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DECEMBER 2001 INDUSTRY NEWS

National Association of Proficiency Testing Announces New Staff

The National Association of Proficiency Testing (NAPT) is pleased to announce the addition of three new staffers. Effective immediately, the day-to-day operations of NAPT will be managed by Mark Hodges - Quality Manager, David Gale - Sales Manager, and Linda Gale - Office Manager. This team has been working with NAPT over the last year on marketing and project management of new initiatives for the association.

The new NAPT operations team is focused to customer service, innovation and responsiveness to your measurement needs. Within the next month, we will be contacting every member of the association and others in the test and measurement community to explain the changes at NAPT and get your feedback.

Managing Director, Charles Ellis, is relinquishing his management role at NAPT and concentrating on advising the association on strategic matters. As its founder, he will continue to be a contributor in the same way that many of NAPT's technical advisors provide specific technical expertise to make NAPT successful.

To learn more about NAPT visit www.proficiency.org or contact Mark Hodges at mhodges@proficiency.org.

Fourth Annual International Dimensional Workshop - IDW2002

The fourth annual International Dimensional Workshop will be held May 6th - 9th, 2002 at the Hyatt Regency Knoxville. The IDW will feature 16 known speakers from around the world who will be presenting papers on Accreditation, GD&T, Measurement Uncertainty, and new Technologies. In addition there will be 50 exhibitors presenting the latest equipment, software and services available to the manufacturing and measurement world.

The workshop has become the leading dimensional workshop in the country and one of the best in the world. It is sponsored by the Oak Ridge Metrology Center, the Oak Ridge Centers for Manufacturing and Materials Technology, Quality Magazine, the Society of Manufacturing Engineers, NCSL-International and the Metrology Automation Association. The speaker's list includes such noted Dimensional Metrologists as Dr. Henrik Nielson, Dr. Jim Salsbury, Dr. Mark Malburg, Dr. David Zhang, Dr. Ted Doiron, Dr. Charles Wang, Dr. Steve Phillips, Dr. Edward Morse, Bill Tandler and Larry Ray. Roxanne Robinson, Vice President of A2LA and Chairperson of NACLA will present the Keynote address. The cost for the workshop is $250 in advance or $300 at the workshop. Single day passes and Student passes are available.

The IDW will be preceded by 3 training classes on Monday, May 6th on Measurement Uncertainty, CMM Testing and Calibration and Multi-Sensor CMM Technology and Applications. The cost for these classes is $100 each and details can be obtained from the Workshop Director.

On Thursday of the workshop there will be an all day training session, GD&T Update: Define the Parts and Simplify Positioning, presented by the SME. Cost for that session will be $250 for SME members and $350 for non-members. You can register through the workshop or the SME web site at www.sme.org/training.

For more details or to register contact the Workshop Director, Ed Pritchard at 865-574-4261 or pritchardew@y12.doe.gov. The IDW2002 web site is www.qualitymag.com/IDW2002/.

Electro Rent Corporation Reports Fiscal 2002 Second Quarter and First Half Results

Electro Rent Corporation announced that net income for the first six months of fiscal 2002 ended November 30, 2001 was $7.2 million, or $0.29 per diluted share.

Revenue for the period was $82.0 million. This compares to net income for the first six months of fiscal 2001 of $17.6 million, or $0.71 per diluted share, on revenue of $111.9 million.

For the three months ended November 30, 2001, net income was $3.2 million, or $0.13 per diluted share. This compares to net income of $8.7 million, or $0.35 per diluted share, for the second quarter of fiscal 2001. Revenue for this year's first quarter was $39.1 million compared to $54.5 million a year earlier.

Chairman and Chief Executive Officer Daniel Greenberg said, "Unfortunately, we were unable to avoid the consequences of the worsening economy during the second quarter. Both our data products and our test and measurement (T&M) equipment rental and lease businesses reported lower revenue this year than last. Short-term data products rentals were hard hit by the steep decline in the number of conventions and training events in the last three months, while our T&M business continues to be negatively affected by the weakness in the telecommunications industry. Although we believe that the defense and aerospace sectors of our T&M business will improve during the next twelve months, no definitive trend is yet visible.

"We currently are making further adjustments to our infrastructure and reducing the pace of new equipment purchases to conform to the reduced pace of activity. At the same time, we are maintaining our traditional strength in the defense and aerospace sectors that are the core of our T&M business, which will allow us to take advantage of any increase in defense spending. We also have built a comprehensive inventory of test equipment for the telecommunications sector to meet our customers' physical layer, data link layer and network layer testing requirements, which will allow us to participate in the ultimate recovery of a more concentrated telecommunications business. On the data products side, we also continue to maintain an inventory of the latest equipment to meet our customers' evolving needs in this category."

Greenberg added, "We continue to accumulate cash, which increased to approximately $80.7 million at November 30, 2001 from $64.2 million at the end of the first fiscal quarter. Ironically, while the Company's financial condition has never been stronger, we have yet to find the right investment opportunities that promise meaningful value added for our shareholders. The good news is that we are well positioned to ride out this economic downturn."

The book value of Electro Rent's equipment pool was $145.4 million at November 30, 2001 compared to $167.5 million at May 31, 2001.

Bell Technologies Changing Its Name

Effective January 1, 2002 Bell Technologies will change its name to Sypris Test & Measurement. Although the name is changing, the leadership, business focus, daily operations and contact information will remain the same.

Tektronix Reports Second Quarter Fiscal 2002 Results

Tektronix, Inc. reported net sales of $214.6 million and net income, before non-recurring charges, of $10.8 million or $0.12 per share, for the second quarter of fiscal year 2002 ending November 24, 2001. This compares with sales of $325.1 million and net income, before non-recurring credits, of $34.9 million or $0.36 per share, for the same period last year. Including non-recurring items, net income for the second quarter of fiscal year 2002 was $7.9 million or $0.09 per share, as compared with $36.7 million or $0.38 per share, for the same period a year ago.

"We continued to execute well during these difficult economic times," said Rick Wills, Tektronix Chairman, President and CEO. "We saw orders increase 13% over last quarter, largely due to strong customer acceptance of new products and fewer cancellations. I am pleased with our continued ability to manage spending and deliver on profitability targets while maintaining strategic investments."

For the third quarter of fiscal 2002, the company expects sales to be down approximately 37% over the same period a year ago. Operating margins are expected to be in the mid-single digits. For the fiscal year, the company expects sales to be down about 30% and operating margins to be in the mid-single digits. "We believe that the economic environment will continue to remain challenging and we will need to continue to carefully manage spending," said Wills. "Although we have seen some stabilization in our orders, we do not expect a recovery in the short-term. However, I remain confident in our ability to build on our leadership position with a number of new products in the pipeline that address market demand, as well as $730 million in cash and marketable investments -- all of which position Tektronix to take advantage of the eventual upturn."

After the end of the quarter, Tektronix agreed to obtain 100% ownership in Sony/Tektronix -- the joint venture between Tektronix and Sony for distribution and development in Japan -- for a cash price of approximately $65.0 million. The transaction is scheduled to close at the end of September 2002.

"For over 35 years, Sony/Tektronix as been an integral part of the Tektronix global strategy," said Wills. "Sony has been an exceptional partner and we look forward to continuing our relationship with Sony as a key customer in the future. This move will enhance Tektronix' ability to understand the needs of Japanese customers and will enable us to leverage Sony/Tektronix' strong engineering capabilities."

President Signs Record FDA FY 2002 Budget

For the first time in several years Congress has provided a budget for the Food and Drug Administration over and above increases requested for the Salaries and Expense account. The biggest impact will result from the funding for the full pay raise of 4.6%. FDA's total program level is $1.4 billion and includes full funding for the Buildings and Facilities account as well as Prescription Drug User Fees Act and Mammography Quality Standards Act User Fees, and the Export Certification and Certification fund. The Salaries and Expenses Appropriation totals $1.345 billion, including $1.2 billion for Salaries and Expenses, and $161.716 million for PDUFA. This budget reflects the commitment of the Administration and the Congress to continue strengthening the public health protection by focusing on urgent public health hazards. A breakdown of the increases follows:

  • $45.2 million to meet mandated cost-of-living and pay-related increases for FDA's employees. In the last eight years, FDA has had to absorb $284 million in unfunded pay raises and other inflationary costs;
  • $15 million to protect consumers against the new variant Creutzfeldt- Jakob Disease, a fatal illness associated with consumption of meat from cows with Bovine Spongiform Encephalopathy (BSE). The funds were provided to keep BSE, the "Mad Cow Disease," out of the United States;.
  • $10.3 million to prevent substandard food and health care products from reaching the U.S. market by increasing plant inspections and expanding surveillance of regulated imports;
  • $9.4 million to significantly upgrade food safety by expanding the highly successful Food Safety Initiative beyond microbiological contaminants to cover chemical and physical food hazards;
  • $10 million to safeguard patients against adverse events associated with the use of drugs, biological agents and medical devices by improving FDA's system for monitoring marketed products;
  • $10 million to protect the human subjects and research data in clinical trials by increasing FDA's inspections;
  • $10.1 million to enhance FDA's scientific potential and operational efficiency through infrastructure improvements. This includes funding for the development of an advanced financial management system, the completion of a new laboratory/office complex in Los Angeles, and the initial move of a FDA center to the White Oak campus;
  • $13.1 million for current low user fees, including increases for Prescription Drug User Fees Act and Mammography Quality Standards Act fees, Certification fund and Export fund.
  • Congress also provided $10.5 million in additional funding without impacting the President's budget request. Earmarks include $ 3.0 million for Dietary Supplements; $2.5 million for generic drug review and education; $1.0 million for Orphan Drug Grants and, $0.5 million for a gene therapy data base; $3.0 million for activities related to antibiotic drugs; and, $0.5 million to develop a database focused on woman's health issues.

These resources will allow FDA to continue its important role in effective health care delivery and ensure continued consumer confidence in the products we regulate.

National Instruments New Quality Director to Focus on Company's Growing Role in Customer Success

Andy Krupp, an expert in high-volume, high-quality manufacturing with experience at companies such as Honda Motor Corp. and Mercury Marine, recently joined National Instruments as the company's Quality Director. In his role at NI, he will help carry on the company's tradition of providing customers with superior measurement and automation software and hardware.

Krupp will work directly with NI President and CEO James Truchard to focus on evolving NI's already strong commitment to quality. Krupp said he looks forward to working with employees across many different departments as he helps them work more efficiently and go above and beyond current goals for customer success. Customers rely on NI software and hardware to perform an increasing number of measurement and automation tasks.

"As our products are seeing sophisticated use in demanding manufacturing operations, customers are depending more and more on NI's overall product platform to provide the basis for their own customized measurement and automation systems," said Truchard. "Andy will help us adapt to these increased demands while ensuring we continue to meet and exceed our customers' high expectations for quality in order for them to be successful."

Danaher to Buy Viridor

Danaher Corp. announced it will buy Viridor Instrumentation Ltd. from the Pennon Group for about $135 million to expand its water quality products.

Viridor, with annual revenues of about $75 million, designs and manufactures analytical instruments for clean water, wastewater, ultrapure water and other fluids and materials. It is based in the United Kingdom, with operations in eight countries including the United States and Switzerland.

Danaher makes tools and process/environmental controls. It said the purchase will add to its earnings in the first year, although it said such accretion will be "minimal."

"Viridor enables our water quality group to compete more effectively on a global scale, facilitating our entry into complementary end markets such as beverage and pharmaceutical, while adding capabilities in ocean water and atmospheric testing," said H. Lawrence Culp, Jr., Danaher's President and Chief Executive Officer, in a statement.

Bement Confirmed by Senate As Twelfth NIST Director

The U.S. Senate confirmed Arden L. Bement Jr. as director of NIST on November 30, 2001. The position of NIST director is a presidential appointment. Bement, 69, was nominated by President Bush on Oct. 23, 2001, to be the 12th director of the agency. He succeeds Raymond Kammer, who retired in December 2000. NIST Deputy Director Karen Brown has served as acting director in the interim.

Bement was most recently the David A. Ross Distinguished Professor of Nuclear Engineering and head of the School of Nuclear Engineering at Purdue University. He has held appointments at Purdue University in the schools of Nuclear Engineering, Materials Engineering, Electrical and Computer Engineering, and a courtesy appointment in the Krannert School of Management. He was director of the Midwest Superconductivity Consortium and the Consortium for the Intelligent Management of the Electrical Power Grid.

Bement comes to his position as NIST director well versed in the workings of the agency, having previously served as head of the Visiting Committee on Advanced Technology, the agency's primary private-sector policy adviser; as head of the advisory committee for NIST's Advanced Technology Program; and on the Board of Overseers for the Malcolm Baldrige National Quality Award.

Bement joined the Purdue faculty in 1992 after a 39-year career in industry, government and academia. Bement holds an engineer of metallurgy degree from the Colorado School of Mines, a master's degree in metallurgical material engineering from the University of Idaho, a doctorate degree in metallurgical material engineering from the University of Michigan, and a honorary doctorate degree in engineering from Cleveland State University. He is a member of the US National Academy of Engineering. Bement's family includes his wife, Louise; eight children; 23 grandchildren and two great-grandchildren. He is a native of Pittsburgh, Pa., and grew up in New Castle, Pa.

For more information go to the NIST News Page at www.nist.gov/public_affairs/news.htm.

Morehouse Instrument Company Accredited to A2LA

Morehouse Instrument Company has been accredited by A2LA to provide force calibration and measurement services to ISO 17025 and other military and federal specifications. Morehouse operates a force calibration laboratory capable of calibrating load cells, proving rings and other force measuring devices from 1 LBF to 1,000,000 LBF. Morehouse also manufactures a complete line of force measuring and calibrating instruments and machines including; force gauges digital and analog, proving rings, ring dynamometers, brinell calibrators, rockwell calibrators, wheel load weighers, dead weight machines and universal calibrating machines directly traceable to N.I.S.T.

For more information contact Morehouse Instrument Company at www.morehouseinst.com.

ISO/IEC 17025 Training and Consulting

As with all organizations, a Quality Management System can help control the various processes of that organization to ensure a predictable result. If the organization is a testing or calibration laboratory, this can mean having control of the testing results of a product or calibration of a measurement device.

ISO 17025 provides a framework for the special needs of organizations that want to control their laboratory processes and are seeking to achieve an independent, external accreditation.

Based upon ISO 9001, but written for the particular needs of laboratory management, ISO 17025 addresses the proficiency of the organization to perform the testing and calibration activities.

EXCEL Partnership's expertise in guiding clients is available today, to help with ISO 17025 implementation, and how to meet the special requirements of the 3rd party accreditation process. Our consultants are acknowledged experts in the subjects of implementation, accreditation, measurement uncertainty and auditing.

Click on eCalibration.com's Calendar page for a view of their upcoming training courses.

First Woman President of IEEE-USA Poised to Take Office

LeEarl Bryant will make history on January 1, 2002 when she becomes the first woman president of IEEE-USA.

Bryant, a licensed professional engineer from Richardson, Texas, served as president-elect in 2001. She succeeds Ned Sauthoff of Princeton, N.J., and will serve for one year. "I hope to leverage this unique opportunity for the benefit of all engineers and scientists," said Bryant. "This includes the women and minorities who are beginning to more visibly contribute to the creative processes that develop products and services, resulting in a higher quality of life for us all. I learned long ago that women help women the most when we take our profession and careers seriously."

As an IEEE-USA Congressional Fellow in 1993, Bryant served as a legislative assistant to U.S. Rep. Pete Geren of Fort Worth, Texas. She was responsible for issues in telecommunications, competitiveness, technology, health, education and aging. In 1999, Bryant received an IEEE-USA Citation of Honor for her extensive volunteer service to the Institute. She participates actively in the IEEE Dallas Section and is a principal organizer of the IEEE Consultants' Network of Dallas. Bryant has been active in the IEEE since her days at Texas Tech University, from which she earned a bachelor's degree in electrical engineering in 1966. She added an MSEE degree with a bio-medical option from Southern Methodist University and the University of Texas Southwestern Medical Center in 1968.

Bryant has spent much of her career as a technical manager with an extensive background in the telecommunications, transportation and defense industries. Her company, Texas LAB Consultants, specializes in venture and start-up guidance, project management, strategic and business planning and technical writing, including patent descriptions.

For more information visit IEEE at www.ieeeusa.org.

MKS Instruments Announces Organizational Changes

MKS Instruments, Inc., a leading supplier of instruments, components and integrated subsystems used to control semiconductor and other advanced thin-film manufacturing processes, announced that it made organizational changes. MKS is moving to a flatter management structure to increase flexibility and responsiveness to customer needs. The major product groups and corporate functions will now all report directly to John Bertucci, MKS' Chairman and CEO, and Mr. Bertucci will also assume the position of President. Dr. Peter Younger, MKS' current President and COO, will be leaving MKS to pursue other opportunities. In a related move, Dr. John Smith, currently Managing Director of MKS' subsidiary in the United Kingdom, will assume the position of Vice President and General Manager of MKS' combined Materials Delivery and Advanced Process Control (APC) product groups. Bill Bintz, GM of Materials Delivery Products, Mike Dent, GM of Spectra Products and Dr. Peter Solomon, GM of On-Line Products, will report to Dr. Smith.

GIDEP Metrology Data DVD

The GIDEP Metrology Data DVD set is now available to help with your calibration procedure requirements. The set provides quick, no hassle information. With this new GIDEP service, you have the opportunity to exchange data between each other more conveniently. The GIDEP Metrology Data DVD set is being made available by subscription to all GIDEP Participants who qualify.

The initial DVD release includes all documents from the entire CD series. Incremental releases will be produced on CD ROM followed by additional DVD releases to replace these incremental CD ROMs. Once the DVDs are produced, the complete metrology library may not be available on CD ROM so get your DVD drives as soon as possible!

If you are currently not a GIDEP Participant but are interested in joining the program please visit GIDEP's web site at www.gidep.org.

Kathy McLain Promoted To Spectrometrology Laboratory Leader

Stranaska LLC is pleased to announce the promotion of Kathy McLain to Laboratory Leader of the company's spectrometrology laboratory unit. She succeeds Jerry D. Messman, who in addition to his scientific advisory role, will continue to direct company-wide R&D and production as well as launch the company's new measurement analytics unit. As laboratory Leader, Kathy will be responsible for quality assurance, technical services and daily laboratory functions including the assembly, certification and recertification of reference material standards for the validation of UV/VIS absorption spectrophotometers and related spectrometric analytical instruments. Kathy has held analytical, calibration and quality assurance positions with the company since October 1998.

Stranaska LLC is a supplier of scientific products and services in spectrometrology and measurement analytics that help technological firms advance or reinforce their spectro-analytical instrument diagnostics and calibration programs for value-added quality assurance, regulatory compliance and economic competitiveness. Visit their web site at www.stranaska.com.

 
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