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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) AUGUST 21, 1996
DYNAMOTION/ATI CORP.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
NEW YORK
(STATE OR OTHER JURISDICTION OF INCORPORATION)
0-19143 93-1192354
(COMMISSION FILE NUMBER) (IRS EMPLOYER IDENTIFICATION NUMBER)
1639 E. EDINGER AVE., SANTA ANA, CA 92705
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (714)541-4818
N.A.
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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DYNAMOTION/ATI CORP.
Registrant hereby amends its current report on form 8-K by filing the
following pro-forma financial information.
ITEM 7. PRO FORMA FINANCIAL STATEMENTS AND EXHIBITS PAGE
------------------------------------------- ----
(A) Pro Forma Financial Information
1. Dynamotion/ATI Corp. Pro Forma Statement of Operations
(unaudited) for the year ended December 31, 1995................. 3
2. Dynamotion/ATI Corp. Pro Forma Balance Sheet (unaudited)
as of June 30, 1996.............................................. 4
3. Dynamotion/ATI Corp. Pro Forma Statement of Operations
(unaudited) for the six months ended June 30, 1996.............. 5
(B) Signatures and Exhibits.
1. Signatures......................................................... 6
2. Exhibits........................................................... N/A
The following pro forma balance sheet as of June 30, 1996, and the pro forma
statement of operations for the six months then ended and the year ended
December 31, 1995 give effect to the sale of the Company's ATI router product
line. The adjustments related to the pro forma balance sheet assume the
transaction was consummated at June 30, 1996, while the adjustments to the pro
forma statement of operations assume the transaction was consummated at the
beginning of the period presented. The final sale occurred on August 21, 1996.
These pro forma statements are not necessarily indicative of the results that
actually would have occurred if the sale had been in effect as of and for the
periods presented or what may be achieved in the future.
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DYNAMOTION/ATI CORP.
PRO FORMA STATEMENT OF OPERATIONS (UNAUDITED)
(AMOUNTS IN 000'S, EXCEPT PER SHARE INFORMATION)
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRO-FORMA
DYNAMOTION/ATI ATI PRO-FORMA FINANCIAL
CORP. ADJUSTMENTS STATEMENTS
-------------- ------------- -----------
<S> <C> <C> <C>
REVENUES $ 20,512 ($ 8,364)a $ 12,148
COSTS AND EXPENSES:
Cost of sales 17,075 (7,052)b 10,023
Selling, general and
administrative expenses 4,473 (454)c 4,019
Research and development expenses 1,464 1,464
Amortization of intangible assets 791 791
Goodwill write-off 3,517 3,517
----------- --------- -----------
Total costs and expenses 27,320 (7,506) 19,814
----------- --------- -----------
LOSS FROM OPERATIONS (6,808) (858) (7,666)
Interest expense, net 614 614
----------- --------- -----------
LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (7,422) (858) (8,280)
Income tax benefit 264 264
----------- --------- -----------
LOSS FROM CONTINUING OPERATIONS (7,158) (858) (8,016)
Discontinued operations 170 170
----------- --------- -----------
NET LOSS ($ 7,328) ($858)d ($ 8,186)
=========== ========= ===========
NET LOSS PER COMMON SHARE:
(Primary and fully diluted)
Loss from continuing operations ($ 4.50) ($ 0.50) ($ 5.00)
Loss from discontinued operations (0.03) (0.03)
----------- --------- -----------
Net Loss ($ 4.53) ($ 0.50) ($ 5.03)
=========== ========= ===========
WEIGHTED AVERAGE COMMON SHARES
USED IN COMPUTATION:
(Primary and fully diluted) 1,728,487 1,728,487
=========== ===========
</TABLE>
(a) Revenue related to the sale of router machines, router spare parts and
router warranty income.
(b) Cost of sales related to the sale of ATI router machines, router spare parts
and router warranty materials.
(c) Estimated commission expense related to ATI router machine sales.
(d) Estimated impact on earnings.
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DYNAMOTION/ATI CORP.
PRO-FORMA BALANCE SHEET (UNAUDITED)
(AMOUNTS IN 000'S, EXCEPT PER SHARE INFORMATION)
JUNE 30, 1996
<TABLE>
<CAPTION>
PRO-FORMA
DYNAMOTION/ATI ATI PRO-FORMA FINANCIAL
CORP. ADJUSTMENTS STATEMENTS
-------------- ------------- ----------
CURRENT ASSETS:
<S> <C> <C> <C>
Cash $ 0 $ 300 a $ 300
Trade accounts receivable, less
allowance for doubtful accounts of $121 4,535 949 e 5,484
Inventories 6,514 (2,327)b 4,187
Prepaid expenses and other current assets 217 217
Note receivable-current 75 200 a 275
-------- -------- --------
TOTAL CURRENT ASSETS 11,341 (878) 10,463
-------- -------- --------
MACHINERY AND EQUIPMENT-Net of
accumulated depreciation of $819 1,101 (111)b 990
NOTE RECEIVABLE-long term 170 600 a 770
INTANGIBLE AND OTHER ASSETS 127 127
PATENTS-Net of accumulated amortization
of $943 3,261 3,261
-------- -------- --------
$ 16,000 ($ 389) $ 15,611
======== ======== ========
CURRENT LIABILITIES:
Accounts payable $ 4,089 $ 4,089
Unfunded disbursements 247 247
Revolving credit facility 3,854 3,854
Current maturities of long-term debt 778 778
Accrued commissions 572 572
Accrued payroll and related expenses 524 524
Other current liabilities 651 (60)c 591
Note payable to bank 2,032 2,032
-------- -------- --------
TOTAL CURRENT LIABILITIES 12,747 (60) 12,687
LONG-TERM DEBT 739 739
-------- -------- --------
REDEEMABLE PREFERRED STOCK 1,531 1,531
-------- -------- --------
SHAREHOLDER'S EQUITY:
Convertible preferred stock, non-cumulative
at $.44 per share, $.01 par value,
liquidation preference $5.50, authorized
2,062,500 shares, issued and outstanding
975,264 shares 10 10
Common stock, $.04 par value, authorized
20,000,000 shares, issued and
outstanding 2,804,494 shares 112 112
Additional paid-in-capital 15,661 15,661
Common stock warrants 270 270
Accumulated deficit (15,070) (329)d (15,399)
-------- -------- --------
TOTAL SHAREHOLDERS' EQUITY 983 (329) 654
-------- -------- --------
$ 16,000 ($ 389) $ 15,611
======== ======== ========
</TABLE>
(a) Record cash and receivable for the sale of the ATI router line.
(b) Record the sale of the ATI assets.
(c) Record the removal of the deferred warranty liability related to the sale of
ATI.
(d) Estimated retained earnings impact of the sale of the ATI router line.
(e) Minimum purchase price for the ATI finished goods inventory.
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DYNAMOTION/ATI CORP.
PRO FORMA STATEMENT OF OPERATIONS (UNAUDITED)
(AMOUNTS IN 000'S, EXCEPT PER SHARE INFORMATION)
SIX MONTHS ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
PRO-FORMA
DYNAMOTION/ATI ATI PRO-FORMA FINANCIAL
CORP. ADJUSTMENTS STATEMENTS
-------------- ------------- ----------
<S> <C> <C> <C>
REVENUES $ 8,948 ($ 2,234)a $ 6,714
COSTS AND EXPENSES:
Cost of sales 6,809 (1,568)b 5,241
Selling, general and
administrative expenses 1,780 (55)c 1,725
Research and development expenses 905 905
Amortization of intangible assets 169 169
----------- ----------- ---------
Total costs and expenses 9,663 (1,623) 8,040
----------- ----------- ---------
LOSS FROM OPERATIONS (715) (611)d (1,326)
Interest expense, net 330 330
----------- ----------- ---------
NET LOSS ($ 1,045) ($ 611) ($ 1,656)
=========== =========== =========
NET LOSS PER COMMON SHARE:
(Primary and fully diluted) ($ 0.42) ($ 0.23) ($ 0.65)
=========== =========== =========
WEIGHTED AVERAGE COMMON SHARES
USED IN COMPUTATION:
(Primary and fully diluted) 2,639,251 2,639,251
=========== =========
</TABLE>
(a) Revenue related to the sale of router machines, router spare parts and
router warranty income.
(b) Cost of sales related to the sale of ATI router machines, router spare parts
and router warranty materials.
(c) Estimated commission expense related to ATI router machine sales.
(d) Estimated impact on earnings.
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DYNAMOTION/ATI CORP.
SIGNATURE
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.
DYNAMOTION/ATI CORP.
Date: October 16, 1996 By:/s/ Kirk A. Waldron
------------------ ----------------------
Kirk A. Waldron
Chief Financial Officer and
Chief Accounting Officer
