There are 13.9 million shares outstanding. Earnings peaked last year at 93 cents per share and will be less this year, probably in the 60 cents to 70 cents area. OSM continues to have additional expenses related to its implementation of a total corporate integrated software system. Management anticipates significant future benefits from the new software, as it integrates orders in real time on a worldwide basis and also solves the year 2000 problem. Furthermore, inventory will be reduced by increasing turnover to twice what it is today.
Sales are at a record and have been climbing nicely for the fifth consecutive year.
To illustrate the positive future outlook, last quarter the company finalized a partnership with Fuji Electric in Japan which recently received the contract for a large-scale pilot ozonator for the Orlando, Florida municipal water system. Ozonators should have a good market as they remove color and parasites from municipal water systems. Also, there is a strong interest in bleaching applications for the pulp and paper industry to eliminate the use of chlorine bleach. All directors and executive officers as a group own 24 percent of the stock. Other products concentrate wastes and enable clean water to be recycled or dis charged into the environment.