Bookkeeping: Selling some American Science & Engineering (ASEI) on Fantastic Earnings

I am cutting American Science & Engineering (ASEI) from a 2.0% stake to 1.2% on some fantastic earnings. This stock has been asleep of late as people run into commodities/tech/China. Just goes to show, this market is about what the hot thesis is not what companies are executing. The stock is up 8% this morning and hitting recent highs in the $82s; I'm selling in the mid $82s and looking to rebuy lower. If the stock breaks north of $84, I'll pay up to ride the next leg up as this would be a new high.

Love the gross margin expansion - that's money in the bank.

• The Company reported record revenues of $65,290,000 as compared with revenues of $42,615,000 for the third quarter of fiscal year 2008, net income of $10,059,000 as compared with net income of $4,002,000 for the third quarter of fiscal year 2008, and earnings per share of $1.13 as compared with earnings per share of $0.43 for the third quarter of fiscal year 2008. This represents a 53% increase in revenues and a $0.70 increase in earnings per share when compared to the third quarter of the prior fiscal year.
• “This is another record quarter — revenues increased more than 50% and gross profit margin increased more than eight points to 44% from the same period one year ago,” said Anthony Fabiano, AS&E’s President and CEO. “Revenue growth in the quarter was driven by a robust demand for our Z Backscatter Vans, AS&E’s proprietary cargo products, and field services. Operating income significantly increased in the quarter with improved gross margins from higher revenues, significant improvement in cargo margins, and continued focus on controlling overhead and expenses. These strong results were enabled by the successful execution of our strategies to grow revenue and earnings to increase shareholder value over the long-term.”
• In accordance with the previously announced dividend program, the Company is declaring a quarterly cash dividend of $0.20 per share, payable on March 5, 2009 to the holders of record at the close of business on February 16, 2009.