Transcat Inc. (TRNS) filed Quarterly Report for the period ended 2009-09-26.
Transcat, Inc. distributes test and measurement instruments and provides accredited calibration services to a variety of industries including life sciences, pharmaceutical, petroleum refining, chemical manufacturing, public utility, pulp and paper, communications, automotive and aerospace. Transcat Inc. has a market cap of $40.6 million; its shares were traded at around $5.49 with a P/E ratio of 42.2 and P/S ratio of 0.5. Transcat Inc. had an annual average earning growth of 70.3% over the past 5 years.
Highlight of Business Operations:
Our average product sales per business day decreased to $190 in the second quarter of fiscal year 2010, compared with $206 in the second quarter of fiscal year 2009. Our product sales per business day for each fiscal quarter during the fiscal years 2010 and 2009 are as follows:
Service revenue increased $0.9 million, or 15.5%, from the second quarter of fiscal year 2009 to the second quarter of fiscal year 2010. Within any year, while we add new customers, we also have customers from the prior year whose calibrations may not repeat for any number of factors. Among those factors are variations in the timing of customer periodic calibrations on instruments and other services, customer capital expenditures and customer outsourcing decisions. Because the timing of calibration orders and segment expenses can vary on a quarter-to-quarter basis, we believe a trailing twelve month trend provides a better indication of the progress of this segment. Service segment revenue for the twelve months ended September 26, 2009 were $25.2 million, up 7.6% when compared with $23.4 million for the twelve months ended September 27, 2008. Our fiscal years 2010 and 2009 service revenue growth in relation to prior fiscal year quarter comparisons is as follows:
Total product gross profit in the second quarter of fiscal year 2010 was 22.2% of total product sales and declined 380 basis points when compared with 26.0% of total product sales in the second quarter of fiscal year 2009. Product gross profit declined $0.7 million in the second quarter of fiscal year 2010 compared to the second quarter of fiscal year 2009, which was the result of reduced volume, increased price discounting and lower vendor point-of-sale rebates. Vendor point-of-sale rebates are based on year-over-year growth in product segment sales. We did not qualify for this type of rebate in the second quarter of fiscal year 2010. In the second quarter of fiscal year 2009, point-of-sale rebates were $0.1 million. The following table reflects the quarterly historical trend of our product gross profit as a percent of total product sales:
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