14
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q/A
(AS AMENDED AUGUST 12, 1996)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED
MARCH 31, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 13(D)
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM _____ TO _____
COMMISSION FILE NUMBER 0-4882
SCIENTIFIC SOFTWARE-INTERCOMP, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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COLORADO 84-0581776
- -------------------------------- -------------------
STATE (OR OTHER JURISDICTION OF (IRS EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
</TABLE>
1801 CALIFORNIA STREET, DENVER, COLORADO 80202
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES INCLUDING ZIP CODE)
(303) 292-1111
(REGISTRANT'S TELEPHONE NUMBER INCLUDING AREA CODE)
_____________________________________________________________________
(FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR, IF CHANGED FROM LAST
REPORT).
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 NO X
SHARES OF COMMON STOCK, NO PAR VALUE OUTSTANDING AT MAY 31, 1995: 8,176,518
(THIS FORM 10-Q/A INCLUDES 12 PAGES)
<PAGE>
INDEX
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PAGE
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PART I. FINANCIAL INFORMATION
- ----------------------------------------------
CONSOLIDATED BALANCE SHEETS AT MARCH 31, 1995
AND DECEMBER 31, 1995 3
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE
THREE MONTHS ENDED MARCH 31, 1995 AND 1994 4
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE
THREE MONTHS ENDED MARCH 31, 1995 AND 1994 5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 8
PART II. OTHER INFORMATION 12
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SCIENTIFIC SOFTWARE-INTERCOMP, INC.
CONSOLIDATED BALANCE SHEETSCONSOLIDATED BALANCE SHEETS AT MARCH 31, 1996 AND DECEMBER 31,
1995
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS )
March 31, December 31,
1995 1994
----------- --------------
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 527 $ 588
Accounts receivable, net of allowance for doubtful accounts
of $4,526 and $4,617 4,739 6,145
Work in progress 7,110 4,973
Other current assets 909 1,055
Total current assets 13,285 12,761
----------- --------------
Software, net of accumulated amortization of $26,899 and $25,524 27,729 27,656
----------- --------------
Property and Equipment, net of accumulated depreciation
and amortization of $5,840 and $5,589 1,881 1,917
----------- --------------
Other Assets 2,117 2,210
$ 45,012 $ 44,544
=========== ==============
LIABILITIES, REDEEMABLE PREFERRED STOCK,
AND STOCKHOLDERS' EQUITY
Current Liabilities:
Note payable and current portion of long-term obligations $ 534 $ 286
Notes payable to bank 1,850 1,000
Accounts payable 2,177 2,703
Accrued salaries and fringe benefits 1,332 1,387
Accrued lease obligations 298 570
Deferred maintenance and other revenue 1,799 2,010
Other current liabilities 1,421 1,339
----------- --------------
Total current liabilities 9,411 9,295
----------- --------------
Accrued Lease Obligations 678 720
Long-Term Obligations 330 343
Convertible Debentures 1,750 1,750
----------- --------------
Redeemable Series A Convertible Preferred Stock, $5 par value;
1,200 shares authorized, 800 shares issued and outstanding 4,000 4,000
-----------
Stockholders' Equity:
Common stock, no par value; $.10 stated value; 25,000 shares
authorized; 8,151 and 8,064 shares issued and outstanding 815 806
Paid-in capital 48,425 48,233
Accumulated deficit (19,983) (20,046)
Cumulative foreign currency translation adjustment (414) (557)
----------- --------------
Total stockholders' equity 28,843 28,436
$ 45,012 $ 44,544
=========== ==============
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
<PAGE>
<TABLE>
<CAPTION>
SCIENTIFIC SOFTWARE-INTERCOMP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONSCONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE
MONTHS ENDED MARCH 31, 1995 AND 1994
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months Ended March 31,
1995 1994
-------------- -----------------
<S> <C> <C>
REVENUE
Consulting and training $ 3,895 $ 3,539
Licenses and maintenance 2,795 3,063
Other 164 107
6,854 6,709
-------------- -----------------
COSTS AND EXPENSES
Costs of consulting 2,879 2,459
Costs of licenses and maintenance, including software
amortization of $1,375 and $1,200 1,897 1,555
Contract cost accruals (reversals) --- (4)
Costs of other revenue 64 64
Selling, general and administrative 1,770 1,733
Software research and development 77 178
6,687 5,985
INCOME FROM OPERATIONS 167 724
Other Income (Expense)
Interest income (expense) (50) (147)
Foreign exchange gains (losses) (4) (5)
-------------- -----------------
Income Before Income Taxes 113 572
Provision For Income Taxes 50 115
-------------- -----------------
NET INCOME $ 63 $ 457
============== =================
Weighted Average Number of Common and
Common Equivalent Shares Outstanding 8,606 5,932
Income Per Common and Common
Equivalent Share $ 0.01 $ 0.08
============== =================
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
<PAGE>
<TABLE>
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SCIENTIFIC SOFTWARE-INTERCOMP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWSCONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE
MONTHS ENDED MARCH 31, 1995 AND 1994
(IN THOUSANDS)
Three Months Ended March 31,
1995 1994
-------------- -----------------
<S> <C> <C>
Cash Flows from Operating Activities
Net income $ 63 $ 457
-------------- -----------------
Adjustments:
Depreciation and amortization 1,551 1,404
Contract cost accruals (reversals) --- (4)
Provision for losses on accounts receivable 45 15
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable
and work in progress (776) 555
(Increase) decrease in other assets ` 239 262
Increase (decrease) in accounts payable and
accrued expenses (499) (1,428)
Increase (decrease) in accrued lease obligations (314) (137)
Increase (decrease) in deferred revenue (211) (259)
-------------- -----------------
Total adjustments 35 408
-------------- -----------------
Net cash provided by (utilized in) operating
activities 98 865
-------------- -----------------
Cash Flows From Investing Activities
Capitalized software costs (1,445) (1,248)
Purchases of equipment (143) (239)
Net cash (utilized in) investing activities (1,588) (1,487)
-------------- -----------------
Cash Flows From Financing Activities
Proceeds from sales of common stock 201 1,016
Bank borrowings 850
Proceeds from (repayments of) other obligations 235 (34)
Net cash provided by financing activities 1,286 982
-------------- -----------------
Effect of exchange rates on cash 143 (38)
-------------- -----------------
Net increase (decrease) in cash and cash equivalents (61) 322
Cash and cash equivalents at beginning of period 588 139
-------------- -----------------
Cash and Cash Equivalents at End of Period $ 527 $ 461
============== =================
Supplemental Cash Flow Information
Cash paid during the period for:
Interest, net of amounts capitalized $ 57 $ 149
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
<PAGE>
SCIENTIFIC SOFTWARE-INTERCOMP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTSNOTES TO CONSOLIDATED FINANCIAL
STATEMENTS
NOTE 1 - UNAUDITED INTERIM INFORMATION
This Form 10-Q/A includes the consolidated financial statements of
Scientific Software-Intercomp, Inc., and its wholly-owned subsidiaries. The
consolidated balance sheet as of December 31, 1994 is excerpted from the
audited financial statements for the year then ended. The original Form 10-Q
was filed before the audited financial statements for the audit for the year
ended December 31, 1994 were available. This Form 10-Q/A is filed to include
the audited balance sheet for the year ended December 31, 1994 and conform the
March 31, 1995 consolidated balance sheet and statement of cash flow.
The consolidated financial statements for the interim periods ended March
31, 1995 and 1994, include all normal recurring adjustments which, in the
opinion of the Company, are necessary for a fair statement of the results of
operations, financial position, and cash flows, as of the dates and for the
periods presented. Operating results for the three month period ended March
31, 1995, are not necessarily indicative of the results that may be expected
for the year ending December 31, 1995.
The Notes to Consolidated Financial Statements included in the Company's
1994 Annual Report on Form 10-K should be read in conjunction with these
consolidated financial statements.
NOTE 2 - BANK CREDIT AGREEMENT
Effective September 21, 1994, the Company established a new primary
banking relationship, which includes a loan agreement with the bank that
provides for a revolving credit facility pursuant to which the Company may
utilize up to $6.0 million for: (a) short-term borrowings for working capital
purposes and (b) the issuance of letters of credit for bid guarantees,
performance bonds, and advance payment guarantees.
Borrowings and outstanding letters of credit are collateralized by
substantially all the Company's assets, excluding those of the Company's
Canadian subsidiary. The maximum amount of cash borrowings and letters of
credit that may be outstanding at any time is determined by a borrowing base
formula related to available collateral. The credit facility consists of a
foreign portion under which up to $5.0 million cash borrowings and letters of
credit may be outstanding if sufficient collateral of foreign accounts
receivable is available and a domestic portion under which up to $1.5 million
of cash borrowings and letters of credit may be outstanding if sufficient
collateral of domestic accounts receivable is available.
The foreign portion of the credit facility is supported by a $4.5 million
guarantee by the Export-Import Bank of the United States. The revolving
credit facility is available through July 15, 1995, concurrent with the term
of the current Export-Import Bank guarantee. The Company believes that, as
it has for a number of years, the Export-Import Bank will continue to grant
additional terms of its guarantee. The Company intends to request an increase
to the amount guaranteed to $5 million if necessary for working capital needs.
The Company expects that the Export-Import Bank would agree to such an
increase, if requested.
As of March 31, 1995, the borrowing base, amounts of short-term cash
borrowings and letters of credit outstanding, and credit available under the
revolving credit facility were as follows:
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(In thousands)
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Revolving credit facility limit $ 6,000
===============
Borrowing base (limited by insurance coverage and
amount of qualified receivables) $ 3,408
Amounts outstanding:
Short-term cash borrowings $ 1,850
Letters of credit 669
---------------
$ 2,519
===============
Credit available as of March 31, 1995 $ 889
===============
</TABLE>
Interest rates applicable to short-term cash borrowings under the foreign
portion of the credit facility are equal to the bank's prime rate of interest.
Interest rates applicable to short-term cash borrowings under the domestic
portion of the credit facility are equal to the bank's prime rate of interest
plus 1.5%. At March 31, 1995, interest rates applicable to short-term cash
borrowings were 9.0% and 10.5% for the foreign and domestic portions of the
line of credit, respectively. The Company pays 2% annually for outstanding
letters of credit. The agreement requires that the Company meet certain
requirements regarding operating results and financial condition, and
prohibits the Company from paying dividends without the bank's prior written
consent.
The Company pays to the Export-Import Bank an annual fee of $67,500,
equal to 1.5% of the amount of the guarantee. In addition, the Company is
required to purchase credit insurance for all foreign and certain domestic
receivables at a cost of 0.25% of the amount of the insured receivables.
In January 1995, the Company's United Kingdom subsidiary obtained a bank line
of credit of $300,000 for working capital financing of its projects. This
line of credit is collateralized by a Letter of Credit for $300,000, which was
issued by the Company's primary bank pursuant to the revolving credit facility
described above. Interest related to borrowings on the United Kingdom line of
credit is charged at a rate per annum equal to the bank's prime rate of
interest plus 1.75%. At March 31, 1995, the United Kingdom subsidiary had
$300,000 outstanding under the line of credit.
The Company's Canadian subsidiary has a bank line of credit of approximately
$650,000 for working capital financing of its projects. At March 31, 1995,
the Canadian subsidiary had no outstanding borrowings under this arrangement.
Interest related to borrowings on the Canadian line of credit is charged at a
rate per annum equal to the bank's prime rate of interest plus 1.25%.
NOTE 3 - CONTINGENCIES
Other assets at March 31, 1995 and 1994 includes $470,000 related to a
claim for costs incurred pursuant to a gas pipeline project in India.
Depending on the amount collected on a claim by the primary contractor against
the ultimate customer, the Company could receive up to $1.4 million. An
allowance for doubtful accounts of $470,000 has been recorded as of March 31,
1995.
The Company's long-term services contracts generally include provisions for
penalty charges for delay in the completion of contracts. In the first
quarter of 1995, the Company did not complete a contract on a timely basis
that could result in significant penalties if the Company is determined to be
at fault. Management believes failure to complete the project timely is due
to the customer and that no penalties will be incurred. Certain contracts in
progress at March 31, 1994 have not been subsequently completed by the
scheduled dates. Management believes that the delays were not caused by the
Company and that no significant penalties will be incurred.
NOTE 4 - INCOME TAXES
The Company's income tax expense is primarily due to foreign taxes
withheld at the source on sales in some foreign countries. Because of its
significant net operating loss carryforward, the Company has not provided U.S.
Federal income taxes in any of the periods presented except for certain
amounts for alternative minimum taxes. Consequently, the Company's effective
tax rate varies from the U.S. Federal statutory rate.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
</TABLE>
LIQUIDITY AND CAPITAL RESOURCES
OVERALL FINANCIAL POSITION. At March 31, 1995, the Company's working
capital ratio was 1.4 to 1, based on current assets of $13.2 million and
current liabilities of $9.4 million. The Company's working capital ratio at
December 31, 1994, was also 1.4 to 1. Total stockholders' equity was $28.8
million at March 31, 1995 and $28.4 million at December 31, 1994.
BANK REVOLVING CREDIT FACILITY. Effective September 21, 1994, the
Company established a new primary banking relationship, which includes a loan
agreement with the bank that provides for a revolving credit facility pursuant
to which the Company may utilize up to $6.0 million for: (a) short-term
borrowings for working capital purposes and (b) the issuance of letters of
credit for bid guarantees, performance bonds, and advance payment guarantees.
Borrowings and outstanding letters of credit are collateralized by
substantially all the Company's assets, excluding those of the Company's
Canadian subsidiary. The maximum amount of cash borrowings and letters of
credit that may be outstanding at any time is determined by a borrowing base
formula related to available collateral. The credit facility consists of a
foreign portion under which up to $5.0 million cash borrowings and letters of
credit may be outstanding if sufficient collateral of foreign accounts
receivable is available and a domestic portion under which up to $1.5 million
of cash borrowings and letters of credit may be outstanding if sufficient
collateral of domestic accounts receivable is available.
The foreign portion of the credit facility is supported by a $4.5 million
guarantee by the Export-Import Bank of the United States. The revolving
credit facility is available through July 15, 1995, concurrent with the term
of the current Export-Import Bank guarantee. The Company believes that, as
it has for a number of years, the Export-Import Bank will continue to grant
additional terms of its guarantee. The Company intends to request an increase
to the amount guaranteed to $5 million if necessary for working capital needs.
The Company expects that the Export-Import Bank would agree to such an
increase, if requested.
As of March 31, 1995, the borrowing base, amounts of short-term cash
borrowings and letters of credit outstanding, and credit available under the
revolving credit facility were as follows:
<TABLE>
<CAPTION>
(In thousands)
<S> <C>
Revolving credit facility limit $ 6,000
===============
Borrowing base (limited by insurance coverage and
amount of qualified receivables) $ 3,408
Amounts outstanding:
Short-term cash borrowings $ 1,850
Letters of credit 669
---------------
$ 2,519
===============
Credit available as of March 31, 1995 $ 889
===============
</TABLE>
Interest rates applicable to short-term cash borrowings under the foreign
portion of the credit facility are equal to the bank's prime rate of interest.
Interest rates applicable to short-term cash borrowings under the domestic
portion of the credit facility are equal to the bank's prime rate of interest
plus 1.5%. At March 31, 1995, interest rates applicable to short-term cash
borrowings were 9.0% and 10.5% for the foreign and domestic portions of the
line of credit, respectively. The Company pays 2% annually for outstanding
letters of credit. The agreement requires that the Company meet certain
requirements regarding operating results and financial condition, and
prohibits the Company from paying dividends without the bank's prior written
consent.
The Company pays to the Export-Import Bank an annual fee of $67,500,
equal to 1.5% of the amount of the guarantee. In addition, the Company is
required to purchase credit insurance for all foreign and certain domestic
receivables at a cost of 0.25% of the amount of the insured receivables.
In January 1995, the Company's United Kingdom subsidiary obtained a bank line
of credit of $300,000 for working capital financing of its projects. This
line of credit is collateralized by a Letter of Credit for $300,000, which was
issued by the Company's primary bank pursuant to the revolving credit facility
described above. Interest related to borrowings on the United Kingdom line of
credit is charged at a rate per annum equal to the bank's prime rate of
interest plus 1.75%. At March 31, 1995, the United Kingdom subsidiary had
$300,000 outstanding under the line of credit.
The Company's Canadian subsidiary has a bank line of credit of approximately
$650,000 for working capital financing of its projects. At March 31, 1995,
the Canadian subsidiary had no outstanding borrowings under this arrangement.
Interest related to borrowings on the Canadian line of credit is charged at a
rate per annum equal to the bank's prime rate of interest plus 1.25%.
RESULTS OF OPERATIONS
OVERALL OPERATING RESULTS
Total revenue increased 2% to $6.8 million in the first quarter of 1995 from
$6.7 million in the first quarter of 1994. Revenue from development and
production products and services increased and revenue from both pipeline and
surface facilities and graphical user interface products and services
decreased, as discussed below.
Total consulting revenue increased 11% to $3.9 million in the first quarter of
1995 from $3.5 million in the first quarter of 1994, primarily as a result of
increased activity on large foreign development and production consulting
contracts. Total licenses and maintenance revenue decreased 11% to $2.8
million in the first quarter of 1995 from $3.1 million in the first quarter of
1994 because of decreased revenue in the pipeline and surface facilities and
graphical user interface divisions, which are discussed below. These
decreases were partially offset by an increase in development and production
software license and maintenance revenue, including a 33% increase in revenue
from the Petroleum WorkBench to $800,000 in the first quarter of 1995 from
$600,000 in the first quarter of 1994.
Income from operations decreased to $167,000 in the first quarter of 1995 from
$724,000 in the first quarter of 1994. The decrease resulted from: (a) an
increase of $175,000 in software amortization expense and (b) higher
consulting expenses of $450,000 resulting from a decrease of 3% in overall
margins applicable to consulting contracts worked on in 1995. Income before
income taxes decreased to $113,000 in the first quarter of 1995 from $572,000
in the first quarter of 1994, primarily as a result of the decrease in income
from operations, which was partially offset by a decrease in interest expense
because of reductions in interest bearing debt using proceeds of the Company's
public offering of common stock in June, 1994.
REVENUE
DEVELOPMENT AND PRODUCTION PRODUCTS AND SERVICES. Total revenue from
development and production products and services increased 25% to $4.5 million
in the first quarter of 1995 from $3.6 million in the first quarter of 1994.
Software license and maintenance revenue increased 15% to $1.5 million in the
first quarter of 1995 from $1.3 million in the first quarter of 1994. The
increase was attributable to a 33% increase in revenue from the Petroleum
WorkBench to $800,000 in the first quarter of 1995 from $600,000 in the first
quarter of 1994. Consulting revenue increased 26% to $2.9 million in the
first quarter of 1995 from $2.3 million in the first quarter of 1994. The
increase was attributable to increased activity on large foreign consulting
contracts.
PIPELINE AND SURFACE FACILITIES PRODUCTS AND SERVICES. Total revenue from
pipeline and surface facilities products and services decreased 22% to $1.8
million in the first quarter of 1995 from $2.3 million in the first quarter of
1994. Consulting revenue decreased to $700,000 in the first quarter of 1995
from $900,000 in the first quarter of 1994. The decrease was due to the
timing of work on various contracts. Consulting revenue is expected to
increase in the second quarter. Software license and maintenance revenue
decreased to $1.1 million in the first quarter of 1995 from $1.3 million in
the first quarter of 1994. License revenues include $700,000 from the sale of
software to a U.S. government agency. At the request of the agency, prior to
March 31, 1995, the software was installed and is in use. The Company
anticipates completing the formal contractual documentation shortly, and the
contract will require payment by the end of the government's September 30,
1995 fiscal year.
GUI PRODUCTS AND SERVICES. Total revenue from graphical user interface
("GUI") products and services decreased 25% to $600,000 in the first quarter
of 1995 from $800,000 in the first quarter of 1994. Software license and
maintenance revenue decreased to $200,000 in the first quarter of 1995 from
$400,000 in the first quarter of 1994. Consulting and training revenue
decreased to $300,000 in the first quarter of 1995 from $400,000 in the first
quarter of 1994. The decrease was attributable primarily to internal
reorganization of the Kinesix division's sales force. Also, as a result of
continuing lower demand in the aerospace industry, the sales force had begun
to redirect its focus to other markets and is in the initial phases of these
marketing programs.
COSTS OF CONSULTING AND COSTS OF LICENSES AND MAINTENANCE
Costs of consulting increased to $2.9 million in the first quarter of 1995
from $2.5 million in the first quarter of 1994. The increase was attributable
to the higher consulting revenue discussed above. Costs of consulting
were 74% of consulting and training revenue in the first quarter of 1995 and
71% in the first quarter of 1994.
Costs of licenses and maintenance increased to $1.9 million in the first
quarter of 1995 from $1.6 million in the first quarter of 1994. Costs of
licenses and maintenance were 68% of revenue in the first quarter of 1995 and
46% in the first quarter of 1994. The increased cost percentage in 1995 was
partly attributable to increased software amortization of $1.4 million in the
first quarter of 1995 over $1.2 million in the first quarter of 1994.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
In the first quarters of both 1995 and 1994, selling, general, and
administrative expenses were $1.7 million. The Company is continuing
increased sales and marketing activities for the purpose of further market
penetration of the WorkBench and the Company's other products.
SOFTWARE RESEARCH AND DEVELOPMENT
The Company has continued its commitment to the development and enhancement
of its software products. Following is a summary of costs of development and
enhancement of the Company's software products for the three months ended
March 31, 1995 and 1994, the amounts capitalized in accordance with FASB
Statement No. 86, the amounts charged to research and development expense, the
amounts of capitalized costs amortized, and the total amounts recognized
as expense in the statements of operations.
<TABLE>
<CAPTION>
Total
Software Amount Amount Amount Total
Costs Capitalized Expensed Amortized Expense
--------- ------------ --------------- ---------- --------
<S> <C> <C> <C> <C> <C>
(In thousands)
Quarter Ended March 31,
1995 $ 1,522 $ 1,445 $ 77 $ 1,375 $ 1,452
1994 1,426 1,248 178 1,200 1,378
</TABLE>
FOREIGN EXCHANGE GAINS (LOSSES)
The Company's foreign exchange gains and losses relate principally to the
effects of fluctuations in the exchange rate of the British pound on
transactions of the Company's subsidiary in the United Kingdom that are
denominated in other currencies.
In the first quarters of 1995 and 1994, the Company recognized net
foreign exchange losses of $4,000 and $5,000, respectively, primarily as a
result of strengthening of the British pound in relation to the U.S. dollar.
INTEREST INCOME (EXPENSE)
Following is a summary of the components of interest income (expense) during
the three months ended March 31, 1995 and 1994. The capitalized interest was
included in the cost of capitalized cost of software development projects in
progress in accordance with FASB Statement No. 34.
<TABLE>
<CAPTION>
Interest
Interest Interest Interest Income
Income Incurred Capitalized (Expense)
--------- --------------- ------------ ----------
<S> <C> <C> <C> <C>
Quarter Ended March 31, (In thousands)
1995 $ 7 $ (107) $ 50 $ (50)
1994 2 (242) 93 (147)
</TABLE>
INFLATION
The Company's results of operations have not been affected by inflation
and management does not expect inflation to have a significant effect on its
operations in the future.
PART II. OTHER INFORMATIONPART II. OTHER INFORMATION
NOT APPLICABLE
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SCIENTIFIC SOFTWARE-INTERCOMP, INC.
<TABLE>
<CAPTION>
<S> <C>
AUGUST 12, 1996 /S/ G.STEEL
- --------------- ----------------------------------------------------
DATE G. STEEL, CHAIRMAN OF THE BOARD OF DIRECTORS, CHIEF
EXECUTIVE OFFICER, PRESIDENT AND CHIEF OPERATING
OFFICER (A PRINCIPAL EXECUTIVE OFFICER AND DIRECTOR)
</TABLE>
<TABLE> <S> <C>
[ARTICLE] 5
[MULTIPLIER] 1,000
[PERIOD-TYPE] 3-MOS
<FISCAL YEAR-END> DEC-31-1995
[PERIOD-START] JAN-01-1995
[PERIOD-END] MAR-31-1995
[CASH] 527
[SECURITIES] 0
[RECEIVABLES] 9,265
[ALLOWANCES] 4,526
[INVENTORY] 0
[CURRENT-ASSETS] 909
[PP&E] 7,721
[DEPRECIATION] 5,840
[TOTAL-ASSETS] 45,012
[CURRENT-LIABILITIES] 9,411
[BONDS] 0
[COMMON] 815
[PREFERRED-MANDATORY] 48,425
[PREFERRED] 0
[OTHER-SE] 0
[TOTAL-LIABILITY-AND-EQUITY] 45,012
[SALES] 6,854
[TOTAL-REVENUES] 6,854
[CGS] 0
[TOTAL-COSTS] 6,687
[OTHER-EXPENSES] 0
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] (50)
[INCOME-PRETAX] 113
[INCOME-TAX] 50
[INCOME-CONTINUING] 63
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 63
[EPS-PRIMARY] .01
[EPS-DILUTED] 0
</TABLE>
