<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 March 31, 1997
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 South Acacia Avenue, Fullerton, CA 92831
-----------------------------------------------
(Address of principal executive offices)(Zip Code)
(714) 991 - 0200
-----------------
(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 March 31, 1997)
1
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RADIANT TECHNOLOGY CORPORATION
INDEX
Part I Financial Information: Page No.
Condensed Balance Sheets- March 31, 1997
and September 30, 1996 (unaudited)...............................3
Condensed Statement of Operations - Three Months
Ended March 31, 1997 and 1996 (unaudited).......................4
Condensed Statement of Cash Flows - Six Months
Ended March 31, 1997 and 1996 (unaudited)........................5
Condensed Statement of Cash Flows - Three Months
Ended March 31, 1997 and 1996 (unaudited)........................6
Notes to Condensed Financial Statements (unaudited)................7
Management's Discussion and Analysis of Financial
Condition and Results of Operation................................7
Part II Other Information
Legal Proceedings and Exhibits.....................................8
Signature Page.....................................................9
2
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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets
(Unaudited)
ASSETS
------
March 31 September 30
1997 1996
---------- ----------
Current Assets:
Cash $ 651,915 $ 610,128
Accounts Receivables - Net 901,776 759,123
Inventories 544,908 640,846
Prepaid Expenses and other
Current Assets 3,514 5,900
---------- ----------
Total Current Assets 2,102,113 2,015,997
Machinery and Equipment - Net 468,602 444,446
Other Assets 94,661 63,930
---------- ----------
Total Assets $2,665,376 $2,524,373
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Notes Payables and Current Portion
Long-Term Debt $ 0 $ 0
Accounts Payable 22,675 174,761
Accrued and other Expenses 909,388 760,612
Income Taxes Payable 511 511
---------- ----------
Current Liabilities 932,574 935,884
Liabilities Subject to Compromise 0 0
---------- ----------
Long-Term Debt, Net of Current
Portion 0 0
---------- ----------
Total Liabilities 932,574 935,884
Stockholders' Equity
Common Stock, no par value 1,143,008 1,143,008
Additional Paid-in-Capital
Retained Earnings (deficit) 589,794 445,481
---------- ----------
Total Stockholders' Equity 1,732,802 1,588,489
---------- ----------
Total Liabilities and
Stockholders' Equity $2,665,376 $2,524,373
========== ==========
3
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<TABLE>
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
Condensed statement of income
(unaudited)
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
MARCH 31 MARCH 31
---------------------- -----------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
NET SALES $ 872,448 $1,026,162 $1,821,948 $2,325,501
COST OF SALES 579,609 703,232 1,286,274 1,639,036
---------- ----------- ----------- -----------
GROSS PROFIT 292,839 322,930 535,674 686,465
OTHER OPERATING EXPENSE 265,365 283,152 451,658 526,776
---------- ----------- ----------- -----------
OPERATING INCOME (LOSS) 27,474 39,778 84,016 159,689
OTHER INCOME (EXPENSE) 60,051 (5,000) 60,297 (54,848)
INTEREST EXPENSE 0 0 0 (10,020)
TOTAL OTHER ---------- ----------- ----------- -----------
INCOME (EXPENSE) 60,051 (5,000) 60,297 (64,878)
---------- ----------- ----------- -----------
INCOME BEFORE REORGANIZATION
ITEMS AND TAX BENEFITS 87,525 34,778 144,313 94,811
REORGANIZATION ITEMS
PROVISION FOR BANKRUPTCY CLAIMS
PROFESSIONAL FEES 0 0 0 (31,211)
---------- ----------- ----------- -----------
INCOME (LOSS) BEFORE TAX BENEFIT
AND EXTRAORDINARY ITEMS 87,525 34,778 144,313 63,600
PROVISION (BENEFIT) FOR TAXES FEES 0 0 0 800
---------- ----------- ----------- -----------
INCOME (LOSS) BEFORE EXTRAORDINARY ITEM 87,525 34,778 144,313 62,800
EXTRAORDINARY ITEM:
GAIN (LOSS) ON DEBT EXTINGUISHMENT 0 (825) 0 223,691
---------- ----------- ----------- -----------
NET INCOME (LOSS) $ 87,525 $ 33,953 $ 144,313 $ 286,491
========== =========== =========== ===========
EARNINGS PER SHARE:
- -------------------
INCOME BEFORE REORGANIZATION ITEMS
REORGANIZATION ITEMS $0.05 $0.02 $0.08 $0.03
EXTRAORDINARY ITEM 0.00 0.00 0.00 0.12
________ _______ _______ _______
NET INCOME PER SHARE $0.05 $0.02 $0.08 $0.15
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING-RESTATED 1,867,638 1,867,638 1,867,638 1,867,638
</TABLE>
4
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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED
March 31
-----------------------
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $ 144,313 $ 286,491
ADJUSTMENTS TO RECONCILE INCOME BEFORE
EXTRAORDINARY ITEM TO NET CASH PROVIDED
BY OPERATING ACTIVITIES:
BAD DEBT EXPENSE
DEPRECIATION AND AMORTIZATION 50,360 65,705
INVENTORY WRITE DOWN
GAIN (LOSS) ON ASSET DISPOSAL
CHANGES IN ASSETS AND LIABILITIES:
ACCOUNTS AND NOTES RECEIVABLE (142,653) (159,113)
INVENTORIES 95,938 40,961
PREPAID EXPENSES & OTHER ASSETS (28,345) 14,468
ACCOUNTS PAYABLE (152,086) (4,893)
ACCRUED EXPENSES 148,776 (354,778)
---------- ----------
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES 116,303 (111,159)
---------- ----------
CHANGES IN REORGANIZATION ITEMS:
INCREASE (DECREASE) IN LIABILITIES NOT
SUBJECT TO COMPROMISE 0 0
INCREASE (DECREASE) IN LIABILITIES
SUBJECT TO COMPROMISE 0 (273,400)
---------- ----------
NET CHANGE IN REORGANIZATION ITEMS 0 (273,400)
---------- ----------
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 116,303 (384,559)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
PAYMENTS FOR PURCHASE OF PROPERTY AND
EQUIPMENT (74,516) (7,521)
---------- ----------
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 41,787 13,354
CASH AT BEGINNING OF PERIOD 610,128 379,936
---------- ----------
CASH AT END OF PERIOD $ 651,915 $ 393,290
========== ==========
5
<PAGE>
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
March 31
-----------------------
1997 1996
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $ 87,525 $ 33,953
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 (14,757) (132,438)
INVENTORIES (14,448) (71,622)
PREPAID EXPENSES & OTHER ASSETS 3,343 2,748
ACCOUNTS PAYABLE (34,078) (15,370)
ACCRUED EXPENSES 43,851 (101,962)
---------- ----------
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES 96,616 (251,838)
---------- ----------
CHANGES IN REORGANIZATION ITEMS:
INCREASE (DECREASE) IN LIABILITIES NOT
SUBJECT TO COMPROMISE 0 0
INCREASE (DECREASE) IN LIABILITIES
SUBJECT TO COMPROMISE 0 0
---------- ----------
NET CHANGE IN REORGANIZATION ITEMS 0 0
---------- ----------
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES 96,616 (251,838)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
PAYMENTS FOR PURCHASE OF PROPERTY AND
EQUIPMENT (64,420) (6,029)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
SHORT-TERMS DEBT CONVERTED TO EQUITY 0 0
BORROWINGS FROM SHORT-TERM DEBT
PRINCIPAL REDUCTIONS ON SHORT-TERM DEBT 0 0
---------- ----------
NET CASH PROVIDED (USED) BY FINANCING
ACTIVITIES 0 0
NET INCREASE (DECREASE) IN CASH 32,196 (257,867)
CASH AT BEGINNING OF PERIOD 619,719 651,157
---------- ----------
CASH AT END OF PERIOD $ 651,915 $ 393,290
========== ==========
6
<PAGE>
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION - CONTINUED
Notes to Condensed Financial Statement for
March 31, 1997
(UNAUDITED)
ITEM 1 - Notes
1. Inventories
-----------
March
----------------------
Inventories are summarized as follows: 1997 1996
---------- ----------
Raw material $ 210,176 $ 269,149
Work in Process 329,513 258,987
Finished Goods 5,219 13,000
---------- ----------
$ 544,908 $ 541,136
2. Machinery and Equipment
-----------------------
Summary of machinery and equipment follows: March
----------------------
1997 1996
---------- ----------
Machinery and Equipment $ 458,165 $ 287,900
Office Furniture 32,953 31,035
Trucks and Automobiles 15,050 37,761
Leasehold Improvements * 40,296 125,409
---------- ----------
$ 546,464 $ 482,105
Less Accumulated Depreciation (77,862) (159,293)
---------- ----------
Machinery and Equipment $ 468,602 $ 322,812
========== ==========
* Fully depreciated leasehold improvements of $125,409 were written off as
a result of being abandoned upon moving to the company's new facility.
Additional leasehold improvement costs of $40,296 were generated at the new
facility to facilitate production requirements.
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 March 31, 1997 and 1996 was $.05 and $.02, respectively.
Comparative March shipments were down approximately $150,000 from the
March 1996 quarter, a 15% 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 was expected to continue partially into the second quarter as a
result of the facility relocation and production equipment "ramp up".
7
<PAGE>
Comparative profit of $87,525 was generated in the fiscal year 1997
second quarter compared to a profit of $33,953 in the fiscal year 1996
second quarter. Approximately $60,000 accrued for moving expenses in the
prior period was utilized for capital equipment and leasehold improvements
instead of direct expenses and was removed as an excess accrual.
The six month earnings per share on income before the extraordinary
item at March 31, 1997 and 1996 was $.08 and $.03.
Comparative March year to date shipments were down approximately
$500,000 as a result of disruptions attributed to the move.
An increase in future shipments is anticipated as a result of the
Company's increasing backlog from approximately $1,200,000 in December 31,
1996 to $2,300,000 at March 31, 1997.
Comparative profit for March 31, 1997 and 1996 was $144,313 and
$286,491, respectively. The current year to date profit exceeded the prior
year by approximately $50,000 before reorganization and extraordinary items.
The increase is primarily attributable to reversing prior period excess
accruals related to the move.
RADIANT TECHNOLOGY CORPORATION
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
None.
Item 6. Reports on 8-K
--------------
None.
8
<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.
RADIANT TECHNOLOGY CORPORATION
------------------------------
(Registrant)
Dated: May 1, 1997 /s/ L. R. McNamee
------------------------------
Lawrence R. McNamee
Chairman of the Board,
Chief Operating Officer,
Chief Executive Officer
9
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> MAR-31-1997
<CASH> 651915
<SECURITIES> 0
<RECEIVABLES> 987776
<ALLOWANCES> (86000)
<INVENTORY> 544908
<CURRENT-ASSETS> 2102113
<PP&E> 546464
<DEPRECIATION> 77862
<TOTAL-ASSETS> 2665376
<CURRENT-LIABILITIES> 932574
<BONDS> 0
0
0
<COMMON> 1143008
<OTHER-SE> 589794
<TOTAL-LIABILITY-AND-EQUITY> 2665376
<SALES> 1821948
<TOTAL-REVENUES> 1821948
<CGS> 1286274
<TOTAL-COSTS> 1677635
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 144313
<INCOME-TAX> 0
<INCOME-CONTINUING> 144313
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 144313
<EPS-PRIMARY> .077
<EPS-DILUTED> .077
</TABLE>
