Optics & Photonics News - September 2011

OSA 2010 Audited Financial Report

2011 Finance Committee

Stephen D. Fantone Optikos Corporation Stephen Allen Burns Indiana University Christopher Dainty National University of Ireland Galway Anderson S.L. Gomes Universidade Federal de Pernambucol Christoph S. Harder Harder and Partner

Tony F. Heinz
Columbia University
Wilhelm Kaenders
Toptica Photonics
Ursula Keller
ETH Zurich
Charles E. Synborski
CVI Melles Griot Inc.
Ian A. Walmsley
University of Oxford
Laura Ann Weller-Brophy
FluoroLogic, Inc.

Dear OSA members, Each year, in accordance with OSA’s bylaws, our audited financial statements are presented to you. The statements were accepted by the Audit Committee and the Board of Directors during their May 2011 meetings.

In 2010, our conferences served 19,600 attendees and received 8,600 papers, a 16 percent increase on both counts over 2009. Our peer-reviewed journals received 12,500 articles, published 6,900 articles and continued to set the standard of excellence in the optics and photonics field. Individual membership increased to 16,400, surpassing our year-end goal and exceeding 2009 membership by 6 percent.

In 2010, the OSA Foundation (OSAF) funded nearly 70 programs, awarded 48 student prizes and grants, and distributed thousands of classroom resources including Galileoscopes and Optics Suitcases. Our 2010 programs benefited a multitude of individuals in over 60 countries.

Essential to OSA’s mission and successful operation are the contributions of individual members as authors, editors, reviewers, program committee members, speakers and governance leaders. Without the thousands of hours provided by the dedicated efforts of these volunteers, our programs, services and future initiatives would not be possible.

OSA’s net surplus from operations was $830K. The OSA endowments and long-term reserves
produced a net unrealized gain of $5.9M, resulting in net income of $6.8M. OSA’s total net worth was
$60M, a 13 percent increase over last year and an 8 percent increase since the market peaked in 2007.
The portfolio has fully recovered from the 2008 economic downturn. Given the volatility of the market,
the Investment Subcommittee, the Finance Committee and the Board of Directors review the invest-
ment policy on a regular basis. OSA’s endowment and long-term reserves provide a stabilizing resource
that allows OSA to act strategically and confidently through times of economic turmoil. In 2010, OSA:
•;Published;six;of;the;highest;cited;journals;within;our;field.;Notably,;Optics Express maintained
its presence as the most successful and leading open-access optics and photonics journal, and we
launched a new open-access journal, Biomedical Optics Express.;Publications;continue;to;be;a
major financial contributor to the Society’s operations.

•;Managed;30;conferences,;including;OFC/NFOEC,;CLEO/QELS/PhAST;and;FiO/LS. Examples;of;new;programs;include;Applied;Industrial;Optics,;Digital;Image;Processing;and Analysis, and Imaging Systems.

2011 Audit Committee
Stephen D. Fantone
Optikos Corporation,
United States, Chair
Neal S. Bergano
TE SubCom, United States
Thomas L. Koch
Lehigh University, United States

•;Increased;the;number;of;OSA;student;chapters;by;20;percent,;to;209;(154;international) from 178.

•;Introduced;the;OSA;senior;member;category;with;213;inductees.

2011 Investment Subcommittee Stephen D. Fantone Optikos Corporation

Neal S. Bergano
TE SubCom
Frederick J. Leonberger
EOvation Advisorss LLC
Alexander A. Sawchuk
University of Southern California

Established in 2002, the OSA Foundation financial results include net assets of $5.9M. Examples of 2010 programs included the launch of travel grant programs in honor of Jean Bennett and Robert S. Hilbert, the receipt of two grants from the Greater Milwaukee Foundation and the launch of the Adopt-a-Chapter program with Coherent Inc. as the first corporate sponsor.

The;audit;firm;of;BDO;USA,;LLP;performed;OSA’s;2010;independent;audit.;Those;statements;are presented;here.;The;figures;are;all;in;U.S.;dollars.;I;would;like;to;thank;Neal;Bergano;(TE;Subsea;Com-munications,;LLC),;Thomas;Koch;(Lehigh;University),;Alexander;Sawchuk;(University;of;Southern California),;and;Adam;Wax;(Duke;University);for;their;participation;on;the;Audit;Committee;and/ or the Investment Subcommittee. Thanks also to the members of the Finance Committee and OSA’s finance staff. OSA is committed to upholding sound financial policies that enable it to serve many generations of scientists and engineers to come.

Please;feel;free;to;contact;me;( sdfantone@osa.org);or;OSA;Chief;Executive;Officer;Elizabeth;Rogan ( erogan@osa.org);if;you;have;any;questions;or;comments;about;these;financial;statements.