.
FORM 10-QSB
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended: March 31, 1997
Commission File Number: 0-7796
VOICE IT WORLDWIDE, INC.
(Exact Name of Registrant as Specified in its Charter)
Colorado 83-0203787
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
2643 Midpoint Drive, Suite A
Fort Collins, Colorado 80525
(Address of principal (Zip Code)
executive offices)
(970) 221-1705
(Registrant'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 issuer was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
Number of shares outstanding of the Issuer's Common Stock,
as of March 31, 1997 was 5,054,802 shares of the
Registrant's common stock $.10 par value.
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
VOICE IT WORLDWIDE, INC.
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1996 1997
<S> <C> <C>
Sales - net $2,761,927 $1,356,143
Cost of sales 1,702,269 746,520
Gross profit 1,059,658 609,623
Operating expenses
Administrative and general 282,096 352,731
Selling and marketing 592,270 417,919
Research and development 180,930 211,821
Total operating expenses 1,055,296 982,471
Net operating profit 4,362 (372,848)
Other income (expense)
Interest income (expense) (76,411) (68,724)
Net income (loss) before income tax (72,049) (441,572)
Income tax (Note 4) - -
Net income (loss) $(72,049) $(441,572)
Net income (loss) per common share (Note 7) $ (.01) $ (.09)
Weighted average number of shares outstanding 5,054,802 5,054,802
</TABLE>
See notes to financial statements.
VOICE IT WORLDWIDE, INC.
Balance Sheet
<TABLE>
<CAPTION>
(Unaudited)
December 31, March 31,
1996 1997
<S> <C> <C>
Assets
Current assets
Cash and cash equivalents $585,414 $373,204
Accounts receivable, net of allowance of $93,965
(1996) and $72,352 (1997) (Notes 5 and 8) 3,246,302 1,694,284
Other receivables 34,358 34,991
Inventories (Note 3) 2,570,632 2,354,789
Prepaid expenses and other current assets 44,836 121,980
6,481,542 4,579,248
Tooling, furniture and office equipment, net of
accumulated depreciation (Note 3) 379,707 360,623
Other assets (Note 3) 680,250 705,032
Total assets $7,541,499 $5,644,903
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $2,243,426 $ 740,856
Accrued liabilities (Note 3) 446,500 229,912
Line-of-credit (Notes 2, 5 and 8) 266,722 530,856
2,956,648 1,501,624
Long-term debt (Note 5) 2,450,000 2,450,000
Stockholders' equity (Note 6)
Common stock; $.10 par; 10,000,000 shares
authorized; 5,054,802 issued and outstanding
(1996) and (1997) 505,480 505,480
Additional paid-in capital 5,364,910 5,364,910
Accumulated deficit (3,735,539) (4,177,111)
2,134,851 1,693,279
Total liabilities and stockholders' equity $7,541,499 $5,644,903
</TABLE>
See notes to financial statements.
VOICE IT WORLDWIDE, INC.
Statement of Stockholders' Equity
(Unaudited)
<TABLE>
<CAPTION>
Additional
Common Stock Paid-in Accumulated
Shares Amount Capital Deficit Total
<S> <C> <C> <C> <C> <C>
Balance - December 31
1996 5,054,802 $505,480 $5,364,910 $(3,735,539) $2,134,851
Net (loss) for the three
months ended March 31,
1997 - - - (441,572) (441,572)
Balance - March 31,
1997 5,054,802 $505,480 $5,364,910 $(4,177,111) $1,693,279
</TABLE>
See notes to financial statements.
VOICE IT WORLDWIDE, INC.
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1996 1997
<S> <C> <C>
Cash flows from operating activities
Net income (loss) $ (72,049) $(441,572)
Adjustments to reconcile net income (loss) to net
cash used in operating activities
Allowance for discounts and bad debts 15,489 (21,433)
Depreciation and amortization 51,291 90,037
Amortization of deferred loan costs 6,360 6,360
Changes in current assets and liabilities
Receivables 2,024,634 1,572,818
Prepaid expenses (4,346) (77,144)
Inventories 128,473 215,843
Accounts payable (1,243,211) (1,502,570)
Accrued liabilities (18,082) (216,588)
Net cash (used in) provided by operating
activities 888,559 (374,249)
Cash flows from investing activities
Other assets (74,423) (77,204)
Acquisition of tooling, furniture and equipment (83,681) (24,891)
Net cash used in investing activities (158,104) (102,095)
Cash flows from financing activities
Draws (payments) on line-of-credit, net (605,052) 264,134
Payment of stockholder appraisal rights - -
Increase in deferred offering costs - -
Net cash used in financing activities (605,052) 264,134
Net increase (decrease) in cash 125,403 (212,210)
Cash - beginning of period 251,321 585,414
Cash - end of period 376,724 373,204
</TABLE>
Supplemental disclosure of cash flow information:
Cash paid during the year for interest was $83,126 (1996) and $59,716 (1997).
See notes to financial statements.
VOICE IT WORLDWIDE, INC.
Notes to Financial Statements
(Unaudited)
Note 1 - Summary of Significant Accounting Policies
The summary of the Company's significant accounting policies are incorporated
by reference to the audited Voice It Worldwide, Inc. financial reports included
in the Annual Report on Form 10-KSB for the fiscal year ended December 31, 1996.
The statements of operations, balance sheets, stockholders'
equity and cash flows have not been audited by independent
accountants, but in the opinion of the management, reflect all
normal recurring adjustments and entries necessary for the fair
presentation of the operations of the Company. The results of
operations for any quarter, and quarter-to-quarter trends, are
not necessarily indicative of the results to be expected for any
future period.
Note 2 - Letter of Credit
At March 31, 1997, the Company had no irrevocable standby letters
of credit outstanding. However, from time to time, letters of
credit are required by major suppliers and have various
expiration dates. When issued, these letters of credit are
secured by the Company's line of credit (Note 5).
Note 3 - Selected Balance Sheet Information
<TABLE>
<CAPTION>
December 31, March 31,
1996 1997
<S> <C> <C>
Inventories
Raw materials $ 701,033 $1,075,108
Finished goods 1,869,599 1,279,681
$ 2,570,632 $ 2,354,789
Tooling, furniture and equipment
Office furniture and equipment $ 222,424 $ 227,775
Tooling and manufacturing equipment 460,151 479,691
682,575 707,466
Less accumulated depreciation (302,868) (346,843)
$ 379,707 $ 360,623
Other assets
Deferred loan costs - net of
accumulated amortization of
$27,559 in 1996 and $33,919
in 1997 $ 155,834 $ 149,474
Product software development
costs - net of accumulated
amortization of $66,283 in 1996
and $99,163 in 1997 330,054 372,984
Patent costs - net of accumulated
amortization of $66,647 in 1996
and $79,829 in 1997 194,284 184,497
Other 78 (1,923)
$ 680,250 $ 705,032
</TABLE>
<TABLE>
<CAPTION>
December 31, March 31,
1996 1997
<S> <C> <C>
Accrued liabilities
Vacation & 401K $ 38,587 $ 42,462
Advertising 254,809 103,725
Warranty 50,729 35,517
Commissions 91,614 28,897
Other 10,761 19,311
$446,500 $229,912
</TABLE>
Note 4 - Income Taxes
The Company reports income taxes for interim periods based on
annualized estimates of earnings, tax credits and book/tax
differences at the estimated annual effective tax rate. For
federal and state income tax purposes, at December 31, 1996, the
Company had net operating loss carry forwards of approximately
$3,540,000 which substantially expire in fiscal years 2008
through 2011 and general business credits of $46,791 which expire
in fiscal year 2009.
Note 5 - Long-Term Debt
<TABLE>
<CAPTION>
December 31, March 31,
1996 1997
<S> <C> <C>
$750,000 line of credit to a
bank, interest at their "Base
Rate" plus 5%, totaling 13.50
% at March 31, 1997, payable
monthly, principal due on or
before April 18, 1997.
Borrowings are collateralized
by, and limited to a
percentage of eligible
accounts receivables, finished
goods inventories and letters
of credit as additional
collateral (Notes 2 and 8). $ 266,722 $530,856
8% convertible debenture,
interest payable monthly,
convertible into one share of
common stock for each $0.95 of
principal converted.
Principal due November 1,
2002. Loan costs associated
with this debenture were
approximately $180,000, and
are amortized over the life of
the agreement resulting in an
effective interest rate of 9%.
Monthly principal redemption
of one percent of the then
outstanding balance begins in
November, 1998. 2,450,000 2,450,000
2,716,722 2,980,856
Less current portion (266,722) (530,856)
Total long-term debt $2,450,000 $2,450,000
</TABLE>
Note 6 - Stockholders' Equity
Warrants
During 1995, the Company completed the sale of 648,880 units of
its common stock. Each Unit consists of one unregistered share
of its $.10 par value common stock and one-half of a detachable
unregistered common stock purchase warrant (the "Warrant"). The
attached Warrants remained unexercised and expired on December
31, 1996.
Combined with the $2,450,000 convertible debenture (Note 4), the
Company issued 915,000 warrants (the "Debenture Warrants") to
buy unregistered shares of the Company's common stock at an
exercise price of $2.75 per share. These Debenture Warrants
have a three year life and may be redeemed, after October 27,
1996, by the Company for $.05 per Debenture Warrant if the
Company's common stock price reaches a $6.00 bid price for 20
consecutive trading days. In the first quarter, 1996, the
Company issued an additional 25,000 warrants at an exercise
price of $1.50 per share to the debenture holder in exchange for
a waiver of certain financial covenants. These warrants have
basically the same terms and conditions as the Debenture
Warrants. As part of the repricing negotiation with the
debenture holder, the Company lowered the exercise price of all
Warrants to $1.25 per share.
In connection with the above mentioned private placement stock
and the issuance of convertible debt, the Company issued an
aggregate total of 38,131 warrants to the placement agents. Each
warrant entitles the holder to purchase one unregistered share of
common stock at any time from June, 1996 through June, 1999 at an
exercise price of $2.75 per share. However, with the issuance of
warrants pursuant to an employment agreement listed below, the
Company lowered the exercise price of these Warrants to $1.06 per
share.
During the first half of 1996, the Company used letters-of-credit
issued from individuals with the Company as beneficiary. These
letters-of-credit were used as collateral at the Company's bank
for its line-of-credit. As an incentive to participate in this
collateral program, the Company issued 20,000 warrants to acquire
the Company's common stock. Each warrant entitles the holder to
purchase one share of the Company's unregistered common stock at
an exercise price of $2.75 per share. These warrants can be
exercised at any time prior to their expiration in May, 2000.
Pursuant to an employment agreement with an officer, the Company
issued 40,000 Warrants to acquire common stock. Each warrant
entitles the holder to purchase one share of the Company's
unregistered common stock at an exercise price of $1.06 per
share. 20,000 of these Warrants expire on December 31, 1997, the
remaining 20,000 can be exercised at any time prior to their
expiration in December, 1999.
Stock Options
The Company has reserved a total of 860,243 of its authorized but
unissued common stock for stock option plans (the "Plans")
pursuant to which officers, directors, employees and non-
employees of the Company are eligible to receive incentive and/or
non-qualified stock options. Under the terms of the Plans,
options are exercisable based on various vesting schedules with
an exercise price which equals the market price of the common
stock on the date of grant. Through March 31, 1997, the Company
had granted 652,443 options with various vesting periods and an
exercise price of between $1.06 and $3.00 per share. As of March
31, 1997, 382,443 granted options are vested with exercise
prices ranging from $1.56 to $3.00. However, no options
have been exercised.
The Company has adopted the disclosure-only provisions of Statement
of Financial Accounting Standards No. 123 "Accounting for Stock-based
Compensation" (SFAS No. 123). Accordingly, no compensation cost has been
recognized for stock options and warrants granted. Consistent with the
disclosure-only provisions of SFAS No. 123, the Company must provide
pro forma net earnings and pro forma earnings per share disclosures for
employee stock option grants made in 1995 and future years as if the
fair value based method defined in SFAS No. 123 had been applied.
The Company uses one of the most widely used option pricing models, the
Black-Scholes model (the Model), for purposes of valuing it stock option
grants. The Model was developed for use in estimating the fair value
of trade options which have no vesting restrictions and are fully
transferable. In addition, it requires the input of highly subjective
assumptions including the expected stock price volatility, expected
dividend yields, the risk free interest rate and the expected life.
Because the Company's stock options have characteristics significantly
different from those of traded options, and because changes in subjective
input assumptions can materially affect the fair value estimate, in
management's opinion, the value determined by the Model is not necessarily
indicative of the ultimate value of the granted options.
Note 7 - Earnings Per Share
Net income per common share is based on the weighted average
number of common shares outstanding, inclusive of common stock
equivalents computed using the modified treasury stock method.
However, common stock equivalents were not used in computing the
loss per share, as their inclusion would have been anti-dilutive.
Note 8 -Subsequent events
On April 18, 1997, the company replaced its current bank line-of-
credit (note 5) with a $2,000,000 revolving line-of-credit
facility with a new lending institution. This new credit line,
which extends through March, 2000, has a standard net worth
covenant and is at an interest rate of 2.5% above the banks base
rate. The amount the Company may borrow from this line-of-credit
is limited by a percentage of its eligible accounts receivable
and finished goods inventory.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Overview
Voice It Worldwide, Inc. ("Voice It") designs, develops and
markets personal consumer electronics products which allow people
to verbalize reminders and messages for themselves and others
without the need for pen and paper. Voice It products utilize
computer chip technology to capture ideas, thoughts, reminders
and messages, incorporating high quality recording with patent
pending message management features. Voice It Personal Note
Recorders are about the size of a credit card and approximately
1/3 inch thick. Their compact size, portability and ease of use
make them a convenient replacement for handwritten sticky notes,
particularly at times and in places where handwriting is
impractical.
The Company's first product, the Voice Itr Personal Note
Recorder, with a 75 second capacity was introduced in the market
in November of 1993. Since then, the product line has expanded
to six models with recording capacities from 40 seconds to six
minutes with retail prices ranging from $29 to $90.
During the fourth quarter of 1996, the Company introduced
the Voice Itr Managers, a new line of digital recording products
that offer both extended digital recording capacity and
organization features including time and date stamping of
messages and file folder organizers, an LCD display and a built-
in icon library for file folder labeling. The Voice It Manager
products also offer message alarms, calendar scheduling, a phone
data base for 100 names with notes and three phone numbers for
each name and also includes auto-dial capabilities. The Company
was able to introduce these products in over 1,500 stores in
addition to several national direct mail catalogs. As of the
first quarter, 1997, the Company is marketing three models which
have recording capacities of 22, 45 and 90 minutes and range in
price from $89 to $199.
The Company markets its products in the United States and
internationally in Canada, Europe, South Africa and the Middle
East. Voice It products are now available in a variety of
distribution channels including direct mail catalogs, department
stores, mass merchants, office super stores, catalog showrooms,
electronic specialty stores and drug stores. Many of the
retailers carrying Voice It products are well known stores such
as The Sharper Image, Service Merchandise, Staples, OfficeMax,
Office Depot, Circuit City and Best Buy. In Canada, the products
are also available through Radio Shack, London Drugs, Office
Depot and Business Depot. Internationally, the Company now has
distribution in more than 15 countries worldwide, with new
distributors in England, Spain, Belgium and Holland. The Company
experienced strong retail success in France and Italy during
1996.
The Company continually monitors its gross margins and
aggressively seeks cost reduction which, in the past, has
resulted in significant improvement in gross margins. Gross
margins declined to a low of 30% during the third quarter of 1995
and have gradually increased each quarter. The Company expects
to achieve similar margin levels for the remainder of the year
and is continuing its efforts to improve gross margins through
new, lower priced technology.
Results of Operations
The following table sets forth, for the periods indicated,
items in the Statement of Operations expressed as a percentage of
net sales:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1996 1997
<S> <C> <C>
Net sales 100.0% 100.0%
Cost of sales 61.6 55.0
Gross profit 38.4 45.0
Operating expenses
Administrative and general 10.2 26.0
Selling and marketing 21.4 30.8
Research and development 6.6 15.7
Total operating expenses 38.2 72.5
Operating income (loss) 0.2 (27.5)
Other income (expense), net (2.8) (5.1)
Net loss before income tax (2.6) (32.6)
Income tax (benefit) 0.0 0.0
Net loss (2.6)% (32.6)%
</TABLE>
Three Months ended March 31, 1997 compared to Three
Months ended March 31, 1996
Sales for the three months ended March 31, 1997 were
$1,356,100 compared to $2,761,900 for the three months
ended March 31, 1996. While the Company's longer
recording time products such as the Voice Manager and the
VT-300 have been well received by the consumers, the
continuing weak consumer electronics market, combined
with the negative impact from the liquidation of
competitive product inventory at extraordinarily low
selling prices, caused an extraordinary decrease in sales
during the first quarter of 1997. During the second half
of 1997, the Company is planning to further expand the
recording capacities and enhance the features that should
further meet consumers increasing needs and effectively
act as a digital replacement for the existing tape
recorder market. Additionally, the Company is
introducing a new digital recorder line of products that
will combine long recording capacity through internal
flash memory in addition to removable flash memory cards.
The new digital recorder will have a number of editing
features and will be able to download data to a computer
for data management, storage, transcription and attaching
to E-mail.
Cost of sales for the first quarter ended March 31,
1997 decreased to $746,500 or 55.0% of net sales from
$1,702,300 or 61.6% of net sales during the first quarter
of 1996. The dollar decrease is due to the corresponding
decrease in unit sales. However, as a percentage of net
sales, cost of sales have significantly decreased through
the Company's cost reduction program put in place after
adopting the aggressive pricing policy during the third
quarter of 1995. This cost reduction program and the
introduction of new technology has effectively increased
the Company's gross product margin to 45% during the
current quarter from a low of 30% during the third
quarter of 1995.
General and administrative expenses increased 25% or
$70,600 to $352,700 or 26.0% during the first three
months of 1997 compared with $282,100 or 10.2% for the
same period in 1996. These expenses increased for the
quarter due mostly to higher personnel costs related to
the expansion of our financial and executive area as well
as expanding its financial and shareholder relations
programs. As percentage of net sales, administrative
expenses increased to 26% during the first quarter of
1997 from 10% during the first quarter of 1996. While
part of this increase as a percentage of sales is due to
the increased expenses, most of this increase is due to
the lower sales base experienced during the first quarter
of 1997.
Sales and marketing expenses for the quarter ended
March 31, 1997 decreased 29% or $174,400 to $417,900 or
30.8% of net sales in 1997 from $592,300 or 21.4% of net
sales in 1996. This decrease is partly due to the
decreased sales base and the corresponding decrease in
variable expenses such as cooperative advertising and
commissions to the sales force. Additionally, during the
first quarter of last year, the Company incurred
advertising costs related to the Message Center product
line. That advertising was not repeated during the
current quarter as the Message Center product was
discontinued.
Research and development costs increased by $30,900 to
$211,800 for the first quarter of 1997 from $180,900 for
the same quarter in 1996. The primary reason for this
increase is in developing new products for the second
half of 1997. The Company is aggressively expanding
recording capacities and enhancing features on both
current and new products. In addition to the new Voice
Itr Digital Recorder mentioned above, the Company will
also introduce new Personal Note Recorders with recording
times up to 22 minutes and featuring LCD displays.
During March, 1997, the Company also began shipping an
expansion to the Voice It Manager line of a 90-minutes
recorder.
Although the Company was successful in reducing
overall expenses in the first quarter of 1997 and
increasing margins substantially compared with the first
quarter of 1996, the low revenue base during the current
quarter caused the company to incur an operating loss of
$372,848 compared to a slight operating profit during the
first quarter of 1996 of $4,400.
Net interest expense for the first quarter of 1996 of
$68,700 compares to net interest expense during the same
period last year of $76,400. The primary component of
interest expense is the interest on the $2.45 million
convertible debenture the Company entered into during the
fourth quarter of 1995. Additionally, the Company
incurred interest expense from utilization of its
operating capital line-of-credit. After interest
expense, the net loss for the first quarter ended March
31, 1997 was $441,572 or $0.09 per share compared to a
net loss of $72,049 or $0.01 per share for the first
quarter of 1996.
Liquidity and Capital Resources
The Company has financed its growth to date primarily
from the private sale of Common Stock and Warrants, the
merger with Lander Energy Co. and the issuance of
$2,450,000 in convertible debentures. The Company also
uses bank financings for short term working capital needs
as well as to guarantee letters of credit issued to a
major supplier. At March 31, 1997, the Company had cash
and cash equivalents of approximately $373,200 and
working capital of approximately $3,077,600.
Cash used by the Company during the three months ended
March 31, 1997 was approximately $212,200. For the three
months ended March 31, 1997, the Company recorded a net
loss of approximately $441,600 and adjusted it for non-
cash items totalling $75,000. Non-cash items include
depreciation, bad debts and discounts and amortization of
loan costs. Uses of cash in operations for the period
included increases in prepaid expenses of approximately
$77,100 as well as decreases in accounts payable and
accrued liabilities by approximately $1,502,600 and
$216,600 respectively. The decrease in accounts payable
is attributable to paying for the inventories that were
purchased and accumulated during the last quarter of
1996. Sources of cash for the period included decreases
in the Company's accounts receivable and inventories of
approximately $1,572,800 and $215,800 respectively. The
accounts receivable decrease is due to the first quarter
collection of the higher fourth quarter, 1996 sales.
Additional uses of cash include $24,900 for the
acquisition of tooling and equipment as the Company
increases its manufacturing capacity for new products,
and $77,200 in acquiring other assets. During the three
months ended March 31, 1997, the Company generated
approximately $264,100 by drawing on a portion of its
bank line-of-credit.
At March 31, 1997, the Company had reduced its
revolving line-of-credit with its current lender to
$750,000 and extended the term from March 31, 1997 to
April 18, 1997. The company then completed a replacement
line-of-credit with another lender in the amount of
$2,000,000. Under this new line-of-credit, the amount
the Company may borrow is limited by the level of its
eligible worldwide accounts receivable and the Company's
finished goods inventory. The new line-of-credit is for
three years, contains a customary minimum net worth
covenant and bears interest at 2.5% above the bank's
"Base Rate".
The Company believes that with its new line-of-credit
financing and with the current capitalization, the
Company should be sufficiently financed for 1997.
However, if the Company experiences significant sales
growth during 1997, it may be necessary for it to
increase its bank line-of-credit or seek additional
sources of funds.
Seasonality
The Company anticipates that its business will be
seasonal, with at least 40% of its sales occurring during
the fourth quarter of the year in time for the holiday
gift giving season.
Foreign Exchange
The Company's products are principally purchased from
suppliers in the Far East with its prices negotiated on
an annual basis in U.S. dollars at exchange rates reset
annually. Exchange rate fluctuations between the U.S.
Dollar and the Singapore or Hong Kong dollar could have
an adverse effect on the Company's costs of sales and
gross margins. In the event of extreme exchange rate
fluctuations, it may become uneconomical for the
relationship between the Company and its suppliers to
continue.
The Company also records a significant amount of its
revenues in Europe and the Middle East. In most
countries, the Company sets its sales prices in U.S.
dollars so that any variances are for the purchaser's
account. However, if the exchange rate fluctuates
between these other currencies and the U.S. dollar, it
may have an adverse effect on the Company's sales.
Inflation
Management believes that inflation has not and will
not have a significant impact on its business.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. None
Item 2. Changes in Securities. None
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. None
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.
VOICE IT WORLDWIDE, INC.
Registrant
Date: 05/14/97
/S/ Dennis W. Altbrandt
Chief Executive Officer
Date: 05/14/97
/S/ Mark A. Griffith
Chief Financial Officer
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 373,204
<SECURITIES> 0
<RECEIVABLES> 1,694,284
<ALLOWANCES> 72,352
<INVENTORY> 2,354,789
<CURRENT-ASSETS> 4,579,248
<PP&E> 707,466
<DEPRECIATION> (346,843)
<TOTAL-ASSETS> 5,644,903
<CURRENT-LIABILITIES> 1,501,624
<BONDS> 0
0
0
<COMMON> 505,480
<OTHER-SE> 1,187,799
<TOTAL-LIABILITY-AND-EQUITY> 5,644,903
<SALES> 1,356,143
<TOTAL-REVENUES> 1,356,143
<CGS> 746,520
<TOTAL-COSTS> 1,728,991
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (68,724)
<INCOME-PRETAX> (441,572)
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