SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
_________________________________
QUARTERLY REPORT PURSUANT TO SECTION 12 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For quarter ended March 31, 1998 Commission File Number: 333-34585
JORDAN TELECOMMUNICATION PRODUCTS, INC.
(Exact name of registrant as specified in charter)
Delaware 36-4173125
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
ArborLake Centre, Suite 550 60015
1751 Lake Cook Road (Zip Code)
Deerfield, Illinois
(Address of Principal Executive Offices)
Registrant's telephone number, including area code:
(847) 945-5591
Former name, former address and former fiscal year, if changed since last
report: Not applicable.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding twelve (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 ninety (90) days.
Yes X No
The aggregate market value of voting stock held by non-affiliates of the
Registrant is not determinable as such shares were privately placed and there
is currently no public market for such shares.
The number of shares outstanding of Registrant's Common Stock as of May
14, 1998: 994,638.889
<PAGE>
JORDAN TELECOMMUNICATION PRODUCTS, INC.
INDEX
PART I.FINANCIAL INFORMATION PAGE NO.
Item 1. Financial Statements (Unaudited) 4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 12
Item 3. Quantitative and Qualitative Disclosures About
Market Risk 15
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 16
Item 2. Changes in Securities 16
Item 3. Defaults upon Senior Securities 16
Item 4. Submission of Matters to a Vote of Securities
Holders 16
Item 5. Other Information 16
Item 6. Exhibits and Reports on Form 8-k 16
Signatures 17
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (Unaudited)
PAGE NO.
Condensed Consolidated Balance Sheets at March 31, 1998,
and December 31, 1997 4
Condensed Consolidated Statements of Operations for the
three months ended March 31, 1998 and 1997 5
Condensed Consolidated Statements of Cash Flows for three
months ended March 31, 1998 and 1997 6
Notes to Condensed Consolidated Financial Statements 7
<PAGE>
JORDAN TELECOMMUNICATION PRODUCTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(ALL DOLLAR AMOUNTS IN THOUSANDS)
March 31, December 31,
1998 1997
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 9,913 $ 8,988
Accounts receivable, net 45,508 48,733
Inventories 46,792 41,815
Prepaid expenses and other current assets 3,153 2,956
Total Current Assets 105,366 102,492
Property, plant, and equipment, net 36,460 35,332
Goodwill, net 175,842 166,098
Deferred financing costs, net 9,399 9,781
Deferred income taxes 6,000 6,000
Other assets, net 15,395 14,811
Total Assets $348,462 $334,514
LIABILITIES AND SHAREHOLDERS' EQUITY (NET CAPITAL DEFICIENCY)
Current Liabilities:
Accounts payable $ 20,707 $ 18,803
Accrued interest payable 3,397 8,236
Accrued expenses and other current liabilities 17,641 22,290
Due to affiliated company 2,184 2,531
Short-term notes payable 1,403 641
Current portion of long-term debt 1,346 1,197
Total Current Liabilities 46,678 53,698
Line of credit 89,000 68,000
Other long-term debt 295,295 290,830
Other non-current liabilities 4,483 5,179
Minority interest 3,790 3,376
13.25% Senior Preferred Stock at liquidation
value; 26,754.0181 shares and 25,889.3836 shares issued
and outstanding at March 31, 1998 and December 31, 1997,
respectively 27,278 26,413
Junior Preferred Stock at liquidation value;
2,000 shares issued and outstanding at March
31, 1998 and December 31, 1997 12,894 17,077
Shareholders' Equity (Net Capital Deficiency):
Common Stock ($0.01 par value); 1,000,000 shares
authorized; 994,639 shares issued and outstanding
at March 31, 1998 and December 31, 1997,
respectively 10 10
Additional paid-in capital 1,982 1,982
Notes receivable from shareholders (877) (877)
Accumulated other comprehensive income (loss) (300) (488)
Retained earnings (Accumulated deficit) (131,771) (130,686)
Total Shareholders' Equity (Net
Capital Deficiency) (130,956) (130,059)
Total Liabilities and Shareholders' Equity
(Net Capital Deficiency) $348,462 $334,514
See accompanying notes to condensed consolidated financial statements.
<PAGE>
JORDAN TELECOMMUNICATION PRODUCTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(ALL DOLLAR AMOUNTS IN THOUSANDS)
Three Months Ended
March 31,
1998 1997
Net Sales $72,101 $47,466
Cost of sales, excluding depreciation 46,880 29,076
Selling, general, and administrative expenses 13,781 9,546
Depreciation 1,659 1,228
Amortization of goodwill and other 1,936 1,114
Management fees and other 1,738 797
Operating income 6,107 5,705
Other (income) and expense:
Interest expense 9,943 4,350
Interest income (146) (24)
Other (18) (48)
Total other expenses 9,779 4,278
Income (loss) before income taxes, minority
Interest and extraordinary item (3,672) 1,427
Provision for income taxes 650 1,304
Income (loss) before minority interest and
Extraordinary item (4,322) 123
Minority interest 81 221
Loss before extraordinary item (4,403) (98)
Extraordinary item -0- (319)
Net loss $(4,403) $ (417)
See accompanying notes to condensed consolidated financial statements.
<PAGE>
JORDAN TELECOMMUNICATION PRODUCTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(ALL DOLLAR AMOUNTS IN THOUSANDS)
Three Months Ended
March 31,
1998 1997
Cash flows from operating activities:
Net loss $(4,403) $ (417)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Depreciation and amortization 3,595 2,342
Deferred income taxes (94) (147)
Minority interest 414 (136)
Amortization of deferred financing fees 411 -0-
Non-cash interest on Senior Notes and Senior
Subordinated Notes 2,643 -0-
Changes in operating assets and liabilities
(Net of effects from acquisitions):
Accounts receivable 4,182 1,751
Inventories (4,757) (5,035)
Prepaid expenses and other current assets (170) (41)
Non-current assets (128) 409
Accounts payable, accrued interest payable,
and accrued expenses and other (2,467) (321)
Non-current liabilities 316 824
Due to affiliated company (347) 2,223
Other -0- (8)
Net cash (used in) provided by operating
activities (805) 1,444
Cash flows from investing activities:
Capital expenditures (1,637) (1,787)
Acquisitions of subsidiaries (15,500) -0-
Cash acquired in acquisitions of subsidiaries 1,304 -0-
Additional purchase price payments, SARA payments
and other (6,527) -0-
Net cash used in investing activities (22,360) (1,787)
Cash flows from financing activities:
Net borrowings from line of credit 21,000 -0-
Borrowings under other long-term debt and
capital lease agreements 2,900 -0-
Repayment of long-term debt and capital leases (266) (1,218)
Net advances to affiliated company -0- (353)
Net cash provided by (used in) financing
activities 23,634 (1,571)
Effect of exchange rate changes on cash 456 290
Net increase (decrease) in cash and cash equivalents 925 (2,204)
Cash and cash equivalents at beginning of period 8,988 6,385
Cash and cash equivalents at end of period $ 9,913 $4,181
See accompanying notes to condensed consolidated financial statements.
<PAGE>
JORDAN TELECOMMUNICATION PRODUCTS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(ALL DOLLAR AMOUNTS IN THOUSANDS)
A.ORGANIZATION
The unaudited condensed consolidated financial statements, which reflect
all adjustments that management believes necessary to present fairly the
results of interim operations and are of a normal recurring nature, should be
read in conjunction with the Company's consolidated financial statements for
the year ended December 31, 1997, included in the Company's annual report on
Form 10-K. The Company conducts its operations exclusively through its
subsidiaries. Results of operations for the interim periods are not
necessarily indicative of annual results of operations.
B.INVENTORIES
Inventories are summarized as follows:
March 31,December 31,
1998 1997
Raw Materials $20,969 $16,215
Work in process 2,930 2,769
Finished goods 22,893 22,831
$46,792 $41,815
C.ACQUISITIONS OF SUBSIDIARIES
On January 20, 1998, the Company through a newly created subsidiary K&S
Sheet Metal Holdings (K&S Holdings), a subsidiary of 80% owned Bond
Technologies, purchased the stock of K&S Sheet Metal (K&S). K&S is a
manufacturer of precision metal enclosures for electronic original equipment
manufacturers. K&S is located in Huntington Beach, California.
The purchase price of $15,500, including estimated costs incurred
directly related to the transaction, has been preliminarily allocated to
working capital of $2,257, property, plant and equipment of $1,002,
non-compete agreements of $1,545 and other assets of $91 resulting in an
excess purchase price over net identifiable assets of $10,605. The
acquisition was financed with $14,000 of borrowings from the Company's
revolving credit agreement and $1,500 of a subordinated seller note.
On October 31, 1997, the Company, through its newly formed 70% owned
subsidiary Telephone Services Holdings, Inc. (TSI), purchased the stock of
Telephone Services, Inc. The purchase price of $53,303, including costs
incurred directly related to the transaction, has been allocated to working
capital of $3,864, property, plant and equipment of $1,528, non-compete
agreement of $2,000, and noncurrent assets of $107, resulting in an excess
purchase price over net identifiable assets of $45,804. The acquisition was
financed with $48,000 of borrowings from the Company's revolving credit
agreement, $5,000 of subordinated seller notes and the assumption of a $303
deferred purchase agreement.
<PAGE>
Certain sellers of TSI are entitled to additional payments for their
stock, contingent upon operating results as defined in the purchase
agreement. The maximum contingent consideration to be paid is $4,000.
On September 2, 1997, the Company purchased the assets of Engineered
Endeavors, Inc. (EEI). The purchase price of $41,500, including costs incurred
directly related to the transaction, has been allocated to working capital of
$2,068, property, plant, and equipment of $799, noncompetition agreement of
$2,500, noncurrent assets of $14, and resulted in an excess purchase price
over net identifiable assets of $36,119. The acquisition was financed with
$21,500 of cash and $20,000 of borrowings from the Company's line of credit.
On May 30, 1997, Jordan purchased the assets of LoDan West, Inc.
(LoDan). The purchase price of $17,000, including costs incurred directly
related to the transaction, was allocated to working capital of $5,066,
property, plant and equipment of $783, noncompetition agreement of $250,
noncurrent assets of $41, and resulted in an excess purchase price over net
identifiable assets of $10,860. LoDan was one of the Telecommunications
Companies that was subsequently acquired by the Company on July 25, 1997.
Unaudited proforma information with respect to the Company as if the 1998
and 1997 acquisitions had occurred on January 1, 1998 and 1997 is as follows:
(Unaudited)
Three Months Ended March 31,
1998 1997
Net Sales $73,014 $68,846
Income (loss) before income taxes
and minority interest (3,401) 2,436
Net Income (loss) (4,295) 307
D.COMPREHENSIVE INCOME
As of January 1, 1998, the Company adopted the Financial Accounting
Standards Board's Statement of Financial Accounting Standards No. 130,
"Reporting Comprehensive Income". Statement 130 establishes new rules for the
reporting and display of comprehensive income and its components; however, the
adoption of this Statement had no impact on the Company's net income or
shareholders' equity. Statement 130 requires foreign currency translation
adjustments, which prior to adoption were reported separately in shareholders'
equity, to be included in other comprehensive income. Prior year financial
statements have been reclassified to conform to the requirements of Statement
130.
During the first quarter of 1998 and 1997, total comprehensive income
(loss) was ($4,215) and ($870), respectively.
E.BUSINESS SEGMENT INFORMATION
See Part 1 "Financial Information" - Item 2 "Management's Discussion and
Analysis of Financial Condition and Results of Operations" for the Company's
business segment disclosures. There have been no changes from the Company's
December 31, 1997 consolidated financial statements in the basis of
segmentation or in the basis of measurement of segment profit or loss.
<PAGE>
F.INCOME TAXES
Income (loss) before income taxes and minority interest consists of the
following:
Year Ended March 31,
1998 1997
From U.S. operations $(2,796) $1,396
From foreign operations (876) 31
Total income (loss) before income taxes and
minority interest $(3,672) $1,427
Deferred income taxes consist of the following:
March 31, December 31,
1998 1997
Deferred tax liabilities:
Tax over book depreciation and amortization $2,631 $ 2,345
Equity investment in Dura-Line (Israel) Ltd. 114 114
Other 9 9
2,754 2,468
Deferred tax assets:
Accrued stock appreciation rights 3,386 3,772
U.S. net operating loss carryforwards 8,466 7,137
Foreign net operating loss carryforwards 2,889 3,582
Inventory reserves 393 393
Uniform capitalization of inventory 240 240
Book over tax depreciation and amortization 5,687 5,564
Accrued vacation 275 275
Accrued employee benefits 206 206
Foreign currency translation adjustment 594 594
Other 422 422
22,558 22,185
Valuation allowance for deferred tax assets (13,804) (13,717)
Net deferred tax assets $6,000 $ 6,000
<PAGE>
The provision (benefit) for income taxes differs from the amount of
income tax provision computed by applying the United States federal income tax
rate to income before income taxes and minority interest. A reconciliation of
the differences is as follows:
March 31,
1998
Computed statutory tax provision (benefit) $(1,248)
Increase (decrease) resulting from:
Nondeductible depreciation and amortization 415
Higher effective income taxes of other countries 153
State and local taxes 50
Foreign subsidiary losses without a current-year
tax benefit 611
U.S. losses without a current-year tax benefit 780
Other, net (111)
Provision for income taxes $ 650
G.EXTRAORDINARY ITEM
On January 1, 1997, the Company's Reno, Nevada production facility was
flooded. Uninsured property damage and lost production was estimated to be
$319 at March 31, 1997.
H.CAPITAL STOCK
On February 1, 1998, the Company issued 864.6345 shares of Senior
Preferred Stock as payment of dividends through that date.
The Junior Preferred Stock has a liquidation value, in the aggregate,
equal to the sum of (i) $20,000; plus (ii)(A) for the period from the date of
issuance to August 1, 2002, plus or minus 95% of the cumulative net income
(loss) of the Company for such period and (B) for the period subsequent to
August 1, 2002, the amount of any preferred dividends thereon not paid on any
dividend payment date, whether or not declared, which shall be added to the
liquidation value at such dividend payment date. Commencing on the earlier of
August 1, 2002 or the Early Redemption Date, as defined, holders of the Junior
Preferred Stock will be entitled to receive dividends are cumulative, whether
or not earned or declared, and are payable quarterly in arrears on March 31,
June 30, September 30, and December 31 of each year following the date
dividends commence accruing. Through December 31, 1997, $2,923 of dividends
were accrued on the Junior Preferred Stock, representing 95% of the Company's
net loss from July 21, 1997 to December 31, 1997, which reduced the
liquidation value of the Junior Preferred Stock to $17,077. An additional
$4,183 of dividends were accrued on the Junior Preferred Stock during the
quarter ended March 31, 1998, which reduced the liquidation value of the
Junior Preferred Stock to $12,894.
I.FOREIGN EXCHANGE INSTRUMENTS AND RISK MANAGEMENT
The Company enters into foreign currency forward exchange contracts to
hedge transactions and firm commitments that are denominated in foreign
currencies (principally the Czech Koruna) and not to engage in currency
<PAGE>
speculation. The Company primarily utilizes forward exchange contracts with a
duration of one year or less. Gains or losses on hedges of transaction
exposures are included in income in the period in which exchange rates
change. Gains and losses on contracts which hedge specific foreign currency
denominated commitments, primarily royalty payments from the Company's Czech
operations, are deferred and recognized in the basis of the transactions
underlying the commitments.
Forward exchange contracts generally require the Company to exchange U.S.
dollars for foreign currencies at maturity, at rates that are agreed to at
inception of the contracts. If the counterparties to the exchange contracts
(primarily highly-rated financial institutions) do not fulfill their obligations
to deliver the contracted currencies, the Company could be at risk for any
currency related fluctuation.
The Company has $6,884 notional amount of foreign currency forward
exchange contracts outstanding at March 31, 1998 (none at December 31, 1997).
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(ALL DOLLAR AMOUNTS IN THOUSANDS)
RESULTS OF OPERATIONS
Summary financial information by business segment included in the
financial statements of the Company is as follows:
Three Months Ended
March 31,
1998 1997
Net Sales
Infrastructure Products and Equipment $28,131 $24,715
Electronic Connectors and Components 10,988 11,100
Custom Cable Assemblies and Specialty Wire & Cable 32,982 11,651
$72,101 $47,466
Operating Income
Infrastructure Products and Equipment $ 1,730 $ 3,037
Electronic Connectors and Components 2,166 2,376
Custom Cable Assemblies and Specialty Wire & Cable 3,917 1,032
Unallocated amounts:
Management fees (733) (740)
Corporate expenses (973) (-0-)
Total Operating Income 6,107 5,705
Interest expense (9,943) (4,350)
Interest income 146 24
Other income (expense) 18 48
Income (loss) before income taxes, minority interest
and extraordinary item $(3,672) $ 1,427
Consolidated Results of Operations
Net sales for the three months ended March 31, 1998 increased $24.6
million or 52%, to $72.1 million from $47.5 million for the same period in
1997. The increase in sales was due primarily to the acquisitions of LoDan,
EEI and TSI,
which were purchased after March 31, 1997. Combined, these acquisitions
accounted for approximately 97% of the net sales increase. The balance of the
net sales increase was attributed to higher sales of custom cable assemblies,
power conditioning systems and CATV products, which were mostly offset by
lower cable conduit sales in the United States and the United Kingdom.
Operating income for the three months ended March 31, 1998 increased $0.4
million, or 7%, to $6.1 million from $5.7 million for the same period in
1997. This increase in operating income was due to the acquisitions described
above, which added $3.2 million in operating income. The increase from these
acquisitions was offset by lower operating income from the Company's
Infrastructure Segment due to lower cable conduit sales, higher amortization
costs relating to the new acquisitions, and the addition of shared general,
<PAGE>
administrative and overhead expenses of Jordan Industries, and the Company's
corporate expenses.
Interest expense for the three months ended March 31, 1998 increase $5.5
million to $9.9 million from $4.4 million for the same period in 1997,
reflecting higher interest costs relating to the financing of the new
acquisitions and the Company's July 1997 debt and equity offerings.
For information concerning the provision for income taxes see Note F of
the Notes to the Condensed Consolidated Financial Statements.
Infrastructure Products and Equipment Segment
Net sales for the three months ended March 31, 1998 increased $3.4
million, or 14%, to $28.1 million from $24.7 million for the same period in
1997. The acquisition of EEI and higher sales of power conditioning systems
and CATV products accounted for the increase. These increases were offset by
a 15% decrease in cable conduit sales due to lower sales in the United States
(US) and the United Kingdom (UK). The decrease in US sales was caused by
severe weather conditions in west coast and southern markets. The decrease in
UK sales was caused by a strong currency differential between the British
pound to other European currencies, which reduced export sales from this
facility. In addition, sales in the Czech Republic,
which were up 26% in local currency, were up only 3% as these sales lost value
when translated into stronger US dollars. Finally, the Company
generated minimal sales from its cable conduit facility in China due to the
Chinese New Year and upgrading of the facility's electrical systems to
accommodate two new cable conduit extrusion lines.
Operating income for the period decreased $1.3 million, or 43%, to $1.7
million from $3.0 million for the same period in 1997. This decrease was the
result of lower cable conduit sales and lower gross profits from cable conduit
products due to lower overhead absorption and lower average selling prices
in the US.
Electronic Connectors and Components Segment
Net sales for the three months ended March 31, 1998 decreased $0.1
million to $11.0 million from $11.1 million for the same period in 1997. This
decrease was due to lower domestic connector sales at AIM and Cambridge, which
were offset by stronger sales of RF Connectors through Johnson Components.
Operating income for the period decreased $0.2 million to $2.2 million
from $2.4 million for the same period in 1997. This decrease was caused by
the lower sales of the higher margin products of AIM and Cambridge, which led
to lower overall gross margins in this segment.
Custom Cable Assemblies and Specialty Wire and Cable Segment
Net sales for the three months ended March 31, 1998 increased $21.3
million, or 182%, to $33.0 million from $11.7 million for the same period in
1997. The acquisitions of LoDan, TSI and K&S, which were all purchased after
March 31, 1997, accounted for 93% of the increase. The balance of the
increase was attributable to stronger custom cable assembly sales at Bond.
<PAGE>
Operating income for the period increased $2.9 million, or 290%, to $3.9
million from $1.0 million for the same period in 1997. The entire increase
was due to the new acquisitions.
LIQUIDITY AND CAPITAL RESOURCES
In general, the Company requires liquidity for working capital, capital
expenditures, interest, taxes, debt repayment and its acquisition strategy.
Of primary importance are the Company's working capital requirements, which
increase whenever the Company experiences strong incremental demand or
geographical expansion. The Company expects to satisfy its liquidity
requirements through a combination of funds generated from operating
activities and the funds available under its revolving line of credit
agreement.
Operating activities. Net cash used in operating activities for the
three months ended March 31, 1998 was $0.8 million, compared to $1.4 million
provided from activities during the same period in 1997. The increase in cash
requirements was primarily the result of lower operating margins and higher
cash interest expense. Inventory increased as a result of inclement weather
conditions which delayed shipment of several cable conduit orders.
Investing activities. Capital expenditures were $0.2 million less for
the three months ended March 31, 1998 than for the comparable period in 1997.
The majority of the expenditures related to capital investments in the Custom
Cable Assembly segment for equipment and the Infrastructure segment to
expand the Company's Czech Republic facility and the installation of a new
extrusion line.
On January 20, 1998, the Company acquired the stock of K&S Sheet Metal,
Inc. for $15.5 million, including estimated costs of the transaction. The
purchase was financed with $14.0 million of borrowings from the Company's
revolving credit agreement and $1.5 million from a subordinated seller note.
During the period, the Company paid $2.2 million in purchase price
holdbacks relating to its acquisition of TSI in October 1997. The Company
also paid $1.4 million under its additional purchase price agreement for
Viewsonics, $1.9 million for the preferred stock of Dura-Line and $1.0 million
of deferred SAR payments owed to the previous owners to Dura-Line. In
addition, the Company made a $3.4 million deferred SAR payment relating to AIM
on May 4, 1998.
Financing activities. During the period, the Company increased its
borrowings under the terms of its revolving credit agreement by $21.0 million
to fund its acquisition of K&S and to meet its additional purchase price, SAR
and other acquisition related payments. The Company also financed $1.5
million of its purchase of K&S through a subordinated seller note from the
previous owners and management of K&S. The note bears interest at a rate of
8% and calls for principal payments of $0.7 million and $0.8 million in years
2004 and 2005, respectively. The Company also financed $0.3 million of
equipment relating to Johnson Components through a short-term note, $0.2
million of working capital and $0.3 of capital expenditures relating to its
cable conduit facility in India under its term loan agreement with Oriental
Bank of Commerce, and $0.6 million of capital expenditures relating to its
cable conduit facility in the Czech Republic under its short-term credit
agreement with Czech ABN Amro. The Company is party to a Credit Agreement
under which the Company is able to borrow up to approximately $110.0 million
to fund acquisitions and provide working capital and for other general
<PAGE>
corporate purposes. As of May 14, 1998,
the Company has approximately $18.0 million of available funds under this
Agreement.
The Company expects its principal sources of liquidity to be from its
operating activities and funding from the revolving line of credit agreement.
The Company further expects that these sources will enable it to meet its
long-term cash requirements for working capital, capital expenditures,
interest, taxes, debt repayment, and future acquisitions for at least the next
twelve months.
ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
Not applicable.
<PAGE>
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 Securities Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
1) 27. EDGAR Financial Data Schedule
<PAGE>
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.
JORDAN TELECOMMUNICATION PRODUCTS, INC.
by: /S/ Michael R. Elia
Michael R. Elia
Chief Financial Officer
May 14, 1998
<TABLE> <S> <C>
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<PERIOD-END> MAR-31-1998
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<RECEIVABLES> 46,357
<ALLOWANCES> (849)
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40,172
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