Gerber Scientific 2Q profit doubles on tax benefit

Gerber Scientific Inc., which manufactures equipment used in making signs, specialty graphics, apparel and optical lenses, said Thursday its profit more than doubled in the fiscal second quarter due to a one-time tax benefit.

Gerber reported a profit of $6.1 million, or 26 cents per share, in the three months ended Oct. 31. That compares with $2.5 million, or 11 cents per share, a year earlier. The recent results included a tax benefit of $3.4 million, or 14 cents per share. That countered a 4 percent decline in revenue, as sales fell to $153.8 million to $160.7 million.

On average, Thomson Reuters said analysts were expecting a profit of 12 cents per share. Analyst estimates usually exclude one-time items.

Gerber said the benefit came from restructuring international business. It also trimmed its sales costs and general expenses during the quarter.

The company's product revenue slid 5 percent in the quarter, to $134.8 million from $142.1 million. Services revenue edged up to $19 million from $18.6 million.

Gerber also lowered its profit and revenue forecasts for fiscal 2009 due to delays in orders and lower demand. In morning trading, the stock rose 24 cents, or 11.1 percent, to $2.40.