<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(X) Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the quarterly period ended June 30, 1997
or
( ) Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934.
0-21818
--------------------
(Commission File No.)
DAW TECHNOLOGIES, INC.
----------------------------------------------------------
(Exact name of registrant as specified in its charter)
UTAH 87-0464280
- -------------------------------- ------------------
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
2700 SOUTH 900 WEST
SALT LAKE CITY, UTAH 84119
-----------------------------------------------------------------
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (801) 977-3100
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 August 11, 1997, the Registrant had 12,419,586 shares of Common
Stock, $0.01 par value outstanding.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<PAGE>
Daw Technologies, Inc.
TABLE OF CONTENTS
PART I FINANCIAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . 1
Item 1. Financial Statements
Condensed Balance Sheets - June 30, 1997 and December 31,
1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Condensed Statements of Earnings - Three months and six
months ended June 30, 1997 and 1996. . . . . . . . . . . . . . . . 2
Condensed Statements of Cash Flows - Six months ended June
30, 1997 and 1996 . . . . . . . . . . . . . . . . . . . . . . . . 3
Notes to Condensed Financial Statements. . . . . . . . . . . . . . 5
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations. . . . . . . . . . . . . . . . . . . . . 6
PART II OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . . 11
Item 4. Submission of Matters to a Vote of Security Holders. . . . . . . . 11
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . 11
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Daw Technologies, Inc.
CONDENSED BALANCE SHEETS
(Unaudited)
(in thousands, except share data)
<TABLE>
<CAPTION>
June 30, Dec. 31,
1997 1996
--------- ---------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,671 $ 3,258
Contracts receivable, net 22,318 27,394
Costs and estimated earnings in excess of billings
on contracts in progress 4,473 7,169
Inventories - raw materials 1,286 1,583
Deferred income tax asset 216 318
Other current assets 1,781 1,996
--------- ---------
Total current assets 32,745 41,718
PROPERTY AND EQUIPMENT, NET
AT COST 7,110 7,693
OTHER ASSETS 324 84
--------- ---------
$40,179 $49,495
--------- ---------
--------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 8,336 $10,782
Billings in excess of costs and estimated
earnings on contracts in progress 5,700 7,505
Lines of credit 695 5,696
Current portion of long-term obligations 623 623
--------- ---------
Total current liabilities 15,354 24,606
LONG-TERM OBLIGATIONS, less current portion 1,424 1,730
DEFERRED INCOME TAX LIABILITY 218 221
COMMITMENTS AND CONTINGENCIES - -
SHAREHOLDERS' EQUITY
Preferred stock, authorized 10,000,000 shares of
$.01 par value; none issued and outstanding - -
Common stock, authorized 50,000,000 shares of $.01 par
value; issued and outstanding 12,419,586 shares at
June 30, 1997 and 12,400,543 at December 31, 1996 124 124
Additional paid-in-capital 15,236 15,188
Retained earnings 7,823 7,626
--------- ---------
Total shareholders' equity 23,183 22,938
--------- ---------
$40,179 $49,495
--------- ---------
--------- ---------
</TABLE>
See accompanying notes to condensed financial statements.
1
<PAGE>
Daw Technologies, Inc.
CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
(in thousands, except share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
1997 1996 1997 1996
------- ------- ------- -------
<S> <C> <C> <C> <C>
Contract revenue $16,463 $27,049 $33,258 $50,432
Cost of contracts 14,065 24,112 28,277 44,415
------- ------- ------- -------
Gross profit 2,398 2,937 4,981 6,017
------- ------- ------- -------
Operating expenses
Selling, general and administrative 2,118 2,227 4,193 4,193
Research and development 75 44 149 76
Depreciation and amortization 108 91 214 187
------- ------- ------- -------
2,301 2,362 4,556 4,456
------- ------- ------- -------
Earnings from operations 97 575 425 1,561
Other income (expense)
Interest expense (98) (181) (211) (303)
Other income, net 25 678 100 809
------- ------- ------- -------
(73) 497 (111) 506
------- ------- ------- -------
Earnings before income taxes 24 1,072 314 2,067
Income taxes ( 9) (418) (117) (796)
------- ------- ------- -------
NET EARNINGS $ 15 $ 654 $ 197 $ 1,271
------- ------- ------- -------
------- ------- ------- -------
Earnings per share $ 0.00 $ 0.05 $ 0.02 $ 0.10
Weighted average common
shares outstanding 12,411,968 12,337,870 12,404,348 12,334,104
</TABLE>
See accompanying notes to condensed financial statements.
2
<PAGE>
Daw Technologies, Inc.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands, except share data)
<TABLE>
<CAPTION>
Six months ended
June 30,
---------------------------
1997 1996
------- -------
<S> <C> <C>
Increase (decrease) in cash and cash equivalents
Cash flows from operating activities
Net earnings $ 197 $ 1,271
Adjustments to reconcile net earnings
to net cash provided by (used in) operating
activities
Depreciation and amortization 856 779
Provision for losses on contracts receivable 84 83
Deferred taxes 99 -
Changes in assets and liabilities
Contracts receivable 4,992 (9,032)
Costs and estimated earnings in excess
of billings on contracts in progress 2,696 (10)
Inventories 297 (1,540)
Other current assets 215 119
Accounts payable and accrued liabilities (2,097) 2,014
Income taxes payable (349) 519
Billings in excess of costs and estimated
earnings on contracts in progress (1,805) 751
Other assets (240) (23)
------- -------
Net cash provided by (used in)
operating activities 4,945 (5,069)
------- -------
Cash flows from investing activities
Payments for purchase of property
and equipment (273) (1,865)
------- -------
</TABLE>
(continued)
See accompanying notes to condensed financial statements.
3
<PAGE>
Daw Technologies, Inc.
CONDENSED STATEMENTS OF CASH FLOWS - CONTINUED
(Unaudited)
(in thousands, except share data)
<TABLE>
<CAPTION>
Six months ended
June 30,
---------------------------
1997 1996
------ -----
<S> <C> <C>
Cash flows from financing activities
Net change in lines of credit (5,001) 4,535
Payments of long-term debt - (46)
Proceeds from exercise of warrants and options 48 44
Payments of obligations under
capital leases (306) (308)
------ -----
Net cash provided by (used in)
financing activities (5,259) 4,225
------ -----
Net decrease in cash and cash equivalents (587) (2,709)
Cash and cash equivalents at beginning of period 3,258 5,885
------ -----
Cash and cash equivalents at end of period $2,671 $3,176
------ ------
------ ------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
CASH PAID DURING THE PERIOD FOR
Interest $ 211 $ 303
Income taxes 368 200
</TABLE>
See accompanying notes to condensed financial statements.
4
<PAGE>
Daw Technologies, Inc.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(in thousands, except share data)
1. INTERIM CONDENSED FINANCIAL STATEMENTS
The accompanying unaudited condensed financial statements have been
prepared by Daw Technologies, Inc. (the "Company" or "Daw") in accordance
with generally accepted accounting principles for interim financial reporting
and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, certain information and footnote disclosures normally included
in financial statements prepared under generally accepted accounting
principles have been condensed or omitted pursuant to such regulations. In
the opinion of management, all adjustments considered necessary for a fair
presentation of the Company's financial position, results of operations and
cash flows have been included. All such adjustments are of a normal
recurring nature. This report on Form 10-Q for the three months and six
months ended June 30, 1997 and 1996 should be read in conjunction with the
Company's annual report on Form 10-K for the calendar year ended December 31,
1996. The results of operations for the three months and six months ended
June 30, 1997 may not be indicative of the results that may be expected for
the year ending December 31, 1997.
2. EARNINGS PER SHARE
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standard (SFAS) No. 128, "Earnings per
Share". The statement is effective for financial statements for periods
ending after December 15, 1997, and changes the method in which earnings per
share will be determined. Adoption of this statement by the Company has not
had a material impact on earnings per share. Options and warrants to
purchase 743,100 shares of common stock at $2.50 to $3.50 a share were
outstanding during the period. They were not included in the computation of
earnings per share because the option's exercise prices were greater than the
average market price of the common shares.
3. RECLASSIFICATIONS
Certain reclassifications have been made to the financial statments for the
three months and six months ended June 30, 1996, to conform to the 1997
presentation.
4. LINES OF CREDIT
At June 30, 1997, the Company had lines of credit totaling $11.5
million, of which $10.8 million was available at the end of the quarter.
Amounts drawn under the lines bear interest at a commercial loan variable
rate index (8.50% at June 30, 1997) and are due no later than June 30, 1998,
with options to renew on an annual basis. The lines are secured by contracts
receivable and inventories. The Company had borrowings under the lines of
$695 and $5,696 as of June 30, 1997, and December 31, 1996, respectively.
The lines of credit agreements contain restrictive covenants imposing
limitations on payments on cash dividends, purchases or redemptions of
capital stock, indebtedness and other matters. As of June 30, 1997 the
Company is in compliance with these covenants.
5
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
General
The following discussion should be read in conjunction with the financial
statements and notes thereto included elsewhere herein. All data in the tables
are in thousands, except for percentages and per-share data.
The Company is an integrated systems solution provider of cleanrooms and
cleanroom component systems for the semiconductor industry. In recent years,
the Company has typically had one to five significant customers, each of which
accounted for more than 10% of the Company's annual revenues; these customers do
not necessarily remain significant in subsequent years. The semiconductor
industry has been historically cyclical in nature. The semiconductor industry
continues to be adversely affected by a cyclical downturn that began in 1996.
Analysts believe the downturn is expected to be shorter than past downturns
because of the continued robust forecast for personal computers through the end
of the decade.
The current industry downturn has resulted in lower capital spending by
the semiconductor manufacturers during the third and fourth quarters of 1996
and the first and second quarters of 1997. Management believes the downturn
will continue through the third and possibly the fourth quarters of 1997.
However, the length and severity of the economic downturn is still subject to
significant uncertainty. The downturn has resulted in fewer contracts
available to bid, a significant increase in price competition on contracts
that were awarded, and reduced margins on such contracts. During the second
quarter of 1997, the Company experienced fewer new contract awards resulting
in a decrease in the Company's backlog from $78.0 million at June 30, 1996 to
$14.2 million at June 30, 1997. Although the Company has experienced an
increase in the contract bidding activity during the first six months of 1997
compared to the last six months of 1996, management believes that the
above-described events adversely affected its revenues and profitability in
the second quarter of 1997 and anticipates the industry downturn will
continue to adversely affect its revenues and profitability through the third
and possibly the fourth quarters of 1997.
Although there is uncertainty surrounding the length and severity of
this current downturn in the semiconductor industry, management continues to
believe that changes taking place in the industry should result in expanded
capital expenditures in the long-term. In response to the current downturn,
management has taken steps to reduce the Company's cost structure including a
reduction in the Company's work force of more than thirty percent during the
first two quarters of 1997. During the remainder of the downturn, management
will monitor the Company's cost structure and take appropriate actions as
considered necessary, but continue to develop state of the art cleanroom
technology and provide world-class support to the Company's customers.
The Company's contract revenue and operating results fluctuate
substantially from quarter to quarter depending on such factors as the timing
of significant customer orders, the timing of revenue and cost recognition,
variations in contract mix, changes in customer buying patterns, fluctuations in
the semiconductor equipment market, utilization
6
<PAGE>
of capacity, manufacturing productivity and efficiency, availability of key
components and trends in the economies of the geographical regions in which
the Company operates.
The Company uses the percentage-of-completion method of accounting for
its contracts. The Company recognizes revenue in proportion to the costs
incurred to date in relation to the total anticipated costs. Revenue
recognized may not be the same as progress billings to the customer.
Underbillings are reflected in an asset account (costs and estimated earnings
in excess of billings on contracts in progress), and overbillings are
reflected in a liability account (billings in excess of costs and estimated
earnings on contracts in progress).
The Company generates revenue in three geographic regions; North
America, Asia/Pacific Rim and Europe. Contracts in the Asia/Pacific Rim
region are generally denominated in United States dollars. Although risk of
fluctuations in currency value does not affect such dollar-denominated
contracts, changes in the relative value of the dollar could make the Company
less competitive in this region. Contracts to be performed in Europe may be
denominated in local currency, and the Company bears the risk of changes in
the relative value of the dollar and the local currencies. The Company has
in the past and may in the future attempt to hedge against currency
fluctuations on contracts denominated in local currencies. There can be no
assurance, however, that such hedging will fully insulate the Company from
fluctuations or will not expose the Company to additional risks of loss.
The Company's business and operations have not been materially affected by
inflation during the periods for which financial information is presented.
7
<PAGE>
RESULTS OF OPERATIONS (in thousands, except share data)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS FOR THE SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
---------------------- ----------------------
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
STATEMENT OF OPERATIONS DATA:
Contract revenue . . . . . . . . . . . $ 16,463 $ 27,049 $ 33,258 $ 50,432
Cost of contracts . . . . . . . . . . 14,065 24,112 28,277 44,415
-------- -------- -------- --------
Gross profit . . . . . . . . . . . . . 2,398 2,937 4,981 6,017
-------- -------- -------- --------
Selling, general and
administrative expenses . . . . . 2,118 2,227 4,193 4,193
Research and development . . . . . . . 75 44 149 76
Depreciation and
amortization . . . . . . . . . . . 108 91 214 187
-------- -------- -------- --------
2,301 2,362 4,556 4,456
-------- -------- -------- --------
Earnings from operations . . . . . . . 97 575 425 1,561
Other income, net . . . . . . . . . . (73) 497 (111) 506
-------- -------- -------- --------
Earnings before income taxes . . . . . 24 1,072 314 2,067
Income taxes . . . . . . . . . . . . . (9) (418) (117) (796)
-------- -------- -------- --------
Net earnings . . . . . . . . . . . . . $ 15 $ 654 $ 197 $ 1,271
-------- -------- -------- --------
-------- -------- -------- --------
Earnings per share . . . . . . . . . . $ 0.00 $ 0.05 $ 0.02 $ 0.10
</TABLE>
<TABLE>
<CAPTION>
-------------------------
JUNE 30, DECEMBER 31,
1997 1996
------- ------------
<S> <C> <C>
BALANCE SHEET DATA:
Cash and cash equivalents $ 2,671 $ 3,258
Working capital 17,391 17,112
Total assets 40,179 49,495
Total liabilities 16,996 26,557
Total shareholders equity 23,183 22,938
</TABLE>
Contract revenue for the second quarter of 1997 decreased by 39.1% to
$16.5 million compared to $27.0 million for the second quarter of 1996.
Contract revenue for the six months ended June 30, 1997 decreased by 34.1% to
$33.3 million compared to $50.4 million for the six months ended June 30,
1996. This decrease is attributed to the downturn in the semiconductor
industry as more fully discussed above. The downturn has resulted in fewer
contracts being worked on during the first two quarters of 1997 compared
with the first two quarters of 1996.
Gross profit for the second quarter of 1997 decreased by 18.4% to $2.4
million from $2.9 million for the second quarter of 1996 and increased as a
percentage of contract revenue to 14.6% for the second quarter of 1997 from
10.9% for the second quarter of 1996. Gross profit for the six months ended
June 30, 1997 decreased by 17.2% to $5.0 million from $6.0
9
<PAGE>
million for the six months ended June 30, 1996 and increased as a percentage
of contract revenue to 15.0% for the six months ended June 30, 1997 from
11.9% for the six months ended June 30, 1996. The increase in gross profit
as a percentage of revenue was primarily the result of continual improvement
in the Company's manufacturing facility creating greater efficiencies and
less costs to produce product and better project management resulting in less
problems at the construction sites which allows the Company to install its
product with less time and labor expense. In addition, contracts in process
during the second quarter of 1997 were generally awarded at higher margins
than those in process during the second quarter of 1996. Due to the current
industry downturn and increased competition, the Company does not expect to
maintain these gross margins through the remainder of 1997.
Selling, general and administrative expenses for the second quarter of
1997 decreased by 4.9% to $2.1 million compared to $2.2 million for the
second quarter of 1996, but increased as a percentage of contract revenue to
12.9% for the second quarter of 1997 from 8.2% for the second quarter of
1996. The decrease in selling, general and administrative expenses for the
second quarter of 1997 compared to the second quarter of 1996 is the result
of reduced headcount. For the six months ended June 30, 1997, selling,
general and administrative expenses remained equal as compared to the same
period during 1996, but increased as a percentage of contract revenue to
12.6% for the six months ended June 30, 1997 from 8.3% for the six months
ended June 30, 1996. Selling, general and administrative expenses remained
the same during the six month periods ended June 30, 1997 and 1996, as a
result of the net effect of a decrease in selling, general, and
administrative headcount noted above and an increase in sales costs during
the first quarter of 1997 compared to the first quarter of 1996. During the
first quarter of 1997 the Company was involved in numerous sales proposals
throughout the world.
Research and development expense for the second quarter of 1997
increased 70.5% to $75,000 compared to $44,000 for the second quarter of
1996. Research and development expense for the six months ended June 30, 1997
increased 96.1% to $149,000 compared to $76,000 for the six months ended June
30, 1996. The increase is the result of a more focused effort to develop
innovative products, to be on the cutting edge of the 300 millimeter
manufacturing facility technology and to modify existing products to be less
expensive to produce and easier to install.
Depreciation and amortization expense for the second quarter of 1997
increased 18.7% to $108,000 compared to $91,000 for the second quarter of
1996. Depreciation and amortization expense for the six months ended June 30,
1997 increased 14.4% to $214,000 compared to $187,000 for the six months
ended June 30, 1996. The majority of the increase is the result of leasehold
improvements made in the second and third quarters of 1996 to expand and
remodel the Company's facility.
Interest expense for the second quarter of 1997 decreased 45.9% to
$98,000 compared to $181,000 for the second quarter of 1996. Interest
expense for the six months ended June 30, 1997 decreased 30.4% to $211,000
compared to $303,000 for the six months ended June 30, 1996. This decrease
is directly related to decreased borrowings against the Company's credit
lines during the second quarter of 1997 compared to borrowings during the
second quarter of 1996. The lines of credit variable interest rate at the
end of the second quarter of 1997 was 8.50% as compared to 8.25% at the end
of the second quarter of 1996.
9
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
Working capital at June 30, 1997 was $17.4 million compared to $17.1 at
December 31, 1996. This includes cash and cash equivalents of $2.7 million
at June 30, 1997 and $3.3 million at December 31, 1996. The Company's
operations generated $4.9 million of cash during the six months ended June
30, 1997, compared to $5.1 million of cash used in operations during the six
months ended June 30, 1996. During the six months ended June 30, 1997, the
Company experienced a decrease in receivables, in costs and estimated
earnings in excess of billings on contracts in progress, and inventories. In
addition, the Company paid down accounts payables, accrued liabilities, and
lines of credit, and experienced a decrease in billings in excess of costs
and estimated earnings on contracts in progress during the six months ended
June 30, 1997.
At June 30, 1997, the Company had lines of credit totaling $11.5
million, of which $10.8 million was available at the end of the quarter.
Amounts drawn under the lines bear interest at a commercial loan variable
rate index (8.50% at June 30, 1997) and are due no later than June 30, 1998
with options to renew on an annual basis. The lines are secured by contracts
receivable and inventories. The Company had borrowings under the lines of
$695 and $5,696 as of June 30, 1997, and December 31, 1996, respectively.
The lines of credit agreements contain restrictive covenants imposing
limitations on payments on cash dividends, purchases or redemptions of
capital stock, indebtedness and other matters.
Management believes that existing cash balances, borrowings available
under the lines of credit, and cash generated from operations will be
adequate to meet the Company's anticipated cash requirements through June 30,
1998. However, in the event the Company experiences adverse operating
performance or above-anticipated capital expenditure requirements, additional
financing may be required. There can be no assurance that such additional
financing, if required, would be available on favorable terms.
FACTORS AFFECTING FUTURE RESULTS
The Company's future operations will be impacted by, among other
factors, the length and severity of the current economic downturn in the
semiconductor industry as more fully discussed above. The length and
severity of the current economic downturn in the semiconductor industry
remains subject to a high degree of uncertainty. The Company's operations
are also subject to additional risks and uncertainties that could result in
actual operating results differing materially from anticipated operating
results and past operating results and trends. These risks and uncertainties
include pricing pressures, cancellations of existing contracts, timing of
significant customer orders, increased competition, and changes in
semiconductor and cleanroom technology.
INFORMATION CONTAINED IN THIS REPORT CONTAINS "FORWARD-LOOKING STATEMENTS"
WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995,
WHICH CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING TERMINOLOGY SUCH AS
"MAY," "WILL," "SHOULD," "EXPECT," "ANTICIPATE," "ESTIMATE," OR "CONTINUE,"
OR THE NEGATIVE THEREOF OR OTHER VARIATIONS THEREON OR COMPARABLE
TERMINOLOGY. THESE FORWARD-LOOKING STATEMENTS ARE SUBJECT TO RISKS AND
UNCERTAINTIES THAT INCLUDE, BUT ARE NOT LIMITED TO, THOSE IDENTIFIED IN THIS
REPORT, DESCRIBED FROM TIME TO TIME IN THE COMPANY'S OTHER SECURITIES AND
EXCHANGE COMMISSION FILINGS, OR DISCUSSED IN THE COMPANY'S PRESS RELEASES.
ACTUAL RESULTS MAY VARY MATERIALLY FROM EXPECTATIONS.
10
<PAGE>
PART II - OTHER INFORMATION
Item 4: Submission of Matters to a Vote of Security Holders
The registrant held its Annual Meeting of Shareholders on May 28, 1997. The
shareholders elected the following Board of Directors to serve for one year:
Shares
Name Voted For
---- ----------
Ronald W. Daw 10,045,569
Charles L. Bates, Jr. 10,050,849
Robert G. Chamberlain 10,054,399
James S. Jardine 10,045,149
Robert J. Frankenberg 10,045,569
The shareholders also ratified the appointment of Grant Thornton LLP as
independent auditors for fiscal year 1997 by a vote of 10,073,753 for, 48,095
against and 16,320 abstained.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Regulation S-K
Exhibit No. Description
------------------ ---------------------------------------
27 Financial Data Schedule
------------------
(b) Reports on Form 8-K - There were no reports on Form 8-K filed for
the three months ended June 30, 1997.
11
<PAGE>
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.
DAW TECHNOLOGIES, INC.
----------------------
(Registrant)
By: /s/ David R. Grow
-------------------------------
David R. Grow
It's: Chief Operating Officer and Secretary
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Condensed Balance Sheets as of June 30, 1997 and December 31, 1996, and the
Condensed Statements of Earnings for the three months and six months ended
June 30, 1997 and 1996 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 2,671
<SECURITIES> 0
<RECEIVABLES> 23,319
<ALLOWANCES> (460)
<INVENTORY> 1,286
<CURRENT-ASSETS> 32,745
<PP&E> 13,706
<DEPRECIATION> (6,596)
<TOTAL-ASSETS> 40,179
<CURRENT-LIABILITIES> 15,354
<BONDS> 0
0
0
<COMMON> 124
<OTHER-SE> 23,059
<TOTAL-LIABILITY-AND-EQUITY> 40,179
<SALES> 33,258
<TOTAL-REVENUES> 33,258
<CGS> 28,277
<TOTAL-COSTS> 32,833
<OTHER-EXPENSES> (100)
<LOSS-PROVISION> 181
<INTEREST-EXPENSE> 211
<INCOME-PRETAX> 314
<INCOME-TAX> 117
<INCOME-CONTINUING> 197
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 197
<EPS-PRIMARY> 0.02
<EPS-DILUTED> 0.02
</TABLE>