PhillyInc

The Boeing Co. is celebrating the 40th anniversary of its jumbo-jet factory in Everett, Wash., which has been expanded over the years to become the “world’s largest building” by volume. How big is it? Its 472 million cubic feet can swallow 2,142 average-size homes, 3.32 billion 16-ounce soda bottles, 75 football fields, or 911 basketball courts. Built to produce the Boeing 747, it has 25,000 employees who now also build the 767, 777 and 787 airliners. Parts of some of those planes have been built in Boeing’s relatively diminutive plant in Ridley Park. -- Henry J. Holcomb

Whether Lenfest is plowing in more money to make the best of a bad investment, or backing up ETC chairman William F. Mitchell on an undervalued gem, only he knows for sure. Note that Lenfest already has been giving loans and "personal guarantees" to support ETC. The settlement with Uncle Sam does clear a major hurdle, which ETC said had cost it $6.7 million over the past year and drove its first-quarter net loss to $8.7 million, or 98 cents a share, up from $2 million, or 23 cents per share. Although sales have been essentially flat, Wall Street evidently liked Lenfest's transaction at the stock's five-year low and has pushed up its price 25 percent since last Thursday.

- Thomas Ginsberg

Come and get me!

Not with terms like “dead cat bounce,” “eyeballs” and “gross impressions.” That one is a personal favorite. It’s what employees do when they have to imitate their bosses' motivational speeches. (Actually, it’s an advertising term for how many times a message is seen or heard.)

How about this one, courtesy of today's corporate news: “Reverse logistics.” Does that mean making tidy and orderly systems messy? Most of us have kids or spouses who are expert in that -- no need to venture into the business world at all.

The term comes to us today from Genco Infrastructure Solutions Inc., which praises itself as the “recognized leader in Reverse Logistics.” The Pittsburgh company and its sister Genco subsidiary, Capital Returns Inc., just landed a $38.4 million, five-year-contract from the Philadelphia-based Defense Logistics Agency, Defense Supply Center.

If logistics means moving supplies or products efficiently through a manufacturing, warehousing and distribution center, reverse means the opposite — sucking all that product away from its former final destination. Genco, which handles retail returns, for example, will be sucking back (efficiently, we presume), expired or soon to be expired pharmaceuticals from the Defense Department along with medical supplies and related waste materials. Efficiency will be key, since the materials will come from throughout the United States as well as overseas.

Have a favorite term? Send it in with your own definition (but please, include the real meaning too!)

- Jane M. Von Bergen

Ever had a day when so much information was flying at you you couldn’t make a decision? The Lockheed Martin Corp. (NYSE: LMT) Advanced Technology Laboratories in Cherry Hill has taken a step toward solving that problem — at least for people in combat. Its $1.1 million “Time-sensitive Target Dynamic Decision Enabler” sorts through a flood of data and uses artificial intelligence to separate friendly aircraft from enemy threats. It presents likely outcomes of various responses — then helps pick the weapon and the right time to fire it, Lockheed spokesman Stephen P. O’Neill said. The software can make a decision in less than two minutes of the same quality as a two-hour process. Two hours is, of course, way more time that it takes a threat to become an lethal attack.

- Henry Holcomb

How far is Lower Bucks County from Outer Space?

Not that far, perhaps. Environmental Tectonics Corp. (AMEX:ETC) in Southampton has signed a contract with Virgin Galactic, a company owned by Virgin Group's Richard Branson to provide training for Virgin Galactic's suborbital space travelers -- the first set of space tourists. At first, Environmental Tectonics will train Virgin Galactic's Founders, the name given to the first 100 travelers to sign on with Virgin Galactic. But the contract extends beyond those travelers, the company said. Training runs September through November at Environmental Tectonics' NASTAR Center in Southampton.

Environmental Tectonics creates software that provides flight simulation so pilots can learn to respond in an emergency. But so far, they haven't managed to create the software that will teach chairman William F. Mitchell and the rest of management how to respond to three years of losses and declining revenues. Nonetheless, at least for today, shares are up and trading is brisk -- maybe that's because of today's announcement, or because of Tuesday's news that the company's largest investor, former cable-television executive H.F. "Gerry" Lenfest sunk another $3.3 million in the company, by buying 3,300 shares of preferred stock.

- Jane M. Von Bergen

Today, the Washington Post ran a Page One story saying the FBI believes Unisys Corp. of Blue Bell, while working on contract to the Department of Homeland Security, "allegedly failed to detect cyber break-ins traced to a Chinese-language Web site and then tried to cover up its deficiencies." At 4:30 this morning, Unisys put out a strong denial saying, in part: “Unisys vigorously disputes the allegations made in today’s article. Facts and documentation contradict the claims described in the article, but federal security regulations preclude public comment on specific incidents. We can state generally that the allegation that Unisys did not properly install essential security systems is incorrect. In addition, we routinely follow prescribed security protocols and have properly reported incidents to the customer in accordance with those protocols." Stay tuned.

- Thomas Ginsberg

The former Pennsylvania governor and Homeland Security Department chief formallly unveiled his consulting shop today in Washington, Ridge Global LLC, to provide "strategic and operational guidance to clients worldwide." In fact, he's been running the consulting business for awhile and boasts contracts already with the govenment of Albania and Deloitte & Touche USA LLP. (Also see the Philadelphia Business Journal here). Indeed, the New York Times documented his entrepreneural offering of access and insights last year in a look at 94 former security officials who have turned their government experience into consulting or lobbying work. And Forbes already lists Ridge's company in its bio page.

In any case, Ridge's announcement says his advisory committee will include Gen. Barry McCaffrey (Ret.), former U.S. Homeland Security Advisor Gen. John Gordon (Ret.), former U.S. Coast Guard Commandant Adm. Thomas Collins (Ret.) and former White House Cyber Security Advisor Howard Schmidt. Not clear what role they will have in actual contracting or advising clients.

- Thomas Ginsberg

Environmental Tectonics Corp. (AMEX: ETC) of Southampton, led by William F. Mitchell III and occasionally rescued by H. F. "Gerry" Lenfest, may not be able to call itself a U.S. defense contractor anymore. ETC said in an SEC filing last week that the Navy Department has barred ETC from all government gigs. That'll hurt, but probably not surprising after ETC already lost most of its government contracts amid back-and-forth lawsuits with the Navy -- finally settled last summer -- over its decompression chambers. Mitchell's team told the SEC it will appeal at a meeting set for this Wednesday with Navy officials, who we guess know something about not holding their breath.

- Thomas Ginsberg

Environmental Tectonics Corp. is reporting more fallout from its dispute with the U.S. Navy over a contract. After taking a charge for the value of the receivables of that contract, the Southampton company now says in a filing to the SEC that it must restate its prior financial statements. And that means it is not in compliance with its $15 million credit agreement with PNC Bank.

ETC, which makes decompression chambers and simulation trainers, says it has borrowed $14.3 million under the agreement, and PNC Bank could demand immediate payment. Gerry Lenfest, a big Tectonics shareholder, has guaranteed all of the company's obligations under the PNC Bank loan. ETC's audit committee has identified errors in accounting related to the Navy contract. Until it figures out what happened, the company is telling investors not to rely on its financial statements for the last five fiscal years.

- Thomas Ginsberg

Environmental Tectonics Corp., the Bucks County defense contractor run by William F. Mitchell (that's him to the left) and backed by Gerry Lenfest, seems to have taken one step forward with its biggest customer, the Pentagon, but has lost its accountant in the process.

The good news first. ETC says it has patched things up with the Navy and, as a result, the U.S. General Services Administration has agreed to remove ETC from its list of firms prohibited from bidding on U.S. government contracts. In exchange, ETC is implementing "a program of compliance reviews, audits and reports." The suspension followed a back-and-forth of lawsuits between ETC and the Navy and a guarantee from Lenfest -- a board member and one of the region's most admired philanthropists -- to pay some settlement fees. ETC did not explain the kinds of audits and reports that it must submit. But at least it can keep calling itself a defense contractor.

The bad news: The company also disclosed to the SEC earlier last week (which we missed at the time) that its accounting firm, Grant Thornton L.L.P., had "resigned" after finding out that it wasn't informed about some of the lawsuit notices from the Navy. ETC disclosed that Grant quit because "information came to Grant’s attention that has led it to no longer be able to rely on management's representations and has made it unwilling to be associated with the financial statements prepared by management." Whoa. ETC said it's looking for a new accountant. But better that, than having to survive without U.S. government contracts.

- Thomas Ginsberg

Seems that snitching and Philadelphia's battle against crime (and against the 'Killadelphia' image) is paying off for at least one company. Clear Channel Outdoor Inc., of San Antonio, says Philadelphia's digital "most-wanted" billboard has been so successful (three fugitives were caught recently) that the FBI has agreed to expand the service nationwide.

No word how much the FBI contract is worth for Clear Channel. The company's latest quarterly filing pegs a large share of its revenue growth on the billboards. Clear Channel already has said it will launch the electronically networked signs in 20 more markets in 2008. So the investment in Philadelphia has clearly (sorry) paid off.

- Thomas Ginsberg