UNITED STATES
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 period ended October 31, 1997.
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
----- SECURITIES EXCHANGE ACT OF 1934.
For the transition period from to .
--- ---
Commission file number 0-15407
Circuit Systems, Inc.
-------------------------------------------------------
(Exact name of registrant as specified in charter)
Illinois 36-2663010
--------------------------------- ----------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
2350 East Lunt Avenue, Elk Grove Village, Illinois 60007
- -------------------------------------------------- ---------
(Address of principal executive offices) (Zip Code)
(847) 439 - 1999
------------------------------ -----------------------------
(Registrant's telephone number, (Former name, former address and
including area code) 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 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 the past 90 days. Yes X No .
---- ----
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDING DURING THE PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15 (d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by a court. Yes No .
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of each of the issuer's classes of common stock, as of the latest
practicable date: December 3, 1997 4,877,373.
<PAGE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
INDEX
Page
Number
PART I. FINANCIAL INFORMATION
1. Financial Statements
Consolidated Condensed Balance Sheets .................. 3
Consolidated Condensed Statements of Operations ........ 4
Consolidated Condensed Statement of Cash Flows ......... 5
Notes to Consolidated Condensed Financial Statements ... 6
2. Management's Discussion and Analysis of Financial Condition
and Results of Operations ............................. 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K ............. 9
<PAGE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED)
<TABLE>
4/30/97 10/31/97
----------- -----------
<S> <C> <C>
ASSETS
CURRENT ASSETS
CASH AND CASH EQUIVALENTS ........ $ 294,204 $ 634,573
ACCOUNTS RECEIVABLE, LESS
ALLOWANCE OF $500,000 .......... 6,561,782 12,431,808
INVENTORIES
RAW MATERIALS .................... 2,797,845 2,974,227
WORK IN PROCESS ................ 2,129,627 3,417,282
FINISHED GOODS .................. 1,709,349 2,436,347
----------- ----------
6,636,821 8,827,856
DEFERRED INCOME TAXES ............ 363,000 363,000
PREPAID EXPENSES .................. 215,674 199,826
----------- ----------
TOTAL CURRENT ASSETS ......... 14,071,481 22,457,063
INVESTMENT IN AFFILIATE ........... 2,841,193 2,919,681
PROPERTY, PLANT, AND EQUIPMENT - AT COST
BUILDING AND IMPROVEMENTS ........ 9,446,475 13,511,918
MACHINERY AND EQUIPMENT .......... 33,871,214 40,620,526
AUTOMOTIVE EQUIPMENT .............. 83,796 72,304
---------- ----------
43,401,485 54,204,748
LESS ACCUMULATED DEPRECIATION 18,442,154 20,601,013
---------- ----------
24,959,331 33,603,735
LAND ............................... 2,814,613 2,981,425
---------- ----------
27,773,944 36,585,160
OTHER ASSETS
DEPOSITS AND SUNDRY .............. 1,071,481 1,187,435
---------- ----------
$45,758,099 $63,149,339
========== ==========
</TABLE>
<PAGE>
<TABLE>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
CURRENT LIABILITIES
CURRENT MATURITIES OF L/T OBLIGATIONS $ 4,662,289 $ 6,085,455
ACCOUNTS PAYABLE .................. 4,095,791 6,450,162
ACCRUED LIABILITIES ............... 1,193,969 1,154,960
INCOME TAXES PAYABLE ............. 384,745 350,000
---------- ----------
TOTAL CURRENT LIABILITIES 10,336,794 14,040,577
LONG - TERM OBLIGATIONS ............. 10,640,363 25,798,602
DEFERRED INCOME TAXES .............. 1,848,000 1,784,000
MINORITY INTEREST .................... 471,246 432,101
SHAREHOLDERS' EQUITY
COMMON STOCK ...................... 2,882,322 2,773,037
RETAINED EARNINGS ................. 19,596,240 18,344,172
CUMULATIVE FOREIGN CURRENCY
TRANSLATION ADJUSTMENT ........... (16,866) (23,150)
---------- ----------
22,461,696 21,094,059
---------- ----------
$45,758,099 $63,149,339
========== ==========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS
<PAGE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
THREE MONTHS ENDED SIX MONTHS ENDED
10/31/96 10/31/97 10/31/96 10/31/97
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
NET SALES .............. $18,399,817 $20,473,136 $32,735,227 $33,395,754
COST OF GOODS SOLD ...... 16,326,328 18,242,125 28,704,849 30,525,683
---------- ---------- ---------- ----------
GROSS PROFIT ......... 2,073,489 2,231,011 4,030,378 2,870,071
SALES & MARKETING EXPENSES 864,119 729,079 1,553,793 1,369,168
ADMINISTRATIVE EXPENSES .. 656,692 645,503 1,407,533 1,233,858
---------- ---------- ---------- ----------
1,520,811 1,374,582 2,961,326 2,603,026
OPERATING INCOME ..... 552,678 856,429 1,069,052 267,045
OTHER (INCOME) DEDUCTIONS
INTEREST EXPENSE ...... 391,863 661,164 760,508 1,016,157
GAIN ON SALE OF EQUIPMENT --- (325) --- (325)
EQUITY IN EARNINGS OF
UNCONSOLIDATED AFFILIATE (261,810) (45,960) (393,658) (78,488)
MINORITY INTEREST IN LOSS
OF SUBSIDIARY ...... --- (22,817) --- (51,192)
RENTAL INCOME ......... (78,600) (118,460) (156,600) (209,320)
SUNDRY ................ (17,919) (1,827) (24,104) (20,155)
--------- ---------- --------- ---------
33,534 471,775 186,146 656,677
EARNINGS (LOSS) BEFORE
INCOME TAXES 519,144 384,654 882,906 (389,632)
INCOME TAXES ......... 199,400 168,000 339,000 (104,000)
--------- ---------- ---------- ---------
NET EARNINGS (LOSS) ... $ 319,744 $ 216,654 $ 543,906 $ (285,632)
========= ========== ========== =========
PER SHARE DATA
NET EARNINGS (LOSS) PER SHARE $0.06 $0.04 $0.10 ($0.06)
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 5,357,977 5,045,038 5,371,141 5,088,115
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS
<PAGE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
SIX MONTHS ENDED
10/31/96 10/31/97
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
NET EARNINGS (LOSS) .................... $ 543,906 $ (502,286)
ADJUSTMENTS TO RECONCILE NET EARNINGS (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES:
DEPRECIATION ............................ 1,860,000 979,320
GAIN ON SALE OF EQUIPMENT ............ -- (325)
MINORITY INTEREST IN LOSS OF SUBSIDIARY -- (51,192)
DEFERRED INCOME TAXES ................. 48,000 (64,000)
EQUITY IN EARNINGS OF UNCONSOLIDATED AFFILIATE (393,658) (78,488)
CHANGES IN ASSETS AND LIABILITIES,
NET OF EFFECTS FROM ACQUISITION
ACCOUNTS RECEIVABLE .................... (2,207,669) (5,870,026)
INVENTORIES ............................. (174,165) (1,521,035)
PREPAID EXPENSES ....................... 35,095 15,848
OTHER ASSETS ........................... 32,202 (115,954)
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2,380,225 2,280,617
---------- ----------
TOTAL ADJUSTMENTS ................... 1,580,030 (3,238,496)
---------- ----------
NET CASH PROVIDED BY (USED IN) OPERATIONS 2,123,936 (3,524,128)
CASH FLOWS FROM INVESTING ACTIVITIES
CAPITAL EXPENDITURES ................... (2,008,880) (1,497,275)
MINORITY INTEREST CAPITAL CONTRIBUTION .
TO SUBSIDIARY ..................... -- 12,047
PAYMENT FOR PURCHASE OF PRINTED CIRCUIT BOARD
OPERATION OF PHILLIPS ............... -- (10,150,000)
PROCEEDS FROM SALE OF EQUIPMENT ...... -- 325
---------- ----------
NET CASH USED IN INVESTING ACTIVITIES . (2,008,880) (10,588,933)
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES
NET BORROWINGS UNDER LINE OF CREDIT .. 264,335 8,331,778
REPURCHASE OF COMMON STOCK ........... -- (1,075,721)
PROCEEDS FROM LONG - TERM OBLIGATIONS .. 1,500,000 10,898,632
PAYMENTS ON LONG - TERM OBLIGATIONS .... (1,819,705) (2,649,005)
--------- ---------
NET CASH (USED IN) PROVIDED BY
FINANCING ACTIVITIES .............. (55,370) 15,505,684
EFFECT OF FOREIGN EXCHANGE RATE CHANGES -- (6,284)
---------- ----------
(DECREASE) INCREASE IN CASH .............. 59,686 340,369
CASH AT THE BEGINNING OF THE PERIOD 243,269 294,204
---------- ----------
CASH AT THE END OF THE PERIOD $ 302,955 $ 634,573
========== ==========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
CASH PAID DURING THE PERIOD FOR:
INTEREST ............................. $ 722,472 $ 1,001,514
INCOME TAXES ........................ 465,000 320,227
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE STATEMENTS
<PAGE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. These interim Consolidated Condensed Financial Statements
should be read in conjunction with the Consolidated
Financial Statements and notes included in the Company's
April 30, 1997 Annual Report and Form 10-K.
2. In the opinion of the Company, the accompanying unaudited
condensed consolidated financial information reflects all
adjustments (consisting only of normal recurring accruals)
necessary for a fair presentation of the statements
contained herein.
3. These consolidated statements are presented in accordance
with the requirements of Form 10-Q and consequently may
not include all disclosures normally required by generally
accepted accounting principles normally made in the
Company's Annual Report and Form 10-K.
4. Effective July 28, 1997, the Company, through a recently
formed affiliate, Circuit Systems of Tennessee, a
Tennessee limited partnership ("CST, LP"), acquired the
printed circuit board operation of Philips Consumer
Electronics Company ("Philips"), a division of Philips
Electronics North America Corporation. The acquisition
consisted of inventory, machinery and equipment, land and
building for an aggregate cost of $10,150,000, including
direct costs of acquisition.
The purchase price was allocated as follow:
Inventory $670,000
Machinery and equipment 5,480,000
Building 3,845,000
Land 155,000
----------
$ 10,150,000
==========
The purchase was funded through term and mortgage
notes with the Company's commercial lender. The
acquisition has been accounted for as a purchase and the
operations have been included from the effective date of
the acquisition. In addition, CST, LP and Philips entered
into a printed circuit board ("PCB") purchase agreement in
which CST, LP will manufacture and sell to Philips all of
its television PCB requirements for North America for a
minimum of two years.
5. Effective November 24, 1997, the Company acquired certain of
the PCB assets of Zenith Electronics Corporation ("Zenith") for
$625,000, which was funded by a secured installment note
with the Company's commercial lender. The Company intends to
move necessary equipment into its existing Elk Grove Village,
Illinois and Greeneville, Tennessee facilities.
In addition, the Company and Zenith entered into PCB purchase
agreement whereby the Company will supply Zenith with 100% of
the PCB's which were previously produced by Zenith's Kostner
Avenue, Chicago facility & a minimum of 50% of any newly
designed PCB's for a period of two years, subject to competitive
pricing requirements.
<PAGE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Note: To the extent any statements in this Form 10-Q may be
deemed to be forwardlooking, such statements should be evaluated
in the context of the risks and uncertainties inherent in the
Company's business, including those risks and uncertainties set
forth in the Company's Annual Report and Form 10-K for the
fiscal year ended April 30, 1997.
Effective July 28, 1997, the Company, through a recently formed
affiliate, Circuit Systems of Tennessee, a Tennessee limited
partnership ("CST, LP"), acquired the printed circuit board
operation of Philips Consumer Electronics Company ("Philips"), a
division of Philips Electronics North America Corporation. The
acquisition consisted of inventory, machinery and equipment,
land and building for an aggregate cost of $10,150,000,
including the direct costs of acquisition. The purchase was
funded through term and mortgage notes with the Company's
commercial lender. The acquisition has been accounted for as a
purchase and the results of operations have been included from
the effective date of the acquisition.
Reference to "Circuit Systems" in this discussion relates to
Illinois operations only.
The net sales for the quarter ended October 31, 1997 were
$20,473,000, increasing by 11% from $18,400,000 for the same
quarter last year. The increase in sales is due to the
inclusion of CST, LP and Circuit Systems (India) Limited
("CSIL") which were $5,992,000 and $105,000, respectively.
Circuit Systems' sales accounted for $14,376,000 or a decrease
of 22% when compared to $18,400,000 for the same quarter last
year. Net sales to five individual customers accounted for
approximately 78%, of which SigmaTron International, Inc.
("SigmaTron") and Philips accounted for 8% and 24%, respectively
compared to the same period last year in which three customers
including SigmaTron accounted for approximately 59% of net
sales. The gross profit for the quarter was $2,231,000 or 10.9%
of net sales, compared to $2,073,000 or 11.3% of net sales for
the same quarter last year. Circuit Systems and CST, LP had a
gross profit of 6.9% and 21.0%, respectively, while CSIL had a
gross deficit of 13.1%. The lower gross profit is attributed to
very competitive pricing, lower sales volume and operating
inefficiencies at Circuit Systems. In addition, a reduction in
sales for Circuit Systems prevented the Company from covering
fixed expenses associated with the overall increase in
production equipment/capacity, as well as the start-up of CSIL.
These factors in effect caused expenses to increase as a
percentage of sales.
<PAGE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
( CONTINUED )
The net sales for the six months ended October 31, 1997 were
$33,396,000, increasing by 2% from $32,735,000 for the same
period last year. The increase in sales is due to the inclusion
of CST, LP and CSIL, which were $6,262,000 and $173,000,
respectively. Circuit Systems' sales accounted for $26,961,000
or a decrease of 18% when compared to $32,735,000 for the same
period last year. Net sales to four individual customers
accounted for approximately 66%, of which SigmaTron and Philips
accounted for 9% and 14%, respectively, compared to the same
period last year in which three customers including SigmaTron
accounted for approximately 55% of net sales. The gross profit
for the six months ended October 31, 1997 was $2,870,000 or 8.6%
of net sales, compared to $4,030,000 or 12.3% of net sales for
the same period in the prior year. Circuit Systems and CST, LP
had a gross profit of 6.0% and 20.6%, respectively, while CSIL
had a gross deficit of 21.0%. The gross profit for the Company
was affected by the same factors as noted above.
Sales and marketing, and administrative expenses for the three
and six months ended October 31, 1997, were $1,375,000 or 6.7%
of net sales and $2,603,000 or 7.8% of net sales, respectively,
compared to $1,521,000 or 8.3% of net sales and $2,961,000 or
9.0% of net sales, respectively, for the same periods last year.
The decrease in the expenses as a percentage of net sales is
due to current CST, LP current customer base sales is not
subject to commissions, and a decrease in professional fees and
bad debt expense. These were partly offset by administrative
expenses related to CSIL and an increase in salaries.
Other deductions-net for the three and six months ended October
31, 1997, were $472,000 and $657,000, respectively, compared to
$34,000 and $186,000, respectively, for the same periods in the
prior year. Interest expense increased to $661,000 and
$1,016,000, respectively, in 1997, compared to $392,000 and
$761,000, respectively, for the same periods last year. The
increase is due to CST, LP's debt load and increased borrowings
under the line-of-credit. Rental income increased to $118,000
and $209,000 for the three and six months ended October 31,
1997, compared to $79,000 and $157,000, respectively for the
same periods last year. The increase is due to renting
additional space at the 2450 E. Lunt location. The equity in
the net earnings of the unconsolidated affiliate, SigmaTron,
decreased to $46,000 and $78,000 for the three and six months
ended October 31, 1997, compared to $262,000 and $394,000,
respectively, for the same periods last year. The decrease of
SigmaTron's net earnings for the current year is due to a
decline in revenues from the current customer base.
The effective income tax rate for the six months ended October
31, 1997 is (26.7)%, compared to the 1996 rate of 38.4%. The
lower effective tax rate is due to the inability to recognize
the tax effects of certain foreign net operating losses.
<PAGE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION & RESULTS OF OPERATIONS (CONTINUED)
The net earnings and earnings per share for the three months
ended October 31, 1997, were $217,000 or $.04, while the six
months ended October 31, 1997 reflected a net loss and loss per
share of $286,000 or $.06 compared to net earnings and earnings
per share of $320,000 or $.06 and $544,000 or $.10 for the three
and six month periods in the prior year.
LIQUIDITY AND CAPITAL RESOURCES
The Company's financial requirements were met through an
increase in long-term obligations and borrowings under the line
of credit.
For the six months ended October 31, 1997, the cost of the
Philips acquisition of $10,150,000, increase in accounts
receivable of $5,870,000, payments on long-term obligations of
$2,649,000, increase in inventories of $1,521,000, capital
expenditures of $1,497,000 and the repurchase of Company stock
of $1,076,000 were funded by proceeds from long-term obligations
of $10,899,000, net borrowings on the line of credit of
$8,332,000 and the increase in accounts payable and accrued
liabilities of $2,281,000.
The Company has purchase commitments as of October 31, 1997 of
approximately $2,300,000 for future deliveries of machinery and
equipment and $350,000 for building improvements to the 2400 E.
Lunt Avenue property. The Company intends to finance such
purchases through collateralized borrowing, installment loans
and existing cash flow.
Effective November 24, 1997, the Company acquired certain of the
PCB assets of Zenith Electronics Corporation ("Zenith") for
$625,000, which was funded by a secured installment note with
the Company's commercial lender. The Company intends to move
necessary equipment into its existing Elk Grove Village,
Illinois and Greeneville, Tennessee facilities. In addition,
the Company entered into a PCB purchase agreement whereby the
Company will supply Zenith with 100% of the PCB's which were
previously produced by Zenith's Kostner Avenue, Chicago facility
and a minimum of 50% of any newly designed PCB's for a period of
two years, subject to competitive pricing requirements. From
November through December 3, 1997, the Company repurchased 87,000
of its common stock for $404,000.
The Company's backlog at October 31, 1997, is approximately
$18,615,000 which includes approximately $6,230,000 for CST, LP
(which is primarily product for Philips) compared to
$14,136,000 at October 31, 1996. CST, LP backlog represents
orders scheduled to be shipped within approximately six months
while CSI backlog is scheduled to be shipped in four months or
less. The reliability of backlog as an indicator of future
sales varies substantially with makeup of customer orders and
the Company's scheduled production and delivery dates.
<PAGE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
PART 2 - OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K
(a) Exhibits
Exhibit 11 - Calculation of Primary and Fully
Diluted Per Share Earnings (Loss)
(b) Reports on Form 8-K
Form 8-K filed August 8, 1997, regarding the
acquisition of the printed circuit board
manufacturing operation of Philips Consumer
Electronics Company, a division of Philips
North America Operation.
Form 8-K/A filed October 6, 1997, amending the 8-K
filed on August 8, 1997.
<PAGE>
<TABLE>
Exhibit 11
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
COMPUTATION OF PER SHARE EARNINGS (LOSS)
<S> <C> <C> <C> <C>
THREE MONTHS ENDED SIX MONTHS ENDED
PRIMARY EPS 10/31/96 10/31/97 10/31/96 10/31/97
---------- ---------- --------- --------
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
DURING THE PERIOD 5,321,973 5,015,741 5,321,973 5,056,792
NET ADDITIONAL SHARES ASSUMING
DILUTIVE STOCK OPTIONS EXERCISED &
PROCEEDS USED TO PURCHASE TREASURY
SHARES AT AVERAGE FAIR MARKET VALUE 36,004 29,297 49,168 31,323
--------- -------- -------- ---------
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES & COMMON EQUIVALENT
SHARES OUTSTANDING 5,357,977 5,045,038 5,371,141 5,088,115
========= ========= ========= =========
NET EARNINGS (LOSS) ............. $ 319,774 $ 216,654 $ 543,906 $(285,632)
========= ========= ========= =========
PRIMARY EARNINGS (LOSS) PER SHARE $0.06 $0.04 $0.10 ($0.06)
========= ========= ========= =========
FULLY DILUTED EPS
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
DURING THE PERIOD 5,321,973 5,015,741 5,321,973 5,056,792
NET ADDITIONAL SHARES ASSUMING
DILUTIVE STOCK OPTIONS EXERCISED &
PROCEEDS USED TO PURCHASE TREASURY
SHARES AT FAIR MARKET VALUE (OR
AVERAGE FAIR MARKET VALUE
IF HIGHER) 36,004 29,297 49,168 31,323
--------- -------- -------- ---------
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES & COMMON EQUIVALENT
SHARES OUTSTANDING 5,357,977 5,045,038 5,371,141 5,088,115
========= ========= ========= =========
NET EARNINGS (LOSS) ............. $ 319,774 $ 216,654 $ 543,906 $(285,632)
========= ========= ========= =========
PRIMARY EARNINGS (LOSS) PER SHARE $0.06 $0.04 $0.10 ($0.06)
========= ========= ========= =========
</TABLE>
<PAGE>
CIRCUIT SYSTEMS, INC.
AND SUBSIDIARIES
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, registrant's principal
financial officer, thereunto duly authorized.
Circuit Systems, Inc.
(registrant)
Dilip S. Vyas
----------------------
Dilip S. Vyas
(Principal Financial Officer)
December 11, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1998
<PERIOD-END> OCT-31-1997
<CASH> 643,573
<SECURITIES> 0
<RECEIVABLES> 12,931,808
<ALLOWANCES> 500,000
<INVENTORY> 8,827,856
<CURRENT-ASSETS> 22,457,063
<PP&E> 57,186,173
<DEPRECIATION> 20,601,013
<TOTAL-ASSETS> 63,149,339
<CURRENT-LIABILITIES> 14,040,577
<BONDS> 25,798,602
0
0
<COMMON> 2,773,037
<OTHER-SE> 18,344,172
<TOTAL-LIABILITY-AND-EQUITY> 63,149,339
<SALES> 33,395,754
<TOTAL-REVENUES> 33,395,754
<CGS> 30,525,683
<TOTAL-COSTS> 30,525,683
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,016,157
<INCOME-PRETAX> (389,632)
<INCOME-TAX> (104,000)
<INCOME-CONTINUING> (285,632)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (285,632)
<EPS-PRIMARY> (.06)
<EPS-DILUTED> (.06)
</TABLE>
