Gerber Scientific, Inc. Reports Second Quarter 2011 EPS of $.03

Gerber Scientific, Inc. GRB today reported revenue and operating results for its fiscal 2011 second quarter ended October 31, 2010.

• Reported revenue increased 9.0% to $129.3 million from $118.7 million. 
• Gross profit was $38.6 million or 29.9% of sales versus $35.2 million or 29.7% of sales. Prior year gross margin was 29.0% excluding licensing revenue.  The impact of foreign currency exchange rates reduced gross profit approximately $0.6 million;
• Selling, general and administrative (SG&A) expenses were $29.5 million, or 22.8% of sales, compared with $27.5 million, or 23.2% of sales. The current quarter includes the restoration of approximately $1.5 million in temporary wage reductions and $0.8 million in incentive compensation. Changes in foreign currency exchange rates lowered current quarter expenses approximately $0.6 million;
• Excluding goodwill impairment from the current quarter and restructuring charges from both periods, operating income was up 35.3% to $4.7 million compared with $3.5 million. Reported operating loss was $14.4 million compared with operating income of $2.9 million, reflecting a $16.9 million goodwill impairment charge in connection with the previously announced sale of the ophthalmic lens processing business and $2.2 million of restructuring and other expenses.
• Loss from continuing operations was $16.1 million, or $0.64 per diluted share, compared to income of $2.0 million, or $0.08 per diluted share. Net loss for the current quarter was $16.1 million, or $0.64 per diluted share, compared with income of $0.5 million, or $0.02 per diluted share. Excluding the goodwill impairment charge, diluted earnings per share were $0.03 per share;
• Net cash flows from operations, less capital expenditures, increased $3.6 million to $4.0 million, from $0.4 million in the prior year, due principally to working capital improvements;
• Total outstanding debt fell to $35.0 million, representing a $3.0 million reduction in the quarter and a $10.0 million reduction since April 30, 2010