Transcat, Inc. (NASDAQ:TRNS) Q3 2023 Earnings Call Transcript

Lee Rudow: No problem. So we love the Pipettes business for probably a couple of reasons that stand out. It’s a life science oriented business, which is where we tend to focus a lot of our time for all the reasons that we stated, Ted. The business is a recurring revenue stream. And we do a nice job. It’s got nice margins and nice growth potential. So today, we run our main operation at the New England area. As we speak, we’re opening up a West Coast facility. It’s our goal to do that and we’re working on it, so that even though the business doesn’t necessarily have to be local, it’s nice to have something in the general region. The reason why it’s in our plan to do that is because we see growth opportunities with this business.

Pipettes in general tend to be a nice kind of bridge between normal calibration and life sciences and kind of the base work and additional opportunities are brought via Pipette. So lots of reasons, good attributes, good margins, the business is really well run, we started through an acquisition that would be an example of extending our addressable markets. So that’s come to fruition really well. I will continue to develop that business for sure.

Ted Jackson: Is that a business that you’ll grow per se organically kind of bringing it along? Or is it a business as you look at your M&A funnel that you’re actively pursuing building on to?

Lee Rudow: I think you’ll see both.

Ted Jackson: Okay. Thanks and very nice solid quarter. Look forward to next quarter as well.

Lee Rudow: Thank you, Ted.

Operator: Thank you. Ladies and gentlemen, that concludes our question-and-answer session. I’ll turn the floor back to Mr. Rudow for any final comments.

Lee Rudow: Okay. Well, thank you. Thank you all for joining us on the call today. We appreciate your continued interest in Transcat. We will be participating in the 35th Annual ROTH Conference. I think that’s March 13 and March 14 , we’ll be there presenting, so feel free to check-in on us or check-in on us at any time. Otherwise, we look forward to talking to you all again after the fourth quarter results. Come out and thanks for participating on the call today. Take care.

Operator: Thank you. This concludes today’s conference call. You may disconnect your lines at this time. Thank you for your participation.