FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[ Mark one ]
[ X ] Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For quarter ended September 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 1-9334
BALDWIN TECHNOLOGY COMPANY, INC.
(Exact name of registrant as specified in its charter)
Delaware 13-3258160
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) Identification No.)
One Norwalk West, 40 Richards Avenue, Norwalk, Connecticut 06854
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 203-838-7470
(Former name, former address and former fiscal year, if changed
since last report.)
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
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 .
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.
Class Outstanding at October 30, 1998
Class A Common Stock
$0.01 par value 15,116,681
Class B Common Stock
$0.01 par value 1,835,883
Total number of pages in this document 13
BALDWIN TECHNOLOGY COMPANY, INC.
INDEX
Page
Part I Financial Information
Consolidated Balance Sheet -
September 30, 1998 and June 30, 1998 1
Consolidated Statement of Income -
Three months ended
September 30, 1998 and 1997 2
Consolidated Statement of Changes in
Shareholders' Equity - Three months
ended September 30, 1998 3
Consolidated Statement of Cash Flows -
Three months ended
September 30, 1998 and 1997 4-5
Notes to Consolidated Financial Statements 6-7
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8-11
Part II Other Information
Item 6 Exhibits and Reports on Form 8-K 11
Signatures 12
CAUTIONARY STATEMENT -- This Form 10-Q may contain statements which
constitute "forward-looking" information as that term is defined in
the Private Securities Litigation Reform Act of 1995 or by the
Securities and Exchange Commission ("SEC") in its rules,
regulations and releases. Baldwin Technology Company, Inc. (the
"Company") cautions investors that any such forward-looking
statements made by the Company are not guarantees of future
performance and that actual results may differ materially from
those in the forward-looking statements. Some of the factors that
could cause actual results to differ materially from estimates
contained in the Company's forward-looking statements are set forth
in Exhibit 99 to Form 10-K for the year ended June 30, 1998.
PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
BALDWIN TECHNOLOGY COMPANY, INC.
CONSOLIDATED BALANCE SHEET
(in thousands, except share data)
(Unaudited)
September 30, June 30,
1998 1998
ASSETS
CURRENT ASSETS:
Cash $ 13,521 $ 15,054
Short-term securities 2,912 6,972
Accounts receivable trade, net of allowance for
doubtful accounts of $1,789($1,713 at June 30, 1998) 40,053 39,839
Notes receivable, trade 11,041 13,323
Inventories 43,707 35,166
Prepaid expenses and other 9,458 8,086
Total current assets 120,692 118,440
MARKETABLE SECURITIES:
Cost $607 ($586 at June 30, 1998) 706 738
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land and buildings 3,147 3,123
Machinery and equipment 7,427 7,210
Furniture and fixtures 6,060 5,539
Leasehold improvements 1,012 1,028
Capital leases 5,624 5,339
23,270 22,239
Less: Accumulated depreciation and amortization 16,282 15,241
Net property, plant and equipment 6,988 6,998
PATENTS, TRADEMARKS AND ENGINEERING DRAWINGS at cost,
less accumulated amortization of $5,614 ($5,410 at
June 30, 1998) 4,845 4,935
GOODWILL, less accumulated amortization of $8,252
($8,033 at June 30, 1998) 29,581 29,394
OTHER ASSETS 14,696 14,523
TOTAL ASSETS $177,508 $175,028
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Loans payable $ 4,870 $ 4,481
Current portion of long-term debt 6,316 6,330
Accounts payable, trade 15,910 15,962
Notes payable, trade 9,086 9,707
Accrued salaries, commissions, bonus and profit-sharing 9,124 9,351
Customer deposits 16,343 14,180
Accrued and withheld taxes 2,217 2,282
Income taxes payable 7,699 10,478
Other accounts payable and accrued liabilities 18,089 17,104
Total current liabilities 89,654 89,875
LONG-TERM LIABILITIES:
Long-term debt 17,327 17,072
Other long-term liabilities 4,834 4,624
Total long-term liabilities 22,161 21,696
Total liabilities 111,815 111,571
SHAREHOLDERS' EQUITY:
Class A Common Stock, $.01 par, 45,000,000 shares
authorized, 16,431,683 shares issued
(16,431,683 at June 30, 1998) 164 164
Class B Common Stock, $.01 par, 4,500,000 shares
authorized, 2,000,000 shares issued 20 20
Capital contributed in excess of par value 57,359 57,359
Retained earnings 17,088 15,168
Cumulative translation adjustment (2,261) (3,423)
Unrealized gain on investments net of $50 of
deferred taxes ($73 at June 30, 1998) 49 79
Less: Treasury stock, at cost:
Class A - 1,266,502 shares (1,102,802 at June 30, 1998)
Class B - 164,117 shares (164,117 at June 30, 1998) (6,726) (5,910)
Total shareholders' equity 65,693 63,457
COMMITMENTS ------ ------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $177,508 $175,028
The accompanying notes to consolidated financial statements
are an integral part of these statements.
- 1 -
BALDWIN TECHNOLOGY COMPANY, INC.
CONSOLIDATED STATEMENT OF INCOME
(in thousands of dollars except per share data)
(Unaudited)
For the three months
ended September 30,
1998 1997
Net sales $55,319 $48,047
Cost of goods sold 37,149 32,020
Gross Profit 18,170 16,027
Operating expenses:
General and administrative 6,177 5,570
Selling 4,569 4,285
Engineering 3,403 3,006
Research and development 1,184 1,324
15,333 14,185
Operating income 2,837 1,842
Other (income) expense:
Interest expense 563 735
Interest income (160) (207)
Minority interest (97)
Other income, net (662) (661)
(259) (230)
Income before taxes 3,096 2,072
Provision for income taxes 1,176 871
Net income $ 1,920 $ 1,201
Basic income
per share $ 0.11 $ 0.07
Diluted income
per share $ 0.11 $ 0.07
Weighted average number of
shares:
Basic 17,114 17,125
Diluted 17,505 17,601
The accompanying notes to consolidated financial statements
are an integral part of these statements.
- 2 -<PAGE>
<TABLE>
BALDWIN TECHNOLOGY COMPANY INC.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(in thousands, except share data)
(Unaudited)
<CAPTION>
Capital Unrealized
Class A Class B Contributed Cumulative Gain (Loss) Compre-
Common Stock Common Stock in Excess Retained Translation on Treasury Stock hensive
Shares Amount Shares Amount of Par Earnings Adjustment Investments Shares Amount Income
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at June 30, 16,431,683 $164 2,000,000 $20 $57,359 $15,168 $(3,423) $79 (1,266,919) $(5,910)
1998
Net income for the
three months ended
September 30, 1998 1,920 $1,920
Translation
adjustment 1,162 1,162
Unrealized loss on
available for sale
securities, net of
tax (30) (30)
Comprehensive income $3,052
Purchase of treasury
stock (163,700) (816)
Balance at September
30, 1998 16,431,683 $164 2,000,000 $20 $57,359 $17,088 $(2,261) $49 (1,430,619) $(6,726)
<FN>
The accompanying notes to consolidated financial statements
are an integral part of these statements.
</FN>
</TABLE>
- 3 -
BALDWIN TECHNOLOGY COMPANY, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
Increase (Decrease) in Cash and Cash Equivalents
(in thousands)
(Unaudited)
For the three months
ended September 30,
1998 1997
Cash Flows from operating activities:
Income from operations $ 1,920 $ 1,201
Adjustments to reconcile net income to net cash
provided by operating activities -
Depreciation and amortization 974 790
Accrued retirement pay 109 153
Provision for losses on accounts receivable 14 121
Changes in assets and liabilities:
Accounts and notes receivable, net 3,257 (2,197)
Inventories (8,025) (6,179)
Prepaid expenses and other (1,169) (288)
Customer deposits 1,976 3,252
Accrued compensation (411) (82)
Accounts and notes payable, trade (1,240) 1,882
Income taxes payable (2,808) (1,365)
Accrued and withheld taxes (133) (84)
Other accounts payable and accrued liabilities 448 (1,004)
Interest payable 417 536
Net cash used by operating activities (4,671) (3,264)
Cash flows from investing activities:
Proceeds from the pre-press disposition 4,000
Additions of property, net (460) (470)
Additions of patents, trademarks and drawings, net (96) (75)
Other assets 39 (36)
Net cash (used) provided by investing activities (517) 3,419
Cash flows from financing activities:
Long-term debt repayment (36) (45)
Short-term borrowings 1,913 377
Short-term debt repayment (1,666) (486)
Principal payments under capital lease
obligations (58) (60)
Other long-term liabilities (91) 81
Treasury stock purchased (816)
Net cash used by financing activities (754) (133)
Effects of exchange rate changes 349 (139)
Net decrease in cash and
cash equivalents (5,593) (117)
Cash and cash equivalents at beginning of year 22,026 13,453
Cash and cash equivalents at end of period $16,433 $ 13,336
The accompanying notes to consolidated financial statements
are an integral part of these statements.
- 4 -<PAGE>
BALDWIN TECHNOLOGY COMPANY, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Supplemental disclosures of cash flow information:
For the three months
ended September 30,
1998 1997
(in thousands)
Cash paid during the period for:
Interest $ 146 $ 199
Income taxes $ 3,732 $ 2,331
Supplemental schedule of non-cash investing and financing activities:
For the three months ended September 30, 1998:
There were no significant non-cash transactions for the three months ended
September 30, 1998.
The Company did not enter into any capital lease agreements for the three
months ended September 30, 1998.
For the three months ended September 30, 1997:
There were no significant non-cash transactions for the three months ended
September 30, 1997.
The Company entered into capital lease agreements of $66,390 for the three
months ended September 30, 1997.
Disclosure of accounting policy:
For purposes of the statement of cash flows, the Company considers all highly
liquid instruments with original maturities of three months or less to be cash
equivalents.
The accompanying notes to consolidated financial statements
are an integral part of these statements.
- 5 -
BALDWIN TECHNOLOGY COMPANY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 - General:
Baldwin Technology Company, Inc. (Baldwin, or the Company) is engaged
primarily in the development, manufacture and sale of material handling,
accessory and control equipment for the printing and print on demand
industries.
The consolidated financial statements include the accounts of Baldwin and
its subsidiaries and reflect all adjustments (consisting of only normal
recurring adjustments) which are, in the opinion of management, necessary to
present a fair statement of the results for the interim periods. Operating
results for the three month period ended September 30, 1998 are not necessarily
indicative of the results that may be expected for the year ending June 30,
1999. All significant intercompany transactions have been eliminated in
consolidation.
Note 2 - Earnings per share:
In fiscal 1998, the Company adopted Financial Accounting Standards Board
Statement No. 128, "Earnings per Share" (FAS 128). FAS 128 applies to entities
with publicly held common stock or potential common stock and is effective for
financial statements issued for periods ending after December 15, 1997. The
weighted average number of shares outstanding used to compute basic earnings
per share for the three month periods ended September 30, 1998 and 1997
amounted to 17,114,000 and 17,125,000 shares, respectively. The weighted
average number of shares outstanding used to compute diluted earnings per share
for the three month periods ended September 30, 1998 and 1997 amounted to
17,505,000 and 17,601,000 shares, respectively, which include potentially
dilutive securities, primarily outstanding options to purchase the Company's
common stock, of 391,000 and 476,000 shares for the respective periods. The
Company has restated the prior period and has presented basic and diluted
income per share for each period.
Note 3 - Inventories:
Inventories consist of the following:-
September 30, June 30,
1998 1998
Raw material $15,193,000 $14,158,000
In process 17,604,000 11,732,000
Finished goods 10,910,000 9,276,000
$43,707,000 $35,166,000
Inventories increased by $771,000 due to translation effects of exchange
from June 30, 1998 to September 30, 1998.
Note 4 - Restructuring Charge and Reserves:
During 1992, a restructuring reserve was established relating to an excess
facility sublease subsidy. In addition, a restructuring reserve was charged to
income during the quarter ended December 31, 1995 in the amount of $3,000,000
in order to accrue the costs associated with a planned workforce reduction at
the Company's German operations as well as to accrue for dealer claims
associated with changes made to the European dealer network and distribution
system. As of June 30, 1998, these reserves have been fully utilized.
- 6 -
Note 5 - Common Stock:
Stock Options:-
On August 11, 1998 the Board of Directors granted non-qualified options to
purchase 200,000 shares of the Company's Class A Common Stock to certain
executives and key personnel under the Company's 1996 Plan at an exercise price
of $5.50 per share, the fair market value on the date of grant. The options
granted are otherwise identical with regard to restrictions to the options
previously granted under this plan.
On August 11, 1998, the Board of Directors voted to adopt, subject to
stockholder approval, the Baldwin Technology Company, Inc. 1998 Non-Employee
Director's Stock Option Plan (the "1998 Plan") which provides for the issuance
of options to purchase up to an aggregate of 250,000 shares of the Company's
Class A Common Stock to non-employee Directors of the Company. Under the 1998
Plan, each year, each eligible Director would receive a grant of options to
purchase 3,000 shares of the Company's Class A Common Stock. The options would
be granted at the fair market value on the date of grant, and would vest one-
third per year on each succeeding anniversary of the date of grant. The 1998
Plan will become effective upon approval by the stockholders at the Annual
Meeting of Stockholders to be held on November 12, 1998. The 1990 Director's
Stock Option Plan (the "1990 Plan") will be immediately terminated once the
stockholders approve the 1998 Plan, provided however that outstanding options
under the 1990 Plan will continue to be subject to the terms thereof.
- 7 -
<PAGE>
BALDWIN TECHNOLOGY COMPANY, INC.
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain
significant factors which have affected the Company's financial position and
consolidated financial statements.
Three Months Ended September 30, 1998 vs. Three Months
Ended September 30, 1997.
Net sales for the three months ended September 30, 1998 increased by
$7,272,000, or 15.1%, to $55,319,000 from $48,047,000 for the three months
ended September 30, 1997. Currency rate fluctuations attributable to the
Company's overseas operations decreased net sales by $2,000,000 in the current
period. In terms of local currency and as compared to the prior year's
quarter, sales increased by 8.8% in Germany, by 50.0% in Sweden, by 15.0% in
France, and by 19.5% in the United Kingdom. In Japan, sales decreased by 8.5%.
In the Americas, net sales increased by 38.6%.
Gross profit for the three month period ended September 30, 1998 was
$18,170,000 (32.8% of net sales), as compared to $16,027,000 (33.3% of net
sales) for the three month period ended September 30, 1997, an increase of
$2,143,000 or 13.4%. Currency rate fluctuations decreased gross profit by
$569,000 in the current period. Gross profit was lower as a percentage of net
sales when compared to the prior year due primarily to increased sales of lower
margin material handling equipment and decreased sales in Japan.
Selling, general and administrative expenses were $10,746,000 (19.4% of
net sales), for the three month period ended September 30, 1998 as compared to
$9,855,000 (20.5% of net sales) for the same period of the prior year, an
increase of $891,000 or 9.0%. Currency rate fluctuations decreased these
expenses by $270,000 in the current period. Otherwise, selling, general and
administrative expenses increased by $1,161,000. Selling expenses increased by
$409,000 which primarily related to sales volume and direct sales personnel
increases while general and administrative expenses increased by $752,000 due
primarily to increased personnel, consulting, and compensation costs.
Other operating expenses increased by $257,000 over the same period of the
prior year. Currency rate fluctuations decreased these expenses by $166,000 in
the current period. Otherwise, other operating expenses would have increased
by $423,000. The increase in these expenses relates primarily to increased
engineering costs. As a percentage of net sales, other operating expenses
decreased by 0.7% to 8.3% for the three months ended September 30, 1998
compared to 9.0% for the same period in the prior year.
Interest expense for the three month period ended September 30, 1998 was
$563,000 as compared to $735,000 for the three month period ended September 30,
1997 with the decrease attributable to lower debt levels and lower interest
rates. Currency rate fluctuations increased interest expense by $4,000 in the
current period. Other income and expense includes net foreign currency
transaction gains (losses) of $85,000 and $(78,000) for the three months ended
September 30, 1998 and 1997, respectively. Currency rate fluctuations
decreased other income by $42,000 in the current period.
The Company's effective tax rate on income before taxes was 38.0% for the
three month period ended September 30, 1998 as compared to 42.0% for the three
month period ended September 30, 1997. Currency rate fluctuations decreased
the provision for income taxes by $73,000 in the current period. The decrease
in the current period's effective tax rate is primarily due to increased income
in tax jurisdictions for which there are available tax loss carryforwards.
Net income for the three month period ended September 30, 1998 increased
by $719,000 or 59.9% to $1,920,000 from $1,201,000 for the three month period
ended September 30, 1997, or to $0.11 from $0.07 per share basic and diluted.
Currency rate fluctuations decreased net income by $118,000 in the current
period.
- 8 -
Liquidity and Capital Resources at September 30, 1998
Liquidity and Working Capital
The Company's long-term debt includes $18,750,000 of 8.17% senior notes
(the "Senior Notes") due October 29, 2000. The Company also has a four-year
$20,000,000 Revolving Credit Agreement (the "Revolver") with NATIONSBANK, N.A.,
as Agent, which matures in December, 1999.
The Senior Notes and the Revolver require the Company to maintain certain
financial covenants and have certain restrictions regarding the payment of
dividends, limiting them throughout the terms of the Senior Notes and the
Revolver to $1,000,000 plus 50% of the Company's net income after January 1,
1997. In addition, the Company was required to pledge certain of the shares of
its domestic subsidiaries as collateral for both the Senior Notes and the
Revolver.
Both the Senior Notes and the Revolver require the Company to maintain a
ratio of current assets to current liabilities (as those terms are defined in
the agreements) of not less than 1.4 to 1. At September 30, 1998, this ratio
was 1.53 to 1.
Net cash provided (used) by investing activities was $(517,000) for the
three months ended September 30, 1998 versus $3,419,000 for the three months
ended September 30, 1997. The change was primarily due to the collection of
the proceeds from the disposition of the Company's Pre-press operations in the
prior period. Net cash (used) by financing activities was $(754,000) for the
three months ended September 30, 1998 as compared to $(133,000) for the three
months ended September 30, 1997. The change was primarily due to the purchase
of treasury stock, partially offset by an increase in additional short-term
borrowings net of repayments.
The Company's working capital increased from $30,530,000 at September 30,
1997, to $31,038,000 at September 30, 1998, an increase of $508,000 or 1.7%.
Currency rate fluctuations decreased working capital by $1,302,000.
Inventories increased due to increased order backlog. This increase in working
capital was offset by increases in customer deposits, income taxes payable and
other accrued liabilities. The Company's working capital increased by
$2,473,000 or 8.7% from $28,565,000 at June 30, 1998 to $31,038,000 at
September 30, 1998. Currency rate fluctuations increased working capital by
$974,000 in the current period. The change in working capital resulted
primarily from increased inventories, as well as a reduction in income taxes
payable as a result of income tax payments. These increases in working capital
were partially offset by increases in customer deposits on orders related to
the increase in backlog, and other accrued liabilities as well as a decrease in
cash and short term securities.
The Company maintains relationships with foreign and domestic banks which
have extended credit facilities to the Company totaling $35,855,000, including
amounts available under the Revolver. As of September 30, 1998, the Company
had outstanding $8,448,000 under these lines of credit, of which $3,578,000 is
classified as long-term debt. Total debt levels as reported on the balance
sheet at September 30, 1998 are $419,000 higher than they would have been if
June 30, 1998 exchange rates had been used.
Net capital expenditures made to meet the normal business needs of the
Company for the three months ended September 30, 1998 and September 30, 1997,
including commitments for capital lease payments, were $556,000 and $545,000,
respectively.
The Company believes its cash flow from operations and bank lines of
credit are sufficient to finance its working capital and other capital
requirements for the near and long-term future.
- 9 -
Year 2000 Compliance
The Company is aware of the issues associated with the limitations of
programming code in existing computer systems whereby the computer systems may
not properly recognize date sensitive information as the year 2000 approaches.
The inability to properly recognize dates and related potential date sensitive
problems are referred to as the Year-2000 situation.
The Year-2000 situation has a potential impact on the Company's internal
information systems infrastructure, Company products which either contain or
utilize digital devices and the internal information systems of suppliers to
the Company.
The Company has undertaken a study, utilizing external consultants, to
evaluate the Company's internal information systems infrastructure as it
relates to the Year-2000 situation and believes it has identified Year-2000
non-compliance processes. The Company has undertaken projects to update and
replace all non-compliant internal information systems and processes to ensure
that the Year-2000 situation will not have a detrimental impact on the internal
operations of the Company. The cost to update and replace non-compliant
systems is approximately $2,000,000 consisting of the cost of purchasing and
installing hardware and software and will be incurred through Fiscal 1999. The
cost of Year-2000 compliance is not projected to have a significant negative
impact on the Company's financial results in subsequent fiscal years.
A review has been undertaken, or is in process, for those products of the
Company that utilize microprocessors in the operation of the products which
could be adversely affected by the Year-2000 date change. At the present time,
no Company products have been identified where Year-2000 non-compliance would
have a detrimental impact on the operation of the products.
The Company is surveying its suppliers and service providers to determine
potential exposure from external, non-compliant sources. No exposures have
been identified, to date, from external sources.
The Company has or is addressing its Year-2000 exposures. However, should
an unforeseeable Year-2000 situation arise that poses a severe threat to the
Company, the Company expects to be able to revert to PC and manual backup
internal processes until the situation can be resolved. The Company maintains
service and engineering personnel which would be able to remediate any
unforeseen Year-2000 non-compliance situations related to a product of the
Company which would require immediate resolution. The Company does not utilize
single source providers or vendors and as such, may change to other providers
and vendors in the case of non-compliance.
Euro Conversion
Effective January 1, 1999, the "euro" will become the new common currency
for 11 European countries (including Germany, France and the Netherlands where
the Company has European operations). Other member states (including the
United Kingdom and Sweden where the Company also has European operations) may
join in years to come. Beginning January 1, 1999, transactions in the euro
will be possible, but the national currencies will continue to circulate until
January 1, 2002, when the euro will become the functional currency for these 11
countries. During the transition period from January 1, 1999 to January 1,
2002, payments can be made using either the euro or the national currencies at
fixed exchange rates.
Beginning January 1, 1999, the Company plans to be able to conduct
business with customers in both the euro and the respective national currency.
Systems and processes that are initially impacted by this dual currency
requirement are customer billing and receivables, payroll, and cash management
activities, including cash collections and disbursements. To accomplish
compliance, the Company is making the necessary systems and process changes and
is also working with its financial institutions on various cash management
issues. By January 1, 2002, the plan is to have systems and processes in the
euro countries accommodate the recording of all business transactions in the
euro.
- 10 -
Management currently believes that the external costs associated with
implementing and completing the euro conversion will not be material in any
year. Also, management currently believes that the business and market
implications, if any, of the euro conversion will not be material to its
results of operations or financial condition in any year. However, the
competitive impact of increased cross-border price transparency is uncertain,
both with respect to products sold by the Company, as well as products,
utilities and services purchased by the Company.
The Company's ongoing efforts and those of its significant customers and
suppliers (including financial institutions) may, at some time in the future,
reveal as yet unidentified or not fully understood issues that may not be
addressable in a timely fashion, or that may cause currently unexpected
competitive or market effects, all contrary to the foregoing forward-looking
assumptions. These issues, if not resolved favorably, could have a material
adverse effect on the Company's results of operations or financial condition in
any year.
Impact of Inflation
The Company's results are affected by the impact of inflation on
manufacturing and operating costs. Historically, the Company has used selling
price adjustments, cost containment programs and improved operating
efficiencies to offset the otherwise negative impact of inflation on its
operations.
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule (filed herewith).
(b) Reports on Form 8-K. There were no reports on Form 8-K filed for the
three months ended September 30, 1998.
- 11 -
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.
BALDWIN TECHNOLOGY COMPANY, INC.
BY s\ William J. Lauricella
Vice President, Chief Financial
Officer and Treasurer
Dated: November 9, 1998
- 12 -
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS IN THE COMPANY'S CURRENT REPORT ON FORM 10-Q AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH UNAUDITED FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 13521
<SECURITIES> 2912
<RECEIVABLES> 52883
<ALLOWANCES> 1789
<INVENTORY> 43707
<CURRENT-ASSETS> 120692
<PP&E> 23270
<DEPRECIATION> 16282
<TOTAL-ASSETS> 177508
<CURRENT-LIABILITIES> 89654
<BONDS> 0
0
0
<COMMON> 184
<OTHER-SE> 65509
<TOTAL-LIABILITY-AND-EQUITY> 177508
<SALES> 55319
<TOTAL-REVENUES> 55319
<CGS> 37149
<TOTAL-COSTS> 37149
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</TABLE>
