FORM 10Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
Commission File Number 0-3425
PLATRONICS, INC.
(Exact name of registrant as specified in its charter)
New Jersey 22-1440857
(State or other (IRS Employer
jurisdiction of Identification
incorporation) No.)
301 Commerce Road, Linden, New Jersey 07036
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 908-862-3600
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 1924 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 ______ No X
Indicate by check mark whether the registrant has filed all
documents and reports required to filed by Sections 12, 13 or 15(d)
of the Securities Act of 1934 subsequent to the distribution of
securities under a plan confirmed by the court.
Yes______ No X
Indicate the number of shares outstanding of each of issuer's
classes of common stock, as of the latest practicable date:
910,140 Common Shares Outstanding
Index
Page No.
Financial Statements:
Condensed Balance Sheets 1
June 30, 1997 (unaudited) and
September 30, 1997 (unaudited)
Unaudited Statements of Operation 3
Three Months and Nine Months
Ended June 30, 1997 and
June 30, 1996
Statement of Cash Flows 4
Nine Months Ended June 30, 1997 and
June 30, 1996
Notes to Condensed Financial 6
Statements
Management's Discussion and Analysis of the 7
Financial Condition and Results of Operations
Signatures 7
<PAGE>
PLATRONICS INC.
Condensed Balance Sheets
Assets
June 30, 1997 September 30, 1996
(unaudited) (unaudited)
Current Assets:
Cash $ 84,160 $ 80,100
Accounts Receivable-Net 397,181 423,297
Inventories 324,422 468,807
Prepaid Expenses 25,712 7,532
Total Current Assets 831,475 979,736
Property and Equipment-Net 104,280 138,035
Security Deposits 34,121 34,165
and Exchanges
TOTAL ASSETS $ 969,876 $1,151,936
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes Payable-Current $ 17,858 $ 20,335
Portion
Accounts Payable 37,945 71,013
Payroll and Sales Tax 33,066 38,940
Payable
Accrued Expenses 5,000 13,512
TOTAL CURRENT 93,869 143,800
LIABILITIES
Long-Term Liabilities:
Payroll Taxes Payable 28,056 29,426
Notes Payable-Less Current -0- 11,371
Portion
Accounts Payable-Less 30,520 20,241
Current Portion
Long-Term Liabilities 58,576 61,038
Total Liabilities 152,445 204,838
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Stockholders' Equity:
Common Stock 91,003 91,003
Additional Paid in Capital 6,156 6,156
Retained Earnings 720,272 849,939
Total Stockholders' 817,431 947,098
Equity
Total Liabilities and
Stockholders' Equity $ 969,876 $1,151,936
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See Accompanying Notes to Condensed Financial Statement
PLATRONICS INC.
Unaudited Statements of Operation
Three Months Ended Nine Months Ended
June 30 June 30
1997 1996 1997 1996
Net Sales $ 930,930 $1,049,608 $2,851,494 $3,293,446
Costs and Expenses
Cost of Sales 880,755 837,263 2,571,850 2,662,205
Selling, General 142,568 147,454 406,290 428,777
and Administrat-
ive Expenses
Interest Expense _________ __________ _________ __________
1,262 1,192 3,021 4,319
1,024,585 985,909 2,981,161 3,095,301
Profit (Loss) (93,655) 63,699 (129,667) 198,145
Before Provision
for Income Taxes
Provision for Taxes -0- -0- - 0- -0-
on Income
Net Profit (Loss) (93,655) 63,699 (129,667) 198,145
Weighted Average 910,031 910,031 910,031 910,031
Number of Shares
of Common Shares
Outstanding
Earning Per Common $(0.10) $0.07 $(0.14) $0.22
Shares
Cash Dividends Per None None None None
Common Shares
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See Accompanying Notes to Condensed Financial Statements
PLATRONICS INC.
Statement of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
Nine Months Ended June 30
1997 1996
Cash Flows From Operating $ (129,667) $ 198,145
Activities
Adjustments to Reconcile Net
(Loss) Income to Net Cash
Provided by Operating
Activities
Depreciation and Amortization 31,278 42,511
(Increase) Decrease in Accounts 26,116 849
Receivable
(Increase) Decrease Inventories 144,385 (9,135)
(Increase) Decrease in Prepaid (18,180) (4,200)
Expenses
(Increase) Decrease in Security 44 1,105
Deposits and Exchanges
Increase (Decrease) in Accounts (47,454) (18,789)
Payable, Accrued Expenses and
Taxes
Total Adjustments 136,189 12,341
Net Cash Provided by
Operating Activities 6,522 210,486
Cash Flows From Investing
Activities
Capital Expenditures -0- (9,912)
Net Cash Provided by Investing -0- (9,912)
Activities
Cash Flows From Financing
Activities
(Decrease) in Long-Term Debt (2,462) (14,365)
Net Cash Used For Financing (2,462) (14,365)
Activities
Net Increase in Cash and 4,060 186,209
Equivalents
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Cash-Beginning of Period 80,100 58,033
Cash-End of Period $ 84,160 $ 244,242
Cash Paid During the Period For:
Interest $ 3,021 $ 4,319
Income Taxes -0- -0-
For the purposes of the statement of cash flows, the company
considered all highly liquid debt instruments with a maturity of
three months or less to be cash equivalents.
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See Accompanying Notes to Condensed Financial Statements
PLATRONICS INC.
Notes to Condensed Financial Statements
1. In the opinion of management, the accompanying statements
contain all adjustments necessary to present fairly
Platronics, Inc.'s financial position as of June 30, 1997 and
September 30, 1996 and the results of its operation for the
nine months ended June 30, 1997, and its cash flow for the
nine months then ended.
2. The results of operation for the nine months ended June 30,
1997 and 1996 are not necessarily indicative of the results to
be expected for the full year.
3. Inventories consisted of the following:
June 30, 1997 September 30, 1996
Raw Materials $ 314,422 $ 458,807
Finished Goods 10,000 10,000
$ 324,422 $ 468,807
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Item 2. Management's Discussion and Analysis of the Financial
Condition and Results of Operations.
The following is management's discussion and analysis of
certain significant factors which have affected the Company's
condensed statement of operation.
The Company's loss from operations before provision for income
taxes for the third quarter of fiscal 1997 was $93,655, as compared
to pre-tax income of $63,699 in the third quarter of fiscal 1996.
Similarly, net sales declined from $1,049,608 during the third
quarter of fiscal 1996 to $930,930 during the third quarter of
fiscal 1997.
The Company's loss was primarily attributable to a decrease in
sales volume and the decrease in sales volume was primarily
attributable to a decline in orders from the Company's principal
customer.
Price levels of precious metals decreased during the third
quarter of fiscal 1997 which had a negative impact on the Company's
results of operations because of the Company's need to maintain
sizable inventories of gold which declined in value while being
held by the Company in inventory.
Historically, the Company's liquidity has derived from its
accounts receivable. The collectability of those receivables has
remained consistent.
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 hereunto duly authorized.
PLATRONICS, INC.
By /s/_________________________
Ronald Knigge, Chairman,
President & Chief Executive
Officer
By /s/________________________
Mary Lou Palumbo,
Principal Accounting Officer
Date August 15, 1997
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