UPDATE 1-ATS Automation Q4 profit falls on inventory write-off

* Q4 EPS C$0.03 vs C$0.15 yr ago

* Revenue down 31 pct to C$138.8 mln

* Begins formal process to separate Photowatt division

June 2 (BestGrowthStock) – ATS Automation Tooling Systems Inc
(ATA.TO: ) posted an 85 percent plunge in quarterly profit, hurt
partly by an inventory write-off at its Photowatt division, and
said it began a formal process to separate the unit.

The company’s Photowatt division, which makes components
used in the solar energy industry, was hit by C$40.3 million in
inventory write-downs in the fourth quarter.

“As we move forward in fiscal 2011, our focus is on growth
in our core Automation Systems Group (ASG) business and the
separation of Photowatt,” Chief Executive Anthony Caputo said
in a statement.

For the quarter ended March 31, net income was C$2.1
million ($2.0 million), or 3 Canadian cents per share, compared
with C$13.5 million, or 15 Canadian cents a share, a year ago.

The company, which makes manufacturing and industrial
equipment for the automotive, healthcare, energy and consumer
electronics industries, said revenue fell 31 percent to C$138.8
million.

Analysts on average were expecting the company to earn 7
Canadian cents per share, on revenue of C$142.7 million,
according to Thomson Reuters I/B/E/S.

Shares of the Cambridge, Ontario-based company closed at
C$6.81 Tuesday on the Toronto Stock Exchange.

Investment Research

($1=1.054 Canadian Dollar)
(Reporting by Abhiram Nandakumar in Bangalore; Editing by Anne
Pallivathuckal)

UPDATE 1-ATS Automation Q4 profit falls on inventory write-off