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 March 31, 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 par value, 8,515,636 Shares outstanding at
March 31,1997
PART I
ITEM 1
VICON FIBER OPTICS CORP.
FINANCIAL STATEMENTS
(UNAUDITED)
March 31, 1997
VICON FIBER OPTICS CORP.
TABLE OF CONTENTS
MARCH 31, 1997
PAGE NO.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets as of March 31, 1997
and December 31, 1996 1-2
Statements of Operations For the Three
Months Ended March 31, 1997 and 1996 3
Statements of Cash Flows For the Three
Months Ended March 31, 1997 and 1996
4-5
Notes to Financial Statements
5-6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations
6-7
PART II
7
VICON FIBER OPTICS CORP.
BALANCE SHEET
ASSETS
March 31,1997 DEC. 31, 1996
(UNAUDITED)
CURRENT ASSETS:
Cash and cash equivalents $1,046,478
$1,049,186
Accounts receivable - net of
allowance for uncollectible accounts 340,849
411,627
Inventories (Note 2)
1,046,062 983,094
Prepaid expenses and other current assets 7,500
14,459
Deferred income taxes
33,040 33,040
Total Current Assets 2,473,929
2,491,406
PROPERTY, PLANT AND EQUIPMENT -
net of accumulated depreciation
and amortization
395,513 399,001
OTHER ASSETS:
Excess of cost over net assets of
businesses acquired
293,827 296,847
Deposits
4,487 4,487
Investment in joint venture
26,515 26,515
Cash surrender value of life insurance contract 49,808
46,286
Total Other Assets
374,637 374,135
TOTAL ASSETS
$3,244,079 $3,264,542
VICON FIBER OPTICS CORP.
BALANCE SHEET
LIABILITIES AND SHAREHOLDERS' EQUITY
MARCH 31, 1997 DEC. 31, 1996
(UNAUDITED)
CURRENT LIABILITIES:
Accounts payable and accrued expenses
176,722 118,852
Income taxes payable
45,985 151,133
Current portion of long-term debt
166,202 166,202
Total Current Liabilities
388,909 436,187
LONG-TERM DEBT
252,070 258,023
Deferred income tax payable
39.005 35,011
TOTAL LIABILITIES
679,984 729,221
SHAREHOLDERS' EQUITY:
Common stock - authorized
20,000,000 shares, $.01 par value,
issued and outstanding 8,515,636
85,156 85,156
Additional paid-in capital
5,960,921 5,960,921
Deficit
(3,481,982) (3,510,756)
Total shareholders' equity
2,564,095 2,535,321
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $3,244,079
$3,264,542
VICON FIBER OPTICS CORP.
STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31
1997 1996
SALES
$563,302 $658,659
COST OF GOODS SOLD 322,297
365,551
GROSS MARGIN
241,005 293,108
OTHER COSTS (INCOME) AND EXPENSES:
Selling, general and administrative expenses 174,222
154,986
Research and development 11,995
16,336
Interest expense
14,175 14,897
Interest income (
12,007) ( 11,519)
TOTAL OTHER COSTS (INCOME) AND EXPENSES 188,385
174,700
INCOME BEFORE PROVISION FOR INCOME TAXES 52,620 118,408
PROVISION FOR INCOME TAXES (Note 3) 23,846
45,188
NET INCOME $
28,774 $ 73,220
INCOME PER COMMON SHARE:
NET INCOME
.00 $ 01
AVERAGE NUMBER OF SHARES
USED IN COMPUTATION 8,728,051
8,515,636
VICON FIBER OPTICS CORP.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income
$ 28,774 $ 73,220
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization
16,020 9,531
(Increase) decrease in accounts receivable
70,778 173,637
(Increase) decrease in inventory
( 62,968) ( 65,580)
(Increase) decrease in prepaid
expenses and other current assets
6,959 7,287
Decrease in deferred income taxes
- -- 44,802
Increase (decrease) in accounts
payable and accrued expenses
57,870 ( 56,510)
Increase in deferred income taxes payable
3.994 44,802
Capital stock subscribed for expenses
- -- 31,000
Increase(decrease) in income taxes payable
(105,148) 386
Total Adjustments
( 12,495) 144,553
Net Cash Provided (Used) By
Operating Activities
16,279 217,773
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (
9,512) (74,878)
(Increase) in cash surrender value of life insurance (
3,522) ( 2,600)
Net Cash (Used in) Financing Activities
(13,034) (77,478)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt
5,953 5,128
Net Cash Provided By (Used In)
Financing Activities
( 5,953) ( 5,128)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
( 2,708) 135,167
CASH AND CASH EQUIVALENTS - Beginning 1,049,186
858,681
CASH AND CASH EQUIVALENTS - End $1,046,478 $
993,848
VICON FIBER OPTICS CORP.
STATEMENT OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31
1997 1996
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest
$ 10,650 $11,372
Income taxes
$125,000 $ -- .
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
MARCH 31, 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 March 31, 1997 and December 31, 1996 and
the results of operations and cash flows for the three
months ended March 31, 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:
MARCH 31, 1997 DEC.
31, 1996
(Unaudited)
Raw materials $ 735,029 $
649,331
Work-in-process 63,481
39,480
Finished goods 247,552
294,283
$1,046,062
$ 983,094
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.
ITEM 2 -Management's Discussion and Analysis of Financial
Condition and Results of Operations
Net Sales
Net sales for the three months ended March 31, 1997
compared to the same period in 1996 decreased by $95,357.
Management attributes this to decreased purchases by the
dental industry of dental equipment containing Vicon's
fiber optic components.
Cost of Sales
Cost of sales for the three months ended March 31, 1997
increased to 57% as compared to 55% for the same period in
1996. Management attributes this percentage increase
principally to fixed manufacturing overhead expenses being
absorbed by lower net sales.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the
three months ended March 31, 1997 increased to $174,222
from $154,986 for the three months ended March 31, 1996.
Management attributes this to additional 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:
March 31
December 31
1997
1996
(Unaudited)
Working capital $2,085,020
$2,055,219
Current ratio 6.36 to 1
5.71 to 1
Shareholders' equity $2,564,095
$2,535,321
.
PART II
Items 1-5 not applicable.
Items 6., Exhibit 11:
COMPUTATION OF EARNINGS PER SHARE
(UNAUDITED)
Three Months Ended
March 31,
1997 1996
Primary:
Average shares outstanding 8,515,636
8,515,636
Net effect of dilutive stock options -
based on the treasury stock
method using average market price 212,415
- --___
TOTALS
8,728,051 8,515,636
Net Income $
28,774 $ 73,220
Per share amount $
.00 $ .01
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:May 15, 1997 /s/Leonard Scrivo
_
LEONARD
SCRIVO,
President, Chief Executive Officer
and Chief
Financial Officer
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