SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C.
FORM 10-Q (AMENDED 6 JANUARY 1997)
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED: SEPTEMBER 30, 1996 COMMISSION FILE NO. 0-4076
EXOTECH INCORPORATED
(Exact name of Registrant as Specified in Charter)
State or Jurisdiction of
Incorporation or Organization: DELAWARE
IRS Identification No: 54-0700888
Address of Principal Office: 8502 Dakota Drive
Gaithersburg, MD. 20877
Registrant's Telephone Number: (301) 948-3060
Indicate by checkmark 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
requirement 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 close of the period covered by this Report.
CLASS: COMMON STOCK, PAR VALUE $0.10
-----------------------------
OUTSTANDING AT
SEPTEMBER 30, 1996 942,387
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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF THE
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
The following is Management's discussion and analysis of certain significant
factors which have affected the Company's earnings during the periods included
in the accompanying consolidated condensed statement of operations.
A summary of the period to period changes in the principal items included in the
consolidated statement of operations is shown below:
<TABLE>
<CAPTION>
------------------------------------ COMPARISON OF ----------------------------------
THREE MONTHS ENDED THREE MONTHS ENDED
Sept 30 June 30 Sept 30 Sept 30
1996 1996 1996 1995
------- ---------- ------- ----
<S> <C>
Net Sales $110,796 $106,244 $110,796 $ 55,517
Cost of Sales 1,440 5,164 1,440 6,628
General & Administrative
Expenses 144 295 144 853
Inventory Costs 98,712 103,170 98,712 45,050
Interest & Other 7,130 7,036 7,130 6,601
</TABLE>
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PART II. OTHER FINANCIAL INFORMATION
ITEM 5.
As in the past, a shortage of working capital continues to be a significant
problem, resulting in occasional slow payments to creditors, and hampering the
development of new business to the fullest extent possible. In the opinion of
Management, the Company should be in a position to sustain operations at least
until such time as the results of current contracts and negotiations for new
business is determinable. Ultimate realization of the carrying value of prepaid
expenses and advances, property and equipment, and miscellaneous other assets
shown in the accompanying balance sheet depends upon sustained operations as a
going concern.
The dollar amount of the backlog as of September 30, 1996 was $237,952, a
decrease of $41,048 from the backlog of the preceding quarter ended June 30,
1996.
ITEM 6 (B)
No reports on Form 8-K were filed in this quarter.
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I. CHANGE IN FINANCIAL POSITION IN THE THREE MONTHS ENDED SEPTEMBER 30, 1996.
In the three months period ended September 30, 1996, an increase of working
capital of $3,645 resulted from a net profit from operations of $3,370 and
non-fund charges of $275. A loan of $20,000 was obtained from Spiral
Biotech, Inc.. It is secured by the work-in-progress inventory of Laser
Scanner instruments being under a purchase order from the lender for a
total of $87,000. The pay down of the loan is scheduled out of the
receipts for the instruments as they are delivered. The order covers
ten instruments, the last of which is to be delivered in January 1997.
The loan will be repaid in full at the delivery of the ninth unit.
II. INCOME AND EXPENSE IN THE MOST RECENT QUARTER AND THE SAME THREE MONTH
PERIOD LAST YEAR.
Revenue for the quarter ended September 30, 1996, was higher by $55,279 or
96% than the results one year earlier. Operating costs were increased in
the most recent quarter by $47,765 or 91% compared to the prior year.
The result was an operating profit of $10,500 and a net gain of $3,370
compared to a net loss of $3,615 in the quarter ended one year earlier.
The improvement of operating income, in the opinion of Management,
is a continuation of the modest upturn achieved in the fourth quarter of
fiscal year 1996.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the Company has duly
caused this amended Report to be signed on its behalf by the undersigned
thereunto duly authorized.
EXOTECH INCORPORATED
REGISTRANT
DATE: January 7, 1997
____________________________
/s/ Robert G. Lyle
_____________________________________
ROBERT G. LYLE, PRESIDENT AND CHIEF
EXECUTIVE OFFICER
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