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Previous: DRESS BARN INC, DEF 14A, 1997-11-17 |
Next: SEILER POLLUTION CONTROL SYSTEMS INC, 10-Q, 1997-11-17 |
<PAGE>
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, 1997
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 per value 8,515,636 Shares outstanding at
September 30, 1997
<PAGE>
PART I
ITEM 1
VICON FIBER OPTICS CORP.
FINANCIAL STATEMENTS
(UNAUDITED)
September 30, 1997
<PAGE>
VICON FIBER OPTICS CORP.
TABLE OF CONTENTS
SEPTEMBER 30, 1997
<TABLE>
<CAPTION> <CAPTION
PART I. FINANCIAL INFORMATION >
PAGE NO.
<S> <C>
Item 1. Financial Statements
Balance Sheets as of September 30, 1997 1-2
and December 31, 1996
Statements of Operations For the Three and 3
Nine Months Ended September 30, 1997 and 1996
Statements of Cash Flows For the Nine Months 4
Ended September 30, 1997 and 1996
Notes to Financial Statements 5
Item 2. Management's Discussion and Analysis 6
of Financial Condition and Results of Operations
PART II
Item 1-5 not applicable, Item 6 6
</TABLE>
<PAGE>
VICON FIBER OPTICS CORP.
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION> <CAPTION>
SEPTEMBER 30, DECEMBER 31,
1997 1996
(UNAUDITED)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 576,430 $1,049,186
Accounts receivable - net of 1,145,155 411,627
allowance for uncollectible
accounts
Inventories (Note 2) 1,332,991 983,094
Prepaid expenses and other current 1,825 14,459
assets
Deferred income taxes 36,679 33,040
---------- ----------
Total Current Assets 3,093,080 2,491,406
---------- ----------
PROPERTY, PLANT AND EQUIPMENT -
net of accumulated depreciation
and amortization 422,569 399,001
---------- ----------
OTHER ASSETS:
Excess of cost over net assets of
businesses acquired 287,787 296,847
Investment in joint venture 26,515 26,515
Deposits 4,487 4,487
Cash surrender value of life
insurance contract 57,251 46,286
---------- ----------
Total Other Assets 376,040 374,135
---------- ----------
TOTAL ASSETS: 3,891,689 $3,264,542
========== ==========
</TABLE>
See Notes To Financial Statements
1
<PAGE>
VICON FIBER OPTICS CORP.
BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION> <CAPTION>
SEPTEMBER 30, DECEMBER 31,
1997 1996
(UNAUDITED)
<S> <C> <C>
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 463,694 $ 118,852
Income taxes payable 197,081 151,133
Current portion of long-term debt 141,202 166,202
----------- ----------
Total Current Liabilities 801,977 436,187
LONG-TERM DEBT 239,478 258,023
Deferred income tax payable 46,995 35,011
----------- ----------
TOTAL LIABILITIES 1,088,450 729,221
----------- ----------
SHAREHOLDERS' EQUITY:
Common stock - authorized 20,000,000
shares,
$.01 par value, issued and outstanding 85,156 85,156
8,515,636 shares and 8,340,636
respectively
Additional paid-in capital 5,962,171 5,960,921
Deficit (3,744,088) (3,510,756)
---------- ----------
Total Shareholders' Equity 2,803,239 2,535,321
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' $3,891,689 $3,264,542
EQUITY
========== ==========
</TABLE>
See Notes To Financial Statements
2
<PAGE>
VICON FIBER OPTICS CORP.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION> THREE NINE
MONTHS ENDED MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
1997 1996 1997 1996
<S> <C> <C> <C> <C>
SALES $1,250,678 $752,190 $2,559,377 $2,089,330
COST OF GOODS SOLD 731,167 383,068 1,484,608 1,164,733
------- ------- --------- ---------
GROSS MARGINS 519,511 369,122 1,074,769 924,597
OTHER COSTS (INCOME) AND EXPENSES:
Selling, general and
administrative expenses 195,872 150,162 571,300 457,779
Research and development 17,771 10,419 52,742 39,185
Interest expense 12,250 14,616 40,271 44,214
Interest income
(11,069) (12,684) (35,502) (37,204)
------- ------- ------- -------
TOTAL OTHER COSTS (INCOME) AND 214,824 162,513 628,811 503,974
EXPENSES
INCOME BEFORE PROVISION FOR INCOME 304,687 206,609 445,958 420,623
TAXES
PROVISION FOR INCOME TAXES (Note 3) 125,644 69,557 179,290 152,300
------ ------ ------- -------
NET INCOME $179,043 $137,052 $266,668 $268,323
======== ======== ======== ========
INCOME PER COMMON SHARE: $ .02 $ .02 $ .03 $ .03
AVERAGE NUMBER OF SHARES USED IN $8,794,529 $8,557,107 $8,728,052 $8,523,691
COMPUTATION
</TABLE>
See Notes to Financial Statements
3
<PAGE>
VICON FIBER OPTICS CORP.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION> NINE MONTHS ENDED
SEPTEMBER 30
<S> <C> <C>
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 266,268 $ 268,323
Adjustments to reconcile net income to
net cash provided by (used in) operating
activities:
Depreciation and amortization 48,060 39,593
(Increase) decrease in accounts receivable ( 733,528) 134,747
(Increase) decrease in inventory ( 349,897) ( 359,371)
(Increase) decrease in prepaid expenses and
other current assets 12,634 15,492
Increase (decrease) in accounts payable and
accrued expenses 344,842 80,459
Decrease in deferred income taxes 8,345 92,649
Capital stock issued for expenses -- 35,000
Increase in income taxes payable 45,948 59,651
-------- ---------
Total Adjustments ( 623,596) 98,220
-------- ---------
Net Cash Provided (Used) By Operating ( 357,328) 366,543
Activities
-------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to plant and equipment ( 62,168) ( 317,976)
Increase in cash surrender value of
life insurance contract ( 10,965) ( 10,073)
Issuance of stock option for cash 1,250 1,750
-------- ---------
Net Cash (Used In) Investing Activities ( 71,883) ( 221,227)
-------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt ( 43,545) ( 15,977)
Net Cash Provided By (used in) Financing ( 43,545) ( 15,977)
Activities -------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH (472,756) 129,339
EQUIVALENTS
CASH AND CASH EQUIVALENTS - Beginning 1,049,186 858,681
--------- ---------
CASH AND CASH EQUIVALENTS - End $576,430 $ 988,020
======== =========
</TABLE>
See Notes to Financial Statements
4
<PAGE>
VICON FIBER OPTICS CORP.
STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION> NINE MONTHS ENDED
SEPTEMBER 30
<S> <C> <C>
1997 1996
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest $37,371 $40,689
------- -------
Income taxes $125,000 $ 0
------- -------
</TABLE>
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
SEPTEMBER 30, 1997
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, 1997 and December 31, 1996 and the results of operations
and cash flows for the nine months ended September 30, 1997 and 1996.
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, 1996, which is incorporated herein by
reference.
NOTE 2 - INVENTORIES
The composition of inventories is:
<TABLE>
<CAPTION> SEPTEMBER 30, 1997 DECEMBER 31, 1996
(Unaudited)
<S> <C> <C>
Raw Materials $ 372,788 $649,331
Work-in-process 336,688 39,480
Finished goods 623,515 294,283
---------- --------
$1,332,991 $983,094
========== ========
</TABLE>
NOTE 3 - INCOME TAXES
Under the provisions of SFAS 109 the Company recognizes deferred tax
assets and liabilities for future tax consequences of events that have been
previously recognized in the financial statements or income tax returns.
5
<PAGE>
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, 1997 compared to the
same period in 1996 increased by $470,047. Management attributes this to
increased sales of the Company's Fantasia line of fiber optic decorative
lamps.
Cost of Sales:
Cost of sales for the nine months ended September 30, 1997 was 58%,
compared to 56% for the same period in 1996. Management attributes this to
an increase in sales of lower margin products.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the nine months ended
September 30, 1997 increased to $571,300 from $457,779 for the same period
in 1996. Management attributes this to increased marketing and selling
expenses.
Financial Condition of the Company: The Company gauges its liquidity
and financial stability by the measurements as shown in the following
table:
<TABLE>
<CAPTION> September 30 December 31
1997 1996
(Unaudited)
<S> <C> <C>
Working capital $2,291,103 $2,055,219
Current ratio 3.86 to 1 5.71 to 1
Shareholders' equity $2,803,239 $2,535,321
</TABLE>
PART II
Item 6, Exhibit 11
VICON FIBER OPTICS CORP.
COMPUTATION OF EARNINGS PER SHARE
(UNAUDITED)
<TABLE>
<CAPTION> Three Months Ended Nine Months Ended
September 30, September 30,
<S> <C> <C> <C> <C>
1997 1996 1997 1996
Primary:
Average shares outstanding 8,515,636 8,515,636 8,515,636 8,464,541
Net effect of dilutive stock
options -
based on the treasury stock
method using average market 278,893 41,471 212,415 59,150
price
--------- --------- --------- ---------
TOTALS 8,794,529 8,557,107 8,728,051 8,523,691 1
========= ========= ========= =========
$ 179,043 $ 137,052 $ 266,618 $ 268,323
========= ========= ========= =========
Per share amount $ .02 $ .01 $ .03 $ .03
========= ========= ========= ========
</TABLE>
6
SIGNATURE
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, 1997 /s/Leonard Scrivo
LEONARD SCRIVO,
President, Chief Executive Officer
7
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 576430
<SECURITIES> 0
<RECEIVABLES> 1145155
<ALLOWANCES> 0
<INVENTORY> 1332991
<CURRENT-ASSETS> 3093080
<PP&E> 1406903
<DEPRECIATION> 984334
<TOTAL-ASSETS> 3891689
<CURRENT-LIABILITIES> 801977
<BONDS> 0
0
0
<COMMON> 85156
<OTHER-SE> 2718083
<TOTAL-LIABILITY-AND-EQUITY> 3891689
<SALES> 2559377
<TOTAL-REVENUES> 2594879
<CGS> 1484608
<TOTAL-COSTS> 1484608
<OTHER-EXPENSES> 624042
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 40271
<INCOME-PRETAX> 445958
<INCOME-TAX> 179290
<INCOME-CONTINUING> 266668
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 266668
<EPS-PRIMARY> .03
<EPS-DILUTED> .03
</TABLE>
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