Xedar Corporation
2500 Central Avenue
Boulder, CO 80301
May 10, 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 March 31, 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
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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 May 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,
March 31, 1996 1
Condensed Statement of Operations, Three
Months ended March 31, l996 and 1995 2
Condensed Statement of Cash Flows - Three
Months Ended March 31, 1996 and 1995 3
Notes to Condensed Financial Statements 4
Item 2 Management's Discussion and Analysis of financial
Condition and Results of Operations 5
PART II Other Information 7
SIGNATURES 8
PART I - FINANCIAL INFORMATION
XEDAR CORPORATION
CONDENSED BALANCE SHEET
March 31, 1996
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $1,166,475
Accounts receivable 141,201
Inventories 294,952
Refundable income taxes -
Prepaid expenses 4,104
Total current assets 1,606,732
Long term receivable 174,210
Property and equipment 158,255
Less accumulated depreciation 119,959
38,296
Other assets 21,007
$1,840,245
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 27,865
Accrued liabilities
Accrued payroll and commissions 17,294
Accrued vacation 33,002
Income taxes payable 7,463
Total current liabilities $ 85,624
Stockholders' equity
Common stock 1,617,617
Additional paid in capital 40
Accumulated earnings 136,964
Total stockholders' equity 1,754,621
$1,840,245
==========
The accompanying notes are an integral part of these condensed financial
statements.
- -1-
XEDAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31
------------------
1995 1996
Sales $176,435 $173,658
Cost of Sales 84,803 133,935
Gross Profit 91,632 39,723
Research and Development costs - 27,567
Selling, general and
administrative expenses 65,494 66,167
65,494 93,734
Operating income (loss) 26,138 (54,011)
Other income 14,316 13,741
Income (loss) before income
taxes $ 40,454 $(40,270)
Provision for income tax
expense (benefit) 9,000 (11,000)
Net income (loss) $ 31,454 $(29,270)
========= ==========
Weighted average shares
outstanding 1,837,224 1,837,224
Net income (loss) per
common share $ .02 $ ( .02)
======= ========
The accompanying notes are an integral part of these condensed financial
statements.
- -2-
XEDAR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
Three Months Ended
March 31,
------------------------
1995 1996
---------- ---------
Net Income (loss) $ 31,454 $( 29,270)
Adjustments to reconcile cash
net income(loss)to net cash provided
(used) by operating activities
Depreciation of property and
equipment 2,748 5,051
(Increase) decrease in assets
Accounts receivable 69,303 16,214
Inventories (123,884) (11,765)
Refundable Income Taxes 10,039 -
Other assets and long term
receivable 6,143 3,616
Increase(decrease) in liabilities 12,788 (20,617)
---------- ---------
Net cash provided (used) by 8,591 (36,825)
operating activities ---------- ---------
Cash flows used in investing
activities-capital expenditures - ( 5,470)
Capitalization of Patents ( 526)
--------- ----------
Net cash used by investing activities ( 5,996)
Net increase (decrease) in cash
and cash equivalents 8,591 ( 42,821)
Cash and cash equivalents at
beginning of three month period 920,382 1,209,296
--------- ---------
Cash and cash equivalents at
end of three month period $928,973 $1,166,475
======== ==========
The accompanying notes are an integral part of these condensed financial
statements.
- -3-
XEDAR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
March 31, 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 March 31, 1996 and the results of
operations for the three month periods ended March 31, 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 March 31, 1996 inventories consisted of:
Raw Materials $ 8,351
Work in process 286,601
Finished goods -
----------
Total $ 294,952
=========
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 quarter 1995 and 1996 were:
(Amounts in $000)
Increase
1995 1996 (Decrease)
Commercial products $ 22 $ 1 $( 21)
Design and development contracts 40 52 12
Single customer production programs 114 121 7
---- ---- -----
Totals $176 $174 $( 2)
==== ==== ======
Commercial product sales for the first quarter 1996 decreased by $ 21,000 as
compared to 1995 due to a lack of demand for infrared cameras.
Design and development contract sales increased in the first quarter 1996 by
$12,000 as compared to 1995. This increase is due to a current contract for
special CCD Cameras.
Single customer production program sales increased in the first quarter of
1996 as compared to 1995 by $ 7,000. The increase was due to a closeout of a
single customer production contract.
The gross profit of 22.9% in the first quarter of 1996 decreased as compared
to the first quarter of 1995 where it was 51.9%. The decrease was
approximately $52,000. Although there was a decline in margins, design and
development contracts gained about $1,000 in gross profit from an increase
in volume. Single source gross profit declined by $23,000 because costs
(principally material costs) were higher than anticipated for two contracts
with the same customer. Gross profit for commercial product sales declined
by $11,000 since there were no camera sales in the first quarter 1996.
There was an additional decline in gross profit caused by an 18% reduction
in production activity and a 10% increase in overhead expenses. The effect
of these changes reduced 1996 gross profit by $19,000 from the first quarter
of 1995.
Research and Development
A total of $27,567 was expended during the first quarter of 1996
representing approximately 16% of sales. The funds were used to complete an
advanced CCD imaging system and to develop the TDI-imaging technology.
Limited production units are expected to be delivered during 1996.
- -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 of $66,167 remained at the same level in 1996 as
compared to the first quarter 1995.
LIQUIDITY AND CAPITAL RESOURCES
The Company finances its activities from cash reserves and operations.
At March 31, 1996 the Company's working capital was $1,499,108.
The Company's liquidity position is necessary for anticipated production
financing, the expansion of the CCD camera manufacturing capability and
future in house research and development, to remain competitive in its
product line, and to expand into new products for the commercial, scientific
and medical imaging market.
- -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)
May 10, 1996 Hans R. Bucher
Date......................... ...................................
(Hans R. Bucher, President)
- -8-
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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