Pacific Scientific Expects Big Firms to Buy Its Bulbs

Pacific Scientific Co. expects initial sales of its energy-efficient Solium fluorescent light bulbs to be made to big industrial and commercial companies looking to save money, according to Chairman Edward S. Brower.

The new bulbs can be dimmed by hand, distinguishing them from other fluorescent lighting. What’s more, Pacific Scientific says Solium bulbs can last up to five years and use only 15% of the electricity used by most incandescent bulbs.

It’s that money-saving angle that is likely to generate the most excitement from large industrial and commercial companies, Brower told the Bloomberg Forum.

“The industrials and commercials may be some of the earlier customers because they will make more of an effort to evaluate the economic benefits from using our bulb,” Brower said. “However, once consumers see this, we think they will come around too.”

Pacific Scientific’s stock has soared 44% since the company said in early October that Solium could add as much as $100 million to the company’s total revenue in the next two years. On Sept. 30, the last trading day before the introduction of Solium, shares closed at 27 5/8. At midafternoon today, they were going for 40 3/8.

For the year ended Nov. 1, shares of Pacific Scientific were up 77%, placing the company’s stock 36th on the Bloomberg 100 list of top performing U.S. stocks in that time. The ranking is based on the total return, including dividends, of stocks with a market capitalization of at least $100 million.

Currently, Pacific Scientific derives the majority of its annual revenue, which reached $195 million in 1993, from sales of outdoor lighting controls, safety equipment and products for electric utilities.

These core businesses are expected to grow at about 12% to 15% a year, Brower said.

But the future of Pacific Scientific lies with Solium.

“If Solium is everything we expect it to be, it will define the company and become our major thrust,” Brower said.

Pacific Scientific is gearing up to manufacture Solium bulbs on a large scale. Brower said the company plans to spend about $10 million in the next year on equipment and facilities to manufacture Solium. Limited production is expected to begin in mid-1995.