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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
Quarterly report under to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarterly period ended January 31, 1998
Commission File No. 0-1455
OPT - SCIENCES CORPORATION
(Exact name of small business issuer as specified in its charter)
New Jersey 21-0681502
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) identification number)
1912 Bannard Street, Riverton, NJ 08077
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 609-829-2800
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past
twelve 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 equity, as of the latest practicable date:
Class Outstanding at January 31, 1998
Common Stock, par value $0.25 775,585 shares
INDEX
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - January 31,
1998 and November 1, 1997 3 - 4
Consolidated Statements of Income -
thirteen weeks ended January 31, 1998 and
fourteen weeks ended February 1, 1997 5
Consolidated Statements of Cash Flows -
thirteen weeks ended January 31, 1998 and
fourteen weeks ended February 1, 1997 6 - 7
Notes to Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis or Plan
of Operation 9
PART II OTHER INFORMATION
Item 1 Not Applicable
Item 2 Not Applicable
Item 3 Not Applicable
Item 4 Not Applicable
Item 5 Not Applicable
Item 6 Not Applicable
SIGNATURE 10
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
January 31, November 1,
1998 1997
CURRENT ASSETS
Cash and cash equivalents $3,226,575 $2,981,027
Trade accounts receivable 673,974 903,496
Inventories 313,414 322,707
Prepaid expenses 21,276 28,992
Marketable securities 431,586 375,489
Total current assets 4,666,825 4,611,711
PROPERTY AND EQUIPMENT
Land 114,006 114,006
Building and improvements 335,845 335,845
Machinery and equipment 633,609 598,607
Small tools 53,580 53,580
Furniture and fixtures 8,048 8,048
Office equipment 41,551 40,990
Automobile 42,336 42,336
Total property and
equipment 1,228,975 1,193,412
Less accumulated depreciation 785,772 775,441
Net property and
equipment 443,203 417,971
Total assets 5,110,028 5,029,682
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
January 31, November 1,
1998 1997
CURRENT LIABILITIES
Accounts payable - trade $ 43,474 $ 76,267
Accrued income taxes 112,392 146,210
Other current liabilities 166,122 283,211
Total current liabilities 321,988 505,688
STOCKHOLDERS' EQUITY
Common capital stock - par value
$.025 per share - authorized
and issued 1,000,000 shares 250,000 250,000
Additional paid in capital 272,695 272,695
Retained earnings 4,406,891 4,155,972
Net unrealized gains on
marketable securities 45,672 32,545
Less treasury stock at cost -
224,415 shares ( 187,218) ( 187,218)
Total stockholders' equity 4,788,040 4,523,994
Total liabilities and
stockholders' equity 5,110,028 5,029,682
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
(Unaudited)
Thirteen Fourteen
Weeks Ended Weeks Ended
January 31, February 1,
1998 1997
NET SALES $1,047,004 $663,772
COST OF SALES 547,581 480,185
Gross profit
on sales 499,423 183,587
OPERATING EXPENSES
Sales & delivery 3,193 3,355
General and administrative 119,494 70,437
Total operating expenses 122,687 73,792
Operating income 376,736 109,795
OTHER INCOME 40,365 38,037
Net income before taxes 417,101 147,832
FEDERAL AND STATE INCOME TAXES 166,182 59,000
Net income 250,919 88,832
RETAINED EARNINGS -
beginning of period 4,155,972 3,481,639
RETAINED EARNINGS -
end of period 4,406,891 3,570,471
EARNINGS PER SHARE OF
COMMON STOCK .32 .09
Average shares of
stock outstanding 775,585 776,464
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Thirteen Fourteen
Weeks Ended Weeks Ended
January 31, February 1,
1998 1997
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income $250,919 $88,832
Adjustments to reconcile net
income to net cash provided
by operating activities
Depreciation and
amortization 10,331 11,395
Loss on sale of
securities 798 ( 2,746)
Decrease (increase) in
Accounts receivable 229,522 11,822
Inventories 9,293 ( 27,754)
Prepaid expenses 7,716 6,052
(Decrease) increase in
Accounts payable ( 32,793) 4,015
Accrued income taxes ( 33,818) ( 77,062)
Other current liabilities ( 117,089) ( 68,279)
Net cash provided (used)
by operating activities 324,879 ( 53,725)
CASH FLOWS FROM INVESTING
ACTIVITIES
Additions to property and
equipment ( 35,563) ( 47,942)
Purchases of securities ( 50,018) ( 50,000)
Sale of securities 6,250 200,000
Net cash (used) provided
in investing activities ( 79,331) 102,058
OPT-Sciences Corporation and Subsidiary
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Thirteen Fourteen
Weeks Ended Weeks Ended
January 31, February 1,
1998 1997
CASH FLOW FROM
FINANCING ACTIVITIES:
Purchases of treasury stock $ -0- $( 750)
Net cash (used) in
financing activities -0- ( 750)
Increase in cash 245,548 47,583
Cash and cash equivalents
at beginning of year 2,981,027 2,557,251
Cash and cash equivalents
at end of year 3,226,575 2,604,834
SUPPLEMENTAL DISCLOSURES OF
CASH FLOWS INFORMATION:
Interest paid -0- -0-
Income taxes paid 200,000 136,000
OPT-Sciences Corporation and Subsidiary
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. In the opinion of management, the accompanying unaudited
consolidated financial statements contain all adjustments
necessary to present fairly OPT-Sciences Corporation's
financial position as of January 31, 1998 and November 1,
1997, and the results of operations for the thirteen weeks
ended January 31, 1998 and the fourteen weeks ended February
1, 1997 and cash flows for the respective periods then
ended.
2. The results of operations for the periods presented are not
necessarily indicative of the results to be expected for the
full year.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
Cash and cash equivalents--OPT Sciences Corporation's cash
balances increased during the first quarter of the year from
$2,981,027 to $3,226,575. Profits generated, coupled with a
decrease in accounts receivable more than offset decreases
in current obligations. There are no material obligations
in existence which would be anticipated to cause any sub-
stantial decrease in the cash balances from other than the
Company's future operations.
RESULTS OF OPERATIONS
Sales revenues have increased by about 58% from the level of
the first quarter of the prior year which continues the
growth trend of the prior year. Gross profits increased by
about 172% from those of the prior year due to increase in
volume which makes more efficient use of the available labor
force. Earnings from investments are higher due to higher
invested balances than at the same time last year.
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant this report to be signed on its behalf by the under-
signed, thereunto duly authorized.
OPT-SCIENCE CORPORATION
Registrant
Date Anderson McCabe, President
Date Harvey Habeck,
Chief Accountant
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