American Science and Engineering, Inc. Reports Results for Third Quarter Fiscal Year 2013 and Declares a Quarterly Dividend

American Science and Engineering, Inc. Reports Results for Third Quarter
Fiscal Year 2013 and Declares a Quarterly Dividend

  *Year to Date Bookings Up 9% From Same Period Last Year
  *Backlog Up 5% From Same Period Last Year
  *Q3 FY13 Earnings Per Share of $0.73

BILLERICA, Mass., Feb. 11, 2013 (GLOBE NEWSWIRE) --American Science and
Engineering, Inc. (Nasdaq:ASEI) ("AS&E"), a leading worldwide supplier of
innovative X-ray detection solutions, today reports its financial results for
the third quarter of fiscal year 2013 ended December 31, 2012. The Company is
reporting revenues of $50,803,000 as compared with revenues of $57,907,000 for
the third quarter of fiscal year 2012, net income of $6,093,000 as compared
with net income of $7,535,000 for the third quarter of fiscal year 2012, and
earnings per share of $0.73 as compared with earnings per share of $0.84 for
the third quarter of fiscal year 2012.

For the first nine months of fiscal year 2013 ended December 31, 2012, the
Company reported revenues of $144,400,000 compared with revenues of
$163,788,000 for the same period in the prior fiscal year, net income of
$16,694,000 compared with net income of $20,079,000 for the same period in the
prior fiscal year, and earnings per share of $1.95 compared with earnings per
share of $2.18 for the prior fiscal year.

The Company is reporting $48,243,000 in bookings for the third quarter of
fiscal year 2013 as compared with $55,813,000 in bookings for the third
quarter of the prior fiscal year. For the first nine months of fiscal year
2013 the Company reported bookings of $171,539,000 as compared with bookings
of $157,617,000 for the same period of the prior fiscal year. Backlog at
December 31, 2012 was $219,710,000 as compared with $209,057,000 at December
31, 2011.

"Global economic uncertainties continue to impact spending in our sector –
affecting us and our competitors with lower business volumes for products,"
commented Anthony Fabiano, AS&E's President and Chief Executive Officer. 
"During fiscal 2013, in light of these uncertainties, we initiated a number of
cost-saving measures realigning our organization structures, streamlining
business processes, and scrutinizing our operating expenses and were
successful in reducing overall costs. As we prepare for fiscal 2014, we will
be implementing further cost-cutting measures, including a reduction in
workforce, focused on right-sizing our organization to address this continuing
uncertain demand."

Fabiano continued, "Orders in the quarter included a strategic prime contract
award to secure the new megaport of Khalifa, Abu Dhabi.AS&E was selected by
Abu Dhabi as the security systems integrator to deliver an integrated
detection solution for multiple export and import security lanes.This is the
second award from our key customer for the new port to create a best-in-class
security solution.Additionally, we are honored to have been awarded 'Best
Explosives Detection Solution' for our ZBV by the 2012 GSN Homeland Security
News magazine at the 2012 Homeland Security Awards.It is always gratifying
when our proprietary technologies and innovative products are recognized for
their effectiveness in meeting constantly evolving security needs worldwide.
We believe that there continues to be a high demand for our proprietary
technology.We are also encouraged by the potentially strong demand for
explosives detection in hostile sectors of the Middle East and Africa."

Continuing with its dividend program started in August 2007, the Company is
declaring a quarterly cash dividend of $0.50 per share, payable on March 4,
2013 to the holders of record at the close of business on February 18, 2013.

As previously announced, Anthony Fabiano, AS&E's President and Chief Executive
Officer, and Ken Galaznik, AS&E's Senior Vice President, Chief Financial
Officer and Treasurer, will host the conference call on Monday, February 11,
2013 at 4:30 p.m. ET to discuss the results and respond to questions. To
participate in the conference call, please dial 1-877-303-9143 at least 10
minutes prior to its starting time. For international participants, dial
1-760-536-5194. The conference identification number is 91245345.You will be
placed on hold until the conference call is ready to begin.The live audio
webcast can be accessed through the investor relations section of the
Company's website at http://ir.as-e.com/eventdetail.cfm?eventid=120623.

An audio replay of the teleconference will be available, in its entirety,
starting Monday, February 11, 2013 at 7:30 p.m. ET for a 48-hour period by
dialing 1-855-859-2056. Internationally, please dial 1-404-537-3406. The
conference identification number is 91245345. The replay will also be
available through the Company's website at http://ir.as-e.com/events.cfm.

About AS&E

American Science and Engineering, Inc. (AS&E) is a leading worldwide supplier
of innovative X-ray inspection systems. With over 50 years of experience in
developing advanced X-ray security systems, the Company's product line
utilizes a combination of technologies, including patented Z Backscatter^™
technology, Radioactive Threat Detection (RTD), high energy transmission and
dual energy transmission X-ray. These technologies offer superior X-ray threat
detection for plastic explosives, plastic weapons, liquid explosives, dirty
bombs and nuclear devices. AS&E's complete range of products include cargo
inspection systems for port and border security, baggage screening systems for
facility and aviation security, and personnel and passenger screening systems.
AS&E^® systems protect high-threat facilities and help combat terrorism, trade
fraud, drug smuggling, weapon smuggling, illegal immigration, and people
smuggling. AS&E customers include leading government agencies, border
authorities, military bases, airports and corporations worldwide, including
the U.S. Department of Homeland Security (DHS), U.S. Department of Defense
(DoD), U.S. Customs and Border Protection (CBP), North Atlantic Treaty
Organization (NATO),Abu Dhabi Customs, and Saudi Arabia Customs. For more
information on AS&E products and technologies, please visit www.as-e.com.

The American Science and Engineering, Inc. logo is available
athttp://www.globenewswire.com/newsroom/prs/?pkgid=12556

Safe Harbor Statement: The foregoing press release contains statements
concerning AS&E's financial performance, markets and business operations that
may be considered "forward-looking" under applicable securities laws. AS&E
wishes to caution readers of this press release that actual results might
differ materially from those projected in any forward-looking statements.
Factors which might cause actual results to differ materially from those
projected in the forward-looking statements contained herein include the
following: significant reductions, delays or cancellations (in full or in
part) in procurements of the Company's systems by the United States and other
governments; disruption in the supply of any source component incorporated
into AS&E's products; litigation seeking to restrict the use of intellectual
property used by the Company; limitations under certain laws on the Company's
ability to protect its own intellectual property; potential product liability
claims against the Company; global political trends and events which affect
public perception of the threat presented by drugs, explosives and other
contraband; global economic developments and the ability of governments and
private organizations to fund purchases of the Company's products to address
such threats; the potential insufficiency of Company resources, including
human resources, capital, plant and equipment and management systems, to
accommodate any future growth; technical problems and other delays that could
impact new product development and the Company's ability to adapt to changes
in technology and customer requirements; competitive pressures; lengthy sales
cycles both in United States government procurement and procurement abroad;
future delays in federal funding, the market price of the company's stock
prevailing from time to time, the nature of other investment opportunities
presented to the company from time to time, the company's cash flows from
operations and market and general economic conditions. These and certain other
factors which might cause actual results to differ materially from those
projected are detailed from time to time in AS&E's periodic reports and
registration statements filed with the Securities and Exchange Commission,
which important factors are incorporated herein by reference. AS&E undertakes
no obligation to update forward looking statements to reflect changed
assumptions, the occurrence of unanticipated events, or changes in future
operating results, financial condition or business over time. Readers are
further advised to review the "Risk Factors" set forth in the Company's most
recent Form 10-Q and Form 10-K, which further detail and supplement the
factors described in this Safe Harbor Statement. Among other disclosures, the
Risk Factors disclose risks pertaining to that portion of the Company's
business that is dependent on United States government contracting as well as
international customers.

AMERICAN SCIENCE AND ENGINEERING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
                                                             
                      Quarter Ended               Fiscal Year Ended
                      December 31,  December 31,  December 31,  December 31,
                       2012          2011          2012          2011
Total net sales and    $50,803     $57,907     $144,400    $163,788
contract revenues
                                                             
Total cost of sales    28,103        31,462        79,230        88,320
and contracts
Gross profit           22,700        26,445        65,170        75,468
                                                             
Expenses:                                                     
Selling, general and
administrative         8,280         9,091         21,173        26,728
expenses
Research and           5,242         6,113         18,862        18,727
development costs
Total operating        13,522        15,204        40,035        45,455
expenses
                                                             
Operating income       9,178         11,241        25,135        30,013
Interest and other,    54            176           159           410
net
Income before
provision for income   9,232         11,417        25,294        30,423
taxes
Provision for income   3,139         3,882         8,600         10,344
taxes
                                                             
Net income            $6,093      $7,535      $16,694     $20,079
                                                             
Income per share -     $0.74       $0.84       $1.97       $2.21
Basic
Income per share -     $0.73       $0.84       $1.95       $2.18
Diluted
                                                             
Weighted average       8,247         8,924         8,488         9,088
shares - Basic
Weighted average       8,307         9,009         8,542         9,193
shares - Diluted
                                                             
The results of operations reported herein may not be indicative of future
financial conditions or results of future operations.



AMERICAN SCIENCE AND ENGINEERING, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
                                                              
                                             December 31, 2012 March 31, 2012
Assets                                                         
Current assets:                                                
Cash and cash equivalents                     $34,149           $24,369
Restricted cash and investments               16,183            11,707
Short-term investments, at fair value         117,865           170,834
Accounts receivable, net                      40,152            25,439
Unbilled costs and fees                       4,065             3,206
Inventories, net                              44,417            48,179
Other current assets                          10,639            13,715
Total current assets                          267,470           297,449
                                                              
Non-current assets:                                            
Building, equipment and leasehold             16,736            17,998
improvements, net
Restricted cash and investments               1,091             4,183
Other assets                                  7,475             5,235
Total assets                                  $292,772          $324,865
                                                              
Liabilities & Stockholders' Equity                             
Current liabilities:                                           
Accounts payable                              $6,569            $7,461
Customer deposits                             24,611            15,031
Deferred revenue                              15,296            16,731
Other current liabilities                     20,026            19,420
Total current liabilities                     66,502            58,643
                                                              
Non-current liabilities:                                       
Lease financing liability                     3,288             4,403
Other non-current liabilities                 4,618             3,013
Total liabilities                             74,408            66,059
                                                              
Stockholders' equity                          218,364           258,806
Total liabilities and stockholders' equity    $292,772          $324,865



AMERICAN SCIENCE AND ENGINEERING, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                                                
                                                    For the Nine Months Ended
                                                    December 31, December 31,
                                                     2012         2011
Cash flows from operating activities:                            
Net income                                           $16,694    $20,079
Adjustments to reconcile net income to net cash
provided by                                                      
operating activities:
Depreciation and amortization                        3,821        4,293
Provisions for contracts, inventory and accounts     3,503        2,746
receivable reserves
Amortization of bond premium                         2,151        1,895
Deferred income taxes                                152         1,559
Other                                                (59)        (24)
Stock compensation (credit) expense                  (85)         1,459
                                                                
Changes in assets and liabilities:                               
Accounts receivable                                  (14,907)     10,117
Unbilled costs and fees                              (859)        13,497
Inventories                                          453          (1,663)
Prepaid expenses and other assets                    684          (2,212)
Accounts payable                                     (892)        (803)
Accrued income taxes                                 879         (52)
Customer deposits                                    9,580        8,208
Deferred revenue                                     81           (1,922)
Accrued expenses and other liabilities               (296)        (5,687)
Net cash provided by operating activities            20,900       51,490
                                                                
Cash flows from investing activities:                            
Purchases of short-term investments                  (99,719)     (217,785)
Proceeds from sales and maturities of short-term     150,514      151,937
investments
Purchases of property and equipment, net             (2,500)      (3,751)
Net cash provided by (used for) investing activities 48,295       (69,599)
                                                                
Cash flows from financing activities:                            
(Increase) decrease in restricted cash and           (1,384)      15,830
investments
Proceeds from exercise of stock options              1,079        2,835
Repurchase of shares of common stock                 (45,347)    (20,050)
Repayment of leasehold financing liability           (1,003)      (990)
Payment of common stock dividend                     (12,760)     (9,964)
Reduction of income taxes paid due to the tax        --         (201)
benefit from employee stock option expense
Net cash used for financing activities               (59,415)     (12,540)
                                                                
Net increase (decrease) in cash and cash equivalents 9,780        (30,649)
Cash and cash equivalents at beginning of period     24,369       60,144
Cash and cash equivalents at end of period           $34,149    $29,495

CONTACT: Investor Relations Contact:
         Annemarie Sadowski
         American Science and Engineering, Inc.
         asadowski@as-e.com
         1-978-262-8828

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