UNITED STATES SECURITIES 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: April 5, 1996
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 APRIL 5, 1996, the Company issued a letter to shareholders discussing
yearend 1995 results, the announcement of the Company's stock repurchase
plan, and other informational issues. This shareholder letter is
incorporated by reference and is attached hereto as Exhibit 20.3.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS, AND
EXHIBITS.
Exhibit 20.3 - Letter to Shareholders published APRIL 5, 1996.
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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 hereunto duly authorized.
ELECTRONIC SYSTEMS TECHNOLOGY, INC.
T. L. KIRCHNER
By: T.L. Kirchner
President
Date: APRIL 5, 1996
EXHIBIT 20.3-Letter to Shareholders
To Our Shareholders:
We are pleased to report record annual gross revenues of $1,731,949 for
the year ended December 31, 1995, comprised mainly of sales of
$1,535,071, as compared to gross revenues of $1,340,380 for year end
1994, a 29% increase, and an 11% increase over the previous gross
revenues bench mark of $1,563,916 in 1993. The Company reported a net
income before tax for 1995 of $404,137 compared with net income before
tax in 1994 of $290,839, an increase of 39%.
(see appendix item no. 2 for description of graphic content not
displayed in electronic format)
As was stated at the Annual Shareholder Meeting in June of 1995, it is
Management's opinion that the Company's stock is undervalued, therefore
the Board of Directors have approved a repurchase plan ("the Plan") for
the Company's stock. Under conditions of the Plan, the Company may
acquire its common stock up to a total value of $100,000 from open market
purchases from brokers and dealers. The Plan may commence as early as
April 12, 1996, and continue through June 30, 1996. Stock repurchases are
subject to the terms and conditions of The Plan. In an effort to take
into consideration as many shareholders as possible, the maximum number
of shares the Company will repurchase from any single shareholder during
the duration of the Plan will be 10,000 shares. Due to the financial
position of the Company, it is Management's opinion that resources
allocated for accomplishment of the Plan can be expended without
detrimental effect to the Company's research & development, marketing or
operations requirements.
Another reminder for our shareholders, all of EST's filing data to the
Security Exchange Commission (SEC) is available from the SEC information
archive on the Internet (http://www.sec.gov). Additionally, EST has
it's Internet web site operational, (http://www.esteem.com), containing
technical and sales information for our existing and potential customers.
We have been pleased with the response to our web site, as it continues
to develop more sales, technical and shareholder related information will
be included.
Annual reports, proxies, and official notice of the Annual Meeting are
scheduled to be mailed by the end of April. Just a reminder that our
annual shareholder meeting will be on Friday, June 7, 1996, 3:00p.m. PDT,
at Cavanaugh's Inn in Kennewick. All shareholders are welcome, and I
hope to see you there.
T. L. KIRCHNER
T.L. Kirchner
President
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<TABLE>
SELECTED FINANCIAL DATA
<CAPTION>
for Year ended Dec. 31 Dec. 31
1995 1994
======= =======
<S> <C> <C>
Sales $1,535,071 $ 1,197,720
Gross Profit $ 932,485 $ 732,340
Income before income taxes $ 404,137 $ 290,839
Income after income taxes $ 267,709 $ 185,940
Earnings per common
share before taxes
Primary $ .07 $ .05
Fully diluted $ .07 $ .05
Earnings per common
share after taxes
Primary $ .05 $ .04
Fully diluted $ .05 $ .04
Weighted average number of
common shares and common stock
equivalents outstanding for use in
determining Earnings Per Share:
Primary 5,433,174 5,360,982
Fully diluted 5,433,174 5,360,982
Total assets $2,010,772 $1,597,612
Long-term debt
and capital lease
obligations $ -0- $ -0-
Shareholder's equity $1,877,180 $1,555,558
Shareholder's equity
per share $ .37 $ .31
Working Capital $1,723,823 $1,449,848
Equity to total assets 93% 97%
</TABLE>
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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, P.S.
305 IBM Building
W. 201 N. River Drive
Spokane, WA 99201
TRANSFER AGENT
TranSecurities International, Inc.
2510 North Pines, 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 first page
of the shareholder letter was a bar graph showing the comparison of
the Company's Year End Gross Revenues for the years 1995, 1994, 1993.
The data presented was as follows:
1995 year end gross revenues: $1,731,949
1994 year end gross revenues: $1,340,380
1993 year end gross revenues: $1,563,916
