UNITED STATES
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 the quarterly period ended September 30, 1995
Commission File Number 0-11057
VICON FIBER OPTICS CORP.
(Exact name of small business issuer as specified in its
charter)
Delaware 13-
2615925 .
(State of Incorporation) (IRS Employer
Identification No)
90 Secor Lane, Pelham Manor, NY 10803
(Address of principal executive offices)
Issuer's telephone number (914) 738-5006
Check whether the issuer (1)filed all reports required to be
filed by Section 13 or 15 (d) of the Exchange Act during the
past 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
The number of shares outstanding of each of the issuers classes
of common equity, as the latest practicable date is:
Common Stock, $.01 par value 8,340,636 Shares outstanding at
September 30,1995
PART I
ITEM 1
VICON FIBER OPTICS CORP.
FINANCIAL STATEMENTS
(UNAUDITED)
September 30, 1995
VICON FIBER OPTICS CORP.
TABLE OF CONTENTS
SEPTEMBER 30, 1995
PAGE NO.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets as of September 30, 1995
and December 31, 1994 1-2
Statements of Operations For the Three and
Nine Months Ended September 30, 1995 and 1994 3
Statements of Cash Flows For the Nine
Months Ended September 30, 1995 and 1994
4
Notes to Financial Statements 5
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations
6
PART II
Item 1-6 not applicable 6
VICON FIBER OPTICS CORP.
BALANCE SHEETS
ASSETS
SEPTEMBER 30,1995
DEC. 31, 1994
(UNAUDITED)
CURRENT ASSETS:
Cash and cash equivalents $ 957,137 $
1,020,910
Accounts receivable - net of
allowance for uncollectible
accounts 401,072
323,050
Inventories (Note 2) 549,697
460,986
Prepaid expenses and other
current assets 23,840
14,142
Total Current Assets 1,931,746
1,819,088
PROPERTY, PLANT AND EQUIPMENT -
net of accumulated depreciation
and amortization 148,568
103,178
OTHER ASSETS:
Deferred income taxes 209,654
402,347
Excess of cost over net assets of
businesses acquired 311,991
321,084
Investment in joint venture 26,515
26,515
Deposits 4,487
4,487
Cash surrender value of life insurance contract 30,241
22,441
Total Other Assets 582,888
776,874
TOTAL ASSETS $ 2,663,202 $
2,699,140
See Notes To Financial Statements
1
VICON FIBER OPTICS CORP.
BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
SEPTEMBER 30, 1995
DEC. 31, 1994
(UNAUDITED)
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 147,090
$ 159,970
Income taxes payable 30,935
45,898
Current portion of long-term debt 20,917
97,710
Total Current Liabilities 198,942
303,578
LONG-TERM DEBT 537,461
805,137
TOTAL LIABILITIES 736,403
1,108,715
SHAREHOLDERS' EQUITY:
Common stock - authorized
20,000,000 shares, $.01 par value,
issued and outstanding 8,340,636 shares 83,406
83,406
Additional paid-in capital 5,925,921
5,925,921
Deficit (4,082,528)
(4,418,902)
Total Shareholders' Equity 1,926,799
1,590,425
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,663,202 $
2,699,140
See Notes To Financial Statements
VICON FIBER OPTICS CORP.
STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS
ENDED
SEPTEMBER 30 SEPTEMBER
30 .
1995 1994 1995
1994
SALES $602,862 $444,356 $1,886,386
$1,397,689
COST OF GOODS SOLD 345,143 246,953 1,064,592
749,260
GROSS MARGIN 257,719 197,403 821,794
648,429
OTHER COSTS (INCOME) AND EXPENSES:
Selling, general and
administrative expenses 114,037 96,990 349,446
314,754
Interest expense 12,428 28,231
29,273 87,298
Interest income ( 12,185) ( 5,424) ( 38,038)
(15,313)
TOTAL OTHER COSTS (INCOME) AND EXPENSES 114,280 119,797 340,681
386,739
INCOME BEFORE PROVISION FOR INCOME
TAXES 143,439 77,606 481,113
261,690
PROVISION FOR INCOME TAXES (Note 3) 58,300 35,200 174,900
103,900
INCOME BEFORE EXTRAORDINARY ITEM 85,139 42,406 306,213
157,790
EXTRAORDINARY ITEM:
Forgiveness of debt(Net of income
taxes of $15,386) 30,161 -- 30,161
- -- .
NET INCOME $115,300 $ 42,406 $336,374
$157,790
INCOME PER COMMON SHARE:
Income before extraordinary item .01 .01 .04
.02
Extraordinary Item -- -- --
- -- .
NET INCOME $ .01 $ .01 $ .04 $
.02
AVERAGE NUMBER OF SHARES
USED IN COMPUTATION 8,340,636 8,340,636 8,340,636
8,340,636
See Notes To Financial Statements
VICON FIBER OPTICS CORP.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
NINE MONTHS ENDED
SEPTEMBER 30
1995
1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 336,374 $
157,790
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Depreciation and amortization 27,693
27,081
(Increase) decrease in accounts
receivable ( 78,022) (
91,493)
(Increase) decrease in inventory ( 88,711) (
46,694)
(Increase) decrease in prepaid
expenses and other current assets ( 9,698)
16,890
Increase (decrease) in accounts
payable and accrued expenses ( 12,880)
55,397
Decrease in deferred income taxes 192,693
94,200
Increase (decrease)in income taxes payable( 14,963) (
14,235)
Total Adjustments 16,112
41,146
Net Cash Provided By
Operating Activities 352,486
198,936
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to plant and equipment ( 63,990) (
57,803)
Increase in cash surrender value of
life insurance contract ( 7,800) (
8,237)
Net Cash (Used In) Investing Activities ( 71,790) (
66,040)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt (344,469) (
99,362)
Net Cash Provided By (used in)
Financing Activities (344,469) (
99,362
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS ( 63,773)
33,534
CASH AND CASH EQUIVALENTS - Beginning 1,020,910
926,700
CASH AND CASH EQUIVALENTS - End $ 957,137 $
960,234
See Notes To Financial Statements
VICON FIBER OPTICS CORP.
STATEMENT OF CASH FLOWS
(UNAUDITED)
NINE
MONTHS ENDED
SEPTEMBER 30
1995
1994
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $47,007
$70,443
Income taxes $12,312
$23,935
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - BASIS OF PRESENTATION
In the opinion of management, the accompanying unaudited interim
financial statements of Vicon Fiber Optics Corp. (the Company)
contain all adjustments necessary to present fairly the Company's
financial position as of September 30, 1995 and December 31, 1994
and the results of operations and cash flows for the nine months
ended September 30, 1995 and 1994.
The accounting policies followed by the Company are set forth in
Note 1 to the Company's financial statements included in its
Annual Report on Form 10-KSB for the year ended December 31,
1994, which is incorporated herein by reference.
NOTE 2 - INVENTORIES
The composition of inventories is:
SEPTEMBER 30, 1995 DEC. 31, 1994
(Unaudited)
Raw materials $ 432,655 $ 370,071
Work-in-process 88,415 64,097
Finished goods 28,627 26,818
$ 549,697 $ 460,986
NOTE 3 - INCOME TAXES
Investment tax credits are applied, if available, as a reduction
of income tax expense. Net operating loss carryforwards are
available to the Company in the approximate amount of $1,100,000
expiring in years through 2006.
ITEM 2 -Management's Discussion and Analysis of Financial
Condition and Results of Operations
Net Sales
Net sales for the nine months ended September 30, 1995
compared to the same period in 1994 increased by $488,697.
Management attributes this to increased purchases by the dental
profession of dental equipment containing fiber optic components
amounting to $339,174 and to sales of the Company's Fantasia line
of fiber optic decorative lamps of $149,523.
Cost of Sales
Cost of sales for the nine months ended September 30, 1995
increased to 56% as compared to 54% for the same period in 1994.
Management attributes this increase to a larger segment of sales
coming from lower margin products.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the nine
months ended September 30, 1995 increased to $349,446 from
$314,754 for the same period in 1994. Management attributes this
increase to a general inflationary rise in administrative
expenses and increased expenses necessary to administer the
additional sales.
Financial Condition of the Company The Company gauges its
liquidity and financial stability by the measurements as shown in
the following table:
September 30 December 31
1995 1994
(Unaudited)
Working capital $1,732,804 $1,515,510
Current ratio 9.71 to 1 5.99 to 1
Shareholders' equity $1,926,799 $ 1,590,425
PART II
Items 1-6 not applicable.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
VICON FIBER OPTICS CORP.
(Registrant)
Date:November 15, 1995 /s/Leonard Scrivo .
LEONARD SCRIVO,
President, Chief Executive
Officer and Chief Financial
Officer
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