ATS Automation Tooling Systems Inc. ATA-T says its net income from continuing operations fell by half to $6-million in the summer quarter as the company continued to feel the impact of lower spending by its customers.
The fiscal second-quarter profit amounted to 7 cents per share, down from $12.7-million or 16 cents a year earlier. Last year's profit was only 12 cents per share after taking into account now-discontinued operations.
ATS said Tuesday its revenue for the three months ended Sept. 27 dropped to $148.2-million from $219.5-million, with both its Automation Systems Group and the Photowatt solar energy segment recording declines from a year ago.
The results were ahead of a consensus estimate compiled by Thomson Reuters. It found analysts, on the whole, expected revenue of $144-million and earnings of 6 cents per share.
Revenue at the automation group, which makes equipment for manufacturers in various industries, fell to $97-million from $147.4-million a year ago while Photowatt revenue dropped to $51.5-million from $72.5-million.
Since the quarter ended, ATS announced a plan for Photowatt to provide an integrated variety of products and services for the Ontario solar energy market.
Photowatt had a small operating profit of $600,000 in the fiscal second quarter, compared with an operating loss of $7.5-million in the prior quarter and operating earnings of $6-million in the year-earlier period.
The automation group's earnings from operations held steady despite the lower revenues, coming in at $13.6-million in the most recent quarter and $13.9-million a year earlier.
However bookings at ATG were 47 per cent lower at $71-million, compared with $133-million in the year-earlier period.
Anthony Caputo, the company's chief executive officer, said efforts to fix its operations and reposition Photowatt over the past 18 months has helped ATS to operate profitably in the most recent quarter.
“We remain focused on the front-end of our business, in both ASG and Photowatt, and we will continue to adapt our strategies to respond to this difficult environment.”
ATS shares closed Monday at $6.54 on the Toronto Stock Exchange.
