Mesa Laboratories (MLAB) has reported 8.72 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $3.64 million, or $0.94 a share in the quarter, compared with $3.99 million, or $1.06 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $4.80 million, or $1.24 a share compared with $4.97 million or $1.33 a share, a year ago.

Revenue during the quarter went down marginally by 2.07 percent to $24.30 million from $24.81 million in the previous year period. Gross margin for the quarter contracted 297 basis points over the previous year period to 57.47 percent. Total expenses were 78.02 percent of quarterly revenues, up from 76.45 percent for the same period last year. That has resulted in a contraction of 157 basis points in operating margin to 21.98 percent.

Operating income for the quarter was $5.34 million, compared with $5.84 million in the previous year period.

"Mesa completed fiscal 2017 with a solid fourth quarter," said John J. Sullivan, president and chief executive officer. "Revenues nearly matched the record fourth quarter of last year and profitability, as measured by adjusted net income "ANI", was strong. Absent the unusual items mentioned above, ANI in the fourth quarter would have been $5,572,000 which is 23 percent of revenues and 12 percent above last year’s fourth quarter. For the full year, I am very pleased that revenues increased 11 percent and ANI increased six percent to a new record of $16,228,000. Profitability for fiscal 2017 was negatively impacted by the unusual expenses mentioned above, along with the ramp up of a sales organization for our Cold Chain Packaging division. On an annual basis, these unusual expenses were partially offset by a lower tax rate for the full year of fiscal 2017."