<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
MARCH 31, 1995 0-4671
ISOMET CORPORATION
STATE OF INCORPORATION IRS EMPLOYER IDENTIFICATION
NEW JERSEY NO. 22-1591074
ADDRESS OF PRINCIPAL EXECUTIVE OFFICERS
5263 PORT ROYAL ROAD
SPRINGFIELD, VIRGINIA 22151
REGISTRANT'S TELEPHONE NUMBER: (703) 321-8301
COMMON SHARES OUTSTANDING ON MARCH 31, 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 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.
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
March 31
1995 1994
---------------------
<S> <C> <C>
1.) Revenues:
a. Sales $ 1,203 $ 1,453
b. Interest Income 1 1
c. Other Income 2 --
--------- ---------
$ 1,206 $ 1,454
--------- ---------
2.) Costs & Expenses:
a. Cost of Sales $ 783 $ 889
b. Selling, General & Administrative 369 337
c. Research & Development 40 113
d. Interest Expense 51 48
e. Non-recurring Charges-Isomet Japan -- 274
--------- ---------
Total Costs & Expenses $ 1,243 $ 1,661
--------- ---------
3.) Income (loss) before taxes on income &
extraordinary items $ (37) $ (207)
4.) Provision for taxes on income 1 1
--------- ---------
5.) Income (loss) before extraordinary items $ (38) $ (208)
6.) Extraordinary Items, Gain from
Disposal of Subsidiary (4) -- 52
--------- ---------
7.) Net Income (loss) $ (38) $ (156)
========= =========
8.) Earnings (loss) per share:
Income (loss) before extraordinary item $ (0.02) $ (0.11)
Extraordinary Item -- 0.03
--------- ---------
Net Income (loss) per share $ (0.02) $ (0.08)
========= =========
9.) Weighted Average Number of shares outstanding 1,905,590 1,905,590
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 major 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
month periods ended March 31, 1995 and March 31, 1994. All such
adjustments are of a normal and recurring nature.
<PAGE>
Financial Statements
B. Balance Sheet (1) (000 omitted)
<TABLE>
<CAPTION>
March 31 December 31
1995 1994
<S> <C> <C>
ASSETS
Current Assets
Cash and Equivalent $ 219 $ 293
Accounts Receivable, Net 938 953
Other Current Assets 438 421
Inventories (2) 3,249 3,129
-------- --------
$ 4,844 $ 4,796
Property and Equipment at Cost $ 2,814 $ 2,797
Less accumulated depreciation 2,420 2,387
-------- --------
$ 394 $ 410
-------- --------
Other Assets $ 101 $ 83
-------- --------
$ 5,339 $ 5,289
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts Payable $ 314 $ 296
Accrued Liabilities 350 306
Notes Payable to Banks 1,654 319
Notes Payable to Others 77 51
-------- --------
$ 2,395 $ 972
Long Term Liabilities $ 27 $ 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 (130) (138)
Accumulated Deficit (3,176) (3,138)
Foreign Exchange Adjustment 89 54
-------- --------
2,910 2,905
-------- --------
$ 5,339 $ 5,289
======== ========
(1) Unaudited, subject to year-end adjustments
(2) Inventory Breakdown
Parts and Raw Material $ 1,206 $ 1,171
Work in Process 1,459 1,466
Finished Goods 584 492
-------- --------
$ 3,249 $ 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>
Financial Statements
C. Statement of Cash Flows
Three Months Ended March 31, 1995
(000 omitted)
<TABLE>
<CAPTION>
1995 1994
------ ------
<S> <C> <C>
Cash Flows From Operating Activities
Net Income (Loss) $ (38) $ (208)
Adjustments to Reconcile Net Income (Loss) to Net
Cash Provided by Operating Activities
Depreciation & Amortization $ 23 $ 21
Amortization of Deferred Compensation 8 8
Changes in Assets & Liabilities
(Increase) Decrease in Accounts Receivable 15 308
(Increase) Decrease in Other Current Assets (17) (25)
(Increase) Decrease in Inventories (120) 210
Increase (Decrease) in Accounts Payable 18 (30)
Increase (Decrease) in Accrued Liabilities 44 (24)
(Increase) Decrease in Other Assets (18) (48)
------ ------
Total Adjustments $ (47) $ 420
------ ------
Net Cash Provided (Used) by Operating
Activities $ (85) $ 212
------ ------
Cash Flows From Investing Activities
Proceeds from Disposal of Subsidiary $ -- $ 82
Purchase of Property and Equipment -- --
Proceeds from Sale of Property & Equipment -- 6
------ ------
Net Cash (Used) by Financing Activities $ -- $ 88
Cash Flows from Financing Activities
Proceeds of Long-Term Debt and Notes Payable $ 153 $ 31
Principal Payments Under Long Term Debt
& Notes Payable (107) (577)
------ ------
Net Cash Provided (Used) by Financing Activities $ 46 $ (546)
------ ------
Effect of Exchange Rate Changes on Cash $ (35) $ 4
------ ------
Net Increase (Decrease) in Cash $ (74) $ (242)
------ ------
Cash at Beginning of Year $ 293 $ 343
------ ------
Cash at March 31 $ 219 $ 101
------ ------
Supplemental Disclosures of Cash Flow Information
Cash Paid During the Period for:
Interest $ 51 $ 31
------ ------
Income taxes $ -- $ 1
------ ------
</TABLE>
<PAGE>
Item 2: Management's Analysis of Quarterly Income Statements
Due to a lower level of color scanner shipments in this year's first
quarter, consolidated revenue decreased to $1,206,000 from $1,454,000 last year.
The first quarter of 1995 resulted in a consolidated net loss of $(38,000),
or $(.02) per share compared to $(156,000), or $(.08) per share in last year's
first period. The 1994 first quarter results included net non-recurring charges
from the disposal of our Japanese subsidiary of $(222,000), or $(.12) per share.
The quarterly cost of sales percentage increased to 65% from 61% in last year's
first quarter. This 65% however, is consistent with the percentage experienced
for fiscal year 1994. Period costs, in total, decreased by approximately $38,000
from last year's first quarter level. We expect period costs to remain
relatively constant over the balance of 1995.
New orders in the first quarter totaled $1,624,000 compared to $1,230,000
last year. Unfilled orders on March 31, 1995 totaled $1,456,000 compared to
$1,079,000 on the same date last year and $943,000 on December 31, 1994.
<PAGE>
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.) Exhibits - None
b.) No reports on Form 8K have been filed by the Registrant during the
quarter ended March 31, 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 & Treasurer
Date:
--------------------------
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ISOMET'S
FORM 10-Q FOR THE PEIOD ENDED MARCH 31, 1995 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> JAN-01-1995
<PERIOD-END> MAR-31-1995
<CASH> 219
<SECURITIES> 0
<RECEIVABLES> 938
<ALLOWANCES> 1
<INVENTORY> 3,249
<CURRENT-ASSETS> 4,844
<PP&E> 2,814
<DEPRECIATION> 2,420
<TOTAL-ASSETS> 5,339
<CURRENT-LIABILITIES> 2,395
<BONDS> 0
<COMMON> 1,906
0
0
<OTHER-SE> 1,004
<TOTAL-LIABILITY-AND-EQUITY> 5,339
<SALES> 1,203
<TOTAL-REVENUES> 1,206
<CGS> 783
<TOTAL-COSTS> 1,243
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 1
<INTEREST-EXPENSE> 51
<INCOME-PRETAX> (37)
<INCOME-TAX> 1
<INCOME-CONTINUING> (38)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (38)
<EPS-PRIMARY> (.02)
<EPS-DILUTED> (.02)
</TABLE>
