American Science and Engineering, Inc. Reports First Quarter Fiscal Year 2004 Earnings.Business Editors/High-Tech Writers BILLERICA, Mass.--(BUSINESS WIRE)--July 29, 2003 American Science and Engineering, Inc. (AMEX AMEX See: American Stock Exchange : ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. ) reported revenues of $17,388,000, operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $235,000 and earnings per share of $0.02 for the first quarter (ended June 30, 2003) of fiscal year 2004. This represents a $2,470,000 increase in revenues and a $0.17 change in earnings per share versus the first quarter of the prior fiscal year. Compared to the previous quarter ended March 31, 2003, revenues increased by $4,503,000, operating profits increased by $3,976,000 and earnings per share changed by $0.79. The first quarter 2004 results reflect: (1) An increase in revenue from the sale and shipment of four MobileSearch(TM) X-ray inspection systems to the DoD; (2) increased SG&A expenses due to one-time charges associated with the departure of AS&E's former CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Ralph Sheridan; and (3) the full quarter benefit of cost reduction measures taken in the fourth quarter of fiscal year 2003. "I am very pleased with our first quarter results," commented Dr. Roger Heinisch, Interim President and CEO. "While I am satisfied with our achievements, we are actively charting a course to sustain this profitability. We were successful this quarter by controlling operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , and increasing revenues. Looking ahead, we are working to build a lean manufacturing Lean manufacturing is the production of goods using less of everything compared to mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product. organization, while examining internal processes and assessing advanced supply-chain practices to shorten (audio, compression) Shorten - A form of lossless audio compression. our time to market." Dr. Heinisch continued, "The 11 MobileSearch orders received this quarter clearly demonstrate a commitment by the DoD and other U.S. Government agencies to deploy the best technology solutions to guard against terrorism. AS&E currently has 61 MobileSearch systems either deployed or on order and 14 systems that will be equipped with Radioactive Threat Detection technology to combat the threat of WMD WMD white muscle disease. in cargo. In addition, our introduction and first sale of the Z(R) Backscatter backscatter in radiology, radiation deflected by scattering processes at angles greater than 90 degrees to the original direction of the beam of radiation. Important in radiotherapy when estimating surface exposure dose. Van(TM) highlight the benefits of using AS&E's technology to effectively screen vehicles and containers, with minimal impact to the flow of commerce." MobileSearch X-ray inspection systems provide security officials with a highly effective means for detecting weapons, plastic explosives plastic explosive n. A versatile explosive substance in the form of a moldable doughlike solid, used in bombs detonated by fuse or electrical impulse. Also called plastique. , illegal drugs and other organic and inorganic inorganic /in·or·gan·ic/ (in?or-gan´ik) 1. having no organs. 2. not of organic origin. in·or·gan·ic n. 1. contraband contraband, in international law, goods necessary or useful in the prosecution of war that a belligerent may lawfully seize from a neutral who is attempting to deliver them to the enemy. - and now, radioactive threats. The Z Backscatter Van employs AS&E's signature Z(R) Backscatter X-ray In contrast to the traditional X-ray machine, which detects hard and soft materials by the variation in transmission through the target, backscatter X-ray is a newer imaging system which detects the radiation which comes back from the target. technology, which produces photo-like X-ray images of a vehicle or container, highlighting organic materials. AS&E's Z Backscatter Van is an extremely mobile, low-cost and high-speed X-ray inspection tool built into a commercially available delivery van. With one-sided Z Backscatter imaging, security personnel can use the Z Backscatter Van by simply driving alongside the suspect vehicle or object. As previously announced, Dr. Heinisch and Ted Owens Ted Owens (1920-1987) was a man who claims to have had contacts with multi-dimensional Extremely Advanced Beings. Mr. Owens suffered severe head injuries on several occasions as a youth. Despite these Mr. , Vice President and Chief Financial Officer, will host a conference call on Wednesday, July 30 at 11 a.m. ET to discuss the results and respond to questions. To participate in the call, please dial 1-800-915-4836 at least 10 minutes prior to starting time Noun 1. starting time - the time at which something is supposed to begin; "they got an early start"; "she knew from the get-go that he was the man for her" commencement, get-go, offset, outset, showtime, start, kickoff, beginning, first . For international participants, dial 1-973-317-5319. An audio replay of the conference call will be available, in its entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. , starting at 1 p.m. ET for a 48-hour period by dialing 1-800-428-6051. Internationally, please dial 1-973-709-2089. The conference identification number is 301374. The replay will also be available at http://www.as-e.com/investor/investor.html following the conference. ABOUT AS&E (R) AS&E develops and manufactures sophisticated X-ray inspection products for critical detection and security applications. These systems are solving an expanding range of inspection problems including detecting car and truck bombs, combating weapons smuggling smuggling, illegal transport across state or national boundaries of goods or persons liable to customs or to prohibition. Smuggling has been carried on in nearly all nations and has occasionally been adopted as an instrument of national policy, as by Great Britain , and imaging cargo to expose trade fraud and illegal immigration "Illegal alien" and "Illegal aliens" redirect here. For other uses, see Illegal aliens (disambiguation). Illegal immigration refers to immigration across national borders in a way that violates the immigration laws of the destination country. . AS&E's patented Z(R) Backscatter technology detects plastic explosives, illegal drugs, and other contraband, even when artfully concealed con·ceal tr.v. con·cealed, con·ceal·ing, con·ceals To keep from being seen, found, observed, or discovered; hide. See Synonyms at hide1. in complex backgrounds by terrorists and smugglers. AS&E's Shaped Energy(TM) X-ray inspection systems combine material discrimination features of Z(R) Backscatter imaging with the penetration capability of high-energy X-rays for dense cargoes, without the problems caused by excessive radiation. AS&E's High Energy Systems Division manufactures linear accelerators linear accelerator: see particle accelerator. linear accelerator or linac Type of particle accelerator that imparts a series of relatively small increases in energy to subatomic particles as they pass through a sequence of for a variety of applications including medical, scientific, security, electron beam A stream of electrons, or electricity, that is directed towards a receiving object. See electron beam imaging and electron beam lithography. curing and non-destructive testing. For more information on AS&E products and technologies, please visit http://www.as-e.com. AS&E, MobileSearch, Z Backscatter, Z Backscatter Van, and Shaped Energy are registered trademarks or trademarks of American Science and Engineering, Inc. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement The foregoing press release contains statements concerning AS&E's financial performance, markets and business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets that may be considered "forward-looking" under applicable securities laws. AS&E wishes to caution readers of this press release that actual results might differ materially from those projected in any forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Factors which might cause actual results to differ materially from those projected in the forward-looking statements contained herein include the following: significant reductions or delays in procurements of the Company's systems by the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and other governments; disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. in the supply of any sole-source component incorporated into AS&E's products; litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. seeking to restrict the use of intellectual property used by the Company; potential product liability claims against the Company; global political trends and events which affect public perception of the threat presented by drugs, explosives and other contraband; global economic developments and the ability of governments and private organizations to fund purchases of the Company's products to address such threats; and the potential insufficiency INSUFFICIENCY. What is not competent; not enough. of Company resources, including human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , capital, plant and equipment and management systems, to accommodate any future growth, our ability to find a replacement for our Chief Executive Officer and future delays in federal funding. These and certain other factors which might cause actual results to differ materially from those projected are detailed from time to time in AS&E's periodic reports and registration statements filed with the Securities and Exchange Commission, which important factors are incorporated herein by reference. AS&E undertakes no obligation to update forward looking statements to reflect changed assumptions, the occurrence of unanticipated events, or change in future operating results, financial condition or business over time.
AMERICAN SCIENCE AND ENGINEERING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Unaudited
June June
30, 30,
For the Quarter Ended 2003 2002
----------------------------------------------------- ------- -------
Net sales and contract revenue $17,388 $14,918
Gross profit 4,986 3,490
Selling, general, and administrative expenses 3,563 3,172
Research and development expenses 1,188 1,866
------- -------
Operating income (loss) 235 (1,548)
Other income (expense) (Note 1) (115) 639
------- -------
Income (loss) before provision for income taxes 120 (909)
Provision for income taxes - -
------- -------
Net income (loss) $ 120 $ (909)
======= =======
Income (loss) per common share - diluted $ 0.02 $ (0.15)
======= =======
Shares used in income (loss) per share calculation
- diluted 7,011 5,975
======= =======
Note 1: Included in other income (expense) was $274,000 in expense
in the quarter ended June 30, 2003 and $723,000 in income in the
quarter ended June 30, 2002, representing the change in the "mark to
market" value during the period of the outstanding warrants issued in
connection with the private placement of common stock. The net income
per share before considering this item in the quarter ended June 30,
2003 was $0.06 per share. The net loss per share before considering
this item in the quarter ended June 30, 2002 was $0.27 per share.
The results of operations reported herein may not be indicative of
future financial conditions or results of future operations.
AMERICAN SCIENCE AND ENGINEERING, INC.
CONSOLIDATED BALANCE SHEET
(In thousands, except per share data)
June 30, March 31,
Assets 2003 2003
Current assets:
Cash and cash equivalents $7,938 $5,585
Restricted cash 2,139 1,895
Short-term investments 4,594 4,538
Accounts receivable, net of allowances of $246 at
June 30, 2003 and March 31, 2003 11,456 10,499
Unbilled costs and fees, net of allowances or
$437 at June 30, 2003 and March 31, 2003 3,274 4,343
Inventories 13,434 15,748
Prepaid expenses and other current assets 1,167 822
--------------------
Total current assets 44,002 43,430
--------------------
Non-current assets:
Other assets 132 138
Patents and other intangibles, net of accumulated
amortization of $426 at June 30, 2003 and $405
at March 31, 2003 14 34
Property and equipment, net of accumulated
depreciation of $11,009 on June 30, 2003 and
$10,549 at March 31, 2003 3,410 3,714
--------------------
$47,558 $47,316
====================
Liabilities & Stockholders' Investment
Current liabilities:
Line of credit $ - $ -
Accounts payable 3,395 5,327
Accrued salaries and benefits 1,714 1,476
Accrued warranty costs 535 535
Deferred revenue 1,746 1,928
Customer deposits 4,346 2,747
Other current liabilities 1,425 1,221
--------------------
Total current liabilities 13,161 13,234
--------------------
Non-current liabilities:
Warrant liability 1,094 820
Deferred revenue 524 751
Deferred compensation 83 85
Deferred rent 50 68
--------------------
Total non-current liabilities 1,751 1,724
--------------------
Stockholders' investment:
Preferred stock, no par value - -
Common stock, $.66-2/3 par value 4,596 4,581
Capital in excess of par value 38,931 38,780
Cumulative translation adjustment 2 -
Accumulated deficit (10,883) (11,003)
--------------------
Total stockholders' investment 32,646 32,358
--------------------
$47,558 $47,316
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