THIS DOCUMENT IS THE SUBMISSION OF FORM 10QSB AND CONTAINS THE QUARTERLY
REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997.
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United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark one)
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1997
or
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________________ to __________________
Commission File Number 0-13316
LASER CORPORATION
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(Exact name of small business issuer as specified in its charter)
Utah 87-0395567
--------------------------------- ---------------------------------
(State of Incorporation) (I.R.S. Employer
Identification No.)
1832 South 3850 West
Salt Lake City, UT 84104
--------------------------------- ---------------------------------
(Address of principal (Zip Code)
executive office)
(801) 972-1311
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(Issuer's telephone number, including area code)
Not Applicable
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(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (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
State the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date.
Common Stock, .05 Par Value -- 682,088 shares as of March 31, 1997.
Page 1 of 10
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INDEX
LASER CORPORATION AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
- ------- ---------------------
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets - March 31, 1997 and December 31, 1996.
Consolidated Statements of Operations - Three months ended March 31,
1997 and 1996.
Consolidated Statements of Cash Flows - Three months ended March 31,
1997 and 1996.
Notes to Consolidated Financial Statements - March 31, 1997.
Item 2. Management's Discussion and Analysis.
PART II. OTHER INFORMATION
- -------- -----------------
SIGNATURES
- ----------
Page 2 of 10
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PART I. FINANCIAL INFORMATION
- -------
Item 1.
LASER CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
ASSETS 1997 1996
Unaudited
----------- -----------
CURRENT ASSETS [C] [C]
Cash and cash equivalents $ 194,615 $ 555,204
Receivables:
Trade receivables 522,639 624,819
Less allowance for doubtful
accounts (45,000) (56,000)
Other 3,078 3,319
----------- -----------
480,717 572,138
Inventories:
Raw materials 782,961 756,930
Work in process 607,005 468,573
Finished Goods 69,576 63,500
----------- -----------
1,459,542 1,289,003
Notes Receivable - current portion 671,947 176,284
Other current assets 30,647 34,829
----------- -----------
Total Current Assets 2,837,468 2,627,458
NOTES RECEIVABLE LESS CURRENT PORTION --- 534,308
EQUIPMENT AND LEASEHOLD IMPROVEMENTS
Equipment 1,396,411 1,389,535
Leasehold improvements 612,260 612,260
----------- -----------
2,008,671 2,001,795
Less accumulated depreciation
and amortization (1,801,929) (1,779,865)
----------- -----------
206,742 221,930
OTHER ASSETS 62,996 62,996
----------- -----------
$ 3,107,206 $ 3,446,692
=========== ===========
See accompanying notes to consolidated financial statements
Page 3 of 10
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LASER CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
1997 1996
(Unaudited)
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES [C] [C]
Trade accounts payable $ 432,699 $ 696,133
Accrued expenses 261,179 177,363
Accrued warranty expense 100,000 100,000
----------- -----------
Total Current Liabilities 793,878 973,496
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common Stock, $.05 par value;
Authorized Shares - 10,000,000
Issued Shares - 682,088
Outstanding Shares - 682,088 34,105 34,105
Additional paid-in capital 701,537 701,537
Retained earnings 1,677,686 1,837,554
Treasury stock, at cost (100,000) (100,000)
----------- -----------
Total Stockholders' Equity 2,313,328 2,473,196
----------- -----------
$ 3,107,206 $ 3,446,692
=========== ===========
See accompanying notes to consolidated financial statements
Page 4 of 10
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LASER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended
--------------------------
March 31, March 31,
1997 1996
----------- -----------
REVENUES: [C] [C]
Net sales $ 980,391 $ 861,505
Interest and other income 15,779 23,852
----------- -----------
996,170 885,357
COSTS AND EXPENSES:
Cost of products sold 780,002 698,773
Selling, general and administrative 189,085 139,716
Research and development 170,242 164,815
Royalties 16,709 14,370
Interest --- 809
----------- ------------
1,156,038 1,018,483
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LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (159,868) (133,126)
INCOME TAX BENEFIT (EXPENSE) - CURRENT --- ---
----------- -----------
NET LOSS $ (159,868) $ (133,126)
=========== ===========
NET LOSS PER SHARE $ ( .23) $ ( .20)
=========== ===========
Average number of shares of
Common Stock outstanding 682,000 682,000
=========== ===========
See accompanying notes to consolidated financial statements
Page 5 of 10
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LASER CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES: ----------- -----------
[C] [C]
Net income (loss) $ (159,868) $ (133,126)
Adjustments to reconcile net income (loss)
to net cash provided from (used in)
operating activities:
Depreciation and amortization 22,064 26,344
(Increase) decrease in assets:
Trade accounts receivable 91,421 (140,432)
Inventories (170,539) (33,041)
Other current assets 4,182 (18,689)
Increase (decrease) in liabilities:
Trade accounts payable and
accrued expenses (179,618) (8,527)
----------- -----------
Net Cash Used in Operating Activities (392,358) (307,471)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (6,876) (11,632)
Payments received on long term notes 38,645 40,291
----------- -----------
Net Cash Provided from Investing Activities 31,769 28,659
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on long-term debt and
capital lease obligations --- (9,617)
----------- -----------
Net Cash Used in Financing Activities --- (9,617)
----------- -----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (360,589) (288,429)
CASH AND CASH EQUIVALENTS, BEG. OF PERIOD 555,204 936,370
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 194,615 $ 647,941
=========== ===========
See accompanying notes to consolidated financial statements
Page 6 of 10
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LASER CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
March 31, 1997
NOTE A - BASIS OF PRESENTATION
- ------------------------------
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and the instructions to Form 10-QSB and Rule 10-01 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
only of normal recurring accruals) considered necessary for a fair presentation
have been included. Operating results for the three months ended March 31, 1997
are not necessarily indicative of the results that may be expected for the year
ending December 31, 1997. For further information, refer to the consolidated
financial statements and footnotes thereto for the year ended December 31, 1996
included in the Company's Annual Report on Form 10-KSB (file number 0-13316).
NOTE B - RECLASSIFICATIONS
- --------------------------
Certain 1996 financial statement amounts have been reclassified to
conform to 1997 presentations. These amounts were not material
reclassifications.
Page 7 of 10
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
- ------------------------------------------------------------------
The following discussion should be read in conjunction with the
consolidated financial statements and notes thereto appearing elsewhere herein.
RESULTS OF OPERATIONS
- ---------------------
Three months ended March 31, 1997.
- ----------------------------------
Net sales for the three months ended March 31, 1997 were $980,391 as
compared to $861,505 for the same period in 1996, an increase of $118,886 or
14%. This increase was primarily a result of increased laser product and
service sales to two of the Company's original equipment manufacturer ("OEM")
customers. This increase was partially offset by decreases in product and
service sales to another major OEM customer and to all other customers, as a
consolidated group. The Company believes that the increase in net sales
resulted from the normal quarter to quarter variations in product and service
orders received from its OEM customers. OEM customer orders are based in part
on the end-user demand for customer products which use or incorporate the
Company's products and services.
Cost of products sold as a percent of Company net sales were 80% for the
three months ended March 31, 1997 as compared to 81% for the same period in
1996, a decrease of 1%. This decrease was primarily the result of decreases in
overhead cost percentages due to the increase in net sales.
Selling, general, and administrative expenses for the three months ended
March 31, 1997 were $189,085 as compared to $139,716 for the same period in
1996, an increase of $49,369 or 35%. This increase was primarily the result of
pre-market advertising and other "start up" related costs of the Company's new
dermatologic and ophthalmic medical products.
Research and development expenditures for the three months ended March
31, 1997 were $170,242 as compared to $164,815 for the same period in 1996, an
increase of $5,427 or 3%.
As a result of continuing research and development expenditures, the
increase in advertising and "start up" costs relating to the Company's medical
products and other factors, which were partially offset by an increase in laser
product and service sales, the Company recognized a net loss for the three
months ended March 31, 1997 of $159,868, or $.23 per share compared to a net
loss of $133,126 or $.20 per share for the same period of 1996.
Page 8 of 10
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LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
On March 31, 1997, the Company had working capital of $2,043,590 as
compared to $1,653,962 at December 31, 1996, an increase of $389,628 or 24%.
This increase was primarily a result of the reclassification of $492,663 of
notes receivable from long term assets to current assets on the Company's
balance sheets. The notes receivable become due the first quarter of 1998.
This increase was partially offset by decreases in other working capital account
categories during the quarter ended March 31, 1997. Essentially all of the
Company's working capital requirements have been financed by internally
generated funds.
Cash equivalents at March 31, 1997 were $194,615 compared to $555,204
on December 31, 1996, a decrease of $360,589 or 65%. This decrease in the cash
equivalent balance was primarily the result of the Company's net loss for the
period ended March 31, 1997, decreases in accounts payable and accrued expense
balances, and to increases in inventory totals.
PART II. OTHER INFORMATION
- -------- -----------------
No material matter occurred during the quarter ended March 31, 1997
that requires disclosure in Part II of the Quarterly Report on Form 10-QSB.
Page 9 of 10
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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.
LASER CORPORATION
Date: May 14, 1997 /s/ B. Joyce Wickham
---------------------- ------------------------------------
B. Joyce Wickham
President, Chief Executive Officer
Treasurer and Director
Date: May 14, 1997 /s/ Reo K Larsen
---------------------- ------------------------------------
Reo K Larsen
General Accounting Manager
Page 10 of 10
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<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM LASER
CORPORATION AND SUBSIDIARIES MARCH 31, 1997 FINANCIAL STATEMENTS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000740726
<NAME> LASER CORPORATION
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 194,615
<SECURITIES> 0
<RECEIVABLES> 1,197,664
<ALLOWANCES> 45,000
<INVENTORY> 1,459,542
<CURRENT-ASSETS> 2,837,468
<PP&E> 2,008,671
<DEPRECIATION> 1,801,929
<TOTAL-ASSETS> 3,107,206
<CURRENT-LIABILITIES> 793,878
<BONDS> 0
0
0
<COMMON> 34,105
<OTHER-SE> 2,279,223
<TOTAL-LIABILITY-AND-EQUITY> 2,313,328
<SALES> 980,391
<TOTAL-REVENUES> 996,170
<CGS> 780,002
<TOTAL-COSTS> 1,156,038
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (159,868)
<INCOME-TAX> 0
<INCOME-CONTINUING> (159,868)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (159,868)
<EPS-PRIMARY> (.23)
<EPS-DILUTED> (.23)
</TABLE>
