Improved Margins and Cash Generation
The company reported meaningful improvements in margins and cash generation, with gross margin expanding 240 basis points year-over-year and 400 basis points sequentially. Cash provided from operations was $3.4 million.
Product ID Segment Growth
Product ID segment showed year-over-year revenue growth, with a 14% increase in the Astra machine sales and a nearly 5% increase in legacy desktop label printer sales.
Strong Aerospace Segment Performance
Aerospace operating income was $4.5 million, up 39% from last year, driven by cost reductions and a shift towards the ToughRider systems. Orders in aerospace increased 24% year-over-year.
Debt Reduction and Refinancing
The company paid down $3.2 million in debt during the quarter and reduced debt by $6.4 million year-to-date. They refinanced their credit facility, extending maturity to 2028, and consolidating foreign debt into the US.