American Science and Engineering [OSIS]
4Q13 4Q12 FY ‘13 FY ‘14
Sales $42.3M $39.8M $186.7M $203.6M
Net Inc. $760K, 0.09 $1.3M, 0.15 $17.5M, 2.07 $21.4M, 2.34
Net income fell 8% despite a 6% increase in sales in what the company calls a challenging quarter. Sales were impacted by continued delays in orders. Sales were driven by increases in cargo, parcel and Z Backscatter systems, which more than offset declines in field service and contract research and development. Margins declined due to several one-time adjustments, the largest being a $4.1 million charge related to resolving a contractual issue with a Middle Eastern customer that the company says is “significant to our strategy going forward.” Another charge of $1.3 million was related to workforce right-sizing. AS&E reduced its internal R&D expenses by $2 million in the quarter. Income taxes were also lower in the quarter. Bookings in the quarter were light, just $8.8 million versus $23.3 million a year ago due to the order delays. Bookings for the year were relatively flat at $180.3 million. Backlog at the end of March stood at $186.2 million, down 3% from the end of December. Free cash flow for the year was $27.5 million versus 45.8 million a year ago. AS&E authorized a new $35 million share repurchase program. AS&E’s new chief Chuck Dougherty says the cost and restructuring actions that have been taken and contributed to the charges in the quarter are behind the company.