#56. CERBERONICS INC.

5600 Columbia Pike Bailey's Crossroads, Va. 22041 REVENUE: $36 million PROFITS: $1.5 million EARNINGS PER SHARE: $1 DIVIDEND: 12 cents ASSETS: $21.5 million STOCKHOLDERS' EQUITY: $11.9 million RETURN ON EQUITY: 13.8 percent EXCHANGE: OTC EMPLOYES: 210 TOP EXECUTIVE: Robert W. Erikson, president. FOUNDED: 1969

DESCRIPTION: Cerberonics specializes in engineering, analytical and technical-support services, principally to the Department of Defense. The company's Logistic Division provides a wide range of weapons-support services, the Metrology Division develops measurement and calibration systems to monitor the performance of weapons, and the Advanced Technology Department is engaged in a variety of research, analysis and engineering programs.

DEVELOPMENTS: Despite record earnings in the fiscal year ended Dec. 31, when profits rose 11 percent, management views 1985 as a mix of good and bad. The company was the unsuccessful bidder on two major Defense Department contracts that expired in the third quarter of last year. The two contracts -- the Navy's C-9 and TC-4C aircraft material-support contracts -- together provided revenue last year of $23.3 million, or 68 percent of total corporate revenue.

Responding to the loss of this major source of revenue, Cerberonics initiated a cost-cutting program that included reductions in staff and has intensified development of the ARAPAHO program by the Department of Defense. The program involves prefabricated container systems that "strap on" supply ships and merchant vessels to enable helicopter operations and maintenance.

Cerberonics also has diversified its business base to generate revenue in the coming year by taking a 33 percent interest in Insituform East Inc., a publicly traded Landover, Md., firm that is the regional licensee for an innovative process for pipeline rehabilitation.

For the first six months of the current fiscal year, Cerberonics reported revenue of $5.8 million and net earnings of $328,000 (23 cents a share). For the same period last year, the company reported revenue of $18.8 million and net income of $884,000 (59 cents). #57. FEDERAL REALTY INVESTMENT TRUST

5454 Wisconsin Ave. Chevy Chase, Md. 20815 REVENUE: $34.2 million PROFITS: $9.9 million EARNINGS PER SHARE: 87 cents DIVIDEND: 98 cents ASSETS: $200.1 million STOCKHOLDERS' EQUITY: $72.4 million RETURN ON EQUITY: 13.6 percent EXCHANGE: NYSE EMPLOYES: 17 TOP EXECUTIVE: Steven J. Guttman, president and chief executive officer. FOUNDED: 1962

DESCRIPTION: Federal Realty Investment Trust is an equity real estate investment firm that concentrates on upgrading older shopping centers in prime locations. It owns properties in Virginia, Maryland, Pennsylvania, North Carolina, Illinois, Louisiana, New Jersey and Michigan.

DEVELOPMENTS: Federal Realty reported a 26 percent increase in operating revenue in the fiscal year ended Dec. 31. Net income from operations last year was up 16 percent from the previous year. Reinvesting proceeds from the sale of properties in 1984, Federal Realty acquired two major shopping centers near Baltimore, Governor Plaza in Glen Burnie and Perring Plaza in Towson.

The trust also has completed plans for the reconfiguration and renovation of the Willow Grove Shopping Center, a major center near Philadelphia, and two shopping centers in Northern Virginia, Falls Plaza and Westfalls Center, both in Falls Church.

In July 1985, the trust terminated its management agreement with ISM Associates Inc. and appointed a new leasing and management agent, Federal Realty Management Inc. #58. RADIATION SYSTEMS INC.

1501 Moran Rd. Sterling, Va. 22170 REVENUE: $34.2 million PROFITS: $3.2 million EARNINGS PER SHARE: 70 cents DIVIDEND: None ASSETS: $46.2 million STOCKHOLDERS' EQUITY: $30.4 million RETURN ON EQUITY: 11 percent EXCHANGE: OTC EMPLOYES: 413 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: Radiation Systems' sales for its fiscal year ended June 30, 1985, rose 11 percent to $33.5 million from $30 million in fiscal 1984. But profits fell 30 percent to $3.2 million (70 cents a share) from $4.5 million ($1.00).

In the first six months of its 1986 fiscal year, ended Dec. 31, sales moved up 17 percent to $18.2 million from $15.5 million during the same period a year earlier. However, profits declined to $1.8 million (40 cents) from $1.9 million (44 cents).

In its fiscal 1985 report, Radiation Systems said it was unable to achieve its sales objectives because of "the depressed state of the domestic satellite antenna market and the slowdown encountered in the receipt of several important contracts."

Radiation Systems recently announced a $3 million to $4 million contract with Sperry Corp. to develop antennas for the North Warning System. If test models are successful, a production run would be awarded in about two years.

The company completed a secondary stock offering, selling 939,000 shares for $13.3 million, before commissions. The funds will be used to expand the firm's facilities.

Radiation Systems, meanwhile, acquired Laux Communications Inc. of Cincinnati, a manufacturer of home satellite dishes. The acquisition broadens Radiation Systems' product line, helping guard against periodic lapses in some of its other markets. #59. WILLIAMS INDUSTRIES INC.

2849 Meadow View Rd. Falls Church, Va. 22042 REVENUE: $31.1 million PROFITS: $611,466 EARNINGS PER SHARE: 38 cents DIVIDEND: None ASSETS: $26.3 million STOCKHOLDERS' EQUITY: $7.5 million RETURN ON EQUITY: 8.1 percent EXCHANGE: OTC EMPLOYES: 750 TOP EXECUTIVE: Frank E. Williams Jr., chairman and president. FOUNDED: 1970

DESCRIPTION: Williams Industries is a construction company that specializes in heavy industrial and commercial construction. It also manufactures metal products, leases and sells construction equipment and owns substantial amounts of industrial property.

DEVELOPMENTS: On the basis of strong results in 1984, company officials put in place last year a five-year plan to boost revenue to $100 million annually by 1990. Toward that objective, the company nearly doubled revenue in the fiscal year ended July 31, 1985, and started the current fiscal year with revenue of $21.6 million in the first six months. Earnings in the first half were $502,008 (28 cents a share).

Williams recently was awarded a $6.85 million government contract -- the largest single contract in the firm's history -- to dismantle and replace 18 shipyard cranes at the Navy's shipbuilding facility in Norfolk. Under the same contract, the company also will install new construction cranes at naval shipyards in Philadelphia and Charleston and Kings Point, S.C.

The company also announced early this year that it had acquired the Greenway Corp. near Baltimore, a construction equipment rental and rigging firm. Williams continues to provide management for Concrete Structures Co. of Richmond, a firm operating under Chapter 11 of the bankruptcy code. Williams has the option to acquire the firm when creditors are satisfied and the operation turns profitable. Company officials said the Richmond firm could emerge soon from court restrictions and add as much as $12 million a year to Williams' operating revenue. #60. HALIFAX ENGINEERING INC.

5250 Cherokee Ave. Alexandria, Va. 22312 REVENUE: $28.4 million LOSS: $643,185 LOSS PER SHARE: 54 cents DIVIDEND: 4 cents ASSETS: $12.7 million STOCKHOLDERS' EQUITY: $5.2 million RETURN ON EQUITY: NA EXCHANGE: Amex EMPLOYES: 837 TOP EXECUTIVES: Arch C. Scurlock, chairman; Howard C. Mills, president and chief executive officer. FOUNDED: 1967

DESCRIPTION: Halifax provides technical, engineering and support services, primarily to the U.S. government.

DEVELOPMENTS: After reporting a loss for the fiscal year ended March 31, 1985, Halifax returned to a profitable track for the first nine months of the current fiscal year, with net earnings of $332,000 for the three quarters ended Dec. 31. The company's off year in fiscal 1985 is attributed to the shutdown of its Marine Engineering and Design Division in Norfolk and the expiration of certain government contracts. The company also closed down a small boat yard facility in Suffolk, Va., and disposed of boat-yard property.

Through the first three quarters of the current year, the company reported revenue of $20.9 million, compared with $22.7 million in the same period a year earlier.

Research Industries Inc., a private investment firm based in Alexandria, has increased its holdings of Halifax to 31 percent of the company's outstanding stock. Research Industries officials say they have no plans to take over Halifax and have acquired the company's stock for purposes of "long-term investment." manufactures high-technology antenna products for the military, air traffic and satellite communications markets.

DEVELOPMENTS: Radiation Systems' sales for its fiscal year ended June 30, 1985, rose 11 percent to $33.5 million from $30 million in fiscal 1984. But profits fell 30 percent to $3.2 million (70 cents a share) from $4.5 million ($1.00).

In the first six months of its 1986 fiscal year, ended Dec. 31, sales moved up 17 percent to $18.2 million from $15.5 million during the same period a year earlier. However, profits declined to $1.8 million (40 cents) from $1.9 million (44 cents).

In its fiscal 1985 report, Radiation Systems said it was unable to achieve its sales objectives because of "the depressed state of the domestic satellite antenna market and the slowdown encountered in the receipt of several important contracts."

Radiation Systems recently announced a $3 million to $4 million contract with Sperry Corp. to develop antennas for the North Warning System. If test models are successful, a production run would be awarded in about two years.

The company completed a secondary stock offering, selling 939,000 shares for $13.3 million, before commissions. The funds will be used to expand the firm's facilities.

Radiation Systems, meanwhile, acquired Laux Communications Inc. of Cincinnati, a manufacturer of home satellite dishes. The acquisition broadens Radiation Systems' product line, helping guard against periodic lapses in some of its other markets.