United States
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
[ X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the thirteen-week period ended: September 25, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________________ to __________________________
Commission file number: 0-10726
C-COR ELECTRONICS, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania 24-0811591
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
60 Decibel Road, State College, PA 16801
(Address of principal executive offices) (Zip Code)
(814) 238-2461
(Registrant's telephone number, including area code)
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
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $.10 Par Value - 9,102,644 shares as of October 30, 1998.
<PAGE>
INDEX
C-COR ELECTRONICS, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited).
Condensed consolidated balance sheets -- June 26, 1998, and
September 25, 1998.
Condensed consolidated statements of operations -- thirteen weeks
ended September 25, 1998, and September 26, 1997.
Condensed consolidated statements of cash flows -- thirteen weeks
ended September 25, 1998, and September 26, 1997.
Notes to condensed consolidated financial statements -- September
25, 1998.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
<PAGE>
<TABLE>
Item 1. Financial Statements
<CAPTION>
C-COR ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 25, June 26,
ASSETS 1998 1998
----------- ----------
(Unaudited) (Note)
(000's omitted)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 596 $ 2,313
Marketable securities 356 356
Accounts receivable 16,935 19,404
----------- ----------
17,887 22,073
----------- ----------
Inventories:
Raw materials 13,621 12,770
Work-in-process 2,701 1,755
Finished goods 1,536 2,850
----------- ----------
Total inventories 17,858 17,375
----------- ----------
Deferred taxes 2,623 2,797
Property held for sale, net 1,281 0
Other current assets 2,394 2,468
----------- ----------
TOTAL CURRENT ASSETS 42,043 44,713
----------- ----------
PROPERTY, PLANT, AND EQUIPMENT, NET 25,418 27,751
INTANGIBLE ASSETS AND OTHER LONG-TERM ASSETS, NET 3,397 3,054
----------- ----------
TOTAL ASSETS $ 70,858 $ 75,518
=========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 14,719 $ 16,029
Line-of-credit 0 0
Current portion of long-term debt 156 854
Net current liabilities of discontinued operations 20 517
----------- ----------
TOTAL CURRENT LIABILITIES 14,895 17,400
----------- ----------
LONG-TERM DEBT, less current portion 1,752 5,513
DEFERRED TAXES 1,298 1,374
OTHER LONG-TERM LIABILITIES 1,166 1,041
----------- ----------
TOTAL LIABILITIES 19,111 25,328
----------- ----------
SHAREHOLDERS' EQUITY
Common Stock, $.10 par; authorized shares
24,000,000; issued shares of 9,695,560 on 09/25/98,
and 9,672,128 on 06/26/98. 970 967
Additional paid-in capital 20,566 20,341
Retained earnings 36,546 34,877
Accumulated other comprehensive loss (75) (99)
Treasury stock (6,260) (5,896)
----------- ----------
TOTAL SHAREHOLDERS' EQUITY 51,747 50,190
----------- ----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 70,858 $ 75,518
=========== ==========
<FN>
Note: The balance sheet at June 26, 1998, has been derived from audited
financial statements at that date.
See notes to condensed consolidated financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
C-COR ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<CAPTION>
Thirteen Weeks Ended
September 25, September 26,
1998 1997
----------- -----------
(000's omitted, except per share data)
<S> <C> <C>
NET SALES $ 33,216 $ 37,065
----------- -----------
COSTS AND EXPENSES:
Cost of sales 25,625 28,473
Selling, general and administrative
expenses 3,428 3,555
Research and product development costs 2,062 1,773
Interest expense 32 77
Investment income (40) (6)
Foreign exchange loss (gain) 55 (21)
Other (income) expense (33) 322
----------- -----------
31,129 34,173
----------- -----------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 2,087 2,892
INCOME TAX EXPENSE 706 1,011
----------- -----------
INCOME FROM CONTINUING OPERATIONS 1,381 1,881
DISCONTINUED OPERATIONS:
Gain on disposal of discontinued
business segment, less applicable
income tax expense 288 0
----------- -----------
NET INCOME $ 1,669 $ 1,881
=========== ===========
NET INCOME PER SHARE - (BASIC):
Continuing operations $ 0.15 $ 0.21
Discontinued operations 0.03 0.00
----------- -----------
NET INCOME PER SHARE $ 0.18 $ 0.21
=========== ===========
NET INCOME PER SHARE - (DILUTED):
Continuing operations $ 0.15 $ 0.20
Discontinued operations 0.03 0.00
----------- -----------
NET INCOME PER SHARE $ 0.18 $ 0.20
=========== ===========
<FN>
See notes to condensed consolidated financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
C-COR ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Thirteen Weeks Ended
September 25, September 26,
1998 1997
----------- -----------
(000's omitted)
<S> <C> <C>
OPERATING ACTIVITIES
Net Income $ 1,669 $ 1,881
Adjustments to reconcile net income to net cash and cash equivalents provided
by operating activities:
Depreciation and amortization 1,912 1,623
(Gain) on disposal of discontinued operations,
net of tax benefit (288) 0
Provision for deferred retirement salary plan 125 87
Changes in operating assets and liabilities:
Accounts receivable 2,469 (1,059)
Inventories (483) (232)
Other assets (269) 146
Accounts payable 1,063 1,001
Accrued liabilities (2,373) 2,370
Deferred income taxes 98 (166)
Discontinued operations - working capital changes
and noncash charges (209) (545)
NET CASH AND CASH EQUIVALENTS PROVIDED BY ----------- -----------
OPERATING ACTIVITIES 3,714 5,106
----------- -----------
INVESTING ACTIVITIES
Purchase of property, plant and equipment (836) (1,505)
Investing activities of discontinued operations 0 22
NET CASH AND CASH EQUIVALENTS ----------- -----------
USED IN INVESTING ACTIVITIES (836) (1,483)
----------- -----------
FINANCING ACTIVITIES
Payment of debt and capital lease obligations (4,459) (207)
Proceeds from line-of-credit 670 12,792
Payment of line-of-credit (670) (16,258)
Issue common stock to employee stock purchase plan 15 12
Proceeds from exercise of stock options 213 57
Purchase of treasury stock (364) 0
NET CASH AND CASH EQUIVALENTS USED IN ----------- -----------
FINANCING ACTIVITIES (4,595) (3,604)
----------- -----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,717) 19
Cash and cash equivalents at beginning of period 2,313 452
----------- -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 596 $ 471
=========== ===========
<FN>
See notes to condensed consolidated financial statements.
</FN>
</TABLE>
<PAGE>
C-COR ELECTRONICS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying, unaudited, condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information, and in the opinion of management, contain all
adjustments (consisting only of normal, recurring adjustments) necessary to
fairly present the Company's financial position as of September 25, 1998, and
the results of its operations for the thirteen-week period then ended. Operating
results for the thirteen-week period are not necessarily indicative of the
results that may be expected for the year ending June 25, 1999. For further
information, refer to financial statements and footnotes thereto included in the
Company's annual report on Form 10-K for the year ended June 26, 1998.
2. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
<TABLE>
Accounts payable and accrued liabilities consist of:
<CAPTION>
September 25, June 26,
1998 1998
---------------- ----------------
(000's omitted)
<S> <C> <C>
Accounts payable $ 6,847 $ 5,784
Accrued incentive plan expense 253 1,716
Accrued vacation expense 1,394 1,435
Accrued salary expense 1,205 719
Accrued salary and sales tax expense 449 903
Accrued warranty expense 1,879 1,716
Accrued workers compensation
self-insurance expense 1,404 1,319
Accrued restructuring costs 87 625
Accrued other 1,201 1,812
---------------- ----------------
$14,719 $16,029
================ ================
</TABLE>
3. COMPREHENSIVE INCOME:
During the quarter ended September 25, 1998, the Company adopted the provisions
of Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive
Income" (Statement 130), which is required for fiscal years beginning after
December 15, 1997. Statement 130 establishes standards for reporting
comprehensive income and its components in a full set of general-purpose
financial statements. The components of accumulated other comprehensive income
(loss), net of tax, of the Company are as follows: <TABLE> <CAPTION>
September 25, June 26,
1998 1998
----------- ----------
(000's omitted)
<S> <C> <C>
Foreign currency translation adjustments $ (68) $ (92)
Unrealized gain on equity securities (7) (7)
---------- ----------
Accumulated other comprehensive income (loss) $ (75) $ (99)
========== ==========
</TABLE>
The components of comprehensive income of the Company for the thirteen-week
periods ended September 25, 1998, and September 26, 1997, are as follows:
<TABLE>
<CAPTION>
Thirteen Weeks Ended
September 25, September 26,
1998 1997
-------- --------
(000's omitted)
<S> <C> <C>
Net income $ 1,669 $ 1,881
Other comprehensive income, net of tax:
Foreign currency translation adjustments 16 11
Unrealized gains on equity securities - 2
-------- --------
Other comprehensive income 16 13
(net of taxes of $8 and $6)
-------- --------
Comprehensive income $ 1,685 $ 1,894
======== ========
</TABLE>
4. NET INCOME PER SHARE:
Statement of Financial Accounting Standards No. 128, "Earnings Per Share"
(Statement 128), became effective for financial statements issued for periods
ending after December 15, 1997. The Company adopted this Statement in the second
quarter of fiscal year 1998 and has restated prior periods presented as
required.
Basic earnings (loss) per share are computed based on the weighted average
number of common shares outstanding, excluding any dilutive options and awards.
Dilutive earnings (loss) per share are computed based on the weighted average
number of common shares outstanding plus the dilutive effect of options. The
dilutive effect of options is calculated under the treasury stock method using
the average market price for the period. Net income per share is calculated for
the periods presented as follows: <TABLE> <CAPTION>
Thirteen Weeks Ended
September 25, September 26,
1998 1997
------------ ------------
(000's omitted, except per share data)
<S> <C> <C>
Basic:
Weighted average shares outstanding 9,165 9,139
------------ ------------
Total 9,165 9,139
Income from continuing operations $ 1,381 $ 1,881
Gain from discontinued
operations 288 0
------------ ------------
Net income $ 1,669 $ 1,881
------------ ------------
Net income per share
Continuing operations $ 0.15 $ 0.21
Discontinued operations 0.03 0.00
------------ ------------
Net income per share $ 0.18 $ 0.21
============ ============
Diluted:
Weighted average shares outstanding 9,165 9,139
Weighted average common stock
equivalents 230 120
------------ ------------
Total 9,395 9,259
Income from continuing operations $ 1,381 $ 1,881
Gain from discontinued
operations 288 0
------------ ------------
Net income $ 1,669 $ 1,881
------------ ------------
Net income per share
Continuing operations $ 0.15 $ 0.20
Discontinued operations 0.03 0.00
------------ ------------
Net income per share $ 0.18 $ 0.20
============ ============
</TABLE>
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Conditions and
Results of Operations
The following discussion addresses the financial condition of the Company as of
September 25, 1998, and the results of operations for the thirteen-week period
ended September 25, 1998, compared with the same period of the prior year. This
discussion should be read in conjunction with the Management's Discussion and
Analysis section for the fiscal year ended June 26, 1998, included in the
Company's Annual Report on Form 10-K.
Disclosure Regarding Forward-Looking Statement:
Some of the information presented in this report constitutes forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995, including without limitation, continuation of increased domestic spending
for network upgrades, the continuation of competitive pricing pressures,
anticipated increased spending on product development, the continued
availability of capital resources and the Company's ability to assess the risks
of the year 2000 issue with respect to its operations, and to resolve them in a
timely manner. Although the Company believes that its expectations are based on
reasonable assumptions within the bounds of its knowledge of its business and
operations, there can be no assurance that actual results will not differ
materially from its expectations. Factors which could cause actual results to
differ from expectations include the timing of orders received from customers,
the gain or loss of significant customers, changes in the mix of products sold,
changes in the cost and availability of parts and supplies, fluctuations in
warranty costs, new product development activities, economic conditions
affecting domestic and international markets, regulatory changes affecting the
telecommunications industry, in general, and the Company's operations, in
particular, competition and changes in domestic and international demand for the
Company's products and other factors which may impact operations and
manufacturing. For additional information concerning these and other important
factors which may cause the Company's actual results to differ materially from
expectations and underlying assumptions, please refer to the Company's reports
filed on Form 10-K and other reports filed with the Securities and Exchange
Commission.
Results of Operations:
Net income for the thirteen-week period ended September 25, 1998, was
$1,669,000, which included income from continuing operations of $1,381,000 and a
gain on disposal of discontinued operations of $288,000, net of tax. This
compares to net income of $1,881,000 for the same period of the prior year, all
of which derived from continuing operations.
Net sales for the thirteen-week period ended September 25, 1998, were
$33,216,000, a decrease of 10% from the prior year's sales of $37,065,000 for
the same period. The decrease in sales was primarily attributable to reduced
sales to international markets, primarily in Canada, as well as in Asia and
Europe. The reduction of sales to international markets more than offset an
increase in domestic sales for the quarter.
Domestic sales, as a percentage of total consolidated sales, were 91% for the
quarter ended September 25, 1998. This compares to 72% for the same period of
the prior year. Sales to domestic customers increased 14% during the quarter
ended September 25, 1998, compared to the same period of the prior year. In
recent periods, the Company has seen a steady demand from domestic CATV
operators for hybrid/fiber coax (HFC) distribution equipment. The Company
believes the increased demand continues to be driven by network upgrade activity
resulting from demands on cable operators for improved services, affecting not
only voice and video requirements, but also demands for high-speed data
transmission.
International sales, as a percentage of total consolidated sales, were 9% for
the quarter ended September 25, 1998. This compares to 28% for the same period
of the prior year. Sales to international customers decreased 71% during the
quarter ended September 25, 1998, compared to the same period of the prior year.
The decrease for the quarter resulted primarily from reduced demand in Canada,
as well as in Asia and Europe. These markets continue to represent distinct
markets for CATV equipment, and, in general, demand can be highly variable.
The Company's backlog of sales orders at September 25, 1998, was approximately
$23.9 million, consisting of backlog from domestic and international customers
of 78% and 22%, respectively. This compares to a backlog of approximately $24.0
million at the end of the Company's fiscal year ended June 26, 1998, consisting
of backlog from domestic and international customers of 91% and 9%,
respectively. The Company booked approximately $33.1 million of new sales orders
during the quarter ended September 25, 1998, resulting in a book-to-bill ratio
for the quarter of 1.00, compared to .91 at the end of the previous quarter.
Gross profit percentage for the thirteen-week period ended September 25, 1998,
was 22.9% versus 23.2% for the same period of the prior year. The decrease in
the gross profit margin for the quarter is primarily a result of changes in
customer and product sales mix, and reduced efficiencies resulting from lower
production volumes, compared to the same period of the prior year. Although
pricing pressures continue, the Company has implemented initiatives to mitigate
these pressures. The Company has undertaken steps to lower manufacturing costs
by improving manufacturing processes in order to enhance efficiency and
productivity, and by redesigning products to enhance manufacturability and
reduce material costs.
Selling, general and administrative expenses for the thirteen-week period ended
September 25, 1998, were $3,428,000, a decrease of 4% over the prior year's
total of $3,555,000 for the same period. The decrease is due to various selling
and administrative costs, including personnel and promotional costs.
Research and product development costs for the thirteen-week period ended
September 25, 1998, were $2,062,000, an increase of 16% over the prior year's
total of $1,773,000 for the same period. The increase is a result of higher
personnel costs and increased expenditures due to the Company's continued
investments in new products and technologies, which include additional
development costs for our new Navicor(TM) platform of product introduced in
fiscal year 1998. In accordance with the current development schedule of the
Navicor platform of products, the Company now anticipates production release of
these products in several phases over the second half of fiscal year 1999.
Anticipated new product development initiatives are expected to increase
research and product development expenses in future periods.
Other income for the thirteen-week period ended September 25, 1998, was $33,000.
This compares to other expense of $322,000 for same period of the prior year.
The decrease is primarily a result of expense accrued in the first quarter of
the prior year for settlement of certain litigation.
The effective income tax rate for the thirteen-week period ended September 25,
1998, was 33.8%. This compares to an effective income tax rate of 35.0% for the
same period of the prior year. Fluctuations in the effective income tax rate
from period to period reflect changes in non-deductible amounts, the relative
profitability related to both U.S. and non-U.S. operations, and differences in
statutory rates.
Results of Discontinued Operations:
On July 10, 1997, the Company announced the discontinuation of its digital fiber
optic business segment located in Fremont, California, in a wind-down process
that was substantially completed as of the quarter ended March 27, 1998. A gain
from the disposal of the discontinued business segment of $288,000, net of tax
of $80,000, was recorded during the quarter, resulting primarily from the
settlement of certain warranty liabilities.
Liquidity and Capital Resources
The Company's current ratio at September 25, 1998, increased to 2.8 from 2.6 at
June 26, 1998. Net cash generated from operating activities was $3,714,000 for
the quarter ended September 25, 1998, compared to $5,106,000 for the same period
of the prior year. Working capital was $27,148,000 as of September 25, 1998,
compared to $27,313,000 at June 26, 1998.
Net cash used in investing activities was $836,000 for the quarter ended
September 25, 1998, compared to $1,483,000 for the same period of the prior
year. The decrease of cash used in investing activities was primarily due to
reduced purchases of property, plant, and equipment, compared to the same period
of the prior year.
Net cash used in financing activities was $4,595,000 for the quarter ended
September 25,1998, compared to $3,604,000 for the same period of the prior year.
On June 25, 1998 the Company announced the closing of its manufacturing plant
located in Reedsville, Pennsylvania, in order to reduce costs and improve
productivity and asset utilization. The Company had a Lease/Option to Purchase
Agreement with the Mifflin County Industrial Development Corporation (MCIDC) for
the building and improvements located in Reedsville, Pennsylvania. The Company
was the guarantor of several borrowing commitments by the MCIDC for financing
the facility and improvements. On August 10, 1998, the Company executed its
option and purchased the facility for approximately $1,454,000, representing the
remaining outstanding principal balances of the various loan commitments. The
Company used its available capital resources for the purchase. In addition, on
August 20, 1998, the Company paid off the remaining balances of two loans
secured through the Pennsylvania "Sunny Day" Fund. The loans funded the
expansion and renovation of the Company's State College facility in 1995. The
loan balances were paid off in order to eliminate certain restrictive covenants
associated with the loan agreements. The principal balance of the two loans paid
off were $409,000 and $2,506,000, respectively. The Company used its available
capital resources to pay off the loans. Additional financing activities for the
quarter resulted from borrowings and payments on the Company's line-of-credit
and other long-term debt.
The Company has a stock repurchase program which allows the Company to
repurchase up to 500,000 shares of C-COR Common Stock. The shares may be
purchased from time to time in the open market through block or privately
negotiated transactions, or otherwise. The Company intends to use its currently
available capital resources to fund the purchases. The repurchased stock is
being held by the Company as treasury stock to be used to meet the Company's
obligations under its present and future stock option plans and for other
corporate purposes. As of September 25, 1998, a total of 46,943 shares were
repurchased under this stock repurchase program, of which 36,601 were purchased
during the quarter. The total shares being held by the Company as treasury stock
as of September 25, 1998, were 546,943.
The Company maintains a line-of-credit with a bank, pursuant to which it may
borrow the lesser of $23,000,000 or a percentage of eligible accounts receivable
and inventory. The borrowings are collateralized by accounts receivable and
inventory. The line-of-credit is committed through January 31, 1999. The Company
anticipates renewing this line-of-credit on or before January 31, 1999. The
Company had no borrowings on this line-of-credit as of September 25, 1998. Based
upon the Company's analysis of eligible accounts receivable and inventory,
approximately $16,624,000 was available to borrow as of September 25, 1998.
Management believes that operating cash flow, as well as the aforementioned
financing source, will adequately provide for all cash requirements for the
foreseeable future, subject to requirements that additional growth or strategic
development might dictate.
Recent Accounting Changes
In 1997, the Financial Accounting Standards Board (FASB) issued Statement of
Financial Accounting Standards No. 130, "Reporting Comprehensive Income"
(Statement 130), which was adopted during the quarter ended September 25, 1998.
This Statement establishes standards for reporting and classifying components of
comprehensive income in the financial statements and requires that the
accumulated balance of other comprehensive income be displayed separately from
retained earnings and additional paid-in-capital in the equity section of the
financial statements.
Year 2000
The Company is aware of the issues associated with the limitations of the
programming code in many existing computer systems, whereby the computer systems
may not properly recognize date-sensitive information as the millennium (year
2000) approaches. The Company's computer systems include, but are not limited
to, computer systems embedded in production equipment, products containing
computer systems, business data processing systems, production management and
planning systems, and personal computers. Systems that do not properly recognize
such information could generate erroneous data or cause a system to fail. During
the thirteen-week period ended September 25, 1998, the Company continued its
ongoing process of evaluating its information technology infrastructure for year
2000. In addition, by the end of its second quarter of fiscal year 1999, the
Company expects to correspond with its principal customers, suppliers, vendors
and subcontractors to ascertain their readiness for the year 2000. The Company's
current timetable is that it expects to complete its Year 2000 risk assessment
by the end of its second quarter of fiscal year 1999, however, there can be no
assurance that the Company can meet this timetable. While the total estimated
cost of these efforts is difficult to predict with accuracy, based on a
preliminary evaluation, the Company believes that there should not be a material
adverse impact on its operating results or financial condition. However, Year
2000 issues could have a significant impact on the Company's operations and its
financial results if modifications cannot be completed on a timely basis, if
unforeseen needs or problems arise, or if there are unforeseen compliance
problems with the systems operated by its customers, suppliers, vendors or
subcontractors. Moreover, the change to the year 2000 may negatively impact the
Company's customers or the CATV industry as a whole, causing reduced demand and
market disruption in anticipation of, or following, the year 2000. Upon final
completion of the evaluation of its information technology infrastructure for
Year 2000, the Company will establish a contingency plan detailing how the
Company will operate in the event that the Company is not Year 2000 compliant in
a timely manner. In addition, the Company is uncertain as to the most reasonably
likely worst case scenario, however, upon completion of its Year 2000 risk
assessment, the Company expects to be able to ascertain the effects of such
scenario, and develop a remedial plan.
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
The following exhibit is included herein:
(27) Financial Data Schedule
Reports on Form 8-K
On July 2, 1998, the Registrant filed a Form 8-K to report that the Registrant
announced that on June 16, 1998, its Board of Directors elected David A. Woodle
as the Registrant's President and Chief Executive Officer, effective July 20,
1998.
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.
C-COR ELECTRONICS, INC.
(Registrant)
Date: November 9, 1998 /s/ William T. Hanelly
Vice President-Finance,
Secretary & Treasurer
(Principal Financial Officer)
Date: November 9, 1998 /s/ Joseph E. Zavacky
Controller & Assistant
Secretary
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-25-1999
<PERIOD-START> JUN-27-1998
<PERIOD-END> SEP-25-1998
<CASH> 596
<SECURITIES> 356
<RECEIVABLES> 17,518
<ALLOWANCES> 583
<INVENTORY> 17,858
<CURRENT-ASSETS> 42,043
<PP&E> 54,417
<DEPRECIATION> 28,999
<TOTAL-ASSETS> 70,858
<CURRENT-LIABILITIES> 14,895
<BONDS> 0
0
0
<COMMON> 970
<OTHER-SE> 50,777
<TOTAL-LIABILITY-AND-EQUITY> 70,858
<SALES> 33,216
<TOTAL-REVENUES> 32,216
<CGS> 25,625
<TOTAL-COSTS> 5,490
<OTHER-EXPENSES> (18)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 32
<INCOME-PRETAX> 2,087
<INCOME-TAX> 706
<INCOME-CONTINUING> 1,381
<DISCONTINUED> (288)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,669
<EPS-PRIMARY> .18
<EPS-DILUTED> .18
</TABLE>
