Transcat Inc. reported unaudited consolidated earnings results for third quarter and nine months ended December 29, 2012. For the quarter, the company's total revenue was $29,324,000 against $28,460,000 a year ago. Operating income was $1,221,000 against $1,653,000 a year ago. Income before income tax was $1,184,000 against $1,609,000 a year ago. Net income was $782,000 or $0.10 per diluted share against $1,024,000 or $0.13 per diluted share a year ago. EBITDA was $1,928,000 against $2,477,000 a year ago. The increase in revenue was driven by Service segment revenue growth of 8.9%.

For the nine months, the company's total revenue was $81,209,000 against $79,248,000 a year ago. Operating income was $2,995,000 against $3,464,000 a year ago. Income before income tax was $2,860,000 against $3,337,000 a year ago. Net income was $1,888,000 or $0.25 per diluted share against $2,095,000 or $0.27 per diluted share a year ago. Net cash provided by operating activities was $2,350,000 against $2,535,000 a year ago. Purchase of property and equipment was $2,189,000 against $1,233,000 a year ago. EBITDA was $4,884,000 against $5,669,000 a year ago. The decline in operating income reflects lower Product segment operating income partially offset by improved operating income within the Service segment. The change in cash flows was the result of working capital requirements and timing. The increase in capital expenditure was primarily for additional service capabilities, including implementing Salesforce.com and an additional calibration system to expand the company's pressure calibration capabilities.

For the fourth quarter of fiscal 2013, the company will have one less sales week compared with the prior-year period as a result of its 52/53 week fiscal cycle. In addition, the delay in production tax credits for manufacturers in the wind industry may affect product sales for the remainder of the fiscal year. The company expect its service segment operating income to significantly increase while the company face continued margin pressure within its product segment.