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
2nd quarter statements dated March 31, 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: May 29, 2000 Mr. Gerry A. Racicot
President
<PAGE>
Management Review
Eiger Technology, Inc. (Eiger) is pleased to report its' significant business
progress during the second quarter of its fiscal year. Eiger's sales of $33
million dollars, a 480% increase over 1999, is a strong indication of the growth
rate that is expected to continue during this fiscal year. Our presence in the
computer peripheral business is strengthening with the 56K, DSL modem and MP3
player, sales being strong and continuing to grow. MP3 player sales continue to
strengthen as a major North American computer manufacturer and a Korean
conglomerate have committed orders of more than $30,000,000US over the next 12
months.
Eiger has signed a letter of intent with Standard Telecom of South Korea to
purchase a 25% interest in Nixxo Technology, Inc. (Nixxo), a California company
based in San Jose, CA Nixxo is a GSM chip set developer with production
anticipated in the first calendar quarter of 2001. This strategic alliance
strengthens our sales in tow ways as follows: Eiger will be a distributor for
the GSM chip set and Eiger will also be the manufacturer of certain GSM phone
sets. This anticipated increase in sales of between $15,000,000 and $25,000,000
will materialize during the 2001 fiscal year. The range of sales volume is
dependent on the production and shipment scheduling issues. This transaction
will be consummated upon completion of Eiger due diligence to their
satisfaction.
EigerNet, Inc. (formerly Point Multimedia Systems Inc.) has opened a new factory
in Seoul with state of the art equipment. The second line was 30 days late
resulting in a delay in shipments during March and April, 2000. The new factory
increased production from 100,000 units per month to 575,000 units per months, a
significant milestone in the history of our company.
Eiger Labs Group, Inc. has hired Manny Tan, a senior sales and marketing
executive to head its North American sales initiative for Eiger brand products
especially it's MP3 player.
Eiger's management looks forward to the balance of 2000 being a growth year
while entrenching itself further in the computer peripheral world market place.
<PAGE>
EIGER TECHNOLOGY, INC.
Unaudited Consolidated Balance Sheet
--------------------------------------------------------------------------------
March 31 2000 1999
--------------------------------------------------------------------------------
$ $
Assets
Current
Cash and Marketable Securities 10,182,000 0
Cash Held in Escrow 14,667,000 0
Accounts Receivable 10,738,000 1,887,000
Inventories 8,406,000 3,101,000
Prepaid Expenses 225,000 100,000
----------- -----------
44,218,000 5,088,000
Capital 3,345,000 1,844,000
Future Income Tax Benefits 123,000 0
Long-term Investments 342,000 1,587,000
Goodwill and Other 9,394,000 567,000
----------- -----------
57,422,000 9,086,000
=========== ===========
Liabilities and Shareholders' Equity
Current
Bank Indebtedness 5,084,000 2,098,000
Accounts Payable and Accrued Liabilities 6,929,000 1,940,000
Income Taxes Payable (Recoverable) 195,000 (96,000)
Current Portion of Lease Obligation 51,000 66,000
Current Portion of Long-term Debt 120,000 87,000
----------- -----------
12,379,000 4,095,000
----------- -----------
Long-term
Obligation Under Capital Lease 8,000 7,000
Long-term Debt 1,078,000 1,526,000
----------- -----------
1,086,000 1,533,000
----------- -----------
Future Income Tax Liabilities 0 176,000
----------- -----------
Non-Controlling Interest 3,400,000 236,000
----------- -----------
Shareholders' Equity
Share Capital 41,441,000 2,176,000
Contributed Surplus 787,000 217,000
Retained Earnings (Deficit) (1,671,000) 653,000
----------- -----------
40,557,000 3,046,000
----------- -----------
57,422,000 9,086,000
=========== ===========
On Behalf of the Board:
signed Gerry Racicot Director
Signed Keith Attoe Director
<PAGE>
EIGER TECHNOLOGY, INC.
Unaudited Statement of Consolidated Operations and Retained Earnings
--------------------------------------------------------------------------------
For the six months ended March 31 2000 1999
--------------------------------------------------------------------------------
$ $
Sales 33,047,000 5,684,000
Cost of Sales 29,170,000 4,482,000
----------- -----------
Gross Margin 3,877,000 1,202,000
----------- -----------
Expenses
Operating and Administrative 2,162,000 1,088,000
Management Fees 14,000 60,000
Amortization of Capital Assets 152,000 86,000
Amortization of Goodwill and Other Assets 134,000 20,000
Interest on Long-term Debt 32,000 10,000
Other Interest and Bank Charges 254,000 143,000
----------- -----------
2,748,000 1,407,000
----------- -----------
Income (Loss) from Operations 1,129,000 (205,000)
Non-recurring Factory Moving Costs (1,650,000) 0
Other Income 117,000 424,000
----------- -----------
Income before Taxes (404,000) 219,000
Provision for Income Taxes (99,000) (96,000)
----------- -----------
Income before Non-controlling Interest (305,000) 315,000
Non-controlling Interest 233,000 (56,000)
----------- -----------
Net Income (Loss) for the Period (538,000) 371,000
Retained Earnings (Deficit), Beginning of Period (401,000) 247,000
Prior Period Adjustment of Non-controlling Interest (167,000) 35,000
Costs Related to Issuance of Share Capital (565,000) 0
----------- -----------
Retained Earnings (Deficit), End of Period (1,671,000) 653,000
<PAGE>
EIGER TECHNOLOGY, INC.
Unaudited Statement of Consolidated Changes in Cash Position
--------------------------------------------------------------------------------
For the six months ended March 31 2000 1999
--------------------------------------------------------------------------------
$ $
Cash Provided (Used In)
Operating Activities
Net Income (Loss) for the Period (538,000) 371,000
Items not Involving Cash
Amortization 286,000 106,000
Negotiated Loan Reduction 0 (424,000)
Changes in Non-Cash
Operating Accounts
Accounts Receivable (5,493,000) 230,000
Inventories (4,400,000) 114,000
Prepaid Expenses 44,000 (57,000)
Accounts Payable 4,134,000 (422,000)
Current Income Taxes (42,000) (83,000)
Future Income Taxes (298,000) 0
Non-controlling Interest 233,000 (56,000)
----------- -----------
(6,074,000) (221,000)
----------- -----------
Investment Activities
Purchase of Capital Assets (1,441,000) (78,000)
Non-controlling Interest 1,611,000 0
Long-term Investments 0 (376,000)
Other Assets (6,096,000) 0
----------- -----------
(5,926,000) (454,000)
----------- -----------
Financing Activities
Capital Lease Obligation 22,000 (47,000)
Other Long-term Debt (13,000) (74,000)
Common Shares Issued 32,338,000 0
Costs Related to Issuance of Share Capital (565,000) 0
Contributed Capital 570,000 0
----------- -----------
32,352,000 (121,000)
----------- -----------
Increase (Decrease) in Cash Position During Period 20,352,000 (796,000)
Cash Position, Beginning of Period (587,000) (1,302,000)
----------- -----------
Cash Position, End of Period 19,765,000 (2,098,000)
=========== ===========
Analysis of Cash Position:
Cash and Marketable Securities 10,182,000 0
Cash Held in Escrow 14,667,000 0
Bank Indebtedness (5,084,000) (2,098,000)
----------- -----------
19,765,000 (2,098,000)
<PAGE>
Eiger Technology, Inc.
Supplementary Information
As at March 31, 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 - January 1, 2000 to March 31, 2000
Beverly Boorsma 15,000 @.85
Ken Rampersad 50,000 @.55
Dingeman Kleppe 30,000 @.85
Walter Keyser 50,000 @.85
Beverly Boorsma 5,000 @ 1.40
Scott St. Amand 12,000 @ 1.40
Leslie Babb 5,000 @ 1.40
Cheon Hong Kim 25,000 @ .80
Paul Bates 20,000 @ 1.40
Robert Kim 50,000 @ .60
#2 b) Options Granted - January 1st to March 31, 2000
Keith Attoe 250,000 4.50 02/01/04
Gerry A. Racicot 250,000 4.50 02/01/04
2845354 Canada Inc.
c/o Dominique Gendeon 250,000 4.50 02/01/04
#3 a) 26,646,308 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
Keith Attoe 100,000 .85 04/17/00
Walter Keyser 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.
c/o Dominique Gendeon 250,000 4.50 02/01/04
#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 March 31, 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 .............................. (538,000) 371,000
========== =========
- per U.S. GAAP .............................. (538,000) 371,000
========== =========
Retained Earnings (Deficit)
- End of Period per Cdn. GAAP ............... (1,671,000) 653,000
- 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 .................. (1,689,000) 635,000
========== =========
Total Assets
- per Cdn. GAAP .............................. 57,422,000 9,086,000
- Adjustments re Depreciable Life
of Computer Equipment .................... (30,000) (30,000)
- Deferred Tax Adjustment .................... 12,000 12,000
---------- ---------
- per U.S. GAAP .............................. 57,404,000 9,068,000
