UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
------------------
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 0-18643
LUNAR CORPORATION
(Exact name of registrant as specified in its charter)
Wisconsin 3845 39-1200501
(State of (Primary Standard Industry (IRS Employer
Incorporation) Classification Code Number) Identification No.)
726 Heartland Trail
Madison, Wisconsin 53717
608-828-2663
(Address, including zip code, and telephone number, including area code,
of Registrant's principal executive offices)
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 October 31, 1999, 8,573,580 shares of the registrant's Common Stock,
$0.01 par value, were outstanding.
LUNAR CORPORATION AND SUBSIDIARIES
FORM 10-Q
For the quarterly period ended September 30, 1999
TABLE OF CONTENTS
-----------------
PART I - FINANCIAL INFORMATION Page
----
Item 1. Financial statements
Consolidated Balance Sheets
September 30, 1999, and June 30, 1999...................3
Consolidated Statements of Income
Three Months Ended September 30, 1999
and 1998................................................5
Consolidated Statements of Cash Flows
Three Months Ended September 30, 1999
and 1998................................................6
Notes to Consolidated Financial Statements..............7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.....................9
Item 3. Quantitative and Qualitative Disclosures About
Market Risk............................................12
PART II - OTHER INFORMATION......................................13
Item 1. Legal Proceedings......................................13
Item 2. Changes in Securities..................................13
Item 3. Defaults Upon Senior Securities........................13
Item 4. Submission of Matters to a Vote of Security Holders....13
Item 5. Other Information......................................13
Item 6. Exhibits and Reports on Form 8-K.......................14
SIGNATURES.......................................................15
EXHIBIT INDEX....................................................16
PART 1. FINANCIAL INFORMATION
ITEM 1. Financial Statements
LUNAR CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
- ----------------------------------------------------------------------
Assets
- ----------------------------------------------------------------------
September 30, June 30,
1999 1999
(Unaudited) (Audited)
- ----------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 13,231,666 $ 13,666,163
Marketable securities 5,986,118 4,311,834
Receivables:
Trade, less allowance for doubtful
accounts of $3,403,000 at
September 30, 1999 and $3,524,000
at June 30, 1999 25,991,401 25,316,044
Short-term financed accounts
receivable 4,995,403 4,848,186
Other 388,872 407,056
- ----------------------------------------------------------------------
31,375,676 30,571,286
Inventories 12,367,178 13,655,779
Deferred Income Taxes 2,441,000 1,992,000
Other Current Assets 451,558 431,931
- ----------------------------------------------------------------------
Total Current Assets 65,853,196 64,628,993
Property, Plant and Equipment--At Cost:
Land 2,088,118 2,088,118
Buildings and improvements 2,287,356 2,287,356
Furniture and fixtures 1,114,394 1,055,780
Machinery and other equipment 9,960,459 9,368,111
Construction in progress 8,926,099 6,787,950
- ----------------------------------------------------------------------
24,376,426 21,587,315
Less Accumulated Depreciation
and Amortization 6,986,094 6,354,858
- ----------------------------------------------------------------------
17,390,332 15,232,457
Long-term Financed Accounts Receivable 4,090,911 4,488,753
Long-term Marketable Securities 8,962,636 11,233,298
Patents and Other Intangibles, Net of
Accumulated Amortization of $639,000
at September 30, 1999 and $764,000 at
June 30, 1999 459,918 463,270
Other 115,355 117,390
- ----------------------------------------------------------------------
$ 96,872,348 $ 96,164,161
======================================================================
See accompanying notes to consolidated financial statements
LUNAR CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
- ----------------------------------------------------------------------
Liabilities and Shareholders' Equity
- ----------------------------------------------------------------------
September 30, June 30,
1999 1999
(Unaudited) (Audited)
- ----------------------------------------------------------------------
Current Liabilities:
Accounts payable $ 6,888,818 $ 9,133,277
Customer advances and deferred income 1,971,462 1,573,523
Income taxes payable 3,728,007 2,682,104
Accrued liabilities:
Commissions payable 1,679,955 2,009,340
Compensation payable 1,093,228 658,821
Property, payroll, and other taxes 368,098 250,150
Accrued warranty and installation
expenses 2,925,736 3,118,000
Other 321,486 393,537
- ----------------------------------------------------------------------
Total Current Liabilities 18,976,790 19,818,752
Shareholders' Equity:
Common stock--authorized 25,000,000
shares of $.01 par value; issued
and outstanding 8,598,580 shares at
September 30, 1999 and
June 30, 1999 85,986 85,986
Capital in excess of par value 23,454,316 23,454,316
Retained Earnings 54,471,568 52,922,982
Accumulated Other Comprehensive Income (116,312) (117,875)
- ----------------------------------------------------------------------
77,895,558 76,345,409
- ----------------------------------------------------------------------
$ 96,872,348 $ 96,164,161
======================================================================
See accompanying notes to consolidated financial statements
LUNAR CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
- ----------------------------------------------------------------------
Three months ended
September 30, September 30,
1999 1998
- ----------------------------------------------------------------------
Revenues $ 22,913,013 $ 22,824,543
- ----------------------------------------------------------------------
Operating Expenses
Cost of sales 13,416,345 12,221,926
Research and development 1,649,553 2,046,620
Selling and marketing 5,306,361 5,693,407
General and administrative 1,013,298 1,093,790
- ----------------------------------------------------------------------
21,385,557 21,055,743
- ----------------------------------------------------------------------
Income from Operations 1,527,456 1,768,800
- ----------------------------------------------------------------------
Other Income (Expense):
Interest income 495,470 346,666
Settlement of lawsuit 0 (579,555)
Other 189,660 88,634
- ----------------------------------------------------------------------
685,130 (144,255)
- ----------------------------------------------------------------------
Income Before Income Taxes 2,212,586 1,624,545
Income Tax Expense 664,000 470,000
- ----------------------------------------------------------------------
Net Income $ 1,548,586 $ 1,154,545
======================================================================
Basic Earnings per Share $0.18 $0.13
======================================================================
Diluted Earnings per Share $0.18 $0.13
======================================================================
Weighted Average Number of
Common Shares 8,598,580 8,658,945
======================================================================
Weighted Average Number of
Common and Dilutive Potential
Common Shares 8,768,507 8,873,912
======================================================================
See accompanying notes to consolidated financial statements
LUNAR CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
- ----------------------------------------------------------------------
Three months ended
September 30, September 30,
1999 1998
- ----------------------------------------------------------------------
Cash Flows from Operating Activities:
Net income $1,548,586 $1,154,545
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 723,318 845,444
Deferred income taxes (449,000) (150,000)
Changes in assets and liabilities:
Receivables (404,513) (6,016,843)
Inventories 1,288,601 (1,026,015)
Other current assets (19,627) (310,692)
Accounts payable (2,202,600) 2,063,815
Customer advances and deferred income 397,939 44,845
Accrued liabilities (41,345) 964,849
Income taxes payable 1,045,903 (281,733)
- ----------------------------------------------------------------------
Net Cash Provided by (Used in)
Operating Activities 1,887,262 (2,711,785)
- ----------------------------------------------------------------------
Cash Flows from Investing Activities:
Sales and maturities of
marketable securities 500,000 6,206,095
Additions to property, plant
and equipment (2,789,111) (1,485,990)
Additions to patents and
other intangibles (32,648) (19,647)
- ----------------------------------------------------------------------
Net Cash Provided by (Used in)
Investing Activities (2,321,759) 4,700,458
- ----------------------------------------------------------------------
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 0 20,830
Income tax benefit from stock
option exercises 0 3,866
Repurchase of common stock 0 (1,436,600)
- ----------------------------------------------------------------------
Net Cash Provided by (Used in)
Financing Activities 0 (1,411,904)
- ----------------------------------------------------------------------
Net Increase (Decrease) in Cash and
Cash Equivalents (434,497) 576,769
Cash and Cash Equivalents at
Beginning of Period 13,666,163 4,608,427
- ----------------------------------------------------------------------
Cash and Cash Equivalents at
End of Period $13,231,666 $5,185,196
======================================================================
Supplemental Disclosure of Cash
Flow Information:
Income taxes paid 37,000 917,000
======================================================================
See accompanying notes to consolidated financial statements
LUNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) BASIS OF PRESENTATION
The consolidated financial statements of Lunar Corporation presented herein,
without audit except for balance sheet information at June 30, 1999, have been
prepared pursuant to the rules of the Securities and Exchange Commission for
quarterly reports on Form 10-Q and do not include all of the information and
note disclosures required by generally accepted accounting principles. These
statements should be read in conjunction with the consolidated financial
statements and notes thereto included in Lunar's Annual Report on Form 10-K
for the year ended June 30, 1999.
The consolidated balance sheet as of September 30, 1999, the consolidated
statements of income for the three months ended September 30, 1999 and 1998,
and the consolidated statements of cash flows for the three months ended
September 30, 1999 and 1998 are unaudited but, in the opinion of management,
include all adjustments (consisting of normal, recurring adjustments)
necessary for a fair presentation of results for these interim periods.
Lunar has reclassified the presentation of certain prior year information
to conform with the current presentation format.
The results of operations for the three months ended September 30, 1999, are
not necessarily indicative of the results to be expected for the entire fiscal
year ending June 30, 2000.
(2) INVENTORIES
Inventories are stated at the lower of cost or market; cost is determined
principally by the first-in, first-out method. Inventories are broken down as
follows:
- ----------------------------------------------------------------------
September 30, June 30,
1999 1999
(Unaudited) (Audited)
- ----------------------------------------------------------------------
Finished goods and work in process $ 6,418,395 $ 7,125,027
Materials and purchased parts 5,948,783 6,530,752
----------- -----------
$12,367,178 $13,655,779
=========== ===========
(3) SHAREHOLDERS' EQUITY
On April 22, 1997, Lunar approved a stock repurchase program pursuant to
which it may repurchase up to 1,000,000 shares of its common stock from time
to time based upon market conditions and other factors. Lunar has repurchased
339,400 shares under this program as of October 31, 1999.
(4) EARNINGS PER SHARE
The difference between the weighted average number of common shares and
the weighted average number of common and dilutive potential common shares is
due to the effect of dilutive stock options.
(5) COMPREHENSIVE INCOME (LOSS)
Effective July 1, 1998, Lunar adopted Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income" which establishes
standards to report and display comprehensive income and its components
in a full set of general purpose financial statements. Lunar's comprehensive
income was as follows:
Three Months Ended
September 30,
1999 1998
----------- ------------
Net Income $1,548,586 $1,154,545
Other Comprehensive Income:
Unrealized adjustment in
marketable securities (40,296) 31,710
Foreign currency translation
Adjustments 41,859 40,423
----------- ------------
Comprehensive income $1,550,149 $1,226,678
=========== ============
(6) SETTLEMENT OF LAWSUIT
Lunar settled a lawsuit with Osteometer Meditech A/S and Rapiscan Security
Systems Inc. during the quarter ended September 30, 1998. Lunar incurred
expenses of $579,555 in the quarter ended September 30, 1998 comprised of
legal expenses, a settlement payment, and a patent write-off related to this
settlement.
Item 2. Management's Discussion and Analysis of Financial Condition and
---------------------------------------------------------------
Results of Operations
---------------------
Results of Operations
- ---------------------
Equipment sales and other revenue increased slightly to $22,913,000 in the
three months ended September 30, 1999 from $22,825,000 in the three months
ended September 30, 1998. Sales by product line are summarized as follows:
Revenues by Product
(in thousands)
Three Months Ended
---------------------------
September 30, September 30,
1999 1998
------------- -------------
X-ray densitometry $12,013 $15,385
Ultrasound densitometry 3,104 1,415
Orthopedic Imaging 5,205 4,080
Service Revenue 2,046 1,691
Other 545 254
--------- --------
$22,913 $22,825
========= ========
X-ray densitometry sales in the three months ended September 30, 1999 were
lower compared to the prior year as a result of a decrease in the number of
units sold. Average selling prices were also lower due to competitive pricing
pressures. The increase in ultrasound densitometry revenue is primarily due to
the introduction of the Achilles Express in May 1999. The increase in
Orthopedic Imaging sales for the current fiscal year is primarily due to
increased unit sales of the E-Scan dedicated MRI system. The increase in
service revenue is attributable to a growing installed base of densitometers
in the United States.
Cost of sales as a percentage of equipment sales averaged approximately 59%
in the three months ended September 30, 1999, compared to 54% in the three
months ended September 30, 1998. These lower margins primarily result from
a decrease in densitometry average selling prices and a higher mix of
orthopedic imaging equipment sales which have lower gross profit margins.
Research and development expenditures decreased to $1,650,000 in the three
months ended September 30, 1999 from $2,047,000 in the three months ended
September 30, 1998. These expenses were lower in the quarter ended September
30, 1999 due to the completion of development work associated with the Prodigy
and Achilles Express bone densitometers. Lunar expects this trend to continue
and plans to spend less on research and development in this fiscal year.
Selling and marketing expenses were $5,306,000 in the three months ended
September 30, 1999, compared to $5,693,000 in the three months ended September
30, 1998, representing a decrease to 23% from 25% as a percentage of equipment
sales. This decrease is primarily attributable to lower marketing expenses.
General and administration expenses decreased to $1,013,000 in the three
months ended September 30, 1999 from $1,094,000 in the three months ended
September 30, 1998. In May 1999 Lunar sold the assets of Bona Fide, Ltd.
This sale resulted in lower general and administrative expenses.
Interest income was $495,000 in the three months ended September 30, 1999,
compared to $347,000 in the three months ended September 30, 1998. The
increase is due to improved collection experience on interest associated with
financed receivables.
The effective tax rate averaged 30% in the three months ended September 30,
1999, compared to 29% in the three months ended September 30, 1998. The rate
for the three months ended September 30, 1999 and September 30, 1998 is below
the 34% federal statutory rate as a result of tax-exempt interest income and
the tax benefit of the foreign sales corporation offset by the provision for
state income taxes.
Liquidity and Capital Resources
- -------------------------------
Cash and cash equivalents decreased $434,000 to $13,232,000 in the three
months ended September 30, 1999. Lunar has a $14,949,000 laddered portfolio
of high-grade, readily marketable municipal bonds with various maturities not
exceeding 48 months.
Lunar's trade accounts receivable increased $407,000 to $35,467,000 at
September 30, 1999 from $35,060,000 at June 30, 1999. This increase is
primarily attributable to higher sales for the quarter ended September 30,
1999 as compared to the quarter ended June 30, 1999 offset by a reduction
in financed Brazilian accounts receivable.
Lunar has financed the sale of its equipment to Brazilian customers for more
than eight years and has approximately $7,816,000 in outstanding receivables
from Brazilian customers as of September 30, 1999. During fiscal years 1998
and 1997 Lunar sold approximately $15,000,000 of Brazilian accounts receivable
to two finance companies of which approximately $3,651,000 is outstanding as
of September 30, 1999. The two finance companies have recourse against Lunar
for a maximum of $1,395,000 for these receivables. All of the Brazilian
accounts receivable are denominated in U.S. dollars. In January 1999 the
Brazilian government allowed its currency, the real, to freely trade against
the U.S. dollar. As of November 1999, this policy change resulted in a 59%
devaluation of the real as compared to the U.S. dollar. Lunar has incurred
some payment delays from Brazilian customers and lower sales in Brazil as a
result of this devaluation. Lunar has renegotiated longer payment terms for
a majority of these Brazilian customers. As a result, collection activities
have recently improved and total financed Brazilian accounts receivable have
declined to $7,816,000 from $8,091,000 at June 30, 1999.
Inventories decreased 9% to $12,367,000 at September 30, 1999 from
$13,656,000 at June 30, 1999. This decrease is a result of management's focus
on reducing inventory levels. Management expects inventory levels to decline
further during fiscal year 2000.
Lunar purchased a 25-acre parcel of land in January 1998 for $1,949,000 and
began construction of an assembly, warehouse, and office building in October
1998. Lunar projects total construction costs will be approximately
$9,600,000, of which $8,926,099 had been paid as of September 30, 1999.
Lunar moved its assembly operations and warehouse to the new building in
July 1999 and moved its office personnel in October 1999. Lunar does not
have any other pending material commitments for capital expenditures.
Lunar has received a commitment from the State of Wisconsin Investment Board
to provide a 20 year term loan for up to $10,000,000. The loan will be used
to replenish Lunar's cash balances used to construct the new office building.
The interest rate will be fixed at the time the loan proceeds are paid.
Management believes the current level of cash and short-term investments is
adequate to finance Lunar's operations for the foreseeable future.
New Accounting Pronouncements
- -----------------------------
SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities"
is effective for financial statements for periods beginning after June 15,
2000. SFAS No. 133 establishes accounting and reporting standards for
derivative instruments and hedging activities. Lunar does not expect this
statement to have a material effect on its financial statements.
Year 2000 Compliance
- --------------------
Many currently installed computer systems and software products are coded to
accept only two-digit entries in the date code field. To distinguish 21st
century from 20th century dates, these date code fields must be able to accept
four-digit entries.
Lunar has reviewed its existing financial and other business information
systems and believes that its computer systems will be able to manage and
manipulate all material data involving the transition from 1999 to 2000
without functional or data abnormality and without inaccurate results related
to such data. Lunar replaced its manufacturing and financial accounting
software package during fiscal 1998 at a cost of approximately $230,000.
This new software package is year 2000 compliant. Lunar does not expect to
incur significant additional costs to complete its year 2000 compliance
program.
It is possible that third parties, such as suppliers and distributors, may
have noncompliant computer systems or programs, which may not interface
properly with Lunar's computer systems or may otherwise result in a disruption
of Lunar's operations. Lunar has received assurances from third parties with
which it has a material relationship that their computers, systems, and
programs are year 2000 compliant.
Lunar currently anticipates that the expenses and capital expenditures
associated with its year 2000 compliance program will not have a material
effect on its financial position, results of operations or cash flows.
Because Lunar's software programs are year 2000 compliant, and Lunar does
not believe any material problems will arise if a third party is not year
2000 compliant, Lunar has not developed any contingency plan.
Item 3. Quantitative and Qualitative Disclosure About Market Risk
---------------------------------------------------------
Lunar's exposure to market risk for changes in interest rates relate
primarily to the Lunar's investment portfolio. Lunar does not use derivative
financial instruments in its investment portfolio. Lunar places its
investments with high credit quality issuers and, by policy, limits the amount
of credit exposure to any one issuer. As stated in its policy, Lunar is
adverse to principal loss and ensures the safety and preservation of its
invested funds by limiting default risk, market risk, and reinvestment risk.
Lunar mitigates default risk by investing in only high credit quality
securities. The portfolio includes only marketable securities with active
secondary or resale markets to ensure portfolio liquidity. All investments
mature, by policy, in 48 months or less.
Lunar uses forward currency contracts in its management of foreign currency
exposures. The contracts are in German Deutsche Marks, French Francs and
Belgium Francs and generally have maturities which do not exceed three months.
Realized gains and losses on such contracts are included in other income at
the time the hedged transaction occurs. There were no deferred gains or losses
at September 30, 1999. These contracts are entered into with major financial
institutions thereby minimizing the risk of credit loss.
The table below provides information about the Lunar's market sensitive
financial instruments and constitutes a "forward-looking statement." All
items described below are non-trading and are stated in U.S. dollars.
During fiscal year ended June 30,
---------------------------------
Maturity Dates 2000 2001 2002
- ---------------------------------------------------------------------------
ASSETS
Cash Equivalents
Variable taxable rate $7,132,716
Average taxable interest rate 4.40%
Variable tax-exempt rate $6,098,950
Average tax-exempt rate 3.23%
Marketable securities
Fixed tax-exempt rate $3,741,900 $7,663,600 $3,245,000
Average tax-exempt rate 4.28% 4.23% 4.19%
Forward contract
German DM denominated $ 954,511
Contracted exchange rate 1.8334:1
(DM to US$)
French Franc denominated $2,535,143
Contracted exchange rate 6.1535:1
(FF to US$)
Belgium Franc denominated $ 422,610
Contracted exchange rate 37.86:1
(BF to US$)
PART II - OTHER INFORMATION
LUNAR CORPORATION AND SUBSIDIARIES
Item 1. Legal Proceedings
On May 21, 1998 Lunar filed suit against International Medical
Research Ottawa ("IMRO") for infringement of Lunar's Canadian patent
number 1,323,090 (the `090 patent). IMRO manufactures and sells
ultrasound bone densitometers in Canada and has manufactured ultrasound
densitometers for Norland Medical Systems, Inc. for distribution and
sales throughout the world. This suit is pending in the Federal Court
of Canada-Trial Division. On September 10, 1999, the parties reached
an agreement in principle to resolve this litigation. Under the terms
of the agreement, IMRO will terminate its operations in Canada within
three months and pay Lunar a royalty for each system manufactured or
sold during that period.
On November 24, 1998 Lunar was issued U.S. patent number 5, 841,832
(the `832 patent). On January 20, 1999 Lunar brought suit against EG&G
Astrophysics Research Corporation and its parent company EG&G, Inc.
(collectively referred to as ("EG&G") in the United States District
Court for the Western District of Wisconsin for infringement of the `832
patent by EG&G's dual-energy baggage scanners. The parties have reached
an agreement to resolve this litigation. Under the terms of the
agreement, EG&G will pay future royalties to Lunar for all sales of
products that utilize the technology claimed in the `832 patent.
Other Matters: Lunar is a defendant from time to time in
actions arising out of its ordinary business operations. There are no
other legal proceedings known to Lunar at this time, which it
believes, would likely have a material adverse impact on the results
of operations, financial condition or cash flows of Lunar. To Lunar's
knowledge, there are no material legal proceedings to which any
director, officer, affiliate or more than 5% shareholder of Lunar (or
any associate of the foregoing persons) is a party adverse to Lunar
or any of its subsidiaries or has a material interest adverse to
Lunar.
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
Safe Harbor for Forward-Looking Statements: In addition to the
historical information presented in this quarterly report, Lunar has
made and will make certain forward-looking statements in this report,
other reports filed by Lunar with the Securities and Exchange
Commission, reports to stockholders and in certain other contexts
relating to future net sales, costs of sales, other expenses,
profitability, financial resources, or products and production
schedules. Statements relating to the foregoing or that predict or
indicate future events and trends and which do not relate solely to
historical matters identify forward-looking statements. Forward-looking
statements are made pursuant to the safe harbor provisions of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 and are based on management's beliefs as well as
assumptions made by and information currently available to management.
Accordingly, Lunar's actual results may differ materially from those
expressed or implied in such forward-looking statements due to known and
unknown risks and uncertainties that exist in Lunar's operations and
business environment, including, among other factors, technical risks
associated with the development of new products, regulatory policies in
the United States and other countries, reimbursement policies of public
and private health care payors, introduction and acceptance of new drug
therapies, competition from existing products and from new products or
technologies, the failure by Lunar to produce anticipated cost savings
or improve productivity, the timing and magnitude of capital
expenditures and acquisitions, currency exchange risks, economic and
market conditions in the United States, Europe and the rest of the
world, changes in customer spending levels, the cost and availability
of raw materials, and other risks associated with Lunar's operations.
Although Lunar believes that its forward-looking statements are based
on reasonable assumptions, there can be no assurance that actual
results, performance or achievements will not differ materially from any
future results, performance or achievements expressed or implied by such
forward-looking statements. Readers are cautioned not to place undue
reliance on forward-looking statements. Lunar disclaims any obligation
to update any such factors or to publicly announce any revisions to any
of the forward-looking statements contained herein to reflect future
events or developments.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits furnished:
(27.1) Financial Data Schedule, September 30, 1999
(27.2) Financial Data Schedule, September 30, 1998
(b) Reports on Form 8-K
No reports on Form 8-K were filed by Lunar during the quarter
ended September 30, 1999.
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.
LUNAR CORPORATION
(Registrant)
Date: November 11, 1999 /s/ Richard B. Mazess
- ----------------------- -------------------------
Richard B. Mazess
President
(Principal Executive Officer)
Date: November 11, 1999 /s/ Robert A. Beckman
- ----------------------- ------------------------
Robert A. Beckman
Vice President of Finance
and Treasurer
(Principal Financial and
Accounting Officer)
LUNAR CORPORATION AND SUBSIDIARIES
Exhibit Index
For the Quarterly Period Ended September 30, 1999
No. Description
- --- -----------
27.1 Financial Data Schedule, September 30, 1999
27.2 Financial Data Schedule, September 30, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial information
extracted from Form 10-Q for the three months ended
September 30, 1999, and is qualified in its entirety by
reference to such financial statements.
<MULTIPLIER> 1,000
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> SEP-30-1999
<CASH> 13,232
<SECURITIES> 14,949
<RECEIVABLES> 38,870
<ALLOWANCES> 3,403
<INVENTORY> 12,367
<CURRENT-ASSETS> 65,853
<PP&E> 24,376
<DEPRECIATION> 6,986
<TOTAL-ASSETS> 96,872
<CURRENT-LIABILITIES> 18,977
<BONDS> 0
<COMMON> 86
0
0
<OTHER-SE> 77,809
<TOTAL-LIABILITY-AND-EQUITY> 96,872
<SALES> 22,913
<TOTAL-REVENUES> 22,913
<CGS> 13,416
<TOTAL-COSTS> 21,386
<OTHER-EXPENSES> (190)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,213
<INCOME-TAX> 664
<INCOME-CONTINUING> 1,549
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,549
<EPS-BASIC> .18
<EPS-DILUTED> .18
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial information
extracted from Form 10-Q for the three months ended
September 30, 1998, and is qualified in its entirety by
reference to such financial statements.
<MULTIPLIER> 1,000
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> SEP-30-1998
<CASH> 5,185
<SECURITIES> 24,609
<RECEIVABLES> 40,671
<ALLOWANCES> 3,221
<INVENTORY> 14,189
<CURRENT-ASSETS> 62,609
<PP&E> 13,627
<DEPRECIATION> 5,546
<TOTAL-ASSETS> 92,681
<CURRENT-LIABILITIES> 17,255
<BONDS> 0
<COMMON> 86
0
0
<OTHER-SE> 75,340
<TOTAL-LIABILITY-AND-EQUITY> 92,681
<SALES> 22,825
<TOTAL-REVENUES> 22,825
<CGS> 12,222
<TOTAL-COSTS> 21,056
<OTHER-EXPENSES> 491
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,625
<INCOME-TAX> 470
<INCOME-CONTINUING> 1,155
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,155
<EPS-BASIC> .13
<EPS-DILUTED> .13
</TABLE>
