Transcat Inc. reported its net income rose 3.5 percent in its fiscal 2014 second quarter.
The company posted net income of $771,000, up from $745,000 a year ago. Earnings per share remained at 10 cents. The company reported its results for the quarter ended Sept. 28 after the market closed Monday.
Transcat’s revenues for the quarter grew 7.8 percent to $28.9 million, compared with $26.8 million a year ago. Growth from its service segment—up 16.6 percent—helped to drive the expansion. The company also saw a 2.7 percent increase in its distribution segment sales.
“We had solid growth in the quarter from both business segments, with our service segment realizing double-digit growth driven by a blend of organic growth and recent acquisitions,” said Lee Rudow, president and CEO.
Operating income rose 8.6 percent to $1.3 million. Operating margin was unchanged at 4.4 percent.
“We believe we are making great progress in executing our service segment growth strategy and leveraging the additional capabilities and market reach provided by our recent acquisitions,” Rudow said. “Our distribution segment sales growth was also in line with our expectations, serving as a solid foundation to complement our service segment growth.”
Transcat stock (Nasdaq: TRNS) was trading Tuesday midday at $8.80 a share, unchanged from Monday’s close.
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