Gerber Scientific (GRB) unveils new super printer

Just in time for the presidential debating season, and the accompanying protests, Gerber Scientific Inc. (NYSE: GRB) is unveiling a new super printer, the Solara Ion, capable of printing high-quality, dry-upon-contact, wide-format posters, banners, and jumbo-sized wall hangings. (Think "Mission Accomplished.") The flatbed platform printer can accommodate flexible as well as rigid materials up to 1 inch thick, 5 feet wide and 10 feet long. The printer has output capacity of 639 square feet per hour and uses a patented low temperature, low energy printing process.

Gerber Scientific produces manufacturing systems for mass customizations. The company is hoping that sales of this printer will help boost profits, which were flat in the company's recently released 1Q FY 2008 earnings report. Operating income was $4.4 million on $153.7 million worth of revenue. The year previous, the company also posted operating income of $4.4 million on $137.5 million worth of revenue. $16 million more in revenue and not a penny more in profits? Sounds like it's time to hold management's feet to the fire.

CEO Marc Giles believes Gerber is on the right track. Revenues are up, sales volume is up. Giles pointed to the introduction of the new printer as well as Gerber's expansion into the specialty graphics market in China as positive signs. Revenue and order volume as well as equipment orders are up 62% in China. In the near future, Gerber needs to transform these increases into the all important increase in profits.