Technology company Heico Corp. on Wednesday reported modest growth in sales and profits for the first fiscal quarter, though operating income decreased compared to a year ago.
The company, with headquarters in Miami and Hollywood, reported that net sales increased 2 percent to $216.5 million for the quarter that ended Jan. 31.
Net income increased 4 percent to $20 million. The company said net income for the quarter includes a benefit of two cents per diluted share from the retroactive extension of the research and development income tax credit.
Operating income dropped from $37.6 million in the first quarter of fiscal 2012 to $34.9 million.
“As expected, global economic uncertainty and domestic governmental spending reductions were principal contributing factors to the nominal sales growth and lower operating income reported in the first quarter of fiscal 2013,” the company said in a press release. But optimism remains for the rest of the year, Heico said in the release, noting that growth in airline capacity and maintenance spending is expected in the later part of the fiscal year.
The company, which makes components for the space, defense, communications, medical and computer industries as well as replacement parts for airplanes, raised estimates for the full fiscal year. Heico now expects 6-8 percent year-over-year growth in net sales and 9-11 percent growth in net income, compared to previous estimates of 5-7 percent growth.