Hurt by higher expenses related to restructuring and wage costs, Gerber Scientific (NYSE:GRB) tumbled more than 14% Thursday morning after reporting a second-quarter loss over a year ago profit.
However, its revenue rose on stronger equipment sales, leading the company to raise its fiscal 2011 view.
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The maker of integrated automation equipment and software posted a net loss of $16.11 million, or 64 cents a share, compared with a profit of $2 million, or 8 cents a share, in the same quarter last year.
Results for the period ended Oct. 31 were widely below average analyst estimates polled by Thomson Reuters of a 7-cent profit.
Earnings took a hit from higher expenses due to restructuring and goodwill impairment charges as well as the restoration of about $1.5 million in temporary wage reductions.
However, revenue for the South Windsor, Conn-based company was $129.3 million, up 9% from $118.7 million a year ago, beating the Street’s view of $120.38 million, and leading Gerber to raise its full-year revenue forecast to the range of $435 million to $440 million.
Gerber Scientific CEO Marc Giles attributed the revenue gains to a strong rebound in equipment sales, up 27% from the year-earlier period, as well as gains in software and aftermarket products, up 17% and 4%, respectively.
“We are particularly pleased by the significant ramp up in market demand within our apparel and industrial segment, which posted significantly higher orders across every business line and nearly every geographic market," said Giles said. “Market conditions have improved steadily during the first half of fiscal 2011, and, as a result, our outlook has certainly become more positive.”