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<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended Commission File Number
June 30, 1995 0-4671
ISOMET CORPORATION
State of Incorporation IRS Employer Identification
New Jersey No. 22-1591074
Address of Principal Executive Offices
5263 Port Royal Road
Springfield, Virginia 22151
Registrant's Telephone Number: (703) 321-8301
Common Shares Outstanding on June 30, 1995: 1,905,590
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 preceeding 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 ninety (90) days.
x Yes No
----- -----
<PAGE>
ISOMET CORPORATION
Part 1: Financial Information
------------------------------
Item 1: Financial Statements
-----------------------------
A. Statement of Income (1) (2) (3) (000 omitted)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
1995 1994 1995 1994
-------------------- -------------------
<S> <C> <C> <C> <C>
1. Revenues
a. Sales $1,365 $1,343 $2,567 $2,797
b. Interest Income 5 1 6 1
c. Other Income 3 -- 6 --
------ ------ ------ ------
$1,373 $1,344 $2,579 $2,798
------ ------ ------ ------
2. Costs and Expenses
a. Cost of Sales $ 914 $ 834 $1,697 $1,724
b. Selling, General & Administrative 321 323 690 660
c. Research & Development 18 80 59 193
d. Interest Expense 51 55 102 103
e. Non-Recurring Charges -
Isomet Japan -- -- -- 274
------ ------ ------ ------
Total Costs and Expenses $1,304 $1,292 $2,548 $2,954
------ ------ ------ ------
3. Income (Loss) Before Taxes on Income &
Extraordinary Items $ 69 $ 52 $ 31 $ (156)
4. Provisions for Taxes on Income 1 1 1 1
------ ------ ------ ------
5. Income (Loss) Before Extraordinary Items $ 68 $ 51 $ 30 $ (157)
6. Extraordinary Item - Gain on Disposal of
Subsidiary -- -- -- 52
------ ------ ------ ------
7. Net Income (Loss) $ 68 $ 51 $ 30 $ (105)
------ ------ ------ ------
8. Earnings (Loss) Per Share:
Income (Loss) Before Extraordinary Item $ .04 $ .03 $ .02 $ (.09)
Extraordinary Item -- -- -- .03
------ ------ ------ ------
Net Income (Loss) Per Share $ .04 $ .03 $ .02 $ (.06)
------ ------ ------ ------
9. Weighted Average Number of Shares
Outstanding 1,905,600 1,905,600 1,905,600 1,905,600
10. Dividends Per Share -- -- -- --
</TABLE>
(1) This Financial Statement is unaudited.
(2) The results for interim periods are not necessarily indicative of
results to be expected for the year due to:
a. Fluctuations in order receipt and customer delivery.
b. Fluctuations in yield in manufacturing processes may cause
fluctuations in operating results for interim periods.
(3) In the opinion of management, all adjustments have been made which are
necessary to reflect a fair statement of the results for the three and
six months ended June 30, 1995 and June 30, 1994.. All such adjustments
are of a normal and recurring nature.
<PAGE>
ISOMET CORPORATION
Financial Statements
B. Balance Sheet (1) (000 Omitted)
<TABLE>
<CAPTION>
June 30 December 31
1995 1994
-----------------------
<S> <C> <C>
Current Assets
Cash and Equivalent $ 146 $ 293
Accounts Receivable, Net 981 953
Other Current Assets 490 421
Inventories (2) 3,166 3,129
------ ------
$4,783 $4,796
------ ------
Property and Equipment at Cost $2,823 $2,797
Less Accumulated Depreciation 2,435 2,387
------ ------
$ 388 $ 410
------ ------
Other Assets $ 95 $ 83
------ ------
$5,266 $5,289
------ ------
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts Payable 298 $ 296
Accrued Liabilities 321 306
Notes Payable to Banks 1,585 319
Notes Payable to Others 64 51
------ ------
$2,268 $ 972
Long Term Liabilities $ 18 $1,405
------ ------
Minority Interest in Consolidated Subsidiary 7 7
------ ------
Stockholders' Equity (Deficit (3))
Common Stock Par Value $1 Per Share:
Authorized 2,500,000 Shares; Issued and
Outstanding: $1,906 $1,906
Capital Contributed in Excess of Par Value 4,221 4,221
Unamortized Deferred Compensation (122) (138)
Accumulated Deficit (3,108) (3,138)
Foreign Exchange Adjustment 76 54
------ ------
2,973 2,905
------ ------
$5,266 $5,289
------ ------
(1) Unaudited, Subject to Year-End Adjustments
(2) Inventory Breakdown
Parts and Raw Material $ 718 1,171
Work in Process 1,566 1,466
Finished Goods 882 492
------ ------
$3,166 $3,129
------ ------
(3) The number of shares of common stock reserved for
issuance upon the exercise of options granted or to be
granted. 245,000 245,000
</TABLE>
<PAGE>
ISOMET CORPORATION
Financial Statements
C. Statement of Cash Flows
Six Months Ended June 30
(000 Omitted)
<TABLE>
<CAPTION>
1995 1994
----------------------------
<S> <C> <C>
Cash Flows From Operating Activities
Net Income (Loss) $ 30 $(105)
Adjustments to Reconcile Net Income (Loss) to Net
Cash Provided by Operating Activities
Depreciation & Amortization $ 46 $ 41
Amortization of Deferred Compensation 16 16
Changes in Assets & Liabilities
(Increase) Decrease in Accounts Receivable (28) 602
(Increase) Decrease in Other Current Assets (69) (83)
(Increase) Decrease in Inventories (37) 181
Increase (Decrease) in Accounts Payable 2 (39)
Increase (Decrease) in Accrued Liabilities 15 (71)
(Increase) Decrease in Deposits (12) (48)
----- -----
Total Adjustments $ (67) $ 599
----- -----
Net Cash Provided (Used) by Operating Activities $ (37) $ 494
----- -----
Cash Flows From Investing Activities
Proceeds from Disposal of Subsidiary $ - $ 82
Purchase of Property & Equipment - -
Proceeds From Sale of Property & Equipment 4 6
----- -----
Net Cash (Used) by Investing Activities $ 4 $ 88
----- -----
Cash Flows From Financing Activities
Proceeds of Long-Term Debt and Notes Payable $ 93 $ 31
Principal Payments Under Long Term Debt
& Notes Payable (185) (826)
----- -----
Net Cash Provided (Used) by Financing Activities $ (92) $(795)
----- -----
Effect of Exchange Rate Changes on Cash $ (22) $ (21)
----- -----
Net Increase (Decrease) in Cash $(147) $(234)
----- -----
Cash at Beginning of Year $ 293 $ 343
----- -----
Cash at June 30 $ 146 $ 109
----- -----
Supplemental Disclosures of Cash Flow Information
Cash Paid During the Year for:
Interest $ 99 $ 93
----- -----
Income Taxes $ $ 1
----- -----
</TABLE>
<PAGE>
ISOMET CORPORATION
------------------
ITEM 2: MANAGEMENT'S ANALYSIS OF QUARTERLY INCOME STATEMENTS
-------------------------------------------------------------
Revenue for the second quarter of 1995 totaled $1,373,000, slightly higher
than $1,344,000 in 1994. Net profit this year was $68,000, or $.04 per share
compared to $51,000 or $.03 per share last year, as operating cost levels this
year were relatively consistent with those experienced in the second quarter of
1994.
For the six months ended June 30, 1995, revenue of $2,579,000 was
approximately $220,000 below the 1994 level. This decline was primarily due to
a lower level of color scanner shipments in the first quarter of 1995, compared
to the same period in 1994. For the first half of 1995 net earnings were
$30,000 or $.02 per share, compared to a net loss in 1994 of $(105,000) or
$(.06) per share. The 1994 results included a non-recurring net charge to
income of $222,000 related to Isomet Japan's first quarater of 1994 operations
and the sale of this subsidiary, effective March 31, 1994.
New orders totaled $1,071,000 for the quarter and $2,695,000 for the
current six month period, compared to $1,626,000 and $2,821,000, respectively,
last year. Unfilled orders on June 30, 1995 totaled $1,138,000, compared to
$1,127,000 on the same date last year and $943,000 on December 31, 1994.
<PAGE>
ISOMET CORPORATION
------------------
Part II: Other Information
1. Legal Proceedings
None
2. Change in Securities
None
3. Defaults Upon Senior Securities
None
4. Submission of Matters to a Vote of Security Holders
At the Company's May 25, 1995 Annual Meeting of shareholders,
the following directors were elected:
Leon Bademian
Lee R. Marks
Thomas P. Meloy, Jr.
Jerry W. Rayburn
Henry Zenzie
5. Other Information
None
6. Exhibits and Reports on Form 8K
a. Exhibits -
Exhibit 27 - Financial Data Schedule for
quarter ended June 30, 1995.
b. No reports on Form 8K have been filed by the Registrant
during the quarter ended June 30, 1995.
<PAGE>
ISOMET CORPORATION
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Quarterly Report to be signed on its behalf by
the undersigned thereunto duly authorized.
ISOMET CORPORATION
---------------------------
Registrant
By /s/ Jerry W. Rayburn
---------------------------
Jerry W. Rayburn
Executive Vice President
Finance and Treasurer
Date: August 7, 1995
--------------
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from June 30,
1995 10QSB and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> $U.S
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> APR-01-1995
<PERIOD-END> JUN-30-1995
<EXCHANGE-RATE> 1
<CASH> 146
<SECURITIES> 0
<RECEIVABLES> 981
<ALLOWANCES> 1
<INVENTORY> 3,166
<CURRENT-ASSETS> 4,783
<PP&E> 2,823
<DEPRECIATION> 2,435
<TOTAL-ASSETS> 5,266
<CURRENT-LIABILITIES> 2,268
<BONDS> 0
<COMMON> 1,906
0
0
<OTHER-SE> 1,067
<TOTAL-LIABILITY-AND-EQUITY> 5,266
<SALES> 1,365
<TOTAL-REVENUES> 1,373
<CGS> 914
<TOTAL-COSTS> 1,304
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 1
<INTEREST-EXPENSE> 51
<INCOME-PRETAX> 69
<INCOME-TAX> 1
<INCOME-CONTINUING> 68
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 68
<EPS-PRIMARY> .04
<EPS-DILUTED> .04
</TABLE>
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