Sales at test, measurement and calibration instruments distributor Transcat increased 8.4%, to $20.0 million for its fiscal third quarter, which ended Dec. 27. Sales include those from Westcon, which Transcat acquired for about $7.2 million in August 2008.
In fact, company officials said in a release that the sales increase was driven by the Westcon acquisition, which added $1.6 million to net revenue for the quarter, whereas organic net revenue was relatively flat. But Transcat’s net income sank 75%, to $300,000, down from $1.2 million for the same quarter last year.
Transcat president/CEO/chief operating officer Charles P. Hadeed said in a statement: “Despite the dramatic downturn in the economy in the last months of calendar 2008, organic service segment revenue increased slightly in the quarter while the addition of Westcon was the primary reason for our top line growth. The relative steadiness of the regulated businesses we serve, such as life sciences that require consistent, quality calibration services, more than offset declines in energy and industrial markets.”
He added: “The impact of the recession is more obvious in our product segment business. Product sales were up 7.5% for the quarter with the acquisition; however, these results were below our expectations.”