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Previous: IES UTILITIES INC, 10-Q, 1996-11-13 |
Next: RAYONIER INC, 10-Q, 1996-11-13 |
<PAGE>
SECURITIES AND EXCHANAGE 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, 1996
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, 1996: 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
1996 1995 1996 1995
------------------------------------------------
<S> <C> <C> <C> <C>
1. Revenues
a. Sales $ 1,167 $ 1,148 $ 3,910 $ 3,715
b. Interest Income 1 1 3 7
c. Other Income - 1 - 7
------------------------------------------------
$ 1,168 $ 1,150 $ 3,913 $ 3,729
------------------------------------------------
2. Cost and Expenses
a. Cost of Sales $ 870 $ 777 $ 2,765 $ 2,473
b. Selling, General & Admin 304 324 961 1,015
c. Research & Development - 2 8 61
d. Interest Expense 38 48 117 150
------------------------------------------------
Total Cost and Expenses $ 1,212 $ 1,151 $ 3,851 $ 3,699
------------------------------------------------
3. Income (Loss) Before Taxes
on Income $ (44) $ (1) $ 62 $ 30
4. Provisions for Taxes on Income 1 1 2 2
------------------------------------------------
5. Net Income (Loss) $ (45) $ (2) $ 60 $ 28
------------------------------------------------
Net Income (Loss) Per Share $ (.02) $ - $ .03 $ .01
------------------------------------------------
6. Weighted Average Number of
Shares Outstanding 1, 905,600 1, 905,600 1, 905,600 1, 905,600
7. 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 months ended September 30, 1996 and September 30, 1995.
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
1996 1995
--------------------
<S> <C> <C>
Current Assets
Cash and Equivalent $ 11 $ 86
Accounts Receivable, Net 825 832
Other Current Assets 396 392
Inventories (2) 3,639 3,249
----------------------------
$ 4,871 $ 4,559
----------------------------
Property and Equipment at Cost $ 2,507 $ 2,495
Less Accumulated Depreciation (2,191) (2,121)
----------------------------
$ 316 $ 374
----------------------------
Other Assets $ 52 $ 58
----------------------------
$ 5,239 $ 4,991
----------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts Payable $ 497 $ 303
Accrued Liabilities 465 312
Notes Payable to Banks 1,289 326
Notes Payable to Others 7 23
----------------------------
$ 2,258 $ 964
----------------------------
Long Term Liabilities $ 17 $ 1,122
----------------------------
Minority Interest in Colsolidated
Subsidiary $ 4 $ 4
----------------------------
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 (74) (102)
Accumulated Deficit (3,123) (3,182)
Foreign Exchange Adjustment 30 58
----------------------------
$ 2,960 $ 2,901
----------------------------
$ 5,239 $ 4,991
----------------------------
(1) Unaudited. Subject to Year-End
Adjustments
(2) Inventory Breakdown
Parts and Raw Material $ 1,425 $ 1,110
Work in Process 1,523 1,599
Finished Goods 691 540
----------------------------
$ 3,639 $ 3,249
----------------------------
(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)
1996 1995
-------------------
<S> <C> <C>
Cash Flow From Operating Activities
Net Income (Loss) $ 60 $ 28
Adjustment to Reconcile Net Income (Loss)
to Net Cash Provided by Operating Activities
Depreciation and Amortization $ 67 $ 69
Amortization of Deferred Compensation 28 24
Changes in Assets & Liabilities:
(Increase) Decrease in Accts Receivable 7 28
(Increase) Decrease in Other Current Assets (4) 4
(Increase) Decrease in Inventories (390) (138)
Increase (Decrease) in Accts Payable 194 (9)
Increase (Decrease) in Accrued Liabilities 153 12
(Increase) Decrease in Deposits 6 (12)
-------------------
Total Adjustments: $ 61 $ (22)
-------------------
Net Cash Provided (Used) by Oper Activities $ 121 $ 6
-------------------
Cash Flows from Investing Activities:
Purchase of Property and Equipment $ (11) $ (28)
Proceeds from Sale of Property and Equip - 3
-------------------
Net Cash (Used) by Investing Activities $ (11) $ (25)
-------------------
Cash Flows from Financing Activities:
Proceeds of Long-Term Debt/Notes Payable $ 61 $ 93
Principal Payments Under Long Term Debt
and Notes Payable (218) (274)
-------------------
Net Cash Provided (Used) by Financing
Activities $(157) $(181)
-------------------
Effect of Exchange Rate on Changes in Cash $ (28) $ (23)
-------------------
Net Increase (Decrease) in Cash $ (75) $(223)
-------------------
Cash at Beginning of Year $ 86 $ 293
-------------------
Cash at September 30 $ 11 $ 70
-------------------
Supplemental Disclosures of Cash Flow Info
Cash Paid During the Year for:
Interest $ 114 $ 150
-------------------
Income Taxes $ - $ -
-------------------
</TABLE>
<PAGE>
ISOMET CORPORATION
------------------
ITEM 2: MANAGEMENT'S ANALYSIS OF QUARTERLY INCOME STATEMENTS
-------------------------------------------------------------
Revenue for the third quarter of 1996 totaled $1,167,000, compared to
$1,150,000 in 1995. A net loss of $(45,000) or $(.02) per share was incurred for
the current quarter, compared to a net loss of $(2,000) or -0- per share in the
same period of 1995.
For the nine months ended September 30, 1996, revenue totaled $3,914,000,
approximately $185,000 higher than the 1995 level. This increase is attributable
primarily to higher shipment levels of component products this year vs. 1995.
The current nine month period resulted in net earnings of $60,000 or $.03 per
share, compared to earnings of $28,000 or $.01 per share in last year's same
period. Lower period costs, including interest expenses, accounted for most of
the income improvement.
New orders totaled $987,000 for the quarter and $3,423,000 for the current
nine month period, compared to $861,000 and $3,556,000, respectively, last year.
Unfilled orders on September 30, 1996 totaled $5,333,000, compared to $771,000
on the same date last year and $5,861,000 on December 31, 1996.
Effective February 8, 1996, the Company's loan agreement with NationsBank
was renewed through April 1, 1997 with a fixed principal repayment schedule of
$20,000 per month. During the twelve month period from April 1, 1996 - March 31,
1997, the Company expects to generate sufficient cash flow from operations to
meet its liquidity needs and to renew its existing loan agreement in April 1997.
As of September 30, 1996, 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. Exhibits - 27 - Financial Data Schedule for quarter
ended September 30, 1996.
b. No reports on Form 8K have been filed by the Registrant
during the quarter ended September 30, 1996.
<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
/s/ Isomet Corporation
-----------------------
Registrant
By: /s/ Jerry W. Rayburn
------------------------
Jerry W. Rayburn
Executive Vice President
Finance and Treasurer
Date: November 13, 1996
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM (IDENTIFY
SPECIFIC FINANCIAL STATEMENTS) AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JUL-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 11
<SECURITIES> 0
<RECEIVABLES> 825
<ALLOWANCES> 1
<INVENTORY> 3,639
<CURRENT-ASSETS> 4,871
<PP&E> 2,507
<DEPRECIATION> 2,191
<TOTAL-ASSETS> 5,239
<CURRENT-LIABILITIES> 2,258
<BONDS> 0
0
0
<COMMON> 1,906
<OTHER-SE> 1,055
<TOTAL-LIABILITY-AND-EQUITY> 5,239
<SALES> 1,167
<TOTAL-REVENUES> 1,167
<CGS> 870
<TOTAL-COSTS> 1,212
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 1
<INTEREST-EXPENSE> 38
<INCOME-PRETAX> (45)
<INCOME-TAX> 0
<INCOME-CONTINUING> (45)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (45)
<EPS-PRIMARY> (.02)
<EPS-DILUTED> (.02)
</TABLE>
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