UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1994 *
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period N/A
Commission file number: 0-10877
TCI INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
Delaware 94-3026925
(State of other jurisdiction of (I.R.S.
Employer Identification Number)
incorporation or organization)
222 Caspian Drive, Sunnyvale, California 94089-1014
(Address of principal executive offices)
(Zip Code)
(408)747-6100
(Registrant's telephone number, including area code)
*The Company is on a 52/53 week fiscal year. The quarter ended on
January 1, 1995. For presentation purposes, the Company has
indicated its quarter end as December 31, 1994.
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 ___
As of January 31, 1995, 3,150,311 shares of Common Stock were
outstanding.
TCI INTERNATIONAL, INC.
PART I FINANCIAL INFORMATION
Condensed Consolidated Financial Statements
(Unaudited)
The unaudited condensed consolidated financial statements
included herein have been prepared by the Company pursuant to the
rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although the Company
believes the information included herein, when read in
conjunction with the financial statements and related notes
included in the Company's Annual Report on Form 10-K for the year
ended September 30, 1994, filed with the Securities and Exchange
Commission, to be not misleading. Further, the following
financial statements reflect, in the opinion of management, all
adjustments necessary to present fairly the financial position
and results of operations as of and for the periods indicated.
E
The results of operations for the three months ended December 31,
1994, are not necessarily indicative of results to be expected
for the entire year ending September 30, 1995.
TCI INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended December 31,
(In thousands, except per share amounts)
1994 1993_
Revenues $ 6,839 $ 5,981
Operating Costs and Expenses:
Cost of revenues 3,923 3,735
Marketing, general and administrative 2,678 2,186
6,601 5,921
Income from operations 238 60
Investment income, net 188 124
Income before provision for income taxes 426 184
Provision for income taxes 26 6
Income before change in accounting for
income taxes and extraordinary item 400 178
Change in accounting for income taxes
(SFAS 109) 0 1,511
Net Income $ 400 $ 1,689
Per Share:
Income before change in accounting for income
taxes and extraordinary item$ 0.12 $ 0.05
Net income $ 0.12 $ 0.49
Shares used in per share computations 3,237 3,439
See accompanying Notes to Condensed Consolidated Financial
Statements.
TCI INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands)
December 31 September 30
1994
1994___
ASSETS
Current Assets
Cash and cash equivalents $ 5,579 $ 7,578
Short-term investments 14,348 11,938
Accounts receivable -
Billed 1,566 2,686
Unbilled 3,178 2,935
Refundable income taxes 172 739
Inventories 4,868 4,901
Prepaid expenses 497 490
Total current assets 30,208 31,267
Property and Equipment, net 1,805 1,889
Other Assets 89 85
Total Assets $32,102 $33,241
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,890 $ 2,168
Customer deposits and billings on uncompleted
contracts in excess of revenue recognized 1,964
2,477
Accrued liabilities 4,063 4,524
Total current liabilities 7,917 9,169
Stockholders' Equity:
Common Stock:
Authorized - 5,000 shares, $.01 par value
Issued - 3,341 shares 11,993
11,993
Shares held in treasury at cost:
142 Shares in Dec. 1994 (590) (311)
78 Shares in Sept. 1994 0 0
Retained earnings 12,884 12,483
Valuation allowance-short -term investments (102)
(93)
Total stockholders' equity 24,185 24,072
Total Liabilities and Stockholders Equity $32,102
$33,241
See accompanying Notes to Condensed Consolidated Financial
Statements.
TCI INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended December 31,
(In thousands)
1994
1993___
Cash provided by (used in):
Operations:
Net income $ 400 $ 1,689
Reconciliation to cash provided by (used in) operations:
Depreciation 153 206
Gain on sale of investments 0 (82)
Effect of change in accounting for income taxes
(SFAS 109) 0 (1,511)
Changes in assets and liabilities:
Accounts receivable 877 (2,051)
Refundable income taxes 567 0
Inventories 34 577
Prepaid expenses (11) (67)
Accounts payable (133) 282
Customer deposits (514) (746)
Accrued liabilities (606) (441)
Cash provided by (used in) operations 767 (2,144)
Investing activities:
Purchases of property and equipment (69) (4)
Purchases of short-term investments(2,419) (9,065)
Proceeds from sale of short-term investments 0 11,154
Other 0 38
Cash provided by (used in) investing activities (2,488) 2,123
Financing activities:
Repurchase of common stock for treasury stock (278)
(24)
Cash used in financing activities (278) (24)
Net decrease in cash and cash equivalents(1,999) (45)
Cash and cash equivalents at beginning of year 7,578 5,739
Cash and cash equivalents at end of year$ 5,579 $ 5,694
See accompanying Notes to Condensed Consolidated Financial
Statements
TCI INTERNATIONAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1
Inventories included in the consolidated balance sheet consist of
the following:
December 31,
September 30,
1994 1994
(In thousands)
Material and component parts $3,182 $3,235
Work-in-Process 1,686 1,666
$4,868 $4,901
Note 2
At December 31, 1994, there were outstanding standby letters of
credit of approximately $3,100,000 serving as performance and
payment bonds. The standby letters of credit expire at various
dates through 1996; however, certain performance bonds are
automatically renewable until canceled by the beneficiary. These
outstanding standby letters of credit are fully secured by the
Company's short term investments.
TCI INTERNATIONAL, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
First Fiscal Quarter of 1995
Compared to First Fiscal Quarter of 1994
Revenues for the first three months of fiscal year 1995 were
$6,839,000, an increase of 14% over revenues of $5,981,000 for
the same period in fiscal year 1994. The increase in revenues is
due to increased material flows on various fixed price contracts.
Gross profit as a percentage of revenue for the first quarter
increased from 38% in fiscal year 1994 to 42% in fiscal year 1995
principally due to the recent completion of a significantly
sized, long-term contract which contributed little or no gross
profit over each of the respective reporting periods during the
last four years.
Marketing, general and administrative expenses increased 23% from
$2,186,000 in the first quarter of fiscal year 1994 to $2,678,000
in the first quarter of fiscal year 1995. This increase is due
to intensified marketing efforts as well as an increase in
independent research and development expenditures, a portion of
which are targeted to position the Company's products for sale
into related commercial markets.
Investment income, net for the first three months of fiscal year
1995 was $188,000, an increase of 52% from investment income, net
of $124,000 for the same period in fiscal year 1994. This
increase is due to the higher balance of cash, cash equivalents
and short-term investments as well as the benefit of
comparatively higher interest rates.
Net income for the first three months of fiscal year 1995 was
$400,000, or $0.12 per share, compared to net income of
$1,689,000, or $0.49 per share for the same period in fiscal year
1994. The net income for fiscal year 1994 included the benefit
of $1,511,000, or $0.44 per share, to reflect the cumulative
effect of adopting SFAS No. 109 "Accounting for Income Taxes."
The average number of shares outstanding was 3,236,698 for the
first three months of fiscal year 1995, and 3,439,451 for the
same period in fiscal year 1994. The decline in the number of
outstanding shares is a reflection of the Company's continuing
efforts to repurchase its stock under a stock repurchase program
initially authorized by its Board of Directors in December of
1993.
The results of operations for the first three months in fiscal
year 1995 are not necessarily indicative of future quarterly or
annual performance expectations.
FINANCIAL CONDITION
December 31, 1994 Compared to September 30, 1994
Consolidated cash, cash equivalents and marketable securities
totaled $19,927,000 on December 31, 1994, compared to $19,516,000
on September 30, 1994. The Company currently believes that its
cash, cash equivalents and short-term investments, together with
expected revenues from operations, will be sufficient to fund its
operations through fiscal 1995.
As of December 31, 1994 , the Company has standby letters of
credit outstanding of approximately $3,100,000. The standby
letters of credit are collateralized by the Company's short-term
investments.
TCI INTERNATIONAL, INC.
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits:
10.6 First Amendment to Credit agreement between the
Company and Wells Fargo Bank, National Association
b. Reports on Form 8-K: None
No other applicable items.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
TCI INTERNATIONAL, INC.
(Registrant)
__________________________________
John W. Ballard III
Vice President , Chief
Financial Officer
(Duly authorized officer of the
registrant and principal
financial officer of the registrant)
___________________________
Date
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This schedule contains summary financial information extracted from SEC Form 10Q
and is qualified in its entirety by reference to such financial statements.
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<NAME> TCI INTERNATIONAL, INC.
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