Features

Airport scanner reduction hurts InVision Tech.

The Associated Press/Dow Jones
Friday April 26, 2002

NEW YORK — Shares of InVision Technologies Inc., which makes airport luggage scanners, fell Thursday after the Transportation Department reduced the number of such machines it plans to deploy at airports this year. 

Shares also fell, but then rebounded for OSI Systems of Hawthorne, Calif., which makes parts for InVision’s machines. 

Late Wednesday, U.S. Transportation Secretary Norman Mineta said the government now plans to deploy up to 1,100 machines this year in airports. Earlier government estimates called for the installation of more than 2,000 of the machines. 

InVision, based in Newark, Calif., is one of only two Federal Aviation Administration-certified suppliers of the explosive-detection machines. L3 Communications Holdings Inc. is the other. 

On Thursday, Merrill Lynch & Co. cut its near-term investment rating on InVision to neutral from buy. 

InVision shares closed at $23.95, down $3.49, or 13 percent, on Thursday on the Nasdaq Stock Market. Volume Thursday was 7.1 million shares, compared to average daily volume of 2 million shares.