EXHIBIT 99.1
FOR IMMEDIATE RELEASE
AMERICAN SCIENCE AND ENGINEERING, INC.
Reports FIRST QUARTER Fiscal Year 2004 Earnings
BILLERICA, Mass. – July 29, 2003 – American Science and Engineering, Inc. (AMEX: ASE) reported revenues of $17,388,000, operating profit 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 MobileSearchä 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, 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, and increasing revenues. Looking ahead, we are working to build a lean manufacturing organization, while examining internal processes and assessing advanced supply-chain practices to shorten 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 in cargo. In addition, our introduction and first sale of the Z® Backscatter Vanä 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, illegal drugs and other organic and inorganic contraband – and now, radioactive threats. The Z Backscatter Van employs AS&E’s signature Z® Backscatter X-ray 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.
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July 29, 2003
As previously announced, Dr. Heinisch and Ted Owens, 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. For international participants, dial 1-973-317-5319.
An audio replay of the conference call 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 301374. The replay will also be available at http://www.as-e.com/investor/investor.html following the conference.
ABOUT AS&E®
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, and imaging cargo to expose trade fraud and illegal immigration. AS&E’s patented Z® Backscatter technology detects plastic explosives, illegal drugs, and other contraband, 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® 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 for a variety of applications including medical, scientific, security, electron beam 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.
For more information:
Ted Owens
American Science and Engineering, Inc.
(978) 262-8700
Safe Harbor Statement
The foregoing press release contains statements concerning AS&E’s financial performance, markets and business operations 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. 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 and other governments; disruption in the supply of any sole-source component incorporated into AS&E’s products; 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 of Company resources, including human resources, 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.
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AMERICAN SCIENCE AND ENGINEERING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Unaudited
For the Quarter Ended | | June 30,
2003 | | June 30,
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.
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AMERICAN SCIENCE AND ENGINEERING, INC.
CONSOLIDATED BALANCE SHEET
(in thousands, except per share data)
| | June 30, 2003 | | March 31, 2003 | |
Assets | | | | | |
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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