COMMITMENTS AND CONTINGENCIES

12 Months Ended

Mar. 31, 2013

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

9. COMMITMENTS AND CONTINGENCIES

Purchase Commitments

In the normal course of business, the Company enters into purchase orders with its vendors for the purchase of materials or services to meet its production needs. At March 31, 2013, the Company had $27,241,000 of open purchase orders which are expected to be substantially fulfilled within the next two years. Certain single source vendors, or vendors producing custom material, require significant lead times from order to delivery of their material. Should the demand for the Company’s products decline significantly, or should there be a significant shift in the mix of products being demanded, the Company may incur cancellation charges related to these commitments, that could be material to the Company’s results of operations. To date, the Company has not experienced any material losses related to cancellation penalties.

Employment Agreements

On March 13, 2013, the Company signed an offer of employment with Charles P. Dougherty for the position of President and Chief Executive Officer.  Mr. Dougherty commenced employment on April 8, 2013.  Under the terms of this agreement, Mr. Dougherty is entitled to receive base compensation in the amount of $550,000 per year, a performance-based annual incentive bonus equal to 100% of his base compensation per year (guaranteed for the fiscal year ended March 31, 2014), and to participate in the long-term incentive program with awards equal to 200% of base compensation upon achievement of certain long-term strategic goals.  These awards may be comprised of restricted stock, stock options and/or cash as determined by the Compensation Committee of the Board of Directors.

Retirement Savings Plan

The Company maintains a 401(k) Retirement Savings Plan (the “Plan”) for all employees.   Employees are eligible to participate on the first of the month following date of employment.  The Plan is funded by elective employee contributions of up to 100% of their compensation up to IRS limits. Under the Plan the Company at its discretion matches 50% of the first 6% of employee contributions for each participant in the form of Company common stock or cash. In fiscal 2011, the Company began matching employee’s contributions in cash instead of Company common stock as it had in prior years.  Expenses under the Plan, consisting of Company contributions which were made in Company stock or cash and Plan administrative expenses paid by the Company, totaled $1,091,000, $1,152,000 and $1,139,000, in 2013, 2012, and 2011 respectively.

AMERICAN SCIENCE AND ENGINEERING, INC. AND SUBSIDIARIES

UNAUDITED QUARTERLY CONSOLIDATED FINANCIAL DATA

FOR THE YEARS ENDED MARCH 31, 2013 AND MARCH 31, 2012

(In thousands, except per share amounts)

	2013 by quarter								2012 by quarter
	1st		2nd		3rd		4th		1st		2nd		3rd		4th
Net sales and contract revenues	$	47,344	$	46,253	$	50,803	$	42,280	$	51,103	$	54,778	$	57,907	$	39,764
Gross profit	$	21,473	$	20,997	$	22,700	$	14,249	$	23,902	$	25,121	$	26,445	$	17,649
Operating income	$	6,360	$	9,597	$	9,178	$	1,133	$	8,567	$	10,205	$	11,241	$	1,936
Net income	$	4,202	$	6,399	$	6,093	$	760	$	5,693	$	6,851	$	7,535	$	1,343
Net income per share
— Basic	$	0.47	$	0.77	$	0.74	$	0.09	$	0.62	$	0.75	$	0.84	$	0.15
— Diluted	$	0.47	$	0.76	$	0.73	$	0.09	$	0.61	$	0.74	$	0.84	$	0.15