UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the quarterly period ended June 27, 1998 or
[n] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from _________ to ________.
Commission file number 0-17885
BEI MEDICAL SYSTEMS COMPANY, INC.
(Exact name of Registrant as specified in its charter)
Delaware 71-0455756
- ------------------------ ------------------------------------
(State of incorporation) (I.R.S. Employer Identification No.)
100 Hollister Road
Teterboro, New Jersey 07608
---------------------------
(Address of principal executive offices)
(Formerly 83 Hobart Street, Hackensack, New Jersey 07601)
(201) 727-4900
--------------
(Registrant's telephone number)
Indicate by check mark whether the Registrant (1) has filed all reports required
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 ___
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock: $.001 Par Value, 7,728,296 shares as of August 1, 1998
<PAGE>
BEI MEDICAL SYSTEMS COMPANY, INC. AND SUBSIDIARIES
INDEX
PART 1. FINANCIAL INFORMATION PAGE
--------------------- ----
Item 1. Financial Statements
Condensed Consolidated Balance Sheets--June 27, 1998
(unaudited) and September 27, 1997 3
Condensed Consolidated Statements of Operations - Three
Month and Nine Month Periods ended June 27, 1998 and
June 28, 1997 (unaudited) 4
Condensed Consolidated Statements of Cash Flows - Nine
Month Periods ended June 27, 1998 and June 28, 1997
(unaudited) 5
Notes to Condensed Consolidated Financial
Statements--June 27, 1998 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
PART II. OTHER INFORMATION
-----------------
Item 1. Legal Proceedings 13
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
(a) Exhibits
27.1 Financial Data Schedule
(b) Reports on Form 8-K
SIGNATURES 14
-2-
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
BEI MEDICAL SYSTEMS COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 27, September 27,
1998 1997
----------- ----------------
(Unaudited) (See note below)
(dollars in thousands)
ASSETS
Cash and cash equivalents $ 5,041 $ 9,271
Trade receivables, net 1,751 1,958
Inventories -- Note 2 3,295 2,939
Other current assets 2,188 296
------- -------
Total current assets 12,275 14,464
Property, plant and equipment, net 828 811
Tradenames, patents and other, net 2,673 3,708
Goodwill, net 3,415 3,595
Other assets 137 6
------- -------
$19,328 $22,584
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable $ 1,441 $ 346
Accrued expenses and other liabilities 1,927 2,843
Current portion of long-term debt 54 190
------- -------
Total current liabilities 3,422 3,379
Long-term debt, less current portion -- 22
Minority interest -- 1,523
Stockholders' equity 15,906 17,660
------- -------
$19,328 $22,584
======= =======
See notes to condensed consolidated financial statements.
Note: The balance sheet at September 27, 1997 has been derived from the audited
consolidated balance sheet at that date but does not include all the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
-3-
<PAGE>
BEI MEDICAL SYSTEMS COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
------------------------- -------------------------
June 27, June 28, June 27, June 28,
1998 1997 1998 1997
-------- -------- ------- --------
(dollars in thousands except per share amounts)
<S> <C> <C> <C> <C>
Revenues $ 2,293 $ 2,472 $ 7,246 $ 7,606
Cost of sales 1,350 1,534 4,239 4,426
------- ------- ------- -------
Gross profit 943 938 3,007 3,180
Selling, general and administrative expenses 1,757 2,216 6,253 6,012
Research, development and related
expenses 778 479 1,772 1,380
------- ------- ------- -------
Loss from operations (1,592) (1,757) (5,018) (4,212)
Interest income 54 16 272 128
Interest expense (2) (13) (21) (53)
------- ------- ------- -------
Loss from continuing operations
before income taxes (1,540) (1,754) (4,767) (4,137)
Provision (benefit) for income taxes (563) (617) (1,443) (1,421)
------- ------- ------- -------
Loss from continuing operations (977) (1,137) (3,324) (2,716)
Income from discontinued operations,
net of income taxes -- 1,696 -- 3,183
------- ------- ------- -------
Net income (loss) $ (977) $ 559 $(3,324) $ 467
======= ======= ======= =======
Earnings (Loss) per Common Share - Note 3
Basic and Diluted Earnings (Loss) per Common Share
Loss from continuing operations $ (0.13) $ (0.17) $ (0.45) $ (0.40)
Income from discontinued operations, net
of income taxes -- 0.25 -- 0.47
------- ------- ------- -------
Net income (loss) per common share $ (0.13) $ 0.08 $ (0.45) $ 0.07
======= ======= ======= =======
Dividends per common share
$ -- $ 0.02 $ -- $ 0.06
======= ======= ======= =======
</TABLE>
See notes to condensed consolidated financial statements
-4-
<PAGE>
BEI MEDICAL SYSTEMS COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
June 27, June 28,
1998 1997
------- -------
(dollars in thousands)
Net cash used in operating activities $(3,717) $(2,966)
Cash flows from investing activities:
Purchases of property, plant and equipment (247) (161)
Purchase of patents and licenses (108) (186)
Other -- 18
------- -------
Net cash used in investing activities (355) (329)
Cash flows from financing activities:
Payments on long-term debt (158) (714)
Proceeds from issuance of common stock -- 872
Purchase of treasury stock -- (1,303)
Payment of cash dividends -- (563)
Funding from discontinued operations -- (3,153)
------- -------
Net cash used in financing activities (158) (4,861)
------- -------
Net decrease in cash and cash equivalents (4,230) (8,156)
Cash and cash equivalents at beginning of period 9,271 9,128
------- -------
Cash and cash equivalents at end of period $ 5,041 $ 972
======= =======
See notes to condensed consolidated financial statements.
-5-
<PAGE>
BEI MEDICAL SYSTEMS COMPANY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
June 27, 1998
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, 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, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the interim periods presented are not
necessarily indicative of the results that may be expected for the year ending
October 3, 1998. For further information, refer to the consolidated financial
statements and footnotes thereto in the Company's Annual Report on Form 10-K for
the year ended September 27, 1997.
On September 27, 1997, BEI Electronics, Inc. ("Electronics") distributed to
holders of Electronics common stock one share of common stock of BEI
Technologies, Inc. ("Technologies"), a newly formed subsidiary, for each share
of Electronics common stock held (the "Distribution"). In connection with the
Distribution, Electronics transferred to Technologies all of the assets,
liabilities and operations of its BEI Sensors & Systems Company, Inc.
("Sensors") and Defense Systems Company, Inc. ("Defense") business segments.
Accordingly, the financial position and results of operations of Sensors and
Defense are shown as discontinued operations. On November 4, 1997, Electronics
merged its subsidiary, BEI Medical Systems Company, Inc. into Electronics (the
"Merger"). After the Merger, Electronics changed its name to BEI Medical Systems
Company, Inc. (the "Company").
NOTE 2--INVENTORIES
June 27, September
1998 27, 1997
-------- ---------
(dollars in thousands)
Finished products $2,220 $1,843
Work in process 158 230
Materials 917 866
------ ------
Inventories $3,295 $2,939
====== ======
-6-
<PAGE>
NOTE 3--EARNINGS (LOSS) PER COMMON SHARE
The following table sets forth the computation of basic and diluted earnings
loss per common share:
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
June 27, June 28, June 27, June 28,
1998 1997 1998 1997
--------- ------- --------- -------
(dollars in thousands except per share amounts)
<S> <C> <C> <C> <C>
Numerator
---------
Loss from continuing operations $ (977) $(1,137) $ (3,324) $(2,716)
Income from discontinued operations,
net of income taxes -- 1,696 -- 3,183
--------- ------- --------- -------
Net income (loss) available to common
stockholders $ (977) $ 559 $ (3,324) $ 467
========= ======= ========= =======
Denominator
-----------
Denominator for basic and diluted
earnings per common share --
weighted average shares, net of nonvested
shares (Quarter and Nine Months ended June 7,428 6,810 7,316 6,826
27, 1998 - 361 and 383 shares, respectively;
Quarter and Nine Months ended
June 28, 1997 - 207 and 221 shares,
respectively)
Basic and diluted earnings (loss)
---------------------------------
per common share
----------------
From continuing operations, net of income
taxes $ (0.13) $ (0.17) $ (0.45) $ (0.40)
From discontinued operations, net of income
taxes 0.25 -- 0.47
--------- ------- --------- -------
Net income (loss) $ (0.13) $ 0.08 $ (0.45) $ 0.07
========= ======= ========= =======
</TABLE>
Due to the loss from continuing operations, earnings per share is based on
weighted average common shares only, as any assumption of the conversion of
equivalent shares would be antidilutive.
-7-
<PAGE>
NOTE 4--CONTINGENCIES AND LITIGATION
CooperSurgical, Inc. vs. BEI Medical Systems Company, Inc. et al.
- -----------------------------------------------------------------
In October 1993, CooperSurgical, Inc., a subsidiary of The Cooper Companies,
filed a claim for unspecified damages alleging unfair competition due to actions
by the Company and its president at the time, Richard Turner, a former employee
of The Cooper Companies, and others. On January 31, 1996, the Court issued a
ruling, which affirmed the legal basis for the Company to assert a counterclaim
for damages against CooperSurgical regarding the parties' electrosurgical
generator contract.
The trial started in October 1997 in the Superior Court of New Jersey for Bergen
County, Chancery Division, and was adjourned in January 1998 pending a
settlement discussion. During the third quarter of fiscal 1998 an agreement in
principal was reached, and in July 1998, the final settlement agreement was
signed whereby the Company agreed to pay $300,000 in cash, net of insurance
reimbursement, and up to $100,000 in royalties on future product sales.
Other
From time to time the Company may become involved in or subject to various
litigation and legal proceedings incidental to the general conduct of the
Company business. The Company is not involved in any material legal proceedings.
-8-
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Except for the historical information contained herein, the following discussion
contains forward-looking statements that involve risks and uncertainties. The
Company's actual results could differ materially from those discussed here.
Factors that could cause or contribute to such differences include, but are not
limited to, those discussed in this section, and those discussed in the
Company's Form 10-K for the year ended September 27, 1997.
On September 27, 1997, BEI Electronics, Inc. ("Electronics") distributed to
holders of Electronics common stock one share of common stock of BEI
Technologies, Inc. ("Technologies"), a newly formed subsidiary, for each share
of Electronics common stock held (the "Distribution"). In connection with the
Distribution, Electronics transferred to Technologies all of the assets,
liabilities and operations of its BEI Sensors & Systems Company, Inc.
("Sensors") and Defense Systems Company, Inc. ("Defense") business segments.
Accordingly, the financial position and results of operations of Sensors and
Defense are shown as discontinued operations. On November 4, 1997, Electronics
merged its subsidiary, BEI Medical Systems Company, Inc. into Electronics (the
"Merger"). After the Merger, Electronics changed its name to BEI Medical Systems
Company, Inc. (the ("Company").
The following table sets forth, for the fiscal periods indicated, the percentage
of revenues represented by certain items in the Company's Condensed Consolidated
Statements of Operations.
<TABLE>
<CAPTION>
Quarter Ended Nine Months Ended
------------------- --------------------
June 27, June 28, June 27, June 28,
1998 1997 1998 1997
------ ------- ------- -------
<S> <C> <C> <C> <C>
Revenues 100% 100% 100% 100%
Cost of sales 59 62 58 58
Gross margin ---- ---- ---- ----
41 38 42 42
Operating expenses
Selling, general and administrative expenses 76 90 86 79
Research, development and related expenses 34 19 25 18
---- ---- ---- ----
Loss from operations (69) (71) (69) (55)
Interest income 2 1 3 2
Interest expense -- (1) -- (1)
---- ---- ---- ----
Loss from continuing operations before income
taxes (67) (71) (66) (54)
Provision (benefit) for income taxes (24) (25) (20) (18)
---- ---- ---- ----
Loss from continuing operations (43)% (46)% (46)% (36)%
==== ==== ==== ====
</TABLE>
Quarters ended June 27, 1998 and June 28, 1997
Revenues for the third quarter of fiscal 1998 were $2,293,000, a decrease of
$179,000 or 7% from the comparable period in fiscal 1997. The decline in
revenues reflects the impact of lower OEM shipments, which decreased $291,000 in
the third quarter of fiscal 1998, and declined from 21% of total revenues in the
third quarter of fiscal 1997 to 10% in the comparable quarter of fiscal 1998.
The above decrease
-9-
<PAGE>
in OEM shipments reflects the impact of a one-time $199,000 sale occurring in
the third quarter of fiscal 1997 and the Company's decision to reduce marketing
of its lower-margin OEM products in order to focus on its higher-margin
gynecological products. Revenues from gynecological products increased
approximately 1% from the comparable quarter of fiscal 1997 reflecting an
increase in shipments of disposable catheter products partially offset by a
decline in shipments of monopolar electrosurgery systems. The Company introduced
its new bipolar electrosurgery system at the annual meeting of the American
College of Gynecologists in May 1998 and began filling orders at the end of the
current fiscal period. In addition, sales of gastro-intestinal products
increased to $235,000 from $169,000 in the third quarter of fiscal 1997.
Gross margin as a percentage of revenues increased to 41% in the third quarter
of fiscal 1998 compared to 38% for the comparable period in fiscal 1997. The
increase was due to a favorable product mix with a larger portion of higher
margin products being sold during the third quarter of fiscal 1998 compared to
the same period in fiscal 1997.
Selling, general and administrative expenses declined to $1,757,000 for the
third quarter of fiscal 1998 compared to $2,216,000 for the comparable period in
fiscal 1997. The decline in expenses reflects a benefit of $1,313,000, net of
settlement costs, representing the reversal of previously expensed legal fees
which were reimbursed by the Company's insurance carrier. Partially offsetting
the above benefit was approximately $355,000 in expenses related to the
consolidation of the Company's facilities. The Company consolidated its former
manufacturing, distribution and administrative facilities in Hackensack, New
Jersey and Chatsworth, California into a single 24,400 square foot facility
located in Teterboro, New Jersey. The Company believes the consolidation will
reduce operating costs by eliminating redundant operations and will provide
additional space to accommodate future growth. In addition, the Company incurred
a one-time charge of $471,000 to reduce the carrying value of certain intangible
assets to be disposed of to net realizable value.
Research, development and related expenses as a percentage of revenues were 34%
in the third quarter of fiscal 1998 compared to 19% for the same period of
fiscal 1997. The increased spending reflects costs associated with the
development and clinical trials of the HTA system in both the United States and
international markets. The Company completed the Phase II portion of the HTA
clinical trials in June 1998 and applied to the FDA in July 1998 for permission
to proceed to Phase III. Spending related to the HTA clinical trials is expected
to continue to increase over the next several quarters.
The income tax benefit for the quarter ended June 27, 1998 was $563,000 or 37%
of the pretax losses compared to a benefit of $617,000 or 35% of the pretax
losses for the quarter ended June 28, 1997. In fiscal 1998, the income tax
benefit reflects the Company's ability to carryback losses for federal tax
purposes from fiscal year 1998. In fiscal 1997, the income tax benefit reflects
the Company's ability to offset losses of continuing operations against the
earnings of the discontinued operations at that time.
Nine Months ended June 27, 1998 and June 28, 1997
Revenues for the nine months ended June 27, 1998 decreased $360,000 or 5% from
the comparable nine-month period ended June 28, 1997. The decline in revenues
reflects the impact of lower OEM shipments, which decreased $532,000 in the nine
months ended June 27, 1998, and declined from 17% of total revenue in fiscal
1997 to 10% of total revenues in the comparable period of fiscal 1998. The
decrease in OEM shipments reflects the Company's decision to reduce marketing of
its lower-margin OEM products in order to focus on its higher-margin
gynecological products. Shipments of the HTA in international markets grew to
$236,000 in the first nine months of fiscal 1998, compared to $82,000 in the
comparable period ended June 28, 1997. The HTA System is now commercially
available
-10-
<PAGE>
in thirteen foreign countries. Revenues from gynecological products were
slightly higher in the first nine months of fiscal 1998 than the comparable
period in fiscal 1997 reflecting increased shipments of disposable catheters and
endoscopic hardware generators offset by lower shipments of the GyneSys(R) and
monopolar electrosurgical systems. Revenues from gastro-intestinal products
declined approximately 1% in the first nine months of fiscal 1998 compared to
the same nine-month period of fiscal 1997.
Gross margin as a percentage of revenues was unchanged in the nine months ended
June 27, 1998 as compared to the same period in fiscal 1997.
Selling, general and administrative expenses for the nine months ended June 27,
1998 increased $241,000 to $6,253,000 compared to $6,012,000 for the same period
in fiscal 1997. The increase in expenditures reflects approximately $355,000 in
expenses related to the consolidation of the Company's facilities in the third
quarter of fiscal 1998. In addition, the Company incurred a one-time charge of
$471,000 to reduce the carrying value of certain intangible assets to be
disposed of to net realizable value. The increase in expenses was partially
offset by a benefit of $723,000, net of settlement costs, representing the
reversal of previously expensed legal fees, which were reimbursed by the
Company's insurance carrier.
Research, development and related expenses as a percentage of revenues were 25%
for the nine months of fiscal 1998 compared to 18% for the same period of fiscal
1997. The increased spending reflects costs associated with the development and
clinical trials of the HTA system for endometrial ablation in both the United
States and international markets.
The provision for income tax benefit for the nine months ended June 28, 1998 was
$1,443,000 or 30% of the pretax losses as compared to a benefit of $1,421,000 or
34% of the pretax losses for the comparable period of fiscal 1997 reflecting the
impact of certain nondeductible expenses in fiscal 1998 that reduced the benefit
in fiscal 1998 as a percentage of pretax losses. In fiscal 1998, the income tax
benefit reflects the Company's ability to carryback losses for federal tax
purposes from fiscal year 1998. In fiscal 1997, the income tax benefit reflects
the Company's ability to offset losses of continuing operations against the
earnings of the discontinued operations at that time.
Liquidity and Capital Resources
During the first nine months of fiscal 1998, cash used in operations was
$3,717,000, primarily resulting from the net loss of $3,324,000, an increase in
refundable income taxes of $1,512,000, and a decrease in accrued liabilities of
$856,000. Partially offsetting the above were increases in accounts payable of
$1,095,000 and depreciation and amortization of $996,000.
Cash used in investing activities during the first nine months of fiscal 1998 of
$355,000 consisted primarily of purchases of equipment of $247,000 and increases
in long-term deposits of $108,000.
Cash flows used in financing activities consisted primarily of $158,000 in
scheduled payments made on long-term debt.
The Company's capital requirements depend on numerous factors, including the
progress of the Company's clinical research and product development programs,
the timing and receipt of regulatory clearances and approvals, and the resources
the Company devotes to developing, manufacturing and marketing its products. The
Company's capital requirements also depend on the resources required to expand
and develop a direct sales force in the United States and to expand the
Company's manufacturing capacity, and the extent to which the Company's products
gain market acceptance and sales. The
-11-
<PAGE>
timing and amount of such capital requirements cannot be predicted accurately.
Consequently, although the Company believes its existing cash balances together
with operating revenues and anticipated tax refunds will provide adequate
funding to meet the Company's capital requirements for the next twelve months,
the Company is considering various options to secure additional capital at this
time. There can be no assurance that additional capital will be available on
terms favorable to the Company, or at all. Any additional equity financing may
be dilutive to stockholders and debt financing, if available, may involve
restrictive covenants and or also be dilutive to stockholders.
Year 2000 Compliance: Modification of Management Information Systems
Currently, many computer systems and software products are coded to accept only
two digit entries in the date code field. These date code fields will need to
accept four digit entries to distinguish 21st century dates from 20th century
dates. As a result, many companies' software and computer systems may need to be
upgraded or replaced in order to comply with such "Year 2000" requirements. The
Company and third parties with which the Company does business rely on numerous
computer programs in their day to day operations. The Company has completed a
preliminary evaluation of the Year 2000 issue as it relates to the Company's
internal computer systems and the third party systems with which it interacts.
This analysis includes such activities as order taking, billing, accounts
payable and inventory. Systems critical to the Company's business are all
commercial packages available from third party vendors with little modification.
The Company anticipates that Year 2000 versions of these software programs will
become available before the Year 2000 and the cost of converting to the upgraded
versions of these systems will not be material. In the event Year 2000
compatible versions of the Company's software do not become available, the
Company anticipates it will be able to convert to software supplied by other
vendors that is Year 2000 compatible. While the Company currently believes Year
20000 issues will not have a material adverse impact on the Company's business,
financial condition or results of operations, there can be no assurance that all
Year 2000 issues will be foreseen and resolved in 1998 or 1999. If not resolved,
Year 2000 issues could have a material adverse impact on the Company's
operations.
In addition, the Company has reviewed the Year 2000 situation regarding the
electronic products manufactured for sale by the Company. The Company believes
that none of its products are date sensitive or will require modification to
become Year 2000 compatible.
Effects of Inflation
Management believes that, for the periods presented, inflation has not had a
material effect on the Company's operations.
-12-
<PAGE>
BEI MEDICAL SYSTEMS COMPANY, INC. AND SUBSIDIARIES
PART II. OTHER INFORMATION
-----------------
Item 1. Legal Proceedings
CooperSurgical, Inc. vs. BEI Medical Systems Company, Inc. et al.
- -----------------------------------------------------------------
In October 1993, CooperSurgical, Inc., a subsidiary of The Cooper Companies,
filed a claim for unspecified damages alleging unfair competition due to actions
by the Company and its president at that time, Richard Turner, a former employee
of The Cooper Companies, and others. On January 31, 1996, the Court issued a
ruling, which affirmed the legal basis for the Company to assert a counterclaim
for damages against CooperSurgical regarding the parties' electrosurgical
generator contract.
The trial started in October 1997 in the Superior Court of New Jersey for Bergen
County, Chancery Division, and was adjourned in January 1998 pending a
settlement discussion. During the third quarter of fiscal 1998 an agreement in
principal was reached, and in July 1998, the final settlement agreement was
signed whereby the Company agreed to pay $300,000 in cash, net of insurance
reimbursement, and up to $100,000 in royalties on future product sales.
Item 5. Other Information
Pursuant to the Company's bylaws, stockholders who wish to bring matters or
propose nominees for director at the Company's 1999 annual meeting of
stockholders must provide specified information to the Company between a date
which is no later than the close of business of the sixtieth (60th) day nor
earlier than the close of business on the ninetieth (90th) day prior to the
first anniversary of the preceding year's annual meeting (unless such matters
are included in the Company's proxy statement pursuant to Rule 14a-8 under the
Securities Exchange Act of 1934, as amended).
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27.1 Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed by the Company during the
quarter ended June 27, 1998.
-13-
<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 on August ____, 1998.
BEI Medical Systems Company, Inc.
By: /s/ Thomas W. Fry
---------------------------------------------
Thomas W. Fry
Vice President of Finance and Administration,
Secretary and Treasurer
(Chief Financial Officer)
-14-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 27, 1998
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-03-1998
<PERIOD-START> MAR-29-1998
<PERIOD-END> JUN-27-1998
<CASH> 5,041
<SECURITIES> 0
<RECEIVABLES> 1,751
<ALLOWANCES> 0
<INVENTORY> 3,295
<CURRENT-ASSETS> 12,275
<PP&E> 828
<DEPRECIATION> 0
<TOTAL-ASSETS> 19,328
<CURRENT-LIABILITIES> 3,422
<BONDS> 54
0
0
<COMMON> 10
<OTHER-SE> 15,896
<TOTAL-LIABILITY-AND-EQUITY> 19,328
<SALES> 2,293
<TOTAL-REVENUES> 2,347
<CGS> 1,350
<TOTAL-COSTS> 2,535
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2
<INCOME-PRETAX> (1,540)
<INCOME-TAX> (563)
<INCOME-CONTINUING> (977)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (977)
<EPS-PRIMARY> (0.13)
<EPS-DILUTED> (0.13)
</TABLE>
