U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-QSB
(Mark One)
[X} QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1999
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
Commission file number 0 - 26013
MULTI-LINK TELECOMMUNICATIONS, INC.
---------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Colorado 84-1334687
------------------------------ -------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
4704 Harlan St, Suite 420, Denver, Colorado, 80212
--------------------------------------------------
(Address of principal executive offices)
(303) 831 1977
-------------------------
(Issuer's telephone number)
Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act 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 [ ] No [X]
State the number of shares outstanding of each of the issuer's classes of
equity, as of the latest practicable date:
Class Outstanding August 10, 1999
- -------------------------- ---------------------------
Common Stock, No par value 3,071,542 shares
Transitional Small Business Disclosure format: Yes [ ] No [X]
<PAGE>
INDEX
MULTI-LINK TELECOMMUNICATIONS, INC. AND SUBSIDIARY
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited) PAGE
Consolidated Balance Sheets, June 30, 1999 and September 30, 1998. 3
Consolidated Statements of Operations - Three Months Ended 4
June 30, 1999 and 1998; Nine months ended June 30, 1999 and 1998
Consolidated Statement of Cash Flows - Nine months Ended 5
June 30, 1999 and 1998;
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis or Plan of Operations 7
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. 11
Item 2. Changes in Securities and Use of Proceeds 11
Item 3. Defaults upon Senior Securities 11
Item 4. Submission of Matters to a Vote of Security holders 11
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K. 11
2
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEET
CURRENT PERIOD AND LAST AUDITED/YEAR END BALANCE SHEET
June 30, September 30,
1999 1999
-------- ------------
<S> <C> <C>
ASSETS
Current Assets
Cash & Cash Equivalents ............................................ $ 24,867 $ 555,852
Available for Sale Securities ...................................... 4,705,490 0
Accounts Receivable (Net of allowance
for doubtful accounts of $19,773 and $46,563) ...................... 251,538 104,284
----------- -----------
Total Current Assets ......................................... 4,981,895 660,136
Property & Equipment Net ............................................. 735,982 683,966
Other Assets
Deferred Financing and Offering Costs .............................. 123,979 161,369
Intangible Assets, net of amortization of .......................... 618,526 241,244
$479,306 and $349,160 respectively
----------- -----------
TOTAL ASSETS ......................................................... $ 6,460,382 $ 1,746,715
=========== ===========
LIABILITIES & STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts Payable .................................................. $ 78,535 $ 153,432
Accrued Expenses .................................................. 35,034 199,639
Deferred Revenue .................................................. 140,333 161,431
Notes Payable - Related Parties, Current Portion .................. 30,738 421,167
Notes Payable and Current Portion of Long Term Debt ............... 155,433 179,829
----------- -----------
Total Current Liabilities ................................... 440,073 1,115,498
Notes Payable - Related Parties, less Current Portion ................ 0 247,807
Long-Term Debt, Net of Current Portion ............................... 382,650 2,222,065
STOCKHOLDERS' DEFICIT
Preferred Stock, $.01 par value: 5,000,000 shares
authorized: none issued. Common Stock no par value;
20,000,000 shares authorized, 3,071,542 and
1,570,152 shares issued and outstanding, respectively ............. 7,682,162 442,591
Unrealized Loss on Securities Available for Sale .................. (5,821) 0
Accumulated Deficit ............................................... (2,038,682) (2,281,246)
----------- -----------
Total Stockholders Deficit .................................. 5,637,659 (1,838,655)
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT .......................... $ 6,460,382 $ 1,746,715
=========== ===========
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
3
<PAGE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED OPERATING STATEMENT
CURRENT QUARTER AND YEAR TO DATE
Three Months Ended Nine Months Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
-------- ------- -------- -------
<S> <C> <C> <C> <C>
NET REVENUES .............................................. $ 548,818 490,244 1,572,232 1,374,235
COST OF SERVICES AND PRODUCTS ............................. 102,918 86,303 305,328 266,295
----------- ----------- ----------- -----------
GROSS MARGIN .............................................. 445,900 403,941 1,266,904 1,107,940
EXPENSES
Sales & Advertising Expense ............................. 19,273 4,268 41,894 134,269
General & Administrative Expenses ....................... 201,307 138,166 543,784 448,114
Depreciation ............................................ 25,079 19,090 70,585 59,891
Amortization ............................................ 60,214 13,369 130,146 20,697
----------- ----------- ----------- -----------
Total Expenses .................................... 305,873 174,893 786,409 662,971
INCOME FROM OPERATIONS .................................... 140,027 229,048 480,495 444,969
INTEREST INCOME (EXPENSE) NET ............................. (61,377) (159,238) (237,931) (445,366)
----------- ----------- ----------- -----------
NET INCOME (LOSS) ......................................... $ 78,650 $ 69,810 $ 242,564 $ (397)
Unrealized Loss on Securities Available for Sale ........ (5,821) 0 (5,821) 0
----------- ----------- ----------- -----------
COMPREHENSIVE INCOME (LOSS) ............................... $ 72,829 $ 69,810 $ 236,743 (397)
=========== =========== =========== ===========
NET INCOME/(LOSS) PER COMMON SHARE
Basic .................................................. $ 0.03 $ 0.05 $ 0.13 $ 0.00
Diluted ................................................ $ 0.03 $ 0.04 $ 0.12 $ 0.00
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic .................................................. 2,419,454 1,498,151 1,914,244 1,495,230
Diluted ................................................ 2,641,838 1,601,392 2,098,354 1,495,230
</TABLE>
See accompanying Notes to Consolidated Financial Statement
4
<PAGE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED CASH FLOW
CURRENT QUARTER AND YEAR TO DATE
Nine Months Ended
June 30, June 30,
1999 1998
-------- --------
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES
NET INCOME (LOSS) ................................................................ $ 242,564 $ (397)
ADJUSTMENTS to reconcile net profit to net
cash generated from operating activities.
Depreciation and Amortization ................................................. 200,731 80,588
Amortization of Debt Discount and Issuance Costs .............................. 21,525 0
Common Stock Issued for Services and Loans .................................... 0 20,000
Bad Debt Expense .............................................................. 28,415 13,470
CHANGES IN OPERATING ASSETS & LIABILITIES
(Increase)/Decrease in Accounts Receivable .................................... (147,036) (43,026)
(Increase)/Decrease in Factoring Costs & Prepayments .......................... (28,633) 11,452
Increase/(Decrease) in Accounts Payable ....................................... (74,897) (92,974)
Increase/(Decrease) in Accrued Expenses ....................................... (162,162) (238,683)
Increase/(Decrease) in Deferred Revenue ....................................... (21,098) 61,781
----------- -----------
NET CASH (Used in)/Provided by Operating Activities .............................. 59,409 (187,789)
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Securities Available for Sale ..................................... (4,711,311) 0
Purchase of Subscriber Accounts ............................................... (507,428) (185,999)
Purchase of Fixed Assets ...................................................... (122,601) (27,306)
----------- -----------
Total Cash Flow (used in) Investing Activities ...................... (5,341,340) (213,305)
CASH FLOW FROM FINANCING ACTIVITIES
Offering Costs ................................................................ (1,624,609) 0
Payment of Related Party Notes Payable ........................................ (718,191) (17,429)
Advances Under Related Party Notes Payable .................................... 80,000 499,092
Payment of Notes Payable ...................................................... (2,200,533) (80,570)
Advances Under Notes Payable .................................................. 350,000 0
Repurchase of Outstanding Shares .............................................. (5,721) 0
Proceeds from Issuance of Common Stock ........................................ 8,870,000 0
----------- -----------
Total Cash Flow (used in)/provided
by Financing Activities ......................................... 4,750,946 401,093
INCREASE/(DECREASE) IN CASH & CASH EQUIVALENTS ................................... (530,985) 750
Cash and Cash Equivalents at the beginning of the period ......................... 555,852 16,980
----------- -----------
Cash and Cash Equivalents at the end of the period ............................... $ 24,867 $ 17,730
=========== ===========
SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION
Cash Paid for Interest ........................................................... $ 224,837 $ 268,907
----------- -----------
Conversion of Note Payable to Equity ............................................. $ 35,000 $ 20,000
----------- -----------
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Note 1 Basis of Presentation
The accompanying unaudited financial statements of Multi-Link
Telecommunications, Inc. ("Multi-Link" or the "Company") have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-QSB and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management the financial statements
include all adjustments (consisting of normal recurring accruals) necessary in
order to make the financial statements not misleading. Operating results for the
three and nine month periods ended June 30, 1999 are not necessarily indicative
of the results that may be expected for the year ended September 30, 1999. The
September 30, 1998 balance sheet was derived from audited financial statements,
but does not include all disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the financial
statements and related notes contained in the Company's Registration Statement
on Form SB-2 that was declared effective on May 14, 1999 which includes audited
financial statements for the period to September 30, 1996 and the years ended
September 30, 1997 and 1998 and unaudited interim financial statements for the
three months ended December 31, 1998.
Management has determined that its marketable securities are "Available for
Sale" securities in accordance with Statement of Financial Accounting Standards
No. 115 "Accounting for Certain Investments in Debt and Equity Securities".
Accordingly, any unrealized gains and losses are reported as a component of
Other Comprehensive Income in accordance with Statement of Financial Accounting
Standards No. 130 "Reporting Comprehensive Income". Gains or losses on
securities sold are calculated based on the specific identification method.
6
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation.
This filing by the Company contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934 and the Company intends that such
forward-looking statements be subject to the safe harbors created thereby. These
forward-looking statements include the plans and objectives of management for
future operations, including plans and objectives relating to services offered
by and future economic performance of the Company.
The forward-looking statements included herein are based upon current
expectations that involve a number of risks and uncertainties that might
adversely affect the Company's operating results in the future in a material
way. Such risks and uncertainties include, but are not limited to; the
availability of future acquisitions, the effects of regional economic and market
conditions, increases in marketing and sales costs, intensity of competition,
cost of technology, the availability of financing, contingencies associated with
Year 2000 compliance and the Company's ability to manage its growth.
OVERVIEW
The Company is a provider of advanced voice and data messaging services for
small and medium sized businesses. Using customized switch platforms, the
Company links together other telecommunications services such as local phone
service, paging, mobile telephone service and voice messaging to create a
cohesive communications environment which is more efficient than using each
service on an independent stand-alone basis.
The Company's revenues are primarily derived from receiving recurring
monthly service fees from messaging and paging services. In addition, the
Company receives some one-time fees from installation charges and the sale of
other telecommunications services. Over 85% of the Company's revenue is residual
in nature.
The Company plans to duplicate its service model in other cities. To fund
its regional growth, and the acquisition of other voice messaging companies, the
Company completed an initial public offering of securities in May 1999.
In April 1999 the Company moved its voice messaging equipment to a new
secure location and moved its corporate offices from 811 Lincoln Street, Denver,
CO, 80203 to a temporary office at 4704 Harlan Street, Denver, CO, 80212. The
costs of relocation have adversely affected the financial results for the
quarterly period ending June 30, 1999. The Company will again relocate its
corporate offices in August 1999 to a permanent suite within the same building.
Further costs will be incurred in the fourth fiscal quarter of 1999 ending
September 30, and thus will adversely affect the financial results of that
quarter.
RESULTS OF OPERATIONS
Quarter Ended June 30, 1999 compared to Quarter Ended June 30, 1998.
Net Revenues. Net revenues for the quarter ended June 30, 1999 were
$549,000 compared to $490,000 for the quarter ended June 30, 1998, an increase
of approximately 12%. This increase reflects the net growth in Multi-Link's base
of customers.
7
<PAGE>
Cost of Services and Products. Cost of services and products for the
quarter ended June 30, 1999 was $103,000 compared to $86,000 for the quarter
ended June 30, 1998, an increase of 19%. The
increase resulted primarily from a pager promotion run by the Company in the
quarter ended June 30, 1999, which resulted in higher than normal pager hardware
costs.
Gross Profit Margin. Gross profit margin for the quarter ended June 30,
1999 was $446,000 compared to $404,000 for the quarter ended June 30, 1998, an
increase of 14%. The gross profit margin as a percentage of net revenues
decreased from 82% to 81% for the reasons stated above.
Sales and Advertising Expenses. Sales and advertising expenses for the
quarter ended June 30, 1999 were $19,000 compared to $4,000 for the quarter
ended June 30, 1998, as a result of the employment of additional marketing
personnel.
General and Administrative Expenses. General and administrative expenses
for the quarter ended June 30, 1999 were $201,000 compared to $138,000 for the
quarter ended June 30, 1998, an increase of 46%. The increase was the result of
increased personnel expenses from an increase in the Company's management
infrastructure in advance of the execution of its national industry
consolidation plan. In addition, the Company incurred expenses in the relocation
of its voice messaging equipment and corporate offices in 1999.
Depreciation. Depreciation expense increased to $25,000 for the quarter
ended June 30, 1999 from $19,000 for the quarter ended June 30, 1998, as a
result of increased fixed assets.
Amortization. Amortization of subscriber accounts and goodwill was $60,000
for the quarter ended June 30, 1999 compared to $13,000 for the quarter ended
June 30, 1998 an increase of 529%. The higher levels of amortization expense
result from the continued growth in the Company's customer base, the acquisition
costs of which are amortized over the expected life of the customer base, or 36
months, whichever is the lesser.
Income from Operations. Income from operations was $140,000 for the quarter
ended June 30, 1999 compared to $229,000 for the quarter ended June 30, 1998,
due to the factors discussed above.
Interest Income (Expense). Interest income (expense) decreased to $(61,000)
for the quarter ended June 30, 1999 from $(159,000) for the quarter ended June
30, 1998, a decrease of 47%. The decrease was a direct result of (a) the
refinancing of most of Multi-Link's high interest debt with a term loan in
September 1998 at a substantially lower rate of interest, (b) the repayment of
debt from a private placement of its securities in November 1998, which caused a
reduction in the total interest expense, and (c) the repayment of debt from the
Initial Public Offering completed in May 1999.
Net Income and Comprehensive Income Multi-Link realized net income of
$79,000 for the quarter ended June 30, 1999 compared to net income of $70,000
for the quarter ended June 30, 1998 and comprehensive income of $73,000 for the
quarter ended June 30, 1999 compared to comprehensive income of $70,000 for the
quarter ended June 30, 1998 all due to the factors outlined above. Multi-Link's
net income for the quarter ended June 30, 1999 does not reflect an income tax
provision because of the utilization of net operating loss carryforwards.
Nine months Ended June 30, 1999 compared to nine months Ended June 30, 1998.
Net Revenues. Revenues for the nine months ended June 30, 1999 were
$1,572,000, compared to $1,374,000 for the nine months ended June 30, 1998, an
increase of 14%. This increase reflects the continuing net growth in
Multi-Link's base of customers.
Cost of Services and Products. Cost of services and products for the nine
months ended June 30, 1999 was $305,000, compared to $266,000 for the nine
months ended June 30, 1998, an increase of 12%. The increase resulted primarily
from a pager promotion run by the Company from January to June 1999 which
resulted in higher than normal pager hardware costs.
8
<PAGE>
Gross Profit Margin. Gross profit margin for the nine months ended June 30,
1999 was $1,267,000 compared to $1,108,000 for the nine months ended June 30,
1998, an increase of 14%. The gross profit margin as a percentage of net
revenues was 81% in both periods.
Sales and Advertising Expenses. Sales and advertising expenses for the nine
months ended June 30, 1999 were $42,000 compared to $134,000 for the nine months
ended June 30, 1998, a decrease of 69%. This resulted from the closure of
Multi-Link's in-house sales and telemarketing operations on December 31, 1997
when Multi-Link began procuring subscriber accounts from independent sales
agencies and capitalizing the cost of acquiring such subscriber accounts.
General and Administrative Expenses. General and administrative expenses
for nine months ended June 30, 1999 were $544,000 compared to $448,000 for the
nine months ended June 30, 1998, an increase of 21% due to an increase in
personnel expenses and costs of moving the voice messaging platforms and the
Company's corporate offices to its new location.
Depreciation. Depreciation expense in the nine months ended June 30, 1999
was $71,000 compared to $60,000 for the nine months ended June 30, 1998 caused
by an increase in fixed asset levels.
Amortization. Amortization of subscriber accounts and goodwill was $130,000
for the nine months ended June 30, 1999 compared to $21,000 for the nine months
ended June 30, 1998. Amortization expense associated with subscriber accounts
was first incurred in the quarter ended March 31, 1998 after Multi-Link
commenced procuring subscriber accounts through the base of independent sales
agents as previously described. The higher levels of amortization expense
reflect the continued growth in the Company's customer base, the acquisition
costs of which are amortized over the expected life of the customer base, or 36
months, whichever is the lesser.
Income from Operations. The income from operations was $480,000 for the
nine months ended June 30, 1999 compared to $445,000 for the nine months ended
June 30, 1998, an increase of 8% due to the factors discussed above.
Interest Income (Expense). Interest income (expense) for the nine months
ended June 30, 1999 was $(238,000), compared to $(445,000) for the nine months
ended June 30, 1998, a decrease of 47%. The decrease was a direct result of (a)
the refinancing of most of Multi-Link's high interest debt with a term loan in
September 1998 at a substantially lower rate of interest, (b) the repayment of
debt from a private placement of its securities in November 1998, which caused a
reduction in the total interest expense, and (c) the repayment of debt from the
Initial Public Offering completed in May 1999.
Net Income (Loss) and Comprehensive Income (Loss). The Company realized net
income of $243,000 for the nine months ended June 30, 1999 compared to a net
loss of $(400) for the nine months ended June 30, 1998 and comprehensive income
of $237,000 for the nine months ended June 30, 1999 compared to a comprehensive
loss of $(400) for the nine months ended June 30, 1998 due to the factors
outlined above. The net income and comprehensive income were the same for the
quarters presented. Net income for the quarter ended June 30, 1999 does not
reflect an income tax provision because of the utilization of net operating loss
carryforwards.
LIQUIDITY AND CAPITAL RESOURCES
The Company continues to meet its capital requirements through cash
provided from operations, funds provided from its May 1999, Initial Public
Offering, and a $2.1 million line of credit, which had an outstanding balance of
$10,000 on June 30, 1999.
The Company completed its initial public offering in May 1999 and received
net proceeds from the offering of approximately $6,980,000. After repaying
certain indebtedness, the Company has approximately $4,730,000 held in cash and
marketable securities.
9
<PAGE>
For the nine months ended June 30, 1998 net cash used in operations was
approximately $($188,000) compared to net cash generated from operations of
$59,000 for the nine months ended June 30, 1999. Net cash used in investing
activities in the nine months ended June 30, 1999 for the purchase of securities
available for sale, fixed assets and intangibles was $(5,341,000) compared to
$(213,000) in the nine months ended June 30, 1998. During the nine months ended
June 30, 1998 financing activities generated $4,751,000 of net cash compared to
the nine months ended June 30, 1999 where financing activities generated
$401,000 of cash.
Management of the Company believes that its anticipated cash requirements
for the immediate future will be met from internally generated funds and the net
proceeds from the offering. The Company's current industry consolidation plan
calls for use of part of the proceeds from the offering for acquisitions. This
funding will not complete the consolidation plan and, therefore, the Company
will likely seek to obtain additional public, private or debt financing or
combination of the foregoing in the future.
EFFECTS OF INFLATION
Although the Company cannot accurately anticipate the effect of inflation
on its operations, the Company does not believe that inflation has had, or is
likely in the future to have, a material effect on its operating results or
financial condition.
YEAR 2000 ISSUES
Many computer systems, software applications and other electronics
currently in use worldwide are programmed to accept only two digits in the
portion of the date field, which designates the year. The "Year 2000 problem"
arises because these systems and products cannot properly distinguish between a
year that begins with "20" and the familiar "19." If these systems and products
are not modified or replaced, many will fail, create erroneous results and/or
may cause interfacing systems to fail.
The Company has completed its review of all of its internal systems
including its Glenayre messaging equipment and determined that all systems are
compatible with the year 2000.
The Company is dependent upon US West and other central infrastructure
providers including suppliers of electric power and the national telephone
network for the provision of its services to its customers. U S West has
publicly announced that its local telephone network is Year 2000 compliant. The
Company is not aware of any central infrastructure provider that has indicated
that it expects to be adversely affected by the Year 2000 problem. However, the
Company has not obtained assurances from such providers as to whether or not
they will be adversely affected by the Year 2000 issue.
The Company plans to use a portion of the proceeds of this offering to
acquire companies involved in the voice messaging business. The Company intends
to address the Year 2000 issue in detail with all such companies prior to
acquisition. The Company cannot quantify the risks and expenses that may be
incurred through acquisitions of companies that are not Year 2000 compliant.
The Company has not incurred any material costs for Year 2000 modifications
to date and does not anticipate incurring any such material costs in the future.
However, there can be no assurance that the Company will not identify other Year
2000 issues that may require expenditures in the future.
10
<PAGE>
PART II OTHER INFORMATION
Item 1. Legal Proceedings
The Company is not a party to any legal proceedings.
Item 2. Changes in Securities and Use of Proceeds
On May 14, 1999 a registration statement filed by the Company was
declared effective by the Securities and Exchange Commission (File No.
333-1334687). Pursuant to the registration statement, the Company
registered 1,380,000 units, each comprised of one share of common
stock and one warrant to purchase one share of common stock. After
selling all of the units for $6.00 each, the offering was terminated.
The managing underwriter for the offering was Schneider Securities,
Inc. The total gross proceeds to the Company were $8,280,000. The
expenses incurred by the Company in connection with the issuance and
distribution of the units for underwriting discounts and commissions
and expenses paid to the underwriters were $1,076,400. Other expenses
of the offering paid to date were approximately $344,200. The total
net proceeds minus expenses paid to date were $6,859,400. Since
completion of the offering, the Company has paid $2,140,000 to
Westburg Media Capital L.P. for a revolving loan and paid expenses of
the offering as detailed above.
Item 3. Defaults upon Senior Securities
None.
Item 4. Submission of Matters to Vote of Security Holders
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits.
27.1 Financial Data Schedule
b. Reports on Form 8-K.
No reports on form 8-K were filed during the quarter ended
June 30, 1999.
11
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
MULTI-LINK TELECOMMUNICATIONS, INC,
(Registrant)
Date: August 10, 1999 /s/ Nigel V. Alexander
--------------------------------------
Nigel V. Alexander,
Chief Executive Officer.
Date: August 10, 1999 /s/ Shawn B. Stickle
--------------------------------------
Shawn B. Stickle,
President and Chief Operating Officer.
Date: August 10, 1999 /s/ David J. C. Cutler
--------------------------------------
David J.C. Cutler,
Chief Financial Officer.
12
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> JUN-30-1999
<CASH> 24,867
<SECURITIES> 4,705,490
<RECEIVABLES> 271,311
<ALLOWANCES> 19,773
<INVENTORY> 0
<CURRENT-ASSETS> 4,981,895
<PP&E> 979,248
<DEPRECIATION> 243,266
<TOTAL-ASSETS> 6,460,382
<CURRENT-LIABILITIES> 440,073
<BONDS> 382,650
0
0
<COMMON> 7,682,162
<OTHER-SE> 2,044,503
<TOTAL-LIABILITY-AND-EQUITY> 6,460,382
<SALES> 9,279
<TOTAL-REVENUES> 1,572,232
<CGS> 15,126
<TOTAL-COSTS> 305,329
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 28,415
<INTEREST-EXPENSE> 237,931
<INCOME-PRETAX> 242,564
<INCOME-TAX> 0
<INCOME-CONTINUING> 242,564
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 242,564
<EPS-BASIC> 0.13
<EPS-DILUTED> 0.12
</TABLE>
