Transcat, Inc. Reports 9% Revenue Growth For Fiscal 2018 First Quarter
Published: Jul 26, 2017
- Strong organic growth drives Service segment revenue up nearly 8%
- Distribution sales increased more than 11% reflecting diversification strategy and strengthening U.S. industrial markets
ROCHESTER, N.Y.--(BUSINESS WIRE)--Transcat, Inc. (NASDAQ: TRNS) (“Transcat” or the “Company”), a leading provider of accredited calibration, repair, inspection and laboratory instrument services and value-added distributor of professional grade handheld test, measurement and control instrumentation, today reported financial results for its first quarter ended June 24, 2017 of fiscal year 2018, which ends March 31, 2018 (“fiscal 2018”).
Lee D. Rudow, President and CEO, commented, “We kicked off fiscal 2018 with a solid quarter, driven by strong totally organic revenue growth in both of our business segments as there was no acquisitive revenue in the first quarter of fiscal 2018 versus fiscal 2017. Higher sales were driven by market share gains complemented by improved industrial markets in the U.S.
“Our Service segment began the year with solid momentum. A healthy backlog of orders entering the quarter and a robust business pipeline resulted in a nearly 8% revenue growth. We ramped up new labor resources that impacted productivity but laid the groundwork for the rest of the year. We believe our growth is the result of executing our plan to take market share by bringing on new enterprise customers and adding new capabilities.
“Our Distribution business had a great start to the year. Both our core distribution and growing rental business benefited from investments in our e-commerce capabilities, web-based marketing and improved domain authority/web placement. This is generating higher quoting levels and lead generation. Our Distribution segment also had some tailwinds from the recovery in the oil and gas sector and general improvement throughout U.S. industrial markets.”