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Technology Stocks : ASE--American Science & Engineering --worldwide Safety -- Ignore unavailable to you. Want to Upgrade?

To: L Hutchison who wrote (92)	8/27/1998 8:26:00 AM
From: David Mullins	Read Replies (2) \| Respond to of 100

From the Dow-Jones news wire ------------------------------------------------------ Amer Science & Engineering CEO Backs FY99 Views Of 43c/Shr By William M. Bulkeley BOSTON (Dow Jones)--American Science & Engineering Inc. (ASE), benefiting from growing interest by government security experts in its drug and weapons detection X-rays, sees revenue jumping more than 50% to more than $50 million this year, according to Ralph Sheridan, president and chief executive. In the fiscal year ended March 31, 1998, American Science, of Billerica, Mass., had sales of $32.7 million. Sheridan told Dow Jones that operating earnings will grow 30% to 35% for the year. However, he said, net income will drop 55% year-over-year because the company used up its tax-loss-carryforward last year and results are now fully taxed. Sheridan said he is comfortable with analysts' estimates that net will be around 43 cents a share, compared with $4.7 million, or 95 cents a share, in fiscal 1998. American Science makes X-ray systems that use its Z-Backscatter technology to spot and analyze soft organic materials like drugs and explosives that don't appear on conventional X-rays. Its customers include the Department of Defense, which is starting to use the technology at military bases to scan for car and truck bombs. A major market is the Customs Service, which operates five systems to spot smuggled drugs on the Mexican border. "That has proved phenomenally successful in the war on drugs," and three more systems have been ordered, Sheridan said. Scans and analysis take 30 seconds for a car and up to six minutes for a truck. In addition, American Science systems are used in ports to combat arms smuggling and trade fraud because they can scan entire containers without opening them to look for hidden drugs, guns or mislabeled merchandise. Their systems can scan a container in less than six minutes without opening the container. Currently most container searches take up to six hours and risk damaging delicate imports. Sheridan said the recent embassy bombings in Tanzania and Kenya highlight the need for protecting U.S. facilities. American Science's international business has soared this year to an estimated 40% to 50% of sales for the year, up from 20% last year. South Africa, Egypt and Abu Dhabi all placed major orders, he said. Almost all the remaining business is with the U.S. government. Last year 80% of the company's business was with the federal government. Its backlog now is $48 million, up from $17.3 million at March 31, Sheridan said. Sheridan said the company is doubling research and development spending this year to $5.6 million, or about 10% of revenue, from $2.8 million, or 8% of revenue, last year. - William M. Bulkeley; 201-938-5099