UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
AMENDMENT NO. 1
(Mark One)
[X] Quarterly Report pursuant to Section 13 or 15 (d) of the Securities Exchange
Act of 1934 For the quarterly period ended April 4, 1998, 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: 0-13459
Axiohm Transaction Solutions, Inc.
(Exact name of registrant as specified in its charter)
California 94-2917470
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
15070 Avenue of Science, San Diego, California 92128
(Address of principal executive office)
Registrant's telephone number, including area code: (619) 451-3485
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 XXX No____
As of April 4, 1998, there were 6,517,426 shares of the registrant's Common
Stock outstanding.
<PAGE>
<TABLE>
<CAPTION>
PART 1 - FINANCIAL INFORMATION
ITEM 1 - Financial Statements
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
<S> <C> <C>
April 4, December 31,
----------------- -------------------
1998 1997
----------------- -------------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 3,158 $ 3,877
Restricted cash - 8,594
Accounts receivable, net 34,825 30,515
Inventories 33,904 30,103
Prepaid expenses and other current assets 10,429 11,015
----------------- -------------------
Total current assets 82,316 84,104
Fixed assets, net of accumulated depreciation 21,161 21,535
Intangible assets 86,848 92,371
Other assets 5,826 6,034
================= ===================
Total assets $ 196,151 $ 204,044
================= ===================
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 19,181 $ 17,351
Current portion of long-term debt 5,487 5,948
Current portion of government grant obligations 700 649
Accrued payroll, payroll taxes and benefits 5,314 6,194
Accrued expenses 3,527 4,645
Income taxes payable - 1,937
Deferred revenue 1,952 2,056
Rabbi Trust - 8,594
Other current liabilities 1,448 4,481
----------------- -------------------
Total current liabilities 37,609 51,855
Non-current liabilities:
Long-term debt 178,486 165,564
Government grant obligations 1,462 1,569
Other long-term liabilities 3,120 3,137
----------------- -------------------
Total liabilities $ 220,677 $ 222,125
----------------- -------------------
Shareholders' equity (deficit):
Preferred shares, no par value
Authorized: 1,000,000 shares, none issued $ - $ -
Common shares:
Common stock, authorized: 28,500,000
shares; issued and outstanding: 6,517,426
in 1998 and 6,512,926 shares in 1997 23,898 23,852
Foreign currency translation adjustment (413) (658)
Retained earnings (accumluated deficit) (48,011) (41,275)
----------------- -------------------
Total shareholders' equity (deficit) (24,526) (18,081)
----------------- -------------------
Total liabilities and shareholders' equity $ 196,151 $ 204,044
================= ===================
The accompanying notes are an integral part of these
condensed consolidated financial statements.
</TABLE>
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<TABLE>
<CAPTION>
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
<S> <C> <C>
Period Ended
April 4, March 31,
----------------- -----------------
1998 1997
----------------- -----------------
(Unaudited) (Unaudited)
Net sales $ 57,069 $ 24,891
Cost of net sales 36,995 17,324
----------------- -----------------
Gross margin 20,074 7,567
Operating expenses:
Selling, general and administrative 8,804 2,926
Research and development 4,090 1,740
Acquisition related amortization 8,462 51
----------------- -----------------
Total operating expenses 21,356 4,717
----------------- -----------------
Income (loss) from operations (1,282) 2,850
Interest and other income 88 49
Interest and other expense 4,367 175
----------------- -----------------
Income (loss) before income taxes (5,561) 2,724
Income taxes 1,175 1,099
----------------- -----------------
Net income (loss) $ (6,736) $ 1,625
================= =================
Basic:
Net income (loss) per share $ (1.03) $ 0.25
Shares used in per share calculation 6,517 6,513
Diluted:
Net income (loss) per share $ (1.03) $ 0.25
Shares used in per share calculation 6,517 6,513
The accompanying notes are an integral part of these
condensed consolidated financial statements.
</TABLE>
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<TABLE>
<CAPTION>
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
<S> <C> <C>
Period Ended
April 4, March 31,
------------------ ------------------
1998 1997
------------------ ------------------
(Unaudited) (Unaudited)
Cashflows from operating activities:
Net income (loss) $ (6,736) $ 1,625
Adjustments to reconcile net income (loss) to net cash provided by operations:
Depreciation and amortization 10,209 779
Other (1,961) 1,055
Changes in assets and liabilities, net of effects of acquisition of business:
Accounts receivable (4,310) (2,762)
Inventories (3,801) (1,668)
Accounts payable and accrued expenses (272) 569
Other current assets 586 (338)
Other current liabilities (3,033) (1,205)
------------------ ------------------
Net cash used in operating activities $ (9,318) $ (1,945)
Cashflows from investing activities:
Payment for acquisition of business and other intangibles $ (3,207) $ -
Capital expenditures and other (890) (1,680)
------------------ ------------------
Net cash used in investing activities $ (4,097) $ (1,680)
Cashflows from financing activities:
Net borrowings under line of credit $ 13,205 $ 1,543
Principal repayments under long term debt (800) (33)
Payments of dividends - (98)
Exercise of stock options 46 -
Net loans to related parties - 1,608
------------------ ------------------
Net cash provided by financing activities $ 12,451 $ 3,020
Effect of exchange rate changes on cash 245 (393)
------------------ ------------------
Net increase in cash and cash equivalents $ (719) $ (998)
Cash and cash equivalents at beginning of period 3,877 1,839
------------------ ------------------
Cash and cash equivalents at end of period $ 3,158 $ 841
================== ==================
Supplemental Cashflow Disclosures:
Cash paid during the year for:
Interest $ 7,252 $ 203
Income taxes 3,112 64
Other transactions:
Capital lease obligation $ - $ 20
Payment of restricted cash to former officers (8,594) -
Reduction of liability to former officers $ 8,594 $ -
================== ==================
The accompanying notes are an integral part of these
condensed consolidated financial statements
</TABLE>
<PAGE>
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(April 4, 1998 - Unaudited)
Note 1: Unaudited Interim Financial Statements
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of only normal recurring accruals) considered necessary for a fair presentation
have been included. Operating results for the quarter ended April 4, 1998 are
not necessarily indicative of the results which may be expected for the year
ended December 31, 1998 or any other period. Reference is made to the
Consolidated Financial Statements and Notes thereto included in the Company's
Annual Report on Form 10-K filed on March 31, 1998 as amended on April 15, 1998.
In May, 1998, Axiohm Transaction Solutions, Inc. (the "Company") changed its
fiscal year from the twelve month period ended December 31 to the 52 or 53-week
period that ends on the Saturday nearest December 31, effective for fiscal year
1998. As a result, the Company's first quarter of 1998 represents the
thirteen-week period ended on April 4, 1998, and the Company's 1998 fiscal year
will end on January 2, 1999. Fiscal year 1998 will have fifty-three weeks. The
quarter ended March 31, 1997, contained 12 weeks and six days and the difference
between the two comparable periods is immaterial in terms of sales and net
income.
Note 2: Basis of Presentation
The financial statements of Axiohm include the accounts of its wholly owned
subsidiaries in the United States, France, Mexico, the United Kingdom,
Australia, Hong Kong and Japan. All intercompany accounts and transactions have
been eliminated.
On August 21, 1997, pursuant to an Agreement and Plan of Merger dated as of July
14, 1997 (the "Agreement of Merger"), AX Acquisition Corporation ("AX" or the
"Purchaser"), an indirect wholly-owned subsidiary of Axiohm S.A., acquired
approximately 88%, or 7,000,000 shares, of the outstanding Common Stock of DH
Technology, Inc. ("DH") through a public tender offer to the shareholders of DH
at a price of $25 per share (the "Tender Offer").
<PAGE>
On October 2, 1997, pursuant to the Agreement of Merger, AX acquired, directly
or indirectly, 100% of the outstanding Common Stock of Axiohm S.A. in exchange
for 5,518,524 shares of DH Common Stock and $12.2 million in cash (the "Share
Exchange Offer"). Simultaneously with the Share Exchange Offer, DH purchased all
of the outstanding shares of AX in exchange for the assumption of approximately
$190 million of debt (the "Acquisition Financing") incurred by AX to finance the
Tender Offer. As part of the Acquisition Financing the Company completed a
private placement (the "Senior Notes Offering") of $120 million of its 9.75%
Senior Subordinated Notes due 2007 (the "Notes"). The Notes were exchanged in
March 1998 for new, substantially identical Notes which have been registered
under the Securities Act of 1933, as amended. The Company's payment obligation
under the Senior Notes is jointly and severally fully and unconditionally
guaranteed on a senior subordinated basis by certain of the Company's
subsidiaries (the "Guarantor Subsidiaries"), all of which are directly or
indirectly wholly owned by the Company. Immediately after the Share Exchange
Offer, AX was merged with and into DH (the "Merger"), the surviving legal
entity, and the company changed its name from "DH Technology, Inc." to "Axiohm
Transaction Solutions, Inc." (the "Company"). In connection with the Merger,
Axiohm S.A. changed its tax filing status and was renamed Axiohm S.A.R.L.
Immediately after the Merger, approximately 85% of DH's outstanding Common Stock
was held by the former shareholders of Axiohm S.A.R.L. and 15% was held by the
former public shareholders of DH.
The Tender Offer, the Share Exchange Offer and the Merger (collectively the
"Acquisition") have been accounted for in a manner similar to a reverse
acquisition, in which Axiohm S.A.R.L. was treated as the acquiror for accounting
purposes. Accordingly, the historical financial information for periods prior to
August 31, 1997 is that of Axiohm S.A.R.L. The effective date of the Acquisition
and Merger of DH for accounting purposes was August 31, 1997, and, accordingly,
the capital structure of the Company has been retroactively restated to reflect
the number of shares and options outstanding as a result of the Acquisition.
<PAGE>
Note 3: Inventories
The composition of inventories at April 4, 1998 and December 31, 1997 was as
follows:
April 4, 1998 December 31, 1997
Raw materials $24,929,000 $20,014,000
Work in process $2,733,000 2,328,000
Finished goods $6,242,000 7,761,000
----------- -----------
Totals $33,904,000 $30,103,000
=========== ===========
Note 4: Guarantors and Financial Information
The following consolidating financial information is presented for purposes of
complying with the reporting requirements of the Guarantor Subsidiaries.
Separate financial statements and other disclosures with respect to the
Guarantor Subsidiaries are not presented because the Company believes that such
financial statements and other information would not provide additional
information that is material to investors.
There are no contractual restrictions, under the Notes or otherwise, upon the
ability of the Guarantor Subsidiaries to make distributions or pay dividends to
their respective equityholders. Directly or indirectly, the Company is the sole
equityholder of all of the Guarantor Subsidiaries.
The condensed consolidating financial information presents condensed financial
statements as of April 4, 1998 and December 31, 1997 and for the quarter ended
April 4, 1998 of:
a) the Company on a parent company only basis ("Parent") (carrying
its investments in the subsidiaries under the equity method),
b) the Guarantor Subsidiaries separated as to French Guarantors
(Axiohm S.A.R.L., Dardel Technologies E.U.R.L., Axiohm
Investissements S.A.R.L.), and U.S. Guarantors (Axiohm IPB, Inc.,
Cognitive L.L.C., Cognitive Solutions, Inc., and Stadia Colorado
Corp.),
c) the Non-Guarantor Subsidiaries (DH Technology Plc, DH Technology
Pty, DH Technologia, Axiohm Ltd. (Hong Kong), and Axiohm Japan
Inc.),
d) elimination entries necessary to consolidate the Parent Company
and its subsidiaries, and
e) the Company on a consolidated basis.
<PAGE>
The condensed consolidating financial information also presents condensed
financial statements for the quarter ended March 31, 1997 of:
a) the Guarantor Subsidiaries which were in existence and were
within the Company's consolidated structure during the quarter
ended March 31, 1997 separated as to French Guarantors (Axiohm
S.A.R.L., but excluding Dardel Technologies E.U.R.L.), and U.S.
Guarantors (Axiohm IPB, Inc.),
b) The Non-Guarantor Subsidiaries which were in existence and were
within the Company's consolidated structure during the quarter
ended March 31, 1997 (Axiohm Ltd. (Hong Kong) and Axiohm Japan
Inc.),
c) elimination entries necessary to consolidate such Guarantor and
Non-Guarantor Subsidiaries, and
d) such Guarantor and Non-Guarantor Subsidiaries on a consolidated
basis.
<PAGE>
<TABLE>
<CAPTION>
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Condensed Consolidating Balance Sheets
(In thousands)
<S> <C> <C> <C> <C> <C> <C>
April 4, 1998 (Unaudited)
--------------------------------------------------------------------------------
Guarantor Subsidiaries Non-Guarantor
-----------------------
Parent French US Subsidiaries Eliminations Consolidated
--------------------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 15,506 $ 333 $ (13,627) $ 946 $ - $ 3,158
Restricted cash - - - - - -
Accounts receivable, net 10,433 3,264 18,231 2,897 - 34,825
Inventories 5,498 7,875 17,390 4,575 (1,434) 33,904
Prepaid expenses and other current assets 7,256 1,817 644 181 531 10,429
Intercompany (16,532) 827 11,790 (3,240) 7,155 -
--------------------------------------------------------------------------------
Total current assets 22,161 14,116 34,428 5,359 6,252 82,316
Fixed assets, net of accumulated depreciation 3,775 3,838 11,863 1,685 - 21,161
Intangible assets 83,307 93 3,440 8 - 86,848
Other assets 5,491 8,948 76 51 (8,740) 5,826
Investment in Subsidiaries 45,030 (45,030) -
================================================================================
Total assets $ 159,764 $ 26,995 $ 49,807 $ 7,103 $ (47,518) $ 196,151
================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities : -
Accounts payable $ 4,990 $ 5,887 $ 6,809 $ 1,495 $ - $ 19,181
Current portion of long-term debt 4,824 575 32 56 - 5,487
Current portion of government grant obligations - 700 - - - 700
Accrued payroll, payroll taxes and benefits 2,041 1,856 1,362 55 - 5,314
Accrued expenses 2,381 256 824 66 - 3,527
Income taxes payable (4,608) 3,053 476 73 1,006 -
Deferred revenue 324 1,061 567 - - 1,952
Rabbi Trust - - - - - -
Other current liabilities (832) 2,713 790 69 (1,292) 1,448
--------------------------------------------------------------------------------
Total current liabilities 9,120 16,101 10,860 1,814 (286) 37,609
Non-current liabilities:
Long-term debt 176,860 1,548 40 38 - 178,486
Government grant obligations - 912 550 - - 1,462
Other long-term liabilities (2,168) 3,391 1,897 - - 3,120
--------------------------------------------------------------------------------
Total liabilities 183,812 21,952 13,347 1,852 (286) 220,677
--------------------------------------------------------------------------------
Shareholders equity :
Preferred shares, no par value
Authorized: 1,000,000 shares, none issued
Common shares:
Common stock, authorized: 25,500,000
shares; issued and outstanding:
6,517,426 in 1998 and 6,512,926 in 1997 23,898 4,167 - 360 (4,527) 23,898
Capital in excess of par value - - - - - -
Foreign currency translation adjustment 65 (494) - 129 (113) (413)
Retained earnings (accumluated deficit) (48,011) 1,370 36,460 4,762 (42,592) (48,011)
--------------------------------------------------------------------------------
Total shareholders' equity (deficit) (24,048) 5,043 36,460 5,251 (47,232) (24,526)
--------------------------------------------------------------------------------
================================================================================
Total liabilities and shareholders' equity $ 159,764 $ 26,995 $ 49,807 $ 7,103 $ (47,518) $ 196,151
================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Condensed Consolidating Statements of Operations
(In thousands)
<S> <C> <C> <C> <C> <C> <C>
April 4, 1998 (Unaudited)
-------------------------------------------------------------------------------------
Guarantor Subsidiaries Non-Guarantor
----------------------
Parent French US Subsidiaries Eliminations Consolidated
----------- --------- ----------- ------------- -------------- ---------------
Net Sales $15,812 $ 9,677 $ 34,003 $ 4,992 $ (7,415) $ 57,069
Cost of net sales 10,280 6,222 24,909 3,794 (8,210) 36,995
-------------------------------------------------------------------------------------
Gross margin 5,532 3,455 9,094 1,198 795 20,074
Operating expenses
Selling, general, and administrative 2,640 915 4,159 1,090 - 8,804
Research & development 1,183 921 1,829 157 - 4,090
Acquisition related amortization 8,462 - - - - 8,462
--------------------------------------------------------------------------------------
Total operating expenses 12,285 1,836 5,988 1,247 - 21,356
--------------------------------------------------------------------------------------
Income (loss) from operations (6,753) 1,619 3,106 (49) 795 (1,282)
Interest and other income 1,262 34 15 20 (1,243) 88
Interest and other expense 4,312 1,294 3 1 (1,243) 4,367
Equity earnings in subsidiaries 1,998 (1,998) -
--------------------------------------------------------------------------------------
Income (loss) before income taxes (7,805) 359 3,118 (30) (1,203) (5,561)
--------------------------------------------------------------------------------------
Income taxes (1,069) 669 1,254 (12) 333 1,175
--------------------------------------------------------------------------------------
Net income (loss) (6,736) (310) 1,864 (18) (1,536) (6,736)
=======================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Condensed Consolidating Statements of Cash Flows
(In thousands)
<S> <C> <C> <C> <C> <C> <C>
Period Ending April 4, 1998 (Unaudited)
-------------------------------------------------------------------------
Guarantor Subsidiaries Non-Guarantor
----------------------
Parent French US Subsidiaries Eliminations Consolidated
-------------------------------------------------------------------------
Cashflows from operating activities:
Net cash provided by (used in) operating
activities $ (7,761) $ 9,479 $ (1,553) $ (1,021) $ (8,462) $ (9,318)
-------------------------------------------------------------------------
Cashflows from investing activities:
Payment for acquisition of business and other $ (3,207) $ - $ - $ - $ - $ (3,207)
Intangibles
Capital expenditures and other (549) (8,623) (398) 248 8,432 (890)
-------------------------------------------------------------------------
Net cash provided by (used in) investing
activities $ (3,756) $ (8,623) $ (398) $ 248 $ 8,432 $ (4,097)
-------------------------------------------------------------------------
Cashflows from financing activities:
Net borrowings under line of credit $ 13,892 $ (724) $ (10) $ 47 $ - $ 13,205
Principal repayments under long term debt (800) - - - - (800)
Payments of dividends - - - - - -
Exercise of stock options 46 - - - - 46
Net loans to related parties - - - - - -
-------------------------------------------------------------------------
Net cash provided by (used in)
financing activities $ 13,138 $ (724) $ (10) $ 47 $ - $ 12,451
Effect of exchange rate changes on cash 25 63 - 127 30 245
-------------------------------------------------------------------------
Net increase in cash and cash equivalents $ 1,646 $ 195 $ (1,961) $ (599) $ - $ (719)
-------------------------------------------------------------------------
Cash and cash equivalents at beginning of period 13,860 138 (11,666) 1,545 - 3,877
-------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 15,506 $ 333 $ (13,627) $ 946 $ - $ 3,158
=========================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Condensed Consolidating Balance Sheets
(In thousands)
<S> <C> <C> <C> <C> <C> <C>
December 31, 1997
----------------------------------------------------------------------------
Guarantor Subsidiaries Non-Guarantor
------------------------
Parent French US Subsidiaries Eliminations Consolidated
-----------------------------------------------------------------------------
ASSETS
Current assets:
Cash and cash equivalents $ 13,860 $ 138 $ (11,666) $ 1,545 $ - $ 3,877
Restricted cash 8,594 - - - - 8,594
Accounts receivable, net 10,388 3,760 15,209 3,099 (1,941) 30,515
Inventories 3,611 4,995 17,140 4,600 (243) 30,103
Prepaid expenses and other current assets 4,235 9,759 437 (3,316) (100) 11,015
Intercompany (14,259) 2,612 11,514 (1,761) 1,894 -
----------------------------------------------------------------------------
Total current assets 26,429 21,264 32,634 4,167 (390) 84,104
Fixed assets, net of accumulated depreciation 3,847 4,052 11,679 1,957 - 21,535
Intangible assets 88,555 93 3,521 202 - 92,371
Other assets 5,428 413 418 83 (308) 6,034
Investment in Subsidiaries 45,030 - - - (45,030) -
============================================================================
Total assets $ 169,289 $ 25,822 $ 48,252 $ 6,409 $ (45,728) $ 204,044
============================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
Current liabilities :
Accounts payable $ 2,510 $ 6,570 $ 6,767 $ 1,504 $ - $ 17,351
Current portion of long-term debt 5,689 227 32 - - 5,948
Current portion of government grant obligations - 649 - - - 649
Accrued payroll, payroll taxes and benefits 690 3,557 1,947 - - 6,194
Accrued expenses 1,620 1,196 2,113 (284) - 4,645
Income taxes payable 1,937 174 (174) - - 1,937
Deferred revenue 416 1,121 519 - - 2,056
Rabbi Trust 8,594 - - - - 8,594
Other current liabilities 4,481 - - - - 4,481
----------------------------------------------------------------------------
Total current liabilities 25,937 13,494 11,204 1,220 - 51,855
Non-current liabilities:
Long-term debt 162,903 2,014 600 47 - 165,564
Government grant obligations - 1,569 - - - 1,569
Other long-term liabilities (2,168) 3,455 1,850 - - 3,137
----------------------------------------------------------------------------
Total liabilities 186,672 20,532 13,654 1,267 - 222,125
----------------------------------------------------------------------------
Shareholders equity
Common stock, authorized: 25,500,000
shares; issued and outstanding:
6,512,926 shares in 1998 and 1997 23,852 4,167 - 360 (4,527) 23,852
Capital in excess of par value - - - - - -
Foreign currency translation adjustment 40 (557) - 2 (143) (658)
Retained earnings (accumluated deficit) (41,275) 1,680 34,598 4,780 (41,058) (41,275)
----------------------------------------------------------------------------
Total shareholders' equity (deficit) (17,383) 5,290 34,598 5,142 (45,728) (18,081)
----------------------------------------------------------------------------
============================================================================
Total liabilities and shareholders' equity $ 169,289 $ 25,822 $ 48,252 $ 6,409 $ (45,728) $ 204,044
============================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Condensed Consolidating Statements of Operations
(In thousands)
<S> <C> <C> <C> <C> <C>
March 31, 1997 (Unaudited)
-------------------------------------------------------------------------------
Guarantor Subsidiaries Non-Guarantor
-----------------------------
French US Subsidiaries Eliminations Consolidated
------------- ------------- ------------- -------------- ---------------
Net Sales $ 30,133 $ 455 $ (5,697) $ (5,697) $ 24,891
Cost of net sales 22,311 401 (5,701) (5,388) 17,324
-------------------------------------------------------------------------------
Gross margin 7,822 54 4 (309) 7,567
Operating expenses
Selling, general, and administrative 2,787 191 (1) (1) 2,977
Research & development 1,735 - 5 5 1,740
Acquisition related amortization - - - -
-------------------------------------------------------------------------------
Total operating expenses 4,522 191 4 4 4,717
-------------------------------------------------------------------------------
Income (loss) from operations 3,300 (137) - (313) 2,850
Interest and other income 49 - - 49
Interest and other expense 174 1 - 175
Equity earnings in subsidiaries (336) 336 -
-------------------------------------------------------------------------------
Income (loss) before income taxes 2,839 (138) - 23 2,724
-------------------------------------------------------------------------------
Income taxes 1,214 - (115) 1,099
-------------------------------------------------------------------------------
Net income (loss) $ 1,625 $ (138) $ - $ 138 $ 1,625
===============================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AXIOHM TRANSACTION SOLUTIONS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Condensed Consolidating Statements of Cash Flows
(In thousands)
<S> <C> <C> <C> <C> <C>
March 31, 1997 (Unaudited)
--------------------------------------------------------------------
Guarantor Subsidiaries Non-Guarantor
---------------------------
French US Subsidiaries Eliminations Consolidated
--------------------------------------------------------------------
Cashflows from operating activities:
Net cash provided by (used in) operating
activities $ 46 $ (2,326) $ (1) $336 $ (1,945)
--------------------------------------------------------------------
Cashflows from investing activities:
Payment for acquisition of business and other
intangibles $ - $ - $ - $ - $ -
Capital expenditures and other (471) (1,193) (16) - (1,680)
--------------------------------------------------------------------
Net cash used in investing activities $ (471) $ (1,193) $ (16) $ - $ (1,680)
--------------------------------------------------------------------
Cashflows from financing activities:
Net borrowings under line of credit $ - $ 1,552 $ (9) $ - $ 1,543
Principal repayments under long term debt (25) (8) - - (33)
Payments of dividends (52) (46) - - (98)
Exercise of stock options - - - - -
Net loans to related parties 1,180 300 128 - 1,608
--------------------------------------------------------------------
Net cash provided by (used in)
financing activities $ 1,103 $ 1,798 $ 119 $ - $ 3,020
Effect of exchange rate changes on cash (419) 26 - - (393)
--------------------------------------------------------------------
Net increase in cash and cash equivalents $ 259 $ (1,695) $ 102 $336 $ (998)
--------------------------------------------------------------------
Cash and cash equivalents at beginning of period 1,494 230 115 - 1,839
--------------------------------------------------------------------
Cash and cash equivalents at end of period $ 1,753 $ (1,465) $ 217 $336 $ 841
===================================================================
</TABLE>
<PAGE>
<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.
Axiohm Transaction Solutions, Inc. by:
May 19, 1998 /s/Janet W. Shanks
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Date Janet W. Shanks, Chief Accounting Officer
(Chief Accounting Officer)
