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, 1997
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.
12,952,623 as of January 26, 1998
<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. 1997 Annual Report.
The results of operations for the first nine months of fiscal year 1998 ended
December 31, 1997 are not necessarily indicative of results to be expected for
the entire year ending March 31, 1998.
2
<PAGE>
<TABLE>
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share amounts)
<CAPTION>
Three Months Ended Nine Months Ended
December 31, December 31,
---------------------- ----------------------
1997 1996 1997 1996
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenues $ 40,713 $ 42,028 $ 112,881 $ 123,929
Cost of revenues 30,778 32,305 84,673 95,187
--------- --------- --------- ---------
Gross profit 9,935 9,723 28,208 28,742
Expenses
Research and development 3,814 2,903 10,712 8,576
Marketing and administrative 4,463 4,170 13,316 12,297
--------- --------- --------- ---------
Total expenses 8,277 7,073 24,028 20,873
Operating income 1,658 2,650 4,180 7,869
Interest income, net 502 342 1,453 924
--------- --------- --------- ---------
Income before income taxes 2,160 2,992 5,633 8,793
Provision for income taxes (583) (1,032) (1,746) (3,034)
--------- --------- --------- ---------
Net income $ 1,577 $ 1,960 $ 3,887 $ 5,759
========= ========= ========= =========
Weighted average common 13,226 13,042 13,173 13,068
shares and equivalents
Net income per share - basic and diluted $ 0.12 $ 0.15 $ 0.30 $ 0.44
========= ========= ========= =========
<FN>
See accompanying notes
</FN>
</TABLE>
3
<PAGE>
<TABLE>
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED BALANCE SHEETS
(in thousands, except per share amount)
<CAPTION>
ASSETS December 31, March 31,
1997 1997
--------- ---------
<S> <C> <C>
Current assets: (Unaudited)
Cash and cash equivalents $ 7,129 $ 8,235
Short-term investments 18,221 25,074
Accounts receivable 29,931 25,856
Unbilled receivables 23,398 19,754
Inventories, net of related progress billings 14,246 6,011
Prepaid expenses 3,858 4,201
--------- ---------
Total current assets 96,783 89,131
--------- ---------
Property and equipment at cost:
Electronic test equipment 46,072 42,797
Furniture and fixtures 3,836 3,613
Leasehold improvements 3,914 3,722
--------- ---------
53,822 50,132
Less: Accumulated depreciation and amortization (39,503) (36,019)
--------- ---------
Net property and equipment 14,319 14,113
--------- ---------
Other assets 324 274
--------- ---------
$ 111,426 $ 103,518
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term obligations $ 52 $ 88
Accounts payable 10,075 5,902
Advance payments from customers 2,522 1,581
Accrued liabilities 9,061 10,601
Accrued and current deferred income taxes 3,673 4,549
--------- ---------
Total current liabilities 25,383 22,721
--------- ---------
Long-term obligations, less current maturities 0 30
--------- ---------
Other long-term liabilities 820 910
--------- ---------
Deferred income taxes 121 151
--------- ---------
Shareholders' equity:
Common shares- par value $.01; 25,000 shares authorized
Outstanding- 12,952 shares at December 31, 1997 130 128
12,833 shares at March 31, 1997
Paid-in capital 41,917 40,410
Retained earnings 43,055 39,168
--------- ---------
Total shareholders' equity 85,102 79,706
--------- ---------
$ 111,426 $ 103,518
========= =========
<FN>
See accompanying notes.
</FN>
</TABLE>
4
<PAGE>
<TABLE>
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
<CAPTION>
Nine Months Ended
December 31,
--------------------
Cash flows from operating activities: 1997 1996
-------- --------
<S> <C> <C>
Net income $ 3,887 $ 5,759
Adjustments to reconcile net income to net cash
(used in) provided by operating activities:
Depreciation and amortization 4,303 3,875
Issuances of stock to employees under bonus and award plans 22 85
Change in provision for losses on receivables and contracts (963) 1,298
Loss on disposition of property and equipment 11 3
(Increase) decrease in assets:
Receivables billed and unbilled (7,417) (11,512)
Inventories (7,527) 7,574
Prepaid expenses and other assets 293 682
Increase (decrease) in liabilities:
Accounts payable, advance payments, and accrued expenses 3,527 2,149
Other long-term liabilities (90) (57)
Accrued and deferred income taxes (759) 93
-------- --------
Net cash (used in) provided by operating activities (4,713) 9,949
-------- --------
Cash flows provided by (used in) investing activities:
Proceeds from maturities (purchase) of short-term investments, net 6,853 (4,452)
Purchase of property and equipment (4,520) (4,547)
-------- --------
Net cash provided by (used in) investing activities 2,333 (8,999)
-------- --------
Cash flows from financing activities:
Payments on capital lease obligations (66) (54)
Proceeds from transactions under stock plans 1,340 1,401
-------- --------
Net cash provided by financing activities 1,274 1,347
-------- --------
Net (decrease) increase in cash and cash equivalents (1,106) 2,297
Cash and cash equivalents at beginning of period 8,235 4,409
-------- --------
Cash and cash equivalents at end of period $ 7,129 $ 6,706
-------- --------
Supplemental cash flow information:
Cash paid for interest and income taxes
Interest $ 17 $ 5
Income taxes $ 1,792 $ 967
<FN>
See accompanying notes.
</FN>
</TABLE>
5
<PAGE>
STANFORD TELECOMMUNICATIONS, INC.
Notes to Condensed Interim Financial Statements
(Unaudited)
December 31, 1997
1. In February 1997 the Statement of Financial Accounting Standards (SFAS) No.
128 "Earnings per Share" (EPS) was issued to replace Accounting Principles
Board (APB) No. 15 and is effective for periods ending after December 15,
1997. The statement established standards for computing and presenting
basic and diluted EPS. The Company has adopted SFAS No. 128 in the third
quarter of fiscal 1998. Basic and diluted earnings per share are
substantially the same. Accordingly, the Company has reported them together
on one line in the condensed statement of income.
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, 1997 March 31, 1997
----------------- --------------
Work-in-progress $ 11,894 3,721
Finished goods 2,404 2,318
Allocated general and administrative
costs 265 118
Less: progress billings (317) (146)
--------- ---------
$ 14,246 $ 6,011
========= =========
4. Credit Agreement
On December 12, 1997 the Company amended and restated its credit line
agreement to expire on December 18, 1998. The bank credit commitment of
$15 million requires the Company to maintain certain financial covenants.
At December 31, 1997, the Company was in compliance with all such financial
covenants.
6
<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 providing
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.
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 41% of total
revenues in fiscal year 1997. During fiscal year 1997, commercial revenues which
amounted to approximately $68.5 million included: (i) contract manufacturing
revenues from the Company's electronics assembly business ($34.0 million); (ii)
sales of ASICs, circuit boards and subsystems to the telecommunications industry
($17.0 million); an (iii) other commercial systems and product business ($17.5
million). During the first nine months of fiscal 1998, commercial revenues
amounted to approximately $42.6 million or approximately 38% of total revenues
reported. The Company includes in commercial revenues sales of standard or
off-the-shelf products to any customers, including government customers.
Over the past two fiscal years the Company has greatly increased its level of
independent research and development expenditures. The Company believes that
this increase is necessary to successfully develop competitive products for the
commercial telecommunications market. The Company has applied much of its
research and development expenditures to commercial products and initiatives in
the areas of wireless broadband communications, cable high speed modem
components and board level products and satellite personal communications.
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. 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. 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.
7
<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 (a) contain or
are based on projections of revenue, income, earnings per share and other
financial items or (b) relate to management's future plans, expectations, 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 judgement 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
<TABLE>
The following table presents the Company's financial results by quarter for
fiscal 1997 and the first three quarters of fiscal 1998. 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.
Quarter Ended
Statement of Operations Data
(in thousands, except per share data)
<CAPTION>
Fiscal 1997 Fiscal 1998
---------------------------------------- ---------------------------
June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31
-------- -------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues $40,843 $41,058 $42,028 $43,073 $35,331 $36,838 $40,713
Cost of revenues 31,993 30,889 32,305 32,245 26,430 27,465 30,778
-------- ------- ------- ------- ------- ------- -------
Gross profit 8,850 10,169 9,723 10,828 8,901 9,373 9,935
-------- ------- ------- ------- ------- ------- -------
Expenses:
Research and development 2,229 3,444 2,903 3,292 3,031 3,868 3,814
Marketing and administrative 4,022 4,105 4,170 4,511 4,251 4,602 4,463
-------- ------- ------- ------- ------- ------- -------
Total expenses 6,251 7,549 7,073 7,803 7,282 8,470 8,277
Operating income 2,599 2,620 2,650 3,025 1,619 903 1,658
Interest income, net 284 298 342 412 459 492 502
-------- ------- ------- ------- ------- ------- -------
Income before provision for income taxes 2,883 2,918 2,992 3,437 2,078 1,395 2,160
Provision for income taxes (995) (1,007) (1,032) (1,185) (696) (467) (583)
-------- ------- ------- ------- ------- ------- -------
Net income $ 1,888 $ 1,911 $ 1,960 $ 2,252 $ 1,382 $ 928 $ 1,577
======== ======= ======= ======= ======= ======= =======
Net income per share-basic and diluted $ 0.14 $ 0.15 $ 0.15 $ 0.17 $ 0.11 $ 0.07 $ 0.12
======== ======= ======= ======= ======= ======= =======
Weighted average common
shares and equivalents 13,048 13,098 13,042 13,040 13,073 13,219 13,226
</TABLE>
8
<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. 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, 1997 and 1996
Revenues. Revenues were $40.7 million and $42.0 million for the third quarter of
fiscal years 1998 and 1997, respectively, representing a decrease of
approximately 3%. Government revenues during the third quarter of fiscal 1998
totaled $25.4 million, a decrease of 8% from government revenues of $27.7
million recorded during the third quarter of fiscal 1997. Commercial revenues
grew from $14.3 million during the third quarter of fiscal 1997 to $15.3 million
for the third quarter of fiscal 1998. During the third quarter of fiscal 1998,
revenues from the Company's commercial contract manufacturing services totaled
$7.0 million, up from $6.7 million recorded for the third quarter of fiscal
1997. Revenues from the sale of commercial telecommunication chip and board
level products totaled $4.7 million for the third quarter of fiscal 1998, up
from $4.0 million achieved during the third quarter of the previous fiscal year.
Cost of Revenues. Cost of revenues were $30.8 million and $32.3 million for the
third quarter of fiscal 1998 and 1997, respectively, representing a 5% decrease.
The decrease was a result of the recognition of costs on lower revenue and an
increase in 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 $3.8 million and $2.9 million during the third quarter of fiscal 1998 and
1997, respectively. Excluding bid and proposal expenses, the Company's research
and development expenses applied to the development of its products such as,
wireless broadband communications and cable high speed modems were $3.0 million
and $2.3 million during the third quarter of fiscal 1998 and 1997, 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.
Marketing and Administrative. Marketing and Administrative expenses were $4.5
million and $4.2 million for the third quarter of fiscal 1998 and 1997,
respectively. This increase is primarily a result of increased legal expenses
primarily associated with a patent infringement case brought by the Company in
December 1996 and increased marketing expenses in pursuit of commercial
opportunities.
Operating Income. Operating income was $1.7 million and $2.6 million for the
third quarter of fiscal 1998 and 1997, respectively. The decrease in operating
income during the third quarter of fiscal 1998 was primarily attributable to a
decrease in revenue, increased research and development, and increased marketing
and administrative expenses in pursuit of commercial opportunities.
9
<PAGE>
Interest Income. Interest income for the third quarter of fiscal 1998 was $502
thousand versus $342 thousand for the third quarter of the previous fiscal year.
The increase in interest income is primarily a result of the Company maintaining
higher average balances in U.S. treasury instruments and money market accounts.
Provision for Income Taxes. Provision for income taxes was $0.6 million and $1.0
million for the third quarter of fiscal years 1998 and 1997, respectively. This
represents a provisional tax rate of 27.0% and 34.5% for the third quarter of
fiscal 1998 and 1997, respectively. The decrease in the effective tax rate
results primarily from increased Research and Development tax credits and other
state income tax credits. The Company anticipates its effective tax rate to be
31.0 % for fiscal year 1998.
Comparison of Nine Months Ended December 31, 1997 and 1996
Revenues. Revenues were $112.9 million and $123.9 million for the nine months
ended December 31, 1997 and 1996, respectively, representing a decrease of 9%.
Government revenues of $70.2 million recorded during the first nine months of
fiscal 1997, were essentially the same during the first nine months of fiscal
1998. Commercial revenues during the first nine months of fiscal 1998 totaled
$42.6 million, a decrease of 20% from commercial revenues of $53.6 recorded
during the first nine months of fiscal 1997. During the first nine months of
fiscal 1998, revenues from the Company's commercial contract manufacturing
services totaled $18.4 million down from $28.3 million recorded for the nine
months of fiscal 1997. Revenues from the sale of commercial telecommunication
chip and board level products totaled $11.4 million for the first nine months of
fiscal 1998, down from $13.5 million achieved during the nine months of the
previous fiscal year.
Cost of Revenues. Cost of revenues were $84.7 million and $95.2 million for the
nine months of fiscal 1998 and 1997, respectively, representing an 11% decrease.
The decrease during the nine months of fiscal 1998 was a result of the
recognition of costs on lower revenue and a decrease in lower margin commercial
electronic manufacturing revenues.
Research and Development. Research and development expenses, including bid and
proposal expenses were $10.7 million and $8.6 million for the first nine months
of fiscal 1998 and 1997, respectively, representing an increase of approximately
25%. Excluding bid and proposal expenses, the Company's research and development
expenses applied to the development of products such as, wireless broadband
communications and cable high speed modems were $8.6 million and $6.8 million
for the first nine months of fiscal 1998 and 1997, respectively.
Marketing and Administrative. Marketing and administrative expenses were $13.3
million and $12.3 million for the first nine months of fiscal 1998 and 1997,
respectively, representing an increase of approximately 8%. This increase is a
result of increased legal expenses primarily associated with a patent
infringement case brought by the Company in December 1996 and increased
marketing expenses in pursuit of commercial opportunities.
Operating Income. Operating income was $4.2 million and $7.9 million for the
nine months of fiscal 1998 and 1997, respectively. The decrease in operating
income during the first nine months of fiscal 1998 was primarily attributable to
a decrease in revenue, increased research and development, and increased
marketing and administrative expenses in pursuit of commercial opportunities.
Interest Income. Interest income for the first nine months of fiscal 1998 was
$1.4 million versus $0.9 million for the first nine months of the previous
fiscal year. The increase in interest income is primarily a result of the
Company maintaining higher average balances in U.S. treasury instruments and
money market accounts.
10
<PAGE>
Provision for Income Taxes. Provision for income taxes was $1.7 million and $3.0
million for the first nine months of fiscal 1998 and 1997, respectively. This
represents a provisional tax rate of 31.0% and 34.5% for the first nine months
of fiscal 1998 and 1997, respectively. The decrease in the effective tax rate
results primarily from increased Research and Development tax credits and other
state income tax credits. The Company anticipates its effective tax rate to be
31.0 % for fiscal year 1998.
Bookings and Backlog
Funded bookings were $38.0 million and $42.1 million for the third quarter of
fiscal 1998 and 1997, respectively, and $123.5 million and $121.0 million for
the nine months ended December 31, 1997 and 1996, 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 1998 and 1997,
backlog stood at $94.5 million and $79.9 million, respectively.
Liquidity and Capital Resources
Working capital increased from $63.3 million to $71.4 million at December 31,
1996 and 1997, respectively, and increased by $5.0 million from the end of
fiscal 1997.
The Company's cash and cash equivalents and short-term investments decreased to
$25.3 million at December 31, 1997 from $33.3 million at March 31, 1997. The
decrease in cash has primarily been the result of (i) the payment for
inventories to support future delivery of commercial products,(ii) the timing of
collections from customers and payment of operating costs and (iii) the
requirement to secure capital equipment to support company growth.
Net cash used in operating activities for the nine months of fiscal 1998 ended
December 31, 1997 was $4.7 million. During the first three quarters of fiscal
1998, the Company realized net income of $3.9 million, increased its inventories
by $7.5 million, increased its billed and unbilled receivables by $7.4 million,
and increased its liabilities by $2.7 million. Net cash provided by operating
activities for the nine months of fiscal 1997 ended December 31, 1996 was $9.9
million. During the nine months of fiscal 1997, the Company realized net income
of $5.7 million, decreased its inventories by $7.6 million, increased its
receivables, billed and unbilled, by $11.5 million, and increased its
liabilities by $2.2 million.
The Company has a bank credit commitment of $15.0 million which it can utilize
to augment cash flow needs and to secure standby letters of credit. Available
borrowings under this line at December 31, 1997 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, 1997. The credit
agreement expires on December 18, 1998. At December 31, 1997, the Company's
long-term obligations (including current maturities) and other long-term
liabilities totaled approximately $1.0 million. At December 31, 1997, cash and
cash equivalents of $7.1 million were substantially held in money market
accounts, and short term investments of $18.2 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.
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.
11
<PAGE>
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/ Jerome F. Klajbor
- --------------------------------------------
Jerome F. Klajbor
Vice-President and Chief Financial Officer
(Principal Financial and Accounting Officer)
January 30, 1997
11
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
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> APR-01-1997
<PERIOD-START> MAR-31-1998
<PERIOD-END> DEC-01-1997
<CASH> 7,129
<SECURITIES> 18,221
<RECEIVABLES> 53,329
<ALLOWANCES> 0
<INVENTORY> 14,246
<CURRENT-ASSETS> 96,783
<PP&E> 53,822
<DEPRECIATION> 39,503
<TOTAL-ASSETS> 111,426
<CURRENT-LIABILITIES> 25,383
<BONDS> 0
0
0
<COMMON> 130
<OTHER-SE> 84,972
<TOTAL-LIABILITY-AND-EQUITY> 111,426
<SALES> 112,881
<TOTAL-REVENUES> 112,881
<CGS> 84,673
<TOTAL-COSTS> 108,701
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 5,633
<INCOME-TAX> 1,746
<INCOME-CONTINUING> 3,887
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,887
<EPS-PRIMARY> 0.30
<EPS-DILUTED> 0.30
</TABLE>
