Schmitt Industries announced its operating results for the 2018 first quarter ended August 31, 2017.
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For the three months ended August 31, 2017, total sales increased $191,116, or 6.6%, to $3,083,648 from $2,892,532 in the three months ended August 31, 2016.
Net loss was $134,098, or $0.04 per fully diluted share, for the three months ended August 31, 2017 as compared to net loss of $125,629, or $(0.04) per fully diluted share, for the three months ended August 31, 2016.
Balancer segment sales focus throughout the world on end-users, rebuilders and original equipment manufacturers of grinding machines with the target geographic markets in North America, Asia and Europe.
Balancer segment sales increased $509,521, or 32.6%, to $2,070,397 for the three months ended August 31, 2017 compared to $1,560,876 for the three months ended August 31, 2016, primarily due to stronger sales in all three of our target markets – Europe, Asia and North America.
The Measurement segment product line consists of Acuity laser-based distance measurement and dimensional sizing products and Xact remote monitoring products for propane and diesel tanks.
Total Measurement segment sales decreased $318,405, or 23.9%, to $1,013,251 for the three months ended August 31, 2017 compared to $1,331,656 for the three months ended August 31, 2016, primarily due to decreases in sales in both the Xact and Acuity product lines in addition to the impact on sales associated with the phase out of the SMS® and Lasercheck® product lines.
Gross margin for the three months ended August 31, 2017 decreased to 45.4% as compared to 47.6% for the three months ended August 31, 2016.
The fluctuation in gross margin in the three months period ended August 31, 2017 compared to the same three month period in the prior fiscal year is primarily influenced by shifts in the product sales mix involving our three main product lines.
Operating expenses increased $53,285, or 3.6%, to $1,544,801 for the three months ended August 31, 2017 as compared to $1,491,516 for the three months ended August 31, 2016.
General, administrative and selling expenses increased $55,675, or 3.9%, for the three months ended August 31, 2017 as compared to the same period in the prior year. ■