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Previous: IBP INC, 10-Q, 1995-11-13 |
Next: RAYONIER INC, 10-Q, 1995-11-13 |
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1995
Commission File No. 0-4671
ISOMET CORPORATION
State of Incorporation - New Jersey
IRS Employer Identification 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 September 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 2: Financial Statements
----------------------------
A. Statement of Income (1) (2) (3) (000 omitted)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
1. Revenues
a. Sales $ 1,148 $ 1,515 $ 3,715 $ 4,311
b. Interest Income 1 1 7 3
c. Other Income 1 - 7 -
---------- ---------- ---------- ----------
$ 1,150 $ 1,516 $ 3,729 $ 4,314
---------- ---------- ---------- ----------
2. Cost and Expenses
a. Cost of Sales $ 777 $ 1,042 $ 2,473 $ 2,766
b. Selling, General and Administrative 324 309 1,015 969
c. Research and Development 2 19 61 212
d. Interest Expense 48 58 150 161
e. Non-Recurring Charges - Isomet Japan - - - 274
---------- ---------- ---------- ----------
Total Cost and Expenses $ 1,151 $ 1,428 $ 3,699 $ 4,382
---------- ---------- ---------- ----------
3. Income (Loss) Before Taxes on Income
and Extraordinary Items $ (1) $ 88 $ 30 $ (68)
4. Provisions for Taxes on Income 1 1 2 2
---------- ---------- ---------- ----------
5. Income (Loss) Before Extraordinary Items $ (2) $ 87 $ 28 $ (70)
6. Extraordinary Item - Gain on Disposal
of Subsidiary - - - 52
---------- ---------- ---------- ----------
7. Net Income (Loss) $ (2) $ 87 $ 28 $ (18)
---------- ---------- ---------- ----------
8. Earnings (Loss) Per Share:
Income (Loss) Before Extraordinary Item $ - $ .05 $ .01 $ (.04)
Extraordinary Item - - - .03
---------- ---------- ---------- ----------
Net Income (Loss) Per Share $ - $ .05 $ .01 $ (.01)
---------- ---------- ---------- ----------
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 mangement, all adjustments have beeen made which are
necessary to reflect a fair statement of the results for the three and nine
months ended September 30, 1995 and September 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>
September 30 December 31
1995 1994
------------- ------------
<S> <C> <C>
Current Assets
Cash and Equivalent $ 70 $ 293
Accounts Receivable, Net 925 953
Other Current Assets 417 421
Inventories (2) 3,267 3,129
-------- --------
$ 4,679 $ 4,796
-------- --------
Property and Equipment at Cost $ 2,831 $ 2,797
Less Accumulated Depreciation 2,456 2,387
-------- --------
$ 375 $ 410
-------- --------
Other Assets $ 95 $ 83
-------- --------
$ 5,149 $ 5,289
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts Payable $ 287 $ 296
Accrued Liabilities 318 306
Notes Payable to Banks 1,496 319
Notes Payable to Others 42 51
-------- --------
$ 2,143 $ 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 (113) (138)
Accumulated Deficit (3,110) (3,138)
Foreign Exchange Adjustment 77 54
-------- --------
$ 2,981 $ 2,905
-------- --------
$ 5,149 $ 5,289
-------- --------
(1) Unaudited. Subject to Year-End Adjustments
(2) Inventory Breakdown
Parts and Raw Material $ 720 $ 1,171
Work in Process 1,580 1,466
Finished Goods 967 492
-------- --------
$ 3,267 $ 3,129
-------- --------
(3) The number of shares of common stock reserved
for issuance upon the exercise of options granted
or to be granted. 257,000 257,000
</TABLE>
<PAGE>
ISOMET CORPORATION
Financial Statements
--------------------
C. Statement of Cash Flows
Nine Months Ended September 30
<TABLE>
<CAPTION>
(000 omitted)
1995 1994
----- -----
<S> <C> <C>
Cash Flow From Operating Activities
Net Income (Loss) $ 28 $ (70)
Adjustment to Reconcile Net Income (Loss) to Net
Cash Provided by Operating Activities
Depreciation & Amortization $ 69 $ 64
Amortization of Deferred Compensation 24 24
Changes in Assets & Liabilities:
(Increase) Decrease in Accounts Receivable 28 489
(Increase) Decrease in Other Current Assets 4 31
(Increase) Decrease in Inventories (138) 308
Increase (Decrease) in Accounts Payable (9) (122)
Increase (Decrease) in Accrued Liabilities 12 (155)
(Increase) Decrease in Deposits (12) (48)
----- -----
Total Adjustments: $ (22) $ 591
----- -----
Net Cash Provided (Used) by Operating Activities $ 6 $ 521
----- -----
Cash Flows from Investing Activities
Proceeds from Disposal of Subsidiary $ - $ 82
Purchase of Property and Equipment (28) (26)
Proceeds from Sale of Property and Equipment 3 6
----- -----
Net Cash (Used) by Investing Activities $ (25) $ 62
----- -----
Cash Flows from Financing Activities
Proceeds of Long-Term Debt and Notes Payable $ 93 $ 31
Principal Payments Under Long Term Debt and
Notes Payable (274) (868)
----- -----
Net Cash Provided (Used) by Financing Activities: $(181) $(837)
----- -----
Effect of Exchange Rate on Changes in Cash $ (23) $ (37)
----- -----
Net Increase (Decrease) in Cash $(223) $(291)
----- -----
Cash at Beginning of Year $ 293 $ 343
----- -----
Cash at September 30 $ 70 $ 52
----- -----
Supplemental Disclosures of Cash Flow Information
Cash Paid During the Year for:
Interest $ 150 $ 161
----- -----
Income Taxes $ - $ 1
----- -----
</TABLE>
<PAGE>
ISOMET CORPORATION
------------------
Item 2: Management's Analysis of Quarterly Income Statements
Revenue for the third quarter of 1995 totaled $1,150,000, $366,000 below
the 1994 total of $1,516,000. Due primarily to lower gross profit from the
decreased revenue, a net loss of $(2,000) or $.00 per share was incurred in the
current quarter, compared to a net profit of $87,000 or $.05 per share last
year.
For the nine months ended September 30, 1995, revenue of $3,729,000 was
$585,000 below the 1994 level. On this lower revenue level the Company's net
earnings for the first three quarters of 1995 were $28,000 or $.01 per share,
compared to a net loss in 1994 of $(18,000) or $(.01) per share. The 1994
results included a non-recurring net charge to income of $222,000 related to
Isomet Japan's operations in the first quarter of 1994 and the sale of the
subsidiary effective March 31, 1994.
Lower revenue for the quarter and nine months ended September 30, 1995 is
almost entirely due to decreased unit sales of digital color scanners in Japan
and in the United States, due to price and competitive factors.
New orders totaled $861,000 for the quarter and $3,556,000 for the current
nine month period, compared to $1,647,000 and $4,468,000, respectively, last
year. Unfilled orders on September 30, 1995 totaled $771,000, compared to
$1,297,000 on the same date last year and $943,000 on December 31, 1994.
Effective January 8, 1995, the Company's loan agreement with Nations Bank
was renewed for a one year period with a fixed principal repayment schedule of
$20,000 per month. Consequently, this debt, in the amount of $1,405,000, is
classified as short-term on the September 30, 1995 quarterly balance sheet.
During the twelve month period from September 1, 1995 - August 31, 1996, the
Company expects to generate sufficient cash flow from operations to meet it's
liquidity needs and to either renew it's existing loan agreement in January 1996
or to replace it from other lending sources.
As of September 30, 1995 the Company has no material commitments for
capital expenditures and accordingly no funds from sources other than internally
generated funds are considered necessary over the next twelve months.
<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
None
5. Other Information
None
6. Exhibits and Reports on Form 8K
a. Exhibit 27 - Financial Data Schedule for quarter ended
September 30, 1995.
b. No reports on form 8K have been filed by the Registrant
during the quarter ended September 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:
----------------------
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from September
30, 1995 10QSB and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 70
<SECURITIES> 0
<RECEIVABLES> 925
<ALLOWANCES> 1
<INVENTORY> 3,267
<CURRENT-ASSETS> 4,679
<PP&E> 2,832
<DEPRECIATION> 2,456
<TOTAL-ASSETS> 5,149
<CURRENT-LIABILITIES> 2,143
<BONDS> 0
<COMMON> 1,906
0
0
<OTHER-SE> 1,075
<TOTAL-LIABILITY-AND-EQUITY> 5,149
<SALES> 1,148
<TOTAL-REVENUES> 1,150
<CGS> 777
<TOTAL-COSTS> 1,151
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 1
<INTEREST-EXPENSE> 48
<INCOME-PRETAX> (2)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
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