UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended September 30, 1997
Commission file number 1-6299
EMCEE Broadcast Products, Inc.*
(Exact name of registrant as specified in its charter)
Delaware 13-1926296
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
Registrant's telephone number, including area code: 717-443-9575
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 practical date:
Common stock, $ .01-2/3 par value - 4,153,261 shares as of October
30, 1997.
*formerly Electronics, Missiles & Communications, Inc.
<PAGE> EMCEE BROADCAST PRODUCTS, INC. AND SUBSIDIARIES
I N D E X
PAGE(S)
PART I. FINANCIAL INFORMATION:
CONSOLIDATED BALANCE SHEETS -
September 30, 1997 and March 31, 1997 3
CONSOLIDATED STATEMENTS OF INCOME -
Six months and three months ended
September 30, 1997 and 1996 4
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY -
Six months ended September 30, 1997 5
CONSOLIDATED STATEMENTS OF CASH FLOWS -
Six months ended September 30, 1997 and 1996 6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 7 - 8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 9 - 12
PART II. OTHER INFORMATION:
SIGNATURES 13
NOTE: Any questions concerning this report should be addressed to
Mr. Allan J. Harding, Vice President-Finance.
<PAGE>
<TABLE>
<CAPTION> PART I. FINANCIAL INFORMATION
EMCEE BROADCAST PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
- SEPTEMBER 30, 1997 and MARCH 31, 1997 -
SEPT 30, 1997 MARCH 31,1997
Unaudited
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 2,390,633 $ 681,335
U. S. Treasury Bills 2,253,073 1,679,164
Accounts receivable, net of allowance
for doubtful accts.
Sept-$ 58,000/March-$100,000 1,577,018 933,535
Inventories 3,291,863 3,627,803
Prepaid expenses and deferred taxes 283,656 379,358
Note receivable 2,500,000
------------------------------
TOTAL CURRENT ASSETS 9,796,243 9,801,195
------------------------------
PROPERTY, PLANT & EQUIPMENT:
Land & land improvements 246,841 246,841
Building 629,212 629,212
Machinery & equipment 2,031,250 2,019,717
------------------------------
2,907,303 2,895,770
Less accumulated depreciation 1,972,900 1,836,630
------------------------------
NET PROPERTY, PLANT & EQUIPMENT 934,403 1,059,140
------------------------------
OTHER ASSETS 1,813 108,173
------------------------------
NOTE RECEIVABLE 500,000 500,000
Less deferred portion (500,000) (500,000)
------------------------------
0 0
------------------------------
TOTAL ASSETS $10,732,459 $10,968,508
------------------------------
------------------------------
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 125,000 $ 108,000
Accounts payable 301,270 355,401
Accrued expenses 217,211 336,784
<PAGE>
Deposits from customers 256,463 121,195
Accrued federal income taxes 273,845 554,000
-----------------------------
TOTAL CURRENT LIABILITIES 1,173,789 1,475,380
-----------------------------
LONG-TERM DEBT, net of current portion 786,164 807,189
-----------------------------
SHAREHOLDERS' EQUITY:
Common stock issued, $.01-2/3 par;
authorized 9,000,000 shares 73,084 72,987
Additional paid-in capital 3,502,092 3,562,523
Retained earnings 6,567,167 6,412,703
----------------------------
10,142,343 10,048,213
Less shares held in treasury at cost:
230,900 shares Sept '97;
212,763 shares Mar '97 1,369,837 1,362,274
----------------------------
TOTAL SHAREHOLDERS' EQUITY 8,772,506 8,685,939
----------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $10,732,459 10,968,508
============================
<FN>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EMCEE BROADCAST PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS AND SIX MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
---------------------------------------------------
SIX (6) MONTHS THREE (3) MONTHS
9/30/97 09/30/96 09/30/97 09/30/96
---------------------------------------------------
<S> <C> <C> <C> <C>
NET SALES $ 4,069,092 $7,621,657 $2,245,852 $3,322,288
COST OF PRODUCTS SOLD 2,752,413 4,673,737 1,428,079 1,939,024
-----------------------------------------------------
GROSS PROFIT 1,316,679 2,947,920 817,773 1,383,264
-----------------------------------------------------
OPERATING EXPENSES:
Selling 773,126 817,668 383,142 379,200
General & administrative 562,135 674,027 279,261 346,374
Research and development 188,509 180,792 77,559 110,970
----------------------------------------------------
TOTAL OPERATING EXPENSE S1,523,770 1,672,487 739,962 836,544
----------------------------------------------------
INCOME(LOSS)FROM OPERATIONS(207,091) 1,2275,433 77,811 546,720
-----------------------------------------------------
OTHER INCOME (EXPENSE),NET:
Interest expense (43,724) (47,622) (21,656) (29,251)
Interest income 123,552 48,033 70,247 19,728
Gain on sale of investment
securities 277,324 106,181 0 0
Other 11,803 5,426 8,771 4,099
----------------------------------------------------
TOTAL OTHER INCOME
(EXPENSE)NET 368,955 112,018 57,362 (5,424)
----------------------------------------------------
Net income before
income taxes 161,864 1,387,451 135,173 541,296
INCOME TAXE 7,400 345,000 1,000 137,000
----------------------------------------------------
NET INCOME $154,464 $1,042,451 $134,173 $404,296
====================================================
COMMON SHARE AND COMMON
SHARE EQUIVALENT
OUTSTANDING 4,167,979 4,270,174 4,170,333 4,432,053
===================================================
EARNINGS PER COMMON AND
COMMON SHARE EQUIVALENT $0.04 $0.24 $0.03 $0.09
===================================================
<PAGE>
<FN> SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION> EMCEE BROADCAST PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
SIX MONTHS ENDED SEPTEMBER 30, 1997
(Unaudited)
====================================================================
ADDITIONAL
COMMON STOCK PAID-IN RETAINED TREASURY STOCK
SHARES AMOUNT CAPITAL EARNINGS SHARES AMOUNT TOTAL
===================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE-
MAR 31,1997:
4,378,364 $72,987 $3,562,523 $6,412,703 212,763 ($1,362,274) $8,685,939
COMMON
STOCK
ISSUED:
5,797 97 (60,431) (12,763) 99,775 39,441
TREASURY
STOCK
PURCHASED: 30,900 (107,338) (107,338)
NET INCOME
FOR THE PERIOD:
154,464 154,464
------------------------------------------------------------------------
BALANCE-
SEPT 30,1997:
4,384,161 $73,084 $3,502,092 $6,567,167 230,900 ($1,369,837) $8,772,506
========================================================================
<FN>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION> EMCEE BROADCAST PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX (6) MONTHS ENDED SEPTEMBER 30, 1997 AND 1996
(Unaudited)
SIX (6) MONTHS
09/30/97 09/30/96
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $154,464 $1,042,451
Adjustments:
Depreciation 137,250 116,344
Provision for doubtful accounts 20,000 26,000
(Increase) decrease in:
Accounts receivable (663,483) (619,716)
Inventory 335,940 (670,182)
Prepaid expenses and deferred taxes 95,702 (43,149)
Note receivable 2,500,000
Other assets 106,360 60,952
Increase (decrease) in:
Accounts payable (54,131) (219,896)
Accrued expenses (119,573) (9,336)
Deposits from customers 135,268 43,988
Accrued income taxes (280,155)
-------------------------------------
NET CASH PROVIDED BY(USED IN)
OPERATING ACTIVITIES 2,367,642 (272,544)
-------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property, plant and
Equipment ( 12,513) (248,397)
Purchase of U. S. Treasury Bills (2,373,909) (599,686)
Proceeds from maturities of U.S.
Treasury Bills 1,800,000 1,183,680
-------------------------------------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES (586,422) 335,597
-------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Long Term Debt:
New borrowings 70,000
Payments (74,025) (121,113)
Stock award issued 39,441
Stock sold under option plans 22,193
Acquisition of company stock (107,338) (1,294,240)
------------------------------------
NET CASH USED IN FINANCING ACTIVITIES (71,922) (1,393,160)
-----------------------------------
NET INCREASE (DECREASE) CASH 1,709,298 (1,330,107)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR 681,335 1,537,759
-----------------------------------
<PAGE>
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $2,390,633 $207,652
======================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the period:
Interest Expens $37,060 $47,289
======================================
Income Taxes $280,000 $391,646
======================================
<FN>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
</FN>
</TABLE>
<PAGE>
EMCEE BROADCAST PRODUCTS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The financial information presented as of any date other than
March 31, has been prepared from the books and records of the
Company without audit. Financial information as of March 31 has
been derived from the audited financial statements of the Company,
but does not include all disclosures required by generally
accepted accounting principles. In the opinion of management, the
accompanying unaudited consolidated condensed financial statements
contain all adjustments, consisting only of normal recurring
adjustments, necessary to present fairly EMCEE Broadcast Products,
Inc. and Subsidiaries' financial position, and the results of their
operations and changes in cash flow for the periods presented.
2. The results of operations for the three month and six month
periods ended September 30, 1997 and 1996 are not necessarily
indicative of the results to be expected for the full year.
3. At September 30, 1997, cash equivalents included $2,245,196
invested in a money market portfolio.
4. INVENTORIES consisted of the following:
Sept. 30,1997 March 31, 1997
===============================
(UNAUDITED)
FINISHED GOODS $353,000 $399,000
WORK-IN-PROCESS $487,000 $738,000
RAW MATERIALS $1,720,000 $1,574,000
MANUFACTURED COMPONENTS $731,863 $916,803
-------------------------------
$3,291,863 $3,627,803
===============================
Inventories are stated at the lower of standard cost,
which approximates current actual cost (on a first-in, first-out
basis) or market (net realizable value).
5. EARNINGS PER SHARE. Primary earnings per common and common
equivalent share and earnings per common and common equivalent
share assuming full dilution are computed using the weighted
average number of shares outstanding adjusted for the incremental
<PAGE>
shares attributed to outstanding options to purchase common stock,
if dilutive. The outstanding stock options for the periods
presented are not dilutive.
6. OTHER ASSETS for March 31, 1997 include the balance of stock
received in exchange for an account receivable. In June 1997
this investment was sold for a net profit of $277,324. The
remainder of other assets of $1,813 are organizational
costs of subsidiaries.
7. During fiscal 1992, a rural cellular license was sold for
$3,100,000. The initial payment was $840,000 net of closing costs
of $155,000 with the balance plus interest at seven (7%) percent
payable December 16, 1996. An agreement between the parties was
executed at the end of March 1997 in which the Company
received a payment in April 1997 of $2,500,000 and a note of
$500,000 to be paid if the license is resold or a material change
occurs in the ownership of the license holder. The remaining
$500,000 receivable is recorded on the balance sheet and
is fully reserved because there is no reasonable basis to evaluate
the likelihood of collection.
8. For the three months and six months ended September 30, 1997,
the federal tax provision is less than the federal statutory
because the Company has reduced its estimated federal tax rate
used for interim reporting to recognize the benefit of its
foreign sales corporation (FSC) subsidiary.
9. On May 28, 1996, the Corporation purchased 200,000 shares of
EMCEE Broadcast Products, Inc. stock from the estate of a former
director. This stock has been recorded as Treasury Stock. In
consideration of this Agreement, the Company has issued a
Non-Negotiable, Non-Transferable Stock Warrant to the
beneficiary of the estate which expires on May 22, 2001, for
200,000 shares of the Company stock at an exercise price of
$9.46875 per share. In August and September, 1997, the
Corporation purchased 30,900 shares of EMCEE stock on the open
market ranging in price (including fees) of $3.065 to $4.061. As
of October 15,1997, an additional 21,000 shares were purchased at
an average price of $2.933 per share.
<PAGE> EMCEE BROADCAST PRODUCTS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF THE FINANCIAL CONDITION
Sales for the quarter ended September 30, 1997 totaled
$2,246,000, an increase of 23% over the previous quarter, but a
decrease of 32% compared to the quarter ended September 30, 1996.
Included in the shipments for the quarter just ended was an amount
of $241,000 for cancellation fees on a contract for transmitters
destined for Saudi Arabia. (See additional discussion included in
this narrative).
Net sales for the first six months of the fiscal year ending March
31, 1998 totaled $4,069,000, a decrease of $3,553,000 or 47% for
the same period one year ago. Foreign sales, including the
aforementioned cancellation fee, totaled $1,603,000 (71% of total
sales) for the quarter and $2,341,000 (58% of total sales) for the
six months ended September 30, 1997. Although the sales for the
quarter reverses the downward trend initiated in the third quarter
of fiscal year 1997, the Registrant believes that sales volume
will not increase significantly until the second quarter of
calendar year 1998. At that time, the technical aspects of
digital compression will be proven and will increase the domestic
order demand. In addition, high speed Internet applications of
the Company's transmitters are expected to create an additional
market segment. In the meanwhile, it is expected that foreign
sales of analog transmitters for the Multichannel Multipoint
Distribution Service (MMDS) will dominate the sales volume.
Gross profit totaled $818,000 (36% of net sales) for the quarter
and increased gross profit for the six months ended September 30,
1997 to $1,317,000 (32% of net sales) compared to gross profit of
$1,383,000 (42% of net sales) and $2,948,000 (39% of net sales)
for the quarter and six months ended September 30, 1996,
respectively. In addition to the gross profit reduction for the
current fiscal periods due to the net sales volume decrease, the
percent of EMCEE manufactured product which carries higher
margins than original equipment manufactured by others (O.E.M.)
decreased from 80% for fiscal 1997 to 76%for fiscal 1998.
Total operating expenses for the quarter ended September 30, 1997
totaled $740,000, a reduction of $97,000 from the quarter ended
September 30, 1996, and increased total operating expenses to
$1,524,000 for the first six months of fiscal year 1998 compared
to$1,672,000 from the same period of fiscal year 1997. Selling
expenses, which were slightly higher for the three months ended
September 30, 1997 decreased to $773,000 for the six months ended
September 30, 1997 compared to $818,000 for the same period one
year ago. Reductions occurred in salaries, salary related
expenses and commissions while increases occurred in show and
convention expense and advertising expense, the latter including
approximately $14,000 in costs for a new brochure.
<PAGE>
General and administrative expense was $562,000 for the first half
of fiscal 1998, a reduction of 17% from the first half of fiscal
1997. Reduced expenses occurred primarily in salary related
expense and legal costs, while Board of Directors expenses
increased due to an additional meeting in the current fiscal
period.
An exception to expense reduction occurred in research and
development expense for the six months ended September 30, 1997
which, at $189,000 was $8,000 (4%) ver the amount for the six
months ended September 30, 1996. Included in last years expense
was a credit of $61,000 received from a customer for
non-recurring engineering charges. The Company is expanding its
research and development in order to maintain technical
superiority in digital compression and Internet communications and
to explore applications for High Definition Television for the
changeover expected in the next 3 to 10 years promulgated by the
Federal Communications Commission.
Income from operations amounted to $78,000 for the quarter ended
September 30, 1997 and reduced the loss from operations for the
six months ended September 30, 1997 to $207,000 compared to
income from operations of $1,275,000 for the like period ended
September 30, 1996.
Aided by interest income for the six months ended September 30,
1997 of $124,000, which offset interest expense of $44,000, and a
gain on the sale of an investment in a wireless cable operator in
June 1997 of $277,000, the Company netted other income (net) of
$369,000 for the first half of fiscal 1998 compared to other
income (net) of $112,000 for the first half of fiscal 1997. This
amount reversed the loss from operations to a net income before
income taxes of $162,000 for the six months ended September 30,
1997 compared to an amount of $1,387,000 for the first six months
ended September 30, 1996. The amount of income before taxes for
the second quarter ended September 30, 1997 was $135,000 compared
to $541,000 for the like period one year ago. Federal income tax
expense for the three months and six months ended September 30,
1997 were $1,000 and $7,400, respectively.
Federal tax liability for all periods under discussion are less
than the "expected percent" due to additional tax credits
including amounts from a Foreign Sales Corporation (FSC) formed in
April 1995. There are no state tax liabilities for these periods
since all profitable companies in this consolidated group are
domiciled in states which do not impose income taxes.
Net income for the quarter ended September 30, 1997 was $134,000
equal to 3 cents per share of common and common share equivalent
outstanding and increased net income for the six months ended
September 30, 1997 to $154,000 equal to 4 cents per share of
<PAGE>
common and common share equivalent outstanding. The comparative
amounts for the same periods one year ago are net income of
$404,000 for the quarter and $1,042,000 for the six months or 9
cents and 24 cents per share, respectively.
In April 1997 the Registrant collected $2,500,000 for a note
receivable and interest. This amount coupled with cash on hand
was invested in cash and cash equivalents (primarily money
market funds) of $2,391,000 and U.S. Treasury Bills of $2,253,000
as of September 30, 1997 compared to a total of these categories
of $2,360,000 as of March 31, 1997.
Accounts receivable net of allowance for doubtful accounts totaled
$1,577,000 as of September 30, 1997, an increase of $643,000
compared to March 31, 1997 due to the upturn in shipments in the
second quarter of the present fiscal year.
The allowance for doubtful accounts was reduced by $42,000 from
the balance of March 31, 1997 as a customer note receivable that
was fully reserved was partially written off. The Registrant
believes that the remaining reserve is adequate for the receivable
balances as of September 30, 1997. Deposits from customers
increased from $121,000 as of March 31, 1997 to $256,000 as of
September 30, 1997 further indicating a strengthening of the
industry demand, especially foreign.
Inventories totaled $3,292,000 as of September 30, 1997 which was
a decrease of $336,000 as the Company continues to reduce
inventories to a balance consistent with sales volume.
Prepaid expenses and deferred taxes totaled $284,000 at September
30,1997 compared to $379,000 at March 31, 1997; the reduction due
primarily to a tax refund received in July 1997.
Conversely, accrued federal income taxes decreased $280,000 during
the same period as a result due primarily to a September 1997
estimated tax payment.
The current portion of long term debt increased $17,000 to
$125,000 at September 30, 1997 from March 31, 1997 due to an
additional borrowing of $70,000 in April 1997 and maturity changes
for the six month period. The long term portion decreased $21,000
for this same period due to the same additional borrowings,
maturity changes and payments.
The accounts payable total of $301,000 as of September 30, 1997
did not have a significant difference to the amount of $355,000 as
of March 31, 1997.
<PAGE>
Accrued expenses decreased $120,000 from March 31, 1997 to
$217,000 as of September 30, 1997 as a result of timing
differences primarily in payroll and payroll related expenses.
The Registrant believes that its existing working capital coupled
with cash flows from operations will be sufficient to fund
anticipated working capital and debt payment requirements for
fiscal 1998.
Other assets of $108,000 as of March 31, 1997 included the
investment that was sold in the first quarter of fiscal 1998. The
remaining amount of $2,000 as of September 30, 1997 consists of
unamortized organizational costs of subsidiaries.
Common stock increased $100, additional paid-in capital stock
decreased $60,000 and Treasury Stock decreased $100,000 as the
Company issued 18,560 shares (primarily from stock held as
Treasury Stock) to an employee.
The Registrant, through a subsidiary, purchased 30,900 shares of
Company stock during the second quarter ended September 30,
1997. (See Item 9 of Notes to Consolidated Financial
Statements.)
With the cancellation of the order for Saudi Arabia, the Company
Decreased the March 31, 1997 backlog of $2,853,000 by $2,200,000.
New orders for the six month period ended September 30, 1997 of
$4,069,000 resulted in a backlog of unshipped orders of
$1,846,000 at September 30, 1997.
Although the contract mentioned above has been canceled, the
project is continuing albeit as a digital system instead of an
analog system as previously planned. As this greatly reduces
the number of transmitters needed, the additional business for
the Company is expected for the quarter ending December 31, 1997
to be approximately $500,000 including non-Emcee equipment
(O.E.M.).
However, the Company believes this system, being the largest
digital compression system in the world will enhance the
reputation of the companies involved and lead to an increase
in future business.
The Company had 59 employees, including 2 part-time employees as
of September 30, 1997 compared to a total of 60 as of June 30,
1997 and 92 (including 10 part-time) as of September 30, 1996.
The Company anticipates a modest increase in employees in the
next quarter.
<PAGE>
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
Any statements contained in this report which are not
historical facts are forward looking statements; and, therefore,
many important factors could cause actual results to differ
materially from those in the forward looking statements. Such
factors include, but are not limited to, changes (legislative,
regulatory and otherwise) in the MMDS or LPTV industry, demand for
the Company's products (both domestically and internationally),
the development of competitive products, competitive pricing,
the timing of foreign shipments (including, but not limited to,
the resumption and/or further modification of the subcontract
for Saudi Arabia mentioned above), market acceptance of new
product introductions (including, but not limited to, the
Company's digital products), technological changes, economic
conditions, litigation and other factors, risks and
uncertainties identified in the Company's Securities and Exchange
Commission filings.
PART II. OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS
In prior years an individual who was an officer, director
and shareholder and the Company were named as defendants in
various lawsuits instituted by certain shareholders based on
incidents alleged to have occurred in the early-to-mid 1980's.
Of these lawsuits, all were either settled or were dismissed with
prejudice and the appeal periods have expired. On July 7, 1995,
one of the prior litigants initiated another claim against the
Company and another individual who is a shareholder seeking actual
damages of $700,000. In September 1995, the presiding judge in
the Circuit Court of Cook County, Illinois ruled in favor of the
Company to dismiss plaintiff's complaint with prejudice. It is
unknown at this time whether an appeal will be taken.
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 thereto duly authorized.
EMCEE BROADCAST PRODUCTS, INC.
Date: November 3, 1997 /s/ JAMES L. DeSTEFANO
------------------------------
JAMES L. DeSTEFANO
President/CEO
Date: November 3, 1997 /s/ ALLAN J. HARDING
------------------------------
ALLAN J. HARDING
Vice President-Finance
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000032312
<NAME> EMCEE BROADCAST PRODUCTS, INC.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 2,390,633
<SECURITIES> 2,253,073
<RECEIVABLES> 1,635,018
<ALLOWANCES> 58,000
<INVENTORY> 3,291,863
<CURRENT-ASSETS> 9,796,243
<PP&E> 2,907,303
<DEPRECIATION> 1,972,900
<TOTAL-ASSETS> 10,732,459
<CURRENT-LIABILITIES> 1,173,789
<BONDS> 0
<COMMON> 73,084
0
0
<OTHER-SE> 8,698,702
<TOTAL-LIABILITY-AND-EQUITY> 10,732,459
<SALES> 4,069,092
<TOTAL-REVENUES> 4,069,092
<CGS> 2,752,413
<TOTAL-COSTS> 4,276,183
<OTHER-EXPENSES> (368,955)
<LOSS-PROVISION> 20,000
<INTEREST-EXPENSE> 43,724
<INCOME-PRETAX> 161,864
<INCOME-TAX> 7,400
<INCOME-CONTINUING> 154,464
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 154,464
<EPS-PRIMARY> .04
<EPS-DILUTED> .04
</TABLE>
