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WEST WARWICK, R.I. - AstroNova Inc. (NASDAQ:ALOT), a $69 million market cap technology company whose shares have declined nearly 33% over the past six months according to InvestingPro data, announced that its board of directors has rejected a settlement proposal from activist investor Samir Patel, who is pursuing a proxy contest to gain board control ahead of the company’s July 9 annual meeting.
In a letter to shareholders, Lead Independent Director Richard S. Warzala stated that while the board shares many of Patel’s concerns about company performance - including the company’s unprofitability over the last twelve months as highlighted by InvestingPro analysis - it had already begun addressing these issues before Patel initiated his proxy fight.
The data visualization technology company, which generates annual revenue of $156 million and maintains a Fair financial health score according to InvestingPro metrics, said it has taken several corrective actions, including hiring a new CFO in June 2024, strengthening leadership in its Product Identification segment, realigning its operating structure, and restructuring its compensation program. Investors seeking deeper insights into AstroNova’s financial health and growth potential can access comprehensive Pro Research Reports, available exclusively on InvestingPro.
Warzala noted that the company’s board attempted to find a "collaborative and amicable approach" to resolve what it described as "an ill-advised proxy contest that proposes a takeover of the Company without a takeover premium to shareholders." According to the letter, Patel "wholeheartedly rejected" these settlement efforts.
The board acknowledged that the company’s MTEX acquisition "did not go as planned" despite extensive due diligence, but maintained that corrective actions have been implemented to address the issues.
AstroNova urged shareholders to vote for its six director nominees on the white universal proxy card at the upcoming annual meeting. The company has filed its definitive proxy statement with the SEC in connection with the meeting.
This article is based on a press release statement from AstroNova Inc.
In other recent news, AstroNova, Inc. reported a 14.4% increase in revenue for the first quarter of fiscal year 2026, totaling $37.7 million. Despite achieving strong revenue growth, the company experienced a net loss of $400,000, or $0.05 per share. AstroNova has also amended its Senior Executive Short-Term Incentive Plan to include financial elements like inventory changes, aligning performance metrics with first-quarter reporting. Additionally, the company announced amendments to its incentive plan and granted stock awards under its 2018 Equity Incentive Plan, with awards tied to performance goals such as cumulative organic sales growth and adjusted EPS. These strategic adjustments are part of AstroNova’s ongoing efforts to align executive compensation with operational performance and shareholder interests. Furthermore, the company maintains a strong liquidity position with $12.6 million, including $5.4 million in cash. The company’s proactive measures reflect its commitment to maintaining robust financial practices and its strategic focus on delivering long-term shareholder value.
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