UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10 QSB
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended March 31, 2000
Commission file number 0-12227
Sutron Corporation
(Exact name of registrant as specified in its charter.)
Virginia 54-1006352
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation organization)
21300 Ridgetop Circle, Sterling Virginia 20166
(Address of principal executive offices) (Zip Code)
(703) 406-2800
(Registrant's telephone number, including area code)
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 [ ]
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practical date:
Common Stock, $.01 Par Value - 4,298,351 shares of as of March 31, 2000.
<PAGE>
<TABLE>
PART I. - FINANCIAL INFORMATION
SUTRON CORPORATION
BALANCE SHEETS
<CAPTION>
(Unaudited)
March 31, December 31,
2000 1999
___________ ___________
<S> <C> <C>
Assets
Current Assets:
Cash $105,260 $159,507
Accounts receivables 1,172,825 1,682,634
Cost and estimated earnings in excess
of billings 6,823 -
Inventory 2,495,510 2,537,248
Other 336,867 225,707
___________ ___________
Total Current Asset 4,117,285 4,605,096
Property, Plant, and Equipment,
less accumulated depreciation
and amortization of $1,400,160
and $1,355,715 732,825 677,566
Deposits and Other Assets 97,991 14,247
___________ __________
TOTAL ASSETS $4,948,101 $5,296,909
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current Liabilities:
Accounts payable $433,136 $502,961
Accrued payroll 71,916 151,661
Accrued expenses 599,755 591,194
Accrued income taxes (14,959) -
Contract billings on contracts in progress in
excess of costs and estimated earnings - 4,598
Estimated losses on uncompleted contracts 6,907 21,907
Line of credit - -
Shareholder loans payable - -
Current maturities of long-term notes 25,000 25,000
_______ ______
Total Current Liabilities 1,121,755 1,297,321
Long-term liabilities:
Long-term notes payable 43,750 50,000
_________ __________
Total liabilities 1,165,505 1,347,321
Stockholders' Equity:
Common stock, $.01 par value, 42,984 42,984
Additional paid in capital 2,316,236 2,316,236
Retained Earnings 1,423,376 1,590,368
___________ __________
Total Stockholders' Equity 3,782,596 3,949,588
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $4,948,101 $5,296,909
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
SUTRON CORPORTION
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three Months Ended
March 31,
2000 1999
___________ ___________
<S> <C> <C>
Revenues $1,917,570 $2,535,190
Cost of Goods Sold 1,201,628 1,529,072
___________ __________
Gross Profit 715,942 1,006,118
Research and Development Expenses 413,880 228,378
Selling, General, and
Administrative Expenses 603,432 606,436
___________ ___________
Income (Loss) from Operations (301,370) 171,304
Other Expense - 7,682
Interest Expense 1,622 11,135
Income (Loss) before Provision ____________ ___________
for Income Taxes (302,992) 152,487
Provisions for Income Taxes (136,000) 45,500
____________ ___________
Net Income $(166,992) $106,987
Net Income per Common Share $(.04) $.02
Weighted Average Number
of Common Shares 4,298,351 4,298,351
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
SUTRON CORPORTION
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Three Months Ended
March 31,
2000 1999
___________ __________
<S> <C> <C>
Cash Flows from Operating Activities:
Net income (loss) $(166,992) $ 106,987
Depreciation and amortization 44,445 26,994
(Increase) Decrease in:
Accounts receivables 509,809 370,011
Costs and estimated earnings in
excess of contract billings (6,823) 601,956
Inventory 41,738 (364,805)
Other assets (194,904) 47,863
Increase (Decrease) in:
Accounts payable (69,825) (312,644)
Accrued expenses (71,184) (174,194)
Accrued income taxes (14,959) 45,240
Contract billings in excess of
costs and earnings (4,598) -
Estimated losses on uncompleted
contracts (15,000) 0
__________ _______
Net Cash Provided by Operating Activities 51,707 347,408
Cash Flows from Investing Activities:
Capital expenditures (99,704) (90,026)
Net Cash Used in Investing Activities (99,704) (90,026)
Cash Flows from Financing Activities:
Payments on line of credit - (157,428)
Payments on Term notes payable (6,250) (6,250)
Payments on Installment notes payable - (2,999)
Payments on shareholder notes - - ___________ __________
Net Cash (Used) by Financing Activities (6,250) (166,677)
Net Increase (Decrease) in Cash (54,247) 90,705
Cash and Cash Equivalents, January 1 159,507 76,205
___________ __________
Cash and Cash Equivalents, March 31 $ 105,260 $ 166,910
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
SUTRON CORPORATION
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
1. Basis of Presentation
The accompanying financial statements, which should be read in conjunction
with the financial statements of Sutron Corporation ("the Company") included
in the 1999 Annual Report filed on Form 10-KSB, are unaudited but have
been prepared in the ordinary course of business for the purpose of providing
information with respect to the interim period. The Company believes that all
adjustments (none of which were other than normal recurring accruals)
necessary for a fair presentation for such periods have been included.
2. Earnings Per Share
The Company has adopted Statement of Financial Accounting
Standards ("SFAS") No. 128 which establishes standards for
computing and presenting earnings per share (EPS) for entities
with publicly held common stock. The standard requires
presentation of two categories of earning per share, basic EPS
and diluted EPS. Basic EPS excludes dilution and is computed
by dividing income available to common stockholders by the
weighted-average number of common shares outstanding for
the year. Diluted EPS reflects the potential dilution that could
occur if securities or other contracts to issue common stock were
exercised or converted into common stock or resulted in the
issuance of common stock that then shared in the earnings
of the Company.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
Net Revenues. The Company's revenues for the three months
ended March 31, 2000 decreased 24% to $1,917,570 from $2,535,190
in 1999 due to decreased revenues from sales of products and
services. Sales of the 8210 datalogger product line were
significantly lower than the prior year.
Gross Profit. Gross profit for 2000 decreased to $715,942 from
$1,006,118 in 1998. Gross margin as a percentage of revenues
for 2000 decreased to 37% as compared to 40% in 1999. The
decrease in the Company's gross margin as a percentage of sales
is attributed to decreased sales volume and to decreased sales
of standard products which carry higher margins than services.
Selling, General And Administrative. Selling, general
and administrative expenses decreased to $603,432 in 2000
from $606,436 in 1999, a decrease of $3,003.
Research And Development. Research and development expenses
increased 81% to $413,880 in 2000 from $228,378 in 2000, an
increase of $185,502. The Company has increased its
engineering staff significantly in an effort to expand its
R&D activities and decrease development times.
Interest Expenses. Interest expenses decreased to $1,622 in 2000
from $11,135 in 1999 as a result of the company's reduced
borrowings on the line of credit.
The Company's backlog of orders at March 31, 2000 was
$3,311,431. The Company anticipates that 90% of its
March backlog will be shipped in 2000.
Liquidity and Capital Resources
Cash and cash equivalents decreased to $105,259 at March 31, 2000,
compared to $166,910 at December 31, 1999.
The ratio of current assets to current liabilities was 3.7 as of
March 31, 2000, compared to 3.6 as of December 31, 1999. Working
capital decreased $314,514 to $2,993,261 at the end of the first
quarter of fiscal 2000 compared to $3,307,775 at the end of fiscal 1999.
Management believes internally generated funds and short-term
borrowings on our existing credit line will provide adequate resources
for supporting operations during the remainder of fiscal 2000.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
B. Reports on Form 8-K
No reports have been filed on Form 8-K during this quarter.
<PAGE>
SUTRON CORPORATION
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
Sutron Corporation
(Registrant)
May 15, 2000 /s/Raul S. McQuivey
Date Raul S. McQuviey
Principal Executive Officer
May 15, 2000 /s/Sidney C. Hooper
Date Sidney C. Hooper
Principal Accounting Officer
<SEQUENCE>2
[DESCRIPTION]STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
Exhibit 11
Sutron Corporation
Computation of Per Share Earnings
<TABLE>
<CAPTION>
Three Months Ended
March 31,
2000 1999
__________ _________
<S> <C> <C>
Basic EPS
Average shares outstanding 4,298,351 4,298,351
Net Income $(166,992) $106,987
Net Income per common share $(.04) $.02
Dilutive EPS
Average shares outstanding 4,298,351 4,298,351
Effect of dilutive securities 51,543 25,900
Total average shares outstanding 4,349,894 4,324,251
Net earnings $(166,992) $106,987
Net income per diluted share $(.04) $.02
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Article 5 Fin. Data Schedule for 1st Qtr 10-QSB
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 105260
<SECURITIES> 0
<RECEIVABLES> 1187825
<ALLOWANCES> 15000
<INVENTORY> 2495510
<CURRENT-ASSETS> 4117285
<PP&E> 2132985
<DEPRECIATION> 1400160
<TOTAL-ASSETS> 4948101
<CURRENT-LIABILITIES> 1124024
<BONDS> 0
<COMMON> 42984
0
0
<OTHER-SE> 3737343
<TOTAL-LIABILITY-AND-EQUITY> 4948101
<SALES> 1917570
<TOTAL-REVENUES> 917570
<CGS> 1201628
<TOTAL-COSTS> 1201628
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1622
<INCOME-PRETAX> (302992)
<INCOME-TAX> (136000)
<INCOME-CONTINUING> (166992)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (166992)
<EPS-BASIC> (.04)
<EPS-DILUTED> (.04)
</TABLE>
