UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 October 1, 2000
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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 Number 1-4184
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MATEC CORPORATION
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(Exact name of registrant as specified in its charter)
Maryland 06-0737363
----------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
75 South St., Hopkinton, Massachusetts 01748
-------------------------------------- ------------
(Address of principal executive offices) (Zip Code)
(508) 435-9039
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(Registrant's telephone number, including area code)
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
--- ---
As of November 2, 2000, the number of shares outstanding of Registrant's Common
Stock, par value $.05 was 2,754,046.
- 1 -
<PAGE>
MATEC CORPORATION
INDEX
Page
----
PART I. FINANCIAL INFORMATION
Consolidated Condensed Balance Sheets -
October 1, 2000 and December 31, 1999 ...................... 3
Consolidated Statements of Operations - Three Months and
Nine Months Ended October 1, 2000 and October 3, 1999 ...... 4-5
Consolidated Condensed Statements of Cash Flows -
Nine Months Ended October 1, 2000 and October 3, 1999 ...... 6
Consolidated Statements of Comprehensive Income -
Three Months and Nine Months ended October 1, 2000
and October 3, 1999 ........................................ 7
Notes to Consolidated Condensed Financial Statements ......... 8-12
Management's Discussion and Analysis of Financial
Condition and Results of Operations ........................ 13-15
Quantitative and Qualitative Disclosures about
Market Risk ................................................ 15
PART II. OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K .................... 16
Signatures ............................................................ 17
- 2 -
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
MATEC Corporation and Subsidiaries
Consolidated Condensed Balance Sheets
(In thousands, except share data)
(Unaudited)
<TABLE>
<CAPTION>
10/1/00 12/31/99
-------- --------
<S> <C> <C>
ASSETS
Current assets:
<S> <C> <C>
Cash and cash equivalents ............................ $ 1,825 $ 3,118
Receivables, net ..................................... 3,916 3,097
Inventories .......................................... 6,056 3,330
Deferred income taxes and other current assets ....... 1,116 811
------- -------
Total current assets .......................... 12,913 10,356
------- -------
Property, plant and equipment, at cost ................. 9,533 8,619
Less accumulated depreciation ........................ 6,293 5,819
------- -------
3,240 2,800
------- -------
Marketable equity securities ........................... 3,105 3,073
Other assets ........................................... 120 303
------- -------
$19,378 $16,532
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt .................... $ -- $ 998
Accounts payable ..................................... 2,595 1,317
Accrued liabilities .................................. 1,746 1,064
Income taxes ......................................... 594 547
------- -------
Total current liabilities ..................... 4,935 3,926
------- -------
Deferred income taxes .................................. 1,382 1,429
Stockholders' equity:
Preferred stock, $1.00 par value-
Authorized 1,000,000 shares; issued none ............ -- --
Common stock, $.05 par value-
Authorized 10,000,000 shares; Issued and outstanding:
2,754,046 and 2,650,148 shares .................... 138 132
Capital surplus ...................................... 4,830 4,527
Retained earnings .................................... 6,329 4,774
Accumulated other comprehensive income ............... 1,764 1,744
------- -------
Total stockholders' equity .................... 13,061 11,177
------- -------
$19,378 $16,532
======= =======
</TABLE>
See notes to consolidated condensed financial statements
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<PAGE>
MATEC Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
10/1/00 10/3/99 10/1/00 10/3/99
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net sales ....................... $ 7,219 $ 3,974 $ 18,932 $ 9,729
Cost of sales ................... 5,088 2,975 13,282 7,789
-------- -------- -------- --------
Gross profit .................. 2,131 999 5,648 1,940
Operating expenses:
Selling and advertising ........ 836 534 2,211 1,612
General and administrative ..... 412 247 1,206 774
-------- -------- -------- --------
1,248 781 3,417 2,386
Operating profit (loss) ......... 883 218 2,231 (446)
Other income (expense):
Interest income ................ 26 36 110 178
Interest expense ............... -- (26) (9) (128)
Gain on sale of investment ..... -- -- 1,226 --
Other, net ..................... 34 27 97 69
-------- -------- -------- --------
60 37 1,424 119
Earnings (loss) from continuing
operations before income taxes . 943 255 3,655 (327)
Income tax (expense) benefit .... (378) (89) (1,462) 104
-------- -------- -------- --------
Earnings (loss) from continuing
operations ..................... 565 166 2,193 (223)
Earnings (loss) from discontinued
operations, net of taxes ....... -- 74 (90) 809
-------- -------- -------- --------
Net earnings .................... $ 565 $ 240 $ 2,103 $ 586
======== ======== ======== ========
Basic earnings (loss) per share:
Continuing operations ......... $ .21 $ .06 $ .80 $ (.08)
Discontinued operations ....... .00 .03 (.03) .30
-------- -------- -------- --------
$ .21 $ .09 $ .77 $ .22
======== ======== ======== ========
Diluted earnings (loss) per share:
Continuing operations ......... $ .19 $ .06 $ .76 $ (.08)
Discontinued operations ....... .00 .03 (.03) .30
-------- -------- -------- --------
$ .19 $ .09 $ .73 $ .22
======== ======== ======== ========
Weighted average shares:
Basic ......................... 2,746 2,670 2,733 2,692
Diluted ....................... 2,941 2,765 2,890 2,692
Cash dividends per share ........ $ -- $ -- $ .20 $ --
======== ======== ======== ========
</TABLE>
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<PAGE>
MATEC Corporation and Subsidiaries
Consolidated Statements of Operations - Continued
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
10/1/00 10/3/99 10/1/00 10/3/99
------- ------- ------- -------
<S> <C> <C> <C> <C>
Pro Forma basic earnings (loss) per share:
Continuing operations ................... $ .14 $ .04 $ .53 $ (.06)
Discontinued operations ................. .00 .02 (.02) .20
--------- --------- --------- ---------
$ .14 $ .06 $ .51 $ .14
========= ========= ========= =========
Pro Forma diluted earnings (loss) per share:
Continuing operations ................... $ .13 $ .04 $ .51 $ (.06)
Discontinued operations ................. .00 .02 (.02) .20
--------- --------- --------- ---------
$ .13 $ .06 $ .49 $ .14
========= ========= ========= =========
Pro Forma weighted average shares:
Basic ................................... 4,118 4,005 4,099 4,037
Diluted ................................. 4,411 4,148 4,335 4,037
</TABLE>
See notes to consolidated condensed financial statements.
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<PAGE>
MATEC Corporation and Subsidiaries
Consolidated Condensed Statements of Cash Flows
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
10/1/00 10/3/99
-------- -------
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) from continuing operations ... $ 2,193 $ (223)
Adjustments to reconcile net earnings to net cash
provided (used) by operating activities:
Depreciation and amortization .................. 474 455
Deferred income taxes .......................... (360) 66
Gain on sale of investment ..................... (1,226) --
Other .......................................... 2 4
Changes in operating assets and liabilities .... (1,542) (1,874)
------- -------
Net cash (used) by operating activities ........... (459) (1,572)
------------------------------------------------------------------------
Cash flows from investing activities:
Proceeds from sale of investment ................. 1,319 --
Capital expenditures ............................. (914) (424)
Collection of note receivables ................... 98 88
Other, net ....................................... (8) (8)
------- -------
Net cash provided (used) by investing activities .. 495 (344)
------------------------------------------------------------------------
Cash flows from financing activities:
Payments on long-term debt ....................... (745) (1,000)
Dividend paid .................................... (548) --
Stock options exercised .......................... 54 --
Purchases of common stock ........................ -- (227)
------- -------
Net cash (used) by financing activities ........... (1,239) (1,227)
------------------------------------------------------------------------
Net cash provided (used) by discontinued operations (90) 1,225
------------------------------------------------------------------------
Net (decrease) in cash and cash equivalents ....... (1,293) (1,918)
Cash and cash equivalents:
Beginning of period .............................. 3,118 4,516
------- -------
End of period .................................... $ 1,825 $ 2,598
======= =======
</TABLE>
Noncash investing and financing activities:
During 2000, the Company issued 85,000 common shares upon the conversion of
the lender's warrants as payment for $255,000 of debt.
In connection with the sale of a discontinued operation, the Company
recognized a $124,000 investment in common stock in 1999.
See notes to consolidated condensed financial statements.
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<PAGE>
MATEC Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
10/1/00 10/3/99
------- -------
<S> <C> <C>
Net earnings ........................................ $ 565 $ 240
Other comprehensive income, net of tax:
Unrealized gain (loss) on marketable equity
securities, net of tax expense of $105 in 2000
and a tax benefit of $66 in 1999 ................... 155 (97)
------ ------
Comprehensive income ................................ $ 720 $ 143
====== ======
Nine Months Ended
10/1/00 10/3/99
------- -------
Net earnings ........................................ $2,103 $ 586
Other comprehensive income, net of tax:
Unrealized gain on marketable equity securities,
net of tax expense of $13 in 2000 and $115 in 1999. 20 175
------ ------
Comprehensive income ................................ $2,123 $ 761
====== ======
</TABLE>
See notes to consolidated condensed financial statements.
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<PAGE>
MATEC Corporation and Subsidiaries
Notes to Consolidated Condensed Financial Statements
1. Financial Presentation:
The interim financial statements are unaudited but, in the opinion of
management, reflect all adjustments necessary for fair presentation of results
for such periods. The results of operations for any interim period are not
necessarily indicative of results for the full year.
These interim financial statements should be read in conjunction with the
financial statements and related notes thereto included in the Company's 1999
Annual Report on Form 10-K as filed with the Securities and Exchange Commission.
2. Receivables, net:
Receivables, net of allowances, consist of the following:
<TABLE>
<CAPTION>
10/1/00 12/31/99
------- --------
(in thousands)
<S> <C> <C>
Accounts receivable, less allowance for doubtful
accounts of $145 and $93 ........................... $ 3,813 $ 2,820
Refundable income taxes ............................. - 154
Amounts due from the sale of discontinued operations. 103 123
------- -------
$ 3,916 $ 3,097
======= =======
</TABLE>
3. Inventories:
Inventories consist of the following:
<TABLE>
<CAPTION>
10/1/00 12/31/99
------- --------
(in thousands)
<S> <C> <C>
Raw materials ............................ $ 3,507 $ 1,797
Work in process .......................... 1,770 1,179
Finished goods ........................... 779 354
------- -------
$ 6,056 $ 3,330
======= =======
</TABLE>
4. Long-Term Debt:
In January 2000, the Company paid $745,000 in cash and issued 85,000 shares
of common stock as payment in full for the $1 million term debt note due June
30, 2000. The common shares were issued upon conversion of the lender's
warrants.
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<PAGE>
5. Discontinued Operations:
During 1998, the Company sold the assets of its Bergen Cable Technologies,
Inc. ("BCT") subsidiary. As a result of the sale, the company is performing
environmental cleanup at the site. During the first quarter of 2000, the Company
expensed $150,000 to increase the environmental expense accrual to reflect the
current available estimate to complete the remediation. As of October 1, 2000,
$800,000 has been expensed for the cleanup and $136,000 is accrued for future
payments.
In the quarter ended October 3, 1999, the Company recognized the fair value
of the common stock received of $124,000 and the corresponding pre-tax gain on
the disposal of discontinued operations. In the second quarter of 1999, the
Company received $1,175,000 in cash as payment in full for the $1.2 million
outstanding note receivable balance and recorded a $1,175,000 pre-tax gain on
disposal of discontinued operations. In the first quarter of 1999, the Company
received a $50,000 note payment and recorded a $50,000 pre-tax gain on disposal
of discontinued operations. Since the entity acquiring the assets of BCT had
significant third-party debt compared to its equity and the Company's note
receivable was subordinated to the third party debt, the Company had deferred
any gain on the note and had not assigned any value to the stock portion of the
sale in 1998 until cash payments were received by the Company.
7. Gain on Sale of Investment:
In the first quarter of 2000, the Company sold its common stock interest in
Bergen Cable Technology, Inc., received $1,319,000 in cash after estimated
expenses and recorded a pre-tax gain of $1,226,000 on the sale. The Company
acquired these shares as part of the purchase price for the sale of BCT. In
addition, the Company's share of the escrow balance amounts to approximately
$170,000. This escrow balance, less any claims for indemnity thereon, will be
distributed to the Company on or before January 4, 2002. The Company will record
a gain on this escrow balance when the cash is received.
8. Earnings (Loss) Per Share:
The computation of basic and diluted earnings (loss) per share from
continuing operations is as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
In thousands, except per share amounts 10/1/00 10/3/99
-------------------------------------- ------- -------
BASIC
-----
<S> <C> <C>
Earnings from continuing operations $ 565 $ 166
====== ======
Weighted average shares outstanding 2,746 2,670
====== ======
Basic earnings per share from continuing operations $ .21 $ .06
====== ======
THREE MONTHS ENDED
In thousands, except per share amounts 10/1/00 10/3/99
-------------------------------------- ------- -------
DILUTED
-------
Earnings from continuing operations $ 565 $ 166
Plus: interest impact, net of tax from the
assumed reduction of debt from the
conversion of warrants - 4
------ ------
Adjusted earnings from continuing operations $ 565 $ 170
====== ======
Weighted average shares outstanding 2,746 2,670
Increase from the assumed:
exercise of stock options 195 10
conversion of warrants - 85
------ ------
Diluted weighted average shares outstanding 2,941 2,765
====== ======
Diluted earnings per share from continuing operations $ .19 $ .06
====== ======
NINE MONTHS ENDED
In thousands, except per share amounts 10/1/00 10/3/99
-------------------------------------- ------- -------
BASIC
-----
Earnings (loss) from continuing operations $ 2,193 $ (223)
======= ======
Weighted average shares outstanding 2,733 2,692
======= ======
Basic earnings (loss) per share from
continuing operations $ .80 $ (.08)
======= ======
DILUTED
-------
Earnings (loss) from continuing operations $ 2,193 $ (223)
Plus: interest impact, net of taxes from
the assumed reduction of debt from
the conversion of warrants 4 -
------- ------
Adjusted earnings (loss) from continuing
operations $ 2,197 $ (223)
======= ======
Weighted average shares outstanding 2,733 2,692
Increase from the assumed:
exercise of stock options 149 -
conversion of warrants 8 -
------- ------
Diluted weighted average shares outstanding 2,890 2,692
======= ======
Diluted earnings (loss) per share from
continuing operations $ .76 $ (.08)
======= ======
</TABLE>
During the nine months ended October 3, 1999, options to purchase 159,356
shares of common stock and warrants to purchase 85,000 shares of common stock
were not considered in the computation of diluted earnings per share since the
Company reported a loss from continuing operations.
- 10 -
<PAGE>
On October 23, 2000, the Company announced a 3 for 2 stock split, in the
form of a stock dividend, to result in the issuance of one additional share of
common stock for every two shares of common stock outstanding. The stock split
will take effect for stockholders of record on November 9, 2000 and will be
distributed on November 27, 2000. The pro forma computation of basic and diluted
earnings per share to reflect the effect of the stock split is as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
In thousands, except per share amounts 10/1/00 10/3/99
-------------------------------------- ------- -------
<S> <C> <C>
PRO FORMA BASIC
---------------
Earnings from continuing operations ................... $ 565 $ 166
======= =======
Weighted average shares outstanding ................... 4,118 4,005
======= =======
Basic earnings per share from continuing operations ... $ .14 $ .04
======= =======
PRO FORMA DILUTED
-----------------
-------
Earnings from continuing operations ................... $ 565 $ 166
Plus: interest impact, net of tax from the
assumed reduction of debt from the
conversion of warrants .......................... -- 4
------- -------
Adjusted earnings from continuing operations .......... $ 565 $ 170
======= =======
Weighted average shares outstanding ................... 4,118 4,005
Increase from the assumed:
exercise of stock options ........................... 293 15
conversion of warrants .............................. -- 128
------- -------
Diluted weighted average shares outstanding ........... 4,411 4,148
======= =======
Diluted earnings per share from continuing operations $ .13 $ .04
======= =======
NINE MONTHS ENDED
In thousands, except per share amounts 10/1/00 10/3/99
-------------------------------------- ------- -------
PRO FORMA BASIC
---------------
Earnings (loss) from continuing operations ............ $ 2,193 $ (223)
======= =======
Weighted average shares outstanding ................... 4,099 4,037
======= =======
Basic earnings (loss) per share from
continuing operations ............................... $ .53 $ (.06)
======= =======
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
NINE MONTHS ENDED
In thousands, except per share amounts 10/1/00 10/3/99
-------------------------------------- ------- -------
PRO FORMA DILUTED
-----------------
<S> <C> <C>
Earnings (loss) from continuing operations $ 2,193 $ (223)
Plus: interest impact, net of taxes from
the assumed reduction of debt from
the conversion of warrants .......... 4 --
------- -------
Adjusted earnings (loss) from continuing
operations ............................... $ 2,197 $ (223)
======= =======
Weighted average shares outstanding ....... 4,099 4,037
Increase from the assumed:
exercise of stock options ............... 224 --
conversion of warrants .................. 12 --
------- -------
Diluted weighted average shares outstanding 4,335 4,037
======= =======
Diluted earnings (loss) per share from
continuing operations .................... $ .51 $ (.06)
======= =======
</TABLE>
During the nine months ended October 3, 1999, options to purchase 159,356
shares of common stock and warrants to purchase 85,000 shares of common stock
were not considered in the computation of diluted earnings per share since the
Company reported a loss from continuing operations.
9. Subsequent Event:
On October 24, 2000, the Company sold its real estate complex in
Northborough, Massachusetts for $550,000 in cash. None of the Company's
operations were located in this facility. The Company will record a pre-tax gain
of approximately $270,000 during the fourth quarter of 2000.
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<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
-------------------------------
Cash and cash equivalents decreased $1,293,000 during the nine months ended
October 1, 2000. During this period, the Company's continuing operations and
financing activities used cash of $459,000 and $1,239,000, respectively, and
investing activities provided cash of $495,000. Discontinued operations used
$90,000 in cash.
Trade receivables, net increased $993,000 mainly as a result of the
increased sales level. Inventories increased $2,726,000 mainly to support the
current sales backlog and customer delivery requirements. The $1,278,000
increase in accounts payable is mainly due to the higher inventory level. Income
tax payments during the nine months ended October 1, 2000 amounted to
$1,745,000.
During the nine months ended October 1, 2000, the Company sold its common
stock in Bergen Cable Technologies, Inc. and received $1,319,000 in cash after
estimated expenses of the sale. During this same period, capital expenditures
amounted to $914,000 as the Company upgraded and increased its existing
production capabilities and processes and began installation of a new computer
information system.
In January 2000, the Company paid $745,000 in cash and issued 85,000 shares
of common stock as payment in full for the $1 million term debt note due June
30, 2000. The common stock was issued upon conversion of the lender's warrant.
In February 2000, the Company paid a special cash dividend amounting to $548,000
or $.20 per common share.
Management believes that based on its current working capital, the expected
cash flows from operations and its $1,850,000 lines of credit availability, the
Company's resources are sufficient to meet its financial needs in 2000 including
a remaining capital expenditures budget of approximately $200,000.
Results of Operations
---------------------
For the quarter ended October 1, 2000, net sales from continuing operations
increased $3,245,000 or 82% over the comparable quarter in 1999. During the nine
months ended October 1, 2000, net sales increased $9,203,000 or 95% over
comparable period in 1999. The higher backlog at the beginning of 2000 ($6.4
million) as compared to that at the beginning of 1999 ($2.3 million) and the
continued strong bookings during the current year are the main reasons for these
sales increases over last year. The strong market demand from the
telecommunications, networking and wireless markets are mainly responsible for
the increases in the sales, bookings and backlog amounts. The backlog at October
1, 2000 is $16.0 million compared to $4.7 million at October 3, 1999. During
2000, the Company has experienced some late shipments to customers with some of
its products. In an effort to improve its response to delivery demands, the
Company will continue its expansion plans, which included a semi-automatic
production line in its Hopkinton, MA facility, further investment in its Russian
operation and additional outside supplier relationships.
- 13 -
<PAGE>
During the quarter ended October 1, 2000, the gross profit percentage was
30% compared to 25% in 1999. For the nine months ended October 1, 2000, the
gross profit percentage was 30% versus 20% in 1999. The higher margins during
the current year result mainly from the favorable effects of allocating the
fixed overhead expenses over the increased sales volumes.
During the quarter and nine months ended October 1, 2000, selling and
advertising expenses increased $302,000 (57%) and $599,000 (37%), respectively,
over the comparable periods in 1999. Higher sales commission expense to the
Company's outside manufacturers' representatives and increased personnel
expenses were the main reasons for the expense increases during these periods.
General and administrative expenses during the quarter and nine months
ended October 1, 2000, increased $165,000 (67%) and $432,000 (56%), respectively
over the comparable periods in 1999. These increases were mainly due to
increased personnel expense and provision for the management incentive bonus.
During the quarter and nine months ended October 1, 2000, interest income
decreased $10,000 and $68,000, respectively, from the comparable periods in 1999
mainly as a result of the lower interest income received on the notes receivable
generated from the sales of the discontinued operations. The decreases in
interest expense during both periods are mainly due to lower levels of
outstanding debt. During the nine months ended October 1, 2000, the company sold
its common stock investment in Bergen Cable Technology, Inc. and realized a
$1,226,000 pre-tax gain on the sale.
The estimated effective income tax rate for 2000 is 40% compared to 35% and
32% during the three months and nine months ended October 3, 1999, respectively.
The difference in the rates is mainly due to the limited state tax benefit of
operating losses within a state.
For the quarter ended October 1, 2000, the Company reported an operating
profit of $883,000 compared to $218,000 in comparable quarter of 1999 mainly as
a result of the increase in gross margin offset in part by higher operating
expenses. Nonoperating income amounted to $60,000 in 2000 compared to $37,000 of
income in the corresponding 1999 period. As a result, the Company reported net
earnings from continuing operations of $565,000 during the quarter ended October
1, 2000 compared to $166,000 in 1999. Earnings from discontinued operations
during the quarter ended October 3, 1999 amounted to $74,000. In total, the
Company reported consolidated net earnings of $565,000 during the quarter ended
October 1, 2000 versus $240,000 in the comparable quarter of 1999.
During the nine months ended October 1, 2000, the Company reported an
operating profit of $2,231,000 compared to an operating loss of $446,000 during
the comparable period in 1999 as a result of the increase in gross profit offset
in part by higher operating expenses. For the nine months ended October 1, 2000
nonoperating income amounted to $1,424,000 compared to $119,000 of income in
1999. As a result, the Company reported net earnings from continuing operations
of $2,193,000 during the nine months ended October 1, 2000 versus a net loss of
$223,000 in 1999. Discontinued operations reported a loss of $90,000
- 14 -
<PAGE>
for the nine months ended October 1, 2000 versus net earnings of $809,000 in
1999. In total, the Company reported consolidated net earnings of $2,103,000
during the nine months ended October 1, 2000 compared to $586,000 in 1999.
Forward-Looking Statements
--------------------------
Certain statements made herein contain forward-looking statements that
involve risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Words such as
"expects", "believes", "estimates", "plans" or similar expressions are intended
to identify such forward-looking statements. Factors that could cause such
differences include, but are not limited to those discussed in this section and
those discussed in the Company's 1999 Form 10-K under the section
"Forward-Looking Statements" included under the caption "Management's Discussion
and Analysis", is herein incorporated by reference.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
---------------------------------------------------------------------
There have been no material changes in the Company's market risk during the
nine months ended October 1, 2000.
The information set forth on pages 5 of the 1999 Annual Report to
Stockholders under the section "Qualitative and Quantitative Disclosures about
the Market Risk" included under the caption "Management's Discussion and
Analysis" is incorporated by reference.
- 15 -
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
13. Page 5 of the 1999 Annual Report to Stockholders.
Filed for electronic purposes only.
27. Financial Data Schedule. Filed for electronic purposes only.
(b) Reports on Form 8-K - None
- 16 -
<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.
MATEC Corporation
------------------------------------
Date: November 3, 2000 By /s/ Ted Valpey, Jr.
------------------------------------
Ted Valpey, Jr.,
Chairman of the Board and
President
Date: November 3, 2000 By /s/ Michael J. Kroll
------------------------------------
Michael J. Kroll
Vice President and Treasurer
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