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Previous: IES UTILITIES INC, 10-Q, 1997-08-13 |
Next: RAYONIER INC, 10-Q, 1997-08-13 |
<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 Commission File Number
June 30, 1997 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, 1997: 1,905,590
Indicate by check mark whether the registrant has (1) 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
rquirements 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
1997 1996 1997 1996
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
1. Revenues
a. Sales $ 2,401 $ 1,407 $ 4,104 $ 2,743
b. Interest Income 1 2 2 3
c. Other Income - - - -
--------- --------- --------- ---------
$ 2,402 $ 1,409 $ 4,106 $ 2,746
2. Cost and Expenses
a. Cost of Sales $ 1,594 $ 984 $ 2,679 $ 1,895
b. Selling, General & Admin 343 343 653 658
c. Research & Development - - - 8
d. Interest Expense 29 38 62 79
--------- --------- --------- ---------
Total Costs and Expenses $ 1,966 $ 1,365 $ 3,394 $ 2,640
--------- --------- --------- ---------
3. Income (Loss) Before Taxes on Income
& Extraordinary Items $ 436 $ 44 $ 712 $ 106
4. Provisions for Taxes on Income 169 1 278 1
--------- --------- --------- ---------
5. Net Income (Loss) $ 267 $ 43 $ 434 $ 105
--------- --------- --------- ---------
Net Income (Loss) Per Share $ .14 $ .02 $ .22 $ .06
--------- --------- --------- ---------
6. Weighted Average Number of
Shares Outstanding 1,948,500 1,905,600 1,948,500 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 and six
months ended June 30, 1997 and June 30, 1996. 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 Decmeber 31
1997 1996
-------- ------------
<S> <C> <C>
Current Assets
Cash and Equivalent $ 338 $ 201
Accounts Receivable Net 1,531 1,517
Other Current Assets 482 385
Inventories (2) 3,620 3,730
------- -------
$ 5,971 $ 5,833
------- -------
Property and Equipment at Cost $ 2,558 $ 2,561
Less Accumulated Depreciation (2,279) (2,245)
------- -------
$ 279 $ 316
------- -------
Other Assets $ 52 $ 52
------- -------
$ 6,302 $ 6,201
------- -------
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts Payable $ 495 $ 678
Accrued Liabilities 546 736
Notes Payable to Banks 1,126 324
Notes Payable to Others - -
------- -------
$ 2,167 $ 1,738
------- -------
Long Term Liabilities $ 11 $ 876
------- -------
Minority Interest in Consolidated Subsidiary $ - $ -
------- -------
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 (29) (65)
Accumulated Deficit (2,066) (2,501)
Foreign Exchange Adjustment 92 26
------- -------
$ 4,124 $ 3,587
------- -------
$ 6,302 $ 6,201
------- -------
(1) Unaudited. Subject to Year-End Adjustments
(2) Inventory Breakdown
Parts and Raw Material $1,715 $1,175
Work in Process 1,452 2,083
Finished Goods 453 472
------- -------
$ 3,620 $ 3,730
------- -------
(3) The number of shares of common stock
reserved for issuance upon the exercise of
options granted or to be granted: 247,500 254,500
</TABLE>
<PAGE>
ISOMET CORPORATION
Financial Statements
B. Statement of Cash Flows
Six Months Ended June 30
(000 omitted)
<TABLE>
<CAPTION>
1997 1996
-------- --------
<S> <C> <C>
Cash Flows From Operating Activities
Net Income (Loss) $ 435 $ 105
Adjustments to Reconcile Net Income (Loss) to Net
Cash Provided by Operating Activities
Depreciation and Amortization $ 34 $ 45
Amortization of Deferred Compensation 36 16
Changes in Assets and Liabilities
(Increase) Decrease in Accounts Receivable (50) (8)
(Increase) Decrease in Other Current Assets (61) (40)
(Increase) Decrease in Inventories 110 (66)
Increase (Decrease) in Accounts Payable (183) 92
Increase (Decrease) in Accrued Liabilities 210 53
(Increase) Decrease in Deposits (399) 5
----- -----
Total Adjustments $(303) $ 97
----- -----
Net Cash Provided (Used) by Operating Activities $ 132 $ 202
----- -----
Cash Flows from Investing Activities
Proceeds from Disposal of Subsidiary $ - $ -
Purchase of Property and Equipment 3 (10)
Proceeds from Sale of Property and Equipment - -
----- -----
Net Cash (Used) by Investing Activities $ 3 $ (10)
----- -----
Cash Flows From Financing Activities
Proceeds of Long-Term Debt and Notes Payable $ 3 $ 48
Principal Payments Under Long Term Debt and
Notes Payable (60) (150)
----- -----
Net Cash Provided (Used) by Financing Activities $ (57) $(102)
----- -----
Effect of Exchange Rate Changes on Cash $ 59 $ (45)
----- -----
Net Increase (Decrease) in Cash $ 137 $ 45
----- -----
Cash at Beginning of Year $ 201 $ 86
----- -----
Cash at June 30 $ 338 $ 131
----- -----
Supplemental Disclosures of Cash Flow Information
Cash Paid During the Year for:
Interest $ 62 $ 79
----- -----
Income Taxes $ 4 $ -
----- -----
</TABLE>
<PAGE>
ISOMET CORPORATION
------------------
Item 2: Management's Analysis of Quarterly Income Statements
-------------------------------------------------------------
Revenue for the second quarter of 1997 totaled $2,402,000, compared to
$1,409,000 in the same period of 1996. This major increase is due, primarily,
to scheduled deliveries of laser plotters to Polaroid Corporation pursuant to a
supply agreement the Company has with this customer.
For the six months ended June 30, 1997, revenue was $4,106,000, compared to
$2,746,000 in 1996. This increase of $1,360,000 is also due, primarily, to
deliveries against the Polaroid contract.
Net profit for the current quarter of $267,000 or $.14 per share compares to
$43,000 or $.02 per share in the second quarter of 1996. For the six months
ended June 30, 1997, net profit was $434,000 or $.22 per share (vs.) $105,000 or
$.06 per share last year. The significant improvement in net income in 1997 of
$329,000 for the first six months is primarily attributable to higher gross
profits from the increased revenue. The major elements that contributed to the
net income increase are as follows:
Increased Gross Profit $577,000
Decreased Period Costs 30,000
Increased Income Tax & Other (278,000)
--------
$329,000
New orders totaled $1,383,000 for the quarter and $2,945,000 for the current
six month period, compared to $1,153,000 and $2,436,000 respectively last year.
Unfilled orders on June 30, 1997 totaled $3,294,000, compared to $5,619,000 on
the same date last year and $4,549,000 on December 31, 1996.
Effective April 1, 1997, the Company's loan agreement with NationsBank was
renewed through April 1, 1998, with a faixed principal repayment schedule of
$20,000 per month. During the period from July 1, 1997 - June 30, 1998, the
Company expects to generate sufficient cash flow from operations to meet its
liquidity needs and to renew its existing loan agreement in April, 1998.
As of June 30, 1997, the Company has no material committments 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 11: 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 29, 1997 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 - 27 - Financial Data Schedule for quarter ended
June 30, 1997.
b. No reports on Form 8K have been filed by the Registrant
during the quarter ended June 30, 1997.
<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 13, 1997
---------------------------
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Isomet
Corporation Financial Statements 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-31-1997
<PERIOD-START> APR-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 338
<SECURITIES> 0
<RECEIVABLES> 1,531
<ALLOWANCES> 0
<INVENTORY> 3,620
<CURRENT-ASSETS> 5,971
<PP&E> 2,558
<DEPRECIATION> 2,279
<TOTAL-ASSETS> 6,302
<CURRENT-LIABILITIES> 2,167
<BONDS> 0
0
0
<COMMON> 1,906
<OTHER-SE> 2,218
<TOTAL-LIABILITY-AND-EQUITY> 6,302
<SALES> 2,401
<TOTAL-REVENUES> 2,402
<CGS> 1,594
<TOTAL-COSTS> 1,966
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 29
<INCOME-PRETAX> 436
<INCOME-TAX> 169
<INCOME-CONTINUING> 267
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 267
<EPS-PRIMARY> 14
<EPS-DILUTED> 14
</TABLE>
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