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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
(Mark One)
/X/ Amendment No.1 to Quarterly report pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934 for the quarterly period ended
October 31, 1998
OR
/ / Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from ____________ to
____________
Commission file number: 0-23255
COPART, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
CALIFORNIA 94-2867490
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification Number)
5500 E. SECOND STREET, BENICIA, CA 94510
(Address of principal executive offices with zip code)
Registrant's telephone number, including area code: (707) 748-5000
N/A
(Former name, former address and former fiscal year, if changed since
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 X NO
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Number of shares of Common Stock outstanding as of December 1, 1998:
13,317,710
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The Registrant is filing this Amendment No. 1 to Quarterly Report on
Form 10-Q for the period ended October 31, 1998, in order to revise
the discussion of its Year 2000 Compliance that is contained in the
Management's Discussion and Analysis of Financial Condition and
Results of Operations section of said Report.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
YEAR 2000 COMPLIANCE
GENERAL
Various year 2000 issues result from computer programs written using
a two-digit date field rather than four to define the applicable year.
Certain computer programs utilizing a two-digit date field may recognize a
date using "00" as the year 1900 rather than the year 2000. This could
potentially result in a system failure or miscalculations causing disruptions
of operations, including, among other things, a temporary inability to
process transactions, send invoices, or engage in other similar normal
business activities.
The Company's internal information technology (IT) systems include
all hardware and software used in its computer systems. The Company's non-IT
systems include telephone and alarm systems, office equipment, and motor
vehicle electronic components.
COMPANY'S STATE OF READINESS
The Company has completed an assessment of its internal information
systems relative to the Year 2000 issue. The assessment has confirmed that
the hardware and software the Company currently uses is Year 2000 compliant.
In addition, the Company has surveyed non-IT systems and concluded that they
are also Year 2000 compliant.
COSTS TO ADDRESS THE COMPANY'S YEAR 2000 ISSUES
The Company has not had any specific Year 2000 costs. The systems
used by the Company are relatively new and Year 2000 compliance was built
into these new systems.
RISKS TO THE COMPANY
The Company has initiated informal communications with many of its
significant third parties and suppliers (Insurance companies, Banks and State
Motor Vehicle Departments) to determine the extent to which the Company is
vulnerable to those third parties' failure to remedy their own Year 2000
issues. The Company has received some assurances regarding these issues from
these third parties, but there are no guarantees these third party systems
will be compliant. In addition, the event of non-compliance may have a
material effect on the operations of the Company. For example, if some of the
Company's suppliers are not Year 2000 compliant it could impact the Company's
ability to obtain orders from those suppliers.
The Company believes its exposure to the Year 2000 issue will come
mainly from third parties, either as the result of these parties not being
prepared, or other parties these third parties rely upon not being prepared.
Although there can be no assurance that unforeseen problems will not occur,
the Company expects that all critical internal Year 2000 issues will be
resolved as encountered.
CONTINGENCY PLANS
The Company currently has no formal Year 2000 contingency plans.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COPART, INC.
/s/ Wayne R. Hilty
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Wayne R. Hilty, Senior Vice President and Chief
Financial Officer (duly authorized
officer and principal financial and
accounting officer)
Date: March 11, 1999
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