<PAGE>
Form 10-QSB Quarterly Reports
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10 - QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998.
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 02 - 24012
ALLIED DEVICES CORPORATION
----------------------------
(Exact name of registrant as specified in its charter)
Nevada
----------------------------
(State or other jurisdiction of incorporation or organization)
13-3087510
----------------------------
(I.R.S. Employer Identification No.)
2365 Milburn Avenue, Baldwin, N.Y. 11510
----------------------------
(Address of principal executive offices - Zip code)
Registrant's telephone number, including area code: 516-223-9100
Check whether the issuer (1) filed all reports required to be filed by
section 13 or 15 (d) of the Exchange Act during the past 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 / /
Common Stock, Par Value $.001 4,629,942
1
<PAGE>
(CLASS) (Shares Outstanding at April 30, 1998)
- ----------------------------------- --------------------------------------
PART I
ALLIED DEVICES CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
2
<PAGE>
Allied Devices Corporation
Consolidated Balance Sheets
<TABLE>
<CAPTION>
March 31, September 30,
1998 1997
----------- ---------
(Unaudited)
<S> <C> <C>
Assets
Current:
Cash........................................... $ 239,377 $ 162,094
Accounts receivable............................ 2,473,482 2,326,179
Inventories.................................... 7,030,607 6,402,688
Prepaid and other.............................. 190,673 67,606
Deferred income taxes.......................... 41,000 41,000
----------- ------------
Total current.............................. 9,975,139 8,999,567
Property, plant and equipment, net................. 2,451,999 1,837,225
Goodwill........................................... 86,761 88,664
Other.............................................. 42,231 51,527
----------- ------------
Total assets............................... $12,556,130 $10,976,983
----------- ------------
----------- ------------
Liabilities and Stockholders' Equity
Current:
Accounts payable................................ $ 1,233,830 $ 1,186,291
Taxes payable................................... 80,349 145,263
Accrued expenses................................ 218,373 241,781
Current portion of long term debt and
capital lease obligations.................... 311,746 118,481
----------- ------------
Total current.............................. 1,844,298 1,691,816
Long term debt and capital lease obligations....... 2,949,660 2,084,239
Deferred taxes..................................... 175,000 175,000
----------- ------------
Total liabilities.......................... 4,968,958 3,951,055
Stockholders' Equity:
Capital stock................................... 4,630 4,610
Paid-in capital................................. 2,585,539 2,565,559
Retained earnings............................... 4,997,003 4,455,759
----------- ------------
</TABLE>
3
<PAGE>
Allied Devices Corporation
Consolidated Balance Sheets
<TABLE>
<S> <C> <C>
Total stockholders' equity................. 7,587,172 7,025,928
----------- ------------
Total liabilities and stockholders'
equity................................... $12,556,130 $10,976,983
----------- ------------
----------- ------------
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
Allied Devices Corporation
Consolidated Statements of Income and Retained Earnings
<TABLE>
<CAPTION>
Quarter Ended Six Months Ended
March 31, March 31,
-------------------------- -----------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Net sales.............................. $4,556,993 $4,105,444 $8,939,762 $7,631,798
Cost of sales.......................... 2,937,385 2,534,732 5,899,160 4,921,082
Gross profit................... 1,619,608 1,570,712 3,040,602 2,710,716
Selling, general
and administrative
expenses............................ 1,136,272 1,079,298 2,107,916 1,961,758
Income from operations................. 483,336 491,414 932,686 748,958
Interest expense (net)................. 47,710 57,984 85,942 104,342
Income before taxes
on income........................... 435,626 433,430 846,744 644,616
Taxes on income........................ 152,500 161,236 305,500 239,797
Net income............................. $ 283,126 $ 272,194 $ 541,244 $ 404,819
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Basic earnings per share............... $ 0.06 $ 0.06 $ 0.12 $ 0.09
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Basic weighted average
number of shares
of common stock
outstanding......................... 4,619,942 4,406,499 4,614,942 4,404,171
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Diluted earnings per share............. $ 0.06 $ 0.05 $ 0.12 $ 0.08
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Diluted weighted average
number of shares
of common stock
outstanding........................ 4,705,715 4,976,976 4,698,742 4,974,648
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
Allied Devices Corporation
and Subsidiaries
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
Six Months Ended March 31,
-----------------------------
1998 1997
----------- ----------
(Unaudited) (Unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net income.............................................. $ 541,244 $ 404,819
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation and amortization........................ 236,289 237,201
Provision for bad debts.............................. -- 247
Gain on equipment sale............................... (2,825) --
Decrease (increase) in:
Accounts receivable ............................... (55,596) (182,516)
Inventories........................................ (234,233) (14,955)
Prepaid expenses and other.........................
current assets..................................... (123,067) (88,974)
Other assets....................................... 2,310 11,146
Increase (decrease) in:
Accounts payable.................................. (33,842) (149,519)
Taxes payable..................................... (64,914) (19,884)
Accrued expenses and other........................
current liabilities............................... (23,408) (139,739)
Net cash provided by (used in)
operating activities............................ 241,958 57,826
Cash flows from investing activities:
Capital expenditures................................... (164,361) (202,941)
Proceeds from sale of equipment........................ 3,000 --
Acquisition of Kay Pneumatic Valves.................... (850,000) --
Net cash used in investing activities............. (1,011,361) (202,941)
Cash flows from financing activities:
Increase (decrease) in bank borrowings................. (75,000) 283,662
Increase in term debt.................................. 1,000,000 --
Payments of principal and accrued
interest on long-term debt and
capital lease obligations........................... (98,314) (58,277)
Proceeds from sale of common stock..................... 20,000 68,731
Net cash provided by (used in) financing
activities...................................... 846,686 294,116
Net increase (decrease) in cash........................... 77,283 149,001
Cash, at beginning of period.............................. 162,094 54,919
Cash, at end of period.................................... $ 239,377 $ 203,920
----------- ----------
----------- ----------
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
Allied Devices Corporation
and Subsidiaries
Notes to Consolidated Financial Statements
(Information for March 31, 1998 and 1997 is Unaudited)
- ------------------------------------------------------------------------------
1. Business Allied Devices Corporation and
subsidiary (the "Company") are engaged
primarily in the manufacture and
distribution of standard precision
mechanical components and a line of
screw machine products throughout the
United States.
2. Summary of (a) Basis of presentation/principles and
Significant consolidation
Accounting Policies
- ------------------------------------------------------------------------------
The accompanying consolidated financial
statements include the accounts of
Allied Devices Corporation and its
wholly-owned subsidiary. All significant
intercompany accounts and transactions
have been eliminated in consolidation.
- ------------------------------------------------------------------------------
The consolidated financial statements
and related notes thereto as of March
31, 1998 and 1997, and for the three and
six months then ended, are unaudited and
have been prepared on a basis consistent
with the Company's annual financial
statements. Such unaudited financial
statements include all adjustments
(consisting of normal recurring
adjustments) that the Company considers
necessary for a fair presentation of
such data. Results for the three and six
month periods ended March 31, 1998 are
not necessarily indicative of the
results that may be expected for the
entire year ending September 30, 1998.
- ------------------------------------------------------------------------------
For further information, refer to the
consolidated financial statements and
footnotes thereto included in the
Company's Annual Report on Form 10-KSB
for the year ended September 30, 1997.
- ------------------------------------------------------------------------------
(b) Inventories
- ------------------------------------------------------------------------------
Inventories are valued at the lower
of cost (last-in, first-out (LIFO)
method) or market. For the three
and six months ended March 31, 1998 and
1997, inventory was determined by
applying a gross profit method, as
opposed to the year ended September 30,
1997, when inventory was determined by a
physical count.
- ------------------------------------------------------------------------------
2. Summary of (c) Depreciation and amortization
Significant
Accounting Policies (continued)
- ------------------------------------------------------------------------------
Property, plant and equipment is stated
at cost. Depreciation and amortization
of property, plant and equipment is
computed using the straight-line method
over the estimated useful lives of the
assets. The estimated useful lives are
as follows:
- ------------------------------------------------------------------------------
Buildings and improvements...................... 30 years
Machinery and equipment......................... 10 years
7
<PAGE>
Allied Devices Corporation
and Subsidiaries
- ------------------------------------------------------------------------------
<TABLE>
<S> <C>
Furniture, fixtures and
office equipment 5 - 7 years
Tools, molds and dies 8 years
Leasehold improvements Lease term
</TABLE>
- -------------------------------------------------------------------------------
(d) Income taxes
- -------------------------------------------------------------------------------
The Company and its subsidiary file a
consolidated federal income tax return
and separate state income tax returns.
The Company follows the liability method
of accounting for income taxes.
- -------------------------------------------------------------------------------
(e) Earnings per share
- -------------------------------------------------------------------------------
In 1997, the Financial Accounting
Standards Board issued Statement of
Financial Accounting Standards No. 128
Earnings per Share. Statement 128
replaced the previously reported primary
and fully diluted earnings per share
with basic and diluted earnings per
share. Unlike primary earnings per
share, basic earnings per share excludes
any dilutive effects of options,
warrants and convertible securities.
Diluted earnings per share is very
similar to the previously reported fully
diluted earnings per share. All earnings
per share amounts for all periods have
been presented, and where necessary,
restated to conform to the Statement 128
requirements.
- -------------------------------------------------------------------------------
2.Summary of (f) Intangible assets
Significant
Accounting
Policies
(continued)
- -------------------------------------------------------------------------------
The excess of cost over fair value of
net assets acquired is being amortized
over a period of 20 years.
- -------------------------------------------------------------------------------
(g) Revenue recognition
- -------------------------------------------------------------------------------
Sales are recognized upon shipment of
products.
- -------------------------------------------------------------------------------
(h) Statement of cash flows
- -------------------------------------------------------------------------------
For purposes of the statements of cash
flows, the Company considers all highly
liquid debt instruments purchased with a
maturity of three months or less to be
cash equivalents.
- -------------------------------------------------------------------------------
3.Inventories Inventories are summarized as follows:
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, September 30,
1998 1997
--------- -------------
<S> <C> <C>
Raw materials $ 359,785 $ 310,260
Work-in-process 544,487 514,437
Finished goods 7,461,756 6,888,412
8,366,028 7,713,109
Less: adjustment to LIFO (1,335,421) (1,310,421)
----------- -----------
----------- -----------
$ 7,030,607 $ 6,402,688
</TABLE>
8
<PAGE>
Allied Devices Corporation
and Subsidiaries
Results of Operations: Six months ended March 31, 1998
compared with six months ended march 31, 1997
- ------------------------------------------------------------------------------
Item 2 - Results of Operations: Six months ended
March 31, 1998 compared with six months
ended March 31, 1997:
- ------------------------------------------------------------------------------
All statements contained herein that
are not historical facts, including,
but not limited to, statements
regarding the Company's current
business strategy, the Company's
projected sources and uses of cash,
and the Company's plans for future
development and operations, are based
upon current expectations. These
statements are forward-looking in
nature and involve a number of risks
and uncertainties. Actual results may
differ materially. Among the factors
that could cause actual results to
differ materially are the following:
the availability of sufficient
capital to finance the Company's
business plans on terms satisfactory
to the Company; competitive factors;
changes in labor, equipment and
capital costs; changes in regulations
affecting the Company's business;
future acquisitions or strategic
partnerships; general business and
economic conditions; and factors
described from time to time in the
Company's reports filed with the
Securities and Exchange Commission.
The Company wishes to caution readers
not to place undue reliance on any
such forward-looking statements,
which statements are made pursuant to
the Private Litigation Reform Act of
1995 and, as a result, are pertinent
only as of the date made.
- ------------------------------------------------------------------------------
Net sales for the quarter and six
months ended March 31, 1998 were
$4,557,000 and $8,940,000,
respectively, as compared to
$4,105,000 and $7,632,000 in the
comparable periods of the prior year,
increases of approximately 11.0% and
17.1%. Management attributes these
increases principally to the
following factors:
- ------------------------------------------------------------------------------
- During the first three quarters of
fiscal 1997, there was a sharp
slowdown in the semiconductor
equipment sector of the U.S. economy.
Sales to this industry in fiscal 1996
were estimated at 20% of the
Company's volume, dropping to
approximately 3% of overall shipments
in fiscal 1997. Solid recovery was
evident in the Company's shipments in
the fourth quarter of fiscal year
1997, continuing into the first six
months of fiscal 1998. The Company
has continued to experience growth in
sales to other industries, most
notably aerospace instrumentation,
medical equipment, robotic and
scientific instrumentation.
- ------------------------------------------------------------------------------
- The Company's on-going advertising
campaign in certain trade magazines
remains focused on the advantage of
having Allied Devices as a source,
and it appears to be expanding
awareness of the Company's products
and services in the markets it serves.
- ------------------------------------------------------------------------------
In January, 1998, the Company
acquired Kay Pneumatic Valves, Inc.
- ------------------------------------------------------------------------------
9
<PAGE>
Allied Devices Corporation
and Subsidiaries
Results of Operations: Six months ended March 31, 1998
compared with six months ended march 31, 1997
- ------------------------------------------------------------------------------
("Kay"), a small manufacturer of
directional control valves. This
business was relocated and integrated
into the Company's Astro Instrument
division, with modest impact on Kay's
shipping rates during the transition
in ownership. Sales for this
operation during the quarter amounted
to approximately $179,000.
- ------------------------------------------------------------------------------
The Company continues to add new
customers at a healthy and steady rate.
Customer retention appears to be
excellent, which management attributes
to its innovative and market oriented
approaches to customer service.
- ------------------------------------------------------------------------------
Reported gross margins for the second
quarter and six months of fiscal 1998
were 35.54% and 34.01%, respectively,
as compared to 38.26% and 35.52% for
the comparable periods in the prior
year. Materials expense (as a
component of cost of goods sold)
increased to approximately 33.6% of
net sales during the first six months
of fiscal 1998, from approximately
32.0% in the first six months of
fiscal 1997. While increased shipping
volume and the acquisition of Kay
prompted higher levels of spending on
factory payroll and overhead during
the quarter and six months, such
spending decreased slightly as a
percentage of net sales, from 32.5%
in fiscal 1997 to 32.4% in fiscal
1998. Prices of the Company's catalog
products were increased modestly
during the first quarter of fiscal
1998, the net effect of which is
estimated to have increased revenues
and profits for the six months by
$48,000. LIFO reserves were increased
by $25,000 during the second quarter.
- ------------------------------------------------------------------------------
Selling, general and administrative
expenses as a percentage of net sales
were 24.93% and 23.58%, respectively, in
the second quarter and six months of
fiscal 1998, as compared to 26.29% and
25.71% in the comparable periods of
fiscal 1997. Actual expenditures during
the quarter and six months of fiscal
1998 increased when compared to fiscal
1997, yet expressed as a percentage of
sales they decreased. The increase in
actual expenses was a product of higher
spending on sales and marketing and
costs attendant to the acquisition of
Kay.
- ------------------------------------------------------------------------------
Interest expense during the second
quarter and six months of fiscal 1998
was $48,000 and $86,000, respectively,
approximately 18% lower than in the
comparable periods of fiscal 1997. This
is primarily the result of lower average
levels of indebtedness.
- ------------------------------------------------------------------------------
Provision for income taxes is estimated
at 36.1% of pre-tax income for the
fiscal 1998 period, as a combination of
federal and state taxes.
- ------------------------------------------------------------------------------
Liquidity and Financial Resources
- ------------------------------------------------------------------------------
During the first six months of fiscal
1998, the Company's financial condition
remained solid. Operations generated
cash of $242,000, and
- ------------------------------------------------------------------------------
10
<PAGE>
Allied Devices Corporation
and Subsidiaries
Results of Operations: Six months ended March 31, 1998
compared with six months ended march 31, 1997
- ------------------------------------------------------------------------------
financing activities generated cash of
$846,000. Capital expenditures used
$161,000 (net), the acquisition of Kay
used $850,000, and cash on hand
increased by $77,000. Working capital
increased by $823,000 to $8,131,000
during the six months, principally as a
result of the following changes in
current assets and current liabilities:
- ------------------------------------------------------------------------------
- Accounts receivable increased by
$147,000, principally as the result of
two factors: (1) the average collection
period was about 48 days, as it was at
the end of fiscal 1997, but increased
volume of shipments raised receivables
$56,000; and (2) the acquisition of Kay
added $91,000 to receivables.
- ------------------------------------------------------------------------------
- Inventories increased by $628,000
during the six month period. Of this
amount, $394,000 was acquired with Kay.
The remaining $234,000 represents a 3.7%
increase in inventory of catalog
products on an 11% increase in shipping
volume. Turns on inventory were 1.8
times during the six months, as compared
to 1.6 times during fiscal 1997. This
change in turnover rate is attributable
to increased shipping volume during the
quarter.
- ------------------------------------------------------------------------------
- Prepaid and other current assets
increased by $123,000 as the Company
recorded (and accrued for) certain
annual administrative expenses.
- ------------------------------------------------------------------------------
- Current liabilities, exclusive of
current portions of long-term debt and
capital lease obligations, decreased
$41,000 as accounts payable and accrued
expenses increased $24,000 and taxes
payable decreased $65,000.
- ------------------------------------------------------------------------------
- Current portions of long-term debt and
capital lease obligations increased by
$193,000.
- ------------------------------------------------------------------------------
- Cash balances increased by $77,000.
- ------------------------------------------------------------------------------
Net capital expenditures in the six
month period were $161,000 ($393,000
including capital lease acquisitions) as
management continued to add to capacity
and modernize and automate its
manufacturing processes. The Company is
in the process of installing a computer
and information management system, which
will involve the expenditure of
approximately $100,000 in fiscal 1998
and is scheduled for completion in the
third quarter of this fiscal year.
Management's capital spending plans for
the remaining two quarters of fiscal
1998 include additional expenditures of
approximately $100,000 for productive
equipment. Management expects to fund
such spending plans out of working
capital.
- ------------------------------------------------------------------------------
During the second quarter, the Company
acquired Kay Pneumatic Valves, Inc. for
$850,000 in cash. Additional
expenditures attendant to this
acquisition amounted to approximately
$110,000, including legal
- ------------------------------------------------------------------------------
11
<PAGE>
Allied Devices Corporation
and Subsidiaries
Results of Operations: Six months ended March 31, 1998
compared with six months ended march 31, 1997
- ------------------------------------------------------------------------------
fees, moving expenses, space
preparation, additions to tooling and
inventories, training costs, and
certain marketing expenses. The
acquisition price was funded through
new term debt of $1,000,000, provided
by the Company's bank and secured by
the fixed assets of the Company.
- ------------------------------------------------------------------------------
One week after the end of the second
quarter, a fire destroyed the
Company's central data processing
equipment and caused extensive heat,
smoke and water damage throughout the
administrative offices at the
Company's headquarters in Baldwin,
NY. During the succeeding three
weeks, the Company set up temporary
quarters nearby and replaced its
computer system with only partial
loss of data. While manufacturing
operations were barely impacted at
all, order processing and shipping
were heavily disrupted for a few
days. Responsiveness to customer
requirements has been slow while data
recovery has been carried out. The
net effect has been the deferral or
loss of an estimated $300,000 in
shipments. The Company expects to
recover the financial impact of this
disruption from it's business
interruption insurance. Management
further expects demolition and
restoration of the affected space to
take 6 weeks to complete, involving
the expenditure of approximately
$325,000. While the Company expects
insurance proceeds to reimburse most
(if not all) of these expenditures,
the extent of such reimbursement
remains to be determined.
- ------------------------------------------------------------------------------
Management believes that the
Company's working capital as now
constituted will be adequate for the
needs of the on-going core business.
Management further believes that, in
light of the Company's expansion
objectives, the Company's current
financial resources will not be
adequate to provide for all of the
on-going cash needs of the business.
In particular, management expects to
require additional financing to carry
out its acquisition objectives. It is
management's intention to complete at
least one additional acquisition
during fiscal 1998. Success in this
part of the Company's growth plan
will rely, in large measure, upon
success in raising additional debt
and/or equity capital. Management
believes that it has several sources
for such capital and expects that the
combination of capital raised and
acquisitions completed will produce
anti-dilutive results for the
Company's existing stockholders.
While this is management's intention,
there is no guarantee that they will
be able to achieve this objective.
The Company is not relying on the
receipt of any new capital for its
existing operations. It is important
to note that, absent new capital, the
Company will not be in a position to
undertake some of the most promising
elements of management's plans for
expansion. In the
- ------------------------------------------------------------------------------
12
<PAGE>
Allied Devices Corporation
and Subsidiaries
Results of Operations: Six months ended March 31, 1998
compared with six months ended march 31, 1997
- ------------------------------------------------------------------------------
event that new capital is raised,
management intends to implement its
plans and will do so in keeping with its
judgment at that time as to how best to
deploy such added capital.
- ------------------------------------------------------------------------------
13
<PAGE>
Allied Devices Corporation
and Subsidiaries
Other Information Six months ended March 31, 1998
- ------------------------------------------------------------------------------
PART II. OTHER INFORMATION
- ------------------------------------------------------------------------------
Item 3 - Submission of Matters to a Vote of
Security Holders
- ------------------------------------------------------------------------------
On March 31, 1998, the Company held its
1998 Annual Meeting of Stockholders. At
the Annual Meeting, the following
matters were submitted to a vote of
stockholders.
- ------------------------------------------------------------------------------
1. The following five individuals,
constituting the full Board of
Directors of the Company, were
nominated and elected to serve
as directors of the Company.
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
Mark Hopkinson...................... FOR: 2,783,873
WITHHOLD
AUTHORITY: 11,040
P.K. Bartow......................... FOR: 2,783,873
WITHHOLD
AUTHORITY: 11,040
Salvator Baldi...................... FOR: 2,783,873
WITHHOLD
AUTHORITY: 11,040
Christopher T. Linen................ FOR: 2,783,873
WITHHOLD
AUTHORITY: 11,040
Michael Michaelson.................. FOR: 2,783,873
WITHHOLD
AUTHORITY: 11,040
</TABLE>
- ------------------------------------------------------------------------------
2. The holders of 2,788,163 shares of
common stock voted in favor, the holders
of 6,450 shares of common stock voted
against, and the holders of 300 shares
of common stock abstained with respect
to the ratification of the selection of
BDO Seidman, LLP, independent certified
public accountants, to serve as
independent accountants of the Company
for the fiscal year ending September 30,
1998.
- ------------------------------------------------------------------------------
PART II. OTHER INFORMATION (Continued)
- ------------------------------------------------------------------------------
3. The holders of 2,457,763 shares voted in
favor of, the holders of
- ------------------------------------------------------------------------------
14
<PAGE>
Allied Devices Corporation
and Subsidiaries
Other Information Six months ended March 31, 1998
- ------------------------------------------------------------------------------
319,700 shares voted against and the
holders of 300 shares abstained with
respect to the adoption of the
following:
That the Company's 1993 Stock Option
Plan be, and it hereby is, amended to
increase from 1,250,000 to 1,500,000 the
number of shares of Common Stock
available for options under the Plan by
deleting the first sentence of Section 3
and substituting in place thereof the
following sentence: "There shall be
available for options under the Plan a
total of 1,500,000 shares of Stock,
subject to any adjustments which may be
made pursuant to Section 5(f) thereof."
- ------------------------------------------------------------------------------
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.
Date: May 11, 1998 ALLIED DEVICES CORPORATION
- ------------------ --------------------------
(Registrant)
By:_______________________
M. Hopkinson
Chairman
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MARCH 1998
10-Q.
</LEGEND>
<CIK> 0000869495
<NAME> ALLIED DEVICES CORP.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 239,377
<SECURITIES> 0
<RECEIVABLES> 2,518,457
<ALLOWANCES> 44,975
<INVENTORY> 7,030,607
<CURRENT-ASSETS> 9,975,139
<PP&E> 7,762,947
<DEPRECIATION> 5,310,948
<TOTAL-ASSETS> 12,556,130
<CURRENT-LIABILITIES> 1,844,298
<BONDS> 0
0
0
<COMMON> 4,630
<OTHER-SE> 7,582,542
<TOTAL-LIABILITY-AND-EQUITY> 12,556,130
<SALES> 4,556,993
<TOTAL-REVENUES> 4,556,993
<CGS> 2,937,385
<TOTAL-COSTS> 2,937,385
<OTHER-EXPENSES> 1,136,272
<LOSS-PROVISION> 44,975
<INTEREST-EXPENSE> 47,710
<INCOME-PRETAX> 435,626
<INCOME-TAX> 152,500
<INCOME-CONTINUING> 283,126
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 283,126
<EPS-PRIMARY> .06
<EPS-DILUTED> .06
</TABLE>
