American Science & Engineering 2Q up 45 percent

posted: 21 DAYS 8 HOURS AGO

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NEW YORK -American Science & Engineering Co., which makes X-ray detection systems, said Friday its second-quarter profit surged 45 percent as security agencies stepped up orders.

The company said late Thursday that for the three months ended Sept. 30, net income climbed to $10.7 million, or $1.18 per share, compared with $7.4 million, or 83 cents per share, in the year-earlier period.

Analysts polled by Thomson Reuters expected, on average, earnings per share of 87 cents.

Revenue rose to $61.2 million from $56.3 million.

During the quarter the company introduced two cargo inspection products: A drive-through system and a mobile system, both for use at high-threat security checkpoints. They drew quick response from customers.

"We think aggressive, but focused, research and development investing to expand the product offering is paying off," said Stifel Nicolaus analyst Stephen Levenson, who has a "Buy" rating on the shares.

The total cost of sales and contracts fell to $31.8 million from $33.8 million.

Morgan Keegan analyst Brian W. Ruttenbur raised his rating on the company to "Outperform" from "Market Perform."

"We believe that spending on border and port security equipment will accelerate worldwide, and we believe the company may achieve strong topline growth over the next several years," Ruttenbur said.

In midday trading Friday, the stock rose $3.25, or 4.6 percent, to $73.60. The stock has ranged from $49.29 to $83.22 over the past year.

2009-11-06 11:50:40