United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the Period of Three Months Ended June 30, 1999.
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the Transition Period From to
Commission file number 000-21725
The Translation Group Ltd.
--------------------------
(Exact name of registrant as specified in its charter)
Delaware State 23-3382869
- -------------- ----------
(I.R.S. Employer
Identification No.)
30 Washington Avenue
Haddonfield, NJ 08033
------------------ -----
(Address of principal executive offices) (Zip Code)
Indicated by check mark whether the registrant (I) has filed all reports
required to be filed by Section 13 of 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter periods 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 _
Applicable Only to Issuers Involved in Bankruptcy
Proceeding During the Preceding Five Years
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by the court. YES [ ] NO [ ]
Applicable Only to Corporate Issuers
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date:
Common Stock, .001 Par Value-Issued 2,260,340 shares as of June 30, 1999.
<PAGE>
INDEX
<TABLE>
<S> <C>
Part I. Financial Information
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets - June 30, 1999 and March 31, 1999
Condensed consolidated statements of operations - Three months
ended June 30, 1999 and 1998
Condensed consolidated statements of comprehensive operations
- Three months ended June 30, 1999 and 1998
Condensed consolidated statements of cash flows - Three months
ended June 30, 1999 and 1998
Notes to condensed consolidated financial statements - June 30, 1999
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Part II. Other Information
Item 1. Legal Proceeding
Item 2. Changes in Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports of Form 8-K
Signatures
</TABLE>
<PAGE>
The Translation Group, Ltd.
and Subsidiaries
Consolidated Balance Sheets
As of June 30, 1999 (unaudited) and March 31, 1999 (unaudited)
<TABLE>
<CAPTION>
June 30, 1999 March 31, 1999
------------- --------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $1,324,749 $1,895,970
Accounts receivable, net of allowance for doubtful
accounts of $49,648 and $71,140, respectively 1,271,429 857,261
Work in process 195,572 390,780
Certificate of deposit, pledged 112,318 106,540
Other current assets 411,479 350,337
-------- -------
Total current assets 3,315,547 3,600,888
Property and equipment, net of accumulated depreciation and
amortization of $1,085,816 and $773,878, respectively 1,515,968 1,007,719
Excess of purchase price over fair value of net assets acquired, net of
accumulated amortization of $239,001 and $169,547, respectively 3,969,012 1,249,717
Loans and receivables from officers 149,500 149,500
Other assets 109,111 128,017
-------- -------
TOTAL ASSETS $9,059,138 $6,135,841
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 513,978 $ 451,631
Notes payable, banks 81,854 196,672
Current maturities of long-term obligations 95,748 123,630
Acquisition note payable 885,390
Obligations under capital leases 23,386
Loans payable to officers 107,928
Accrued liabilities 418,934 444,742
Deferred income 113,856 244,780
Income taxes payable 56,900
Deferred income taxes 33,100 -
------- -
Total current liabilities 2,331,074 1,461,455
Long-term obligations, less current maturities 185,661 178,254
Deferred income taxes 108,200 -
---------- -
TOTAL LIABILITIES 2,624,935 1,639,709
Commitments and contingencies
Common stock redeemable (under certain conditions) at the option of purchasers,
416,668 shares issued and outstanding 2,578,745
Stockholders' equity:
Preferred stock, $.001 par value, 1,000,000 authorized,
no shares issued and outstanding - -
Common stock, $.001 par value, 15,000,000 shares authorized, 2,260,340 shares
issued and to be issued not including 416,668 above and 2,278,340 shares
outstanding and to be issued, respectively 2,260 2,278
Additional paid-in capital 5,917,003 6,051,985
Unearned portion of compensatory warrants - (45,000)
Retained earnings (1,977,536) (1,467,025)
Common stock in treasury, 8,000 shares (68,032) (68,032)
Foreign currency translation adjustment (18,237) 21,926
Total stockholders' equity 3,855,458 4,496,132
---------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $9,059,138 $6,135,841
=========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
The Translation Group, Ltd.
and Subsidiaries
Consolidated Statements of Operations
For the three months ended June 30, 1999 and 1998 (unaudited)
<TABLE>
<CAPTION>
3 months 3 months
June 30, June 30,
1999 1998
---- ----
<S> <C> <C>
Revenue $ 1,876,295 $ 2,042,783
Cost of revenue 1,297,705 1,082,599
----------- -----------
Gross profit 578,590 960,184
Cost and expenses:
Selling, general and administration 578,079 368,857
Research and development 39,980 60,000
Corporate administration 340,209 176,320
Amortization of excess of purchase price over
fair value of net assets acquired 69,454 24,221
----------- -----------
Total 1,027,722 629,398
----------- -----------
(Loss) income before other income (expense) (449,132) 330,786
Other income (expense):
Interest income 25,948 51,961
Interest expense (27,476) (14,761)
Foreign currency gains (losses) 1,588 -
----------- -----------
60 37,200
----------- -----------
(Loss) income before provision for income taxes (449,072) 367,986
Provision for income taxes - 159,700
=========== ===========
Net (loss) income $(449,072) $ 208,286
=========== ===========
Net (loss) income per common share outstanding - basic $ (0.18) $ 0.09
- diluted ============ ===========
$ (0.18) $ 0.09
============ ===========
Weighted-average shares - basic 2,524,810 2,278,340
Dilutive effect of potential common shares - -
----------- -----------
Weighted-average shares - diluted 2,524,810 2,278,340
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
The Translation Group, Ltd.
and Subsidiaries
Consolidated Statements of Comprehensive Operations
For the three months ended June 30, 1999 and 1998 (unaudited)
3 months 3 months
June 30, June 30,
1999 1998
---- ----
Net (loss) income $ (449,072) $ 208,286
Other comprehensive income (loss)
Currency translation adjustment (40,163) 2,903
----------- ----------
Comprehensive income (loss) $ (489,235) $ 211,189
=========== =========
<PAGE>
The Translation Group, Ltd.
and Subsidiaries
Consolidated Statements of Cash Flows
For the three months ended June 30, 1999 and 1998 (unaudited)
<TABLE>
<CAPTION>
June 30, June 30,
1999 1998
---- ----
<S> <C> <C>
Cash flows provided by (used in) operating activities:
Net (loss) income $ (449,072) $ 208,286
Adjustments to reconcile net (loss) income to net cash
provided by (used in) operating activities:
Depreciation and amortization 96,640 71,279
Amortization of excess purchase price over fair value of net assets acquired 69,454 24,221
Amortization of discount on acquisition note payable 11,690
Amortization of compensatory warrants 45,000 45,000
Deposits 3,595
Deferred income taxes 29,202
Changes in operating assets and liabilities:
Accounts receivable 333,411 126,405
Work in process 195,208 (53,929)
Other current assets (59,142) (103,165)
Other assets 11,317
Accounts payable (115,653) (65,989)
Notes payable (220,098) 180,130
Accrued liabilities and deferred income (186,732) (316,748)
Accrued income taxes - 130,213
---------- ----------
Net cash provided by (used in) operating activities (267,977) 278,500
Cash flows provided by (used in) investing activities:
Purchase of property and equipment (243,422) (105,889)
Acquisition costs, net of cash purchased of $67,922 (4,328)
Investment in certificate of deposit (5,778) (6,540)
Loans and advances to officers (61,000) -
Investments in US Government obligations - 172
---------- ----------
Net cash provided by (used for) investing activities (314,528) (112,257)
Cash flows provided by (used in) financing activities:
Net proceeds from issuance of common stock 75,000
Net proceeds from long-term debt (18,750)
Payments on long-term obligations (23,553) -
---------- ----------
Net cash provided by (used in) financing activities 51,447 (18,750)
Foreign currency translation adjustment (40,163) 2,903
---------- ----------
Net (decrease) increase in cash and cash equivalents (571,221) 150,396
Cash and cash equivalents, beginning of period 1,895,970 1,297,039
---------- ----------
Cash and cash equivalents, end of period $ 1,324,749 $ 1,447,435
============= ============
Supplemental disclosure of non-cash investing and financing activities:
On May 1, 1999, the Company acquired the stock of Planet Access
Networks, Inc. as described in Note A.
Supplemental disclosure of cash flow information: Cash paid during the year
for:
Interest $ 27,476 $ 14,761
========= ========
Income taxes $ 500 $ 602
========= ========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 1999 (Unaudited)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three month period ended June 30, 1999
are not necessarily indicative of the results that may be expected for the year
ended March 31, 2000.
As of May 1, 1999, the Company acquired all the issued and outstanding shares of
Planet Access Networks, Inc. (Planet) for 416,668 shares of its common stock and
cash in the amount of $900,000, payable on September 15, 1999. The Company has
agreed to give each of the four sellers the right to require the Company to
repurchase the Company's shares, within 90 days of the first anniversary of the
acquisition, at a price of $7.00 per share if certain conditions are not met.
The Company has accounted for its acquisition of Planet under the purchase
method of accounting, wherein the purchase price is allocated to the assets and
liabilities as of the acquisition date based on estimated respective fair
values. The excess of purchase price over fair value of net assets acquired is
being amortized over 10 years. The condensed consolidated statements of
operations for the three month period ended June 30, 1999 includes the
operations of Planet for the period from May 1, 1999 to June 30, 1999. Reference
is made to the consolidated financial statements and footnotes thereto included
in the Company's Annual Report for the year ended March 31, 1999, Form 10-K. Had
the Company acquired Planet as of April 1, 1998, the profit / (loss) from
operations and earnings per share would have been ($326,255) and ($.13)
respectively for the three months ended June 30, 1999 and $222,077 and $ .10 for
the three months ended June 30, 1998.
NOTE B - EARNINGS PER SHARE
For the purpose of computing earnings per share, average shares outstanding
during the three months ended June 30, 1999 and 1998 was 2,524,810 and
2,278,340, respectively. In addition, there are outstanding common stock
options of 1,429,000 shares at an average price of approximately $5.25 per
share and 2,146,660 warrants to purchase common stock of the Company at an
average price of approximately $6.00 per share. The computations of earnings
per share reflecting the exercise of these options and warrants are
antidilutive.
NOTE C - RETAINED EARNINGS
Retained earnings for the three months ended June 30, 1999 includes a charge for
$61,440 for amortization of the discount on the issuance of common stock for the
purchase of Planet. The earnings per share for the three months ended June 30,
1999 including this charge is ($ .20).
NOTE D - SEGMENT INFORMATION
The sales of BTS and Planet (domestic subsidiaries) originate in the United
States to domestic and foreign customers. Translation/localization is in
Japanese, Chinese, and other languages of the Asian rim, as well as European
languages and Canadian French. The sales of Word House (foreign subsidiary)
originate in Europe and are almost entirely in Dutch, French, and other European
languages.
Segment reporting, for the three months ended June 30, 1999, of net loss before
income taxes, interest, and amortization of excess of purchase price (stated in
thousands):
United
States Europe Parent Eliminations Total
------ ------ ------ ------------ -----
Revenue $1,173 $ 706 $ 135 $ (138) $1,876
Cost of revenue 855 446 -0- (3) 1,298
--- --- --- --- -----
Gross profit 318 260 135 (135) 578
Selling, general and
administrative 451 255 -0- (135) 571
Corporate administration -0- -0- 340 340
Special projects and
research and development 46 -0- -0- -0- 46
-- --- --- --- --
Net loss before income
taxes, interest, and
amortization of excess
of purchase price $ (179) $ 5 $ (205) $ (379)
------- ---- ------- -------
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Except for historical information, the material contained in
Management's Discussion and Analysis of Financial Condition and Results of
Operations is forward-looking. For the purpose of the safe harbor provisions for
forward-looking statements of the Private Securities Litigation Reform Act of
1995, readers are urged to review the Company's Annual Report on Form 10-KSB for
the year ended March 31, 1999 for a list of certain important factors that may
cause actual results to materially differ from those described below.
OVERVIEW
The Company translates conventional documents and software written in
one language into other languages, and specializes in providing high tech
translation and localization services, principally in the Information Technology
("IT") sector of the translation market.
The Company has recently launched research programs directed toward the
development of computer-based machine translation systems. These new powerful
information tools will provide the basis for the development of new products.
The basic business model is to accelerate technical developments, together with
product marketing and sales, to create unique translation products for special
niche markets. The Company believes that this strategy will result in
significant increases in revenues and profitability.
Thus, the Company is changing from a translation and localization
service provider, generally using human resources and industry-available
technology and software tools, to a Company with its own uniquely developed
translation and localization technologies. During the past year, the Company
experimented with various projects to coordinate customers, technology changes,
and its own facilities with the growing markets. The Company believes that a
basic change from a labor intensive process to a technology driven process is
required in the industry. Therefore, the Company has been in transition while
developing its own software systems through its strategic technology
relationships with Gedanken, Inc. and ESTeam AB to produce specialized automated
translation products for the financial, medical/pharmaceutical, environmental,
information technology and telecommunication fields.
In addition, the Company has recognized the need to develop an
internet/intranet capability to deliver its translation and localization
services. As of May 1, 1999, the Company acquired all of the outstanding shares
of Planet Access Networks, Inc. ("Planet Access"), which develops and hosts
sophisticated e-commerce web sites. The acquisition of Planet Access was
accounted for under the purchase method of accounting, pursuant to which the
Company consolidated the results of operations of Planet Access from the date of
acquisition (May 1, 1999).
<PAGE>
RESULTS OF OPERATIONS
Revenues. Revenues for the fiscal quarter ended June 30, 1999 (the
"Current Quarter") declined $166,000, or 8%, to $1,876,000 from $2,043,000 in
the fiscal quarter ended June 30, 1998 (the "Comparable Quarter"). This decline
in revenues was principally due to a decline of $1,314,000 in revenues during
the Current Quarter in the Company's United States translation and localization
services due to completion of a substantial project during 1998 which accounted
for substantial revenues in the Comparable Quarter, continued softness in the
Asian economies which has caused clients to postpone projects intended for sale
in those markets, and increased competition in the software translation markets.
To address these issues, the Company has hired additional salesmen and the
dollar value of current quotes outstanding has increased 90% in the Current
Quarter over the Comparable Quarter. However, due to the competitive conditions
in the translation markets, increased quotes do not necessarily result in
immediate increases in sales.
The Company's future results of operations will also benefit from the
acquisition of Planet Access, which was consolidated with the Company for only
two months of the Current Quarter. Planet Access' business has continued to
experience substantial growth, with revenues increasing in the Current Quarter
by 111% over its results during the Comparable Quarter. Planet Access recently
received a multi-million dollar contract to develop the next-generation
e-commerce product comparison site for brandwise, LLC. brandwise is a
newly-established e-commerce comparison shopping service founded by Hearst
Corp., Whirlpool Corp. and The Boston Consulting Group.
Gross Profit. Gross profit decreased from $960,000 in the Comparable
Quarter, or 47% of sales, to $579,000 in the Current Quarter, or 31% of sales.
The decrease in gross profit was partially caused by higher staffing levels in
its United States translation operations, which anticipated a number of projects
which were delayed by customers. To address this issue, the Company recently
reduced staffing levels at the United States translation operations. In the
longer term, the Company also is seeking to improve gross profits by investing
in better machine translation systems, which should reduce costs, and by
developing specialized automated translation products for the financial,
medical/pharmaceutical, environmental, information technology and
telecommunication fields, which should provide a greater gross margin. Gross
margin will also increase as Planet Access, with its higher gross margin, is
consolidated with the Company's translation and localization businesses.
Selling, General and Administration. Selling, general and
administration ("SG&A") expenses increased by 57% to $578,279 during the Current
Quarter from $368,857 in the Comparable Quarter. This increase in SG&A expenses
reflects increased marketing expenditures and substantial expenditures to
develop the specialized automated translation products referred to above.
Net Income (Loss). The Company incurred a net loss of $449,072 during
the Current Quarter, as compared to a profit of $208,286 during the Comparable
Quarter. The net loss in the Current Quarter was caused by the decreased
revenues, higher cost of sales and higher SG&A expenses discussed above.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
Historically, the Company has funded its operations with the proceeds
of its initial public offering in 1995, cash flow from operations, and bank line
of credit which is secured by a certificate of deposit. The acquisitions of the
Word House Group and Planet Access were largely financed by the issuance of the
Company's common stock as the major component of the consideration.
The change in the Company's strategic direction towards development of
advanced machine translation systems and facilitation of a web-based strategy
has substantially increased the Company's working capital requirements to the
point that cash flow from operations are insufficient to sustain the Company at
its current level of activity.
During the Current Quarter, the Company used $429,070 in operations,
consisting principally of the net loss (adjusted for non-cash charges) and a
substantial increase in accounts receivable, principally at Planet Access, which
is experiencing substantial growth in its working capital requirements while its
business grows.
Cash used in investment activities in the Current Quarter increased by
approximately $388,000 from the Comparable Quarter to approximately $500,000 by
virtue of the capital expenditure of approximately $600,000 to purchase
equipment, offset by repayment of $107,000 in loans to officers.
During the next twelve months the Company anticipates a need for a
substantial increase in its capital resources. During the next twelve months,
the Company will require payment of $240,000 in developments expenses for the
machine translation systems, $600,000 for product launch of its Financial
Express product, and $900,000 in payment of the deferred purchase price of the
acquisition of Planet Access. In addition, in April 2000 the Company potentially
will be required to repurchase from the historic shareholders of Planet Access
for $2,917,000 the Company shares issued in the transaction if the shares are
not listed on a securities exchange or on NASDAQ and the value per share at the
time is not at least $7.00.
Cash flow from operations, together with currently-available resources,
will be insufficient to meet these obligations. The Company recently retained
one investment banking firm to assist it in developing a financing plan to fund
its need for additional capital. The Company will likely be exploring a range of
financing options, including the public or private issuance of debt or equity
securities. In addition, the Company retained another firm to seek a strategic
partner for one or more of its businesses. Although the Company is actively
pursing each of these alternatives and believes that it will be able to will be
able to obtain the required financing, there can be no assurance that it will be
successful in completing the financing required by its business plan on
commercially acceptable terms, if at all. If the Company were to be unable to
obtain financing for its business plan, it would be required to reduce the
number of projects in development and/or sell or discontinue existing
operations.
<PAGE>
YEAR 2000 ISSUE
The Year 2000 Issue is the result of computer programs being written
using two digits rather than four to define the applicable year. The Company's
computer programs or hardware that have date-sensitive software or embedded
chips may recognize a date using "00" as the year 1900 rather than the year
2000. This could result in a system failure or miscalculations causing
disruptions of operations, including, among other things, a temporary inability
to process transactions, send invoices, or engage in similar normal business
activities.
The Company's plan to resolve the Year 2000 Issue involves the
following four phases: assessment, remediation, testing and implementation. To
date, the Company has completed its assessment of all systems that could be
significantly affected by the Year 2000. The Company is primarily in the
business of providing services but those services are supported by the use of
computer hardware and software systems in the production of a substantial
portion of those services. The Company's vendors consist primarily of individual
translators and other service professionals who are not expected to be
materially impacted by the Year 2000 Issue. The Company is also dependent upon
third party suppliers for utility services and telecommunications capabilities.
The Company has its primary locations in geographically diverse locations in
North America, Europe and Asia. If one of the Company's locations should be
unable to operate due to the Year 2000 Issue affecting one of its third party
supplies, the Company believes that replacement services could be rendered from
another of the Company's locations.
The Company has not yet completed a comprehensive study as to whether
its third party suppliers and strategic partners are Year 2000 compliant. It is
in the process of gathering information bout the Year 2000 status and will
continue to assess and monitor their compliance.
STATUS
The Company has completed a full evaluation of all of its systems, the
Company has began the remediation phase and believes it is 60% complete with the
information already obtained in the evaluation process. The Company expects to
have all critical systems and hardware replaced before October 1, 1999.
Following these replacements, the Company plans to test all equipment and
software. The testing phase will be completed no later than November 1, 1999.
During the period of testing the critical systems, any system or piece of
equipment that is found to be non-compliant, will be retired and replaced. The
Company does not expect the cost to replace such equipment to be material.
THIRD PARTIES
The Company has queried its significant supplies and strategic partners
that do not share information systems with the Company, but has not received
answers to all of its queries. To date, the Company is not aware of any of these
third parties with a Year 2000 Issue that would materially impact the Company's
results of operations, liquidity, or capital resources. However, the Company has
no means of ensuring that they will be Year 2000 ready. The inability of those
third parties to complete their Year 2000 resolution process in a timely fashion
is not expected to materially impact the Company. The Company believes that it
could partially compensate for the failure of those third parties to comply by
utilizing its operations in other geographic locations to meet the client
requirements or by using alternate suppliers.
<PAGE>
COSTS
The Company will utilize primarily internal resources to reprogram,
replace, test and implement the software and operating equipment for required
Year 2000 modifications. The total costs of the Year 2000 project is estimated
at $85,000 and is being funded through operating cash flows. To date the Company
has incurred approximately ($25,000 expensed and $10,000 capitalized for new
equipment), related to all phases of the Year 2000 project. Of the total
estimated remaining project costs, approximately $30,000 is related to [software
up-grades]. The remaining $20,000 will be spent for testing and monitoring of
remaining systems.
RISKS
Management believes it has an effective program in place to resolve the
Year 2000 Issue in a timely manner. As noted above, the Company has not yet
completed all necessary phases of its Year 2000 program. In the event that the
Company does not complete any additional phases, the Company's ability to
produce certain orders may be negatively impacted. More importantly, disruptions
resulting from Year 2000 Issues in the world economy in geographies where the
Company or its clients have significant operations could adversely affect the
Company.
The Company may be unable to meet services commitments due to computer
system failure. The amount of potential liability, lost revenue, and damages
cannot be reasonably estimated at this time.
CONTINGENCY PLANS
The Company currently has no contingency plans in place in the event it does not
complete all phases of the Year 2000 program because of the planned changes. The
Company plans to reevaluate its status of completion in October 1999 and
determine whether such a plan is necessary
<PAGE>
PART II - OTHER INFORMATION
Item I. Legal Proceeding - none
----------------
Item 2. Changes In Securities - none
---------------------
Item 3. Defaults Upon Senior Securities - n.a.
-------------------------------
Item 4. Submission Of Matters To A Vote Of Security Holders - none
---------------------------------------------------
Item 5. Other Information - none
-----------------
Item 6. Exhibits And Reports Of Form 8-K -
(a) Exhibit
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
May 27, 1999 announcing the appointment of Wiss & Co. as Independent
Auditors
June 14, 1999 announcing the acquisition of Planet Access Networks, Inc.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
The Translation Group, Ltd.
Dated August 16, 1999 /s/ Charles D. Cascio
--------------- ---------------------------
Charles D. Cascio
President & CEO
Dated August 16, 1999 /s/ Charles D. Cascio
--------------- ---------------------------
Charles D. Cascio
Principal Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Exhibit (27)
Financial Data Schedule
For Period Ended June 30, 1999
THE TRANSLATION GROUP, LTD
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIAL
STATEMENTS OF THE TRANSLATION GROUP, LTD FOR THE PERIOD ENDED JUNE 30, 1999,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 1,324,749
<SECURITIES> 0
<RECEIVABLES> 1,321,077
<ALLOWANCES> 49,648
<INVENTORY> 0
<CURRENT-ASSETS> 3,315,547
<PP&E> 2,601,784
<DEPRECIATION> 1,085,816
<TOTAL-ASSETS> 9,059,138
<CURRENT-LIABILITIES> 2,331,074
<BONDS> 0
0
0
<COMMON> 2,260
<OTHER-SE> 3,853,198
<TOTAL-LIABILITY-AND-EQUITY> 9,059,138
<SALES> 1,876,295
<TOTAL-REVENUES> 1,876,295
<CGS> 1,297,705
<TOTAL-COSTS> 1,027,222
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 24,476
<INCOME-PRETAX> (449,072)
<INCOME-TAX> 0
<INCOME-CONTINUING> (449,072)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (449,072)
<EPS-BASIC> (0.18)
<EPS-DILUTED> (0.18)
</TABLE>
