<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter ended December 31, 1996 Commission file number 2-31876
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ACADEMIC COMPUTER SYSTEMS, INC.
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(Exact name of registrant as specified in its charter)
New Jersey 22-1848316
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2 West 45th Street,
New York, New York 10036
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 532-3678
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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
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Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date:
Class Outstanding at January 28, 1997
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Common stock, par value $.05 per share 907,700
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PART I - FINANCIAL INFORMATION
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Item 1.
Financial Statements:
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The following are the required financial statements, including an
index thereof:
ACADEMIC COMPUTER SYSTEMS, INC.
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INDEX
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PAGE NO.
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Balance Sheet - December 31, 1996
- September 30, 1996 1
Statement of Income -
Three Months Ended December 31, 1996 and 1995 2
Statement of Retained Earnings -
Three Months Ended December 31, 1996 and 1995 3
Statement of Cash Flows -
Three months Ended December 31, 1996 and 1995 4
Notes to Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial Condition and Results
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of Operations:
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There are no material changes in the operations of the Company.
The Company is presently seeking opportunities for investment and
preservation of its existing assets.
Management believes that all material adjustments have been included
herein.
PART II - OTHER INFORMATION
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Not applicable.
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ACADEMIC COMPUTER SYSTEMS, INC.
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BALANCE SHEET
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ASSETS
------
December September
31, 30,
1996 1996
-------- --------
Current assets:
Cash and cash equivalents $225,454 $167,657
Interest receivable 971 2,770
Prepaid federal income tax - 418
-------- --------
Total current assets 226,425 170,845
Long-term assets:
Marketable securities (Note 2) 393,584 408,191
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$620,009 $579,036
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LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Taxes payable $ 297 $ 1,795
Accounts payable and accrued expenses 750 1,250
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Total current liabilities 1,047 3,045
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Commitments and contingencies (Note 3) - -
Deferred taxes payable (Note 4) 50,383 38,437
Stockholders' equity:
Common stock, par value of $.05 per share;
authorized 1,250,000 shares, issued and
outstanding 910,000 shares at December 31,
1996 and September 30, 1996 45,500 45,500
Additional paid-in capital 312,571 312,571
Unrealized gain on securities reported at
fair value (Notes 2 and 4) 113,782 88,578
Retained earnings 98,882 93,061
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621,118 578,147
Less treasury stock - at cost (2,300 shares) ( 2,156) ( 2,156)
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618,962 575,991
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$620,009 $579,036
======== ========
See Notes to Financial Statements.
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ACADEMIC COMPUTER SYSTEMS, INC.
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STATEMENT OF INCOME
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Three Months Ended
December 31,
1996 1995
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Income:
Dividend income $ 5,129 $ 6,411
Interest income 2,857 835
Other income 1,690 -
Loss on sale of securities (Note 2) ( 1,757) -
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7,919 7,246
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Costs and expenses:
Operating costs, selling, general and administrative
expense 954 858
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Income before provision for taxes 6,965 6,388
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Provision for income taxes:
Federal 980 477
State and local 164 21
-------- --------
1,144 498
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Net income $ 5,821 $ 5,890
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Per share:
Net income $ .01 $ .01
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Shares outstanding 907,700 907,700
======== ========
See Notes to Financial Statements.
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ACADEMIC COMPUTER SYSTEMS, INC.
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STATEMENT OF RETAINED EARNINGS
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Three Months Ended
December 31,
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1996 1995
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Balance - at beginning of period $ 93,061 $ 68,438
Net income 5,821 5,890
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Balance - at end of period $ 98,882 $ 74,328
======== ========
See Notes to Financial Statements.
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ACADEMIC COMPUTER SYSTEMS, INC.
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STATEMENT OF CASH FLOWS
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Three Months Ended
December 31,
1996 1995
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Cash flows derived from operating activities:
Interest and dividends received $ 9,784 $ 7,345
Cash paid to suppliers ( 1,438) ( 1,108)
Income taxes paid ( 549) ( 1,500)
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Net cash provided by operating activities 7,797 4,737
-------- --------
Cash flows from investing activities:
Sale of securities 50,000 _
-------- --------
Net cash provided by investing activities 50,000 _
-------- --------
Net increase in cash equivalents 57,797 4,737
Cash and cash equivalents, beginning of period 167,657 149,375
-------- --------
Cash and cash equivalents, end of period $225,454 $154,112
======== ========
Reconciliation of net income to net cash provided
by operating activities:
Net income $ 5,821 $ 5,890
Adjustments to reconcile net income to net
cash provided by operating activities:
Loss on sale of securities 1,757 -
Decrease in other current assets 2,217 99
(Decrease) in accounts payable ( 500) ( 250)
(Decrease) in taxes payable ( 1,498) ( 1,002)
-------- --------
Net cash provided by operating activities $ 7,797 $ 4,737
======== ========
See Notes to Financial Statements.
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<PAGE>
ACADEMIC COMPUTER SYSTEMS, INC.
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NOTES TO FINANCIAL STATEMENTS
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DECEMBER 31, 1996 AND 1995
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1. Statement of Significant Accounting Policies:
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The Company records its investment income on the accrual basis.
There were no operating activities during the periods of these
statements.
In the opinion of management, the accompanying financial statements
contain all adjustments (consisting only of normal recurring adjustments)
necessary to present fairly the financial position of the Company as of
December 31, 1996, and the results of operations and cash flows for the
three months ended December 31, 1996 and December 31, 1995. Such financial
statements do not include all disclosures required by generally accepted
accounting principles.
These financial statements should be read in conjunction with the
Company's audited financial statements for the years ended September 30,
1996 and 1995 included in the Company's annual report filed on Form 10K.
2. Marketable Securities:
----------------------
The Company has adopted Statement of Financial Accounting Standards
(SFAS) No. 115, "Accounting for Certain Investments in Debt and Equity
Securities." Under SFAS No. 115, debt and equity securities are classified
into three categories: trading, available-for-sale, and held-to-maturity.
Management determines the appropriate classification of its investments
at the time of purchase, and reevaluates such determination at each balance
sheet date. The Company has categorized its marketable securities as
available-for-sale. SFAS No. 115 requires available-for-sale securities to
be carried at fair value with unrealized gains and unrealized losses
reported as a separate component of stockholders' equity. Realized gains
and losses are determined on a specific identification basis. A decline in
market value of any available-for-sale security below cost that is deemed
other than temporary is charged to earnings, resulting in the establishment
of a new cost basis for the security.
3. Commitments and Contingencies:
------------------------------
The Company's income tax returns have not been audited by the Internal
Revenue Service.
The Company is not involved in any litigation.
4. Deferred Taxes:
---------------
Temporary differences arise from unrealized gains on securities that
are reported as an adjustment to stockholders' equity for financial
reporting but are not recorded in the tax return until the securities are
sold. The Company uses the liability method for calculating the deferred
tax provision and charges the tax effect directly to stockholders' equity.
The deferred taxes relate solely to the available-for-sale securities, and,
as such, have no effect on the components of net income (see Note 2).
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<PAGE>
SIGNATURES
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Pursuant to the requirements of Sectin 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf of the undersigned, thereunto duly authorized.
ACADEMIC COMPUTER SYSTEMS, INC.
By /s/ Milton Fisher
--------------------------------
Milton Fisher, President
Dated: January 28, 1997
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<PAGE>
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