American Science & Engineering, Inc.

American Science & Engineering, Inc. (ASEI - Snapshot Report) recently announced fiscal third-quarter results, which included a record revenue total that was 53% above the previous year’s level.

Company Description

American Science & Engineering, Inc. provides innovative X-ray inspection systems.

With 50 years of experience in developing advanced X-ray security systems, ASEI’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.

The company’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. ASEI’s systems protect high-threat facilities and help combat terrorism and trade fraud, drug smuggling, weapon smuggling, and illegal immigration and people smuggling.

The company’s customers include leading government agencies, border authorities, military bases, airports and corporations worldwide

Strong Quarterly Results Signal Growth

American Science & Engineering recently announced fiscal third-quarter results, which included a record revenue total that was 53% above the previous year’s level.

Earnings per share of $1.13 topped the consensus estimate by 24% and outpaced the year-prior result.

President and CEO Anthony Fabiano said, “revenue growth in the quarter was driven by a robust demand for our Z Backscatter Vans, AS&E’s proprietary cargo products, and field services. Operating income significantly increased in the quarter with improved gross margins from higher revenues, significant improvement in cargo margins, and continued focus on controlling overhead and expenses. These strong results were enabled by the successful execution of our strategies to grow revenue and earnings to increase shareholder value over the long-term.”

Solid Income

ASEI also declared a dividend of 20 cents per share, noting that it is payable on March 5, 2009 to the holders of record at the close of business on February 16, 2009.

The company’s dividend yield of 1% is ahead of the industry average

Higher Estimates

Analysts hiked earnings forecasts on the strong quarter. Estimates for the fiscal year ending March 2009 were increased by 3 cents over the past week to $3.15 per share.

For the following year, analysts’ projections were boosted from $3.86 per share to $3.99 during the past week.

The company’s earnings per share are expected to grow about 15% over the next 3 – 5 years, which is in line with the industry average.