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Transcat Reports 3.0% Increase in Revenue for Fiscal 2013 Third Quarter

Transcat, Inc. (NASDAQ: TRNS) (“Transcat” or the “Company”), an accredited provider of calibration, repair, inspection and other compliance services and a leading distributor of professional grade handheld test, measurement and control instruments, today reported financial results for its third quarter ended December 29, 2012. Included in the reported results are those of Anacor Compliance Services, Inc., which the Company acquired on July 16, 2012.

Fiscal 2013 third quarter total revenue increased 3.0% to $29.3 million from $28.5 million in the third quarter of the prior fiscal year driven by Service segment revenue growth of 8.9%. Product segment sales were consistent with the prior fiscal year period at $19.4 million.

Net income was $0.8 million, or $0.10 per diluted share, in the third quarter of fiscal 2013, compared with $1.0 million, or $0.13 per diluted share, in the prior-year period.

Charles P. Hadeed, CEO of Transcat, commented, “Our acquisition strategy to expand our Service segment drove our growth in the quarter and helped to support overall margins in a challenging market environment for our Product segment. The Anacor acquisition led to 8.9% growth for the Service segment and also contributed to expanded operating and contribution margins for the segment. We have completed six acquisitions in the last three years, including Anacor, and we recently announced the acquisition of Cal-Matrix. In combination with our organic growth initiatives, we expect to continue to acquire high quality calibration labs that further expand our geographic footprint and capabilities.”

On January 25, 2013, the Company announced the acquisition of Cal-Matrix Metrology Inc., a leading Canadian provider of commercial and accredited calibrations and coordinate measurement inspection services. The acquisition greatly expands the Company’s presence in Canada by adding a second laboratory in Southern Ontario and a lab in Montreal, Quebec. Transcat now has 18 strategically located centers of excellence in the United States, Canada and Puerto Rico.

Service Segment Expansion Muted by Product Segment Declines

Operating income for the third quarter of fiscal 2013 was $1.2 million, a $0.4 million decrease from the prior fiscal year period. Operating margin declined 160 basis points to 4.2% in the third quarter of fiscal 2013 compared with 5.8% for the prior-year period. Total operating expenses in the third quarter of fiscal 2013 increased $0.3 million, or 5.3%, including upfront costs related to the Company’s deployment of Salesforce.com, a customer relationship management (“CRM”) software program which is expected to increase the efficiency of our sales teams.

During the third quarter of fiscal 2013, Transcat generated $1.9 million of EBITDA (earnings before interest, taxes, depreciation and amortization), a decrease of $0.5 million when compared with the same quarter of the prior fiscal year. Service segment EBITDA increased 15.5%, to $0.4 million, which was more than offset by a decrease in EBITDA attributable to the Product segment. See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the EBITDA Reconciliation table.

Service Segment Strengthened by Acquisition

Service Segment: Represents the Company’s accredited calibration, repair, inspection and other compliance services business (34% of total revenue for the third quarter of fiscal 2013)

“The third quarter Service segment revenue growth can largely be attributed to furthering our reach into the targeted life sciences industry with our recent acquisition of Anacor,” stated Lee D. Rudow, President and COO of Transcat. “While we have made strides growing with acquisitions, we intend to further increase our focus on organic growth as well, which we expect will lead to enhanced operating leverage and stronger cash flow generation.”

  • Service segment revenue increased 8.9%, or $0.8 million, to $9.9 million in the third quarter of fiscal 2013 compared with the third quarter of the prior fiscal year.
  • Third quarter fiscal 2013 Service segment gross profit improved $0.3 million, or 16.5%, to $2.1 million compared with the prior fiscal year period, while gross margin expanded 140 basis points over the same comparable period to 21.5%.
  • Service segment contribution margin increased $0.3 million, or 65.4%, to $0.8 million compared with the third quarter of fiscal 2012. See Note 1 on page 4 for a description of this non-GAAP financial measure and page 10 for the Contribution Margin Reconciliation in the Business Segment Data.
  • Operating expenses associated with the Service segment increased 5.9% to $2.1 million in the third quarter of fiscal 2013 compared with the third quarter of the prior fiscal year.
  • Service segment operating income was basically break-even for the third quarter of fiscal 2013, an improvement from an operating loss of $0.2 million in the third quarter of fiscal 2012. Operating margin over the same comparable period improved 200 basis points.
  • Service segment EBITDA increased 15.5% to $0.4 million in the fiscal 2013 third quarter compared with the third quarter of fiscal 2012. As a percentage of Service segment revenue, EBITDA for the Service segment was 4.1% and 3.8% in the third quarters of fiscal 2013 and 2012, respectively. See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the EBITDA Reconciliation table.

Product Segment Revenue Steady in a Challenging Market

Product Segment: Represents the Company’s distribution of professional grade handheld test and measurement instruments business (66% of total revenue for the third quarter of fiscal 2013)

  • Product segment sales were $19.4 million in the third quarter of fiscal 2013, consistent with the prior-year period despite two fewer business days. Average Product segment sales per day increased 3.6% to $319 thousand in the third quarter of fiscal 2013, compared with $308 thousand in the same period of fiscal 2012.
  • Online product sales increased 24.5% to $2.3 million in the third quarter of fiscal 2013 from $1.8 million in the prior-year period. Online sales accounted for 11.7% and 9.4% of Product segment sales in the third quarters of 2013 and 2012, respectively.
  • Third quarter Product segment gross profit decreased $0.5 million to $4.5 million, or 23.2% of Product segment sales, primarily due to competitive pricing pressures and a $0.2 million reduction in volume-based rebate income.
  • Product segment operating income decreased $0.6 million to $1.2 million in the third quarter of fiscal 2013 primarily as a result of the contraction in gross profit. Operating margin was 6.4% and 9.6% of Product segment sales in the third quarter of fiscal 2013 and 2012, respectively.
  • Product segment EBITDA was $1.5 million, or 7.8% of segment sales, in the third quarter of fiscal 2013, compared with $2.1 million, or 11.0% of segment sales, in the prior-year period. See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the EBITDA Reconciliation table.

Nine-Month Review

Total revenue increased to $81.2 million in the first nine months of fiscal 2013, up 2.5% from total revenue of $79.2 million in the first nine months of fiscal 2012. Revenue increases in the Service segment were partially offset by lower sales in the Product segment.

  • Service segment revenue increased 10.7% to $28.5 million in the first nine months of fiscal 2013, compared with $25.7 million in the first nine months of fiscal 2012. Incremental revenue from recent acquisitions complemented by organic growth was partially offset by the strategic decision not to renew $0.8 million in low margin revenue from the Company outsourcing primarily non-calibration services for a specific customer.
  • Product segment sales were $52.8 million in the first nine months of fiscal 2013, a decrease of 1.5% from $53.5 million in the same period of the prior fiscal year. Sales to both direct and reseller customers declined slightly, reflecting general economic conditions.

Gross margin was 23.3% in the first nine months of fiscal 2013 compared with 24.3% in the same period of the prior fiscal year.

  • Service segment gross margin improved 60 basis points to 22.8% in the first nine months of fiscal 2013 compared with 22.2% in the same period of the prior fiscal year. Revenue growth in the Service segment included incremental revenue from recent acquisitions, which provided limited short-term gross margin expansion opportunity.
  • Product segment gross margin was 23.6% and 25.3% for the first nine months of fiscal 2013 and 2012, respectively. The decline was primarily a result of $0.7 million less in manufacturer rebates as well as increased price discounts extended to customers, partially offset by a
    $0.3 million increase in cooperative advertising income.

Operating expenses increased modestly to $15.9 million in the first nine months of fiscal 2013, compared with the first nine months of the prior fiscal year. As a percentage of total revenue, operating expenses in the fiscal 2013 year-to-date period improved to 19.6% from 19.9% in the prior-year period reflecting lower performance-based compensation and acquisition-related expenses, partially offset by one-time sales organization restructuring charges and increased investments in our CRM software Salesforce.com.

Fiscal 2013 year-to-date operating income declined $0.5 million, or 13.5%, to $3.0 million compared with the same period of fiscal 2012. The decline reflects lower Product segment operating income partially offset by improved operating income within the Service segment. Operating margin for the same comparable period declined 70 basis points to 3.7%. Net income was $1.9 million, or $0.25 per diluted share, in the first nine months of fiscal 2013, compared with $2.1 million, or $0.27 per diluted share, in the prior-year period.

EBITDA was $4.9 million in the first nine months of fiscal 2013, compared with $5.7 million for the same period in fiscal 2012. See Note 1 on page 4 for a description of this non-GAAP financial measure and page 9 for the EBITDA Reconciliation table.

Strong and Flexible Balance Sheet

Net cash provided by operations was $2.4 million for the year-to-date period of fiscal 2013, compared with $2.5 million in the comparable period of fiscal 2012. The year-over-year change was the result of working capital requirements and timing.

Capital expenditures in the first nine months of fiscal 2013 were $2.2 million compared with $1.2 million in the first nine months of fiscal 2012, and were primarily for additional service capabilities, including implementing Salesforce.com, a larger laboratory in Nashville, TN and an additional calibration system to expand the Company’s pressure calibration capabilities. Business acquisitions were $3.1 million during the first nine months of fiscal 2013 and 2012.

As of December 29, 2012, the Company had $13.4 million in remaining availability under its $20 million secured revolving credit facility.

Outlook

Mr. Hadeed stated, “For the long term, we continue to drive our strategy to grow the Service segment at a higher rate than our product business, both through acquisitions and organically, while continuing to expand the Product segment through increased market penetration. Given the operating leverage inherent in the Service segment, we expect over time this growth will strengthen our earnings power.

“For the fourth quarter of fiscal 2013, we will have one less sales week compared with the prior-year period as a result of our 52/53 week fiscal cycle. In addition, the delay in production tax credits for manufacturers in the wind industry may affect product sales for the remainder of the fiscal year. We expect our Service segment operating income to significantly increase while we face continued margin pressure within our Product segment.”

NOTE 1

In addition to reporting net income, a U.S. generally accepted accounting principle (“GAAP”) measure, we present EBITDA (earnings before interest, income taxes, depreciation and amortization), which is a non-GAAP measure. The Company believes EBITDA allows investors to view its performance in a manner similar to the methods used by management and provides additional insight into its operating results. EBITDA is not calculated through the application of GAAP and is not the required form of disclosure by the Securities and Exchange Commission. As such, it should not be considered as a substitute for the GAAP measure of net income and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. See the attached EBITDA Reconciliation table on page 9.

Contribution margin, a non-GAAP financial measure, consists of gross profit less sales, marketing and warehouse expenses. We believe contribution margin provides management and users of the financial statements information about our ability to cover our operating costs, such as technology and general and administrative expenses. Contribution margin is used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. The material limitation associated with the use of contribution margin is that it is an incomplete measure of profitability as it does not include all operating expenses or non-operating income and expenses. Management compensates for these limitations when using this measure by looking at other GAAP measures, such as operating income (loss) and net income (loss). For further details on contribution margin, see the calculation of this non-GAAP financial measure and the reconciliation of contribution margin to gross profit on pages 10 and 11.

ABOUT TRANSCAT

Transcat, Inc. is a leading provider of accredited calibration, repair, inspection and compliance services including analytical instrument qualifications, equipment and process validation. Targeted industries include life science, biotechnology, medical device, pharmaceutical and other FDA-regulated industries, industrial manufacturing, energy and utilities, chemical manufacturing and other industries. Throughout its 18 strategically located centers of excellence in the United States, Canada and Puerto Rico, Transcat delivers precise services with reliable turn-around times. The breadth and depth of measurement parameters addressed by Transcat’s ISO/IEC 17025 scopes of accreditation are believed to be among the best in the industry.

In addition, Transcat operates as a leading distributor of professional grade handheld test, measurement and control instrumentation. Through its distribution products segment, Transcat markets and distributes premier and propriety brand instruments to nearly 15,000 customers. The Company offers access to more than 25,000 test, measurement and control products.

Transcat’s growth strategy is to expand its product and service platform comprised of a balanced suite of test products and analytical, calibration, compliance, and validation services. The goal is to deliver specialized technical services with a quality assurance approach, which maximizes document accuracy and on-time job delivery. Transcat answers the call with cGMP, GLP, and GXP compliant services. Transcat can provide life science companies with a reliable alternative service and product solution to the OEMs and to the “generalist” service providers who cannot meet the client’s specialized needs.

More information about Transcat can be found on its website at: transcat.com

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “expects,” “estimates,” “projects,” “anticipates,” “believes,” “could,” and other similar words. All statements addressing operating performance, events, or developments that Transcat, Inc. expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, sales operations, its strategy to build its sales representative channel, customer preferences and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties are more fully described in Transcat’s Annual and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.

                       
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
 
 
(Unaudited) (Unaudited)
Third Quarter Ended Nine Months Ended
December 29, December 24, December 29, December 24,
2012 2011 2012 2011
 
Product Sales $ 19,440 $ 19,382 $ 52,753 $ 53,533
Service Revenue   9,884   9,078   28,456   25,715

Total Revenue

  29,324   28,460   81,209   79,248
 
Cost of Products Sold 14,937 14,420 40,317 39,992
Cost of Services Sold   7,757   7,252   21,977   20,017

Total Cost of Products and Services Sold

  22,694   21,672   62,294   60,009
 
Gross Profit   6,630   6,788   18,915   19,239
 
Selling, Marketing and Warehouse Expenses 3,386 3,403 9,786 10,071
Administrative Expenses   2,023   1,732   6,134   5,704

Total Operating Expenses

  5,409   5,135   15,920   15,775
 
Operating Income   1,221   1,653   2,995   3,464
 
Interest and Other Expense, net   37   44   135   127
 
Income Before Income Taxes 1,184 1,609 2,860 3,337
Provision for Income Taxes   402   585   972   1,242
 
Net Income   782   1,024   1,888   2,095
 
 
Basic Earnings Per Share $ 0.11 $ 0.14 $ 0.26 $ 0.29
Average Shares Outstanding 7,417 7,325 7,399 7,301
 
Diluted Earnings Per Share $ 0.10 $ 0.13 $ 0.25 $ 0.27
Average Shares Outstanding 7,562 7,680 7,575 7,647
 
           
TRANSCAT, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Amounts)
 
(Unaudited)
December 29, March 31,
2012

2012

ASSETS
Current Assets:

Cash

$ 459 $ 32

Accounts Receivable, less allowance for doubtful accounts of $100

and $99 as of December 29, 2012 and March 31, 2012, respectively

13,868 13,800

Other Receivables

1,350 845

Inventory, net

6,753 6,396

Prepaid Expenses and Other Current Assets

1,307 1,064

Deferred Tax Asset

  901   1,041  

Total Current Assets

24,638 23,178
Property and Equipment, net 6,609 5,306
Goodwill 15,294 13,390
Intangible Assets, net 2,458 2,449
Deferred Tax Asset 332 -
Other Assets   1,010   654  

Total Assets

$ 50,341 $ 44,977  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:

Accounts Payable

$ 8,839 $ 7,516

Accrued Compensation and Other Liabilities

3,750 5,171

Income Taxes Payable

  -   366  

Total Current Liabilities

12,589 13,053
Long-Term Debt 6,642 3,365
Deferred Tax Liability - 139
Other Liabilities   1,538   1,042  

Total Liabilities

  20,769   17,599  
 
Shareholders' Equity:

Common Stock, par value $0.50 per share, 30,000,000 shares authorized;

7,417,294 and 7,840,994 shares issued as of December 29, 2012 and

March 31, 2012, respectively; 7,417,294 and 7,341,007 shares

outstanding as of December 29, 2012 and March 31, 2012, respectively

3,709 3,920

Capital in Excess of Par Value

10,680 10,810

Accumulated Other Comprehensive Income

402 448

Retained Earnings

14,781 14,394

Less: Treasury Stock, at cost, 498,782 shares as of March 31, 2012

  -   (2,194 )

Total Shareholders' Equity

  29,572   27,378  

Total Liabilities and Shareholders' Equity

$ 50,341 $ 44,977  
 
           

TRANSCAT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

 

(Unaudited)

Nine Months Ended

December 29,

December 24,

2012

2011

Cash Flows from Operating Activities:
Net Income

$

1,888

$

2,095

Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Deferred Income Taxes (250 ) (105 )
Depreciation and Amortization 1,945 2,241
Provision for Accounts Receivable and Inventory Reserves 167 157
Stock-Based Compensation Expense 220 407
Changes in Assets and Liabilities:
Accounts Receivable and Other Receivables (252 ) (2,387 )
Inventory (349 ) (1,347 )
Prepaid Expenses and Other Assets (909 ) (627 )
Accounts Payable 1,337 1,270
Accrued Compensation and Other Liabilities (1,038 ) 873
Income Taxes Payable   (409 )   (42 )
Net Cash Provided by Operating Activities   2,350     2,535  
 
Cash Flows from Investing Activities:
Purchase of Property and Equipment (2,189 ) (1,233 )
Business Acquisitions   (3,129 )   (3,122 )
Net Cash Used in Investing Activities   (5,318 )   (4,355 )
 
Cash Flows from Financing Activities:
Revolving Line of Credit, net 3,277 1,606
Payments on Other Debt Obligations

-

(11 )
Payments of Contingent Consideration (14 ) (88 )
Issuance of Common Stock 199 350
Repurchase of Common Stock (110 ) (61 )
Excess Tax Benefits Related to Stock-Based Compensation   43     39  
Net Cash Provided by Financing Activities   3,395     1,835  
 
Effect of Exchange Rate Changes on Cash  

-

    10  
 
Net Increase in Cash 427 25
Cash at Beginning of Period   32     32  
Cash at End of Period

$

459

 

$

57

 
 
           

TRANSCAT, INC.

Fiscal Year 2013 and Fiscal Year 2012
Additional Information
 
EBITDA Reconciliation

(Dollars in thousands)

(Unaudited)

 

FY2013

Q1       Q2       Q3       YTD
Net Income $ 361       $ 745       $ 782       $ 1,888
+ Interest Expense 21 38 20 79
+ Other Expense / (Income) 26 13 17 56
+ Tax Provision   186           384           402           972  
Operating Income $ 594 $ 1,180 $ 1,221 $ 2,995
+ Depreciation & Amortization 600 621 724 1,945
+ Other (Expense) / Income   (26 )         (13 )         (17 )         (56 )
EBITDA $ 1,168 $ 1,788 $ 1,928 $ 4,884
 

Segment Breakdown

 
Service Operating Income (Loss) $ (258 ) $ 333 $ (19 ) $ 56
+ Depreciation & Amortization 359 422 439 1,220
+ Other (Expense) / Income   (18 )         (14 )         (18 )         (50 )
Service EBITDA $ 83 $ 741 $ 402 $ 1,226
 
Product Operating Income $ 852 $ 847 $ 1,240 $ 2,939
+ Depreciation & Amortization 241 199 285 725
+ Other (Expense) / Income   (8 )         1           1           (6 )
Product EBITDA $ 1,085 $ 1,047 $ 1,526 $ 3,658
                                       
 

FY2012

Q1       Q2       Q3       YTD
Net Income $ 325 $ 746 $ 1,024 $ 2,095
+ Interest Expense 28 28 35 91
+ Other Expense / (Income) 17 10 9 36
+ Tax Provision   200           457           585           1,242  
Operating Income $ 570 $ 1,241 $ 1,653 $ 3,464
+ Depreciation & Amortization 670 738 833 2,241
+ Other (Expense) / Income   (17 )         (10 )         (9 )         (36 )
EBITDA $ 1,223 $ 1,969 $ 2,477 $ 5,669
 

Segment Breakdown

 
Service Operating Income $ (251 ) $ (216 ) $ (201 ) $ (668 )
+ Depreciation & Amortization 474 511 557 1,542
+ Other (Expense) / Income   (11 )         (9 )         (8 )         (28 )
Service EBITDA $ 212 $ 286 $ 348 $ 846
 
Product Operating Income $ 821 $ 1,457 $ 1,854 $ 4,132
+ Depreciation & Amortization 196 227 276 699
+ Other (Expense) / Income   (6 )         (1 )         (1 )         (8 )
Product EBITDA $ 1,011 $ 1,683 $ 2,129 $ 4,823
 
                 
TRANSCAT, INC.
Additional Information - Business Segment Data

(Dollars in thousands)

(Unaudited)

Change
SERVICE FY 2013 Q3 FY 2012 Q3 $'s       %
 
Service Revenue $ 9,884 $ 9,078 $ 806 8.9 %
Cost of Services Sold $ 7,757   $ 7,252   $ 505   7.0 %
Gross Profit $ 2,127 $ 1,826 $ 301 16.5 %
Gross Margin 21.5 % 20.1 %
 
Selling, Marketing & Warehouse Expenses $ 1,313   $ 1,334   $ (21 ) (1.6 %)
Contribution Margin $ 814 $ 492 $ 322 65.4 %
% of Revenue 8.2 % 5.4 %
 
Administrative Expenses $ 833   $ 693   $ 140   20.2 %
Operating Loss $ (19 ) $ (201 ) $ 182 90.5 %
% of Revenue (0.2 %) (2.2 %)
 
 
Change
PRODUCT FY 2013 Q3 FY 2012 Q3 $'s %
Product Sales $ 19,440 $ 19,382 $ 58 0.3 %
Cost of Products Sold $ 14,937   $ 14,420   $ 517   3.6 %
Gross Profit $ 4,503 $ 4,962 $ (459 ) (9.3 %)
Gross Margin 23.2 % 25.6 %
 
Selling, Marketing & Warehouse Expenses $ 2,073   $ 2,069   $ 4   0.2 %
Contribution Margin $ 2,430 $ 2,893 $ (463 ) (16.0 %)
% of Sales 12.5 % 14.9 %
 
Administrative Expenses $ 1,190   $ 1,039   $ 151   14.5 %
Operating Income $ 1,240 $ 1,854 $ (614 ) (33.1 %)
% of Sales 6.4 % 9.6 %
                                 
 
Change
TOTAL FY 2013 Q3 FY 2012 Q3 $'s %
 
Total Revenue $ 29,324 $ 28,460 $ 864 3.0 %
Total Cost of Products and Services Sold $ 22,694   $ 21,672   $ 1,022   4.7 %
Gross Profit $ 6,630 $ 6,788 $ (158 ) (2.3 %)
Gross Margin 22.6 % 23.9 %
 
Selling, Marketing & Warehouse Expenses $ 3,386   $ 3,403   $ (17 ) (0.5 %)
Contribution Margin $ 3,244 $ 3,385 $ (141 ) (4.2 %)
% of Revenue 11.1 % 11.9 %
 
Administrative Expenses $ 2,023   $ 1,732   $ 291   16.8 %
Operating Income $ 1,221 $ 1,653 $ (432 ) (26.1 %)
% of Revenue 4.2 % 5.8 %
 
                 
TRANSCAT, INC.
Additional Information - Business Segment Data

(Dollars in thousands)

(Unaudited)

Change
SERVICE FY 2013 YTD FY 2012 YTD $'s       %
 
Service Revenue $ 28,456 $ 25,715 $ 2,741 10.7%
Cost of Services Sold $ 21,977 $ 20,017 $ 1,960 9.8%
Gross Profit $ 6,479 $ 5,698 $ 781 13.7%
Gross Margin 22.8% 22.2%
 
Selling, Marketing & Warehouse Expenses $ 3,748 $ 3,966 $ (218) (5.5%)
Contribution Margin $ 2,731 $ 1,732 $ 999 57.7%
% of Revenue 9.6% 6.7%
 
Administrative Expenses $ 2,675 $ 2,400 $ 275 11.5%
Operating Income (Loss) $ 56 $ (668) $ 724 108.4%
% of Revenue 0.2% (2.6%)
 
Change
PRODUCT FY 2013 YTD FY 2012 YTD $'s     %
Product Sales $ 52,753 $ 53,533 $ (780) (1.5%)
Cost of Products Sold $ 40,317 $ 39,992 $ 325 0.8%
Gross Profit $ 12,436 $ 13,541 $ (1,105) (8.2%)
Gross Margin 23.6% 25.3%
 
Selling, Marketing & Warehouse Expenses $ 6,038 $ 6,105 $ (67) (1.1%)
Contribution Margin $ 6,398 $ 7,436 $ (1,038) (14.0%)
% of Sales 12.1% 13.9%
 
Administrative Expenses $ 3,459 $ 3,304 $ 155 4.7%
Operating Income $ 2,939 $ 4,132 $ (1,193) (28.9%)
% of Sales 5.6% 7.7%
                                 
Change
TOTAL FY 2013 YTD FY 2012 YTD $'s %
 
Total Revenue $ 81,209 $ 79,248 $ 1,961 2.5%
Total Cost of Products and Services Sold $ 62,294 $ 60,009 $ 2,285 3.8%
Gross Profit $ 18,915 $ 19,239 $ (324) (1.7%)
Gross Margin 23.3% 24.3%
 
Selling, Marketing & Warehouse Expenses $ 9,786 $ 10,071 $ (285) (2.8%)
Contribution Margin $ 9,129 $ 9,168 $ (39) (0.4%)
% of Revenue 11.2% 11.6%
 
Administrative Expenses $ 6,134 $ 5,704 $ 430 7.5%
Operating Income $ 2,995 $ 3,464 $ (469) (13.5%)
% of Revenue 3.7% 4.4%
 
                         

PRODUCT SALES PER BUSINESS DAY

(Dollars in thousands)

(Unaudited)

 
Change
FY 2013 Q3               FY 2012 Q3       $'s       %
Product Sales $ 19,440 $ 19,382 $ 58       0.3%
Business Days 61 63 (2)
Sales Per Business Day $ 319               $ 308       $ 11       3.6%
 
                 
Change
FY 2013 YTD       FY 2012 YTD       $'s       %
Product Sales $ 52,753 $ 53,533 $ (780)       (1.5%)
Business Days 187 190 (3)
Sales Per Business Day $ 282       $ 282       $ 0       0.1%
 

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@ThingsExpo Stories
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Judith Hurwitz is president and CEO of Hurwitz & Associates, a Needham, Mass., research and consulting firm focused on emerging technology, including big data, cognitive computing and governance. She is co-author of the book Cognitive Computing and Big Data Analytics, published in 2015. Her Cloud Expo session, "What Is the Business Imperative for Cognitive Computing?" is scheduled for Wednesday, June 8, at 8:40 a.m. In it, she puts cognitive computing into perspective with its value to the busin...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...