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For Immediate Release |
Contact: John Krawczynski |
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September 12, 2007 |
(860) 644-1551 |
GERBER SCIENTIFIC, INC. ANNOUNCES FIRST QUARTER FISCAL 2008 SOUTH WINDSOR, CT – Gerber Scientific, Inc. (NYSE: GRB) today announced pre-tax operating results for the fiscal quarter ended July 31, 2007. The Company has not reported earnings per share or other after-tax results for the fiscal quarter ended July 31, 2007 as certain procedures related to the finalization of the Company's income tax accounting, primarily associated with its adoption effective as of May 1, 2007 of Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109, have not yet been completed. The Company plans to file its Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2007 with complete financial results for the quarter promptly after it completes those procedures and will concurrently issue a final earnings release. The Company reported operating income for the fiscal quarter ended July 31, 2007 of $4.4 million on revenue of $153.7 million, compared with operating income of $4.4 million on revenue of $137.5 million for the first quarter of fiscal 2007. Foreign currency translation had the effect of increasing revenue by approximately $6.2 million for the fiscal 2008 first quarter over the fiscal 2007 comparable period. Included in the Company's operating income for the fiscal quarter ended July 31, 2007 were incremental pre-tax severance related costs of $0.8 million as compared with the same period in fiscal 2007. The Company reported income before income taxes for the fiscal quarter ended July 31, 2007 of $4.1 million, compared with $3.4 million for the first quarter of fiscal 2007. The Company's income before income taxes for the first quarter of fiscal 2008 included incremental pre-tax severance related costs of $0.8 million as referred to above and a non-operating gain of $1.0 million from the sale of a product line within the Ophthalmic Lens Processing segment. The Company generated cash flow from operations, less capital expenditures, for the first quarter of fiscal 2008 of $3.4 million as compared with a use of cash of $10.1 million in the prior year comparable period. Gerber Scientific President and Chief Executive Officer, Marc T. Giles, commented, "We were pleased with our strong revenue growth and profitability for the first quarter of fiscal 2008. After excluding the favorable impact of foreign currency, the increase in revenue in the first quarter of fiscal 2008 as compared with the same period in the prior year was generated through improved sales volume from our Sign Making and Specialty Graphics distribution operations, continued growth in new products, incremental revenue from the Data Technology acquisition and higher revenue contributed from our service business. Additionally, revenue and order volume in the greater China marketplace continued to be strong in the first quarter with equipment orders for the fiscal quarter ended July 31, 2007 increasing by 61.8 percent as compared with the fiscal quarter ended July 31, 2006." Giles added, "Our operating income for the first quarter of fiscal 2008 was consistent with the comparable period of the prior year at $4.4 million. However, the first quarter of fiscal 2008 included additional severance related costs associated with certain actions taken during the quarter. Adjusting for the impact of the incremental severance costs incurred in the quarter, operating margin as a percentage of revenue improved to 3.4 percent from 3.2 percent in the first quarter of fiscal 2007. This improvement was primarily a result of strong operating performance in our Apparel and Flexible Materials and Ophthalmic Lens Processing segments." About Gerber Scientific, Inc.
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GERBER SCIENTIFIC, INC. AND SUBSIDIARIES (Unaudited) |
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Quarter Ended |
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In thousands |
2007 |
2006 |
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Revenue: |
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Product sales |
$135,290 |
$121,412 |
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Service sales |
18,377 |
16,076 |
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153,667 |
137,488 |
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Costs and Expenses: |
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Cost of products sold |
96,657 |
86,248 |
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Cost of services sold |
11,549 |
9,535 |
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Selling, general and administrative expenses |
34,623 |
31,363 |
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Research and development |
6,465 |
5,968 |
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149,294 |
133,114 |
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Operating income |
4,373 |
4,374 |
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Other income (expense), net |
725 |
(159) |
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Interest expense |
(989) |
(777) |
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Income before income taxes |
$ 4,109 |
$ 3,438 |
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GERBER SCIENTIFIC, INC. AND SUBSIDIARIES |
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July 31, |
April 30, |
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Cash and cash equivalents |
$ 17,862 |
$ 8,052 |
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Accounts receivable, net |
$100,324 |
$106,421 |
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Inventories |
$ 73,938 |
$ 65,299 |
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Property, plant and equipment, net |
$ 36,681 |
$ 36,982 |
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Goodwill |
$ 61,067 |
$ 54,825 |
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Current portion of long-term debt |
$ 3,235 |
$ 1,773 |
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Accounts payable |
$ 50,422 |
$ 48,772 |
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Long-term debt |
$ 41,339 |
$ 31,603 |