<PAGE>
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
or
[ ] TRANSITION REPORT PURSUANT SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to _______________
Commission file number: 001-12189
IMAGE GUIDED TECHNOLOGIES, INC.
----------------------------------------
(Exact name of small business issuer as
specified in its charter)
COLORADO 84-1139082
---------------------------- ----------------
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
5710-B FLATIRON PARKWAY, BOULDER, CO 80301
------------------------------------------ -----------
(Address of principal executive offices) (Zip Code)
(303) 447-0248
(Issuer's telephone number including area code)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 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: 3,693,822 shares of common stock, no
par value, were outstanding on March 31, 1998.
Transitional Small Business Disclosure Format (check one); Yes No X
--- ---
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Table of Contents
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Part Item Page
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I FINANCIAL INFORMATION
1. Consolidated Financial Statements
Consolidated Balance Sheet -- March 31, 1998 1
Consolidated Statement of Operations -- Three 2
Months Ended March 31, 1998 and 1997
Consolidated Statement of Cash Flows -- Three 3
Months Ended March 31, 1998 and 1997
Notes to Consolidated Financial Statements 4
2. Management's Discussion and Analysis or Plan
of Operation
Financial Condition and Results of Operations 4
Liquidity and Capital Resources 5
Forward-Looking Statements 6
Other Matters 8
II OTHER INFORMATION
1. Legal Proceedings 8
2. Changes in Securities 8
3. Defaults Upon Senior Securities 9
4. Submission of Matters to a Vote of Security 9
Holders
5. Other Information 9
6. Exhibits and Reports on Form 8-K 9
</TABLE>
<PAGE>
PART I -- FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
IMAGE GUIDED TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEET
MARCH 31, 1998
(Unaudited)
<TABLE>
<S> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 855,000
Accounts receivable, net of allowance for
doubtful accounts of $188,000 2,630,000
Inventories, net 1,650,000
Other current assets 361,000
------------
Total current assets 5,496,000
Property and equipment, net of accumulated
depreciation of $487,000 4,397,000
Goodwill, net of accumulated amortization of $88,000 5,708,000
Other assets 86,000
------------
Total assets $ 15,687,000
------------
------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,064,000
Accrued liabilities 575,000
Current portion of capital lease obligations 383,000
Current portion of notes payable 1,893,000
------------
Total current liabilities 3,915,000
Capital lease obligations 1,025,000
Line of credit 1,250,000
Notes payable, net of warrant discount of $338,000 2,197,000
------------
Total liabilities 8,387,000
Commitments and contingencies
Shareholders' equity:
Common Stock, no par value; 10,000,000
shares authorized; 3,693,822 shares issued and
outstanding 10,393,000
Accumulated deficit (3,093,000)
------------
Total shareholders' equity 7,300,000
------------
Total liabilities and shareholders' equity $ 15,687,000
------------
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
1
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IMAGE GUIDED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
----------------------------
1998 1997
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<S> <C> <C>
Revenue $ 3,763,000 $ 1,172,000
Cost of goods sold 2,408,000 554,000
----------- -----------
Gross profit 1,355,000 618,000
----------- -----------
Operating expenses:
Research and development 418,000 191,000
Selling and marketing 284,000 161,000
General and administrative 807,000 255,000
----------- -----------
Total operating expenses 1,509,000 607,000
----------- -----------
Operating income (loss) (154,000) 11,000
Other income (expense):
Interest and other expense (221,000) (4,000)
Interest and other income 49,000 68,000
----------- -----------
Net income (loss) $ (326,000) $ 75,000
----------- -----------
----------- -----------
Earnings (loss) per share:
Basic $ (0.09) $ 0.02
Diluted $ (0.09) $ 0.02
Weighted average common shares outstanding:
Basic 3,693,822 3,106,024
Diluted 3,693,822 3,609,054
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
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IMAGE GUIDED TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
---------------------------
1998 1997
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<S> <C> <C>
Operating Activities:
Net income (loss) $ (326,000) $ 75,000
Adjustments to reconcile net income
(loss) to net cash provided by (used in)
operating activities:
Depreciation and amortization 272,000 33,000
Provision for doubtful accounts 12,000 4,000
Provision for inventory obsolescence (2,000) 19,000
Changes in operating assets and liabilities:
Accounts receivable 24,000 (305,000)
Inventories (17,000) (38,000)
Other current assets and other assets (41,000) (16,000)
Accounts payable 76,000 (170,000)
Accrued liabilities 81,000 (67,000)
----------- -----------
Net cash provided by (used in) operating
activities 79,000 (465,000)
----------- -----------
INVESTING ACTIVITIES:
Additions to property and equipment (107,000) (51,000)
----------- -----------
Net cash used in investing activities (107,000) (51,000)
----------- -----------
FINANCING ACTIVITIES:
Payments of debt (227,000) --
Initial public offering expense -- (1,000)
Principal payments on capital leases (106,000) (4,000)
----------- -----------
Net cash used in financing activities (333,000) (5,000)
----------- -----------
Net decrease in cash and cash equivalents (361,000) (521,000)
Cash and cash equivalents at beginning
of period 1,216,000 5,240,000
----------- -----------
Cash and cash equivalents at end of period $ 855,000 $ 4,719,000
----------- -----------
----------- -----------
SUPPLEMENTAL CASH FLOW DISCLOSURES
Interest paid $ 182,000 $ 3,000
SUPPLEMENTAL NON-CASH INVESTING AND
FINANCING ACTIVITIES
Warrants issued in conjunction with debt $ 119,000 --
Equipment financed through accounts payable $ 75,000 --
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
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IMAGE GUIDED TECHNOLOGIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. Basis of Presentation
The accompanying consolidated financial statements of Image Guided
Technologies, Inc. (the "Company") are unaudited. However, in the opinion of
management, such statements reflect all adjustments, consisting of only
normal recurring adjustments, necessary for a fair presentation. Interim
results of operations are not necessarily indicative of results for the full
year.
The consolidated financial statements include the accounts of the
Company and its wholly owned subsidiary from the date of acquisition. All
significant intercompany accounts and transactions have been eliminated in
consolidation.
2. Inventories
Inventories are comprised of the following at March 31, 1998:
<TABLE>
<S> <C>
Raw materials $ 555,000
Work-in-process 441,000
Finished goods 712,000
-----------
1,708,000
Less allowance for obsolescence (58,000)
-----------
$ 1,650,000
-----------
-----------
</TABLE>
3. Earnings per Share
In February 1997, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards No. 128, "Earnings Per
Share" ("SFAS 128"). The Company's adoption of SFAS 128, on December 31,
1997, resulted in the restatement of the Company's "primary" earnings per
share calculations to "basic" earnings per share and "fully diluted" earnings
per share calculations to "diluted" earning per share for all periods
presented. Basic earnings per share excludes any dilution from common stock
equivalents and is based on the weighted average common shares outstanding.
Diluted earnings per share includes dilution from the Company's stock options
and warrants, calculated under the treasury stock method. The difference
between weighted average common shares outstanding - basic and weighted
average common shares outstanding - diluted is due to the dilutive effect of
outstanding stock options and warrants. Options and warrants which would be
antidilutive are excluded from the diluted weighted average shares
outstanding.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The following discussion of the results of operations and financial
condition should be read in conjunction with the financial statements and
notes thereto.
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1998 AND 1997
Revenue increased by $2,591,000, or approximately 221%, to
$3,763,000 for the three months ended March 31, 1998, as compared to
$1,172,000 for the three months ended March 31, 1997. This increase was
primarily due to the additional revenue provided by sales of surgical
instruments and implants by Brimfield Precision, Inc. ("BPI").
4
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Cost of goods sold increased by $1,854,000, or approximately 335%,
to $2,408,000 for the three months ended March 31, 1998, compared to $554,000
for the three months ended March 31, 1997. Cost of goods sold as a percentage
of revenue increased to 64% for the three months ended March 31, 1998, as
compared to 47% for the three months ended March 31, 1997. This increase in
cost of goods sold was attributable to increased sales provided by BPI and
the increase in cost of goods sold as a percentage of revenue was
attributable to lower margins associated with the manufacture of surgical
instruments and orthopedic implants by BPI, improvements in the reliability
and durability of certain components, as well as changes in the mix of
products sold.
Research and development expenses increased by $227,000, or
approximately 118%, to $418,000 for the three months ended March 31, 1998,
compared to $191,000 for the three months ended March 31, 1997. This increase
was principally due to the addition of engineering personnel and related
expenses, to expenses for new localizer product development and to the
consolidation of BPI's research and development expenses.
Selling and marketing expenses increased by $123,000 or
approximately 76%, to $284,000 for the three months ended March 31, 1998 as
compared to $161,000 for the three months ended March 31, 1997. This increase
was primarily attributable to the addition of personnel and related expenses
for the Company's optical localizer business, as well as the consolidation of
BPI's selling and marketing expenses.
General and administrative expenses increased by $552,000 or
approximately 216%, to $807,000 for the three months ended March 31, 1998, as
compared to $255,000 for the three months ended March 31, 1997. This increase
was primarily attributable to the amortization of goodwill related to the
acquisition of BPI, to the additional expenses necessary to integrate BPI
after the acquisition, increased salaries, and to the consolidation of BPI's
general and administrative expenses.
Operating income decreased by $165,000 to $(154,000) for the three
months ended March 31, 1998 compared to operating income of $11,000 for the
three months ended March 31, 1997. This decrease was primarily attributable
to increased costs associated with the acquisition of BPI and to the addition
of personnel and associated costs related to the Company's optical localizer
business.
Net other income (expense) decreased by $236,000 to $(172,000) for
the three months ended March 31, 1998 as compared to $64,000 for the three
months ended March 31, 1997. This change was primarily due to interest
expense on debt in connection with the acquisition of BPI.
As a result of the foregoing, the Company's net loss was $(326,000)
for the three months ended March 31, 1998, compared to net income of $75,000
for the three months ended March 31, 1997.
LIQUIDITY AND CAPITAL RESOURCES
During the three months ended March 31, 1998, $79,000 in cash was
provided by operating activities, principally due to depreciation and
amortization, decreases in accounts receivable, increases in accounts payable
and accrued liabilities, offset by a net loss. The Company used $107,000 in
cash for investing activities during the three-month period ended March 31,
1998 to purchase property and equipment. Also during the three-month period
ended March 31, 1998, $333,000 in cash was used in financing activities,
principally for payments on debt and principal payments on capital leases.
As of March 31, 1998, the Company had working capital of $1,581,000,
compared to working capital of $2,197,000 at December 31, 1997. The change in
working capital was primarily the result of decreases in cash and accounts
receivable and increases in accounts payable and accrued liabilities.
On December 12, 1997, the Company finalized the acquisition of all
the outstanding stock of Brimfield Precision, Inc. ("BPI") for a purchase
price of approximately $9,844,000 consisting of approximately $8,069,000 in
cash, $500,000 in a subordinated note payable to Cruttenden Roth, Inc.
("Cruttenden") and 579,710 shares of the Company's common stock. The purchase
price includes the expenses related to the acquisition. BPI sells surgical
instruments and implants to medical supply companies. Prior to its sale to
the Company, BPI was owned by William and Matthew Lyons. William Lyons has a
one-year employment contract with BPI as its President and has been elected a
director of the Company.
5
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To finance the acquisition, the Company entered into a secured loan
agreement with Imperial Bank under which Imperial Bank loaned the Company
$4,000,000 pursuant to a three-year term loan and up to $2,000,000 (the
actual amount to be determined by calculating the borrowing base) pursuant to
a revolving loan payable on or before June 30, 1999. The Company paid
Cruttenden a $300,000 fee for introducing the Company to, and advising the
Company in negotiations with, Imperial Bank. The Company issued a one-year
$500,000 subordinated note to Cruttenden to pay this fee, as well as a
$200,000 advisory fee owed to Cruttenden. In connection with the loan and
subordinated note, the Company issued a seven-year warrant for 160,000 shares
of the Company's common stock with an exercise price of $2.92 per share to
Imperial Bank and a seven-year warrant for 100,000 shares of the Company's
common stock with an exercise price of $2.92 per share to Cruttenden. On
March 15, 1998, the Company issued to Imperial Bank an additional seven-year
warrant for 80,000 shares of the Company's common stock with an exercise
price of $2.65 per share and on March 31, 1998 a seven-year warrant for
10,000 shares of the Company's common stock with an exercise price of $2.86
per share pursuant to the loan agreement. In April 1998, the Company will
expense approximately $250,000 related to the 250,000 warrants issued to
Imperial Bank.
On April 3, 1998, Imperial Bank assigned its loan to BankBoston.
After the assignment, BankBoston and the Company amended and restated the
loan to provide for a $2,700,000 sixty-month term loan (payable in 58
installments of $40,000 in principal with a final principal payment of
$380,000) at an interest rate initially equal to the BankBoston base rate
plus one-half of one percent on the unpaid principal balance, and up to
$3,000,000 (the actual amount to be determined by calculating the borrowing
base) pursuant to a twenty-four month revolving loan at an interest rate
initially equal to the BankBoston base rate plus one-quarter of one percent.
The Company has agreed to raise $1,000,000 by July 2, 1998 to pay off the
$500,000 note due Cruttenden and to reduce the principal amount of the term
loan by $500,000.
ISSUANCE OF STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS
In June 1997, Statement of Financial Accounting Standards No. 131,
"Disclosure About Segments of an Enterprise and Related Information" ("SFAS
131") was issued. SFAS 131 establishes standards for the reporting of segment
operations in annual financial statements. SFAS 131 is effective for annual
financial statements for periods beginning after December 15, 1997.
The Company anticipates that the adoption of SFAS 131 will not have
a material impact on its 1998 financial statements.
FORWARD-LOOKING STATEMENTS
The Company may, in discussions of its future plans, objectives and
expected performance in periodic reports filed by the Company with the
Securities and Exchange Commission (or documents incorporated by reference
therein) and in written and oral presentations made by the Company, include
projections or other forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 or Section 21E of the Securities Exchange
Act of 1934, as amended. Such projections and forward-looking statements are
based on assumptions that the Company believes are reasonable, but are by
their nature inherently uncertain. In all cases, there can be no assurance
that such assumptions will prove correct or that projected events will occur,
and actual results could differ materially from those projected. Some of the
important factors that could cause actual results to differ from any such
projections or other forward-looking statements follow.
POTENTIAL FLUCTUATIONS IN OPERATING RESULTS. Since the Company
generally ships its products on the basis of purchase orders, operating
results in any quarter are highly dependent on orders booked and shipped in
that quarter and, accordingly, may fluctuate materially from quarter to
quarter. The Company's operating expense levels are based on the Company's
internal forecasts of future demand and not on firm customer orders. Failure
by the Company to achieve these internal forecasts could result in expense
levels that are inconsistent with actual revenues. Moreover, the Company's
results may also be affected by fluctuating demand for the Company's
products, declines in the average selling prices for its products, and by
increases in the costs of the components and subassemblies acquired by the
Company from vendors.
6
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DEBT. The Company has a term loan of $2,700,000 and a revolving loan
of up to $3,000,000 with BankBoston. The Company also owes BankBoston
approximately $1,300,000 in connection with previous equipment financings and
anticipates financing an additional $1,000,000 of equipment with BankBoston
in 1998. The Company also owes Cruttenden $500,000 pursuant to a one-year
note due December 12, 1998 with interest at 12% per annum. There can be no
assurance that the Company will be able to meet the payment terms of the
above loans, comply with the various loan covenants (including, without
limitation, the obligation to raise $1,000,000 by July 2, 1998), or obtain
the necessary funds to meet its anticipated equipment requirements.
DEPENDENCE ON FEW CUSTOMERS. The Company realizes a majority of its
revenues by sales to relatively few customers. None of these customers has
entered into any long term minimum purchase agreements with the Company. The
loss of, or substantial diminution of purchases from the Company by, any of
these customers could have a material adverse effect on the Company.
TECHNOLOGICAL CHANGE IN THE MEDICAL INDUSTRY AND IN THE COMPANY'S
PRODUCT. There can be no assurance that the Company's competitors will not
succeed in developing or marketing products or technologies that are more
effective and/or less costly and which render the Company's products obsolete
or non-competitive. In addition, new technologies and procedures could be
developed for medical and other industries that replace or reduce the value
of the Company's products. The Company's success will depend in part on its
ability to respond quickly to technological changes through the development
and improvement of its products. The Company believes that a substantial
amount of capital will be required to be allocated to such activities in the
future.
THE COMPANY'S ABILITY TO PROTECT ITS INTELLECTUAL PROPERTY RIGHTS.
The Company does not have any patents which directly cover its FlashPoint or
Pixsys optical localizers. The Company primarily relies on a combination of
trade secret and copyright laws, together with nondisclosure agreements to
protect its know-how and proprietary rights. There can be no assurance that
such measures will provide adequate protection for the Company's intellectual
property rights, that disputes with respect to ownership of its intellectual
property rights will not arise, that the Company's trade secrets or
proprietary technology will not otherwise become known or be independently
developed by competitors or that the Company can otherwise meaningfully
protect its intellectual property rights. Furthermore, there can be no
assurance that others will not develop similar products or software,
duplicate the Company's products or software or that third parties will not
assert intellectual property infringement claims against the Company.
Moreover, there can be no assurance that any patent owned by, or issued to,
the Company will not be invalidated, circumvented or challenged, or that the
rights granted thereunder will provide meaningful competitive advantages to
the Company.
Litigation may be necessary to protect the Company's intellectual
property rights and trade secrets, to determine the validity and scope of the
proprietary rights of others or to defend against claims of infringement or
invalidity. Such litigation could result in substantial costs and diversion
of resources, regardless of the outcome of the litigation. If any claims are
asserted against the Company, the Company may be required to obtain a license
under a third party's intellectual property rights. However, such a license
may not be available on reasonable terms or at all.
COMPETITION BY EXISTING COMPETITORS AND POTENTIAL NEW ENTRANTS INTO
THE MARKETPLACE. Companies with substantially greater financial, technical,
marketing, manufacturing and human resources, as well as name recognition,
than the Company may enter markets currently serviced by the Company.
Additionally, competitors may be able to respond more quickly to new or
emerging technologies and changes in customer requirements and to devote
substantially greater resources to the development, marketing and sale of
their products than the Company. The Company's customers may develop their
own products to be able to differentiate their product or for other reasons.
Furthermore, such competitors may develop technologies and/or products other
than that currently offered by the Company that are more effective or
economical.
REGULATION BY THE FDA. Noncompliance with applicable requirements of
FDA can result in, among other things, fines, injunctions, civil penalties,
recall or seizure of products, total or partial suspension of production,
failure of the government to grant premarket clearance or premarket approval
for medical devices,
7
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withdrawal of marketing approvals and criminal prosecution. The FDA also has
the authority to request repair, replacement or refund of the cost of any
medical device.
In addition, international sales of medical devices are subject to
foreign regulatory requirements, which vary from country to country.
THE RISK OF PRODUCT LIABILITY CLAIMS. The Company faces an inherent
business risk of exposure to product liability claims in the event that the
use of its products is alleged to have resulted in adverse effects. To date,
no product liability claims have been asserted against the Company. The
Company maintains a product liability and commercial general liability
insurance policy with coverage of $1,000,000 per occurrence and an annual
aggregate maximum coverage of $2,000,000 ($1,000,000 for lawsuits outside the
United States, Canada and Puerto Rico). The Company's product liability and
general liability policy is provided on an occurrence basis and is subject to
annual renewal. There can be no assurance that liability claims will not
exceed the coverage limits of such policy or that such insurance will
continue to be available on commercially reasonable terms or at all. If the
Company does not or cannot maintain sufficient liability insurance, its
ability to market its products could be significantly impaired.
POSSIBLE CHANGES TO GOVERNMENT REGULATIONS GOVERNING HEALTH CARE.
The health care industry is undergoing fundamental changes as a result of
political, economic and regulatory influences. In the United States,
comprehensive programs have been proposed that seek to increase access to
health care for the uninsured, control the escalation of health care
expenditures within the economy and use health care reimbursement policies to
help control the federal deficit. The Company anticipates that Congress and
state legislatures will continue to review and assess alternative health care
delivery systems and methods of payment and public debate of these issues
will likely continue. Due to uncertainties regarding the outcome of reform
initiatives and their enactment and implementation, the Company cannot
predict which, if any, of such reform proposals will be adopted or when they
might be adopted. Other countries are also considering health care reform.
Significant changes in health care systems could have a substantial impact on
the manner in which the Company conducts its business.
SHORTAGES OF LABOR. The Company is dependent upon certain labor
skills that may not be readily available. The shortage of skilled labor could
materially affect the Company's results of operations.
THE COMPANY'S DEPENDENCE ON KEY MANAGEMENT AND TECHNICAL PERSONNEL
AND ITS ABILITY TO ATTRACT NEW PERSONNEL. The Company's success depends in
significant part on the continued contribution of certain key management and
technical personnel. The loss of services of any of these individuals could
have a material adverse effect on the Company. The Company's growth and
profitability also depend on its ability to attract and retain other
management and technical personnel.
OTHER MATTERS
None.
PART II -- OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
BPI is a party to two lawsuits, which, while the outcome cannot be
predicted with certainty, the Company's management expects will not have a
materially adverse affect on the consolidated financial position or results
of operations of the Company.
ITEM 2. CHANGES IN SECURITIES
On March 15, 1998 and on March 31, 1998, the Company issued to
Imperial Bank a seven-year warrant for 80,000 shares of the Company's common
stock with an exercise price of $2.65 per share, and a seven-year warrant for
10,000 shares of the Company's common stock with an exercise price of $2.86
per
8
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share, respectively. These warrants were issued to Imperial Bank pursuant to
the loan agreement. See "Management's Discussion and Analysis-Liquidity and
Capital Resources."
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit
Number Description of Document
-------- ------------------------
27.1 Financial Data Schedule for current year
27.2 Financial Data Schedule for quarters 1-3 of 1997
and year end 1996
See also 10-K
- -------------------------
(b) Form 8-K Reports
The Company filed one report on Form 8-K December 29, 1997 (amended
on February 27, 1998) in connection with the acquisition of Brimfield
Precision, Inc. BPI audited financial statements for the years ended October
31, 1996 and 1997 and pro forma financial statements were filed with respect
to the acquisition.
9
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Signatures
In accordance with the requirements of the Securities Exchange Act of 1934, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
IMAGE GUIDED TECHNOLOGIES, INC.
(Registrant)
By: /s/ Paul L. Ray
------------------------------
May 15, 1998 Paul L. Ray
Chairman of the Board,
President and Chief Executive
Officer
By: /s/ Jeffrey J. Hiller
------------------------------
May 15, 1998 Jeffrey J. Hiller
Vice President and Chief
Financial Officer
(Principal Accounting Officer)
10
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 855
<SECURITIES> 0
<RECEIVABLES> 2,818
<ALLOWANCES> 188
<INVENTORY> 1,650
<CURRENT-ASSETS> 5,496
<PP&E> 4,884
<DEPRECIATION> 487
<TOTAL-ASSETS> 15,687
<CURRENT-LIABILITIES> 3,915
<BONDS> 4,472
0
0
<COMMON> 10,393
<OTHER-SE> (3,093)
<TOTAL-LIABILITY-AND-EQUITY> 15,687
<SALES> 3,763
<TOTAL-REVENUES> 3,812
<CGS> 2,408
<TOTAL-COSTS> 2,692
<OTHER-EXPENSES> 1,446
<LOSS-PROVISION> 12
<INTEREST-EXPENSE> 182
<INCOME-PRETAX> (305)
<INCOME-TAX> 21
<INCOME-CONTINUING> (305)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (326)
<EPS-PRIMARY> (.09)
<EPS-DILUTED> (.09)
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS 9-MOS YEAR
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997 DEC-31-1997 DEC-31-1996
<PERIOD-START> JAN-01-1997 JAN-01-1997 JAN-01-1997 JAN-01-1996
<PERIOD-END> MAR-31-1997 JUN-30-1997 SEP-30-1997 DEC-31-1996
<CASH> 4,719 4,799 4,729 5,240
<SECURITIES> 0 0 0 0
<RECEIVABLES> 885 1,014 1,057 580
<ALLOWANCES> 61 66 71 58
<INVENTORY> 436 426 416 417
<CURRENT-ASSETS> 6,100 6,253 6,227 6,284
<PP&E> 477 544 595 426
<DEPRECIATION> 178 194 232 145
<TOTAL-ASSETS> 6,415 6,619 6,606 6,582
<CURRENT-LIABILITIES> 480 528 545 713
<BONDS> 88 81 73 96
0 0 0 0
0 0 0 0
<COMMON> 8,798 8,798 8,771 8,799
<OTHER-SE> (2,951) (2,788) (2,783) (3,026)
<TOTAL-LIABILITY-AND-EQUITY> 6,415 6,619 6,606 6,582
<SALES> 1,172 2,496 3,829 4,080
<TOTAL-REVENUES> 1,240 2,621 4,017 4,142
<CGS> 554 1,114 1,670 1,836
<TOTAL-COSTS> 558 1,432 2,151 2,390
<OTHER-EXPENSES> 607 951 1,623 1,397
<LOSS-PROVISION> 4 9 14 34
<INTEREST-EXPENSE> 3 6 9 114
<INCOME-PRETAX> 75 238 243 355
<INCOME-TAX> 0 0 0 0
<INCOME-CONTINUING> 75 238 243 355
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 75 238 243 355
<EPS-PRIMARY> .02 .08 .08 .21
<EPS-DILUTED> .02 .07 .07 .16
</TABLE>
