FORM 10-QSB/A
Amendment No. 1
(To include disclosure on Year 2000 issues)
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from ________ to ________
Commission File #0-11078
THE AMERICAN EDUCATION CORPORATION
(Exact name of registrant as specified in its charter)
Colorado
(State or other jurisdiction of incorporation, or organization)
84-0838184
(IRS Employer Identification number)
7506 North Broadway Extension, Suite 505, Oklahoma City, OK
73116
(Address of principal executive offices)
(405) 840-6031
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: NONE
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, par value $.025 per share
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.
YES X NO__
Number of shares of the registrant's common stock outstanding as
of September 30, 1998: 12,913,046
Transitional Small Business Disclosure Format
YES __ NO X
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Year 2000 Issue
Many existing computer systems use only the last two digits
to identify years in the date field. As a result, those systems
may not be able to properly identify the correct year after the
beginning of the year 2000, believing that "00" is referring to
the year 1900. Systems that do not properly recognize the correct
date could generate erroneous information or cause a system to
fail. This potential problem is generally referred to as the
"Year 2000 Issue".
The Company is continuing its review and assessment of the
potential effect of the Year 2000 Issue. Thus far, the Company
has completed the initial review of its information technology
systems, including both software and hardware, and determined
that they appear to be Year 2000 compliant. Additionally, the
Company had previously planned to upgrade its accounting and
reporting systems independent of Year 2000 considerations and
has selected a Year 2000 compliant system that is anticipated to
be installed by March 31, 1999. This installation date has not
been accelerated by Year 2000 concerns.
The Company has tested the educational software systems that
it produces for sale and believes they are Year 2000 compliant.
The Company is currently in the process of contacting
critical suppliers of products and services to determine the
extent to which the Company may be at risk if such parties
fail to resolve their own Year 2000 Issues. The Company will
assess and attempt to mitigate any risks that may be perceived by
such possible failures. The effect, if any, on the Company's
results of operations from the failure of third parties to be
Year 2000 compliant cannot be reasonably estimated.
The Company is still evaluating its non-information
technology systems such as telephones, utilities, alarm systems
and climate control systems and expects to complete its
evaluation by June 30, 1999. Based on its preliminary assessment,
the Company currently believes that these systems are or will be
Year 2000 compliant.
The Company has not yet developed a contingency plan but
will determine if it appears one may be necessary as the current
assessment is refined.
Based on the Company's overall current assessment to date,
no matters have been identified and the Company does not
currently believe that the Year 2000 Issue will have a material
adverse effect on the Company's financial position or results of
operations. The Company also believes any costs that may be
incurred relating to the identification or remediation of Year
2000 issues will not be material. The Company's beliefs and
expectations, however, are based on certain assumptions that may
prove to be inaccurate, especially those relating to third
parties over which the Company has no control. Potential sources
of risk include the inability of suppliers of goods or services
to be Year 2000 compliant, which could result in delays in
product deliveries or disruption of distribution channels.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
The American Education Corporation
January 20, 1999
By: /s/Jeffrey E. Butler,
Chief Executive Officer
Chairman of the Board
Treasurer
