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 March 31, 2000
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 April 30, 2000, 8,573,705 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 March 31, 2000
TABLE OF CONTENTS
-----------------
PART I - FINANCIAL INFORMATION Page
----
Item 1. Financial statements
Consolidated Balance Sheets
March 31, 2000, and June 30, 1999 . . . . . . . . . . . . . 3
Consolidated Statements of Operations
Three and Nine Months Ended March 31, 2000
and 1999. . . . . . . . . . . . . . . . . . . . . . . . . . 5
Consolidated Statements of Cash Flows
Nine Months Ended March 31, 2000
and 1999. . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . .11
PART II - OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . .12
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . .12
Item 2. Changes in Securities . . . . . . . . . . . . . . . . . . .12
Item 3. Defaults Upon Senior Securities . . . . . . . . . . . . . .12
Item 4. Submission of Matters to a Vote of Security Holders . . . .12
Item 5. Other Information . . . . . . . . . . . . . . . . . . . . .13
Item 6. Exhibits and Reports on Form 8-K. . . . . . . . . . . . . .13
SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14
EXHIBIT INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . .15
PART 1. FINANCIAL INFORMATION
ITEM 1. Financial Statements
LUNAR CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
- ---------------------------------------------------------------------------
Assets
- ---------------------------------------------------------------------------
March 31, June 30,
2000 1999
(Unaudited) (Audited)
- ---------------------------------------------------------------------------
Current Assets:
Cash and cash equivalents $ 5,766,992 $13,666,163
Marketable securities 11,547,202 4,311,834
Receivables:
Trade, less allowance for doubtful
accounts of $3,209,000 at
March 31, 2000 and $3,524,000
at June 30, 1999 25,213,953 25,316,044
Short-term financed accounts
receivable 4,545,343 4,848,186
Other 915,666 407,056
- ---------------------------------------------------------------------------
30,674,962 30,571,286
Inventories 12,307,398 13,655,779
Deferred Income Taxes 2,451,000 1,992,000
Other Current Assets 252,945 431,931
- ---------------------------------------------------------------------------
Total Current Assets 63,000,499 64,628,993
Property, Plant and Equipment--At Cost:
Land 1,927,260 2,088,118
Buildings and improvements 9,998,780 2,287,356
Furniture and fixtures 1,424,616 1,055,780
Machinery and other equipment 10,664,758 9,368,111
Construction in progress 0 6,787,950
- ---------------------------------------------------------------------------
24,015,414 21,587,315
Less Accumulated Depreciation and
Amortization 7,097,670 6,354,858
- ---------------------------------------------------------------------------
16,917,744 15,232,457
- ---------------------------------------------------------------------------
Long-term Financed Accounts Receivable 4,626,734 4,488,753
Long-term Marketable Securities 14,471,889 11,233,298
Patents and Other Intangibles, Net of
Accumulated Amortization of $711,000 at
March 31, 2000 and $603,000 at
June 30, 1999 433,688 463,270
Other 360,501 117,390
- ---------------------------------------------------------------------------
$99,811,055 $96,164,161
===========================================================================
See accompanying notes to consolidated financial statements
LUNAR CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
- ---------------------------------------------------------------------------
Liabilities and Shareholders' Equity
- ---------------------------------------------------------------------------
March 31, June 30,
2000 1999
(Unaudited) (Audited)
- ---------------------------------------------------------------------------
Current Liabilities:
Accounts payable $5,661,143 $9,133,277
Customer advances and deferred income 2,717,855 1,573,523
Income taxes payable 2,469,156 2,682,104
Accrued liabilities:
Commissions payable 1,772,571 2,009,340
Compensation payable 681,324 658,821
Property, payroll, and other taxes 671,393 250,150
Accrued warranty and installation
expenses 3,107,272 3,118,000
Other 421,892 393,537
- ---------------------------------------------------------------------------
Total Current Liabilities 17,502,606 19,818,752
Shareholders' Equity:
Common stock--authorized 25,000,000
shares of $.01 par value; issued
and outstanding 8,620,805 shares
at March 31, 2000 and
8,598,580 at June 30, 1999 86,208 85,986
Capital in excess of par value 23,450,244 23,454,316
Retained Earnings 59,069,332 52,922,982
Accumulated Comprehensive Income (297,335) (117,875)
- ---------------------------------------------------------------------------
82,308,449 76,345,409
- ---------------------------------------------------------------------------
$99,811,055 $96,164,161
===========================================================================
See accompanying notes to consolidated financial statements
LUNAR CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
- ---------------------------------------------------------------------------
Three months ended Nine Months Ended
March 31, March 31, March 31, March 31,
2000 1999 2000 1999
- ---------------------------------------------------------------------------
Revenues $22,211,300 $19,749,021 $68,685,521 $65,983,823
Cost of sales 12,171,582 11,701,195 38,795,288 37,255,038
- ---------------------------------------------------------------------------
Gross Profit 10,039,718 8,047,826 29,890,233 28,728,785
- ---------------------------------------------------------------------------
Operating Expenses
Research and development 1,337,355 1,803,950 4,283,226 5,618,143
Selling and marketing 5,275,876 6,687,570 15,975,888 19,035,645
General and
administrative 1,036,436 1,131,034 3,172,285 3,525,061
- ---------------------------------------------------------------------------
7,649,667 9,622,554 23,431,399 28,178,849
- ---------------------------------------------------------------------------
Income (Loss) from
Operations 2,390,051 (1,574,728) 6,458,834 549,936
- ---------------------------------------------------------------------------
Other Income (Expense):
Interest income 545,190 443,310 1,522,453 1,136,193
Other - Net 373,329 (8,088) 800,063 370,126
Settlement of lawsuit 0 0 0 (579,555)
- ---------------------------------------------------------------------------
918,519 435,222 2,322,516 926,764
- ---------------------------------------------------------------------------
Income (Loss) Before
Income Taxes 3,308,570 (1,139,506) 8,781,350 1,476,700
Income Tax Expense
(Benefit) 993,000 (315,000) 2,635,000 411,000
- ---------------------------------------------------------------------------
Net Income (Loss) $ 2,315,570 $ (824,506) $ 6,146,350 $ 1,065,700
===========================================================================
Basic Earnings per Share $0.27 ($0.10) $0.72 $0.12
===========================================================================
Diluted Earnings per Share $0.26 ($0.10) $0.70 $0.12
===========================================================================
Weighted Average Number of
Common Shares 8,601,684 8,607,330 8,593,698 8,623,714
===========================================================================
Weighted Average Number of
Common and Dilutive
Potential Common Shares 8,878,488 8,607,330 8,777,509 8,793,191
===========================================================================
See accompanying notes to consolidated financial statements
LUNAR CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
- ---------------------------------------------------------------------------
Nine months ended
March 31, March 31,
2000 1999
- ---------------------------------------------------------------------------
Cash Flows from Operating Activities:
Net income $6,146,350 $1,065,700
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Depreciation and amortization 1,890,833 1,599,603
Deferred income taxes (459,000) (433,000)
Gain on sale of building (288,900) 0
Write-off patents 0 159,959
Changes in assets and liabilities:
Receivables (234,768) (7,319,920)
Inventories 1,348,381 (979,018)
Other current assets 178,986 (64,514)
Accounts payable (3,559,823) 524,257
Customer advances and deferred income 1,144,332 416,638
Accrued liabilities 224,604 1,474,355
Income taxes payable (82,130) (1,093,192)
- ---------------------------------------------------------------------------
Net Cash Provided by (Used in)
Operating Activities 6,308,865 (4,649,132)
- ---------------------------------------------------------------------------
Cash Flows from Investing Activities:
Purchases of marketable securities (13,027,717) 0
Sales and maturities of marketable
securities 2,221,900 13,784,230
Additions to property, plant and equipment (4,854,312) (4,373,961)
Proceeds from sale of building 1,665,178 0
Additions to patents and other intangibles (78,418) (98,978)
- ---------------------------------------------------------------------------
Net Cash Provided by (Used in)
Investing Activities (14,073,369) 9,311,291
- ---------------------------------------------------------------------------
Cash Flows from Financing Activities:
Proceeds from exercise of stock options 220,333 41,187
Repurchase of common stock (355,000) (1,576,600)
- --------------------------------------------------------------------------
Net Cash Used in Financing Activities (134,667) (1,535,413)
- --------------------------------------------------------------------------
Net Increase (Decrease) in Cash and
Cash Equivalents (7,899,171) 3,126,746
Cash and Cash Equivalents at Beginning
of Period 13,666,163 4,608,427
- --------------------------------------------------------------------------
Cash and Cash Equivalents at End of Period $ 5,766,992 $ 7,735,173
==========================================================================
Supplemental Disclosure of Cash
Flow Information:
Income taxes paid $ 3,215,677 $1,679,995
==========================================================================
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 March 31, 2000, the consolidated
statements of operations for the three and nine months ended March 31, 2000
and 1999, and the consolidated statements of cash flows for the nine months
ended March 31, 2000 and 1999 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 and nine months ended March 31,
2000, 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:
- ---------------------------------------------------------------------------
March 31, June 30,
2000 1999
(Unaudited) (Audited)
- ---------------------------------------------------------------------------
Finished goods and work in process $ 7,747,782 $ 7,125,027
Materials and purchased parts 4,559,616 6,530,752
----------- -----------
$12,307,398 $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 419,400 shares under this program as of April 30, 2000.
(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 Nine Months Ended
March 31, March 31,
2000 1999 2000 1999
---------- ---------- ---------- ----------
Net Income (Loss) $2,315,570 $ (824,506) $6,146,350 $1,065,700
Other Comprehensive Income:
Unrealized adjustment in
marketable securities (27,148) (24,383) (91,771) 60,484
Foreign currency translation
adjustments (55,581) (29,980) (87,689) 13,228
---------- ---------- ---------- ----------
Comprehensive income (Loss) $2,232,841 $ (878,869) $5,966,890 $1,139,412
========== ========== ========== ==========
(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 DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Equipment sales and other revenue increased 12% to $22,211,000 in the
three months ended March 31, 2000 from $19,749,000 in the three months
ended March 31, 1999. For the nine months ended March 31, 2000,
equipment sales and other revenue increased 4% to $68,686,000 from
$65,984,000 in the nine months ended March 31, 1999. Sales by product
line are summarized as follows:
Revenues by Product
(in thousands)
Three Months Ended Nine Months Ended
------------------------- -------------------------
March 31, March 31, March 31, March 31,
2000 1999 2000 1999
------------ ------------ ----------- ----------
X-ray densitometry $12,805 $12,488 $38,264 $42,390
Ultrasound densitometry 2,119 2,171 8,216 5,948
Orthopedic Imaging 4,575 2,716 14,279 11,202
Service Revenue 2,379 1,750 6,536 5,186
Other 333 624 1,391 1,258
------------ ------------ ----------- ---------
$22,211 $19,749 $68,686 $65,984
============ ============ =========== ==========
X-ray densitometry sales in nine months ended March 31, 2000 declined
compared to the same period last year as a result of a decrease in
the number of units sold. 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 three and
nine months ended March 31, 2000 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 and MRI equipment
in the United States.
Gross profit as a percentage of equipment sales averaged approximately 45%
and 44% in the three and nine month periods ended March 31, 2000,
respectively, compared to 41% and 44% in the three and nine month periods
ended March 31, 1999, respectively. The higher margins in the three months
ended March 31, 2000 primarily result from an increase in sales of the PRODIGY
x-ray densitometer which has a higher margin than Lunar's other table
densitometers.
Research and development expenditures decreased to $1,337,000 in the three
months ended March 31, 2000 from $1,804,000 in the three months ended
March 31, 1999, and decreased to $4,283,000 in the nine months ended
March 31, 2000 from $5,618,000 in the nine months ended March 31, 1999.
Current fiscal year expenses were lower due to the completion of development
work associated with the Prodigy and Achilles Express bone densitometers in
fiscal year 1999.
Selling and marketing expenses were $5,276,000 in the three months
ended March 31, 2000, compared to $6,688,000 in the three months ended
March 31, 1999, representing a decrease to 24% from 34% as a percentage
of revenues. For the nine months ended March 31, 2000, selling and
marketing expenses were $15,976,000 compared to $19,036,000 for the nine
months ended March 31, 1999, representing a decrease to 23% from 29% as
a percentage of revenues. One reason for the decline in sales and marketing
expenses is that Lunar increased the allowance for doubtful accounts by
$1,000,000 in the quarter ended March 31, 1999, in anticipation of possible
losses on its portfolio of Brazilian receivables. These decreases are also
attributable to reduced spending on document translations, advertising,
literature creation, and a reduced headcount in the Marketing Department.
General and administrative expenses decreased to $1,036,000 in the three
months ended March 31, 2000 from $1,131,000 in the three months ended
March 31, 1999, and decreased to $3,172,000 in the nine months ended
March 31, 2000 from $3,525,000 in the nine months ended March 31,
1999. In May 1999 Lunar sold the business and related assets of Bona
Fide, Ltd. which contributed to lower general and administrative expenses
in fiscal year 2000.
Interest income was $545,000 and $1,522,000 in the three and nine months
ended March 31, 2000, respectively, compared to $443,000 and $1,136,000 in
the three and nine months ended March 31, 1999, respectively. The increase
is due to improved collection experience on interest associated with
financed receivables and higher amounts invested in marketable securities.
The effective tax rate averaged 30% in both the three and nine month
periods ended March 31, 2000, compared to the 28% in the three and
nine month periods ended March 31, 1999. The rate for the three and nine
month periods ended March 31, 2000 and 1999 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 $7,899,000 to $5,767,000 in the nine
months ended March 31, 2000, due to increased investments in marketable
securities. Lunar has a $26,019,000 laddered portfolio of high-grade,
readily marketable municipal bonds with various maturities not exceeding
48 months. Total cash and marketable securities increased by $2,575,000
during the nine months ended March 31, 2000.
Lunar has financed the sale of its equipment to Brazilian customers for
more than eight years and has approximately $7,916,000 in outstanding
receivables from Brazilian customers as of March 31, 2000. During
fiscal years 1998 and 1997 Lunar sold approximately $15,000,000 of
Brazilian accounts receivable to two finance companies of which
approximately $2,534,000 is outstanding as of March 31, 2000. The two
finance companies have maximum recourse of $684,000 against Lunar
related to 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
which resulted in a 49% 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 that purchased equipment prior to March 31, 1999. Total
financed Brazilian accounts receivable declined to $7,916,000 from
$8,091,000 at June 30, 1999.
Inventories decreased 10% to $12,307,000 at March 31, 2000 from
$13,656,000 at June 30, 1999, as a result of management's focus on
reducing inventory levels. Management expects inventory levels to
decline further during the next year.
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 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 pending material commitments for capital
expenditures.
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.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Lunar's exposure to market risk for changes in interest rates relate
primarily to 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 the European EURO and generally have
maturities that 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 March 31,
2000. These contracts are with major financial institutions thereby
minimizing the risk of credit loss.
The table below provides information about 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 2003
- ---------------------------------------------------------------------------
ASSETS
Cash Equivalents
Variable taxable rate $5,138,450
Average taxable interest rate 5.24%
Variable tax-exempt rate $ 628,542
Average tax-exempt rate 3.66%
Marketable securities
Fixed tax-exempt rate $5,070,000 $9,671,100 $6,950,000 4,160,000
Average tax-exempt rate 4.15% 4.21% 4.21% 4.72%
Forward contract
EURO denominated $3,567,540
Contracted exchange rate 0.9642:1
(US$ to EUR)
PART II - OTHER INFORMATION
LUNAR CORPORATION AND SUBSIDIARIES
Item 1. Legal Proceedings
On May 21, 1998 Lunar filed suit in the Federal Court of Canada-Trial
Division against International Medical Research Ottawa("IMRO") for
infringement of Lunar's Canadian patent number 1,323,090. 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. The parties have been involved in
settlement discussions but no definitive settlement agreement has been
reached.
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 U.S. patent number 5,841,832 (the 832 patent)
by EG&G's dual-energy baggage scanners. In October 1999, the parties
reached an agreement to resolve this litigation. Under the terms of the
agreement, EG&G pays 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, March 31, 2000
(27.2) Financial Data Schedule, March 31, 1999
(b) Reports on Form 8-K
No reports on Form 8-K were filed by Lunar during the quarter ended
March 31, 2000.
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: May 11, 2000 /s/ Richard B. Mazess
---------------------
Richard B. Mazess
President(Principal
Executive Officer)
Date: May 11, 2000 /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 March 31, 2000
No. Description
- ---- -----------
27.1 Financial Data Schedule, March 31, 2000
27.2 Financial Data Schedule, March 31, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial information
extracted from Form 10-Q for the nine months ended
March 31, 2000, and is qualified in its entirety by
reference to such financial statements.
<MULTIPLIER> 1,000
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> MAR-31-2000
<CASH> 5,767
<SECURITIES> 26,019
<RECEIVABLES> 38,511
<ALLOWANCES> 3,209
<INVENTORY> 12,307
<CURRENT-ASSETS> 63,000
<PP&E> 24,015
<DEPRECIATION> 7,098
<TOTAL-ASSETS> 99,811
<CURRENT-LIABILITIES> 17,503
<BONDS> 0
<COMMON> 86
0
0
<OTHER-SE> 82,222
<TOTAL-LIABILITY-AND-EQUITY> 99,811
<SALES> 68,686
<TOTAL-REVENUES> 68,686
<CGS> 38,795
<TOTAL-COSTS> 62,227
<OTHER-EXPENSES> (800)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 8,781
<INCOME-TAX> 2,635
<INCOME-CONTINUING> 6,146
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,146
<EPS-BASIC> .72
<EPS-DILUTED> .70
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial information
extracted from Form 10-Q for the nine months ended
March 31, 1999, and is qualified in its entirety by
reference to such financial statements.
<MULTIPLIER> 1,000
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> MAR-31-1999
<CASH> 7,735
<SECURITIES> 16,899
<RECEIVABLES> 43,144
<ALLOWANCES> 4,383
<INVENTORY> 14,267
<CURRENT-ASSETS> 61,696
<PP&E> 16,390
<DEPRECIATION> 6,137
<TOTAL-ASSETS> 91,028
<CURRENT-LIABILITIES> 15,788
<BONDS> 0
<COMMON> 86
0
0
<OTHER-SE> 75,153
<TOTAL-LIABILITY-AND-EQUITY> 91,028
<SALES> 65,984
<TOTAL-REVENUES> 65,984
<CGS> 37,255
<TOTAL-COSTS> 65,434
<OTHER-EXPENSES> 209
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,477
<INCOME-TAX> 411
<INCOME-CONTINUING> 1,066
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,066
<EPS-BASIC> .12
<EPS-DILUTED> .12
</TABLE>
