AS&E Reports Record Second Quarter

American Science and Engineering, Inc. ("AS&E"), worldwide supplier of innovative X-ray inspection solutions, reported its financial results for the second quarter of fiscal year 2011 ended September 30, 2010. The Company reported record revenues of $80,637,000 as compared with revenues of $61,248,000 for the second quarter of fiscal year 2010, net income of $14,669,000 as compared with net income of $10,695,000 for the second quarter of fiscal year 2010, and record earnings per share of $1.59 as compared with earnings per share of $1.18 for the second quarter of fiscal year 2010.

These results represent a 32% increase in revenues, 37% increase in net income, and a $0.41 increase in earnings per share when compared to results for the second quarter of the prior fiscal year.

For the first six months of fiscal year 2011 ended September 30, 2010, the Company reported revenues of $134,280,000 which represents an increase of 16% as compared with revenues of $115,940,000 for the same period in the prior fiscal year, net income of $21,470,000 which represents an increase of 19% as compared with net income of $18,031,000 for the same period in the prior fiscal year, and earnings per share of $2.33 which represents an increase of $0.33 as compared with earnings per share of $2.00 for the prior fiscal year.

The Company reported record bookings of $116,156,000 for the second quarter of fiscal year 2011 which represents an increase of 29% as compared with bookings of $90,312,000 for the second quarter of the prior fiscal year. For the first six months of fiscal year 2011 bookings increased 30% to $192,862,000 as compared with bookings of $148,017,000 for the first six months of the prior fiscal year. Backlog as of September 30, 2010 increased 36% to a record $254,311,000 as compared with backlog of $187,427,000 for the same period in the prior fiscal year.

"Financial and operating results were outstanding for the quarter with records set across the board for bookings, backlog, revenue, and earnings per share," said Anthony Fabiano, AS&E's President and CEO. "Our revenue growth of 32% and the $0.41 increase in EPS was bolstered by increases in revenues from all business areas -- a testament to our continued efforts to expand product offerings and to meet the targets of our rigorous quality improvement and lean initiatives. Our bookings in the quarter included a $23 million order for our SmartCheck(R) personnel inspection systems and record bookings from our field service group, which helped drive backlog to a new high over $254 million. These record-breaking bookings resulted from our strong relationships with existing customers and our broadening partnerships with new customers worldwide."

In accordance with the previously announced dividend program, the Company is declaring a quarterly cash dividend of $0.30 per share, payable on December 2, 2010 to the holders of record at the close of business on November 22, 2010.