(RTTNews) - Analytical instruments maker Waters Corp. (WAT: News ) reported Tuesday a rise in third-quarter profit, which also exceeded analysts' estimates, reflecting lower costs and expenses incurred during the period. Net sales declined 3% year-on-year, yet came above Street view.

The Milford, Massachusetts-based company's net income for the third quarter increased to $75.94 million or $0.79 per share from $71.5 million or $0.71 per share in the previous year.

Adjusted earnings for the quarter were $0.81 per share, higher than $0.79 per share in the prior year. On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.77 per share for the quarter. Analysts' estimates typically exclude special items.

In its second quarter, the company had reported net income of $69.91 million or $0.72 per share, down from $83.15 million or $0.82 per share in the same quarter last year. On a non-GAAP basis, net income for the second quarter was $0.78 per share, up 3% from $0.76 per share in the comparable quarter last year.

Net sales for the third quarter declined 3% to $373.96 million from $386.31 million in the same quarter last year. Eleven analysts had a consensus revenue estimate of $363.52 million for the quarter. The company said its quarterly sales include an adverse foreign currency translation impact of about 1%.

In its immediately preceding second quarter, the company posted net sales of $362.84 million, compared to $398.77 million in the previous-year quarter.

Cost of sales during the recent quarter decreased to $153.14 million from $158.52 million in the year earlier. Cost of sales for the three months include restructuring and other incremental costs of $1.2 million related to cost reduction plans.

Selling and administrative expenses fell to $102.67 million from $107.46 million a year ago. Research and development expenses slightly declined to $19.31 million from $19.95 million in the preceding year.
Provision for income taxes were $18.1 million, down from $21.99 million last year. According to the company, provision for income taxes for the prior-year quarter include a one-time charge of $5.1 million related to restructuring certain legal entities. During the nine months ended October 3, 2009, the company reversed $4.6 million of this charge as a result of changes in income tax regulations promulgated by the U.S. Treasury in February 2009.

Interest expenses for the quarter were sharply lower at $2.08 million compared to $4.54 million last year.

Commenting on the quarterly results, Douglas Berthiaume, chairman, president and chief executive officer said, "Business trends in the third quarter suggest a stabilization of demand by our major end markets. Customer interest in our new products is encouraging and indicates that research-related spending may benefit our future results. Additionally, our focus on expense and balance sheet management is reflected in the third quarter's financial results, including excellent cash flow generation in the quarter."

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