Thursday, Flow International Corp. (FLOW), a developer and manufacturer of industrial waterjet machines for cutting and cleaning applications, reported a rise in first quarter profit, as the company posted an operating income compared to an operating loss last year. Earnings beat analysts' estimates.
The Kent, Washington-based company's first quarter net income increased to $1.60 million or $0.04 per share from $0.44 million or $0.01 per share in the prior-year quarter. Adjusting for certain events in the current and year-ago quarters, quarterly earnings per share grew to $0.08 from $0.05 in the year-ago period.
On average, four analysts polled by First Call/Thomson Financial expected earnings of $0.05 per share for the quarter.
Income from continuing operations increased 341% to $1.53 million from $0.35 million in the prior-year period. Pro forma income from continuing operations grew to $3.08 million from $1.91 million in the previous year period. Pro forma net income for the quarter increased to $3.14 million from $2.0 million in the year-earlier period.
Gross margins improved to 46% from 40% due to improved operating efficiency and a higher mix of revenue from consumable parts, while operating profit improved to $3.76 million from a prior-year loss of $1.64 million. Total operating expenses declined 11% from last year. Quarterly sales declined slightly to $57.07 million from $57.86 million in the year-ago period and came below analysts' estimate of $60.79 million for the quarter.
Sales of standard segment increased 4% to $52.75 million from $50.76 million a year ago. However, advanced segment sales declined 39% to $4.31 million from $7.10 million last year, significantly affected by the unprofitable non-waterjet automation systems business that the company exited during 2008.
FLOW closed Wednesday's trading at $6.74 on an average 3-month volume of 402K.
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