SOUTH WINDSOR, Conn.—Gerber Scientific, Inc. (NYSE: GRB) reported revenue and earnings results for its fiscal 2010 first quarter ended July 31, 2009, noting that its overall revenues declined and net income was flat while gross margins and operating income increased. The group’s lens processing equipment segment, Gerber Coburn, showed an increase in operating profit for the period.

Gerber Scientific’s total revenue declined 24.6 percent to $119.7 million from $158.9 million. Core business was down 27 percent including the effects of currency fluctuations, which decreased revenue $11.6 million, or 7.3 percent, while acquisitions completed after the fiscal 2009 first quarter increased reported revenue by $3.8 million, or 2.4 percent. The company’s overall net income was $0.5 million in the current quarter, compared with $0.7 million. Current quarter net income included the loss from discontinued operations, net of tax, of $0.8 million. The company’s total outstanding debt was reduced by $13 million from fiscal 2009 year end to $60.5 million.

Gerber Coburn’s lens processing equipment segment reported operating profit for the quarter ending July 31 of $695,000, compared to $155,000 in the prior year’s quarter.

“While we continued to experience weakness across most of our markets, as evidenced by the 17 percent constant currency sales decline in our first quarter, we were pleased to report increases in our gross profit margin, operating income and income from continuing operations, which is directly related to the measures we implemented in fiscal 2009 to lower costs and improve operating efficiencies,” said Marc Giles, Gerber Scientific president and CEO. “These measures, combined with strong working capital management and a heightened focus on cash generation, resulted in a year-over-year improvement of more than $20 million in operating cash flow, less capital expenditures, and allowed us to reduce our total debt by $13 million.”

Giles continued, “As we reported last quarter, we have also been reviewing several potential asset sales that could generate proceeds of up to $20 million, which would allow us to further reduce our outstanding debt and increase our flexibility under the existing credit facility. To that end, we recently announced we have reached an agreement to sell FOBA Technology + Services GmbH. We are pleased to report that we just received clearance from the German Cartel Office and expect to close the transaction next week, which will generate approximately $8.0 million to $8.5 million in net cash proceeds.”

Gerber Scientific Inc.’s divisions include Gerber Scientific Products, Spandex, Gerber Technology and Gerber Coburn. ■