American Science and Engineering Reports Another Multimillion-Dollar Sale

Billerica, Mass.-based American Science and Engineering (NASDAQ: ASEI  ) announced the sale of 10 vans to foreign buyers on Thursday.

Big news? Potentially, yes.

The vans in question -- "ZBV" Mobile Screening Systems -- contain Backscatter X-ray detection apparatus that can be used to scan cargo and vehicles at security checkpoints, border stations, and other high value targets. And because the X-ray systems are loaded on vans, they're mobile and can be shifted around to where they're needed most.

American Science and Engineering (AS&E) calls its ZBV system "the top-selling mobile cargo and vehicle screening system in the world," with more than 650 systems sold to "government agencies, border authorities, law enforcement, military organizations, and security agencies in more than 55 countries." Today's announced sale will add 10 ZBVs to that tally, as the company ships the vans out to customers in "the Asia Pacific Region, the European Union, North America, and the Middle East."

AS&E did not specify a value for these new sales contracts, but in the past, a single ZBV has been estimated to cost $729,000 and up -- and public records of sales of the device have specified multiple instances in which ZBVs were sold for close to $1.2 million apiece. Working from the latter figure, today's contract could easily be worth $12 million to AS&E, and represent more than 6.6% of all the revenues the company earns in a normal year.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2781412, ~/Articles/ArticleHandler.aspx, 4/20/2014 3:28:20 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...