51: GENEX CORP. 6110 Executive Blvd. Rockville, Md. 20852
REVENUE: $34.8 million LOSS: $7.4 million LOSS PER SHARE: 58 cents DIVIDEND: None ASSETS: $43.9 million STOCKHOLDERS' EQUITY: $30.6 million RETURN ON EQUITY: NA EXCHANGE: OTC EMPLOYES: 264 TOP EXECUTIVES: J. Leslie Glick, chairman and chief executive officer; V. M. Esposito, president and chief operating officer FOUNDED: 1977
DESCRIPTION: A genetic, protein and biochemical engineering company, Genex has concentrated on applications for specialty chemicals, food processing and cleaning products.
DEVELOPMENTS: Genex has made the transition from a provider of biotechnological research and development services to a firm primarily involved in manufacturing and product development. It watched both its revenue and its losses grow last year, as the success of its aspartame ingredients was more than offset by the costs of starting up a commercial production facility in Paducah, Ky.
Revenue tripled to $34.8 million in the year ended Dec. 31 from $11.1 million in 1983. Product sales became the primary source of Genex's revenue for the first time in 1984, accounting for $20.6 million, or 59 percent. Of that figure, $20.2 million represented sales to Searle Food Resources Inc., which uses Genex's amino acids in the low-calorie sweetener aspartame, which is marketed under the name NutraSweet.
Losses, however, grew to $7.4 million in 1984 from $5.4 million in 1983, largely reflecting $6 million in start-up costs for the Kentucky manufacturing plant. Now seeking an infusion of capital to sustain its growth, Genex said recently it may say sell unissued stock to a corporate investor. % CLASSIC CORP. 8214 Wellmoor Ct. Jessup, Md. 20794
REVENUE: $34.1 million PROFITS: $802,000 EARNINGS PER SHARE: 45 cents DIVIDEND: None ASSETS: $13.5 million STOCKHOLDERS' EQUITY: $10.1 million RETURN ON EQUITY: 12 percent EXCHANGE: OTC EMPLOYES: 575 TOP EXECUTIVE: Isaac Fogel, chairman, president and chief executive FOUNDED: 1971
DESCRIPTION: Classic Corp. manufactures waterbed and flotation sleep products such as mattresses, liners and heaters. The company wholesales its products to independent furniture retailers and waterbed specialty stores nationwide. Classic has also begun selling its products to national furniture and mass merchandising chains.
DEVELOPMENTS: Although net sales for the year ended June 30, 1984, rose 48 percent to $34 million from $23 million in 1983, net income dropped 27 percent to $802,000 from $1.1 million.
The company blamed the decline on a number of investments, including a new heater-manufacturing plant in Portland, Maine, where Classic tripled its heating-element manufacturing capacity. Classic also purchased production equipment to establish a West Coast manufacturing and distribution facility in Carson, Calif. In fiscal 1984, Classic began the waterbed industry's first national advertising program.
In the second period of fiscal 1985, Classic posted the highest quarterly sales in its history, up 24 percent to $10.2 million from $8.2 million during the year-earlier period. Second-quarter profits rose 9 percent to $329,000 (17 cents a share), from $302,000 (16 cents) during the second fiscal 1984 quarter. 53: QUESTECH INC. QuesTech Building 6858 Old Dominion Dr. McLean, Va. 22101
REVENUE: $33.0 million PROFITS: $1.1 million EARNINGS PER SHARE: 79 cents DIVIDEND: None ASSETS: $19.5 million STOCKHOLDERS' EQUITY: $6.3 million RETURN ON EQUITY: 24.1 percent EXCHANGE: OTC EMPLOYES: 592 TOP EXECUTIVE: Herbert W. Klotz, chairman and president FOUNDED: 1968
DESCRIPTION: QuesTech is a diversified high-technology holding company with four subsidiaries specializing in electronic warfare technology, intelligence systems, aerospace industrial modernization, materials research, aeronautical analysis, and wind tunnel models. The Department of Defense is QuesTech's major client.
DEVELOPMENTS: QuesTech reported a 21 percent jump in revenue and a 9 percent increase in profits for the fiscal year ended Dec. 31. The company attributed the growth to a substantial increase in its customer base and additional contracts from existing customers. 54: COMPUTER BUSINESS SUPPLIES INC. 6000 Executive Blvd. Rockville, Md. 20852
REVENUE: $32.8 million LOSS: $303,000 LOSS PER SHARE: 34 cents DIVIDEND: None ASSETS: $11.5 million STOCKHOLDERS' EQUITY: ($412,000) RETURN ON EQUITY: NA EXCHANGE: OTC EMPLOYES: 150 TOP EXECUTIVE: John W. Nucci, president and chairman FOUNDED: 1969
DESCRIPTION: Computer Business Supplies is a marketing firm representing business-forms manufacturers that either have no direct sales force or market a portion of their products through dealers. Craftsman Press, an offset printing company, is its wholly owned subsidiary.
DEVELOPMENTS: The Securities and Exchange Commission requested that Computer Business Supplies restate its financial figures for 1983 after noting that the company had not been using generally accepted accounting principles. Consequently, the company's previously reported profit of $213,000 for the fiscal year ended Aug. 29, 1983, was restated as a $1.1 million loss.
Compared with the revised 1983 figures, the company posted an 18 percent rise in revenue and a 74 percent reduction in losses for the fiscal year ended last August. Computer Business Supplies attributed the improvement to its subsidiary, Craftsman Press, which it reports is doing very well.
For the first quarter ended Nov. 25, the company reported profits of $238,000 (25 cents per share), compared with a $309,000 profit (35 cents) for the same quarter of fiscal 1984. 55: ERC INTERNATIONAL 2070 Chain Bridge Rd. Vienna, Va. 22180
REVENUE: $32.3 million PROFITS: $1.2 million EARNINGS PER SHARE: 39 cents DIVIDEND: None ASSETS: $17.2 million STOCKHOLDERS' EQUITY: $11.6 million RETURN ON EQUITY: 11 percent EXCHANGE: Amex EMPLOYES: 650 TOP EXECUTIVE: Jack E. Aalseth, chairman, president and chief executive officer FOUNDED: 1976
DESCRIPTION: Formerly known as Evaluation Research Corp., ERC International -- "domiciled" in Delaware -- was formed this year as a holding company for Evaluation Research's six operating subsidiaries. The company's operations, which are based in Virginia, provide professional and technical services in engineering, logistics, computer science, and energy and environmental analysis. Much of its commercial business consists of helping private companies solicit and carry out U.S. government contracts.
DEVELOPMENTS: ERC boosted revenue by 12 percent in the fiscal year ended Dec. 31 and increased profits by 8 percent. The rise was attributed to internal growth rather than to major developments. No acquisitions were completed during 1984.
All outstanding common stock of Evaluation Research Corp. was converted to common stock of ERC International this Feb. 1, completing a reorganization that was approved last May. ERC Chairman Jack Aalseth said the holding company was established in Delaware to help thwart takeover attempts. Virginia law requires a two-thirds vote of all shares to adopt antitakeover devices, such as two classes of stock; Delaware law, however, requires only majority approval.
In 1984, ERC added new technical capabilities and entered several new business areas, including computer-aided design and drafting, and quality audits that lead to certification of nuclear power plants. The company also reported new clients in the Department of Justice, the National Aeronautics and Space Administration, the Department of Defense and private industry.
This March, ERC announced it would acquire International Energy Associates Ltd. (IEAL), an international energy consulting company based in Washington. Under the merger agreement, ERC would exchange 650,000 shares of its common stock for all of the outstanding stock of IEAL. ERC expects the acquisition to be completed about June 1.
For the first quarter ended March 31, ERC profits declined 47 percent from the year-earlier period, despite a 28 percent gain in revenue. The company blamed continued costs of product development.