Despite an increase in fiscal first-quarter profits, Transcat Inc.’s stock fell more than 10 percent Wednesday afternoon.
The Ogden-based service provider and distributor of calibration and measurement instruments reported a net income of $400,000, or 5 cents a diluted share, for the quarter, an increase of 11 percent from the same period a year ago.
Transcat, however, reported a decrease in first-quarter revenue to $25.1 million from $26.1 million a year ago.
Total operating expenses were $5.6 million, down from $5.5 million. Operating income for the quarter was $600,000, up 4.2 percent from a year ago.
After a record year that saw Transcat exceed $100 million in revenue for the first time, CEO Charles Hadeed acknowledged that the company got off to a slower start than expected this year.
“The struggling US economy had an impact on the first quarter,” said Hadeed, president and CEO of Transcat, in a statement. “Sales in our product segment were impacted by a clear reduction in orders in April and May with the decline particularly evident in our industrial customer base.”
Transcat reported its results Tuesday afternoon after the markets closed. The company’s stock (Nasdaq: TRNS) was down 73 cents midday Wednesday at $6.25.
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