FORM 10QSB
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 December 31, 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
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Index
Page No.
Independent Accountants's Report 1
Financial Statements:
Condensed Balance Sheets 2
September 30, 1997 (audited) and
December 31, 1997 (audited)
Unaudited Condensed Statements of 4
Income Three Months Ended
December 31, 1996 and
December 31, 1997
Condensed Statement of Cash Flows 5
Three Months Ended December 31, 1996
and December 31, 1997
Notes to Condensed Financial 7
Statements
Management's Discussion and Analysis or Plan of 8
Operation.
Signatures 8
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INDEPENDENT ACCOUNTANTS' REPORT
Board of Directors
Platronics, Inc.
Linden, New Jersey
The accompanying condensed balance sheet of Platronics, Inc
as of December 31, 1997 and the related condensed statements of
income and cash flows for the three months ended
December 31, 1996 and 1997, included in the accompanying
Securities and Exchange Commission Form 10-Q for the period
ended December 31, 1997 were not audited by us, and,
accordingly, we do not express an opinion on them.
In accordance with generally accepted auditing standards,
the balance sheet as of September 30, 1997, and the related
statements of income, stockholders' equity and cash flows
for the year then ended (not presented herein) were audited
by other auditors whose report dated October 29, 1997
expressed an unqualified opinion on those financial
statements. In our opinion, the information set forth in
in the accompanying condensed balance sheet as of
September 30, 1997 is fairly stated in all material
respects in relation to the balance sheet from which is has
been derived.
Ferdinand, Ganek & Company, CPA, PA
Union, New Jersey
February 5, 1998
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PLATRONICS, INC.
CONDENSED BALANCE SHEETS
ASSETS
September 30 December 31,
1997 (Audited) 1997(Unaudited)
Current Assets:
Cash $ 45,297 $ 127,238
Accounts Receivable 623,167 495,709
Inventories 402,177 472,229
Prepaid Expenses 4,259 -
Total Current Assets 1,074,900 1,095,176
Property and Equipment-Net 96,052 88,711
Security Deposits 34,165 34,165
Total Assets $1,205,117 $1,218,052
See Accompanying Independent Accountants' Report
and Notes to Condensed Financial Statement
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PLATRONICS, INC.
CONDENSED BALANCE SHEETS
LIABILITIES & STOCKHOLDERS' EQUITY
September 30, December 31,
1997(Audited) 1997(Unaudited)
Current Liabilities:
Note Payable-Related
Party $350,000 $ 168,027
Accounts Payable 97,304 63,840
Deferred Rental Obligations-
Current Portion 5,834 10,000
Total Current Liabilities 453,138 241,867
Long-Term Liabilities
Note Payable-Related Party - 181,973
Deferred Rental Obligations-
Long-Term 49,998 43,332
Long Term Liabilities 49,998 225,305
Total Liabilities 503,136 467,172
Stockholders' Equity:
Common Stock 91,003 91,003
Additional Paid in Capital 6,156 6,156
Retained Earnings 604,822 653,721
Total Stockholders'
Equity 701,981 750,880
Total Liabilities and
Stockholders' Equity $1,205,117 $1,218,052
See Accompanying Independent Accountants' Report
and Notes to Condensed Financial Statements
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PLATRONICS, INC.
UNAUDITED CONDENSED STATEMENTS OF INCOME
Three Months Ended
December 31,
1996 1997
Net Sales $ 938,206 $1,011,291
Cost of Sales 844,265 876,015
Gross Profit 93,941 135,276
Operating Expenses:
Selling, General and
Administrative Expenses 122,978 86,727
Operating Income (Loss) (29,037) 48,549
Other Income (Expense):
Interest Expense (828) -
Miscellaneous Expense - 350
Total Other Income (Expense) (828) 350
Income (Loss) Before Provision
for Taxes on Income (29,865) 48,899
Provision for Taxes on Income - -
Net Income (Loss) $ (29,865) $ 48,899
Earnings (Loss) Per Share $ (0.03) $ 0.05
Weighted Average Number of
Shares of Common Shares
Outstanding 910,031 910,031
See Accompanying Independent Accountants' Report
and Notes to Condensed Financial Statements
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PLATRONICS, INC.
CONDENSED STATEMENT OF CASH FLOWS
Three Months Ended
December 31,
1996 1997
Operating Activities:
Net Income (Loss) $(29,865) $ 48,899
Adjustments to Reconcile Net
Income (Loss) to Net Cash
Provided by (Used in)
Operating Activities
Depreciation & Amortization 11,252 7,341
Changes in Assets and
Liabilities:
Accounts Receivable (11,077) 127,458
Inventories 38,135 (70,052)
Prepaid Expenses (6,093) 4,259
Security Deposits 8,044 -
Deferred Rental
Obligations - (2,500)
Accounts Payable, Accrued
Expenses and Taxes (22,917) (33,464)
Total Adjustments 17,344 33,042
Net Cash Provided By
(Used in)Operating
Activities (12,521) 81,941
Investing Activities - -
Financing Activities:
(Decrease) in Long Term Debt (3,872) -
Net Cash Used in Financing
Activities (3,872) -
(continued)
See Accompanying Independent Accountants' Report
and Notes to Condensed Financial Statements
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PLATRONICS, INC.
CONDENSED STATEMENT OF CASH FLOWS
(continued)
Three Months Ended
December 31,
1996 1997
Net Increase (Decrease) in
Cash and Cash Equivalents (16,393) 81,941
Cash and Cash Equivalents -
Beginning of Period 80,100 45,297
Cash and Cash Equivalents -
End of Period $ 63,707 $127,238
Cash Paid During the Period For:
Interest $ 828 $ -
Income Taxes - -
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.
See Accompanying Independent Accountants' Report
and Notes to Condensed Financial Statements
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PLATRONICS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENT
1. Presentation of Interim Information
In the opinion of the management of Platronics, Inc.
the accompanying condensed financial statements include
all normal adjustments considered necessary to present
fairly the financial position as of December 31, 19977
and the results of operations and cash flows for the
three months ended December 31, 1996 and 1997. Interim
results are not necessarily indicative of results for
a full year.
The condensed financial statements and notes are
presented as permitted by Form 10-Q and do not contain
certain information included in the company's audited
financial statements and notes for the fiscal year
ended September 30, 1997.
2. Inventories
Inventories are summarized as follows:
September 30, December 31,
1997 1997
Raw Materials $392,177 $467,229
Finished Goods 10,000 5,000
$402,177 $472,229
3. Note Payable - Related Party
Note payable represents an unsecured loan from a
shareholder owning a majority of the outstanding stock.
The note as of December 31, 1997 is a two-year note
payable monthly including interest at 8%. The note
matures December 31, 1999.
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Item 2. Management's Discussion and Analysis or Plan of
Operation.
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 income from operations before provision for
income taxes for the first quarter of fiscal 1998 was $48,899, as
compared to loss of $29,865 in the first quarter of fiscal 1997.
Net sales increased from $938,206 during the first quarter of
fiscal 1997 to $1,011,291 during the first quarter of fiscal 1998.
The Company's profit for the first quarter of fiscal 1998 as
compared to the first quarter of fiscal 1997 was due to an increase
in sales as a result of a stronger and more aggressive sales effort
accompanied by a reduction in factory overhead and general and
administrative costs.
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 February 17, 1998
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