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Previous: JOHNSTOWN CONSOLIDATED INCOME PARTNERS, 4, 1998-03-10 |
Next: BULL & BEAR SPECIAL EQUITIES FUND INC, N-30D, 1998-03-10 |
<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 Quarter Ended January 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACTO OF 1934
For the transition period from to
------------ ------------
Commission file number: 0-15486
MIKRON INSTRUMENT COMPANY, INC.
-------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
New Jersey 22-1895668
--------------------------------- -------------------
State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
16 Thornton Road, Oakland, New Jersey 07436
--------------------------------------------
(Address of Principal Executive Office) (Zip Code)
(201) 405-0900
--------------
(Registrant's telephone number including area code)
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
------- ------
The number of shares of registrant's Common Stock, $.003 par value, outstanding
as of January 31, 1998 was 3,654,200 shares.
<PAGE> 2
MIKRON INSTRUMENT COMPANY, INC.
INDEX
<TABLE>
<CAPTION>
Page Number
------------------
<S> <C>
PART I - FINANCIAL INFORMATION
Balance Sheet - January 31, 1998 1
Statement of Operations - Three months ended January 31, 1998 and 1997 2
Statement of Cash Flows - Three months ended January 31, 1998 and 1997 3
Notes to Financial Statements 4
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS 5
PART II - OTHER INFORMATION 6
SIGNATURES 7
</TABLE>
<PAGE> 3
MIKRON INSTRUMENT COMPANY, INC.
BALANCE SHEET
(Unaudited)
<TABLE>
<CAPTION>
January 31,
1998
-----------
<S> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 269,189
Trade accounts receivable, less allowance for
doubtful accounts of $83,000 1,330,243
Inventories 2,108,848
Prepaid expenses and other current assets 76,373
----------
TOTAL CURRENT ASSETS 3,784,653
PROPERTY AND EQUIPMENT, net 266,963
OTHER ASSETS 25,000
----------
$4,076,616
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
(Accounts payable and accrued liabilities $ 422,601
Current portion of capital lease obligation 3,782
----------
TOTAL CURRENT LIABILITIES 426,383
----------
CAPITAL LEASE OBLIGATION 9,907
----------
STOCKHOLDERS' EQUITY
Common stock, $.003 par value;
authorized - 15,000,000 shares; issued and outstanding
3,654,200 shares 12,181
Additional paid-in capital 3,151,831
Retained earnings 476,314
----------
TOTAL STOCKHOLDERS' EQUITY 3,640,326
----------
$4,076,616
==========
</TABLE>
See notes to financial statements
F-1
<PAGE> 4
MIKRON INSTRUMENT COMPANY, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
January 31,
-------------------------------
1998 1997
------------- -------------
<S> <C> <C>
REVENUES:
Net sales $ 2,175,727 $ 1,622,851
Royalties 41,668 31,338
---------- -----------
TOTAL REVENUES 2,217,395 1,654,189
---------- -----------
COSTS AND EXPENSES:
Cost of goods sold 1,009,534 833,458
Selling, general and administrative 821,613 799,895
Research and development 155,720 167,748
---------- -----------
TOTAL COSTS AND EXPENSES 1,986,867 1,801,101
---------- -----------
INCOME (LOSS) FROM OPERATIONS 230,529 (146,912)
---------- -----------
OTHER INCOME:
Investment and interest income 1,802 401
---------- -----------
NET INCOME (LOSS) $ 232,331 $ (146,511)
========== ===========
NET INCOME (LOSS) PER SHARE $ 0.06 $ (0.04)
========== ===========
WEIGHTED AVERAGE NUMBER OF SHARES 3,654,200 3,654,200
========== ===========
</TABLE>
See notes to financial statements
F-2
<PAGE> 5
MIKRON INSTRUMENT COMPANY, INC.
STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
January 31,
-----------------------------
1998 1997
------------ -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 232,331 $ (146,511)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation 5,063 14,112
Amortization 12,500 12,500
Changes in assets and liabilities:
(Increase) decrease in trade accounts receivable (419,409) 354,542
(Increase) decrease in inventories 149,599 114,209
(Increase) decrease in prepaid and other current assets 12,339 (32,082)
(Decrease) increase in accounts payable and accrued liabilities (270,343) (131,571)
-------- --------
(510,251) 331,710
-------- --------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (277,920) 185,199
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment - (14,925)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of short-term notes payable (100,000)
Decrease in long-term debt (886) (778)
-------- --------
NET CASH USED IN FINANCING ACTIVITIES (886) (100,778)
-------- --------
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (278,806) 69,496
-------- --------
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 547,995 206,364
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 269,189 $ 275,860
======== ========
</TABLE>
See notes to financial statements
F-3
<PAGE> 6
MIKRON INSTRUMENT COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 1998
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying financial statements reflect all adjustments
which, in the opinion of management, are necessary for a fair
presentation of the financial position and the results of operations
for the interim periods presented.
Certain financial information which is normally included in
financial statements prepared in accordance with generally accepted
accounting principles, but which is not required for interim reporting
purposes has been condensed or omitted. The accompanying financial
statements should be read in conjunction with the financial statements
and notes thereto as of October 31, 1997 contained in the Company's
Annual Report on Form 10-KSB.
2. EARNINGS (LOSS) PER SHARE
Per share information is computed based on the weighted
average number of common shares and dilutive common shares equivalents
outstanding during respective periods.
-4-
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following discussion and analysis provides information
which management believes is relevant to an assessment and
understanding of the Company's results of operations and financial
condition. This discussion should be read in conjunction with the
financial statements and notes thereto appearing elsewhere herein.
a. Results of Operations
Net sales for the quarter ended January 31, 1998 were
$2,176,000 as compared to net sales of $1,623,000 for the quarter
ended January 31, 1997. The cost of sales was 46% as compared to 51%
for the comparable 1997 period. The decrease in cost of sales as a
percentage of net sales for the three months ended January 31, 1998 is
due to the increased markups on their new product line.
Selling, general and administrative expenses for the three
months ended January 31, 1998 were $822,000 as compared to $800,000
for the same 1997 period. This was due to the increase in sales and
aggressive advertising.
As a result of the completion of the last research and
development project, expenses for the quarter ended January 31, 1998
were $156,000 as compared to $168,000 for the quarter ended January
31, 1997.
Other income for the three month period ended January 31, 1998
was $1,800 and was due to investment income. Royalty income for the
quarter ended January 31, 1998 was $41,700 as compared to $31,300 in
the comparable period ended January 31, 1997. This increase resulted
from ad additional royalty agreement in 1997.
b. Material Change in Financial Condition, Liquidity and Capital
Resources
The Company's working capital decreased from $3,419,000 at
October 31, 1997 to $3,358,000 at January 31, 1998.
At January 31, 1998, the Company's capital resources and its
sources of liquidity was $269,000 in cash and cash equivalents.
Management does not believe that a return of inflation will
have a material adverse effect on the Company's operations because it
believes that the Company will be able to increase its selling prices
to reflect most increases in its cost.
-5-
<PAGE> 8
PART II - OTHER INFORMATION
Item 1 - LEGAL PROCEEDINGS - NONE
Item 2 - CHANGE IN SECURITIES - NONE
Item 3 - DEFAULTS UPON SENIOR SECURITIES - NONE
Item 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS - NONE
Item 5 - OTHER INFORMATION - NONE
Item 6 - EXHIBITS AND REPORTS ON FORM 8-K
(a) None
(b) None
-6-
<PAGE> 9
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.
MIKRON INSTRUMENT COMPANY, INC.
------------------------------------------------
Keikhosrow Irani, President, as Registrant's,
duly authorized officer
------------------------------------------------
Alex Wu, Treasurer
-7-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AT JANUARY 31, 1998 AND THE STATEMENT OF OPERATIONS FOR THE PERIOD ENDED
JANUARY 31, 1998 AS INCLUDED IN THIS FORM 10 QSB FOR THE PERIOD ENDED JAN 31,
1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 4-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> NOV-01-1997
<PERIOD-END> JAN-31-1998
<CASH> 269,189
<SECURITIES> 0
<RECEIVABLES> 1,330,243
<ALLOWANCES> 0
<INVENTORY> 2,108,848
<CURRENT-ASSETS> 3,784,653
<PP&E> 226,963
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,076,616
<CURRENT-LIABILITIES> 426,383
<BONDS> 9,907
0
0
<COMMON> 12,181
<OTHER-SE> 3,628,145
<TOTAL-LIABILITY-AND-EQUITY> 4,076,616
<SALES> 2,175,727
<TOTAL-REVENUES> 2,217,395
<CGS> 1,009,534
<TOTAL-COSTS> 1,986,867
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 232,331
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 232,331
<EPS-PRIMARY> .06
<EPS-DILUTED> .06
</TABLE>
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