Transcat Reports 25% Increase in Net Income
Net revenue in the fourth quarter of fiscal 2011 was $25.8 million, an increase of 9.4% compared with net revenue of $23.5 million in the fourth quarter of fiscal 2010. Product segment net sales were $16.9 million for the fourth quarter of fiscal 2011, an increase of 14.5% compared with $14.7 million in the same period of the prior fiscal year. Service segment net revenue, which represented 34.6% of total net revenue, increased 1.0% to $8.9 million in the fourth quarter of fiscal 2011 compared with $8.8 million in the prior fiscal year fourth quarter.
Net income was $1.1 million, or $0.14 per diluted share, in the fourth quarter of fiscal 2011, up 25.0%, or $0.2 million, from net income of $0.9 million, or $0.12 per diluted share, in the same period of the prior fiscal year. The growth in net income was driven by a 67.0% increase in operating profits in the company's product segment.
"We delivered our sixth consecutive record quarter as our product segment grew more than 14% reflecting continued market penetration as a result of expanding our vendor and product portfolio and enhanced marketing activities,” says Charles P. Hadeed, president, CEO and COO of Transcat.
In April 2011, Transcat acquired CMC Instrument Services, a Rochester, NY-based provider of dimensional calibration and repair services.