#10: GenRad Inc.

PAST GLOBE 100 RANKING First time on the Globe 100 list

enRad may have disappointed investors in the first quarter of this year, but it was golden last year, winning a major automotive contract from Ford Motor Co. and expanding its printed circuit board test operations.

The company, best known for its electronic test systems, is one of New England's oldest electronics firms.

It recently relocated to Westford after more than 40 years in Concord.

Last year, its earnings and stock price soared as it expanded its British-based business in automotive test equipment.

With several contracts to supply European auto makers, including Jaguar Motors, GenRad scored a major coup by beating Hewlett-Packard Co. for a contract to supply test equipment to Ford.

Wall Street analysts have estimated that GenRad should see $300 million to $400 million in revenue over the next five years from the Ford contract.

Still, automotive test equipment is only about 20 percent of GenRad's sales and as little as 10 percent of its profits.

The bulk of revenue and most of its earnings come from its equipment to test printed circuit boards. It sells that equipment to major personal computer makers such as Dell Computer and to data communications and networking firms such as Cisco Systems, Bay Networks, and Cabletron Systems.

Last year, GenRad's revenues and profits from the board testing rose with major sales to electronics contract manufacturing companies such as Solectron and Jabil Circuit - companies that build products for small to medium-sized Route 128 and Silicon Valley firms.

But while GenRad prospered handsomely last year, it surprised investors recently, reporting an unexpected drop in first-quarter 1998 profits.

The company's stock price, as high as 34 last year, plunged more than 50 percent and prompted several shareholder lawsuits.

Company officials say the shortfall was not seen until a week before the quarter closed and the problems have been corrected.