Outsourcing, government research contribute to SwRI financial strength

San Antonio -- February 25, 2002 -- Last year's economic downturn caused businesses to outsource more of their research and development, contributing to a record $319 million in annual revenues at Southwest Research Institute^® (SwRI^®), according to President J. Dan Bates.

The current fiscal year holds the promise of additional government-sponsored research as part of America's war on terrorism, Bates told directors and trustees at the Institute's 53rd annual meeting.

Bates said, "Industry has reacted to the slowing economy by cutting expenses and reducing staff, leading more firms to consider outsourcing their research and development efforts."

He added, "A healthy backlog, conservative fiscal policies, and a dedicated staff enable us to continue meeting or exceeding our business goals."

Net income for fiscal year 2001 reached $14.1 million, while capital equipment and building expenditures amounted to $24.6 million and an additional $3 million went toward internal research on promising new technologies. Just over half of SwRI's contract dollars, 55 percent, came from government sources while 45 percent were provided by industry.

SwRI, a nonprofit, independent research and development organization, has more than 2,973 employees working in 11 technical divisions on more than 1,000 research projects per year.

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