For Immediate Release

Contact:  John Krawczynski

October 31, 2007

(860) 644-1551

   

GERBER SCIENTIFIC, INC. FINALIZES FIRST QUARTER FISCAL 2008 RESULTS
AND FILES FORM 10-Q

SOUTH WINDSOR, CT -- Gerber Scientific, Inc. (NYSE: GRB) today reported net income for the quarter ended July 31, 2007 of $2.8 million, or $0.12 per diluted share, on revenue of $153.7 million, compared with net income of $2.0 million, or $0.09 per diluted share, on revenue of $137.5 million for the first quarter of fiscal 2007.

The Company had previously announced its pre-tax earnings on September 12, 2007 but did not report 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 (FIN 48), were not completed.

Gerber Scientific President and Chief Executive Officer, Marc T. Giles, commented, "The Company is pleased to report our complete results for the first quarter of fiscal 2008 and to confirm the operating results previously reported. We have now completed the necessary procedures to finalize the adoption of FIN 48 and as a result recorded an adjustment that decreased opening retained earnings by $0.2 million."

The Company filed its Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2007 today.

About Gerber Scientific, Inc.

Gerber Scientific, Inc. (http://www.gerberscientific.com) is a leading international supplier of sophisticated automated manufacturing systems for sign making and specialty graphics, apparel and flexible materials, and ophthalmic lens processing. Headquartered in South Windsor, Connecticut, the Company operates through four primary business units: Gerber Scientific Products, Spandex, Gerber Technology and Gerber Coburn.

Cautionary Note Concerning Factors That May Affect Future Results

Statements contained in this news release regarding the Company's expected financial condition, results of operations, cash flows and product launches are forward-looking statements that involve risks and uncertainties. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, readers are referred to the Company's filings with the Securities and Exchange Commission, including but not limited to, the information included in Gerber Scientific's Annual Report on Form 10-K for the fiscal year ended April 30, 2007 under the headings "Business," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations – Cautionary Note Concerning Factors That May Influence Future Results," as well as information included in subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, which outline certain important risks regarding the Company's forward-looking statements. These risks include, but are not limited to, delays in the Company's new product development and commercialization, intense competition in markets for each of the Company's operating segments, rapid technological advances, availability and cost of raw materials, volatility in foreign currency exchange rates and fluctuations in interest rates. The Company expressly disclaims any obligation to update any of these forward-looking statements, except as required by law. Actual future results or events may differ materially from these forward-looking statements.

 

GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Quarter Ended
July 31,

In thousands, except per share data

2007 

2006 

Revenue:    
     Product sales

$135,290 

$121,412 

     Service sales

18,377 

16,076 

153,667 

137,488 

Costs and Expenses:    
     Cost of products sold

96,657 

86,248 

     Cost of services sold

11,549 

9,535 

     Selling, general and administrative expenses

34,623 

31,363 

     Research and development

6,465 

5,968 

 

149,294 

133,114 

Operating income

4,373 

4,374 

Other income (expense), net

725 

(159) 

Interest expense

(989)

(777) 

Income before income taxes

4,109 

3,438 

Income tax expense

1,272

1,414 

     
Net income

$    2,837 

$    2,024 

     
Earnings per share of common stock:    
     Basic

$      0.12 

$      0.09 

     Diluted

$      0.12 

$      0.09 

     
Weighted average shares outstanding:    
     Basic

23,187

22,621 

     Diluted

23,557

23,051 


 

GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED SUMMARY BALANCE SHEETS
(Unaudited)


In thousands

July 31,
2007

April 30,
2007

Assets    
Current Assets:    
     Cash and cash equivalents

$   17,862

$    8,052

     Accounts receivable, net

100,324

106,421

     Inventories

73,938

65,299

     Prepaid expenses and other current assets

16,653

15,106

             Total current assets

208,777

194,878

     
Property, plant and equipment, net

36,681

36,982

Goodwill

61,067

54,825

Deferred income taxes

38,184

34,893

Other assets

15,503

14,384

             Total assets

$360,212

$335,962

     
Liabilities and Shareholders' Equity    
Current Liabilities:    
     Current portion of long-term debt

$ 3,235

$    1,773

     Accounts payable

50,422

48,772

     Other accrued liabilities

63,391

63,208

             Total current liabilities

117,048

113,753

     
Long-term debt

41,339

31,603

Other long-term liabilities

51,683

46,125

     
Shareholders' equity

150,142

144,481

             Total liabilities and shareholders' equity

$360,212

$335,962

     

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