<PAGE> 1
FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
( ) TRANSACTION REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transaction period from _____________ to ______________
For Quarter Ended _____________________ Commission File Number 0-27706
XECOM CORP
(Exact Name of Registrant as Specified in its Charter)
Nevada 33-0664567
(State or other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or organization)
69-730 Highway 111, Suite 101, Rancho Mirage, California 92270
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (619) 202-1555
________________________________________________________________________________
(Former Name, former address and former fiscal year, if changed since last
report.)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of 15(d) of the Securities and 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 ________
The number of shares of stock of the registrant, par value .001, outstanding as
of November 10, 1996, was 10,664,892 shares of common stock; 1,200,000 Series A
Preferred Shares; 3,556,000 Series B Preferred Shares; 830,000 Series C
Preferred Shares outstanding and 20 Series D Preferred Shares.
<PAGE> 2
FORM 10-QSB REPORT INDEX
<TABLE>
<CAPTION>
Page
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Form 10-QSB and Item No.
PART I FINANCIAL INFORMATION1
ITEM 1. Financial Statements
Consolidated Balance Sheet -- Assets as of September 30, 1996
<S> <C>
(Unaudited) .............................................................. 1
Consolidated Balance Sheet -- Liabilities and Shareholders' Equity
as of September 30, 1996 (Unaudited) ..................................... 2
Consolidated Statements of Operations for the three months and nine months
ended September 30, 1996 and 1995 (Unaudited) ............................ 3
Consolidated Statement of Stockholders' Equity for the nine months
ended September 30, 1996 (Unaudited) ..................................... 4
Consolidated Statements of Cash Flows for the nine months
ended September 30, 1996 and 1995 (Unaudited) ............................ 5 - 6
Notes to Consolidated Financial Statements (Unaudited) ................... 7
ITEM 2. Managements' Discussion and Analysis of the Financial
Condition and Results of Operations ...................................... 8
PART II OTHER INFORMATION
Item 1. Legal Proceedings ........................................................ 12
Item 3. Defaults Upon Senior Securities .......................................... 12
Item 6. Exhibits and Reports on Form 8-K ......................................... 12
</TABLE>
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(1)The accompanying financial statements are not covered by an
independent Certified Public Accountants Report.
<PAGE> 3
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
XECOM CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 1996
(UNAUDITED)
ASSETS
CURRENT ASSETS
<TABLE>
<S> <C>
Cash $ 19,824
Accounts receivable, less allowance for doubtful accounts
of -0- 340,631
Note Receivable 287,500
Due to affiliates 343,000
Other receivables 45,079
Investments, available-for-sale 974,350
-----------
TOTAL CURRENT ASSETS 2,010,384
PROPERTY AND EQUIPMENT, net 18,491,926
GOODWILL AND INTANGIBLE ASSETS, net 1,812,867
PREPAID CONSULTING FEE 1,440,000
OTHER ASSETS 48,500
-----------
$23,803,677
===========
</TABLE>
(See Notes to Consolidated Financial Statements)
-1-
<PAGE> 4
XECOM CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS OF SEPTEMBER 30, 1996
(UNAUDITED)
<TABLE>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
<S> <C>
Accounts payable $ 2,861,446
Accrued liabilities 650,132
Dividends payable 446,450
Customer advance 170,495
Related party debt -- current portion 1,961,617
Capital lease obligations -- current portion 1,478,722
Note payable 2,114,901
------------
TOTAL CURRENT LIABILITIES 9,683,763
RELATED PARTY DEBT, net of current portion 61,000
CAPITAL LEASE OBLIGATIONS, net of current portion 10,335,009
MINORITY INTEREST 386,931
------------
TOTAL LIABILITIES 20,466,703
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common stock, $.0001 par value, 100,000,000 shares
authorized, 9,084,892 shares issued and outstanding 908
Preferred stock, $.0001 par value, 50,000,000 shares
authorized, 6,186,020 shares issued and outstanding 619
Additional paid in capital 9,908,592
Unrealized loss on securities available-for-sale (907,650)
Retained deficit (5,665,495)
------------
TOTAL SHAREHOLDERS' EQUITY 3,336,974
------------
$ 23,803,677
============
</TABLE>
(See Notes to Consolidated Financial Statements)
-2-
<PAGE> 5
XECOM CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER
------------ ---------
1996 1995 1996 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
NET SALES $ 799,464 $ 1,881,418 $ 3,631,180 $ 4,829,479
COST OF SALES 810,539 1,486,363 3,152,636 3,802,375
----------- ----------- ----------- -----------
Gross Profit (11,075) 395,055 478,544 1,027,104
OPERATING EXPENSES
Selling, general and administrative expenses 824,694 707,135 2,123,988 1,577,907
Depreciation and amortization 208,712 98,409 636,907 214,651
----------- ----------- ----------- -----------
TOTAL OPERATING EXPENSES 1,033,406 805,544 2,760,895 1,792,558
----------- ----------- ----------- -----------
LOSS FROM OPERATIONS (1,044,481) (410,489) (2,282,351) (765,454)
OTHER INCOME (EXPENSES)
Minority interests in consolidated subsidiaries (12,753) (14,007) 792 6,122
Interest expense (301,394) (55,867) (590,436) (162,323)
Other expenses 10,518 558 7,180 (42,308)
----------- ----------- ----------- -----------
TOTAL OTHER EXPENSES, NET (303,629) (69,316) (582,464) (198,509)
----------- ----------- ----------- -----------
LOSS BEFORE INCOME TAXES (1,348,110) (479,805) (2,864,815) (963,963)
Income taxes -- -- -- --
NET LOSS $(1,348,110) $ (479,805) $(2,864,815) $ (963,963)
=========== =========== =========== ===========
NET LOSS PER COMMON SHARE $ (.15) $ (.09) $ (.34) $ (.32)
=========== =========== =========== ===========
AVERAGE COMMON SHARES OUTSTANDING 8,800,436 5,639,022 8,437,155 3,005,753
=========== =========== =========== ===========
</TABLE>
(See Notes to Consolidated Financial Statements)
-3-
<PAGE> 6
XECOM CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
(UNAUDITED)
<TABLE>
<CAPTION>
Common Stock Preferred Stock
- ------------------------------------------------------------------------------------------------------------------------
Shares Amounts Shares Amounts
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance January 1, 1996 7,939,892 $794 5,537,000 $554
- ------------------------------------------------------------------------------------------------------------------------
Shares Issued from Private Placements 455,000 45 849,020 85
- ------------------------------------------------------------------------------------------------------------------------
Proceeds from Stock Subscription -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Dividends on Preferred Stock -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Conversion of Preferred B to Common Stock 400,000 40 (200,000) (20)
- ------------------------------------------------------------------------------------------------------------------------
Stock Paid in Lieu of Services Rendered 290,000 29 -- --
- ------------------------------------------------------------------------------------------------------------------------
Unrealized Loss on Securities Available for Sale -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Net Loss for the Nine Months Ended September 30, 1996 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Balance, September 30, 1996 9,084,892 $908 6,186,020 $619
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Additional Paid Unrealized Loss on Retained Total Shareholders
in Capital Securities Available Deficit Equity
for Sale
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance January 1, 1996 $ 7,337,291 $(562,400) $(2,354,230) $ 4,422,009
- --------------------------------------------------------------------------------------------------------------------------------
Shares Issued from Private Placements 1,881,350 -- -- 1,881,480
- --------------------------------------------------------------------------------------------------------------------------------
Proceeds from Stock Subscription 400,000 -- -- 400,000
- --------------------------------------------------------------------------------------------------------------------------------
Dividends on Preferred Stock -- -- (446,450) (446,450)
- --------------------------------------------------------------------------------------------------------------------------------
Conversion of Preferred B to Common Stock (20) -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Stock Paid in Lieu of Services Rendered 289,971 -- -- 290,000
- --------------------------------------------------------------------------------------------------------------------------------
Unrealized Loss on Securities Available for Sale -- (345,250) -- (345,250)
- --------------------------------------------------------------------------------------------------------------------------------
Net Loss for the Nine Months Ended September 30, 1996 -- -- (2,864,815) (2,864,815)
- --------------------------------------------------------------------------------------------------------------------------------
Balance, September 30, 1996 $ 9,908,592 $(907,650) $(5,665,495) $ 3,336,974
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(See Notes to Consolidated Financial Statements)
-4-
<PAGE> 7
XECOM CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE
NINE MONTHS ENDED
SEPTEMBER 30
------------
1996 1995
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net Loss $(2,864,815) $ (963,963)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 623,915 214,651
Compensation expense on issuance of Stock 270,000 --
Minority interest in subsidiary earnings (792) (6,122)
Changes in operating assets and liabilities:
Accounts receivable (532,423) (1,206,654)
Due from affiliates (146,259) 99,374
Other receivables 26,338 235,778
Other assets (98,563) (388,969)
Accounts payable (137,802) 836,310
Accrued liabilities 352,088 118,339
Customer advances 120,495 75,000
----------- -----------
NET CASH USED IN OPERATING ACTIVITIES (2,387,818) (986,256)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment (262,910) (143,694)
Proceeds from Sale of Subsidiary 318,000 --
Payments on Note Receivable 12,500 --
----------- -----------
NET CASH USED IN INVESTING ACTIVITIES 67,590 (143,694)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from related party debt 255,000 667,500
Payments on related party debt -- (182,949)
Proceeds from stock subscription 400,000 --
Payments under capital lease obligations (285,860) (93,291)
Proceeds from capital contribution -- 419,000
Proceeds from issuance of preferred stock 1,299,000 --
Proceeds from issuance of common stock 582,480 117,000
Payments to Minority Interest in Partnerships (51,777) (3,085)
----------- -----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 2,198,843 924,175
----------- -----------
NET INCREASE (DECREASE) IN CASH (121,385) (205,775)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 141,209 314,352
----------- -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 19,824 $ 108,577
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements
-5-
<PAGE> 8
XECOM CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Supplemental Cash Flow Information
Supplemental disclosures of cash flow information for the nine months
ended September 30, 1996 and 1995, are summarized as follows:
<TABLE>
<CAPTION>
1996 1995
---- ----
Cash paid for interest and income taxes
<S> <C> <C>
Interest $ 320,950 $ 62,450
Income Taxes -- --
Noncash investing and financing activities:
Assets acquired by capital lease $11,049,543 $ 246,255
Assets acquired on credit 4,248,923 485,338
Accrued Dividends 446,450 --
</TABLE>
-6-
<PAGE> 9
XECOM CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. General
Xecom Corp. (the "Company") has elected to omit substantially all
footnotes to the Consolidated Financial Statements for the three and
nine months ended September 30, 1996, since there have been no material
changes to the information previously reported by the Company in its
Form 10-SB filing which became effective on August 6, 1996.
2. Unaudited Information
The information furnished herein was taken from the books and records
of the Company without audit. However, such information reflects all
adjustments which are, in the opinion of management, necessary to
properly reflect the results of the interim period presented. The
information presented is not necessarily indicative of the results from
operations expected for the full fiscal year.
-7-
<PAGE> 10
XECOM CORP. AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 1996, COMPARED WITH THE NINE MONTHS ENDED
SEPTEMBER 30, 1995.
The following discussion of the Company's financial condition as of September
30, 1996 and results of operations for the nine months ended September 30, 1996
and 1995, should be read in conjunction with the consolidated financial
statements and notes appearing elsewhere in this Form 10-QSB.
On September 8, 1995, the Company exchanged shares of restricted common stock
and preferred stock of the Company for 70% of the outstanding common stock of
SelecTel Corporation. For financial statement purposes, the transaction has been
recorded under the Purchase Method, per Accounting Principal Board Opinion 16.
(APB16).
On December 12, 1995, the Company exchanged the restricted common stock of the
Company for 100% of the outstanding common stock of Select Switch Systems, Inc.
For financial statement purposes, the transaction has been recorded under the
"Pooling of Interest" Method per APB 16.
The September 30, 1996 balance sheet and statement of operations and cash flows
for the period ending September 30, 1996 and 1995, reflect the consolidation of
the subsidiaries.
BUSINESS STRUCTURE
The Company provides facilities management services on an integrated basis to
institutional telephone users in the U.S. Military and colleges and
universities. Services include installation and maintenance of related
telecommunications - based equipment, and products and services such as long
distance, data network and facsimile services.
In September, 1995, the Company acquired 70% of SelecTel Corporation through the
issuance of 1,000,000 shares of restricted common stock, 1,000,000 shares of the
Company's 10% Series B, preferred stock and an $1,500,000, 9% demand promissory
note convertible into 1,200,000 shares of 11% of Series A, and 700,000 shares of
Series B preferred stock at the note holder's option. As of December 31, 1995,
the demand note conversion option had been exercised.
The Company sold SelecTel to Teletek on August 14, 1996 for approximately
$1,500,000 in cash, common stock in Teletek and Promissory Notes.
-8-
<PAGE> 11
XECOM CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Nine months ended September 30, 1996, compared with nine months ended September
30, 1995
BUSINESS STRUCTURE (continued)
In December, 1995, the Company acquired 100% of the outstanding capital stock of
Select Switch Systems, Inc., in exchange for 940,000 shares of restricted common
stock.
Select Switch Systems, Inc. provides a variety of telecommunications systems and
services to colleges and university dormitories and United States Army
installations.
Since its inception in 1990, Select Switch Systems, Inc. has primarily
concentrated on developing the small college and university segment of
residential multi-tenant development market. At small colleges and universities,
the Company contracts with the school for the exclusive right to provide local
dial tone and long distance service at the school's dormitories for a ten year
period. In addition, if requested, the Company will install cabling to provide
data transmission and cable television to tenants.
Select Switch was awarded a ten-year exclusive contract by the Army and Air
Force Exchange Services ("AAFES"), through the prime contractor, Sprint
Communications Company L.P. ("Sprint"), to install, maintain and operate a
turnkey residential barracks telephone service, including, if requested, wiring
for cable television, at 32 Army installations throughout the United States.
These bases comprise over 60,000 residents. In addition, the opportunity exists
for the subcontract to be expanded to cover an additional 40 Army and Air Force
installations totaling approximately 160,000 residents.
The Company is responsible for all costs and expenses associated with operating
and maintaining the telecommunications equipment installed at the school and
Army Bases. The telecommunications equipment remains the property of the
Company.
RESULTS OF OPERATION
For the nine months ended September 30, 1996, the Company had a loss from
operations of $2,282,351 and a net loss of $2,864,815 ($0.34 per share) as
compared to a loss from operations of $765,454 and a net loss of $963,963 ($0.32
per share) for the same period in 1995.
The change in the elements of revenues and expenses in 1996 as compared to 1995
reflect the Company's expansion into installing and maintaining telephone
switching equipment and voice mail systems, including cabling at the colleges
and universities and Army and Air Force installations throughout the United
States. In August, 1996, the Company sold its SelecTel subsidiary, therefore the
operations of the Company will reflect solely the operations of the Select
Switch subsidiary. Operating and administrative costs far exceed revenues in
1996 and will continue during the ramp-up stage of this project until such time
that the Company signs up enough subscribers to meet such costs.
-9-
<PAGE> 12
XECOM CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 1996, COMPARED WITH NINE MONTHS ENDED SEPTEMBER
30, 1995.
RESULTS OF OPERATIONS (Continued)
For the nine months ended September 30, 1996, the Company's gross profit was
$478,544, or 13% of net sales, as compared to $1,027,104, or 21% of net sales in
1995. The Company anticipates that the gross margin in 1996 will increase as the
Company signs up subscribers and provides enhanced services in the collegiate
and Army-Air Force programs. Selling, general and administrative expense for
1996 amounted to $2,123,988, or 58%, of net sales, as compared to $1,577,907, or
33%, of net sales.
General administrative expenses in 1996 included compensation and related
payroll taxes of approximately $1,078,192, professional fees of $368,363 and
rent, insurance, public relations and related offices expenses of $677,453. For
the 1995 nine month period, operating expenses consisted of compensation and
related expenses of approximately $823,755, professional fees of $166,800 and
rent, insurance and related office expenses of $587,352.
LIQUIDITY AND CAPITAL RESOURCES
For the nine months ended September 30, 1996, the Company utilized $2,387,818 in
operating activities, generated $67,590 in investing activities and generated
$2,198,843 in financing activities. This represents a decrease of $121,385 in
cash since December 31, 1995. The funds utilized in operating activities were
attributable primarily to the $2,864,815 net loss for the period.
In September, 1995, the Company acquired 70% of SelecTel Corporation through the
issuance of 1,000,000 shares of restricted common stock, 1,000,000 shares of 10%
Series B preferred stock and a $1,500,000, 9% demand promissory note convertible
into 1,200,000 shares of 11% Series A and 700,000 shares of Series B preferred
stock at the note holder's option. As of December 31, 1995, the demand note
conversion option had been exercised.
In December, 1995, the Company acquired 100% of the outstanding capital stock of
Select Switch Systems, Inc., in exchange for 940,000 shares of restricted common
stock.
The $67,590 of funds generated from investing activities was attributable to the
sale of the Company's SelecTel subsidiary offset by the telephone switch and
cabling equipment and installation costs associated with the college and
university and Army base installations.
The Company generated $2,198,843 from financing activities during 1996. This was
attributable primarily to the proceeds from the issuance of preferred and common
stock which totaled $2,281,480 and proceeds of $255,000 from related party debt.
-10-
<PAGE> 13
XECOM CORP.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Nine months ended September 30, 1996, compared with the nine months ended
September 30, 1995.
LIQUIDITY AND CAPITAL RESOURCES (continued)
For the nine months ended June 30, 1995, the Company utilized $986,256 in
operating activities and $143,694 from investing activities and generated
$924,175 from financing activities. The utilization in operating activities was
primarily attributable to the net loss of $963,963. The utilization of funds
from investing activities was attributable to the purchase and installation
costs of telephone switching and cabling, associated with the college and
university program. The company received proceeds of $667,500 from related party
debt and contributed capital of $419,000.
Where the Company provides long term telecommunications services to the colleges
and universities and to AAFES, the Company installs state of the art Fujitsu
Business Communications Systems, Inc. telecommunications equipment. The Company
has available from 75% up to 100% lease financing from Fujitsu, through the CIT
Group for all installation costs and equipment at the colleges and universities
and AAFES installations.
If necessary, the Company will pursue outside financing as a vehicle to meet its
working capital requirements. This pursuit may include loan negotiations with
lending institutions or proceeds from private equity or debt security offerings.
Recent changes in contract terms will markedly improve cash flow and earnings,
and current negotiations with lenders are expected to eliminate the need for
further capital contributions for the completionof these 32 Army installations.
The Company generated proceeds of $2,281,480 through the issuance of restricted
preferred and common stock. Where possible, the Company may issue the Company's
restricted securities in consideration for services or debt. As of December 31,
1995, a $1,500,000 demand promissory note was converted into 1,200,000 shares of
Series "A" 11% preferred stock, and 700,000 shares of Series "B" 10% preferred
stock. In lieu of monthly payments totaling $1,620,000, the Company issued
1,620,000 shares of Series "B" preferred stock to an investment banking company
for services to be rendered pursuant to a contract.
On August 14, 1996, the Company sold it's 70% interest in SelecTel for
approximately $1.5 million in cash, common stock and promissory notes.
IMPACT OF INFLATION
The Company does not believe that inflation has had a material adverse effect on
revenues or income during the past periods.
-11-
<PAGE> 14
XECOM CORP. AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
The Company was a defendant in an Adversary Proceeding brought on October 30,
1995 by American Telephone & Data, Inc. ("AT&D"), as Debtor-in-Possession in
Chapter 11 Bankruptcy Action filed September 9, 1995, by AT&D in the U.S.
Bankruptcy Court in Santa Ana, California.
On November 8, 1996, the Company received a Stipulation for Dismissal of the
entire action without prejudice.
In October, 1996, the Company filed a lawsuit against former officers, directors
and investors of its Select Switch subsidiary for conspiracy to defraud,
intentional and negligent interference with prospective economic advantage and
breach of fiduciary duty.
These same investors and former directors of the Select Switch subsidiary have
filed a suit for recovery of certain related party debt which is currently in
default.
Item 3. DEFAULTS UPON SENIOR SECURITIES
The registrant is currently in default on Related Party Indebtedness (current
portion totaling $1,961,617. This amount is currently in dispute. Further the
registrant paid no dividends, and is not in arrears in the payment of dividends
for the quarter ended September 30, 1996.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
A. Exhibits
Exhibit 27. Financial Data Schedule
B. Reports on form 8-K
This registrant filed a report on Form 8-K during the
quarter ended September 30, 1996, on the sale of its
SelecTel subsidiary.
-12-
<PAGE> 15
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report on Form 10-QSB to be signed on its behalf
by the undersigned thereon duly authorized.
XECOM CORP.
BY: /s/JOSEPH C. VIGLIAROLO
---------------------------
JOSEPH C. VIGLIAROLO
PRESIDENT
NOVEMBER 15, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 19,824
<SECURITIES> 974,350
<RECEIVABLES> 1,016,210
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,010,384
<PP&E> 19,257,154
<DEPRECIATION> 765,228
<TOTAL-ASSETS> 23,603,677
<CURRENT-LIABILITIES> 9,683,763
<BONDS> 0
0
619
<COMMON> 908
<OTHER-SE> 9,908,592
<TOTAL-LIABILITY-AND-EQUITY> 23,803,677
<SALES> 0
<TOTAL-REVENUES> 3,631,180
<CGS> 0
<TOTAL-COSTS> 3,152,636
<OTHER-EXPENSES> 2,760,895
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 590,436
<INCOME-PRETAX> (2,864,815)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,864,815)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,864,815)
<EPS-PRIMARY> (.34)
<EPS-DILUTED> 0
</TABLE>
