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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: jchaulk who wrote (36738)	10/23/2001 9:33:28 AM
From: Sharck	Respond to of 37746

Holding long DPII, stop 3.80

To: jchaulk who wrote (36738)	10/23/2001 10:39:31 AM
From: Frederick Langford	Read Replies (1) \| Respond to of 37746

[INVN] - 10/23 - InVision Technologies Reports Fifth Consecutive Quarter of Profitablity - Expanding Operations in Response to Expected Increased Demand biz.yahoo.com For the quarter ended Sept. 30, 2001, InVision reported total revenues of $16.4 million versus revenues of $22.1 million in the same period a year ago. The company said net income more than doubled to $447,000, or $0.03 of earnings per diluted share, compared with net income of $197,000, or $0.02 of earnings per diluted share, in the third quarter of 2000. For the first nine months of fiscal 2001, InVision reported total revenues of $51.3 million versus $57.8 million a year ago. The company reported net income of $680,000, or $0.05 of earnings per diluted share, versus a loss of $2.1 million, or $0.17 per share, in the first nine months of 2000. ``We have received a high level of inquiries regarding our capabilities and production capacity since the events of September 11. However, these events did not contribute to our third quarter, which ended September 30. As a result of the increased market opportunity for InVision, we have started investing to significantly ramp up our manufacturing capacity,'' said Sergio Magistri, president and chief executive officer. ``InVision achieved improved profitability for the third quarter through reduced operating expenses and through the reversal of a reserve reported in other income. The reserve reversal is related to the resolution of a tax issue in our favor. Operating expenses in the third quarter declined by more than $1.9 million as compared to the third quarter of 2000, and in the nine-month period declined by $4.3 million as compared to the first nine months of 2000. We were able to offset research and development costs through increased Federal Aviation Administration (FAA) funding and also benefited from the cost reduction initiatives implemented over the last several quarters,'' he added. ``During the quarter, we continued to expand the market penetration of our Explosives Detection Systems (EDS) in both domestic and international markets. We shipped approximately $6.4 million in orders to the FAA, Israel's El Al Airlines, France and Chile, our first EDS sale in South America,'' Magistri said. ``We are positioned well going into the fourth quarter,'' Magistri continued, ``with a backlog of $42 million, including $24 million in EDS systems and service business. We also have a rapidly growing pipeline of EDS orders in negotiations.'' ``In the past few weeks, the FAA has made a number of specific statements supporting the implementation of a significantly higher rate of screening of checked baggage, including last week's comments by Jane Garvey, administrator of the FAA. ``While the FAA's aviation security program and its budget are not finalized,'' he continued, ``a number of legislative initiatives for achieving better aviation security are being discussed and proposed. The initiatives include statements about a significantly higher rate of screening and faster deployment of EDS equipment. Based on our assessment of the situation, we believe that a likely outcome will include short term actions to immediately increase the deployment of EDS followed within 3-6 months by a multi-year plan to achieve a substantial improvement in aviation security. Deadlines and budgetary figures have been disclosed to the media by different government and private entities. At the current time we believe that these numbers and deadlines should be considered preliminary, yet clearly indicating a substantial increase in demand and an acceleration of the aviation security timetable.'' Magistri noted that InVision announced a number of new contracts and orders, the revenues of which will be recorded during the fourth quarter of 2001 and in ensuing quarters, including: A three-year contract for InVision's CTX 2500 systems from France with a potential value of more than $16 million. It follows a contract signed last year for the CTX 9000DSi systems with a potential value of more than $27 million. The company's first order from Italy, a $9.3 million order for its CTX 9000DSi systems that will be installed in one of Milan's airports. An order for CTX 9000DSi systems from The Philippines for the Manila airport. An order from Sweden for CTX 9000DSi systems. ``We also realized several key milestones with our security technology programs at Quantum Magnetics, our fully owned subsidiary,'' Magistri said. ``These included the introduction of the i-Portal(TM) 100 used to screen airline passengers for weapons. We experienced initial promising results from tests conducted with the portal by the National Safe Skies Alliance, a federally funded non-profit corporation which tests aviation security equipment for the FAA.'' The i-Portal 100 utilizes magnetic sensing technology developed by Quantum. The device uses SecureScan 2000(TM) software developed by the Idaho National Engineering and Environmental Laboratory, and licensed from Milestone Technology, Inc.