Gerber Scientific 1Q profit falls 25 percent

Gerber Scientific's 1st-qtr earnings fall but profit from continuing operations nearly doubles

• On 11:02 am EDT, Thursday August 27, 2009

SOUTH WINDSOR, Conn. (AP) -- Gerber Scientific Inc., which makes equipment used for signs, specialty graphics, apparel and optical lenses, said Thursday its fiscal 2010 first-quarter earnings fell 25 percent but profit from continuing operations nearly doubled.

For the three months ended July 31, net income fell to $514,000, or 2 cents per share, from $681,000, or 3 cents per share, in the year-earlier period.

The company counted as a discontinued operation its FOBA Technology + Services GmbH unit, the sale of which will be completed next week. Gerber expects net cash proceeds of at least $8 million from the divestiture.

Excluding FOBA, net income from continuing operations rose to $1.3 million, or 5 cents per share, from $700,000, or 3 cents per share, in the year-earlier period.

Selling, general and administrative expenses declined $8.8 million to $25.4 million, compared with $34.2 million, a year earlier.

Revenue fell 25 percent to $119.7 million from 158.9 million.

CEO Marc Giles said cost cutting, strong working capital management and greater focus on cash generation resulted in a $20 million boost in operating cash flow, less capital expenditures and a $13 million debt reduction.

In morning trading, shares rose 67 cents, or 17.6 percent, to $4.47.