AstroNova: Memjet Transition & Printhead Diversification

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I know they have discussed Piezo technology with Epson.

Correct. Let's consider those two examples. For an OEM to change their existing printer design from Memjet to either HP or Epson would present vastly different integration challenges. In my opinion, one option would be relatively straightforward, while the other would pose a more significant R&D development challenge. However, with the right development, historical paper path, paper handling, and front-end software, I don't think it will be a major challenge. It mainly involves the driver software and the actual ink laydown. At least one of those printhead manufacturers will make the process very easy and similar to Memjet's offering.

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Because companies like HP or Memjet, which have a broad reach, can spread those costs. Memjet, for example, had 40 OEM partners. They can distribute those costs over their entire revenue base, unlike AstroNova, which has a much smaller revenue base.

Right. In the case of HP and Memjet, you have big ink teams that are highly experienced and trained to characterize and qualify inks through a specific printhead on specific media. The ink must work on specific types of media per the market segment you're targeting. One of the downfalls of thermal inkjet printing is that you either print on plain uncoated media that absorbs the ink or on inkjet receptive coated media, which is more expensive. Other technologies outside of thermal inkjet don't require that expensive inkjet receptive coating layer. They can achieve a better total cost of ownership (TCO) by offering similar print speed and image quality at a lower cost. The printer and ink might be more expensive, but the media cost is lower.

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