EXHIBIT 99.1

 

FOR IMMEDIATE RELEASE

 

AMERICAN SCIENCE AND ENGINEERING, INC.

REPORTS SECOND QUARTER FISCAL YEAR 2009 RESULTS AND

DECLARES QUARTERLY DIVIDEND

 

BILLERICA, Mass. – Nov. 10, 2008 – American Science and Engineering, Inc. (NASDAQ: ASEI) (AS&E^®), a leading worldwide supplier of innovative X-ray inspection solutions, today reported its financial results for the second quarter of fiscal year 2009 ended September 30, 2008. The Company reported record revenues of $56,293,000 as compared with revenues of $37,627,000 for the second quarter of fiscal year 2008, net income of $7,361,000 as compared with net income of $4,515,000 for the second quarter of fiscal year 2008, and earnings per share of $0.83 as compared with earnings per share of $0.48 for the second quarter of fiscal year 2008. This represents a 50% increase in revenues and a $0.35 increase in earnings per share when compared to the second quarter of the prior fiscal year.

 

For the first six months of fiscal year 2009 ended September 30, 2008, the Company reported revenues of $95,787,000, which represents an increase of 17% as compared with revenues of $82,098,000 for the same period in the prior fiscal year, net income of $10,050,000 as compared with net income of $10,687,000 for the same period in the prior fiscal year, and net income per share of $1.13 for each of those periods.

 

The Company reported $93.5 million in bookings for the second quarter of fiscal year 2009 versus $55.6 million in the second quarter of the prior fiscal year. Backlog at September 30, 2008 increased 61% to a record $197 million as compared to the prior year.

 

“We are very pleased with our financial and operating results for the second quarter,” said Anthony Fabiano, AS&E’s President and CEO. “Revenue growth was outstanding at 50% with increased revenues across all primary business areas.  Our continued focus on strategic priorities has driven growth and improved operating income, resulting in a 63% increase in net income and greatly improved earnings per share.

 

“Bookings for the quarter increased 68% with $93.5 million in new orders reflecting the continued strength of our Z Backscatter Van™ (ZBV™) for force protection, counter-drug and anti-terrorism applications,” Fabiano said.  “Additionally, the on-going focus on international markets resulted in robust ZBV bookings for emerging sales territories. AS&E’s proprietary Z Backscatter continues to achieve market recognition as a premier technology to detect explosives, drugs and other contraband. Moreover, our Field Service business reported record bookings, reflecting our increased installed base and high level of customer satisfaction.

 

“AS&E reached a milestone this quarter as we celebrated our 50^th anniversary in advancing X-ray technologies for security applications. Going forward, we remain confident in our abilities to execute our strategies to develop and innovate world-class security detection solutions in this rapidly evolving marketplace,” concluded Fabiano.

 

In accordance with the previously announced dividend program, the Company is declaring a quarterly cash dividend of $0.20 per share, payable on December 4, 2008 to the holders of record at the close of business on November 17, 2008.

 

As previously announced, Anthony Fabiano, President and CEO, and Ken Galaznik, Senior Vice President, CFO and Treasurer, will host the conference call on Monday, November 10, 2008 at 4:30 pm ET to discuss the results and respond to questions. To participate in the conference call, please dial 1-800-599-9829 at least 10 minutes prior to its starting time. For international participants, dial 1-617-847-8703. Please tell the operator the confirmation code: 64398321. You will be placed on hold until the conference call is ready to begin.

 

An audio replay of the teleconference will be available, in its entirety, starting Monday, November 10, 2008 at 6:30 p.m. ET for a 48-hour period by dialing 1-888-286-8010. Internationally, please dial 1-617-801-6888. The conference identification number is 12125895. The replay will also be available at www.as-e.com in the Investor Information section following the conference.

 

 

About AS&E^®

American Science and Engineering, Inc. (AS&E) is the leading worldwide supplier of innovative X-ray inspection systems. With 50 years of experience in developing advanced X-ray security systems, the Company’s product line utilizes a combination of technologies, including patented Z Backscatter technology, Radioactive Threat Detection (RTD), high energy transmission and dual energy transmission X-ray. These technologies offer superior X-ray threat detection for plastic explosives, plastic weapons, liquid explosives, dirty bombs and nuclear devices. AS&E’s complete range of products include cargo inspection systems for port and border security, baggage screening systems for facility and aviation security, and personnel and passenger screening systems. AS&E systems protect high-threat facilities and help combat terrorism and trade fraud, drug smuggling, weapon smuggling, and illegal immigration and people smuggling. AS&E customers include leading government agencies, border authorities, military bases, airports and corporations worldwide, including the U.S. Department of Homeland Security (DHS), U.S. Department of Defense (DoD), U.S. Customs and Border Protection (CBP), North Atlantic Treaty Organization (NATO), HM Revenue & Customs (U.K.), Hong Kong Customs, and Abu Dhabi Customs. For more information on AS&E products and technologies, please visit www.as-e.com.

 

Contact:

Ken Galaznik, Senior Vice President, CFO and Treasurer

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 source component incorporated into AS&E’s products and other factors which may cause delays in production and delivery schedules; litigation seeking to restrict the use of intellectual property used by the Company; potential product liability claims against the Company; failure of any of our products to meet performance requirements or to continue to operate reliably because of unexpected design flaws or manufacturing defects, 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, 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 changes in future operating results, financial condition or business over time.

 

 

AMERICAN SCIENCE AND ENGINEERING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(unaudited)

 

		Quarter Ended						Six Months Ended
		September 30, 2008			September 30, 2007			September 30, 2008			September 30, 2007
Total net sales and contract revenues		$	56,293		$	37,627		$	95,787		$	82,098
Total cost of sales and contracts		33,766			23,549			58,731			50,619
Gross profit		22,527			14,078			37,056			31,479
Expenses:
Selling, general and administrative		7,394			5,851			15,093			12,334
Research and development		4,176			2,773			7,739			5,530
Total expenses		11,570			8,624			22,832			17,864
Operating income		10,957			5,454			14,224			13,615
Interest and other, net		544			1,599			1,479			3,473
Income before provision for income taxes		11,501			7,053			15,703			17,088
Provision for income taxes		4,140			2,538			5,653			6,401
Net income		$	7,361		$	4,515		$	10,050		$	10,687
Income per share - Basic		$	0.85		$	0.49		$	1.16		$	1.16
Income per share - Diluted		$	0.83		$	0.48		$	1.13		$	1.13
Weighted average shares - Basic		8,650			9,194			8,682			9,180
Weighted average shares - Diluted		8,893			9,461			8,901			9,425

 

The results of operations reported herein may not be indicative of future financial conditions or results of future operations.

 

 

AMERICAN SCIENCE AND ENGINEERING, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

		September 30, 2008			March 31, 2008
Assets
Current assets:
Cash and cash equivalents		$	53,046		$	52,418
Restricted cash and investments		2,210			319
Short-term investments, at fair value		50,409			72,687
Accounts receivable, net		38,839			27,583
Inventories		41,853			40,107
Other current assets		13,223			12,506
Total current assets		199,580			205,620
Non-current assets:
Building, equipment and leasehold improvements, net		20,736			22,201
Restricted cash		16,401			2,204
Other assets		6,910			5,509
Total assets		$	243,627		$	235,534
Liabilities & Stockholders’ Equity
Current liabilities:
Accounts payable		$	10,870		$	12,660
Customer deposits		16,835			6,547
Deferred revenue		18,937			23,120
Other current liabilities		16,254			13,837
Total current liabilities		62,896			56,164
Non-current liabilities:
Lease financing liability		8,967			9,540
Other non-current liabilities		5,983			3,758
Total liabilities		77,846			69,462
Total stockholders’ equity		165,781			166,072
Total liabilities and stockholders’ equity		$	243,627		$	235,534

 

 

AMERICAN SCIENCE AND ENGINEERING, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

		For the six months ended
		September 30, 2008			September 30, 2007
Cash Flows from operating activities:
Net income		$	10,050		$	10,687
Adjustments to reconcile net income to net cash (used for) operating activities:
Depreciation and amortization		2,142			2,023
Provision for contracts, inventory and accounts receivable reserves		935			117
Amortization of bond discount		(336		)	(1,110		)
Deferred income taxes		(1,173		)	(1,048		)
Stock based compensation expense		2,238			2,668
Change in value of warrants		—			(11		)
Changes in assets and liabilities:
Accounts receivable		(11,332		)	2,461
Unbilled costs and fees		3,865			(7,226		)
Inventories		(2,605		)	(15,555		)
Prepaid expenses and other assets		(4,810		)	(839		)
Accounts payable		(1,790		)	857
Accrued income taxes		2,823			—
Customer deposits		10,288			(2,566		)
Deferred revenue		(1,943		)	1,458
Accrued expenses and other current liabilities		(56		)	58
Sale of leased asset		116			—
Non-current liabilities		(15		)	—
Net cash provided by (used for) operating activities		8,397			(8,026		)
Cash flows from investing activities:
Purchase of short-term investments		(38,943		)	(82,480		)
Proceeds from maturities of short-term investments		61,250			73,025
Purchases of property and equipment		(793		)	(1,885		)
Issuance of note receivable		—			(250		)
Net cash provided by (used for) investing activities		21,514			(11,590		)
Cash flows from financing activities:
Decrease (increase) in restricted cash and investments		(16,088		)	278
Proceeds from exercise of warrants		—			509
Proceeds from exercise of stock options		1,967			2,800
Repurchase of shares of common stock		(11,398		)	(4,225		)
Proceeds from financing of leasehold improvements		—			50
Repayment of leasehold financing		(565		)	(774		)
Payment of common stock dividend		(3,509		)	(1,843		)
Reduction of Income taxes paid due to the tax benefit from employee stock option expense		331			1,268
Net cash used for financing activities		(29,262		)	(1,937		)
Foreign currency translation effect on cash		(21		)	6
Net increase (decrease) in cash and cash equivalents		628			(21,547		)
Cash and cash equivalents at beginning of period		52,418			69,650
Cash and cash equivalents at end of period		$	53,046		$	48,103