SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE THREE MONTHS ENDED DECEMBER 31, 1997
BOONTON ELECTRONICS CORPORATION
State: New Jersey Identification No. 22-1543137
File No. 0-2364
Address: 25 Eastmans Road, P.O. Box 465,
Parsippany, New Jersey 07054-0465
Telephone: 973-386-9696
"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 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 [ ]
Shares Outstanding:
DECEMBER 31, 1997 1,644,301
DECEMBER 31, 1996 1,636,585
1
<PAGE>
<TABLE>
<CAPTION>
(UNAUDITED)
BOONTON ELECTRONICS CORPORATION
ASSETS DECEMBER 31, 1997 SEPTEMBER 30, 1997
------ ----------------- ------------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 80,665 $ 121,620
Trade receivables 906,650 1,051,887
Inventories 1,392,269 1,306,115
Deferred tax benefits 81,058 81,058
Other current assets 382,024 333,325
----------- -----------
Total current assets 2,842,666 2,894,005
----------- -----------
Plant and equipment-net 514,458 534,023
----------- -----------
Other assets:
Deferred tax benefit 988,651 988,651
Security deposits 71,169 71,169
----------- -----------
Total other assets 1,059,820 1,059,820
----------- -----------
Total assets $ 4,416,944 $ 4,487,848
=========== ===========
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Note payable $ 64,479 $ 63,379
Related party loans 43,530 93,530
Accounts payable - trade 879,090 800,931
Other current liabilities 206,127 284,528
Unsecured claims payable (Chapter 11
settlement) current 153,372 48,491
----------- -----------
Total current liabilities 1,346,598 1,290,859
Note payable - noncurrent 358,871 375,351
Related party loans - noncurrent 218,970 218,970
Unsecured claims payable (Chapter 11
settlement) - noncurrent -- 153,372
----------- -----------
Total liabilities 1,924,439 2,038,552
----------- -----------
Commitments and contingencies
Stockholders equity:
Common stock 164,430 163,659
Capital in excess of par 4,637,866 4,613,637
Deficit (2,309,791) (2,328,000)
----------- -----------
Total stockholders equity 2,492,505 2,449,296
----------- -----------
Total liabilities and stockholders equity $ 4,416,944 $ 4,487,848
=========== ===========
The accompanying footnotes are an integral part of these statements.
</TABLE>
2
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
For the Three Months Ended
December 31, 1997 December 31, 1996
----------------- -----------------
Net sales $ 1,657,200 $ 1,811,075
Cost of goods sold 857,575 987,295
----------- -----------
Gross profit 799,625 823,780
----------- -----------
Operating expenses:
Commissions 194,395 202,004
Research and development 235,376 190,061
Other operating expenses 351,638 389,824
----------- -----------
Total operating expenses 781,409 781,889
----------- -----------
Income from operations 18,216 41,891
----------- -----------
Interest expense 13,534 9,367
Other expense/(income) (13,527) 7,147
----------- -----------
Total other expenses 7 16,514
----------- -----------
Income before provision for income taxes
18,209 25,377
Provision for income taxes -- --
----------- -----------
Net income 18,209 25,377
Stockholders' equity - beginning 2,449,296 2,217,952
Common stock sold 25,000 200,000
----------- -----------
Stockholders' equity - ending $ 2,492,505 $ 2,443,329
=========== ===========
Weighted average number of shares
outstanding 1,644,301 1,576,585
=========== ===========
Earnings per share: $ 0.01 $ 0.02
=========== ===========
The accompanying footnotes are an integral part of these statements.
3
<PAGE>
<TABLE>
<CAPTION>
(UNAUDITED)
BOONTON ELECTRONICS CORPORATION
For the Three Months Ended
December 31, 1997 December 31, 1996
----------------- -----------------
<S> <C> <C>
Cash provided/(used) by operations:
Net income $ 18,209 $ 25,377
Adjustments to reconcile net income:
Depreciation & amortization 20,130 9,719
Decrease/(increase) in current assets:
Accounts receivable 145,237 148,088
Inventories (86,154) (85,149)
Other current assets (48,699) (32,941)
Increase/(decrease) in current liabilities:
Accounts payable 78,159 59,431
Chapter 11 settlement - current (48,491) (48,491)
Accrued liabilities (78,401) (15,441)
--------- ---------
Net cash provided/(used) by operations (10) 60,593
--------- ---------
Cash flows from investing activities:
Purchase of equipment (565) (251,225)
Other -- (1,303)
--------- ---------
Net cash (used) by investing activities (565) (252,528)
--------- ---------
Cash flows from financing activities:
Increase notes payable -- 243,462
Payments on loans (65,380) (2,640)
Proceeds from sale of stock 25,000 200,000
--------- ---------
Net cash provided/(used) by financing activities (40,380) 440,822
--------- ---------
Increase/(decrease) in cash and cash equivalents (40,955) 248,887
Cash and cash equivalents at beginning of period 121,620 113,041
--------- ---------
Cash and cash equivalents at end of period $ 80,655 $ 361,928
========= =========
</TABLE>
The accompanying footnotes are an integral part of these statements.
4
<PAGE>
(UNAUDITED)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND
DESCRIPTION OF BUSINESS:
A. The Company is a New Jersey corporation organized in 1947. The Company
designs and produces electronic testing and measuring instruments
including power meters, voltmeters and modulation meters. Recent models
are microprocessor controlled and are often used in computerized
automatic testing systems. The Company's equipment is marketed
throughout the world to commercial and government customers in the
electronics industry.
The Company markets and distributes its products throughout the United
States and abroad through some 15 domestic sales representatives and 24
foreign distributors. Representatives sell on a commission basis, while
distributors buy products for resale at discounted ex-factory prices.
Its representatives and distributors also handle the products of other
manufacturers, although these are not generally competitive with the
Company's products except that some items handled by foreign
distributors may be somewhat competitive.
B. Use of estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
C. The company accounts for uncollectible accounts under the direct
write-off method whereas generally accepted accounting principals
require provision for such expenses under the allowance method. The
effect of using this method approximates the allowance method as all
amounts are deemed to be fully collectible.
D. Inventories - stated at the lower of cost or market determined by the
first-in, first-out (FIFO) method.
E. Plant and equipment - Depreciation and amortization are calculated by
the straight-line method for financial reporting purposes at rates
based on the following estimated useful lives:
Building and improvement 39
Machinery and equipment 5-10
Office furniture and fixtures 5-10
Transportation equipment 3
5
<PAGE>
(UNAUDITED)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
The accelerated cost recovery system and modified accelerated cost
recovery system is used for income tax purposes. Cost of major renewals
and betterments that extend the life of the property and equipment are
capitalized. Expenditures for maintenance and repairs are charged to
expenses as incurred.
F. Financial risk - The Company regularly maintains bank account balances
in excess of FDIC insurable limit.
G. Income Taxes - The Company adopted the provisions of Statement of
Financial Accounting Standards No. 109, "Accounting for Income Taxes"
which requires a company to recognize deferred tax liabilities and
assets for the expected future tax consequences of events that have
been recognized in a Company's financial statements or tax returns.
Under this method, deferred tax liabilities and assets are determined
based on the differences between the financial statement carrying
amounts and tax basis of assets and liabilities using expected tax
rates in effect in the years in which the differences are expected to
reverse. The Company recognized the benefit of net operating loss
carryforwards applying the valuation allowance, which requires that the
tax benefit be limited, based on the weight of available evidence and
the probability that some portion of the deferred tax asset will not be
realized.
H. Financial Instruments B The Company's financial instruments include
cash, cash equivalents, trade receivables and payables, long-term debt
and loans from related parties for which carrying amounts approximate
fair value. It is not practicable to estimate the fair value of related
party loans and long-term debt.
I. Stock-Based Compensation B The Company has elected to follow Account
Principles Board Opinion No. 25, Accounting for Stock Issued to
Employees (APB25) and related interpretations in accounting for its
employee stock options. Under APB25, because the exercise price of
employee stock options equals the market price of the underlying stock
on the date of grant, no compensation expense is recorded. Effective
October 1, 1997, the Company has adopted the disclosure only provisions
of Statement of Financial Accounting Standards No. 123, Accounting for
Stock-Based Compensation (Statement 123).
6
<PAGE>
(UNAUDITED)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
NOTE 2 - PROCEEDINGS UNDER CHAPTER:
The Company operated under Chapter 11 proceedings for the period
September 7, 1993 through November 15, 1994 when, on the later date, the
order confirming the Plan of Reorganization was entered by the United
States Bankruptcy Court, District of New Jersey subject to the court
closing the case 180 days after said entry (Local Rule 25(a)) cause for
extension of time in closing case (Local Rule 25(b)) and filing of
application for allowance of fees and allowance within 90 days after
entry of final order confirming plan (Local Rule 25(c)).
In accordance with S.A.S. Sections 560.03, the Company has
adjusted downward all liability accounts that were affected by the
confirmed Plan of Reorganization entered on November 15, 1994.
Therefore, the financial statements reflect the maximum liabilities to
creditors under the Chapter 11 proceedings and the Plan of
Reorganization. The settlement of unsecured claims under the confirmed
Plan of Reorganization totaling 35% of allowed claims for accounts
payable and accrued expenses provided for the following payments to be
made subsequent to November 15, 1994:
%
---
10 From after tax proceeds from termination of the
company's pension plan
5 One year after initial payout
5 Two years after initial payout
15 Three years after initial payout
Pre-petition liabilities in accordance with the November 15, 1994
confirmed plan of reorganization were compromised of the following:
Accounts payable $ 702,233
Accrued expenses:
Commissions payable 126,370
Vacation pay 96,250
Severance pay 25,108
Other 78,282
-----------
Total September 30, 1994 1,028,243
Court authorized payments/adjustments (75,073)
-----------
Balance subject to settlement 953,170
Amount discharged and/or paid to date (799,798)
-----------
Chapter 11 settlement total December 31, 1997 $ 153,372
===========
7
<PAGE>
(UNAUDITED)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
NOTE 3 - INVENTORIES
December 31, September 30,
1997 1997
------------ -------------
Raw material $ 740,728 $ 639,045
Work in process 567,346 577,337
Finished Goods 84,195 89,733
---------- ----------
Total inventories $1,392,269 $1,306,115
========== ==========
NOTE 4 - PLANT AND EQUIPMENT:
December 31, September 30,
1997 1997
------------ -------------
Building and improvements $ 62,329 $ 62,329
Machinery and equipment 1,657,819 1,657,819
Office furniture and fixtures 583,083 582,518
Transportation equipment 13,188 13,188
---------- ----------
Total 2,316,419 2,315,854
Less Accumulated depreciation 1,801,961 1,781,831
---------- ----------
Net depreciated cost $ 514,458 $ 534,023
========== ==========
NOTE 5 - NOTES PAYABLE
December 31, September 30,
1997 1997
------------ -------------
A. Board of Directors:
Notes, subordinated to
NJEDA loan, dated
February 6, 1995, payable
in monthly installments
of $5,449 including
interest at 9% per annum
through September 30, 2001:
$262,500 $262,500
Less current portion 43,530 43,530
-------- --------
Noncurrent portion $218,970 $218,970
======== ========
Interest expense for the fiscal years ended September 30, 1997 and 1996
amounted to $24,757 and $24,019, respectively. No principal payments
were made due to these notes being subordinated to the NJEDA loan.
8
<PAGE>
(Unaudited)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
December 31, September 30,
1997 1997
------------ -------------
B. New Jersey Economic
Development Authority:
Notes, dated July 31, 1996,
payable in monthly
installments of $7,620
including interest at 6.75%
per annum through June 30,
2003: $423,350 $438,730
Less current portion 64,479 63,379
-------- --------
Noncurrent portion $358,871 $375,351
======== ========
Interest expense for the fiscal years ended September 30, 1997 and 1996
amounted to $23,066 and $1,042, respectively. Future principal payments
under the terms of the agreement are as follows:
FISCAL YEAR AMOUNT
----------- ------
1998 $63,379
1999 67,855
2000 72,647
2001 77,778
2002 83,271
2003 73,800
--------
TOTAL: $438,730
========
NOTE 6 - CONCENTRATION OF CREDIT RISK:
The Company maintains cash and cash equivalents at three
financial institutions that are insured by the Federal Deposit Insurance
Corporation (FDIC) and/or Securities Investor Protection Corporation
(SIPC). The Company at times during the year had amounts in these
institutions that exceeded insurable limits of $100,000 FDIC and $500,000
SIPC. In the normal course of business the Company extends unsecured
credit to customers in the United States and Asia.
9
<PAGE>
(UNAUDITED)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
NOTE 7 - COMMITMENTS AND CONTINGENCIES:
A. Commitments:
Retirement Plans:
Effective July 1, 1989, the Company adopted a defined
contribution plan for all eligible employees. In accordance with
Internal Revenue Code Section 401(k), the plan provides for
elective deferral of up to 15% of total compensation. The plan
further provided for a Company matching contribution of 25% of
the elective deferral amount of each participant that did not
exceed 6% of total compensation. Effective January 1, 1994, the
matching Company contribution was suspended due to the company's
financial condition and pending reorganization. Effective
October 1, 1995, the Company reinstated a matching contribution
at 50% of the elective deferral amount for each participant that
does not exceed 6% of total compensation. The amounts charged to
operations were $37,581 and $46,151 for the years ended
September 30, 1997 and 1996, respectively.
B. Employee Stock Options Plans:
On February 26, 1987, the Stockholders approved the 1987
Incentive Stock Option Plan, the 1987 Employee Stock Purchase
Plan and the 1987 Stock Option Program for Non-Employee
Directors. Subject to the provisions of these plans, an
aggregate of 150,000 shares of the Company's stock was made
available for option purchases; namely, 75,000 shares, 37, 500
shares and 37,500 shares, respectively. The plans ended
effective December 1996 and no further grants may be made for
options.
10
<PAGE>
(UNAUDITED)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
OPTION
------
PRICE PER SHARE NUMBER OF SHARES
--------------- ----------------
Shares under option at
September 30, 1994 3.00 50,000
Granted $1.0625 130,000
Exercised $1.0625 (30,000)
Expired $1.0625 (18,750)
Expired/surrender $3.00 (50,000)
-------
Shares under option at
September 30, 1995 $1.0625 81,250
Exercised $1.0625 (34,500)
Expired $1.0625 (250)
-------
Shares under option at
September 30, 1996 $1.0625 46,500
Expired $1.0625 (20,000)
-------
Shares under option at
September 30, 1997 $1.0625 26,500
======
Lease Commitments:
Subsequent to the sale of the Company's facility in Randolph,
New Jersey on September 28, 1994, the company entered into a
seven-year lease for its present office and manufacturing
facility in Hanover Township, New Jersey with a five-year
renewal option. Rent charged to operations for the fiscal year
ended September 30, 1997 was $227,400. Annual rent for the
initial seven-year term is $227,400 for the first four years and
$300,000 for years five through seven. Future minimum lease
payments required under the operating lease are as follows:
FISCAL YEAR AMOUNT
----------- ------
1998 $227,400
1999 300,000
2000 300,000
2001 300,000
The Company leases office equipment under a five-year operating
lease with an option to upgrade after three years that it
intends to exercise. The annual lease payment for the term of
the lease is $17,617. Future lease payments required under the
operating lease are as follows:
11
<PAGE>
(UNAUDITED)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
FISCAL YEAR AMOUNT
----------- ------
1998 $17,617
1999 17,617
2000 17,617
2001 1,468
Contingencies:
A. Environmental Contingencies:
Following an investigation by the New Jersey Department of
Environmental Protection (NJDEP) of the Company's waste disposal
practices at a certain site that it formerly leased, the Company
put a ground water management plan into effect as approved by
the Department. Costs associated with this site are charged
directly to income as incurred. The owner of this site has
notified the Company that if the NJDEP investigation proves to
have interfered with a sale of the property, the owner may seek
to hold the Company liable for any loss it suffers as a result.
However, corporate counsel has informed management that, in
their opinion, the lessor would not prevail in any lawsuit filed
due to the imposition by law of the statute of limitations.
Costs charged to operations in connection with the water
management plan amounted to $43,173 and $51,879 for the years
ended September 30, 1997 and 1996, respectively. The Company
estimates the expenditures in this regard for the fiscal year
ending September 30, 1998 will amount to approximately $52,000.
The Company will continue to be liable under the plan in all
future years until such time as the NJDEP releases it from all
obligations applicable thereto.
B. Contingent Subscription and Option Agreement:
On June 30, 1997, the Board of Directors of Boonton Electronics
Corporation (BEC) agreed to enter into a Subscription and Option
Agreement with G.E.M. USA, Inc. (GEM), a wholly-owned subsidiary
of General Electronique Mesure, S.A., whereby GEM shall have the
option to buy 435,984 shares of the common stock of BEC at an
option price of $3.24 per share. The term of the option
agreement shall be for a period of two years. On October 1,
1997, GEM paid BEC $25,000 for this option and simultaneously
purchased 7,716 shares of BCE's common stock from the
corporation for $25,000.
12
<PAGE>
(UNAUDITED)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
Also on October 1, 1997, BEC entered into a Shared Facilities
Agreement with B&K Precision, Inc. (B&K), a wholly owned
subsidiary of GEM, as additional consideration for the above
noted option. B&K shall pay BEC a monthly management fee of
$15,000 and shall also pay rent at the same price per square
foot as BEC for the area sublet to B&K.
C. Income Tax Contingencies:
The Company's income tax returns for the fiscal years ended
September 30, 1995, 1996 and 1997 are subject to review.
<TABLE>
<CAPTION>
NOTE 8 - COMMON AND TREASURY STOCK:
December 31, September 30
1997 1996
------------ ------------
<S> <C> <C>
Common Stock:
$.10 par value, authorized 5,000,000
shares, issued and outstanding 1,644,301
shares and 1,636,585 shares, respectively. $164,430 $163,659
======== ========
</TABLE>
NOTE 9 - INCOME TAXES:
The components of the deferred tax asset are:
December 31, September 30
1997 1997
------------ ------------
Deferred tax asset $2,867,591 $2,867,591
Less: Valuation allowance (1,797,882) (1,797,882)
---------- ----------
Net deferred tax asset $1,069,709 $1,069,709
========== ==========
Financial Accounting Standards Board Statement No. 109,
"Accounting for Income Taxes", requires that the Company record a
valuation allowance when it is "more likely than not that some portion
or all of the deferred tax assets will not be realized". It further
states that "forming a conclusion that a valuation allowance is not
needed is difficult when there is negative evidence such as cumulative
losses in recent years".
The ultimate realization of this deferred income tax asset
depends on the ability to generate sufficient taxable income in the
future. The Company is undergoing substantial restructuring changes and
has made strategic realignments of its operations in association with
its Plan or Reorganization that management believes will result in
future profitability.
13
<PAGE>
(UNAUDITED)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
While it is management's belief that these measures will allow the total
deferred income tax asset to be realized by future operating results, the
losses in recent years and a desire to be conservative make it
appropriate to record a valuation allowance.
Accordingly, the Company has provided a valuation allowance (based on
estimated future taxable income) for the portion of the total deferred
income tax asset that will not be realized as related to the operating
loss carryforward.
Income tax laws allow for the utilization of loss carryforwards over
periods not to exceed 15 and 7 years for Federal and State purposes,
respectively. If the Company is not able to generate sufficient taxable
income in the future through operating results, increases in the
valuation allowance will be required through a charge to expense
(reducing stockholder's equity). In the event the Company reports
sufficient profitability to use all of the deferred income tax assets,
the valuation allowance will be eliminated through a credit to expense
(increasing stockholder's equity).
The following is a reconciliation of income taxes at the federal
statutory rate.
December 31, September 30
1996 1997
------------ ------------
Computed income taxes at statutory rate $ 6,191 $ 8,628
Recognition of net operating loss (6,191) (8,628)
------- -------
Expense/(benefit) $ -- $ --
======= =======
The Company has net operating loss carryforwards for federal and
state purposes approximating $6,266,666 and $8,188,055 that will not
begin to expire until the year 2011and 2003 respectively. These loss
carryforwards can be utilized to reduce future taxable income dollar for
dollar.
In May 1997, the Company dissolved Boonton International Sales
Corporation (BIS) (former wholly-owned subsidiary) and received a
Certificate of Dissolution from the state of New Jersey. BIS, as an
Interest Charge Domestic International Sales Corporation (IC-DISC), had
$1,456,000 of deferred income. The deferred income became taxable to the
Company upon the dissolution of BIS and therefore reduced the deferred
tax asset and related valuation allowance accordingly.
14
<PAGE>
(UNAUDITED)
BOONTON ELECTRONICS CORPORATION
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
NOTE 10 - SEGMENT INFORMATION:
The Company is engaged in the manufacture and sale of electronic
test and measurement equipment and management considers its business as a
single segment for reporting purposes.
The Company's export sales were as follows:
Three Months Ended % of
December 31, Amount Total Sales
------------ ------ -----------
1997 $838,158 51%
1996 $676,740 37%
Customers sales to domestic government agencies were as follows:
Three Months Ended % of
December 31, Amount Total Sales
------------ ------ -----------
1997 $ 55,438 3%
1996 $383,080 21%
NOTE 11 B EARNINGS PER SHARE:
Earnings per share have been computed by dividing net earnings
by the weighted average number of common shares outstanding of 1,644,301
for 1997 and 1,576,585 for 1996. Options to purchase a total of 428,268
shares of common stock at $3.24 per share were not included because the
exercise price exceeded the average market price, which would result in
antidilution. Incentive stock options to purchase 26,500 shares in 1997
and 46,500 shares in 1996 were not included because they were
insignificant.
15
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF INCOME STATEMENTS
THREE MONTHS ENDED DECEMBER 31, 1997
Sales for the three months ended December 31, 1997 were $153,875
below the prior year. The decrease in sales was due to a $372,642
decrease in military contract revenues offset by a $161, 418 increase in
export revenues. Gross profit decreased $24,155 but increased as a
percentage of sales to 48% in 1997 versus 45% in 1996. The increase in
gross profit as a percentage of sales was due to the reduction in
military contract revenues, which traditionally have a lower gross
margin. Commission expense decreased $7,609 from the prior year due
primarily to the decreased volume of sales. Research and Development
expense increased $45,315 over the prior year as the Company
concentrates on new product design. All other operating costs decreased
$38,186 below the prior year. Income from operations decreased to
$18,216 versus $41,891 in the prior year due primarily to the increase
in development expense. Net income was $18,209 versus $25,377 in the
prior year and earnings per share were $0.01 versus $0.02.
The December 31, 1997 inventory was $86,154 higher then the
September 30, 1997 balance of $1,306,115. This increase was
predominately caused by the purchase of components for the Company's
updated peak power meters. Trade receivables were down $145,237 from the
September 30, 1997 balance of $1,051,887 due to the decreased volume of
sales. The current ratio at December 31, 1997 was 2.11 versus 2.24 at
September 30, 1997.
16
<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.
BOONTON ELECTRONICS CORPORATION
By: /s/ YVES GUYOMAR
-----------------------------------
Yves Guyomar, President and Chief
Executive Officer
Date: February 17, 1998
By: /s/ JOHN E. TITTERTON
-----------------------------------
John E. Titterton, Vice President
Finance, Secretary/Treasurer
Date: February 17, 1998
February 17, 1998
17
<PAGE>
BOONTON ELECTRONICS CORPORATION
INDEX TO EXHIBIT FILED
IN THE QUARTERLY REPORT ON FORM 10-QSB
FOR THE THREE MONTHS ENDED DECEMBER 31, 1997
EXHIBIT NO. PAGE
----------- ----
27 Financial Data Sheet 19
18
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Page 19)
</LEGEND>
<CIK> 0000013191
<NAME> Boonton Electronics
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> DEC-31-1997
<CASH> 80,665
<SECURITIES> 0
<RECEIVABLES> 906,650
<ALLOWANCES> 0
<INVENTORY> 1,392,269
<CURRENT-ASSETS> 2,842,666
<PP&E> 2,316,419
<DEPRECIATION> 1,801,961
<TOTAL-ASSETS> 4,416,944
<CURRENT-LIABILITIES> 1,346,598
<BONDS> 0
0
0
<COMMON> 164,430
<OTHER-SE> 2,328,075
<TOTAL-LIABILITY-AND-EQUITY> 4,416,944
<SALES> 1,657,200
<TOTAL-REVENUES> 1,657,200
<CGS> 857,575
<TOTAL-COSTS> 781,409
<OTHER-EXPENSES> (13,527)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 13,534
<INCOME-PRETAX> 18,209
<INCOME-TAX> 0
<INCOME-CONTINUING> 18,209
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 18,209
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
