Xedar Corporation
2500 Central Avenue
Boulder, CO 80301
November 12, 1996
Securities and Exchange Commission
Washington, D.C. 20549
Pursuant to the requirements of the Securities Exchange Act of 1934, we
are transmitting herewith the attached Form 10Q.
Sincerely,
Hans R. Bucher
Hans R. Bucher, President
UNITED STATES
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 September 28, 1996
_________________________________
( ) TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE EXCHANGE ACT
For the transition period from to
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Commission File Number 0-8356
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XEDAR CORPORATION
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(Exact name of small business issuer as specified in its charter)
Colorado 84-0684753
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(State or other jurisdiction of
incorporation or organization) (IRS Employer Identification No.)
2500 Central Avenue, Boulder, CO 80301
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(Address of principal executive offices)
(303) 443-6441
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(Issuer's telephone number)
Check whether the Issuer (1) filed all documents and 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 X No
______ ______
State the number of shares outstanding of each of the issuer's classes
of common stock as of the latest practicable date: No Par Value Common
Stock - 1,837,224 shares as of November 15, 1996.
Transitional Small Business Disclosure Format (check one):
Yes No X
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XEDAR CORPORATION
INDEX
Page No.
PART I Financial Information
Item 1 Financial Statements
Condensed Balance Sheet,
September 28, 1996 1
Condensed Statement of Operations, Nine
Months ended September 28, 1996 and 1995 2
Condensed Statement of Cash Flows - Nine
Months Ended September 28, 1996 and 1995 3
Notes to Condensed Financial Statements 4
Item 2 Management's Discussion and Analysis or
Plan of Operation 5
PART II Other Information 7
SIGNATURES 8
PART I - FINANCIAL INFORMATION
XEDAR CORPORATION
CONDENSED BALANCE SHEET
September 28, 1996
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $1,238,438
Accounts receivable 91,196
Inventories 141,558
Prepaid income taxes 78,041
Prepaid expenses 588
Total current assets 1,549,821
Long term receivable 171,822
Property and equipment 158,255
Less accumulated depreciation 128,671
29,584
Other assets 21,905
$1,773,132
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 39,714
Accrued liabilities
Accrued payroll and commissions 19,375
Accrued vacation 29,556
Other current liabilities 1,130
Unearned revenue 17,931
Total current liabilities $ 107,706
Stockholders' equity
Common stock 1,617,617
Additional paid in capital 40
Accumulated deficit 47,769
Total stockholders' equity 1,665,426
$1,773,132
==========
The accompanying notes are an integral part of these condensed
financial statements.
-1-
XEDAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Ended Three Months Ended
September 28 September 28
----------------- ------------------
1995 1996 1995 1996
Sales $ 937,508 $523,024 $351,987 $168,609
Cost of Sales 511,703 425,785 201,315 158,738
Gross Profit 425,805 97,239 150,672 9,871
Research and Development costs 30,784 160,930 9,784 69,960
Selling, general and
administrative expenses 176,040 165,834 60,633 45,696
206,824 326,764 70,417 115,656
Operating income (loss) 218,981 (229,525) 80,255 (105,785)
Other income 27,027 42,060 8,408 13,996
Income (loss) before income
taxes $246,008 $(187,465) $ 88,633 $( 91,789)
Provision for income tax
expense (benefit) 82,050 (69,000) 38,910 (43,000)
Net income (loss) $163,958 $(118,465) $ 49,753 $( 48,789)
======== ========== ======= ==========
Weighted average shares
outstanding 1,837,224 1,837,224 1,837,224 1,837,224
Net income (loss) per
common share $ .09 $( .06) $ .03 $( .03)
====== ======= ======= =======
The accompanying notes are an integral part of these condensed
financial statements.
-2-
XEDAR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 28,
------------------------
1995 1996
---------- ---------
Net Income (loss) $ 163,958 $(118,465)
Adjustments to reconcile cash
net income (loss) to net cash
provided (used) by operating
activities
Depreciation of property and
equipment 8,244 13,763
(Increase) decrease in assets
Accounts receivable ( 32,096) 66,219
Inventories ( 31,034) 141,629
Refundable Income Taxes 16,800 ( 78,041)
Other assets and long term
receivable 14,614 9,520
Increase (decrease) in liabilities ( 26,474) 1,408
---------- ---------
Net cash provided by (used) by 114,012 36,033
operating activities ---------- ---------
Cash flows used in investing
activities-capital expenditures ( 7,101) ( 5,470)
Capitalization of patents ( 1,421)
--------- ---------
Net cash used by investing
activities ( 7,101) ( 6,891)
Net increase (decrease) in cash
and cash equivalents 106,911 29,142
Cash and cash equivalents at
beginning of nine month period 920,382 1,209,296
--------- ----------
Cash and cash equivalents at
end of nine month period $1,027,293 $1,238,438
=========== ===========
The accompanying notes are an integral part of these condensed financial
statements.
-3-
XEDAR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
September 28, 1996
(Unaudited)
NOTE 1: BASIS OF PRESENTATION
The condensed financial statements included herein are unaudited.
In the opinion of management, all adjustments, consisting of normal
recurring accruals, have been made which are necessary for a fair
presentation of the financial position of the Company at September 28,
1996 and the results of operations for the nine month periods ended
September 28, 1996 and 1995. Quarterly results are not necessarily
indicative of expected annual results. For a more complete
understanding of the Company's operations and financial position,
reference is made to Management's Discussion and Analysis of Financial
Condition and Results of Operations herein and the financial statements
of the Company, and related notes thereto, filed with the Company's
annual report on Form 10-KSB for the year ended December 31, 1995,
previously filed with the Securities and Exchange Commission.
NOTE 2: INVENTORIES
At September 28, 1996 inventories consisted of:
Raw Materials $ 8,449
Work in process 133,109
Finished goods -
----------
TOTAL $ 141,558
==========
NOTE 3: INCOME (LOSS) PER COMMON SHARE
Income (loss) per common share amounts were computed by dividing the net
income (loss) by weighted average number of shares outstanding for the
period. Eligible stock options have not been considered in the
computation since their inclusion would have an anti-dilutive effect for
loss per share computations and not have a material dilutive effect for
income per share computations.
-4-
XEDAR CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Sales and Gross Profit
Sales by product line for the first nine months of l995 and 1996 were:
(Amounts in $000)
Increase
1995 1996 (Decrease)
Commercial products $ 30 $ 30 $ 0
Design and development contracts 274 322 48
Single customer production programs 634 171 (463)
---- ---- -----
Totals $938 $523 $(415)
==== ==== ======
Commercial product sales for the three quarters ended September 28,
1996 remained the same as compared to 1995.
Design and development contract sales increased in the three quarters
ended September 28, 1996 by $ 48,000 as compared to 1995. This
increase is due to a current contract for special CCD Cameras.
Single customer production program sales decreased in the three quarters
ended September 28, 1996, as compared to 1995 by $463,000 due to a
cancellation of a production contract.
Gross profit decreased from 45% in 1995 to 19% in 1996 for a total
decline of $329,000. This decline was caused by: $247,000 from reduced
sales volume; $56,000 from lower profit margins; and $26,000 from a
lower absorption of overhead.
Research and Development
Research and development expenses were $160,930 in the three quarters
ended September 28, 1996, as compared to $30,784 in 1995. The 1995
funds expended were used to develop prototype CCD cameras for various
applications. The 1996 funds were primarily directed towards the
development of high resolution, high speed video processing for CCD
cameras and the development of digital signal processing electronics to
take advantage of the multiple video output capability of high speed,
high resolution CCDs. These developments are important to remain
competitive in the high speed, high resolution camera market.
5
XEDAR CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (Continued)
Selling, General and Administrative Expense: Selling and general and
administrative expenses decreased by $10,000 in 1996 as compared to the
three quarters ended September 28, l995 due to a decrease in travel
expenses as well as some decrease in general and administrative
expenses.
LIQUIDITY AND CAPITAL RESOURCES
The Company finances its activities from cash reserves and operations.
At September 28, 1996 the Company's working capital was $1,389,000.
No bank financing has been used since 1982.
The Company's liquidity position is necessary to maintain the Company's
CCD camera development and manufacturing efforts, to remain competitive
in its product line and to expand into new products for the industrial,
scientific and medical imaging market.
FORWARD-LOOKING STATEMENTS
Except for the historical information contained herein, the matters set
forth in this 10QSB are forward-looking statements within the meaning of
the "safe harbor" provisions of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ materially. These
risks are detailed from time to time in the Company's periodic reports
filed with the Securities and Exchange Commission, including the
Company's Annual Report on Form l0KSB, Quarterly Reports on Form 10QSB
and other periodic filings. These forward-looking statements speak only
as of the date hereof. The Company disclaims any intent or obligation
to update these forward-looking statements.
-6-
PART II - OTHER INFORMATION
NOT APPLICABLE
-7-
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.
XEDAR CORPORATION
- -----------------------------
(Registrant)
November 12, 1996
Date......................... ...................................
(Hans R. Bucher, President)
-8-
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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