(By Balaseshan) TAT Technologies Ltd. (NASDAQ: TATT), an Israel-based provider of products and services to aerospace and defense industries, swung to a quarterly profit on higher revenue across three of its segments and gross margins.
Earnings for the third quarter were $1.77 million or $0.20 per share, compared to a loss of $3.28 million or $0.37 per share last year. The last year results included a $5.76 million write down of inventories and impairment charges of long lived assets.
Revenue rose 6.6% to $22.08 million, on an increase in revenues from the OEM of Heat Management Solutions, OEM of Electric Motion Systems and MRO Services for Aviation Components. The rise in revenue was partially offset by the decrease in revenues in the Heat Transfer Services and Products segment.
Revenues from OEM of Heat Management Solutions rose 5% to $8 million, while Heat Transfer Services and Products revenue declined 3.4% to $6.66 million.
MRO Services for Aviation Components revenue grew 20.1% to $6.03 million, while OEM of Electric Motion Systems revenue increased 20.2% to $2.44 million.
Gross margin for the third quarter was a positive of 26.3%, compared to a negative of 6.5% in the previous year quarter.
"The results of the 2012 third quarter reflect the trend of continuous improvement Year over Year as we continued to increase revenues and gross margins compared to the corresponding periods in 2011. These improvements are attributed to the increase in our marketing and sales efforts during 2011 through 2012 as well as to our rigorous and continuing activity in improving our production flow and yields," said Itsik Maaravi, Chief Executive of TAT.
The company said it continues to focus on its core capabilities and expects that its efforts would sustain the trend of improved performance for the remainder of 2012 and in 2013.
TATT closed Wednesday's regular session up 0.20% at $5. The stock has been trading between $3.63 and $5.19 for the past 52 weeks.