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 quarterly period ended April 30, 1998
OR
[ ] 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: 0-14961B
LUXTEC CORPORATION
(Exact name of registrant as specified in its charter)
Massachusetts 04-2741310
(State or other jurisdiction of (I.R.S.Employer
incorporation or organization) Identification No.)
326 Clark Street, Worcester, Massachusetts 01606
(Address of principal executive offices) (Zip code)
(Registrant's telephone number, including area code)
(508) 856-9454
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 _____
Indicate the number of shares outstanding for each of the issuer's classes of
Common Stock, as of the latest practicable date.
The number of shares outstanding of registrant's common stock, par value $.01
per share, at June 9, 1998, was 2,858,998.
<PAGE>
LUXTEC CORPORATION
TABLE OF CONTENTS
Page No.
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Balance Sheets -
April 30, 1998 and October 31, 1997 3
Consolidated Condensed Statements of Operations -
Six months ended April 30, 1998 and April 30, 1997 4
Consolidated Condensed Statements of Cash Flows -
Six months ended April 30, 1998 and April 30, 1997 5
Notes to Consolidated Condensed Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 8
Part II. OTHER INFORMATION
Item 1. Legal Proceedings 10
Item 4. Submission of matters to a vote of security holders 10
Item 5. Other Information 10
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
<PAGE>
LUXTEC CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
April 30, October 31,
1998 1997
Unaudited
ASSETS
CURRENT ASSETS:
<S> <C> <C>
Cash $ - $ 41,712
Accounts receivable 2,142,143 2,319,945
Inventories 2,973,033 2,527,309
Prepaid expenses and other current assets 49,292 71,191
- ---------------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 5,164,468 4,960,157
- ---------------------------------------------------------------------------------------------------
PROPERTY & EQUIPMENT AT COST 2,518,394 2,476,691
ACCUMULATED DEPRECIATION (1,978,368) (1,890,093)
- ---------------------------------------------------------------------------------------------------
PROPERTY & EQUIPMENT - NET 540,026 586,598
- ---------------------------------------------------------------------------------------------------
OTHER ASSETS 261,087 255,819
- ---------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 5,965,581 $ 5,802,574
===================================================================================================
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Revolving line of credit $ 2,209,267 $ 2,082,854
Current portion of equipment facility loan 65,186 65,186
Accounts payable 866,925 938,733
Accrued expenses 560,302 478,931
- ---------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES $ 3,701,680 $ 3,565,704
- ---------------------------------------------------------------------------------------------------
Equipment Loan, Net of Current Portion 121,379 200,992
Term Loan 500,000 460,250
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
TOTAL LONG TERM LIABILITIES $ 621,379 $ 661,242
- ---------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
SERIES A, PREFERRED STOCK, $1.00 PAR
VALUE, Authorized 500,000 shares
Issued and outstanding - 10,000 shares
preference in liquidation of $1,165,137 in 1998
and $1,119,768 in 1997) $ 1,165,137 $ 1,119,768
- ---------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Common stock - $.01 par value -
Authorized - 10,000,000 shares
Issued and outstanding 2,858,998 shares
in 1998 and 2,853,491 in 1997 28,590 28,535
Additional paid-in capital 8,279,407 8,318,685
Accumulated deficit (7,830,612) (7,891,360)
- ---------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 477,385 455,860
- ---------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 5,965,581 $ 5,802,574
===================================================================================================
See Notes to Consolidated Condensed Financial Statements.
</TABLE>
<PAGE>
LUXTEC CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Unaudited
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
April 30 April 30 April 30 April 30
1998 1997 1998 1997
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET SALES $ 2,893,960 $ 2,363,673 $ 5,601,485 $ 4,881,037
COST OF SALES 1,598,455 1,417,275 3,217,733 2,839,623
- -----------------------------------------------------------------------------------------------------------------
GROSS PROFIT 1,295,505 946,398 2,383,752 2,041,414
- -----------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Selling 535,852 629,971 1,070,630 1,245,713
Research and development 132,781 123,323 237,632 231,452
General and administrative 504,059 378,105 881,793 751,210
- -----------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 1,172,692 1,131,399 2,190,055 2,228,375
- -----------------------------------------------------------------------------------------------------------------
INCOME/(LOSS)
FROM OPERATIONS 122,813 (185,001) 193,697 (186,961)
OTHER EXPENSES, NET (70,657) (44,349) (132,948) (86,780)
- -----------------------------------------------------------------------------------------------------------------
NET INCOME/(LOSS) 52,156 (229,350) 60,748 (273,741)
PREFERRED STOCK DIVIDENDS 22,534 16,438 45,369 32,350
- -----------------------------------------------------------------------------------------------------------------
NET INCOME/(LOSS) APPLICABLE TO COMMON
STOCKHOLDERS
$ 29,622 $ (245,788) $ 15,379 $ (306,091)
=================================================================================================================
==================================================================================================================
BASIC NET INCOME/(LOSS) PER SHARE $ 0.01 $ (0.09) $ 0.01 $ (0.11)
==================================================================================================================
DILUTED NET INCOME/(LOSS) PER SHARE $ 0.01 $ (0.09) $ 0.01 $ (0.11)
==================================================================================================================
==================================================================================================================
BASIC WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 2,858,998 2,847,980 2,858,998 2,849,657
===================================================================================================================
DILUTED WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 2,915,914 2,847,980 2,900,786 2,849,657
===================================================================================================================
See Notes to Consolidated Condensed Financial Statements.
</TABLE>
<PAGE>
LUXTEC CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Unaudited
<TABLE>
<CAPTION>
SIX MONTHS ENDED
April 30, April 30,
1998 1997
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NET INCOME/(LOSS) $ 60,748 (273,741)
ADJUSTMENTS TO RECONCILE NET INCOME/(LOSS) TO NET
CASH USED IN OPERATING ACTIVITIES:
Depreciation and amortization 102,633 153,862
Provision for uncollectible accounts receivable 12,000 6,000
Changes in current assets and liabilities:
Accounts receivable 165,802 (65,590)
Inventories (445,724) (443,010)
Prepaid expenses and other current assets 21,899 35,063
Accounts payable (71,808) 289,483
Accrued expenses 81,371 (19,095)
- --------------------------------------------------------------------------------------------------------------
NET CASH USED IN OPERATING ACTIVITIES (133,827) (43,287)
- --------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (41,703) (70,955)
Change in other assets (19,626) (26,220)
- --------------------------------------------------------------------------------------------------------------
NET CASH USED IN INVESTING ACTIVITIES (61,329) (97,175)
- --------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings on revolving line of credit 126,413 (322,767)
Net borrowings/(repayment) of long term debt (39,863) 570,138
Net borrowings on subordinated debt - (1,000,000)
Proceeds from conversion to preferred stock - 1,000,000
Employee stock purchase plan 6,146 17,901
- --------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 92,696 265,272
- --------------------------------------------------------------------------------------------------------------
NET INCREASE/(DECREASE) IN CASH (41,712) (148,931)
CASH, BEGINNING OF PERIOD 41,712 172,356
--------------- --------------
CASH, END OF PERIOD $ - 23,425
==============================================================================================================
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING
ACTIVITIES:
UNPAID DIVIDENDS ON SERIES A PREFERRED STOCK $ 45,369 $ 38,033
=============================================================================================================
See Notes to Consolidated Condensed Financial Statements.
</TABLE>
<PAGE>
LUXTEC CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
Unaudited
1) Basis of Presentation of Consolidated Financial Statements
The accompanying consolidated condensed financial statements have been
prepared in conformity with generally accepted accounting principles for interim
financial information. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments necessary
for a fair presentation have been made which comprise only normal recurring
adjustments. Operating results for the six months ended April 30, 1998, are not
necessarily indicative of the results that may be expected for the entire year.
2) Inventories
Inventories are stated at the lower of cost or market. Cost is determined
using the first in, first out (FIFO) method and includes materials, labor and
manufacturing overhead. Inventories are as follows:
<TABLE>
<CAPTION>
April 30, 1998 October 31, 1997
----------------------------------------------------------------------------------------------
<S> <C> <C>
Raw material $ 1,765,351 $ 1,357,761
Work in process 264,180 318,312
Finished goods 943,502 851,236
------------------------------------------------------------------------------------------------
Total $ 2,973,033 $ 2,527,309
------------------------------------------------------------------------------------------------
</TABLE>
3) Loans from banks
The Company has a $2,250,000 revolving line-of-credit agreement with a bank.
Borrowings bear interest at the bank's prime rate (8.5% at April 30, 1998) plus
.5%. Unused portions of the revolving line of credit accrue a fee at an annual
rate of .25%. Borrowings are secured by substantially all assets of the Company.
The agreement contains covenants, including the maintenance of certain financial
ratios, as defined. The Company obtained a waiver of compliance from the bank
for the quarter ended April 30, 1998. At April 30, availability under the line
of credit was approximately $41,000. The line of credit expires on March 31,
1999.
The Company has a $500,000 equipment facility agreement with a bank. Borrowings
are based on the purchase price of new equipment and conditions determined by
the bank. Borrowings bear interest at the bank's base rate (8.5% at April 30,
1998) plus .5%. Borrowings under this facility are secured by substantially all
assets of the Company. The equipment facility agreement expired on October 21,
1997. At April 30, 1998, the Company had outstanding borrowings of $186,565
under this agreement. The agreement contains covenants, including the
maintenance of certain financial ratios, as defined therein. The Company was in
compliance with all covenants or had obtained a waiver from the bank for the
quarter ended April 30, 1998.
On April 3, 1997, the Company entered into a $500,000 term note agreement with a
bank. The term note bears interest at prime (8.5% at October 31, 1997) plus
1.0%. Principal payments are payable in consecutive annual installments
beginning on October 31, 1998 and continuing thereafter on October 31 of each
succeeding year in an amount equal to the lesser of (a) $200,000 or (b) the
greater of (i) zero and (ii) excess cash flow as defined. At October 31, 1997,
the Company had outstanding borrowings of $500,000 under this agreement. The
agreement contains covenants, including the maintenance of certain financial
ratios, as defined. The Company was in compliance with all covenants or had
obtained a waiver from the bank for the quarter ended April 30, 1998.
<PAGE>
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
4) Earnings per share
In March 1997, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards (SFAS) No. 128, Earnings per Share. This
statement established standards for computing and presenting earnings per share
and applies to entities with publicly traded common stock or potential common
stock. This statement is effective for fiscal years ending after December 15,
1997.
Basic earnings/(loss) per share was determined by dividing net income by the
weighted average common shares outstanding during the period. Diluted earnings
per share was determined by dividing net income by diluted weighted average
shares outstanding. Diluted weighted average shares reflect the dilutive effect,
if any, of common equivalent shares. Common equivalent shares include common
stock options to the extent their effect is dilutive, based on the treasury
stock method. The calculation of diluted earnings per share excludes options to
purchase 332,550 shares of common stock and 888,171 warrants, as the effects are
antidilutive. Dilutive loss per share is the same as basic loss per share as
there were no dilutive shares.
<TABLE>
<CAPTION>
- --------------------------------------------------- --------------------------------- -----------------------------
THREE MONTHS ENDED SIX MONTHS ENDED
- --------------------------------------------------- --------------------------------- -----------------------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
<S> <C> <C> <C> <C>
April 30 April 30 April 30 April 30
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
1998 1997 1998 1997
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
Basic weighted average shares outstanding 2,858,998 2,847,980 2,858,998 2,849,657
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
Weighted average common equivalent shares 56,916 - 41,788 -
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
Diluted weighted average shares outstanding 2,915,914 2,847,980 2,900,786 2,849,657
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
</TABLE>
5) Recent Accounting Pronouncements
In June 1997, the FASB issued SFAS No. 130 Reporting Comprehensive Income
and SFAS No. 131, Disclosures About Segments of an Enterprise and Related
Information. Both SFAS No. 130 and SFAS No. 131 are effective for fiscal years
beginning after December 15, 1997. The Company believes that the adoption of
these new accounting standards will not have a material impact on the Company's
financial statements.
<PAGE>
LUXTEC CORPORATION
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Actual results could differ materially from those
projected in the forward-looking statements as a result of the risk factors set
forth below. The industry in which the Company competes is characterized by
rapid changes in technology and frequent new product introductions. The Company
believes that its long-term growth depends largely on its ability to continue to
enhance existing products and to introduce new products and features that meet
the continually changing requirements of customers. While the Company has
invested heavily in new products and processes, there can be no assurance that
it can continue to introduce new products and features on a timely basis or that
certain of its products and processes will not be rendered noncompetitive or
obsolete by its competitors.
RESULTS OF OPERATIONS
Net revenues for the three months ended April 30, 1998 were $2,893,960 or
22.4% greater than the $2,363,673 reported for the same period in fiscal 1997.
For the six months ended April 30, 1998 net revenues increased 14.8% to
$5,601,485 from $4,881,037 reported for the same period last year. The year to
date sales increase of 14.8% was primarily the result of higher sales in
domestic Luxtec surgical lighting products.
Cost of sales for the three months ended April 30, 1998 were $1,598,455 or
55.2% of net revenues, compared with $1,417,275 or 60.0% for the same period in
fiscal 1997. For the six month period ended April 30, 1998, cost of sales was
$3,217,733 or 57.4% of net revenues compared with $2,839,623 or 58.2% for the
same period in fiscal 1997. The reduction in cost of sales as a percentage of
net revenues was primarily a result of lowered product costs partially offset by
a lower royalty payment received during the first two quarters.
Gross profit was $1,295,505 or 44.8% of net revenues for the quarter ended
April 30, 1998 compared to $946,398 or 40.0% for the same period in fiscal 1997.
For the six month period ended April 30, 1998 gross profit was $2,383,752 or
42.6% compared with $2,041,414 or 41.8% for the same period in fiscal 1997. The
increased margin percentage was primarily due to lowered product costs and
favorable product mix.
Selling and marketing expenses were $535,852 for the three months ended
April 30, 1998 compared to $629,971 for the same period in fiscal 1997, a
decrease of 14.9%. For the six month period ended April 30, 1998 selling and
marketing expenses were $1,070,630 compared with $1,245,713 for the same period
in fiscal 1997, a decrease of 14.1%. Marketing cost reduction efforts resulted
in lower trade show and other costs during fiscal 1998.
Research and development expenditures were $132,781 for the three months
ended April 30, 1998 compared to $123,323 for the same period in fiscal 1997, an
increase of 7.7%. For the six month period ended April 30, 1998 research and
development expenditures were $237,632 compared with $231,452 for the same
period in fiscal 1997, an increase of 2.7%. The increase for the first half of
fiscal 1998 is the result of a continuing effort to improve existing products
and introduce new products.
General and administrative expenses were $504,059 for the three months
ended April 30, 1998, compared to $378,105 for the same period in fiscal 1997,
representing an increase of 33.3%. For the six months ended April 30, 1998
general and administrative expenses totaled $881,793 compared to $751,210 during
the same period in fiscal 1997, an increase of 17.4%. The increase is primarily
a result of an increase in reserves in fiscal 1998 as compared to fiscal 1997.
<PAGE>
LUXTEC CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
ITEM 2. (Continued)
Interest and other expenses of $70,657 for the three months ended April
30, 1998 compared to $44,349 for the same period in fiscal 1997, an increase of
59.3%. For the six months ended April 30, 1998 interest and other expenses were
$132,948 compared to $86,780 for the same period in fiscal 1997, an increase of
53.2%. The increases were due to higher average credit lines and higher interest
rates in fiscal 1998 compared to fiscal 1997.
LIQUIDITY AND CAPITAL RESOURCES
At April 30, 1998, the Company had working capital of approximately
$1,462,800 compared to working capital of approximately $1,394,500 at October
31, 1997. Cash used in operating activities was primarily funded by the
revolving line of credit. At April 30, 1998, the Company had used approximately
$2,209,000 of a $2,250,000 revolving line of credit, and had borrowed $500,000
under a term loan agreement and $186,565 under an equipment facility loan
agreement.
The Corporation anticipates that its current cash requirements will be
satisfied by cash flow from existing operations and the continuation of its
revolving credit arrangement with a bank, although the Company is considering
raising additional capital in the near future.
<PAGE>
LUXTEC CORPORATION
PART II. OTHER INFORMATION
ITEM 1. Legal proceedings
None.
ITEM 4. Submission of Matters to a Vote of Security Holders
The following matters were submitted to a vote of security holders whether
through solicitation of proxies or otherwise, during the second quarter of the
Corporation's fiscal year ended October 31, 1998.
(a) The Annual Meeting of Stockholders was held on April 23, 1998.
(b) Two Class II directors of the Corporation were elected:
<TABLE>
<CAPTION>
---------------------- ---------------------------- -----------------------------------
FOR WITHHELD
---------------------- ---------------------------- -----------------------------------
---------------------- ---------------------------- -----------------------------------
<S> <C> <C>
Paul Epstein 1,984,966 65,623
---------------------- ---------------------------- -----------------------------------
---------------------- ---------------------------- -----------------------------------
James W. Hobbs 1,984,866 65,723
---------------------- ---------------------------- -----------------------------------
</TABLE>
The Board of Directors is composed of Mr. Epstein, and Mr. Hobbs as well as
Mr. James Berardo, Mr. James J. Goodman, Mr. Patrick G. Phillipps, Dr. Thomas
VanderSalm and Mr. Louis C. Wallace.
(c) No other matters were voted upon at the meeting.
ITEM 5. Other Information
When used in this Form 10-Q, in future filings by the Company with the
Securities and Exchange Commission, or in the Company's press releases or in
oral statements made with the approval of an authorized executive officer, the
words or phrases "will likely result", "are expected to", "will continue", "is
anticipated", "estimate", "project", or similar expressions are intended to
identify "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are subject to certain
risks and uncertainties, including those discussed under the caption "Risk
Factors and Cautionary Statements" below, that could cause actual results to
differ materially from historical earnings and those presently anticipated or
projected. The Company wishes to caution readers not to place undue reliance on
any such forward-looking statements, which speak only as of the date made. The
Company wishes to advise readers that the factors listed below could cause the
Company's actual results for future periods to differ materially from any
opinions or statements expressed with respect to future periods in any current
statements.
The Company will NOT undertake and specifically declines any obligation to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or unanticipated
events.
Risk Factors and Cautionary Statements
The Company's revenues and income are derived primarily from the
sale of medical devices. The medical device industry is highly competitive. Such
competition could negatively impact the Company's market share and therefore
reduce the Company's revenues and income.
<PAGE>
LUXTEC CORPORATION
PART II. OTHER INFORMATION
ITEM 5. (Continued)
Another result of competition could be the reduction of average unit
prices paid for the Company's products. This could have the impact of reducing
the percentage of profit margin available to the Company for its product sales.
The Company's future operating results are dependent on its ability
to develop, produce and market new and innovative products and services. There
are numerous risks inherent in this complex process, including rapid
technological change and the requirement that the Company bring to market in a
timely fashion new products and services that meet customers' needs.
Historically, the Company's operating results have varied from
fiscal period to fiscal period; accordingly, the Company's financial results in
any particular fiscal period are not necessarily indicative of results for
future periods.
The Company offers a broad variety of products and services to
customers around the world. Changes in the mix of products and services
comprising revenues could cause actual operating results to vary from those
expected.
The Company's success is partly dependent on its ability to
successfully predict and adjust production capacity to meet demand, which is
partly dependent upon the ability of external suppliers to deliver components at
reasonable prices and in a timely manner; capacity or supply constraints, as
well as purchase commitments, could adversely affect future operating results.
The Company operates in a highly competitive environment and in a
highly competitive industry, which includes significant competitive pricing
pressures and intense competition for skilled employees.
The Company offers its products and services directly and through
indirect distribution channels. Changes in the financial condition of, or the
Company's relationship with, distributors and other indirect channel partners,
could cause actual operating results to vary from those expected.
The Company does business worldwide in over 50 countries. Global
and/or regional economic factors and potential changes in laws and regulations
affecting the Company's business, including, without limitation, currency
exchange rate fluctuations, changes in monetary policy and tariffs, and federal,
state and international laws regulating the environment, could have a material
adverse impact on the Company's financial condition or future results of
operations.
The market price of the Company's securities could be subject to
fluctuations in response to quarter - to -quarter variations in operating
results, market conditions in the medical device industry, as well as general
economic conditions and other factors external to the Company.
<PAGE>
LUXTEC CORPORATION
PART II. OTHER INFORMATION
ITEM 6. Exhibits and reports on Form 8-K
(a) Exhibits
Exhibit Description Designation
27 Financial Data Schedule 27
(b) Reports on Form 8-K
No reports on Form 8-K were required to be filed during the
quarter ended April 30, 1998.
<PAGE>
LUXTEC CORPORATION
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.
LUXTEC CORPORATION
(Registrant)
----------------- --------------------------
Date Samuel M. Stein
Chief Financial Officer
(Principal Accounting Officer
and Duly Authorized Executive
Officer)
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-START> FEB-01-1998
<PERIOD-END> APR-30-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 2,142
<ALLOWANCES> 194
<INVENTORY> 2,973
<CURRENT-ASSETS> 5,164
<PP&E> 2,518
<DEPRECIATION> 1,978
<TOTAL-ASSETS> 5,966
<CURRENT-LIABILITIES> 3,702
<BONDS> 0
0
1,165
<COMMON> 29
<OTHER-SE> 449
<TOTAL-LIABILITY-AND-EQUITY> 5,966
<SALES> 2,894
<TOTAL-REVENUES> 2,894
<CGS> 1,598
<TOTAL-COSTS> 1,173
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 71
<INCOME-PRETAX> 29
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 29
<EPS-PRIMARY> 0.01
<EPS-DILUTED> 0.01
</TABLE>
