<PAGE>
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED APRIL 30, 1996
[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO ___________.
Commission file number 0-27286
---------
HELISYS, INC.
(exact name of small business issuer as specified in its charter)
Delaware 95-4552813
(State or other jurisdiction (I.R.S. Employer Identification Number)
of incorporation or organization)
24015 Garnier Street, Torrance, California 90505
(Address of principal executive offices)
(310) 891-0600
(Issuer's telephone number)
Not Applicable
--------------
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.
YES X NO
------ ------
State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date.
Class Outstanding at May 31, 1996
----- ---------------------------
Common Stock, $.001 par value 3,966,111
Page 1 of 15 Pages
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HELISYS, INC.
INDEX TO FORM 10-QSB
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION PAGE NUMBER
<S> <C>
Item 1. Financial Statements
Balance Sheets as of July 31, 1995 (audited)
and April 30, 1996 (unaudited)............................ 3
Statements of Income (unaudited) for the
three months ended April 30, 1995 and 1996,
and for the nine months ended April 30, 1995
and 1996.................................................. 5
Statements of Cash Flows (unaudited) for the
nine months ended April 30, 1995 and 1996................. 6
Notes to Financial Statements............................. 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations................... 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K...................... 14
SIGNATURES....................................................... 15
</TABLE>
2
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HELISYS, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
JULY 31, 1995 APRIL 30, 1996
-------------- ---------------
ASSETS (AUDITED) (UNAUDITED)
<S> <C> <C>
Current assets:
Cash........................................ $ 44,835 $ 11,508
Marketable securities....................... -- 4,311,189
Accounts receivable, net of allowance for
doubtful accounts of $68,000 as of
July 31, 1995 and April 30, 1996........... 2,340,437 3,165,131
Inventories................................. 1,404,601 2,043,499
Prepaid expenses............................ 57,976 444,234
Deferred income taxes....................... 538,675 610,668
---------- -----------
Total current assets..................... 4,386,524 10,586,229
---------- -----------
Property, plant and equipment
Land........................................ 838,000 838,000
Building and improvements................... 1,332,460 1,344,121
Office furniture and equipment.............. 299,791 266,027
Machinery and equipment..................... 284,552 427,749
---------- -----------
2,754,803 2,875,897
Less--Accumulated depreciation.............. 192,487 325,852
---------- -----------
2,562,316 2,550,045
---------- -----------
Other assets................................. 30,960 34,335
---------- -----------
$6,979,800 $13,170,609
========== ===========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
HELISYS, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
JULY 31, 1995 APRIL 30, 1996
------------- --------------
LIABILITIES AND STOCKHOLDERS' EQUITY (AUDITED) (UNAUDITED)
<S> <C> <C>
Current liabilities:
Current portion of long-term debt and
capital lease obligation............................. $ 52,133 $ 56,148
Accounts payable...................................... 1,282,710 1,648,046
Accrued liabilities................................... 836,015 886,264
Customer deposits..................................... 483,820 9,605
Deferred gross profits................................ 383,740 383,740
Deferred maintenance revenues......................... 501,128 770,143
---------- -----------
Total current liabilities.......................... 3,539,546 3,753,946
---------- -----------
Long-term debt and capital lease
obligation, net of current portion.................... 1,931,685 1,899,882
Stockholders' equity:
Preferred stock, $.001 par value:
1,000,000 shares authorized, none issued
or outstanding....................................... -- --
Common stock, $.001 par value:
Authorized--20,000,000 shares
Issued and outstanding--2,645,304 shares as of
July 31, 1995, and 3,966,111 as of April 30, 1996,
respectively......................................... 2,645 3,966
Common stock subscribed............................... 55 --
Advance to stockholder................................ -- (40,536)
Deferred compensation expense......................... -- (50,479)
Additional paid-in capital............................ 32,945 5,764,168
Retained earnings..................................... 1,472,924 1,839,662
---------- -----------
Total stockholders' equity......................... 1,508,569 7,516,781
---------- -----------
$6,979,800 $13,170,609
========== ===========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
HELISYS, INC.
STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE FOR THE
THREE MONTHS ENDED NINE MONTHS ENDED
APRIL 30, APRIL 30,
------------------------- --------------------------
1995 1996 1995 1996
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Net sales................................ $3,258,518 $3,425,708 $8,274,001 $10,464,347
Cost of sales............................ 1,384,705 1,803,229 3,562,969 5,360,849
---------- ---------- ---------- -----------
Gross profit........................... 1,873,813 1,622,479 4,711,032 5,103,498
---------- ---------- ---------- -----------
Operating expenses:
Selling, general and administrative.... 854,822 1,065,422 2,374,792 3,038,202
Research and development............... 193,041 493,634 796,460 1,333,212
---------- ---------- ---------- -----------
1,047,863 1,559,056 3,171,252 4,371,414
---------- ---------- ---------- -----------
Income from operations............... 825,950 63,423 1,539,780 732,084
---------- ---------- ---------- -----------
Other income (expense):
Interest income........................ 4,424 29,755 9,363 38,218
Interest expense....................... (37,519) (66,084) (85,423) (164,564)
---------- ---------- ---------- -----------
Income before provision for income
taxes.............................. 792,855 27,094 1,463,720 605,738
Provision for income taxes............... (273,000) (7,000) (505,000) (239,000)
---------- ---------- ---------- -----------
Net income............................. $ 519,855 $ 20,094 $ 958,720 $ 366,738
========== ========== ========== ===========
Earnings per common share:
Net income per common share
outstanding........................ $0.19 $0.01 $0.36 $0.12
========== ========== ========== ===========
Weighted average number of common
shares outstanding................. 2,700,000 3,425,142 2,700,000 2,941,714
========== ========== ========== ===========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
HELISYS, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE
NINE MONTHS ENDED
APRIL 30,
--------------------------
1995 1996
----------- ------------
<S> <C> <C>
Cash flows from operating activities:
Net income.................................................. $ 958,720 $ 366,738
Adjustments to reconcile net income to
net cash provided by (used in) operating activities:
Depreciation.............................................. 89,709 180,435
Employee stock compensation............................... -- 18,216
Loss on disposition of property, plant and equipment...... -- 24,884
Changes in operating assets and liabilities:
Accounts receivable..................................... (726,614) (824,694)
Inventories............................................. 161,183 (638,898)
Prepaid expenses........................................ 18,510 (386,258)
Deferred income taxes................................... (235,353) (71,993)
Other assets............................................ (3,705) (3,375)
Accounts payable........................................ (127,566) 365,336
Accounts payable - related parties...................... (134,230) --
Accrued liabilities..................................... 149,064 50,249
Income taxes payable.................................... 30,268 --
Customer deposits....................................... 324,124 (474,215)
Deferred gross profits.................................. 263,860 --
Deferred maintenance revenues........................... 394,080 269,015
---------- -----------
Net cash provided by (used in)
operating activities.................................. 1,162,050 (1,124,560)
---------- -----------
Cash flows from investing activities:
Purchases of marketable securities...................... -- (5,011,189)
Sales of marketable securities.......................... -- 700,000
Purchases of property, plant and equipment.............. (585,387) (193,048)
---------- -----------
Net cash used in investing activities.................. (585,387) (4,504,237)
Cash flows from financing activities:
Proceeds from note payable.............................. 858,000 --
Payments on long-term debt.............................. (869,913) (13,400)
Payments on capital lease obligation.................... (10,702) (14,388)
Proceeds from issuance of common stock.................. -- 5,663,794
Advance to stockholder secured by common stock.......... -- (60,000)
Collections on stockholder loans........................ -- 19,464
---------- -----------
Net cash provided by (used in) financing activities.... (22,615) 5,595,470
---------- -----------
Net increase (decrease) in cash............................. 554,048 (33,327)
Cash, beginning of period................................... 628,592 44,835
---------- -----------
Cash, end of period......................................... $1,182,640 $ 11,508
========== ===========
Supplemental disclosures of cash flow information:
Cash paid during the period for interest................... $ 85,423 $ 147,562
Cash paid during the period for income taxes............... 757,699 301,013
Supplemental disclosures of noncash financing activities:
Notes payable issued in connection with the
purchase of land and building............................. 1,930,500 --
Equipment purchased under capital lease obligation......... 60,642 --
Deferred loan fees incurred in connection with
refinancing a note payable................................ 27,000 --
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
HELISYS, INC.
NOTES TO FINANCIAL STATEMENTS
(unaudited)
(1) BASIS OF PRESENTATION
The unaudited financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles to be presented for complete financial statements. The accompanying
financial statements include all adjustments (consisting only of normal
recurring accruals) which are, in the opinion of management, necessary for a
fair presentation of the results for the interim periods presented. Operating
results for the three and nine month periods ended April 30, 1996 are not
necessarily indicative of the results that may be expected for the year ended
July 31, 1996. Certain balances in 1995 have been reclassified to conform with
the 1996 presentation.
The financial statements and related disclosures have been prepared with
the presumption that users of the interim financial information have read or
have access to the audited financial statements for the preceding fiscal year.
Accordingly, these financial statements should be read in conjunction with the
audited financial statements and the related notes thereto included in the
Registrant's Registration Statement on Form SB-2 as filed with the Securities
and Exchange Commission on March 7, 1996 (SEC File No. 33-99244 LA, effective
March 12, 1996), and the Prospectus filed pursuant to Rule 424(b)(3) with the
Securities and Exchange Commission on March 8, 1996.
(2) EARNINGS PER COMMON SHARE:
Primary earnings per common share for the three months ended April 30, 1995
and 1996, and the nine months ended April 30, 1995 and 1996, is based on the
weighted average number of shares outstanding without inclusion of common stock
equivalents, as such inclusion would be anti-dilutive or dilution would be less
than 3%.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
During its early years, the Company obtained government funding to conduct
research and development activities relating to the LOM process. Commencing in
1991, commercial operations were funded through the receipt of advance deposits
from customers to cover the costs of manufacturing the LOM systems. More
recently, the Company has funded its cash requirements primarily from cash flow
from operations. In addition, the Company has continued to actively pursue
government funding to subsidize research and development projects.
On March 12, 1996, the Company consummated its initial public offering of
1,200,000 shares of Common Stock and received net proceeds of approximately
$6,000,000,
7
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prior to the payment of legal, accounting and other fees incurred in connection
therewith. As of April 30, 1996, approximately $4,300,000 of the proceeds have
been invested in short-term, AAA rated bonds or bond funds. In addition, the
Company has ordered approximately $200,000 of office furniture and equipment.
The remaining proceeds of this offering are expected to be used to pay off
certain expenses incurred in connection with the offering, and for general
working capital purposes.
In connection with the initial public offering, the Company and a
stockholder of the Company granted the Company's underwriters a 45-day option to
purchase up to 170,000 and 10,000 additional shares of common stock,
respectively, to cover over-allotments, if any, on the terms and conditions as
set forth in the Company's Prospectus. On April 23, 1996, the Company issued
66,111 shares to its underwriters upon exercise of this option, and received net
proceeds of approximately $330,000.
The future growth of the Company is dependent upon market acceptance of its
second-generation rapid prototyping machines, as well as continued sales of
released materials and services. The Company expects that its second-generation
rapid prototyping machines, the LOM 2030H, will be available for commercial
shipment by the end of fiscal 1996. The Company shipped its first beta-site LOM
2030H in April 1996, and ceased manufacture of its first-generation LOM 2030s in
that same month. The timing of the Company's achievement of commercial levels of
production and shipment of the LOM 2030H depends upon the timing of satisfactory
completion of beta-site testing of the LOM 2030H, and there can be no assurance
that such testing will be completed in a timely manner. In fact, testing to date
has revealed that there may be some areas in which additional testing and
refinements will be required; however, the extent of such testing is uncertain
at this time. While the Company anticipates the completion of such testing by
the end of fiscal 1996, it is possible that commercial levels of production of
the LOM 2030H may not be achieved until the end of the first quarter of fiscal
1997.
The Company has experienced significant quarterly fluctuations in operating
results and it expects that fluctuations in revenue and expenses will continue.
During the transition to sales of the LOM 2030H, operating results may be
negatively affected to the extent that the Company is unable to maintain its
current sales levels of existing LOM systems. During the transition to sales of
its LOM 2030H, the Company will be dependent upon sales of LOM 2030s in
inventory, LOM 1015s, and sales of related materials and services to existing
customers, and there can be no assurance that any such sales will be made.
Because the Company's sales consist of relatively few transactions involving LOM
systems priced at approximately $100,000 to $225,000 each, each future sale may
comprise a material portion of the Company's sales in the quarter in which a
sold LOM system is shipped. In addition, the Company recently restructured its
sales department by appointing a new vice president of worldwide sales. The
effect of these sales department changes, if any, could also have an adverse
effect on sales during the transition to sales of the LOM 2030H. A decrease in
the number of shipments during any quarter due to the transition to the LOM
2030H or due to changes in sales personnel could have a material effect on the
operating results of the Company.
8
<PAGE>
RESULTS OF OPERATIONS
Net Sales. The Company's gross sales include sales of LOM systems,
materials used in the LOM process, and services, which consist primarily of
contracts for the repair and maintenance of installed LOM systems. Net sales
consist of gross sales less the amount of discounts, returns and allowances,
plus any income in excess of costs incurred on research and development grants.
Net sales for the three months ended April 30, 1996, were approximately
$3,426,000, an increase of approximately $167,000, or 5.1%, compared to net
sales of approximately $3,259,000 for the three months ended April 30, 1995.
This increase was primarily a result of an increase in the sales of materials
and services for the three months ended April 30, 1996, which increased by
approximately $231,000, or 48.8%, over sales of materials and services during
the three months ended April 30, 1995, due primarily to the growing number of
LOM systems placed with customers requiring materials and services and which was
partially offset by a decrease in sales revenue as a consequence of a change in
the mix of LOM systems sold.
Net sales for the nine months ended April 30, 1996, were approximately
$10,464,000, an increase of approximately $2,190,000, or 26.5%, compared to net
sales of approximately $8,274,000 for the nine months ended April 30, 1995.
Approximately $1.4 million of this increase is a result of the sale of 49 LOM
systems during the nine months ended April 30, 1996, as compared to 45 during
the nine months ended April 30, 1995. Though the Company sold only four more LOM
systems in the nine months ended April 30, 1996 than in the comparable period
for 1995, the Company's net sales increased overall due to several factors.
During fiscal 1996, the Company raised its sales price per machine by
approximately 10% to 25%. Also, foreign sales typically have higher margins than
domestic sales and during the nine months ended April 30, 1996, foreign sales
accounted for approximately 60% of the Company's sales, compared to
approximately 30% of sales for the nine months ended April 30, 1995. In
addition, 67.3% of the Company's LOM system sales in fiscal 1996 were sales of
the LOM 2030 system, as compared to 62.2% of sales in fiscal 1995, and the LOM
2030 system sells for a substantially higher price than the LOM 1015. Also,
sales of materials and services for the nine months ended April 30, 1996
increased by approximately $819,000, or 66.5%, over sales of materials and
services during the nine months ended April 30, 1995, due primarily to the
growing number of LOM systems placed with customers requiring materials and
services.
9
<PAGE>
<TABLE>
<CAPTION>
Product Mix Percentage:
- - -----------------------
Nine Months Ended
--------------------------------
April 30, 1995 April 30, 1996
-------------- --------------
<S> <C> <C>
LOM Systems 85.1% 80.4%
Materials and Service 14.9% 19.6%
LOM System Units Sold During
- - ----------------------------
the Periods Indicated:
- - ----------------------
<CAPTION>
LOM LOM
1015s 2030s
-------------- --------------
<S> <C> <C>
Three Months ended April 30, 1995 6 11
Three Months ended April 30, 1996 7 10
Nine Months ended April 30, 1995 17 28
Nine Months ended April 30, 1996 16 33
</TABLE>
As of April 30, 1996 and 1995, the Company had deferred gross profit in the
amount of approximately $384,000, relating to shipment of LOM systems subject to
agreements providing the customer the right to exchange such systems for
upgraded versions. This amount remained constant because the Company did not
enter into any additional agreements with such provisions and did not deliver
any of the upgraded versions during the nine months ended April 30, 1996.
Gross Profit. Cost of sales consists primarily of the costs of labor, raw
materials and overhead used in the production of the Company's rapid prototyping
systems. Gross profit for the three months ended April 30, 1996, was
approximately $1,622,000, a decrease of approximately $252,000, or 13.4%,
compared to gross profit of approximately $1,874,000 for the three months ended
April 30, 1995. Gross profit as a percentage of sales decreased from 57.5% in
the three months ended April 30, 1995, to 47.4% in the three months ended April
30, 1996. Gross profit for the nine months ended April 30, 1996 was
approximately $5,104,000, an increase of approximately $393,000, or 8.3%,
compared to gross profit of approximately $4,711,000 for the nine months ended
April 30, 1995. Gross profit as a percentage of sales decreased from 56.9%
during the nine months ended April 30, 1995, to 48.8% during the nine months
ended April 30, 1996.
The decrease in gross profit as a percentage of sales was attributable
primarily to higher costs of material and labor for the LOM 2030 systems in
1996. The decrease was also partly due to lower margins normally experienced on
sales of materials and services, which increased to 20.6% of net sales during
the three months ended April 30, 1996, compared to 14.7% of net sales during the
three months ending April 30, 1995, and to 19.6% of net sales during the nine
months ended April 30, 1996, as compared to 14.9% of net sales during the nine
months ended April 30, 1995. To the extent that the Company's sales continue to
consist of a greater percentage of LOM 2030s,
10
<PAGE>
including the LOM 2030H, as compared to LOM 1015s, and as the increase in sales
of materials and services continue to outpace the increase in total net sales,
the Company's gross profit margins are unlikely to increase, and there can be no
assurance that the Company will be able to maintain current levels of gross
profit on sales of its LOM 2030H system.
Selling, General and Administrative Expense. Selling, general and
administrative expense consists primarily of commissions, sales and
administrative salaries, office expenses and general overhead. Selling, general
and administrative expense for the three months ended April 30, 1996, was
approximately $1,065,000, an increase of approximately $210,000, or 24.6%,
compared to approximately $855,000 for the three months ended April 30, 1995.
Selling, general and administrative expense for the nine months ended April
30, 1996, was approximately $3,038,000, an increase of approximately $663,000,
or 27.9%, compared to approximately $2,375,000 for the nine months ended April
30, 1995. The increase for both the three-month and nine-month periods resulted
primarily from the fact that seven additional selling, general and
administrative employees (representing a 29.2% increase in the number of such
employees) were added to the Company's staff during the nine months ended April
30, 1996. Of these seven employees, two were added to the MIS department, two
to the finance department and three to the human resources department.
Increased spending also occurred in the areas of advertising, promotions, trade
shows, legal, accounting, and costs associated with increasing the Company's
presence in Europe.
Research and Development Expense. Research and development expense
consists of engineering costs incurred in the development and enhancement of LOM
systems and new materials research. Research and development expense also
includes costs expended to secure government grants, which the Company uses to
subsidize certain research activities. To the extent that grants are awarded to
the Company, the costs incurred in performing the grant are offset by income
received from the grant. Any income in excess of costs incurred is reflected in
net sales. Research and development expense for the three months ended April
30, 1996 was approximately $494,000, an increase of approximately $301,000, or
156.0%, compared to approximately $193,000 for the three months ended April 30,
1995. The increase was primarily due to the hiring of additional research and
development personnel to perform research and development.
Research and development expense for the nine months ended April 30, 1996
was approximately $1,333,000, an increase of approximately $537,000, or 67.5%,
compared to approximately $796,000 for the nine months ended April 30, 1995.
This increase resulted primarily from the fact that during the nine months ended
April 30, 1996, the Company hired 11 additional research and development
employees, representing an 84.6% increase in the number of such employees, to
perform research and development activities. In addition, approximately 50% of
the research and development costs incurred in fiscal 1996 have been expended
towards the development of the next generation LOM system, the LOM 2030H, as
well as the testing of new materials.
Other Income (Expense). Other expense for the three months ended April 30,
1996, was approximately $36,000, compared to other expense of approximately
$33,000 for the
11
<PAGE>
three months ended April 30, 1995. The change was primarily due to interest
paid on indebtedness incurred during the three months ended April 30, 1996,
which was offset by approximately $11,000 of interest income on investments.
Other expense for the nine months ended April 30, 1996, was approximately
$126,000, compared to other expense of approximately $76,000 for the nine months
ended April 30, 1995. The change was primarily due to interest paid on
indebtedness incurred during the nine months ended April 30, 1996, and such
interest payments were not fully reflected in the nine months ended April 30,
1995.
Provision for Income Taxes. The effective tax rate for the three
months ended April 30, 1996, was 25.8% as compared to 34.4% for the three
months ended April 30, 1995. The change for the three months ended April 30,
1996 was primarily due to approximately $11,000 of tax-exempt interest earned
during the period.
The effective tax rate for the nine months ended April 30, 1996, was
approximately 40.0% as compared to approximately 34.5% for the nine months ended
April 30, 1995.
LIQUIDITY AND CAPITAL RESOURCES
The Company used cash of approximately $1,125,000 in operations during the
nine months ended April 30, 1996, and generated cash from operating activities
of approximately $1,162,000 during the nine months ended April 30, 1995. The
change in operating cash flows is due to increases in inventories and accounts
receivable, a decrease in customer deposits and a decrease in net income.
Working capital was approximately $847,000 at July 31, 1995, compared to
approximately $6,832,000 at April 30, 1996. This increase was primarily due to
the proceeds from the Company's initial public offering.
Cash used in investing activities, which includes purchases of investments
and property, plant and equipment, was approximately $4,504,000 and $585,000 for
the nine months ended April 30, 1996, and April 30, 1995, respectively. During
the nine months ended April 30, 1995, the Company purchased its facility in
Torrance, California, and certain manufacturing equipment. During the nine
months ended April 30, 1996, the
12
<PAGE>
Company purchased additional manufacturing equipment, office furniture and
fixtures and invested proceeds from its initial public offering.
On March 12, 1996, the Company consummated its initial public offering of
1,200,000 shares of Common Stock and received net proceeds of approximately
$6,000,000, prior to the payment of legal, accounting and other fees incurred in
connection therewith. As of April 30, 1996, approximately $4,300,000 of the
proceeds have been invested in short-term, AAA rated bonds or bond funds. In
addition, the Company has ordered approximately $200,000 worth of office
furniture and equipment. The remaining proceeds of this offering are expected to
be used to pay off certain expenses incurred in connection with the offering,
and for general working capital purposes.
In connection with the initial public offering, the Company and a
stockholder of the Company granted the Company's underwriters a 45-day option to
purchase up to 170,000 and 10,000 additional shares of common stock
respectively, to cover over-allotments, if any, on the terms and conditions as
set forth in the Company's Prospectus on April 23, 1996. The Company issued
66,111 shares to its underwriters upon exercise of this option, and received net
proceeds of approximately $330,000.
The Company has a secured $3,000,000 revolving credit facility with City
National Bank bearing interest at prime plus one-half of one percent per annum.
This revolving credit facility is collateralized by substantially all of the
assets of Company, except for the Company's building and land, and matures in
April 1997. As of July 31, 1995, and April 30, 1996, the Company had no
outstanding borrowings under its revolving credit facility.
The Company believes that the net proceeds of its public offering and
exercise of the over-allotment option, together with funds from operations and
the Company's revolving credit facility, will be sufficient to meet its capital
needs for existing operations and future anticipated growth of the Company for
the next 12 to 18 months. To the extent that such amounts are insufficient to
finance the Company's working capital requirements, the Company will be required
to raise additional funds through public or private equity or debt financing.
There can be no assurance that such additional financing will be available, if
needed, or, if available, will be on terms satisfactory to the Company.
Significant additional dilution may be incurred by investors in this offering as
a result of additional financing.
FORWARD-LOOKING STATEMENTS
This 10-QSB report contains forward-looking statements that involve risk
and uncertainties. As discussed in the Company's Form SB-2, the Company's
future operating results are uncertain and may be impacted by the following
factors, among others: uncertainty of market acceptance of the LOM 2030H,
uncertainty of the timing of the achievement of commercial levels of production
and sales of the LOM 2030H, uncertainty of the effects of the recent
restructuring of the Company's sales department and consequent appointment of a
new vice president of worldwide sales, potential development of similar
13
<PAGE>
products by competitors, and potential future capital requirements and
uncertainty of additional funding.
PART II.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS
Number Description
------ -----------
27.1 Financial Data Schedule
(B) REPORTS ON FORM 8-K
The Company filed no reports on Form 8-K during the quarter ended
April 30, 1996.
14
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
HELISYS, INC.
Date: June 12, 1996 By: /s/ Dave T. Okazaki
-----------------------
Dave T. Okazaki
Chief Financial Officer
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<RESTATED>
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