SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended April 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission File No. 0-17384
Boston Technology, Inc.
(Exact name of registrant as specified in its charter)
Delaware 04-3073385
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) Identification Number)
100 Quannapowitt Parkway
Wakefield, Massachusetts 01880
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (617) 246-9000
Indicate by check mark whether the registrant (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 at least the past 90 days.
Yes X No .
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Shares Outstanding
Class of Securities (as of June 6, 1997)
Common Stock, $.001 par value per share 26,205,143
<PAGE>
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BOSTON TECHNOLOGY, INC.
FORM 10-Q
Index
Page
Number
---------
PART I. FINANCIAL INFORMATION
ITEM 1. Consolidated Financial Statements
Consolidated Balance Sheets
As of April 30, 1997 (Unaudited) and January 31, 1997.................... 3
Consolidated Statements of Income
For the three months ended April 30, 1997 and 1996........................ 4
Consolidated Statements of Cash Flows
For the three months ended April 30, 1997 and 1996........................ 5
Notes to the Consolidated Financial Statements........................... 6
ITEM 2. Management's Discussion and Analysis of Financial
Conditions and Results of Operations .......................... 8
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings.............................................. 13
ITEM 2. Changes in Securities.......................................... 13
ITEM 3. Defaults upon Senior Securities................................ 13
ITEM 4. Submission of Matters to a Vote of Security Holders........... 13
ITEM 5. Other Information.............................................. 13
ITEM 6. Exhibits and Reports on Form 8-K............................... 13
Signatures................................................................ 14
Exhibit Index............................................................. 15
PAGE 2
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<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. Consolidated Financial Statements
BOSTON TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(dollars in thousands, except share amounts)
<TABLE>
<CAPTION>
April 30, January 31,
1997 1997
----------- ------------
Assets (unaudited)
<S> <C> <C>
Current Assets:
Cash and cash equivalents $26,557 $14,032
Accounts receivable, less allowances of
$4,507 and $3,656 72,325 54,405
Net investment in sales type leases 806 645
Inventories, net 25,271 19,046
Prepaid expenses and other current assets 3,715 2,771
--------- -------
Total current assets 128,674 90,899
Property and equipment, net 31,500 25,568
Deferred taxes 4,284 4,284
Other assets 6,984 7,422
-------- --------
TOTAL ASSETS $171,442 $128,173
========= ========
Liabilities and Stockholders' Equity
Current Liabilities:
Current portion of long term debt $1,329 $1,000
Accounts payable 13,828 15,235
Accrued expenses 23,380 21,556
Income taxes payable 1,860 2,618
Deferred customer funding 2,483 1,140
Deferred revenues 18,498 8,939
------- -------
Total current liabilities 61,378 50,488
Long term debt and other long term liabilities 23,441 1,193
Stockholders' Equity:
Common stock, $.001 par value,
60,000,000 shares authorized
26,043,866 and 25,501,691 26 25
Additional paid in capital 64,154 60,557
Retained earnings 22,044 15,516
Cumulative translation adjustment 399 394
-------- --------
Total stockholders' equity 86,623 76,492
-------- --------
TOTAL LIABILITES AND STOCKHOLDERS' EQUITY $171,442 $128,173
======== =========
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
PAGE 3
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<PAGE>
BOSTON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in thousands, except per share amounts)
(unaudited)
<TABLE>
<CAPTION>
Three months ended April 30,
1997 1996
-------- --------
<S> <C> <C>
Revenues $63,375 $35,751
Cost and expenses:
Cost of revenues 27,694 17,976
Research and development 13,976 7,093
Marketing, general and administrative 12,024 7,878
-------- --------
53,694 32,947
Income from operations 9,681 2,804
Interest (expense) income, net (256) 65
Other (expense), net (336) (53)
------- --------
Income before provision for income taxes 9,089 2,816
Provision for income taxes 3,182 986
------- --------
Net income $5,907 $1,830
======= ========
Net income per share $.21 $.07
======= ========
Weighted average common and common
equivalent shares outstanding 28,673 27,729
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
PAGE 4
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<PAGE>
BOSTON TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(unaudited)
<TABLE>
<CAPTION>
Three months ended April 30,
1997 1996
-------- ------
<S> <C> <C>
Cash Flows from Operating Activities
Net Income $5,907 $1,830
Adjustments to reconcile net income
to net cash used in operating activities:
Depreciation and amortization 3,229 1,531
Payments made in excess of rent expense (50) (48)
Provision for allowance for bad debt 851 3
Non-cash charge for joint venture 195 100
Changes in assets and liabilities:
Accounts receivable (18,316) (16,232)
Net investment in sales type leases (161) 448
Inventories (6,225) (2,129)
Prepaid expenses and other current assets (935) (44)
Accounts payable (2,384) 390
Accrued expenses 1,764 3,490
Deferred revenue 9,281 784
Income taxes payable 302 2,222
Deferred customer funding 1,343 (1,789)
AT & T contract accrual --- (1,082)
Other liabilities (11) 34
---------- --------
Net cash used in operating activities (5,210) (10,492)
Cash Flows From Investing Activities
Purchase of property and equipment (6,208) (4,112)
Purchase of license agreements and other assets (98) (324)
Other assets 341 ---
---------- ---------
Net cash used in investing activities (5,965) (4,436)
Cash Flows From Financing Activities
Exercise of stock options 2,001 960
Purchase of stock through
Employee Stock Purchase Plan 536 374
Principal payments under financing obligations (500) (275)
Borrowings under revolving credit agreements 25,000 10,600
Repayments under revolving credit agreements (5,000) (5,000)
--------- --------
Net cash provided by financing activities 22,037 6,659
Effect of exchange rate on cash and
cash equivalents 5 (5)
-------- --------
Net increase (decrease) in cash and
cash equivalents 10,867 (8,274)
Cash acquired in pooling of
Enhanced Communications Corporation 1,658 ---
Cash and cash equivalents, beginning of period 14,032 13,929
--------- ---------
Cash and cash equivalents, end of period $ 26,557 $ 5,655
========= =========
</TABLE>
<TABLE>
<CAPTION>
Supplemental Disclosure of Cash Flow Information:
<S> <C> <C>
Tax benefit of disqualifying dispositions
of incentive stock options $1,060 $185
Income taxes paid 2,625 21
Interest paid 335 210
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
PAGE 5
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<PAGE>
BOSTON TECHNOLOGY, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands)
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of Boston
Technology, Inc. (the "Company") have been prepared in accordance with
generally accepted accounting principles for the interim financial information
and pursuant to the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, these consolidated financial statements do not include all of the
information and footnote disclosures required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) necessary for a fair
representation of the unaudited consolidated statements of income for the three
months ended April 30, 1997 and 1996, the unaudited consolidated statements of
cash flows for the three months ended April 30, 1997 and 1996, and the unaudited
consolidated balance sheet at April 30, 1997 have been made.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. Significant estimates
included in these financial statements include the reserve for bad debts,
reserve for warranty, inventory valuation reserve and certain accrued
liabilities.
It is suggested that the financial statements contained herein be read in
conjunction with the audited consolidated financial statements and notes thereto
included in the Company's Annual Report on Form 10-K for the year ended January
31, 1997. The results of the interim periods are not necessarily indicative of
the results for the full fiscal year.
Certain amounts in the fiscal 1997 financial statements have been reclassified
to conform to the fiscal 1998 presentation.
2. INVENTORIES
Inventories consisted of:
April 30, 1997 January 31, 1997
-------------- ----------------
Materials and purchased parts $11,235 $7,735
Work in process 9,792 9,585
Finished goods 4,244 1,726
-------------- ----------------
Total $25,271 $19,046
============== ================
PAGE 6
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<PAGE>
3. FINANCING ARRANGEMENTS
The Company maintains a revolving credit facility with two banks totaling $35
million. Borrowings are collateralized by the Company's accounts receivable and
inventories and bear interest at the prime rate (8.5% at April 30, 1997) or the
LIBOR rate plus 175 basis points. The credit facility is scheduled to expire
on November 19, 1998. As of April 30, 1997, the Company had $20 million
outstanding under the credit facility.
4. RECENTLY ISSUED ACCOUNTING STANDARDS
The Financial Accounting Standards Board issued Statement No. 128 ("SFAF 128"),
"Earnings per Share", which modifies the way in which earnings per share (EPS)
is calculated and disclosed. Upon adoption of this standard for the fiscal
period ending January 31, 1998, the Company will disclose basic and diluted
EPS and will restate all prior period EPS data presented. Basic EPS excludes
dilution and is computed by dividing income available to common stockholders by
the weighted average number of common shares outstanding for the period.
Diluted EPS, similar to fully diluted EPS, reflects the potential dilution that
could occur if securities or other contracts to issue common stock were
exercised or converted into common stock or resulted in the issuance of common
stock that then shared in the earnings of the entity. Management believes the
adoption of SFAS 128 will not have a material impact on reported earnings per
share.
5. ACQUISITION OF ENHANCED COMMUNICATION CORPORATION
On February 20, 1997, the Company acquired all of the outstanding stock of
Enhanced Communications Corporation ("ECC"), a company providing outsourcing
of voice messaging for Bell South Telecommunications, Inc. and Bell South
Personal Communications, Inc. for 250,000 shares of the Company's Common Stock.
The combination has been accounted for as a pooling of interests in accordance
with APB 16. The Company did not restate prior period financial statements for
this acquisition due to immateriality, and recorded the book value of the net
assets of ECC in the period ending April 30, 1997 amounting to $622,000.
Change is stockholders' equity:
Balance of January 31, 1997 $76,492
Net income for current period 5,907
Net book value of assets acquired in pooling of interest 622
Stock issued for options, related tax benefits and other 3,602
----------
Balance at April 30, 1997 $86,623
===========
PAGE 7
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<PAGE>
ITEM 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
This Quarterly Report on Form 10-Q contains forward-looking statements. For
this purpose, any statements contained herein that are not statements of
historical fact may be deemed to be forward-looking statements. Without
limiting the foregoing, the words "believes," "anticipates," "plans," "expects,"
and similar expressions are intended to identify forward-looking statements.
There are a number of important factors that could cause the Company's actual
results to differ materially from those indicated in such forward-looking
statements. These factors include, without limitation, those set forth below
the caption "Certain Factors That May Affect Future Operating Results."
Results of Operations
Three months Ended April 30, 1997 versus Three Months Ended April 30, 1996
Net Sales
Revenues for the first quarter of fiscal year 1998 were $63,375,000 versus
$35,751,000 for the prior period, an increase of $27,624,000, or 77%. North
American revenues, generated by sales to Regional Bell Operating Companies,
long distance carriers, and other network operators, were approximately
$39,128,000, an increase of $20,985,000, or 116%, over the prior year period.
North American revenues increased to 62% of total revenues verses 51% in the
prior year due primarily to higher incremental volume from several existing
customers. International revenues for the first quarter were $24,247,000, an
increase of $6,639,000, or 38%, over the prior year period. International
revenues increased primarily due to higher volume from the Company's existing
Pacific Rim and Australian customers. International revenues comprised 38% of
total first quarter fiscal 1998 revenues verses 49% in the prior period.
Gross Profit
Gross profit for the first quarter of fiscal 1998 increased over the
corresponding prior year period by $17,906,000, or 101%, to $35,681,000. As a
percentage of revenues, gross profit was approximately 56% for the three months
ended April 30, 1997 compared to approximately 50% for the comparable prior year
period. The increase in gross profit as a percentage of revenues was due
primarily to an increase in the number of larger systems shipped as well as a
higher volume of capacity upgrades, which traditionally have higher margins.
Assuming a stabilization of prices with increased revenues, the Company
anticipates that gross profit as a percentage of revenues will remain at or
near the levels experienced in the first quarter of fiscal 1998, if, as
expected, the Company anticipates to ship larger systems, and capacity and
additional functionality is added to the smaller systems shipped in
fiscal year 1997.
PAGE 8
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<PAGE>
Research and Development Expenses
Net research and development expenses were $13,976,000 for the first quarter
of fiscal 1998 verses $7,093,000 for the prior period. As a percentage of
revenues, net research and development expenses increased to 22% for the first
quarter versus 20% for the prior year. Excluding the effect of customer funding
and certain reclassifications, gross research and development spending in the
first quarter of fiscal 1998 increased $7,840,000, or 86%, over the prior year
period primarily due to an increase in headcount required to support ongoing
development projects. The Company expects to continue to make significant
investments in research and development, including research and development
required under certain recent customer contracts. The Company is also involved
in research and development programs that are funded in whole or in part by its
customers. Customer funding is recognized as a reduction to research and
development expense as development activities occur. Customer funding offsets
against expense for the first quarter of fiscal 1998 and 1997 were $1,233,000
and $1,460,000, respectively. In addition to customer funding offsets, the
Company periodically capitalizes expenditures incurred under long term custom
modification contracts. These expenditures are classified as work in process
and are recognized in cost of sales as product is delivered. Capitalized
expenditures for these long term custom modification contracts for the first
quarter 1998 and 1997 amounted to $1,772,000 and $588,000, respectively.
Marketing, General and Administrative Expenses
Marketing, general and administrative expenses for the first quarter were
$12,024,000 versus $7,878,000 for the prior period. As a percentage of
revenues, these expenses decreased from 22% in the prior year period to 19% in
the first quarter of fiscal 1998 due primarily to higher incremental revenue.
Marketing, general and administrative expenses increased $4,146,000 versus the
prior period due primarily to the expansion of the worldwide customer service
and sales organizations, particularly in Mexico, the United Kingdom and the Far
East, as well as increased staffing to support the overall growth of the
Company's business.
Net interest (expense) income
Interest income for the quarter decreased by $188,000 to $87,000 at April 30,
1997 due primarily to lower average cash balances. Interest expense for the
first quarter increased by $133,000 to $343,000 as a result of borrowings
against the Company's line of credit. The Company expects to continue to borrow
against its line of credit in the future and incur interest expense that is
higher than past periods.
Other Expense
Other expense increased $283,000 to $336,000 for the three months ended April
30, 1997 due primarily to a foreign exchange loss and the Company's share of
the loss incurred by the joint venture established in December 1995 in Brazil.
Provision for Income taxes
The effective tax rate for the three months ended April 30, 1997 and 1996 was
35%. The Company expects the tax rate to remain at approximately 35% throughout
the remainder of fiscal 1998.
PAGE 9
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<PAGE>
Liquidity and Capital Resources
The Company has funded its operations to date primarily through cash flow from
operations and its bank lines of credit. At April 30, 1997 and January 31,
1997, the Company had available cash and cash equivalents of $26,557,000 and
$14,032,000, respectively, and working capital of $67,296,000 and $40,411,000,
respectively. The Company maintains a $35,000,000 revolving credit facility with
two banks. Borrowings are collateralized by the Company's accounts receivable
and inventories and bear interest at the prime rate (8.5% at April 30, 1997) or
the LIBOR rate plus 175 basis points. The credit facility is scheduled to
expire on November 19, 1998. This revolving credit facility also has a 1/2 of
1% annual commitment fee on the unused portion. The facility contains quarterly
covenants which, among other things, require the Company to maintain certain
financial ratios, specified levels of equity and other restrictions. The
Company had borrowings under its revolving credit facilities of $20,000,000
outstanding at April 30, 1997. The Company also has available uncollateralized
lines of credit for forward foreign exchange contracts with three banks. There
was no outstanding balance on these lines of credit at April 30, 1997.
Net cash used in operating activities for the quarter ended April 30, 1997 was
$5,210,000. In the quarter ended April 30, 1997, net cash used in operating
activities consisted primarily of an increase in accounts receivable of
$18,316,000, an increase in inventories of $6,225,000, and a decrease in
accounts payable of $2,384,000, offset by net income of $5,907,000, an increase
in deferred revenue of $9,281,000, and depreciation and amortization expense of
$3,229,000.
Net cash used in investing activities for the quarter ended April 30, 1997 was
$5,965,000. This reflects primarily purchases of property and equipment of
$6,208,000, consisting primarily of computer workstations and test equipment,
as a result of increased headcount and growth of revenues.
Net cash provided by financing activities for the quarter ended April 30, 1997
was $22,037,000. This reflects borrowings made under the revolving credit
agreements of $25,000,000, and proceeds from exercise of common stock options
of $2,001,000.
The Company believes that its cash and cash equivalents, along with cash
generated from operations and unused credit facilities will be sufficient to
meet the Company's cash requirements and to fund operations at least through
January 31, 1998.
PAGE 10
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<PAGE>
Certain Factors That May Affect Future Operating Results
The reader should consider the following important factors, among others, which
in some cases have affected, and in the future could affect, the Company's
actual results and could cause the Company's results in future quarters and
fiscal years to differ materially from those expressed in forward-looking
statements made by, or on behalf of, the Company.
Historically, a substantial portion of the Company's revenues have been
attributed to a limited number of customers. The Company expects to continue
to rely on a limited number of customers for a significant portion of its
revenue. In addition, the Company also has a high average system revenue per
transaction; therefore, the loss of any one customer, or a significant decline
in their volume, could have a material adverse effect on the Company's business
and its results of operations. The Company's ability to increase future revenues
may depend on its ability to generate sufficient revenues to substitute for
reduced purchases by one or more major customers. In addition, the Company's
operating expenses are incurred ratably throughout each quarter and are
relatively fixed in the short term. As a result, if projected revenues are not
realized in the expected period, the Company's operating results for that period
could be adversely affected.
The Company's industry is subject to rapid technological change. The Company's
revenue stream depends on its ability to enhance its existing software products
and to introduce new products on a timely and cost-effective basis. This
includes any customer-requested custom software enhancements required in the
normal course of product delivery. The Company's products involve sophisticated
hardware and software technology platforms that perform critical functions to
highly demanding standards. There can be no assurance the Company's current or
future products will not develop operational problems, which could have a
material adverse effect on the Company. In addition, if the Company were to
delay the introduction of new products, or to delay the delivery of specific
custom software enhancements, the Company's operating results could be adversely
affected.
The international portion of the Company's business, which represented 38% of
revenues for the first three months of fiscal 1998, is subject to a number of
inherent risks, including difficulties in building and managing international
operations and international reseller networks, international service and
support of the Company's products, difficulties or delays in translating
products into foreign languages, fluctuations in the value of foreign
currencies, import/export duties and quotas, and unexpected regulatory, economic
or political changes in international markets. Due to the competitive
environment in the international marketplace, certain international customers
may require longer payment terms resulting in greater difficulty in accounts
receivable collection. In addition, while the Company's products are designed
to meet the regulatory standards of foreign markets, any inability to obtain
foreign regulatory approvals or to meet other required standards on a timely
basis could have a material adverse effect on the Company's operating results.
PAGE 11
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<PAGE>
As a result of the expected increase in international business, the Company's
revenues may increasingly be denominated in foreign currencies. To date,
foreign currency fluctuations have not had a material adverse effect on the
Company's operating results. While the Company has periodically engaged in
hedging transactions to cover its currency translation exposure, the expected
increase in international business may require the Company to engage in these
types of transactions more frequently to mitigate the effect of foreign currency
fluctuations.
Although backlog has increased compared to the prior year period, historically,
the Company has operated with minimal backlog. While the increased backlog
has provided greater visibility for near-term revenues, revenues earned in any
quarter will continue to be largely dependent on orders booked, built, and
shipped in that quarter. Other factors that may impact the Company's ability to
convert backlog into revenues for any given quarter are development efforts that
may span several quarters, the ability to secure hardware components from single
source suppliers and the fact that orders may be canceled or delivery schedules
modified. The Company has also experienced a pattern of recording the majority
of its quarterly revenues in the third month of the quarter.
The Company sells substantially all of its products to companies in the
telecommunication industry. This industry is undergoing significant change as
a result of deregulation and privatization worldwide, reducing restrictions on
competition in the industry. Unforeseen changes in the regulatory environment
may have an impact on the Company's revenues and/or costs in any given part of
the world. The worldwide enhanced services systems industry is already highly
competitive and the Company expects competition to intensify. The Company
believes that it will continue to encounter substantial competition from its
existing competitors, and that other companies, many with considerably greater
financial, technical, marketing and sales resources than the Company, may enter
the enhanced services systems markets.
Certain components of the Company's products are currently purchased from a
single source, and, although the Company believes that alternate sources are
available, any interruption or discontinuation in the supply of such components
could adversely affect the Company's operating results.
The Company's growth and success depend upon its ability to attract, motivate
and retain highly skilled employees, especially technical employees and key
executives. Qualified technical employees are in great demand and are likely
to remain a limited resource for the foreseeable future. There can be no
assurance the Company will be successful in hiring and retaining the required
personnel.
The growth of the Company has placed and is expected to continue to place
significant demands on the Company's operational, administrative and financial
resources. There can be no assurance the Company will be able to maintain its
historic growth rate or that any future growth will not have a material adverse
effect on the Company.
The Company's ability to compete effectively will depend to a significant extent
on its ability to protect its proprietary rights and operate without infringing
the proprietary rights of others, and there can be no assurance the Company will
be able to do so. In addition, any litigation involving such proprietary rights
could have a material adverse effect on the Company.
PAGE 12
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<PAGE>
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings
Reference is made to the Company's Annual Report on Form 10-K for the fiscal
year ended January 31, 1997 for a description of certain legal proceedings
(Civil Action Nos. 95-CV-7236, 95-CV-7295 and 95-CV-7317) commenced in the
United States District Court for the Eastern District Court for Eastern District
of Pennsylvania against the Company and certain of its current and former
officers and directors alleging violations of Section 10(b) of the Securities
Exchange Act of 1934, as amended, and Rule 10b-5 thereunder. On November 14,
1996, the United States District Court of the Eastern District of Pennsylvania
ordered the cases transferred to the United States District court for the
District of Massachusetts. On January 19, 1997, the defendants filed a Motion
to Dismiss on the grounds that the Amended Complaint fails to state a claim
under the relevant sections of the Securities Exchange Act of 1934, and under
the law as applied by the United States Court of Appeals for the First Circuit.
Oral argument was held on the Motion to Dismiss and the Plaintiffs Reply to the
Motion on March 20, 1997. A decision is expected by August 1997. Boston
Technology and the defendants continue to deny the allegations and will
continue to contest these cases vigorously. The outcome of this lawsuit is
neither probable nor estimable; accordingly, no loss provision has been made
for this lawsuit.
ITEM 2. Changes in Securities
Not applicable.
ITEM 3. Defaults upon Senior Securities
Not applicable.
ITEM 4. Submission of matters to Vote of Security Holders
Not applicable.
ITEM 5. Other Information
Not applicable.
ITEM 6. Exhibits and Reports
(a) Exhibits
The exhibits listed in the Exhibits Index are filed as part of or included in
this report.
(b) Reports on Form 8-K
None.
PAGE 13
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<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, thereunto duly authorized.
Date: June 12, 1997 BOSTON TECHNOLOGY, INC.
By: /s/ CAROL B. LANGER
---------------------------
Carol B. Langer
Senior Vice President of Finance,
Chief Financial Officer,
Treasurer and Secretary
PAGE 14
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<PAGE>
EXHIBIT INDEX
Exhibit
Number Title
- -------- --------------------------------------------------
11 Statement Re: Weighted Shares used in Computation
of Earnings per Share
27 Financial Data Schedule
PAGE 15
<PAGE>
<PAGE>
Exhibit 11
Boston Technology, Inc.
Statement of Weighted Shares used in Computation of Earnings Per Share
(in thousands)
<TABLE>
<CAPTION>
Three months ended April 30,
1997 1996
-------- ----------
<S> <C> <C>
Common stock outstanding, beginning of period 25,502 24,732
Weighted average common stock issued during the
three months ended April 30, 366 68
Weighted average common stock equivalents 8,039 7,927
Weighted average treasury shares acquired using the
treasury stock method (5,234) (4,998)
---------- ----------
Weighted average shares of common stock outstanding 28,673 27,729
========== ==========
</TABLE>
PAGE 16
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-31-1998
<PERIOD-END> APR-30-1997
<CASH> 26557
<SECURITIES> 0
<RECEIVABLES> 76832
<ALLOWANCES> 4507
<INVENTORY> 25271
<CURRENT-ASSETS> 128674
<PP&E> 57234
<DEPRECIATION> 25734
<TOTAL-ASSETS> 171442
<CURRENT-LIABILITIES> 61378
<BONDS> 0
0
0
<COMMON> 26
<OTHER-SE> 86597
<TOTAL-LIABILITY-AND-EQUITY> 171442
<SALES> 63375
<TOTAL-REVENUES> 63375
<CGS> 27694
<TOTAL-COSTS> 27694
<OTHER-EXPENSES> 26000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 335
<INCOME-PRETAX> 9089
<INCOME-TAX> 3182
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5907
<EPS-PRIMARY> .21
<EPS-DILUTED> .21
</TABLE>
