UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Quarterly Report Under Section 13
or 15 (d) of the Securities
Exchange Act of 1934
_________________________________
For the Quarter Ended
June 30, 1996 Commission File Number 0-16764
- --------------------- -------------------------------
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 36-3535958
- --------------------- --------------------------
State or other IRS Employer Identification
jurisdiction of Number
incorporation or
organization
1300 E. Woodfield Road, Suite 312 Schaumburg, Illinois 60173
- --------------------------------- --------------------------
Address of principal City, State, Zip Code
executive offices
Registrant's telephone number: (847) 240-6200
---------------------------
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.
(1) Yes x No
--- ---
(2) Yes x No
--- ---
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
FORM 10-Q
---------
FOR THE QUARTER ENDED JUNE 30, 1996
-----------------------------------
PART I - FINANCIAL INFORMATION
Item 1.
- -------
Index to Financial Statements
Balance Sheets
June 30, 1996 (unaudited)
December 31, 1995
Statements of Revenue and Expenses (unaudited)
For the three months ended June 30, 1996
For the three months ended June 30, 1995
For the six months ended June 30, 1996
For the six months ended June 30, 1995
Statements of Changes in Partners' Equity
For the six months ended June 30, 1996
(unaudited)
Statements of Cash Flows (unaudited)
For the six months ended June 30, 1996
For the six months ended June 30, 1995
Notes to Financial Statements (unaudited)
Item 2.
- -------
Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II - OTHER INFORMATION
Items 1-6.
- ----------
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
BALANCE SHEETS
--------------
June 30, 1996 - Unaudited
-------------------------
Liquidating Continuing
Limited Limited
Partners Partners Total
--------- ----------- ---------
ASSETS
- ------
Cash and cash equivalents $1,411,264 $2,611,512 $4,022,776
Net investment in direct
financing leases 70,687 153,271 223,958
Diverted and other assets,
net 149,907 242,110 392,017
Investment in foreclosed
properties, net 744,352 1,202,174 1,946,526
---------- ---------- ----------
$2,376,210 $4,209,067 $6,585,277
========== ========== ==========
LIABILITIES AND PARTNERS' EQUITY
- --------------------------------
Accounts payable and
accrued expenses $ 86,572 $ 145,914 $ 232,486
Lessee rental deposits 171,691 295,663 467,354
Due to management company 70 112 182
---------- --------- ----------
Total liabilities 258,333 441,689 700,022
Total partners' equity 2,117,877 3,767,378 5,885,255
---------- ---------- ----------
$2,376,210 $4,209,067 $6,585,277
========== ========== ==========
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
BALANCE SHEETS
--------------
December 31, 1995
-----------------
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- --------- -----------
ASSETS
- ------
Cash and cash equivalents $1,348,281 $2,443,281 $3,791,562
Net investment in direct
financing leases 147,213 369,781 516,994
Diverted and other assets,
net 149,907 242,110 392,017
Investment in foreclosed
properties, net 745,854 1,204,602 1,950,456
Restricted cash 43,130 69,657 112,787
---------- ---------- -----------
$2,434,385 $4,329,431 $ 6,763,816
========== ========== ===========
LIABILITIES AND PARTNERS' EQUITY
- --------------------------------
Accounts payable and
accrued expenses $ 133,794 $ 217,322 $ 351,116
Lessee rental deposits 174,492 301,773 476,265
Due to management company 67 84 151
---------- ---------- -----------
Total liabilities 308,353 519,179 827,532
Total partners' equity 2,126,032 3,810,252 5,936,284
---------- ---------- -----------
$2,434,385 $4,329,431 $6,763,816
========== ========== ===========
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the three months ended June 30, 1996
----------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ---------- ---------
Revenue:
Lease income $ 5,450 $ 15,001 $ 20,451
Interest income 22,933 37,057 59,990
Rental income 33,217 53,647 86,864
-------- --------- ---------
61,600 105,705 167,305
======== ========= =========
Expenses:
Management fees-New Era 70,428 116,834 187,262
General Partner's
expense reimbursement 9,909 16,003 25,912
Professional fees 24,849 40,132 64,981
Other operating expenses 1,651 4,087 5,738
Credit for lease losses (65,008) (134,992) (200,000)
-------- --------- ---------
41,829 42,064 83,893
-------- --------- ---------
Net earnings $ 19,771 $ 63,641 $ 83,412
======== ========= =========
Net earnings -
General Partner $ 198 $ 636 $ 834
======== ========= =========
Net earnings -
Limited Partners $ 19,573 $ 63,005 $ 82,578
======== ========= =========
Net earnings per Limited
Partnership Unit $ .51 $ 1.02
====== ======
Weighted average number
of Limited Partnership
Units outstanding 38,197 61,696
====== ======
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the three months ended June 30, 1995
----------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ---------- ---------
Revenue:
Lease income $ 26,294 $ 57,716 $ 84,010
Interest income 15,010 24,260 39,270
Rental income 31,441 50,779 82,220
-------- -------- ---------
72,745 132,755 205,500
-------- -------- ---------
Expenses:
Management fees-New Era 67,819 112,491 180,310
General Partner's
expense reimbursement 26,341 42,543 68,884
Professional fees 71,655 117,853 189,508
Other operating expenses 7,998 16,577 24,575
Credit for lease losses (57,360) (92,640) (150,000)
-------- -------- ---------
116,453 196,824 313,277
-------- -------- ---------
Net loss $(43,708) $(64,069) $(107,777)
======== ======== =========
Net loss -
General Partner $ (437) $ (641) $ (1,078)
======== ======== =========
Net loss -
Limited Partners $(43,271) $(63,428) $(106,699)
======== ======== =========
Net loss per Limited
Partnership Unit $(1.13) $ (1.03)
====== =======
Weighted average number
of Limited Partnership Units
outstanding 38,197 61,696
====== =======
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the six months ended June 30, 1996
--------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ---------- ---------
Revenue:
Lease income $ 14,219 $ 34,763 $ 48,982
Interest income 38,822 62,735 101,557
Rental income 64,650 104,414 169,064
-------- -------- ---------
117,691 201,912 319,603
-------- -------- ---------
Expenses:
Management fees-New Era 140,687 234,009 374,696
General Partner's
expense reimbursement 35,678 57,622 93,300
Professional fees 62,974 101,984 164,958
Other operating expenses 8,875 17,107 25,982
Credit for lease losses (122,368) (227,632) (350,000)
-------- -------- ---------
125,846 183,090 308,936
-------- -------- ---------
Net earnings (loss) $ (8,155) $ 18,822 $ 10,667
========= ========= =========
Net earnings (loss) -
General Partner $ (82) $ 188 $ 106
========= ========= =========
Net earnings (loss) -
Limited Partners $ (8,073) $ 18,634 $ 10,561
========= ========= =========
Net earnings (loss) per
Limited Partnership Unit $ (.21) $ .30
====== =======
Weighted average number
of Limited Partnership
Units outstanding 38,197 61,696
====== =======
See accompanying notes to financial statements.
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
STATEMENTS OF REVENUE AND EXPENSES
----------------------------------
For the six months ended June 30, 1995
--------------------------------------
(Unaudited)
Liquidating Continuing
Limited Limited
Partners Partners Total
---------- ---------- ---------
Revenue:
Lease income $ 68,623 $ 142,306 $ 210,929
Interest income 26,753 44,336 71,089
Rental income 31,441 50,779 82,220
--------- --------- ---------
126,817 237,421 364,238
--------- --------- ---------
Expenses:
Management fees-New Era 151,858 253,664 405,522
General Partner's
expense reimbursement 32,286 52,145 84,431
Professional fees 110,619 182,818 293,437
Other operating expenses 12,155 24,030 36,185
Credit for lease losses (114,720) (185,280) (300,000)
--------- --------- ---------
192,198 327,377 519,575
--------- --------- ---------
Net loss $ (65,381) $ (89,956) $(155,337)
========= ========= =========
Net loss -
General Partner $ (654) $ (900) $ (1,554)
========= ========= =========
Net loss -
Limited Partners $ (64,727) $ (89,056) $(153,783)
========= ========= =========
Net loss per Limited
Partnership Unit $(1.69) $(1.44)
====== =======
Weighted average number
of Limited Partnership Units
outstanding 38,197 61,696
====== =======
See accompanying notes to financial statements.
<PAGE>
<TABLE>
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
STATEMENT OF CHANGES IN PARTNERS' EQUITY
----------------------------------------
(Unaudited)
<CAPTION>
Liquidating Continuing
General Limited Limited Total
Partner's Partners' Partners' Partners'
Equity Equity Equity Equity
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Balance, December 31, 1995 $(113,423)* $2,164,949 $3,884,758 $5,936,284
Distributions to partners
(Note 3) - - (61,696) (61,696)
Net earnings (loss) 106 (8,073) 18,634 10,667
Allocation of General
Partner's equity 113,317 (38,999) (74,318) -
--------- ---------- ---------- ----------
Balance, June 30, 1996 $ - $2,117,877 $3,767,378 $5,885,255
========= ========== ========== ==========
<FN>
* Balance as previously reported was $0 due to allocation of $38,917 and $74,506 to Liquidating
and Continuing Limited Partners' Equity, respectively.
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
STATEMENTS OF CASH FLOWS
-------------------------
For the six months ended June 30, 1996
--------------------------------------
(Unaudited)
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ----------- -------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $ (8,155) $ 18,822 $ 10,667
Adjustments to reconcile net earnings
(loss) to net cash used in operating
activities:
Credit for lease losses (122,368) (227,632) (350,000)
Changes in assets and liabilities:
Accounts payable and accrued
expenses (47,222) (71,408) (118,630)
Lessee rental deposits (2,801) (6,110) (8,911)
Due to management company 3 28 31
---------- ---------- ------------
(180,543) (286,300) (466,843)
---------- ---------- ------------
Cash flows from investing activities:
Principal collections on leases 198,894 444,142 643,036
Release of restricted cash 43,130 69,657 112,787
Recoveries on foreclosed property 1,502 2,428 3,930
---------- ---------- ------------
243,526 516,227 759,753
---------- ---------- ------------
Cash flows from financing activities:
Distributions to Limited Partners (a) - (61,696) (61,696)
---------- ---------- ------------
- (61,696) (61,696)
---------- ---------- ------------
Net increase in cash and
cash equivalents 62,983 168,231 231,214
Cash and cash equivalents:
Beginning of year $1,348,281 2,443,281 3,791,562
---------- ---------- ------------
End of second quarter $1,411,264 $2,611,512 $4,022,776
========== ========== ==========
<FN>
(a) Distributions during the period were $1.00 per unit for Continuing Limited Partners (see Note 3).
<FN>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
<TABLE>
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
STATEMENTS OF CASH FLOWS
------------------------
For the six months ended June 30, 1995
--------------------------------------
(Unaudited)
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ----------- -------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (65,381) $ (89,956) $ (155,337)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Credit for lease losses (114,720) (185,280) (300,000)
Changes in assets and liabilities:
Accounts payable and accrued
expenses (36,356) (68,180) (104,536)
Lessee rental deposits 7,408 17,522 24,930
Due to management company (23) (273) (296)
---------- ---------- -----------
(209,072) (326,167) (535,239)
---------- ---------- -----------
Cash flows from investing activities:
Principal collections on leases 466,543 880,284 1,346,827
Distribution of diverted and
other assets 55,448 89,554 145,002
Distribution of Datronic assets 10,670 17,234 27,904
Repayments of commercial lease paper 552 892 1,444
Net proceeds from foreclosed properties 20,754 33,519 54,273
---------- ---------- -----------
553,967 1,021,483 1,575,450
---------- ---------- -----------
Cash flows from financing activities:
Distributions to Limited Partners (a) (175,111) (540,113) (715,224)
Distributions to General Partner (5,367) (12,716) (18,083)
---------- ---------- -----------
(180,478) (552,829) (733,307)
---------- ---------- -----------
Net increase in cash and
cash equivalents 164,417 142,487 306,904
---------- ---------- -----------
Cash and cash equivalents:
Beginning of year 1,015,656 2,136,628 3,152,284
---------- ---------- -----------
End of second quarter $1,180,073 $2,279,115 $3,459,188
========== ========== ===========
<FN>
(a)Distributions during the period were $4.58 per unit for Liquidating Limited Partners and $8.75
per unit for Continuing Limited Partners.
<FN>
See accompanying notes to financial statements.
</TABLE>
PAGE
<PAGE>
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
----------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
June 30, 1996
-------------
(Unaudited)
NOTE 1 - ORGANIZATION:
- ----------------------
Datronic Equipment Income Fund XVI, L.P., a Delaware Limited
Partnership (the "Partnership"), was formed on April 21, 1987 for
the purpose of acquiring and leasing both high-and low-technology
equipment. Reference is made to Notes 4, 6, 7 and 8 to the
Partnership's financial statements included in the 1995 Form 10-K
for a discussion of the alleged diversion of Partnership assets in
1991 and 1992 and the subsequent litigation and settlement, change
in general partner, new classes of limited partners established,
and amendments to the Partnership Agreement which occurred.
NOTE 2 - BASIS OF FINANCIAL STATEMENTS:
- ---------------------------------------
The accompanying financial statements should be read in conjunction
with the Partnership's financial statements included in the 1995
Form 10-K. The financial information furnished herein is unaudited
but in the opinion of Management includes all adjustments necessary
(all of which are normal recurring adjustments) for a fair
presentation of financial condition and results of operations. See
Note 3 to the Partnership's financial statements included in the
1995 Form 10-K.
NOTE 3 - LIMITED PARTNERSHIP DISTRIBUTIONS:
- -------------------------------------------
Distributions to Liquidating Limited Partners were suspended after
payment of the April 1, 1995 distribution. Distributions to
Continuing Limited Partners were suspended after payment of the
January 1, 1996 distribution.
PART I
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
- -----------------------------------------------------------
The following discussion and analysis of liquidity and capital
resources covers material changes in the Partnership's financial
condition from December 31, 1995 through June 30, 1996. The
discussion and analysis of results of operations is for the three
and six month periods ended June 30, 1996 as compared to the
corresponding periods in 1995.
Financial Condition, Liquidity and Capital Resources
- ----------------------------------------------------
During the six months ended June 30, 1996, Partnership assets were
converted to cash which was used to pay Partnership operating
expenses and the January 1, 1996 distribution to the Continuing
Limited Partners and to ensure that sufficient cash will be
available to pursue pending litigation and liquidate the
Partnership in an orderly manner.
Net investment in direct financing leases decreased approximately
$293,000 during the six months ended June 30, 1996 primarily due to
principal collections of approximately $643,000 partially offset by
a credit for lease losses of $350,000.
Restricted cash of approximately $113,000 has been included in
cash and cash equivalents due to the removal of claims against such
cash (see Part II, Item 1 - Legal Proceedings). This cash was
repaid to the Partnership with interest in June 1996.
Accounts payable and accrued expenses decreased approximately
$119,000 during the six months ended June 30, 1996 primarily due to
payment of legal fees and carrying costs on foreclosed properties.
In the aggregate, partners' equity decreased approximately $51,000
during the six months ended June 30, 1996 due to distributions to
Continuing Limited Partners of approximately $62,000, partially
offset by net earnings of approximately $11,000.
During the six months ended June 30, 1996, the Partnership's
operating activities resulted in an approximate use of $467,000 of
cash. This was due principally to decreases in accounts payable
and security deposits of approximately $128,000 and a non-cash
credit for lease losses of $350,000 partially offset by net earning
as of approximately $11,000. During the period, cash flows from
investing activities aggregated approximately $760,000 due
primarily to principal collections on leases of approximately
$643,000 and the availability of restricted cash of $113,000. Cash
flows used for financing activities of approximately $62,000
consisted of a distributions to the Continuing Limited Partners.
The Partnership's principal source of liquidity on a short-term
basis is expected to be cash on hand, cash receipts from lessees
under leases owned by the Partnership, rental proceeds from
foreclosed properties and interest income. The Partnership's
sources of liquidity on a long-term basis are expected to include
cash on hand, rental proceeds from foreclosed properties and
proceeds from the sale of other assets of the Partnership
including, without limitation, foreclosed properties, Datronic
assets, and diverted and other assets. Management believes that
the Partnership's sources of liquidity in the short and long-term
are sufficient to meet operating cash obligations. Distributions
to the Liquidating Limited Partners were suspended after the April
1, 1995 distribution and distributions to the Continuing Limited
Partners were suspended after the January 1, 1996 distribution.
Distributions were suspended to ensure that sufficient cash will be
available to pursue recoveries under pending litigation with the
Partnership's former accountants and to liquidate the Partnership
in an orderly manner.
The continued operation and eventual liquidation of the Partnership
involves numerous complex issues which have to be resolved. These
issues relate to the timing and realizability of lease-related
assets, diverted and other assets, Datronic assets, litigation and
the liquidation of the other Datronic Partnerships (see Notes 4, 6
and 9 to the financial statements included in the 1995 Form 10-K).
These issues make it difficult to predict the time and costs
necessary to operate and liquidate the Partnership in an orderly
manner. As a result of these uncertainties, it is not possible to
predict the timing and availability of cash for future
distributions to Limited Partners. However, it is likely that the
amount of future distributions, if any, to the Limited Partners
will ultimately be significantly less than the amount of Partner's
Equity reflected in the June 30, 1996 Balance Sheets (see financial
statements included in Item 1).
Results of Operations
- ---------------------
Lease income decreased approximately $64,000 and $162,000 for the
three and six month periods ended June 30, 1996 as compared to the
corresponding periods in 1995 primarily due to declining lease
portfolios.
Interest income increased approximately $21,000 and $30,000 for the
three and six month periods ended June 30, 1996 as compared to the
corresponding periods in 1995. This was primarily due to
recognition in the second quarter of 1996 of approximately $18,000
of interest previously earned on restricted cash balances as well
as additional interest earned due to higher cash balances.
Rental income increased approximately $5,000 and $87,000 for the
three and six month periods ended June 30, 1996 as compared to the
corresponding periods in 1995. This was primarily due to the
recognition of rental income on foreclosed properties subsequent to
March 1995 as rental income. Prior to April 1995, rental income was
credited to the investment in foreclosed properties, net. See Note
10 to the Partnership's financial statements included in the 1995
Form 10-K.
Management fees-New Era represent amounts paid New Era for managing
the Partnership on a day-to-day basis. These fees amounted to
approximately $187,000 and $375,000 for the three and six months
ended June 30, 1996 as compared to $180,000 and $406,000 for the
same periods in 1995. See Note 8 to the Partnership's financial
statements included in the 1995 Form 10-K.
The General Partner's expense reimbursement represents the amount
paid to LRC in excess of LRC's 1% share of cash flow available for
distribution. Total amounts paid to LRC are primarily a function
of the amount of time LRC spends on the activities of the
Partnership and the timing of certain LRC expenses. Total amounts
paid to LRC for the three and six month periods ended June 30, 1996
were approximately $26,000 and $93,000 (all of which represents
General Partner's expense reimbursement) as compared to
approximately $74,000 and $102,000 ($69,000 and $84,000,
respectively, represents the General Partner's expense
reimbursement and $5,000 and $18,000, respectively, represents
LRC's 1% share of cash flow available for distribution) for the
corresponding periods ended June 30, 1995. See Note 7 to the
Partnership's financial statements included in the 1995 Form 10-K.
Professional fees decreased approximately $125,000 and $128,000 for
the three and six month periods ended June 30, 1996 as compared to
the corresponding periods in 1995 primarily due to decreased legal
fees relating to causes of action, audit fees, and collection fees.
The credit for lease losses reflects Management's ongoing
assessment of potential losses inherent in the lease portfolios and
actual lease collections on certain leases in excess of those
anticipated in prior years.
<PAGE>
PART II - OTHER INFORMATION
- ---------------------------
ITEM 1. LEGAL PROCEEDINGS
- --------------------------
Reference is made to Item 3 - Legal Proceedings in the
Partnership's
December 31, 1995 Form 10-K for a discussion of material legal
proceedings involving the Partnership.
Reference is made to Part II, Item 1 - Legal Proceedings in the
Partnership's March 31, 1996 Form 10-Q for a discussion of legal
proceedings involving claims against restricted cash and diverted
and other assets.
ITEM 2. CHANGES IN SECURITIES
- ------------------------------
None.
ITEM 3.
- -------
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- ------------------------------------------------------------
None.
ITEM 5.
- -------
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -----------------------------------------
(a) Exhibits
- -------------
See Exhibit Index.
(b) Reports on Form 8-K
- ------------------------
None.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized, on the 12th day of
August 1996.
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
Registrant
By: DONALD D. TORISKY
Donald D. Torisky
Chairman and Chief Executive Officer
Lease Resolution Corporation
General Partner of
Datronic Equipment Income Fund XVI, L.P.
By: DOUGLAS E. VAN SCOY
Douglas E. Van Scoy
Chief Financial Officer and Director
New Era Funding Corp.
Managing Agent of
Datronic Equipment Income Fund XVI, L.P.
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
27 Financial Data Schedule, which is
submitted electronically to the
Securities and Exchange Commission
for Information only and not filed.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Balance
Sheet and the Statements of Revenue and Expenses and is qualified in its
entirety by reference to such Report on Form 10-Q.
</LEGEND>
<CIK> 0000814323
<NAME> DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 4,022,776
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 6,585,277
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 5,885,255
<TOTAL-LIABILITY-AND-EQUITY> 6,585,277
<SALES> 0
<TOTAL-REVENUES> 319,603
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 25,982
<LOSS-PROVISION> (350,000)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,667
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
