<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF JUNE 1999
SPECTRUM SIGNAL PROCESSING INC.
(REGISTRANT'S NAME)
100 PRODUCTION COURT, 8525 BAXTER PLACE
BURNABY, BC V5A 4V7
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F Form 40-F X
--- ---
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
--- ---
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- .
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SPECTRUM SIGNAL PROCESSING INC.
CONSOLIDATED BALANCE SHEETS
(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS)
(PREPARED IN ACCORDANCE WITH UNITED STATES GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES, UNAUDITED)
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1999 1998
- --------------------------------------------------------------------------------------------
(Restated)
<S> <C> <C>
Current assets
Cash and cash equivalents $ 2,732 $ 1,693
Accounts receivable 3,678 5,404
Inventories 5,140 4,935
Prepaid expenses 197 203
- --------------------------------------------------------------------------------------------
11,747 12,235
Property and equipment 2,233 2,287
Other assets* 4,597 4,925
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$ 18,577 $ 19,447
============================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
- --------------------------------------------------------------------------------------------
Current liabilities
Bank indebtedness $ 2,965 $ 2,202
Accounts payable 2,572 3,680
Accrued liabilities 1,050 1,303
Current portion of long-term debt 57 80
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6,644 7,265
Long-term debt 73 75
Deferred income taxes 434 346
Shareholders' equity
Share capital
Authorized: 50,000,000 common shares, no par value
Issued: 10,268,954 (1998 - 10,268,954) 16,309 16,309
Outstanding: 10,035,654 (1998 - 10,035,654)
Warrants 140 140
Additional paid-in capital 76 76
Treasury stock, at cost, 233,300 shares (1998 - 233,300) (1,232) (1,232)
Retained earnings (deficit) (1,827) (1,671)
Accumulated other comprehensive income
Cumulative translation adjustments (2,040) (1,861)
- --------------------------------------------------------------------------------------------
11,426 11,761
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$ 18,577 $ 19,447
============================================================================================
</TABLE>
* Currently subject to review by the SEC
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SPECTRUM SIGNAL PROCESSING INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS (DEFICIT)
(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS, EXCEPT NUMBERS OF SHARES)
(PREPARED IN ACCORDANCE WITH UNITED STATES GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES, UNAUDITED)
<TABLE>
<CAPTION>
3 months ended March 31,
1999 1998
- --------------------------------------------------------------------------------------------
(Restated)
<S> <C> <C>
Sales $ 5,638 $ 5,276
Cost of sales 2,165 1,950
- --------------------------------------------------------------------------------------------
Gross profit 3,473 3,326
Expenses
Administrative 926 774
Sales and marketing 1,456 1,716
Amortization 359 171
Acquired in-process research and development charge * - 2,640
Research and development 832 841
- --------------------------------------------------------------------------------------------
3,573 6,142
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Earnings (loss) from operations (100) (2,816)
Other
Interest income (expense) and bank charges (45) (14)
Other income (expense) 56 (8)
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Earnings (loss) before income taxes (89) (2,838)
Income tax expense (recovery) 67 (554)
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
Net earnings (loss) for the period (156) (2,284)
- --------------------------------------------------------------------------------------------
Retained earnings (deficit), beginning of period (1,671) 1,237
- --------------------------------------------------------------------------------------------
Retained earnings (deficit), end of period $ (1,827) $ (1,047)
============================================================================================
Earnings (loss) per share
Basic $ (0.02) $ (0.24)
Diluted $ (0.02) $ (0.24)
Weighted average shares (in thousands)
Basic 10,036 9,356
Diluted 10,036 9,356
</TABLE>
* Currently subject to review by the SEC
<PAGE> 4
SPECTRUM SIGNAL PROCESSING INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(EXPRESSED IN THOUSANDS OF UNITED STATES DOLLARS)
(PREPARED IN ACCORDANCE WITH UNITED STATES GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES, UNAUDITED)
<TABLE>
<CAPTION>
3 months ended March 31,
1999 1998
- -------------------------------------------------------------------------------------------------------
(Restated)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings (loss) from operations $ (156) $ (2,284)
Adjustments to reconcile net earnings (loss) to net cash
provided by operating activities
Amortization 518 225
Acquired in-process research and development - 2,640
Deferred income taxes 67 (554)
Changes in operating assets and liabilities
Accounts receivable 1,745 936
Inventories (43) (653)
Prepaid expenses 9 (134)
Accounts payable (1,760) 2,003
Accrued liabilities 5 (589)
Deferred revenue - (18)
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Net cash provided by operating activities 385 1,572
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CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (85) (229)
Software and related development costs - (294)
Acquisition of net assets of Alex Computer, net of cash received - (2,204)
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Net cash used in investing activities (85) (2,727)
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CASH FLOWS FROM FINANCING ACTIVITIES
Increase in bank indebtedness 763 -
Issue of shares from share options - 29
Repayment of long-term debt (23) -
- -------------------------------------------------------------------------------------------------------
Net cash provided by financing activities 740 29
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Effect of foreign currency exchange rates on cash and cash equivalents (1) (198)
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Net increase (decrease) in cash and cash equivalents during the period 1,039 (1,324)
Cash and cash equivalents, beginning of period 1,693 1,383
- -------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period $ 2,732 $ 59
=======================================================================================================
</TABLE>
