Revenue during the quarter went up marginally by 1.15 percent to $85.66 million from $84.69 million in the previous year period. Gross margin for the quarter contracted 326 basis points over the previous year period to 24.99 percent. Total expenses were 96.71 percent of quarterly revenues, up from 93.65 percent for the same period last year. That has resulted in a contraction of 306 basis points in operating margin to 3.29 percent.

Operating income for the quarter was $2.82 million, compared with $5.38 million in the previous year period.

However, the adjusted operating income for the quarter stood at $3.54 million compared to $5.60 million in the prior year period. At the same time, adjusted operating margin contracted 248 basis points in the quarter to 4.14 percent from 6.62 percent in the last year period.

Dennis W. Wells, chief executive officer and president, commented, "challenge as a general weakness in our markets, combined with a difficult comparison with the prior year (caused in part by significant sales to a large graphics customer in the year-ago period), led to soft sales growth. Net sales in the quarter increased 1% year-over-year." "Inflationary pressures affected raw material costs, especially steel and aluminum; and freight costs increased as a percentage of sales. We also saw increases in commissions, wages, and health benefits, though some of this impact was blunted through Lean activities aimed at cost reductions. Our gross margin for the quarter was 25.0%, or 25.7% excluding restructuring costs, compared to 28.3% a year ago."