American Science and Engineering, Inc. Reports Fourth Quarter and Fiscal Year 2003 Results.Business Editors BILLERICA, Mass.--(BUSINESS WIRE)--May 28, 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. ) today reported its financial performance for the fourth quarter and audited results for the fiscal year ended March 31, 2003. Results announced in this earnings release are consistent with expectations announced in April. For fiscal year 2003, revenues decreased 5% to $61,958,000 compared with revenues of $65,396,000 in fiscal year 2002. American Science and Engineering (AS&E(R)) incurred operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $7,879,000 during fiscal year 2003 as compared with operating losses of $3,850,000 during the prior fiscal year. Pretax losses pretax loss A loss reported before tax benefits are considered. were $5,495,000 for the year ended March 31, 2003 versus pretax losses of $4,512,000 for the year ended March 31, 2002. After recording an additional valuation allowance against the Company's deferred tax assets of $2,456,000, the Company had an after-tax loss of $7,951,000 or $1.20 per share for the year ended March 31, 2003, as compared to a loss of $4,512,000 or $0.87 per share for the year ended March 31, 2002. For the fourth quarter of fiscal year 2003 revenues decreased 22% to $12,885,000 as compared to $16,542,000 for the same period last year. Operating losses for the quarter were $3,741,000 versus operating losses of $349,000 during the quarter ended March 31, 2002. AS&E realized an after-tax loss of $5,287,000 in the quarter ended March 31, 2003, which represents a $0.77 loss per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. This compares to an after-tax loss of $2,022,000 or $0.37 per diluted share for the quarter ended March 31, 2002. Dr. Roger Heinisch, Interim President and 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. , commented, "Our fourth quarter and fiscal year revenues were down because of many factors, including the delay in passage of the 2003 Federal Budget until February of this year, a delay in MobileSearch(TM) awards, and work stoppage stoppage - /sto'p*j/ Extreme lossage that renders something (usually something vital) completely unusable. "The recent system stoppage was caused by a fried transformer." on a significant cargo project in the Middle East during the Iraqi war. The operating losses reflect: (1) shortfalls in revenue; (2) the increase in cost of sales due to the increase in reserves for excess or obsolete inventories Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. , as well as unabsorbed manufacturing capacity due to production declines, and; (3) continued investment in Research & Development, specifically 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, Shaped Energy(TM) systems and Radioactive Threat Detection technology. "Although the fourth quarter and fiscal year results were disappointing, the current quarter bookings are encouraging as federal funding has started to flow. In the last thirty days, we have announced over $20 million in orders from the U.S. Department of Defense (DoD)," continued Dr. Heinisch. "Our business focus - to offer technology solutions to high-threat government and military facilities - continues to gain momentum. Recent orders from the DoD and a new order from the Department of Homeland Security Noun 1. Department of Homeland Security - the federal department that administers all matters relating to homeland security Homeland Security executive department - a federal department in the executive branch of the government of the United States for AS&E's Radioactive Threat Detection technology demonstrate the U.S. Government's commitment to addressing the risk of a terrorist attack involving radioactive materials radioactive material Radiation A substance that contains unstable–radioactive–atoms that give off radiation as they decay. See Radioactive decay. . The ability to detect potential radioactive threats, including weapons of mass destruction Weapons that are capable of a high order of destruction and/or of being used in such a manner as to destroy large numbers of people. Weapons of mass destruction can be high explosives or nuclear, biological, chemical, and radiological weapons, but exclude the means of transporting or and 'dirty bombs' is crucial to port security. These new orders underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. the value that the DoD places on AS&E's proprietary Backscatter technology in combination with transmission, and now Radioactive Threat Detection for Force Protection and Homeland Defense initiatives." 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 Thursday, May 29 at 11 a.m. Eastern time 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 teleconference will be available, in its 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 295639. The replay will also be available at http://www.as-e.com/investor/investor.html immediately 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 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 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. , even when artfully concealed in complex backgrounds by terrorists and smugglers. AS&E's Shaped EnergyTM 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. 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 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 more fully set forth under the caption ``Forward-Looking Information and Factors Affecting Future Performance'' in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for fiscal year ending March 31, 2002.
AMERICAN SCIENCE AND ENGINEERING, INC.
CONSOLIDATED FINANCIAL SUMMARY
(in thousands, except per share data)
Quarter Ended Fiscal Year Ended
(Unaudited)
Mar. Mar. Mar. Mar.
31, 31, 31, 31,
2003 2002 2003 2002
------- ------- ------- -------
Net sales and contract revenues $12,885 $16,542 $61,958 $65,396
Gross profit 219 4,871 10,949 16,039
Selling, general, and
administrative expenses 2,406 2,906 12,409 12,753
Research and development 1,554 2,314 6,419 7,136
------- ------- ------- -------
Operating loss (3,741) (349) (7,879) (3,850)
Other income (expense) 910 (144) 2,384 (662)
------- ------- ------- -------
Loss before provision for income
taxes (2,831) (493) (5,495) (4,512)
Provision for income taxes 2,456 1,529 2,456 -
------- ------- ------- -------
Net loss $(5,287) $(2,022) $(7,951) $(4,512)
======== ======== ======== ========
Loss per common share $ (0.77) $ (0.37) $ (1.20) $ (0.87)
======== ======== ======== ========
Shares used in loss per share
calculation - Diluted 6,868 5,538 6,627 5,191
======== ======== ======== ========
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)
March 31, March 31,
Assets 2003 2002
Current assets:
Cash and cash equivalents $5,585 $7,591
Restricted cash 1,895 -
Short-term investments 4,538 -
Accounts receivable, net of allowances of $246 at
March 31, 2003 and $111 at March 31, 2002 10,499 7,216
Unbilled costs and fees, net of allowances or $437
at March 31, 2003 and March 31, 2002 4,343 5,456
Inventories 15,748 21,013
Deferred income taxes - 2,475
Prepaid expenses and other current assets 822 685
-------- --------
Total current assets 43,430 44,436
-------- --------
Non-current assets:
Non-current deferred income taxes - 823
Other assets 138 204
Patents and other intangibles, net of accumulated
amortization of $405 at March 31, 2003 and $351 at
March 31, 2002 34 115
Property and equipment, net of accumulated
depreciation of $10,549 on March 31, 2003 and
$15,366 at March 31, 2002 3,714 4,663
-------- --------
$47,316 $50,241
======== ========
Liabilities & Stockholders' Investment
Current liabilities:
Line of credit $ - $9,319
Accounts payable 5,327 6,557
Accrued salaries and benefits 1,476 1,577
Accrued warranty costs 535 196
Deferred revenue 1,928 1,030
Customer deposits 2,747 4,875
Accrued income taxes - 763
Other current liabilities 1,221 1,783
-------- --------
Total current liabilities 13,234 26,100
-------- --------
Non-current liabilities:
Warrant liability 820 -
Deferred revenue 751 691
Deferred compensation 85 109
Deferred rent 69 212
-------- --------
Total non-current liabilities 1,725 1,012
-------- --------
Stockholders' investment:
Preferred stock, no par value - -
Common stock, $.66-2/3 par value 4,580 3,699
Capital in excess of par value 38,780 22,482
Accumulated deficit (11,003) (3,052)
-------- --------
Total stockholders' investment 32,357 23,129
-------- --------
$47,316 $50,241
-------- --------
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