56: HOTEL INVESTORS 5530 Wisconsin Ave. Chevy Chase, Md. 20815
REVENUE: $31.5 million PROFITS: $5.3 million EARNINGS PER SHARE: $1.99 DIVIDEND: $2.60 ASSETS: $100.5 million STOCKHOLDERS' EQUITY: $49.8 million RETURN ON EQUITY: 10.4 percent (est.) EXCHANGE: NYSE EMPLOYES: 1,300 TOP EXECUTIVE: Kurt W. Schneider, president and chief executive officer FOUNDED: 1969
DESCRIPTION: Hotel Investors is the name for Hotel Investors Trust and Hotel Investors Corp., two operations jointly owned by the same stockholders. The trust, which owns and finances hotels, has an interest in 21 properties. The corporation operates eight hotels leased from the trust and manages six hotels leased from other owners.
DEVELOPMENTS: The trust bought two new properties in Phoenix and Bay City, Mich., both managed by the corporation, and sold two others that had posted disappointing earnings. Its first major development project, the Brock Residence Inn at Tysons Corner, opened to high occupancy, while the corporation doubled the number of properties it manages, adding new hotels in Texas, Virginia and West Virginia. In November, the company won contracts to manage two still-unfinished Maryland hotels.
For the fiscal year ended Aug. 31, the trust reported a 19 percent drop in profits from fiscal 1983, while the corporation said profits increased fivefold, to $92,000, on a 29 percent jump in revenue. In the first quarter of the current fiscal year, earnings for the combined operation declined slightly, although revenue leaped 55 percent, primarily because of the addition of the new properties. 57: RADIATION SYSTEMS INC. 1501 Moran Rd. Sterling, Va. 22107
REVENUE: $31.1 million PROFITS: $4.5 million EARNINGS PER SHARE: $1 DIVIDEND: None ASSETS: $41 million STOCKHOLDERS' EQUITY: $27.0 million RETURN ON EQUITY: 18.4 percent EXCHANGE: OTC EMPLOYES: 283 TOP EXECUTIVE: Richard E. Thomas, chairman and president FOUNDED: 1960
DESCRIPTION: Radiation Systems designs and manufactures high-technology antenna products for the military, air traffic and satellite communications markets.
DEVELOPMENTS: A boom in business helped Radiation Systems boost sales by 35 percent and profits by 28 percent during the fiscal year ended June 30, 1984. Earnings per share increased 25 percent from 80 cents in 1983. Growth was slightly slower for the first half of fiscal 1985, as profits rose 9 percent to $1.96 million and sales jumped by 22 percent to $15.5 million. And for the third quarter ended March 31, earnings per share came to 10 cents, far below the 20 to 25 cents analysts had been expecting, pushing stock prices down dramatically.
In July, Radiation Systems acquired Mark Antenna Products Inc. from the Mark Division of Anixter Bros. Inc. outside Chicago. The new subsidiary adds satellite and point-to-point communications markets to Radiation System's expanding network. 58: HADRON INC. 9990 Lee Hwy. Fairfax, Va. 22030
REVENUE: $29.6 million LOSS: $2.7 million LOSS PER SHARE: 21 cents DIVIDEND: None ASSETS: $15.8 million STOCKHOLDERS' EQUITY: $1.7 million RETURN ON EQUITY: NA EXCHANGE: OTC EMPLOYES: 520 TOP EXECUTIVE: Dominic A. Laiti, president and chief executive officer FOUNDED: 1964
DESCRIPTION: Hadron is a professional services and telecommunications company offering computer and telecommunications services, software packages, and engineering services to government and commercial clients.
DEVELOPMENTS: Hadron's up-and-down earnings pattern continues: After a large loss in the fiscal year ended March 31, 1984, the company reported a modest profit of $56,910 for its third quarter ended Dec. 31. For the first nine months of fiscal 1985, Hadron reported a net loss of $596,943, compared with a loss of $941,665 for the fiscal 1984 period.
The roller-coaster ride is largely attributable to the company's attempts to establish an identity and find itself a niche. In recent years Hadron has moved out of capital-intensive manufacturing of factory-automation devices and into businesses more dependent on software or engineering skills. It also is increasing its exposure in the telecommunications field, adding contracts with commercial and government customers for communications software and other services, including a "communications simulator" it is developing for the Department of Defense.
In attempting to hit on a successful mix of business, Hadron has shuffled divisions in and out of its portfolio, and has moved from high-rent offices in Tysons Corner to new, centralized headquarters in Fairfax. 59: SYSTEMATICS GENERAL 1606 Old Ox Rd. Sterling, Va. 22170
REVENUE: $29.5 million PROFITS: $1.7 million EARNINGS PER SHARE: 64 cents DIVIDEND: None ASSETS: $18.2 million STOCKHOLDERS' EQUITY: $5.1 million RETURN ON EQUITY: 40.9 percent EXCHANGE: OTC EMPLOYES: 359 TOP EXECUTIVE: Bernard Farkas, chairman and president FOUNDED: 1968
DESCRIPTION: Systematics provides systems engineering services to the federal government and computer terminal manufacturers. The company also manufactures and markets its own line of electronically secure Tempest computer terminals and related products.
DEVELOPMENTS: Systematics reported that sales leaped 40 percent for the fiscal year ended Dec. 31, although profits edged up just 1 percent over 1983 figures. The company credited growth to the increased manufacture of its Tempest-engineered computer products, which include items resistant to electronic eavesdropping.
Systematics' product line grew by 40 percent last year and sales at its engineering services division, which does fossil fuel analysis for the Department of Energy and project control work for the U.S. Navy, grew by 10 percent. 60: ENTRE COMPUTER CENTERS INC. 1951 Kidwell Dr. Vienna, Va. 22180
REVENUE: $29 million PROFITS: $6.9 million EARNINGS PER SHARE: 75 cents DIVIDEND: NA ASSETS: $62.5 million STOCKHOLDERS' EQUITY: $20.5 million RETURN ON EQUITY: 34 percent EXCHANGE: OTC EMPLOYES: 253 TOP EXECUTIVE: Steven B. Heller, chief executive officerFOUNDED: 1981
DESCRIPTION: Entre' operates an international personal computer retail franchise business.
DEVELOPMENTS: Like much of the personal computer industry, Entre' has enjoyed a tremendous rate of growth. Sales to customers through its franchises exceeded $200 million during the fiscal year ended Aug. 31, 1984, compared with $30 million in sales in fiscal 1983. Revenue skyrocketed from $8.6 million in fiscal 1983 to nearly $29 million in 1984.
Similarly, the company, which now has about 200 domestic franchises, has moved to establish an international business. Last year the company awarded franchises in Britain, France, Holland, Denmark and Sweden. This year, franchises are expected to be awarded in West Germany and Italy.
Despite the growth, there are concerns that the personal computer boom of the last several years has evaporated and that demand is flattening out. Major personal computer companies -- including International Business Machines Corp., Apple Computer and Wang -- report declining sales growth. Moreover, the retail computer industry has been marked by recent acquisitions and consolidations as purchases have slackened.
The problem may be particularly acute for Entre' because much of its increase in revenue has come from franchise growth. During the last fiscal year, 144 Entre' franchises were opened, tripling the company's franchise fee revenue. That experience is unlikely to be repeated this year. Therefore, Entre' will have to count on the success of its existing franchise base for continued revenue and profit growth.
For the first six months of fiscal 1985, Entre' said profits rose 97 percent to $5.3 million from $2.6 million in the first six months of fiscal 1984, while sales climbed 102 percent to $17.4 million from $8.6 million.