(By Balaseshan) Taylor Devices Inc. (NASDAQ: TAYD), which manufactures shock absorption, rate control, and energy storage devices, reported a 86% jump in quarterly earnings on higher margins despite a 4% decline in revenue.
Earnings for the second quarter were $769,361 or $0.23 per share, up from $413,741 or $0.13 per share last year.
Revenue fell to $6.51 million from $6.78 million, due to lower long-term construction projects. The company had 31 projects in process during the current quarter, down from 44 in the previous year period.
Gross margin rose to 38% from 24%, on increase in the percentage of sales to customers in North America where the market conditions and the level of competition are more favorable to the company than in sections of Asia.
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Outside commission expense decreased 13%, primarily due to the decrease in commissionable sales in the current year. Other selling, general and administrative expenses increased 44% due to an increase in air-freight charges incurred in order to meet contractual obligations to deliver products on schedule.
"Higher shipment levels have reduced the order backlog to a manageable $13 million, reducing the longer delivery times which tend to occur with a higher order backlog. We believe 2013 should be another good and profitable year," said Douglas Taylor, President of Taylor Devices.
TAYD is trading down 0.57% at $8.70 on Monday. The stock has been trading between $7.24 and $12.18 for the past 52 weeks.