SOURCE: Astro-Med, Inc.

November 14, 2006 16:16 ET

Astro-Med Reports Record Third Quarter Earnings; Directors Declare Regular Cash Dividend

WEST WARWICK, RI -- (MARKET WIRE) -- November 14, 2006 -- Astro-Med, Inc. (NASDAQ: ALOT) reports net income of $3,977,000, equal to 53 cents per diluted share, on sales of $16,043,000 for the Third Quarter ended October 28, 2006. Net income in the quarter includes a gain of $3,125,000 after taxes and related costs, equal to 42 cents per diluted share on the sale of the Company's excess real estate. Excluding the real estate related gain, net income in the Third Quarter was $852,000, equal to 11 cents per diluted share. Net income in the quarter includes an expense of approximately $93,000, after tax, equal to 1 cent per diluted share for stock-based compensation as well as a tax benefit of $231,000, or 3 cents per diluted share due to favorable adjustments identified in the filing of the prior year tax return.

During the corresponding period of the previous year, the Company reported net income of $674,000, equal to 9 cents per diluted share, on sales of $14,455,000. Net income in the prior year fiscal quarter includes $361,000, equal to 5 cents per diluted share, for a tax-related benefit due to the favorable resolution of certain income tax examinations.

For the nine-month period of the current fiscal year, net income was $5,260,000, equal to 71 cents per diluted share, on sales of $47,951,000. Excluding the real estate related gain, earnings were $2,135,000, equal to 29 cents per diluted share. Net income for the nine-month period includes an expense of approximately $266,000, after tax, equal to 4 cents per share, for stock-based compensation as well as $231,000, or 3 cents per diluted share, related to favorable adjustments noted above.

For the corresponding period of the prior year, the Company reported net income of $1,694,000, equal to 23 cents per diluted share, on sales of $43,297,000. Net income in the prior year includes $361,000, equal to 5 cents per diluted share, for a tax-related benefit due to the favorable resolution of certain income tax examinations.

Commenting on the results, Albert W. Ondis, Chief Executive Officer, stated: "The Company continued its positive and upward performance during the Third Quarter. New Bookings of $16,008,000 were up 12% over the previous year with strong customer demand evident for all products. Sales reached double digit growth in the quarter with Revenues at $16,043,000, rising 11% over the prior year. Our backlog remains healthy at $7,666,000, a 38% increase from year end. During the Third Quarter we successfully concluded the profitable sale of our excess real estate, relocated our Grass Technologies operation to a more appropriate lower cost facility, and consequently added $5.2 million to our cash balances. Operating Income excluding the gain related to the sale of the real estate in the Third Quarter was $628,000, a 31% improvement over the same quarter of the previous year and we achieved a record Quarterly Net Income of $3,977,000, equal to 53 cents per diluted share. Our Balance Sheet remains strong, bolstered by an improvement in our Accounts Receivable Days Sales Outstanding, and we maintain a healthy liquidity ratio of 4:07 to 1. All signs continue to point upwards and we remain optimistic about the Company's prospects for the balance of the current fiscal year."

On November 13, 2006, the Directors of Astro-Med declared the regular quarterly cash dividend of 5 cents per share payable on January 2, 2007 to shareholders of record on December 8, 2006.

The Third Quarter conference call will be held today, Tuesday, November 14, 2006 at 5:00 PM EST. It will be broadcast in real time on the Internet through the Investor Relations portion of our website at www.astro-medinc.com. We invite you to log on and listen in on November 14th, or access the broadcast any time for up to 5 days following the event.

Astro-Med, Inc. is a leading manufacturer of high tech specialty printing systems, electronic medical instrumentation, and test and measurement instruments employed around the world in a wide range of industrial, scientific, and medical applications.

                        ASTRO-MED, INC.

                Consolidated Statement of Operations
                In Thousands Except for Per Share Data
                          (Unaudited)


                              Three-Months Ended      Nine-Months Ended
                              October     October     October     October
                             28, 2006    29, 2005    28, 2006    29, 2005
                            ----------  ----------  ----------  ----------
Net Sales                   $   16,043  $   14,455  $   47,951  $   43,297

Gross Profit                     6,427       5,784      19,699      17,803
                                  40.1%       40.0%       41.1%       41.1%
Operating Expenses:
Selling, General &
 Administrative                  4,819       4,317      14,365      12,971
Research & Development             980         987       2,977       2,932
                            ----------  ----------  ----------  ----------
                                 5,799       5,304      17,342      15,903

Gain on Sale of Real
 Estate, Net                     5,252           -       5,252           -

Operating Income                 5,880         480       7,609       1,900
                                  36.6%        3.3%       15.9%        4.4%

Other Income, Net                  348          17         689         216
                            ----------  ----------  ----------  ----------

Income Before Taxes              6,228         497       8,298       2,116

Income Tax Benefit
 (Provision)                    (2,251)        177      (3,038)       (422)
                            ----------  ----------  ----------  ----------

Net Income                  $    3,977  $      674  $    5,260  $    1,694
                            ==========  ==========  ==========  ==========

Net Income Per Share -
 Basic                      $     0.59  $     0.10  $     0.78  $     0.25
                            ==========  ==========  ==========  ==========
Net Income Per Share -
 Diluted                    $     0.53  $     0.09  $     0.71  $     0.23
                            ==========  ==========  ==========  ==========

Weighted Average Number of
 Common Shares  - Basic          6,693       6,619       6,712       6,603
Weighted Average Number of
 Common Shares  - Diluted        7,439       7,334       7,379       7,212

Dividends Declared Per
 Common Share               $     0.05  $     0.03  $     0.15  $     0.10



                Selected Balance Sheet Data
            In Thousands Except for Per Share Data
                        (Unaudited)

                                                     As of        As of
                                                  October 28,  January 31,
                                                  ------------ ------------
                                                     2006          2006
                                                  ------------ ------------
Cash & Marketable Securities                      $     21,367 $     14,724

Current Assets                                          47,166       39,662

Total Assets                                            57,286       49,647

Current Liabilities                                     11,456        8,440

Shareholders’ Equity                              $     44,889 $     40,302
Reconciliation of Non-GAAP Financial Information

In an effort to provide investors information regarding the Company's results, the Company disclosed certain Non-GAAP information which management believes provides useful information to the investor.

A reconciliation of net income and net income per diluted share as reported under GAAP to the pro forma net income and pro forma net income per diluted share excluding the gain related to the sale of certain real estate for the three-months and nine-months ended October 28, 2006 are as follows:

                                                  Real Estate
                                                  -----------   Pro Forma
Three-Months                         GAAP Basis   Transaction     Basis
                                     -----------  -----------  -----------
Operating Income                     $     5,880  $     5,252  $       628
Other Income, Net                            348            -          348
Income Tax Provision                      (2,251)      (2,127)        (124)
                                     -----------  -----------  -----------
Net Income                           $     3,977  $     3,125  $       852

Net Income Per Share - Diluted       $      0.53  $      0.42  $      0.11




                                                  Real Estate
                                                  -----------   Pro Forma
Nine-Months                          GAAP Basis   Transaction     Basis
                                     -----------  -----------  -----------
Operating Income                     $     7,609  $     5,252  $     2,357
Other Income, Net                            689            -          689
Income Tax Provision                      (3,038)      (2,127)        (911)
                                     -----------  -----------  -----------
Net Income                           $     5,260  $     3,125  $     2,135

Net Income Per Share - Diluted       $      0.71  $      0.42  $      0.29
Safe Harbor Statement

This news release contains forward-looking statements, and actual results may vary from those expressed or implied herein. Factors that could affect these results include those mentioned in Astro-Med's FY2006 annual report and its annual and quarterly filings with the Securities and Exchange Commission.

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