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FORM 10-Q/A
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from________________to__________________
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Commission file number 0-10734
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FERROFLUIDICS CORPORATION
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(Exact name of registrant as specified in its charter)
Massachusetts 02-0275185
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(State or other jurisdiction of (I.R.S.Employer
incorporation or organization Identification No.)
40 Simon Street,
Nashua, New Hampshire 03061
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(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) (603) 883-9800
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(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 (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.
(1) Yes X No
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(2) Yes X No
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Indicate the number of shares outstanding of each of the Registrant's classes of
Common Stock, as of October 31, 1996.
Common Stock, $.004 par value per share 6,104,747
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(Class) (No. of Shares)
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PART I. FINANCIAL INFORMATION
ITEM 1.
FERROFLUIDICS CORPORATION
<TABLE>
CONSOLIDATED BALANCE SHEETS
September 30, 1996 and June 30, 1996
<CAPTION>
ASSETS September 30, 1996 June 30, 1996
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(unaudited) (note)
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 47,000 $ 1,701,000
Accounts receivable - trade, less allowance
for doubtful accounts of $332,000 at
September 30, 1996 and $331,000 at June 30, 1996 14,730,000 12,757,000
Inventories 14,287,000 13,829,000
Advances to suppliers 1,888,000 1,916,000
Prepaid and other current assets 890,000 672,000
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Total Current Assets 31,842,000 30,875,000
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Property, plant and equipment, at cost, net
of accumulated depreciation of $9,961,000 at
September 30, 1996 and $9,117,000 at June 30, 1996 8,592,000 8,784,000
Cash value of life insurance 1,731,000 1,731,000
Other assets, principally goodwill 2,225,000 2,249,000
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TOTAL ASSETS $ 44,390,000 $ 43,639,000
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LIABILITIES
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Current Liabilities:
Bank notes payable 4,975,000 4,262,000
Accounts payable 6,407,000 6,366,000
Customer deposits 4,434,000 4,368,000
Accrued expenses 2,950,000 3,739,000
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Total Current Liabilities 18,766,000 18,735,000
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Long-term debt obligations 5,000,000 5,000,000
Other liabilities 194,000 202,000
STOCKHOLDERS' EQUITY
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Preferred stock, $.001 par value, authorized
100,000 shares, issued and outstanding, none -- --
Common stock, $.004 par value, authorized
12,500,000 shares, issued and outstanding
6,060,902 shares at September 30, 1996 and
at June 30, 1996 24,000 24,000
Additional paid-in capital 36,002,000 35,871,000
Retained deficit (15,037,000) (15,643,000)
Currency translation adjustments (559,000) (550,000)
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Total Stockholders' Equity 20,430,000 19,702,000
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 44,390,000 $ 43,639,000
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</TABLE>
Note: The balance sheet at June 30, 1996 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
The accompanying notes are an integral part of the consolidated financial
statements
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FERROFLUIDICS CORPORATION
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended September 30, 1996 and 1995
(unaudited)
<CAPTION>
1996 1995
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<S> <C> <C>
Cash flows from operating activities:
Net income $ 606,000 $ 714,000
Adjustments to reconcile net income to net
cash provided by (used in) operations:
Depreciation and amortization 415,000 347,000
Restricted stock expense 130,000 98,000
Other 158,000 (74,000)
Changes in assets and liabilities:
Accounts receivable (1,995,000) 1,057,000
Inventories (463,000) (1,622,000)
Prepaid expenses and other current assets (192,000) 187,000
Accounts payable and accrued expenses (753,000) (1,496,000)
Customer deposits 64,000 1,128,000
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Net cash provided by (used in) operating activities (2,030,000) 339,000
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Cash flow from investing activities:
Acquisition of property, plant and equipment (327,000) (488,000)
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Net cash used in investing activities (327,000) (488,000)
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Cash flow from financing activities:
Short term borrowing, net 713,000 --
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Net cash provided by financing activities 713,000 --
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Effect of currency rate changes on cash (10,000) (93,000)
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Net decrease in cash (1,654,000) (242,000)
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Cash and cash equivalents at beginning of period 1,701,000 1,563,000
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Cash and cash equivalents at end of period $ 47,000 $ 1,321,000
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Cash paid for interest and income taxes for the
three months ended September 30, 1996 and 1995
is as follows:
1996 1995
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Interest $ 143,000 $ 50,000
Income taxes $ 320,000 $ 3,000
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereunto duly authorized.
FERROFLUIDICS CORPORATION
(Registrant)
Date: December 5, 1996
/s/ William B. Ford
By_____________________________
William B. Ford
Vice President and Chief
Financial Officer
