AstroNova finalizes separation agreement with former CEO Gregory Woods

AstroNova, Inc. (NASDAQ:ALOT), a $85 million market cap technology company generating annual revenues of $156 million, announced Monday that it has entered into a separation agreement with former President and Chief Executive Officer Gregory A. Woods, whose resignation and departure from the board were previously reported on June 29. According to InvestingPro data, the company is currently facing profitability challenges, with negative earnings per share of $2.13 over the last twelve months. According to a press release statement and details in the company’s SEC filing, Mr. Woods’ employment officially ended on July 16.

Under the terms of the separation agreement, Mr. Woods will receive half of his current base salary and half of his vehicle allowance, paid biweekly over a 52-week period, excluding bonuses or other incentives. All outstanding and unvested time-based restricted stock units, as well as certain performance-based units, will continue to vest for 12 months following his separation in line with their original schedules. Despite current challenges, InvestingPro analysis shows the company maintains a FAIR financial health score, with a solid current ratio of 1.67 and manageable debt levels. Stock purchase options specified in the agreement will remain exercisable until the earlier of the tenth anniversary of their grant date or July 16, 2026.

AstroNova will subsidize 100% of the cost of COBRA health coverage for Mr. Woods and his spouse for up to 12 months or until alternative coverage is obtained. If either becomes eligible for Medicare during this period, the company will reimburse Medicare premiums up to a combined maximum of $2,021.89 per month, subject to certain conditions.

Mr. Woods is required to provide up to 20 hours per week of transition assistance to AstroNova’s management for one year, if requested, and to cooperate in company proceedings related to its acquisition of MTEX New Solution S.A.

The agreement also provides for payment of accrued and unused paid time off and reimbursement of business expenses incurred before June 29, 2025.

The separation agreement includes a customary release of claims in favor of AstroNova by Mr. Woods. The company stated that certain confidential portions of the agreement were omitted from the public filing.

This information is based on a press release statement and the company’s Form 8-K filed with the Securities and Exchange Commission.

In other recent news, AstroNova Inc. reported a 14.4% increase in revenue for the first quarter of fiscal year 2026, reaching $37.7 million. Despite this growth, the company experienced a net loss of $400,000, equating to a loss of $0.05 per share. AstroNova has been actively restructuring its executive incentive plans, with amendments made to its Senior Executive Short-Term Incentive Plan to align better with financial metrics like operating cash flow. Additionally, the company has granted Stock-Settled Performance Awards to key executives, including CEO Gregory Woods and CFO Thomas DeByle, based on specific performance goals. The board of AstroNova rejected a settlement proposal from activist investor Samir (CSE:SAM) Patel, who is pursuing a proxy contest for board control. The company acknowledged that its MTEX acquisition did not meet expectations but stated that corrective actions are in place. AstroNova has also updated its incentive plan to more accurately reflect its financial performance, incorporating changes in inventory and accounts receivable into its performance metrics.

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