UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
( X ) QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31,
1999.
( ) 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
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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 of 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 May 10, 1999, - 5,650,047 shares of common stock, $.001 par value.
------------- ---------
Transitional Small Business Disclosure Form Yes [ ] No [X]
1
<PAGE>
Part I. FINANCIAL INFORMATION
Item I. Financial Statements
<TABLE>
<CAPTION>
ATS MONEY SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
March 31 December 31
ASSETS: 1999 1998
----------- -----------
CURRENT ASSETS: (Unaudited)
<S> <C> <C>
Cash and cash equivalents $ 937,422 $ 286,368
Trade accounts receivable, less allowance
for doubtful accounts of $140,629 in 1999 and in 1998 2,469,488 3,251,810
Inventories 1,141,804 598,667
Prepaid expenses and other current assets 111,776 63,513
----------- -----------
Total current assets 4,660,490 4,200,358
----------- -----------
PROPERTY - At cost:
Office furniture 96,915 96,659
Office machinery and equipment 264,982 235,158
----------- -----------
Subtotal 361,897 331,817
Less Accumulated depreciation 206,004 199,388
----------- -----------
Property - net 155,893 132,429
----------- -----------
OTHER ASSETS:
Software costs, less accumulated amortization of
$1,182,699 in 1999 and $1,039,667 in 1998 1,744,953 1,685,381
Deposits 76,730 82,562
----------- -----------
Total other assets 1,821,683 1,767,943
----------- -----------
TOTAL $ 6,638,066 $ 6,100,730
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 720,243 $ 1,629,655
Deferred revenue 1,804,151 677,969
Deferred income taxes 116,638 95,702
Other liabilities 152,999 91,358
----------- -----------
Total current liabilities 2,794,031 2,494,684
----------- -----------
LONG-TERM-Deferred credit, less accumulated amortization of
$131,881 in 1999 and $124,753 in 1998 153,286 160,414
----------- -----------
COMMITMENTS and CONTIGENCIES
STOCKHOLDERS' EQUITY:
Common stock, non-cumulative, voting - $.001 par value,
25,000,000 shares authorized, 5,941,547 shares issued
at March 31, 1999 and December 31, 1998 5,942 5,942
Additional paid-in capital 2,192,958 2,192,958
Accumulated earnings 1,492,131 1,247,014
Treasury stock - 281,500 shares, at par value (282) (282)
----------- -----------
Total stockholders' equity 3,690,749 3,445,632
----------- -----------
TOTAL $ 6,638,066 $ 6,100,730
=========== ===========
</TABLE>
See notes to consolidated financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
ATS MONEY SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTH PERIODS ENDED MARCH 31, 1999 AND 1998
(UNAUDITED)
March 31 March 31
1999 1998
---------- ----------
REVENUE:
<S> <C> <C>
Equipment and systems sales $2,691,908 $2,563,780
Equipment maintenance and service revenue 598,735 640,551
---------- ----------
Total revenue 3,290,643 3,204,331
---------- ----------
COST AND EXPENSES:
Cost of goods sold and service expense:
Equipment and systems 1,279,889 1,635,854
Equipment maintenance and service 260,912 279,312
Selling, general and administrative expenses 1,356,017 1,108,537
---------- ----------
Total costs and expenses 2,896,818 3,023,703
---------- ----------
INCOME FROM OPERATIONS 393,825 180,628
NET INTEREST INCOME 11,292 7,793
---------- ----------
INCOME BEFORE INCOME TAXE EXPENSE 405,117 188,421
INCOME TAX EXPENSE 160,000 75,000
---------- ----------
NET INCOME $ 245,117 $ 113,421
========== ==========
EARNING PER COMMON SHARE:
Basic and diluted $ .04 $ .02
========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 5,660,047 5,903,809
========== ==========
</TABLE>
See notes to consolidated financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
ATS MONEY SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTH PERIODS ENDED MARCH 31, 1999 AND 1998
(UNAUDITED)
MARCH 31 MARCH 31
1999 1998
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net Income $ 245,117 $ 113,421
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 142,520 118,659
Changes in current assets and liabilities:
Trade accounts receivable - net 782,322 (37,611)
Inventories (543,137) (27,026)
Prepaid expenses and other current assets (48,263) (3,492)
Accounts payable and accrued expenses (909,412) 28,082
Deferred revenue 1,126,182 1,192,632
Deferred income taxes 20,936 --
Other liabilities 61,641 26,409
Deposits 5,832 --
----------- -----------
Net cash provided by operating activities 883,738 1,411,074
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Capitalization of software development costs (202,604) (174,273)
Additions to property (30,080) (2,951)
----------- -----------
Net cash used in investing activities (232,684) (177,224)
----------- -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 651,054 1,233,850
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 286,368 424,168
=========== ===========
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 937,422 $ 1,658,018
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes $ 151,568 $ 250,000
=========== ===========
Interest paid $ -- $ 660
=========== ===========
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
ATS MONEY SYSTEMS, INC.
Notes to Consolidated Financial Statements
(Unaudited)
March 31, 1999
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
March 31, 1999, and the results of its operations for the three month periods
ended March 31, 1999 and 1998 and its cash flows for the three month periods
ended March 31, 1999 and 1998. Information included in the consolidated balance
sheet as of December 31, 1998 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, 1998, to which reference is made. Operating results for the
three month period ended March 31, 1999 are not necessarily indicative of the
results that may be expected for the year ending December 31, 1999.
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 $143,032 and $112,284 for the three month periods ended March 31,
1999 and 1998, respectively.
NOTE 4 - REVENUE RECOGNITION
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 deliver 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.
5
<PAGE>
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 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 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). Non-qualified 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. In 1997, the
non-employee directors were granted non-qualified options under this plan to
purchase 30,000 shares of common stock at an exercise price of $.8281 per share.
In 1998, the non-employee directors were granted non-qualified options under
this plan to purchase 30,000 shares of common stock at an exercise price of
$.9531 per share.
6
<PAGE>
<TABLE>
<CAPTION>
A summary of the details of stock options granted and outstanding balances are
presented below:
OPTIONS OUTSTANDING
-------------------
OPTION MARCH 31 DECEMBER 31
GRANT PRICE EXERCISED CANCELED 1999 1998
----- ----- --------- -------- ---- ----
<S> <C> <C> <C> <C> <C> <C>
1993
---- 140,869 .28125 66,761 4,184 69,924 (1) 69,924
15,315 .28125 15,315 (1) 15,315
18,816 .31 18,816
1994
---- 15,000 1.375 5,000 10,000 (1) 10,000
1996
---- 37,626 1.03125 10,379 27,247 (1) 27,247
8,375 1.1344 8,375 (1) 8,375
1997
---- 34,000 .71 8,500 25,500 (2) 25,500
30,000 .8281 30,000 (2) 30,000
1998
---- 30,000 .9531 30,000 (3) 30,000
18,700 .92 500 18,200 (3) 18,200
6,000 1.01 6,000 (3) 6,000
1999
---- 6,750 .87 6,750 (4) -
2,000 .96 2,000 (4) -
=========== =========== ========== ============
85,577 28,563 249,311 240,561
=========== =========== ========== ============
</TABLE>
(1) Fully exercisable as of March 31, 1999.
(2) 17,459 of 25,500 and 20,000 of 30,000 exercisable as of March 31, 1999.
(3) 6,228 of 18,200 and 2,000 of 6,000 and 9,999 of 30,000 exercisable as of
March 31, 1999.
(4) Non exercisable as of March 31, 1999.
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 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. The balance of the contract to purchase an additional 80,000 shares of
common stock exercisable at $1.25 per share was cancelled on April 1, 1999. 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 1999 and 1998.
7
<PAGE>
NOTE 7 - COMMITMENTS AND CONTINGENCIES
At March 31, 1999, the Company was committed under noncancelable, operating
leases for office space, automobiles and office equipment, expiring at various
dates through February 2004, requiring minimum rental payments as follows:
YEAR ENDING DECEMBER 31:
1999 $ 289,475 ( Balance of Year)
2000 296,448
2001 253,605
2002 249,612
2003 249,612
2004 41,602
-----------
$ 1,380,355
===========
NOTE 8 - EARNINGS PER COMMON SHARE
Basic earnings per common share is computed by dividing income available to
common stockholders by the weighted average number of common shares outstanding
during the period. The computation of diluted earnings per share is similar to
the computation of basic earnings per share except that the denominator is
increased to include the number of additional common shares that would have been
outstanding if the dilutive potential common shares had been issued. For the
three month periods ended March 31, 1999 and 1998 the dilutive effect on
earnings per common share was insignificant.
8
<PAGE>
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 year
ended December 31, 1998, for a discussion of the Company's financial condition
as of December 31, 1998, including a discussion of the Company's anticipated
liquidity and working capital requirements during 1999.
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 year ended December 31, 1998, 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 circumstance after the date of this Quarterly Report on Form 10-QSB or
to reflect the occurrence of other unanticipated events.
9
<PAGE>
COMPARISON OF CONSOLIDATED OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1999
(THE "1999 QUARTER") TO THE THREE MONTHS ENDED MARCH 31, 1998 (THE "1998
QUARTER").
Total revenues for the 1999 Quarter were $3,290,643 compared to $3,204,331 for
the 1998 Quarter, an increase of $86,312 (2.7%). In the 1999 Quarter, system and
equipment sales increased $128,128 (5.0%) while maintenance and service revenues
decreased. The decrease in maintenance and service revenue was $41,816 (6.5%)
from the 1998 Quarter, primarily due to a major customer changing from a single
year contract to a multi-year contract at a reduced rate.
The ratio of cost of equipment and system sales to sales decreased from 63.8% in
the 1998 Quarter to 47.5% in the 1999 Quarter, due to an increase in system
sales (which includes related software) and a decrease in hardware sales. Cost
of maintenance and service to related revenue remained fairly constant.
Selling, general and administrative expenses were $1,356,017 in the 1999 Quarter
compared to $1,108,537 in the 1998 Quarter. This was an increase of $247,480
(22.3%) and was primarily attributable to increases in salaries and benefits,
recruiting costs and additional rent for increased space at the Company's
headquarters.
Interest income for the 1999 Quarter was $11,292 compared to $7,793 for the 1998
Quarter. This increase of $3,499 (44.9%) was due to more funds from collection
of receivables available for short term investments.
The provision for income taxes in the 1999 Quarter was $160,000 compared to
$75,000 in the 1998 Quarter. This increase of $85,000 (113.3%) was due to
additional income from operations.
As a result of the foregoing, net income increased $131,696 (116.1%) to $245,117
for the 1999 Quarter.
10
<PAGE>
FINANCIAL CONDITION:
At March 31, 1999, the Company had working capital of $1,866,459 (an increase of
$160,785 from $1,705,674 at December 31, 1998) and cash and cash equivalents
(including short term investments) of $937,422 (as compared to $286,368 at
December 31, 1998). At March 31, 1999, the Company did not have any outstanding
borrowings.
During the first three months of 1999, operating activities provided $883,738 of
net cash, primarily from customers who prepay their annual maintenance
contracts. Investing activities used $232,684 of net cash primarily for software
development.
The Company has a $750,000 discretionary line of credit for the Company's
short-term needs, at an interest rate equal to the 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 has not utilized such
line of credit since February 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.
In 1998, the Company commenced a program to repurchase up to 500,000 shares of
its common stock from time to time in the over-the-counter market. Although no
shares were purchased during the 1999 Quarter, the Company is continuing such
program during 1999 and, through May 10, 1999 the Company purchased 191,500
shares of its common stock for an aggregate of $203,373.
The Company leases its facilities. As of March 31, 1999, the Company had no
material commitments for capital expenditures.
IMPACT OF THE YEAR 2000 ISSUE:
Background
Many currently installed computer systems and software currently record years in
a two-digit format. Such computer systems and software, if not modified, will be
unable to properly recognize dates beyond the year 1999. This inability to
recognize the year 2000 is commonly referred to as the "Year 2000 Issue".
Internal Systems
The Company has reviewed all of its internal systems and has determined that
substantially all of the Company's internal systems are Year 2000 compliant.
Remediation is required for certain systems. The current cost estimate of such
remediation is approximately $50,000.
Current Products
Many of the stand-alone products sold by the Company do not contain a dating
mechanism and such systems, therefore, are deemed to be Year 2000 compliant. The
current versions of the Company's products, which contain dating mechanisms,
including the associated software, are Year 2000 compliant.
11
<PAGE>
Previously Sold Hardware
The Company does not manufacture any of the hardware, which it sells to its
customers, certain of which is standard computer hardware supplied to the
Company for resale by third party manufacturers. The Company has identified all
hardware, which it has sold to its customers during the previous five years,
which will require modification to ensure Year 2000 compliance. Although the
Company's warranties on this older hardware have expired, the Company is in the
process of verifying from its third-party manufacturers whether the hardware
previously supplied by such manufacturers is Year 2000 compliant and, if not,
whether such manufacturers intend to furnish appropriate modifications to their
hardware in the normal course to ensure timely Year 2000 compliance. Although
the Company anticipates that such verification process will be completed during
the second quarter of 1999, all of the responses which the Company has received
to date confirm Year 2000 compliance or timely availability of appropriate Year
2000 modifications. However, several manufacturers which the Company had dealt
with are no longer in business and there can be no assurance that all other
manufacturers will respond to the Company's inquiries or will furnish
appropriate modifications to their previously sold hardware in the normal course
to ensure timely Year 2000 compliance. To the extent that Year 2000 compliance
requires a hardware remedy which will not be supplied by the third-party
manufacturer, external clock and dating mechanisms to interface with the
Company's previously sold hardware are commercially available at the present
time at minimal cost and can be supplied by the Company, in the event that the
Company is requested to do so by its customers.
Previously Furnished Third-Party Software
Certain of the software which the Company previously had supplied to its
customers (including software prepackaged by hardware manufacturers with their
hardware) was developed by third-party suppliers, and the remaining software was
developed by the Company. The Company has identified all third-party software
which it has supplied to its customers during the previous five years which will
require modification to ensure Year 2000 compliance, and has completed its
verification that such software either is Year 2000 compliant or, if not,
whether such suppliers intend to furnish appropriate modifications to their
software in the normal course to ensure timely Year 2000 compliance. The Company
has been advised that all of such software either is Year 2000 compliant or is
expected to be timely modified to be Year 2000 compliant, except that Microsoft
Corporation has advised that Microsoft(R) Access(R) version 1.1 and version 2
and Microsoft Basic Compiler(R) version 4.5 (and previous versions), which
software previously had been supplied by the Company with certain of its older
systems, are not Year 2000 compliant and will not be upgraded by Microsoft.
However, the Company believes that those portions of such non-compliant software
which continue to be used is not critical to any of the operations of the
systems sold by the Company in which such software is used, and that continued
use of such software will not affect the operations of, or the results to be
obtained from, such systems.
12
<PAGE>
Previously Furnished Company Developed Software
Several of the systems sold by the Company before 1998, such as its CP-2000
Deposit/Register Verification System and older versions of its CP-3000 Retail
Cash Office Management System, contain software developed by the Company which
uses internal dating mechanisms that are not Year 2000 compliant. The Company's
warranties on these older systems do not require the Company to enhance such
systems to resolve the Year 2000 issue, although the Company believes that
certain of its customers who do not desire to replace such systems before the
Year 2000 may request that the Company supply software to make such systems Year
2000 compliant. The Company already has designed generic software enhancements
for all of these older systems at a cost of approximately $15,000, which has
been charged to expense. However, many of these older systems have unique
features, and specific modification of the Company's generic software
enhancements generally would be necessary for application to any specific
customer. The cost to the Company of such specific software modifications will
depend on the number of customers who request that their older Company developed
software be modified to be Year 2000 compliant. The Company believes that it
will be able to fully recoup these software modification costs from its
customers.
Key Suppliers and Customers
The Company has commenced a program to assess the possible effects on the
Company's operations of Year 2000 readiness by its key suppliers and customers,
and is in the process of requesting verification of such readiness. The Company
is developing a contingency plan in the event of non-compliance with the Year
2000 issue by its key suppliers and customers and, as a result, does not yet
know whether any possible noncompliance will have a material effect on the
Company and its future results of operations.
13
<PAGE>
PART II - OTHER INFORMATION
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.
14
<PAGE>
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)
May 10, 1999 /s/ GERARD F. MURPHY
------------------------- -----------------------------------
May 10, 1999 Gerard F. Murphy
(Date) Chief Executive Officer
President
(Principal Executive Officer)
May 10, 1999 /s/ JOSEPH M. BURKE
------------------------- -----------------------------------
May 10, 1999 Joseph M. Burke
(Date) Vice President - Finance
(Principal Accounting and
Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidated Balance Sheet as of March 31, 1999 and the Consolidated Statement
of Operations for the three months ended March 31, 1999 and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000828509
<NAME> ATS MONEY SYSTEMS, INC.
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<EXCHANGE-RATE> 1
<CASH> 937,422
<SECURITIES> 0
<RECEIVABLES> 2,610,117
<ALLOWANCES> 140,629
<INVENTORY> 1,141,804
<CURRENT-ASSETS> 4,660,490
<PP&E> 361,897
<DEPRECIATION> 206,004
<TOTAL-ASSETS> 6,638,066
<CURRENT-LIABILITIES> 2,794,031
<BONDS> 0
0
0
<COMMON> 5,942
<OTHER-SE> 3,684,807
<TOTAL-LIABILITY-AND-EQUITY> 6,638,066
<SALES> 2,691,908
<TOTAL-REVENUES> 3,290,643
<CGS> 1,279,889
<TOTAL-COSTS> 1,540,801
<OTHER-EXPENSES> 1,356,017
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 11,292
<INCOME-PRETAX> 405,117
<INCOME-TAX> 160,000
<INCOME-CONTINUING> 245,117
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 245,117
<EPS-PRIMARY> .04
<EPS-DILUTED> .04
</TABLE>
