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Previous: IRWIN FINANCIAL CORPORATION, 10-Q, EX-27, 2000-08-10 |
Next: ISOMET CORP, 10QSB, EX-27, 2000-08-10 |
<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 No.
June 30, 2000 0-4671
ISOMET CORPORATION
State of Incorporation IRS Employer Identification No.
New Jersey 22-1591074
Address of Principal Executive Offices
5263 Port Royal Road
Springfield, VA 22151
Registrant's Telephone Number: (703) 321-8301
Common Shares Outstanding on June 30, 2000: 1,927,590
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 twelve (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. Consolidated Statements of Income (1) (2) (3) (000 omitted)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
2000 1999 2000 1999
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Revenues
a. Sales $ 2,122 $ 1,034 $ 4,746 $ 3,605
b. Interest Income 30 -- 57 --
c. Other Income 7 29 10 47
---------------------------------------------------------------------
$ 2,159 $ 1,063 $ 4,813 $ 3,652
2. Cost and Expenses
a. Cost of Sales $ 1,267 $ 641 $ 3,065 $ 2,431
b. Selling, General & Admin 449 342 789 647
c. Research & Development 3 88 20 88
d. Interest Expense 8 14 16 29
---------------------------------------------------------------------
Total Costs and Expenses $ 1,727 $ 1,085 $ 3,890 $ 3,195
---------------------------------------------------------------------
3. Income (Loss) Before Taxes on Income
& Extraordinary Items $ 432 $ (22) $ 923 $ 457
4. Provisions for Taxes on Income 162 5 348 183
---------------------------------------------------------------------
5. Net Income (Loss) $ 270 $ (27) $ 575 $ 274
---------------------------------------------------------------------
Basic Net Income (Loss) Per Share $ .14 $ (.01) $ .30 $ .14
---------------------------------------------------------------------
Diluted Net Income (Loss) Per Share $ .13 $ (.01) $ .28 $ .14
---------------------------------------------------------------------
Weighted Average Number of
Shares Outstanding 1,927,600 1,927,600 1,927,600 1,927,600
7. Weighted Average Number of Shares and
Stock Equivalents Outstanding 2,031,900 1,934,000 2,050,700 1,936,100
8. 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, 2000 and June 30, 1999. All such adjustments are of a
normal and recurring nature.
<PAGE>
ISOMET CORPORATION
Financial Statements
B. Consolidated Statements of Comprehensive Income (000 omitted)
Three Months Ended Six Months Ended
June 30 June 30
2000 1999 2000 1999
---------------------------------------------
Net Income (Loss) $ 270 $ (27) $ 575 $ 274
---------------------------------------------
Other Comprehensive Income
--------------------------
Foreign Currency Translation Adj. (53) (16) (36) (19)
---------------------------------------------
Comprehensive Income (Loss) $ 217 $ (43) $ 539 $ 255
---------------------------------------------
<PAGE>
ISOMET CORPORATION
Financial Statements
C. Segment Information Three Months Ended June 30 (000 omitted)
2000
Systems Components Total
----------------------------
Sales $ 684 $1,438 $2,122
Cost of Sales 735 532 1,267
------ ------ ------
Gross Profit $ (51) $ 906 $ 855
------ ------
General Corporate:
Interest Income and Other Revenue 37
Selling, General and Admin Expenses (449)
Product Development (3)
Interest Expense (8)
------
Net Income Before Income Taxes $ 432
------
1999
Systems Components Total
----------------------------
Sales $ 452 $ 582 $1,034
Cost of Sales 289 353 642
------ ------ ------
Gross Profit $ 163 $ 229 $ 392
------ ------
General Corporate:
Interest Income and Other Revenue 30
Selling, General and Admin Expenses (342)
Product Development (88)
Interest Expense (14)
------
Net Income (Loss) Before Income Taxes $ (22)
------
<PAGE>
ISOMET CORPORATION
Financial Statements
C. Segment Information Six Months Ended June 30 (000 omitted)
2000
Systems Components Total
---------------------------
Sales $ 1,931 $ 2,815 $ 4,746
Cost of Sales 1,721 1,344 3,065
------- ------- -------
Gross Profit $ 210 $ 1,471 $ 1,681
------- -------
General Corporate:
Interest Income and Other Revenue 67
Selling, General and Admin Expenses (789)
Product Development (20)
Interest Expense (16)
-------
Net Income Before Income Taxes $ 923
-------
1999
Systems Components Total
-----------------------------
Sales $ 2,279 $ 1,326 $ 3,605
Cost of Sales 1,669 762 2,431
------- ------- -------
Gross Profit $ 610 $ 564 $ 1,174
------- -------
General Corporate:
Interest Income and Other Revenue 47
Selling, General and Admin Expenses (647)
Product Development (88)
Interest Expense (29)
-------
Net Income Before Income Taxes $ 457
-------
<PAGE>
ISOMET CORPORATION
Financial Statements
D. Consolidated Balance Sheet (1) (000 omitted)
June 30 December 31
2000 1999
-----------------------
Current Assets
Cash and Investments $ 2,600 $ 2,189
Accounts Receivable Net 1,203 1,564
Other Current Assets 771 395
Inventories (2) 4,391 4,261
-----------------------
$ 8.965 $ 8,409
-----------------------
Property and Equipment at Cost $ 2,509 $ 2,423
Less Accumulated Depreciation 2,099 2,087
-----------------------
$ 410 $ 336
-----------------------
Other Assets $ 7 $ 7
-----------------------
Total Assets $ 9,382 $ 8,752
-----------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 466 $ 656
Accrued Liabilities 770 422
Notes Payable to Banks 185 178
-----------------------
$ 1,421 $ 1,256
-----------------------
Long Term Liabilities $ 135 $ 209
-----------------------
Total Liabilities $ 1,556 $ 1,465
-----------------------
Stockholders' Equity (3)
Common Stock Par Value $1 Per Share:
Authorized 2,500,000 Shares; Issued
And Outstanding: $ 1,928 $ 1,928
Capital Contributed in Excess of Par Value 4,232 4,232
Retained Earnings 1,672 1,096
Foreign Exchange Adjustment (6) 31
-----------------------
Total Stockholders' Equity $ 7,826 $ 7,287
-----------------------
$ 9,382 $ 8,752
-----------------------
(1) Unaudited. Subject to Year-End Adjustments
(2) Inventory Breakdown
Parts and Raw Material $ 1,159 $ 563
Work in Process 2,390 3,170
Finished Goods 842 528
-----------------------
$ 4,391 $ 4,261
-----------------------
(3) The number of shares of common stock
reserved for issuance upon the exercise
of options granted or to be granted: 253,000 253,000
<PAGE>
ISOMET CORPORATION
Financial Statements
E. Consolidated Statement of Cash Flows Six Months Ended June 30 (000 omitted)
2000 1999
-------------------
Cash Flows from Operating Activities
Net Income (Loss) $ 575 $ 274
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities
Depreciation and Amortization $ 12 $ 15
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable 361 1,377
(Increase) Decrease in Other Current Assets (376) (119)
(Increase) Decrease in Inventories (130) 615
Increase (Decrease) in Accounts Payable (190) (654)
Increase (Decrease) in Accrued Liabilities 348 197
(Increase) Decrease in Deposits -- --
-------------------
Total Adjustments $ 25 $ 1,431
-------------------
Net Cash Provided (Used) by Operating Activities $ 600 $ 1,705
-------------------
Cash Flows from Investing Activities
Purchase of Property and Equipment $ (86) $ 6
Proceeds from Sale of Property and Equipment -- --
-------------------
Net Cash (Used) by Investing Activities $ (86) $ 6
-------------------
Cash Flows from Financing Activities
Proceeds of Long-Term Debt and Notes Payables $ 35 $ (29)
Proceeds from Exercise of Incentive Stock Options -- --
Principal Payments Under Long-Term Debt and
Notes Payable (102) (120)
-------------------
Net Cash Provided (Used) by Financing Activities $ (67) $ (149)
-------------------
Effect of Exchange Rate Changes on Cash $ (36) $ (19)
-------------------
Net Increase (Decrease) in Cash $ 411 $ 1,543
-------------------
Cash and Investments at Beginning of Year $ 2,189 $ 1,427
-------------------
Cash and Investments at June 30 $ 2,600 $ 2,970
-------------------
Supplemental Disclosures of Cash Flow Information
Cash Paid During the Year for:
Interest $ 8 $ 29
-------------------
Income Taxes $ 537 $ 146
-------------------
<PAGE>
ISOMET CORPORATION
------------------
Item 2: Management's Analysis of Quarterly Income Statements
------------------------------------------------------------
Revenue for the second quarter of 2000 of $2,159,000 was a significant
increase from $1,063,000 in the same quarter last year. This difference
primarily reflects expanded systems sales of $232,000 and component sales of
$856,000 over last year's second quarter. For the six months ended June 30,
2000, revenue increased to $4,813,000 from $3,652,000 last year. During this
period, systems sales decreased $348,000 while sales of components increased
$1,489,000, as compared to last year's first six months.
On the higher revenue level, net earnings were $270,000 or $.13 per share
(diluted) vs. a net loss last year of $(27,000) or $(.01) per share. For the
current six month period net income was $575,000 or $.28 per share (diluted),
compared to $274,000 or $.14 per share (diluted) last year. The increase in net
income of $301,000 resulted from the following factors:
1. Increase in Gross Profit $507,000
2. Increase in Interest and Other Income 20,000
3. Increase in Selling, G & A Costs (142,000)
4. Decrease in Product Development Costs 68,000
5. Decrease in Interest Expense 13,000
6. Increase in Income Tax Charge (165,000)
--------
$301,000
New orders totaled $1,478,000 for the quarter and $4,920,000 for the
current six month period, compared to $838,000 and $1,695,000, respectively last
year. Unfilled orders on June 30, 2000 totaled $3,710,000, compared to
$1,370,000 on the same date last year and $3,577,000 on December 31, 1999.
As of June 30, 2000, the Company has no material commitments for capital
expenditures. However, our business plan for the period July 1, 2000 - June 30,
2001 will require the acquisition of significant capital equipment items, which
we plan to fund with leasing arrangements. Otherwise, over this next twelve
month period, the Company expects to generate sufficient cash flow from
operations to meet it's liquidity needs.
<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 June 1, 2000 Annual Meeting of Shareholders, the
Following directors were elected:
Leon Bademian
Lee R. Marks
Thomas P. Meloy
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, 2000.
b. There were no 8K filings for the quarter ended June 30, 2000.
<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 10, 2000
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