SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM 10-QSB
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 29, 2000.
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________ to _______________
Commission File No. O-5258
IEH CORPORATION
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
New York 13-65549348
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
140 58th Street, Suite 8E, Brooklyn, New York 11220
(Address of principal executive office)
Registrant's telephone number, including area code: (718) 492-4440
--------------------------------------------
Former name, former address and former fiscal year,
if changed since last report.
Check whether the Issuer: (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 [ ]
2,303,468 shares of Common Shares, par value $.50 per share, were
outstanding as of September 29, 2000.
<PAGE>
IEH CORPORATION
CONTENTS
<TABLE>
<CAPTION>
Page
Number
--------
Part I - FINANCIAL INFORMATION
<S> <C>
ITEM 1 - FINANICAL STATEMENTS
Balance Sheets as of September 29, 2000 (Unaudited) and March 31, 2000 2-3
Statement of Operations (Unaudited) for the three and six months ended
September 29, 2000 and October 1, 1999 4
Statement of Cash Flows (Unaudited) for the six months ended
September 29, 2000 and October 1, 1999 5-6
Notes to Financial Statements (Unaudited) 7-11
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 12-15
Part II - OTHER INFORMATION 16
</TABLE>
-1-
<PAGE>
IEH CORPORATION
BALANCE SHEETS
As of September 29, 2000 and March 31, 2000
<TABLE>
<CAPTION>
SEPTEMBER 29, March 31,
2000 2000
------------------ ----------------
(Unaudited) (Note 1)
ASSETS
CURRENT ASSETS:
<S> <C> <C>
Cash $ 3,300 $ 4,045
Accounts receivable, less allowances for doubtful accounts
of $10,062 at September 29, 2000 and March 31, 2000 738,042 772,634
Inventories (Note 2) 894,900 976,169
Prepaid expenses and other current assets (Note 3) 6,398 16,212
------------------ ----------------
Total current assets 1,642,640 1,769,060
------------------ ----------------
PROPERTY, PLANT AND EQUIPMENT, less accumulated
depreciation and amortization of $5,209,894 at September 29, 2000
and $4,777,296 at March 31, 2000 1,248,075 1,258,153
------------------ ----------------
OTHER ASSETS:
Prepaid pension cost (Note 8) 43,949 43,949
Other assets 47,282 46,378
------------------ ----------------
91,231 90,327
------------------ ----------------
Total assets $ 2,981,946 $ 3,117,540
================== ================
</TABLE>
See accompanying notes to financial statements
-2-
<PAGE>
IEH CORPORATION
BALANCE SHEETS
As of September 29, 2000 and March 31, 2000
<TABLE>
<CAPTION>
SEPTEMBER 29, March 31,
2000 2000
-------------------- ------------------
(Unaudited) (Note 1)
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
<S> <C> <C>
Accounts receivable financing $ 673,742 $ 689,775
Notes payable, equipment, current portion (Note 7) 25,354 19,555
Notes payable, current portion (Note 6) 39,433 66,009
Loans payable, current portion (Note 5) 56,123 53,929
Accrued corporate income taxes 14,412 16,020
Union health & welfare fund, current portion (Note 8) 96,000 96,000
Accounts payable 691,941 779,686
Other current liabilities (Note 4) 160,880 159,130
-------------------- ------------------
Total current liabilities 1,757,885 1,880,104
-------------------- ------------------
LONG-TERM LIABILITIES:
Pension Plan payable (Note 8) 516,966 516,966
Notes payable, equipment, less current portion (Note 7) 62,785 50,858
Notes payable, less current portion (Note 6) - 5,750
Loan payable, less current portion (Note 5) 53,488 81,127
Union health & welfare fund, less current portion (Note 8) 21,689 36,689
-------------------- ------------------
Total long-term liabilities 654,928 691,390
-------------------- ------------------
Total liabilities 2,412,813 2,571,494
-------------------- ------------------
STOCKHOLDERS' EQUITY:
Common stock, $.50 par value; 10,000,000 shares authorized;
2,303,468 shares issued and outstanding at September 29, 2000
and March 31, 2000 1,151,734 1,151,734
Capital in excess of par value 1,615,874 1,615,874
Retained earnings (Deficit) (2,198,475) (2,221,562)
-------------------- ------------------
Total stockholders' equity 569,133 546,046
-------------------- ------------------
Total liabilities and stockholders' equity $ 2,981,946 $ 3,117,540
==================== ==================
</TABLE>
See accompanying notes to financial statements
-3-
<PAGE>
IEH CORPORATION
STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
----------------- ------------------
SEPT. 29, Oct. 1, SEPT. 29, Oct. 1,
2000 1999 2000 1999
------------------ --------------- --------------- ----------------
<S> <C> <C> <C> <C>
REVENUE, net sales $ 2,332,105 $ 2,226,814 $ 1,141,111 $ 1,092,582
------------------ --------------- --------------- ----------------
COSTS AND EXPENSES
Cost of products sold 1,659,800 1,641,896 817,890 801,856
Selling, general and administrative 429,220 354,396 214,677 176,701
Interest expense 77,750 74,113 37,588 36,416
Depreciation and amortization 134,040 151,050 67,320 75,525
------------------ --------------- --------------- ----------------
2,300,810 2,221,455 1,137,475 1,090,498
------------------ --------------- --------------- ----------------
OPERATING INCOME (LOSS) 31,295 5,359 3,636 2,084
OTHER INCOME 192 389 192 148
------------------ --------------- --------------- ----------------
INCOME (LOSS) BEFORE INCOME TAXES
31,487 5,748 3,828 2,232
PROVISION FOR INCOME TAXES 8,400 8,400 4,200 4,200
------------------ --------------- --------------- ----------------
NET INCOME (LOSS) $ 23,087 $ (2,652) $ (372) $ (1,968)
================== =============== =============== ================
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE
$ .010 $ (.001) $ (.001) $ (.001)
================== =============== =============== ================
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING (in thousands) 2,303 2,303 2,303 2,303
================== =============== =============== ================
</TABLE>
See accompanying notes to financial statements
-4-
<PAGE>
IEH CORPORATION
STATEMENT OF CASH FLOWS
Increase (Decrease) in Cash
For the Six Months Ended September 29, 2000 and October 1, 1999
(Unaudited)
<TABLE>
<CAPTION>
SEPT. 29, Oct. 1,
2000 1999
--------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income (loss) $ 23,087 $ (2,652)
--------------- --------------
Adjustments to reconcile net income to net cash used in
operating activities:
Depreciation and amortization 134,040 151,050
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 34,592 3,635
(Increase) decrease inventories 81,269 39,071
(Increase) decrease in prepaid expenses and other current assets 9,814 7,804
(Increase) decrease in other assets (904) 363
(Decrease) increase in accounts payable (87,745) 9,572
(Decrease) increase in other current liabilities 1,750 (10,159)
Increase in accrued corporate income taxes (1,608) 10,536
(Decrease) in union health & welfare fund (15,000) (3,638)
--------------- --------------
Total adjustments 156,208 208,234
--------------- --------------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 179,295 205,582
--------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of fixed assets (123,962) (52,781)
--------------- --------------
NET CASH USED IN INVESTING ACTIVITIES $ (123,962) $ (52,781)
--------------- --------------
</TABLE>
See accompanying notes to financial statements
-5-
<PAGE>
IEH CORPORATION
STATEMENT OF CASH FLOWS
Increase (Decrease) in Cash
For the Six Months Ended September 29, 2000 and October 1, 1999
(Unaudited)
<TABLE>
<CAPTION>
SEPT. 29, Oct. 1,
2000 1999
-------------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
<S> <C> <C>
Principal payments on notes payable $ (14,600) $ (47,309)
Proceeds from accounts receivable financing (16,033) (81,978)
Principal payments on loan payable (25,445) (24,932)
-------------------- -----------------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
(56,078) (154,219)
-------------------- -----------------
INCREASE (DECREASE) IN CASH (745) (1,418)
CASH, beginning of period 4,045 15,120
-------------------- -----------------
CASH, end of period $ 3,300 $ 13,702
==================== =================
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION,
cash paid during the six months for:
Interest $ 77,750 $ 74,113
==================== =================
Income Taxes $ - $ -
==================== =================
</TABLE>
See accompanying notes to financial statements
-6-
<PAGE>
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 1 - FINANCIAL STATEMENTS:
The accompanying financial statements of IEH Corporation ("The
Company") for the six months ended September 29, 2000 have been
prepared in accordance with the instructions for Form 10-QSB and do not
include all of the information and footnotes required by generally
accepted accounting principles. The financial statements have been
prepared by management from the books and records of the Company and
reflect, in the opinion of management, all adjustments (consisting of
normal recurring accruals) necessary for a fair presentation of the
financial position, results of operations and cash flows of the Company
for the six months ended September 29, 2000. These statements are not
necessarily indicative of the results to be expected for the full
fiscal year. These statements should be read in conjunction with the
financial statements and notes thereto included in the Company's annual
report Form 10-KSB for the fiscal year ended March 31, 2000 as filed
with the Securities and Exchange Commission.
The balance sheet at March 31, 2000 has been taken from the audited
financial statements of that date.
Note 2 - INVENTORIES:
Inventories are comprised of the following:
Sept. 29, March 31,
2000 2000
---------------- ---------------
Raw materials $ 626,430 $ 683,443
Work in progress 178,980 190,480
Finished goods 89,490 102,246
---------------- ---------------
$ 894,900 $ 976,169
================ ===============
Inventories are priced at the lower of cost (first-in, first-out
method) or market, whichever is lower. The Company has established a
reserve for obsolescence to reflect net realizable inventory value. The
balance of this reserve as of September 29, 2000 was $ 24,000.
At March 31, 2000, the balance of this reserve was $ 0.
Inventories at September 29, 2000 and March 31, 2000 are recorded net
of this reserve.
Note 3 - PREPAID EXPENSES AND OTHER CURRENT ASSETS:
Prepaid expenses and other current assets are comprised of the
following:
Sept. 29, March 31,
2000 2000
---------------- ---------------
Prepaid insurance $ 6,398 $ 14,613
Other current assets - 1,599
---------------- ---------------
$ 6,398 $ 16,212
================ ===============
-7-
<PAGE>
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 4 - OTHER CURRENT LIABILITIES:
Other current liabilities are comprised of the following:
Sept. 29, March 31,
2000 2000
---------------- ---------------
Payroll and vacation accruals $ 63,330 $ 63,317
Sales commissions 10,294 5,715
Pension Plan payable 65,489 65,489
Other 21,767 24,609
---------------- ---------------
$ 160,880 $ 159,130
================ ===============
Note 5 - LOAN PAYABLE:
On July 22, 1992, the Company obtained a loan of $435,000 from the New
York State Urban Development Corporation ("UDC") collateralized by
machinery and equipment. The loan is payable over ten years, with
interest rates progressively increasing from 4% to 8% annum.
The balance remaining at September 29, 2000 was $109,611.
Aggregate future principal payments are as follows:
Fiscal Year Ending March:
2001 $ 27,502
2002 58,405
2003 23,704
--------------
$ 109,611
==============
In April 1997, the Company was informed by the UDC that the loan was
sold and conveyed to WAMCO XXIV, Ltd. All of the terms and conditions
of the loan remained in effect.
As of September 29, 2000, the Company had failed to meet one of the
financial covenants of the loan agreement; namely that the "Company
shall be obligated to maintain a tangible net worth of not less than
$1,300,000 and the Company shall be obligated to maintain a ratio of
current assets to current liabilities of 1.1 to 1.0.
-8-
<PAGE>
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 5 - LOAN PAYABLE (continued):
At September 29, 2000, the Company reported tangible net worth of
$569,133. The ratio of current assets to current liabilities was .94 to
1.0.
The Company had previously received a waiver of this covenant from the
UDC through the period ending March 31, 1994 and has applied for
additional waivers of this covenant. Neither the UDC or WAMCO XXVI,
Ltd. Has acted on these requests.
There are no assurances that the Company will receive any additional
waivers of this covenant. Should the Company not receive any additional
waivers, then it will be deemed in default of this loan obligation and
the entire loan plus interest will become due and payable.
Note 6 - NOTES PAYABLE:
The Company was in arrears to the New York City Economic Development
Corporation ("NYCEDC") for rent due for its offices and manufacturing
facilities. In May 1997, the Company and the NYCEDC negotiated an
agreement for the Company to pay off its indebtedness over a 48 month
period by the Company issuing notes payable to NYCEDC. The note bears
interest at the rate of 8.25% per annum. The balance remaining at
September 29, 2000 was $ 39,433.
Note 7 - NOTES PAYABLE EQUIPMENT:
The Company financed the acquisition of new computer equipment and
software with notes payable. The notes are payable over a sixty month
period. The balance remaining at September 29, 2000 amounted to
$88,139.
Aggregate future principal payments are as follows:
Fiscal Year Ending March:
-------------------------
2001 $ 12,677
2002 25,355
2003 25,333
2004 16,978
Thereafter 7,796
--------------
$ 88,139
==============
-9-
<PAGE>
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 8 - COMMITMENTS:
The Company has with the United Auto Workers of America, Local 259, a
collective bargaining multi-employer pension plan. Contributions are
made in accordance with a negotiated labor contract and are based on
the number of covered employees employed per month. With the passage of
the Multi-Employer Pension Amendments Act of 1980 ("The Act"), the
Company may become subject to liabilities in excess of contributions
made under the collective bargaining agreement. Generally, these
liabilities are contingent upon the termination, withdrawal or partial
withdrawal from the Plan. The Company has not taken any action to
terminate, withdraw or partially withdraw from the Plan nor does it
intend to do so in the future. Under the Act, liabilities would be
based upon the Company's proportional share of the Plan's unfunded
vested benefits which is currently not available. The amount of
accumulated benefits and net assets of such Plan also is not currently
available to the Company. The total contributions charged to operations
under this pension plan were $8,298 for the three months ended
September 29, 2000.
In December 1993, the Company and Local 259 entered into a verbal
agreement whereby the Company would satisfy this debt by the following
payment schedule:
The sum of $8,000 will be paid by the Company each month in
satisfaction of the current arrears until this total debt has been
paid.
Additionally, both parties agreed that current obligatory funding by
the Company will be made on a timely basis.
Effective February 1, 1995, the Company withdrew from the Union's
health and welfare plan and offered its employees an alternative health
insurance plan.
As of September 29, 2000, the Company had paid down the arrears to the
Union's pension plan and the amount due the health and welfare plan was
$117,689.
The total amount due of $ 117,689 is reported on the accompanying
balance sheet in two components; $ 96,000 reported as a current
liability and $21,689 as a long-term liability.
On June 30, 1995, the Company applied to the Pension Benefit Guaranty
Corporation ("PBGC") to have the PBGC assume all of the Company's
responsibilities and liabilities under its Salaried Pension Plan. On
April 26, 1996, the PBGC determined that the Salaried Pension Plan did
not have sufficient assets available to pay benefits which were and are
currently due under the terms of the plan.
The PBGC further determined that pursuant to the provisions of the
Employment Retirement Income Security Act of 1974, as amended ("ERISA")
that the plan must be terminated in order to protect interests of the
plan's participants. Accordingly, the PBGC proceeded pursuant to ERISA
to have the plan terminated and the PBGC appointed as statutory
trustee, and to have July 31, 1995 established as the plan's
termination date.
-10-
<PAGE>
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 8 - COMMITMENTS (continued):
At September 29, 2000 and March 31, 2000, $65,489 of the pension
liability is included in other current liabilities, with the balance of
$516,966 shown as long-term liability.
On those dates, the long-term portion includes $ 226,041, which
represents the recognition of additional minimum liability to comply
with the requirements of Statement of Financial Standards No. 87.
In August 1998, the Company was notified by the PBGC that the Company
is liable to the PBGC for the following amounts as of September 1,
1998:
o $456,418 representing the amount of unfunded benefit
liabilities of the Plan
o $242,097 representing funding liability
The total amount claimed by the PBGC amounts to $698,515.
The amount claimed is being contested by the Company, and an appeal has
been filed with the PBGC. The Company is presently awaiting a response
from the PBGC.
On December 1, 1998, the Company amended its lease on its premises by
surrendering a portion of its rented premises back to its landlord.
Accordingly, the base monthly rent was reduced to $9,397.11 or
$112,765.29 per annum through the conclusion of the lease which ends
August 23, 2001.
Note 9 - CHANGES IN STOCKHOLDERS' EQUITY:
Retained earnings (deficit) increased by $372, which represents the net
loss for the three months ended September 29, 2000.
Note 10 - YEAR 2000 UPDATE:
Subject to continued monitoring of third party suppliers, IEH
Corporation's year 2000 program ("Program") is complete, and no
material problems have arisen since the end of calendar year 1999. The
Program addressed the issue of computer programs and embedded computer
chips being unable to distinguish between the year 1900 and the year
2000. All of the Company's business computer systems are year 2000
ready.
-11-
<PAGE>
IEH CORPORATION
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The following table sets forth for the periods indicated, the
percentages for certain items reflected in the financial data as such
items bear to the revenues of the Company:
<TABLE>
<CAPTION>
Six Months Ended
----------------------------------
Sept. 29, Oct. 1,
2000 1999
-------------- ---------------
<S> <C> <C>
Operating Revenues (in thousands) $ 2,332 $ 2,227
-------------- ---------------
Operating Expenses: (as a percentage of operating revenues
Cost of Products Sold 71.18 % 73.73 %
Selling, General and Administrative 18.40 % 15.92 %
Interest Expense 3.34 % 3.33 %
Depreciation and Amortization 5.75 % 6.78 %
-------------- ---------------
Total Costs and Expenses 98.67 % 99.76 %
-------------- ---------------
Operating Income (Loss) 1.33 % .24 %
Other Income .01 % .02 %
-------------- ---------------
Income (Loss) Before Income Taxes 1.34 % .26 %
Income Taxes .36 % .38 %
-------------- ---------------
Net Income .98 % (.12 %)
============== ===============
</TABLE>
-12-
<PAGE>
IEH CORPORATION
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS (continued)
COMPARATIVE ANALYSIS
Operating revenues for the six months ended September 29, 2000 amounted
to $2,332,105 reflecting a 5 % increase versus the comparative six
months operating revenues of $2,226,814. The increase is a direct
result of management's effort to redirect its dependence on government
and military sales to developing new market sales in the commercial
electronic sector.
Cost of products sold amounted to $1,659,800, for the six months ended
September 29, 2000 or 71.18 % of operating revenues. This reflected an
increase of $17,904 or 1 % in the cost of products sold of $1,641,896
for the six months ended October 1, 1999. This increase is primarily
due to increased costs related to production.
Selling, general and administrative expenses were $429,220 or 18.40 %
of revenues for the period ended September 29, 2000 as compared to
$354,396 or 15.92 % of revenues for the comparable six month period
ended October 1, 1999. This reflected an increase of 21% and reflects
management's efforts to increase sales outside of the governmental
area.
Interest expense was $77,750 or 3.34 % of revenues for the period ended
September 29, 2000 as compared to $74,113 or 3.33 % of revenues in the
six month period ended October 1, 1999. This increase of 5% reflects
the increase in borrowing by the Company in the current fiscal period.
Depreciation and amortization of $134,040 or 5.75 % of revenues was
reported for the six month period ended September 29, 2000. This
reflects a decrease of 11 % from the comparable six month period ended
October 1, 1999 of $151,050 or 6.79 % of revenues. The decrease is the
result of some fixed assets becoming fully depreciated during the six
month period ended September 29, 2000.
The Company reported a net income of $23,087 for the six months ended
September 29, 2000, representing basic earnings per share of $.010 as
compared to basic loss of $2,652 or $.001 per common share for the six
months ended October 1, 1999.
The resultant increase in net income can be attributed to increased
sales in the commercial sector in the current six month period ending
September 29, 2000.
-13-
<PAGE>
IEH CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
RESULTS OF OPERATIONS
The following table sets forth for the periods indicated, percentages
for certain items reflected in the financial data as such items bear to the
revenues of the Company:
<TABLE>
<CAPTION>
Three Months Ended
--------------------------------
Sept. 29, Oct. 1,
2000 1999
<S> <C> <C>
Operating Revenues (in thousands) $ 1,141 $ 1,093
--------------- -------------
Operating Expenses: (as a percentage of operating revenues)
Cost of Products Sold 71.69 % 73.39 %
Selling, General and Administrative 18.84 % 16.17 %
Interest Expense 3.24 % 3.33 %
Depreciation and Amortization 5.87 % 6.91 %
--------------- -------------
Total Costs and Expenses 99.64 % 99.81 %
--------------- -------------
Operating Income (loss) .36 % .19 %
Other Income .02 % .01 %
--------------- -------------
Income (loss) before Income Taxes .38 % .20 %
Income Taxes .38 % .38 %
--------------- -------------
Net Income (loss) 0.00 % (.18) %
=============== =============
</TABLE>
COMPARATIVE ANALYSIS
Operating revenues for the three months ended September 29, 2000
amounted to $1,141,111 reflecting a 4% increase versus the comparative
three months operating revenues of $1,092,582. The increase is a
direct result of management's new market sales in the commercial
electronic sector.
Cost of products sold amounted to $817,890 for the three months ended
September 29, 2000 or 71.69 % of operating revenues. This reflected an
increase of $ 16,034 or 2 % of the cost of products sold of $801,856
for the three months ended October 1, 1999. This increase is primarily
due to production costs inherent in producing new products. Costs of
products sold decreased as a percentage of revenues in the comparative
periods.
Selling, general and administrative expenses were $214,677 or18.84 % of
revenues compared to $ 176,701 or 16.17 % of revenues for the
comparable three month period ended October 1, 1999. This reflected an
increase of 22 % and reflects management's efforts to increase sales
outside of the governmental area.
-14-
<PAGE>
IEH CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
COMPARATIVE ANALYSIS (continued)
Interest expense was $37,588 or 3.24% of revenues for the period ended
September 29, 2000 as compared to $36,416 or 3.33 % of revenues in the
three month period ended October 1, 1999. This increase of 3% reflects
an increase in borrowing by the Company in the current fiscal period.
Depreciation and amortization of $67,320 or 5.87 % of revenues was
reported for the three month period ended September 29, 2000 . This
reflects a decrease of 11 % from the comparable three month period
ended October 1, 1999 of $75,525 or 6.91% of revenues. The decrease is
a result of fixed assets being fully depreciated during the three month
period ended September 29, 2000.
The Company reported a net loss of $372 for the three months ended
September 29, 2000, representing basic loss per common share of $.001
as compared to a basic loss of $1,968 or $.008 per common share for the
three months ended October 1, 1999.
YEAR 2000 UPDATE
Subject to continued monitoring of third party suppliers, IEH
Corporation's year 2000 program ("Program") is complete, and no
material problems have arisen since the end of calendar year 1999. The
Program addressed the issue of computer programs and embedded computer
chips being unable to distinguish between the year 1900 and the year
2000. All of the Company's business computer systems are year 2000
ready.
-15-
<PAGE>
IEH CORPORATION
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27. Financial Data Schedule
(b) Reports on Form 8-K during Quarter
None
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
has duly cause this report on Form 10QSB to be signed on its behalf by the
undersigned, thereunto duly authorized.
IEH CORPORATION
(Registrant)
November 10, 2000 /s/ Michael Offerman
-----------------------------
Michael Offerman
President
November 10, 2000 /s/ Robert Knoth
-----------------------------
Robert Knoth
Chief Financial Officer
