UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10 KSB
Annual Report Pursuant To Section 13 Or 15(D)
Of The Securities Exchange Act Of 1934
For the fiscal year ended: December 31, 1999
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
incorporation or organization) Identification No.)
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 [ ]
Check if there is no disclosure of delinquent filers in
response to Item 405 of Regulation S-B contained in this form,
and no disclosure will be contained, to the best of registrant's
knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or
any amendments to this Form 10-KSB. [ X ]
Issuer's revenues for its most recent fiscal year were
$11,405,413.
The aggregate market value of the voting stock held by non-
affiliates as of March 24, 2000 was approximately $2,040,000
based on the fair market value of such stock.
The number of shares outstanding of the issuer's
Common Stock, $.01 par value, as of March 24, 2000 was 4,298,351.
Documents Incorporated by Reference
Portions of the registrant's definitive proxy statement dated
April 6, 1999are incorporated in Part III as set forth herein.
PART I
Item 1. Business
Business Development
Sutron Corporation, incorporated in 1975, is an environmental
monitoring firm. The Company designs and manufactures
environmental monitoring and control systems for use by
government agencies and industry. The Company's business is to
provide real-time data collection,
telemetry, and technical expertise to monitor, control, manage,
and forecast activities in the areas of hydrology, meteorology
and water management.
Business
The Company offers products and professional services in the
areas of hydrology, meteorology and water mangement. Sutron's
products consist of sensors, data collection platforms (DCP's)
and remote terminal units (RTU's) with telemetry capability and
system and application software. Sutron provides services in
the integration and installation of turnkey real-time data
collection systems, the support of Sutron's data management
software and in the maintenance and repair of field site
sensors and data collection platforms. Sutron's customers
include a diversified base of federal, state and foreign
government agencies, universities, the Department of Defense
and hydropower companies.
Products
The Hydromet Products Division manufactures data
collection platforms,
remote terminal units and sensors. Sutron's data collection
platforms and remote terminal units collect and transmit sensor
data to central facilities by radio, telephone, cable, fiber
optics, or microwave. Sutron's sensors support the collection
of hydrological and meteorological data and include a tipping
bucket rain gauge, a barometric pressure sensor, a temperature
sensor, and several water level sensors. The Company's
equipment is compatible with sensors from other companies.
Sutron has long-standing relationships with suppliers for wind
speed and wind direction, water quality, humidity and solar
radiation sensors.
The Company received an ISO 9001 certification on
March 12, 1999. The Company's principal products are
described below.
8200/8210 Data Logger/Transmitter
The 8200/8210 Data Logger/Transmitter is a simple-to-
operate, low-cost data collection platform which supports a
wide variety of telemetry applications. The 8200/8210 is
environmentally hardened, capable of operating from -40 C to 60
C, making it ideal for remote locations. As a data recorder,
the 8200/8210 will store over 65,000 readings in battery backed
memory. The 8200/8210 supports a wide variety of
communications, including radio, satellite, and telephone. The
Telephone/Voice Synthesis option allows communications over
standard telephone circuits using either a synthesized voice
message or a modem connected to a computer terminal.
8400 Digital Data Logger
The 8400 Digital Data Recorder consists of a shaft encoder
and data logger integrated into a single enclosure that is
compatible with the accessories of older analog water level
recorders which it was designed to replace. The 8400 is a low
cost, low maintenance system that reduces te time required for
site servicing and data processing and makes water level
monitoring networks more efficient.
Accubar Gauge Pressure Sensor
The Accubar Gauge Pressure sensor is a highly accurate solid state
pressure transducer capable of measuring air/dry gas pressures
from 0 to 22 psi with a maximum pressure of 35 psi. It is housed
in an aluminum case and with its low power consumption and low
maintenance requirements, it is ideal for remote monitoring
applications.
AccuBubble Self-Contained Bubbler
The AccuBubble Self-Contained Bubbler is a mercury-free and
nitrogen-free bubbler apparatus designed for low maintenance
water level measuring. Using the Sutron Accubar Pressure Sensor
as the control and sensing element makes the AccuBubble a very
stable and highly accurate water level measuring device.
The AccuBubble uses power conservation techniques to minimize
current consumption. The bubbler purges the orifice line prior to
each measurement. This eliminates the need for a constant bubble rate,
which has been known to consume excessive power. In addition, the
purging sequence prevents debris build up in the orifice line.
The AccuBubble uses an oil-less, non-lubricated piston and cylinder
compressor. This type of compressor is designed to give consistent
air delivery without the use of a diaphragm which can rupture over time.
The AccuBubble uses the SDI-12 communications protocol as the control
interface. This allows the unit to be configured by any data loggers
supporting the SDI-12 standard.
Services
The company provides system integration services which include
the sale of Sutron's real-time database software (PC
Base II), the design and development of customer-specific
hardware configurations and software applications, and long-
term software support for PC Base II users. This
capability allows the Company to provide turnkey hydrological
and meteorological systems to a variety of users.
Distribution Methods of Products and Services
The Company's products and services are currently sold in the
United States by the Company's direct sales force. As of
December 31, 1999, the Company employed ten salaried sales and
marketing personnel, including four engaged directly in field
sales activities, and six in various other marketing and sales
support functions. Internationally, the Company utilizes
sales agents to sell its products and services.
Customers
During 1999, approximately 69% of the Company's products and
services were sold to the Federal Government. Revenues in 1999
among the various agencies were as follows: U.S. Army Corps of
Engineers, 12%;
Department of Defense, 3%; Department of the Interior, 52%; and
various other agencies of the federal government, 2%. The
revenues from the Corps of Engineers were spread among some ten
(10) separate Districts, and the revenues from the Department
of the Interior among two (2) agencies, the U.S. Geological Survey
and the Bureau of Reclamation.
The Company also performed on various contracts of foreign
origin. Total revenues from foreign customers amounted to
approximately 11% of total revenues in 1999, 29% in 1998 and
14% of total revenues in 1997. Sutron
actively markets its products and services internationally.
Contracts for products or services with federal, state and
local government agencies typically allow for termination at
the convenience of the government and for audit and annual
negotiation of overhead rates. Upon termination, the Company
would be entitled to reimbursement for allowable costs incurred
and to a proportionate share of profits or fees earned to the
date of termination. Such contracts are also typically
dependent upon compliance by the contractor with applicable
civil rights, equal employment opportunity, and contract
procurement requirements.
The Company at this time has no
reason to believe that any material changes will occur in the
foreseeable future with respect to federal, state, or local
government programs or services with respect to which the
Company has been granted its contracts or provides its
services. However, due to changes in administration, national
goals and budgetary restrictions, funding of such programs or
services could be altered or abolished. If a substantial cut-
back in the level of funding by the applicable government
agency were to occur, it would have a material adverse effect
on the Company.
Further, while certain of the Company's
contracts are dependent upon its continued certification by the
Small Business Administration as a "Small Business" (the
principal elements for certification being an employer
principally engaged in specified activities with less than 500
employees), the Company does not believe it would be materially
affected by the loss of such certification(s) which usually
differ for each industry.
Competition
The Company is aware of both domestic and foreign competitors
offering complete real-time networks of their own, and
companies which fabricate real-time networks from components
manufactured by themselves and others. The Company is also
aware of numerous additional firms, ranging in size from large
to small, from general to highly specialized, and from new to
well established, offering competitive sensors and other
instruments, DCPs, telemetry equipment, satellite and other
electronic equipment, and software.
Several of these companies have financial, research and
development, marketing, management and technical resources
substantially greater than those of the Company. The Company
may also be at a competitive disadvantage because it purchases
certain sensors and other equipment components, as well as
computer hardware and peripheral equipment, from manufacturers
who are or may become competitors with respect to one or more
of the Company's products.
The Company, with respect to its professional engineering and
technical services, is in competition with numerous diverse
engineering and consulting firms, many of which have larger
staffs and facilities, and are better known, have greater
financial resources, and have more experience than the Company.
As to its maintenance services, the Company is aware that many
of the firms offering competitive products, as well as several
independent service organizations, offer maintenance services;
some of these companies have larger staffs, are better
equipped, and have greater financial, marketing and management
resources than the Company.
Price, performance and integration capabilities are believed by
the Company to be the primary competitive factors with respect
to all of its products and services.
Research and Development
During the three years ended December 31, 1999, 1998, and 1997,
Sutron's internally funded research and development costs were
$1,145,070, $937,991and $805,027 respectively. In 1999 the Company
released two new products, the DMXpert and
SmartPond. The DMXpert fully automates the velocity
and discharge calculations for streams while adding real-time
quality control procedures. SmartPond is a remote site
monitoring and control system used to maximize fish production
by collecting real-time water quality data.
Patents, Trademarks, Copyrights and Agreements
Although the Company does not deem patent protection to be of
significant importance to its industry, it has and may in the
future seek patents for certain of its products, real-time
networks, and technology as well as Company software products,
real-time networks, and technology. Company software products
and innovations may not be patentable but may be subject to
automatic but limited copyright protection. The Company has
treated its products, real-time networks, technology and
software as proprietary and relies on trade secret laws and
internal non-disclosure safeguards rather than making their
designs and processes generally available to the public by
applying for patents. Further, the Company believes that,
because of the rapid pace of technological change in the
computer, electronics and telecommunications industries, patent
and copyright protection is of less significance than factors
such as the knowledge and experience of Company personnel and
their ability to design and develop enhanced and new products,
real-time networks and their components.
Raw Materials
The raw materials used by the Company, such as electronic
components and fabricated parts, are generally available from a
wide variety of sources at competitive prices. The Company does
not anticipate that its present or proposed business activities
would be substantially adversely affected by the scarcity of
any raw materials.
Backlog
The Company's backlog at December 31, 1999 was $2,120,447 as
compared with $2,606,785 at December 31, 1998 . The Company
anticipates that 90% of its 1999 year-end backlog will be
shipped in 2000.
Employees
The Company had a total of 65 employees as of December 31,
1999 of which 64 were full time.
Item 2. Properties
On July 30, 1992, the Company entered into a five and one-half
year lease, for approximately 17,000 square feet of
manufacturing and office space in Sterling, Virginia. The
lease commenced on October 23, 1992. This facility allowed the
Company to consolidate it's manufacturing, systems integration,
research and development, and sales and administration
departments into one building. An option for an additional five
years was exercised in 1997.
The Company opened a customer service facility in Boise,
Idaho in 1998 and currently leases 2,500 square feet.
The facility is used to repair equipment and to perform
assembly operations.
In July, 1999, the Company leased additional space of approximately
7,000 square feet in Sterling, Virginia. Two departments will be
relocated to the new space during fiscal year 2000 in order to free up
more production and warehouse space at the corporate headquarters.
The Company believes that its facilities are adequate for its
present needs and that its properties are in good condition,
well maintained and adequately insured.
Item 3. Legal Proceedings
The Company is not a party to any pending legal proceeding nor
is its property the subject of a pending legal proceeding.
Item 4. Submission of Matters To A Vote of Security Holders
No matter was submitted during the fourth quarter of 1999 to a
vote of the Company's security holders, either through the
solicitation of proxies or otherwise.
PART II
Item 5. Market for Common Equity and Related Stockholder
Matters
(a) Market Information
The common stock of Sutron Corporation is quoted over the
counter through the NASD Bulletin Board supplied by the
National Association of Securities Dealers, Inc. under the
symbol STRN, and through the Pink Sheet Service of the National
Quotation Bureau, Inc. The following table shows the high and
low bid quotations in 1999 and 1998 by quarter as reported by
the National Quotation Bureau, Inc. and the National
Association of Securities Dealers, Inc. These quotations
represent prices between dealers in securities, do not include
retail mark-ups, mark-downs, or commissions and do not
necessarily represent actual transactions.
<TABLE>
MARKET INFORMATION
<CAPTION>
1999 1998
HIGH LOW HIGH LOW
<C> <S> <S> <S> <S>
First Quarter $1.38 $1.13 $1.97 $1.28
Second Quarter 1.44 1.00 2.38 1.88
Third Quarter 1.84 1.06 2.28 1.31
Fourth Quarter 2.00 1.34 1.75 1.31
</TABLE>
(b) Approximate Number of Equity Shareholders:
Title of Class: Common Stock, $.01 par value
Approximate Number of Record Holders At March 24, 2000: 315
(c) Dividends:
The Company has never paid a dividend on its common stock and the Board of
Directors intends for the foreseeable future to retain all earnings for use
in the Company's business.
Item 6. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The following discussion contains forward-looking statements, which reflect
the current views of the Company with respect to future events that could
have an effect on its future financial performance. These statements may
include such words as "expects," "believes," "estimates," and similar
expressions. These forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially
from historical results or those currently anticipated. Readers are
cautioned not to place undue reliance on these forward-looking statements.
The following table sets forth, for the periods presented, certain income
statement data of the Company expressed as a percentage of revenues:
<TABLE>
Percentage of Revenues
<CAPTION>
1999 1998 1997
<S> <C> <C> <C>
Revenues 100.0% 100.0% 100.0%
Cost of sales 58.3 62.8 63.9
Gross profit 41.7 37.2 36.1
Selling, general and
administrative expenses 21.3 21.2 19.1
Research and
Development expenses 10.0 9.5 8.1
Operating income 10.4 6.5 8.9
Other income - 1.6 -
Interest expense .4 .5 1.3
Income before
income taxes 10.0 7.6 7.6
Income taxes 3.5 (.8) 2.4
Net income 6.5% 8.4% 5.2%
</TABLE>
Fiscal 1999 Compared to Fiscal 1998
Results of Operations
The Company's revenues for 1999 increased 15% to $11.4
million from revenues of $9.9 million in 1998.
Sales to domestic customers increased to $10.1 million
from $7 million in 1998, an increase of 44%. Export sales
decreased to $1.3 million in 1999 from $2.9 million in 1998.
The Company was not awarded any major international projects
in 1999 and believes that foreign governments delayed
procurements due to economic conditions. The Company expects
export sales to increase significantly in fiscal year 2000
due to improving economic conditions.
Datalogger/Transmitter product sales increased 54% to
$7.6 million in 1999 from $5 million in 1998. The US
Geological Survey placed several orders totaling $1.9
million for the 8210 Datalogger with a
satellite transmitter. These orders were for the replacement of older
equipment no longer supported by a competitor. The Company does
not expect a repeat of these sales in 2000. Sales of services and
special parts used in systems decreased to $1.3 million from $1.7 million
reflecting the decrease in export sales. Sales of sensor and
accessory products decreased to $2.5 million from $3.2 million, also
a result of the decrease in export sales.
The Company's largest customer in each of 1999 and 1998 was the
Department of the Interior, the principal agencies being the U.S.
Geological Survey and the Bureau of Reclamation, which accounted
for 52% and 35% of revenues. Commercial and international
revenues represented 31% of revenues in 1999 versus 50% in 1998.
Gross Profit
Gross profit for 1999 increased 29% to $4.8 million from $3.7 million
in 1998. Gross margin as a percentage of revenues for 1999 increased
to 41.7% as compared to 37.2% in 1998.
The improved gross margin in 1999 is a result of reduced product costs
as well as greater absorption of overhead due to increased volumes and
efficiencies. The Company's gross margin is dependent in part on product
costs, product mix and overhead expenses, all of which fluctuate
from year to year.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 15% to
$2.4 million in 1999 from $2.1 million in 1998. Selling, general
and administrative expenses as a percentage of revenues increased
to 21.3% in 1999 from 21.2% in 1998 due to increased sales
personnel and expanded marketing activities.
Research and Development Expenses
Research and development expenses increased 22% to $1.1 million
in 1999 from $.9 million in 1998. Research and development expenses
as a percentage of revenues increased to 10% in 1999 from 9.5% in 1998.
In 1999, the company released two new products, the DMXpert and
SmartPond. The DMXpert fully automates the velocity and discharge
calculations for streams while adding real-time quality control procedures.
SmartPond is a remote site monitoring and control system used to
maximize fish production by collecting real-time water quality data.
Other Income (Expense)
Other income and expenses consisted of interest expenses of
$45 thousand in 1999 compared to $51,000 in 1998. On
December 31, 1998, the Company purchased Virginia Energy
Services (VES) 50% share of GenCom LLC for $5 thousand.
GenCom LLC was formed in February 1998 to market and
manufacture remote monitoring and control systems for power
generators. The LLC was owned equally by the Company and
by VES. The Company terminated the LLC in July 1999. Expenses
relating to the GenCom joint venture were $8 thousand in 1999
compared to expenses of $42,000 in 1998.
Fiscal 1998 Compared to Fiscal 1997
Results of Operations
The Company's revenues for 1998 and 1997 were approximately
the same at $9.9 million.
Sales to domestic customers decreased 18% to $7 million in 1998
from $8.5 million in 1997. Export sales increased to $2.9 million
from $1.4 million. The Company was awarded two significant
international projects in 1998. The first, a $.9 million project for
the Weather Service of Chile, was to install airport meteorological
monitoring systems. The second, a $1.6 million project for the
Central Water Commission of India, was to install hydrological
monitoring systems for two river basins.
Datalogger/Transmitter product sales decreased 21% to $5.0
million in 1998 from $6.3 million in 1997. The sales decline
was primarily due to the completion by the US Geological
Survey of a replacement program for the 8400 Data Recorder.
Sales of services and special parts used in systems increased to
$1.7 million from $1.2 million due to the increase in export sales.
Sales of sensor and accessory products increased to $3.2 million
from $2.4 million due to sales of $.5 million of the Accububble,
a new water level monitoring system and to the increase in export sales.
The Company's largest customer in each of 1998 and 1997 was the
Department of the Interior, the principal agencies being the
U.S. Geological Survey and the Bureau of Reclamation, which
accounted for 35% and 57% of revenues. Commercial and
international revenues represented 50% of revenues in 1998
versus 29% in 1997.
Gross Profit
Gross profit for 1998 increased 2.5% to $3.7 million from
$3.6 million in 1997. Gross margin as a percentage of revenues
for 1998 increased to 37.2% as compared to 36.1% in 1997.
Gross margins improved in 1998 but not significantly as
product sales carrying higher margins decreased approximately
$.6 million and were offset by increased sales of services and
non-standard products which carry lower margins. The margins
in 1997 were affected by cost overruns on the SIMEPAR project
in Brazil and on a repair contract for the US Air Force.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased 10.5%
to $2.1 million in 1998 from $1.9 million in 1997. Selling, general
and administrative expenses as a percentage of revenues increased
to 21.2% in 1998 from 19.1% in 1997 due to increased selling
expenses by the Integrated Services Division and the addition
of a network administrator.
Research and Development Expenses
Research and development expenses increased 16.5% to $.9 million
in 1998 from $.8 million in 1997. Research and development
expenses as a percentage of revenues increased to 9.5% in 1998
from 8.1% in 1997. In 1998 the Company developed and released
the AccuBubble, the EDACS certified 8210 and a new digital
direct read out ground station.
Other Income (Expense)
In 1998 the Company sold its 4.2 acre lot of land which was
originally valued at $1.3 million for $.7 million. Losses of
approximately $.8 million had been recognized in prior years
resulting in a gain on the sale of $.2 million. This gain was
offset by a loss of $42 thousand on an investment in GenCom
LLC. Gencom is a joint venture between Sutron and Virginia
Energy Services to market and manufacture remote monitoring
and control systems for power generators. Interest expenses for
1998 decreased to $51 thousand from $126 thousand in 1997
due to the Company's ability to reduce its debt.
Liquidity and Capital Resources
The Company's working capital was $3.3 million at
December 31, 1999, compared to $2.7 million at December 31, 1997.
Cash on hand was $159 thousand at December 31, 1999,
compared to $76 thousand at December 31, 1998.
This increase is primarily due to cash generated from operations
partially offset by purchases of property and equipment and cash
used by financing activities.
Net cash provided by operating activities was $1.1 million for
the year ended December 31, 1999, compared to cash used by
operations of $.3 million for the year ended December 31, 1998 and
cash provided by operations of $.7 million for the year ended
December 31, 1997.
Net cash used in investing activities was $.3 million for the year
ended December 31, 1999, compared to $.3 million and $.1 million
for the years ended December 31, 1998 and 1997, and was primarily
due to purchases of property and equipment.
Net cash used by financing activities was $.7 million for the
year ended December 31, 1999 and was due to the repayment in full
of amounts outstanding on the line of credit. Net cash used by
financing activities was $.1 million and $.5 million for the
years ended December 31, 1998 and 1997.
The Company has a revolving credit facility of $2.0 million and a
capital equipment credit facility of $.4 million, of which $75,000
had been utilized as of December 31, 1999. The terms of the credit
facility and capital equipment facility are until July 1, 2000 and
are subject to renewals thereafter.
Management believes that its existing cash resources, cash
flow from operations and short-term borrowings on our existing
credit line will provide adequate resources for supporting
operations during fiscal 2000.
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Stockholders
Sutron Corporation
Sterling, Virginia
We have audited the accompanying balance sheets of Sutron
Corporation as of December 31, 1999 and 1998, and the related
statements of operations, stockholders' equity (deficit), and cash flows
for each of the three years ended December 31, 1999, 1998 and 1997.
These financial statements are the responsibility of the Corporation's
management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of Sutron Corporationas of December 31, 1999 and 1998, and
the results of its operations and its cash flows for each
of the three years ended December 31, 1999, 1998 and 1997
in conformity with generally accepted accounting principles.
Thompson, Greenspon & Co.
Fairfax, Virginia
February 15, 2000
<PAGE>
<TABLE>
PART I. - FINANCIAL INFORMATION
SUTRON CORPORATION
BALANCE SHEETS
(In thousands)
<CAPTION>
December 31, December 31,
1999 1998
<S> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 159 $ 76
Accounts receivable 1,683 1,761
Costs and estimated earnings
in excess of billings on
contracts in progress - 1,137
Inventory 2,537 1,828
Prepaid items and other 226 369
Total current assets 4,605 5,171
Property, plant and equipment 2,033 1,777
Accumulated depreciation
and amortization (1,355) (1,241)
Net property, plant, and
equipment 678 536
Other assets 14 37
Total Assets $5,297 $5,744
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities
Accounts payable $ 503 $ 752
Accrued payroll 152 107
Other accrued expenses 591 732
Contract billings on contracts
in progress in excess of
costs and estimated earnings 4 117
Estimated losses on
uncompleted contracts 22 12
Line of credit - 651
Stockholder loans payable - 55
Current maturities of
long-term notes 25 28
Total current liabilities 1,297 2,454
Long-term notes 50 75
Total liabilities 1,347 2,529
Stockholders' equity
Common stock, 43 43
Additional paid-in capital 2,316 2,316
Retained Earnings (Deficit) 1,591 856
Total stockholders' equity 3,950 3,215
Total liabilities and
stockholders' equity $5,297 $5,744
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
SUTRON CORPORTION
STATEMENTS OF OPERATIONS
(In thousands, except share data)
<CAPTION>
Year Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
Revenue $11,405 $9,888 $9,940
Cost of sales 6,644 6,209 6,352
Gross profit 4,761 3,679 3,588
Selling, general and
administrative expenses 2,425 2,103 1,903
Research and development
expenses 1,145 938 805
Operating income 3,570 638 880
Other income (expense) (8) 164 -
Interest expense, net 45 51 (127)
Income before income taxes 1,138 751 753
Income taxes 403 (80) 239
Net income $735 $831 $514
Net income per common share .17 .20 .12
Net Income per diluted share .17 .19 .12
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
SUTRON CORPORATION
STATEMENTS OF STOCKHOLDERS' EQUITY
YEARS ENDED DECEMBER 31, 1999, 1998, AND 1997
(In thousands, except per share data)
<CAPTION>
COMMON PAID-IN ACCUMULATED
SHARES AMOUNT CAPITAL DEFICIT TOTAl
<S> <C> <C> <C> <C> <C>
Balance, December
31, 1996 4,225,851 $42 $2,283 (489) 1,836
Net income - - - 514 514
Balance, December
31, 1997 4,225,851 $42 $2,282 25 2,350
Retirement of
treasury shares (5,000) - (7) - (7)
Exercise of stock
options 77,500 1 40 - 41
Net income 831 831
Balances, December
31, 1998 4,298,351 $43 2,316 856 3,215
Net income - - - 735 735
Balance, December
31, 1999 4,298,351 $43 $2,316 $1,591 $3,950
<FN> See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
SUTRON CORPORTION
STATEMENTS OF CASH FLOWS
(In thousands, except per share data)
Year Ended December 31,
<CAPTION>
1999 1998 1997
<S> <C> <C> <C>
Cash flows from operating activities:
Net income $735 $831 $514
Non-cash items included in net income:
Depreciation and amortization 114 87 112
Gain (loss) on sale of equipment, net _- (207) -
Changes in current assets and
liabilities:
Accounts receivables 78 43 (609)
Costs and estimated earnings in
excess of billings on contracts
in progress 1,137 (734) 241
Inventory (709) (300) 606
Prepaid items and other 143 (297) (25)
Other assets 23 2 -
Accounts payable (249) 142 (285)
Accrued expenses (96) 344 38
Contract billings in excess of
costs and estimated earnings (113) (52) 7
Estimated losses on uncompleted
Contracts 10 (13) 24
Income taxes payable - (111) 110
Net cash provided by operating activities 1,073 (265) 733
Cash flows from investing activities:
Purchase of property and equipment (256) (438) (101)
Proceeds from sale of investment - 700 -
Net cash used by investing activities (256) 262 (101)
Cash flows from financing activities:
Proceeds from issuance of common stock - 34 -
Proceeds from line of credit, net - 77 -
Proceeds from term notes payable - 100 -
Payments on line of credit, net (651) - (332)
Payments on term notes payable (25) (272) (194)
Payments on installment loans (3) (4) (16)
Payments on stockholder loans (55) (25) -
Net cash used by financing activities (734) (90) (542)
Net increase (decrease) in cash and
cash equivalents 83 (93) 90
Cash and cash equivalents, beginning
of year 76 169 79
Cash and cash equivalents, end of year $159 $76 $169
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
SUTRON CORPORATION
NOTES TO FINANCIAL STATEMENTS
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
Sutron Corporation ("the Company") was incorporated
on December 30, 1975 under the General Laws of the
Commonwealth of Virginia. The Company designs and
manufactures environmental monitoring and control
systems for use by government agencies and industry.
The Company's products include sensors, data
collection platforms and remote terminal units with
telemetry capability and system and application
software. Sutron's customers include a diversified
base of Federal, state and foreign government
agencies, universities, and hydropower companies.
Revenue Recognition
The Company utilizes the accrual method of
accounting for both financial statement and tax
return reporting purposes. The Company recognizes
revenue from product sales upon shipment. Selling,
general, and administrative expenses are charged
against periodic income as incurred. Revenue
from cost-plus-fee contracts is recognized to the
extent of costs incurred, plus a proportionate
amount of fees earned. Revenue from fixed-price
contracts is recognized on the
percentage-of-completion method based on costs
incurred in relation to total estimated costs.
Revenue from time-and-materials contracts is
recognized to the extent of billable rates, times
hours delivered, plus materials costs incurred.
Contract costs include allocated indirect costs
and general and administrative expenses.
Anticipated losses are recognized as soon as
they become known.
Cash and Cash Equivalents
For purposes of the statements of cash flows,
cash equivalents include time deposits and all
highly liquid debt instruments with original
maturities of three months or less.
Interest paid amounted to $75,555 in 1999, $59,808
in 1998 and $117,438 in 1997. Income
taxes paid amounted to $492,065 in 1999, $130,627
in 1998 and $167,180 in 1997.
Accounts Receivable
The Company has had no material bad debts. The Company
set up a provision of $15,000 in 1999 for accounts that
may not be collected in future periods.
Amounts earned on completed contracts and receivables
that have not yet been billed, are recorded as unbilled
receivables.
Property, Plant and Equipment
Equipment is recorded at cost and depreciated over
estimated useful lives ranging from 3 to 7 years
using the straight-line method for financial statement
purposes and the straight-line and accelerated methods
for income tax purposes.
Expenditures for maintenance, repairs, and improvements
which do not materially extend the useful lives of
the assets are charged to earnings. When items of
property, plant, and equipment are disposed of, the
cost of the asset and the related accumulated
depreciation are removed from the accounts. Any
gain or loss resulting from the removal from service
is taken into the current period earnings.
Investment
Land held for sale is recorded at lower of cost or
net realizable value, based on management's estimate.
Income Taxes
The Company utilizes an asset and liability approach
to accounting for income taxes. The objective is to
recognize the amount of income taxes payable or
refundable in the current year based on the Company's
income tax return and the deferred tax liabilities
and assets for the expected future tax consequences
of events that have been recognized in the Company's
financial statements or tax returns.
The assets and liability method accounts for deferred
income taxes by applying enacted statutory rates to
temporary differences, the difference between
financial statement amounts and tax bases of assets
and liabilities. The resulting deferred tax
liabilities or assets are classified as current or
noncurrent based on the classification of the
related asset or liability. Deferred income tax
liabilities or assets are adjusted to reflect
changes in tax laws or rates in the year of enactment.
Financial Instruments
The estimated fair value of cash and cash equivalents,
accounts receivable, accounts payable and accrued
expenses and short term notes receivable approximate
their carrying amounts in the financial statements.
Based on the borrowing rates currently available to
the Company for debt with similar maturity dates and
collateral, the estimated fair value of long-term debt
is $50,000 at December 31, 1999.
Use of Estimates
The preparation of financial statements in conformity
with generally accepted accounting principles requires
management to make estimates and assumptions that
affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities
at the date of the financial statements and the
reported amounts of revenue and expenses during
the reporting period. Actual results could vary
from the estimates that were used.
Capital
The Company has 12,000,000, $.01 par value, shares
authorized. There were 4,298,351 shares issued and
outstanding at December 31, 1998 and 4,225,851
issued and outstanding in 1997.
The Company's Board of Directors has authorized the
repurchase of up to 100,000 shares of its common
stock in open market transactions. As of
December 31, 1999 5,000 shares have been repurchased.
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 earnings 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. Contracts to issue common
stock which are antidilutive in nature are not
included in the earnings per share calculations.
<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
Weighted average shares used in 4,298 4,235 4,226
Basic computation
Common stock equivalents-options 47 37 121
Weighted average shares used in 4,345 4,272 4,347
Diluted computation
</TABLE>
2. CONTRACTS IN PROGRESS
Information with respect to contracts in progress at
December 31, is as follows (in thousands):
<TABLE>
1999 1998
<S> <C> <C>
Direct and indirect costs, including overhead $654 $2,453
Earnings (loss) (57) 318
Totals $597 $2,771
Billings $624 $1,645
Costs and estimated earnings in excess of
billings (5) 1,138
Estimated losses on contracts in process (22) (12)
Totals $597 $2,771
</TABLE>
3. INVENTORY
Inventory is stated at the lower of cost or market.
Electronic components and work in process and finished goods
Costs consisting of materials, labor and overhead are
Recorded at a standard cost. Inventory consists of the
following at December 31 (in thousands):
<TABLE>
1999 1998
<S> <C> <C>
Electronic components $ 991 $ 692
Work in process 879 787
Finished goods 667 349
Totals $2,537 $ 1,828
</TABLE>
4. ACCUMULATED DEPRECIATION AND AMORTIZATION
Accumulated depreciation and amortization at
December 31, is as follows (in thousands):
1999 1998
Furniture and equipment $1,316 $1,209
Automotive equipment 28 22
Leasehold improvements 12 10
Totals $1,355 $1,241
5. LINE OF CREDIT
The Company signed a loan and security agreement
which extends the Company a revolving line of credit.
The maximum amount of borrowing under the line is not to
exceed the lesser of $2,000,000 or the Company's
borrowing base as determined by the bank.
Interest on the unpaid balance is payable monthly
at prime plus one half percent. The maturity
date of the line is July 1, 2000, and the
outstanding balance at December 31, 1999, amounted
to $0 and was $650,571 at December 31, 1998.
6. TERM NOTE PAYABLE
The Company repaid the original loan and security
agreement during 1998 with the proceeds from the
sale of the land investment. The Company borrowed
an additional $100,000 in December, 1998. The
note calls for monthly payments of principal of
$2,083 and accrued interest. The interest rate
is 8.35 percent and matures in December, 2002.
Additionally, the note agreement contains
certain financial covenants. The above referenced
line of credit and term note payable are secured
by substantially all assets of the Company.
Principal maturities for all indebtedness
described in Notes 5 and 6 are as follows at
December 31 (in thousands):
Year ending December 31:
2000 25
2001 25
2002 25
Total $75
7. STOCKHOLDER LOANS PAYABLE
At December 31, 1998, the Company had a promissory
note totaling $55,000, interest at 10.75 percent,
payable on demand to one officer of the Company.
The promissory note was satisfied in 1999.
8. LEASE OBLIGATIONS
The Company signed a 5 year option under the
current lease for its headquarters and production
facilities which expires in March 2003.
The operating lease calls for
monthly rent of $13,984 including $3,933 estimated
as the Company's pro rata share of operating
expenses and annual rent increases of 3 percent.
Rent expense amounted to $165,000 for 1999,
$160,000 for 1998, and $152,000 for 1997.
The Company entered into a lease agreement for
office space and a repair facility in Boise, Idaho.
The three year lease, expiring in November, 2001,
calls for monthly payments of $1,250 and annual rent
increases of four percent.
The Company entered into a lease agreement for additional office
and warehouse space in Sterling, Virinia. The 45 month
lease, expiring in March, 2003, calls for monthly
Payments of $4,970 and annual rent increases of 3 percent.
The following is a schedule, by years, of
future minimum payments due (in thousands):
Year ending December 31:
2000 240
2001 248
2002 239
2003 61
Total $788
9. INCOME TAXES
The income tax (benefit) expense charged to
operations for the years ended December 31, were as
follows (in thousands):
<TABLE>
1999 1998 1997
<S> <C> <C> <C>
Current income tax (benefit) expense $386 $(40) $69
Deferred tax benefit 17 (40) (30)
Total tax (benefit) expense $403 $(80) $39
Deferred tax assets, are comprised of the
following at December 31 (in thousands):
1999 1998
Estimated losses on contracts $9 $4
Accrued vacation and warranty 96 88
Gross deferred tax assets 105 92
Gross deferred tax liability -
depreciation (52) (22)
Net $53 $70
</TABLE>
A reconciliation between the amount of reported
income tax expense and the amount computed by
multiplying the applicable statutory Federal
income tax rate is as follows:
<TABLE>
1999 1998 1997
<S> <C> <C> <C>
Income before income taxes $ 1,138 $831 $ 753
Applicable statutory tax rate 34% 34% 34%
Computed "expected" Federal tax
expense 387 283 256
Adjustments to Federal income tax
resulting from:
State income tax 56 - 15
Tax credits (40) (44) (38)
Change in valuation allowance - (319) 6
Income tax (benefit) expense $ 403 $(80) $ 239
</TABLE>
10. MAJOR CUSTOMERS
Set forth below are customers, including agencies
of the U.S. Government, from which the Company
received more than 10 percent of total revenue,
for the years ended December 31:
1999 1998 1997
Department of Interior 52% 35% 57%
International 11% 29% 14%
Commercial 15% 21% 10%
Department of Defense 15% - -
11. STOCK OPTION PLANS
Stock Options
The Company has granted stock options under
the 1998 and the 1996 Stock Option Plans to
key employees and directors for valuable
services to the Company. Under the 1996 Plan
a maximum of 260,000 shares may be granted at
not less than 100 percent of the fair market
value at the grant date. The Company authorized
60,000 shares and granted 5,000 shares under
the 1998 stock option plan. All options have
a ten year term from the date of grant. The
following summarizes the option activity under
the 1998 and 1996 Stock Option Plans for the
last three years:
<TABLE>
<CAPTION>
Number of Option Price
Shares Per Share
<S> <C> <C>
Outstanding, December 31, 1996 377 .53 - 1.125
Grants - -
Exercised - -
Canceled or expired (15) -
Outstanding, December 31, 1997 362 .53 - 1.125
Grants 5 1.44
Exercised (78) .53
Canceled or expired (25) .53
Outstanding, December 31, 1998 264 $1.125 - 1.44
Grants - -
Exercised - -
Canceled or expired (9) 1.125 - 1.44
Outstanding, December 31, 1999 255 $1.125
</TABLE>
The vesting period of the remaining options
is as follows:
Vested and exercisable 153
November 1, 2000 51
November 1, 2001 51
Total 255
The Company adopted the disclosure-only provisions
of Statement of Financial Accounting Standards
No. 123, Accounting for Stock-Based Compensation
and will continue to apply Accounting Principles
Board Statement No. 25 and related interpretations
in accounting for its employee compensation plans.
SFAS 123 establishes standards of financial
accounting and reporting for stock-based employee
compensation plans including stock option plans,
stock purchase plans and other arrangements by
which employees receive shares of stock or other
equity instruments based on the market price of
an entity's stock.
If the Company had elected to recognize compensation
cost for the plan based on the fair value at the
grant dates for awards under those plans, consistent
with the method prescribed by SFAS No. 123, net
income and earnings per share would have been
changed to the pro forma amounts indicated below:
<TABLE>
<CAPTION>
1999 1998 1997
<S> <C> <C> <C>
Net income
As reported $735 $831 $514
Pro forma 735 797 482
Earnings per share
As reported .17 .20 .12
Pro forma .17 .19 .11
</TABLE>
The fair value of the options granted in 1998
amounted to $7,000 and $120,000 in 1996.
Compensation costs under SFAS 123 are recognized
when the options are vested and exercisable.
The fair value of Sutron Corporation stock
options used to compute pro forma net income
and earnings per share disclosures is the
estimated present value at grant date using
the Black Scholes pricing model with the following
assumptions: a risk free interest rate of 6.45
percent, no estimated dividend yield, an expected
volatility of 34 percent and an expected holding
period of five years.
13. PROFIT SHARING PLAN
The 401 (k) Profit Sharing Plan covers substantially
all full time employees. The contributions, if any,
to the plan will be determined each year by the
Board of Directors based on profits. The contribution
was $191,000 for 1999, $147,000 for 1998, and
$128,000 for 1997.
14. EXPORT SALES
Export sales from the Company's operations
were as follow (in thousands):
<TABLE>
<CAPTION>
Year ended December 31,
1999 1998 1997
<S> <C> <C> <C>
Central and South America $ 64 $ 887 $534
Canada 492 371 307
Asia 425 1,310 312
Australia/New Zealand 29 57 25
Europe and other 278 257 188
$1,288 $2,882 $1,366
</TABLE>
15. SEGMENT INFORMATION
The Company adopted SFAS No. 131, Disclosures
About Segments of an Enterprise and Related
Information, in 1998 which changes the way
the Company reports information about its segments.
The Company currently reports its results in
two divisions, Hydromet Products and Integrated
Systems. Hydromet Products division produces
Sutron's standard environmental monitoring products
including dataloggers. The Integrated Systems
division produces integrated systems of Sutron
products with software, installation, training
and special parts (in thousands).
<TABLE>
<CAPTION>
Years Ended December 31,
1999 1998 1997
<S> <C> <C> <C>
Revenue
Hydromet Products $10,095 $8,142 $8,747
Integrated Systems 1,310 1,746 1,193
Totals $11,405 $9,888 $9,940
Cost of Goods Sold
Hydromet Products $5,489 $4,849 $5,200
Integrated Systems 1,155 1,360 1,152
Totals $6,644 $6,208 $6,352
Gross Margin
Hydromet Products $4,606 $3,293 $3,547
Integrated Systems 155 386 41
Totals $4,761 $3,679 $3,588
</TABLE>
<PAGE>
Item 8. Changes in and Disagreements with Accountants on
Accounting and Financial Disclosure
None
PART III
Information required by Item 10 - Executive Compensation, Item
11 - Security Ownership of Certain Beneficial Owners and
Management and Item 12 - Certain Relationships and Related
Transactions and certain information required by Item 9 -
Directors, Executive Officers, Promoters and Control Persons
will be contained on pages 1 through 6 of the registrant's
definitive proxy statement to be filed on April 7, 2000 and is
incorporated herein by reference.
Item 9. Directors, Executive Officers, Promoters and Control
Persons
Executive Officers
The following tabulation sets forth the names of the executive
officers at December 31, 1999, the positions and offices with
the Company held by them, the date they first became officers,
and their ages at December 31, 1999:
First Became
Name Office an Officer Age
Raul S. McQuivey President, Chief Executive 1980 60
Officer and Chairman
Glenn A. Conover Executtive Vice President
and a Director 1985 60
Daniel W. Farrell Vice President, Secretary 1984 47
and a Director
Sidney C. Hooper Treasurer 1993 41
Item 13. Exhibits and Reports on Form 8-K.
(A) Index to Exhibits
Exhibit No. Description
3(a) Copy of Articles of Incorporation of Sutron Corporation,
received and approved December 30, 1975 (1)
3(b) Copy of Articles of Amendment to the Articles of
Incorporation and Articles of Reduction of Stated
Capital of Sutron Corporation received and approved
September 7, 1983(1)
3(c) By-laws of the Registrant(1)
3(d) Copy of Articles of Amendment to the Articles of
Incorporation received and approved June 8, 1995(10)
4(a) Specimen Shares of Common Stock Certificate(2)
4(b) Form of Warrant to be issued as part of Unit (2)
4(c) Amended Form of Warrant issued as part of Unit(3)
4(d) Incentive Stock Option Plan dated August 31, 1983(1)
4(e) Stock Bonus Plan dated August 31, 1983(1)
4(f) Loan and Security Agreement, dated December 11, 1992
between the Company and Crestar Bank (8)
4(g) 1996 Stock Option Plan (11)
10(a) Employment Agreement dated as of July 1, 1983 with
Kenneth W. Whitt(1)
10(b) Employment Agreement dated as of July 1, 1983 with
Dr.
Raul S. McQuivey(1)
10(c) Employment Agreement dated as of July 1, 1983 with
Dr.
Thomas N. Keefer(1)
10(d) Employment Agreement dated as of July 1, 1983 with
Duane
M. Preble(1)
10(e) Purchase Agreement dated as of July 1, 1983 with Eric
S.
Clyde(1)
10(f) Stock Option Agreement between Registrant and Gerald
Calhoun dated July 1, 1983(1)
10(g) Certified Copy of Resolution of Commissioners of
Fairfax
County Economic Development Authority, adopted October 12,
1982, approving $425,000 Industrial revenue bond loan
to registrant(1)
10(h) Certified Copy of Resolution of Commissioners of
Fairfax County Economic Development Authority, adopted
March 8, 1983, approving $400,000 industrial revenue
bond loan to registrant (1)
10(i) Certified Copy of Resolution of Board of Supervisors
of Fairfax County, adopted March 21, 1983, approving
issuance of industrial revenue bonds for purpose of
$400,000 loan to Registrant(1)
10(j) License agreement dated January 29, 1987, with TSUKASA
SOKKEN Co., Ltd. of Japan, to use U.S. Patent No.
3,677,085 (4)
10(k) License agreement dated November 10, 1986, with S.A.
Des Caliberies et Trefileries de Cossonay of
Switzerland, to use U.S. Patent No. 4,279,147 and
Canada Patent No. 1,120,286 (4)
10(l) Lease agreement dated September 18, 1987, with Squire
Court Limited Partnership to lease building space
(9,000 sq. ft.) (4)
10(m) Copy of termination agreement with Duane Preble dated April 1, 1988 (5)
10(n) Sale agreement with National Hospital Health System
Corporation, dated November 29, 1989, and subsequent
amendments dated December 29, 1989, February 28, 1990,
and March 27, 1990, to sell land and building in
Herndon, Virginia (6)
10(o) Lease agreement dated May 9, 1990 with National
Hospital Health SystemCorporation to lease building
space (5545 sq.ft.) (7)
10(p) Stock Option Agreement between Sutron Corporation and
Glenn A. Conover dated October 15, 1990 (7)
10(q) Stock Option Agreement between Sutron Corporation and
Daniel W. Farrell dated October 15, 1990 (7)
10(r) Lease agreement dated July 30, 1992 with Loudoun
Holding Inc. to lease building space (16,794 sq. ft.)
(8)
10(s) Stock Option Agreement between Sutron Corporation and
Ronald C. Dodson dated December 6, 1993 (9)
10(t) Stock Option Agreement between Sutron Corporation and
Raul S. McQuivey dated November 1, 1996 (11)
10(u) Stock Option Agreement between Sutron Corporation and
Glenn A. Conover dated November 1, 1996 (11)
10(v) Stock Option Agreement between Sutron Corporation and
Daniel W. Farrell dated November 1, 1996 (11)
10(w) Stock Option Agreement between Sutron Corporation and
Sidney C. Hooper November 1, 1996 (11)
(1) Filed as Exhibits to Registrant's Registration Statement on Form
S-18 (File No. 2-86573-W) dated September 16, 1983, and
incorporated herein by reference.
(2) Filed as Exhibits to Amendment No. 1 to Registrant's Registration
Statement on Form S-18 (File No. 2-86573-W) dated October 26,
2983, and incorporated herein by reference.
(3) Filed as Exhibits to Amendment No. 2 to Registrant's Registration
Statement on form S-18 (File No. 2-896573-W) dated November 4,
1983 and incorporated herein by reference.
(4) Filed as Exhibits to Registrant's Annual Report on Form 10-K for
the year ended December 31, 1987, and incorporated herein by
reference.
(5) Filed as Exhibit on Form 8-K dated April 1, 1990, and
incorporated herein by reference.
(6) Filed as Exhibits to Registrant's Annual Report on Form 10-K for
the year ended December 31, 1989, and incorporated herein by
reference.
(7) Filed as Exhibits to Registrant's Annual Report on Form 10-K for
the year ended December 31, 1990 and incorporated herein by
reference.
(8) Filed as Exhibits to Registrants Annual Report on Form 10-KSB
for the year ended December 31, 1992 and incorporated herein by
reference.
(9) Filed as Exhibits to Registrants Annual Report on Form 10-KSB
for the year ended December 31, 1993 and incorporated herein by
reference.
(10) Filed as Exhibits to Registrants Annual Report on Form 10-KSB
for the year ended December 31, 1995 and incorporated herein by
reference.
(11) Filed as Exhibits to Registrants Annual Report on Form 10-KSB
for the year ended December 31, 1996 and incorporated herein by
reference.
(B) Reports on Form 8-K
The registrant did not file any reports on Form 8-K during the fourth
quarter of the fiscal year ended December 31, 1999.
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Sutron Corporation
(Registrant)
Date: March 27, 2000
By
/s/ Raul S. McQuivey
Raul S. McQuviey, President
and Director (Principal
Executive and Financial
Officer)
In accordance with the Securities Exchange Act, this report has been signed
by the following persons on behalf of the Registrant and in the capacities
and on the dates indicated.
Date: March 27, 2000
By
/s/ Raul S. McQuivey
Raul S. McQuivey,
President
and Director
(Principal
Executive and
Financial
Officer)
Date: March 27, 2000
By
/s/ Thomas N. Keefer
Thomas N. Keefer,
Director
Date: March 27, 2000
By
/s/ Daniel W. Farrell
Daniel W. Farrell,
Vice
President and
Director
Date: March 27, 2000
By
/s/ Glenn A. Conover
Glenn A. Conover,
Vice
President and
Director
Date: March 27, 2000
By
/s/ Ronald C. Dodson
Ronald C. Dodson
Director
Date: March 27, 2000
By
/s/ Sidney C. Hooper
Sidney C. Hooper,
Chief
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Article 5 Fin. Data Schedule for fiscal ended DEC-31-98
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> DEC-31-1999
<CASH> 159
<SECURITIES> 0
<RECEIVABLES> 1683
<ALLOWANCES> 15
<INVENTORY> 2537
<CURRENT-ASSETS> 4605
<PP&E> 2033
<DEPRECIATION> 1355
<TOTAL-ASSETS> 5297
<CURRENT-LIABILITIES> 1297
<BONDS> 0
<COMMON> 43
0
0
<OTHER-SE> 3907
<TOTAL-LIABILITY-AND-EQUITY> 5297
<SALES> 11405
<TOTAL-REVENUES> 11405
<CGS> 6644
<TOTAL-COSTS> 6644
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 45
<INCOME-PRETAX> 1138
<INCOME-TAX> 403
<INCOME-CONTINUING> 735
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 735
<EPS-BASIC> .17
<EPS-DILUTED> .17
</TABLE>
