FORM 10-QSB
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, 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: 33-10943-NY
PHOTON TECHNOLOGY INTERNATIONAL, INC.
- --------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
NEW JERSEY 22-2494774
- --------------------------------------------------------------------------------
(State of Incorporation) (I.R.S. Employer Identification No.)
1 Deer Park Drive, Suite F, Monmouth Junction, NJ 08852
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Issuer's Telephone Number, Including Area Code: (732) 329-0910
Check whether the Issuer (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, 1999 was 1,169,694.
<PAGE>
INDEX
PHOTON TECHNOLOGY INTERNATIONAL, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements: Page
Consolidated Balance Sheets as of March 31, 1999........... 3-4
Consolidated Statements of Operations for the
nine months ended March 31, 1999 and 1998.................. 5
Consolidated Statements of Operations for the
quarter ended March 31, 1999 and 1998...................... 6
Consolidated Statements of Cash Flows for the
nine months ended March 31, 1999 and 1998.................. 7
Notes to Consolidated Financial Statements
March 31, 1999............................................. 8-9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.............. 10-13
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.......................................... 14
Item 2. Changes in Securities...................................... 14
Item 3. Defaults Upon Senior Securities............................ 14
Item 4. Submission of Matters to a Vote of Security Holders........ 14
Item 5. Other Information.......................................... 14
Item 6. Exhibits and Reports on Form 8-K........................... 14
SIGNATURES .............................................................. 15
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1 -- FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
March 31
1999
----------
ASSETS (Unaudited)
<S> <C>
CURRENT ASSETS
Cash and cash equivalents ................................. $ 119,102
Trade accounts receivable, less allowance
of $48,757 ............................................... 1,264,694
Inventory
Finished goods .......................................... 522,560
Work in process ......................................... 218,089
Raw materials ........................................... 858,223
----------
1,598,872
Prepaid expenses and other current assets .................. 282,573
----------
TOTAL CURRENT ASSETS ................... 3,265,241
PROPERTY AND EQUIPMENT
Furniture and fixtures .................................... 243,651
Machinery and equipment ................................... 2,297,284
----------
2,540,935
LESS: Accumulated depreciation ............................. 1,894,510
----------
646,425
DEFERRED INCOME TAX ASSET .................................. 119,258
OTHER ASSETS ............................................... 1,343,508
----------
$5,374,432
==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS - Continued
March 31
1999
-----------
(Unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C>
CURRENT LIABILITIES
Bank indebtedness ......................................... $ 736,884
Accounts payable .......................................... 422,171
Deposits .................................................. 71,786
Accrued expenses .......................................... 186,074
Current portion of long term debt ......................... 177,413
-----------
TOTAL CURRENT LIABILITIES .................... 1,594,328
LONG TERM DEBT .............................................. 1,516,459
PREFERRED SHARES - Canadian Subsidiary ...................... 1,958,147
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 122,783 shares in treasury ................... 6,307,785
Accumulated deficit ....................................... (5,426,936)
Treasury stock, at cost ................................... (52,907)
Cumulative foreign currency translation adjustment ........ (522,444)
-----------
TOTAL SHAREHOLDERS' EQUITY ................... 305,498
-----------
$ 5,374,432
===========
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Nine Months Ended
March 31,
------------------------------
1999 1998
----------- -----------
<S> <C> <C>
REVENUES
Net sales .............................. $ 5,711,803 $ 5,983,247
Other income ........................... 113,365 38,588
----------- -----------
5,825,168 6,021,835
COSTS AND EXPENSES
Cost of products sold .................. 2,521,051 2,633,660
Selling, general and administrative .... 2,300,650 3,055,682
Research and development ............... 430,544 553,708
Interest ............................... 203,389 210,941
Depreciation and amortization .......... 524,335 458,349
Foreign exchange loss .................. 29,222 15,507
----------- -----------
6,009,191 6,927,847
----------- -----------
Loss before income taxes ................. (184,023) (906,012)
Income taxes ............................. 24,500 - 0 -
----------- -----------
Net loss ................................. ($ 208,523) ($ 906,012)
=========== ===========
Net loss per common share ................ ($ .18) ($ .78)
=========== ===========
Weighted average number of common
shares outstanding ...................... 1,168,915 1,164,290
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
March 31,
------------------------------
1999 1998
----------- -----------
<S> <C> <C>
REVENUES
Net sales .............................. $ 1,853,745 $ 1,970,173
Other income ........................... 18,554 1,334
----------- -----------
1,872,299 1,971,507
COSTS AND EXPENSES
Cost of products sold .................. 841,063 884,051
Selling, general and administrative .... 795,613 1,081,236
Research and development ............... 138,562 109,159
Interest ............................... 68,213 65,904
Depreciation and amortization .......... 176,769 138,581
Foreign exchange loss .................. 9,171 1,202
----------- -----------
2,029,391 2,280,133
----------- -----------
Loss before income taxes ................. (157,092) (308,626)
Income taxes ............................. 10,500 -0-
Net loss ................................. ($ 167,592) ($ 308,626)
=========== ===========
Net loss per common share ................ ($ .14) ($ .27)
----------- ===========
Weighted average number of common
shares outstanding ...................... 1,169,694 1,164,731
----------- ===========
</TABLE>
See Notes to Consolidated Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended
March 31,
----------------------------
OPERATING ACTIVITIES: 1999 1998
----------- -----------
<S> <C> <C>
Net loss ................................................ ($ 208,523) ($ 906,012)
Adjustments to reconcile net income (loss)
to net cash provided (used) by
operating activities:
Depreciation and amortization ....................... 145,897 136,954
Goodwill amortization ............................... 108,385 101,236
Amortization-Other Intangible Assets ................ 270,053 220,159
Decrease in deferred income taxes ................... 24,500 0
Changes in operating assets and liabilities
Decrease in trade accounts receivable ............... 440,346 452,913
Decrease (increase) in inventory .................... 141,253 (217,849)
Increase in prepaid expenses and other current assets (36,422) (61,761)
Decrease (increase) in other assets ................. 17,011 14,059
Decrease in accounts payable, deposits
and accrued liabilities .......................... (354,607) (79,443)
Increase (decrease) in deferred income .............. (30,622) 8,204
----------- -----------
Net cash provided (used) by operating activities 517,271 (331,540)
INVESTING ACTIVITIES:
Purchase of property and equipment ................... (19,812) (19,638)
Capitalized software ................................. (59,052) (159,059)
----------- -----------
Net cash used by investing activities .......... (78,864) (178,697)
----------- -----------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (continued)
Nine Months Ended
March 31,
----------------------------
FINANCING ACTIVITIES: 1999 1998
----------- -----------
<S> <C> <C>
Additional costs from issuance of preferred
shares - Canadian subsidiary ........................ (3,990)
Payment on notes payable to Bank ...................... (356,791) (151,803)
Payment of long term debt ............................. (238,510) (260,661)
Proceeds from issuance of common stock-Employee
Stock Purchase Plan .................................. 3,478 4,869
----------- -----------
Net cash used by financing activities .......... (591,823) (411,585)
Effect of exchange rate changes on cash ............... 14,511 (33,466)
----------- -----------
DECREASE IN CASH
AND CASH EQUIVALENTS .................................. (138,905) (955,288)
CASH AND CASH EQUIVALENTS-BEGINNING ..................... 258,007 1,367,703
----------- -----------
CASH AND CASH EQUIVALENTS-ENDING ........................ $ 119,102 $ 412,415
=========== ===========
Supplemental disclosure of cash paid
Interest .............................................. $ 201,978 $ 226,230
</TABLE>
See Notes to Consolidated Financial Statements
<PAGE>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1999
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 10-KSB and Regulation S-B. 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, 1999 are not necessarily indicative of the
results that may be expected for the year ending June 30, 1999. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Company's annual report or Form 10-KSB for the year
ended June 30, 1998.
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.
NOTE C - COMPREHENSIVE INCOME
In the first quarter of fiscal 1999, the Company adopted Statement of Financial
Accounting Standards (SFAS) No. 130, "Reporting Comprehensive Income". SFAS 130
requires disclosure of total non-stockholder changes in equity in interim
periods and additional disclosures of the components of non-stockholder changes
in equity on an annual basis. Total non-stockholder changes in equity includes
all changes in equity during a period except those resulting from fiscal
investments by and distributions to stockholders. Total comprehensive income for
the third quarter and nine months of Fiscal 1999 and 1998 was as follows:
<PAGE>
PHOTON TECHNOLOGY INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS cont'd
March 31, 1999
NOTE C - COMPREHENSIVE INCOME cont'd.
<TABLE>
<CAPTION>
Nine Months Ended
March 31
------------------------
1999 1998
--------- ---------
<S> <C> <C>
Net loss .............................. ($208,523) ($906,012)
Foreign currency translation adjustment 16,913 (12,603)
--------- ---------
Total comprehensive income (loss) ..... ($191,610) ($918,615)
<CAPTION>
Three Months Ended
March 31
------------------------
1999 1998
--------- ---------
<S> <C> <C>
Net loss ($167,592) ($308,626)
Foreign currency translation adjustment (49,877) (23,063)
---------- ----------
Total comprehensive income (loss) ($217,469) ($331,689)
</TABLE>
<PAGE>
ITEM 2 -- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
- ---------------------
Net sales for the quarter and the nine months ended March 31, 1999 of $1.9
million and $5.7 million, respectively, decreased $116,000 or 5.9% and $271,000
or 4.5%, respectively, compared to the same periods of fiscal 1998. The
decreases 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, 1999 of $1.9
million and $5.8 million, respectively, which include net sales and other
income, decreased $99,000 or 5.0% and $197,000 or 3.3%, respectively, compared
to the same periods of fiscal 1998. This performance reflects both the lower net
sales impact which was offset by an increase in other income. Other income for
the first nine months of fiscal 1999 increased by $75,000 or 193.8% primarily
due to revenue recognition of certain customer deposits.
Cost of products sold for the third quarter of fiscal 1999 was $841,000 or 45.3%
of net sales, which compares to $884,000 or 45.0% of net sales for the same
period of fiscal 1998. The decrease of $43,000 or 4.9% was primarily due to
decreased net sales and costs related to plant production operation and shipping
costs. Cost of products sold for the nine months ended March 31, 1999 was $2.5
million, or 44.1% of net sales compared to $2.6 million or 44.0% of net sales
for the same period of fiscal 1998.
Selling (including marketing), general and administrative expenses of $796,000
for the third quarter and $2.3 million for the nine months ended March 31, 1999
decreased $285,000 or 26.3% and $755,000 or 24.7%, respectively, for the
comparable periods of fiscal 1998. These expenses as a percentage of net sales
decreased from 54.9% to 42.9% in the third quarter and from 51.1% to 40.3% for
the nine-month period. The decrease in selling, general and administrative
expenses as a percentage of net sales in the third quarter and the nine-month
period primarily reflect decreased selling and marketing expenses for
advertising and trade shows. These costs are expected to remain level for the
remainder of the fiscal year.
Research and development expenses for the third quarter and nine months ended
March 31, 1999 were $139,000 or 7.5% of net sales and $431,000 or 7.5% of net
sales, respectively. In comparison to the prior fiscal year, these expenses were
$109,000 or 5.5% net sales for the quarter and $554,000 or 9.3% of net sales for
the nine month period. An additional $59,000 of software development expenses,
which 1.0% of net sales, was capitalized for the nine months ended March 31,
1999 as compared to $159,000 for the same prior year period. These expenses are
due to the level of project activity for new products.
Interest expense for the nine months ended March 31, 1999 of $203,000 decreased
$8,000 or 3.6% in comparison to the prior fiscal year. Interest expense for the
third quarter of $68,000 increased $2,000 or 3.5% in comparison to the same
period in fiscal 1998.
Depreciation and amortization of $177,000 for the third quarter and $524,000 for
the nine months ended March 31, 1999 increased $38,000 or 27.3% and $66,000 or
14.4%, respectively, in comparison to the same periods in fiscal 1998. This
increase was primarily due to the impact of higher amortization of software
development costs.
<PAGE>
ITEM 2 -- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
RESULTS OF OPERATIONS (continued)
- ---------------------------------
Foreign exchange losses for the quarter and nine months ended March 31, 1999 of
$9,000 and $29,000, respectively, compares to losses of $1,000 and $16,000 in
the prior fiscal year due to a mix of transactional activity.
Income taxes for the third quarter and nine months ended March 31, 1999 were
$10,000 and $25,000, respectively, resulting from the recognition of certain
deferred tax assets that will expire in the current fiscal year. No tax
provision has been provided in the prior fiscal periods as a result of the
expected applications of the net losses carrying forward from prior periods.
The Company reported a net loss of $168,000 for third quarter, compared to a net
loss of $309,000 for the third quarter of the prior fiscal year. For the nine
months ended March 31, 1999 the net loss was $209,000 in comparison to a net
loss of $906,000 for the same period in fiscal 1998. The reduction of selling,
general and administrative expenses, and research and development expenses
discussed above were major impacts on income.
The resulting loss per share performance based on the number of common shares
outstanding for each period was $(.14) and $(.18) per share for the quarter and
nine months ended March 31, 1999, in comparison to $(.27) and $(.78) loss per
share for the same prior year period.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The working capital of the Company at March 31, 1999 was $1,671,000 compared to
$1,536,000 at June 30,1998; an increase of $135,000 or 8.8%.
Current assets of $3,265,000 decreased $684,000 or 17.3% from June 30, 1998.
This change primarily reflects decreases of $139,000, $441,000 and $141,000 in
cash, accounts receivable, and inventory, respectively. The decreases were
53.8%, 25.8% and 7.3% of the respective balances at June 30, 1998. The inventory
balance represented 5.7 months of sales in inventory, which is comparable to the
5.6 months of sales in inventory at the end of the preceding year. The trade
accounts receivable balance of $1.3 million represents 1.96 months of sales in
comparison to 2.53 months of sales at June 30, 1998.
Current liabilities of $1,594,000 decreased $819,000 or 33.9% in comparison to
the balance as of June 30, 1998. This decrease was due principally to reductions
in bank indebtedness, current portion of long term debt, trade accounts payable
and customer deposits.
<PAGE>
ITEM 2 -- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
LIQUIDITY AND CAPITAL RESOURCES (continued)
- -------------------------------------------
As of December 15, 1998 the Company renewed its working capital line of credit
with Silicon Valley Bank of California for $2,000,000. This credit facility has
a one (1) year term (expiring December 14, 1999) and carries an interest rate at
the prime rate plus 1.5% (approximately 9.25% at March 31, 1999). 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 the assets of
the Company, its wholly owned Canadian subsidiary and United Kingdom branch. 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 ninety (90) days from
invoice date and 90% against insured or letter of credit domestic and foreign
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, 1999 was
$661,541.
Bank indebtedness also includes the outstanding balance of $75,343 US (137,488
DM) at March 31, 1999 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
(2) 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 Venture
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.
In July 1994, documents were fully executed between the "ODC" and the Company
for a term loan facility in the amounts of $500,000 Canadian dollars. The loan
credit facility was established to allow production requests for equipment,
inventory and training expenditures associated with moving the production
operation from New Jersey plant to the London, Ontario plant. The balance
outstanding as of March 31, 1999 on the ODC fixed loan was $79,409 Canadian
dollars ($52,529 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%.
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,
referred to Note H to the Financial Statements in Form
<PAGE>
ITEM 2 -- MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
LIQUIDITY AND CAPITAL RESOURCES (continued)
- -------------------------------------------
10-KSB). The importance of this financing is that it allows the Company to
pursue its growth goals. The Company will use the financing for new product
introduction and to expand it sales and marketing coverage.
If the Company has to repay some of the short term maturing debt, it will lose a
substantial portion of its financial resources to pursue its current 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.
YEAR 2000 ISSUE
- ---------------
Like other companies, financial and business organizations and individuals
around the world, the Company could be adversely affected if the computer
systems it uses and those used by other third parties on which it relies do not
properly process and calculate date-related information and data from and after
January 1, 2000. This is commonly known as the "Year 2000 issue". Management is
assessing its computer systems and the systems compliance issues of other third
parties on which it relies.
Based on the Company's assessment to date, the Company believes that
substantially all of its products are Year 2000 compliant. However, the Company
faces risks to the extent that suppliers of products, services and systems
purchased by the Company and others with whom the Company transacts business on
a worldwide basis do not have business systems or products that comply with Year
2000 requirements. To the extent that the Company is not able to test the
technology provided by third party hardware or software vendors, the Company is
in the process of obtaining assurances that their systems are Year 2000
compliant. In the event any such third parties cannot, in a timely manner,
provide the Company with products, services or systems that meet the Year 2000
requirements, the Company's operating results could be materially affected.
Although the Company believes that the cost of Year 2000 modifications for both
internal use software and systems or the Company's products are not material,
there can be no assurance that various factors relating to the Year 2000
compliance issues will not have a material adverse effect on the Company's
business, operating results or financial position.
<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.
- -------------------------------------------------------------
Not Applicable
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 Issuer
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
PHOTON TECHNOLOGY INTERNATIONAL, INC.
Date: May 12, 1999 By: /s/ Charles G. Marianik
------------------------
Charles G. Marianik
President, Chief Executive Officer
and Director
(Principal Executive Officer)
Date: May 12, 1999 By: /s/ William J. Hiltner, III
---------------------------
William J. Hiltner, III
Corporate Controller
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> MAR-31-1999
<CASH> 119,102
<SECURITIES> 0
<RECEIVABLES> 1,313,451
<ALLOWANCES> (48,757)
<INVENTORY> 1,598,872
<CURRENT-ASSETS> 3,265,241
<PP&E> 2,540,935
<DEPRECIATION> 1,894,510
<TOTAL-ASSETS> 5,374,432
<CURRENT-LIABILITIES> 1,594,328
<BONDS> 1,594,328
1,958,147
0
<COMMON> 6,307,785
<OTHER-SE> (6,002,287)
<TOTAL-LIABILITY-AND-EQUITY> 5,374,432
<SALES> 5,711,803
<TOTAL-REVENUES> 5,825,168
<CGS> 2,521,051
<TOTAL-COSTS> 2,521,021
<OTHER-EXPENSES> 3,284,751
<LOSS-PROVISION> 17,089
<INTEREST-EXPENSE> 203,389
<INCOME-PRETAX> (184,023)
<INCOME-TAX> 24,500
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (208,523)
<EPS-PRIMARY> (.18)
<EPS-DILUTED> 0
</TABLE>
