FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 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: 33-10943-NY
PHOTON TECHNOLOGY INTERNATIONAL, INC.
- - --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
NEW JERSEY 22-2494774
- - --------------------------------------------------------------------------------
(State of Incorporation) (I.R.S. Employer Identification No.)
1 Deerpark Drive, Suite F, Monmouth Junction, NJ 08852
- - --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (732) 329-0910
--------------
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 [ ]
The number of shares of Common Stock without par value outstanding as of March
31, 1998 was 1,164,731.
<PAGE>
INDEX
PHOTON TECHNOLOGY INTERNATIONAL, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Balance Sheets as of March 31, 1998
and June 30, 1997.................................................
Consolidated Statements of Operations for the
nine months ended March 31, 1998 and 1997.........................
Consolidated Statements of Operations for the
quarter ended March 31, 1998 and 1997.............................
Consolidated Statements of Cash Flows for the
nine months ended March 31, 1998 and 1997.........................
Notes to Consolidated Financial Statements
March 31, 1998....................................................
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.....................
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.................................................
Item 2. Changes in Securities.............................................
Item 3. Defaults Upon Senior Securities...................................
Item 4. Submission of Matters to a Vote of Security Holders...............
Item 5. Other Information.................................................
Item 6. Exhibits and Reports on Form 8-K..................................
SIGNATURES .....................................................................
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
March 31 June 30
1998 1997
---------- ----------
ASSETS (Unaudited)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents ..................... $ 412,415 $1,367,703
Trade accounts receivable, less allowance
of $3,280 .................................... 1,625,337 2,078,250
Inventory
Finished goods .............................. 826,406 702,823
Work in process ............................. 432,041 472,109
Raw materials ............................... 753,915 619,581
---------- ----------
2,012,362 1,794,513
Prepaid expenses and other current assets ...... 392,519 325,943
---------- ----------
TOTAL CURRENT ASSETS ....... 4,442,633 5,566,409
PROPERTY AND EQUIPMENT
Furniture and fixtures ........................ 153,487 153,135
Machinery and equipment ....................... 2,254,393 2,222,396
---------- ----------
2,407,880 2,375,531
LESS: Accumulated depreciation ................. 1,701,354 1,569,689
---------- ----------
706,526 805,842
DEFERRED INCOME TAX ASSET ...................... 143,758 143,758
OTHER ASSETS ................................... 1,737,355 1,915,702
---------- ----------
$7,030,272 $8,431,711
========== ==========
</TABLE>
See Notes to Consolidated Financial Statements
Note: The balance sheet at June 30, 1997 has been derived from audited financial
statements at that date, and does not include all the information and notes
required under generally accepted accounting principles for complete financial
statements.
<PAGE>
<TABLE>
<CAPTION>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS - Continued
March 31 June 30
1998 1997
----------- -----------
(Unaudited)
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Bank indebtedness ................................. $ 1,170,026 $ 1,321,829
Accounts payable .................................. 920,917 1,061,135
Deferred income ................................... 20,128 11,924
Accrued expenses .................................. 231,223 170,448
Current portion of long term debt ................. 223,204 866,046
----------- -----------
TOTAL CURRENT LIABILITIES ............ 2,565,498 3,431,382
LONG TERM DEBT ...................................... 1,705,665 1,323,484
PREFERRED SHARES - Canadian Subsidiary .............. 1,958,147 1,962,137
SHAREHOLDERS' EQUITY
Preferred stock, $1,000 par value, authorized 500
shares; no shares issued or outstanding
Common Stock, no par value: authorized
3,333,333 shares; issued 1,292,477 shares,
including 127,746 and 126,423 shares in treasury 6,300,880 6,297,386
Accumulated deficit ............................... (4,890,485) (3,984,473)
Treasury stock, at cost ........................... (55,058) (56,433)
Cumulative foreign currency translation adjustment (554,375) (541,772)
----------- -----------
TOTAL SHAREHOLDERS' EQUITY ........... 800,962 1,714,708
----------- -----------
$ 7,030,272 $ 8,431,711
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements.
Note: The balance sheet at June 30, 1997 has been derived from the audited
financial statements at that date, and does not include all the information and
notes required under generally accepted accounting principles for complete
financial statements.
<PAGE>
<TABLE>
<CAPTION>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Nine Months Ended March 31,
1998 1997
----------- -----------
<S> <C> <C>
REVENUES
Net sales .............................. $ 5,983,247 $ 6,026,443
Other income ........................... 38,588 18,656
----------- -----------
6,021,835 6,045,099
COSTS AND EXPENSES
Cost of products sold .................. 2,633,659 2,570,404
Selling, general and administrative .... 3,050,933 2,598,964
Research and development ............... 558,456 667,711
Interest ............................... 196,883 244,879
Depreciation and amortization .......... 472,408 238,345
Foreign exchange (gain) loss ........... 15,508 (2,373)
----------- -----------
6,927,847 6,317,930
Loss before income taxes ................. (906,012) (272,831)
Benefit for income taxes ................. (16,866)
----------- -----------
Net loss ................................. ($ 906,012) $ (255,965)
=========== ===========
Net loss per common share ................ $ (.78) $ (.22)
=========== ===========
Weighted average number of common
shares outstanding ...................... 1,164,290 1,160,123
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Third Quarter Ended March 31,
1998 1997
----------- ------------
<S> <C> <C>
REVENUES
Net sales ......................... $ 1,970,173 $ 1,993,262
Other income ...................... 1,333 6,971
----------- ------------
1,971,506 2,000,233
COSTS AND EXPENSES
Cost of products sold ............. 889,417 921,620
Selling, general and administrative 1,071,116 964,574
Research and development .......... 113,913 218,238
Interest .......................... 59,952 84,711
Depreciation and amortization ..... 144,533 78,124
Foreign exchange (gain) loss ...... 1,203 (2,348)
----------- ------------
2,280,134 2,264,919
Loss before income taxes ............ (308,626) (264,686)
Benefit for income taxes ............ (6,294)
----------- ------------
Net loss ............................ $ (308,626) $ (258,392)
=========== ============
Net loss per common share ........... $ (.27) $ (.22)
=========== ============
Weighted average number of common
shares outstanding ................. 1,164,731 1,161,460
=========== ============
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Nine Months Ended March 31,
OPERATING ACTIVITIES: 1998 1997
----------- -----------
<S> <C> <C>
Net loss .............................................. $ (906,012) $ (255,965)
Adjustments to reconcile net loss
to net cash provided (used) by operating activities:
Depreciation and amortization ....................... 472,408 238,345
Other amortization .................................. -- 172,453
Deferred income tax benefit ......................... -- (16,866)
Changes in operating assets and liabilities:
Decrease in trade accounts receivable ............... 452,913 532,943
Increase in inventory ............................... (217,849) (123,185)
Increase in prepaid expenses and other current assets (61,761) (269,931)
Decrease in other assets ............................ -- 34,308
Decrease in accounts payable and accrued liabilities (79,443) (40,930)
Increase (decrease) in deferred income .............. 8,204 (41,851)
----------- -----------
Total adjustments ..................................... 574,472 485,286
----------- -----------
Net cash provided (used) by operating activities ...... (331,540) 229,321
----------- -----------
INVESTING ACTIVITIES:
Purchase of property and equipment .................. (19,638) (107,583)
Capitalized software ................................ (159,059) (226,000)
----------- -----------
Net cash used by investing activities ................. (178,697) (333,583)
----------- -----------
FINANCING ACTIVITIES:
Net proceeds from sale of preference stock .......... -- 1,975,824
Financing costs incurred ............................ (3,990) (7,982)
Investment in patents ............................... -- (2,850)
Decrease in bank indebtedness ....................... (151,803) (110,456)
Repayment of long term debt ......................... (260,661) (172,735)
Proceeds from issuance of common stock-Employee
Stock Purchase Plan ................................ 4,869 10,273
Increase in long term debt .......................... -- 65,720
----------- -----------
Net cash used by financing activities ................. (411,585) (1,757,794)
Effect of exchange rate changes on cash ............. (33,466) (70,826)
----------- -----------
NET DECREASE IN CASH
AND CASH EQUIVALENTS ................................ (955,288) (1,582,706)
CASH AND CASH EQUIVALENTS-BEGINNING ................... 1,367,703 279,041
----------- -----------
CASH AND CASH EQUIVALENTS-ENDING ...................... $ 412,415 $ 1,861,747
=========== ===========
Supplemental disclosure of cash paid
Interest ............................................ $ 196,883 $ 234,791
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1998
NOTE A -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Photon Technology International, Inc.(the "Company") is engaged in research,
development, manufacturing, sales and marketing of proprietary electro-optical
systems which enable customers in health care, environmental science and
industrial process control to perform advance analysis utilizing light. The
Company's major products are electro-optical and light-based instrumentation
which utilizes fluorescence technology. The primary markets are medical life
sciences, physical sciences, environmental and industrial.
The Company operates in one principal industry segment, the photonics industry.
The Company's products are sold on a worldwide basis to universities, research
hospitals, pharmaceutical companies, bio-tech companies, federal and state
government institutions, environmental companies and commercial business, all of
which are primarily engaged in research activities.
The accompanying consolidated financial statements of Photon Technology
International, Inc. have been prepared in accordance with generally accepted
accounting principles in the United States for interim financial information and
with the instructions to Form 10K and Article 10 of regulation S-X. 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 (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the nine month period ended March 31, 1998 are not necessarily
indicative of the results that may be expected for the year ending June 30,
1998. For further information, refer to the consolidated financial statements
and footnotes thereto included in the Company's annual report or Form 10K for
the year ended June 30, 1997.
In 1997, the Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No. 128, Earnings per Share. Statement 128 replaced the
previously reported primary and fully diluted earnings per share with basic and
diluted earnings per share. Unlike primary earnings per share, basic earnings
per share excludes any dilutive effects of options, warrants, and convertible
securities. Diluted earnings per share is very similar to the previously
reported fully diluted earnings per share. All earnings per share amounts for
all periods have been presented, and where necessary, restated to conform to the
Statement 128 requirements.
NOTE B -- COMPARATIVE AMOUNTS
Certain comparative amounts in the prior year have been reclassified to conform
with the presentation adopted in the current fiscal year.
<PAGE>
ITEM 2 -- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Net sales for the quarter and nine months ended March 31, 1998 of $2.0 million
and $6.0 million, respectively, decreased $23,000 or 1.2% and $43,000 or 0.7%,
respectively, compared to the same periods of fiscal 1997. These decreases
primarily reflect the impact of product orders received late in the quarter
which have a 45-60 day lead time to produce and ship to customers.
Total revenues for the quarter and nine months ended March 31, 1998 of $2.0
million and $6.0 million, respectively, which include net sales and other
income, decreased $28,000 or 1.4% and $23,000 or 0.4%, respectively, compared to
the corresponding prior year periods. This performance reflects both the sales
impact and lower other income. Other income for the first nine months of fiscal
1998 increased by $20,000 primarily due to interest earned on cash equivalents.
Cost of products sold for the third quarter of fiscal 1998 was $889,000 or 45.6%
of net sales, which compares to $922,000 or 46.2% of net sales for the same
period of fiscal 1997. The decrease of $33,000 was due both to lower sales and
obtaining better control of production and shipping costs at the Company's
production operations. Cost of products sold for the nine months ended March 31,
1998 and 1997 were $2.633 million and $2.570 million, or 44.1% and 42.7% of net
sales, respectively. These costs increased as a result of increases in plant
production operations and increased shipping costs during the nine month period.
Selling (including marketing), general and administrative expenses of $1,071,000
for the third quarter and $3.1 million for the nine months of fiscal 1998
increased $106,000 or 11.0% and $452,000 or 17.3%, respectively, for the
comparable periods of fiscal 1997. These expenses as a percentage of net sales
increased from 48.4% to 54.3% in the third quarter and from 43.1% to 50.1% for
the nine month period. The increase in selling, general and administrative
expense as a percentage of net sales in the quarter and nine month periods
primarily related to increased marketing and selling expenses for advertising
and trade shows to develop anticipated sales increases. These costs have begun
to level off and are anticipated to level off to a normal level during the
remainder of the fiscal year.
Research and development expenditures for the third quarter of fiscal 1998 were
$113,913 or 5.7% of net sales and for the nine months of fiscal 1998 totaled
$558,000 or 9.3% of net sales. In comparison to the prior year, these expenses
were $218,000 or 10.9% for the quarter and $668,000 or 11.1% for the nine month
period. An additional $159,000 of software development expenses, which
represents 2.7% of net sales, was capitalized for the nine months ended March
31, 1998 and represents a significant reduction in software capitalization in
relation to the same prior period. These expenses year-to-year are due to the
level of project activity for new products.
Interest expenses for the nine months ended March 31, 1998 of $197,000 decreased
by $48,000 or 20.0%. This decrease primarily relates to the waiver of interest
and re-negotiation of payment terms due to MLTV, a shareholder of the Company.
Interest expense for the third quarter of fiscal 1998 of $60,000 decreased by
$25,000 or 29.8% compared to fiscal 1997.
<PAGE>
ITEM 2 -- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
RESULTS OF OPERATIONS (continued)
Depreciation and amortization of $145,000 for the third quarter of fiscal 1998
increased by $67,000 or 85.8% and of $472,000 for the nine months of fiscal 1998
increased by $134,000 or 98.3% in comparison with the same comparable periods of
fiscal 1997. This increase relates primarily to amortization of software
development costs incurred in prior years.
Foreign exchange represented nominal losses of $1,203 and $15,508 for the
quarter and nine months ended March 31, 1998, respectively. The current year
loss in comparison to the gain of $2,373 for the first nine months of the prior
year was due to the mix of transactional activity.
Deferred tax benefits of $0 for the quarter and $0 for the nine months compared
to $6,000 and $17,000, respectively for the same prior year periods. The
deferred tax benefits in prior periods related to timing differences between
book and tax income related to the Canadian and German subsidiaries. The tax
benefits represent a continuing reversal of the liability that was established
during the year ended June 30, 1995.
The Company reported a net loss of $308,000 for the third quarter of fiscal
1998, compared to a net loss of $258,000 for the same prior year quarter. For
the nine month period ended March 31, 1998, the net loss was $906,000 in
comparison to a net loss of $256,000 for the same prior year nine months.
Continued expenses related to advertising and trade shows to develop anticipated
sales increases and the amortization of software development costs were the
significant items which impacted the net loss.
The resulting loss per share performance based on the number of common shares
outstanding each period was $(.27) and $(.78) per share for the quarter and nine
months ended March, 1998, in comparison to a net loss of $(.21) per share
respectively for the same prior year periods.
LIQUIDITY AND CAPITAL RESOURCES
The working capital of the Company at March 31, 1998 was $1,878,000 compared to
$2,135,000 at June 30, 1997; a decrease of $257,000 or 11.9%.
Current assets of $4,443,000 decreased $1,123,000 or 20.2% from the end of
fiscal 1997. This change primarily reflected a decrease of $956,000 in cash or
69.9% and a decrease in accounts receivable of $453,000 or 21.7%. Cash was used
to fund operations and reduce bank indebtedness and accounts payable, while the
change in trade accounts receivable related to strong collection activity and a
lower sales volume than during the final quarter of fiscal 1997. The trade
accounts receivables balance of $1.6 million represents 2.4 months of sales in
comparison to 3.0 months of sales at June 30, 1997. The inventory level of $2.0
million, which represents an increase of $217,000 or 12.1% compared to the
inventory balance at June 30, 1997, reflects both a higher level of production
volume to support future sales, and new product inventory. This inventory
balance represents 6.9 months of sales in inventory based on anticipated sales
and compares to 6.5 months of sales in inventory at the end of fiscal 1997. The
increase in other current assets mainly related to the timing of: (a) prepaid
employee benefit insurance; (b) prepaid general insurance premiums; (c)
reimbursable value added taxes (VAT) and general goods and services taxes (GST);
(d) prepaid legal services; and (e) trade show deposits and related marketing
costs.
<PAGE>
ITEM 2 -- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
LIQUIDITY AND CAPITAL RESOURCES (continued)
Current liabilities of $2,565,000 decreased $866,000 or 33.8% in comparison to
the prior year end. This decrease was due to: (a) reduction in notes payable to
banks of $152,000 or 11.5% based on pay down of the German subsidiary bank line;
(b) reduction in trade accounts payable of $140,000 or 13.1% based on payment
activity; (c) reduction in the current portion of long-term debt of $643,000 or
74.2%, resulting principally from the re-negotiation of the payment terms of
long-term debt due to MLTV, a principal shareholder of the Company. This
decrease was offset by increases in deferred income of $8,000 and accrued
expenses of $61,000.
As of December 15, 1997 the Company renewed its working capital line of credit
facility with Silicon Valley Bank of California for $2,000,000. This credit
facility has a one (1) year term (expiring December 14, 1998) and carries an
interest rate charge at the prime rate plus 1.5% (approximately 10.0% at
December 14, 1998). Interest is due and payable monthly, and the principal is
due at maturity. The collateral for the line represents a perfected first
security interest in all assets of the Company, its wholly-owned Canadian
subsidiary and United Kingdom branch office. The Company will retain ownership
of intellectual property and is restricted on the pledge of this property to any
other party. The advance rate is based on 75% against eligible domestic and
Canadian receivables within 90 days from invoice date and 90% against insured or
letter of credit backed receivables. No clean-up period is required during the
term of the loan. The securities related to the Covington Capital debenture and
the MLTV note are subordinated to the bank debt. The balance outstanding at
March 31, 1998 was $1,020,696.
Bank indebtedness also includes the outstanding balance of $149,000 US (275,000
DM) at March 31, 1998 drawn on a credit facility with the Stadparkasse Bank of
Wedel, Germany. The total line of credit available is 400,000 DM. Interest is
charged on a quarterly basis at the German Federal Bank's discount rate plus two
points.
During March 1998, the Company reached an understanding with MLTV that interest
would not accrue on the $630,000 principal amount of debt due by the Company and
that such balance would only become due upon the sale of the Company or at such
time as MLTV were to dispose of its interest in the Company.
On October 31, 1995, the Company entered into a Debenture agreement for $1.5
million Canadian dollars ($1.1 million US) through C.I.-C.P.A. Business Ventures
Fund, Inc. a capital fund of Covington Capital Corporation ("Covington Capital")
(the "Covington Agreement"). This subordinated debt has a term of five (5) years
at an interest rate of 12% per annum. This financing was an important source of
funds which provided for investment to expand sales territory coverage through
addition of personnel, increase marketing support, and continue research and
development efforts in both hardware and software for new products and product
cost reductions.
<PAGE>
ITEM 2 -- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
LIQUIDITY AND CAPITAL RESOURCES (continued)
In July 1994, documents were fully executed between the "ODC" and the Company
for a term loan facility in the amount of $500,000 Canadian dollars. The loan
credit facility was established to allow advance requests for equipment,
inventory and training expenditures associated with moving the production
operation from the New Jersey plant to the London, Ontario, Canadian plant. The
balance outstanding as of March 31, 1998 on the ODC fixed loan was $208,585
Canadian dollars ($146,948 US) based on specific advance requests approved
through this date. The term of repayment is forty (40) months and includes an
interest rate of 6.75%. This term loan is classified as long term debt with a
current portion equal to twelve months of principal payments.
On March 7, 1997, the Company raised its first significant equity financing
since 1987, for $2,000,000, net $1,958,147 (for detail on specific terms, refer
to Note I to the Financial Statements in Form 10K). The importance of this
financing is that it allows the Company to pursue its growth goals. The Company
used the financing for new product introduction and to expand its sales and
marketing coverage.
The major risk to the Company is the timing of sales following the Company's
sales promotional campaigns. Generally there is a six month sales cycle, but the
sales cycles can lengthen due to economic conditions. Should the sales cycle
become too long, the Company does not have the financial resources to sustain
the sales and marketing plans and would have to cut back on its marketing and
sales efforts.
If the Company has to repay some of the short term maturing debt, it will loose
a substantial portion of its financial resources to pursue its growth plans.
Whereas there is every reason to believe that the Company can refinance its
maturing debt, there is no guarantee that it will be able to do so.
The Company will continue to manage within its financial resources and attempt
to balance its working capital needs with cash flow generated from operations
and available current financing. The Company will continue to seek additional
financing to fully exploit its sales and marketing potential. The Company cannot
be certain that it will be successful in efforts to raise additional funds.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Neither the Company nor any of its subsidiaries is currently a party to
nor is any of their property the subject of any legal proceedings which would be
material to the business or financial condition of the Company on a consolidated
basis.
Item 2. Changes in Securities.
Not Applicable
Item 3. Defaults Upon Senior Securities.
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
The Company held its annual meeting of shareholders on Friday, December
5, 1997. The only matter considered and voted upon at the meeting was the
election of one director for a three-year term.
The voting for the director: James F. Mrazek was 1,093,551 shares for,
334 shares against and 144,624 withheld.
Item 5. Other Information.
Not Applicable
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(27) Financial Data Schedule
(b) Reports on Form 8-K
None
<PAGE>
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.
PHOTON TECHNOLOGY INTERNATIONAL, INC.
Date: May 14, 1998 By: /s/ Charles G. Marianik
------------------------
Charles G. Marianik
President, Chief Executive Officer
and Director
(Principal Executive Officer)
Date: May 14, 1998 By: /s/ Howard D. Zumbrun
------------------------
Howard D. Zumbrun
Vice President,
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> MAR-31-1998
<CASH> 412,415
<SECURITIES> 0
<RECEIVABLES> 1,628,617
<ALLOWANCES> (3,280)
<INVENTORY> 2,012,362
<CURRENT-ASSETS> 4,442,633
<PP&E> 2,407,880
<DEPRECIATION> 1,701,354
<TOTAL-ASSETS> 7,030,272
<CURRENT-LIABILITIES> 2,565,498
<BONDS> 1,705,665
0
0
<COMMON> 6,300,880
<OTHER-SE> (5,499,918)
<TOTAL-LIABILITY-AND-EQUITY> 7,030,272
<SALES> 5,983,247
<TOTAL-REVENUES> 6,021,835
<CGS> 2,633,659
<TOTAL-COSTS> 2,633,659
<OTHER-EXPENSES> 4,097,305
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 196,883
<INCOME-PRETAX> (906,012)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (906,012)
<EPS-PRIMARY> (.78)
<EPS-DILUTED> 0
</TABLE>
