<PAGE> 1
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
September 30, 1997 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> 2
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1997
<TABLE>
PART I - FINANCIAL INFORMATION
<S> <C>
Item 1.
Index to Financial Statements
Balance Sheets
September 30, 1997 (unaudited) 3
December 31, 1996 4
Statements of Revenue and Expenses (unaudited)
For the three months ended September 30, 1997 5
For the three months ended September 30, 1996 6
For the nine months ended September 30, 1997 7
For the nine months ended September 30, 1996 8
Statements of Changes in Partners' Equity
For the nine months ended September 30, 1997
(unaudited) 9
Statements of Cash Flows (unaudited)
For the nine months ended September 30, 1997 10
For the nine months ended September 30, 1996 11
Notes to Financial Statements (unaudited) 12
Item 2.
Management's Discussion and Analysis of
Financial Condition and Results of Operations 13 - 15
PART II - OTHER INFORMATION
Items 1-6. 16
</TABLE>
2
<PAGE> 3
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
BALANCE SHEETS
September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
ASSETS
- ------
Cash and cash equivalents $ 944,045 $1,938,507 $2,882,552
Net investment in direct
financing leases - - -
Investment in foreclosed
properties, net 733,541 1,184,715 1,918,256
Diverted and other assets, net 140,676 227,201 367,877
Datronic assets, net - - -
---------- ---------- ----------
$1,818,262 $3,350,423 $5,168,685
========== ========== ==========
LIABILITIES AND PARTNERS' EQUITY
- --------------------------------
Accounts payable and
accrued expenses $ 53,151 $ 91,400 $ 144,551
Lessee rental deposits 25,415 42,124 67,539
---------- ---------- ----------
Total liabilities 78,566 133,524 212,090
Total partners' equity 1,739,696 3,216,899 4,956,595
---------- ---------- ----------
$1,818,262 $3,350,423 $5,168,685
========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 4
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
BALANCE SHEETS
December 31, 1996
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
ASSETS
- ------
Cash and cash equivalents $1,065,965 $2,093,544 $3,159,509
Due from management company 12,826 21,678 34,504
Net investment in direct
financing leases 2,520 38,959 41,479
Diverted and other assets, net 140,676 227,201 367,877
Investment in foreclosed
properties, net 740,883 1,196,573 1,937,456
Datronic assets, net - - -
---------- ---------- ----------
$1,962,870 $3,577,955 $5,540,825
========== ========== ==========
LIABILITIES AND PARTNERS' EQUITY
- --------------------------------
Accounts payable and
accrued expenses $ 104,052 $ 174,295 $ 278,347
Lessee rental deposits 52,777 96,042 148,819
---------- ---------- ----------
Total liabilities 156,829 270,337 427,166
Total partners' equity 1,806,041 3,307,618 5,113,659
---------- ---------- ----------
$1,962,870 $3,577,955 $5,540,825
========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the three months ended September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
--------- ---------- ---------
<S> <C> <C> <C>
Revenue:
Lease income $ 3,546 $ 7,026 $ 10,572
Interest income 12,651 23,274 35,925
Rental income 35,848 57,896 93,744
--------- --------- ---------
52,045 88,196 140,241
--------- --------- ---------
Expenses:
General Partner's
expense reimbursement 63,544 102,840 166,384
Professional fees 37,202 60,083 97,285
Other operating expenses 3,253 5,308 8,561
Credit for lease losses (15,722) (32,808) (48,530)
--------- --------- ---------
88,277 135,423 223,700
--------- --------- ---------
Net loss $ (36,232) $ (47,227) $ (83,459)
========= ========= =========
Net loss - General Partner $ (362) $ (472) $ (834)
========= ========= =========
Net loss - Limited Partners $ (35,870) $ (46,755) $ (82,625)
========= ========= =========
Net loss per limited
partnership unit $ (0.94) $ (0.76)
========= =========
Weighted average number
of limited partnership
units outstanding 38,197 61,696
========= =========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the three months ended September 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ---------
<S> <C> <C> <C>
Revenue:
Lease income $ 6,946 $ 16,423 $ 23,369
Interest income 17,157 27,725 44,882
Rental income 35,352 57,096 92,448
----------- ---------- ---------
59,455 101,244 160,699
----------- ---------- ---------
Expenses:
General Partner's
expense reimbursement 78,389 130,194 208,583
Professional fees 61,248 100,040 161,288
Other operating expenses 7,219 12,356 19,575
Credit for lease losses (40,152) (109,848) (150,000)
----------- ---------- ---------
106,704 132,742 239,446
----------- ---------- ---------
Net loss $ (47,249) $ (31,498) $ (78,747)
=========== ========== =========
Net loss - General Partner $ (472) $ (315) $ (787)
=========== ========== =========
Net loss - Limited Partners $ (46,777) $ (31,183) $ (77,960)
=========== ========== =========
Net loss per limited
partnership unit $ (1.22) $ (.51)
=========== ==========
Weighted average number
of limited partnership
units outstanding 38,197 61,696
=========== ==========
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 7
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the nine months ended September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ----------
<S> <C> <C> <C>
Revenue:
Lease income $ 6,568 $ 17,165 $ 23,733
Interest income 38,161 68,046 106,207
Rental income 111,349 179,835 291,184
----------- ---------- ----------
156,078 265,046 421,124
----------- ---------- ----------
Expenses:
General Partner's
expense reimbursement 194,828 320,475 515,303
Professional fees 97,072 157,454 254,526
Other operating expenses 9,980 16,508 26,488
Credit for lease losses (79,457) (138,672) (218,129)
----------- ---------- ----------
222,423 355,765 578,188
----------- ---------- ----------
Net loss $ (66,345) $ (90,719) $ (157,064)
=========== ========== ==========
Net loss - General Partner $ (663) $ (907) $ (1,570)
=========== ========== ==========
Net loss - Limited Partners $ (65,682) $ (89,812) $ (155,494)
=========== ========== ==========
Net loss per limited
partnership unit $ (1.72) $ (1.46)
=========== ==========
Weighted average number
of limited partnership
units outstanding 38,197 61,696
=========== ==========
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 8
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF REVENUE AND EXPENSES
For the nine months ended September 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- ---------
<S> <C> <C> <C>
Revenue:
Lease income $ 21,165 $ 51,186 $ 72,351
Interest income 55,979 90,460 146,439
Rental income 100,002 161,510 261,512
----------- ---------- ---------
177,146 303,156 480,302
----------- ---------- ---------
Expenses:
Management fees-New Era 140,687 234,009 374,696
General Partner's
expense reimbursement 114,067 187,816 301,883
Professional fees 124,222 202,024 326,246
Other operating expenses 16,094 29,463 45,557
Credit for lease losses (162,520) (337,480) (500,000)
----------- ---------- ---------
232,550 315,832 548,382
----------- ---------- ---------
Net loss $ (55,404) $ (12,676) $ (68,080)
=========== ========== =========
Net loss - General Partner $ (554) $ (127) $ (681)
=========== ========== =========
Net loss - Limited Partners $ (54,850) $ (12,549) $ (67,399)
=========== ========== =========
Net loss per limited
partnership unit $ (1.44) $ (.20)
=========== ==========
Weighted average number
of limited partnership
units outstanding 38,197 61,696
=========== ==========
</TABLE>
See accompanying notes to financial statements.
8
<PAGE> 9
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENT OF CHANGES IN PARTNERS' EQUITY
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
General Limited Limited Total
Partner's Partners' Partners' Partners'
Equity Equity Equity Equity
----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Balance, December 31, 1996 $ (121,032)* $ 1,848,158 $3,386,533 $5,113,659
Net earnings (loss) (1,570) (65,682) (89,812) (157,064)
Allocation of General
Partner's equity 122,602 (42,780) (79,822) -
----------- ----------- ---------- ----------
Balance, September 30, 1997 $ - $ 1,739,696 $3,216,899 $4,956,595
=========== =========== ========== ==========
</TABLE>
* Balance as previously reported was $0 due to allocation of $42,117 and
$78,915 to Liquidating and Continuing Limited Partners' Equity,
respectively.
See accompanying notes to financial statements.
9
<PAGE> 10
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ---------- -----------
<S> <C> <C> <C>
Cash flows used for operating activities:
Net loss $ (66,345) $ (90,719) $ (157,064)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Credit for lease losses (79,457) (138,672) (218,129)
Changes in assets and liabilities:
Accounts payable and accrued
expenses (50,901) (82,895) (133,796)
Lessee rental deposits (27,362) (53,918) (81,280)
Due from management company 12,826 21,678 34,504
---------- ---------- ----------
(211,239) (344,526) (555,765)
---------- ---------- ----------
Cash flows from investing activities:
Principal collections on leases 81,977 177,631 259,608
Investment in foreclosed properties 7,342 11,858 19,200
---------- ---------- ----------
89,319 189,489 278,808
---------- ---------- ----------
Net decrease in cash and cash equivalents (121,920) (155,037) (276,957)
Cash and cash equivalents:
Beginning of year 1,065,965 2,093,544 3,159,509
---------- ---------- ----------
End of third quarter $ 944,045 $1,938,507 $2,882,552
========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 11
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1996
(Unaudited)
<TABLE>
<CAPTION>
Liquidating Continuing
Limited Limited
Partners Partners Total
----------- ----------- -----------
<S> <C> <C> <C>
Cash flows used for operating activities:
Net loss $ (55,404) $ (12,676) $ (68,080)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Credit for lease losses (162,520) (337,480) (500,000)
Changes in assets and liabilities:
Accounts payable and accrued
expenses (48,243) (73,009) (121,252)
Lessee rental deposits (27,228) (52,798) (80,026)
Due to management company 239 409 648
---------- ---------- ----------
(293,156) (475,554) (768,710)
---------- ---------- ----------
Cash flows from investing activities:
Principal collections on leases 298,258 634,069 932,327
Release of restricted cash 43,130 69,657 112,787
Investment in foreclosed properties 3,365 5,435 8,800
---------- ---------- ----------
344,753 709,161 1,053,914
---------- ---------- ----------
Cash flows used for financing activities:
Distributions to Limited Partners - (61,696) (61,696)
---------- ---------- ----------
- (61,696) (61,696)
---------- ---------- ----------
Net increase in cash and
cash equivalents 51,597 171,911 223,508
Cash and cash equivalents:
Beginning of year 1,348,281 2,443,281 3,791,562
---------- ---------- ----------
End of third quarter $1,399,878 $2,615,192 $4,015,070
========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 12
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
(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 3,
4, 5, and 6 to the Partnership's financial statements included in the 1996 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 1996 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.
In December 1996, the Court approved a Management Termination Agreement between
New Era Funding Corp. and Lease Resolution Corporation ("LRC"). Pursuant to
that agreement, LRC assumed day-to-day management responsibility for the
Partnership and for the related expenses incurred on its behalf retroactive to
July 1, 1996. Accordingly, management fees totaling $186,695 for the period
July 1 -September 30, 1996 originally reported as Management fees-New Era in
the Partnership's Statements of Revenue and Expenses for the three and nine
months ended September 30, 1996 have been reclassified as General Partner's
expense reimbursement. This reclassification has no effect on the
Partnership's net loss for these periods and is consistent with the manner in
which these expenses were reported for the full year in the Partnership's 1996
financial statements included in 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.
12
<PAGE> 13
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,
1996 through September 30, 1997. The discussion and analysis of results of
operations is for the three and nine months ended September 30, 1997 as
compared to the corresponding periods in 1996.
Financial Condition, Liquidity and Capital Resources
During the nine months ended September 30, 1997, Partnership assets continued
to be converted to cash which was used to, generally, pay Partnership operating
expenses and liquidate Partnership liabilities.
Net investment in direct financing leases decreased $41,000 during the nine
months ended September 30, 1997 primarily due to principal collections of
$259,000 partially offset by a credit for lease losses of $218,000.
Accounts payable and accrued expenses decreased a $134,000 during the nine
months ended September 30, 1997 primarily due to payment of accrued legal fees.
Lessee rental deposits decreased $81,000 from the return of lease deposits at
the expiration of the respective leases.
In the aggregate, partners' equity decreased $157,000 due to a net loss for the
nine months ended September 30, 1997.
During the nine months ended September 30, 1997, the Partnership's operating
activities resulted in a use of $556,000 of cash. This was due principally to
a net loss of $157,000, decreases in accounts payable and rental deposits of
$215,000 and a non-cash credit for lease losses of $218,000, partially offset
by a decrease in due from management company of $34,000. During the period,
cash flows from investing activities aggregated $279,000 relating primarily to
principal collections on leases.
The Partnership's sources of liquidity on both a long-term and short-term basis
are expected to come principally from cash-on-hand and the rental or sale of
foreclosed properties. In addition, the Partnership's sources of liquidity on
a long-term basis are expected to include proceeds from the sale of diverted
and other assets. Management believes that its sources of liquidity in the
short and long-term are sufficient to meet its operating cash obligations,
provide for the ongoing pursuit of litigation and an orderly liquidation of the
Partnership. Distributions to 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.
13
<PAGE> 14
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 Diverted and other assets, Datronic assets,
litigation and the liquidation of the other Datronic Partnerships (see Notes 3,
5 and 9 to the Partnership's financial statements included in the 1996 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 unlikely that any additional distributions will be
made until all remaining assets are liquidated and the pending litigation is
resolved. The amount of future distributions, if any, to the Limited Partners
is likely to be significantly less than the amount of partners' equity
reflected in the September 30, 1997 Balance Sheets (see the financial
statements included in Item 1).
Results of Operations
Lease income decreased $13,000 and $49,000 for the three and nine months ended
September 30, 1997 as compared to the corresponding periods in 1996 primarily
due to the decreased size of the lease portfolio.
Interest income decreased $9,000 and $40,000 for the three and nine months
ended September 30, 1997 as compared to the corresponding periods in 1996.
This was primarily due to recognition in the second quarter 1996 of $18,000 of
interest previously earned on restricted cash balances. The remaining decrease
is because of decreased cash balances in 1997.
Rental income increased $1,000 and $30,000 for the three and nine months ended
September 30, 1997 as compared to the corresponding periods in 1996, primarily
due to rental rate increases on existing leases.
Management fees-New Era represents payments to New Era Funding for managing the
day-to-day operations of the Partnership pursuant to a Management Agreement
that was terminated effective June 30, 1996. Accordingly, no management fees
were paid to New Era for any periods after that date. Management fees of
$375,000 for the nine months ended September 30, 1996 are all attributable to
the first six months of the year. Effective July 1, 1996, the General Partner,
Lease Resolution Corporation ("LRC") assumed responsibility for the day-to-day
management of the Partnership and the related expenses are included in General
Partner's expense reimbursement (see Note 8 to the financial statements
included in the 1996 Form 10-K).
The General Partner's expense reimbursement includes (i) payments to LRC for
expenses it incurred as general partner beyond those covered by its partner
distributions and (ii) effective July 1, 1996, reimbursement of additional
expenses incurred by LRC in the day-to-day management of the Partnership. The
following table summarizes all payments to LRC for the three and nine months
ended September 30, 1996 and 1997.
14
<PAGE> 15
<TABLE>
<CAPTION>
General
Expense Partner
Reimbursement Distributions Total
-------------------------------------------
<S> <C> <C> <C>
Three months ended
9/30/97 $ 166,000 $ - $ 166,000
9/30/96 208,000 - 208,000
-------------------------------------------
Increase (decrease) $ (42,000) $ - $ (42,000)
===========================================
Nine months ended
9/30/97 $ 515,000 $ - $ 515,000
9/30/96 302,000 - 302,000
-------------------------------------------
Increase (decrease) $ 213,000 $ - $ 213,000
===========================================
</TABLE>
Total payments to LRC for the three months ended September 30, 1997 decreased
$42,000 compared to last year because of staff reductions and other cost
savings associated with the management of the Partnership. These 1997 savings
were partially offset by a $60,000 premium for insurance coverage that extends
through the ultimate liquidation of the Partnership.
The nine month increase of $213,000 reflects the fact that LRC managed the
day-to-day operations of the Partnership for all three quarters through
September 30, 1997 versus only one quarter in 1996, partially offset by staff
reductions and other cost savings. The increase also includes the $60,000
insurance premium noted above and a $33,000, one-time charge for relocating the
former New Era staff to reduced office space.
Professional fees decreased $64,000 and $72,000 for the three and nine months
ended September 30, 1997 as compared to the corresponding periods in 1996. The
decrease results from reductions in legal fees for collections, audit fees and
legal fees for other matters partially offset by increased legal fees relating
to Partnership claims against former accountants and others.
Other operating expenses decreased $11,000 and $19,000 for the three and nine
months ended September 30, 1997 as compared to the corresponding periods in
1996, primarily due to decreases in freight, postage and miscellaneous
expenses.
The credit for lease losses reflects Management's ongoing assessment
of potential losses inherent in the lease portfolios and lease collections on
certain leases in excess of those anticipated in prior years.
15
<PAGE> 16
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Reference is made to Item 3 - Legal Proceedings in the Partnership's December
31, 1996 Form 10-K for a discussion of material legal proceedings involving the
Partnership.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
See Exhibit Index.
(b) Reports on Form 8-K
None.
16
<PAGE> 17
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 13th day of
November 1997.
DATRONIC EQUIPMENT INCOME FUND XVI, L.P.
Registrant
By: /s/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: /s/ROBERT P. SCHAEN
--------------------------------------------
Robert P. Schaen
Vice Chairman and Chief Financial Officer
Lease Resolution Corporation
General Partner of
Datronic Equipment Income Fund XVI, L.P.
17
<PAGE> 18
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
----------- -----------
<S> <C>
27 Financial Data Schedule, which is submitted electronically
to the Securities and Exchange Commission for Information
only and not filed.
</TABLE>
18
<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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 2,882,552
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 5,168,685
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,956,595
<TOTAL-LIABILITY-AND-EQUITY> 5,168,685
<SALES> 0
<TOTAL-REVENUES> 421,124
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 26,488
<LOSS-PROVISION> (218,129)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (157,064)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
