American Science & Engineering [ASEI]
1Q13 1Q12
Sales $47.3M $51.1M
Net Inc. $4.2M, 0.47 $5.7M, 0.61
Sales dipped 7% in the quarter due to decreases in revenues from the parcel inspection and contract research and development (R&D) lines, which more than offset gains in its cargo, field service and ZBV product lines. Bookings in the quarter were $41.6 million, below sales, but much better than the $8.3 million recorded a year ago. AS&E booked nine Z Backscatter Vans and 4 ZBV Mil Trailers in the quarter. Income fell on the lower sales, losses on some long-term contracts and an inventory increase related to material purchases. The company also boosted its internal R&D spending by more than 10 % although this extra cost was offset by a reduction in selling, general and administrative expenses. Sales by product line were: cargo, $11.2M; Z Backscatter Systems, $10.6M; field service, $23.7M; parcel, $1.2M; and contract R&D, $569K. Anthony Fabiano, AS&E’s president and CEO, says the company is maintaining a focus on R&D as it gets ready to introduce new products, including a smaller version of its ZBV, the S-Class, which is already on the market, as well as a desktop Z Backscatter system and a handheld Z backscatter system. Fabiano says the pipeline of new business opportunities remains strong and that proposal activity is increasing in Central and Latin America, the Middle East and Africa. Backlog stood at $186.7 million, up 8% from a year ago. Based on discussions with its customers, he also says that AS&E doesn’t expect its war-related service revenues to decline as rapidly as others think it will as U.S. troops leave Afghanistan and Iraq. Free cash flow in the quarter was $2 million.
OSI Systems [OSIS]
4Q12 4Q11 FY12 FY11
Sales $235.2M $183.4M $793M $656.1M
Net Inc. $15.9M, 0.78 $12M, 0.61 $45.5M, 2.24 $33.4M, 1.71
Net income in the quarter increased 23% on a big gain in the Healthcare Group and to a lesser extent at Optoelectronics and Manufacturing while sales increased 28% to a quarterly record driven by a 50% increase at the Security Group to a record $118.4 million, an 18% boost at Healthcare and a slight rise at Optoelectronics and Manufacturing. The higher sales drove the income increase in the quarter. OSI introduced guidance for its next fiscal year, with sales expected to be up 10 to 12% to between $870 million and $890 million with earnings growth between 20 and 29% to between $2.75 to $2.95 earnings per share. Security sales in the quarter were driven by the company’s Entry Control Point contract with the Army, which is more than 90 percent complete. Operating income in the Security group was essentially flat at $8.1 million due to restructuring charges and start-up costs related to its turnkey screening services contract in Mexico, which is expected to begin generating “significant” sales in the second half of FY ’13, company officials say. A similar contract with the Puerto Rico Ports Authority is already recording revenues and profits, they say. Backlog at the end of the quarter stood at $1.1 billion, a 249% increase from a year ago, driven mainly by the screening services contract with Mexico. Security backlog was more than $900 million. Free cash flow in the quarter was $10 million. Company officials say the pipeline of business opportunities in the U.S. and internationally remains strong.