Gerber Completes Financial Audit

Apparel industry technology provider Gerber Scientific Inc. completed an audit of its finances and restated its year-end earnings following inquiries by federal authorities over its accounting practices.

While the company reported a $119 million loss for the year ending April 30, compared to a $23 million loss last year, its technology division, which supplies cutting-room equipment and CAD/CAM software to the apparel industry, has showed improved results.

“We realized $10.5 million in operating profit this year, even in the face of the global economic recession and fallout from the September 11th tragedy,” said James Arthurs, Gerber Technology’s executive vice president. Overall profits in the apparel and flexible material segment grew 24 percent to $37 million. Arthurs said growth has come in part by investing in emerging international markets including China, Mexico and India.

The division also reported sales of $158.1 million. When combined with estimated value- added sales by the company’s agents and distributors, Gerber remains the leading supplier of PDM (product data management) and CAD/CAM products to the flexible- goods industries, said Arthurs. The company’s business is equally split among North America, Europe and Asia/the Middle East/South America.

Meanwhile, Gerber’s parent company has been bogged down by slowness in its sign-making businesses and other areas.

It’s also facing numerous class-action lawsuits brought on by shareholders who lost money from falling stock prices, which they blame in part on Gerber’s alleged wrongful accounting practices.

Gerber Scientific said it continues to cooperate with the Securities & Exchange Commission, which is investigating its accounting procedures. —Robert McAllister