Good day, everyone, and welcome to AstroNova's Q1 Fiscal Year 2017 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the call over to David Calusdian. Please go ahead, sir.

Thank you. Good morning, everyone. Thank you for joining us. Hosting this morning's call are Greg Woods, AstroNova's President and CEO; and Joe O'Connell, Senior Vice President and CFO. Greg will begin the call by reviewing the company's operating highlights and business outlook. Joe will take you through the financials. [Technical Difficulty] concluding remarks 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 earlier today. If you have not received a copy, please go to the Investors section of the company's website, www.astronovainc.com. Please note that statements made during today's call that are not statements of historical fact are considered forward-looking statements within the meaning of the Securities and Exchange 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. Such forward-looking statements speak only as of the date made. Except as required by law, the company undertakes no obligation to update these forward-looking statements. For further information regarding the forward-looking statements and factors that may cause differences, please see the company's risk factors and the annual report on Form 10-K and other filings AstroNova makes with the Securities and Exchange Commission. With that, I will turn the call over to Greg Woods.

Thank you, David. Good morning, everyone. In fiscal 2014 we began building the foundation for long-term, sustainable growth at AstroNova. We introduced a formal product development process. We widened the geographic lens on our distribution efforts. We began putting the initial infrastructure in place to build a much larger and more profitable organization based on our data visualization technology. We also launched the AstroNova operating system, or AOS for short, a system rooted in world-class lean enterprise tools that fosters a continuous improvement culture. Our employees play a central role in making AOS a way of life at AstroNova. Through their commitment to achieve operational excellence across the value chain, our employees have helped transform the way we do business. AOS helps build our competitive advantage and drives margin improvements. You can see the continuing progress of this strategic transformation in our fiscal 2017 first quarter, which marked our 15th consecutive period of year-over-year revenue growth. Let me share a few highlights. Sales in the Product Identification segment were up 6% for the quarter to $16.6 million. Sales in the Test & Measurement segment increased to $7.5 million, with more than a -- 14% higher than Q1 a year ago. As expected, we began to see an uptick in the aerospace hardware revenue from customers that had extended orders from prior quarters. Looking briefly at our performance by region. Domestic and international revenue were both up nicely over Q1 2016. We're especially pleased with the performance of our international dealers, distributers and European branch offices. Our recent expansion efforts in Asia and Latin America are really beginning to pay off. During this past quarter we added to our direct sales team in China and enhanced our international distribution channels. Later this year we plan to open our first office in…

Thank you, Greg, and good morning, everyone. Well, starting with income statement, our net sales in the first quarter of fiscal 2017 were up 8.6% to $24.1 million. Our domestic sales increased 6.7% to $16.8 million; while our international sales rose 13.6%, as we saw a nice traction across both Europe and Asia to international sales representing about 30% of our total revenues for the quarter. Turning to our segments, Product Identification contributed sales of $16.6 million, that's about 6% ahead of the first quarter of fiscal 2016, as we saw a continuation of the strong demand for inks, labels and other consumables. Test & Measurement sales of $7.5 million were up more than 14% over the same period a year ago, as a portion of the aerospace-related orders that had been received in prior quarters begin to kick in this quarter. Looking at sales by product category, consumables, as I noted, another strong, solid quarter, increasing 14% to $13.4 million, and accounting for 55% of total sales. We continue to operate 3 shifts in our media plant here in West Warwick and see opportunities to further develop the consumable product lines. Hardware sales in Q1 increased nearly 4% from the prior year to $8.7 million, largely reflecting the uptick in the orders to the aerospace customers. Sales from our service, parts and repairs totaled $2 million in the quarter. That's slightly lower than the same period of fiscal 2016. Our gross profit in fiscal 2017 first quarter increased to $9.5 million from $9 million in the same quarter of our prior year. Our gross profit margins in the quarter were 39.3% versus 40.7% in the first quarter of fiscal 2016. The variance in gross margin related largely to product mix, costs associated with the product line integrations and the…

Thank you, Joe. Accelerate, innovate, automate. That is the mantra for this second phase in our strategic deployment. Our focus is to accelerate product launches and channel build-out, innovate game-changing products and automate key processes, build management team depth and continue to pursue strategic M&A opportunities. We achieved significant progress in the first 3 years of our strategic plan, and the outlook for the future is very bright. Finally, as we did last year at this time, we will close with full year guidance. Based on the current business environment, we expect to generate revenue for fiscal 2017 in the range of $100 million to $108 million and earnings per diluted share of between $0.70 and $0.75. And with that, Joe and I will be happy to take your questions. Operator?

[Operator Instructions] We will go first to Evan Greenberg with Legend Capital.

Okay. Number one, I wanted to get an idea, did you -- you didn't put out an operating EBITDA number, a year-over-year comparison? Was there one, Joe?

We certainly have -- I don't think we put it out, Evan, but we did $2.1 million in EBITDA for the -- in the quarter. And that's comparable to last year's EBITDA, $2.1 million also.

And I guess gross margins were partially due to mix and ramping up the production facilities. Was there any apprehension from customers in terms of the new products that came out in some of the QuickLabel printing that would have prevented some sales from occurring or -- because people were waiting for newer products or -- did you see any of that at all? Is it [indiscernible]?

There's always going to be some of that because, as much as we try to keep it under wraps, sometimes some things leak out to the channel. But I wouldn't think -- say that would be significant. The QL-111 does overlap a little bit of the space of the QL-100 [ph]. So it depends on the application and which is the appropriate printer for people. So there may have been a little bit of that, but I wouldn't think that was a significant factor.

And was there any currency impact or the dollar issues have kind of gone away now?

No, not really. No. I think, gosh, I think it might have been as low as $40,000 in the quarter, Evan.

[Operator Instructions] At this time I would like to turn the conference back to Mr. Greg Woods for any closing comments.

Great. Thank you. Well, thank you, everyone, for joining us this morning. We look forward to keeping you updated on our progress, and have a good day.

Thank you.

That does conclude today's conference. Thank you for your participation.