<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
(MARK ONE)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
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 1-7081
CUSTOMEDIX CORPORATION
----------------------------------------------------
(Exact name of registrants specified in its charter)
Delaware #22-1844840
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
P. O. Box 724, 53 North Plains Industrial Road, Wallingford, CT 06492
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
203-284-9079
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
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
------ -----
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the close of the period covered by this report.
<TABLE>
<CAPTION>
Class Outstanding at March 31, 1996
----- -----------------------------
<S> <C>
Common stock $.01 par value 3,295,886
</TABLE>
<PAGE> 2
Item 1. PART I
CUSTOMEDIX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
================================================================================
<TABLE>
<CAPTION>
March 31, June 30,
1996 1995
------------ ------------
(Unaudited) (a)
ASSETS
------
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 31,350 $ 166,670
Accounts receivable, less allowance
for possible losses of $369,500 and $283,000 6,982,199 6,862,206
Inventory (Note 3) 8,294,614 7,411,332
Other 525,561 581,698
------------ ------------
TOTAL CURRENT ASSETS 15,833,724 15,021,906
PROPERTY AND EQUIPMENT, less accumulated
depreciation and amortization of $4,057,689
and $3,714,656 (Note 6) 3,042,658 3,148,573
EXCESS OF COST OVER NET ASSETS OF BUSINESSES
ACQUIRED, less accumulated amortization of
$2,545,056 and $2,331,371 4,595,979 4,809,664
OTHER ASSETS 400,036 416,159
------------ ------------
TOTAL ASSETS $ 23,872,397 $ 23,396,302
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Current portion of long-term debt and
obligations under capital leases (Note 5) $ 935,327 $ 1,050,600
Accounts payable and accrued expenses 4,298,466 3,330,687
------------ ------------
TOTAL CURRENT LIABILITIES 5,233,793 4,381,287
LONG-TERM DEBT AND OBLIGATIONS UNDER CAPITAL
LEASES, less current portion (Note 5) 6,371,235 6,823,926
LONG-TERM PENSION OBLIGATION AND OTHER 1,776,105 1,788,894
------------ ------------
TOTAL LIABILITIES 13,381,133 12,994,107
------------ ------------
STOCKHOLDERS' EQUITY:
Preferred stock, $1.00 par value - 100,000
shares authorized; none issued -- --
Common stock, $.01 par - 3,900,000 shares
authorized; 3,295,886 and 3,296,286 outstanding 32,959 32,963
Additional paid-in capital 26,833,353 26,834,399
Accumulated deficit (16,375,048) (16,465,167)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 10,491,264 10,402,195
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 23,872,397 $ 23,396,302
============ ============
</TABLE>
(a) Derived from the audited financial statements
See accompanying "Notes to Condensed Consolidated Financial Statements".
2
<PAGE> 3
CUSTOMEDIX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
March 31,
---------------------------------
1996 1995
---- ----
<S> <C> <C>
REVENUES:
Sales $ 39,168,228 $ 37,124,566
Other income 374,103 382,047
------------ ------------
Total revenues 39,542,331 37,506,613
------------ ------------
COSTS, EXPENSES AND OTHER:
Cost of sales 28,517,005 27,064,358
Selling, general and administrative
expenses 10,073,537 8,926,423
Interest expense 686,670 666,676
------------ ------------
39,277,212 36,657,457
------------ ------------
Income before provision for income taxes 265,119 849,156
PROVISION FOR INCOME TAXES (Note 4) (175,000) (285,000)
------------ ------------
NET INCOME $ 90,119 $ 564,156
============ ============
INCOME PER SHARE (Note 2) $ .03 $ .15
============ ============
</TABLE>
See accompanying "Notes to Condensed Consolidated Financial Statements".
3
<PAGE> 4
CUSTOMEDIX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------------------
1996 1995
---- ----
<S> <C> <C>
REVENUES:
Sales $ 14,216,310 $ 12,909,888
Other income 108,565 138,846
------------ ------------
Total revenues 14,324,875 13,048,734
------------ ------------
COSTS, EXPENSES AND OTHER:
Cost of sales 10,098,727 9,379,371
Selling, general and administrative
expenses 3,822,393 3,055,619
Interest expense 225,782 224,296
------------ ------------
14,146,902 12,659,286
------------ ------------
Income before provision for income taxes 177,973 389,448
PROVISION FOR INCOME TAXES (Note 4) (145,000) (100,000)
------------ ------------
NET INCOME $ 32,973 $ 289,448
============ ============
INCOME PER SHARE (Note 2) $ .01 $ .08
============ ============
</TABLE>
See accompanying "Notes to Condensed Consolidated Financial Statements".
4
<PAGE> 5
CUSTOMEDIX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
March 31,
-----------------------
1996 1995
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income $ 90,119 $ 564,156
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation 467,435 437,132
Amortization 230,346 325,852
Provision for loss on accounts receivable 124,631 83,997
(Gain) loss on disposal of assets (17,527) 788
Change in assets and liabilities:
Accounts receivable (244,624) 138,316
Inventory (797,046) (927,107)
Other assets 55,599 887,570
Accounts payable and accrued expenses 967,779 (870,422)
Other liabilities (12,789) 195,887
--------- ---------
Net cash provided by operating
activities 863,923 836,169
--------- ---------
Cash flows from investing activities:
Purchase of property and equipment (392,773) (223,485)
--------- ---------
Cash flows from financing activities:
Repayments to banks and others (605,420) (906,638)
Repurchase and retirement of common stock (1,050) (21,217)
--------- ---------
Net cash used in financing activities (606,470) (927,855)
--------- ---------
Net decrease in cash and
cash equivalents (135,320) (315,171)
Cash and cash equivalents, beginning
of period 166,670 477,983
--------- ---------
Cash and cash equivalents, end of period $ 31,350 $ 162,812
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for -
Interest $ 641,200 $ 717,600
Income taxes 282,100 268,700
Non-cash transaction -
Capital lease obligation -- 153,185
Note payable for purchase of inventory 86,236 --
Retirement of capital lease obligation on
trade-in 48,780 --
Residual value of equipment traded in on
lease retirement 30,827 --
</TABLE>
See accompanying "Notes to Condensed Consolidated Financial Statements".
5
<PAGE> 6
CUSTOMEDIX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31,1996
(UNAUDITED)
Note 1 - Basis of Presentation
The accompanying unaudited, condensed consolidated financial statements
have been prepared by the Company in accordance with generally accepted
accounting principles for interim financial information, and pursuant
to the rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in the
financial statements have been condensed or omitted pursuant to such
rules and regulations, although management believes that the
disclosures are adequate to make the information presented not
misleading. In the opinion of management, the accompanying condensed
consolidated financial statements contain all adjustments (consisting
of only normal recurring accruals) necessary for a fair presentation of
the results for the interim periods presented. The results for the
interim periods are not necessarily indicative of the results to be
expected for the full year. It is suggested that these condensed
consolidated financial statements be read in conjunction with the
financial statements and the notes thereto included in the Company's
Annual Report to Stockholders.
Note 2 - Earnings Per Share
Income per share was computed based on the weighted average number of
common stock and common stock equivalent shares outstanding during each
period. There were 3,333,600 and 3,719,200 weighted average shares
outstanding for the nine months ended March 31, 1996 and 1995,
respectively, and 3,333,400 and 3,716,100 for the three months ended
March 31, 1996, and 1995, respectively.
Note 3 - Inventory
Inventory is summarized as follows:
<TABLE>
<CAPTION>
March 31, 1996 June 30,1995
-------------- ------------
<S> <C> <C>
Finished Products $5,303,266 $4,592,441
Work-In-Process 725,590 694,073
Raw Material & Supplies 2,265,758 2,124,818
---------- ----------
Total $8,294,614 $7,411,332
========== ==========
</TABLE>
Note 4 - Income Taxes
The provision for income taxes represents minimum federal and state
income taxes. The Company has recognized a deferred tax asset to the
extent existing deductible temporary differences are expected to
reverse and enable the Company to recapture alternative minimum taxes
previously paid. The deferred tax assets totaling $225,000 and $170,000
in fiscal 1996 and 1995, respectively, are included in other current
assets.
6
<PAGE> 7
CUSTOMEDIX CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1996
(UNAUDITED)
Note 5 - Long-Term Debt and Obligations Under Capital Leases
Long-term debt and obligations under capital leases are summarized as
follows:
<TABLE>
<CAPTION>
March 31, 1996 June 30, 1995
-------------- -------------
<S> <C> <C>
Term Loan $5,914,236 $6,279,002
Revolving credit facility 300,000 300,000
Obligations under capital
leases 436,149 656,292
Note payable to officer 591,500 591,500
Other 64,677 47,732
---------- ----------
7,306,562 7,874,526
Less current portion 935,327 1,050,600
---------- ----------
Total $6,371,235 $6,823,926
========== ==========
</TABLE>
Note 6 - Property and Equipment
Major classes of property and equipment consist of the following:
<TABLE>
<CAPTION>
March 31, 1996 June 30, 1995
-------------- -------------
<S> <C> <C>
Machinery and equipment $3,362,589 $3,411,694
Leasehold improvements 2,164,268 2,081,034
Furniture and fixtures 1,540,949 1,337,960
Transportation equipment 32,541 32,541
---------- ----------
Total 7,100,347 6,863,229
Less accumulated depreciation
and amortization 4,057,689 3,714,656
---------- ----------
$3,042,658 $3,148,573
========== ==========
</TABLE>
Note 7 - Reclassifications
Certain reclassifications have been made to the fiscal 1995
consolidated financial statements in order for them to be presented in
conformity with the fiscal 1996 consolidated financial statements.
Note 8 - Subsequent Event
The Company was advised on May 8, 1996 that the February 5, 1996
proposal from Dr. Gordon S. Cohen to acquire the Company through a
negotiated merger was withdrawn.
7
<PAGE> 8
Item 2.
CUSTOMEDIX CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
================================================================================
Operations
Sales for the nine months ended March 31, 1996 were $39,168,200
compared to $37,124,600 for the nine months ended March 31, 1995, an increase of
$2,043,600 or 5.5%. Sales for the quarter ended March 31, 1996 were $14,216,300
compared to $12,909,900 for the quarter ended March 31, 1995, an increase of
$1,306,400 or 10.1%. The increases were attributable to higher unit sales, both
domestic and foreign, of many of the Company's products. The increase in unit
sales was offset by reductions in fiscal 1996 in the average cost of certain
precious metals found in a significant percentage of the Company's products,
which decreased the selling prices of such products. These decreases reduced
sales by approximately $640,000 for the nine months ended March 31, 1996 and
$240,000 for the quarter ended March 31, 1996 compared with the corresponding
periods of the prior year. Unit sale increases were also offset by decreases in
medical sales by the Company's subsidiary, Transidyne General Corporation
("Transidyne"), of approximately $252,200 and $78,400 for the nine and three
months ended March 31, 1996, respectively, compared to the same periods of the
prior year.
Gross profit as a percentage of sales was 27.2% for the nine months
ended March 31, 1996 compared to 27.1% for the nine months ended March 31, 1995.
Gross profit as a percentage of sales was 29.0% for the quarter ended March 31,
1996 compared to 27.3% for the quarter ended March 31, 1995. These increases of
.1% and 1.7%, respectively, were attributable in part to a change in product mix
to higher margin products and in part to the decrease in the cost of certain
precious metals compared to the prior year, which increased gross profit as a
percentage of sales. These increases were partially offset by an increase in the
reserve for possibly unsaleable inventory in fiscal 1996 and the write-off of
obsolete inventory. Gross profit as a percentage of sales was 26.5% for the
fiscal year ended June 30, 1995.
Selling, general and administrative expenses were $10,073,500 for the
nine months ended March 31, 1996 compared to $8,926,400 for the nine month
period last year. Selling, general and administrative expenses were $3,822,400
for the quarter ended March 31, 1996 as compared to $3,055,600 for the prior
year quarter. These increases of $1,147,100 and $766,800 respectively, were due
primarily to increases in professional fees; salaries; advertising expenses;
expenses of the Special Committee appointed by the Board of Directors to
consider Dr. Cohen's proposal described below in Part II, Item 5, "Other
Information"; and expenses associated with an alleged employee misappropriation
of funds at Transidyne; the increases were partially offset by decreases in
pension expenses and amortization of goodwill.
8
<PAGE> 9
CUSTOMEDIX CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Income before income taxes was $265,100 for the nine months ended March
31, 1996 compared to $849,200 for the nine months ended March 31, 1995. Income
before income taxes was $178,000 for the quarter ended March 31, 1996 compared
to $389,400 for the quarter ended March 31, 1995. These decreases of $584,100
and $211,400 respectively, were primarily attributable to increased selling,
general and administrative expenses as discussed above and were partially offset
by increased gross profits.
Provision for income taxes was $175,000 for the nine months ended March
31, 1996 compared to $285,000 for the nine months ended March 31, 1995.
Provision for income taxes was $145,000 for the quarter ended March 31, 1996
compared to $100,000 for the quarter ended March 31, 1995. The increased
effective tax rate was due to the Company using the balance of its available net
operating loss carryforwards in fiscal 1995 and due to an increase in
non-deductible expenses incurred in fiscal 1996.
Impact of Inflation
The Company experienced only minor inflation-related cost increases
which were not a material factor in the comparison of expenses with respect to
the periods compared.
Liquidity and Capital Resources
Working capital decreased by approximately $40,700 to $10,599,900 at
March 31, 1996 from June 30, 1995.
For the nine months ended March 31, 1996, cash generated by operations
and cash on hand were primarily used as follows: (i) to reduce debt by
approximately $605,400, and (ii) to purchase property and equipment totaling
approximately $392,800.
As of March 31, 1996, the Company was in compliance with all of the
financial covenants contained in the loan agreement, as amended, with the
Company's principal lending bank (the "Bank"). The loan is scheduled to mature
on January 2, 2000. The interest rate on the term loan and the $1,000,000
revolving line of credit were reduced from 1/4% above the Bank's index rate to
the Bank's index rate effective November 8, 1995.
9
<PAGE> 10
CUSTOMEDIX CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The Company expects significant demands on cash during the next twelve
months as a result of anticipated advertising expenses, salaries, continuing
litigation expenses, facilities expansion, increased costs associated with
regulatory compliance relating to sales of the Company's products, federal
alternative minimum taxes and state income taxes. In addition, because of the
Company's substantial debt burden, a significant portion of cash flow will
continue to be used to repay debt. This substantial use of cash limits the funds
available for general working capital purposes, product research and marketing,
as well as funds that can be expended on new facilities and capital equipment.
Furthermore, the ability of the Company to expand operations through mergers or
acquisitions is limited by the lack of available cash with which to fund such
activities.
Future Outlook
The Company expects to continue to incur high expenses in the areas of
new product development and research and product introduction. The Company
expects these efforts will focus primarily on dental products, and the
associated expenses could contribute to reduced earnings. In addition, the
dental products market faces increasing competition and profitability pressures,
both in domestic and foreign markets. Accordingly, the Company may experience
further reduction in its margins on certain dental products. The Company is
highly leveraged and any significant increase in interest rates could materially
and adversely affect the Company's profitability and cash flow.
The Company's profitability could be adversely affected in fiscal 1996
and 1997 if it incurs significant legal costs in connection with the prosecution
of a suit filed by its subsidiary, Jeneric/Pentron, Inc. ("Jeneric/Pentron")
against two former employees and business entities with which they are
affiliated for unfair trade practices, breach of contract and breach of common
law duties of loyalty; in the defense of a suit filed against Jeneric/Pentron by
Synspar & Pentron Dental Products, s.r.l.; and in connection with a recently
instituted proceeding in Germany, all of which are described under the caption
"Legal Proceedings" in the Company's Annual Report on Form 10-K for the fiscal
year ended June 30, 1995 and in the Company's Reports on Form 10-Q for the
periods ended September 30, 1995, December 31, 1995, and March 31, 1996. An
adverse outcome in some or all of these matters, or protracted litigation, could
have a material adverse effect on the Company's financial condition and results
of operations.
10
<PAGE> 11
PART II
CUSTOMEDIX CORPORATION
OTHER INFORMATION
================================================================================
Item 1. Legal Proceedings
There has been no material change from the information set
forth in Item 3 of the Company's Annual Report on Form 10-K for the fiscal year
ended June 30, 1995 and Item 1 under the caption "Legal Proceedings" in the
Reports on Form 10-Q filed for the periods ended September 30, 1995 and December
31, 1995 except as follows:
In conjunction with the Company's receipt of a proposal in
February 1996 from Dr. Gordon S. Cohen, the Company's Chief Executive Officer
and Chairman, offering to acquire the Company through a negotiated merger,
certain class action complaints were filed in the Court of Chancery for the
State of Delaware in and for New Castle County, which suits are styled as
follows: Moise Katz v. Gordon S. Cohen, Martin L. Schulman, William T. Fitch,
Elry C. Bird, Robert S. Cooper, David H. Leigh, Robert N. Thomas and Customedix
Corporation, Civil Action No. 14812; Frederick Manillo v. Gordon S. Cohen,
Martin L. Schulman, William T. Fitch, Elry C. Bird, Robert S. Cooper, David H.
Leigh, Robert N. Thomas and Customedix Corporation, Civil Action No. 14813;
Thomas Torre v. Gordon S. Cohen, Martin L. Schulman, William T. Fitch, Elry C.
Bird, Robert S. Cooper, David H. Leigh, Robert N. Thomas and Customedix
Corporation, Civil Action No. 14814; Sylvia Torre v. Gordon S. Cohen, Martin L.
Schulman, William T. Fitch, Elry C. Bird, Robert S. Cooper, David H. Leigh,
Robert N. Thomas and Customedix Corporation, Civil Action No. 14818. All of the
above actions were brought on behalf of the plaintiffs and all other
stockholders of the Company and seek to enjoin the proposed transaction or, in
the alternative, to recover damages. The Company believes that the withdrawal of
Dr. Cohen's proposal renders these actions moot.
Ivoclar A.G. ("Ivoclar") has sued Jeneric/Pentron Inc.
("Jeneric/Pentron") and its German distributor for unfair competition in
connection with sales of porcelain pellets used for manufacturing dental
restorations. The action was brought in Landgericht Regional Court in Cologne,
Germany. Potential damages, if any, are uncertain; however, an adverse decision
in this action could preclude Jeneric/Pentron from selling such porcelain
pellets in Germany. Jeneric/Pentron believes it has meritorious defenses to
Ivoclar's claim and has instructed its attorneys to vigorously defend this
action.
11
<PAGE> 12
PART II
CUSTOMEDIX CORPORATION
OTHER INFORMATION
================================================================================
Item 5. Other Information
On February 5, 1996, the Company's Board of Directors received
a proposal from Dr. Gordon S. Cohen, the Company's Chief Executive Officer and
Chairman of the Board, to acquire the Company through a negotiated merger. Under
the proposal, the Company's stockholders, other than Dr. Cohen and certain
family trusts, would receive $1-15/16 cash per share of Customedix stock. On May
8, 1996, the Company issued a press release announcing that the proposal had
been withdrawn. The press release of Customedix Corporation, dated May 8, 1996,
is incorporated herein by reference.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits: Two
27 Financial Data Schedule
99 Press Release of Customedix Corporation dated
May 8, 1996.
(b) Reports on Form 8-K: None
12
<PAGE> 13
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.
May 10, 1996 Customedix Corporation
- -------------------- ----------------------------
Date Registrant
/S/Gordon S. Cohen
----------------------------
Gordon S. Cohen
Chairman and
Chief Executive Officer
/S/Barry L. Kosowsky
----------------------------
Barry L. Kosowsky
Principal Financial Officer
Principal Accounting Officer
13
<TABLE> <S> <C>
<ARTICLE> 5
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1
<CASH> 31,044
<SECURITIES> 306
<RECEIVABLES> 7,351,699
<ALLOWANCES> 369,500
<INVENTORY> 8,294,614
<CURRENT-ASSETS> 15,833,724
<PP&E> 7,100,347
<DEPRECIATION> 4,057,689
<TOTAL-ASSETS> 23,872,397
<CURRENT-LIABILITIES> 5,233,793
<BONDS> 0
0
0
<COMMON> 32,959
<OTHER-SE> 10,458,305
<TOTAL-LIABILITY-AND-EQUITY> 23,872,397
<SALES> 39,168,228
<TOTAL-REVENUES> 39,542,331
<CGS> 28,517,005
<TOTAL-COSTS> 38,590,542
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 686,670
<INCOME-PRETAX> 265,119
<INCOME-TAX> 175,000
<INCOME-CONTINUING> 90,119
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 90,119
<EPS-PRIMARY> .03
<EPS-DILUTED> .03
</TABLE>
<PAGE> 1
[CUSTOMEDIX LETTERHEAD]
NEWS
RELEASE
Summary: Customedix Corp. (AMEX) receives
withdrawal of proposal from Dr.
Gordon S. Cohen
Company contact: Joseph MacDougald
Phone No: (203) 284-9079
Fax No: (203) 265-7662
FOR IMMEDIATE RELEASE:
WALLINGFORD, CONNECTICUT, MAY 8, 1996..., CUSTOMEDIX CORPORATION (AMEX: CUS) WAS
ADVISED TODAY THAT DR. GORDON S. COHEN HAS WITHDRAWN HIS PROPOSAL TO ACQUIRE THE
COMPANY THROUGH A NEGOTIATED MERGER.
