<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D. C. 20549
FORM 10Q
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For the Quarter ended December 31, 1996
Commission File Number 0-10125
Radiant Technology Corporation
------------------------------
(Exact name of registrant as specified in its charter)
California 95-2800355
- ------------------ --------------------
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) identification number)
1335 S. Acacia Street, Fullerton, CA 92831
------------------------------------------------
(Address of principal executive offices)(Zip Code)
(714) 991 - 0200
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(Registrant's Telephone number, including area code)
Inapplicable
------------
(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 latest practicable date.
Common Stock, no par value 1,867,638
- -------------------------- -------------
(Class) (Outstanding at December 31, 1996)
1
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RADIANT TECHNOLOGY CORPORATION
INDEX
Part I Financial Information:...................................Page No.
Condensed Balance Sheets- December 31, 1996
and September 30, 1996 (unaudited)..............................3
Condensed Statement of Operations - Three Months
Ended December 31, 1996 and 1995 (unaudited)...................4
Condensed Statement of Cash Flows - Three Months
Ended December 31, 1996 and 1995 (unaudited)....................5
Notes to Condensed Financial Statements (unaudited)...............6
Management's Discussion and Analysis of Financial
Condition and Results of Operation..............................6
Part II Other Information
Legal Proceedings and Exhibits....................................9
Signature Page...................................................10
2
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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets
(Unaudited)
ASSETS
------
December 31 September 30
1996 1996
----------- ------------
Current Assets:
Cash $ 619,719 $ 610,128
Accounts Receivables - Net 887,019 759,123
Inventories 530,460 640,846
Prepaid Expenses and other
Current Assets 3,540 5,900
----------- -----------
Total Current Assets 2,040,738 2,015,997
Machinery and Equipment - Net 429,362 444,446
Other Assets 97,978 63,930
----------- -----------
Total Assets $2,568,078 $2,524,373
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Notes Payables and Current Portion
Long-Term Debt $ 0 $ 0
Accounts Payable 56,753 174,761
Accrued and Other Expenses 865,537 760,612
Income Taxes Payable 511 511
---------- ----------
Current Liabilities 922,801 935,884
Liabilities Subject to Compromise 0 0
---------- ----------
Long-Term Debt, Net of Current
Portion 0 0
---------- ----------
Total Liabilities 922,801 935,884
Stockholders' Equity
Common Stock, no par value 1,143,008 1,143,008
Additional Paid-in-Capital
Retained Earnings (deficit) 502,269 445,481
---------- ----------
Total Stockholders' Equity 1,645,277 1,588,489
---------- ----------
Total Liabilities and
Stockholders' Equity $2,568,078 $2,524,373
========== ==========
<PAGE>
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION CONTINUED
Condensed Statements of Income
(Unaudited)
THREE MONTHS ENDED
DECEMBER 31
---------------------
1996 1995
---- ----
NET SALES $ 949,500 $1,299,339
COST OF SALES 706,665 935,804
----------- -----------
GROSS PROFIT 242,835 363,535
OTHER OPERATING EXPENSE 186,293 243,624
----------- -----------
OPERATING INCOME 56,542 119,911
OTHER INCOME (EXPENSE) 246 (49,858)
INTEREST EXPENSE 0 (10,020)
----------- -----------
TOTAL OTHER INCOME (EXPENSE) 246 (59,878)
----------- -----------
INCOME BEFORE REORGANIZATION
ITEMS AND TAX BENEFITS 56,788 60,033
REORGANIZATION ITEMS
PROVISION FOR BANKRUPTCY CLAIMS
PROFESSIONAL FEES 0 (31,211)
----------- -----------
INCOME (LOSS) BEFORE TAX BENEFIT
AND EXTRAORDINARY ITEMS 56,788 28,822
PROVISION (BENEFIT) FOR TAXES 0 800
----------- -----------
INCOME (LOSS) BEFORE EXTRAORDINARY
ITEM 56,788 28,022
EXTRAORDINARY ITEM:
GAIN ON EXTINGUISHMENT OF DEBT 0 224,516
----------- -----------
NET INCOME (LOSS) $ 56,788 $ 252,538
=========== ===========
EARNINGS PER SHARE:
INCOME BEFORE EXTRAORDINARY ITEM $0.03 $0.02
EXTRAORDINARY ITEM 0.00 0.12
----------- -----------
NET INCOME PER SHARE $0.03 $0.14
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING-RESTATED 1,867,638 1,867,638
4
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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
DECEMBER 31
---------------------
1996 1995
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $ 56,788 $ 252,538
ADJUSTMENTS TO RECONCILE INCOME BEFORE
EXTRAORDINARY ITEM TO NET CASH PROVIDED
BY OPERATING ACTIVITIES:
BAD DEBT EXPENSE
DEPRECIATION AND AMORTIZATION 25,180 32,853
INVENTORY WRITE DOWN
GAIN (LOSS) ON ASSET DISPOSAL
CHANGES IN ASSETS AND LIABILITIES:
ACCOUNTS AND NOTES RECEIVABLE (127,896) (26,675)
INVENTORIES 110,386 112,583
PREPAID EXPENSES & OTHER ASSETS (31,688) 11,720
ACCOUNTS PAYABLE (118,008) 0
ACCRUED EXPENSES 104,925 0
----------- ----------
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES 19,687 383,019
CHANGES IN REORGANIZATION ITEMS:
INCREASE (DECREASE) IN LIABILITIES NOT
SUBJECT TO COMPROMISE 0 (242,339)
INCREASE (DECREASE) IN LIABILITIES
SUBJECT TO COMPROMISE 0 (273,400)
----------- -----------
NET CHANGE IN REORGANIZATION ITEMS 0 (515,739)
----------- -----------
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 19,687 (132,720)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
PAYMENTS FOR PURCHASE OF PROPERTY AND
EQUIPMENT (10,096) (1,493)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
SHORT-TERMS DEBT CONVERTED TO EQUITY 0 405,434
BORROWINGS FROM SHORT-TERM DEBT
PRINCIPAL REDUCTIONS ON SHORT-TERM DEBT 0 0
----------- -----------
NET CASH PROVIDED (USED) BY FINANCING
ACTIVITIES 0 405,434
NET INCREASE (DECREASE) IN CASH 9,591 271,221
CASH AT BEGINNING OF PERIOD 610,128 379,936
----------- -----------
CASH AT END OF PERIOD $ 619,719 $ 651,157
=========== ==========
5
<PAGE>
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION - CONTINUED
Notes to Condensed Financial Statement for
December 31, 1996
(UNAUDITED)
ITEM 1 - Notes
1. Inventories
-----------
December
----------------------------
Inventories are summarized as follows: 1996 1995
---------- -----------
Raw material $ 210,175 $ 272,149
Work in Process 307,285 173,365
Finished Goods 13,000 24,000
----------- -----------
$ 530,460 $ 469,514
2. Machinery and Equipment
-----------------------
Summary of machinery and equipment follows: December
---------------------------
1996 1995
---------- -----------
Machinery and Equipment $ 434,722 $ 1,538,984
Office Furniture 32,272 293,461
Trucks and Automobiles 15,050 37,761
Leasehold Improvements 125,409 125,409
---------- -----------
$ 607,453 $ 1,995,615
Less Accumulated Depreciation 178,091 1,822,974
---------- -----------
Machinery and Equipment $ 429,362 $ 172,641
========== ===========
ITEM 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operation
The three month earnings per share on income before the extraordinary item at
December 31, 1996 and 1995 was $.03 and $.02, respectively.
Comparative December shipments were down approximately $350,000 from the
December 1995 quarter, a 27% decrease. The manufacturing operations were
adversely affected by relocating facilities from Anaheim to Fullerton,
California during the months of December and January. Some manufacturing
impairment is expected to continue partially into the second quarter as a
result of the facility relocation and production equipment "ramp up".
6
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Comparative profit of $56,788 before the extraordinary item was generated in
the fiscal year 1997 first quarter compared to a profit of $28,022 in the
fiscal year 1996 first quarter. $31,211 in legal expenses and $10,200 interest
charges were included in the December 31, 1995 quarter, but is not applicable
for the December 31, 1996 quarter as a result of consummating the bankruptcy
plan.
The Company emerged from 27 months of Bankruptcy on February 20, 1996 and
elected to adopt "Fresh Start Reporting" of assets. As a result, there is a
lack of comparability before and after the "Fresh Start Reporting" of assets.
RADIANT TECHNOLOGY CORPORATION
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
None.
Item 2. Changes in Securities
---------------------
Pursuant to the Reorganization Plan, a 30 to 1 reverse split was transacted in
December 1995.
Common stock, no par value shares of 5,712,206 were converted to 177,825 new
shares after repurchases by Radiant Technology Corporation. The shareholders
also received 346,779 "spillover shares" from shares not claimed by creditors
or total shares of 524,604.
The composition of the new outstanding shares at December 31, 1996 and 1995 are
approximately as follows:
Creditors and Shareholders 534,775
Conversion of Insider
Financing/Debt to Stock 1,332,863
---------
Total Stock Outstanding 1,867,638
Item 6. Reports on 8-K
--------------
None.
7
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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.
RADIANT TECHNOLOGY CORPORATION
------------------------------
(Registrant)
Dated: February 12, 1997 /s/ L. R. McNamee
-----------------------------
Lawrence R. McNamee
Chairman of the Board,
Chief Operating Officer,
Chief Executive Officer
8
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