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Technology Stocks : Vivid Technologies (VVID) -- Ignore unavailable to you. Want to Upgrade?


To: Jeff Guy who wrote (1)1/4/1998 6:52:00 PM
From: Sergio H  Respond to of 16
 
Company Strategy and Sector Heat

VIVID TECHNOLOGIES
Stock Ticker: VVID
Address:10 East Commerce Way
Woburn, MA 01801
Tel:781-938-7800
Fax:781-939-3996
Website:http://www.vividusa.com

We lead off the new year with VVID. The company fundamentals are very good and the timeliness could not be better. Under new domestic flight measures adopted by the Federal Aviation Administration and put into effect New Year's Day, the baggage of passengers who fit a certain security risk profile may be checked for explosives. Significant security improvements including the continuing installation of explosives detection devices at many airports and the use of explosives trace detection equipment at security checkpoints are also part of the new directives. Bradley International in Hartford, Ct. is the first airport in the country to tighten up security measures under the new FAA directive dated Dec.23, 1997. Specifics regarding the upgrades will not be revealed for security reasons. It is a reasonable assumption to expect Vivid Technologies to obtain additional business from the FAA as well as directly from the airlines as is the case in the recently announced contract with JFK International Airport.
faa.gov

In November 1997, the Company received an order for seven Model APS systems for the new Terminal One at JFK International Airport in New York. This will be the first terminal in the world to screen all carry-on baggage for explosives. This contract is specially significant because it is the first airport security contract in the U.S. not funded by the FAA.
biz.yahoo.com

The JFK contract combined with new FAA requirements have provided VVID new potential business in airports across the US. Up to this time the company has conducted most of its business overseas. In the first six months of fiscal 1997, 100% of revenues were generated internationally, approximately 70% in Europe, and 30% in Asia.

VVID presents a compelling picture:
* New US Airport business will provide steady income revenue.
* The company has been receiving important contracts internationally, demonstrating its ability to find new customers and receiving repeat business from existing customers.
* The company has very favorable analyst coverage and strong earning projections.
* Royalty fees VVID pays have been reduced as per contract arrangement, improving the bottom line.
* It has settled a major litigation case with a competitor.
* Strong Insider and Institutional ownership.
* VVID's products can be used outside of the aviation market and the potential for increased demand in other applications is huge.

The share price seems to have been held back due to:
1. Insider selling by James Aldo, a VP, during Sept.
2. Weakness in the sector after the run-up during the summer.
3. Lengthy product introduction process for new customers.

Some basic numbers:
Total shares = 9.42 million and float is 2.3 million
P.E. is 21 compared to the industry avg.of 52
(projected PE based on '98 earning estimates is 15)
Avg. daily volume is over 90k
ROE 30%
ROA 22%
Profit margin 18%

Recent Co. developments:
In 1997 the Company introduced the Model APS, a freestanding system to screen carry-on baggage for explosives and weapons. The Model APS can also be used in the non-aviation market to screen baggage at public, private and government facilities. The first unit was sold in June 1997 to the Public Intelligence Department in Riyadh, Saudi Arabia for the protection of VIP's.

10/30/97 Vivid Technologies's 4th qtr results: Revs (mils) from $5.41 to $9.77 up 80.5%. Net Income (mils) from $0.11 to $2.03 up 1,682.5%. EPS from $0.01 to $0.20 up 1,900%. The earnings for this quarter were above Wall Street Analysts' consensus estimate of 0.19.

09/08/97 Vivid Technologies said it received an order valued at more than $1 million for four of its Model VDS II explosives detection systems from British Airways PLC.

08/11/97 The Federal Aviation Administration awarded Vivid Technologies with a contract to supply eight automated dual energy X-ray explosives-detection systems with the option for 12 additional systems. The contract could be worth as much as $10.7 million.

08/11/97 Vivid Technologies said the FAA has placed a $4 million purchase order for the company's automated dual energy x-ray explosives detection systems, with a total maximum contract value of $10.7 million.

07/29/97 Vivid Technologies's 3rd qtr results: Revs (mils) from $3.92 to $8.31 up 111.8%. Net Income (mils) from $0.41 to $1.72 up 320%. EPS from $0.05 to $0.17 up 240%. The earnings for this quarter were equal to Wall Street Analysts' consensus estimate of 0.17.04/23/97VVID's 2nd qtr results: Revs (mils) from $3.22 to $7.76 up 140.6%. Net Income (mils) from $0.34 to $1.31 up 283.6%. EPS from $0.05 to $0.13 up 160%.

( BW)(PROFILE/VIVID-TECH)(VVID) Corporate Profile for Vivid Technologies Inc.
dated Nov. 7, 1997
(URL) www.vividusa.com
Chief Executive Officer: S. David Ellenbogen
Chief Financial Officer: Bill Frain
Industry: Security Equipment Manufacturer

Market Makers: Lehman Brothers, Cowen Co., Needham Company, Pacific Growth Equities, Herzog, Heine, Geduld Inc., Troster Singer Corp., Knight Securities, John G. Kinnard Co., Mayer Schweitzer Inc., Donald Co. Securities and Sherwood Securities Corp.

Company description: Vivid Technologies Inc. is the leading developer and manufacturer of automated inspection systems that detect plastic and other explosives. Vivid's family of advanced explosives detection systems can be used to screen checked and carry-on luggage in an airport application and to enhance building security by screening bags and parcels. Vivid's systems identify targeted materials by analyzing the physical characteristics of each item in a bag, including the atomic number and mass, using patented composition analysis techniques and proprietary dual-energy X-ray technology. These systems automatically (without the use of an operator) isolate and identify targeted materials within a bag, thereby preventing a suspect bag from being loaded into an aircraft or entering a building until cleared by operator inspection. Vivid's systems can also be used to identify drugs and currency. Vivid's systems have been selected for use at numerous airports around the world including London's Heathrow and Gatwick Airports, Paris' Charles de Gaulle and Orly Airports, Kuala Lumpur International Airport in Malaysia, Chek Lap Kok Airport in Hong Kong, Brussels in Belgium, Amsterdam Schiphol and several airports in the United States. For the fiscal year ended Sept. 30, 1997, Vivid posted total sales of $31,702,188 and net income of $5,865,578 or $.60 per share.



To: Jeff Guy who wrote (1)1/4/1998 6:57:00 PM
From: Sergio H  Read Replies (1) | Respond to of 16
 
VVID--TC2000 says that the 5 and 18 day TSV are in bullish territory and turning up,but not as high as recent peak of 16.50 in early and middle of Nov. BOP is moderately good at this time and Moneystream is flat on the 1 day chart, but very strong from 2 days up. The 5/13/40 day ema is in a bullish configuration and uptrending. The Sto's that I watch(13/8/8,13/5/7, and 89/3/5)are all moving up and look strong. OBV is also bullish with the daily reading above both the 40 day and 89 day MA. 16.50 is a major resistence and past that there are road blocks at 17 5/8, 18 3/8 and 19 3/4. Happy trading. Myron



To: Jeff Guy who wrote (1)1/4/1998 7:05:00 PM
From: Sergio H  Respond to of 16
 
V VID - ANALYST COVERAGE AND MEDIA ATTENTION Current Recommendations: From Zack's: Brokerage Firm Date of Last Update NEEDHAM & COMPANY INC 11/28/97 BUY COWEN & COMPANY 10/31/97 STRONG BUY Major Broker 10/31/97 BUY ------------------------------------------------------------------------------------------------------------------------------- From Briefing.Com: Date CompanySymbol Brokerage Firm Initial:Change to: July 7 Vivid TechVVID Pacific Growth Strong Buy March 31 Vivid TechVVID Lehman Bros OutperformBuy ------------------------------------------------------------------------------------------------------------------------------- Comments from Cowen and Co reference - VVID Story Stocks Tue 06/24, 1997 ****** 15:25 ET ****** VIVID TECHNOLOGIES (VVID) 17 3/64 +1 59/64. Issue is on the move as investors react to very bullish comments made by Cowen & Co on the manufacturer of automated explosives detection systems. Indeed, the firm is making an agressive call; one that if comes to fruition should spark a surge in the stock's price. According to Cowen, the Federal Aviation Administration will place its first order for the Vivid's systems within a couple of weeks. The firm is expecting the FAA to place an order for a total of 20 detection units, of which between 5 and 10 will be for Vivid's $400,000 systems. Although the firm is not making a call on this company, it predicts that EG&G Inc (EGG 20 1/2 +1/2) will be one of the other bomb-detection equipment makers to receive orders. The purpose of Cowen's comments was simply to move the stock toward its 6-month price target range of $20-$21 a share. As a result, the firm left all views unchanged, including its investment rating of "strong buy" and earnings estimates of $0.50 and $0.77 a share for fiscal years 1997 and 1998. For those thinking of taking the plunge, hold on, 'cause this is a volatile one. Just so you know, Cowen was one of the underwriters of the company's December IPO at $12 a share. ------------------------------------------------------------------------------------------------------------------------------- Installations Vivid Technologies has been selected for use in 33 airports in 13 countries including London's Heathrow and Gatwick airports, Brussels in Belgium, Paris Charles de Gaulle Airport, Zurich in Switzerland, Amsterdam, Kuala Lumpur in Malaysia, Hong Kong, and seven airports in the United states ref: Kennedy National Airport, NY) The Terminal One Group Association, a consortium of four foreign airlines constructing the sleek glass structure, signed a $1.7-million contract with Vivid Technologies of Woburn, Mass., for 13 systems designed to automatically inspect checked, oversized and carry-on baggage, company officials said. Currently only carry-on baggage is X-rayed for suspicious it



To: Jeff Guy who wrote (1)1/4/1998 7:07:00 PM
From: Sergio H  Respond to of 16
 
VVID is Financially Solid....

''We are extremely proud to have just completed our fourth consecutive
year of profitability,'' said Stephen Reber, president and chief
operating officer of Vivid. ''Our record results during fiscal1997 are
evidence of the growth we saw in the market for automated explosives
detection equipment during the past year and of our leading worldwide
market share. We are encouraged by the increasing interest in explosives
detection technology from airports, individual terminals and airlines
both here and abroad.''

The Highlights.....

1. Fourth quarter 1997 VVID reported record income of $2,031,547 or
.20 vs$ 113,686 or .01 for 1996 an increase of 1900%.
2. Revenues for the fourth quarter were $9,772,259 vs $5,415,458 in
1996, an increase of 80%
3. Net income for fiscal 97 was $ 5,865,578 or .60 vs.$1,164,764 or
.15 in 96, an increase of 300%
4. Cash and equivalents have jumped to 11.5 million from 1.6 million
5. Total current assets have increased to 35 million from 10.8
million, an increase of over 200% while at the same time, current
liabilities have decreased to $ 5.7 million from $ 11.8
million, a reduction of more than 50% from the previous year.

For a complete review you may go to

biz.yahoo.com

Some history of past quarterly performance that effectivly shows that
the company is moving very strongly forward

Quarterly Performance:
Date(Qtr) 9709(4) 9706(3) 9703(2) 9612(1) 9609(4)
Revenue ($Mil) 9.8 8.3 7.8 5.9 5.4
Net Income(Mil) 2.0 1.7 1.3 .8 .1
EPS ($) .20 .17 .13 .10 .04



To: Jeff Guy who wrote (1)1/4/1998 7:10:00 PM
From: Sergio H  Read Replies (2) | Respond to of 16
 
VVID - Analyst Coverage and Media Attention (2 of 2)

Here's the media coverage on Airport Security and Airport Security specific to Vivid Technologies. Carol has another good article that she will post later today.

Media Information Specific to Airport Security and the FAA requirements:

Airport Security

Under new domestic flight measures adopted by the Federal Aviation
Administration and put into effect New Year's Day, the baggage of
passengers who fit a certain security risk profile may be checked for
explosives. Airline officials have not made clear exactly who may be
stopped but said bags will not be loaded on a plane unless the bag's owner
also boards." - Ref:

news.courant.com

The Department of Transportation (DOT)helps keep the skies friendly by
monitoring the safety of foreign aiports. Under the 1985 law, DOT assesses security at foreign airports. If the Secretary determines that security at an airport is not effective, DOT is required to notify the foreign government of the findings and recommend corrective actions after notifying the U.S. Secretary of State. If the deficiencies are
not remedied within 90 days, the department is required by law to publish the name of the airport and to inform the public about the finding.
> dot.gov
------------------------------------------------------------------------------------
Now Articles on Airport Security that specifically mention Vivid Technologies

Science & Technology: SECURITY

NOW ARRIVING AT U.S. AIRPORTS: BOMBPROOFING
The FAA is finally installing the best systems it can find By Otis Port in New
York
ÿ
12/01/97 Business Week
Page 122 (Copyright 1997 McGraw-Hill, Inc.)

For U.S. executives in the bomb detection business, Terminal One at New York's John F. Kennedy International Airport has been too long coming. Scheduled to open next summer, it may become the first airline terminal in the world to screen all luggage, both carry-on and checked, for explosives. Ironically, it is being built by foreign companies--Air France, Japan Airlines, Korean Air, and Lufthansa. The Federal Aviation Administration is helping, while also buying such equipment for many other airports. ''From the start, our goal was 100% baggage screening, even if there was no FAA
requirement,'' says Alain Content, who heads engineering and design at Terminal One Group Assn.

U.S. suppliers of explosives detection gear are tired of making excuses for Europe's more aggressive effort to thwart terrorist attacks. Compared with the U.S., Europe's airports have far more U.S.-made equipment for spotting hidden explosives. And the triple-check system being installed at Terminal One and other airports was hatched by BAA PLC (formerly the British Airport Authority). When it realized no single technology was up to the task of finding bombs in luggage, BAA was determined to find a solution--to avoid a repeat of the 1988 bombing of Pan Am Flight 103, which departed from
London's Heathrow Airport. ''That was a powerful motivation,'' says S. David Ellenbogen, chairman of Vivid Technologies Inc. in Woburn, Mass.

Here's how triple-check works: First, checked luggage is zapped with special X-ray beams from an automated system that's fast enough to process the mountain of bags heading for the belly of a jumbo jet. Usually, BAA does this ''level-one'' screening with a $400,000 machine from Vivid Technologies that can process up to 1,500 bags an hour, probing luggage with two different X-ray frequencies. These dual beams generate data for computing the chemical makeup of every object in the bag.

If the analysis finds anything that's close to the composition of an explosive or a weapon, the image of the suspicious object gets highlighted in color (photo) and is relayed to a nearby workstation for double-checking. There, the image is scrutinized by a skilled inspector, who can enlarge parts of the image or strip away details to help decide whether to let the bag pass. Alternatively, some airports use a more
sensitive automated system at this stage, such as the CTX 5000 machine from
InVision Technologies Inc. in Newark, Calif. It uses X-ray technology derived from hospital CAT scanners to dissect a bag's contents in minute detail.

When any doubt remains, BAA runs the bag through a rigorous ''level-three''
inspection, typically using a CTX 5000. Some British airports do the final check with ''sniffers'' that inhale vapors from the bag--explosives give off odors that are hard to eliminate--or microscopic particles on the bag. Sniffers and CAT scanners are precise but slow, but that's not a hangup at level three. Only about 1% of bags typically reach this stage.

Before the first plane leaves Terminal One, all of Britain's major airports
expect to be X-raying 100% of checked luggage. Large airports throughout
Europe plan to follow suit by 2003. Meanwhile, British airports will be
racing to install bomb detection systems for carry-on bags as well, so
Terminal One's exclusive status may not last long. FRESH FUNDS. For
American travelers, there's more good news: Security gear is heading in
volume for busy airports around the U.S., although when and where is a
secret. The FAA doesn't want to tell terrorists which airports to avoid.

The floodgates opened in October, 1996. Reacting to the fear that TWA
Flight 800 had been bombed, Congress coughed up $144 million to buy
explosives detection equipment. The FAA hopes to get at least $100 million
annually for the next few years, although no evidence of foul play was
found in Flight 800. Even if the FAA gets what it wants, it will take more
than a decade to upgrade just the 75 busiest airports. Where the money will
come from is up in the air. One possibility: a surcharge on tickets.
Britain figures its investment for screening cargo luggage amounts to less
than $1 per bag. ''So, for a couple bucks a bag, all U.S. airports could
build a tight ring around airplanes,'' says Jeffrey J. Langan, president of
Thermedics Detection Inc. in Chelmsford, Mass. Its sniffers will be used in
Terminal One to double-check carry-on bags.

Congress also freed the FAA from a legislative straitjacket that had
required equipment to be certified before it could be deployed. That has
been a big stumbling block. Seeking a foolproof solution, the FAA set tough
standards. Systems have to screen 450 bags an hour while spotting
explosives with a specific but secret minimum accuracy. So far, only
InVision's machine passes muster, and it meets the 450-bag mark only when
two $900,000 machines are cobbled together to form a system.

Now free to follow Britain's lead in putting the best available equipment
in airports until something even better comes along, the FAA is buying 54
InVision machines, 500 sniffers, and dozens of advanced X-ray systems from
American Science & Engineering, EG&G Astrophysics, Vivid, and Israel's
Magal Security Systems. So in less than a year, the U.S. has gone from
backwater status to a hot market. HYBRID CATS. New technology is already
bubbling up. The FAA is doling out development grants to old-timers and
newbies alike. L3 Communications, a Lockheed Martin spin-off, got $12
million for a new type of CAT scanner that may give InVision a run for its
money.

Not to be outflanked, InVision has bought Quantum Magnetics Inc., which
uses ''quadrupole resonance'' (QR) to spot explosives. The technology is
similar to magnetic-resonance imaging systems in hospitals. InVision
President Sergio Magistri says a CAT-QR hybrid will be even more accurate
than today's CTX and combining QR plus dual-beam X-rays could be just the
thing for screening carry-on bags. ''We expect the market to grow a lot''
and create plenty of room for new rivals, says Magistri.

All of which promises to make flying safer than ever. And if the tab is
just $2 a bag, it'll be a bargain.

-------------------------------------------------------------------------------------------------------------------------------

MONEY Airlines raise security at JFK terminal Gary Stoller
ÿ
12/09/97 USA Today FINAL Page 01B (Copyright 1997)

Four foreign airlines have launched an ambitious security plan that will make New York's JFK International Airport the nation's first to use explosive-detection machines to inspect every carry-on and checked bag for explosives.

Next month, the four carriers -- Japan Air Lines, Lufthansa, Air France and Korean Air Lines -- will begin receiving the initial shipments of a $1.7 million order for 13 new bomb-detection systems manufactured by Massachusetts-based Vivid Technologies.

The systems will go on line when JFK's newly constructed Terminal 1 opens in May. The four airlines will manage it and be among its main tenants. Unlike conventional X-ray machines, which are designed primarily to detect guns, knives and metallic objects, Vivid's machines can find plastic and other types of explosives, as well as weapons.

Screening all checked bags is what sets apart the Terminal 1 security plan. Checked bags are not X-rayed or hand-searched on domestic flights and on many international flights leaving the USA. On international flights, airlines mainly rely on baggage matching to ensure a passenger who checks a bag gets aboard.

Vivid's devices are a major step up from conventional X-ray machines and are used at European and Asian airports, but they are not certified by the Federal Aviation Administration in this country because their detection rate is below the FAA's standards.

The FAA, however, doesn't prevent airlines from using the equipment to upgrade security.

Two InVision CTX 5000 machines -- different devices that are certified by the FAA and can better detect plastic and other explosives -- will supplement the Vivid equipment at JFK's Terminal 1, USA TODAY has learned. The CTX 5000 machines -- 54 of which have been bought by the FAA and will be given to the airlines at major airports early next year -- will be used to inspect suspicious checked bags that cannot be properly screened by the Vivid devices.

Vivid's machines will be used along with X-ray machines and metal detectors.

vividusa.com
-----------------------------------------------------
Security Check on All Bags Planned for New Terminal
By Michele Salcedo. STAFF WRITER
ÿ
11/14/97 Newsday QUEENS Page A36 (Copyright Newsday Inc., 1997)

All the baggage - both carry-on and checked - that travelers bring to the new Terminal One at Kennedy Airport will be Xrayed for explosives, officials said.



To: Jeff Guy who wrote (1)1/4/1998 7:14:00 PM
From: Sergio H  Respond to of 16
 
To: +sergio heiber (1222 )
From: +James Strauss Sunday, Jan 4 1998 3:01PM EST
Reply # of 1260

Here is the VVID Overview...
............................

Business Summary
~~~~~~~~~~~~~~~~~

VVID develops, manufactures and markets automated inspection systems
which detect plastic and other explosives in airline baggage by
analyzing the physical characteristics of each item. For the 9 months
ended 6/97, revenues totalled $21.9M, up from $10.2M. Net income
totalled $3.8M, up from $1.1M. Revenues rose due to greater shipments to
Europe and initial shipments to Malaysia. Earnings reflect improved
manufacturing efficiences & absorbed fixed costs.
........................................................................

Revenues are growing rapidly...

www1.wsrn.com.
......................................................................
Earnings are also growing rapidly...

www1.wsrn.com
......................................................................

Here's the chart:

wsrn.com

It has found support on the 50 day MA and is challenging the 200 day
MA... The lower volume at this time raises the question as to whether it
will be able to power itself upward in the short term... For the
intermediate term, the 20.00 area looks likely...

On Friday VVID was up 1/2 on 29,100 shares traded, and has pierced an
intermediate term trendline to the upside... This could be one of those
situations where a stock can move up on low volume... Normally, upmoves
cannot be sustained without more volume... This may be an exception...
................................................................

Here are some recent news releases...

NEWS RELEASE For Immediate Release Vivid Technologies Receives
Major Order From Terminal One At JFK International Airport

biz.yahoo.com
.......................................................
Vivid Technologies Reports Record Fourth Quarter and Fiscal Year

biz.yahoo.com

Jim