National Technical Systems Inc. beat analyst estimates on earning per share for the first quarter as the company benefited from earlier announced layoffs.
The Calabasas engineering and test services firm for the aerospace, defense, automotive and energy industries reported net income of $1.4 million (12 cents a share) for the quarter ended April 30, compared with $954,000 (8 cents) in the same period a year earlier. Revenue increased 3.6 percent to $45 million.
Analysts on average had forecast earnings per share of 11 cents for the first quarter, according to Thomson Financial Network.
Streamlining of senior management contributed to the strong first quarter as did growth in its core testing business, said National Technical Chief Executive William McGinnis.
“Our key markets remain strong, opportunities are growing, and our largest clients are looking to NTS to provide an even greater level of service,” said McGinnis, in a prepared statement.
In May, the company announced an unspecified number of layoffs as it centralized administrative functions after several acquisitions over the last few years. At the time, it projected annual savings of $5 million to $6 million.
In addition to the Calabasas headquarters, National Technical operates sites in Santa Clarita, 11 other states and Munich, Germany. The company did not specify where the reductions would take place.
Shares closed down a penny to $13.98 on the Nasdaq.