UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(MARK ONE)
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD
ENDED JUNE 30,1998.
( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD
FROM
_____________________________ TO _________________________________.
Commission File Number: 0-17773
________________________ATS Money Systems, Inc.________________________
(Exact name of small business issuer as specified in its charter)
____________Nevada________________________13-3442314__________________
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
25 Rockwood Place________Englewood, New Jersey________07631____________
(Address of principal executive offices) (Zip Code)
________________________201/894-1700___________________________________
(Issuer's telephone number)
Check whether the issuer (1) filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act
during the past 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.
__X__Yes _____No
State the number of shares outstanding of each of the
issuer's classes of common equity, as of the latest practicable
date:
As of August 14, 1998, - 5,721,231 shares of common stock, $.001 par value.
Transitional Small Business Disclosure Form Yes _____ No __X__
Part I. FINANCIAL INFORMATION
Item I. Financial Statements
<TABLE>
<CAPTION>
ATS MONEY SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
JUNE 30 DECEMBER 31
ASSETS: 1998 1997
(UNAUDITED)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 311,915 $ 424,168
Trade accounts receivable, less allowance for
doubtful accounts of $100,188 in both periods 4,415,096 2,281,677
Inventories 829,380 562,681
Prepaid expenses and other current assets 89,926 83,492
Total current assets 5,646,317 3,352,018
PROPERTY - At cost:
Office furniture 96,659 95,994
Office machinery and equipment 222,278 216,267
_________ ________
Subtotal 318,937 312,261
Less Accumulated depreciation 175,326 148,320
_________ _________
Property - net 143,611 163,941
ASSETS:
Software costs, less accumulated amortization
of $1,030,154 in 1998 and $788,531 in 1997 1,609,814 1,519,991
Deposits 52,280 52,280
_________ _________
Total other assets 1,662,094 1,572,271
TOTAL $7,452,022 $ 5,088,230
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable - trade $1,628,115 $ 664,726
Accrued expenses 1,439,080 794,519
Deferred revenue 887,572 206,799
Deferred income taxes 43,561 43,561
Other liabilities 5,415 126,804
__________ __________
Total current liabilities 4,003,743 1,836,409
LONG-TERM-Deferred Credit, less amortization of
$110,497 in 1998 and $96,241 in 1997 174,670 188,926
STOCKHOLDERS' EQUITY:
Common stock - $.001 par value, 25,000,000 shares
authorized, 5,922,731 shares issued at June 30,
1998 and December 31, 1997 5,923 5,923
Additional paid-in capital 2,285,450 2,383,033
Accumulated earnings 982,425 674,039
Treasury stock - 188,500 shares at June 30, ( 189) ( 100)
1998 and 100,000 shares at December 31, 1997,
at par value __________ ___________
Total stockholders' equity 3,273,609 3,062,895
__________ __________
TOTAL $7,452,022 $ 5,088,230
See notes to consolidated financial statements.
</TABLE>
<TABLE>
<CAPTION>
ATS MONEY SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
JUNE 30 JUNE 30
1998 1997 1
<S> <C> <C>
REVENUE:
Equipment and systems sales $6,834,553 $3,300,568
Equipment maintenance and service revenue 1,293,278 1,221,041
_________ __________
Total revenue 8,127,831 4,521,609
COST AND EXPENSES:
Cost of goods sold and service expense:
Equipment and systems 4,625,846 1,394,065
Equipment maintenance and service 567,565 485,738
Selling, general and administrative expenses 2,451,675 2,114,101
__________ __________
Total costs and expenses 7,645,086 3,993,904
__________ ___________
INCOME FROM OPERATIONS 482,745 527,705
INTEREST INCOME 22,640 32,483
__________ ___________
INCOME BEFORE INCOME TAXES 505,385 560,188
INCOME TAXES 197,000 218,000
NET INCOME $ 308,385 $ 342,188
EARNINGS PER COMMON SHARE:
Basic and diluted $.05 $.06
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING 5,906,545 5,875,007
See notes to consolidated financial statements.
</TABLE>
<TABLE>
<CAPTION>
ATS MONEY SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
JUNE 30 JUNE 30
1998 1997
<S> <C> <C>
REVENUE:
Equipment and systems sales $4,270,773 $1,470,626
Equipment maintenance and service revenue 652,727 647,392
__________ __________
Total revenue 4,923,500 2,118,018
COST AND EXPENSES:
Cost of goods sold and service expense:
Equipment and systems 2,989,992 642,344
Equipment maintenance and service 288,253 211,155
Selling, general and administrative expenses 1,343,138 1,111,856
__________ __________
Total costs and expenses 4,621,383 1,965,355
__________ __________
INCOME FROM OPERATIONS 302,117 152,663
INTEREST INCOME 14,847 18,218
__________ __________
INCOME BEFORE INCOME TAXES 316,964 170,881
INCOME TAXES 122,000 62,000
NET INCOME $ 194,964 $ 108,881
EARNINGS PER COMMON SHARE:
Basic and diluted $.03 $.02
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING 5,900,15 5,885,448
See notes to consolidated financial statements.
</TABLE>
<TABLE>
<CAPTION>
ATS MONEY SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
JUNE 30 JUNE 30
1998 1997
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 308,385 $ 342,188
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 254,374 176,210
Changes in current assets and liabilities:
Trade accounts receivable - net (2,133,419) 255,754
Inventories ( 266,699) ( 141,769)
Prepaid expenses and other current assets ( 6,434) 39,607
Accounts payable - trade 963,389 8,917
Accrued expenses 644,561 296,736
Deferred revenue 680,773 873,163
Other liabilities ( 121,389) ( 84,808)
___________ ___________
Net cash provided by operating activities 323,541 1,765,998
CASH FLOWS FROM INVESTING ACTIVITIES:
Capitalization of software development costs ( 331,446) ( 537,976)
Additions to property ( 6,676) ( 48,639)
___________ ___________
Net cash used in investing activities ( 338,122) ( 586,615)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of Company Common Stock ( 97,672) -
___________ ___________
Net cash used in financing activities ( 97,672) -
NET INCREASE (DECREASE) IN CASH AND __________ __________
CASH EQUIVALENTS ( 112,253) 1,179,383
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 424,168 308,138
___________ ___________
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 311,915 $ 1,487,521
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest $ 660 $ -
Income Taxes (Refund) $ 456,710 $( 5,790
See notes to consolidated financial statements.
</TABLE>
ATS MONEY SYSTEMS, INC.
Notes to Consolidated Financial Statements
(Unaudited)
JUNE 30, 1998
Note 1 - Unaudited Information:
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and the instructions to Form 10-QSB and
Item 310(b) of 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, the accompanying unaudited financial
statements reflect all adjustments (which comprise only normal recurring
accruals) necessary to present fairly the Company's consolidated financial
position as of June 30, 1998, the results of its operations for the three
month and six month periods ended June 30, 1998 and 1997 and its cash flows
for the six month periods ended June 30, 1998 and 1997. Information included
in the consolidated balance sheet as of December 31, 1997 has been derived
from the Company's audited financial statements contained in its Annual
Report on Form 10-KSB for the year ended December 31, 1997, to which
reference is made. Operating results for the three month and six month
period ended June 30, 1998 are not necessarily indicative of the
results that may be expected for the year ending December 31, 1998.
Note 2 - Inventories
Inventories are stated at the lower of cost or market. Cost is determined
by the first-in, first-out method for machine parts and specific
identification for machines held for sale.
Note 3 - Capitalized Software Costs
The Company capitalizes computer software development costs in accordance
with the provisions of Statement of Financial Accounting Standards No. 86,
"Accounting for the Costs of Computer Software to be Sold, Leased or
Otherwise Marketed". Costs incurred to establish the technological
feasibility of computer software are expensed as incurred. Costs incurred
for product enhancements, subsequent to establishing technological
feasibility, are capitalized and stated at the lower of cost or net
realizable value. Capitalized costs are amortized using the straight-line
method over five years, which approximates the estimated remaining useful
life of the product. It is possible that the estimated economic life of
the products and related carrying values could be reduced in the near term
due to competitive pressures. Amortization of computer software costs
amounted to $241,623 and $169,780 for the six month periods ended June 30,
1998 and 1997, respectively and $129,339 and $101,821 for the three month
periods ended June 30, 1998 and 1997, respectively.
Note 4 - Revenue Recognition
Revenue from equipment and system sales is recognized upon shipment to the
buyer and satisfaction of related obligations by the Company. Revenue from
software licensing is recognized on either delivery of the software if
collectibility is probable or upon completion of the majority of the product,
which equates to reaching a milestone in accordance with the contract
agreement and any remaining insignificant obligations of the Company are
accounted for by deferring a pro rata portion of revenue and recognizing
it either ratably as the obligations are fulfilled or on completion of
performance or by recording a current year expense for the remaining costs
associated with completing the project. The Company has completed its
analysis of the effect of (SOP) 97-2, "Software Revenue Recognition" and
has determined that this SOP does not have a material effect on
the consolidated financial statements.
Note 5 - Equipment Maintenance and Service Revenue
Equipment maintenance and service revenue is recognized as earned over the
term of the contract, which is generally a maximum of one year in length.
Deferred revenue represents the unearned portion of equipment maintenance
and service fees.
Note 6 - Stockholders' Equity
Common Stock - The authorized capital stock of the Company consists of
25,000,000 shares of noncumulative, voting, common stock, with a par value
of $.001 per share.
Common Stock Incentive Plan - In 1993, the Company adopted a common stock
incentive plan (the "Plan"), which, as amended, authorizes the issuance,
within ten years, of options covering up to 480,000 shares of common stock
to certain employees and other individuals of importance to the Company.
The Plan is intended to provide incentive to continued employment of certain
employees and other individuals by enabling them to acquire a proprietary
interest in the Company. Options granted under the Plan may be either
"incentive stock options" or "non-qualified stock options." Incentive stock
options, granted only to certain employees of the Company, expire within ten
years (five years for a 10% beneficial owner of the Company's securities)
from the date granted and are exercisable from time to time, after the first
year, in accordance with the terms of such options. The exercise price of an
incentive stock option must be at least equal to the fair market value of the
common stock on the date of grant (110% for a 10% beneficial owner of the
Company's securities). Nonqualified stock options can be granted to certain
employees of the Company and advisors and consultants to the Company. Such
stock options are exercisable on or after the date of grant and the exercise
price is not limited and may be below fair market value.
Director Stock Plan - In 1995, the Company adopted the 1995 Director Stock
Plan pursuant to which, as amended, the Company's non-employee directors,
upon first being elected to the Board, are granted 10,000 shares of the
Company's common stock, and thereafter, on each reelection, are granted
non-qualified stock options to purchase 10,000 shares of the Company's
common stock with an exercise price equal to the then fair market value
of such shares. In 1995, the non-employee directors were granted an
aggregate of 40,000 shares of common stock under this plan, all of which
were issued during 1996.
<TABLE>
<CAPTION>
A summary of the details of all stock options granted and outstanding
balances are presented below:
Option Options Options Outstanding
Grant Price Exercised Canceled June 30, December 31,
1998 1997
<S> <C> <C> <C> <C> <C>
1993
140,869 .28125 35,941 4,184 - -
30,820 69,924 69,924
18,816 .31 18,816 18,816
15,315 .28125 15,315 15,315
1994
21,000 1.25 9,000 - -
12,000 - -
15,000 1.375 15,000 15,000
1996
37,626 1.03125 3,081 - -
4,640 29,905 29,905
8,375 1.1344 8,375 8,375
2,500 1.1344 2,500 - -
1997
34,000 .71 6,000 28,000 28,000
20,000* .8281 20,000 20,000
10,000* .9109 10,000 10,000
1998
19,200 .92 19,200 -
6,000 1.01 6,000 -
30,000* .95 30,000 -
_______ _______ _______ _______
Total 66,761 41,405 270,535 215,335
*Non-Employee Directors
</TABLE)
Accounting for Grant of Stock Options - In connection with the adoption
of SFAS 123, "Accounting for Stock-Based Compensation," which was
effective in 1996, the Company elected to continue to account for its
stock options using the method prescribed by Accounting Principles
Board Opinion No. 25, "Accounting for Stock Issued to Employees",
under SFAS 123 would not affect earnings per share. The proforma
effect would have reduced net income by approximately $21,600 for
the year ended December 31, 1997.
Common Stock Warrants - In connection with services to be rendered by an
investment banker, as of April 7, 1997, the Company granted to the investment
banker warrants to purchase 80,000 shares of common stock exercisable at $.75
per share; agreed to grant and granted to the investment banker on April 8,
1998, warrants to purchase an additional 80,000 shares of common stock
exercisable at $1.25 per share and, unless the agreement is canceled by the
Company before April 8, 1999, agreed to grant to the investment banker on
such date warrants to purchase an additional 80,000 shares of common stock
exercisable at $1.25 per share. All of the warrants will expire on April 7,
2001, unless exercised prior thereto. Based upon the fair value of the
warrants at the grant date, no expense was recognized in 1997 or the first
half of 1998.
Repurchase of Common Stock - On May 22, 1998, the Board of Directors
authorized the Company to repurchase up to 500,000 shares of its common
stock. As of June 30, 1998, the Company had repurchased 88,500 shares
at prices ranging from $1.03 per share to $1.15 per share.
Note 7 - Commitments and Contingencies
At June 30, 1998, the Company was committed under noncancelable, operating
leases for office space, automobiles and office equipment, expiring at
various dates through May 2001; requiring minimum rental payments as follows:
</TABLE>
<TABLE>
<CAPTION>
Year Ending December 31:
<S> <C>
1998 (Balance of year) $ 160,197
1999 157,827
2000 52,558
2001 1,998
$ 372,580
</TABLE>
Note 8 - Earnings Per Common Share
The Company has adopted Statement of Financial Accounting Standards
(SFAS) No. 128, "Earnings per Share", which was effective for financial
statements issued after December 31, 1997. The pronouncement simplifies
the calculation of earnings per share in that a calculation of "basic"
earnings per share is reported in lieu of primary earnings per share.
Basic earnings per share includes only the weighted average number of common
shares outstanding for the periods and does not consider the dilutive effect
of stock options or warrants. The effects of dilutive stock options and
warrants, and the adoption of SFAS No. 128 did not change earnings per share.
Note 9 - Other
In June 1997, SFAS No. 131, "Disclosure About Segments of an Enterprise
and Related Information" was issued. This Statement is effective for
fiscal years beginning after December 15, 1997. The Company has determined
that this Statement has no effect on the consolidated financial statements.
In February 1998, SFAS No. 132, "Employer's Disclosures About Pensions
and Other Postretirement Benefits" was issued. This Statement revises
and standardizes pension and other benefit plan disclosures that are to
be included in the employer's financial statements. SFAS No. 132 is
effective for fiscal years beginning after December 15, 1997. This
Statement will not change the measurement or recognition of these costs.
In June 1998, SFAS No. 133, "Accounting for Derivative Instruments and
Hedging Activities" was issued. This Statement is effective for all
fiscal quarters of fiscal years beginning after June 15, 1999. The
Company has determined that this Statement has no effect on the
consolidated financial statements as the Company has not entered into,
nor does it have any plans to enter into derivative instrument contracts.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Reference is made to Item 6 - "Management's Discussion and Analysis or
Plan of Operation," contained in the Company's Annual Report on Form
10-KSB for its fiscal year ended December 31, 1997, for a discussion
of the Company's financial condition as of December 31, 1997, including
a discussion of the Company's anticipated liquidity and working capital
requirements during 1998.
This Quarterly Report on Form 10-QSB contains, in addition to historical
information, certain forward-looking statements that involve significant
risks and uncertainties. Such forward-looking statements are based on
management's belief as well as assumptions made by, and information
currently available to, management pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements can generally be identified as such because
the context of the statement may include words such as the Company
"believes," "expects" or words of similar import. Similarly, statements
that describe the Company's future plans, objectives, estimates or goals
are also forward-looking statements. Such statements address future events
and conditions concerning capital expenditures, earnings, sales, liquidity
and capital resources, and accounting matters. The Company's actual results
could differ materially from those expressed in or implied by the
forward-looking statements contained herein. Factors that could cause or
contribute to such differences include, but are not limited to, those
discussed in "Financial Condition" below and in Item 1 - "Description of
Business" and elsewhere in the Company's Annual Report on Form 10-KSB for
the fiscal year ended December 31, 1997, as well as factors such as future
economic conditions and economic conditions in the industries in which the
Company's customers compete, a determination by the Company's customers to
prolong their test cycles of the Company's equipment, software and software
support services, a determination by the Company's customers to modify or
change their underlying computer and cash reporting systems, acceptance by
customers of the Company's products, changes in customer demand, legislative,
regulatory and competitive developments in markets in which the Company
operates and other circumstances affecting anticipated revenues and costs.
The Company undertakes no obligation to release publicly the result of any
revisions to these forward-looking statements that may be made to reflect
events or circumstances after the date of this Quarterly Report on Form
10-QSB or to reflect the occurrence of other unanticipated events.
COMPARISON OF CONSOLIDATED OPERATIONS FOR THE SIX MONTHS ENDED
JUNE 30, 1998 (THE "1998 PERIOD") TO THE SIX MONTHS ENDED JUNE 30, 1997
(THE "1997 PERIOD").
Total revenues for the 1998 Period were $8,127,831, an increase of
$3,606,222 (79.8%). Equipment and system sales increased $3,533,985
(107.1%) to $6,834,553 for the 1998 Period. This was primarily due to
a large order from a single retail chain. Software contract revenue
associated with this hardware sale was only partially recognized in
the 1998 Period; the balance was billed in the third quarter of 1998.
Maintenance and service revenues were $1,293,278 for the 1998 Period. This
was an increase of $72,237 (5.9%) from the 1997 Period as a result of
additional systems under contract during the 1998 Period.
Cost of equipment and system sales rose from 42.2% of sales in the 1997
Period to 67.7% of sales in the 1998 Period due to the significant impact
of the aforementioned hardware sales which were not sold with accompanying
software which carry higher margins. Cost of maintenance and service
increased from 39.8% in the 1997 Period to 43.9% in the 1998 Period primarily
due to increased time spent in support of maintenance.
Selling, general and administrative expenses were $2,451,675 for the 1998
Period compared to $2,114,101 in the 1997 Period. This was an increase of
$337,574 (16.0%) and was primarily attributable to increased commissions on
increased sales and greater salary expense.
Interest income for the 1998 Period was $22,640 compared to $32,483 for the
1997 Period. This decrease of $9,843 (30.3%) was due to a decrease in
available invested cash resulting from less cash received in advance from
maintenance customers and a slower turnover of receivables.
Incomes taxes were $197,000 for the 1998 Period compared to $218,000 for
the 1997 Period. This decrease of $21,000 (9.6%) was due to a decrease
in income from operations.
As a result of the foregoing, net income after taxes was $308,385 for the
1998 Period compared to $342,188 for the 1997 Period. This was a decrease
of $33,803 (9.9%).
COMPARISON OF CONSOLIDATED OPERATIONS FOR THE THREE MONTHS ENDED
JUNE 30, 1998 (THE "1998 QUARTER") TO THE THREE MONTHS ENDED
JUNE 30, 1997 (THE "1997 QUARTER").
Total revenues for the 1998 Quarter were $4,923,500 an increase of
$2,805,482 (132.5%). System and equipment sales increased $2,800,147
(190.4%) to $4,270,773 for the 1998 Quarter. This was entirely due to
shipments to a large retailer. Maintenance and service revenues were
$652,727 for the 1998 Quarter. This was an increase of $5,335 (.8%)
from the 1997 Quarter.
Cost of equipment and system sales rose from 43.6% of sales in the 1997
Quarter to 70.0% of sales in the 1998 Quarter due to the hardware sales
which carry a higher cost than systems. Cost of maintenance and service
increased from 32.6% in the 1997 Quarter to 44.1% in the 1998 Quarter
primarily due to increased internal labor.
Selling, general and administrative expenses were $1,343,138 for the 1998
Quarter compared to $1,111,856 in the 1997 Quarter. This was an increase
of $231,282 (20.8%) and was attributable to increased commissions on
increased sales.
Interest income for the 1998 Period was $14,847 compared to $18,218 for the
1997 Quarter. This decrease of $3,371 (18.5%) was attributable to a decrease
in available invested cash resulting from less cash received from maintenance
customers who previously paid a full year in advance.
Income taxes were $122,000 for the 1998 Quarter compared to $62,000 for the
1997 Quarter. This decrease of $60,000 (96.8%) was due to a decrease in
income from operations.
As a result of the foregoing, net income after taxes was $194,964 for the
1998 Quarter compared to $188,881 for the 1997 Quarter. This was a decrease
of $86,083 (79.1%).
Financial Condition:
At June 30, 1998, the Company had working capital of $1,642,574 (an
increase of $126,965 from $1,515,609 at December 31, 1997) and cash
and cash equivalents (including short-term investments) of $311,915
(as compared to $424,168 at December 31, 1997). During the first part
of the year, many of the Company's customers prepay their annual
maintenance contracts, which increases the Company's cash and correspondingly
the Company's deferred revenue liability. At June 30, 1998, the Company did
not have any outstanding borrowings.
During the first six months of 1998, operating activities provided $323,542
of net cash, primarily from customers who prepay their annual maintenance
contracts. Investing activities used $331,446 of net cash for software
development and financing activities used $97,673 for the repurchasing of
the Company's common stock.
In April 1998, First Union National Bank renewed a $750,000 discretionary
line of credit for the Company's short-term needs, at an interest rate
equal to such bank's base rate plus 1/2%. All advances under this line
of credit are required to be secured by a lien on substantially all of the
Company's assets. The Company borrowed $240,000 on January 21, 1998, and
repaid it, in full, on February 3, 1998.
The Company believes that its current working capital, together with
anticipated funds from operations, will be sufficient to meet the
Company's projected operating needs and capital expenditures for the
foreseeable future.
The Company leases its facilities. As of June 30, 1998, the Company
had no material commitments for capital expenditures.
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
The Company's 1998 Annual Meeting of Stockholders was held on May 22, 1998,
at The Clinton Inn Hotel, 145 Dean Drive, Tenafly, New Jersey. At the
meeting, 5,514,904 shares were present in person or by proxy. At the
meeting, each of the four incumbent directors of the Company who had been
nominated by the Board of Directors for re-election as a director of the
Company was re-elected as a director. The votes cast were as follows:
<TABLE>
<CAPTION>
Name of Nominee Votes Cast For Votes Withheld
<S> <C> <C>
A. Paul Cox, Jr. 5,494,929 19,975
Gerard F. Murphy 5,494,929 19,975
Fred Den 5,494,929 19,975
Thomas J. Carey 5,492,564 22,340
</TABLE>
At the meeting, one additional proposal, to ratify the selection of
Deloitte & Touche LLP as the Company's independent auditors for the
fiscal year ending December 31, 1998, was voted upon. The proposal
was approved by the stockholders with 5,398,389 shares voting in favor,
86,265 shares voting against and 30,250 shares abstaining.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
27. Financial Data Schedule.
(b) No reports on Form 8-K were filed during the quarter for which
this report is filed.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
ATS Money Systems, Inc.
(Registrant)
__________________________________ ___________________________________
August 14, 1998
(Date)
Gerard F. Murphy
Chief Executive Officer
President
(Principal Executive Officer)
__________________________________ ___________________________________
August 14, 1998
(Date) Joseph M. Burke
Vice President - Finance
(Principal Accounting and
Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
EXHIBIT 27 - FINANCIAL DATA SCHEDULE
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 1998 AND THE
CONSOLIDATED STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED
JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> JUN-30-1998
<CASH> 311,915
<SECURITIES> 0
<RECEIVABLES> 4,515,214
<ALLOWANCES> 100,118
<INVENTORY> 829,380
<CURRENT-ASSETS> 5,646,317
<PP&E> 318,937
<DEPRECIATION> 175,316
<TOTAL-ASSETS> 7,452,022
<CURRENT-LIABILITIES> 4,003,743
<BONDS> 0
<COMMON> 5,923
0
0
<OTHER-SE> 3,267,686
<TOTAL-LIABILITY-AND-EQUITY> 7,452,022
<SALES> 6,834,553
<TOTAL-REVENUES> 8,127,831
<CGS> 4,625,846
<TOTAL-COSTS> 5,193,411
<OTHER-EXPENSES> 2,451,675
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 22,640
<INCOME-PRETAX> 505,385
<INCOME-TAX> 197,000
<INCOME-CONTINUING> 308,385
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 308,385
<EPS-PRIMARY> .05
<EPS-DILUTED> .05
</TABLE>