ESCO Technologies Inc. (ESCO), incorporated in August 1990, is a producer of engineered products and systems sold to customers, primarily for utility, industrial and commercial applications. ESCO operates in three operating segments: Utility Solutions Group (Utility Solutions), RF Shielding and Test (Test) and Filtration/Fluid Flow (Filtration). Utility Solution includes Aclara Power-Line Systems Inc. (Aclara PLS), Aclara RF Systems Inc. (Aclara RF), Aclara Software Inc., Distribution Control Systems Caribe, Inc., Doble Engineering Company, Doble TransiNor AS, Doble PowerTest Limited, LDIC GmbH (LDIC), LDIC AG and Comtrak Technologies, L.L.C. (Comtrak). Test includes ETS-Lindgren L.P., Lindgren RF Enclosures, Inc., ETS-Lindgren OY, ETS-Lindgren Limited, Beijing Lindgren ElectronMagnetic Technology Co., Ltd. and ETS-Lindgren Japan, Inc. Filtration includes PTI Technologies Inc. (PTI), VACCO Industries (VACCO) and TekPackaging LLC. On November 30, 2007, the Company acquired Doble. On July 31, 2008, the Company acquired LDIC. On November 25, 2007, the Company completed the sale of its Filtertek businesses (excluding TekPackaging LLC, formerly TekPackaging division) to Illinois Tool Works Inc. In November 2007, the Company changed the name of the Communications segment to the Utility Solutions Group segment, and renamed its advanced metering infrastructure (AMI) businesses, such as Distribution Control Systems, Inc. was renamed Aclara Power-Line Systems, Inc; Hexagram, Inc. was renamed Aclara RF Systems Inc., and Nexus Energy Software, Inc. was renamed Aclara Software Inc. These subsidiaries are engaged primarily in the research, development, manufacture, sale and support of the products and systems and are subsidiaries of ESCO Technologies Holding Inc., a wholly owned direct subsidiary of ESCO. Utility Solutions Group The Utility Solutions segment accounted for approximately 58% of the Company’s total revenue during the fiscal year ended September 30, 2008 (fiscal 2008). Aclara PLS is a manufacturer of two-way power line communication systems for the electric utility industry (the TWACS systems), which are composed of equipment (primarily meter modules and equipment for central stations and substations), software and support services. The Company, in fiscal 2008, completed the development of its TWACS NG software and released it for commercial use. The TWACS systems provide electric utilities with a communication technology for automatic meter reading, load control, interval data, outage assessment/restoration monitoring, remote service disconnect/connect, time-of-use data for critical peak pricing, tamper/theft detection and pre-paid metering. Revenue from the TWACS systems, accounted for approximately 25% of the Company’s total revenue in fiscal 2008. Aclara RF provides, through its STAR network, wireless radio frequency (RF) data communications systems to gas, water and electric utilities for AMI applications. The STAR network provides billing, high/low consumption reporting, and non-revenue water loss detection. Aclara Software Inc. provides utilities with software systems for energy and water information, delivering meter data management system (MDMS), AMI/meter device records and asset management, proven business applications addressing areas, such as revenue assurance and distribution asset analysis, and the industry’s customer presentment and analysis applications. Aclara’s analytics-based software applications are used by approximately 100 energy organizations. Doble is a supplier of high-end electronic diagnostic test products and services to the electric utility industry for the evaluation of power assets. It is a supplier of partial discharge testing instruments used to assess the integrity of high voltage power delivery equipment. Doble serves customers in 75 countries. Comtrak manufactures advanced digital video security monitoring systems for commercial and industrial applications. Comtrak works jointly with ADT Security Services, Inc., who sells this system under its SecurVision trademark. RF Shielding and Test The Test segment accounted for approximately 23% of the Company’s total revenue in fiscal 2008. ETS-Lindgren designs and manufactures products to measure and contain magnetic, electromagnetic and acoustic energy. It supplies customers with a range of isolated environments, including RF test enclosures, acoustic test enclosures, RF and magnetically shielded rooms, secure communication facilities and broadcast and recording studios. Many of these facilities include features, such as shielded doors and windows. ETS-Lindgren also provides the design, program management, installation and integration services required to successfully complete these types of facilities. ETS-Lindgren also supplies customers with a range of components, including RF absorptive materials, RF filters, active compensation systems, antennas, antenna masts, turntables and electric and magnetic probes, RF test cells, measurement software and other test accessories required to perform a variety of tests. ETS-Lindgren also offers a variety of services, including calibration for antennas and field probes, chamber certification, field surveys, customer training and a variety of product tests. ETS-Lindgren operates the test labs, which includes American Association for Laboratory Accreditation (A2LA), National Voluntary Laboratory Accreditation Program (NAVLAP) and CATL (CTIA-The Wireless Association (CTIA) Accredited Test Lab). In addition, ETS-Lindgren serves the acoustics, medical, health and safety, electronics, wireless communications, automotive and defense markets. Filtration/Fluid Flow The Filtration segment accounted for approximately 19% of the Company’s total revenue in fiscal 2008. PTI Technologies Inc. (PTI) is a supplier of filtration products serving the commercial aerospace, military aerospace and various industrial markets. The industrial markets include chemical processing, automotive and mobile equipment. Products include filter elements, assemblies, modules, indicators and other related components. Product applications include aircraft, helicopters and mobile equipment hydraulic systems, aircraft engines and plant equipment. PTI supplies products to original equipment manufacturers and the United States government under long term contracts, and to the commercial aftermarkets through distribution channels. VACCO Industries (VACCO) supplies flow control products, valves and filters to the space, defense and commercial industries for use in aircraft, satellite propulsion systems, satellite launch vehicles, the space shuttle and its successor, Project Constellation. TekPackaging LLC produces highly engineered thermoformed and security packaging products for medical, food and electronics products. The Company competes with Itron, Inc., Silver Spring Networks, Landis + Gyr, Cannon Technologies Inc., Sensus Metering Systems Inc., Trilliant Inc., Elster Electricity, L.L.C., Comverge, Inc., Neptune Technology Group, e-Meter Corporation, Oracle Corporation, TDK RF Solutions Inc., Albatross GmbH, IMEDCO AG, Cuming Corporation, Pall Corporation, Moog, Inc., SoFrance, Allied Signal and Clarcor Inc. CONSENSUS RECOMMENDATIONS Consensus Recommendation Next Earnings (approx.) Company Fiscal Year End Month Last Updated Hold September 16 Nov 2009 ANALYST RECOMMENDATIONS AND REVISIONS 1-5 Linear Scale Current 1 Month Ago 2 Month Ago 3 Month Ago (1) BUY 1 2 2 1 (2) OUTPERFORM 0 0 0 0 (3) HOLD 8 7 7 7 (4) UNDERPERFORM 1 1 1 1 (5) SELL 0 0 0 0 No Opinion 0 0 0 0 Mean Rating 2.90 2.70 2.70 2.89