LUXTEC CORPORATION
326 CLARK STREET
WORCESTER, MA 01606
SEPTEMBER 14, 1999
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
GENTLEMEN:
Pursuant to the requirements of the Securities Exchange Act of 1934, we are
transmitting herewith the attached Form 10-Q.
Sincerely,
LUXTEC CORPORATION
Samuel M. Stein
Samuel M. Stein, Chief Financial Officer
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 July 31, 1999
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 September 8, 1999, was 2,875,906.
LUXTEC CORPORATION
TABLE OF CONTENTS
Page No.
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Balance Sheets -
July 31, 1999 and October 31, 1998 3
Consolidated Condensed Statements of Operations -
Nine and three months ended July 31, 1999 and July 31, 1998 4
Consolidated Condensed Statements of Cash Flows -
Nine months ended July 31, 1999 and July 31, 1998 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 5. Other Information 10
Item 6. Exhibits and Reports on Form 8-K 12
Signatures 13
<TABLE>
LUXTEC CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
<S> <C> <C>
Assets July 31, October 31,
1999 1998
Current Assets:
Cash $ 55,932 $ 43,698
Accounts receivable 1,957,955 2,571,230
Inventories 2,981,935 2,549,244
Prepaid expenses and other current assets 132,153 55,068
Total current assets 5,127,975 5,219,240
Property and Equipment, at cost 2,691,515 2,570,501
Accumulated Depreciation and Amortization (2,175,039) (2,075,345)
Property and equipment, net 516,476 495,156
Other Assets, net of accumulated amortization 211,824 244,754
Total assets $ 5,856,275 $ 5,959,150
Liabilities and Stockholders' Equity
Current Liabilities:
Revolving line of credit $ 2,215,404 $ 2,186,052
Current portion of equipment facility loan 88,726 88,726
Accounts payable and accrued expenses 1,402,323 1,209,725
Total current liabilities 3,706,453 3,484,503
Term Note 456,000 469,250
Equipment Facility Loan, net of current portion 109,982 88,726
Minority Interest 51,386 51,386
Redeemable Preferred Stock, $1.00 par value:
Series A Preferred Stock-
Authorized-500,000 shares
Issued and outstanding-10,000 shares (at liquidation value) 1,259,764 1,199,768
Stockholders' Equity:
Common stock, $.01 par value-
Authorized-10,000,000 shares
Issued and outstanding-2,872,149 shares in 1999 and 2,867,592 in 1998 28,721 28,676
Additional paid-in capital 8,212,213 8,263,018
Accumulated deficit (7,968,244) (7,626,177)
Total stockholders' equity 272,690 665,517
Total liabilities and stockholders' equity $ 5,856,275 $ 5,959,150
</TABLE>
See Notes to Consolidated Condensed Financial Statements.
LUXTEC CORPORATION
<TABLE>
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
<S> <C> <C> <C> <C>
THREE MONTHS ENDED NINE MONTHS ENDED
July 31 July 31 July 31 July 31
1999 1998 1999 1998
- -----------------------------------------------------------------------------------------------------------------
NET SALES $ 2,404,730 $ 3,031,903 $ 7,284,600 $ 8,633,388
COST OF SALES 1,539,513 1,736,624 4,353,394 4,954,358
---------------
- -----------------------------------------------------------------------------------------------
GROSS PROFIT 865,217 1,295,279 2,931,206 3,679,030
- -----------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Selling 523,595 526,521 1,482,292 1,597,151
Research and development 170,788 147,013 429,458 384,646
General and administrative 459,308 479,228 1,186,000 1,361,020
- -----------------------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 1,153,691 1,152,762 3,097,750 3,342,816
- -----------------------------------------------------------------------------------------------------------------
(LOSS)/INCOME
FROM OPERATIONS (288,474) 142,517 (166,544) 336,214
OTHER EXPENSES, NET (72,263) (69,484) (175,524) (202,433)
- -----------------------------------------------------------------------------------------------------------------
NET (LOSS)/INCOME (360,737) 73,033 (342,068) 133,781
PREFERRED STOCK DIVIDENDS 20,000 23,756 60,000 69,125
- -----------------------------------------------------------------------------------------------------------------
NET (LOSS)/INCOME APPLICABLE TO COMMON
STOCKHOLDERS
$ (380,737) $ 49,277 $ (402,068) $ 64,656
=================================================================================================================
==================================================================================================================
BASIC NET (LOSS)/INCOME PER SHARE
$ (0.13) $ 0.02 $ (0.14) $ 0.02
==================================================================================================================
DILUTED NET (LOSS)/INCOME PER SHARE
$ (0.13) $ 0.02 $ (0.14) $ 0.02
==================================================================================================================
==================================================================================================================
BASIC WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 2,875,906 2,867,592 2,873,415 2,858,998
===================================================================================================================
DILUTED WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 2,875,906 3,141,425 2,873,415 2,900,786
===================================================================================================================
See Notes to Consolidated Condensed Financial Statements.
</TABLE>
LUXTEC CORPORATION
<TABLE>
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
<S> <C> <C>
NINE MONTHS ENDED
July 31, July 31,
1999 1998
- --------------------------------------------------------------------------------------------------------------
Cash Flows from Operating Activities:
Net (loss)/income $ (342,068) $ 133,781
Adjustments to reconcile net (loss)/income to
net cash provided by operating activities -
Depreciation and amortization 99,694 153,951
Provision for uncollectible accounts receivable 19,081 149
Changes in current assets and liabilities:
Accounts receivable 594,194 197,559
Inventories (432,691) (638,762)
Prepaid expenses and other current assets (77,085) 28,527
Accounts payable and accrued expenses 192,598 290,786
- --------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 53,723 165,991
- --------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (121,014) (70,115)
Decrease/(increase) in other assets 32,930 (24,174)
- --------------------------------------------------------------------------------------------------------------
NET CASH USED IN INVESTING ACTIVITIES (88,084) (94,289)
- --------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings/(payments) on revolving line of credit 29,352 (10,730)
Net borrowings/(repayment) of long term debt 8,006 (59,794)
Proceeds from common stock sold under employee
stock purchase plan 9,237 24,474
- --------------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY/(USED IN) FINANCING ACTIVITIES 46,595 (46,050)
- --------------------------------------------------------------------------------------------------------------
NET INCREASE IN CASH 12,234 25,652
CASH, BEGINNING OF PERIOD 43,698 41,712
--------------- --------------
CASH, END OF PERIOD $ 55,932 $ 67,364
==============================================================================================================
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING
ACTIVITIES:
ACCRETION OF SERIES A PREFERRED STOCK $ 60,000 $ 69,125
=============================================================================================================
</TABLE>
See Notes to Consolidated Condensed Financial Statements
LUXTEC CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
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 of only normal recurring
adjustments. Operating results for the nine months ended July 31, 1999, 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>
<S> <C> <C>
July 31, 1999 October 31, 1998
Raw material $ 2,251,942 $ 1,580,002
Work in process 337,831 352,464
Finished goods 392,162 616,778
Total $ 2,981,935 $ 2,549,244
</TABLE>
3) Debt
The Company has a $2,500,000 revolving line-of-credit agreement with a
bank. The maximum amount available to borrow under the line is limited to the
lesser of the total line committed or certain percentages of accounts receivable
and inventory, as defined. Borrowings bear interest at the bank's prime rate (8%
at July 31, 1999). 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 was in compliance or had
obtained a waiver of all covenants for the period ended July 31, 1999. At July
31, 1999, availability under the line of credit was approximately $284,600. The
revolving credit agreement expires on March 31, 2001.
The Company has a $450,000 equipment facility agreement with a bank.
Borrowings bear interest at the bank's base rate (8% at July 31, 1999) plus .25%
and are secured by substantially all assets of the Company. At July 31, 1999,
the Company had outstanding borrowings of $198,708 under this agreement.
Availability of approximately $251,000 is to be used to fund the purchases of
fixed assets during the fiscal year 1999 period. The maturity date of the loan
is March 31, 2004.
On March 31, 1997, the Company entered into a $500,000 term note agreement
with a bank. The term note bears interest at prime (8% at July 31, 1999) plus
1.0%. Principal payments are payable in consecutive monthly installments
beginning in May, 1999, and continuing monthly thereafter until the entire
principal amount has been repaid. If not paid sooner, the term note is due on
the earlier of (a) March 31, 2002, (b) the date of an equity infusion or (c) the
date of a management change. At July 31, 1999, the Company had outstanding
borrowings of $456,000 under this agreement. The agreement contains covenants,
including the maintenance of certain financial ratios, as defined. The Company
was in compliance with or had obtained a waiver of all covenants at July 31,
1999.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
4) Earnings/(loss) per share
Basic earnings/(loss) per share was determined by dividing net
income/(loss) applicable to common stockholders by the weighted average common
shares outstanding during the period. Diluted earnings per share was determined
by dividing net income/(loss) 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 for the fiscal 1999 period excludes
options to purchase 332,550 shares of common stock and warrants to purchase
888,171 shares of common stock, as the effects are antidilutive.
<TABLE>
<S> <C> <C> <C> <C>
- --------------------------------------------------- --------------------------------- -----------------------------
THREE MONTHS ENDED NINE MONTHS ENDED
- --------------------------------------------------- --------------------------------- -----------------------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
July 31 July 31 July 31 July 31
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
1999 1998 1999 1998
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
Basic weighted average shares outstanding 2,875,906 2,867,592 2,873,415 2,858,998
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
Weighted average common equivalent shares - 273,833 - 41,788
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
Diluted weighted average shares outstanding 2,875,906 3,141,425 2,873,415 2,900,786
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
- --------------------------------------------------- ------------------ -------------- -------------- --------------
</TABLE>
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 July 31, 1999 were $2,404,730 or
20.7% less than the $3,031,903 reported for the same period in fiscal 1998. For
the nine months ended July 31, 1999 net revenues decreased 15.6% to $7,284,600
from $8,633,388 reported for the same period last year. The year to date sales
decrease of 15.6% resulted from distributor disruptions in the eastern states
and increased price competition resulting in lower average selling prices.
Cost of sales for the three months ended July 31, 1999 was $1,539,513 or
64.0% of net revenues, compared with $1,736,624 or 57.3% for the same period in
fiscal 1998. For the nine month period ended July 31, 1999, cost of sales was
$4,353,394 or 59.8% of net revenues compared to $4,954,358 or 57.4% of net
revenues for the same period in fiscal 1998. The increase in cost of sales as a
percentage of net revenues was primarily a result of lower average unit selling
prices resulting from competitive pressures.
Gross profit was $865,217 or 36.0% of net revenues for the quarter ended
July 31, 1999, compared to $1,295,279 or 42.7% of net revenues for the same
period in fiscal 1998. For the nine month period ended July 31, 1999 gross
profit was $2,931,206 or 40.2% of net revenues compared with $3,679,030 or 42.6%
of net revenues for the same period in fiscal 1998. The decreased margin
percentage was primarily due to the effects of increased price competition and
an unfavorable product mix.
Selling and marketing expenses were $523,595 for the three months ended
July 31, 1999 compared to $526,521 for the same period in fiscal 1998, a
decrease of 0.6%. For the nine month period ended July 31, 1999 selling and
marketing expenses were $1,482,292 compared with $1,597,151 for the same period
in fiscal 1998, a decrease of 7.2%. Marketing cost reduction efforts resulted in
lower trade show and other costs during fiscal 1999.
Research and development expenditures were $170,788 for the three months
ended July 31, 1999 compared to $147,013 for the same period in fiscal 1998, an
increase of 16.2%. For the nine month period ended July 31, 1999 research and
development expenditures were $429,458 compared with $384,646 for the same
period in fiscal 1998, an increase of 11.7%. The Company continues to invest in
new product development and product improvements at the level it believes is
necessary to maintain its market leadership.
General and administrative expenses were $459,308 for the three months
ended July 31, 1999 compared to $479,228 for the same period in fiscal 1998,
representing a decrease of 4.2%. For the nine months ended July 31, 1999 general
and administrative expenses totaled $1,186,000 compared to $1,361,020 during the
same period in fiscal 1998, a decrease of 12.9%. The decrease primarily resulted
from lowered salary related costs and a reduction of investment banking costs in
fiscal 1999 as compared to fiscal 1998.
LUXTEC CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
ITEM 2. (Continued)
Interest and other expenses were $72,263 for the three months ended July
31, 1999 compared to $69,484 for the same period in fiscal 1998. For the nine
months ended July 31, 1999 interest and other expenses were $175,524 compared to
$202,433 for the same period in fiscal 1998, a decrease of 13.3%. The decrease
for the nine month period was due to lower average credit lines and lower
interest rates in fiscal 1999 compared to fiscal 1998.
LIQUIDITY AND CAPITAL RESOURCES
At July 31, 1999, the Company had working capital of approximately
$1,421,500 compared to working capital of approximately $1,734,700 at October
31, 1998. Cash provided by operating activities was primarily funded by the
revolving line of credit. At July 31, 1999, the Company had used approximately
$2,215,000 of a $2,500,000 revolving line of credit, and had borrowed $500,000
under a term loan agreement and $198,708 under an equipment loan agreement.
The Company 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.
Year 2000
The Year 2000 problem, which is common to most corporations, concerns the
inability of information systems, primarily computer software programs, to
properly recognize and process date sensitive information as the year 2000
approaches. Many computer systems and other equipment with embedded chips or
microprocessors may not be able to appropriately interpret dates after December
31, 1999 because such systems use only two digits to indicate a year in the date
field rather than four digits. If not corrected, many computers and computer
applications could fail or create miscalculations, causing disruptions to the
Company's operations. In addition, the failure of customer and supplier computer
systems could result in interruption of sales and deliveries of key supplies or
utilities. Because of the complexity of the issues and the number of parties
involved, the Company cannot reasonably predict with certainty the nature or
likelihood of such impacts.
Using internal staff and outside consultants, the Company is actively
addressing this situation and anticipates that it will not experience a material
adverse impact to its operations, liquidity or financial condition related to
systems under its control. The Company is addressing the Year 2000 issue in four
overlapping phases: (i) identification and assessment of all critical software
systems and equipment requiring modification or replacement prior to 2000; (ii)
assessment of critical business relationships requiring modification prior to
2000; (iii) corrective action and testing of critical systems; (iv) development
of contingency and business continuation plans to mitigate any disruption to the
Company's operations arising from the Year 2000 issue.
The Company has upgraded its financial and manufacturing computer systems
with specific year 2000 "fixes". Other computer systems used in the Company are
currently being scheduled for upgrade during 1999. These systems are less
critical to the Company's operations. The Company is in the process of
implementing a plan to obtain information from its external service providers,
significant suppliers and customers, and financial institutions to confirm their
plans and readiness to become Year 2000 compliant, in order to better understand
and evaluate how their Year 2000 issues may affect the Company's operations. The
Company currently is not in a position to assess this aspect of the Year 2000
issue; however, the Company plans to take the necessary steps to provide itself
with reasonable assurance that its service providers, suppliers, customers and
financial institutions are Year 2000 compliant. This phase is approximately 50
complete to date. The Company currently believes it will be able to modify or
replace its affected systems in time to minimize any detrimental effects on
operations.
The Company is developing contingency plans to identify and mitigate
potential problems and disruptions to the Company's operations arising from the
Year 2000 issue. This phase is expected to be completed by October 31, 1999.
While it is not possible, at present, to give a precise estimate of the cost of
this work, the Company does not expect that such costs will be material to the
Company's results of operations in one or more fiscal quarters or years, and
will not have a material adverse impact on the long-term results of operations,
liquidity or consolidated financial position of the Company. To date, the
Company has expensed less than $50,000 on the effort to combat the year 2000
problems inherent in its systems. The total direct costs of the Year 2000
corrections is expected to be less than $100,000 through the first two quarters
of 2000.
While the Company believes that its own internal assessment and planning
efforts with respect to its external service providers, suppliers, customers and
financial institutions are and will be adequate to address its Year 2000
concerns, there can be no assurance that these efforts will be successful or
will not have a material adverse effect on the Company's operations.
LUXTEC CORPORATION
PART II. OTHER INFORMATION
ITEM 1. Legal proceedings
None.
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.
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.
LUXTEC CORPORATION
PART II. OTHER INFORMATION
ITEM 5. (Continued)
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.
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 July 31, 1999.
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)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-START> MAY-01-1999
<PERIOD-END> JUL-31-1999
<CASH> 56
<SECURITIES> 0
<RECEIVABLES> 2,068
<ALLOWANCES> 110
<INVENTORY> 2,982
<CURRENT-ASSETS> 5,128
<PP&E> 2,692
<DEPRECIATION> 2,175
<TOTAL-ASSETS> 5,856
<CURRENT-LIABILITIES> 3,706
<BONDS> 0
0
1,260
<COMMON> 29
<OTHER-SE> 244
<TOTAL-LIABILITY-AND-EQUITY> 5,856
<SALES> 2,405
<TOTAL-REVENUES> 2,405
<CGS> 1,540
<TOTAL-COSTS> 1,154
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 72
<INCOME-PRETAX> (361)
<INCOME-TAX> 0
<INCOME-CONTINUING> (361)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (361)
<EPS-BASIC> (0.13)
<EPS-DILUTED> (0.13)
</TABLE>
