SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
----------------------------------------------------
FORM 10-Q
(mark one)
[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the Quarter Ended April 3, 1999
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Commission File Number 1-12745
THERMEDICS DETECTION INC.
(Exact name of Registrant as specified in its charter)
Massachusetts 04-3106698
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
220 Mill Road
Chelmsford, Massachusetts 01824-4178
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (781) 622-1000
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [ X ] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the latest practicable date.
Class Outstanding at April 30, 1999
Common Stock, $.10 par value 13,355,459 Actual
19,316,684 Pro Forma
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PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
THERMEDICS DETECTION INC.
Consolidated Balance Sheet
(Unaudited)
Assets
April 3, January 2,
(In thousands) 1999 1999
- ----------------------------------------------------------------------------------- ----------- ----------
Current Assets:
<S> <C> <C>
Cash and cash equivalents (includes $25,993 and $24,682 under $ 36,006 $32,906
repurchase agreement with affiliated company)
Accounts receivable, less allowances of $1,332 and $1,149 16,110 15,949
Unbilled contract costs and fees 1,395 1,705
Inventories:
Raw materials and supplies 9,865 9,763
Work in process 1,132 1,362
Finished goods 5,352 6,042
Prepaid and refundable income taxes 2,899 2,884
Prepaid expenses 1,176 1,496
-------- --------
73,935 72,107
-------- --------
Property, Plant, and Equipment, at Cost 12,472 12,505
Less: Accumulated depreciation and amortization 7,648 7,567
-------- --------
4,824 4,938
-------- --------
Other Assets 779 804
-------- --------
Cost in Excess of Net Assets of Acquired Companies 53,920 54,657
-------- --------
$133,458 $132,506
======== ========
2
<PAGE>
THERMEDICS DETECTION INC.
Consolidated Balance Sheet (continued)
(Unaudited)
Liabilities and Shareholders' Investment
April 3, January 2,
(In thousands except share amounts) 1999 1999
- ----------------------------------------------------------------------------------- ----------- ----------
Current Liabilities:
Accounts payable $ 3,071 $ 3,719
Accrued payroll and employee benefits 2,855 3,412
Accrued installation and warranty expenses 1,063 1,075
Deferred revenue 1,248 972
Accrued income taxes 1,001 -
Accrued commissions 757 787
Other accrued expenses 3,910 4,185
Due to parent company and affiliated companies 383 336
-------- --------
14,288 14,486
-------- --------
Long-term Obligation 127 127
-------- --------
Shareholders' Investment:
Common stock, $.10 par value, 50,000,000 shares authorized; 19,316,684 1,932 1,932
pro forma shares issued and outstanding
Capital in excess of par value 95,022 95,022
Retained earnings 23,709 21,877
Accumulated other comprehensive items (Note 2) (1,620) (938)
-------- --------
119,043 117,893
-------- --------
$133,458 $132,506
======== ========
The accompanying notes are an integral part of these consolidated financial
statements.
3
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THERMEDICS DETECTION INC.
Consolidated Statement of Income
(Unaudited)
Three Months Ended
April 3, April 4,
(In thousands except per share amounts) 1999 1998
- ----------------------------------------------------------------------------------- ----------- ----------
Revenues:
Product revenues $16,474 $19,451
Service revenues 3,938 4,256
------- -------
20,412 23,707
------- -------
Costs and Operating Expenses:
Cost of product revenues 6,112 9,010
Cost of service revenues 2,483 1,989
Selling, general, and administrative expenses 6,703 6,952
Research and development expenses 2,446 2,687
------- ------
17,744 20,638
------- -------
Operating Income 2,668 3,069
Interest Income 357 591
Interest Expense, Related Party - (303)
Other Income (Expense), Net (21) 4
------- ------
Income Before Provision for Income Taxes 3,004 3,361
Provision for Income Taxes 1,172 1,311
------- ------
Net Income $ 1,832 $2,050
======= ======
Basic and Diluted Earnings per Share (Note 3) $ .09 $ .11
======= ======
Weighted Average Shares (Note 3):
Basic 19,317 19,317
======= ======
Diluted 19,338 19,326
======= ======
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE>
THERMEDICS DETECTION INC.
Consolidated Statement of Cash Flows
(Unaudited)
Three Months Ended
April 3, April 4,
(In thousands) 1999 1998
- ----------------------------------------------------------------------------------- ----------- ----------
Operating Activities:
Net income $ 1,832 $ 2,050
Adjustment to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 833 813
Provision for losses on accounts receivable 193 49
Other noncash expenses 375 339
Changes in current accounts:
Accounts receivable (493) 2,347
Unbilled contract costs and fees 310 (59)
Inventories 483 (1,283)
Other current assets 133 230
Accounts payable (663) 667
Other current liabilities 348 (2,835)
-------- -------
Net cash provided by operating activities 3,351 2,318
-------- -------
Investing Activities:
Purchases of property, plant, and equipment (315) (578)
Proceeds from sale of property, plant, and equipment 13 122
Other (3) (3)
-------- -------
Net cash used in investing activities (305) (459)
-------- -------
Financing Activities:
Payment of promissory note to parent company - (21,200)
Orion transfers from Thermedics - 1,026
-------- -------
Net cash used in financing activities - (20,174)
-------- -------
Exchange Rate Effect on Cash 54 28
-------- -------
Increase (Decrease) in Cash and Cash Equivalents 3,100 (18,287)
Cash and Cash Equivalents at Beginning of Period 32,906 46,352
-------- -------
Cash and Cash Equivalents at End of Period $ 36,006 $28,065
======== =======
The accompanying notes are an integral part of these consolidated financial
statements.
5
<PAGE>
Notes to Consolidated Financial Statements
1. General
The interim consolidated financial statements presented have been prepared
by Thermedics Detection Inc. (the Company) without audit and, in the opinion of
management, reflect all adjustments of a normal recurring nature necessary for a
fair statement of the financial position at April 3, 1999, and the results of
operations and cash flows for the three-month periods ended April 3, 1999, and
April 4, 1998. Interim results are not necessarily indicative of results for a
full year.
The consolidated balance sheet presented as of January 2, 1999, has been
derived from the consolidated financial statements that have been audited by the
Company's independent public accountants. The consolidated financial statements
and notes are presented as permitted by Form 10-Q and do not contain certain
information included in the annual financial statements and notes of the
Company. The consolidated financial statements and notes included herein should
be read in conjunction with the financial statements and notes included in the
Company's Annual Report on Form 10-K for the fiscal year ended January 2, 1999,
filed with the Securities and Exchange Commission.
2. Comprehensive Income
Comprehensive income combines net income and "other comprehensive items,"
which represents foreign currency translation adjustments, reported as a
component of shareholders' investment in the accompanying balance sheet. During
the first quarter of 1999 and 1998, the Company's comprehensive income totaled
$1,150,000 and $1,881,000, respectively.
3. Earnings per Share
Basic and diluted earnings per share were calculated as follows:
Three Months Ended
April 3, April 4,
(In thousands except per share amounts) 1999 1998
- ----------------------------------------------------------------------------------- ----------- ---------
Basic
Net Income $ 1,832 $2,050
------- ------
Weighted Average Shares 13,356 13,356
Shares Issuable in Connection With the Acquisition of Orion Research, Inc. 5,961 5,961
------- ------
Pro Forma Weighted Average Shares 19,317 19,317
------- ------
Basic Earnings per Share $ .09 $ .11
======= ======
Diluted
Net Income $ 1,832 $2,050
------- ------
Pro Forma Basic Weighted Average Shares 19,317 19,317
Effect of Stock Options 21 9
------- ------
Pro Forma Weighted Average Shares 19,338 19,326
------- ------
Diluted Earnings per Share $ .09 $ .11
======= ======
6
<PAGE>
3. Earnings per Share (continued)
The computation of diluted earnings per share excludes the effect of
assuming the exercise of certain outstanding stock options because the effect
would be antidilutive. As of April 3, 1999, there were 1,089,271 of such options
outstanding, with exercise prices ranging from $7.56 to $12.46 per share.
Because the Company and Orion Research, Inc., acquired by the Company from
Thermedics Inc. in April 1998, were deemed for accounting purposes to be under
control of their common majority owner, Thermedics, the acquisition was
accounted for at historical cost in a manner similar to a pooling of interests.
Accordingly, all historical financial information was restated to include the
acquisition of Orion Research. On January 11, 1999, the shareholders of the
Company approved the issuance of the 5,961,225 shares of the Company's common
stock in connection with the acquisition and the shares will be issued to
Thermedics after the listing on the American Stock Exchange of such shares. The
shares have been treated as outstanding for all periods presented for purposes
of computing earnings per share.
4. Business Segment Information
Three Months Ended
April 3, April 4,
(In thousands) 1999 1998
- ----------------------------------------------------------------------------------- ----------- ----------
Revenues:
Detection Instruments $ 7,942 $10,143
Laboratory Products 12,470 13,564
------- -------
$20,412 $23,707
======= =======
Income Before Provision for Income Taxes:
Detection Instruments $ 844 $ 86
Laboratory Products 2,036 3,084
Corporate (a) (212) (101)
------- -------
Total operating income 2,668 3,069
Interest and other income, net 336 292
------- -------
$ 3,004 $3,361
======= =======
(a) Primarily general and administrative expenses.
5. Proposed Reorganization
During 1998, Thermo Electron Corporation announced a proposed
reorganization, involving certain of Thermo Electron's subsidiaries, including
the Company. As part of this reorganization, Thermo Electron announced that
Thermedics' equity interest in the Company may be transferred to Thermo Electron
in exchange for shares of Thermedics common stock. Subsequently, the Company
would be taken private and become a wholly owned subsidiary of Thermo Electron.
Shareholders of the Company would receive cash in exchange for their shares of
the Company's common stock. The completion of these transactions is subject to
numerous conditions, including the establishment of prices and exchange ratios;
confirmation of anticipated tax consequences; the approval of the Board of
Directors of the Company, Thermedics, and Thermo Electron, including the
independent directors of the Company and Thermedics; the negotiation and
execution of definitive agreements; the receipt of fairness opinions from
investment banking firms on certain financial aspects of the transactions; and
clearance by the Securities and Exchange Commission of any necessary documents
regarding the proposed transactions.
7
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Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-looking statements, within the meaning of Section 21E of the
Securities Exchange Act of 1934, are made throughout this Management's
Discussion and Analysis of Financial Condition and Results of Operations. For
this purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements. Without limiting
the foregoing, the words "believes," "anticipates," "plans," "expects," "seeks,"
"estimates," and similar expressions are intended to identify forward-looking
statements. There are a number of important factors that could cause the results
of the Company to differ materially from those indicated by such forward-looking
statements, including those detailed under the heading "Forward-looking
Statements" included in Exhibit 13 to the Company's Annual Report on Form 10-K
for the fiscal year ended January 2, 1999, filed with the Securities and
Exchange Commission.
Overview
The Company is comprised of businesses that operate in two segments:
Detection Instruments and Laboratory Products. The Company's Detection
Instruments segment designs, manufactures, and markets ultratrace chemical
detectors, X-ray imaging, near-infrared spectroscopy, high-speed gas
chromatography, and other technologies for quality assurance of in-process or
finished products, primarily in the food, beverage, pharmaceutical, forest
products, chemical, and other consumer products industries. The Company's
ALEXUS(R) systems detect trace amounts of substances that would affect product
quality in refillable beverage containers. The Company's InScan(R) systems use
high-speed X-ray imaging to determine accurate fill volume, net volume, package
integrity, and other quality measures for a variety of products in cans,
bottles, boxes, and other containers. The Company's Flash-GC(TM) and EZ
Flash(TM) systems are designed to help customers conduct chemical analyses
substantially faster than if they used conventional gas chromatography
equipment. In addition, the Company's near-infrared analyzers measure moisture
and other product constituents, such as fats, proteins, oils, flavorings,
solvents, adhesives, and coatings, in a broad range of products as they move
along manufacturing lines.
The Company's Detection Instruments segment also makes
explosives-detection equipment that uses simultaneous trace particle- and
vapor-detection techniques based on its proprietary chemiluminescence and
high-speed gas chromatography technologies. Customers use these
explosives-detection systems to detect plastic and other explosives at airports
and border crossings, for other high-security screening applications, and for
forensic and search applications. The Company's Detection Instruments segment
also performs contract research and development services for government and
industry customers and earns service revenues through long-term contracts.
The Company's Laboratory Products segment designs, manufactures, and
markets electrochemistry and other technologies for quality assurance and
regulatory compliance, primarily in the environmental, food, beverage, chemical,
pharmaceutical, and biomedical research industries. Through the Company's Orion
Research, Inc. subsidiary, the Laboratory Products segment is a worldwide
leading manufacturer of electrochemistry products that determine the quality of
various substances, from food and pharmaceuticals to water and wastewater, by
measuring their pH, specific ion concentration, dissolved oxygen, and
conductivity.
Results of Operations
First Quarter 1999 Compared With First Quarter 1998
Revenues decreased to $20.4 million in the first quarter of 1999 from
$23.7 million in the first quarter of 1998, primarily due to a decrease in
revenues in the Detection Instruments segment. Revenues in the Detection
Instruments segment decreased to $7.9 million in 1999 from $10.1 million in
1998, due in part to a $1.5 million decline in revenues from EGIS
explosives-detection systems and related services, primarily due to lower
shipments of security systems. During 1998, the Company completed shipments
under a contract to provide security systems to the Federal Aviation
Administration (FAA). Revenues under the contract totaled $1.1 million during
the first quarter of 1998. In addition, revenues from industrial process
instruments declined $0.6 million, primarily due to lower revenues from ALEXUS
and near-infrared analyzers, offset in part by an increase in InScan product
sales and contract revenues.
8
<PAGE>
First Quarter 1999 Compared With First Quarter 1998 (continued)
Revenues from the Laboratory Products segment decreased to $12.5 million
in the first quarter of 1999 from $13.6 million in the first quarter of 1998,
primarily due to lower worldwide demand for titration and electrochemistry
products.
The Company's total backlog decreased to $3.8 million at April 3, 1999,
from $6.1 million at January 2, 1999, primarily due to lower demand.
The gross profit margin increased to 58% in the first quarter of 1999 from
54% in the first quarter of 1998. The increase was due to an increase in gross
profit margin in the Detection Instruments segment due to a shift in sales mix
to higher-margin products, including products introduced after the first quarter
of 1998.
Selling, general, and administrative expenses as a percentage of revenues
increased to 33% in the first quarter of 1999 from 29% in the first quarter of
1998, primarily due to a decrease in revenues at both the Detection Instruments
and Laboratory Products segments. Selling, general, and administrative expenses
decreased to $6.7 million in the first quarter of 1999 from $7.0 million in the
first quarter of 1998, primarily due to a reduction in selling expenses at the
Detection Instruments segment's Moisture Systems subsidiary in an effort to
reduce costs. The combination of higher gross profit margins and lower selling,
general, and administrative expenses resulted in improved profitability in 1999
in the Detection Instruments segment (Note 4).
Research and development expenses decreased to $2.4 million in the first
quarter of 1999 from $2.7 million during the first quarter of 1998, primarily as
a result of efforts to reduce costs and focus on the development of near-term
commercially viable products.
Interest income decreased to $0.4 million in the first quarter of 1999
from $0.6 million in the first quarter of 1998, primarily due to lower average
invested balances as a result of the repayment of the Company's promissory note
to Thermedics in March 1998. Interest expense, related party, of $0.3 million in
the first quarter of 1998 relates to a $21.2 million promissory note to
Thermedics.
The effective tax rate was 39% in the first quarter of 1999 and 1998. The
effective tax rates exceeded the statutory federal income tax rate primarily due
to the impact of state income taxes and nondeductible amortization of cost in
excess of net assets of acquired companies.
Liquidity and Capital Resources
Consolidated working capital was $59.6 million at April 3, 1999, compared
with $57.6 million at January 2, 1999. Included in working capital are cash and
cash equivalents of $36.0 million at April 3, 1999, compared with $32.9 million
at January 2, 1999.
During the first quarter of 1999, $3.4 million of cash was provided by
operating activities. Cash provided by the Company's operations and a $0.5
million decrease in inventories due to lower purchases in response to reduced
demand for Company products was offset in part by $0.7 million of cash used to
reduce accounts payable, primarily due to the timing of payments.
During the first quarter of 1999, the Company's investing activities
included the expenditure of $0.3 million for purchases of property, plant, and
equipment. The Company expects to spend $1.7 million on capital additions in the
remainder of 1999.
9
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Liquidity and Capital Resources (continued)
The Company expects to have positive cash flow from its existing
operations. Although the Company does not presently intend to actively seek to
acquire additional businesses in the near future, it may acquire one or more
complementary businesses if they are presented to the Company on terms the
Company believes to be attractive. Such acquisitions may require significant
amounts of cash. The Company expects that it will finance any such acquisitions
through a combination of internal funds and/or short-term borrowings from Thermo
Electron, although it has no agreement with Thermo Electron to ensure that funds
will be available on acceptable terms or at all. The Company believes that its
existing resources are sufficient to meet the capital requirements of its
existing businesses for the foreseeable future.
Year 2000
The following information constitutes a "Year 2000 Readiness Disclosure"
under the Year 2000 Information and Readiness Disclosure Act. The Company
continues to assess the potential impact of the year 2000 date recognition issue
on the Company's internal business systems, products, and operations. The
Company's year 2000 initiatives include (i) testing and upgrading significant
information technology systems and facilities; (ii) testing and developing
upgrades, if necessary, for the Company's current products and certain
discontinued products; (iii) assessing the year 2000 readiness of its key
suppliers and vendors; and (iv) developing a contingency plan.
The Company's State of Readiness
The Company has implemented a compliance program to ensure that its
critical information technology systems and facilities will be ready for the
year 2000. The first phase of the program, testing and evaluating the Company's
critical information technology systems and facilities for year 2000 compliance,
has largely been completed. During phase one, the Company tested and evaluated
its significant computer systems, software applications, and related equipment
for year 2000 compliance. The Company also evaluated the potential year 2000
impact on its critical facilities. The Company's efforts included testing the
year 2000 readiness of its manufacturing, utility and telecommunications systems
at its critical facilities. The Company is currently in phase two of its
program, during which any material noncompliant systems or facilities that were
identified during phase one are prioritized and remediated. The Company is
currently upgrading or replacing such noncompliant information technology
systems, and this process was approximately 85% complete as of April 3, 1999. In
many cases, such upgrades or replacements are being made in the ordinary course
of business, without accelerating previously scheduled upgrades or replacements.
The Company expects that all of its material information technology systems and
critical facilities will be year 2000 compliant by July 1999.
The Company has also implemented a compliance program to test and evaluate
the year 2000 readiness of the material products that it currently manufactures
and sells. The Company believes that all of such material products are year 2000
compliant. However, as many of the Company's products are complex, interact with
or incorporate third party products, and operate on computer systems that are
not under the Company's control, there can be no assurance that the Company has
identified all of the year 2000 problems with its current products. The Company
has tested its older products for year 2000 compliance, and believes that all of
its material older products are year 2000 compliant.
The Company is in the process of identifying and assessing the year 2000
readiness of key suppliers and vendors that are believed to be significant to
the Company's business operations. As part of this effort, the Company has
developed and is distributing questionnaires relating to year 2000 compliance to
its significant suppliers and vendors. To date, no significant supplier or
vendor has indicated that it believes its business operations will be materially
disrupted by the year 2000 issue. The Company has started to follow-up with
significant suppliers and vendors that have not responded to the Company's
questionnaires. The Company has substantially completed its assessment of third
party risk, and has determined the impact on the Company of any third-party risk
on the part of its suppliers and vendors to be minimal.
10
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Year 2000 (continued)
Contingency Plan
The Company is developing a contingency plan that will allow its primary
business operations to continue despite disruptions due to year 2000 problems.
This plan may include identifying and securing other suppliers, increasing
inventories, and modifying production facilities and schedules. As the Company
continues to evaluate the year 2000 readiness of its business systems and
facilities, products, and significant suppliers and vendors, it will modify and
adjust its contingency plan as may be required.
Estimated Costs to Address the Company's Year 2000 Issues
The Company had incurred expenses to third parties (external costs)
related to year 2000 issues of approximately $500,000 as of April 3, 1999, and
the total external costs of year 2000 remediation are expected to be
approximately $700,000. All of the external costs incurred as of April 3, 1999,
were spent on testing and upgrading information technology systems. The
Company's year 2000 costs have been funded from working capital. All internal
costs and related external costs other than capital additions related to year
2000 remediation have been and will continue to be expensed as incurred. The
Company does not track the internal costs incurred for its year 2000 compliance
project. Such costs are principally the related payroll costs for its
information systems group.
Reasonably Likely Worst Case Scenario
The Company is not currently able to determine the most reasonably likely
worst case scenario to result from the year 2000 issue. One possible worst case
scenario would be that certain of the Company's material suppliers or vendors
experience business disruptions due to the year 2000 issue and are unable to
provide materials and services to the Company on time. The Company's operations
could be delayed or temporarily shut down, and it could be unable to meet its
obligations to customers in a timely fashion. The Company's business,
operations, and financial condition could be adversely affected in amounts that
cannot be reasonably estimated at this time. If the Company believes that any of
its key vendors or suppliers may not be year 2000 compliant, it will seek to
identify and secure other suppliers or vendors.
Risks of the Company's Year 2000 Issues
While the Company is attempting to minimize any negative consequences
arising from the year 2000 issue, there can be no assurance that year 2000
problems will not have a material adverse impact on the Company's business,
operations, or financial condition. While the Company expects that upgrades to
its internal business systems will be completed in a timely fashion, there can
be no assurance that the Company will not encounter unexpected costs or delays.
Despite its efforts to ensure that its material current products are year 2000
compliant, the Company may see an increase in warranty and other claims,
especially those related to Company products that incorporate, or operate using,
third-party software or hardware. As discussed above, if any of the Company's
material suppliers or vendors experience business disruptions due to year 2000
issues, the Company might also be materially adversely affected. If any
countries in which the Company operates experience significant year 2000
disruption, the Company could also be materially adversely affected. There is
expected to be a significant amount of litigation relating to the year 2000
issue and there can be no assurance that the Company will not incur material
costs in defending or bringing lawsuits. In addition, if any year 2000 issues
are identified, there can be no assurance that the Company will be able to
retain qualified personnel to remedy such issues. Any unexpected costs or delays
arising from the year 2000 issue could have a material adverse impact on the
Company's business, operations, and financial condition in amounts that cannot
be reasonably estimated at this time.
Item 3 - Quantitative and Qualitative Disclosures About Market Risk
The Company's exposure to market risk from changes in foreign currency
exchange rates has not changed materially from year-end 1998.
11
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PART II - OTHER INFORMATION
Item 4 - Submission of Matters to a Vote of Security Holders
On January 11, 1999, at a Special Meeting of Shareholders, the
shareholders of the Company approved a proposal to list on the American Stock
Exchange, Inc., 5,961,225 shares of the common stock of the Company, $.10 par
value per share, to be issued in connection with the acquisition by the Company
of Orion Research, Inc. from Thermedics as follows: 11,427,098 shares were voted
in favor of the proposal, 17,166 shares were voted against, and 9,268 shares
abstained. No broker nonvotes were recorded on the proposal.
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits
See Exhibit Index on the page immediately preceding exhibits.
(b) Reports on Form 8-K
None.
12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized as of the 7th day of May 1999.
THERMEDICS DETECTION INC.
/s/ Paul F. Kelleher
--------------------------
Paul F. Kelleher
Chief Accounting Officer
/s/ Theo Melas-Kyriazi
--------------------------
Theo Melas-Kyriazi
Chief Financial Officer
13
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EXHIBIT INDEX
Exhibit
Number Description of Exhibit
27 Financial Data Schedule.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THERMEDICS
DETECTION INC.'S QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD ENDED APRIL 3,
1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-01-2000
<PERIOD-END> APR-03-1999
<CASH> 36,006
<SECURITIES> 0
<RECEIVABLES> 17,442
<ALLOWANCES> 1,332
<INVENTORY> 16,349
<CURRENT-ASSETS> 73,935
<PP&E> 12,472
<DEPRECIATION> 7,648
<TOTAL-ASSETS> 133,458
<CURRENT-LIABILITIES> 14,288
<BONDS> 127
0
0
<COMMON> 1,932
<OTHER-SE> 117,111
<TOTAL-LIABILITY-AND-EQUITY> 133,458
<SALES> 16,474
<TOTAL-REVENUES> 20,412
<CGS> 6,112
<TOTAL-COSTS> 8,595
<OTHER-EXPENSES> 2,446
<LOSS-PROVISION> 193
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,004
<INCOME-TAX> 1,172
<INCOME-CONTINUING> 1,832
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,832
<EPS-PRIMARY> 0.09
<EPS-DILUTED> 0.09
</TABLE>
