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.”

Subsequent to the close of the third quarter, Transcat acquired Wind Turbine Tools, Inc., a Lincoln, Montana-based provider of unique product tool kit solutions, technical assistance, torque calibration and hydraulic services for the wind energy industry. Mr. Hadeed commented, “We believe the addition of this well-known and highly-knowledgeable team will accelerate and further strengthen our market position in the wind energy industry.”

Stronger Sales, Improved Pricing Environment and Enhanced Mix Drive Strong Margin Expansion in Third Quarter Fiscal 2011

Total gross profit increased to $6.1 million, or 25.3% of net revenue, compared with $4.8 million, or 22.0% of net revenue, in the third quarter of fiscal 2010, reflecting increases in gross profit from both the Product and Service segments of 32.9% and 10.0%, respectively. Included in the third quarter of fiscal 2011 was $0.3 million in incremental gross profit from United. Driving margin expansion was a $0.3 million increase in volume-based manufacturer rebates and a $0.2 million increase in cooperative advertising income reflecting stronger product sales.

Total operating expenses increased $0.6 million, or 14.9%, to $4.6 million in the third quarter of fiscal 2011 compared with the third quarter of fiscal 2010. The increase was primarily due to higher employee-related expenses, including the addition of United personnel, and increased direct marketing expenses, which were mostly funded by the aforementioned increase in cooperative advertising income. As a percentage of net revenue, operating expenses in the third quarter of fiscal 2011 were 19.3%, up from 18.4% in the prior fiscal year third quarter.

Operating income for the third quarter of fiscal 2011 was $1.4 million, an increase of $0.6 million, or 82.0%, compared with $0.8 million in the third quarter of fiscal 2010. Operating margin was 6.0% in the third quarter of fiscal 2011, up 240 basis points from the prior fiscal year period.

During the third quarter of fiscal 2011, the Company generated $2.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization), compared with $1.3 million for the same period of the prior fiscal year. The Company believes EBITDA, which is a non-GAAP financial measure, allows investors to view its performance in a manner similar to the methods used by management and provides additional insight to its operating results. See attached EBITDA Reconciliation table on page 9.

The effective tax rate in the third quarter of fiscal 2011 was 37.1% compared with 37.7% in the third quarter of fiscal 2010.

Product and Service Segment Review

Product Segment: (69.4% of total net revenue) Represents the distribution of professional grade handheld test and measurement instruments business

Product segment net sales increased $1.4 million, or 9.1%, to $16.6 million in the third quarter of fiscal 2011 compared with $15.2 million in the same period of the prior fiscal year, which reflects the modest improvement in the economy, a better pricing environment and the success of the Company’s sales and marketing efforts. Net sales growth of $1.2 million in the industries the Company traditionally serves was complemented by $0.5 million in incremental revenue from United, but partially offset by a $0.3 million decline in net sales to wind energy customers attributed to the timing of projects and customers having inventory on hand. Sales to wind energy customers accounted for 4.7% and 7.3% of Product segment sales in the third quarters of fiscal 2011 and 2010, respectively. Mr. Hadeed noted, “Although still a small component of our overall business, we believe we can capitalize on the growth of this industry, which is expected to increase significantly. New wind energy construction projects, however, are often influenced by external factors and can tend to come in waves, as reflected in the lower level of wind energy product sales in this quarter.”

Average Product segment sales per day were $267 thousand in the third quarter of fiscal 2011 compared with $249 thousand in the same period of the prior fiscal year. Sales of the Company’s products through its website increased 25.9% to $1.5 million, or 9.1% of product sales, in the third quarter of fiscal 2011 compared with $1.2 million, or 7.9% of product sales, in the same period of the prior fiscal year. Focused sales efforts with specific product groups continued to drive the increase in online sales.

Product segment gross profit in the third quarter of fiscal 2011 was $4.4 million, or 26.8% of net product sales, compared with $3.3 million, or 22.0% of net product sales, in the third quarter of fiscal 2010. Gross margin for the Product segment is a function of a number of factors including volume, market channel mix, manufacturers’ rebates, product mix and discounts to customers. The 480 basis point increase in gross margin was primarily due to improved pricing and $0.2 million in cooperative advertising income from key vendors in support of increased direct marketing efforts. In addition, a point-of-sale rebate program with a key vendor that is based on Product segment sales growth on a year-over-year basis contributed $0.3 million in the third quarter of fiscal 2011. The Company did not qualify for this type of rebate in the third quarter of fiscal 2010.

Product segment operating income was $1.6 million, or 9.8% of net product sales, in the third quarter of fiscal 2011 compared with $0.9 million, or 5.8% of net product sales, in the same period of the prior fiscal year.

S ervice Segment: (30.6% of total net revenue) Represents the accredited calibration, repair and weighing system services business

Service segment net revenue was $7.3 million in the third quarter of fiscal 2011, a $0.7 million, or 10.3% increase from the $6.6 million reported in the same period of the prior fiscal year. Services provided to wind energy customers were consistent year-over-year and represented 6.3% of total service revenue for the third quarter of fiscal 2011 compared with 7.3% of total service revenue in the same period of the prior fiscal year. The third quarter of fiscal 2011 included $0.4 million in incremental revenue from United. Service revenue growth in the traditional industries the Company serves was $0.3 million for the third quarter of fiscal 2011, a 4.5% increase from the third quarter of fiscal 2010.

The Company’s strategy has been to focus its capital and marketing investments in the electrical, temperature, pressure and dimensional disciplines. Historically, within the traditional industries the Company serves, 15% to 20% of Service segment revenue has been generated from outsourcing customer equipment to third-party vendors for calibration beyond the Company’s chosen scope of capabilities. In the third quarter of fiscal 2011, 20.0% of the Company’s Service segment revenue was subcontracted to third-party vendors. The Company continues to evaluate the need for capital investments that could provide more in-house capabilities as it deems appropriate.

Service segment gross profit in the third quarter of fiscal 2011 was $1.6 million, an increase of 10.0% from $1.5 million in the same period of the prior fiscal year. Gross margin remained consistent year-over-year, as service-related costs grew in line with revenue growth. The Company expects to experience considerable leverage with organic revenue growth within its Service segment, however, the primary driver of service revenue growth during the third quarter of fiscal 2011 was acquisition related, which was accompanied by incremental service costs.

Service segment had an operating loss of $0.2 million during the third quarter of fiscal 2011 compared with an operating loss of $0.1 million in the same period of the prior fiscal year.

Nine-Month Review

Net revenue increased $7.9 million, or 13.7%, to $65.4 million for the first nine months of fiscal 2011, from net revenue of $57.5 million in the first nine months of fiscal 2010. Organic growth was 9.0%, while United contributed $2.8 million to net revenue for the first nine months of fiscal 2011.

Product segment net sales were $43.0 million in the first nine months of fiscal 2011, an increase of 11.9%, compared with $38.4 million in the same period of the prior fiscal year. Net sales growth of $5.0 million in the industries the Company traditionally serves was complemented by $1.4 million in incremental sales from United, but partially offset by a $1.8 million decline in sales to wind energy customers. Sales to wind energy customers accounted for 4.8% and 10.1% of Product segment sales in the first nine months of fiscal 2011 and fiscal 2010, respectively. Online Product sales were $4.0 million in the first nine months of fiscal 2011, up 30.5%, when compared with $3.1 million in the first nine months of fiscal 2010.

Service segment net revenue was $22.4 million in the first nine months of fiscal 2011, up 17.4%, compared with $19.1 million in the first nine months of fiscal 2010. Services provided to wind energy customers increased $0.5 million to $1.6 million and represented 7.0% of total service revenue for the first nine months of fiscal 2011, compared with 5.6% of total service revenue in the same period of the prior fiscal year. The first nine months of fiscal 2011 included $1.4 million in incremental revenue from United.

Gross margin improved to 25.0% for the first nine months of fiscal 2011 compared with 22.4% in the same period of the prior fiscal year. Product segment gross margin was 25.9% and 22.5% for the first nine months of fiscal 2011 and 2010, respectively. The year-over-year increase was primarily a result of an improved pricing environment and increased manufacturer rebate income. Service segment gross margin was 23.3% for the first nine months of fiscal 2011 compared with 22.0% in the same period of the prior fiscal year.

Operating expenses increased $1.7 million to $13.6 million in the first nine months of fiscal 2011 compared with the same period of the prior fiscal year. As a percentage of net revenue, operating expenses during the first nine months of fiscal 2011 were 20.7%, compared with 20.6% in the first nine months of fiscal 2010. The primary drivers of increased operating expenses were higher employee-related expenses, including incremental costs for United personnel, and investments in sales and marketing to drive organic growth in the Service segment and increase market share in the Product segment. Operating income in the first nine months of fiscal 2011 was $2.8 million, or 4.3% of net revenue, compared with $1.0 million, or 1.8% of net revenue, in the first nine months of fiscal 2010.

Net income was $1.7 million, or $0.23 per diluted share, for the first nine months of fiscal 2011 compared with $0.6 million, or $0.08 per diluted share, for the same period of the prior fiscal year.

EBITDA was $4.4 million for the first nine months of fiscal 2011, compared with $2.5 million for the same period of the prior fiscal year. See attached EBITDA Reconciliation table on page 9.

Balance Sheet and Cash Management

Net cash generated from operations was $2.7 million in the first nine months of fiscal 2011 compared with $4.0 million in the same period of the prior fiscal year. The change was primarily due to timing associated with payables and receivables and a $1.5 million increase in inventory during the first nine months of fiscal 2011 compared with a $0.7 million increase in inventory levels during the first nine months of fiscal 2010. Inventory at the end of the third quarter of fiscal 2011 was $7.4 million, up from $5.9 million at the end of fiscal 2010, due to the Company’s strategic decision to increase inventory levels of specific, higher-volume products in support of greater sales growth and to maintain high levels of customer service in response to increased lead times from manufacturers.

Capital expenditures in the first nine months of fiscal 2011 were $1.1 million compared with $0.9 million in the prior fiscal year period and were primarily used for additional service capabilities and infrastructure improvements that included facility expansion and investment in information technology. Transcat expects capital spending for fiscal 2011 to be approximately $1.8 million. During the first nine months of fiscal 2011, the Company also spent $0.5 million to acquire TMetrix and an additional $0.6 million for the repurchase of 80,000 common shares in a private transaction at $6.90 per share.

On January 15, 2011, Transcat entered into an amendment to its credit agreement with JPMorgan Chase Bank, N.A., which provides for a revolving credit line of $15 million. The credit agreement was extended for 3 years on similar financial terms and conditions. The agreement allows for acquisitions totaling up to $10 million in any 12 month period and dividends and stock repurchases up to $2 million in any 12 month period.

Outlook

Mr. Hadeed concluded, “We believe we can continue to develop our Product and Service businesses through organic efforts and through acquisitions with the greatest growth potential being realized in the Services business. Our goal remains to increase our Service business over time through double digit sales growth and realize the significant leverage inherent in that business in order to have more rapid growth in earnings.”

ABOUT TRANSCAT

Transcat, Inc. is a leading distributor of professional grade handheld test and measurement instruments and accredited provider of calibration, repair and weighing system services primarily for the pharmaceutical and FDA-regulated, industrial manufacturing, energy and utilities, chemical manufacturing, and other industries. Through its distribution products segment, Transcat markets and distributes national and proprietary brand instruments to nearly 14,000 customers. The Company offers access to more than 25,000 test and measurement instruments. Transcat delivers precise, reliable, fast calibration, and repair services across the United States, Canada and Puerto Rico through its 14 strategically located Calibration Centers of Excellence. Transcat’s calibration laboratories are ISO-9001 registered and the scope of accreditation to ISO/IEC 17025 is believed to be one of the broadest in the industry.

Transcat’s growth strategy is to expand both its distribution products and calibration services in markets that value product breadth and availability and rely on accredited calibration services to maintain the integrity of their processes.

More information about Transcat can be found on its website at: transcat.com

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “estimates,” “projects,” “anticipates,” “believes,” “could,” and other similar words. All statements addressing operating performance, events, or developments that Transcat, Inc. expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, sales operations, its strategy to build its sales representative channel, customer preferences and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Transcat’s Annual and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.

FINANCIAL TABLES FOLLOW

 
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
                   
(Unaudited) (Unaudited)
Third Quarter Ended Nine Months Ended
December 25, December 26, December 25,       December 26,
2010 2009 2010 2009
 
Product Sales $ 16,562 $ 15,186 $ 43,009 $ 38,424
Service Revenue   7,319   6,637   22,420   19,102
Net Revenue   23,881   21,823   65,429   57,526
 
Cost of Products Sold 12,119 11,843 31,863 29,769
Cost of Services Sold   5,710   5,174   17,198   14,894
Total Cost of Products and Services Sold   17,829   17,017   49,061   44,663
 
Gross Profit   6,052   4,806   16,368   12,863
 
Selling, Marketing and Warehouse Expenses 2,999 2,564 8,577 7,531
Administrative Expenses   1,613   1,451   4,993   4,321
Total Operating Expenses   4,612   4,015   13,570   11,852
 
Operating Income   1,440   791   2,798   1,011
 
Interest Expense 13 9 41 34
Other Expense, net   1   7   13   39
Total Other Expense   14   16   54   73
 
Income Before Income Taxes 1,426 775 2,744 938
Provision for Income Taxes   529   292   1,042   356
 
Net Income $ 897 $ 483 $ 1,702 $ 582
 
 
Basic Earnings Per Share $ 0.12 $ 0.07 $ 0.23 $ 0.08
Average Shares Outstanding 7,307 7,343 7,299 7,373
 
Diluted Earnings Per Share $ 0.12 $ 0.06 $ 0.23 $ 0.08
Average Shares Outstanding 7,553 7,560 7,543 7,602
 
TRANSCAT, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
 
      (Unaudited)      
December 25, March 27,
2010 2010
ASSETS
Current Assets:
Cash

$

18
$ 123
Accounts Receivable, less allowance for doubtful accounts of $101
and $82 as of December 25, 2010 and March 27, 2010, respectively 10,387 11,439
Other Receivables 1,357 418
Inventory, net 7,386 5,906
Prepaid Expenses and Other Current Assets 1,061 915
Deferred Tax Asset   648     566  
Total Current Assets 20,857 19,367
Property and Equipment, net 4,176 4,163
Goodwill 10,334 10,038
Intangible Assets, net 1,237 1,234
Deferred Tax Asset 453 533
Other Assets   393     378  
Total Assets

$

37,450
  $ 35,713  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable

$

9,252
$ 8,798
Accrued Compensation and Other Liabilities 3,276 3,171
Income Taxes Payable   374     251  
Total Current Liabilities 12,902 12,220
Long-Term Debt 1,674 2,532
Other Liabilities   807     704  
Total Liabilities   15,383     15,456  
 
Shareholders' Equity:
Common Stock, par value $0.50 per share, 30,000,000 shares authorized;
7,750,685 and 7,698,450 shares issued as of December 25, 2010 and
March 27, 2010, respectively; 7,251,903 and 7,279,668 shares
outstanding as of December 25, 2010 and March 27, 2010, respectively 3,875 3,849
Capital in Excess of Par Value 9,975 9,357
Accumulated Other Comprehensive Income 405 382
Retained Earnings 10,006 8,304
Less: Treasury Stock, at cost, 498,782 and 418,782 shares as of
December 25, 2010 and March 27, 2010, respectively   (2,194 )   (1,635 )
Total Shareholders' Equity   22,067     20,257  
Total Liabilities and Shareholders' Equity

$

37,450
  $ 35,713  
 
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
      (Unaudited)
Nine Months Ended
December 25,       December 26,
2010 2009
Cash Flows from Operating Activities:
Net Income

$

1,702
$ 582
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Deferred Income Taxes 1 (86 )
Depreciation and Amortization 1,622 1,524
Provision for Accounts Receivable and Inventory Reserves 88 52
Stock-Based Compensation Expense 398 530
Change in Contingent Consideration (55 ) -
Changes in Assets and Liabilities:
Accounts Receivable and Other Receivables 73 (1,143 )
Inventory (1,517 ) (706 )
Prepaid Expenses and Other Assets (519 ) (833 )
Accounts Payable 454 3,526
Accrued Compensation and Other Liabilities 332 645
Income Taxes Payable   113     (119 )
Net Cash Provided by Operating Activities   2,692     3,972  
 
Cash Flows from Investing Activities:
Purchase of Property and Equipment (1,081 ) (941 )
Payments of Contingent Consideration - (1,093 )
Business Acquisition   (491 )   -  
Net Cash Used in Investing Activities   (1,572 )   (2,034 )
 
Cash Flows from Financing Activities:
Revolving Line of Credit, net (842 ) (1,499 )
Payments on Other Debt Obligations (16 ) (20 )
Payment of Contingent Consideration (52 ) -
Issuance of Common Stock 236 169
Repurchase of Common Stock (559 ) (647 )
Excess Tax Benefits Related to Stock-Based Compensation   10     9  
Net Cash Used in Financing Activities   (1,223 )   (1,988 )
 
Effect of Exchange Rate Changes on Cash   (2 )   16  
 
Net Decrease in Cash (105 ) (34 )
Cash at Beginning of Period   123     59  
Cash at End of Period

$

18
  $ 25  
 

Transcat, Inc.

Fiscal 2011 Third Quarter and Nine Months

Additional Information
 

EBITDA Reconciliation

(Dollars in thousands)

(Unaudited)
 
                    FY2011
                      Q1     Q2     Q3     YTD
Net Income                     $ 278       $ 527     $ 897     $ 1,702
+ Interest Expense                       12         16       13       41
+ Income Tax Provision                       166         347       529       1,042
+ Depreciation & Amortization                       496         529       597       1,622
EBITDA                     $ 952       $ 1,419     $ 2,036     $ 4,407
           
 
FY2010
                      Q1     Q2     Q3     YTD
Net Income (loss)                     $ (89 )     $ 188     $ 483     $ 582
+ Interest Expense                       14         11       9       34
+ Income Tax Provision (Benefit)                       (56 )       120       292       356
+ Depreciation & Amortization                       461         498       565       1,524
EBITDA                     $ 330       $ 817     $ 1,349     $ 2,496

 

Transcat, Inc.

Fiscal 2011 Third Quarter

Additional Information
 

Business Segment Data

(Dollars in thousands)
 
                (Unaudited)       (Unaudited)            
Quarter ended December 25, 2010 Quarter ended December 26, 2009

$   Change  

%   Change  
 

Product
Net sales $ 16,562 $ 15,186 $ 1,376 9.1%
 
Gross profit 4,443 3,343 1,100 32.9%
Margin 26.8% 22.0%
 
Operating income 1,617 886 731 82.5%
Margin 9.8% 5.8%
 

Service
Net revenue $ 7,319 $ 6,637 $ 682 10.3%
 
Gross profit 1,609 1,463 146 10.0%
Margin 22.0% 22.0%
 
Operating loss (177) (95) (82) (86.3%)
Margin (2.4%) (1.4%)
 

Consolidated
Net revenue $ 23,881 $ 21,823 $ 2,058 9.4%
 
Gross profit 6,052 4,806 1,246 25.9%
Margin 25.3% 22.0%
 
Operating income 1,440 791 649 82.0%
Margin 6.0% 3.6%
 

Transcat, Inc.

Fiscal 2011 Nine Months

Additional Information
 

Business Segment Data

(Dollars in thousands)
 
                (Unaudited)       (Unaudited)            
Nine months ended December 25, 2010 Nine months ended December 26, 2009

$   Change  

%   Change  
 

Product
Net sales $ 43,009 $ 38,424 $ 4,585 11.9%
 
Gross profit 11,146 8,655 2,491 28.8%

Margin
25.9% 22.5%
 
Operating income 3,149 1,541 1,608 104.3%
Margin 7.3% 4.0%
 

Service
Net revenue $ 22,420 $ 19,102 $ 3,318 17.4%
 
Gross profit 5,222 4,208 1,014 24.1%
Margin 23.3% 22.0%
 
Operating loss (351) (530) 179 33.8%
Margin (1.6%) (2.8%)
 

Consolidated
Net revenue $ 65,429 $ 57,526 $ 7,903 13.7%
 
Gross profit 16,368 12,863 3,505 27.2%
Margin 25.0% 22.4%
 
Operating income 2,798 1,011 1,787 176.8%
Margin 4.3% 1.8%
 

Transcat, Inc.

Additional Information

In the following tables, certain customers have been reclassified in prior periods to conform to the current period presentation
                 
 
 
PRODUCT SEGMENT SALES BY MARKET CHANNEL
(Dollars in thousands)                      
(Unaudited)
 
FY 2011
            Q1       Q2       Q3       Q4      

FY 2011 YTD Total
     

% of Total
Direct           $ 9,640       $ 9,906       $ 12,462               $ 32,008       74.4 %
Reseller             3,133         3,352         3,861                 10,346       24.1 %
Freight Billed to Customers             202         214         239                 655       1.5 %
Total Product Sales           $ 12,975       $ 13,472       $ 16,562               $ 43,009        
 
 
FY 2010
            Q1       Q2       Q3       Q4      

FY 2010 YTD Total
     

% of Total
Direct           $ 8,469       $ 9,282       $ 10,757       $ 11,072       $ 39,580       74.5 %
Reseller             2,628         2,521         4,226         3,411         12,786       24.1 %
Freight Billed to Customers             171         167         203         236         777       1.4 %
Total Product Sales           $ 11,268       $ 11,970       $ 15,186       $ 14,719       $ 53,143        
 
 
 
PRODUCT SALES PER BUSINESS DAY
(Dollars in thousands)
(Unaudited)
                                 
FY 2011
            Q1       Q2       Q3       Q4      

FY 2011 YTD Total
Number of business days             64         63         62               189  
Total product sales           $ 12,975       $ 13,472       $ 16,562               $ 43,009  
Sales per day           $ 203       $ 214       $ 267               $ 228  
 
                                 
FY 2010
            Q1       Q2       Q3       Q4      

FY 2010 YTD Total
Number of business days             64         63         61         64       252  
Total product sales           $ 11,268       $ 11,970       $ 15,186       $ 14,719       $ 53,143  
Sales per day           $ 176       $ 190       $ 249       $ 230       $ 211  
 
 
 
PRODUCT SEGMENT SALES BY REGION
(Dollars in thousands)
(Unaudited)

 
                                       
FY 2011
            Q1       Q2       Q3       Q4      

FY 2011 YTD Total
     

% of Total
United States           $ 11,124       $ 11,589       $ 14,254               $ 36,967       86.0 %
Canada             1,079         957         1,377                 3,413       7.9 %
Other International             570         712         692                 1,974       4.6 %
Freight Billed to Customers             202         214         239                 655       1.5 %
Total           $ 12,975       $ 13,472       $ 16,562               $ 43,009        
 
                                         
FY 2010
            Q1       Q2       Q3       Q4      

FY 2010 YTD Total
     

% of Total
United States           $ 9,732       $ 10,324       $ 13,121       $ 12,410       $ 45,587       85.8 %
Canada             811         872         1,164         1,515         4,362       8.2 %
Other International             554         607         698         558         2,417       4.5 %
Freight Billed to Customers             171         167         203         236         777       1.5 %
Total           $ 11,268       $ 11,970       $ 15,186       $ 14,719       $ 53,143        
 
 
 
SERVICE SEGMENT REVENUE BY TYPE
(Dollars in thousands)
(Unaudited)
                                         
FY 2011
            Q1       Q2       Q3       Q4      

FY 2011 YTD Total
     

% of Total
Depot/On-site           $ 5,689       $ 5,800       $ 5,677               $ 17,166       76.6 %
Outsourced             1,786         1,473         1,466                 4,725       21.1 %
Freight Billed to Customers             178         175         176                 529       2.3 %
Total Service Revenue           $ 7,653       $ 7,448       $ 7,319               $ 22,420        
 
                                         
FY 2010
            Q1       Q2       Q3       Q4      

FY 2010 YTD Total
     

% of Total
Depot/On-site           $ 4,710       $ 5,045       $ 4,877       $ 6,688       $ 21,320       76.4 %
Outsourced             1,079         1,319         1,591         1,907         5,896       21.1 %
Freight Billed to Customers             151         161         169         221         702       2.5 %
Total Service Revenue           $ 5,940       $ 6,525       $ 6,637       $ 8,816       $ 27,918        

Copyright Business Wire 2010