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Previous: INTEGRAL SYSTEMS INC /MD/, 10QSB, 1998-05-15 |
Next: EQUITY INCOME FUND FIRST EXCHANGE SERIES AT&T SHARES, 10-Q, 1998-05-15 |
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, 1998
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 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, 8,529,069 Shares outstanding at March 31, 1998.
<PAGE>
PART I
ITEM 1
VICON FIBER OPTICS CORP.
FINANCIAL STATEMENTS
(UNAUDITED)
March 31, 1998
<PAGE>
VICON FIBER OPTICS CORP.
TABLE OF CONTENTS
MARCH 31, 1998
PAGE NO.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets as of March 31, 1998
and December 31, 1997 1-2
Statements of Operations For the Three
Months Ended March 31, 1998 and 1997 3
Statements of Cash Flows For the Three
Months Ended March 31, 1998 and 1997 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
<PAGE>
VICON FIBER OPTICS CORP.
BALANCE SHEET
ASSETS
<TABLE>
<S> <C> <C>
March 31, 1998 Dec.31, 1997
(UNAUDITED)
CURRENT ASSETS:
Cash and cash equivalents $779,998 $834,169
Accounts receivable - net of
allowance for uncollectible accounts 601,631 980,083
Inventories (Note 2) 1,384,441 1,276,524
Prepaid expenses and other current assets 35,147 19,034
Deferred income taxes (Note 6) 34,256 34,254
Total Current Assets 2,835,473 3,144,064
PROPERTY, PLANT AND EQUIPMENT -
Net of accumulated depreciation and
amortization 441,091 412,966
OTHER ASSETS:
Excess of cost over net assets of business
acquired 281,747 284,767
Deposits 4,487 4,487
Investment in joint venture 26,515 26,515
Cash surrender value of life insurance contract 64,286 60,764
Total Other Assets 377,035 376,533
TOTAL ASSETS $3,653,599 $3,933,563
</TABLE>
Page 1
<PAGE>
VICON FIBER OPTICS CORP.
BALANCE SHEET
LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<S> <C> <C>
MARCH 31, 1998 DEC. 31,1997
(UNAUDITED)
CURRENT LIABILITIES:
Accounts payable and accrued expenses $281,610 $362,095
Income taxes payable 66,303 250,591
Current portion of long-term debt 38,550 73,550
Total Current Liabilities 386,463 686,236
LONG-TERM DEBT 222,600 234,473
Deferred income tax payable 37,809 47,347
TOTAL LIABILITIES 646,872 968,056
SHAREHOLDERS' EQUITY:
Common Stock - authorized 20,000,000 shares,
$.01 par value, issued and outstanding
8,529,069 85,290 85,290
Additional paid-in capital 5,972,038 5,972,038
Deficit (3,050,601) (3,091,821)
Total shareholders' equity 3,006,727 2,965,507
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $3,653,599 $3,933,563
</TABLE>
Page 2
<PAGE>
VICON FIBER OPTICS CORP.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<S> <C> <C>
THREE MONTHS ENDED
MARCH 31
1998 1997
SALES $752,170 $563,302
COST OF GOODS SOLD 446,230 322,297
GROSS MARGIN 305,940 241,005
OTHER COSTS (INCOME) AND EXPENSES:
Selling, general and administrative expenses 218,428 174,222
Research and development 11,551 11,995
Interest expense 10,710 14,175
Interest income (7,251) (12,007)
TOTAL OTHER COSTS (INCOME) AND EXPENSES 233,438 188,385
INCOME BEFORE PROVISION FOR INCOME TAXES 72,502 52,620
PROVISION FOR INCOME TAXES (Note 3) 31,282 23,846
NET INCOME $41,220 $28,774
INCOME PER COMMON SHARE:
NET INCOME .00 .00
AVERAGE NUMBER OF SHARES USED IN COMPUTATION 8,652,836 8,728,051
</TABLE>
Page 3
<PAGE>
VICON FIBER OPTICS CORP.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<S> <C> <C>
THREE MONTHS ENDED
MARCH 31
1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $41,220 $28,774
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 18,020 16,020
(Increase) decrease in accounts receivable 378,452 70,778
(Increase) decrease in inventory (107,917) (62,968)
(Increase) decrease in prepaid expenses
and other current assets (16,113) 6,959
(Increase) in deferred income taxes (2) 0
Increase (decrease) in accounts payable
and accrued expenses (80,485) 57,870
Increase (decrease)in deferred income taxes payable (9,538) 3,994
Increase (decrease) in income taxes payable (184,288) (105,148)
Total Adjustments (1,871) (12,495)
Net Cash Provided (Used) By Operating Activities 39,349 16,279
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (43,125) (9,512)
(Increase) in cash surrender value of life insurance (3,522) (3,522)
Net Cash (Used in) Investing Activities (46,647) (13.034)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt (46,873) (5,953)
Net Cash Provided By (Used in) Financing Activities (46,873) (5,953)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (54,171) (2,708)
CASH AND CASH EQUIVALENTS - Beginning 834,169 1,049,186
CASH AND CASH EQUIVALENTS - End $779,998 $1,046,478
</TABLE>
Page 4
<PAGE>
VICON FIBER OPTICS CORP.
STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<S> <C> <C>
THREE MONTHS ENDED
MARCH 31
1998 1997
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $10,335 $10,650
Income taxes $225,000 $125,000
</TABLE>
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
MARCH 31, 1998
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,
1998 and December 31, 1997 and the results of operations and cash flows for the
three months ended March 31, 1998 and 1997.
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, 1997, which is incorporated herein by reference.
Page 5
<PAGE>
NOTE 2 - INVENTORIES
The composition of inventories is:
<TABLE>
<S> <C> <C>
MARCH 31, DEC. 31, 1997
1998
(Unaudited)
Raw materials $842,566 $868,648
Work-in-process 113,819 54,930
Finished goods 428,056 352,946
$1,384,441 $1,276,524
</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.
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, 1998 compared to the same period
in 1997 increased by $188,788, or 33.5%. Management attributes this to
increased demand by the dental industry for dental equipment containing Vicon's
fiber optic components and to a significantly larger customer base for the
Fantasia lamp line.
Cost of Sales
Cost of sales for the three months ended March 31, 1998 increased to 59% as
compared to 57% for the same period in 1997. Management attributes this to a
higher proportion of Fantasia lamp sales that results in higher cost of sales
than the Dental products.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the three months ended March
31, 1998 increased to $218,428 from $174,222 for the three months ended March
31, 1997. Management attributes this to increased marketing expenses for the
Fantasia lamp line and increased general and administrative expenses required
to administer the increased sales.
Page 6
<PAGE>
Financial Condition of the Company
The Company gauges its liquidity and financial stability by the measurements as
shown in the following table:
<TABLE>
<S> <C> <C>
March 31 December 31
1998 1997
(Unaudited)
Working Capital $2,449,010 $2,457,828
Current ratio 7.34 to 1 4.58 to 1
Shareholders' Equity $3,006,727 $2,965,507
</TABLE>
PART II
Items 1-5 not applicable.
Item 6, Exhibit 11:
COMPUTATION OF EARNINGS PER SHARE
(UNAUDITED)
<TABLE>
<S> <C> <C>
Three Months Ended
March 31,
1998 1997
Primary:
Average shares outstanding 8,529,069 8,515,636
Net effect of dilutive stock options -
based on the treasury stock method
using average market price 123,767 212,415
TOTALS 8,652,836 8,515,636
Net Income $41,220 $28,774
Per share amount $.00 $.00
</TABLE>
Page 7
<PAGE>
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, 1998 /s/Leonard Scrivo
LEONARD SCRIVO,
President and Chief Executive Officer
Page 8
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 779,998
<SECURITIES> 0
<RECEIVABLES> 601,631
<ALLOWANCES> 0
<INVENTORY> 1,384,441
<CURRENT-ASSETS> 2,835,473
<PP&E> 943,343
<DEPRECIATION> 499,252
<TOTAL-ASSETS> 3,653,599
<CURRENT-LIABILITIES> 386,463
<BONDS> 0
0
0
<COMMON> 85,290
<OTHER-SE> 2,921,437
<TOTAL-LIABILITY-AND-EQUITY> 3,653,599
<SALES> 752,170
<TOTAL-REVENUES> 759,421
<CGS> 446,230
<TOTAL-COSTS> 446,230
<OTHER-EXPENSES> 229,979
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10,710
<INCOME-PRETAX> 72,502
<INCOME-TAX> 31,282
<INCOME-CONTINUING> 41,220
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 41,220
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
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