<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 June 30, 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 (IRS 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 June 30, 1997)
<PAGE>
RADIANT TECHNOLOGY CORPORATION
INDEX
Part I Financial Information........................................Page No.
Condensed Balance Sheets - June 30, 1997
and September 30, 1996 (unaudited)..............................3
Condensed Statement of Operations - Three Months
Ended June 30, 1997 and 1996 (unaudited)........................4
Condensed Statement of Cash Flows - Nine Months
Ended June 30, 1997 (unaudited).................................5
Condensed Statement of Cash Flows - Three Months
Ended June 30, 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
<PAGE>
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets
(Unaudited)
ASSETS
------
June 30 September 30
1997 1996
----------- -----------
Current Assets:
Cash $ 837,536 $ 610,128
Accounts Receivables - Net 900,643 759,123
Inventories 707,880 640,846
Prepaid Expenses and other
Current Assets 2,107 5,900
--------- ---------
Total Current Assets 2,448,166 2,015,997
Machinery and Equipment - Net 468,979 444,446
Other Assets 92,645 63,930
--------- ---------
Total Assets $3,009,790 $2,524,373
---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Notes Payables and Current Portion
Long-Term Debt $ 0 $ 0
Accounts Payable 191,526 174,761
Accrued and other Expenses 949,671 760,612
Income Taxes Payable 511 511
------- -------
Current Liabilities 1,141,708 935,884
Long-Term Debt, Net of Current
Portion 0 0
------- -------
Total Liabilities 1,141,708 935,884
Stockholders' Equity
Common Stock, no par value 1,143,008 1,143,008
Additional Paid-in-Capital
Retained Earning (deficit) 725,074 445,481
------- -------
Total Stockholder's Equity 1,868,082 1,588,489
--------- ---------
Total Liabilities and
Stockholders' Equity $3,009,790 $2,524,373
---------- ----------
<PAGE>
<TABLE>
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
JUNE 30 JUNE 30
----------------------- -----------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
NET SALES $1,242,303 $1,207,509 $3,064,251 $3,533,010
COST OF SALES 897,113 826,496 2,183,387 2,465,532
---------- ---------- ---------- ----------
GROSS PROFIT 345,190 381,013 880,864 1,067,478
OTHER OPERATING EXPENSE 234,205 266,426 685,863 793,202
------- ------- ------- -------
OPERATIING INCOME (LOSS) 110,985 114,587 195,001 274,276
OTHER INCOME (EXPENSE) 26,066 (20,000) 86,363 (74,858)
INTEREST EXPENSE 0 0 0 (10,020)
------ ------- ------ --------
TOTAL OTHER
INCOME (EXPENSE) 26,066 (20,000) 86,363 (84,878)
------ -------- ------ --------
INCOME BEFORE REORGANIZATION
ITEMS AND TAX BENEFITS 137,051 94,587 281,364 189,398
REORGANIZATION ITEMS
PROVISION FOR BANKRUPTCY CLAIMS
PROFESSIONAL FEES 0 (31,211) 0 (31,211)
------- -------- ------- --------
INCOME (LOSS) BEFORE TAX BENEFIT
AND EXTRAORDINARY ITEMS 137,051 63,376 281,364 158,187
PROVISION (BENEFIT) FOR TAXES FEES 1,771 800 1,771 800
------- ------ ------- -------
INCOME (LOSS) BEFORE
EXTRAORDINARY ITEM 135,280 62,576 279,593 157,387
EXTRAORDINARY ITEM:
GAIN (LOSS) ON DEBT EXTINGUISHMENT 0 0 0 223,691
------- ------ -------- -------
NET INCOME (LOSS) $135,280 $62,576 $279,593 $381,078
======== ======= ======== ========
EARNINGS PER SHARE:
- -------------------
INCOME BEFORE REORGANIZATION ITEMS
REORGANIZATION ITEMS $0.07 $0.03 $0.15 $0.08
EXTRAORDINARY ITEM 0.00 0.00 0.00 0.12
----- ----- ----- -----
NET INCOME PER SHARE $0.07 $0.03 $0.15 $0.20
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING-RESTATED 1,867,638 1,867,638 1,867,638 1,867,638
</TABLE>
<PAGE>
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
NINE MONTHS ENDED
June 30
---------------------------
1997 1996
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $279,593 $381,078
ADJUSTMENTS TO RECONCILE INCOME BEFORE
EXTRAORDINARY ITEM TO NET CASH PROVIDED
BY OPERATING ACTIVITIES:
BAD DEBT EXPENSE
DEPRECIATION AND AMORTIZATION 75,540 82,351
INVENTORY WRITEDOWN
GAIN (LOSS) ON ASSET DISPOSAL
CHANGES IN ASSETS AND LIABILITIES:
ACCOUNTS AND NOTES RECEIVABLE (141,520) 94,809
INVENTORIES (67,034) 228,673
PREPAID EXPENSES AND OTHER ASSETS (24,922) 14,460
ACCOUNTS PAYABLE 16,765 (22,935)
ACCRUED EXPENSES 189,059 (125,658)
------- ---------
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES 327,481 652,778
------- -------
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 327,481 379,378
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
PAYMENTS FOR PURCHASE OF PROPERTY AND
EQUIPMENT (100,073) (28,351)
NET INCREASE (DECREASE) IN CASH 227,408 351,027
CASH AT BEGINNING OF PERIOD 610,128 379,936
------- -------
CASH AT END OF PERIOD $837,536 $730,963
<PAGE>
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
JUNE 30
--------------------------
1997 1996
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $135,280 $94,586
ADJUSTMENTS TO RECONCILE INCOME BEFORE
EXTRAORDINARY ITEM TO NET CASH PROVIDED
BY OPERATING ACTIVITIES
BAD DEBT EXPENSE
DEPRECIATION AND AMORTIZATION 25,180 16,646
INVENTORY WRITEDOWN
GAIN (LOSS) ON ASSET DISPOSAL
CHANGES IN ASSETS AND LIABILITIES:
ACCOUNTS AND NOTES RECEIVABLE 1,133 253,925
INVENTORIES (162,972) 187,712
PREPAID EXPENSES AND OTHER ASSETS 3,423 (8)
ACCOUNTS PAYABLE 168,851 (18,041)
ACCRUED EXPENSES 40,283 (176,317)
INCOME TAX PAYABLE -------- ---------
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES 211,178 358,503
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
PAYMENTS FOR PURCHASE OF PROPERTY AND
EQUIPMENT (25,557) (20,830)
NET INCREASE (DECREASE) IN CASH 185,621 337,673
CASH AT BEGINNING OF PERIOD 651,915 393,290
------- -------
CASH AT END OF PERIOD $837,536 $730,963
<PAGE>
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION - CONTINUED
Notes to Condesed Financial Statement for
June 30, 1997
(UNAUDITED)
ITEM 1 - Notes
1. Inventories
-----------
June
--------------------
Inventories are summarized as follows: 1997 1996
-------- --------
Raw material $ 359,902 $ 238,149
Work in Process 347,978 108,075
Finished Goods 0 7,200
------- -------
$ 707,880 $ 353,424
2. Machinery and Equipment
-----------------------
Summary of machinery and equipment follows: June
--------------------
1997 1996
-------- --------
Machinery and Equipment $459,953 $293,680
Office Furniture 42,148 31,035
Trucks and Automobiles 15,050 15,050
Leasehold Improvements * 54,871 125,409
-------- --------
$572,022 $465,174
Less Accumulated Depreciation (103,043) (136,834)
--------- ---------
Machinery and Equipment - Net $ 468,979 $ 328,340
========== ==========
* 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 improvements costs of $54,871 were generated at the
new facility to facilitate production requirements.
ITEM 2- Management's Discussion and Analysis of Financial Condition and
Results of Operation
Comparative profit of $135,280 was generated in the fiscal year 1997
third quarter compared to a profit of $62,576 in the fiscal year
1996 third quarter. Cessation of reorganization expenses coupled
with interest income earned on investment of excess funds comprised
the bulk of the increase.
The three month earnings per share on income before the
extraordinary item at June 30, 1997 and 1996 was $.07 and $.03,
respectively.
<PAGE>
Comparative June sales were up approximately $35,000 from the June 1996
quarter, a 3% increase.
Comparative profit for the nine months ending June 30, 1997 and 1996 was
$279,593 and $381,078, respectively. The current year to date profit
exceeded the prior year by approximately $90,000 before reorganization and
extraordinary items. Profits on Net Sales before extraordinary items is 9.1
percent for the nine months ending June 30, 1997, compared to 5.3 percent
for the comparable period in 1996. The increase in profits are attributable
to reversing prior period excess accruals related to a facility move.
The nine month earnings per share on income before the exreaordinary item at
June 30, 1997 and 1996 was $.15 and $.08.
Comparative June year to date shipments were down nearly $500,000 from the
prior years period as a result of disruptions attributed to the Company's
move to new facilities during December and January 1997.
RADIANT TECHNOLOGY CORPORATION
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
None
Item 6. Reports on 8-K
--------------
None
<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: July 18, 1997 /s/L.R. McNamee
---------------------------
Lawrence R. McNamee
Chairman of the Board,
Chief Operating Officer,
Chief Executive Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> JUN-30-1997
<CASH> 837,536
<SECURITIES> 0
<RECEIVABLES> 986,643
<ALLOWANCES> (86,000)
<INVENTORY> 707,880
<CURRENT-ASSETS> 2,448,166
<PP&E> 572,022
<DEPRECIATION> (103,043)
<TOTAL-ASSETS> 3,009,790
<CURRENT-LIABILITIES> 1,141,708
<BONDS> 0
0
0
<COMMON> 1,143,008
<OTHER-SE> 725,074
<TOTAL-LIABILITY-AND-EQUITY> 3,009,790
<SALES> 3,064,251
<TOTAL-REVENUES> 3,064,251
<CGS> 2,183,387
<TOTAL-COSTS> 2,183,387
<OTHER-EXPENSES> 599,500
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 281,364
<INCOME-TAX> 1,771
<INCOME-CONTINUING> 279,593
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 279,593
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
