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AUGUST 2002 INDUSTRY NEWS

 

2003 Measurement Science Conference

"Measurements In a Changing World" is the theme for the 2003 Measurement Science Conference, which will be held at the Disneyland Hotel in Anaheim, California on January 16 - 17.

In addition to the Conference, NIST Seminars will be held on January 13 - 14 and Tutorial Workshops will be held on January 15. The Conference offers opportunities to learn and a forum to share your knowledge and meet people with common concerns about Metrology.

During the 2003 Conference, technical and managerial experts in the measurement sciences will lead sessions, panel discussions and present papers or workshops on topics of importance to the global measurement community. In addition, exhibitors or sponsors of the Conference will be available to share information about measurement products and services.

Online registration is available at www.msc-conf.com. For general information about the Measurement Science Conference, please visit our website or call (888) 672-6327.

 

HN Proficiency Testing Receives A2LA Accreditation

HN Proficiency Testing has received A2LA accreditation as a "Provider of Proficiency Testing Programs."

A2LA is the only organization that HN Proficiency Testing is aware of that offers an accreditation program for proficiency testing providers and they are currently the only organization serving calibration laboratories accredited under this program. Participants can be confident that HN Proficiency Testing has a quality system that lives up to the requirements of ILAC Guide 13 and ISO Guide 43, as this has now been demonstrated to an independent third party. This now includes important requirements to the choice and stability of artifacts as well as the competence of our collaborators and the traceability of the results we provide.

HN Proficiency is bound to use accredited calibrations to establish reference values and associated uncertainties.

For more information visit www.HN-Proficiency.com.

 

Certified Calibration Technician News Update

The body of knowledge (BOK) for American Society for Quality's (ASQ) newest certification, the certified calibration technician (CCT) will be available in October 2002. The first exam is scheduled for December 6, 2003.

Information on the CCT can be found by visiting www.asq.org/cert/types/index.html. Subject matter expert volunteers are being sought. For more information visit the Measurement Quality Division web site at www.measurementquality.org.

 

A2LA Signs Agreement With Intertek Testing Services (ITS)

Under a new agreement signed by A2LA and ITS in March of this year, in-house and commercial laboratories can now seek joint A2LA laboratory accreditation to ISO/IEC 17025 and ITS quality management system registration to ISO 9000:2000 for the laboratory (or the manufacturing facility) with a single on-site asessment.

The quality management system portion of the assessment and the technical portion of the assessment will be conducted by qualified ITS and A2LA technical experts trained specifically by A2LA. Laboratories that wish to achieve both accreditation and quality system registration must apply to ITS and A2LA directly and express in writing to both ITS and A2LA their desire to be accredited by A2LA and registered by ITS under the A2LA-ITS agreement. A2LA staff and ITS personnel will then work together to identify the qualified team of assessors and help coordinate the joint on-site assessment to ensure a more efficient and economical process for our client organizations.

For more information about this special program, please contact A2LA Vice President, Roxanne Robinson via email at rrobinson@a2la.org. You may also contact the ITS Liaison Officer, Joanne Klos, at joklos@etlsemko.com.

 

Jerry Sameth Receives Prestigious Charles H. Glasier Award

Jerry Sameth, an Engineering Manager at Matheson Tri-Gas, Inc., has been awarded the Charles H. Glasier Safety Award. This Award is presented annually by the Compressed Gas Association (CGA). This year's Award was presented to Mr. Sameth at the 89th CGA Annual Meeting held at the Saddlebrook Resort in Wesley Chapel, Florida.

This award is presented annually to an individual in recognition of safety leadership in the compressed gas industry. The award is in memory of Charles H. Glasier, a former CGA chairman and leading proponent of compressed gas safety.

Jerry Sameth is Cylinder and Valve Engineering Manager in the Corporate Engineering Group. He joined Matheson Tri-Gas, Inc., in September 1980. Mr. Sameth graduated Magna Cum Laude from City College of New York in 1971 with a Bachelor of Engineering (Chemical) degree. Mr. Sameth is the first Matheson Tri-Gas, Inc., employee to win this prestigious award.

"All in the industry who know Jerry will agree that this award could not have gone to a more deserving person," said Joe Barnett, Matheson Tri-Gas, Inc., Vice President of Gas Operations, who nominated Mr. Sameth for the Award. During his active participation with the CGA, Jerry has served as Chairman, Vice Chairman, and Voting Member of several committees including Connection Standards, Pressure Relief Devices and Cylinder Specifications. He is a recognized expert in the industry on cylinders, valves, pressure relief devices, and the Code of Federal Regulations as it pertains to the compressed gas industry. Some of Mr. Sameth's major accomplishments are the development and implementation of the restrictive flow orifice, and the DISS connection for semiconductor cylinder valves. He is also the coauthor of the Matheson Tri-Gas, Inc., Gas Data Book, 7th Edition, published in 2002.

 

CalSource, Inc. Receives Small Business Award

In the two years since CalSource Inc. opened its calibration and metrology lab in Syracuse, the small business has doubled its sales and added eight employees. CalSource, which specializes in verifying the accuracy of equipment used for measuring, received its own measure of success when it received a Small Business Excellence Award in May, 2002. The company, along with 15 other small businesses across Central New York, was honored at the U.S. Small Business Administration's Excellence Awards luncheon. The event was held in celebration of National Small Business Week - "Small Business: Where America Works."

"We're very proud of the award because it recognizes that we're doing a good job," said Kyle Laukaitis, president of CalSource, which he runs with Brad Darois and John Sager. The company - in the Rockwest Center at 1005 W. Fayette St., Syracuse - secured a $134,000 SBA-backed loan two years ago, and $30,000 from the city of Syracuse Urban Business Opportunity Center (UBOC).

CalSource doubled its sales after the first year and expects to do the same in 2002, Laukaitis said. The company services equipment used in electronics, radio frequency, dimension gauging, pressure, torque, temperature and mass measurements. Local customers include Lockheed Martin, TRW, Inficon and New Venture Gear. For more information visit CalSource's web site at www.calsource.com.

 

Arc Second and Automated Precision Announce Collaboration; Two Companies to Collaborate on Automatic Calibration Options for Constellation 3Di

Arc Second, Inc., the leading provider of 3D-Intelligence products, and Automated Precision Inc, the inventor of the laser tracker and the 5D/6D interferometer, announced their intention to jointly develop automated calibration techniques for Constellation 3Di, the world's first proven indoor GPS system with the accuracy, reliability and utility to support large scale metrology.

According to Arc Second's president and CEO, Edward Barrientos, "Many of Constellation 3Di's customers need the ability to trace their measurement systems to primary standards. By combining Constellation 3Di's automatic measurement capabilities with API's world class interferometers, we are able to provide users with the ability to self-calibrate their indoor GPS system continuously." "API has always been at the leading edge of new technology trends and we are excited to be working with Arc Second on making indoor GPS a reality," commented Dr. Kam Lau, President and CEO of Automated Precision, Inc. "Automatic self-calibration will provide Constellation 3Di with in-use accuracy advantages by neutralizing a variety of environmental factors that typically degrade accuracy in the factory environment."

Constellation 3Di was developed utilizing Arc Second's proprietary 3D-Intelligence technology and is the first proven indoor GPS system with the accuracy, reliability and utility to support large-scale metrology. Using signals from transmitters that emit infrared light, small receivers can calculate their position coordinates independently. Like GPS, the number of receivers in a single workspace is unlimited. Uses include the measurement and inspection of large tooling, sub-assemblies and infrastructure in the aerospace, automotive, rail, and shipbuilding industries. Constellation 3Di is providing facility owners, metrologists, toolmakers and other users of accurate coordinate data with unparalleled flexibility in collecting critical metrology data. For more information about Constellation 3Di, visit www.constellation3di.com.

Arc Second Inc., develops, manufactures and markets 3D-Intelligence (3Di) measurement and tracking products and mobile CAD software solutions. Arc Second markets its products to the construction, architecture, manufacturing, product design, forensics, aerospace, virtual reality and movie special effects sectors. Founded in 1990, Arc Second is a privately held company located in Dulles, Virginia in the heart of the Northern Virginia technology corridor. For more information about Arc Second, visit www.arcsecond.com.

Automated Precision Inc., is a world leader of advanced metrology solutions for industry. Founded by Dr. Kam Lau in 1987, API has pioneered progressively higher standards of accuracy for coordinate measuring and machine tool operation. API holds the basic patents on the laser tracker and the 5D/6D interferometers which have become the standards for inspecting and certifying machine tools. API products are installed and used by all of the world's leading automotive, aerospace, machine tool, and CMM manufacturers. API's experienced engineering team is unmatched in its ability to create advanced innovative products, which meet the needs of rapid evolving industrial technologies. For more information about API, visit www.apisensor.com.

 

Edison ESI Announces ISO/IEC 17025 Accreditation

Edison ESI Metrology, a subsidiary of Southern California Edison, has earned ISO/IEC 17025 accreditation from the National Voluntary Laboratory Accreditation Program (covered under Lab Scope 105014-0).

ISO/IEC 17025 is a technical quality program that specifically addresses the rigorous technical requirements of the measurement science industry. Because it holds calibration laboratories to a higher standard of competence and quality than ISO 9002, ISO/IEC 17025 is increasingly becoming the accreditation requirement for industries that demand superior quality. This is especially true of regulated industries such as pharmaceutical, aerospace and nuclear.

According to Jack Burdick, Manager of Technical Services, this is an important benchmark for Edison ESI Metrology. "It is especially gratifying to see our years of expertise in and dedication to the field of measurement science being recognized. I think our customers already know the level of quality Edison ESI Metrology offers. Earning ISO/IEC 17025 accreditation means that we are publicly committed to excelling as a commercial calibration lab".

Edison Metrology offers primary and secondary calibration services in virtually every discipline. These calibrations meet the standards set forth in ISO/IEC 17025, ANSI/NCSL Z540-1, MIL-STD-45662A, 10CFR50 Appendix B, and ISO 9002:94. Their customers include the most well known names in Aerospace, Pharmaceutical, Biomedical, High-Tech Manufacturing and Nuclear industries.

This information and more can be found at http://www.edisonmetrology.com.

 

NIST to Operate Deep Ultraviolet Lithography Calibration Service

Want to make faster logic circuits and higher-density memory chips? You're in luck. A new National Institute of Standards and Technology (NIST) primary standard and calibration service will be available later this year to support accurate measurements for next-generation deep-ultraviolet (DUV) lithographic tools employing 157-nanometer excimer lasers, projected for insertion into semiconductor production lines in 2003. These advanced lithography machines will be able to make circuits less than 70 nanometers wide.

NIST previously developed primary standards and associated measurement systems for 248-nanometer and 193-nanometer excimer lasers, the preferred sources for high-resolution lithography at this time. Reductions in the feature sizes of integrated circuits are forcing a continual shift toward shorter exposure wavelengths in the optical lithography process.

Because uniform power and pulse energy are critical parameters in lithography, NIST researchers developed a system for homogenizing the beam intensity of excimer lasers. Each laser emits light of only one specific wavelength, but the intensity of light across a cross section of the beam may vary substantially. NIST scientists use a tiny array of overlapping lenses-a fly's eye approach-to mix various parts of the beam together. The intensity of the more uniform beam then can be measured with half the uncertainty of previous techniques.

NIST is the only laboratory in the world providing these calibrations, which take about one week each. Demand for the 248- and 193-nanometer calibrations has risen recently, despite the downturn in the semiconductor industry. Customers include suppliers of lasers, detectors and steppers. "People are finding that metrology is more important than they originally anticipated," says Marla Dowell, a NIST physicist. "As they move to shorter wavelengths, tolerances become tighter."

For more information, contact Marla Dowell, (303) 497-7455, mdowell@boulder.nist.gov.

 

GE Acquires Global Field Measurement Technology Company, Panametrics

GE Power Systems announced it has acquired Panametrics Inc., a global leader in high-technology ultrasonic testing equipment and process control instrumentation. The company will become part of GE's Energy Management Services business and will be known as GE Panametrics.

Panametrics develops highly specialized, harsh-environment sensors and instruments for nondestructive testing, solar radiation detection and process measurement instrumentation. The company's products include process control instruments, moisture, chemical and gas sensors, multi-phase flow meters, charged particle detectors, ultrasonic transducers and scanning systems for a wide range of applications. Panametrics was founded in 1960 and has more than 1,000 employees.

"Panametrics' proven testing and control technologies are an excellent fit with GE Power Systems' existing measurement technologies for the power generation and oil and gas industries. This acquisition will complement GE's portfolio of sensors and monitoring and detection offerings to better serve customers worldwide and will provide the platform for our field measurement solutions business," said John Rice, president and CEO of GE Power Systems.

Stephen R. Bolze, president and general manager of the Energy Management Services business, stated, "We are very excited to have the talented people, customer franchise, and expert technology of Panametrics as part of our GE family. This acquisition is consistent with our growth strategy to provide leading edge sensor technology as part of our overall energy and distributed asset management solutions for improved customer productivity." Tom Smith, previously general manager of GE's Field Services business, has been named general manager of GE Panametrics.

Throughout its more than 40-year history, Panametrics has been a pioneer in the sensor technology industry, developing an extensive line of ultrasonic flowmeters including the first clamp-on ultrasonic flowmeter for gases. Panametrics moisture analyzers have been considered the standard of the industry for decades. Other company breakthroughs include the first digital flaw detector and a unique line of hand-held digital data-logging thickness gages. The company's innovative culture has resulted in almost 100 patents. Panametrics is headquartered in Waltham, Mass.

"We are extremely pleased to be joining the GE family of businesses. This is a true marriage of technology driven companies that will enhance our technical capabilities in the sensor and instrumentation industry," said Dr. Edmund H. Carnevale, co-chairman of Panametrics, Inc.

GE Power Systems (www.gepower.com) is one of the world's leading suppliers of power generation technology, energy services and management systems with 2001 revenues exceeding $20 billion. The business has the largest installed fleet of power generation equipment in the global energy industry. GE Power Systems provides equipment, services and management solutions across the power generation, oil and gas, distributed power and energy rental industries.

 

FARO Technologies Reports Second Quarter Results

FARO Technologies, Inc., a leading provider of computer-aided manufacturing measurement (CAM2) solutions, announced financial results for the second quarter ended June 30, 2002.

Second quarter sales were approximately $10.1 million, a 21.7% increase from approximately $8.3 million in the second quarter of 2001. On a sequentia lbasis, second quarter sales increased 17.4% from approximately $8.6 million inthe first quarter of 2002. The net loss for the second quarter wasapproximately $2.0 million, or 17 cents per share compared to a net loss ofapproximately $1.6 million, or 14 cents per share in the year-ago quarter. Excluding a $729,000 one-time write-down of inventory and a $245,000 provision for doubtful accounts receivable related to recently acquired SpatialmetrixCorporation ("SMX"), the net loss for the second quarter of 2002 was approximately $1.1 million, or nine cents per share.

Regionally, sales in the USA increased 46.9% to approximately $4.7 million in the second quarter of 2002, from approximately $3.2 million in the same period in 2001, primarily as a result of sales of the Company's new laser tracker-based Control Station product. Sales in Europe increased 2.9% in the second quarter of 2002 to approximately $3.6 million from approximately $3.5 million in the same quarter in 2001, primarily from increased sales of FaroArm-based Control Station products. Sales in the rest of the world increased 12.5% to approximately $1.8 million in the second quarter of 2002 from approximately $1.6 million in 2001, from increased sales of FaroArm-based Control Station products.

"We began to ship our new laser tracker product in the second quarter, and we expect to continue to ramp up shipments of this product through the rest o fthis year," said Simon Raab, Faro's president and CEO. "I am excited about the initial customer interest in this latest generation technology, which resulted in approximately $4.1 million in backlog of laser trackers at June 30, 2002. We expect to be able to ship this backlog by year end."

"I am very conscious of the erosion in our total cash and investments year to date, resulting primarily from the acquisition costs of SMX and its ongoing operating expenses, which have not been offset by deliveries of the laser tracker product. We completed the integration of the SMX sales, service and administration departments into the Company's corresponding departments in the quarter. The ramp up of laser tracker deliveries combined with reduced SG&A expenses as a percentage of sales should result in a return to profitability by the fourth quarter," Raab concluded.

The company had cash and total investments of approximately $6.9 million and virtually no debt at June 30, 2002.

 

Comments on LeCroy Corporation's Fourth Quarter

LeCroy President and Chief Executive Officer Tom Reslewic commented, "Our fourth quarter results were substantially in line with our earlier guidance excluding the one-time R&D expense associated with our IBM technology agreement. Product orders grew slightly from the third quarter and represented the second consecutive quarter of sequential product order growth. We were able to convert a significant previous quarter backlog into shipments in the fourth quarter, posting a 22% increase in sales over the third quarter. Our gross margins increased for the second straight quarter to approximately 51% and we generated about $1.3 million in cash during the quarter."

"The WaveMaster product family continued its performance momentum during the fourth quarter as unit sales increased sequentially by more than 50% and unit bookings grew by more than 20% from the third quarter," Reslewic said. "The WaveMaster product family, our first using SiGe components featuring LeCroy's proprietary chip design, is a clear success. Based on this success and in the confidence we have in the tremendous potential of this technology, we invested $4.0 million during the fourth quarter to gain access to IBM's next-generation 0.18 um SiGe technology. We expect that components made with this advanced SiGe technology will ultimately allow us to deliver ultra-high speed digital oscilloscopes with specifications that far surpass anything currently available in the market."

Reslewic added, " LeCroy achieved an important company milestone. For the first time in history, LeCroy has introduced the world's highest performance digital oscilloscope, the WaveMaster 8600A. Our new 6GHz WaveMaster combines industry leading bandwidth and sample rate performance with unrivaled capabilities in terms of memory length and analysis. We expect to add capabilities and functions to the WaveMaster products aimed at specific application segments throughout the year." "During the quarter, we completed the conversion of our US sales channel to a 100 percent direct sales force as planned and have already begun to realize benefits," Reslewic said. "We have seen steady improvement in the US order rate since that geographic region hit a low point in our second fiscal quarter. Orders in the US increased 28% from the third quarter and contributed the highest level of orders among our three geographic regions. The US generated 34% of total orders in the fourth fiscal quarter, compared to 21% of the total in the second fiscal quarter. We believe this is an early indication of the effectiveness of the new sales leadership and the acceptance of our WaveMaster products."

 

MKS Instruments Reports Second Quarter 2002 Results

MKS Instruments, Inc., a leading provider of products that measure, control, power and monitor critical parameters of semiconductor and other advanced manufacturing process environments, reported second quarter financial results that exceeded the company's revenue and earnings guidance. Second quarter 2002 revenues totaled $85.9 million, a 45 percent increase compared to first quarter 2002 revenues of $59.1 million and an 18 percent increase compared to second quarter 2001 revenues of $72.7 million.

"In the second quarter, we saw increased demand from our semiconductor OEM customers including the pipeline effect of those customers adjusting their work-in-process inventory. The underlying sequential quarterly growth rate for the current MKS product groups was 36 percent, which includes strong growth from the acceptance of our products in new customer applications. The reported 45 percent growth rate includes a full quarter of sales from our new ENI, TeNTA and IPC product groups," said John R. Bertucci, Chairman, CEO and President of MKS.

"We achieved major design wins in the second quarter. For example, in our pressure business, a special version of our industry standard Baratron(R) capacitance manometer product achieved a key design win at a major OEM. New versions of our Astron(R) product have been designed into multiple applications in 300mm semiconductor and flat panel markets. We're also pleased with ENI's market share gains in the key DC power delivery segment for PVD applications," said Mr. Bertucci.

In the second quarter of 2002, MKS introduced new products and integrated subsystems for semiconductor capital equipment to support ongoing technology transitions. Among the new products introduced at SEMICON West were the iBaratron(R) family of all-digital manometers for 300mm applications; the all- digital ALTA multi-gas, multi-range mass flow controller; the ASTRON(R)i, the next generation of the patented ASTRON(R) family of reactive gas generators for process chamber cleaning; the Dual Pressure Control subsystem that integrates pressure and flow technologies for backside wafer cooling; and additions to the PICO line of portable leak detectors for atmospheric and vacuum applications.

Mr. Bertucci continued, "We accelerated our research and development spending in the second quarter, reflecting higher levels of activity for new customer programs. We remain positive about our long-term growth prospects, given our leadership position in key process technologies that surround the process chamber. Although visibility is limited, we anticipate that sequential growth may continue in the third quarter but at a lower rate, following better than expected results in the second quarter. Based on current order rates and quarter-to-date shipments, third quarter revenues could range from $85 to $90 million. Including a lesser apportionment of tax benefits related to our foreign operations, we estimate net cash earnings per share could range from a loss of $(0.04) per share to breakeven. We expect to continue investing in research and development while simultaneously accelerating our focus on material cost reduction and expense containment."

 

PerkinElmer Second Quarter Report

PerkinElmer, Inc. announced second quarter 2002 cash earnings per share from continuing operations of $0.07 on revenue of $336 million. GAAP earnings from continuing operations, reflecting the amortization of intangibles, was $0.03 per share. For the same period last year, cash earnings from continuing operations were $0.30 per share on revenue of $321 million, and GAAP earnings from continuing operations were $0.20 per share.

Reported revenue from continuing operations was up 4% over the same period last year. Adjusted for acquisitions, divestitures and the impact of foreign exchange, revenue declined 6% organically. Cash operating income was $19 million, or 6% of revenue. GAAP operating income, reflecting the amortization of intangibles, was $12 million, or 4% of revenue. Compared to the first quarter of 2002 revenue grew 11% sequentially, with each business unit reporting quarter-over-quarter revenue growth.

The company achieved this revenue growth on flat operating working capital, improving working capital turns from 3.2 in the first quarter of 2002 to 3.6 in the second quarter of 2002. (Working capital turns defined as current period revenue annualized, divided by end of period working capital).

During the quarter the company completed the divestiture of its Detection Systems business. As a result of the previously announced strategic review, the company also discontinued its telecom components business and its entertainment lighting business. The latter business is currently being actively marketed to interested buyers. The combined impact of all of these actions was a $4 million pre-tax loss and $11 million after tax loss, or ($0.09) per share.

Life Sciences reported revenue of $129 million for the quarter, up 66% over the second quarter of 2001, due to the inclusion of Packard BioScience. Year over year, revenue grew 2% pro-forma adjusted for acquisitions, and including the favorable impact of currency. Revenue was flat organically. Sequentially, over the first quarter of 2002, revenue grew 10% with particular strength in high throughput screening. The Life Sciences business unit was awarded a patent covering the use of its geometric beamsplitter technology, delivering a signal-to-noise ratio five times higher than traditional microarray imaging. The business unit was also presented a Frost & Sullivan award for its protein array product strategy which positions the HydroGel(R) surface chemistry as a comprehensive research solution in the manufacture of protein arrays. Operating margins for the second quarter of 9.5% were down year over year reflecting the impact of acquisitions and investments in sales and marketing.

Optoelectronics reported revenue of $83 million, down 6% from the same quarter last year adjusting for businesses divested in the past twelve months, or down 7% organically, reflecting softness in the photography and semiconductor end markets. Sequentially over the first quarter of 2002, revenue grew 19% led by strong demand for products serving biomedical end markets, such as digital imaging and medical sensors. Optoelectronics introduced several new products for the Biomedical end-market including the Astrocam(R) II cooled CCD camera, for such applications as protein quantification, fluorescent microscopy, bioluminescence and chemiluminescence, and a new version of the amorphous silicon digital detector for high end radiology. Operating profit was 6.3% due to lower volume and resulting unabsorbed overhead.

Analytical Instruments reported revenue of $124 million, a decline of 8% from the same period in 2001 adjusting for the impact of divestitures, or down 11% when also excluding the favorable impact of currency, as a result of global slowdown in capital spending particularly within the chemical sector. Revenue was up 7%, however, when compared to the first quarter. Analytical Instruments introduced UV WinLab(TM) software meeting 21 CFR part 11 data integrity and electronic record keeping requirements. The unit also launched the Clarus(TM) 500 gas chromatograph and Clarus(TM) 500 MS, the industry's fastest scanning and widest mass range quadrupole mass spectrometer. Lower volume and competitive pricing pressure contributed to year-over-year contraction in operating margin from continuing operations to 4.6%.

 

Varian, Inc. Reports Third Quarter Results

Varian, Inc. announced a quarter of solid performance which included continued year-to-year and sequential revenue growth in its Scientific Instruments segment and continued, sequential revenue improvements for its Vacuum Technologies and Electronics Manufacturing segments. Reported sales for the third quarter of fiscal year 2002 reached a quarterly record of $197.7 million compared to $184.1 million in the fiscal year 2001 third quarter or an increase of 7%. Sales in local currency revenues increased 6%. The term "local currency revenues" means sales adjusted for the effects of foreign currency fluctuations.

Third quarter net earnings were $13.0 million, or $0.37 diluted earnings per share, compared to net earnings of $10.9 million, or $0.32 diluted earnings per share, for the prior-year quarter. Third quarter cash earnings per share were $0.38 compared to $0.34 in the prior-year quarter. Cash earnings per share is based on net earnings excluding any amortization of goodwill and intangibles from acquisitions.

"We are particularly pleased to see the revenue growth spread across so many products in such diverse markets and applications," said Allen J. Lauer, chairman and CEO. "Our product offerings for life science applications grew nicely, while those for chemical analysis and some industrial uses showed signs of improving demand."

Scientific Instruments sales grew to a new high of $123.3 million, an increase of 18% for the third quarter of fiscal year 2002 compared to the third quarter of fiscal year 2001. In local currencies, revenues increased 16% compared to the third quarter of fiscal year 2001. Growth was driven by demand for a number of products used in diverse life science applications and by sales of new products for chemical analysis. The acquisition of ANSYS Technologies, Inc. in the second quarter also contributed to higher sales. The operating margin for Scientific Instruments for the quarter was 10.5%.

Vacuum Technologies continued to show signs of recovery from the current cyclical downturn. Revenues for the third quarter of fiscal year 2002 were $27.9 million, a 15% decline (17% in local currency revenues) from the prior-year quarter. However, they were up 3% sequentially over the second quarter of fiscal year 2002. Operating margins were still strong for Vacuum Technologies at 14.7% for the third quarter of fiscal 2002.

Electronics Manufacturing revenues for the third quarter of fiscal 2002 were $46.5 million, down slightly from the $46.9 million in the same quarter a year ago. Sequentially, however, sales grew 6% over the second quarter with continued good demand from health care equipment companies and industrial customers. Operating margins were a record 11.4% as a result of operating efficiencies and unusually low customer start-up costs.

"Our strategy of breadth and balance has served us well during this time of economic uncertainty," said Lauer. "We have invested in all of our core technologies so that we can offer the innovative new products which are particularly attractive to customers in a tight market. At the same time, we have adapted and combined products and technologies to serve new customer needs and expanding applications. And finally, we have continued our drive into life science applications without under-serving our industrial customers who also demand product improvements and dedicated support.

"As the economy recovers, this same strategy should position us to take full advantage of increased demand," said Lauer. "We are not dependent on a single industry or a single product line. Rather, we are prepared to provide a broad array of innovative products that can be targeted wherever and whenever demand occurs.

"We sense that the economic cycle has bottomed, but remain cautious with our guidance until we see further indications of recovery. For the fourth quarter of fiscal year 2002, our guidance is $0.36 to $0.37 diluted earnings per share, and for the year, we are revising our guidance from the $1.43 to $1.45 range to $1.45 to $1.46, excluding the in-process R&D charge taken in the second quarter."

 

News From All American Scales & Calibration, Inc.

All American Scales & Calibration, Inc. would like to announce our transition from ISO Guide 25 to ISO Guide 17025. We are an A2LA accredited laboratory, certification number 1848.01. We would also like to announce the promotions of David Angione to Vice President of Operations for All American Scales, Inc. Ohio; Frank Brunk to Regional Vice President of Operations for All American Scales, Inc. and All American Calibration, Inc. Indiana, and Ronald Clinton to the position of Vice President of Operations for All American Calibration, Inc. Ohio.

All American Scales & Calibration, Inc. prides itself in setting the standard of quality by being the largest, most comprehensive, single source repair and calibration laboratory you can find. Our professional metrologists and customer service representatives assure you the highest standard of service and quality. Our state-of-the-art facility, standards and equipment ensure that all of the equipment serviced by All American Scales & Calibration, Inc. meets or exceeds manufacturer specifications.

Our Company information and scope is posted on our website at www.aacalibration.com. All American Scales & Calibration is located in Paris, Ohio.

 

AMETEK Achieves Record Results

AMETEK Inc. announced second quarter results that established records for operating income, net income and diluted earnings per share. AMETEK's second quarter 2002 sales of $267.4 million were up 2% from the $261.4 million posted in the second quarter of 2001. Operating income for the second quarter was $37.7 million, a 6% increase over the same period of 2001. Net income totaled $21.3 million, up 14% from $18.7 million in the 2001 second quarter. Diluted earnings per share rose 13% to $.63 per share from the second quarter 2001 level of $.56 per share.AMETEK continues to generate excellent cash flow. Operating cash flow in the quarter was $48 million driven by strong working capital management.

"The success of our operational excellence and acquisition strategies drove our solid second quarter performance. The three strategic acquisitions completed in 2001 made significant contributions to both our sales and profitability," commented Frank S. Hermance, AMETEK chairman and chief executive officer.

"Our business is properly sized to the current economic environment. The significant cost reductions we have implemented contributed to the strong earnings this quarter and will provide leveraged earnings growth when the economy recovers," noted Mr. Hermance. For the first half of 2002, AMETEK sales increased 1% to $531.0 million from $525.5 million in the same period of 2001. Operating income totaled $74.1 million; a 4% increase from $71.3 million earned in the first half of last year. Net income for the first half of 2002 was $41.0 million, up 11% from $36.9 million in the same period of 2001. Diluted earnings per share were up 10% to $1.22 for the first half of 2002, versus $1.11 in 2001.

On January 1, 2002 AMETEK adopted SFAS #142, which eliminated amortization of goodwill. The impact of the amortization of goodwill in AMETEK's 2001 second quarter results was $.07 per diluted share and $.14 per diluted share for the first six months of 2001.

"Our outlook for 2002 remains unchanged. We expect revenue growth to be modest, as market conditions remain weak. While some macroeconomic data points to a recovery, those indications have not yet translated into consistent strength in our markets. The significant cost reductions that we have put in place since the latter part of 2000 continue to yield bottom-line benefits. We continue to expect earnings this year of approximately $2.50 per share, up 18% from last year. Our expectations reflect the elimination of amortization of goodwill, which totaled $.30 per diluted share in our full-year 2001 results," concluded Mr. Hermance.

 

New Publication Explains NIST Computer Time Services

Not one, but three computer time services are at your command from the National Institute of Standards and Technology (NIST). So, to make certain they are as simple to use as possible, NIST's Time and Frequency Division recently issued a special publication that provides a complete description of the three services-the Internet Time Service (ITS), the Automated Computer Time Service (ACTS) and the time Web site (www.time.gov).

ITS is the newest and most used of the time services trio with more than 500 million requests per day. It is based on commercial UNIX work-stations whose clocks are synchronized to coordinated universal time (known as UTC) and use periodic dial-up telephone connections to ACTS. ITS is an important part of the nation's time infrastructure as e-commerce and e-business operations use it to synchronize the clocks that time stamp commercial and financial transactions.

ACTS, built before the advent of the Internet, is used primarily to synchronize clocks in computers and other types of electronic equipment that have access to phone lines but are not connected to the Internet. ACTS provides the time reference for ITS.

The www.time.gov Web site provides the time in any US time zone-accurate within 0.2 seconds-for those who want to manually synchronize devices such as a computer clock, wall clock or wristwatch. This Web site is not capable of automatically synchronizing a computer's clock. For a copy of NIST Computer Time Services: Internet Time Service (ITS), Automated Computer Time Service (ACTS), and time.gov Web Sites (NIST Special Publication 250-59), contact Judah Levine at (303) 497-3903 or jlevine@boulder.nist.gov.

 

Keithley Instruments Reports Fiscal 2002 Third Quarter

Keithley Instruments, Inc., a leader in solutions for emerging measurement needs, announced sequential double-digit increases in both sales and orders, including the first year-over-year order increase in 18 months for its fiscal 2002 third quarter that ended June 30, 2002. Net sales of $26.0 million for the third quarter of fiscal 2002 increased 18 percent from the second quarter. Compared to the prior year's third quarter, net sales decreased 28 percent from $36.3 million last year. The net loss for the third quarter of fiscal 2002 of $0.9 million, or $0.06 per share, includes $0.06 per share for severance charges, which affected approximately 7 percent of the workforce. Excluding the severance charges, the company was profitable with pretax earnings of $0.1 million. The company reported net income of $4.1 million, or $0.25 per share, in last year's third quarter.

Orders of $30.9 million for the third quarter increased 36 percent from the second quarter, and 11 percent from the prior year's third quarter; the first year-over-year increase since December 2000. The increase is due primarily to higher orders for the company's products serving the semiconductor industry, and includes a $5 million order from a single semiconductor industry customer. When compared to the second quarter, orders from the semiconductor industry increased 149 percent, wireless industry orders increased 24 percent, optoelectronics industry orders were up 8 percent, while research and education customer orders decreased 5 percent. When compared to the prior year's third quarter, geographic orders were up 18 percent in the United States, flat in Europe, and down 4 percent in the Pacific Basin. For the first nine months of fiscal 2002, semiconductor orders comprised approximately 30 percent of the total, wireless orders accounted for about 15 percent, optoelectronics orders made up 5 percent, while research and education comprised approximately 20 percent of total orders. Order backlog increased 39 percent during the quarter to $17.0 million at June 30, 2002.

"Reporting our second consecutive quarter of sequential growth in sales and orders is encouraging, particularly when viewed in combination with our improving financial results," stated Joseph P. Keithley, the company's Chairman, President and Chief Executive Officer. "Sequentially, orders increased 36 percent, and orders from our semiconductor customers were particularly strong. The workforce reduction, which was primarily in manufacturing, will allow us to maintain our investments in areas that will generate future growth, and will partially offset cost increases that will occur over the next 12 months. We will continue to allocate resources to areas that we believe provide the most long-term benefit to our customers and shareholders."

"Additionally, we are beginning to implement a lean manufacturing initiative," added Mr. Keithley. "We are excited about the benefits we expect to receive from lean manufacturing, and anticipate shorter lead times, lower inventory levels, and higher inventory turns as we progress with the implementation. We have adjusted our manufacturing staffing consistent with this initiative."

"Although conditions are difficult in most segments of the electronics industry we serve, we remain cautiously optimistic. We expect continued improvement in some segments of the electronics industry over the next year, while other segments may not improve in the near-term. Based on our current order activity and orders in backlog, we would expect net sales for the fourth quarter to range between $26 and $28 million. Given this level of sales, we would expect break-even results at the lower end of the sales range, and pretax earnings as a percentage of sales in the low single digits at the higher end of the range," added Mr. Keithley.

 

Mettler-Toledo International Inc. Reports Second Quarter 2002 Results

Mettler-Toledo International Inc. announced net earnings of $24.4 million, or $0.54 per share on a diluted basis, before non-recurring items for the quarter ended June 30, 2002. It is equal to 2001's second quarter earnings per share before non-recurring items, after adjusting last year for the new goodwill accounting standard. On a reported basis, earnings per share before non-recurring items increased 8% over last year's reported amount of $0.50 per share before non-recurring items.

For the six months ending June 30, 2002, earnings per share before non-recurring items on a diluted basis amounted to $0.95, a 4% increase over the prior year amount of $0.91, which is before non-recurring items and adjusted for the new goodwill accounting standard. It represents a 13% increase over last year's reported net earnings of $0.84 per share before non-recurring items. Sales for the quarter were $296.5 million, compared with $279.0 million for the quarter ended June 30, 2001. This represents an increase of 4% in local currency sales before a further 2% effect of favorable exchange rates. The Company's operating income, before amortization and restructuring charges, amounted to $41.0 million, or 13.8% of sales, compared with $40.4 million, or 14.5% of sales, in the same period of 2001.

For the six months ended June 30, 2002, the Company reported sales of $569.4 million, compared with $544.7 million for 2001. This represents an increase of 5% in local currency sales. Operating income, before amortization and restructuring charges, for the same period was $73.6 million, or 12.9% of sales, compared with $70.7 million, or 13.0% of sales, in the prior period.

Robert F. Spoerry, Chairman, President and Chief Executive Officer, stated, "I am pleased with the strong margins and excellent cash flow we delivered in the quarter. Our free cash flow is up 40% year-to-date, and we expect to exceed our target for the full year. On the other hand, sales growth came in at the low end of our expectations, particularly in the month of June."

Spoerry continued, "Our cost-rationalization programs announced last quarter are well under way. However, in light of the more difficult environment, we have expanded their scope and, as a result, expect to realize higher savings. The programs will cost us approximately $28.7 million before tax ($20.1 million after tax) and should generate between $15 million and $20 million in annual savings."

Spoerry concluded, "Looking forward, our market leadership positions are strong, and we have an excellent product pipeline to further enhance these positions. We continue to increase investment in the strategic areas of our business such as R&D, while at the same time taking aggressive measures to fundamentally improve our cost structure. In summary, we are convinced that the combination of our market leadership, the diligent execution of our strategies and the measures we are taking to improve our cost leadership will position us to deliver stronger results as our markets improve."

For the six months ended June 30, 2002, the Company reported local currency sales growth of 17% in the Americas and 8% in Asia and the Rest of World and a sales decline of 8% in Europe.

 

Sypris Reports Second Quarter

Sypris Solutions, Inc. reported second quarter earnings increased 58% to $0.19 per diluted share compared to $0.12 per diluted share for the second quarter in 2001. Net income for the second quarter increased 132% to $2.8 million compared to $1.2 million for the same quarter in 2001. Revenue increased 16% to $73.5 million from $63.2 million for the prior year period. For the six months ended June 30, 2002, the Company reported earnings increased 57% to $0.36 per diluted share compared to $0.23 per diluted share for the prior year period, while net income increased 108% to $4.6 million compared to $2.2 million for the prior year period. Revenue for the first six months increased 12% to $136.0 million, up from $121.2 million for the same period in 2001.

"We are pleased with the financial results for the quarter and the first half of 2002," said Jeffrey T. Gill, president and chief executive officer. "The Company's operating margins continued to expand, while revenue increased for the twelfth consecutive quarter on a comparable period basis. Net bookings increased 74% to $73.0 million when compared to the prior year quarter, resulting in a backlog of $161.8 million at the end of the period, up from $142.3 million a year ago."

"The growth in demand for the quarter was pervasive across both segments of the Company. The Electronics Group recorded a 39% increase in comparable period bookings driven by demand for services and products from the aerospace and defense community. The Industrial Group recorded a 229% increase in comparable period bookings as a result of the Visteon contract and strong demand from customers who service the medium and heavy-duty truck market."

"In addition to the strong financial performance for the quarter, we realized several accomplishments that will benefit future periods. Net debt was reduced to just 16% of total capital as a result of the successful completion of the stock offering and the positive cash flow from operations. The acceleration of our contract with Visteon and the award of an Expanded follow-on contract with Honeywell contributed to the Company's bookings momentum. The notable strength of our balance sheet and the continued growth in new orders place us in a very solid position going forward." Gill added, "As a result, we expect year-over-year growth in earnings per share and revenue to continue throughout 2002. More specifically, our outlook for the third quarter is for earnings to be in the range of $0.21 to $0.23 per diluted share, assuming 15.0 million weighted average shares outstanding, compared to $0.18 per diluted share for the third quarter of 2001 on 10.0 million weighted average shares outstanding. We expect revenue for the third quarter of 2002 to increase 10% to 15% when compared to the prior year quarter."

"For the full year, we have increased our earnings outlook to a range of $0.83 to $0.86 per diluted share, which is up from our prior guidance of $0.78 to $0.82 per diluted share. Our forecast for revenue growth of 12% to 15% remains unchanged. Our outlook for earnings assumes 14.0 million weighted average shares outstanding and compares favorably to prior year's earnings of $0.63 per diluted share on 10.0 million weighted average shares outstanding. Our expectations for the Company's future financial performance are predicated upon the continued recovery of the economy in general and the Company's markets in particular."

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