American Science & Engineering [ASEI]
4Q14 4Q13 FY14 FY15
Sales $65.6M $42.3M $190.3M $186.7M
Net Inc. $4.0M, 0.50 $800K, 0.9 $15.1M, $1.91 $17.5M, $2.07
Top line growth of 55% in the fourth quarter was due to strong double-digit gains in revenues from Cargo and Mobile Cargo inspection systems, which was partially offset by a halving of service revenues, while net income quintupled on higher sales and the lack of a charge that depressed earnings a year ago. International business accounted for 50% of the annual sales, up from 34% a year ago. Cargo sales of $30.6 million more than doubled due to completion of the integrated port security project at Khalifa in Dubai and a more than fourfold increase in Mobile Cargo—Z Backscatter Vans—sales to $18.8 million on the strength of international awards. AS&E also posted a strong increase in sales for parcel and personnel systems to $2.6 million. The service business was down to $11 million in sales due to contract changes for war-related business. The company had $60.8 million in bookings in the quarter and $180.2 million for the year, with 73% international. For the year the company booked 94 ZBV orders, three times the number a year ago, with 98% from international customers. AS&E is seeing increasing demand for the ZBV for contraband detection and from state and provincial governments, a trend that will benefit the company and industry, says Chuck Dougherty, AS&E’s president and CEO. “Geographic expansion,” one of the company’s four key strategic growth initiatives, is the largest opportunity at the moment, he says on the earnings call. Portfolio expansion, another initiative, will see some traction in the short-term as the company begins to introduce a family of miniaturized backscatter systems beginning in late June, he says. Backlog at the end of March stood at $176.1 million versus $186.2 million a year ago.