For Immediate Release

Contact:  John Krawczynski

November 29, 2007

(860) 644-1551

Gerber Scientific, Inc. Announces Fiscal 2008 Second Quarter Results

SOUTH WINDSOR, CT -- Gerber Scientific, Inc. (NYSE: GRB) today reported net income of $2.5 million for the second quarter of fiscal 2008, or $0.11 per diluted share, on revenue of $160.7 million, compared with net income of $3.7 million, or $0.16 per diluted share, on revenue of $145.0 million for the second quarter of fiscal 2007. Included in the Company's net income for the quarter ended October 31, 2007 were non-recurring after-tax charges of $0.7 million, or $0.03 per diluted share, of professional fees related to external assistance associated with the Company's adoption of Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109. Foreign currency translation had the effect of increasing revenue by approximately $8.4 million in the second quarter of fiscal 2008 compared with the second quarter of fiscal 2007.

For the six months ended October 31, 2007, the Company reported net income of $5.3 million, or $0.23 per diluted share, on revenue of $314.4 million, compared with net income of $5.7 million, or $0.25 per diluted share, on revenue of $282.5 million for the six months ended October 31, 2006. Also included in the Company's net income were non-recurring after-tax charges of $0.7 million of professional fees referred to above which reduced diluted earnings per share by $0.03 for the six months ended October 31, 2007. Foreign currency translation had the effect of increasing revenue by approximately $14.6 million for the six months ended October 31, 2007, as compared with the six months ended October 31, 2006.

The Company used $5.0 million in cash flows from operations, less capital expenditures, for the first six months of fiscal 2008 as compared with a cash usage of $10.3 million in the prior year comparable period.

Marc T. Giles, President and Chief Executive Officer, commented: "The Company reported continued revenue growth during its second quarter as compared with the prior year, with an increase of $15.7 million, or 10.8 percent. The Sign Making and Specialty Graphics segment was the primary contributor to revenue growth in the second quarter of fiscal 2008 through the favorable impact of foreign currency translation, organic growth and the impact of the recent acquisition of Data Technology. Additionally, the Company reported its highest quarterly revenue ever in China, which increased by over 30 percent as compared with the prior year second quarter. This growth was primarily attributable to new products, particularly the Apparel and Flexible Material segment's XLc7000 multi-ply GERBERcutter®. Although revenue increased during the second quarter of fiscal 2008, operating profit declined by $1.3 million, primarily as a result of strategic investments made related to new product introductions and non-recurring professional fees incurred during the quarter. We expect that these strategic investments will benefit the Company beginning in the second half of fiscal 2008."

Giles continued, "We continue to focus on growth through new product introductions. During the second quarter, our Sign Making and Specialty Graphics segment announced its newest offering in the wide-format UV inkjet printer marketplace – the Gerber Solara ion™. We are very excited about the early market response to this product, as indicated by advance orders. Additionally, the Ophthalmic Lens Processing segment announced the launch of two new products that form the basis of our Advanced Lens Processing System with free-form capability, a significant milestone for this operating segment."

About Gerber Scientific, Inc.

Gerber Scientific, Inc. (http://www.gerberscientific.com) is a leading international supplier of sophisticated automated manufacturing systems for the sign making and specialty graphics, apparel and flexible materials, ophthalmic lens processing, and print and packaging industries. 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

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 risks and 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. Actual future results or events may differ materially from those expressed or implied in the Company's forward-looking statements. The Company expressly disclaims any obligation to update any of these forward-looking statements.
 

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

Quarter Ended
October 31,  

Six Months Ended
October 31,   

In thousands, except per share data

2007 

2006 

2007 

2006 

Revenue:

       

     Product sales

$142,095 

$128,423 

$277,385 

$249,835 

     Service sales

18,621 

16,626 

36,998 

32,702 

160,716 

145,049 

314,383 

282,537 

Costs and Expenses:

       

     Cost of products sold

102,217 

91,272 

198,874 

177,520 

     Cost of services sold

12,103 

10,145 

23,652 

19,680 

     Selling, general and administrative expenses

34,658 

30,990 

69,281 

62,353 

     Research and development

6,552 

6,175 

13,017 

12,143 

 

155,530 

138,582 

304,824 

271,696 

         

Operating income

5,186 

6,467 

9,559 

10,841 

         

Other income (expense), net

(386)

279 

339 

120 

Interest expense

(1,083)

(971)

(2,072)

(1,748)

         

Income before income taxes

3,717 

5,775 

7,826 

9,213 

Income tax expense

1,216 

2,086 

2,488 

3,500 

Net income

$   2,501 

$   3,689 

$   5,338 

$   5,713 

         

Earnings per share of common stock:

     Basic

$0.11 

$0.16 

$0.23 

$0.25 

     Diluted

$0.11 

$0.16 

$0.23 

$0.25 

         

Weighted average shares outstanding:

       

     Basic

23,329 

22,854 

23,257 

22,737 

     Diluted

23,638 

23,343 

23,594 

23,183 

 

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


In thousands

October 31,
2007

 

April 30,
2007

Assets

     

Current Assets:

     

     Cash and cash equivalents

$  14,357

 

$   8,052

     Accounts receivable, net

106,879

 

106,421

     Inventories

77,368

 

65,299

     Prepaid expenses and other current assets

17,019

 

15,106

             Total current assets

215,623

 

194,878

       

Property, plant and equipment, net

38,299

 

36,982

Goodwill

62,090

 

54,825

Deferred income taxes

37,187

 

34,893

Other assets

14,889

 

14,384

             Total assets

$368,088

 

$335,962

       

Liabilities and Shareholders’ Equity

     

Current Liabilities:

     

     Current portion of long-term debt

$  2,698

 

$    1,773

     Accounts payable

45,980

 

48,772

     Other accrued liabilities

63,106

 

63,208

             Total current liabilities

111,784

 

113,753

       

Long-term debt

45,826

 

31,603

Other long-term liabilities

49,944

 

46,125

       

Shareholders’ equity

160,534

 

144,481

             Total liabilities and shareholders’ equity

$368,088

 

$335,962