U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-QSB/A
(Mark One)
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended JANUARY 31, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from _____________________ to ______________
Commission file number: 1-11032
PROFESSIONAL DENTAL TECHNOLOGIES, INC.
(Exact name of small business issuer as
specified in its charter)
NEVADA 71-0644350
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
633 LAWRENCE STREET, BATESVILLE, ARKANSAS 72501
(Address of Principal Executive Offices)
(870) 698-2300
(Issuer's telephone number)
----------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since
last report)
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
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by court. Yes No .
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of February 27, 1999: 14,100,000
<PAGE>
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<CAPTION>
PROFESSIONAL DENTAL TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEET
JANUARY 31 OCTOBER 31
1999 1998
(UNAUDITED) ----------
-----------
<S> <C> <C>
ASSETS (In thousands)
Current Assets:
Cash and Cash Equivalents $ 1,621 $ 1,735
Certificates of Deposit 99 98
Accounts Receivable:
Trade - net of allowance for doubtful
accounts of $78 2,344 2,444
Affiliates 213 137
Inventory 2,797 3,216
Other Current Assets 547 683
------------ ------------
Total Current Assets 7,621 8,313
Property and Equipment - Net 2,671 2,731
Other Assets - net of accumulated
amortization 131 135
------------ ------------
Total Assets $ 10,423 $ 11,179
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Line of Credit $ 440 $ 865
Accounts Payable - Trade 985 1,045
Other Accrued Liabilities 1,279 1,579
Long-term debt - current portion 461 461
Capital lease obligations - current portion 209 209
------------ ------------
Total Current Liabilities 3,374 4,159
Long-term debt - net of current portion 772 835
Capital lease obligations - net of current portion 321 366
------------ ------------
Total Liabilities 4,467 5,360
------------ ------------
Stockholders' Equity:
Common Stock $0.01 par value: 30,000,000 shares
authorized; 14,100,000 shares issued and outstanding 141 141
Additional Paid-in Capital 316 314
Retained Earnings 5,499 5,364
------------ ------------
Total Stockholders' Equity 5,956 5,819
------------ ------------
Total Liabilities and Stockholders'
Equity $ 10,423 $ 11,179
============ ============
</TABLE>
See Notes to Financial Statements
2
<PAGE>
PROFESSIONAL DENTAL TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
FOR THE THREE MONTH PERIODS ENDED JANUARY 31, 1999 AND 1998
THREE MONTHS ENDED
JANUARY 31
1999 1998
---- ----
(In thousands)
Sales $ 6,496 $ 6,452
Cost of Goods Sold 2,786 2,660
---------- -----------
Gross Profit 3,710 3,792
Operating Expenses 3,434 3,484
---------- ----------
Income
from Operations 276 308
Other Income (Expenses) ( 46) ( 56)
--------- ---------
Income Before
Income Taxes 230 252
Provision for
Income Taxes 95 96
----------- ----------
Net Income $ 135 $ 156
=========== ==========
Net Income per Share:
Basic $ .01 $ .01
=========== ==========
Diluted $ .01 $ .01
=========== ==========
Weighted average
number of shares
outstanding:
Basic 14,148,000 14,121,000
=========== ===========
Diluted 14,148,000 14,121,000
=========== ===========
See Notes to Financial Statements
3
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<CAPTION>
PROFESSIONAL DENTAL TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF CASH FLOW
(UNAUDITED)
FOR THE THREE MONTH PERIODS ENDED JANUARY 31, 1999 AND 1998
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES 1999 1998
---- ----
<S> <C> <C>
Net Income $ 135 $ 156
Adjustments to reconcile net income to
net cash from operations:
Depreciation and amortization 176 166
(Gain) Loss on Disposal of Property & Equipment -- (3)
Non-cash compensation 2 6
Decrease (increase) in:
Accounts Receivable:
Trade - Net 100 ( 203)
Due from Affiliate ( 76) ( 4)
Inventory 420 ( 247)
Other Assets 136 ( 41)
Increase (decrease) in:
Accounts Payable - Trade ( 60) ( 113)
Other Accrued Liabilities ( 301) ( 16)
-------- ---------
Net Cash Provided (Used)
by Operating Activities 532 ( 299)
-------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Property and Equipment ( 111) ( 54)
Certificates of Deposit ( 1) --
Proceeds from Sale of Fixed Assets -- 3
Investment in Joint Ventures -- --
-------- ---------
Net Cash Used by Investing Activities ( 112) ( 51)
-------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in Line of Credit ( 425) 590
Issuance of long-term debt -- --
Payment of Capital Lease Obligations ( 46) ( 43)
Payment of long-term debt ( 63) ( 50)
-------- ---------
Net Cash Provided (Used) by
Financing Activities ( 534) 497
-------- ---------
Increase (Decrease) in Cash ( 114) 147
Cash and Cash Equivalents -
Beginning of Period 1,735 1,267
------------ ----------
End of period $ 1,621 $ 1,414
============ ==========
</TABLE>
See Notes to Financial Statements
4
<PAGE>
PROFESSIONAL DENTAL TECHNOLOGIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTH PERIODS ENDED JANUARY 31, 1999 AND 1998
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF ORGANIZATION - Professional Dental Technologies, Inc. is a group
of companies headquartered in Batesville, Arkansas engaged primarily in the
business of designing, manufacturing and marketing products and services for
dental professionals to be used in the diagnosis, treatment and prevention
of periodontal and other dental diseases.
PRINCIPLES OF CONSOLIDATION - The consolidated financial statements include
the accounts of Professional Dental Technologies, Inc. and its wholly-owned
subsidiaries: PDT Byte, Inc., Pro-Dentec FSC, Inc., Professional Dental
Hygienists, Inc., PDT Image, Inc., Professional Dental Manufacturing, Inc.,
Professional Dental Marketing, Inc., Professional Dental Printing, Inc.,
Professional Dental Probes, Inc., (inactive at January 31, 1999), and
Professional Dental Technologies Therapeutics, Inc. (collectively the
"Company"). All significant intercompany accounts and transactions have been
eliminated in consolidation.
ESTIMATES - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements, and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
CASH AND CASH EQUIVALENTS - For the purpose of presentation in the
consolidated statements of cash flows, the Company considers all cash on
hand and on deposit with depository institutions with maturity at the time
acquired of three months or less to be cash and cash equivalents.
INVENTORY - Inventory is recorded at the lower of cost (determined on a
first-in, first-out basis) or market.
PROPERTY AND EQUIPMENT - Property and equipment is stated at cost less
accumulated depreciation. Depreciation is calculated using accelerated
methods and is expensed based on the estimated useful lives of the assets.
LONG-LIVED ASSETS - The Company adopted Financial Accounting Standards Board
("FASB") Statement of Financial Accounting Standards ("SFAS") No. 121,
ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED ASSETS
TO BE DISPOSED OF in the year ended October 31, 1997. The Company reviews
long-lived assets and certain identifiable intangibles to be held and used
for impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. The adoption of SFAS No.
5
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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
121 had no effect on the Company's consolidated financial statements for the
period ended January 31, 1999.
INVESTMENTS IN AND ADVANCES TO AFFILIATES - The Company uses the equity
method to account for investments in affiliates, primarily joint ventures,
in which the Company has a 20% to 50% interest.
EARNINGS PER SHARE - The Company adopted SFAS No. 128, Earnings per Share,
during the year ended October 31, 1997; accordingly, both Basic and Diluted
EPS were presented for the quarters ended January 31, 1999 and 1998. Basic
and diluted weighted average number of shares outstanding for the quarters
ended January 31, 1999 and 1998 were 14,148,000 and 14,121,000 shares,
respectively. Common stock equivalents have less than a 3% dilutive effect.
REVENUE RECOGNITION - Revenue is recognized at the time that product
ownership transfers to the customer, principally at the time of shipment.
Revenue from computer software maintenance agreements is deferred and
amortized over the term of the related agreements.
ACCRUED WARRANTY COSTS - The Company provides by a current charge to income,
an amount it estimates will be needed to cover future warranty obligations
for products sold during the year.
CONCENTRATION OF CREDIT RISK - Accounts receivable arise from the sale of
dental products to dental professionals located throughout the world but
principally in the United States. The Company extends credit to its
customers in the normal course of business. The Company performs ongoing
credit evaluations of its customers' financial condition and generally
requires no collateral from its customers. The Company's credit losses are
subject to general economic conditions of the dental industry.
INCOME TAXES - Income taxes are provided for the tax effects of transactions
reported in the financial statements and consist of taxes currently due plus
deferred taxes, if any. Deferred taxes represent the net tax effects of
temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for income tax
purposes.
STOCK-BASED COMPENSATION - The Company has adopted SFAS No. 123, ACCOUNTING
FOR STOCK-BASED COMPENSATION during the year ended October 31, 1997. SFAS
No. 123 establishes accounting and reporting standards for companies who
have stock-based compensation plans. Those plans include all arrangements by
which employees and nonemployees receive shares of stock or other equity
instruments of the company. SFAS No. 123 defines a fair value based method
of accounting for a stock option or similar equity instrument. Under the
fair value based method, compensation cost is measured at the grant date
based on the value of the award and is recognized over the service period,
6
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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
which is usually the vesting period. Accounting Principles Board ("APB")
Opinion 25, requires compensation cost for stock-based employee compensation
plans to be recognized based on the difference, if any, between the quoted
market price of the stock and the amount an employee must pay to acquire the
stock. SFAS No. 123 permits an entity in determining its net income to
continue to apply the accounting provisions of APB Opinion 25 to its
stock-based employee compensation arrangements. An entity that continues to
apply APB Opinion 25 must comply with the disclosure requirements of SFAS
123. The Company has elected to continue to apply the accounting provisions
of APB Opinion No. 25 and related interpretations to its employee stock
options.
IMPACT OF NEW ACCOUNTING STANDARDS - In February 1997, the Financial
Accounting Standards Board ("FASB") issued Statement No. 128, EARNINGS PER
SHARE. SFAS No. 128 establishes standards for computing and presenting
earnings per share ("EPS"). The previous presentation of primary EPS is
replaced with a presentation of basic EPS. Dual presentation of basic and
diluted EPS is required on the face of the income statements, as well as a
reconciliation of the numerator and denominator of the basic EPS computation
to the numerator and denominator of the diluted EPS computation. Basic EPS
excludes dilution and is computed by dividing income available to common
stockholders by the weighted-average number of common shares outstanding for
the period. Diluted EPS is computed similarly to fully diluted EPS pursuant
to Accounting Principles Board Opinion No. 15. The Company adopted SFAS No.
128 for the year ended October 31, 1998.
In June 1997, the FASB issued Statement No. 130, REPORTING COMPREHENSIVE
INCOME. SFAS 130 establishes standards for reporting and display of
comprehensive income and its components. SFAS requires that all items that
are required to be recognized under accounting standards as components of
comprehensive income be reported in a financial statement that is displayed
with the same prominence as other financial statements. The Company will be
required to classify items of other comprehensive income by their nature in
a financial statement and display the accumulated balance of other
comprehensive income separately from retained earnings and additional
paid-in capital in the stockholders' equity section of the balance sheet.
Also in June 1997, the FASB issued Statement No. 131, DISCLOSURES ABOUT
SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION, establishing standards
for the way public enterprises report information about operating segments
in interim financial reports issued to shareholders. It also establishes
standards for related disclosures about products and services, geographic
areas, and major customers. SFAS 130 and 131 are effective for fiscal years
beginning after December 15, 1997, with reclassification of earlier periods.
The adoption of SFAS 130 and 131 is not expected to have a material effect
on the Company's consolidated financial statements.
In February 1998, the FASB issued Statement No. 132, EMPLOYERS' DISCLOSURES
ABOUT PENSIONS AND OTHER POSTRETIREMENT BENEFITS, an amendment of FASB
Statements No. 87, 88 and 106. The Statement revises employers' disclosures
about pensions and other postretirement benefits. It does not change the
measurement or recognition of those plans. It standardizes the disclosure
requirements for pensions and other postretirement benefits to the extent
7
<PAGE>
practicable, requires additional information on changes in the benefit
obligations and fair values of plan assets that will facilitate financial
analysis, and eliminates certain disclosures that are no longer as useful as
they were when FASB Statements No. 87, 88, and 106 were issued. The
Statement is effective for fiscal years beginning after December 15, 1997.
The adoption of SFAS 132 is not expected to have a material effect on the
Company's consolidated financial statements.
In June 1998, the FASB issued Statement No. 133, ACCOUNTING FOR DERIVATIVE
INSTRUMENTS AND HEDGING ACTIVITIES. This Statement establishes accounting
and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts (collectively referred to
as derivatives), and for hedging activities. It requires that an entity
recognize all derivatives as either assets or liabilities in the balance
sheet and measure those instruments at fair value. This statement is
effective for fiscal years beginning after June 15, 1999. The adoption of
SFAS No. 133 is not expected to have a material effect on the Company's
consolidated financial statements.
RECLASSIFICATIONS - Certain reclassifications have been made to the 1998
financial statements in order to conform with 1999 financial statement
presentation. These reclassifications had no effect on stockholders' equity
or net income, as previously reported.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE MONTH PERIODS ENDED JANUARY 31, 1999 AND 1998
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included in this
Report and other such Company filings (collectively, "SEC filings") under
the Securities Act of 1933, as amended, and the Securities Exchange Act of
1934, as amended (as well as information communicated orally or in writing
between the dates of such SEC filings) contains or may contain information
that is forward looking. Such forward-looking information involves important
risks and uncertainties that could significantly affect expected results.
The Company cautions investors that any such forward-looking statements made
by the Company are not guarantees of future performance and that actual
results may differ materially from those in the forward-looking statements.
The factors that could cause actual results to differ materially from
estimates contained in the Company's forward-looking statements were
detailed in the Company's 1998 Form 10-KSB filed with the Securities and
Exchange Commission.
RESULTS OF OPERATIONS. For the three month period ended January 31,
1999 and 1998, net sales were $6.5 million. The Company's total sales
revenue in each period has principally been attributable to the Rota-dent.
Sales of the Rota-dent, including accessories and foreign sales, were $4.3
million in each period. Other clinical products, (the ultrasonic scaler and
pharmaceutical product lines) generated revenues of $2.0 million in the
first quarter of 1999 compared to $1.9 million in the first quarter of 1998.
8
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The balance of revenue in the first quarter of both years was attributable
to the sale of printed literature, seminar fees and computer-related
products, which decreased slightly in the 1999 period.
The cost of goods sold for the three months ended January 31, 1999, was
$2.8 million compared to $2.7 million in the first quarter of 1998. This is
primarily attributable to increased material and labor content in the
Rota-dent product, resulting from the decision, made in mid-1998, to ship
four necks with each instrument sold, rather than two, as had previously
been the case. Cost reduction efforts now in process are expected to reduce
the cost per Rota-dent unit to its previous level by year-end. The cost of
goods sold for the pharmaceutical product line also increased in the 1999
quarter as a result of purchasing a product for resale that had previously
been manufactured by the Company. The Company plans to re-commence
manufacturing this product by year-end.
Operating expense was essentially flat at $3.4 million for the first
three months of 1999, compared to $3.5 million in the 1998 period. Other
income and expense, consisting primarily of the profit/loss of the
non-consolidated affiliate (the PerfectByte Limited Partnership) and
interest income/expense, was reduced in the 1999 first quarter, as a result
of lower interest expense in the 1999 period.
As a result of the changes noted above, net income for the three month
period ended January 31, 1999 was $135,000 compared to $156,000 in the 1998
period.
CAPITAL RESOURCES AND LIQUIDITY. On January 31, 1999 the Company's
total assets were $10.4 million, compared to $11.2 million at October 31,
1998. The decrease was primarily attributable to decreases in cash and
inventory. Total liabilities were $4.5 million, compared to $5.4 million at
October 31, 1998. This is primarily due to decreases in the draw on the
credit line used to finance the increases in receivables and inventory and
in trade payables. Stockholders' equity was $6.0 million, an increase of
$0.1 million from the October 31, 1998 total, the result of earnings during
the period. During the three months ended January 31, 1999, net cash
provided by operations was $532,000 compared to a net cash used of $299,000
in the 1998 period. The positive cash from operations in the 1999 period
largely resulted from cash provided by a successful inventory reduction
initiative.
The Company has established reserves for potential warranty claims on
its primary products, and such claims have historically been within
management's expectation.
The Company defines liquidity as the ability to generate adequate
amounts of cash to meet the its needs. The Company has historically relied
on cash provided from operations to meet its working capital needs, and
anticipates this will continue in the near term. However, the Company
currently has a revolving line of credit with NBD Bank under which it can
draw up to $3 million, subject to the availability of collateral. This line
of credit is primarily secured by receivables and inventory, and may be used
to finance the additional working capital requirements of the Company. The
Company also has other sources of credit with which it can finance the
purchase of fixed assets, and anticipates that these or other credit sources
will be utilized for most future fixed asset additions. The Company believes
these sources of credit combined with cash flow from operations will be
sufficient to meet its foreseeable cash requirements.
9
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YEAR 2000. Certain software and hardware systems are time sensitive.
Older time sensitive systems often use a two digit dating convention ("00"
rather than "2000") that could result in system failure and disruption of
operations as the Year 2000 approaches. The Year 2000 problem will impact
the Company, its suppliers, customers, and other third parties that
interface with the Company to the extent that they are not Year 2000
compliant.
With regard to its internal Year 2000 program, the Company has adopted
a five-phase Year 2000 readiness plan; the five phases are awareness,
assessment, renovation, validation, and implementation. In completing the
first two phases, awareness and assessment, the Company has identified
numerous project initiatives throughout its business units and has completed
the third phase, the purchase and installation of new computer equipment and
upgrading of software systems, in most areas. The majority of the validation
and implementation phases are also complete. A steering team comprised of
members from the key functional areas - accounting, finance, legal,
manufacturing systems, and information systems - has been established to
monitor and oversee the progress of each project. The Company believes that
it will complete the Year 2000 readiness plan, including testing and
contingency planning, by mid-calendar year 1999.
The Company has reviewed its internal systems and identified what it
believes to be the worst case scenario associated with those systems. The
inability to produce goods has been defined as the worst case scenario for
the Company's manufacturing units. Based on discussions with suppliers of
its manufacturing equipment, it appears that the Company's ability to
produce goods will not be affected by the Year 2000 issue. However, to
ensure that the Company will be able to continue shipping in the event of a
manufacturing system failure, the manufacturing units determined what levels
of inventory of finished goods and work-in-process should be maintained to
prevent a stock-out; those levels have been achieved. The worst case
scenario for the Company's sales and administrative units would be either
hardware and/or software failure. The accounting, inventory, and MRP
software that the Company uses has been certified Year 2000 compliant by its
manufacturer and distributor. The Company has tested and upgraded or
replaced its computer hardware, as necessary. The sales and administrative
functions of the Company will, in the event of a failure, be accomplished
through a manual system very similar to the one used prior to automation.
While the Company might experience minor disruptions in operations, it does
not believe that its ability to meet customer demands during that period
would be inhibited.
The impact of Year 2000 issues on the Company will depend not only on
corrective actions that the Company takes, but also on the way in which Year
2000 issues are addressed by governmental agencies, business and other third
parties that provide goods, services or data to, or receive goods, services
or data from, the Company, or whose financial condition or operational
capability is important to the Company. To reduce this exposure, the Company
has an ongoing process of identifying and contacting mission-critical third
10
<PAGE>
party vendors and other significant third parties to determine their Year
2000 plans and target dates. A letter addressing specific Year 2000
questions was sent to every vendor the Company has purchased from in the
last 12 months; the Company has received responses to a large portion of the
mailing. Telephone conversations, requesting written documentation
concerning Year 2000 issues, have taken place between the Company and its
mission-critical vendors; the information received from those vendors has
been very positive. Upon completion of this process, the Company may make
adjustments in the stocking levels of raw materials it maintains and
negotiate with additional suppliers, if necessary. Notwithstanding the
Company's efforts, there can be no assurance that the Company,
mission-critical third party vendors, or other significant third parties
will adequately address their Year 2000 issues.
A Year 2000 rollover test of the software developed and distributed by
the Company through its wholly-owned subsidiary, PDT Computers, has been
completed. The software is Year 2000 compliant. The Company is also advising
and working with customers to resolve their Year 2000 problems; however, it
believes it has no material exposure to contingencies related to the Year
2000 issue for the software products it has sold. Other products sold by the
Company have no Year 2000 issues.
The total cost of the modifications and upgrades to date has not been
material. The estimated probable cost to complete the Year 2000 readiness
plan is $0.02 million, and the Company anticipates that it will spend no
more than $0.08 million. The Year 2000 readiness plan has been funded
through normal operations. Internal costs have not been material and no
information technology projects have been deferred or cancelled due to the
Year 2000 efforts. Estimates of Year 2000 related costs are based on
numerous assumptions; there is no certainty that estimates will be achieved,
and actual costs could be materially greater than anticipated.
Although no assurances can be given as to the Company's compliance,
particularly as it relates to third parties, based upon the progress to
date, the Company does not expect that modifications will have a material
adverse effect on the Company's financial position or results of operations.
Accordingly, the Company believes that the most reasonably likely worst case
Year 2000 scenario would not have a material adverse effect on the Company's
financial position or results of operations.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company knows of no material litigation involving the Company or
any officer or director of the Company.
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
11
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ITEM 5. OTHER INFORMATION
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
NONE
12
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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.
PROFESSIONAL DENTAL
TECHNOLOGIES, INC.
---------------------------
(Registrant)
5/17/99 /s/ Frank H. Newton, III
------- ---------------------------
Date Frank H. Newton, III
Chief Operating Officer
5/17/99 /s/ Richard L. Land
------- ----------------------------
Date Richard L. Land
Vice President - Finance
13
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000873753
<NAME> Professional Dental Technologies, Inc.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-START> NOV-01-1998
<PERIOD-END> JAN-31-1999
<CASH> 1,720
<SECURITIES> 0
<RECEIVABLES> 2,617
<ALLOWANCES> 60
<INVENTORY> 2,797
<CURRENT-ASSETS> 7,621
<PP&E> 5,641
<DEPRECIATION> 2,970
<TOTAL-ASSETS> 10,423
<CURRENT-LIABILITIES> 3,374
<BONDS> 0
0
0
<COMMON> 141
<OTHER-SE> 5,815
<TOTAL-LIABILITY-AND-EQUITY> 10,423
<SALES> 6,496
<TOTAL-REVENUES> 6,496
<CGS> 2,786
<TOTAL-COSTS> 3,434
<OTHER-EXPENSES> (9)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 55
<INCOME-PRETAX> 230
<INCOME-TAX> 95
<INCOME-CONTINUING> 135
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 135
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
