<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended Commission
March 31, 1998 File Number 0-8241
--------------------- ----------------------
Barringer Laboratories, Inc.
- --------------------------------------------------------------------------------
(Name of small business issuer in its charter)
Delaware 84-0951626
- -------------------------------------- -------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
15000 West 6th Avenue, Suite 300, Golden, Colorado 80401-5047
- --------------------------------------------------------------------------------
(Address of principal executive office)
Issuer's telephone number, including area code (303) 277-1687
---------------------------------
Indicate by check mark whether the issuer (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 issuer was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.
Yes X No
----- -----
Number of shares outstanding as of March 31, 1998 - 1,590,649 of Common Stock,
$.01 par value.
-1-
<PAGE>
BARRINGER LABORATORIES, INC.
INDEX
PART I - FINANCIAL INFORMATION
Item 1 Financial Statements
- Consolidated Balance Sheets as of March 31, 1998
(Unaudited) and December 31, 1997;
- Consolidated Statements of Operations (Unaudited) for the Three
Months Ended March 31, 1998 and 1997;
- Consolidated Statements of Cash Flows (Unaudited) for the Three
Months Ended March 31, 1998 and 1997;
- Notes to Consolidated Financial Statements; and
Item 2 Management's Discussion and Analysis or Plan of Operation
PART II - OTHER INFORMATION
Signatures
-2-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, DECEMBER 31,
---------- ------------
1998 1997
---- ----
(UNAUDITED)
Assets
Current Assets:
Cash and cash equivalents $ 283,000 $ 524,000
Trade receivables, less
allowance of $15,000 and
$13,000 for doubtful accounts 933,000 1,062,000
Prepaid expenses and other 254,000 127,000
---------- ----------
Total Current Assets 1,470,000 1,713,000
---------- ----------
Property and Equipment:
Machinery and equipment 2,238,000 2,214,000
Machinery and equipment under
capital lease obligations 134,000 134,000
Leasehold improvements 664,000 663,000
Office furniture and equipment 90,000 90,000
---------- ----------
3,126,000 3,101,000
Less accumulated depreciation
and amortization 2,858,000 2,809,000
---------- ----------
Net Property and Equipment 268,000 292,000
Certificate of Deposit 150,000 150,000
Other Assets 51,000 57,000
---------- ----------
Total Assets $1,939,000 $2,212,000
---------- ----------
---------- ----------
See accompanying notes to consolidated financial statements.
-3-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(CONCLUDED)
MARCH 31, DECEMBER 31,
--------- ------------
1998 1997
---- ----
(UNAUDITED)
Liabilities and Shareholders' Equity
Current Liabilities:
Trade accounts payable $ 200,000 $ 251,000
Accrued liabilities:
Payroll, compensation and
related expenses 189,000 290,000
Other 225,000 211,000
Current maturities of long-
term debt 38,000 38,000
---------- ----------
Total Current Liabilities 652,000 790,000
Long-Term Debt, less current
maturities 47,000 54,000
---------- ----------
Total Liabilities 699,000 844,000
---------- ----------
Minority Interest - 5,000
Shareholders' Equity
Preferred stock, $2.00 par value,
1,000,000 shares authorized;
none issued - -
Common stock, $0.01 par value,
shares authorized, 10,000,000;
issued 1,652,016 and out-
standing 1,563,756 16,000 16,000
Additional paid-in capital 2,397,000 2,397,000
Accumulated deficit (1,150,000) (1,027,000)
Translation Adjustment (23,000) (23,000)
---------- ----------
1,240,000 1,363,000
Less common stock in treasury,
at cost, 88,260 shares - -
---------- ----------
Total Shareholders' Equity 1,240,000 1,363,000
---------- ----------
Total Liabilities and
Shareholders' Equity $1,939,000 $2,212,000
---------- ----------
---------- ----------
See accompanying notes to consolidated financial statements.
-4-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED MARCH 31,
----------------------------
1998 1997
---------- ----------
Sales of Services $1,664,000 $1,494,000
Cost of Services Sold 1,271,000 1,245,000
---------- ----------
Gross Profit 393,000 249,000
---------- ----------
Selling, General and
Administrative Expenses 525,000 423,000
---------- ----------
Operating Loss (132,000) (174,000)
Other Income (Expense):
Interest income 7,000 11,000
Interest expense (3,000) (5,000)
Translation loss (4,000) (18,000)
Other 3,000 4,000
---------- ----------
Total Other Income (Expense) 3,000 (8,000)
---------- ----------
Loss before Income
Taxes and Minority Interest
in Loss of Subsidiary (129,000) (182,000)
Provision for Income Taxes - -
Minority Interest in Loss of
Subsidiary 6,000 9,000
---------- ----------
Net Loss for the period $ (123,000) $ (173,000)
---------- ----------
---------- ----------
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<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED MARCH 31,
----------------------------
1998 1997
---------- ----------
Per Share Data:
Net Loss per share:
Basic $ (.08) $ (.11)
---------- -----------
---------- -----------
Diluted $ (.08) $ (.11)
---------- -----------
---------- -----------
Weighted average common shares
outstanding
Basic 1,590,649 1,563,756
---------- -----------
---------- -----------
Diluted 1,590,649 1,563,756
---------- -----------
---------- -----------
See accompanying notes to consolidated financial statements.
-6-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(UNAUDITED)
THREE MONTHS ENDED MARCH 31,
----------------------------
1998 1997
--------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) for the period $(123,000) $(173,000)
Items not affecting cash
Depreciation and amortization 49,000 68,000
Bad debt expense 7,000 6,000
Minority interest share in loss
of subsidiary (6,000) (9,000)
Other - 23,000
Decrease (increase) in operating
assets net of operating
liabilities (136,000) 92,000
--------- ---------
Cash Provided by
Operating Activities (209,000) 7,000
--------- ---------
CASH FLOWS USED IN INVESTING ACTIVITIES
Purchase of property and equipment (25,000) (68,000)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Reduction in long-term debt (7,000) (16,000)
Decrease in short term borrowings - 26,000
Minority interest contributions - 49,000
--------- ---------
Cash used in Financing
Activities (7,000) 59,000
--------- ---------
Decrease in cash (241,000) (2,000)
Cash and cash equivalents
- beginning of period 524,000 803,000
--------- ---------
Cash and cash equivalents
- end of period $ 283,000 $ 801,000
--------- ---------
--------- ---------
See accompanying notes to consolidated financial statements.
-7-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH
(UNAUDITED)
(CONTINUED)
THREE MONTHS ENDED MARCH 31,
----------------------------
1998 1997
--------- ---------
Decrease (increase) in
operating assets net of
operating liabilities
Trade receivables $ 123,000 $ 313,000
Other current assets (127,000) (47,000)
Accounts payable and accrued
liabilities (138,000) (76,000)
Income tax payable - (49,000)
Other 6,000 (49,000)
--------- ---------
Total - net $136,000 $ 92,000
--------- ---------
--------- ---------
Cash paid during the period
for interest $ 3,000 $ 5,000
--------- ---------
--------- ---------
Cash paid during the period
for income taxes $ - $ 49,000
--------- ---------
--------- ---------
See accompanying notes to consolidated financial statements.
-8-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
In the opinion of the Company, the unaudited financial statements contain
all adjustments (consisting of only normal recurring accruals) necessary to
present fairly the financial position of the Company and its subsidiaries,
as of March 31, 1998 and the results of their operations and their cash
flows for the three months ended March 31, 1998 and 1997. The accounting
policies followed by the Company are set forth in the Notes to Consolidated
Financial Statements in the 1997 audited financial statements of Barringer
Laboratories, Inc. and Subsidiaries included in its Annual Report on Form
10-KSB for the year ended December 31, 1997. The Form 10-KSB should be
read in conjunction herewith.
2. ACCOUNTING POLICIES
NEW ACCOUNTING PRONOUNCEMENTS
In June 1997, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 130, "Reporting
Comprehensive Income" which establishes standards for reporting and display
of comprehensive income, its components and accumulated balances.
Comprehensive income is defined to include all changes in equity except
those resulting from investments by owners and distributions to owners.
Among other disclosures, SFAS No. 130 requires that all items that are
required to be recognized under current accounting standards as components
of comprehensive income be reported in a financial statement that is
displayed with the same prominence as other financial statements.
Also, in June 1997, the FASB issued SFAS No. 131, "Disclosures about
Segments of an Enterprise and Related Information" which supersedes SFAS
No. 14, "Financial Reporting for Segments of a Business Enterprise". SFAS
No. 131 establishes standards for the way that public companies report
information about operating segments in annual financial statements and
requires reporting of selected information about operating segments in
interim financial statements issued to the public. It also establishes
standards for disclosure regarding products and services, geographic areas
and major customers. SFAS No. 131 defines operating segments as components
of a company about which separate financial information is available that
is evaluated regularly by the chief operating decision maker in deciding
how to allocate resources and in assessing performance.
-9-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. ACCOUNTING POLICIES (CONTINUED)
NEW ACCOUNTING PRONOUNCEMENTS (CONTINUED)
Both SFAS No. 130 and 131 are effective for financial statements for
periods beginning after December, 1997 and require comparative information
for earlier years to be restated. Because of the recent issuance of these
standards, Management has been unable to fully evaluate the impact, if any,
they may have on future financial statement disclosures. Results of
operations and financial position, however, will be unaffected by
implementation of these standards.
In February 1998, the FASB issued SFAS No. 132, "Employers' Disclosures
about Pensions and Other Postretirement Benefits" which standardizes the
disclosure requirements for pensions and other postretirement benefits and
requires additional information on changes in the benefit obligations and
fair values of plan assets that will facilitate financial analysis. SFAS
No. 132 is effective for years beginning after December 15, 1997 and
requires comparative information for earlier years to be restated, unless
such information is not readily available. Management believes the
adoption of this statement will have no material impact on the Company's
financial statements.
INCOME (LOSS) PER SHARE
Through December 31, 1996, the Company followed the provisions of
Accounting Principles Board Opinion ("APB") 15, "Earnings Per Share".
Effective for the year ended December 31, 1997, the Company implemented
SFAS No. 128, "Earnings Per Share". SFAS No. 128 provides for the
calculation of "Basic" and "Diluted" income (loss) per share.
Basic incom (loss) per share includes no dilution and is
computed by dividing income available to common shareholders
by the weighted average number of common shares outstanding
for the period. Diluted income (loss) per share reflects the
potential dilution of securities that could share in the
income (loss) of an entity, similar to fully diluted income (loss) per
share. In loss periods, dilutive common equivalent shares are excluded as
the effect would be antidilutive. All prior period income (loss) per
share data has been restated to reflect the requirements of SFAS No. 128.
For the three months ended March 31, 1998, option and warrant exercise
prices exceeded the average market prices of the common stock. For the
three months ended March 31, 1997, dilutive common stock equivalents of
260,650 were not included in the computation of diluted per share data
because their effect was antidilutive.
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<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. ACCOUNTING POLICIES (CONTINUED)
CURRENCY TRANSLATION
The Company had been treating the peso as the functional currency for its
Mexican subsidiary. As of December 31, 1996, Mexico was considered a
highly inflationary economy. As required by SFAS No. 52, "Foreign Currency
Translation", the Company changed the functional currency of this
subsidiary to the U.S. dollar. As a result, the Company remeasures the
financial statements from the peso to the U.S. dollar effective January 1,
1997. Nonmonetary assets and liabilities are remeasured at the exchange
rate at the date of the change in the functional currency, which rate then
becomes, in effect, the "historical rate" for translating those assets in
the future. Monetary assets and liabilities are remeasured at the exchange
rate in effect at the date a transaction occurs. Gains and losses related
to the remeasurement of monetary assets and liabilities are included in
income. The Peruvian and Nicaraguan subsidiaries are reported in U.S.
dollars.
3. INCOME TAXES AND NET OPERATING LOSS CARRYFORWARDS
At March 31, 1998, the Company has alternative minimum tax credits of
approximately $16,000 available to offset future federal income taxes on an
indefinite carryforward basis and unused net operating loss carryforwards
of approximately $3,428,000. Such net operating loss carryforwards expire
in varying amounts from 1998 to 2006 and are subject to certain limitations
under the Internal Revenue Code.
As of March 31, 1998, a valuation allowance has been recorded, as
Management of the Company is not able to determine that it is more likely
than not that the deferred tax asset will be realized. The Company has
recorded a valuation allowance primarily related to the uncertainty of
realizing operating loss carryforwards subject to limitation under the IRC
of 1986, as well as uncertainties relating to the EPA investigation and
its possible impact on the financial position in 1998.
-11-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. UNCERTAINTY
In early 1998, the Company learned that certain employees in one section of
its environmental laboratory did not consistently follow laboratory
procedures as set forth in the Company's Standard Operating Procedures and
applicable test methods. Management believes the employee practices in
question may have affected a small percentage of the soil and water test
results reported to clients of the environmental laboratory. The Company
then commenced an internal investigation, engaged outside advisors to
assist in the investigation, and initiated corrective actions. This
investigation is not yet complete. In addition, the Company informed the
United States Environmental Protection Agency ("EPA") of its investigation
and its corrective action program. EPA has informed the Company that
Agency law enforcement personnel will be conducting their own investigation
into this matter in accordance with EPA's policy towards voluntary
self disclosures of this type. The Company intends to cooperate fully with
all regulatory agencies with respect to the matter. To date, no agency or
other party has brought any action or proceeding against the Company.
In light of the above development, the Company has taken broad corrective
action measures, including: review and revision of relevant standard
operating procedures; expansion of analyst training; expansion of its
existing Quality Assurance Program including the establishment of periodic
external audits; establishment of an Ethical Work Practices and Data
Integrity Policy and the initiation of an ethics training program for all
staff.
Depending upon the nature and frequency of any improper practices and other
factors, it is possible that the Company could be subject to penalties or
other sanctions that could be substantial, and that the Company could face
other liabilities if reported test results were erroneous. At this stage in
the investigation, it is not possible to predict the ultimate outcome of
this uncertainty.
-12-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. UNCERTAINTY (CONTINUED)
The cost of the investigation and any associated liabilities may have a
material adverse impact on the results of operations, financial position
and cash flows of the Company. The Company's consolidated financial
statements do not include any adjustments that might result from the
outcome of this uncertainty.
Other than as set forth above, the Company is not a party to any material,
pending, or threatened litigation.
5. SALE OF COMMON STOCK
Effective April 13, 1998, the Company completed the sale of 1,666,666
shares of restricted common stock at a price of $.30 per share ($500,000)
to provide additional working capital. These shares were issued below the
value at which the Company's stock last traded on March 20, 1998.
Because of the difference between the issuance price and the most
recent trading price, the Company is evaluating the amount of
the possible second quarter charge, if any, to compensation
expense (a non cash charge). Among the subscribers are three
members of the Company's board of directors, two of
whom are already significant stock-holders.
-13-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the consolidated
financial statements and related notes included elsewhere herein. The Company's
future operating results may be affected by various trends and factors which are
beyond the Company's control. These include, among other factors, the
competitive environment in which the Company operates, future capital needs,
uncertainty of government contracts, uncertainties in revenue due to
fluctuations in weather, and other uncertain business conditions that affect the
Company's businesses.
With the exception of historical information, the matters discussed below under
the headings "Results of Operations" and "Capital Resources and Liquidity" may
include forward-looking statements that involve risks and uncertainties. The
Company wishes to caution readers that a number of important factors discussed
herein, and in other reports filed with the Securities and Exchange Commission,
particularly the Company's Form 10-KSB for the year ended December 31, 1997,
could affect the Company's actual results and cause actual results to differ
materially from those in the forward looking statements.
RESULTS OF OPERATIONS
Sales of services for the three months ended March 31, 1998 of $1,664,000
reflect an increase of 11% and $170,000 compared to 1997 sales of $1,494,000
for the same period. As compared to the first quarter of 1997, Environmental
Division sales were up 20% and $159,000 while Mineral Division sales were up 2%
and $11,000.
Of the revenues in the Environmental Division, the radiochemistry laboratory
sales are responsible for the entire increase, and were up over 1997 by 57%.
The inorganic and organic laboratory sales are down versus last year by 9% and
29%, respectively. The level of radiochemistry sales in 1998 partially relates
to the 1997 large one-time projects which demanded the resources of the
laboratory in 1997 and caused the work for other customer projects to be
completed in 1998, thereby causing the 1998 increase in sales.
Mineral Division sales were up over 1997 by 2% overall. The mix of sales was
heavily weighted to Nicaragua and Honduras in 1998 while the United States sales
decreased by over 50%. Historically, first quarter sales in the United States
are lower than other quarters due to the winter weather conditions. However,
the unseasonably
-14-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (CONTINUED)
wet season due to El Nino exacerbated the seasonal impact and management
believes that unusually wet weather had the same impact in Peru. The low price
of gold has slowed exploration throughout the industry but particularly in the
United States. As the gold exploration industry migrates out of North America
and into Latin America, sales from Mexico, Nicaragua, Honduras and Peru are
expected by management to become an increasingly important part of the Company's
business.
Gross profit as a percentage of sales for the three months ended March 31, 1998
at 24% is 7% (points) higher than 1997 for the same period. The gross margin
improvement is primarily attributable to the Environmental Division, as the
division controlled variable production costs (labor, supplies and outside
services) which increased only 3% over the same period of 1997, while sales
increased 20%. The first quarter of 1998 reflects a higher incremental gross
margin as revenues exceed fixed cost levels. Margins of the Mineral Division
are negatively impacted due to the start-up of the Central and South American
sample preparation facilities.
Selling, general and administrative expenses in the first quarter of 1998 are
$102,000 and 24% higher than the first quarter of 1997. While normal operating
expenses increased slightly over the same quarter of 1997, the major cause of
the increase is due to professional fees related to the investigation as
discussed further under "Capital Resources and Liquidity".
Other income (expense) improved to $3,000 of income from $8,000 of expense
primarily due to lower translation losses in 1998.
CAPITAL RESOURCES AND LIQUIDITY
Cash and cash equivalents of $283,000 at March 31, 1998 decreased by $241,000
from December 31, 1997. The use of cash in the first quarter of 1998 is
principally due to the loss for the quarter of $(123,000) and working capital
used to purchase equipment and fund start-up facilities in Central America. A
portion of the start-up investment is expected to be recovered from a major
customer.
In light of the investigation of certain procedures that were not correctly
followed, see Note 4 to the consolidated financial statements, the Company has
taken broad corrective action measures. Depending upon the nature and frequency
of any improper practices and other factors, it is possible that the Company
could be subject
-15-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
CAPITAL RESOURCES AND LIQUIDITY (CONTINUED)
to penalties or other sanctions that could be severe, and the Company could face
other liabilities if reported test results were erroneous. At this stage in the
investigation, it is not possible to predict the ultimate outcome of this
uncertainty. While Management believes that the steps it has taken to date
should mitigate any adverse consequences to the Company, the total cost of
the investigation incurred through the end of March 31, 1998, has been
approximately $100,000. The eventual cost of the ongoing investigation and any
associated liabilities may have a material adverse impact on the operations and
financial position of the Company. The Company's 1998 consolidated financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.
Effective April 13, 1998, the Company completed the sale of 1,666,666 shares of
restricted common stock at a price of $.30 per share ($500,000) to provide
additional working capital. These shares were issued below the value at which
the Company's stock last traded on March 20, 1998. Among the subscribers are
three members of the Company's board of directors, two of whom are significant
existing stockholders. The cash from this sale was received in the second
quarter.
In addition to the working capital provided from the sale of common stock, the
Company anticipates that additional future cash requirements will be satisfied
by improved sales of services, related reductions to cost of services sold,
and/or the sale of additional Company equity securities.
There can be no assurance that the Company will not require additional financial
resources to enable it to meet its obligations in the future or that any future
funds required will be generated from operations or from the aforementioned or
other potential sources. The lack of additional capital could force the Company
to substantially curtail operations and/or capital replacements and would
therefore have a material adverse effect on the Company's business.
-16-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
INCOME TAXES AND NET OPERATING LOSS CARRYFORWARDS
At March 31, 1998, the Company has about $16,000 of alternative minimum tax
credits and unused net operating loss carryforwards of approximately $3,428,000.
The alternative minimum tax credits have no expiration date and the loss
carryforwards in expire in varying amounts from 1998 to 2006 and are subject to
certain limitations under the Internal Revenue Code.
INFLATION
Inflation was not a material factor in either the sales or the operating
expenses of the Company during the periods presented herein.
YEAR 2000
The Company is aware of the issues associated with the programming code in its
existing computer systems as the year 2000 approaches. The issue is whether
these systems will properly recognize date sensitive information when the year
changes to 2000. Systems that do not properly recognize date sensitive
information could generate erroneous data or cause a system to fail.
The Company has made a decision to replace its two major computerized
information systems - accounting system and laboratory information management
system ("LIMS") - during the next year with software packages that will be
certified as year 2000 compliant by their respective manufacturers. The cost of
these replacements will be in the range of $90,000-120,000.
Management believes that both can be installed and implemented largely using
existing Company personnel at a maximum incremental operating cost of $20,000
required to pay for temporary laboratory labor during the LIMS installation
process in the Company's environmental laboratory.
In addition, the Company has established an internal Year 2000 team to
examine and resolve other potential year 2000 issues relating to the
instrumentation in use in the Company's laboratories and other minor systems
such as security and telephone systems. Management believes that the costs
associated with resolving any potential year 2000 issues associated with these
systems will not be material.
-17-
<PAGE>
BARRINGER LABORATORIES, INC. AND SUBSIDIARIES
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS. Information to be included herein is in Note 4 to
the Consolidated Financial Statements hereof.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS. None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES. None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDER. None.
ITEM 5. OTHER INFORMATION. None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. None.
-18-
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
BARRINGER LABORATORIES, INC.
----------------------------
(REGISTRANT)
Date: May 15, 1998 By: /s/J. Graham Russell
----------------------- ----------------------------
J. Graham Russell
President and C.E.O.
-19-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 283,000
<SECURITIES> 0
<RECEIVABLES> 933,000
<ALLOWANCES> 15,000
<INVENTORY> 0
<CURRENT-ASSETS> 1,470,000
<PP&E> 3,126,000
<DEPRECIATION> 2,858,000
<TOTAL-ASSETS> 1,939,000
<CURRENT-LIABILITIES> 652,000
<BONDS> 0
0
0
<COMMON> 16,000
<OTHER-SE> 1,224,000
<TOTAL-LIABILITY-AND-EQUITY> 1,939,000
<SALES> 1,664,000
<TOTAL-REVENUES> 1,664,000
<CGS> 1,271,000
<TOTAL-COSTS> 1,796,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 7,000
<INTEREST-EXPENSE> 3,000
<INCOME-PRETAX> (129,000)
<INCOME-TAX> 0
<INCOME-CONTINUING> (123,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (123,000)
<EPS-PRIMARY> (.08)
<EPS-DILUTED> (.08)
</TABLE>
