<PAGE> 1
Form 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
--------------
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 0-26599
SIMEX Technologies, Inc.
(Exact name of Small Business Issuer as specified in its charter)
<TABLE>
<CAPTION>
<S> <C>
Delaware 58-2465647
(State or other Jurisdiction of Incorporation or Organization) (I. R. S. Employer
Identification No.)
</TABLE>
Suite 995, 3475 Lenox Road, NE
Atlanta, Georgia 30326
(Address of principal executive offices)
Issuer's telephone number,
including area code: (404) 812-3130
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 [X] No [ ]
The number of shares outstanding of the Registrant's common stock, par value
$0.001, at November 4, 1999, was 12,824,000 shares.
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS:
2
<PAGE> 3
SIMEX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands, except per share data)
<TABLE>
<CAPTION>
September 30,
ASSETS 1999
-----------
(Unaudited)
<S> <C>
Current assets:
Cash and cash equivalents $ 217
Trade accounts receivable, less allowance for
doubtful accounts of $66 in 1999 5,675
Costs and estimated earnings in excess of billings on
uncompleted contracts 1,983
Inventories 1,233
Other receivables 380
Prepaid expenses and other current assets 14
--------
Total current assets 9,502
Notes receivable - officers 230
Investments 1,321
Investments in affiliated companies 274
Property, plant and equipment, less accumulated
depreciation of $2,787 5,382
Other assets 10
Goodwill, less accumulated amortization of $333 3,381
--------
Total assets $ 20,100
========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Note payable - bank $ 3,054
Current portion of long-term debt 2,824
Accounts payable 2,637
Accrued salaries and wages 518
Accrued taxes other than income 924
Accrued income taxes 172
Other current liabilities 215
--------
Total current liabilities 10,344
Long-term debt, less current portion 2,883
Deferred income taxes 650
Other liabilities 67
--------
Total liabilities 13,944
--------
Shareholders' equity:
Preferred stock, $.001 par value. Authorized 5,000
shares, none issued or outstanding --
Common stock, $.001 par value. Authorized 50,000
shares; 12,824 shares issued and outstanding 13
Additional paid-in capital 6,432
Retained earnings 203
Accumulated other comprehensive loss - foreign
currency translation adjustment (492)
--------
Total shareholders' equity 6,156
--------
Total liabilities and shareholders' equity $ 20,100
========
</TABLE>
The accompanying notes are an integral part
of the consolidated financial statements.
3
<PAGE> 4
SIMEX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
<TABLE>
<CAPTION>
Three months Ended September 30, Nine months ended September 30,
-------------------------------- -------------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues $ 7,116 7,317 23,291 17,610
Cost of revenues 5,698 5,942 18,805 14,141
-------- ------ ------ ------
Gross profit 1,418 1,375 4,486 3,469
Selling, general and administrative expenses 1,624 703 4,552 2,087
-------- ------ ------ ------
Operating income (loss) (206) 672 (66) 1,382
Other income (expense)
Interest income 48 4 204 13
Interest expense (164) (89) (579) (176)
Other (12) (14) (143) (14)
-------- ------ ------ ------
Total other expense (128) (99) (518) (177)
-------- ------ ------ ------
Income (loss) before income taxes (334) 573 (584) 1,205
Income taxes (28) 249 89 466
-------- ------ ------ ------
Net income (loss) (306) 324 (673) 739
======== ====== ====== ======
Earnings (loss) per share (note 2):
Basic (0.02) 0.03 (0.05) 0.06
======== ====== ====== ======
Diluted (0.02) 0.03 (0.05) 0.06
======== ====== ====== ======
Shares used in per share calculation (note 2):
Basic 12,824 11,701 12,824 10,659
======== ====== ====== ======
Diluted 12,824 11,701 12,824 10,659
======== ====== ====== ======
</TABLE>
The accompanying notes are an integral part
of the consolidated financial statements.
4
<PAGE> 5
SIMEX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Nine months ended September 30,
-------------------------------
1999 1998
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ (673) 739
Adjustments to reconcile net earnings (loss)
to net cash provided by (used in)
operating activities:
Depreciation and amortization 759 325
Deferred income taxes 82 217
Changes in operating assets and liabilities,
net of effects of acquisitions:
Trade accounts receivable 324 (1,780)
Inventories (21) 315
Prepaid expense and other current assets 1 (457)
Other assets (23) (12)
Accounts payable 549 (537)
Accrued salaries and wages (33) 402
Accrued taxes other than income (98) --
Accrued income taxes (207) 26
Other current liabilities (1,173) 898
------- ------
Net cash provided by (used in)
operating activities (513) 136
------- ------
Cash flows from investing activities:
Acquisitions of property, plant and equipment (512) (525)
Proceeds from sale of property, plant
and equipment (32) --
Acquisitions of businesses, net of cash acquired -- (2,549)
Acquisition of investments (176) (396)
Increase in notes receivable - employees 15 (15)
------- ------
Net cash used in investing activities (705) (3,485)
------- ------
Cash flows from financing activities:
Proceeds from (repayments of) note payable -
bank, net 1,313 (714)
Proceeds from long-term debt -- 2,719
Payments on long-term debt (737) 2,074
Issuance of preferred stock -- 2,056
Issuance of common stock -- 1,825
Preferred stock dividends paid -- (47)
------- ------
Net cash provided by financing activities 576 3,765
------- ------
Effect of exchange rate changes in cash (18) (129)
------- ------
Net change in cash and cash equivalents (660) 287
Cash and cash equivalents beginning of period 877 387
------- ------
Cash and cash equivalents at end of period $ 217 674
======= ======
</TABLE>
5
<PAGE> 6
SIMEX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
(Unaudited)
(In thousands)
<TABLE>
<CAPTION>
Nine months ended September 30,
-------------------------------
1999 1998
---- ----
<S> <C> <C>
Supplemental disclosure of cash flows information:
Cash paid (received) during the periods for:
Interest $443 176
==== =====
Income taxes $218 26
==== =====
Supplemental disclosure of non-cash investing and
financing activities:
Acquisition of investment in exchange for
receivable -- 1,154
==== =====
Conversion of preferred stock to common stock -- 1
==== =====
In May 1998, the Company acquired the capital stock
Norsk Kjoleindustry AS:
Fair value of net assets acquired, net of
cash received $ -- 6,722
Liabilities assumed -- 4,173
---- -----
$ -- 2,549
==== =====
</TABLE>
The accompanying notes are an integral part
of the consolidated financial statements.
6
<PAGE> 7
SIMEX TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1999 and 1998
(Unaudited)
(In thousands, except per share data)
1. CONSOLIDATED FINANCIAL STATEMENTS
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with the instructions to Form 10-QSB and do not include
all of the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. These statements should be read in
conjunction with the consolidated financial statements and notes thereto
included in the Simex Technologies, Inc.'s Form 10-SB for the year ended
December 31, 1998.
The results of operations for the periods presented are not necessarily
indicative of the operating results for the full year.
2. EARNINGS (LOSS) PER SHARE
Simex Technologies, Inc. and subsidiaries ("the Company") apply the provisions
of Statements of Financial Accounting Standards ("SFAS") No. 128, "Earnings per
Share". Basic earnings per common share is based on the weighted average number
of common shares outstanding during the period. Diluted earnings per share
include the dilutive effect of potentially dilutive securities. For the three
and nine months ended September 30, 1999, the effects on diluted loss per share
from stock options have not been included since such effects would have been
anti-dilutive.
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
1999 1998 1999 1998
---------------------- ---------------------
<S> <C> <C> <C> <C>
Numerator:
Net income (loss) $ (306) 324 (673) 739
Preferred stock dividends -- (15) -- (47)
------- ------ ------ ------
Numerator for basic and diluted
earnings per share $ (306) 309 (673) 692
======= ====== ====== ======
Denominator:
Denominator for basic earnings (loss) per share -
weighted average shares outstandings 12,824 11,701 12,824 10,659
Effect of dilutive securities - stock options -- -- -- --
------- ------ ------ ------
Denominator for diluted
earnings (loss) per share 12,824 11,701 12,824 10,659
======= ====== ====== ======
</TABLE>
3. SEGMENT INFORMATION
The Company adopted SFAS 131, Disclosures about Segments of an Enterprise and
Related Information. SFAS 131 establishes standards for the way that public
business enterprises report information about operating segments in their
financial statements. The standard defines operating segments as components of
an enterprise about which separate financial information is available that is
evaluated regularly by the chief operating decision makers in deciding how to
allocate resources and in assessing the performance. Based on the quantitative
thresholds specified in SFAS 131, the Company has determined that it has four
reportable segments. The four reportable segments are construction, maintenance
and service, production and post tensioning.
7
<PAGE> 8
3. SEGMENT INFORMATION (CONTINUED)
Construction consists of all of the Company's operations involved in the design,
engineering, installation and maintenance of HVAC, plumbing, and electrical
products and services, both onshore and offshore.
Maintenance and service consists of operations related to service and
maintenance contracts worldwide.
Production consists of design, engineering and production of various technical
and nontechnical products, such as SIM Ducts.
Post-Tensioning consists of construction reinforcing techniques for concrete oil
and gas production platforms, bridges, tunnels and other post and bolt
tensioning operations.
Summary information by segment for the three months ended September 30, 1999 and
1998 follow (in thousands):
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MAINTENANCE AND PRODUCTION POST- OTHER AND TOTAL
SERVICE TENSIONING ELIMINA-
TIONS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1999
Revenues $ 3,473 2,082 1,328 192 41 $7,116
Gross profit 775 539 286 67 (249) 1,418
1998
Revenues $3,714 1,471 469 1,083 580 $7,317
Gross profit 523 347 47 457 1 1,375
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Summary information by segment for the nine months ended September 30, 1999 and
1998 follow (in thousands):
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
CONSTRUCTION MAINTENANCE AND PRODUCTION POST- OTHER AND TOTAL
SERVICE TENSIONING ELIMINA-
TIONS
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1999
Revenues $ 12,204 4,257 4,381 1,978 471 $23,291
Gross profit 2,189 875 636 741 45 4,486
1998
Revenues $9,580 2,785 1,577 2,600 1,068 $17,610
Gross profit 1,780 745 240 1,036 (332) 3,469
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 9
4. COMPREHENSIVE INCOME (LOSS)
The Company had other comprehensive income (loss) for the three months ended
September 30, 1999 and 1998 of $(177) and $211, respectively and other
comprehensive income (loss) for the nine months ended September 30, 1999 and
1998 of $(866) and $611, respectively. Adjustments to net income (loss) to
determine other comprehensive income (loss) are due to foreign currency
translation.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
(B) MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
The following discussion should be read in conjunction with the consolidated
financial statements of the Company (including the notes thereto) included in
the Company's Form 10-SB for the year ended December 31, 1998.
General
SIMEX Technologies, Inc. and subsidiaries (the "Company") principally operates
through its wholly owned subsidiary, Simex AS, located in Norway. The Company is
engaged in construction and services, including design, engineering,
fabrication, production, installation, and maintenance for the offshore oil and
gas industry and onshore in commercial, industrial and government projects. In
addition, the Company is engaged in concrete and post tensioning construction
for offshore oil and gas drilling platforms. The Company has derived its
revenues primarily from customers in Norway and the United Kingdom.
Results of Operations
The following analysis compares the results of operations for the three-month
and nine-month periods ended September 30, 1999 to the comparable periods ended
September 30, 1998.
Revenues during the three months ended September 30, 1999 were $ 7,116,
compared to $ 7,317 during the three months ended September 30, 1998. The
decrease in revenues in the amount of $ 201, was primarily due to a
significant decline in revenues for the Post-Tensioning segment partially
offset by increases in the Maintenance and Service and Production segments.
Revenues during the nine months ended September 30, 1999 were $ 23,291,
compared to $17,610 during the nine months ended September 30, 1998. The
increase in revenues in the amount of $ 5,681, was primarily due to several
business acquisitions which occurred on or after May 1998 and therefore only
partial operating results of the acquired businesses were included in the
nine months ended September 30, 1998.
In the three months ended September 30, 1999, cost of revenues was $ 5,698,
which represented 80% of revenues. During the three months ended September
30, 1998, cost of revenues was $ 5,942, which represented 81% of revenues.
In the nine months ended September 30, 1999, cost of revenues was $ 18,805,
which represented 81% of revenues. During the nine months ended September 30,
1998, cost of revenues was $ 14,141, which represented 80% of revenues.
Selling, general and administrative expenses during the three months ended
September 30, 1999 were $1,624, which represented 23% of revenues. During the
three months ended September 30, 1998, general and administrative expenses
were $ 703 , which represented 10% of revenues. The increase in general and
administrative expenses is the result of several business acquisitions which
occurred on or after May 1998 and the expenses related to the Company's
Atlanta, Georgia executive offices. A portion of the increased expenses
related to legal, accounting and other professional fees, incurred in both
the United States and Norway, related to the filing of the Company's
registration statement.
9
<PAGE> 10
Selling, general and administrative expenses during the nine months ended
September 30, 1999 were $4,552, which represented 20% of revenues. During the
nine months ended September 30, 1998, general and administrative expenses
were $ 2,087, which represented 12% of revenues. The increase in general and
administrative expenses is the result of several business acquisitions which
occurred on or after May 1998 and the expenses related to the Company's
Atlanta, Georgia executive offices. A portion of the increased expenses
related to legal, accounting and other professional fees, incurred in both
the United States and Norway, related to the filing of the Company's
registration statement.
During the three months ended September 30, 1999, the Company had a net loss
available to common shareholders of $(306) or $(0.02) per diluted share.
During the three months ended September 30, 1998, the company reported net
income available to common shareholders of $309 or $0.03 per diluted share.
The loss for the three months ended September 30, 1999, was primarily due to
increased expenses related to the Company's United States operations and
losses in the Company's Post-Tensioning segment as a result of decreased
revenues.
During the nine months ended September 30, 1999, the Company had net loss
available to common shareholders of $(673) or $(0.05) per diluted share.
During the nine months ended September 30, 1998, the Company reported net
income available to common shareholders of $692 or $0.06 per diluted share.
The loss for the nine months ended September 30, 1999, was primarily due to
increased expenses related to the Company's United States operations, a 24%
decline in revenues in the Post-Tensioning segment and decreased gross profit
margins in the Company's Maintenance and Service segment.
Liquidity and Capital Resources
During the nine months ended September 30, 1999, the Company experienced
negative operating cash flows of $(513). Negative operating cash flows in the
nine months ended September 30, 1999 resulted principally from a reduction in
other current liabilities of $(1,173) and a net loss of $(673). These negative
effects on operating cash flows were partially offset by depreciation and
amortization of $759, an increase in accounts payable of $549 and a decrease in
accounts receivable of $324. Positive operating cash flows in the nine months
ended September 30, 1998 resulted from increases in other current liabilities of
$898, net income of $739, increases in accrued salaries and wages of $402,
depreciation and amortization of $325 and a decrease in inventories of $315.
These positive effects were partially offset by increases in accounts receivable
of $(1,780), a decrease in accounts payable of $(537) and an increase in prepaid
expenses of $(457).
Net cash used by investing activities of $(705) during the nine months ended
September 30, 1999, was primarily the result of acquisition of property, plant
and equipment of $(512). Net cash used of $(3,485) during the nine months ended
September 30, 1998 primarily consisted of $(2,549) used to fund the acquisition
of Norwegian Cooling and $(525) used for the acquisition of property, plant and
equipment.
Net cash provided by financing activities of $576 during the nine months ended
September 30, 1999 was primarily due to increased borrowings under the Company's
revolving line of credit of $1,313 less payments on long-term debt of $(737).
Net cash provided by financing activities of $3,765, during the nine months
ended September 30, 1998 was primarily due to the issuance of common and
preferred stock, net of issuance costs of $3,881 and net proceeds from the
issuance of long-term debt of $645. These proceeds were used primarily to reduce
short term debt and acquire Norwegian Cooling.
10
<PAGE> 11
As of September 30, 1999, the Company had debt secured by mortgages on certain
real and personal property in the amount of $5,707 of which $2,824 was due in
less than one year. An agreement to sell the real property has been reached and
will close following completion of construction on the Company's European
headquarters, which is located in Stavanger, Norway. This construction should be
completed before the end of 1999. Proceeds from the sale of the real property
will be sufficient to retire all of the debt on the real and personal property
with an excess of approximately $500 to be used for working capital needs or
acquisitions, if any. Under the Company's revolving line of credit, the Company
had drawn $3,054 for and as of September 30, 1999.
The Company believes that its available cash resources and credit facilities,
combined with its cash flows from operations will be sufficient to meet its
anticipated working capital and capital expenditure requirements for at least
the next twelve months.
Inflation
Inflation has not had a material impact on the Company's operations.
New Accounting Pronouncements
SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," is
effective for all fiscal quarters of fiscal years beginning after June 15, 2000.
SFAS No. 133 requires companies to recognize all derivative contracts as either
assets or liabilities in the balance sheet and to measure them at fair value. If
certain conditions are met, a derivative may be specifically designated as a
hedge, the objective of which is to match the timing of gain or loss recognition
on the hedging derivative with the recognition of (i) the changes in the fair
value of the hedged asset or liability that are attributable to the hedged risk
or (ii) the earnings effect of the hedged forecasted transaction. For a
derivative not designed as a hedging instrument, the gain or loss is recognized
in income in the period of change. This pronouncement should not have an effect
on the Company as the Company does invest in any derivative instruments or
engage in any hedging activities.
Year 2000
Beginning in 1998, the Company started assessing its computer systems and those
of its subsidiaries and determined that much of the software used for order
entry, billing, inventory management, job costing and other accounting functions
would either need to be upgraded or replaced in order to be Year 2000 compliant.
To date, the Company has incurred expenses of approximately $510,000 in
connection with upgrades and replacements of computer systems and software.
Although the Company is still in the process of determining the most
cost-effective means of upgrading or replacing its remaining non-Year 2000
compliant software, it anticipates that these additional expenses will not be
excessive. The Company estimates that all of its critical software will be Year
2000 compliant before the end of 1999. Should the Company not be able to
successfully convert its computer hardware and operating systems to be Year 2000
compliant, the Company would be able to operate manually for some period of time
without experiencing a significant negative impact on its operations.
However, the Company believes its greatest Year 2000 risk is the Company's
dependence on third parties. The failure of third parties to achieve Year 2000
readiness could have a material adverse effect on the Company's results from
operations and could damage relationships with its customers. The Company has
received positive responses to its inquiries with significant suppliers as to
their Year 2000 readiness. However, the Company is unable to independently
verify the readiness of these suppliers.
The Company has developed Year 2000 contingency plans in the event of failure of
the Company's computer systems or critical equipment. However, the Company
cannot make assurances that the Company will not be adversely effected if
computer systems and critical equipment fail to operate correctly after December
31, 1999.
11
<PAGE> 12
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain statements in this quarterly report on form 10-QSB contain
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, which statements can generally be identified by
use of forward-looking terminology, such as "may," "will," "expect," "estimate,"
"anticipate," "believe," "target," "plan," "project," or "continue" or the
negatives thereof or other variations thereon or similar terminology, and are
made on the basis of management's plans and current analyses of the Company, its
business and the industry as a whole. These forward-looking statements are
subject to risks and uncertainties, including, but not limited to, economic
conditions, competition, interest rate sensitivity and exposure to regulatory
and legislative changes. The above factors, in some cases, have affected, and in
the future could affect, the Company's financial performance and could cause
actual results for 1999 and beyond to differ materially from those expressed or
implied in such forward-looking statements, even if experience or future changes
make it clear that any projected results expressed or implied therein will not
be realized.
12
<PAGE> 13
PART II. OTHER INFORMATION
ITEM 1. THROUGH ITEM 5. Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) The following exhibits are filed with this report:
Exhibit No. Description
- ----------- -----------
27.1 1999 Financial Data Schedule (for SEC use only)
27.2 1998 Financial Data Schedule (for SEC use only)
(b) During the quarter ended September 30, 1999, no reports on Form 8-K were
filed by the Company.
13
<PAGE> 14
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.
SIMEX TECHNOLOGIES, INC.
DATE: November 12, 1999 BY: /s/ Elmer Lunde
----------------------------------------
Elmer Lunde
Chairman
14
<PAGE> 15
Exhibit Index
Exhibit No. Description
- ----------- -----------
27.1 1999 Financial Data Schedule (for SEC use only)
27.2 1998 Financial Data Schedule (for SEC use only)
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
SEPTEMBER 30, 1999, UNAUDITED FINANCIAL STATEMENTS OF SIMEX TECHNOLOGIES, INC.,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS IN
FORM 10-QSB FOR THE QUARTER ENDED SEPTEMBER 30, 1999. (IN THOUSANDS)
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 217
<SECURITIES> 0
<RECEIVABLES> 5,741
<ALLOWANCES> 66
<INVENTORY> 1,233
<CURRENT-ASSETS> 9,502
<PP&E> 8,169
<DEPRECIATION> 2,787
<TOTAL-ASSETS> 20,100
<CURRENT-LIABILITIES> 10,344
<BONDS> 0
0
0
<COMMON> 13
<OTHER-SE> 6,143
<TOTAL-LIABILITY-AND-EQUITY> 20,100
<SALES> 23,291
<TOTAL-REVENUES> 23,291
<CGS> 18,805
<TOTAL-COSTS> 18,805
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 579
<INCOME-PRETAX> (584)
<INCOME-TAX> 89
<INCOME-CONTINUING> (673)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (673)
<EPS-BASIC> (0.05)
<EPS-DILUTED> (0.05)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
SEPTEMBER 30, 1998, UNAUDITED FINANCIAL STATEMENTS OF SIMEX TECHNOLOGIES, INC.,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS IN
FORM 10-QSB FOR THE QUARTER ENDED SEPTEMBER 30, 1999. (IN THOUSANDS)
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 17,610
<TOTAL-REVENUES> 17,610
<CGS> 14,141
<TOTAL-COSTS> 14,141
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 176
<INCOME-PRETAX> 1,205
<INCOME-TAX> 466
<INCOME-CONTINUING> 739
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 739
<EPS-BASIC> 0.06
<EPS-DILUTED> 0.06
</TABLE>
