Good morning and welcome to the AstroNova First Quarter Fiscal 2021 Financial Results Conference Call. I will now turn the call over to David Calusdian, President of the company’s Investor Relations firm, Sharon Merrill.

Thank you. Good morning, everyone and thank you for joining us. Hosting this morning’s call are Greg Woods, AstroNova’s President and CEO and David Smith, the company’s Chief Financial Officer. Greg will discuss the company’s operating results, David will make a few comments on the financials, Greg will make concluding comments and then management will be happy to take your questions. By now, you should have received a copy of the earnings release that was issued today. If you do not have a copy, please go to the Investors section of the AstroNova website, www.astronovainc.com. Please note that statements made during today’s call that are not historical statements of historical facts are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1934. These forward-looking statements are based on a number of assumptions that could involve risks and uncertainties. Accordingly, actual results could differ materially, except as required by law. Any forward-looking statements speak only as of today, June 11, 2020. The company undertakes no obligation to update these forward-looking statements. For further information regarding the forward-looking statements and the factors that may cause differences, please see the risk factors in AstroNova’s annual report on Form 10-K and the other filings the company makes with the Securities and Exchange Commission. I will now turn the call over to Greg.

Thank you, David. Good morning, everyone and thank you for joining us today. These are unprecedented and difficult times, particularly for those on the frontlines of the COVID-19 crisis. But before we get into the details of the quarter, let me publicly acknowledge the doctors, nurses and other healthcare first responders in our home state of Rhode Island and around the world for their heroism and personal sacrifice in battling the pandemic. At AstroNova, the health and well-being of our employees is a top priority. I am pleased to report that the early actions we took to shift the significant number of our global team to offsite working, while enhancing our cleaning and protection procedures in line with government and health agency requirements that our production facilities have proven to be successful. Throughout our facilities around the world, we have maintained production while keeping the health and safety of our employees, customers, suppliers and communities at the forefront of our attention. I want to recognize the entire AstroNova team for their unyielding commitment during this unique period. They have done an outstanding job supporting our customers and one another. Their dedication makes it possible for us to continue providing our customers with the highest quality products and services everyday. Not surprisingly, our first quarter results reflected the widespread economic disruption caused by COVID-19, which has touched virtually every industry in nearly every geographic region. In terms of our business, the impact was most pronounced in the aerospace unit of our test and measurement segment. Test and measurement revenue was down about $4 million or 30% from the same period a year earlier. The effect of the virus on test and measurement in Q1 has only compounded the disruption created last year by the extended grounding of the Boeing 737 MAX…

Thank you, Greg and good morning everybody. Rather than repeating all of the numbers in this morning’s earnings release, let me highlight some of the cost control initiatives that Greg alluded to in his remarks. As noted on our Q4 call, in response to lower volume – lower sales volume related to the 737 MAX grounding, we began implementing a 5% headcount reduction and other measures expected to generate savings of approximately $1.5 million to $2 million on an annualized basis from the run-rate towards the end of last year. This quarter, once the COVID-19 situation became clearer, we announced additional cost reductions that included an across the board freezing of executive employee compensation at 2019 levels. We also applied for and received a $4.4 million loan from the small business administration’s Paycheck Protection Program, which has put us in a significantly better liquidity position and we expect to be able to comply with all the terms of that program. With the aircraft OEMs now bringing down their build forecasts, we are as Greg said evaluating additional cost reductions given that the industry will take some time to recover once the pandemic is behind us. From an expense perspective, it’s worth noting that due to decline in aerospace printer volume in the quarter, the royalty payments to Honeywell on our asset purchase and license agreement were lower than last year’s first quarter by $600,000. In addition by pushing out some projects, we have been able to reduce outside service and consulting arrangements, the impact of COVID on trade shows, some related advertising expenses and lower company travel along with lower incentive compensation, all reduced variable expense spending. All of this combined with the impact of the more permanent changes I referenced a minute ago resulted in an overall operating profit…

Thanks, David. In summary, we continue to take steps to mitigate the financial impact of COVID-19 on our business, while preserving and improving liquidity. We have accelerated some of those cost reduction measures in recent weeks to align with adjustments in certain customer forecasts. At the same time, we remain committed to supporting our key strategic objectives so that we are well-positioned to take advantage of future growth opportunities post-COVID. Based on the current environment, we expect results in the second quarter of FY 2021 to be weaker than the first quarter. We anticipate gradually improving results beginning in the second half of the year contingent on the resumption of business investment and economic recovery in our end markets. With that, David and I will be happy to take your questions.

Thank you. [Operator Instructions] We will take our first question from Dick Ryan of Dougherty & Company.

Thank you. Hey, Greg on the outlook for Q2 sequentially weaker is that for both segments or there is one going to perform a little better than the other?

It’s again particularly be driven by the aerospace reduction there, Dick, it’s as you know Boeing just announced May 27 the restart the MAX, so that’s pretty late in the game as the slow ramp up, so primarily driven by the aerospace drop off.

Okay. How will product ID look sequentially?

Again, it’s a little bit hard to tell on the hardware side and on the supplies as I mentioned in my comments that seems to be holding up fairly well. I mean again in these kind of times, it’s hard to predict everything exactly. Right now, if you look at our variability band about our forecast, it’s wider than I have seen it since I have been at AstroNova, but we are encouraged by the results so far and that continued into many. We have no reason to think it’s going to make a dramatic turn one way or another. We think it should to continue on the trend that is on.

Okay. How was the – can you tell what the inventory is like for the flight deck printers from Boeing’s perspective. I mean, when they increase their production, will you see it immediately or is there printers in inventory that it may hit you a little bit later?

As far as we know, Boeing has a fairly low inventory especially with the MAX with regard to our printers mainly because they are purchased by the airlines themselves when their planes are coming down the production line. So, we actually get the order from the airline itself, because it’s a buyer furnished equipment. So, ABC airlines would say we need 5 printers, they would place the order on us and we would ship to Boeing. So they are all – everyone is well aware at this point of what the production rate is at Boeing. So all of those forecasts have been adjusted as far as we know there shouldn’t be much inventory buildup.

Okay. Hey, Dave, I missed your comments on the credit facility, are you working on a new one and how are you sitting with your covenants?

Dick, my comment on the script was that we are in the process of working through that. We expect to do so successfully. It’s still in process and we will have more to disclose when we file the 10-Q shortly. I don’t want to get into the details of where we stand, but I do think it will be resolved successfully.

Okay, great. Thank you.

Thanks, Dick.

Thank you. At this time, I would like to turn the call over to Gregory Woods for closing remarks.

Okay. Thank you all for joining us here this morning. We look forward to keeping you updated on our progress and stay well.

Thank you. This concludes today’s conference. You may now disconnect.