Transcat Inc. reported unaudited consolidated earnings results for the second quarter and six months ended September 26, 2009. The company reported net revenue in the second quarter of fiscal 2010 was $18.5 million, relatively flat when compared with net revenue of $18.6 million in the second quarter of fiscal 2009. Second quarter fiscal 2009 results included six weeks of Westcon Inc. operations, which the company acquired on August 14, 2008. Net income was $0.2 million, or $0.02 per diluted share down from net income of $0.4 million, or $0.06 per diluted share for the same period of the prior fiscal year. Net income was negatively impacted by lower operating income from the company's product segment. Operating income was $336,000 against $739,000 for the same period last year. Income before income taxes was $308,000 against $707,000 for the same period last year. Net revenue for the first six months of fiscal 2010 was $35.7 million, down 2.1% when compared with net revenue of $36.5 million in the first six months of fiscal 2009. Fiscal 2009 results included six weeks of operations of Westcon as previously noted. Net income was $0.1 million, or $0.01 per diluted share compared with $0.7 million, or $0.09 per diluted share, for the same period of the prior fiscal year. Operating income was $220,000 against $1,127,000 for the same period last year. Income before income taxes was $163,000 against $1,088,000 for the same period last year. Net cash generated from operations was $3.5 million in the first six months of fiscal 2010 compared with $1.0 million in the same period of the prior fiscal year. Capital expenditures were $0.6 million in the first six months of fiscal 2010 and were primarily used for additional laboratory capabilities. This is relatively flat when compared with the same period of the prior fiscal year. The company provided capital expenditure guidance for the fiscal year 2010. The company expects capital spending for fiscal 2010 to be approximately $1.0 million.

Transcat Inc. announced unaudited consolidated earnings results for the first quarter ended June 27, 2009. For the quarter, the company reported net revenue of $17.2 million this represented a $0.6 million, or 3.6%, decline compared with revenue of $17.9 million in the first quarter of fiscal 2009. Operating loss was $0.1 million compared with operating income of $0.4 million in the first quarter of fiscal 2009. The loss was the result of lower product segment gross profit. Net loss was $0.1 million, or $0.01 diluted per share down from net income of $0.2 million, or $0.03 diluted per share for the same period of the prior fiscal year. Net income was negatively impacted by lower operating income from the company's product segment. Loss before income taxes was $0.1 million compared to income before income taxes of $0.3 million for the same period last year. Cash generated from operations was $1.5 million compared with $0.4 million in the same period of the prior fiscal year. Capital expenditures were $0.3 million compared with $0.2 million in the same period of the prior fiscal year and were primarily used for additional laboratory capabilities. The company expects capital spending for fiscal 2010 to be approximately $1.0 million.

Transcat Inc. said that the company will continue to look for acquisition opportunities. Charles P. Hadeed, President, CEO and COO of Transcat, said: �Our outlook remains unchanged. We believe that the next two quarters will continue to be soft and anticipate some recovery in our fiscal fourth quarter. Product sales to wind energy customers should continue to grow at a faster rate than our sales to other industries for the remainder of fiscal 2010. Our strong balance sheet and cash flow have positioned us to take advantage of opportunities that may present themselves, as we prudently seek appropriate acquisition candidates to further grow our service segment.�