#61. SURVIVAL TECHNOLOGY INC.
101 Glenbrook Rd. Bethesda, Md. 20814 REVENUE: $26.8 million LOSS: $908,400 LOSS PER SHARE: 34 cents DIVIDEND: None ASSETS: $20.5 million STOCKHOLDERS' EQUITY: $6.2 million RETURN ON EQUITY: NA EXCHANGE: OTC EMPLOYES: 350 TOP EXECUTIVE: Stanley J. Sarnoff, chairman and president. FOUNDED: 1969
DESCRIPTION: Survival Technology designs and manufactures medical devices, including antichemical-warfare equipment for the Department of Defense and emergency gear used in ambulances by rescue squads.
DEVELOPMENTS: Survival Tech's net loss deepened in the fiscal year ended July 31, with losses 18 percent greater than in the previous fiscal year. Revenue in fiscal 1985 was up 10 percent.
Company officials attribute the earnings drop to delay in government decision making and the awarding of contracts in the fall of 1984. A management decision to dispose of Holter Monitoring Services, a Houston subsidiary, resulted in a $400,000 asset write-off and further depressed profits last year.
Improved results in the first half of the current fiscal year have established the foundation for a profitable year, officials say. #62. GRAY AND CO. PUBLIC COMMUNICATIONS INTERNATIONAL INC.
3255 Grace St. NW Washington, D.C. 20007 REVENUE: $25.9 million PROFITS: $856,458 EARNINGS PER SHARE: 34 cents DIVIDEND: None ASSETS: $12.9 million STOCKHOLDERS' EQUITY: $7.1 million RETURN ON EQUITY: 12.1 percent EXCHANGE: OTC EMPLOYES: 186 TOP EXECUTIVES: Robert Keith Gray, chairman; Daniel J. Murphy, vice chairman. FOUNDED: 1981
DESCRIPTION: Gray and Co. is the only publicly held public relations and lobbying firm in the country, and says it is one of the largest independent public relations companies in the world. It has locations in Washington, New York, Dallas, Miami, Boston and Santa Clara, Calif., and does public relations and lobbying for individuals, companies and foreign countries.
Gray's star-studded list of executives includes Murphy, who is former chief of staff to Vice President Bush, former Federal Communications Commissioner general counsel Bruce E. Fein, former aide to House Speaker Thomas P. O'Neill (D-Mass.) Gary Hymel and former assistant Commerce secretary Lawrence J. Brady.
DEVELOPMENTS: Early this year, the company announced it was acquiring Tromson Monroe Advertising/Public Relations, which specializes in working for the travel industry and has offices in New York and Miami. The purchase, for an undisclosed price, added 22 employes and $1.5 million in yearly revenue to Gray's coffers. It is the second recent acquisition for Gray and Co., which in 1984 acquired the Strayton Corp., a public relations firm specializing in the high-technology area.
Profits declined during the 12 months ended Nov. 30, 1985, from the same period the year before, due mostly to payments and legal fees related to questionable payments to a Spanish legislator. Those costs totaled $650,000, all of which fell during the year from which the figures are drawn. During the nine months from Feb. 28 to Nov. 30, 1985, a period after those expenses were made, net income was up 35 percent compared with the same period the year before.
The company discussed being bought out by the advertising and public relations firm Ogilvy & Mather last summer. Those discussions have ended, but the company considers itself an attractive purchase and has not ruled out selling itself.
The Justice Department and the Securities and Exchange Commission apparently are continuing to investigate whether Gray and Co. violated federal securities and foreign-bribery laws by the alleged Spanish payment and by issuing broadcast press releases for the kingdom of Morocco. A spokesman said the firm has not been informed the investigation is closed, although no information has been requested from the company recently. #63. HADRON INC.
9990 Lee Hwy. Fairfax, Va. 22030 REVENUE: $25.7 million LOSS: $231,273 LOSS PER SHARE: 2 cents DIVIDEND: None ASSETS: $12.7 million STOCKHOLDERS' EQUITY: $1.6 million RETURN ON EQUITY: NA EXCHANGE: OTC EMPLOYES: 532 TOP EXECUTIVE: Dominic A. Laiti, president and chairman of the board. FOUNDED: 1964
DESCRIPTION: Hadron is a professional services and telecommunications company offering computer and telecommunications services, software packages, training and engineering services to government and commercial clients.
DEVELOPMENTS: Hadron management is encouraged by recent corporate developments despite the loss reported for the fiscal year ended March 31, 1985. For the first nine months of the current fiscal year, through Dec. 31, the company reported a net profit of $702,273 on revenue of $16.8 million. For the similar period a year earlier, Hadron had a net loss of $596,943 on revenue of $19.8 million.
Company executives say the firm is starting to recover from discontinued operations in the Middle East and the adverse effects of uneven revenue as the result of expiring client contracts in 1984 and 1985.
Late in 1983, the company took a $3 million charge, to be written off over several years, as it phased out development of a new laser device. One reason results in the current year have improved so sharply is that the company no longer is taking a $300,000 annual write-off for the discontinued product.
The company also reports stronger revenue from services related to automated litigation support. The services apply computer technologies to assist lawyers with research, fact finding, correlation of testimony and other work required for complex court cases.
Hadron started its new fiscal year on March 31 with a backlog of business exceeding $35 million. #64. MICROS SYSTEMS INC.
12000 Baltimore Ave. Beltsville, Md. 20705 REVENUE: $25.4 million PROFITS: $1.1 million EARNINGS PER SHARE: 22 cents DIVIDEND: None ASSETS: $14.8 million STOCKHOLDERS' EQUITY: $6.2 million RETURN ON EQUITY: 17 percent EXCHANGE: OTC EMPLOYES: 285 TOP EXECUTIVE: Louis M. Brown Jr., president and chief executive officer. FOUNDED: 1977
DESCRIPTION: Micros Systems designs, manufactures and markets electronic terminals for cash registers and data processing. Its products are marketed to hotel and lodging properties, restaurants, service stations and convenience stores.
DEVELOPMENTS: For the first six months of its current fiscal year, ended Dec. 31, Micros Systems reported a loss of $589,200, compared with a gain of $131,200 for the same period a year earlier. Revenue for the most recent half-year reporting period was $11.3 million, compared with $12.6 million for the same period in the prior year.
Micros Systems management attributes the sharp downturn to a restructuring of its marketing system, price increases, and changes in the terms of sale for its products and services.
To regain momentum in the market, the company recently named a new president and chief executive officer, lowered prices, eased credit terms for its clients and reestablished a commission system of compensation for sales personnel. The moves are aimed at putting the company in break-even posture by the end of its fiscal year in June. #65. ESSEX CORP.
333 N. Fairfax St. Alexandria, Va. 22314 REVENUE: $24.8 million LOSS: $586,087 LOSS PER SHARE: 47 cents DIVIDEND: None ASSETS: $13.4 million STOCKHOLDERS' EQUITY: $4 million RETURN ON EQUITY: NA EXCHANGE: OTC EMPLOYES: 463 TOP EXECUTIVES: Frank E. Manning, chairman and chief executive officer; F. Eugene Purcell, president and chief operating officer. FOUNDED: 1969
DESCRIPTION: Essex Corp., with 20 facilities in 13 states, designs systems that cut down on human error in machine operations. The company derives the bulk of its annual revenue from government contracts, both foreign and domestic.
DEVELOPMENTS: Essex Corp. went from profit to loss in the fiscal year ended Dec. 31, 1986, despite a 13 percent increase in revenue. The company posted net income of $372,224 in fiscal 1984 against last year's losses of more than $586,000. The downturn was attributed to unsuccessful attempts to diversify its operations and client base to generate more nongovernment revenue. Substantial losses were incurred by a personnnel placement subsidiary, Essex Human Resources, which terminated operations on March 31. Despite the disappointments, management remains committed to a plan for diversification, company officials say.
The company opened a new facility last year near the Marshall Space Flight Center in Huntsville, Ala., specifically to service contracts related to the space shuttle program of the National Aeronautics and Space Administration. Delays in that program, as a result of the loss this year of one of three shuttle spacecraft, are not expected to hurt the company.