South Windsor technology firm Gerber Scientific Inc. lost $16.1 million in the fiscal second quarter despite a gain in sales and ongoing improvement in lowering operating costs.
The maker of automated pattern cutters and other industrial machinery and software said Thursday it lost 64 cents a share in the three months ended Oct. 31.
That compares to a profit of $459,000, or 2 cents a share, the same period last year.
The bulk of the loss was attributed to a goodwill impairment charge of $16.9 million related to its pending sale of its Gerber Coburn lensmaking-equipment division to a group of its managers.
Gerber last week announced plans to sell the division that makes equipment for shaping eyeglass lenses for $21 million. The deal is expected to close by New Year’s Eve.
Without the impairment charge, Gerber earned 3 cents a share in the latest quarter.
Second-quarter sales rose 9 percent to $129.3 million from $118.7 million a year ago.
News of Gerber’s loss sent its stock tumbling, down $1.14, or 12.7 percent, to $7.67 in late morning trading.
Gerber CEO Marc T. Giles pointed to several bright spots in the quarter, including a stable gross profit margin and reduced operating costs – including plans to consolidate headquarters and operations to Tolland — that should be saving Gerber around $20 million a year by fiscal 2012.
Order backlog, particularly in China, where the company has made some fairly big market bets, remains strong, Giles said.
He also said that even the impending loss of the ophthalmic lens processing business, Gerber’s fiscal 2011 sales will range between $435 million and $440 million for fiscal 2011. Its fiscal 2010 sales were $458.4 million.
