Gerber profit beats Street, shares jump

(Reuters) - Gerber Scientific Inc GRB.N, a supplier of automated manufacturing systems, posted better-than-expected first-quarter earnings from continued operations, helped by lower expenses, sending its shares up as much as 22 percent.

The company said its revenue level has stabilized and it expects to be back on track to deliver improved earnings performance in the last half of fiscal 2010.

For the quarter ended July 31, net income fell to $514,000, or 2 cents a share, from $681,000, or 3 cents a share in the same period last year.

Excluding items, the company posted earnings from continued operations of 5 cents a share, beating two analysts' expectations of earnings of a cent.

Revenue fell about 25 percent to $119.7 million.

The analysts were expecting revenue of $120.8 million, according to Reuters Estimates.

Gross profit for the quarter rose to 28.1 percent from 26.6 percent, last year, while selling, general and administrative expenses fell by about 26 percent to $25.4 million.

The company's shares, which have gained about 45 percent of their value in the last six months, were up 69 cents at $4.49 in Thursday morning trade on the New York Stock Exchange. They earlier touched a high of $4.63.

(Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Maju Samuel)