UNITED STATES SECURITES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Date of Report: December 22, 1995
ELECTRONIC SYSTEMS TECHNOLOGY, INC.
(A Washington Corporation)
Commission File no. 2-92949-S
IRS Employer Identification no. 91-1238077
415 N. Quay St. #4
Kennewick WA 99336
(Address of principal executive offices)
Registrant's telephone number, including area code:
(509) 735-9092
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ITEM 5. OTHER EVENTS
On DECEMBER 22, 1995, the Company issued a letter to shareholders discussing
third quarter fiscal year 1995 results, the release of new products, and
other informational issues. This shareholder letter is incorporated by
reference and is attached hereto as Exhibit 20.2.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS, AND EXHIBITS.
Exhibit 20.2 - Letter to Shareholders published DECEMBER 22, 1995.
<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 hereunto duly authorized.
ELECTRONIC SYSTEMS TECHNOLOGY, INC.
T.L.KIRCHNER
By: T.L. Kirchner
President
Date: 3 January 1996
EXHIBIT 20.2-Letter to Shareholders
To Our Shareholders:
We are pleased to report that our third quarter gross revenues reached a record
$452,620 as compared to $364,198 for the same period of 1994, a 24% increase.
EST reported a third quarter net profit before tax of $160,339 as compared to
$120,206 for the same period in 1994, a 33% increase.
(see appendix item no. 2 for description of graphic content not displayed in
electronic format.)
Our third quarter year to date gross revenues have also set a Company record
of $1,308,030 as compared to $996,926 for the same period of 1994, a 31%
increase. Third quarter year to date net profit before tax was a record
$355,545 as compared to $205,783 for the same period of 1994, a 73% increase.
(see appendix item no. 3 for description of graphic content
not displayed in electronic format)
The sales trends experienced year-to-date appear to be continuing in the fourth
quarter, which should put EST on track for a record sales year for 1995.
As stated at our Annual Shareholder Meeting in June, it is Management's
opinion that the Company's stock is under valued, therefore Management is
considering a stock buyback plan. Management is exploring stock buy-back
alternatives to be able to select the most effective method of repurchase to
meet desired goals. If the plan is approved by the Company's Board of
Directors, EST will submit the required public filings as specified by
securities regulations.
The development of the new ESTeem product line is in progress and scheduled
for release in the first quarter of 96.
As a reminder for our shareholders, all EST's filing data to the Security
Exchange Commission (SEC) is now available from the SEC information archive
on the Internet (http:/www.sec.gov). In addition, EST has it's own Internet
web site under construction which will provide technical and sales
information for our existing and potential customers, as well as Company
information for shareholders. The site is scheduled to be operational in
January 1996. Our Internet address is www.esteem.com.
T.L. Kirchner
President
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<TABLE>
SELECTED FINANCIAL DATA
(as prepared by Management)
(Unaudited)
<CAPTION>
Nine months ended Sept 30 Sept 30
1995 1994
==== ====
<S> <C> <C>
Sales $1,154,290 $ 889,928
Other revenue $ 153,740 $ 106,998
Gross Profit $ 707,353 $ 552,262
Income (Loss) before
provisions for income
taxes $ 355,545 $ 205,783
Earnings per common
share before taxes
Primary $ .07 $ .04
Fully diluted $ .07 $ .04
Earnings per common
share after taxes
Primary $ .04 $ .03
Fully diluted $ .04 $ .03
Weighted average number of
common shares and common stock
equivalents outstanding for use in
determining Earnings Per Share:
Primary 5,396,256 5,369,612
Fully diluted 5,396,256 5,369,612
Total assets $1,955,667 $1,576,734
Long-term debt
and capital lease
obligations $ -0- $ -0-
Shareholder's equity $1,827,893 $1,511,884
Shareholder's equity
per share $ .37 $ .30
Working Capital $1,708,249 $1,406,861
Equity to total assets 93% 96%
</TABLE>
<PAGE>
SHAREHOLDER INFORMATION
HEADQUARTERS
Electronic Systems Technology, Inc.
415 N. Quay Street
Kennewick, WA 99336
Office: (509) 735-9092
Facsimile: (509) 783-5475
Internet Web Site: :www.esteem.com
INDEPENDENT AUDITOR
Robert Moe & Associates
305 IBM Building
201 N. River Drive
Spokane, WA 99201
Office: (509) 747-7191
TRANSFER AGENT
TranSecurities International, Inc.
2510 North Pine, Suite 202
Spokane, WA 99206
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APPENDIX:
Item no. 1: (graphic material not included in electronic filing format)
Located at the top left of the document was the Electronic Systems
Technology, Inc. trademarked Company logo, showing a black square field
containing the stylized letters E S T.
Item no. 2: (graphic material not included in electronic filing format)
Located between the first and second paragraphs of the shareholder letter was
a bar graph showing the comparison of 3 rd quarter year to date revenues for
the years 1995, 1994, 1993, with the caption: Third Quarter YTD Revenue
Comparison. The data presented was as follows:
1995 year to date revenues: $1,308,030
1994 year to date revenues: $ 996,926
1993 year to date revenues: $1,074,064
Item no. 3: (graphic material not included in electronic filing format)
Located between the second and third paragraphs of the shareholder letter was
a bar graph showing the comparison of revenues for the 3 rd quarters of 1995,
1994, 1993 (Three months ending September 30, 1995), with the caption: Third
Quarter Revenue Comparison. The data presented was as follows:
1995 third quarter revenues: $452,620
1994 third quarter revenues: $364,198
1993 third quarter revenues: $279,013
