United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QA
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended July 2, 2000
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 0-9023
COMDIAL CORPORATION
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(Exact name of Registrant as specified in its charter)
Delaware 94-2443673
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
P. O. Box 7266
1180 Seminole Trail; Charlottesville, Virginia 22906-7266
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(804) 978-2200
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___
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of Common Stock, as of latest practicable date. 9,202,543 common shares as of
July 2, 2000.
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COMDIAL CORPORATION AND SUBSIDIARIES
INDEX
PAGE
PART I - FINANCIAL INFORMATION
ITEM 1: Financial Statements
Consolidated Balance Sheets as of
July 2, 2000 and December 31, 1999 4
Consolidated Statements of Operations
for the Three and Six Months ended
July 2, 2000 and July 4, 1999 5
Consolidated Statements of Cash Flows
for the Six Months ended
July 2, 2000 and July 4, 1999 6
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EXPLANATORY NOTE
Comdial Corporation is amending its Quarterly Report, on Form 10-QA for the
fiscal quarter ended July 2, 2000, due to a typing error in the reconciliation
section of the Statement of cash Flows.
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COMDIAL CORPORATION AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
ITEM 1: Financial Statements
Consolidated Balance Sheets - (Unaudited)
July 2, Dec. 31,
In thousands except par value 2000 1999
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Assets
Current assets
Cash and cash equivalents $2,685 $1,917
Accounts receivable (less allowance 20,499 39,700
for doubtful accounts and reserve for
returns: 2000 - $5,529; 1999 - $2,300)
Inventories 30,101 22,827
Prepaid expenses and other current
assets 7,017 7,633
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Total current assets 60,302 72,077
Property - net 19,399 19,458
Goodwill 9,608 11,207
Deferred tax asset - net 17,942 11,980
Other assets 21,181 18,352
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Total assets $128,432 $133,074
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Liabilities and Stockholders' Equity
Current liabilities
Accounts payable $11,383 $15,135
Accrued payroll and related expenses 1,687 2,652
Other accrued liabilities 2,907 4,575
Current maturities of debt 1,349 471
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Total current liabilities 17,326 22,833
Long-term debt 33,932 31,795
Deferred tax liability 2,662 2,622
Other long-term liabilities 6,810 4,216
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Total liabilities 60,730 61,466
Commitments and contingent liabilities - -
Stockholders' equity
Common stock ($0.01 par value) and
paid-in capital (Authorized 30,000
shares; issued shares: 2000 = 9,202;
1999 = 8,940) 119,036 116,626
Treasury stock (1,236) (1,237)
Accumulated deficit (50,098) (43,781)
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Total stockholders' equity 67,702 71,608
Total liabilities and stockholders'
equity $128,432 $133,074
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* Condensed from audited financial statements.
The accompanying notes are an integral part of these financial statements.
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COMDIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations - (Unaudited)
In thousands except per share amounts
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Three Months Ended Six Months Ended
July 2, July 4, July 2, July 4,
2000 1999 2000 1999
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Net sales $21,372 $36,351 $53,565 $68,940
Cost of goods sold 16,960 20,902 35,383 40,995
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Gross profit 4,412 15,449 18,182 27,945
Operating expenses
Selling, general & administrative 12,120 9,820 22,404 18,226
Engineering, research
& development 1,589 2,338 3,286 4,424
Goodwill amortization expense 798 799 1,597 1,583
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Operating income (10,095) 2,492 (9,105) 3,712
Other expense
Interest expense 616 377 1,223 759
Miscellaneous expenses (income)- net (2) (28) 29 101
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Income (loss) before income taxes (10,709) 2,143 (10,357) 2,852
Income tax expense (benefit) (4,051) 852 (4,040) 1,173
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Net income (loss) ($6,658) $1,291 ($6,317) $1,679
==============================================================================
Earnings per share:
Basic ($0.72) $0.14 ($0.69) $0.19
Diluted ($0.72) $0.14 ($0.69) $0.19
Weighted average shares outstanding:
Basic 9,219 8,948 9,160 8,944
Diluted 9,286 8,986 9,374 8,985
The accompanying notes are an integral part of these financial statements.
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COMDIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows -(Unaudited)
Six Months Ended
July 2, July 4,
In thousands 2000 1999
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Cash flows from operating activities:
Cash received from customers $73,238 $64,986
Other cash received 4,579 770
Interest received 68 4
Cash paid to suppliers and employees (77,989) (65,472)
Interest paid on debt (1,111) (790)
Income taxes paid (484) (215)
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Net cash used in operating activities (1,699) (717)
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Cash flows from investing activities:
Acquisition costs for Array Telecom Corp. - (1)
Proceeds received from ePHONE for assets 648 -
Proceeds from the sale of equipment 544 1
Capital expenditures (1,756) (1,682)
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Net cash used in investing activities (564) (1,682)
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Cash flows from financing activities:
Net borrowings under Revolving Credit Facility 1,523 3,304
Proceeds from issuance of common stock 2,131 14
Principal payments on capital
lease obligations (623) (5)
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Net cash provided by financing activities 3,031 3,313
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Net increase in cash
and cash equivalents 768 914
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Cash and cash equivalents at
beginning of year 1,917 1,599
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Cash and cash equivalents at end of period $2,685 $2,513
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Reconciliation of net income to net cash used in operating activities:
Net income (loss) ($6,317) $1,679
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Depreciation and amortization 5,464 4,557
Decrease (increase) in accounts receivable 19,201 (3,751)
Inventory provision 1,705 918
Decrease (increase) in inventory (8,979) 2,077
Increase in other assets (6,686) (4,583)
Decrease (increase) in deferred tax asset (4,691) 756
Decrease in accounts payable (3,752) (1,319)
Increase (decrease) in other liabilities 2,076 (1,614)
Increase in paid-in capital and other equity 280 563
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Total adjustments 4,618 (2,396)
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Net cash used in operating activities ($1,699) ($717)
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The accompanying notes are an integral part of these financial statements.
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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.
Comdial Corporation
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(Registrant)
Date: August 29, 2000 By: William G. Mustain
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William G. Mustain
President and Chief
Executive Officer
By: Paul K. Suijk
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Paul K. Suijk
Senior Vice President and
Chief Financial Office
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