<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------
FORM 10-QSB
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
for the transition period from ____________ to ____________.
Commission File Number: 0-22390
-------------------
SHARPS COMPLIANCE CORP.
(Name of Small Business Issuer in its Charter)
DELAWARE 74-2657168
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
9050 KIRBY DRIVE, HOUSTON, TEXAS 77054
(Address of principal executive offices) (Zip Code)
(713) 432-0300
Registrant's telephone number
Check whether the registrant (1) has 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 [ ]
Indicated below is the number of shares outstanding of the registrant's only
class of common stock at February 2, 1999:
Number of Shares
Title of Class Outstanding
-------------- -----------
Common Stock, $.01 par value 7,626,444
Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]
<PAGE> 2
SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
PART I FINANCIAL INFORMATION PAGE
<S> <C>
Item 1. Financial Statements
Condensed Consolidated Balance Sheets - March 31, 1999
(Unaudited) and June 30, 1998 3
Condensed Consolidated Statements of Operations (Unaudited) - For
the Three Months Ended March 31, 1999 and 1998 4
Condensed Consolidated Statements of Operations (Unaudited) - For
the Nine Months Ended March 31, 1999 and 1998 5
Condensed Consolidated Statements of Cash Flows (Unaudited) - For
the Nine Months Ended March 31, 1999 and 1998 6
Notes to Condensed Consolidated Financial Statements (Unaudited) 7
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 8
PART II OTHER INFORMATION 11
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURE 12
</TABLE>
2
<PAGE> 3
PART I FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS MARCH 31, 1999 JUNE 30,1998
-------------- --------------
(UNAUDITED)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 371,000 $ 444,000
Short-term investments 1,300,000 2,600,000
Accounts receivable, net 331,000 204,000
Inventory 162,000 172,000
Prepaids and other 80,000 81,000
Total current assets 2,244,000 3,501,000
PROPERTY AND EQUIPMENT, net 189,000 122,000
INTANGIBLE ASSETS, net 89,000 101,000
NOTE RECEIVABLE FROM STOCKHOLDER 320,000 400,000
-------------- --------------
Total assets $ 2,842,000 $ 4,124,000
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities $ 153,000 $ 418,000
Accrued disposal costs 976,000 646,000
Current maturities of long-term debt 38,000 41,000
Total current liabilities 1,167,000 1,105,000
LONG-TERM DEBT, net of current maturities 16,000 40,000
Total liabilities 1,183,000 1,145,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value per share; -0- and 1,000,000
shares authorized; -0- and 1,000,000 shares issued and
outstanding, respectively -- 10,000
Common stock, $.01 par value per share; 20,000,000 shares
authorized; 7,626,444 and 583,944 shares issued and outstanding, 76,000 6,000
respectively
Additional paid-in capital 4,312,000 4,287,000
Accumulated deficit (2,729,000) (1,324,000)
Total stockholders' equity 1,659,000 2,979,000
Total liabilities and stockholders' equity $ 2,842,000 $ 4,124,000
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
3
<PAGE> 4
SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED MARCH 31
1999 1998
------------ ------------
<S> <C> <C>
SALES, net $ 562,000 $ 291,000
COSTS AND EXPENSES:
Cost of sales 329,000 199,000
Selling, general and administrative 787,000 447,000
Depreciation and amortization 17,000 4,000
------------ ------------
Operating loss (571,000) (451,000)
INTEREST EXPENSE (1,000) (12,000)
INTEREST INCOME 33,000 44,000
------------ ------------
Net loss $ (539,000) $ (327,000)
============ ============
BASIC AND DILUTED NET LOSS PER SHARE $ (.07) $ (.05)
============ ============
SHARES USED IN COMPUTING BASIC AND
DILUTED NET LOSS PER SHARE 7,626,444 5,947,446
============ ============
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
4
<PAGE> 5
SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED MARCH 31
1999 1998
------------ ------------
<S> <C> <C>
SALES, net $ 1,650,000 $ 807,000
COSTS AND EXPENSES:
Cost of sales 1,014,000 616,000
Selling, general and administrative expenses 2,115,000 732,000
Depreciation and amortization 42,000 2,000
------------ ------------
Operating loss (1,521,000) (543,000)
INTEREST EXPENSE (1,000) (11,000)
INTEREST INCOME 117,000 39,000
------------ ------------
Net loss $ (1,405,000) $ (515,000)
============ ============
BASIC AND DILUTED NET LOSS PER SHARE $ (.18) $ (.11)
============ ============
SHARES USED IN COMPUTING BASIC AND
DILUTED NET LOSS PER SHARE 7,610,824 4,632,373
============ ============
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
5
<PAGE> 6
SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED MARCH 31
1999 1998
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (1,405,000) $ (515,000)
Adjustments to reconcile net loss to net cash
used in operating activities-
Depreciation and amortization 42,000 2,000
Changes in operating assets and liabilities-
(Increase) decrease in accounts receivable (137,000) 73,000
(Increase) decrease in inventory 10,000 (52,000)
Decrease in other current assets 1,000 24,000
Increase (decrease) in accounts payable and accrued
liabilities (170,000) 60,000
Increase in accrued disposal costs 330,000 277,000
------------ ------------
Net cash used in operating activities (1,329,000) (131,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (97,000) (36,000)
Cash acquired in acquisition of business -- 74,000
Sales (purchases) of short-term investments 1,300,000 (2,600,000)
Note issued to and payments from stockholder 80,000 (400,000)
Increase in deferred issuance costs -- (159,000)
------------ ------------
Net cash provided by (used in) investing
activities 1,283,000 (3,121,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock -- 315,000
Proceeds from issuance of long term debt -- 29,000
Net proceeds of private placement 3,828,000
Payments on notes payable and long-term debt (27,000) (21,000)
------------ ------------
Net cash provided by (used in) financing
activities (27,000) 4,151,000
------------ ------------
NET INCREASE (DECREASE) IN CASH AND CASH (73,000) 899,000
EQUIVALENTS
CASH AND CASH EQUIVALENTS, beginning of period 444,000 13,000
------------ ------------
CASH AND CASH EQUIVALENTS, end of period $ 371,000 $ 912,000
============ ============
SUPPLEMENTAL DISCLOSURE OF NON-CASH
FINANCING ACTIVITIES:
Issuance of common stock to satisfy
accrued liabilities from fiscal 1998 $ 85,000 $ --
Issuance of common stock to satisfy note
payable to stockholder -- 170,000
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
6
<PAGE> 7
SHARPS COMPLIANCE CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1999
1. ORGANIZATION AND BACKGROUND:
ORGANIZATION
The accompanying consolidated financial statements include the accounts of
Sharps Compliance Corp. ("SCC") and its wholly owned subsidiaries, Sharps
Compliance, Inc., dba Sharps Compliance, Inc. of Texas ("Sharps"), and U.S.
Medical, Inc. ("USM") (collectively, the "Company"). All significant
intercompany accounts and transactions have been eliminated in consolidation.
On February 27, 1998, SCC and Sharps entered into an agreement and plan of
reorganization (the "Agreement"). SCC acquired all of the issued and outstanding
common stock, $.01 par value, of Sharps in consideration for the issuance of
1,000,000 shares of preferred stock, $.01 par value, such that each share of
Sharps common stock outstanding on the closing date was exchanged for 0.142858
shares of SCC preferred stock. On July 23, 1998, SCC's stockholders approved a
1-for-5.032715 reverse stock split of its outstanding common stock, which has
been given retroactive effect in the financial statements. Simultaneously with
the reverse stock split, each share of preferred stock was converted into seven
shares of common stock of SCC, resulting in the existing stockholders of SCC
holding 583,944 shares and the former stockholders of Sharps holding 7,000,000
shares.
The Agreement was treated as a reverse acquisition for accounting and financial
reporting purposes. As such, Sharps is considered the accounting acquiror for
accounting and financial reporting purposes, and the net assets of SCC were
combined with those of Sharps at their historical basis, which approximated
their fair market value on the effective date of the Agreement. Sharps has
reflected the ongoing results of operations of SCC in its financial statements
from the effective date of the Agreement.
BUSINESS
Sharps, which operates as a wholly owned subsidiary of SCC, provides mail
disposal systems for certain medical sharps products (i.e., needles, razors and
syringes) as well as other systems to provide the home healthcare industry with
cost effective alternatives to traditional methods of transporting medical
equipment from home healthcare patients. Sharps' mail disposal systems are
designed primarily to facilitate small waste generators' compliance with state
and federal regulations for the disposal of medical waste.
Waste generators that use the Sharps mail disposal systems are responsible for
mailing the systems to a third party for incineration. The Company is
responsible for the postage and burn costs associated with the customer mailing
the mail disposal systems directly to the third party incinerator. The Company
records accrued disposal costs for estimated future postage and burn costs
assuming that all mail disposal systems sold will eventually be returned for
incineration. The accrual is based on all mail disposal systems expected to be
returned for destruction. The Company is currently using information with
respect to the Company's returns to provide a basis for estimating the liability
assuming a non-return factor. As the Company is able to accumulate additional
data and further refine the basis for an estimated non-return factor, the
accrued disposal costs will be adjusted prospectively. Depending upon the
experience of the Company, such revisions could be significant. However, there
can be no assurance that any such revisions will be necessary. The Company has
recorded a current liability for the estimated future postage and burn costs;
however, a portion of these costs may not be required to be incurred during the
next twelve months, if at all.
USM previously developed, produced and marketed products directed at the
over-the-counter consumer market and products related to infection prevention
for the professional dental care industry. Effective July 31, 1998, USM ceased
operations although it is still a subsidiary of SCC.
2. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with the rules and regulations of the Securities and
Exchange Commission and, accordingly, do not include all information and
footnotes required under generally accepted accounting principles for complete
financial statements. In the opinion of management, these interim condensed
consolidated financial statements contain all adjustments (consisting of normal
recurring adjustments) considered necessary for a fair presentation of the
financial position of the Company as of March 31, 1999, and the results of its
operations for the three months and nine months ended March 31, 1999 and 1998
and its cash flows for the nine months ended March 31, 1999 and 1998. The
results of operations for the nine months ended March 31, 1999 are not
necessarily indicative of the results to be
7
<PAGE> 8
expected for the entire fiscal year ending June 30, 1999. These condensed
consolidated financial statements should be read in conjunction with the
Company's 1998 Annual Report on Form 10-KSB.
3. NOTE RECEIVABLE FROM STOCKHOLDER:
In November 1997, Sharps entered into a note receivable with a stockholder and
officer of Sharps. The note is a personal, full recourse obligation of the
officer and allows the officer to borrow up to $400,000 from Sharps. The note,
as amended, accrues interest at 8 percent per annum and is payable in five equal
principal installments, plus accrued interest, beginning February 1999. In
November 1997 and February 1998, the stockholder borrowed $300,000 and $100,000,
respectively, from Sharps. In February 1999, the stockholder paid the first
$80,000 principal installment as well as approximately $32,000 of accrued
interest. At March 31, 1999, approximately $11,000 in accrued interest was owed
under the note.
4. NET LOSS PER SHARE
Earnings per share data for all periods presented has been computed pursuant to
Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per
Share", that requires a presentation of basic earnings per share ("basic EPS")
and diluted earnings per share ("diluted EPS"). Basic EPS excludes dilution and
is determined by dividing income or loss available to common stockholders by the
weighted average number of common shares outstanding during the period. Diluted
EPS reflects the potential dilution that could occur if securities and other
contracts to issue common stock were exercised or converted into common stock.
At March 31, 1999, the Company had outstanding options for the purchase of
approximately 328,000 shares of common stock, of which approximately 76,000
shares were exercisable. There are no differences between basic EPS and diluted
EPS for all periods presented.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
This quarterly report on Form 10-QSB contains certain forward-looking statements
and information relating to SCC and its subsidiaries that are based on the
beliefs of the Company's management as well as assumptions made by and
information currently available to the Company's management. When used in this
report, the words "anticipate," "believe," "estimate" and "intend" and words or
phrases of similar import, as they relate to the Company or its subsidiaries or
Company management, are intended to identify forward-looking statements. Such
statements reflect the current risks, uncertainties and assumptions related to
certain factors including, without limitations, competitive factors, general
economic conditions, customer relations, relationships with vendors,
governmental regulation and supervision, seasonality, distribution networks,
product introductions and acceptance, technological change, changes in industry
practices, one-time events and other factors described herein. Based upon
changing conditions, should any one or more of these risks or uncertainties
materialize, or should any underlying assumptions prove incorrect, actual
results may vary materially from those described herein as anticipated,
believed, estimated, expected or intended. The Company does not intend to update
these forward-looking statements.
8
<PAGE> 9
The discussion below analyzes changes in the consolidated operating results and
financial condition of the Company during the three months and nine months ended
March 31, 1999 and 1998.
GENERAL
The Company's revenues increased 10% (from $510,000 to $562,000) for the quarter
ended March 31, 1999 from the quarter ended December 31, 1998. The increase in
revenues is attributed to the increased acceptance of the Company's Sharps
Disposal by Mail and Trip LesSystem(TM). This increase was partially offset by a
significant decrease in sales to one large distributor. The Company believes
that the ultimate use of its product by end users increased from the quarter
ended December 31, 1998 to the quarter ended March 31, 1999; however, this was
not reflected in the Company's revenues as this distributor used previously
purchased inventory to fill a larger portion of its orders than during the
previous quarter. The Company expects that its results of operations will
continue to fluctuate between periods based upon the timing and level of sales
to distributors.
Consolidated selling, general and administrative ("SG&A") expenses increased
27%, or $170,000 (from $617,000 to $787,000), compared to the quarter ended
December 31, 1998. This was primarily due to a $178,000 executive bonus earned
and paid during the quarter ended March 31, 1999.
The Company's net loss widened 30%, or $125,000 (from $414,000 to $539,000),
compared to the quarter ended December 31, 1998. The increase was largely due to
the executive bonus noted above and was offset by profits from increased sales.
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, certain items from
the Company's Condensed Consolidated Financial Statements of Operations,
expressed as a percentage of revenue:
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS
ENDED ENDED
MARCH 31 MARCH 31
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales 100% 100% 100% 100%
Costs and expenses:
Cost of sales (59%) (68%) (61%) (76%)
Selling, general and administrative (140%) (154%) (128%) (91%)
Depreciation and amortization (3%) (1%) (3%) (0%)
------------ ------------ ------------ ------------
Total operating expenses (202%) (223%) (192%) (136%)
------------ ------------ ------------ ------------
Loss from operations (102%) (123%) (92%) (67%)
Total other income (expense) 6% (11%) 7% (3%)
------------ ------------ ------------ ------------
Net loss (96%) (112%) (85%) (64%)
============ ============ ============ ============
</TABLE>
THREE MONTHS ENDED MARCH 31, 1999 COMPARED TO THREE MONTHS ENDED MARCH 31, 1998
Net sales increased 93% (or $271,000) during the three months ended March 31,
from $291,000 in 1998 to $562,000 in 1999. The Company's increase in net sales
can be attributed to a wider acceptance of the Sharps Disposal by Mail System
("Mail Disposal System") as a more cost effective means of disposing of
contaminated sharps than is currently being used by the small waste generator.
Secondly, Sharps has introduced a product line defined as the Trip LesSystem(TM)
which will further decrease the need for Sharps' primary customers, home
healthcare facilities, to make an additional trip to the patient's home to
retrieve the used sharps
9
<PAGE> 10
container. Finally, due to the overall increase in exposure to contaminated
sharps, the Company is continually seeking to identify new markets where the
Mail Disposal System is a natural fit.
The increase in cost of sales of $130,000, or 65%, is due to the increase in the
Company's sales volume. Cost of sales decreased as a percentage of sales
primarily due to increased coverage of fixed costs through increased sales
volume.
The increase in SG&A expenses of $340,000, or 76%, is due to expansion of the
Company's infrastructure and additional resources expended to penetrate new
markets. This increase began in January 1998. Since January 1998, the Company
has incurred significant SG&A expenses, which is the primary reason for the
Company's net loss. SG&A expenses have increased significantly in the third
quarter of fiscal 1999 in relation to the same period in fiscal 1998 due to
additional support and sales staffing, travel expenses associated with Sharps
sales personnel and additional overall increased marketing efforts. The increase
was also due to a $178,000 executive bonus earned and paid during the quarter
ended March 31, 1999.
NINE MONTHS ENDED MARCH 31, 1999 COMPARED TO NINE MONTHS ENDED MARCH 31, 1998
Net sales increased 104% (or $843,000) during the nine months ended March 31,
from $807,000 in 1998 to $1,650,000 in 1999. The increase in net sales can be
attributed to a wider acceptance of the Mail Disposal System as a more cost
effective means of disposing of contaminated sharps than is currently being used
by the small waste generator. Secondly, Sharps has introduced a product line
defined as the Trip LesSystem(TM) which will further decrease the need for
Sharps' primary customer, home healthcare facilities, to make an additional trip
to the patient's home to retrieve the used sharps container. Finally, due to the
overall increase in exposure to contaminated sharps, the Company is continually
seeking to identify new markets where the Sharps product is a natural fit.
Sharps has been working with Ecolab, a major supplier of hotel and restaurant
cleansing products, to place the Mail Disposal System within many major hotel
and motel chains across the U.S.
The increase in cost of sales of $398,000, or 65%, is due to the increase in the
Company's sales volume. Cost of sales decreased as a percentage of sales
primarily due to increased coverage of fixed costs through increased sales
volume.
SG&A expenses increased $1,383,000, or 189%. During the quarter ended September
30, 1998, USM recorded $119,000 in SG&A expenses, $92,000 of which pertained to
the effects of the Severance Agreement with the SCC's former chief executive
officer and president. The balance of the increase ($1,264,000) is due to
expansion of the Company's infrastructure and additional resources expended to
penetrate new markets. This increase began in January 1998. Since January 1998,
the Company has incurred significant SG&A expenses, which is the primary reason
for the Company's net loss. SG&A expenses have increased significantly in the
first nine months of fiscal 1999 in relation to the same period in fiscal 1998
due to additional support and sales staffing, travel expenses associated with
Sharps sales personnel and additional overall increased marketing efforts. The
increase was also due to a $178,000 executive bonus earned and paid during the
quarter ended March 31, 1999.
LIQUIDITY AND CAPITAL RESOURCES
Sharps completed a $4 million private equity offering immediately prior to its
acquisition by SCC on February 27, 1998. A portion of these capital resources is
being used to provide Sharps with a more nationally identifiable image. Sharps
has retained a Houston, Texas based marketing firm to better assist the Company
with this new image effort. Additionally, a sales team has been assembled to
strategically cover the U.S. to better identify, qualify and assist the existing
and new customer base in the use and efficiency benefits of the Sharps product
line. At March 31, 1999, the Company had approximately $1,671,000 in cash and
cash equivalents and short-term investments, and its working capital was
$1,077,000.
Capital expenditures for the Company during the nine months ended March 31, 1999
were approximately $97,000 and consisted of office equipment, computers and
furniture and fixtures.
At March 31, 1999, total long-term debt outstanding was approximately $16,000.
The Company expects to incur substantial costs related to sales, marketing and
administrative activities. The amount and timing of anticipated expenditures
will depend upon numerous factors both within and outside the Company's control,
including the nature and timing of marketing and sales activities. Moreover, the
Company's ability to generate income from operations will be dependent upon,
among other things, sufficient penetration of the home healthcare, industrial
and other markets. Management believes that the Company's available resources
will satisfactorily fund operations for the next 12 to 18 months. There can be
no assurance that the Company will be able to obtain additional financing on
acceptable terms, if at all, to fund operations beyond that time frame.
10
<PAGE> 11
YEAR 2000 ISSUES
Many currently installed computer systems and software products were coded using
two digits rather than four to define the applicable year. As a result these
computer systems and software products have time-sensitive software that
recognize a date using "00" as the year 1900 rather than the year 2000. This
could cause a system failure or miscalculations, causing disruptions of
operations, including, among other things, a temporary inability to process
transactions, to send invoices or to engage in similar normal business
activities. Finally, computer systems and software product devices may fail to
process accurately leap year logic associated with the Year 2000.
The Company believes that the adverse impact of Year 2000 issues on its internal
computer systems will not be material. Most of the personal computers and
computer systems used by the Company have been installed in the past year as the
Company has been growing its organization. The Company has conducted a manual
review of all its software and has found no incidence of Year 2000 coding
issues.
The Company has not contacted its material vendors and suppliers to determine if
such vendors and suppliers have any Year 2000 issues that have not been resolved
or may not be resolved in a timely manner. However, the Company does not believe
that its financial condition or results of operations would be materially
adversely affected by Year 2000 issues if its vendors or suppliers were unable
to successfully address these issues.
To date, minimal expenses have been incurred associated with the Company's
evaluation of Year 2000 issues, and the Company does not expect that
expenditures for upgrades or additional testing for Year 2000 issues will be
material.
The above Year 2000 disclosure statement constitutes a "Year 2000 Readiness
Disclosure" as defined in The Year 2000 Information and Readiness Disclosure Act
(the "Act"), which was signed into law on October 19, 1998. The Act provides
added protection from liability for certain public and private statements
concerning a company's Year 2000 readiness.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits
The following exhibit is filed as part of this report.
Exhibit No. Description
27.1 Financial Data Schedule (filed herewith)
b) Reports on Form 8-K
None.
ITEMS 1, 2, 3, 4 AND 5 ARE NOT APPLICABLE AND HAVE BEEN OMITTED.
11
<PAGE> 12
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereto duly authorized.
REGISTRANT:
SHARPS COMPLIANCE CORP.
Dated: May 14, 1999 By: :/s/ Kent D. Manby
-------------------------------
Kent D. Manby, Vice President and
Chief Financial Officer
12
<PAGE> 13
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
----------- -----------
<S> <C>
27.1 Financial Data Schedule (filed herewith)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AS OF MARCH 31, 1999, AND THE CONSOLIDATED STATEMENT
OF OPERATIONS FOR THE THREE MONTHS THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 371,000
<SECURITIES> 1,300,000
<RECEIVABLES> 341,000
<ALLOWANCES> 10,000
<INVENTORY> 162,000
<CURRENT-ASSETS> 2,244,000
<PP&E> 237,000
<DEPRECIATION> 48,000
<TOTAL-ASSETS> 2,842,000
<CURRENT-LIABILITIES> 1,167,000
<BONDS> 54,000
0
0
<COMMON> 76,000
<OTHER-SE> 1,583,000
<TOTAL-LIABILITY-AND-EQUITY> 2,842,000
<SALES> 562,000
<TOTAL-REVENUES> 562,000
<CGS> 329,000
<TOTAL-COSTS> 329,000
<OTHER-EXPENSES> 804,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 539,000
<INCOME-TAX> 0
<INCOME-CONTINUING> (539,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (539,000)
<EPS-PRIMARY> 0.07
<EPS-DILUTED> 0.07
</TABLE>
