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Transcat, Inc. (NASDAQ: TRNS) (“Transcat” or the “Company”), a leading distributor of professional grade handheld test, measurement and control instruments and accredited provider of calibration, repair, inspection and other compliance services, today reported financial results for its first quarter ended June 30, 2012. Included in reported results are those of Newark Corporation’s calibration services business, which the Company acquired on September 8, 2011.
Fiscal 2013 first quarter net revenue decreased 2.0%, or $0.5 million, to $25.1 million compared with the first quarter of the prior fiscal year as a 3.7% increase in Service segment net revenue partially offset lower Product segment net sales.
Net income was $0.4 million, or $0.05 per diluted share, in the first quarter of fiscal 2013, an increase of 11.1% over net income from the same quarter of the prior fiscal year.
Charles P. Hadeed, President and CEO of Transcat, commented, “The struggling US economy had an impact on our first quarter. Sales in our Product segment were impacted by a clear reduction in orders in April and May with the decline particularly evident in our industrial customer base. Service segment growth from acquisitions helped to offset this impact.”
Operating Income Expands Modestly in Fiscal 2013 First Quarter
Operating income for the first quarter of fiscal 2013 was $0.6 million, an increase of 4.2% from the prior fiscal year period. Operating margin improved 20 basis points to 2.4% in the first quarter of fiscal 2013 compared with 2.2% for the same quarter of the prior fiscal year. Total operating expenses declined $0.1 million, or 2.0%, to $5.6 million in the first quarter of fiscal 2013, when compared with the prior fiscal year period. During the first quarter of fiscal 2013, lower year-over-year stock-based compensation expense was partially offset by one-time Service segment sales organization restructuring charges. As a percentage of net revenue, operating expenses were relatively consistent in both quarters.