UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] Quarterly Report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the quarterly period ended
January 31, 1998.
or
[ ] Transition Report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 For the transition period from
_________ to __________
Commission File No. 0-27498
CFM TECHNOLOGIES, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 22-2298698
------------------------------ -----------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1336 ENTERPRISE DRIVE, WEST CHESTER, PENNSYLVANIA 19380
--------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (610) 696-8300
N/A
--------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the Registrant (1) has filed all reports 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.
Yes X No
-----
The number of outstanding shares of the Registrant's Common Stock, no par
value per share, on March 11, 1998 was 7,914,427.
<PAGE>
CFM TECHNOLOGIES, INC. AND SUBSIDIARIES
INDEX
PART 1. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets (unaudited)
January 31, 1998 and October 31, 1997 ............. 3
Consolidated Statements of Income (unaudited)
Three months ended January 31, 1998 and 1997 ...... 5
Consolidated Statements of Cash Flows (unaudited)
Three months ended January 31, 1998 and 1997 ...... 6
Notes to Consolidated Financial Statements ........ 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations .............. 9
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of
Security Holders ............................... 14
Item 6. Exhibits and Reports on Form 8-K ................ 14
Signatures ..................................... 15
Exhibit Index .................................. 16
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
CFM TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)
January 31, October 31,
ASSETS 1998 1997
------------- ------------
CURRENT ASSETS:
Cash and cash equivalents $ 32,756 $ 26,865
Short-term investments 12,793 19,316
Accounts receivable 29,060 33,392
Inventories 17,211 16,081
Prepaid expenses and other 811 1,709
Deferred income taxes 1,510 1,371
--------- ---------
Total current assets 94,141 98,734
--------- ---------
PROPERTY, PLANT AND EQUIPMENT:
Land 540 540
Building and improvements 4,467 3,782
Machinery and equipment 9,280 8,106
Furniture and fixtures 1,382 1,337
--------- ---------
15,669 13,765
Less - Accumulated depreciation
and amortization (4,267) (3,562)
--------- ---------
Net property, plant and equipment 11,402 10,203
--------- ---------
OTHER ASSETS 463 559
========= =========
$ 106,006 $ 109,496
========= =========
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
CFM TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
January 31, October 31,
LIABILITIES AND SHAREHOLDERS' EQUITY 1998 1997
---- ----
CURRENT LIABILITIES:
Current portion of long-term debt $ 646 $ 617
Accounts payable 6,180 7,709
Accrued expenses 7,199 8,612
--------- ---------
Total current liabilities 14,025 16,938
--------- ---------
LONG-TERM DEBT 2,700 2,571
--------- ---------
DEFERRED INCOME TAXES 136 119
--------- ---------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Preferred stock, no par value;
1,000,000 authorized shares; no shares
issued or outstanding -- --
Common stock, no par value; 30,000,000
authorized shares; 7,914,427 and
7,913,588 shares issued and outstanding 80,768 80,762
Deferred compensation (214) (235)
Retained earnings 8,591 9,341
--------- ---------
Total shareholders' equity 89,145 89,868
--------- ---------
$ 106,006 $ 109,496
========= =========
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
CFM TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended
January 31,
--------------------------
1998 1997
---- ----
NET SALES $ 15,504 $ 14,792
COST OF SALES 8,654 7,968
-------- --------
Gross profit 6,850 6,824
-------- --------
OPERATING EXPENSES:
Research, development and engineering 2,822 1,981
Selling, general and administrative 5,605 2,856
-------- --------
Total operating expenses 8,427 4,837
-------- --------
Operating income (1,577) 1,987
INTEREST (INCOME) EXPENSE, NET (505) (95)
-------- --------
Income before income taxes (1,072) 2,082
INCOME TAXES (322) 708
======== ========
NET INCOME(LOSS) $ (750) $ 1,374
======== ========
NET INCOME(LOSS) PER COMMON SHARE:
Basic $ (0.09) $ 0.23
======== ========
Diluted $ (0.09) $ 0.21
======== ========
SHARES USED IN COMPUTING NET INCOME (LOSS)
PER COMMON SHARE:
Basic 7,914 6,053
======== ========
Diluted 7,914 6,416
======== ========
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
CFM TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
January 31,
-------------------------
1998 1997
---- ----
<S> <C> <C>
OPERATING ACTIVITIES:
Net income (loss) $ (750) $ 1,374
Adjustments to reconcile net income (loss) to net
cash provided by operating activities
Depreciation and amortization 724 422
Deferred compensation 21 --
Deferred income tax benefit (122) (130)
(Increase) decrease in -
Accounts receivable 4,332 (2,204)
Inventories (1,130) (193)
Prepaid expenses and other current assets 898 112
Other assets 77 (48)
Increase (decrease) in -
Accounts payable (1,529) 404
Accrued expenses (1,413) 272
Customer deposits -- 32
-------- --------
Net cash provided by operating
activities 1,108 41
-------- --------
INVESTING ACTIVITIES:
Purchases of short-term investments (965) (1,957)
Proceeds from short-term investments 7,488 1,479
Purchases of property, plant and equipment (1,417) (326)
Net cash (used in) provided by investing
-------- --------
activities 5,106 (804)
-------- --------
FINANCING ACTIVITIES:
Payments on long-term debt (329) (133)
Proceeds from exercise of stock options 6 3
-------- --------
Net cash used in financing activities (323) (130)
-------- --------
NET INCREASE(DECREASE) IN CASH AND CASH
EQUIVALENTS 5,891 (893)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 26,865 9,308
======== ========
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 32,756 $ 8,415
======== ========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest expense $ 77 $ 58
Cash received for interest income 578 119
Cash paid for income taxes 110 --
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Machinery acquired under capital leases $ 487 $ 750
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
CFM TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) BASIS OF PRESENTATION:
The condensed financial statements included herein have been prepared by
CFM Technologies, Inc. without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations. These statements include all adjustments
that, in the opinion of management, are necessary to provide a fair statement of
the results for the periods covered. These financial statements should be read
in conjunction with the audited financial statements and the notes thereto
included in the Company's Annual Report on Form 10-K for the fiscal year ended
October 31, 1997. The results of operations for the interim periods presented
are not necessarily indicative of the results for the full year.
(2) ACCOUNTS RECEIVABLE:
January 31, 1998 October 31, 1997
---------------- ----------------
Billed $20,434,000 $21,944,000
Unbilled 8,626,000 11,448,000
----------- ----------
$29,060,000 $33,392,000
=========== ===========
Unbilled receivables represent final retainage amounts to be
billed upon completion of the installation process.
(3) INVENTORIES:
January 31, 1998 October 31, 1997
---------------- ----------------
Raw materials $ 8,769,000 $ 8,373,000
Work in progress 8,442,000 7,708,000
----------- ------------
$17,211,000 $16,081,000
=========== ===========
7
<PAGE>
(4) NET INCOME (LOSS) PER SHARE:
Basic net income (loss) per common share was computed by dividing net
income (loss) by the weighted average number of shares of common stock
outstanding during the period. Diluted net income per common share for the three
months ended January 31, 1997 reflects the potential dilution from the exercise
of outstanding stock options into common stock. Diluted net loss per common
share for the three months ended January 31, 1998 would have been antidilutive
if it reflected the potential dilution from the exercise of outstanding stock
options into common stock, and therefore were not included in the calculation.
In 1997, the Company adopted SFAS No. 128, "Earnings per Share," effective
December 15, 1997. As a result, the Company's reported earnings per share for
the three month period ended January 31, 1997 were restated.
The weighted average common and common equivalent shares outstanding for
purposes of calculating net income (loss) per common share are computed as
follows:
Three Months Ended
January 31,
-------------------------
1998 1997
----------- -----------
Weighted average common shares
outstanding used for basic net
income (loss) per common share...... 7,914,000 6,053,000
Dilutive effect of common stock
options outstanding................. -- 363,000
----------- -----------
Weighted average common and common
equivalent shares outstanding
used for diluted net income (loss)
per common share.................... 7,914,000 6,416,000
=========== ===========
(5) GEOGRAPHIC INFORMATION:
Historically, a significant portion of the Company's sales have been to
Asian companies. Included in accounts receivable as of January 31, 1998, was
$12.5 million due from Asian companies. The current economic and currency
situation in certain Asian countries, which includes currency devaluation,
external support and economic reorganization programs to reduce growth and
credit demand, could have a material adverse effect on the Company's operating
results.
(6) RECENT DEVELOPMENT
On March 16, 1998, the Company announced a workforce reduction totaling 78
of the Company's 407 employees. The Company has experienced a reduction in
customer demand which it now believes will continue over the next several
quarters as the semiconductor industry responds to the currency and economic
uncertainties in some of the Asian countries where the Company does business and
certain fundamental oversupply issues. As a result, the Company has taken what
it believed to be the necessary actions to better align costs with industry
conditions and overall reduced demand for semiconductor and FPD capital
equipment. In addition, the Company's senior management has voluntarily taken a
15% reduction in current compensation which will remain in effect until
conditions improve.
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
OVERVIEW
CFM designs, manufactures and markets advanced wet processing equipment for
sale to the worldwide semiconductor and flat panel display ("FPD") manufacturing
industries. The Company was founded in 1984 and began commercial operations in
1990 following a period of technology and product development, during which time
the Company's patented Full-Flow(TM) enclosed processing and
Direct-Displacement(TM) drying technologies were developed.
The Company has derived substantially all of its revenues from the sale of
a relatively small number of its systems, which typically range in price from
$1.2 million to $2.7 million. The Company sells its systems worldwide and
records a significant portion of its sales to customers outside the United
States. The Company's international sales have occurred in Korea, Europe,
Taiwan, Japan and Israel. The Company anticipates that international sales will
continue to account for a significant portion of net sales, although the
percentage of international sales is expected to fluctuate from period to
period. Because of the economic and currency situation in Asia, the Company
expects the proportion of its total net sales represented by international sales
to be lower during fiscal 1998. International orders accounted for 86% of the
Company's backlog at January 31, 1998. The Company's near-term results are
likely to be negatively impacted by the continuing economic difficulties in Asia
and certain over-capacity issues facing the semiconductor industry.
RESULTS OF OPERATIONS
The following table sets forth certain financial data for the periods
indicated, expressed as a percentage of net sales:
Three Months Ended
January 31,
---------------------
1998 1997
---- -----
Net sales 100.0% 100.0%
Gross profit 44.2% 46.1%
Research, development
and engineering 18.2% 13.4%
Selling, general and 36.2% 19.3%
administrative
Operating income (loss) (10.2%) 13.4%
Income (loss) before income
taxes (6.9%) 14.1%
Net income (loss) (4.8%) 9.3%
Net Sales. Net sales of $15.5 million for the three month period ended
January 31, 1998 increased 4.8% from $14.8 million in the first quarter of
fiscal 1997. While net sales increased slightly from net sales in the first
quarter of fiscal 1997 due to increased acceptance of the Company's Full-Flow
systems by the semiconductor industry, net sales were down 13.5% from the
quarter ended October 31, 1997 as a result of economic and currency problems in
Asia and a general reduction in the
9
<PAGE>
rate of order placement by semiconductor device manufacturers worldwide.
International sales represented 31.6% and 62.2% of total net sales in the three
months ended January 31, 1998 and 1997, respectively. International sales during
the first quarter of fiscal 1998 occurred at a significantly lower rate than
that experienced during the full 1997 fiscal year. Approximately 35% of the
international portion of the Company's backlog at January 31, 1998 represented
orders postponed because of the economic and currency situation in Asia.
Historically, a significant portion of the Company's sales have been to Asian
companies.
Gross Profit. Gross profit as a percentage of net sales decreased from
46.1% in the three month period ended January 31, 1997 to 44.2% for the same
period in fiscal 1998. This change in gross profit percentage is primarily the
result of reductions in production volume. The Company's gross margins have
varied significantly from quarter to quarter and will continue to be affected by
a variety of factors, including the mix and average selling prices of systems,
sales of original equipment manufacturer automation equipment which yield
relatively lower gross margins, costs associated with new system introductions
and enhancements and the volume of production.
Research, Development and Engineering. Research, development and
engineering expenses for the quarter ended January 31, 1998 increased by 42% to
$2.8 million from $2.0 million recorded in the corresponding period during
fiscal 1997. Development of the Company's new 300mm Full-Flow product along with
continued substantial investment in new application process development
accounted for a major portion of the expenses in fiscal 1998 costs. The Company
anticipates that spending in support of research, development and engineering
will decline during the remainder of fiscal 1998 as development of the Company's
300mm semiconductor platform concludes and work on added process applications
moderates.
Selling, General and Administrative. Selling, general and administrative
expenses increased from $2.9 million or 19.3% of net sales in the quarter ended
January 31, 1997 to $5.6 million or 36.2% of net sales in the quarter ended
January 31, 1998. The increases in the quarter ended January 31, 1998 compared
to the corresponding period during fiscal 1997 resulted primarily from increases
in sales and marketing costs related to increased customer support and increased
selling activity and legal expenses related to litigation undertaken to enforce
one of the Company's patents. During the quarter ended January 31, 1998, a jury
in the United States District Court for the District of Delaware found one of
the Company's patents to be valid and enforceable on all asserted claims and
found the defendant to have willfully infringed on all asserted claims (see
"Litigation"). Costs related to this litigation during the quarter ended January
31, 1998 were approximately $1.0 million. The Company believes that selling,
general and administrative expenses, including ongoing legal expenses related to
patent litigation and sales and support expenses in connection with the
Company's efforts to increase its net sales, will decrease during the remainder
of fiscal 1998.
Interest (Income) Expense, Net. Interest income, net of interest expense,
was $95,000 and $505,000 in the quarters ended January 31, 1997 and 1998,
respectively. Net interest income was the result of interest income earned by
the Company from investment of funds not immediately needed to support the
Company's operations.
Income Taxes. The Company's effective tax rate was 30% during the three
months ended January 31, 1998, consistent with the effective rate for fiscal
1997.
10
<PAGE>
BACKLOG
As of January 31, 1998, the Company's backlog of orders was $16.2 million,
compared to $33.5 million as of January 31, 1997. During fiscal 1997, the
delivery of two orders was postponed due to a fire in a customer's factory.
During the first quarter of fiscal 1998, the delivery of two orders was
postponed due to the economic and currency situation in Korea. These postponed
orders remain in the Company's backlog and represent approximately 61% of such
backlog of orders at January 31, 1998. While none of these orders have scheduled
shipment dates, management believes that these orders will be shipped within 12
months. During the quarter ended January 31, 1998, orders from the U.S.
accounted for 54% of total orders with the balance coming from Europe (43%) and
East Asia (3%). All of these orders were for semiconductor systems. Backlog at
January 31, 1998 consists of semiconductor systems with 61% due to be shipped to
East Asia and the balance to Europe (25%) and the U.S. (14%). It has been the
experience of the Company that neither reported backlog at a particular date nor
the pattern of receipt of orders is necessarily indicative of shipments during
any particular future period.
RECENT DEVELOPMENT
On March 16, 1998, the Company announced a workforce reduction totaling 78
of the Company's 407 employees. The Company has experienced a reduction in
customer demand which it now believes will continue over the next several
quarters as the semiconductor industry responds to the currency and economic
uncertainties in some of the Asian countries where the Company does business and
certain fundamental oversupply issues. As a result, the Company has taken what
it believed to be the necessary actions to better align costs with industry
conditions and overall reduced demand for semiconductor and FPD capital
equipment. In addition, the Company's senior management has voluntarily taken a
15% reduction in current compensation which will remain in effect until
conditions improve.
LIQUIDITY AND CAPITAL RESOURCES
At January 31, 1998, the Company had $32.8 million in cash and cash
equivalents, $12.8 million in short-term investments and $80.1 million in
working capital. At October 31, 1997 the Company had $26.9 million in cash and
cash equivalents, $19.3 million in short-term investments and $81.8 million in
working capital.
While essentially no net cash was either provided by or used in operating
activities during the three months ended January 31, 1997, net cash of $1.1
million was provided by operating activities during the three months ended
January 31, 1998. Accounts receivable decreased by $4.3 million during the first
three months of fiscal 1998. During the same period, inventories increased by
$1.1 million, due primarily to the postponement of shipments to a Korean
semiconductor manufacturer because of the economic and currency situation in
Korea. Acquisitions of property, plant and equipment, including machinery
acquired under capital leases, were $1.9 million for the first three months of
fiscal 1998 and $1.1 million for the first three months of fiscal 1997.
Acquisitions during the first quarter of fiscal 1998 included improvements
and additions to the Company's applications laboratory and improvements to
leased facilities under construction. Expenditures during the first quarter of
fiscal 1997 included purchase/leasing of equipment for use in customer and
employee training and information systems in support of an improved engineering
design infrastructure.
11
<PAGE>
The Company has a relationship with a commercial bank which includes a
mortgage on the Company's manufacturing facility in the amount of $0.8 million
and a $7.5 million unsecured revolving demand line of credit with an interest
rate equal to the bank's overnight borrowing rate plus 1/4%. The mortgage bears
interest at an annual rate of 8.9%. As of January 31, 1998, no balance was
outstanding under the Company's line of credit.
The Company also has mortgage notes payable to the Pennsylvania Industrial
Development Authority in the amount of $0.5 million bearing interest at 2.0% and
to the Chester County Development Council in the amount of $0.1 million bearing
interest at 5.0%. In addition, the Company has outstanding capital lease
obligations in the amount of $1.7 million bearing interest at rates ranging from
7% to 12% per annum.
The Company had outstanding accounts receivable of approximately $33.4
million and $29.1 million as of October 31, 1997 and January 31, 1998,
respectively. As of January 31, 1998 the Company had accounts receivable of
$12.5 million due from Asian companies. No allowance for doubtful accounts
receivable has been recorded because the Company believes that all such accounts
receivable are fully realizable.
The Company believes that existing cash and short-term investment balances
and its available line of credit will be sufficient to meet the Company's cash
requirements during the next 12 months. However, depending upon its rate of
growth and profitability, the Company may require additional equity or debt
financing to meet its working capital requirements or capital expenditure needs.
There can be no assurance that additional financing, if needed, will be
available when required or, if available, will be on terms satisfactory to the
Company.
The Company is currently in the process of evaluating its information
technology infrastructure for Year 2000 compliance. The Company does not expect
that the cost to modify its information technology infrastructure to be Year
2000 compliant will be material to its financial condition or results of
operations. The Company does not anticipate material disruption in its
operations as a result of any failure by the Company to be in compliance. The
Company does not currently have any information concerning the Year 2000
compliance status of its suppliers and customers. In the event that any of the
Company's significant suppliers or customers does not successfully and timely
achieve Year 2000 compliance, the Company's business or operations could be
adversely affected.
LITIGATION
The Company has asserted certain of its patent rights against two
defendants and is the defendant in another matter seeking a declaratory judgment
of patent noninfringement and invalidity, each matter pertaining to U.S. Letters
Patent No. 4,911,761. The United States District Court for the District of
Delaware granted a summary judgment in one matter wherein the Company is the
plaintiff and the Company has filed for reargument.
On December 12, 1997, a jury, following trial in the United States District
Court for the District of Delaware, found the subject patent valid and
enforceable on all asserted claims and found the defendant to have willfully
infringed on all asserted claims. Post-trial motions by both parties are being
considered by the court at the date of this filing.
Some of the claims in the matter seeking declaratory judgment have been
dismissed for lack of jurisdiction, a finding which is under appeal.
12
<PAGE>
Although management believes that the ultimate resolution of these matters will
not have a material adverse impact on the Company's financial position or
results of operations, there can be no assurance in that regard.
FORWARD LOOKING STATEMENTS
Statements in this Report on Form 10-Q including those concerning the
Company's expectations of future sales, gross profits, research, development and
engineering expenses, selling, general and administrative expenses, product
introductions and cash requirements include certain forward-looking statements.
As such, actual results may vary materially from such expectations. Factors
which could cause actual results to differ from expectations include variations
in the level of orders which can be affected by general economic conditions and
growth rates in the semiconductor and FPD manufacturing industries and in the
markets served by the Company's customers, the international economic and
political climates, difficulties or delays in product functionality or
performance, the delivery performance of sole source vendors, the timing of
future product releases, failure to respond adequately to either changes in
technology or customer preferences, changes in pricing by the Company or its
competitors, ability to manage growth, risk of nonpayment of accounts
receivable, changes in budgeted costs or failure to realize a successful outcome
to pending patent litigation, all of which constitute significant risks. There
can be no assurance that the Company's results of operations will not be
adversely affected by one or more of these factors.
13
<PAGE>
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Company's annual meeting of stockholders was held on March 5, 1998. The
following are results of the voting on the proposal submitted to the stockholder
at the annual meeting:
Proposal No.1 - Election of Directors. The following individuals were
elected as directors:
NAME FOR WITHHELD
Christopher F. McConnell 7,145,024 59,680
Roger A. Carolin 7,145,024 59,680
James J. Kim 7,145,024 59,680
Brad S. Mattson 7,145,024 59,680
Burton E. McGillivray 7,145,024 59,680
Milton S. Stearns, Jr. 7,145,024 59,680
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
11 Statement re: computation of earnings per common share
27 Financial Data Schedule
(b) Reports on Form 8-K
None.
14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Dated: March 16, 1998
CFM Technologies, Inc.
(Registrant)
By: /s/ ROGER A. CAROLIN
--------------------------
Roger A. Carolin
Chief Executive Officer
By: /s/ LORIN J. RANDALL
--------------------------
Lorin J. Randall
Chief Financial Officer
15
<PAGE>
EXHIBIT INDEX
EXHIBIT
11 Statement re: computation of per share earnings.
27 Financial Data Schedule.
EXHIBIT 11
CFM TECHNOLOGIES, INC. AND SUBSIDIARIES
COMPUTATION OF NET INCOME (LOSS) PER COMMON SHARE
FOR THE THREE MONTHS ENDED
OCTOBER 31,
---------------------------
1998 1997
------------ ------------
(AMOUNTS IN THOUSANDS,
EXCEPT PER SHARE DATA)
Net income (loss) $ (750) $1,374
======= ======
Weighted average common shares used
for basic net income (loss) per
common share: 7,914 6,053
Dilutive effect of common stock
options outstanding: -- 363
Weighted average common and common
equivalent shares used for diluted net
income (loss) per common share: 7,914 6,416
======= ======
Net income (loss) per common share:
Basic $ (0.09) $ 0.23
======= ======
Diluted $ (0.09) $ 0.21
======= ======
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1998
<PERIOD-END> JAN-31-1998
<CASH> 32756
<SECURITIES> 12793
<RECEIVABLES> 29060
<ALLOWANCES> 0
<INVENTORY> 17211
<CURRENT-ASSETS> 94141
<PP&E> 15669
<DEPRECIATION> (4267)
<TOTAL-ASSETS> 106006
<CURRENT-LIABILITIES> 14025
<BONDS> 0
0
0
<COMMON> 80768
<OTHER-SE> 8377
<TOTAL-LIABILITY-AND-EQUITY> 106006
<SALES> 15504
<TOTAL-REVENUES> 15504
<CGS> 8654
<TOTAL-COSTS> 8427
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (505)
<INCOME-PRETAX> (1072)
<INCOME-TAX> (322)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (750)
<EPS-PRIMARY> (.09)
<EPS-DILUTED> (.09)
</TABLE>
