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MAY 2002 INDUSTRY NEWS

Swiss named as Acting Secretary-General of ISO

Dr. Christian J. Favre has been appointed Acting Secretary-General of ISO (International Organization for Standardization).

His appointment follows the death on 21 March 2002 of ISO Secretary-General, Dr. Lawrence D. Eicher. Based at the ISO Central Secretariat in Geneva, Switzerland, Dr. Favre will function as Chief Executive Officer (CEO), responsible for the orderly conduct of technical, organizational and financial matters. He will continue in this role until a new Secretary-General - whose nomination should be finalized by ISO Council in mid-November 2002 - takes office.

Dr. Favre, who is Swiss, joined ISO in 1985 as Technical Director. Until his appointment on 1 May 2002 as Acting Secretary-General, he occupied the post of Assistant Secretary-General, General Administration and Finance.

He was educated as an experimental physicist, obtaining an M.Sc. Physics and then a Ph.D in theoretical physics at Geneva University. After working as a senior research associate and reader at the Federal Institute of Technology in Lausanne, Switzerland, he became an administrator of international programmes for scientific cooperation in the Swiss Federal Administration. Following assignments as a scientific counsellor at the Swiss embassies in Washington DC, USA, and Ottawa, Canada, he returned to the Swiss capital, Bern, as Head of the Division for Energy Technologies where he was closely involved with the standardization of both conventional and alternative energy-saving systems.

Dr. Favre is committed to voluntary international standardization for its contributions to continued economic and social development by ensuring the quality, safety and reliability of products and services, and the worldwide compatibility of technology.

 

NIST Calibration Services Available for LED Luminous Intensity and Flux

NIST calibration services are now available for the total luminous flux as well as for Averaged LED Intensity for submitted LED's of limited types with an uncertainty of typically 1 % to 3 % (k=2) depending on the characteristics of LED's. Measurement equipment and procedures for determining Averaged LED Intensity (defined by CIE 127) have been developed utilizing the NIST photometry bench. A capability for measurement of total luminous flux of LED's has been established using the NIST 2.5 m integrating sphere facility. (See Optical Radiation services 37120S and 37130S).

Visit http://ts.nist.gov/ts/htdocs/230/233/calibrations/optical-rad/photometric.htm#37120S for more details.

 

Automated Precision the Inventor of Laser Tracking Technology Announces Their Relocation

Automated Precision, Inc. (API), a premier developer and manufacturer of precision laser measurement systems, will relocate their headquarters and advanced manufacturing facilities during May 2002, to a newly-constructed two-story $4.6 million dollar, 45,000 square-foot building in Rockville, MD.

The new facility is located at 15000 Johns Hopkins Drive, Rockville, MD, 20850 in the Johns Hopkins Belward Research Campus Park. All design, manufacturing, testing, calibration, and repairs of API's Laser Tracker II, IIPLUS!, and 6D Laser Measurement Systems, will resume at API's new facilities on May 30, 2002.

The new API facility employs critical environmental HVAC controls, an enlarged precision machine shop, an extended 27 meter precision laser measurement rail for calibration, and secure T1 communications/data handling capability, which is necessary to support the production and distribution of its state-of-the-art- portable coordinate measurement and metrology product lines.

Automated Precision, Inc. is the recognized technology leader in the development and manufacture of Laser Tracker and Laser Measurement Systems, and API's founder, Dr. Kam Lau, invented the first laser tracker system 15 years ago.

API has sold its technology solutions and products to the U.S. Dept. of Defense, aerospace, transportation, automotive, machine tool, robotics, and shipbuilding/repair industries for over a decade. The company's customers use API products for improving the precise calibration of machines, for continuous improvement and quality control of machine parts, for rapid prototyping through reverse engineering of measured structures or discrete parts, for alignment of power train/power transmissions elements, and for ISO 9000 manufacturing process improvements.

For more information visit www.apisensor.com.

 

Agilent Technologies Reports Second Quarter Results at Expectations

Agilent Technologies Inc. reported orders of $1.60 billion and revenue of $1.46 billion for the second quarter of the fiscal year 2002 ended April 30, 2002. On an operating earnings before goodwill (EBG) basis, the company lost $112 million, or $0.24 per share, consistent with company expectations of a loss of $0.20 to $0.30 per share on revenues of $1.45 to $1.55 billion.

After $95 million of non-cash goodwill and amortization charges and $35 million of restructuring expenses, the net second quarter loss was $253 million, or $0.55 per share.

"The market trends that began to emerge in our first quarter continued over the past three months," said Agilent President and Chief Executive Officer Ned Barnholt. "Based on our results this quarter, we believe market conditions in our businesses have stabilized. We also continue to make good progress toward achieving an operational breakeven without depending upon recovery of our markets."

Total net orders were up 9 percent this quarter, the second consecutive rise after five quarters of steep declines, and were 14 percent ahead of one year ago. Revenues, although still down 39 percent from last year, showed the first sequential rise in six quarters with a modest 2 percent gain. Order cancellations of approximately $90 million in the second quarter were about flat with the first quarter and down from approximately $500 million last year. Compared to last year, Agilent's total regular employment is down about 6,000. The company said it will complete the previously announced 8,000-person workforce reduction by year end.

Barnholt noted that balance sheet improvements also continued in the second quarter, with inventories reduced an additional $71 million and capital spending, at $86 million, was down nearly $200 million from last year.

Said Barnholt, "We are also seeing good returns in the marketplace from the substantial investments Agilent has made over the past 18 months in new product development. At this point, we are confident that the combination of new products and share gains will enable Agilent's fourth quarter revenues to outpace expected market growth by $150 million."

 

FARO Technologies Reports First Quarter Results

FARO Technologies, Inc., a leading provider of computer-aided manufacturing measurement (CAM2) solutions, announced financial results for the first quarter ended March 31, 2002.

First quarter sales were approximately $8.6 million, a 2.4% increase from approximately $8.4 million in the first quarter of 2001. The net loss for the first quarter of 2002 was approximately $1.7 million, or 14 cents per share, compared to approximately $1.1 million, or 10 cents per share in the year ago quarter. Excluding the impact on sales of SpatialmetriX Corporation ("SMX"), which was acquired in January 2002, first quarter sales were approximately $7.8 million, a 7.1% drop from the year ago quarter. Excluding the impact of SMX the Company had a net loss of approximately $666,000 or six cents per share in the first quarter of 2002, a decrease of four cents from 10 cents per share in the first quarter of 2001. The Summary Financial Table below shows the results of operations with and without the effect of SMX in the first quarter.

Regionally, as a result of the sales from the former SMX unit in the first quarter of 2002, sales in the USA increased 14.7% to approximately$3.9 million in the first quarter of 2002, from approximately $3.4 million in the same period in 2001. Sales in Europe decreased 11.8% in the first quarter of 2002 to approximately $3.0 million from approximately $3.4 million in the same quarter in 2001. Sales in the rest of the world dropped 6.3% to approximately $1.7 million in the first quarter of 2002 from approximately $1.6 million in 2001. There were virtually no sales in Europe or the rest of the world related to the SMX acquisition.

"We saw a continued slowdown in capital spending by manufacturers worldwide in the first quarter which resulted in a year-over-year decline in sales of our traditional products," said Simon Raab, FARO's President and CEO. "However, the first quarter will hopefully represent a low water mark for FARO in terms of revenues and earnings as we had only $829,000 in low margin service and parts sales from the former SMX unit in the quarter, but all of its $1.3 million in operating expenses. Approximately one half of these operating expenses were research and development costs related to completing the development of the new laser tracker product, and we expect these laser tracker product R&D expenses to drop off by as much as 30% as this development is completed. Also, based on other organizational changes and headcount reductions I expect the payroll related to the former SMX unit to be cut by35%, from approximately $1.0 million in the first quarter to approximately$650,000 by the third quarter of 2002. With a ramp up in supply of the new laser tracker, and streamlining of operating expenses of the former SMX unit, by the third quarter the SMX acquisition should be accretive to earnings."

The company had cash and total investments of approximately $9.1 million and virtually no debt at March 31, 2002.

 

Mahr Federal Appoints Pat Nugent Vice President Of Metrology Systems

Mahr Federal has announced the appointment of Patrick Nugent as Vice President of Metrology Systems. Pat comes to Mahr Federal from parent company Mahr GmbH in Göttingen, Germany, where he was responsible for Mahr's Metrology Systems Customer Solutions Group. In his new position he will report directly to Mahr Federal President, Craig Crossley.

"Pat brings to our company a wealth of knowledge and experience critical for success," said Crossley. "His primary objective is to lead our Systems business development, furthering its profitable growth within the North American marketplace." Reporting to Nugent will be three senior product managers and their support teams.

Prior to joining Mahr GmbH in 1998, Nugent worked for Cummins Engine Company, serving in a number of engineering and metrology management positions, including Director of Quality. He has a Bachelor of Science degree in Mechanical Engineering and a Master of Science in Manufacturing Systems Engineering, both from the University of Wisconsin.

Mahr Federal, a member of the Mahr Group, is known worldwide for its expertise in providing dimensional measurement solutions. The ISO 9001-certified company manufactures and markets a wide variety of dimensional metrology products, and is headquartered in Providence, RI.

For additional information visit www.mahrfederal.com.

 

ENDEVCO®'s Upcoming Course Offerings

ENDEVCO® offers two short courses directed at engineers and lab technicians interested in gaining a better understanding of the theory and practical applications relating to accelerometer and pressure transducer technologies, as well as calibration techniques for such devices. These courses are scheduled throughout the year. The shock & vibrations measurement course is planned for June 25-27, 2002 and the accelerometer calibration course is planned for September 10-12, 2002.

Continuing education units are awarded for these courses. For more information on these technical short courses visit www.endevco.com.

 

Techmaster Electronics Achieves ISO 17025 Accreditation

Techmaster Electronics has achieved their ISO 17025 accreditation from TUV Rheinland of North America. Techmaster Electronics has locations in San Diego, CA, Houston, TX, Redmond, WA, El Paso, TX and Tijuana, Mexico.

Some of Techmaster Electronics capabilities include a mobile laboratory which gives them the capability to do on-site calibrations, a full service repair lab, specialists in RF & Microwave (commercial & military), training programs for your in-house calibration team, complete capabilities to 50GHz and 4:1 calibration on RF power sensors.

Please visit Techmaster Electronics at www.tei4cal.com for more information.

 

FDA's Center for Devices & Radiological Health Contacts Listing Database

The Food and Drug Administration's (FDA) Center for Devices & Radiological Health (CDRH) is looking for persons interested in medical devices and radiological health products. The Contacts Listing Database collects the names of individuals and organizations interested in helping CDRH examine issues, develop policy and inform people with specific interests. CDRH frequently needs to find people who have an interest in medical devices or radiation-emitting devices so that CDRH can invite them to discuss policy issues about these devices. Web visitors can sign up for the database voluntarily and choose areas of interest at: http://www.accessdata.fda.gov/scripts/cdrh/cfdocs/contacts/Index.cfm.

Joining this database, which CDRH can search according to your interests, affiliations, and geographic areas, will make it easier to contact you by Email. Joining the Contacts Listing costs nothing and is simple to do.

For more information about the Center for Devices and Radiological Health visit www.fda.gov/cdrh/index.html.

 

Weight Problems? NIST Handbook Hopes to 'Reduce' Error with Carts

Even the fittest truckers suffer anxiety about their weight-that is, whenever they pull into a state truck weigh station. Inaccurate truck weights can result in fines costing thousands of dollars. Erroneous weights from truck scales at commercial enterprises can result in shortages of products to wholesale buyers or lead to excessive wear and damage to roads due to overloading.

To keep the scales accurate and the weights true, the National Institute of Standards and Technology (NIST), in cooperation with state weights and measures officials and members of the scale industry, has devised draft recommendations for better use of weight carts and is now seeking comments on the proposed standard. Weight carts are mobile units of predetermined weight used in conjunction with thousands of pounds of additional weights, commonly employed in the calibration of truck scales. Whenever the scale registers a weight different from that of the combined weight of the cart and weights, scale operators adjust the scales. Consequently, weight carts must be maintained within a very narrow weight range.

At least 375 weight carts of various design and weight are currently in use across the nation and that is part of the problem. NIST's draft specification, called NIST Handbook 105-8, Field Standard Weight Carts, seeks both to standardize the design of future weight carts and resolve problems found with existing carts.

Among the situations addressed by the handbook are less-than-full fuel tanks, different battery weights and the use of treaded tires where embedded gravel or soil can mask a truck's true weight. NIST Handbook 105-8 will establish specific error tolerances for the weight carts and suggests remedies such as fuel tank requirements; the use of low maintenance, sealed lead acid batteries; and the substitution of treadless tires on trucks.

The latest draft of NIST Handbook 105-8 is now posted for comment at www.nist.gov/labmetrology. Click on the "Weight Carts-News" link for the draft standard and other background information. Comments on the draft document are being collected throughout 2002; final publication is expected in early 2003.

 

GE Industrial Systems to acquire Britain's Druck

GE Industrial Systems, a unit of diversified conglomerate General Electric Co. on Thursday, May 9 said it agreed to acquire British precision and test equipment maker Druck Holdings Plc. to expand its product base. GE Industrial Systems, which offers electrical power and equipment-related products, said the deal is expected to close by the end of June. Druck, which has annual revenues of about $110 million, makes precision pressure sensors and calibrators and has units in America, Europe and the Far East.

 

NIST's Manufacturing Engineering Laboratory Engineering Metrology Toolbox

NIST's Manufacturing Engineering Laboratory Engineering Metrology Toolbox is a web site for computational tools that solve real problems in dimensional measurement.The goal of the Manufacturing Engineering Laboratory is to provide world-class engineering metrology resources to US manufacturers. This web site is one of an array of mechanisms made available to NIST's customers to help them achieve high-accuracy dimensional measurements traceable to national and international standards. NIST hopes you will find it to be a useful aid that improves your measurement capabilities.

Currently the web site has two computational tools. The first tool is for calculating the index of refraction of air, which is needed for interferometric length measurements. The second tool is for calculating the elastic compression of spheres and cylinders at point and line contact, which can enable the user, for example, to correct for elastic deformations when measuring a part with a contacting probe. At this time, the calculations are implemented for seven different contact geometries. NIST will be implementing the other nine cases in the near future. The third tool, a temperature tutorial, is a web-based tutorial about effects of temperature on dimensional measurements.

Please visit the web site at http://patapsco.nist.gov/mel/div821/.

Emerson Reports Second Quarter

Emerson announced that for the second quarter ended March 31, 2002, the company achieved sales of $3.4 billion, net earnings of $275 million, and earnings per share of $0.65. Operating cash flow was $438 million, an increase of 11 percent over the second quarter of fiscal 2001, driven by strong improvements in working capital. Free cash flow increased 41 percent versus the second quarter of fiscal 2001, from $255 million to $360 million, reflecting the improved operating cash flow and lower capital spending. Year-to-date, operating cash flow increased 2 percent, to $690 million, and free cash flow was $518 million, an increase of 36 percent over the prior year.

In the second quarter of fiscal 2001, Emerson reported sales of $4.1 billion, net earnings of $359 million, earnings per share of $0.83 ($0.92 excluding goodwill amortization), and operating cash flow of $396 million.

Commenting on the results, David N. Farr, chief executive officer, said, "While our end markets remain well below year-ago levels, we achieved a 4 percent sequential improvement in quarterly sales, and order activity over the past few months is encouraging. We are seeing stable-to-increasing demand in industrial automation and electronics and telecommunications, segments that were hardest hit by the downturn. Backlog in the process business remains well above a year ago, and consumer housing-based sales have also remained strong. While no one can predict how the recovery will unfold, continuation of these trends would enable us to achieve further sequential sales improvements as the year progresses.

Discussing the business segments, Farr said, "The process control business reported sales of $837 million, a reduction of 2 percent versus a year ago. Underlying sales, excluding the Xomox industrial valves divestiture, acquisitions and currency exchange, increased 2 percent on top of a double-digit core increase a year ago.

"The increase in underlying sales was led by strong growth in Asia and Latin America, and solid growth in Europe. PlantWeb (www.EmersonProcess.com/PlantWeb) has been a key factor behind our continued success, enabling us recently to win several large projects. Since the beginning of the year, Emerson Process Management has won more than $180 million in major projects. The vast majority of the revenue for these will be realized later in 2002 and in 2003, providing positive momentum into these periods.

"Sales in the electronics and telecommunications business were $591 million for the quarter, a decline of 7 percent from the first quarter and 42 percent from a year ago. We have taken aggressive restructuring actions to respond to the weakened market environment, allowing us to maintain positive earnings at lower volume levels. This business should realize strong profitability improvement as demand returns.

"During the quarter, Emerson divested its ENI solid-state power supplies business in exchange for 12 million shares of MKS Instruments, resulting in a pretax gain of $93 million. The impact of this gain was approximately offset by ongoing costs for the rationalization of operations and other items. "Sales in the industrial automation segment declined from $760 million to $600 million in the second quarter of fiscal 2002, reflecting continued weakness in the European and U.S. industrial capital goods markets, divestitures, and unfavorable currency exchange.

 

Mettler-Toledo International Inc. Reports First Quarter 2002 Results

Mettler-Toledo International Inc. announced net earnings of $18.7 million, or $0.41 per share on a diluted basis, for the quarter ended March 31, 2002. This represents an 11% increase over the first quarter 2001 net earnings of $0.37 per share, which is pro forma for the new goodwill accounting standard. It represents a 21% increase over last year's reported net earnings of $0.34 per share.

Sales for the quarter were $273.0 million, compared with $265.6 million for the quarter ended March 31, 2001. This represents an increase of 5% in local currency sales, partially offset by unfavorable exchange rates. The Company's adjusted operating income increased 7% to $32.6 million, or 11.9% of sales, compared with $30.3 million, or 11.4% of sales, in the same period of 2001.

Robert F. Spoerry, Chairman, President and Chief Executive Officer, stated, "We are pleased to have delivered another quarter of earnings growth given the difficult economic environment. Our cost-savings initiatives including leveraging our manufacturing base in China, achieving more efficient procurement and improving service productivity continue to generate benefits. These initiatives helped to sustain our earnings growth in the face of a pronounced slowdown in Europe and continued weakness in North America. Asia continues to produce strong financial results. Finally, our overall cash flow generation improved nicely from last year."

Spoerry continued, "To further enhance our leadership position, specifically our cost leadership, we have started to implement a series of cost-rationalization programs. In total, we expect to realize sustainable annual cost savings between $12 million and $15 million. In the second quarter, we will record a one-time pre-tax charge related to these initiatives of approximately $22 million to $24 million of which about one-third will be non-cash."

The Company also announced that it had completed the acquisition of SofTechnics Inc., a leading provider of in-store software solutions. Spoerry remarked, "SofTechnics provides METTLER TOLEDO with a key building block in our solution offering to food retailers. Its software provides the full scope of real-time item management, thereby allowing retailers to match local store inventory levels with local customer demand. SofTechnics strongly complements our leadership position in solutions for the management of perishable goods. In addition to cross-selling benefits, we will be able to offer an integrated data management solution in the future."

Spoerry concluded, "Our competitive position is as strong as ever and will be even further improved by the offensive and defensive measures we are implementing now. As a result of the significant investment in R&D over the last several years and into the first quarter, we have created a robust product pipeline for this year and next. Recent introductions include a PC-based enterprise software for our new automated line of titrators that enable customers to comply with FDA requirements. In drug discovery, we have a record number of new launches scheduled for this year. And we are introducing a new PC-based network solution which allows food retailers to communicate and integrate information globally. Strategic acquisitions are also strengthening our franchise. The integration of Rainin is well on track, and SofTechnics uniquely positions us to provide a total store solution to our food retailing customers. We are convinced that the combination of our market leadership, the diligent execution of our growth strategies and the fundamental measures we are taking to improve our position as cost leader will allow us to provide even stronger results once the global economy recovers."

 

Fluke Acquires Reliable Power Meters (RPM)

Fluke Corporation, the global leader in electrical test and measurement technology, has acquired California-based Reliable Power Meters (RPM) for an undisclosed price. The sale of the leading manufacturer of power quality monitoring and analysis technology was finalized on April 15.

"Fluke has been active in the power quality market for many years," noted Jim Lico, president of Fluke. "But to this point our products have been designed solely for single phase applications. The acquisition of RPM positions us well in the three-phase segment of the power quality market. Like us, RPM has a strong commitment to their customers. They listen to the customer, and then deliver products and services that go beyond the customers' expectations.

Founded in 1992 by a group of industry veterans, RPM products allow its customers to monitor and analyze power flow and quality. This provides valuable data which can be used to point out existing problems as well as identify potential future problems before they occur. RPMs products are used in the utilities, industrial and commercial markets. Its customer base includes such well-known companies as American Express, Fidelity Investments, America OnLine, and EDS Corporation. The operation of these companies is reliant on massive data centers which must be accessible 24 hours a day, seven days a week.

What we offer our customers is a set of comprehensive products including portable and permanently-installed three-phase power monitors that employ Full Disclosure measurement technology that eliminates the guesswork of manually set thresholds, said RPM President Robert Moore, a company founder. Power quality monitoring and analysis instrumentation is a highly competitive market. By joining the Fluke Corporation we have access to tremendous resources that will also benefit our customers. This includes Flukes world-class engineering, manufacturing and marketing expertise. Their product line is highly complementary to ours. In fact, we've been selling a Fluke handheld power quality analyzer for several years.

Fluke plans to integrate RPMs product line into its Electrical Products organization. Moore will continue as the organizations president through June, after which he will be on an extended consulting contract to facilitate the organizations transition into Fluke. There are no immediate changes planned for RPMs worldwide network of sales, service and technical support services. RPM products will continue to be marketed and sold out of the RPM office in Los Gatos.

 

Greg Cenker Joins Edison ESI Metrology Engineering Team

Edison ESI Metrology, a wholly owned subsidiary of Southern California Edison, announced the appointment of Greg Cenker to its Engineering Team. Mr. Cenker possesses extensive experience in the application of scientific and engineering principles to the metrology industry. He has published a number of papers for the measurement science industry, and has presented the practical application of theoretical sciences to a number of internationally recognized technical bodies, including the Measurement Science Conference, and meeting of the National Conference of Standards Laboratories.

In addition to assisting in the continuing automation of processes within Edison ESI Metrology's 16 calibration labs, Mr. Cenker plays a pivotal role in the further development of their MudCats software system. According to Jack Burdick, Manager of Technical Services at Edison, "Greg is a very welcome addition to our team. Our calibration processes are already giving us a very competitive edge; with Greg's contributions we hope to revolutionize calibration software capabilities." Greg's many years of industry experience in the development and implementation of challenging quality programs for companies such as Fluke, Ford Aerospace, and Allied Signal Aerospace is an added bonus for Edison ESI Metrology.

Mr. Cenker received his original training in metrology while enlisted in the United States Marine Corp., and continues to write and publish in his chosen field.

To learn more about Edison ESI Metrology please visit www.edisonmetrology.com.

 

Graftel Preparing For 17025 Accreditation

Graftel, Inc. is a flow calibration company with over 10 years of experience in the nuclear energy and private sector. If your company is in need of a flow calibration specialist, please take a look at our website, www.calibrationlabs.com to see the benefits of our services.

Both air and water flow rates can be measured in our labs. Graftels abilities also include new and used Test and Measurement Equipment at our partner site www.cequipnetwork.com. From multimeters to oscilloscopes, we carry new and used equipment for every budget. If you are a calibration services specialist, please stop by either site and see what has made us one of the choice of over 80% of the Nuclear Industry for our strict control standards and design capabilities.

The below types of equipment can be calibrated in our lab.

Rotameters
Air Duct Flow Hoods
Thermal Mass Flowmeters
Laminar Flowmeters
Orifice Plates
Critical Nozzles
Controllers
Turbine Meters
Positive Displacement Meters
LFEs
Vortex Meters
V-Cone Meters
Coriolis and Ultrasonic Meters

Calibrations are performed in compliance with applicable ANSI/NSCL Z540-1-1994 requirements. Laboratory equipment is maintained in accordance with MIL-STD-45662A. Nuclear power applications meet 10 CFR 50 Appendix B, and 10 CFR 50 Part 21 requirements. All calibrations are traceable to the National Institute of Standards and Technology, (NIST). Graftel's quality system addresses and conforms to all elements of ISO/IEC 17025-1999. We are preparing for accreditation in the summer of 2002.

Gas flowrates from 0.1 sccm to 2000 SLPM and liquid flowrates from 0.01 sccm to 200 LPM can be measured. Primary standards are maintained onsite. Our flow standards typically have uncertainties less than 0.3% of reading.

Our turn-around times are typically 3 to 5 days. Next day service may be arranged by calling ahead at no additional charge.

 

Hathaway Reports Profits for the Third Quarter

Hathaway Corporation announced that it achieved net income of $307,000, or $.06 per diluted share, for the third quarter ended March 31, 2002, compared to $260,000, or $.05 per diluted share, for the third quarter last year.

Revenues for the third quarter increased to $11,388,000 this year from $11,313,000 last year. For the first nine months of fiscal year 2002, the Company recognized a net profit of $144,000, or $.03 per diluted share, compared to net profit of $1,040,000, or $.21 per diluted share, for the first nine months of last year.

Revenues for the first nine months decreased 13% to $31,152,000 this year from $35,812,000 last year. Revenues for the Motion Control segment for the third quarter decreased 30% to $4,051,000 from $5,832,000 for the third quarter last year. The decrease is primarily due to the cancellation earlier this year of a $4,750,000 order that was received in March 2001 to supply motors and optical encoders to the fiberoptic telecommunications industry. Other than the effect from the order cancellation, backlog for the quarter and year to date has increased 6% and 11%, respectively.

The Power and Process segment, comprised of the power and process instrumentation and systems automation businesses, reported revenues for the third quarter of fiscal 2002 of $7,337,000, compared to revenues of $5,481,000 for the third quarter last year, a 34% increase. The current year's Power and Process results include a $674,000 pretax gain from the sale of our 20% interest in Hathaway Si Fang Protection and Control Company (Si Fang), compared with $771,000 equity income from Si Fang included in the first nine months last year.

Last year's Power and Process results included a pretax restructuring charge of $526,000. Without the income from the China joint venture or the restructuring charge, the Power and Process segment reported a pretax loss of $1,564,000, compared with a pretax loss of $2,814,000 last year. Sales order backlog for Power and Process orders was $8,238,000 at March 31, 2002, which is down 23% from the same time last year but up slightly from December 31, 2001.

"Our Motion Control segment continues to be adversely affected by the economic slowdown," commented Dick Smith, president and CEO. "However, we have been successful in winning orders for our products from new market segments and we continue to explore opportunities to expand into new industry sectors and posture the motion control business for a quick recovery as the economy strengthens."

"We are very pleased to report that our Power and Process segment achieved significant improvements in revenues and profits reflecting a strong demand for sophisticated instrumentation to monitor and control systems by power companies throughout the world," continued Smith. "We continue to shift the focus of our systems automation business to power generation and transmission projects and away from industrial automation applications. The decrease in backlog is partially attributable to this change in focus as the new power business is not accelerating as quickly as we have been able to complete the backlog of industrial projects; however, we are continuing to build momentum with successful installations of our systems into transmission substations of major power companies."

 

PerkinElmer Reports First Quarter 2002 Results

PerkinElmer, Inc. announced first quarter 2002 cash earnings per share of $0.01 on revenue of $305 million from continuing operations. For the same period last year, cash earnings per share were $0.21 on revenue of $335 million.

The company also announced that it was increasing its focus on the health sciences market by placing its telecom component and entertainment lighting businesses under strategic review. Additionally, during the quarter, it took charges of $10.7 million for restructuring actions to further improve its cost position, and $23.5 million for inventory in the Optoelectronics business unit. With these charges, the company reported a GAAP basis loss of $0.26 per share from continuing operations. "During the first quarter we experienced weak demand in both components and capital equipment markets," said Gregory L. Summe, chairman and CEO of PerkinElmer. "Optoelectronics was particularly soft in telecommunications and semiconductor applications. In Analytical Instruments and Life Sciences, growth in consumables and services was more than offset by declines in instrumentation sales as customers deferred capital spending."

"While disappointed by our financial results this quarter, we continue to make good progress toward becoming a leading health sciences company," Summe added. "The integration of the Packard sales and R&D efforts will extend the depth and breadth of our drug discovery product offerings with automated liquid handling and sample preparation. Our digital imaging and sensors applications for the biomedical market are experiencing strong demand and we continue to prune product lines that will not advance our leading position in health sciences."

Life Sciences reported revenue of $116.8 million for the quarter, up 68.9% over the first quarter of 2001, including Packard BioScience. Organic revenue, which adjusts for Packard and the unfavorable impact of foreign exchange, was flat. Growth in the genetic disease screening and academic research markets was offset by a decline in sales to pharmaceutical and biotech customers. Operating margins for the first quarter were 11.0%, down 420 basis points from the prior year as a result of the weakness in sales of high-end instrumentation to pharmaceutical customers.

Analytical Instruments delivered operating profit of $5.2 million on sales of $115.5 million in the first quarter. Revenue declined 11% organically from the first quarter of 2001 as a result of softness in demand, particularly in the pharmaceutical and chemical end markets. Lower volume and pricing pressure contributed to operating margin contraction of 660 basis points.

Optoelectronics reported revenue of $72.8 million, down from $120.9 million in the same quarter last year, as weak demand in the telecom, semiconductor and lighting end markets more than offset growth in sensors and imaging products sold for biomedical applications. Adjusting for the sale of a specialty lighting product line last year, revenues of the business declined 24% organically. Due to the significantly lower volume, particularly in telecom components, and resulting unabsorbed overhead, Optoelectronics reported an operating loss of $5.0 million in the quarter.

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