SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
AMENDMENT NO. 1
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended August 31, 1998
Commission File Number 0-16008
A.R.T. INTERNATIONAL INC.
(FORMERLY ARTAGRAPH REPRODUCTION TECHNOLOGY INCORPORATED)
ONTARIO, CANADA 98-0082514
5-7100 Warden Avenue, Markham, Ontario L3R 5M7
Registrant's telephone number: (905) 477-0252
Indicate by check mark whether the registrant: (1) has filled 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 __
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PART I
Notes to the Financial Statements
14. UNCERTAINTY DUE TO THE YEAR 2000 ISSUE
The Year 2000 Issue arises because many computerized systems use
two digits rather than four to identify a year. Date-sensitive
systems may recognize the year 2000 as 1900 or some other date,
resulting in errors when information-using year 2000 dates is
processed. In addition, similar problems may arise in some
systems, which use certain dates in 1999 to represent something
other than a date. The effects of the Year 2000 Issue may be
experienced before, on, or after January 1, 2000, and if not
addressed, the impact on operations and financial reporting may
range from minor errors to significant systems failure, which
could affect an entity's ability to conduct normal business
operations. It is not possible to be certain that all aspects of
the Year 2000 Issue affecting the entity, including those related
to the efforts of customers, suppliers or other third parties,
will be fully resolved.
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS
Year 2000 Compliance Readiness.
The Company is fully aware of the Year 2000 problem. A project was
setup within the Company in January 1999, staffed by senior
members of the Company. At February 28, 1999, the Company had
completed testing of its primary production and internal office
systems, which were confirmed as being Year 2000 compliant. Some
non-key reporting and administration systems are not Year 2000
compliant and the Company is determining a capital budget to
purchase replacement systems where necessary. The Company intends
to seek assurances from critical suppliers, that they too are Year
2000 compliant and where possible the Company will integrate a
test of such suppliers' compliance. The Company is confident that
its production capabilities to supply its products will not be
adversely affected by the Year 2000 issue, and if critical
suppliers are determined to be non-compliant or are not
forthcoming the Company believes it can find alternative
suppliers.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
A.R.T. INTERNATIONAL INC.
Dated: April 7, 1999
/s/ Michel van Herreweghe
-------------------------------------
By: Michel van Herreweghe
Chairman
/s/ Simon Meredith
-------------------------------------
By: Simon Meredith
President
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