A p ri l Acq u ire d N a u t icos  C or p ora t io n for $8  m illio n .  N a u t icos  p rovi d es  o cea n -rela t e d m ari n e services wi t h  a nn u al reve n u es of $6  m illio n . T h is e n gi n eeri n g fir m s p ecializes i n ocea n i m agery a n alysis,  u si n g s o n ar a n d p h o t ogra p h ic  d a t a; i n t egra t e d a t -sea o p era t io n s a n d n aviga t io n services; a n d sof t ware  d evelo pm e n t u se d for  d a t a ex p loi t a t io n a n d a n alysis a n d robo t ic ve h icle co n t rol sys t e m s.  I t s  p ri m ary  C u s t o m ers are  t h e  U .S.  N avy a n d large  N avy gover n m e n t co n t rac t ors  t h a t u se  N a u t icos’ services  t o s u pp or t t h e  N avy’s s u rface a n d s u b m ari n e flee t o p era t io n s.  N a u t icos also  p rovi d es s u c h services t o s u pp or t co mm ercial  d ee p  ocea n  searc h , loca t io n ,  p h o t o  d oc u m e n t a t io n , a n d r ecovery assig n m e n t s. T h is acq u isi t io n  is a n  o pp or t u n i t y  t o ex p a n d t h e sco p e of o u r  n o n -oil f iel d  b u si n ess offeri n gs i n t h e d esig n , b u il d , a n d life-cycle s u pp or t of  u n d ersea sys t e m s. A n exa mp le of  t h is was a  co n t rac t  we sec u re d d u ri n g 2003 for  t h e  d esig n  a n d  co n s t r u c t io n  of  a d ee p wa t er  t ool  p ackage for t h e  U .S.  N avy. Prior  t o  t h e acq u isi t io n ,  N a u t icos  h a d  bee n  awar d e d t h e co n t rac t  for  t h e co n t rol a n d  co mm u n ica t io n  sof t ware for  t h e sys t e m . G ive n  o u r e n gi n eeri n g a n d m a n u fac t u ri n g ca p abili t ies we beca m e  t h e  n a t u ral selec t io n  for  t h e  d esig n  a n d  co n s t r u c t io n  as w e ll. Nauticos Towed Deep  Ocean Search System Deep Ocean Sonar  Operations Recovered Israeli Submarine Dakar O ceanee r ing  I n t e r na t ional P a ge  11 2003AnnualRepo r t