<PAGE> 1
CONFORMED COPY
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 1995
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: 0-11485
ACCELR8 TECHNOLOGY CORPORATION
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(Exact name of registrant as specified in its charter)
Colorado 84-1072256
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
303 East 17th Avenue, Suite 108, Denver, Colorado 80203
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(Address of principal executive offices)
(303) 863-8088
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(Registrant's telephone number, including area code)
Not Applicable
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(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 at least the past 90 days. Yes __x__ No _____
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Shares Outstanding
Class of Securities (as of November 30, 1995)
------------------- --------------------
Common Stock, no par value 21,970,000
<PAGE> 2
INDEX
ACCELR8 TECHNOLOGY CORPORATION
PART I. FINANCIAL INFORMATION
Page
----
Item 1. Financial Statements
--------------------
Balance Sheets:
As of October 31, 1995 (unaudited) and July 31, 1995 3
Statements of Operations (unaudited):
For the three months ended October 31, 1995 and 1994 4
Statements of Cash Flows (unaudited):
For the three months ended October 31, 1995 and 1994 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 7
Signatures 8
<PAGE> 3
ACCELR8 TECHNOLOGY CORPORATION
BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
October 31, 1995
(Unaudited) July 31, 1995
--------------------- -----------------
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 628,009 $ 437,425
Accounts receivable 222,454 292,536
Prepaid expenses 0 1,170
-------- ---------
Total Current Assets 850,463 731,131
-------- ---------
Property and Equipment:
Computer equipment 250,091 248,620
Furniture and fixtures 11,231 11,231
-------- ---------
Total Property and Equipment 261,322 259,851
Less accumulated depreciation 195,061 189,345
-------- ---------
Net Property and Equipment 66,261 70,505
-------- ---------
Software Development Cost:
Software development cost 847,468 826,038
Less accumulated amortization 675,023 650,023
-------- ---------
Net Software Development Cost 172,445 176,015
TOTAL ASSETS $ 1,089,169 $ 977,651
========= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 66,390 $ 60,141
Accrued liabilities 28,869 30,773
Deferred revenue 8,350 0
Deferred maintenance 81,718 89,801
---------- --------
Total Current Liabilities 185,327 180,715
---------- --------
Product Development Advance 50,000 50,000
---------- --------
</TABLE>
<PAGE> 4
ACCELR8 TECHNOLOGY CORPORATION
BALANCE SHEETS
(Continued)
<TABLE>
<CAPTION>
October 31, 1995
(Unaudited) July 31, 1995
------------------- -----------------
<S> <C> <C>
Shareholders' Equity:
Common stock, no par value:
55,000,000 shares authorized;
21,970,000 shares issued and
outstanding 1,970,970 1,970,970
Contributed capital 41,449 41,449
Accumulated deficit (1,158,577) (1,265,483)
--------- ---------
Total Shareholders' Equity 853,842 746,936
--------- ---------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 1,089,169 $ 977,651
========= =========
</TABLE>
<PAGE> 5
ACCELR8 TECHNOLOGY CORPORATION
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Three Months Ended
October 31, 1995 October 31, 1994
------------------ ------------------
<S> <C> <C>
Revenues:
Product license and customer
support fees $ 116,815 $ 218,541
Resale of software purchased 57,154 56,382
Consulting 166,477 9,250
---------- ----------
Total Revenues 340,446 284,173
---------- ----------
Expenses:
General and administrative 60,358 73,856
Marketing and advertising 79,255 94,991
Research and development 77,730 69,159
Software purchased for resale 23,350 22,523
----------- ----------
Total Expenses 240,693 260,529
----------- ----------
Income (Loss) from operations 99,753 23,644
Interest income 7,153 1,030
----------- ----------
Net Income (Loss) $ 106,906 $ 24,674
=========== ==========
Weighted average shares
outstanding 26,364,000 21,970,000
=========== ==========
Net income (loss) per share $ * $ *
=========== ==========
* Less than $.01 per share
</TABLE>
<PAGE> 6
ACCELR8 TECHNOLOGY CORPORATION
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Three Months Ended
October 31, 1995 October 31, 1994
----------------- ------------------
<S> <C> <C>
Cash flows from operating activities:
Cash received from product license
and support fees $ 209,948 $ 200,895
Cash received from resale of
purchased software 87,741 39,705
Cash received from consulting fees 114,009 9,250
Cash paid to suppliers and employees (205,366) (194,074)
Interest received 7,153 1,030
------------ -----------
Net cash provided by operating
activities 213,485 56,806
------------ -----------
Cash flows from investing activities:
Software development costs (21,430) (22,519)
Purchase of computer equipment (1,471) 0
------------ -----------
Net cash used in investing activities (22,901) (22,519)
------------ -----------
Cash flows from financing activities:
Payments of product development
advance 0 0
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Net cash used in financing activities 0 0
------------ -----------
Net increase (decrease) in cash and
cash equivalents 190,584 34,287
Cash and cash equivalents at beginning
of period 437,425 85,325
------------ -----------
Cash and cash equivalents at end of
period $ 628,009 $ 119,612
============ ===========
</TABLE>
<PAGE> 7
ACCELR8 TECHNOLOGY CORPORATION
STATEMENTS OF CASH FLOWS
(Unaudited)
(Continued)
<TABLE>
<CAPTION>
Three Months Ended Three Months Ended
October 31, 1995 October 31, 1994
----------------- ------------------
<S> <C> <C>
Reconciliation of net income (loss) to
net cash provided by (used in)
operating activities:
Net income (loss) $ 106,906 $ 24,674
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization 30,715 38,280
Net change in assets and
liabilities:
Accounts receivable 70,082 (34,323)
Prepaids 1,170 0
Accounts payable and
accrued liabilities 4,345 18,938
Deferred revenue 8,350 0
Deferred maintenance (8,083) 9,237
----------- ----------
Net cash provided by operating
activities $ 213,485 $ 56,806
=========== ==========
</TABLE>
<PAGE> 8
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
NOTE TO FINANCIAL STATEMENTS
Note 1. Accounting Policies
The financial information provided herein was prepared from the books and
records of the Company without audit. The information furnished reflects all
normal recurring adjustments which, in the opinion of the Company, are
necessary for a fair statement of the balance sheets, statements of
operations, and statements of cash flows, as of the dates and for the periods
presented. The Notes to Financial Statements included in the Company's 1995
Annual Report on Form 10-K should be read in conjunction with these
consolidated financial statements.
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Changes in Result of Operations: 1995 Compared to 1994
Revenues for the quarter were $340,446, while revenues during the
corresponding quarter of the previous fiscal year were $284,173. Sales to
Telos Federal Systems of $105,688 represented in excess of ten percent of the
total revenues generated during the quarter. Product license and customer
support fees decreased by $101,726 while consulting fees increased by $157,227
as compared to the previous corresponding quarter. These changes are
consistent with a change in emphasis during fiscal 1995 on marketing its
services rather than products alone.
General and administrative expenses for the quarter were $60,358, while
those same expenses were $73,856 during the corresponding quarter of the
previous year. This decrease is largely due to a decrease in personnel
expense which decrease is partially offset by increases in health insurance
premiums.
During the quarter, marketing and advertising expenses were $79,255,
compared with $94,991 for the corresponding quarter of the previous year. This
decrease is the result of a decrease in consulting expense offset to some
extent by an increase in commission and documentation expenses during the
current quarter as compared to the corresponding quarter of the previous year.
Research and development expenses were $77,730, compared with $69,159 for
the corresponding quarter of the previous year. This increase is due to a
greater amount of salary for the technical staff being expensed due to the
increase in consulting services being performed during the current quarter
plus cost of a consultant to meet delivery requirements of a major customer.
Amoritzation of software costs has decreased during the current quarter due
to a decreasing amount of capitalized software.
During the quarter, cost of software purchased for resale was $23,350
compared with $22,523 for the corresponding quarter of the previous year.
<PAGE 9>
Interest income was $7,153 compared with $1,030 for the corresponding
quarter of the previous year. This increase is largely due to a greater amount
of invested cash resulting from an increase in cash generated by operations.
The Company was profitable during the quarter, experiencing a net income
of $106,906 compared with a net income of $24,674 during the corresponding
quarter of the previous year. This increase in profitability was the result of
an increase in sales of $56,273 plus a decrease in expenses of $19,835 and an
increase in interest income of $6,123.
Capital Resources and Liquidity
At quarter end (October 31, 1995) as compared to the Company's most recent
fiscal year end (July 31, 1995), current assets increased 16% from $731,131 to
$850,462 and the Company's liquidity, as measured by available cash, increased
by 44% from $437,425 to $628,008. The increase in current assets was
attributable to an increase (17%) in cash and accounts receivable during the
quarter compared to the year end figure. During the same period,
shareholders' equity increased 14% from $746,936 to $853,842 as a result of the
net profit described above.
Major capital needs in the near future will be for administrative
expenses, sales and marketing of finished products, and continued costs for
development and enhancements of software products.
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule (filed electronically only)
(b) Reports on Form 8-K
None
<PAGE> 10
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has caused this Report to be signed on its behalf by
the undersigned duly authorized person.
ACCELR8 TECHNOLOGY CORPORATION
Date: December 14, 1995 By: /s/ Thomas V. Geimer
---------------------------------------------
Thomas V. Geimer, Principal Financial Officer
<PAGE> 11
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT DESCRIPTION PAGE
- - ------- ----------- ----
<S> <C> <C>
EX-27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ACCELR8
TECHNOLOGY CORPORATION OCTOBER 31, 1995 10-Q AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<CIK> 0000727207
<NAME> ACCELR8 TECHNOLOGY CORPORATION
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUL-31-1995
<PERIOD-END> OCT-31-1995
<CASH> 628,009
<SECURITIES> 0
<RECEIVABLES> 222,454
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 850,463
<PP&E> 261,322
<DEPRECIATION> 195,061
<TOTAL-ASSETS> 1,089,169
<CURRENT-LIABILITIES> 185,327
<BONDS> 0
<COMMON> 1,970,970
0
0
<OTHER-SE> (1,117,128)
<TOTAL-LIABILITY-AND-EQUITY> 853,842
<SALES> 57,154
<TOTAL-REVENUES> 340,446
<CGS> 23,350
<TOTAL-COSTS> 240,693
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 106,906
<INCOME-TAX> 0
<INCOME-CONTINUING> 106,906
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 106,906
<EPS-PRIMARY> .005
<EPS-DILUTED> .004
</TABLE>
