9,420
Operating Income								5,443			4,256		2,433
Other Income (Expense), Net								(2,033	)		2,778		(254	)
Income Before Income Taxes								3,410			7,034		2,179
Income Tax Provision								749			605		895
Net Income							$	2,661		$	6,429	$	1,284

No customer accounted for greater than 10% of net revenue in fiscal 2023, 2022 or 2021.

Other information by segment is presented below:

(In thousands)	Assets
	January 31,
	2023		2022
Product Identification	$	69,607	$	51,732
T&M		60,730		50,374
Corporate*		8,870		12,849
Total	$	139,207	$	114,955

* Corporate assets consist principally of cash, cash equivalents, deferred tax assets and refunds, and certain prepaid corporate assets.

(In thousands)	Depreciation and Amortization						Capital Expenditures
	2023		2022		2021		2023		2022		2021
Product Identification	$	2,219	$	1,157	$	1,835	$	121	$	847	$	1,563
T&M		1,697		2,837		4,148		108		949		1,024
Total	$	3,916	$	3,994	$	5,983	$	229	$	1,796	$	2,587

Geographical Data

Presented below is selected financial information by geographic area:

							Long-Lived Assets*
(In thousands)	Revenue						January 31,
	2023		2022		2021		2023		2022
United States	$	91,917	$	68,185	$	70,911	$	34,277	$	29,131
Europe		31,021		31,922		29,029		1,230		1,486
Canada		8,393		6,519		5,574		4		9
Asia		5,345		5,926		5,105		9		15
Central and South America		4,589		3,271		3,950		—		—
Other		1,262		1,657		1,464		—		—
Total	$	142,527	$	117,480	$	116,033	$	35,520	$	30,641

* Long-lived assets exclude goodwill assigned to the T&M segment of $4.5 million at both January 31, 2023 and 2022 and $10.1 million and $7.6 million assigned to the PI segment at January 31, 2023 and 2022, respectively.