UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________to__________________
Commission file number 0-12734
Stanford Telecommunications, Inc.
---------------------------------
(Exact name of registrant as specified in its charter)
Delaware 94-2207636
-------- ----------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
1221 Crossman Avenue, Sunnyvale, CA 94089
-----------------------------------------
(Address of principal executives offices)
(Zip Code)
408/745-0818
------------
(Registrant's telephone number, including area code)
------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 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
--- ---
APPLICABLE ONLY TO CORPORATE USERS:
Indicate the number of outstanding shares of each of the issuer's
classes of common stock, as of the latest practical date.
6,404,577 as of January 21, 1997
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED FINANCIAL STATEMENTS
(Unaudited)
The condensed financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes the disclosures which are made are
adequate to make the information presented not misleading. Further, the
condensed financial statements have been prepared in all material respects in
conformity with the standards of accounting measurement set forth in Accounting
Principles Board Opinion No. 28 and reflect, in the opinion of management, all
adjustments (which include only normal recurring adjustments) necessary to
present fairly the financial position and results of operations as of and for
the periods indicated.
It is suggested that these condensed financial statements be read in conjunction
with the financial statements and the notes thereto included in the Stanford
Telecommunications, Inc. 1996 Annual Report.
The results of operations for the first nine months of fiscal year 1997 ended
December 31, 1996 are not necessarily indicative of results to be expected for
the entire year ending March 31, 1997.
<PAGE>
<TABLE>
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share amount)
<CAPTION>
Three Months Ended Nine Months Ended
December 31, December 31,
---------------------- ----------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues $ 42,028 $ 36,384 $ 123,929 $ 107,933
Cost of revenues 32,305 28,922 95,187 87,013
--------- --------- --------- ---------
Gross profit 9,723 7,462 28,742 20,920
Expenses
Research and development 2,903 2,046 8,576 5,889
Marketing and administrative 4,170 3,104 12,297 9,002
--------- --------- --------- ---------
Total expenses 7,073 5,150 20,873 14,891
Operating income 2,650 2,312 7,869 6,029
Interest income, net 342 164 924 494
--------- --------- --------- ---------
Income before income taxes 2,992 2,476 8,793 6,523
Provision for income taxes (1,032) (863) (3,034) (2,381)
--------- --------- --------- ---------
Net income $ 1,960 $ 1,613 $ 5,759 $ 4,142
========= ========= ========= =========
Weighted average common 6,521 6,361 6,534 6,328
shares and equivalents
Net income per share $ 0.30 $ 0.25 $ 0.88 $ 0.65
========= ========= ========= =========
<FN>
See accompanying notes
</FN>
</TABLE>
<PAGE>
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED BALANCE SHEETS
(in thousands, except per share amount)
ASSETS December 31, March 31,
1996 1996
--------- ---------
Current assets: (Unaudited)
Cash and cash equivalents $ 6,706 $ 4,409
Short-term investments 18,579 14,127
Accounts receivable 27,382 22,018
Unbilled receivables 17,929 11,993
Inventories, net of related progress billings 10,542 18,702
Prepaid expenses 4,125 4,903
--------- ---------
Total current assets 85,263 76,152
--------- ---------
Property and equipment at cost:
Electronic test equipment 42,779 39,541
Furniture and fixtures 3,434 2,967
Leasehold improvements 3,715 3,657
--------- ---------
49,928 46,165
Less: Accumulated depreciation and amortization (35,259) (31,665)
--------- ---------
Net property and equipment 14,669 14,500
--------- ---------
Other assets 392 296
--------- ---------
$ 100,324 $ 90,948
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term obligations $ 74 $ 80
Accounts payable 8,231 6,097
Advance payments from customers 1,051 515
Accrued liabilities 9,523 10,044
Accrued and current deferred income taxes 3,099 2,921
--------- ---------
Total current liabilities 21,978 19,657
--------- ---------
Long-term obligations, less current maturities 37 85
--------- ---------
Other long-term liabilities 929 986
--------- ---------
Deferred income taxes 231 631
--------- ---------
Shareholders' equity:
Common shares - par value $.01; 15,000
shares authorized
Outstanding - 6,403 shares at
December 31, 1996 64 63
- 6,328 shares at March 31, 1996
Paid-in capital 40,169 38,369
Retained earnings 36,916 31,157
--------- ---------
Total shareholders' equity 77,149 69,589
--------- ---------
$ 100,324 $ 90,948
========= =========
See accompanying notes.
<PAGE>
<TABLE>
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
<CAPTION>
Nine Months Ended
December 31,
-----------------
Cash flows from operating activities: 1996 1995
---- ----
<S> <C> <C>
Net income $ 5,759 $ 4,142
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 3,875 3,779
Issuances of stock to employees under bonus and award plans 85 65
Provision for losses on receivables and contracts 1,298 654
Loss on retirements of property and equipment 3 (7)
(Increase) decrease in assets:
Receivables billed and unbilled (11,512) 2,707
Inventories 7,574 (6,434)
Prepaid expenses and other assets 682 (3,171)
Increase (decrease) in liabilities:
Accounts payable, advance payments, and accrued expenses 2,149 (1,588)
Other long-term liabilities (57) 34
Accrued and deferred income taxes 93 1,265
-------- --------
Net cash provided by operating activities 9,949 1,446
-------- --------
Cash flows (used in) provided by investing activities:
Purchase of short-term investments (25,950) (5,848)
Proceeds from maturities of short-term investments 21,498 8,888
Purchase of property and equipment (4,547) (3,669)
Proceeds from sale of property and equipment -- 210
-------- --------
Net cash used in investing activities (8,999) (419)
-------- --------
Cash flows from financing activities:
Payments on capital lease obligations (54) (103)
Proceeds from transactions under stock plans 1,401 758
-------- --------
Net cash provided by financing activities 1,347 655
-------- --------
Net increase in cash and cash equivalents 2,297 1,682
Cash and cash equivalents at beginning of period 4,409 2,910
-------- --------
Cash and cash equivalents at end of period $ 6,706 $ 4,592
======== ========
<FN>
See accompanying notes.
</FN>
</TABLE>
<PAGE>
STANFORD TELECOMMUNICATIONS, INC.
Notes to Condensed Interim Financial Statements
(Unaudited)
December 31, 1996
1. Net income per share
Net income per share is computed using the weighted average number of
shares of common stock and common stock equivalents outstanding during the
periods. Common stock equivalents consist of the dilutive effect of
outstanding options to purchase common stock. Fully diluted net income per
share is substantially the same as reported net income per share.
2. Inventories
Inventories are stated at the lower of cost (first-in, first-out) or
market. Cost includes materials, labor and related indirect expenses.
General and administrative costs are only included in inventory for
government contracts, as such costs are reimbursed by the government.
The components of inventory are (in thousands):
December 31, 1996 March 31, 1996
----------------- --------------
Work-in-progress $ 8,277 18,773
Finished goods 2,700 1,850
Allocated general and
administrative costs 294 808
Less: progress billings (729) (2,729)
------- -------
$10,542 $18,702
======= =======
3. Capital Stock
On June 26, 1996, the Company's stockholders approved an amendment to
Article 4 of the Company's Certificate of Incorporation to increase the
number of authorized shares of common stock par value $0.01 per share
("common stock"), from 15,000,000 to 25,000,000. Approval of the amendment
gives the Company the power to cause a Certificate of Amendment to be filed
with the Delaware Secretary of State on or prior to June 30, 1997. However,
the Company shall not be obligated to file a Certificate of Amendment with
respect to the increase in the number of authorized shares at any specified
time or at all. As of December 31, 1996 a Certificate of Amendment to
increase the number of authorized shares has not been filed.
4. Credit Agreement
On December 5, 1996 the Company amended and restated its credit line
agreement to expire on December 18, 1997. The bank credit commitment of $15
million requires the Company to maintain certain financial covenants. At
December 31, 1996, the Company was in compliance with all such financial
covenants.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Overview
Since the Company's inception in 1973, revenues have been generated primarily
from sales to agencies of the U.S. Government, including the DoD, the U.S. Air
Force, Army and Navy, NASA and the FAA, or their prime contractors. Such
revenues are generated from many contracts including programs requiring
multi-year hardware and software development and limited production of products
and systems. The Company's contracts often require the design, production,
operation and maintenance of sophisticated equipment and systems and provision
of system integration services in the digital telecommunications and satellite
communications fields. A substantial portion of the digital telecommunications
and satellite communications research and development performed by the Company
since its inception has been funded by its customers and recorded as revenues by
the Company. Accordingly, the cost of performing this customer-funded research
and development is included in "Cost of Revenues" in the Company's financial
statements. The Company's government contracts are generally cost-reimbursement
plus profit or fixed-price contracts. The Company generally recognizes revenues
from its long-term government contracts on a percentage-of-completion basis, or
a unit shipped basis for production contracts.
Commencing in the late 1980's, the Company began to pursue commercial
opportunities utilizing its digital telecommunications technology developed and
enhanced by the Company since its inception. Commercial revenues have risen from
less than 6% of total revenues in fiscal year 1989 to approximately 46% of total
revenues in fiscal year 1996. Commercial revenues totaled $66.3 million during
fiscal year 1996. During the first nine months of fiscal 1997, commercial
revenues amounted to approximately $53.6 million or 44% of total revenues
reported. The Company includes in commercial revenues sales of standard or
off-the-shelf products such as the digital interfaces for secure voice
transmissions or GPS simulators to any customers, including government
customers.
The Company's operating results have from time to time been adversely affected
by non-recoverable cost overruns on certain fixed-price contracts, primarily
fixed-price development contracts which have included significant software and
hardware development. The Company has instituted additional management controls
to more closely monitor its bidding process and costs incurred on fixed-price
development contracts, however, no assurance can be given that the Company will
not incur losses on future fixed-price contracts or additional losses on
existing contracts. The Company believes that development contracts are an
important element in maintaining its technological leadership position in
digital telecommunications. The Company plans to selectively bid on programs
where it would be the sole provider or its technology leadership provides a
competitive advantage. In addition, in order to position itself in the
commercial marketplace, the Company may selectively enter into contracts with
customers to deliver products where the Company will be funding a portion of the
development costs. As a result, the Company may incur losses on certain
fixed-price contracts. Such losses will be charged against results of operations
in the period when they first become known, typically near the initiation of the
contract and may have a material adverse effect on the Company's results of
operations.
<PAGE>
Cautionary Statements
In the interest of providing the Company's shareholders and potential investors
with certain Company information, including management's assessment of the
Company's future potential, certain statements set forth herein contain or are
based on projections of revenue, income, earnings per share and other financial
items or relate to management's future plans and objectives or to the Company's
future economic performance. Such statements are "forward-looking statements"
within the meaning of Section 27A(i) of the Securities Act of 1933, as amended,
and in Section 21E(i) of the Securities Exchange Act of 1934, as amended.
Although any forward-looking statements contained herein or otherwise expressed
by or on behalf of the Company are to the knowledge and in the judgment of the
officers and directors of the Company, expected to prove true and to come to
pass, management is not able to predict the future with absolute certainty.
Accordingly, shareholders and potential investors are hereby cautioned that
certain events or circumstances could cause actual results to differ materially
from those projected or predicted herein. In addition, the forward-looking
statements herein are based on management's knowledge and judgment as of the
date hereof, and the Company does not intend to update any forward-looking
statements to reflect events occurring or circumstances existing hereafter.
For further information on the foregoing, reference is made to the Company's
Securities and Exchange Commission report on Form 10-K.
Quarterly Results
The following table presents the Company's financial results by quarter for
fiscal 1996 and the first three quarters of fiscal 1997. These quarterly
financial results are unaudited. In the opinion of management, however, they
have been prepared on the same basis as the audited financial information and
include all adjustments necessary for a fair presentation of the information set
forth therein. The operating results for any quarter are not necessarily
indicative of the results that may be expected for any future period.
<TABLE>
Quarter Ended
Statement of Operations Data
(in thousands, except per share data)
<CAPTION>
Fiscal 1996 Fiscal 1997
-------------------------------------------- --------------------------------
June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues $ 35,952 $ 35,597 $ 36,384 $ 37,168 $ 40,843 $ 41,058 $ 42,028
Cost of revenues 29,876 28,215 28,922 29,001 31,993 30,889 32,305
-------- -------- -------- -------- -------- -------- --------
Gross profit 6,076 7,382 7,462 8,167 8,850 10,169 9,723
-------- -------- -------- -------- -------- -------- --------
Expenses:
Research and development 1,793 2,050 2,046 2,541 2,229 3,444 2,903
Marketing and administrative 2,659 3,239 3,104 3,211 4,022 4,105 4,170
-------- -------- -------- -------- -------- -------- --------
Total expenses 4,452 5,289 5,150 5,752 6,251 7,549 7,073
Operating income 1,624 2,093 2,312 2,415 2,599 2,620 2,650
Interest income, net 178 152 164 345 284 298 342
-------- -------- -------- -------- -------- -------- --------
Income before provision for 1,802 2,245 2,476 2,760 2,883 2,918 2,992
income taxes
Provision for income taxes (676) (842) (863) (729) (995) (1,007) (1,032)
-------- -------- -------- -------- -------- -------- --------
Net income $ 1,126 $ 1,403 $ 1,613 $ 2,031 $ 1,888 $ 1,911 $ 1,960
======== ======== ======== ======== ======== ======== ========
Net income per share $ 0.18 $ 0.22 $ 0.25 $ 0.32 $ 0.29 $ 0.29 $ 0.30
======== ======== ======== ======== ======== ======== ========
Weighted average common
shares and equivalents 6,272 6,346 6,361 6,409 6,524 6,549 6,521
</TABLE>
<PAGE>
The Company's revenues and results of operations are subject to fluctuation from
period to period. Factors that could cause the Company's revenues and operating
results to vary from period to period include: underestimating costs on
fixed-price contracts particularly for software and hardware development;
timing, bidding activity and delivery of significant contracts and orders;
termination of contracts; mix of products and systems sold, and services
provided; reduced levels of operation during the holidays which occur primarily
in the Company's third fiscal quarter; disruptions in delivery of components or
subsystems; regulatory developments; and general economic conditions. Revenues
have generally increased on a quarterly basis since fiscal year 1994 as a result
of increasing commercial activities during the past three years. Research and
development expenses include both research and development costs as well as bid
and proposal expenses. Bid and proposal expenses vary significantly from period
to period based on the number of proposals being prepared at any time. These
requests for proposals are not received evenly during the year or in any
predictable pattern.
Comparison of the Third Quarter Ended December 31, 1996 and 1995
Revenues. Revenues were $42.0 million and $36.4 million for the third quarter of
fiscal years 1997 and 1996, respectively, representing an increase of
approximately 15.0%. Government revenues grew from $19.1 million during the
third quarter of fiscal 1996 to $27.7 million for the third quarter of fiscal
1997. Commercial revenues during the third quarter of fiscal 1997 totaled $14.3
million, a decrease of 17% from commercial revenues of $17.3 recorded during the
third quarter of fiscal 1996. During the third quarter of fiscal 1997, revenues
from the Company's commercial contract manufacturing services totaled $6.7
million, down from $7.4 million recorded for the third quarter of fiscal 1996.
Revenues from the sale of commercial telecommunication chip and board level
products totaled $4.0 million for the third quarter of fiscal 1997, up from $3.4
million achieved during the third quarter of the previous fiscal year. During
the third quarter of fiscal 1996 the Company recognized revenues of $2.8 million
and $1.0 million associated with the completion of contract milestones for its
commercial Intelsat and DSC development contracts. These contracts were
successfully completed and all revenues recognized prior to the beginning of the
third quarter of fiscal 1997.
Cost of Revenues. Cost of revenues were $32.3 million and $28.9 million for the
third quarter of fiscal 1997 and 1996, respectively, representing a 12%
increase. The gross margin increased from 21% to 23% for the third quarter of
fiscal 1996 and 1997, respectively, due to increased sales of commercial
telecommunication chip and board level products and an increase in contracts in
which the company is realizing higher margins.
Research and Development. During recent quarters, the Company has focused its
available research and development funds on the development of commercial
products. Research and development expenses, including bid and proposal expenses
were $2.9 million and $2.1 million during the third quarter of fiscal 1997 and
1996, respectively. Excluding bid and proposal expenses, the Company's research
and development expenses applied to the development of its products were $2.3
million and $.9 million during the third quarter of fiscal 1997 and 1996,
respectively. Bid and proposal expenses are largely the initial advanced
technology development efforts directed toward a specific product or technical
task for which the Company must show technical viability. The Company expects
research and development expenses to increase in the future as it pursues
additional commercial activities.
Marketing and Administrative. Marketing and Administrative expenses were $4.2
million and $3.2 million for the third quarter of fiscal 1997 and 1996,
respectively. This increase is primarily a result of personnel additions to its
technical marketing staff, its executive staff as well as increased marketing
expenses in pursuit of commercial opportunities.
<PAGE>
Operating Income. Operating income was $2.6 million and $2.3 million for the
third quarter of fiscal 1997 and 1996, respectively. The increase in operating
income during the third quarter of fiscal 1997 was primarily attributable to
higher gross margins on an expanded revenue base.
Interest Income. Interest income for the third quarter of fiscal 1997 was $342
thousand versus $164 thousand for the third quarter of the previous fiscal year.
The increase in interest income is primarily a result of the Company increasing
its net cash provided by operating activities and investing that cash in
short-term investments.
Provision for Income Taxes. Provision for income taxes was $1.0 million and $0.9
million for the third quarter of fiscal years 1997 and 1996, respectively. This
represents a provisional tax rate of 34.5% and 34.9% for the third quarter of
fiscal 1997 and 1996, respectively.
Comparison of Nine Months Ended December 31, 1996 and 1995
Revenues. Revenues were $123.9 million and $107.9 million for the nine months
ended December 31, 1996 and 1995, respectively, representing an increase of
15.0%. Government revenues grew from $58.3 million during the first nine months
of fiscal 1996 to $70.2 million for the nine month period ending December 31,
1996. Commercial revenues during the first nine months of fiscal 1997 totaled
$53.6 million, an increase of 8% from commercial revenues of $49.2 recorded
during the first nine months of fiscal 1996. During the first nine months of
fiscal 1997, revenues from the Company's commercial contract manufacturing
services totaled $28.3 million up from $20.8 million recorded for the nine
months of fiscal 1996. Revenues from the sale of commercial telecommunication
chip and board level products totaled $13.5 million for the first nine months of
fiscal 1997, up from $9.9 million achieved during the nine months of the
previous fiscal year.
Cost of Revenues. Cost of revenues were $95.2 million and $87.0 million for the
nine months of fiscal 1997 and 1996, respectively, representing an 9% increase.
The increase during the nine months of fiscal 1997 was a result of the
recognition of costs on a higher revenue base. The gross margin increased from
19% to 23% for the first nine months of fiscal years 1996 and 1997,
respectively, due to increased sales of commercial products and an increase in
contracts in which the company is realizing higher margins.
Research and Development. Research and development expenses, including bid and
proposal expenses were $8.6 million and $5.9 million for the first nine months
of fiscal 1997 and 1996, respectively, representing an increase of approximately
46%. Excluding bid and proposal expenses, the Company's research and development
expenses applied to the development of products such as satellite telephony
systems, wireless broadband communications, cable high speed modems and wireless
telephony were $6.8 million and $2.7 million for the first nine months of fiscal
1997 and 1996, respectively.
Marketing and Administrative. Marketing and administrative expenses were $12.3
million and $9.0 million for the first nine months of fiscal 1997 and 1996,
respectively, representing an increase of approximately 37%. This increase is
primarily a result of personnel additions to its technical marketing staff, its
executive staff, increased marketing expenses in pursuit of commercial
opportunities and increased commissions paid resulting from growth in its
commercial sales.
Operating Income. Operating income was $7.9 million and $6.0 million for the
nine months of fiscal 1997 and 1996, respectively. The 32% increase in operating
income during the first nine months of fiscal 1997 was primarily attributable to
higher gross margins on an expanded revenue base.
<PAGE>
Interest Income. Interest income for the first nine months of fiscal 1997 was
$924 thousand versus $494 thousand for the first nine months of the previous
fiscal year. The increase in interest income is primarily a result of the
Company increasing its net cash provided by operating activities and investing
that cash in interest bearing short-term investments.
Provision for Income Taxes. Provision for income taxes was $3.0 million and $2.4
million for the first nine months of fiscal 1997 and 1996, respectively. This
represents a provisional tax rate of 34.5% and 36.5% for the first nine months
of fiscal 1997 and 1996, respectively. The decrease in the effective tax rate
results primarily from increased Research and Development (R&D) tax credits and
other state income tax credits.
Booking and Backlog
Funded bookings were $42.1 million and $33.5 million for the third quarter of
fiscal 1997 and 1996, respectively, and $121.0 million and $113.3 million for
the nine months ended December 31, 1996 and 1995, respectively. Bookings were
derived from both the Company's commercial operations as well as its government
business sectors. At the end of the third quarter of fiscal 1997 and 1996,
backlog stood at $79.9 million and $77.9 million, respectively.
Liquidity and Capital Resources
Working capital increased from $53.0 million to $63.3 million at December 31,
1995 and 1996, respectively, and increased by $6.8 million from the end of
fiscal 1996.
Net cash provided by operating activities for the nine months of fiscal 1997
ended December 31, 1996 was $9.9 million. During the three quarters of fiscal
1997, the Company realized net income of $5.7 million, decreased its inventories
by $7.6 million, increased its billed and unbilled receivables by $11.5 million,
and increased its accounts payable, advance payments, and accrued expenses by
$2.1 million. Net cash provided by operating activities for the nine months of
fiscal 1996 ended December 31, 1995 was $1.4 million. During the nine months of
fiscal 1996, the Company realized net income of $4.1 million, decreased its
receivables, billed and unbilled, by $2.7 million, increased its inventories by
$6.4 million, and decreased its accounts payable, advance payments, and accrued
expenses by $1.6 million.
The Company utilized its cash for the purchase of property and equipment
totaling $4.5 million and $3.7 million during the first nine months of fiscal
1997 and 1996, respectively. The Company has a bank credit commitment of $15.0
million which it can utilize to augment cash flow need and to secure standby
letters of credit. Available borrowings under this line at December 31, 1996
were $15.0 million. Under this line of credit the Company must maintain certain
financial covenants. The Company was in compliance with all covenants as of
December 31, 1996. The credit agreement expires on December 18, 1997. At
December 31, 1996, the Company's long-term obligations (including current
maturities) and other long-term liabilities totaled approximately $1.0 million.
At December 31, 1996, cash and cash equivalents of $6.7 million were
substantially held in money market accounts, and short term investments of $18.6
million were held in U.S. treasury instruments with maturities not exceeding 365
days.
The Company believes that its current cash position, funds generated from
operations and funds available from its existing bank credit agreement, will be
adequate to meet the Company's requirements for working capital, capital
expenditures and debt service for the next several fiscal quarters.
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
No current Reports on Form 8-K were filed with the Securities and Exchange
Commission during the period covered by this Form 10-Q.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Stanford Telecommunications, Inc.
(Registrant)
/s/ Jerry Klajbor
- --------------------------------------------
Jerry Klajbor
Vice-President and Chief Financial Officer
(Principal Financial and Accounting Officer)
January 30, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
STANFORD TELECOMMUNICATIONS, INC.
EDGAR FINANCIAL DATA SCHEDULE (EXHIBIT 27)
Appendix A to item 601(c) of Regulation S-X
Commercial and Industrial Companies
Article 5 of Regulation S-X
Nine month period ending December 31, 1996
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENT OF INCOME AND THE CONSOLIDATED BALANCE SHEET AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 6,706
<SECURITIES> 18,579
<RECEIVABLES> 45,311
<ALLOWANCES> 0
<INVENTORY> 10,542
<CURRENT-ASSETS> 85,263
<PP&E> 49,928
<DEPRECIATION> 35,259
<TOTAL-ASSETS> 100,324
<CURRENT-LIABILITIES> 21,978
<BONDS> 0
<COMMON> 64
0
0
<OTHER-SE> 77,149
<TOTAL-LIABILITY-AND-EQUITY> 100,324
<SALES> 123,929
<TOTAL-REVENUES> 123,929
<CGS> 95,187
<TOTAL-COSTS> 116,060
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 8,793
<INCOME-TAX> 3,034
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,759
<EPS-PRIMARY> 0.00
<EPS-DILUTED> 0.88
</TABLE>
