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 June 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
June 30,1995
PART I
ITEM 1
VICON FIBER OPTICS CORP.
FINANCIAL STATEMENTS
(UNAUDITED)
June 30, 1995
VICON FIBER OPTICS CORP.
TABLE OF CONTENTS
JUNE 30, 1995
PAGE NO.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets as of June 30, 1995
and December 31, 1994 1-2
Statements of Operations For the Three and
Six Months Ended June 30, 1995 and 1994 3
Statements of Cash Flows For the Six
Months Ended June 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
JUNE 30,1995
DEC. 31, 1994
(UNAUDITED)
CURRENT ASSETS:
Cash and cash equivalents $ 852,775 $
1,020,910
Accounts receivable - net of
allowance for uncollectible
accounts 453,426
323,050
Inventories (Note 2) 572,242
460,986
Prepaid expenses and other
current assets 5,555
14,142
Total Current Assets 1,883,998
1,819,088
PROPERTY, PLANT AND EQUIPMENT -
net of accumulated depreciation
and amortization 93,262
103,178
OTHER ASSETS:
Deferred income taxes 280,578
402,347
Excess of cost over net assets of
businesses acquired 315,022
321,084
Investment in joint venture 26,515
26,515
Deposits 4,487
4,487
Cash surrender value of life insurance contract 27,641
22,441
Total Other Assets 654,243
776,874
TOTAL ASSETS $ 2,631,503 $
2,699,140
See Notes To Financial Statements
1
VICON FIBER OPTICS CORP.
BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
JUNE 30, 1995
DEC. 31, 1994
(UNAUDITED)
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 112,321
$ 159,970
Income taxes payable 31,199
45,898
Current portion of long-term debt 59,419
97,710
Total Current Liabilities 202,939
303,578
LONG-TERM DEBT 617,066
805,137
TOTAL LIABILITIES 820,005
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 (4,197,829)
(4,418,902)
Total Shareholders' Equity 1,811,498
1,590,425
TOTAL LIABLIITIES AND SHAREHOLDERS' EQUITY $ 2,631,503 $
2,699,140
See Notes To Financial Statements
VICON FIBER OPTICS CORP.
STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS
ENDED
JUNE 30 JUNE 30
.
1995 1994 1995
1994
SALES $723,929 $489,096 $1,283,524
$953,333
COST OF GOODS SOLD 420,309 268,484 719,449
502,307
GROSS MARGIN 303,620 220,612 564,075
451,026
OTHER COSTS (INCOME) AND EXPENSES:
Selling, general and
administrative expenses 114,497 113,901 235,409
231,097
Interest expense 15,464 28,834
16,845 59,067
Interest income ( 14,141) ( 4,990) ( 25,853)
( 9,889)
TOTAL OTHER COSTS (INCOME) AND EXPENSES 115,820 137,745 226,401
280,275
INCOME BEFORE PROVISION FOR INCOME
TAXES 187,800 82,867 337,674
170,751
PROVISION FOR INCOME TAXES (Note 3) 67,230 32,840 116,600
68,700
NET INCOME $120,570 $ 50,027 $221,074
$102,051
INCOME PER COMMON SHARE:
NET INCOME $ .02 $ .01 $ .03
$ .01
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)
SIX MONTHS ENDED
JUNE 30
1995
1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 221,074 $
102,051
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Depreciation and amortization 18,462
18,054
(Increase) decrease in accounts
receivable ( 130,376) (
121,930)
(Increase) decrease in inventory ( 111,256) (
12,840)
(Increase) decrease in prepaid
expenses and other current assets 8,587
11,501
Increase (decrease) in accounts
payable and accrued expenses ( 47,649)
30,328
Decrease in deferred income taxes 121,769
64,200
Increase (decrease)in income taxes payable( 14,699) (
19,435)
Total Adjustments ( 155,162) (
30,122)
Net Cash Provided By
Operating Activities 65,912
71,929
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to plant and equipment ( 2,485) (
37,471)
Increase in cash surrender value of
life insurance contract ( 5,200) (
4,000)
Net Cash (Used In) Investing Activities ( 7,685) (
41,471)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt (226,362) (
85,260)
Net Cash Provided By (used in)
Financing Activities (226,362) (
85,260)
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (168,135) (
54,802)
CASH AND CASH EQUIVALENTS - Beginning 1,020,910
926,700
CASH AND CASH EQUIVALENTS - End $ 852,775 $
871,898
See Notes To Financial Statements
VICON FIBER OPTICS CORP.
STATEMENT OF CASH FLOWS
(UNAUDITED)
SIX
MONTHS ENDED
JUNE 30
1995
1994
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $35,268
$48,266
Income taxes $ 9,584
$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 June 30, 1995 and December 31, 1994 and
the results of operations and cash flows for the six months
ended June 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:
JUNE 30, 1995 DEC. 31, 1994
(Unaudited)
Raw materials $ 416,076 $ 370,071
Work-in-process 119,651 64,097
Finished goods 36,515 26,818
$ 572,242 $ 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 six months ended June 30, 1995 compared to
the same period in 1994 increased by $330,191. Management
attributes this to increased purchases by the dental profession
of dental equipment containing fiber optic components amounting
to $231,896 and to sales of the Companys Fantasia line of fiber
optic decorative lamps of $98,295.
Cost of Sales
Cost of sales for the six months ended June 30, 1995 increased
to 56% as compared to 53% 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 six
months ended June 30, 1995 increased to $235,409 from $231,097
for the six months ended June 30, 1994. Management attributes
this to a general inflationary rise in administrative expenses.
Financial Condition of the Company The Company gauges its
liquidity and financial stability by the measurements as shown in
the following table:
June 30 December 31
1995 1994
(Unaudited)
Working capital $1,681,059 $1,515,510
Current ratio 9.28 to 1 5.99 to 1
Shareholders' equity $1,811,498 $ 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:August 10, 1995 /s/Leonard Scrivo
LEONARD SCRIVO,
President, Chief Executive
Officer and Chief Financial
Officer
