FORM 61
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
3rd quarter statements dated June 30, 2000
Eiger Technology, Inc.
818 Erie St.
Stratford, ON
N4Z 1A2
[Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F]
Form 20-F |X| Form 40-F |_|
[Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information by the
Commission pursuant to Rule 12g3-2(b) under the Securities Act of 1934.]
Yes |X| No |_|
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.
Eiger Technology, Inc.
Date: June 30, 2000 Mr. Gerry A. Racicot
President
<PAGE>
Management Review
Eiger Technology, Inc. (Eiger) is pleased to announce that it has returned to
profitability with a 644% increase in revenue for the third quarter of 2000 vis
a vis 1999. Eiger's sales for the 9 months ended June 30, 2000 were $46,017,000
vis a vis $7,426,000, a year over year 520% increase with a net loss of $390,000
vs $66,000.
Eiger's third quarter sales 2000, were $12,970,000 vis a vis 1,742,000 for 1999
(+644%) with a profit of $ 148,000 vs a loss of $13,000. Shareholder equity has
increased from 8,033,000 to 42,677,000 giving shareholder an increase of 451%
with a cash balance of $20,352,000 available for acquisions and or internal
growth.
The third quarter results reflect the increased efficiency of the new factory in
Korea manufacturing modems and MP3 players
Eiger's Korean manufacturing subsidiary, EigerNet, Inc. has successfully opened
its additional manufacturing facility in Seoul, South Korea. This facility in
the Shin Wa Industrial park has increased our production capabilities from
100,000 units to 575,000 units per month which enables EigerNet to increase its
internal manufacturing capacity to $10,000,000US per month.
Eiger has signed a purchase agreement for 25% of Nixxo Technology, Inc. (Nixxo).
Nixxo is a GSM cellular phone chipset design and development house based in San
Jose, CA. Nixxo has developed and delivered GSM chipset and operating system
technology for its majority owner Standard Telecom Co., Ltd. (STC) of Seoul
Korea and will launch its GSM Chipset and operating system in January, 2001. STC
is a publicly listed company on KOSPI (Korean Exchange) with approximately $500
million in annual revenue. STC has made significant inroads into the North
American market with its Nixxo pager. The Nixxo pager is no. 2 in the North
American market and no. 1 in the South Korean bourgeoning market place.
This purchase of Nixxo represents the culmination of may years of hard work by
the Eiger team both in North Amercia and South Korea.
Eiger's intuitive initiative in taking ADH Custom Metal Fabricators Inc. and
K-Tronik International Inc. public is progressing on schedule and anticipated to
be completed by the calendar year-end. This initiative will generate significant
working capital for Eiger's acquisition and internal growth strategy.
Eiger's management team looks forward to the balance of 2000 being a growth year
while entrenching itself firmly in the computer peripheral and wireless
marketplace
<PAGE>
EIGER TECHNOLOGY, INC.
Unaudited Consolidated Balance Sheet
--------------------------------------------------------------------------------
June 30 2000 1999
--------------------------------------------------------------------------------
$ $
Assets
Current
Cash and Marketable Securities 5,685,000 2,050,000
Cash Held in Escrow 14,667,000 --
Accounts Receivable 12,090,000 2,031,000
Inventories 9,747,000 2,619,000
Prepaid Expenses 250,000 78,000
Income Taxes Recoverable 11,000 171,000
----------- -----------
42,450,000 6,949,000
Capital 4,014,000 2,543,000
Long-term Investments 342,000 2,368,000
Goodwill 6,475,000 552,000
Other 2,997,000 78,000
----------- -----------
56,278,000 12,490,000
=========== ===========
Liabilities and Shareholders' Equity
Current
Bank Indebtedness 3,757,000 1,235,000
Accounts Payable and Accrued Liabilities 4,599,000 1,224,000
Current Portion of Lease Obligation 51,000 48,000
Current Portion of Long-term Debt 120,000 87,000
----------- -----------
8,527,000 2,594,000
----------- -----------
Long-term
Obligation Under Capital Lease -- 17,000
Long-term Debt 1,428,000 1,504,000
----------- -----------
1,428,000 1,521,000
----------- -----------
Future Income Tax Liabilities 37,000 176,000
----------- -----------
Non-Controlling Interest 3,609,000 166,000
----------- -----------
Shareholders' Equity
Share Capital 43,887,000 7,176,000
Contributed Surplus 787,000 642,000
Retained Earnings (Deficit) (1,997,000) 215,000
----------- -----------
42,677,000 8,033,000
----------- -----------
56,278,000 12,490,000
=========== ===========
On Behalf of the Board:
signed G.A. Racicot Director
Signe Keith Attoe Director
<PAGE>
EIGER TECHNOLOGY, INC.
Unaudited Statement of Consolidated Operations and Retained Earnings
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
For the nine months ended June 30 2000 2000 1999 1999
----------------------------------------------------------------------------------------------------------------------------
(Current Quarter) (Year-to-Date) (Last Year Quarter) (Year-to-Date)
$ $ $ $
<S> <C> <C> <C> <C>
Sales 12,970,000 46,017,000 1,742,000 7,426,000
Cost of Sales 11,765,000 40,935,000 1,339,000 5,821,000
----------- ----------- ----------- -----------
Gross Margin 1,205,000 5,082,000 403,000 1,605,000
----------- ----------- ----------- -----------
Expenses
Operating and Administrative 734,000 2,910,000 499,000 1,751,000
Amortization of Capital Assets 76,000 228,000 6,000 24,000
Amortization of Goodwill and Other Assets 64,000 198,000 8,000 27,000
Interest on Long-term Debt 20,000 52,000 14,000 49,000
Other Interest and Bank Charges 150,000 404,000 34,000 117,000
----------- ----------- ----------- -----------
1,044,000 3,792,000 561,000 1,968,000
----------- ----------- ----------- -----------
Income (Loss) from Operations 161,000 1,290,000 (158,000) (363,000)
Non-recurring Factory Moving Costs -- (1,650,000) -- --
Other Income 364,000 481,000 -- --
----------- ----------- ----------- -----------
Income before Taxes 525,000 121,000 (158,000) (363,000)
Provision for Income Taxes 168,000 69,000 (75,000) (171,000)
----------- ----------- ----------- -----------
Income before Non-controlling Interest 357,000 52,000 (83,000) (192,000)
Non-controlling Interest 209,000 442,000 (70,000) (126,000)
----------- ----------- ----------- -----------
Net Income (Loss) for the Period 148,000 (390,000) (13,000) (66,000)
Retained Earnings (Deficit),
Beginning of Period (1,671,000) (401,000) 229,000 247,000
Prior Period Adjustment
of Non-controlling Interest -- (167,000) -- 34,000
Costs Related to Issuance of Share Capital (474,000) (1,039,000) -- --
----------- ----------- ----------- -----------
Retained Earnings (Deficit), End of Period (1,997,000) (2,176,000) 216,000 215,000
=========== =========== =========== ===========
</TABLE>
<PAGE>
EIGER TECHNOLOGY, INC.
Unaudited Statement of Consolidated Changes in Cash Position
--------------------------------------------------------------------------------
For the nine months ended June 30 2000 1999
--------------------------------------------------------------------------------
$ $
Cash Provided (Used In)
Operating Activities
Net Income (Loss) for the Period (390,000) (66,000)
Items not Involving Cash
Amortization 426,000 159,000
----------- -----------
36,000 93,000
Changes in Non-cash Operating Accounts
Accounts Receivable (6,845,000) 86,000
Inventories (5,741,000) 603,000
Prepaid Expenses 19,000 (35,000)
Accounts Payable 1,804,000 (1,138,000)
Current Income Taxes (248,000) (218,000)
Future Income Taxes (138,000) --
Non-controlling Interest 442,000 (126,000)
----------- -----------
(10,671,000) (735,000)
----------- -----------
Investment Activities
Purchase of Capital Assets (2,186,000) (840,000)
Non-controlling Interest 1,611,000 --
Long-term Investments -- (1,157,000)
Goodwill and Other Assets (6,238,000) --
----------- -----------
(6,813,000) (1,997,000)
----------- -----------
Financing Activities
Capital Lease Obligation 14,000 (55,000)
Other Long-term Debt 337,000 (96,000)
Common Shares Issued 34,784,000 5,000,000
Costs Related to Issuance of Share Capital (1,039,000) --
Contributed Capital 570,000 --
----------- -----------
34,666,000 4,849,000
----------- -----------
Increase (Decrease) in Cash Position During Period 17,182,000 2,117,000
Cash Position, Beginning of Period (587,000) (1,302,000)
----------- -----------
Cash Position, End of Period 16,595,000 815,000
=========== ===========
Analysis of Cash Position:
Cash and Marketable Securities 5,685,000 2,050,000
Cash Held in Escrow 14,667,000 --
Bank Indebtedness (3,757,000) (1,235,000)
----------- -----------
16,595,000 815,000
=========== ===========
<PAGE>
Eiger Technology, Inc.
Supplementary Information
As at June 30, 2000
Schedule A:
Financial Information - see unaudited consolidated financial statements
Schedule B:
#1 - See attached schedule of Administrative Expenses
- See consolidated financial statements
#2 a) Options Exercised - April 1, 2000 to June 30, 2000
Keith Attoe 50,000 @.85
Walter Keyser 50,000 @.85
#2 b) Options Granted - April 1, 2000 to June 30, 2000
Keith Attoe 50,000 4.75 06/12/05
Gerry A. Racicot 50,000 4.75 06/12/05
Ernest A. Kolenda 50,000 4.75 06/12/05
Sidney S. Harkema 50,000 4.75 06/12/05
Walter Keyser 50,000 4.75 06/12/05
Robert Hoegler 50,000 4.75 06/12/05
Morden Lazarus 50,000 4.75 06/12/05
#3 a) 28,940,858 shares issued and outstanding
#3 b) Outstanding Options:
NAME # OF SHARES PRICE EXPIRY DATE
Keith Attoe 50,000 .60 09/08/00
Keith Attoe 100,000 .90 11/11/00
Walter Keyser 50,000 .70 09/30/00
Ken Rampersad 50,000 .85 04/17/00
Robert Kim 150,000 .60 04/02/01
Steve Kim 50,000 .60 04/02/01
Robert Kim 350,000 .60 04/02/01
Tony Francolini 100,000 1.40 10/25/04
Scott St. Amand 8,000 1.40 10/25/04
Ray Dirks 500,000 1.47 11/17/02
George Swan 25,000 1.40 11/25/02
Keith Attoe 250,000 4.50 02/01/04
Gerry A. Racicot 250,000 4.50 02/01/04
2845354 Canada Inc. 250,000 4.50 02/01/04
c/o Dominique Gendeon
Keith Attoe 50,000 4.75 06/12/05
Gerry A. Racicot 50,000 4.75 06/12/05
Ernest A. Kolenda 50,000 4.75 06/12/05
<PAGE>
Sidney S. Harkema 50,000 4.75 06/12/05
Walter Keyser 50,000 4.75 06/12/05
Robert Hoegler 50,000 4.75 06/12/05
Morden Lazarus 50,000 4.75 06/12/05
#3 c) Total number of shares in escrow - nil
#3 d) List of Directors
Gerry Racicot Walter Keyser
Robert Hoegler Keith Attoe
Ernest Kolenda Morden C. Lazarus
Sidney Harkema
<PAGE>
EIGER TECHNOLOGY INC.
Notes to the Financial Statements June 30, 2000
--------------------------------------------------------------------------------
Reconciliation to U.S. GAAP:
--------------------------------------------------------------------------------
Revelant differences between accounting principles generally accepted in Canada
(Cdn. GAAP") compared to those principles generally accepted in the United
States of America ("U.S. GAAP") are as follows:
None.
Reconciliations:
2000 1999
----------- -----------
$ $
Net Income
- per Cdn. GAAP (390,000) (66,000)
=========== ===========
- per U.S. GAAP (390,000) (66,000)
=========== ===========
Retained Earnings (Deficit)
- End of Period per Cdn. GAAP (1,977,000) 215,000
- Adjustments re Depreciable Life
of Computer Equipment (30,000) (30,000)
- Future Income Tax Adjustment 12,000 12,000
----------- -----------
- End of Year per U.S. GAAP (1,995,000) 197,000
=========== ===========
Total Assets
- per Cdn. GAAP 56,278,000 12,319,000
- Adjustments re Depreciable Life
of Computer Equipment (30,000) (30,000)
- Deferred Tax Adjustment 12,000 12,000
----------- -----------
- per U.S. GAAP 56,260,000 12,301,000
=========== ===========
