Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leading 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 third quarter ended December 25, 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. Also included are the results of the calibration and repair services business of ACA TMetrix Inc. (“TMetrix”), based in Mississauga, Ontario, which the Company acquired on November 1, 2010.
Net revenue in the third quarter of fiscal 2011 was $23.9 million, an increase of 9.4%, or $2.1 million compared with net revenue of $21.8 million in the third quarter of fiscal 2010. United contributed $1.0 million to net revenue for the third quarter of fiscal 2011. Product segment net sales were $16.6 million for the third quarter of fiscal 2011, an increase of $1.4 million, or 9.1%, compared with $15.2 million in the same period of the prior fiscal year. Service segment net revenue, which represented 30.6% of total net revenue, increased 10.3% to $7.3 million in the third quarter of fiscal 2011 compared with $6.6 million in the prior fiscal year third quarter. The contribution of TMetrix in the quarter was not material.
Net income was $0.9 million, or $0.12 per diluted share, in the third quarter of fiscal 2011, up 85.7%, or $0.4 million, from net income of $0.5 million, or $0.06 per diluted share, in the same period of the prior fiscal year.
Charles P. Hadeed, President, CEO and COO of Transcat, commented, “Our strategy to continue to build our presence, gain market share and grow the Company, both organically and through acquisitions, is being demonstrated through our solid results. Both segments posted strong top-line growth in the third quarter, which led to record third quarter net revenue, as well as significant operating and net income gains. While our Service segment net revenue growth was strong, it was lifted by recent acquisitions. Our organic growth was less than our long-term expectation in the low double digit range and continues to be a primary focus. We broadened our presence in Canada with the acquisition of TMetrix’s service business, which is located just outside of Toronto. We will continue to pursue our acquisition strategy, looking to penetrate markets that complement our existing infrastructure where we can leverage our strong brand and quality service.”