FORM 10-QSB
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark one)
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended December 31, 1998
-------------------------------
|_| 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: 0-15967
EFI ELECTRONICS CORPORATION
(Exact name of small business issuer as specified in its charter)
Delaware 75-2072203
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1751 South 4800 West, Salt Lake City, Utah 84104
(Address of principal executive offices)
Registrant's telephone number, including area code: (801) 977-9009
Check 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
past twelve 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 |_|_
Number of shares of the registrant's $0.0001 par value common stock
outstanding at December 31, 1998: 5,574,479
<PAGE>
INDEX TO FORM 10-QSB
PART I FINANCIAL INFORMATION PAGE
Item 1. Consolidated Financial Statements
Balance Sheets as of December 31, 1998 (Unaudited) and
March 31, 1998 .............................................3
Statements of Earnings for the three months
ended December 31, 1998 and 1997 (Unaudited)................4
Statements of Earnings for the nine months
ended December 31, 1998 and 1997 (Unaudited)............... 5
Statements of Cash Flows for the nine months
ended December 31, 1998 and 1997 (Unaudited)................6
Notes to Financial Statements (Unaudited).............7 - 9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations.........................................10 - 12
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K...........................13
Signatures..........................................................13
2
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
<S> <C>
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1998 MARCH 31, 1998
- --------------------------------------------------------------------------------------------------------------------------
(Unaudited) (as Restated)
ASSETS
Current assets:
Cash and cash equivalents $ 14,207 $ 9,566
Receivables, net 2,747,597 3,981,682
Inventories, net 3,321,901 3,359,178
Prepaid expenses 149,331 90,817
- --------------------------------------------------------------------------------------------------------------------------
Total current assets 6,233,036 7,441,243
- --------------------------------------------------------------------------------------------------------------------------
Property - net 2,524,208 2,539,290
Other assets:
Goodwill, net 671,610 752,203
Other assets 44,666 62,130
- --------------------------------------------------------------------------------------------------------------------------
Total other assets 716,276 814,333
- --------------------------------------------------------------------------------------------------------------------------
Total assets $9,473,520 $10,794,866
==========================================================================================================================
LIABILITIES
Current liabilities:
Accounts payable $934,069 $1,595,440
Estimated customer warranty claims within one year 223,199 205,405
Accrued liabilities 343,815 294,297
Revolving line of credit 2,823,767 3,472,935
Current maturities of capital lease obligations 176,111 159,242
Current maturities of notes payable 407,502 681,690
- --------------------------------------------------------------------------------------------------------------------------
Total current liabilities 4,908,463 $6,409,009
- --------------------------------------------------------------------------------------------------------------------------
Long-term liabilities:
Estimated customer warranty claims beyond one year 145,000 53,000
Capital lease obligations, less current maturities 218,882 353,498
Notes payable, less current maturities 893,906 895,082
- --------------------------------------------------------------------------------------------------------------------------
Total long-term liabilities 1,257,788 1,301,580
- --------------------------------------------------------------------------------------------------------------------------
Total Liabilities 6,166,251 7,710,589
- --------------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Common stock 557 551
Additional paid-in capital 2,952,791 2,930,739
Cumulative foreign currency translation adjustment (8,137) (5,870)
Retained earnings 572,058 368,857
- --------------------------------------------------------------------------------------------------------------------------
3,517,269 3,294,277
Less: Stock subscriptions and notes receivable
from management (210,000) (210,000)
- ---------------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 3,307,269 3,084,277
- ---------------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' equity $9,473,520 $10,794,866
==========================================================================================================================
</TABLE>
See notes to financial statements.
3
<PAGE>
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
For the three months ended December 31, 1998 1997
- --------------------------------------------------------------------------------------------------------------------------
Net sales $ 3,461,503 $ 4,248,981
Cost of sales 2,272,761 2,699,293
- --------------------------------------------------------------------------------------------------------------------------
Gross profit 1,188,742 1,549,688
- --------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Selling, general and
administrative expenses 858,328 1,028,230
Research and development 156,894 236,108
- --------------------------------------------------------------------------------------------------------------------------
Total operating expenses 1,015,222 1,264,338
- --------------------------------------------------------------------------------------------------------------------------
Earnings from operations 173,520 285,350
- --------------------------------------------------------------------------------------------------------------------------
Other income/(expense):
Equity in earnings of affiliate -0- (79,375)
Interest expense (108,990) (135,522)
Other, net (24,189) (37,765)
- --------------------------------------------------------------------------------------------------------------------------
Total other expense, net (133,179) (252,662)
- --------------------------------------------------------------------------------------------------------------------------
Earnings before income taxes 40,341 32,688
Income taxes -0- -0-
- --------------------------------------------------------------------------------------------------------------------------
Net earnings $ 40,341 $ 32,688
========================================================================================================================
Earnings per share:
Basic $ 0.01 $ 0.01
Diluted $ 0.01 $ 0.01
========================================================================================================================
Weighted average shares outstanding
Basic 5,574,479 5,273,096
Diluted 5,574,479 5,528,039
========================================================================================================================
</TABLE>
See notes to financial statements.
4
<PAGE>
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
For the nine months ended December 31, 1998 1997
- --------------------------------------------------------------------------------------------------------------------------
Net sales $11,313,164 $12,079,263
Cost of sales 7,421,738 7,741,446
- --------------------------------------------------------------------------------------------------------------------------
Gross profit 3,891,426 4,337,817
- --------------------------------------------------------------------------------------------------------------------------
Operating expenses:
Selling, general and
administrative expenses 2,719,418 3,104,695
Research and development 510,421 605,811
- --------------------------------------------------------------------------------------------------------------------------
Total operating expenses 3,229,839 3,710,506
- ---------------------------------------------------------------------------------------------------------------------------
Earnings from operations 661,587 627,311
- ------------------------------------------------------------------------------------------------------
Other income/(expense):
Equity in earnings of affiliate -0- 23,375
Interest expense (379,352) (398,892)
Other, net (79,034) (85,800)
- ---------------------------------------------------------------------------------------------------------------------------
Total other expense, net (458,386) (461,317)
- ---------------------------------------------------------------------------------------------------------------------------
Earnings before income taxes 203,201 165,994
Income taxes -0- -0-
- --------------------------------------------------------------------------------------------------------------------------
Net earnings $ 203,201 $ 165,994
==========================================================================================================================
Earnings per share:
Basic $ 0.04 $ 0.04
Diluted $ 0.04 $ 0.03
========================================================================================================================
Weighted average shares outstanding
Basic 5,562,480 4,704,084
Diluted 5,562,480 4,910,623
=============================================================================================================
</TABLE>
See notes to financial statements.
5
<PAGE>
CONSOLIDATED STATEMENTS OF CASHFLOWS (unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
For the nine months ended December 31, 1998 1997
- --------------------------------------------------------------------------------------------------------------------------
Cash flows from operating activities:
Net earnings $ 203,201 $ 165,994
Adjustments to reconcile net earnings to net cash
provided by (used in) operating activities:
Depreciation 536,985 442,657
Amortization 80,593 40,497
Equity in earnings of joint venture -0- (23,375)
Provision for obsolete inventory 127,503 56,250
Provision for bad debts 38,273 15,000
Provision for warranty expenses 300,049 174,855
Increase/(decrease) in cash due to change in:
Receivables 1,195,812 (421,206)
Inventories (90,226) (1,276,521)
Prepaid expenses (58,514) (173,020)
Other assets 17,464 25,437
Accounts payable (661,371) (145,296)
Reserve for customer warranty (190,255) (222,427)
Accrued income taxes payable -0- (113,309)
Accrued liabilities 49,518 437,743
- --------------------------------------------------------------------------------------------------------------------------
Net cash provided by / (used in) operating activities 1,549,032 (1,016,721)
- ---------------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Distribution from joint venture -0- 90,719
Capital expenditures (521,903) (761,601)
---------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (521,903) (670,882)
- --------------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
Net payments under revolving line of credit (649,168) 196,767
Principal payments on notes payable (275,364) (364,725)
Principal payments under capital lease obligations (117,747) (51,418)
Proceeds from borrowings under notes payable -0- 205,000
Proceeds from sales of common stock -0- 1,695,356
Proceeds from exercise of stock options 22,058 3,787
- --------------------------------------------------------------------------------------------------------------------------
Net cash (used in)/provided by financing activities (1,020,221) 1,684,767
- --------------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash (2,267) -0-
- ---------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents 4,641 (2,836)
Cash and cash equivalents at beginning of period 9,566 10,123
- --------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 14,207 $ 7,287
==========================================================================================================================
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes $ -0- $ 113,309
Interest $ 402,154 $ 402,991
==========================================================================================================================
Supplemental schedule of non-cash investing and financing activities:
1999 The Company retired $ 307,624 of fully depreciated property
The Company entered into Capital lease obligations for the acquisition
of equipment $ -0- $ 418,767
===========================================================================================================================
</TABLE>
See notes to financial statements.
6
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
In the opinion of Management, the accompanying consolidated financial statements
contain adjustments, consisting of normal recurring accruals, necessary for a
fair presentation of the financial position of EFI Electronics Corporation (the
"Company") and subsidiary at December 31, 1998 and March 31, 1998, and the
results of their operations and their cash flows for the three and nine months
ended December 31, 1998 and 1997. The results of operations for the three months
and nine months ended December 31, 1998 are not necessarily indicative of the
results that may be expected for the year ending March 31, 1999.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted as specified by the instructions to Form 10-QSB
and Item 310 of Regulation S-B. It is suggested that these financial
statements and related notes be read in conjunction with the Company's 1998
Form 10-KSB for the year ended March 31, 1998 included in the Annual Report to
Shareholders.
1. RECEIVABLES
Receivables consisted of the following:
December 31,1998 March 31, 1998
(Unaudited)
Trade and other receivables $ 2,760,235 $ 4,026,047
Allowance for doubtful accounts (12,638) (44,365)
- --------------------------------------------------------------------------------
Total Receivables $ 2,747,597 $ 3,981,682
================================================================================
2. INVENTORIES
Inventories consisted of the following:
December 31, 1998 March 31, 1998
(Unaudited)
Raw materials $ 1,696,268 $ 1,842,504
Work-in-process 502,537 552,250
Finished goods 1,300,072 1,039,424
- -------------------------------------------------------------------------------
3,498,877 3,434,178
Less allowance for obsolete inventory (176,976) (75,000)
- -------------------------------------------------------------------------------
Total Inventory $ 3,321,901 $ 3,359,178
===============================================================================
3. NET EARNINGS PER COMMON SHARE
Basic earnings per common share are based on the weighted average number of
common shares outstanding during each period. Diluted earnings per common share
are based on shares outstanding (computed as under basic EPS) and potentially
dilutive common shares. Potential common shares included in the dilutive
earnings per share calculation include stock options and warrants granted.
7
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued (Unaudited)
NET EARNINGS PER COMMON SHARE, continued
The following data show the amounts used in computing earnings per common share,
including the weighted average number of shares and dilutive potential common
stock.
Nine Months Ended December 31,
1998 1997
Shares outstanding during
the entire period 5,504,644 4,216,174
Weighted average shares
issued during the period 57,836 487,910
Weighted average number of
shares used in basic EPS 5,562,480 4,704,084
Dilutive effect of stock options
and warrants -0- 206,539
----------- ---------
Weighted average number of shares
and dilutive potential stock used
in dilutive EPS 5,562,480 4,910,623
========== ============
Three Months Ended December 31,
1998 1997
Shares outstanding during
the entire period 5,574,479 5,272,711
Weighted average shares
issued during the period -0- 385
Weighted average number
of shares used in basic EPS 5,574,479 5,273,096
Dilutive effect of
stock options and warrants -0- 254,943
----------------- -----------
Weighted average number of shares
and dilutive potential stock used
in dilutive EPS 5,574,479 5,528,039
=========== ===========
For the three and nine months ended December 31, 1998 options and warrants to
acquire 25,000 shares and 128,955 shares of common stock, respectively, were
not included in the computation of diluted EPS because their exercise price was
greater than the average market price of the common stock during the periods.
4. REVOLVING LINE OF CREDIT, CAPITAL LEASE OBLIGATIONS AND NOTES PAYABLE
At December 31 and March 31, 1998, revolving line of credit, capital lease
obligations and notes payable, the carrying value of which approximates fair
value, consisted of the following:
December 31, 1998 March 31, 1998
(Unaudited)
Revolving line of credit $ 2,823,767 $ 3,472,935
================================================================================
Capitalized lease obligations 394,993 512,740
Less current maturities (176,111) (159,242)
- --------------------------------------------------------------------------------
Capitalized lease obligations
(less current maturities) $ 218,882 $ 353,498
================================================================================
8
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued (Unaudited)
REVOLVING LINE OF CREDIT, CAPITAL LEASE OBLIGATIONS AND NOTES PAYABLE, continued
December 31, 1998 March 31, 1998
(Unaudited)
Notes payable:
Collateralized promissory note $ 707,807 $ 848,695
Uncollateralized subordinated
note - director 300,000 300,000
Collateralized promissory note
- machinery 143,494 174,247
Uncollateralized note - acquisition 150,107 253,830
- --------------------------------------------------------------------------------
1,301,408 1,576,772
Less current maturities (407,502) (681,690)
- --------------------------------------------------------------------------------
Total notes payable,
less current installments $ 893,906 $ 895,082
================================================================================
The revolving line of credit in place at December 31, 1998, provides for
borrowings up to $3,700,000 collateralized by accounts receivable and
inventories. Interest is payable monthly at a rate of prime
(7.75% as of December 31, 1998) plus 1.5%. Principal payments are made as cash
is received from customers for accounts receivable. Borrowings are based on
formulas involving balances of eligible accounts receivable and inventories.
The line of credit agreement expires in March 2001.
5. Reclassifications:
Certain reclassificationshave been made to the March 31, 1998 Financial
Statements to conform with the December 31, 1998 presentation.
9
<PAGE>
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
General:
The following discussion should be read in conjunction with the financial
statements and notes contained in this report.
Results of Operations:
Net Sales for the nine months ended December 31, 1998, decreased by
$766 thousand (6%) compared to the nine months ended December 31,1997.
For the three-month period ended December 31, 1998, net sales decreased
$787 thousand (19%) over the previous year.The decrease in net sales, all of
which occurred in the quarter just ended, reflects an expected decline in
revenue from Thomson Consumer Electronics ("TCE")as the Company's
relationship with TCE has changed from a supplier of products to a provider of
design, material and production sourcing and post-sale support services for
products made by third parties in Asia. Revenue from TCE is in the form of fee
income which is lower than product revenue although the positive margin impact
is expected to be greater.
Revenue from international sources increased 46% year-to-date compared to the
prior year as a result of growth in Latin American and European business.
Revenue from Asian customers was down as expected, reflecting the general
economic turndown in Asian markets. Although revenue from this area is expected
to remain lower than last year, revenue growth in Europe, Latin America and
other areas is expected to continue to grow.
Gross Profit on sales for the nine months ended December 31, 1998, decreased by
$446 thousand (10%) compared to the nine months ended December 31, 1997. Gross
profit as a percentage of sales was 34.4% in the current year compared to 35.9%
in the prior year.For the three months ended December 31,1998, gross profit
decreased by $361 thousand (23%). Gross profit as a percent of sales was 34.3%
in the current year compared to 36.5% in the prior year. These decreases are a
result of very low margins on product sales to two customers that are
phasing out certain products.These low margin product sales represent
"clearance " pricing to liquidate inventory. Sales to Hubbell,Inc. which
replaced previous electrical distribution revenues are also at lower margins
than business that these sales replaced. Such lower margins have been more than
offset by lower sales and marketing expenses.In addition, the Company increased
its allowance for obsolete inventory resulting from the discontinuance of
several products which were replaced by new products.
The Company expects that the change in its relationship with TCE, described
above, will enhance gross profit margins in future periods.
Operating Expenses for the nine months ended December 31, 1998 decreased by
$481 thousand (13%), compared to the nine months ended December 31, 1997.
For the three month period ended December 31, 1998 operating expenses decreased
$249 thousand (20%) compared to the three month period ended December 31, 1997.
Operating expenses changed in both periods as described below :
Sales and marketing expenses decreased by $428 thousand for the
nine months ended December 31, 1998 as compared to the same period
ended December 31, 1997. Reductions occurred in outside commissions,
promotion expenses and headcount expenses related to the Company's
shift from electrical distribution to a long-term distribution
agreement through Hubbell.
General and administrative expenses increased $42 thousand for the nine
months ended December 31, 1998 compared to the prior year due to
increases in occupancy expense related to the Company's new facility
and incentive compensation expenses.
10
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations. (continued)
Research and development expenses decreased $95 thousand for the nine
months ended December 31, 1998 compared to the same period in 1997.
In 1997, the Company spent significant amounts on re-certification of
its products at Underwriters' Laboratory (UL) to conform to new UL
standards. This requirement did not recur in the current year.
Net Earnings for the nine months ended December 31, 1998, improved by $37
thousand as compared to the nine months ended December 31, 1997, as a result of
the above described factors. Net earnings for the three month period ended
December 31, 1998 increased $8 thousand compared to the three month period ended
December 31, 1997, for the same reasons which contributed to the nine month
improvement.
Liquidity and Capital Resources:
Cash Flows From Operating Activities for the nine months ended December 31,1998
increased by $2.6 million compared to the nine months ended December 31, 1997.
In addition to net earnings and non-cash items for the quarter, the items that
influenced this increase most significantly are described below:
Receivables, net of bad debt reserve, decreased by $1.2 million.This
decrease is due primarily to greater focus on collections, the
elimination of receivables from EFI Electronics Europe, S.L. as a
result of acquiring that Company as of January 1, 1998, and the
reduction of receivables from TCE as this revenue source shifted from
product to fee income.
Accounts payable decreased by $661 thousand during the first nine
months of fiscal 1999. As the Company has returned to profitability,
management has focused on improving operating cash flow. As this has
occurred, the Company has used a part of this improvement to pay down
its obligations to suppliers. The Company has maintained adequate
relationships with its suppliers.
Provision for warranty expenses increased $110 thousand as a result of
reserve requirements related to TCE fee income, even though
payments on warranty claims have decreased from the prior year. This
increase is a reflection of the significant volume of units shipped by
TCE for which the Company has post sale support obligations,including
warranty claims and administration.
Provision for obsolete inventory has increased $71 thousand over the
prior year resulting from the discontinuance of several products during
the year that were replaced by new products.
Cash Flows used in Investing Activities decreased for the nine months ended
December 31, 1998 by $149 thousand compared to the nine months ended December
31, 1997, as a result of reductions in capital expenditures and elimination of
distributions from a joint venture that was acquired in January 1998.
11
<PAGE>
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations, continued
Cash Flows provided by Financing Activities decreased by $2.7 million for the
nine months ended December 31, 1998 compared to the nine months ended
December 31, 1997. In August 1997, the Company received $1.7 million as
proceeds from a one-time private sale of its common stock. In addition, the
Company has been able to pay down its revolving line of credit by $649 thousand
during this period as a result of significant improvement in operating cash
flows.
Based on expected future revenues, management believes that existing cash
balances, borrowings available under the Company's line of credit, and cash
generated from operations will be adequate to meet the Company's anticipated
cash requirements through the next twelve months. Management's expectations are
subject to risks and uncertainties that include, but are not limited to,
the Company's dependence on several key customers and its limited liquidity
and financial condition.
Factors Affecting Future Results:
The Company has addressed Year 2000 (Y2K) compliance issues. The Company's
current management information and control system is not Y2K compliant. However,
the Company is installing an information system that replaces its present system
which will comply with Y2K requirements.This system is estimated to cost the
Company $300,000 in fiscal year 1999 capital expenditures amortized over 3-7
years. In addition, internal resources are being diverted to this project for a
period of 7-8 months. Internal resources used for this project are comprised of
existing human resources that cause no incremental financial cost to the Company
as a result of this project. The Company's previous system was significantly out
of date and has had many deficiencies as a management tool. Implementation of
this new system is a required part of ongoing improvements to operations with
Y2K compliance being an important but incidental benefit.These costs are
not expected to have a material effect on the Company in any given
period.Implementation of this system was complete in January 1999.Approximately
$280,000 of the original estimate has been spent to complete the project.
During fiscal year 1998, the Company evaluated its computer and
telecommunications hardware for Y2K compliance and has upgraded all of its
systems to be compliant. In addition, the Company has taken steps to ensure
that its banking and lending relationships are with Y2K compliant financial
institutions. During fiscal 1999,the Company will work with its major customers
and suppliers to ensure that Y2K compliance issues will not interrupt the normal
activities supported by these relationships.
Management believes that the major risk of the Y2K phenomenon will result from
possible temporary disruption of transportation systems, failure of certain
government agencies to be adequately prepared and media-related social and
political disruptions. Since these factors are out of the direct control of
management, the Company will increase its inventory and cash levels during the
fourth calendar quarter of 1999 in order to have sufficient resources to
continue its business operations.
This Form 10-QSB contains forward-looking statements within the meaning of that
term in the Private Securities Litigation Reform Act of 1995 (Section 27A of
the Securities Act of 1933 and Section 21E of the Securities Exchange Act of
1934). These can be identified by the use of forward-looking terminology such as
"may", "will", "should", "expect", "anticipate", "estimate", or "continue," or
the negative thereof or other variations thereon or comparable terminology.
Additional written or oral forward-looking statements may be made by the Company
from time to time, in filings with the Securities and Exchange Commission or
otherwise.
These forward-looking statements are subject to risks and uncertainties that
include, but are not limited to the Company's limited liquidity and reliance
on certain customers that represent significant portions of the Company's total
revenue, as well as those identified in this report, described from time to
time in the Company's other Securities and Exchange Commission filings, or
discussed in the Company's press releases. Actual results may vary materially
from expectations. Readers are cautioned not to place undue reliance on any
forward-looking statements contained herein, which speak only as of the date
hereof. The Company undertakes no obligation to publicly release the result of
any revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unexpected events.
12
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
A) Exhibits.
Exhibit 27 - Financial Data Schedule
Reports on Form 8-K
None.
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.
EFI ELECTRONICS CORPORATION
(Registrant)
February 12, 1999
Richard D. Clasen
Chief Executive Officer, President and
Director (Principal Executive Officer)
February 12, 1999
David G. Bevan
Chief Financial Officer, Executive Vice
President & Secretary (Principal
Financial Officer)
13
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-mos
<FISCAL-YEAR-END> Mar-31-1999
<PERIOD-START> Apr-30-1998
<PERIOD-END> Dec-31-1998
<CASH> 14,207
<SECURITIES> 0
<RECEIVABLES> 2,760,235
<ALLOWANCES> 12,638
<INVENTORY> 3,321,901
<CURRENT-ASSETS> 6,233,036
<PP&E> 5,828,076
<DEPRECIATION> 3,303,868
<TOTAL-ASSETS> 9,473,520
<CURRENT-LIABILITIES> 4,908,463
<BONDS> 1,257,788
0
0
<COMMON> 557
<OTHER-SE> 3,306,712
<TOTAL-LIABILITY-AND-EQUITY> 9,473,520
<SALES> 11,313,164
<TOTAL-REVENUES> 11,313,164
<CGS> 7,421,738
<TOTAL-COSTS> 3,229,839
<OTHER-EXPENSES> 79,034
<LOSS-PROVISION> 38,273
<INTEREST-EXPENSE> 379,352
<INCOME-PRETAX> 203,201
<INCOME-TAX> 0
<INCOME-CONTINUING> 203,201
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 203,201
<EPS-PRIMARY> .04
<EPS-DILUTED> .04
</TABLE>
