<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter ended September 30, 1996 Commission file number 1-7404
ALDEN ELECTRONICS, INC.
(Exact name of registrant as specified in its charter)
Massachusetts 04-2156392
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
40 WASHINGTON STREET, WESTBOROUGH, MASSACHUSETTS 01581
(Address of principal executive offices)
Registrant's telephone number, including area code 508/366-8851
N/A
___________________________________________________________
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, and (2) has been subject to such
filing requirements for the past 90 days.
Yes ___X____ No ______
Number of shares outstanding of each of the issuer's classes of common stock
as of the close of the period covered by this report.
Class A Common Stock -- 2,010,385 shares
Class B Common Stock -- 25,000 shares
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<TABLE>
PART I -- FINANCIAL INFORMATION
ITEM 1 -- FINANCIAL STATEMENTS
ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<CAPTION>
September 30 March 31
1996 1996
--------------- ----------------
(unaudited) (note)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 20,188 $ 209,438
Trade accounts receivable,
less allowance of $113,000 2,012,539 2,087,215
Inventories:
Finished Goods 295,726 435,153
Work in Process 365,450 1,080,012
Parts & Materials 158,998 207,606
--------------- ---------------
820,174 1,722,771
Prepaid Expenses 153,510 132,941
Deferred Income Tax Asset 20,000 20,000
---------------- ---------------
TOTAL CURRENT ASSETS 3,026,411 4,172,365
PROPERTY, PLANT AND
EQUIPMENT
Land & Buildings 2,819,733 3,731,776
Equipment on Lease 284,217 282,176
Other Machinery and Equipment 7,420,335 7,748,327
---------------- ----------------
10,524,285 11,762,279
Less Allowance for depreciation 8,127,671 8,600,223
--------------- ----------------
2,396,614 3,162,056
Other assets 20,000 29,921
---------------- ----------------
$ 5,443,025 $ 7,364,342
================ ================
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PART I -- FINANCIAL INFORMATION
ITEM 1 -- FINANCIAL STATEMENTS
ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30 March 31
1996 1996
---------------- ---------------
(unaudited) (note)
LIABILITIES AND
STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 295,557 $ 400,000
Accounts payable 1,003,920 1,480,823
Accrued expenses 731,834 714,433
Accrued warranty expenses 278,323 348,323
Deferred revenue 76,334 109,736
Other current liabilities 321,331 327,697
Current Portion - Long term debt 330,155
---------------- ---------------
TOTAL CURRENT LIABILITIES 2,707,299 3,711,167
DEFERRED INCOME TAXES 25,000 25,000
STOCKHOLDER'S EQUITY
Class A Common Stock, par value
$1 per share-- authorized 2,500,000
shares, issued 2,010,385 2,010,385 2,010,385
Class B Common Stock, without par
value-- authorized
and issued 25,000 shares 75 75
Additional paid-in capital 1,611,418 1,611,418
Retained earnings (839,054) 83,176
Currency translation adjustment (72,098) ( 76,879)
---------------- ---------------
2,710,726 3,628,175
---------------- ---------------
$ 5,443,025 $ 7,364,342
================ ===============
<FN>
Note: The balance sheet at March 31, 1996 was derived from the audited
financial statements at that date.
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<TABLE>
ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
<CAPTION>
Six months ended Quarter Ended
September 30 September 30
---------------- ----------------
1996 1995 1996 1995
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
REVENUES
Net sales and
service revenues $ 4,303,097 $ 6,915,619 $ 2,034,673 $ 3,267,520
Income from leased
equipment 353,009 369,610 174,025 185,421
Interest income 3,036 3,241 1,491 1,042
------------ ------------ ------------ ------------
4,659,142 7,288,470 2,210,189 3,453,983
COSTS AND EXPENSES
Cost of products
sold and expenses
of leasing
equipment 3,663,818 5,414,299 1,849,550 2,734,739
Selling,
administrative
and general 1,819,921 2,162,813 683,351 1,045,044
Interest expense 54,030 76,812 30,652 39,884
Loss on sale of
assets 31,186 15,238
------------ ------------ ------------ ------------
5,568,955 7,653,924 2,578,791 3,819,667
------------ ------------ ------------ ------------
EARNINGS (LOSS) BEFORE
INCOME TAXES ( 909,813) ( 365,454) ( 368,602) ( 365,684)
INCOME TAXES (BENEFIT) 12,415 25,871 ( 4,841) 18,378
------------ ------------ ------------ ------------
NET EARNINGS (LOSS) $ ( 922,228) $ ( 391,325) $ ( 363,761) $ ( 384,062)
============ ============ ============ ============
Net Earnings (loss)
per share $ ( 0.42) $ ( 0.18) $ ( 0.17) $ ( 0.18)
============ ============ ============ ============
<FN>
Note: No dividends were declared during the periods presented.
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<TABLE>
ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<CAPTION>
Six Months Ended
September 30
----------------
1996 1995
---------------- ---------------
<S> <C> <C>
OPERATING ACTIVITIES
Net (loss) $ ( 922,228) $ ( 391,325)
Adjustments to reconcile net
earnings to net cash provided by
operating activities;
Depreciation & amortization 298,858 523,237
Provision for doubtful accounts 6,000
Loss on disposal of assets 31,186
Decrease/(increase) in operating assets
and (decrease)/increase in
liabilities:
Accounts receivable 43,815 ( 140,410)
Refundable income taxes 98,000
Inventories 178,518 632,790
Other current assets ( 20,417) ( 22,504)
Accounts payable, accrued
expenses and other
current liabilities ( 128,902) ( 253,066)
Deferred revenue ( 33,402) 20,380
Foreign currency translation ( 8,300)
-------------- ---------------
NET CASH PROVIDED BY
(USED IN) OPERATING
ACTIVITIES ( 552,572) 464,802
INVESTING ACTIVITIES
Proceeds from sales of assets 944,677
Purchases of property, plant
and equipment ( 149,286) ( 342,880)
--------------- ---------------
NET CASH USED FOR
INVESTING ACTIVITIES 795,391 ( 342,880)
FINANCING ACTIVITIES
Principal payments on
long term debt and
Notes payable ( 434,598) ( 248,336)
Sale of treasury stock 2,086
--------------- ---------------
NET CASH USED FOR
FINANCING ACTIVITIES ( 434,598) ( 246,250)
--------------- ---------------
Effect of exchange rate changes
on cash equivalents 2,529 7,763
--------------- ---------------
INCREASE (DECREASE) IN
CASH AND CASH
EQUIVALENTS ( 189,250) ( 116,565)
Cash and cash equivalents at
beginning of period 209,438 143,238
--------------- ---------------
CASH AND CASH
EQUIVALENTS AT
END OF PERIOD $ 20,188 $ 26,673
=============== ===============
</TABLE>
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ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1996
NOTE A -- BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with the instructions to Form 10-Q and do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. The results
of operations for the period ended September 30, 1996 are not necessarily
indicative of results to be expected for the full fiscal year. For further
information, refer to the consolidated financial statements and footnotes
included in the Company's annual report on Form 10-K for the year ended March
31, 1996.
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ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
EXHIBIT - COMPUTATION OF EARNINGS PER SHARE
<CAPTION>
Six Months Ended Quarter Ended
September 30 September 30
---------------- ----------------
1996 1995 1996 1995
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
Average number of
shares of Class A
Common Stock 2,010,385 2,010,385 2,010,385 2,010,385
Effect of conversion
of Class
B Common Stock 175,000 175,000 175,000 175,000
------------ ------------ ------------ ------------
Total 2,185,385 2,185,385 2,185,385 2.185,385
============ ============ ============ ============
Net earnings (loss) $( 922,228) $( 391,325) $( 363,761) $( 384,062)
============ ============ ============ ============
Net earnings per share $ (0.42) $ (0.18) $ (0.17) $ (0.18)
============ ============ ============ ============
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ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
ITEM 2 -- MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Revenues for the quarter ended September 30, 1996 were $2,210,189 compared to
$3,453,983 for the same period in the prior year. The overall decrease in
revenues is attributable to the effects of discountinuing certain marine
electronics products during the quarter ended June 30, 1996 ($618,000 less in
the quarter ended September 30, 1996 when compared to the same period in the
prior year), reduced shipments of weather display terminals ($584,000 less
in the quarter) and reduced sales of paper ($130,000 less in the quarter).
These reductions were partially offset by increased revenues from the sales
of the Company's 9315CTP and 9315TRT printers, which experienced a $137,000
increase in sales over the same period in the prior year.
Gross profit, as a percent of sales, was 16.3% for the quarter ended
September 30, 1996 compared to 20.8% for the same period in the prior year. The
1995 margin was adversely effected by the sale of certain marine electronics
products at reduced margin as part of the discontinuation of these products.
Selling, administrative and general expenses were approximately $360,000
less for the quarter when compared to the same period in the prior year due
to the elimination of selling, marketing and advertising expenses relating
to marine electronics and the continuation of cost containment measures.
Revenues for the six months ended September 30, 1996 were $4,659,142 compared
to $7,288,470 for the same period in the prior year. The overall decrease in
revenues is attributable to the effects of discountinuing certain marine
electronics products during the quarter ended June 30, 1996 ($1,380,000 less
in the six months ended September 30, 1996 when compared to the same period
in the prior year), reduced shipments of weather display terminals
($1,150,000 less for the period) and reduced sales of paper ($250,000 less
for the period). These reductions were partially offset by increased revenues
from the sales of the Company's 9315CTP and 9315TRT printers, which
experienced a $297,000 increase in sales over the same period in the prior
year.
Gross profit, as a percent of sales, was 21.4% for the six months compared to
25.7% for the same period in the prior year. The 1996 margin was adversely
effected by the sale of certain marine electronics products at reduced margin
as part of the discontinuation of these products.
Selling, administrative and general expenses were approximately $343,000
less for the six months ended September 30, 1996 when compared to the same
period in the prior year due to the elimination of selling, marketing and
advertising expenses relating to marine electronics and the continuation
of cost containment measures.
Cash and cash equivalents decreased by $189,000 for the six months ended
September 30, 1996. This decrease was primarily due to operating losses for the
period and the repayment of debt. These activities were substantially funded
through the sale of assets.
The Company continues to implement cost containment measures with the
objective of maintaining revenues and reducing costs. Concurrently the
Company is reviewing strategic alternatives with respect to all of its
product lines and assets. The alternatives under consideration include
divestiture of some or all of its product lines and liquidation of some
or all of its assets.
As previously announced, the Company sold a portion of it's real estate
holdings in Westborough, Massachusetts for $400,000. The property sold
consisted of a facility with approximately 20,000 square feet of manufacturing
and office space and approximately 8 acres of land. The Company continues
to market it's remaining real estate holdings which consists of approximately
60,000 square feet of manufacturing and office space and approximately
18 acres of land.
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ALDEN ELECTRONICS, INC. AND SUBSIDIARIES
PART II -- OTHER INFORMATION
ITEMS 1- 3-- INCLUSIVE
Not Applicable
ITEM 4 -- SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5 -- OTHER INFORMATION
Not applicable
ITEM 6 -- EXHIBITS AND REPORTS ON FORM 8-K
Exhibit 27. Financial Data Schedule.
The Company did not file any reports on Form 8-K during the quarter ended
September 30, 1996.
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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.
ALDEN ELECTRONICS, INC.
Date: November 14, 1996
By:/s/ Robert J. Wentworth
______________________
Robert J. Wentworth
President and
Chief Financial Officer
(Principal Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 20
<SECURITIES> 0
<RECEIVABLES> 2012
<ALLOWANCES> 113
<INVENTORY> 820
<CURRENT-ASSETS> 3026
<PP&E> 10524
<DEPRECIATION> 8128
<TOTAL-ASSETS> 5443
<CURRENT-LIABILITIES> 2707
<BONDS> 0
<COMMON> 2010
0
0
<OTHER-SE> 700
<TOTAL-LIABILITY-AND-EQUITY> 5443
<SALES> 4653
<TOTAL-REVENUES> 4659
<CGS> 3664
<TOTAL-COSTS> 5569
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 54
<INCOME-PRETAX> 0
<INCOME-TAX> 12
<INCOME-CONTINUING> (922)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (922)
<EPS-PRIMARY> (0.42)
<EPS-DILUTED> (0.42)
</TABLE>
