Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leading global distributor of professional grade handheld test and measurement instruments and accredited provider of calibration, repair and weighing system services, today reported financial results for its fiscal 2011 first quarter ended June 26, 2010. Reported results include those of United Scale & Engineering Corporation (“United”), a Wisconsin-based supplier and servicer of industrial scales and weighing systems, which the Company acquired on January 27, 2010.
Net revenue in the first quarter of fiscal 2011 was $20.6 million, an increase of 19.9%, or $3.4 million compared with net revenue of $17.2 million in the first quarter of fiscal 2010. The United acquisition contributed $0.9 million to net revenue for the quarter. Service segment net revenue, which represented 37.1% of total net revenue, increased 28.8% to $7.7 million in the first quarter of fiscal 2011, compared with net revenue of $5.9 million in the prior year first quarter. Product segment net sales, representing the Company’s distribution business, were $13.0 million for the first quarter of fiscal 2011, an increase of $1.7 million, or 15.1% compared with net sales of $11.3 million in the same period of the prior fiscal year.
Net income was $0.3 million, or $0.04 per diluted share, in the first quarter of fiscal 2011, an increase from a net loss of $0.1 million, or $0.01 per diluted share, in the same period of the prior fiscal year.
Charles P. Hadeed, President, CEO and COO of Transcat, commented, “Our business continued to perform very well. Both segments reported double digit revenue growth year-over-year, further demonstrating our leadership position in the handheld test and measurement instrument market, and our quality and reliability as a calibration provider. The $20.6 million in total net revenue was the highest level ever reported for Transcat in a first quarter.” Mr. Hadeed added, “Gross margin gains in both segments, inclusive of earning growth-based manufacturer rebates in our Product segment, leveraged 20% revenue growth into a 38% increase in gross profit and significantly improved net income.”