-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QWQjJSQ7UflgVjw+pPyCoGXbdVIWsfVfdMpeCjsJTrqdCIoj2xfzFvWD7q6bNOqV fwuQpC5JAcswzYPAp08gaA== 0001047469-99-013902.txt : 19990408 0001047469-99-013902.hdr.sgml : 19990408 ACCESSION NUMBER: 0001047469-99-013902 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990402 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990407 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN SCIENCE & ENGINEERING INC CENTRAL INDEX KEY: 0000005768 STANDARD INDUSTRIAL CLASSIFICATION: X-RAY APPARATUS & TUBES & RELATED IRRADIATION APPARATUS [3844] IRS NUMBER: 042240991 STATE OF INCORPORATION: MA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-06549 FILM NUMBER: 99589071 BUSINESS ADDRESS: STREET 1: 829 MIDDLESEX TURNPIKE STREET 2: 40 ERIE STREET CITY: BILLERICA STATE: MA ZIP: 01821 BUSINESS PHONE: 9782629700 MAIL ADDRESS: STREET 1: 40 ERIE STREET STREET 2: 829 MIDDLESEX TURNPIKE CITY: BILLERICA STATE: MA ZIP: 01821 8-K 1 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) APRIL 2, 1999 AMERICAN SCIENCE AND ENGINEERING, INC. - -------------------------------------------------------------------------------- (Exact Name Of Registrant As Specified In Its Charter) MASSACHUSETTS - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 1-6549 04-2240991 - --------------------------------- ---------------------------------------- (Commission File Number) (I.R.S. Employer Identification No.) 829 MIDDLESEX TURNPIKE, BILLERICA, MASSACHUSETTS 01821 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (978) 262-8700 - -------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) N/A - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) ITEM 5. OTHER EVENTS. On April 2, 1999, American Science and Engineering, Inc. (the "Company") mailed a letter to the Company's shareholders describing pending litigation proceedings brought by the Company against each of EG&G and the U.S. Customs Service alleging, among other things, infringement of the Company's patents, misappropriation of the Company's trade secrets and a violation of statutory contracting procedures. A copy of the letter to shareholders in included as an exhibit to this Report. Item 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. 99.1. Letter to Shareholders of the Company dated April 2, 1999. SIGNATURE 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 hereunto duly authorized. Date: April 5, 1999 AMERICAN SCIENCE AND ENGINEERING, INC. By: /s/Ralph S. Sheridan ----------------------------------------- Ralph S. Sheridan President and Chief Executive Officer EX-99.1 2 EXHIBIT 99.1 April 2, 1999 Dear Shareholder: I am writing to advise you about litigation we recently launched against EG&G and the U.S. Customs Service. I believe when a public company creates a technology franchise that is successful and highly differentiated, one must be prepared to defend it fiercely from imitators seeking to shortcut the complex and expensive creative process. Last fall, after learning that EG&G was attempting to market a system that copies our MobileSearch-Trademark- system, AS&E-Registered Trademark- filed a suit against EG&G for infringing our backscatter and MobileSearch patents and misappropriating our trade secrets. Some of the technology at issue in this case traces back to trade secrets specifically held to belong to AS&E as a result of the successful litigation against Martin Annis in 1996. More recently, AS&E learned that U.S. Customs contracted with EG&G to build a mobile X-ray system. AS&E has strong reason to believe that EG&G's performance under that contract violates trade secret law and infringes at least two of our patents. In addition, we believe this contract to be a violation of statutory contracting procedures. The purpose of the new lawsuit against Customs is to obtain an injunction that halts this contract. Customs apparently believes that they must seek a second source for AS&E's MobileSearch technology. We believe Customs may be motivated by: 1) the fact that the MobileSearch system has proven to be a highly effective tool for interdicting drugs on the border and 2) their plan to buy a substantial number of these systems. In its zeal to find a second source, we believe U.S. Customs has violated contracting laws, trade secret laws and promoted unlawful transfer of AS&E's intellectual property. We initiated this litigation because the evidence clearly supports our position. As a small, technology-based company, AS&E's success is based on taking innovative technology to the global security and inspection marketplace. We have invested heavily in establishing our world recognized capability. The success of this program is evidenced by trailing 12-month revenue growth of 58%, largely from international orders for the CargoSearch-Trademark- family of systems, including MobileSearch. We and our shareholders have a legitimate right to realize the full benefits of our investment and risk-taking. In today's high stakes global inspection marketplace, AS&E's technology is clearly differentiated from our competition. Where competitors have attempted to infringe on our technology, we have defended vigorously and successfully. We have retained bright, aggressive, experienced and highly competent counsel to lead the current efforts. We are committed to resolving this situation as quickly as possible. The federal district court judge hearing the Customs case has supported our request for expedited proceedings. We hope to report a successful result to you in the first quarter of fiscal 2000. In the meantime, we will continue to work with U.S. Customs on a number of matters and to treat them as the valued customer they are. Over the last five years we have taken AS&E from $11 million in revenues to over $50 million. We appreciate your confidence in AS&E and the future of our technology in the global marketplace. We look forward to providing you with sustained growth and increasing profitability based on an expanding proprietary technology platform. Sincerely, /s/ Ralph S. Sheridan Ralph S. Sheridan Chief Executive Officer and President -----END PRIVACY-ENHANCED MESSAGE-----