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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
----------
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 9, 1998
INTERNATIONAL REMOTE IMAGING SYSTEMS, INC.
(Exact Name of Registrant as Specified in Charter)
DELAWARE 1-11181 94-2579751
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
9162 ETON AVENUE, CHATSWORTH, CALIFORNIA 91311
(Address of Principal Executive Offices (Zip Code)
Registrant's telephone number, including area code: (818) 709-1244
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Item 5. Other Events.
In the second quarter of this year, the Company voluntarily elected to
begin early reporting of segment information for interim periods and adopted
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 131, "Disclosures about Segments of an Enterprise and Related Information"
("FAS 131"). This statement requires that a public business enterprise report
financial and descriptive information about its reportable operating segments
and is effective for fiscal years beginning after December 31, 1997. The
adoption of FAS 131 did not affect the results of operations or financial
position for prior periods but did affect the disclosure of revenues by product
line and segment information.
The Company reported segment information for the three-month and
six-month periods ended June 30, 1998 and 1997 in its second quarter Form 10-Q.
The Company is filing this Current Report on Form 8-K to voluntarily report
similar segment information in accordance with FAS 131 for the three completed
fiscal years ending December 31, 1997.
2
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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 hereunto duly authorized.
INTERNATIONAL REMOTE IMAGING
SYSTEMS, INC.
Dated: October 9, 1998 By: /s/ MARTIN S. McDERMUT
---------------------------------
Martin S. McDermut
Vice President - Finance and
Administration, Chief Financial
Officer and Secretary
3
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EXHIBIT INDEX
NO. DOCUMENT
- --- --------
99 Summary of Revenues by Product Line and Segment
Information for the Three Years Ended December 31, 1997
4
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Segment Reporting Exhibit 99
In the quarter ended June 30, 1998, the Company adopted FAS 131
replacing FAS 14. Under FAS 14 the Company operated in one industry segment. The
Company is organized on the basis of products and related services and under FAS
131 operates in three segments-(1) urinalysis, (2) genetic analysis and (3)
small laboratory devices. The adoption of FAS 131 did not affect results of
operations or financial position but did affect the disclosure of revenues by
product line and segment information.
The urinalysis segment designs, develops, manufactures and markets IVD
imaging systems based on patented and proprietary AIM technology for automating
microscopic procedures for urinalysis. The genetic analysis segment designs,
develops, manufactures and markets IVD imaging systems for karyotyping, DNA
probe analysis and comparative genomic hybridization. The small laboratory
devices segment designs, develops, manufactures and markets a variety of
benchtop centrifuges, small instruments and supplies. These products are used
primarily for manual specimen preparation and dedicated applications in
coagulation, cytology, hematology and urinalysis.
The accounting policies of the segments are the same as those described
in the "Summary of Significant Accounting Policies" included in the Company's
report on Form 10-K/A for the year ended December 31, 1997. The Company
evaluates the performance of its segments and allocates resources to them based
on earnings before income taxes, excluding corporate charges.
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The following table presents a summary of revenues for each segment by
product line for the three years ended December 31, 1997:
<TABLE>
<CAPTION>
Small
Genetic Laboratory Unallocated
Urinalysis Analysis Devices Corporate Total
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
For The Year Ended December 31, 1995
Sales of IVD imaging systems $ 4,240,627 $ -- $ -- $ 4,240,627
Sales of IVD imaging system supplies and service 6,737,444 -- -- 6,737,444
Sales of small instruments and supplies -- -- 3,414,087 3,414,087
Royalties 96,023 -- -- 96,023
------------ ------------ ------------ ------------
Total $ 11,074,094 $ -- $ 3,414,087 $ 14,488,181
============ ============ ============ ============
For The Year Ended December 31, 1996
Sales of IVD imaging systems $ 4,189,663 $ 2,180,683 $ -- $ 6,370,346
Sales of IVD imaging system supplies and service 8,831,516 285,977 -- 9,117,493
Sales of small instruments and supplies -- -- 5,066,292 5,066,292
Royalties 42,923 -- -- 42,923
------------ ------------ ------------ ------------
Total $ 13,064,102 $ 2,466,660 $ 5,066,292 $ 20,597,054
============ ============ ============ ============
For The Year Ended December 31, 1997
Sales of IVD imaging systems $ 5,612,308 $ 6,211,135 $ -- $ 11,823,443
Sales of IVD imaging system supplies and service 10,061,314 559,897 -- 10,621,211
Sales of small instruments and supplies -- -- 4,447,418 4,447,418
Royalties 510,920 -- 92,156 603,076
------------ ------------ ------------ ------------
Total $ 16,184,542 $ 6,771,032 $ 4,539,574 $ 27,495,148
============ ============ ============ ============
</TABLE>
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The following table presents information about reported segments for
the three years ended December 31, 1997:
<TABLE>
<CAPTION>
Small
Genetic Laboratory Unallocated
Urinalysis Analysis Devices Corporate Total
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
For the year ended December 31, 1995
Revenues $ 11,074,094 -- $ 3,414,087 -- $ 14,488,181
Interest income $ 307,108 -- $ 2,821 -- $ 309,929
Interest expense -- -- $ 42,699 -- $ 42,699
Depreciation and amortization $ 679,705 -- $ 55,957 $ 9,021 $ 744,683
Other noncash items $ 2,882,858 -- -- -- $ 2,882,858
Unusual items $ 2,900,430 -- -- -- $ 2,900,430
Segment profit (loss) $ (899,807) -- $ 433,288 $ (1,053,702) $ (1,520,221)
Segment assets $ 15,340,025 -- $ 2,348,931 $ 4,513,589 $ 22,202,545
Investment in long term assets $ 2,781,442 -- $ 999,945 -- $ 3,781,387
For the year ended December 31, 1996
Revenues $ 13,064,102 $ 2,466,660 $ 5,066,292 -- $ 20,597,054
Interest income $ 209,609 $ 1,081 $ 11,245 -- $ 221,935
Interest expense -- $ 677,818 $ 3,296 -- $ 681,114
Depreciation and amortization $ 1,110,305 $ 638,890 $ 281,261 $ 75,298 $ 2,105,754
Other noncash items $ 146,636 $ 7,250,000 -- -- $ 7,396,636
Unusual items $ 822,958 $ 7,282,206 $ 19,074 $ 1,017,354 $ 9,141,592
Segment profit (loss) $ (717,081) $ (8,707,958) $ 984,695 $ (2,445,771) $(10,886,115)
Segment assets $ 15,606,015 $ 11,089,196 $ 2,952,284 $ 8,212,750 $ 37,860,245
Investment in long term assets $ 1,592,495 $ 10,512,360 $ 788,526 -- $ 12,893,381
For the year ended December 31, 1997
Revenues $ 16,184,542 $ 6,771,032 $ 4,539,574 -- $ 27,495,148
Interest income $ 34,673 $ 4,203 $ 17,681 -- $ 56,557
Interest expense -- $ 1,208,138 -- -- $ 1,208,138
Depreciation and amortization $ 1,207,014 $ 1,472,518 $ 936,005(1) $ 64,460 $ 3,679,997
Other noncash items $ 57,031 -- (1,374) -- $ 55,657
Unusual items $ 95,129 -- $ 704,579 $ 538,630 $ 1,338,338
Segment profit (loss) $ 2,720,558 $ (1,912,239) $ 371,988 $ (1,976,595) $ (796,288)
Segment assets $ 10,872,075 $ 11,179,455 $ 2,067,297 $ 8,615,750 $ 32,734,577
Investment in long term assets $ 1,080,419 $ 402,890 $ 31,387 -- $ 1,514,696
</TABLE>
(1) Includes writeoff totaling $704,579 relating to the goodwill associated with
the digital refractometer line of business.
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The Company ships products from three locations in the United States
and from its subsidiary in the United Kingdom. The following table presents
sales by United States and United Kingdom locations for the three years ended
December 31, 1997:
<TABLE>
<CAPTION>
1995 1996 1997
------------ ----------- -----------
<S> <C> <C> <C>
Sales
United States $ 14,488,181 $18,937,542 $24,862,561
United Kingdom -- 1,659,512 2,632,587
------------ ----------- -----------
$ 14,488,181 $20,597,054 $27,495,148
============ =========== ===========
</TABLE>
The following table presents long-lived assets information by geographic
area for the three years ended December 31, 1997:
<TABLE>
<CAPTION>
1995 1996 1997
----------- ----------- ------------
Long-lived assets
<S> <C> <C> <C>
United States $ 4,428,011 $ 9,544,977 $ 7,914,822
United Kingdom -- 5,622,790 5,389,300
----------- ----------- ------------
$ 4,428,011 $15,167,767 $ 13,304,122
=========== =========== ============
</TABLE>
