UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
Commission File Number: 33-15370-D
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CUSA Technologies, Inc.
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(Exact name of the registrant as specified in charter)
Nevada 87-0439511
--------------------------- --------------------------------
State of Incorporation IRS Identification Number
986 West Atherton Drive, Salt Lake City, Utah 84123
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(Address of principle executive offices)
(801) 263-1840
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(Telephone of registrant including area code)
Check whether the Registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act during the past 12 months (or
for such shorter period that the Issuer was required to file such reports) and
(2) has been subject to such filing requirements for the past 90 days.
Yes ___X___ No ________
APPLICABLE ONLY TO ISSUER INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the Issuer filed all documents and reports required to be filed by
Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by court.
Yes _______ No ________
APPLICABLE ONLY TO CORPORATE ISSUERS
As of November 25, 1996 the Issuer had 8,928,218 shares of its common stock, par
value $0.001 per share, issued and outstanding.
<PAGE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CUSA Technologies, Inc. (the "Company"), has included the consolidated
balance sheets of the Company and its subsidiaries as of September 30, 1996
(unaudited) and June 30, 1996 (the end of the Company's most recent fiscal year)
and unaudited consolidated statements of operations and cash flows for the
three months ended September 30, 1996 and 1995 together with unaudited
condensed notes thereto.
In the opinion of management of the Company, the financial statements reflect
all adjustments, all of which are normal recurring adjustments, necessary to
fairly present the financial condition of the Company for the interim periods
presented. The financial statements included in this report on Form 10-Q should
be read in conjunction with the audited financial statements of the Company and
the notes thereto included in the annual report of the Company on form 10-K for
the year ended June 30, 1996.
<PAGE>
<TABLE>
CUSA TECHNOLOGIES, INC.
Consolidated Balance Sheets
<CAPTION>
(Unaudited)
September 30, June 30,
1996 1996
----------------- ------------------
<S> <C> <C>
Assets
Current Assets:
Cash and cash $ 171,230.00 583,080.00
equivalents
Trade accounts receivable, net of allowance for
doubtful accounts 3,610,968.00 2,987,680.00
Inventories 256,170.00 140,402.00
Prepaid expenses and other assets 600,949.00 425,148.00
Net assets of discontinued operations -- 5,081,383.00
----------------- ------------------
Total current assets 4,639,317.00 9,217,693.00
Property and equipment :
Land 297,688.00 297,688.00
Buildings and improvements 2,496,520.00 2,423,416.00
Furniture, fixtures and equipment 2,885,576.00 2,672,653.00
Other 639,642.00 668,405.00
----------------- ------------------
Total property and equipment 6,319,426.00 6,062,162.00
Less accumulated depreciation and amortization 1,568,261.00 1,371,761.00
----------------- ------------------
Net property and equipment 4,751,165.00 4,690,401.00
Equipment under capital lease obligations, net 190,316.00 233,816.00
Receivables from related parties 457,948.00 362,849.00
Software development and acquisition costs, net 1,513,923.00 1,531,158.00
Other assets 210,443.00 220,084.00
================= ==================
$ 11,763,112.00 16,256,001.00
================= ==================
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
CUSA TECHNOLOGIES, INC.
Consolidated Balance Sheets
<CAPTION>
(Unaudited)
September 30, June 30,
1996 1996
----------------- ------------------
<S> <C> <C>
Liabilities and Stockholders' Deficit
Current liabilities:
Line of credit with bank $ 1,128,063.00 891,022.00
Current installments of long-term debt 2,800,435.00 3,258,269.00
Current installments of obligations under capital leases 215,165.00 205,888.00
Accounts payable 2,188,883.00 3,823,560.00
Accrued liabilities 2,662,994.00 3,309,083.00
Customer deposits 1,737,442.00 1,690,973.00
Income taxes payable 12,676.00 18,081.00
Payables to related parties - 1,167,398.00
Deferred revenue 4,545,160.00 5,057,444.00
Net liabilities of discontinued operations 1,159,737.53 -
----------------- ----------------
Total current liabilities 16,450,555.53 19,421,718.00
liabilities
Long-term debt with related parties 2,445,000.00 2,445,000.00
Long-term debt, excluding current installments 11,565.00 430,894.00
Obligations undern capital leases, excluding current installments 149,774.00 193,977.00
----------------- ------------------
Total liabilities 19,056,894.53 22,491,589.00
Commitments and contingent liabilities - -
Stockholders' deficit:
Series A convertible preferred stock, $.001 par value;
authorized 1,500,000 shares; issued and outstanding
1,000,000 shares 1,000.00 1,000.00
Common stock, $.001 par value; authorized 25,000,000 shares;
issued and outstanding 8,917,718 shares at September 30, 1996
and 8,916,438 shares at June 30, 1996 8,918.00 8,916.00
Additional paid-in capital 10,530,307.00 10,530,308.00
Accumulated deficit (17,834,008.00) (16,775,812.00)
----------------- ------------------
Total stockholders' deficit (7,293,783.00) (6,235,588.00)
================= ==================
$ 11,763,111.53 16,256,001.00
================= ==================
</TABLE>
The accompanying notes are an integral part of these statements.
<TABLE>
CUSA TECHNOLOGIES, INC.
Consolidated Statements of Operations
(Unaudited)
Three months ended September 30,
<CAPTION>
1996 1995
----------------- -----------------
<S> <C> <C>
Net revenues:
Hardware and software sales $ 1,797,616.37 3,279,015.00
Support, maintenance and other services 4,210,892.00 3,771,491.00
Other revenue 181,493.00 216,414.00
----------------- -----------------
Total revenues 6,190,001.37 7,266,920.00
----------------- -----------------
Cost of goods sold and other direct costs:
Hardware and software 801,261.37 1,395,623.00
Support, maintenance and other services 2,756,675.00 2,209,646.00
Other 82,967.00 85,727.00
----------------- -----------------
Total cost of goods sold and other
direct costs 3,640,903.37 3,690,996.00
----------------- -----------------
Gross profit 2,549,098.00 3,575,924.00
Product development costs 601,819.00 288,456.00
Selling, general and administrative expenses 2,726,504.00 2,982,681.00
----------------- -----------------
Operating income (loss) (779,225.00) 304,787.00
Other income (expense):
Interest expense (160,712.00) (82,051.00)
Other, net (6,537.00) 1,476.00
----------------- -----------------
Income (loss) from continuing operations
before income taxes (946,474.00) 224,212.00
Income tax expense - 134,871.00
----------------- -----------------
Income (loss) from continuing operations (946,474.00) 89,341.00
Loss from discontinued operations, net of income taxes - (126,522.00)
Loss from disposal of discontinued operations, net of income taxes (81,721.00) -
================= =================
Net loss $ (1,028,195.00) (37,181.00)
================= =================
Income (loss) per common and common equivalent share :
From continuing operations $ (0.11) 0.01
From discontinued operations $ (0.01) (0.01)
Weighted average common and common equivalent shares 8,917,718.00 8,509,697.00
</TABLE>
The accompanying notes are an integral part of these financial statements.
<TABLE>
CUSA TECHNOLOGIES, INC.
Consolidated Statements of Cash Flows
(Unaudited)
Three months ended September 30,
<CAPTION>
1996 1995
---------------- ----------------
<S> <C> <C>
Cash flows from operating activities:
Income (loss) from continuing operations $ (946,474.00) 89,341.00
Adjustments to reconcile income (loss) from continuing operations
to net cash used in operating activities:
Depreciation and amortization 381,930.00 479,547.00
Provision for doubtful accounts (177,496.00) 137,245.00
Net change in current assets and liabilities:
Trade accounts receivable (445,792.00) 28,770.00
Inventories (115,768.00) 227,118.00
Prepaids expenses and other assets (175,801.00) (47,569.00)
Accounts payable and accrued liabilities (2,280,766.00) 137,751.00
Customer deposits 46,469.00 (376,395.00)
Income taxes payable (5,405.00) (20,061.00)
Deferred income taxes - 134,200.00
Deferred revenue (512,284.00) (657,034.00)
Net cash provided by (used in) ---------------- ----------------
continuing operating activities (4,231,387.00) 132,913.00
Net cash used in discontinued operations (1,490,600.47) (407,616.00)
---------------- ----------------
Net cash used in operating activities (5,721,987.47) (274,703.00)
Cash flows from investing activities:
Software development costs (124,695.00) (190,513.00)
Capital expenditures (257,264.00) (325,357.00)
Cash paid for acquisitions - (50,450.00)
Advances to related parties (95,099.00) -
Decrease in other assets 9,641.00 35,994.00
Net cash provided by (used in) investing activities of
discontinued operations
7,650,000.00 (312,371.00)
---------------- ----------------
Net cash provided by (used in) investing activities 7,182,583.00 (842,697.00)
Cash flows from financing activities:
Net borrowings under lines of credit 237,041.00 121,207.00
Repayments of obligations under capital leases (34,926.00) (46,278.00)
Repayment of long-term debt with related parties (1,167,398.00) (408,053.00)
Proceeds from long-term debt with related parties - 1,100,000.00
Issuance of common stock and exercise of stock options - 543.00
Repayments of long-term debt (877,163.00) (67,092.00)
Preferred dividend distributions (30,000.00) (30,000.00)
---------------- ----------------
Net cash provided by (used in)
financing activities (1,872,446.00) 670,327.00
Net decrease in cash (411,850.47) (447,073.00)
Cash and cash equivalents at beginning of period 583,080.00 818,883.00
================ ================
Cash and cash equivalents at end of period
$ 171,229.53 371,810.00
================ ================
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
CUSA TECHNOLOGIES, INC.
Notes to Consolidated Financial Statements
(Unaudited)
(1) Basis of Presentation
The accompanying unaudited consolidated financial statements of CUSA
Technologies, Inc. (the Company) have been prepared in accordance with generally
accepted accounting principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these
financial statements do not include all of the information and footnote
disclosures required by generally accepted accounting principles for complete
financial statements. These financial statements and footnote disclosures should
be read in conjunction with the audited consolidated financial statements and
the notes thereto included in the Company's latest report on Form 10-K for the
year ended June 30, 1996. In the opinion of management, the accompanying
unaudited consolidated financial statements contain all adjustments (consisting
of only normal recurring adjustments) necessary to fairly present the Company's
consolidated financial position as of September 30, 1996 and its consolidated
results of operations and cash flows for the three months ended September 30,
1996 and 1995. The results of operations for the three months ended September
30, 1996 may not be indicative of the results that may be expected for the year
ending June 30, 1997.
(2) Liquidity
During the three months ended September 30, 1996, the Company incurred a loss
from continuing operations of $946,474, incurred a net loss of $1,028,195, used
cash in operating activities of $5,721,987, and at September 30, 1996 had a
stockholders' deficit of $7,293,783. These losses have also resulted in
violations of certain debt covenants with the Company's primary financial
institution, which have been waived by the financial institution through
September 30, 1996. The Company is negotiating to amend such covenants to
conform to currently anticipated future operating results. Management has
formulated plans to return the Company to profitable operations and positive
cash flow. In the opinion of management, implementation of these plans will
permit the Company to meet its operating and debt cash requirements, at least
through the next fiscal year. The Company is subject to many uncertainties over
which management has limited control, any one of which could adversely affect
the Company's operating cash flows, and thus create cash flow problems for the
Company.
(3) Discontinued Operations
In June 1996, the Board of Directors of the Company committed to dispose of the
business and assets of the medical and commercial divisions. On July 2, 1996,
the Company entered into an asset purchase agreement with Physician Computer
Network, Inc. (PCN) whereby PCN agreed to acquire substantially all of the
assets and assume certain liabilities of the medical and commercial divisions.
Terms of the purchase agreement, as subsequently modified on October 15, 1996,
provided for the purchase of certain specified assets for $9,350,000, payable as
follows: 1) $4,500,000 at closing, 2) cancellation of $1,500,000 note payable to
PCN incurred on June 13, 1996, 3) $3,150,000 within five business days of
receipt of audited financial statements, and 4) $200,000 due upon transfer of
certain assets of one of the subsidiaries of the Company which were subject to a
court ordered receivership at the date of closing.
<PAGE>
Also, according to the asset purchase agreement, PCN 1) assumed the balances of
the Company's liabilities related to accounts and notes payable to Versyss,
Inc., a subsidiary of PCN, deferred software support and hardware maintenance
obligations, accrued liabilities, and customer deposits associated with the
medical and commercial divisions, and 2) assumed liability for certain real and
personal property leases of the Company with terms through October 1999.
The medical and commercial divisions have been accounted for as discontinued
operations, and accordingly, the results of their operations are segregated from
continuing operations in the accompanying statements of operations. Revenue,
operating costs and expenses, other income and expense, and income taxes of
these divisions for the three months ended September 30, 1996 and 1995, have
been reclassified as discontinued operations. No allocation of general corporate
overhead has been made to discontinued operations related to these divisions.
In June 1996, upon adoption of the plan to dispose of the medical and commercial
divisions, the Company recorded a provision for the estimated loss on the
disposal of the divisions in the amount of $2,494,451 (net of income tax benefit
of $-0-). This provision relates to the expected gain on the sale to PCN, net of
disposal costs, severance benefits to division employees, certain occupancy
costs under noncancelable leases, and anticipated future losses related to
assets and operations not sold to PCN until their ultimate disposition is
completed. The estimation of the loss on the disposal of the divisions requires
management to make estimates and assumptions that affect the reported amount of
the loss on disposal. Actual results could differ from those estimates. As such
estimates are adjusted or as actual results occur, the adjustments to the
estimates are reported in the current period as additional gain or loss on
disposal. During the three months ended September 30, 1996, the Company recorded
additional loss on the disposal of the divisions in the amount of $81,721 (net
of income tax benefit of $-0-).
The remaining assets and liabilities related to the discontinued operations have
been separately classified on the balance sheets as net assets (or net
liabilities) of discontinued operations. A sumamry of these assets and
liabilities as of September 30, 1996 is as follows:
Assets:
Trade accounts receivable, net $ 310,928
Prepaid expenses and other assets 250,000
--------
Total assets 560,928
--------
Liabilities:
Accrued liabilities 663,212
Customer deposits 293,064
-------
Liability for estimated loss on disposal 764,390
-------
Total liabilities 1,720,666
---------
Net liabilities of discontinued operations $1,159,738
---------
---------
<PAGE>
(4) Income (loss) per Share
Income or loss per common and common equivalent share is computed by dividing
net income (loss) by the weighted average common shares outstanding during the
period, including common equivalent shares (if dilutive). Common equivalent
shares include stock options, convertible preferred stock and convertible debt.
Income used in this calculation is reduced (loss is increased) by the dividends
paid to preferred stockholders.
(5) Contingent Liabilities
The Company is involved in certain legal matters in the ordinary course of
business. In the opinion of management and legal counsel, such matters will not
have a material effect on the financial position or results of operations of the
Company.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
General
In June of 1994, the Company entered into the credit union software business
through the acquisition of CUSA, Inc. ("CUSA") and the credit union software
division of CUSA's largest distributor. From June of 1994 to July of 1995, the
Company acquired most of the distributors of the CUSA software, some of which
were distributors of software products in the medical and commercial open
systems markets. In June of 1996, the Board of Directors voted to dispose of the
business and assets of the Company's medical and commercial divisions through a
sale of assets to Physician Computer Network, Inc. ("PCN"). With the divestiture
of the medical and commercial divisions the Company plans to devote its
resources primarily to the development and expansion of its credit union
software business. (In this item, all references to the "first quarter" refer to
the first quarter of the Company's fiscal year (quarter ended September 30.))
Net revenues
The Company's net revenues from continuing operations decreased 15 percent from
$7.3 million in the first quarter of 1996 to $6.2 million in the first quarter
of 1997. Revenues from hardware and software sales decreased 45 percent from
$3.3 million in the first quarter of 1996 to $1.8 million in the first quarter
of 1997. The decrease is the result of slower than expected sales of the
Company's core systems in the first quarter of 1997. Revenues from support,
maintenance and other services increased 12% from $3.8 million in the first
quarter of 1996 to $4.2 million in the first quarter of 1997. The increase was
due to increased sales of the Company's statement processing services and
increased software and hardware maintenance. Revenues are derived from computer
system sales, hardware maintenance and software support, and the sale of
products which are related to the Company's core computer systems such as
statement printing, disaster recovery, and microfiche services.
Gross margin
The hardware and software gross margin decreased from 57 percent in 1995 to 55
percent in 1996. In the same period, the gross margin from support, maintenance
and other services revenue decreased from 41 percent to 35 percent. The decrease
in the hardware and software gross margin is primarily attributable to the
increase in third party software and operating system fees related to sales of
the Company's Reliance system. The decrease in the gross profit margin
from support, maintenance and other services revenue is due to decreased
software and hardware sales, resulting in a decrease in the amount of revenue to
cover the fixed costs of the Company's installation and training departments,
an increase in software support costs as the Company began to build up
support resources for its Reliance software product, and an increase of lower
margin statement processing services as a percentage of support, maintenance
and other services revenue in 1996 when compared to 1995. Costs of goods sold
consist of the cost of hardware and software purchased for resale, the
amortization of capitalized software development costs, and the expense of
supporting and installing the systems sold.
Product development costs
Product development costs include research and development, system operational
error fixes and maintenance software upgrades. As expected, product development
costs increased from $.3 million in the first quarter of 1996 to $.6 million in
the first quarter of 1997. The increase reflects the Company's commitment to
continue to improve current products and to invest in the development of new
products, with an increased emphasis on research and development over
capitalized expenditures.
<PAGE>
Selling, general and administrative costs
The selling, general, and administrative expenses for the Company decreased 9%
from $3.0 million in the first quarter of 1996, to $2.7 in the first quarter of
1997. This decrease was due to the reduction, in the first quarter of 1997, of
general corporate overhead and the elimination of the amortization of
goodwill, which was written off as a nonrecurring charge in fiscal 1996. In the
remainder of 1997, the Company plans to further reduce selling, general and
administrative expenses as part of an overall plan to decrease corporate
overhead expenses. These expense reductions will be achieved through the gradual
reduction of overhead and administrative personnel. Although the Company
believes that these efforts will result in reduced selling, general and
administrative costs in the remainder of fiscal 1997, no assurance can be given
that such efforts will be successful.
Interest and income tax expense
Interest expense increased 96 percent in the first quarter of 1997 when compared
to the first quarter of 1996. The increase was due primarily to an increase in
average debt outstanding.
Income tax expense was $134,871 in 1996 (resulting in an effective tax rate of
60.2 percent) compared to a tax expense of zero in 1997. The difference in the
tax expense is due to the losses incurred in the first quarter of 1997 for which
no income tax benefit has been recorded.
Discontinued Operations
In June of 1996, the Company adopted a plan to dispose of the assets of its
medical and commercial software divisions (the "Discontinued Operations"). The
liability for the estimated loss on the disposal of the Discontinued Operations
was established in June of 1996. The disposal of the assets of the Discontinued
Operations (except those assets related to the medical records software) was
completed on July 2, 1996. No material adjustments are currently anticipated to
the estimated loss on disposal as previously provided for in June of 1996. The
$126,522 loss from discontinued operations in the first quarter of 1996
represented the operating results of the Discontinued Operations, prior to their
disposal.
Capital Resources and Liquidity
At September 30, 1996, the Company had current assets of $4.6 million and
current liabilities of $16.5 million. The current liabilities include $4.5
million of deferred revenue which primarily represents payments received for
services to be provided over the remaining term of software and hardware
maintenance contracts (generally one year).
<PAGE>
The Company has two term loans in the original aggregate amount of $2,000,000
and a line of credit with its principal bank (the "Bank"). The line of credit,
$1,500,000 as of September 30, 1996 (of which $1,128,063 was advanced as of
September 30, 1996), is secured by accounts receivable, inventory, general
intangibles and a trust deed on real estate, bears an interest rate of prime
plus one and one half percent, and matures in January of 1997. In December of
1994, the Company was advanced $995,000 from certain individual investors
through a loan company which is affiliated with an officer, director and major
shareholder of the Company pursuant to a subordinated line of credit which is
secured by accounts receivable.
From June 20, 1995 to October 6, 1995, the Company received $1,450,000 pursuant
to the issuance of debentures to an entity controlled by an officer, director
and major shareholder of the Company. The debentures, which are due June 30,
1998, are convertible into shares of the Company's common stock at the
discretion of the holder at a rate of $3.50 per share through June 1997 and
$4.00 per share through June 30, 1998, and bear an interest rate of 8 percent
per annum, payable quarterly.
From March to May of 1996, the Company received $1,481,023 from the Bank to
finance the purchase of computer equipment. The loan, which bears interest at a
rate of prime plus 1.5%, is secured by a first lien on all assets purchased with
the proceeds of the loan plus accounts receivable and inventory.
On July 2, 1996 the Company sold its medical and commercial divisions to PCN for
$10,100,000 cash and the assumption of certain related liabilities. To date, the
Company has received $9,150,000 of the total purchase price. Pursuant to an
October 15, 1996 amendment to the asset purchase agreement, of the remaining
purchase price of $950,000, $750,000 will be retained by PCN in consideration of
their assumption of certain additional liabilities related to the medical and
commercial customer accounts. The remaining $200,000 will be paid to the Company
upon the delivery of certain assets which are currently subject to a court order
restricting such transfer pending the settlement of certain judgments. The cash
received pursuant to the asset purchase agreement has been used to settle a
$500,000 note owed to a hardware maintenance company, to pay amounts owed to
certain former owners of entities acquired in 1996 and 1995 in accordance with
the applicable acquisition documents, to pay restructuring costs, severance
fees, certain bonuses and professional fees related to the sale, and to reduce
accrued liabilities and accounts payable.
On October 21, 1996 pursuant to a promissory note, the Company was advanced
$100,000 from a director, officer and major shareholder of the Corporation. The
note bears interest at 10% per annum and is due on December 20, 1996.
The Company anticipates that these financing sources, together with cash flow
from operations, will be sufficient to permit it to meet its cash requirements
through at least June 30, 1997.
<PAGE>
The loan documents, pursuant to which funds were advanced by the Bank for the
line of credit, term loans, and equipment loan (the "Loans"), each include
certain covenants related primarily to the Company's quarterly income before
interest, depreciation, amortization and taxes. Pursuant to such covenants, the
Bank has the right to demand full and immediate payment of amounts outstanding
on the Loans upon violation of any of the covenants. In the past when the
Company was not in compliance, the Bank has waived its right to exercise its
rights under such covenants, but there is no assurance that the Bank will not
exercise its rights under such covenants in the future. However, the Company is
negotiating with the Bank to amend such covenants to conform to currently
anticipated future operating results. Additionally, in 1997 the Company expects
operating results to improve as the Company turns its focus from acquisition
activity to operations, with an emphasis on improving staging, delivery,
installation and training processes and on implementing an overall plan to
reduce selling, general and administrative expenses. As current loan covenants
are renegotiated and anticipated improvements in the results from operations are
realized, management expects to comply with such covenants in the second, third
and fourth quarters of 1997.
In 1996, the Company recorded nonrecurring charges of approximately $7 million
in connection with the revaluation of certain balance sheet intangible assets
and the accrual of restructuring costs. Also in 1996, the Company recorded a
total loss from discontinued operations of $7.6 million. As a result of these
nonrecurring charges, the loss from discontinued operations and a loss from
continuing operations in 1996 and the first quarter of 1997, retained earnings
decreased from $.8 million at June 30, 1995 to a $16.8 million accumulated
deficit at June 30, 1996 and further decreased to a $17.9 million accumulated
deficit as of September 30, 1996, resulting in a shareholders' deficit of $7.4
at June 30, 1996. The Company is exploring various options to increase its
equity in 1997, including private and public financing.
<PAGE>
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is involved in certain legal matters in the ordinary course of
business. In the opinion of management and in-house legal counsel, the ultimate
resolution of these matters will not have a material effect on the financial
position or results of operations of the Company.
ITEM 5. OTHER INFORMATION
None.
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
The following exhibits are included as part of this report:
Exhibit SEC Ref
Number Number Title of Document
- ------- ------- -------------------
27.01 27 Financial Data Schedule
(b) Reports on Form 8K.
Report on Form 8K dated July 17, 1996 reporting the sale of
the assets of the Company's credit union and medical divisions to
Physician's Computer Network.
<PAGE>
SIGNATURES
Pursuant to the requirements of section 13 or 15(d) of the Securities and
Exchange Act of 1934 as amended, the Company has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Dated: November 27, 1996
CUSA Technologies, Inc.
/s/ D. Jeff Peck
- ------------------------------------------------------
D. Jeff Peck, Principal Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AS OF SEPTEMBER 30, 1996, AND STATEMENT OF OPERATIONS FOR THE THREE
MONTHS ENDED SEPTEMBER 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 171,230
<SECURITIES> 0
<RECEIVABLES> 4,004,968
<ALLOWANCES> 394,000
<INVENTORY> 256,170
<CURRENT-ASSETS> 4,639,317
<PP&E> 6,319,426
<DEPRECIATION> 1,568,261
<TOTAL-ASSETS> 11,763,112
<CURRENT-LIABILITIES> 16,450,556
<BONDS> 0
0
1,000
<COMMON> 8,918
<OTHER-SE> (7,303,701)
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</TABLE>
