Gerber Scientific registers strong Q4 fiscal 2006 results

23 Jun '06

4 min read

Giles added, "Additionally, net cash provided by operating activities, less capital expenditures, of $12.8 million was extremely strong for the fourth quarter of fiscal 2006. As a result of this cash performance for the quarter, we were able to further reduce our net debt balance (debt less cash and cash equivalents) to $23.0 million, a $16.6 million reduction from the April 30, 2005 level."

During the fourth quarter of fiscal 2006, the Company determined that the accounting for its non-qualified supplemental pension plan, initiated in fiscal 1994, was not correct. If the correct method of accounting had been applied to the Non-Qualified Plan since its inception in fiscal 1994, the Company believes that this would have resulted in lower net earnings in certain fiscal years and higher net earnings in other fiscal years from fiscal 1994 through fiscal 2005.

Additionally, the Company believes that certain previously reported balance sheet amounts, particularly other assets, other long-term liabilities, deferred income taxes, accumulated other comprehensive loss and retained earnings, would also be impacted as a result of applying the correct accounting treatment to prior fiscal periods.

The 2006 financial results for the fourth quarter and fiscal year included in this earnings release reflect the correct accounting treatment for the Non-Qualified Plan.
The corrected accounting treatment for the Non-Qualified Plan will not have any impact on the Company's reported revenues during these fiscal years.

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