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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 28, 1996
( ) 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 0-22646
APPLIED SCIENCE AND TECHNOLOGY, INC.
(Name of Issuer in its Charter)
DELAWARE 04-2962110
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
35 CABOT ROAD, WOBURN, MASSACHUSETTS 01801-1053
(Address of Principal Executive Offices) (Zip Code)
(617) 933-5560
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the 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_____
Indicate the number of shares of each of the issuer's classes of common stock,
as of the latest practicable date:
COMMON STOCK, $0.01 PAR VALUE 4,448,725
----------------------------- ----------------------------------
Class Outstanding as of November 5, 1996
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APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
INDEX
PART I. FINANCIAL INFORMATION PAGE NO.
Item 1. Financial Statements
Consolidated Statements of Operations-
Three Months Ended September 28,1996
and Three Months Ended September 30, 1995 2
Consolidated Balance Sheets-
September 28, 1996 and June 29, 1996 3
Consolidated Statements of Cash Flows-
Three Months Ended September 28, 1996
and Three Months Ended September 30, 1995 4
Notes to Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of
Results of Operations and Financial Condition 8
PART II. OTHER INFORMATION
Item 1-5 None
Item 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
1
APPLIED SCIENCE AND TECHNOLOGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended
----------------------------------
<S> <C> <C>
September 28, September 30,
1996 1995
--------------- ---------------
(unaudited) (unaudited)
Product sales, net $ 8,822,457 $ 5,087,837
Research contract revenue 259,916 207,621
Other revenue 777,967 343,957
--------------- ---------------
Total revenue 9,860,340 5,639,415
--------------- ---------------
Cost of sales and revenue:
Product sales and other revenue 5,927,383 3,449,655
Research contracts 119,543 66,412
--------------- ---------------
Total cost of sales and revenue 6,046,926 3,516,067
--------------- ---------------
Gross profit 3,813,414 2,123,348
Operating expenses:
Research and development expenses (note 5) 1,669,430 736,032
Selling expenses 765,963 532,990
General and administrative expenses 842,325 622,034
--------------- ---------------
Total operating expenses 3,277,718 1,891,056
--------------- ---------------
Earnings from operations 535,696 232,292
Other expense (income):
Interest expense 152,200 -
Interest income (115,217) (200,837)
Other expense 3,797 4,609
--------------- ---------------
Total other (income) expense 40,780 (196,228)
--------------- ---------------
Earnings before income taxes 494,916 428,520
Income tax expense 183,000 130,000
--------------- ---------------
Net earnings $ 311,916 $ 298,520
=============== ===============
Pimary net earnings per share $ 0.07 $ 0.07
=============== ===============
Fully diluted net earnings per share $ 0.07 $ 0.07
=============== ===============
Weighted average common shares outstanding used
to calculate primary earnings per share 4,489,287 4,071,174
=============== ===============
Weighted average common shares outstanding used
to calculate fully diluted earnings per share 4,489,287 4,072,411
=============== ===============
</TABLE>
See accompanying notes to consolidated financial statements.
2
APPLIED SCIENCE AND TECHNOLOGY INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
<S> <C> <C>
Assets September 28, June 29,
1996 1996
-------------- --------------
(unaudited)
Current assets:
Cash and cash equivalents $ 4,393,647 $ 5,182,294
Short-term marketable investments 996,259 1,990,962
Accounts receivable, trade, net (note 3) 7,545,287 8,921,890
Inventories (note 4) 9,234,939 8,734,401
Prepaid expenses and other assets 337,152 276,848
Deferred income taxes 969,741 969,741
-------------- --------------
Total current assets 23,477,025 26,076,136
-------------- --------------
Property, plant and equipment:
Land 473,000 473,000
Building and improvements 1,619,007 1,606,947
Equipment 7,034,500 7,068,802
Furniture and fixtures 536,639 543,860
Leasehold improvements 1,458,390 1,455,977
-------------- --------------
11,121,536 11,148,586
Less accumulated depreciation and amortization (3,828,531) (3,458,407)
-------------- --------------
Net property, plant and equipment 7,293,005 7,690,179
-------------- --------------
Other assets:
Patents, net 161,878 141,525
Other 258,459 262,224
Long-term investments 1,300,271 -
Notes receivable 161,283 191,362
-------------- --------------
Total other assets 1,881,891 595,111
-------------- --------------
$ 32,651,921 $ 34,361,426
============== ==============
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long term debt (note 7) 1,625,201 1,624,641
Accounts payable 1,904,253 2,564,149
Accrued expenses 796,933 820,030
Accrued compensation expense and related costs 646,994 1,428,759
Accrued income tax expense 93,459 173,179
Commissions payable and customer advances 181,769 248,836
-------------- --------------
Total current liabilities 5,248,609 6,859,594
Long-term debt, less current maturities (note 7) 5,758,581 6,169,517
Deferred income taxes 36,507 36,507
-------------- --------------
Total liabilities 11,043,697 13,065,618
-------------- --------------
Stockholders' equity (note 6):
Common stock: issued 4,448,475 shares (4,448,375 shares at 6/29/96): 44,485 44,484
outstanding 4,448,475 shares (4,448,375 shares at 6/29/96)
Additional paid-in capital 26,690,607 26,690,108
Retained earnings (accumulated deficit) (4,893,542) (5,205,458)
Less: Notes receivable for common stock purchases (233,326) (233,326)
-------------- --------------
Total stockholders' equity 21,608,224 21,295,808
-------------- --------------
$ 32,651,921 $ 34,361,426
============== ==============
</TABLE>
See accompanying notes to consolidated financial statements.
3
APPLIED SCIENCE AND TECHNOLOGY INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
---------------------------------
<S> <C> <C>
September 28, September 30,
1996 1995
-------------- --------------
(unaudited) (unaudited)
Cash flows from operating activities:
Net earnings $ 311,916 $ 298,520
Adjustments to reconcile net earnings to net cash
provided by (used for) operating activities:
Depreciation 423,167 218,414
Amortization 16,322 18,218
Equipment transferred to inventory 54,154 0
Changes in assets and liabilities:
Accounts receivable 1,376,603 (1,049,059)
Inventories (500,538) (626,163)
Prepaid expenses and other assets (60,304) (89,856)
Note receivable 30,079 10,948
Accounts payable (659,896) 148,673
Accrued expenses (884,582) (384,682)
Commissions payable and customer advances (67,067) (51,169)
-------------- --------------
Net cash provided by (used for)
operating activities 39,854 (1,506,156)
Cash flows from investing activities:
Purchases of investments (1,299,102) (2,997,851)
Sales of investments 993,534 4,179,769
Additions to property and equipment (80,147) (895,215)
Patents and other assets (32,910) (9,974)
-------------- --------------
Net cash provided by (used for)
investing activities (418,625) 276,729
Cash flows from financing activities:
Repayments of notes payable (410,376) 0
Net proceeds from issuance of common stock 500 1,009,824
-------------------------------------------------------------- --------------
Net cash provided by (used for)
financing activities (409,876) 1,009,824
-------------- --------------
Net decrease in cash and cash equivalents (788,647) (219,603)
Cash and cash equivalents at beginning of period 5,182,294 2,303,645
- ----------------------------------------------------------------------- --------------
Cash and cash equivalents at end of period $ 4,393,647 $ 2,084,042
============== ==============
Supplemental disclosures of cash flow information: Cash paid during the period
for:
Interest $ 152,200 $ 0
Income taxes $ 412,304 $ 218,750
</TABLE>
See accompanying notes to consolidated financial statements.
4
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1) BASIS OF PRESENTATION
The unaudited financial statements as of September 28, 1996 and
September 30, 1995 and for the three month periods then ended, have
been prepared in accordance with generally accepted accounting
principles and include all adjustments, which in the opinion of
management, are necessary to present fairly the results of operations
for the periods then ended. All such adjustments are of a normal
recurring nature. These financial statements should be read in
conjunction with the financial statements for the year ended June 29,
1996, and the notes thereto included in the Company's Form 10-K filed
with the Securities and Exchange Commission.
Certain first quarter Fiscal 1996 accounts have been reclassified to
conform to the first quarter Fiscal 1997 presentation.
The results of the Company's operations for any interim period are not
necessarily indicative of the results of the Company's operations for a
full fiscal year.
2) EARNINGS PER SHARE
Earnings per share is computed based on the weighted average number of
common shares outstanding during each period, after giving effect to
stock options and warrants considered to be dilutive common stock
equivalents. Fully diluted earnings per share is not materially
different from primary earnings per share.
3) ACCOUNTS RECEIVABLE
Accounts receivable consist of the following:
September 28, June 29,
1996 1996
------------- --------------
(unaudited)
Accounts receivable, trade $ 7,688,904 $ 9,115,345
Notes receivable, current portion 164,833 158,754
Allowance for doubtful accounts (308,450) (352,209)
------------- --------------
$ 7,545,287 $ 8,921,890
============= ==============
5
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
4) INVENTORIES
Inventories consist of the following:
September 28, June 29,
1996 1996
------------- --------------
(unaudited)
Raw materials $ 6,197,386 $ 5,630,926
Work in process 2,230,335 2,249,579
Finished goods 807,218 853,896
------------- --------------
$ 9,234,939 $ 8,734,401
============= ==============
5) RESEARCH AND DEVELOPMENT COSTS
All research and development costs are expensed as incurred. Research
and development expenses attributed to research contracts are included
in cost of sales and revenue.
The Company also receives funding for certain research and development
costs which is used to offset research and development expenses. The
Company incurred research and development expenses, net of funding
received, as follows:
Three Months Ended
-------------------------------
September 28, September 30,
1996 1995
------------- --------------
(unaudited) (unaudited)
Research and development costs $ 1,727,644 $ 1,209,659
Less funding 58,214 473,627
------------- --------------
$ 1,669,430 $ 736,032
============= ==============
6
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
6) STOCKHOLDERS' EQUITY
Capital stock consists of the following:
Number of Shares
-------------------------------------------
Authorized Issued and Outstanding
-------------------------------------------
September 28, June 29,
1996 1996
------------- ------------
Preferred stock: (unaudited)
Preferred stock, $.01 par value 1,000,000 - -
-------------------------- ------------
Total preferred stock 1,000,000 - -
-------------------------- ------------
Common Stock:
Common stock, $.01 par value 10,000,000 4,448,475 4,448,375
-------------------------- ------------
Total common stock 10,000,000 4,448,475 4,448,375
-------------------------- ------------
Total capital stock 11,000,000 4,448,475 4,448,375
========================== ============
7
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
7) LONG-TERM DEBT
Long-term debt consists of the following:
September 28, June 29,
1996 1996
------------- -------------
(unaudited)
Unsecured note payable to the bank with
interest at bank's prime rate
(8.25% at September 28, 1996)
payable in monthly principal
installment of $67,797, plus
interest, due December 31, 2000 $ 3,457,627 3,661,017
Unsecured note payable to the bank with
interest at 7.19%, payable in
monthly principal installments of
$67,797, plus interest, due
December 31, 2000. This note is
subject to a prepayment penalty
equal to the lender's lost net
interest income resulting from
any prepayment as defined in the
loan agreement. 3,457,627 3,661,017
Note payable to bank, payable in
monthly installments of $5,415
including interest, with any
remaining balance due in July
1999. The interest is adjusted to
bank's prime rate with a maximum
change of 1% annually (8.75% at
September 28, 1996). The Note is
secured by the land and building. 468,528 472,124
------------- --------------
7,383,782 7,794,158
Less current maturities 1,625,201 1,624,641
============= ==============
Long-term debt, less current maturities 5,758,581 6,169,517
============= ==============
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
GENERAL
The Company was formed in January 1987. The Company's initial activities
consisted of selling microwave components and power supplies, and conducting
funded and nonfunded research and development activities. This research led to
the Company's development of proprietary plasma deposition systems used in
commercial applications. Although the
8
Company has supplied products to end-users, semiconductor capital equipment
manufacturers (SCEMs), and researchers since inception, it did not commence the
marketing of deposition systems for CVD diamond until Fiscal 1990. In February
1992, the Company, through its wholly-owned subsidiary, ASTeX/Gerling
Laboratories, Inc. ("AGL"), acquired substantially all of the assets of Jova
Enterprises, Inc., which conducted business under the name of "Gerling
Laboratories". In November 1995 the Company acquired all the outstanding shares
of Newton Engineering Service, Inc. ("NES"), a manufacturer of high performance
transformers used across the Company's product lines. In January 1996 the
Company acquired all the shares of Ehrhorn Technological Operations, Inc. a
manufacturer of radio frequency ("RF") generators used in semiconductor, medical
diagnostic imaging, and medical sterilization applications. At the acquisition
date the name was changed to ETO, Inc. Applied Science and Technology, GmbH, a
German wholly-owned subsidiary of the Company, has been inactive since its
inception. The Company may use this subsidiary for future activities in Europe.
As set forth in the Company's Consolidated Financial Statements, total revenue
consists of product sales, research contract revenue and other revenue. Other
revenue includes service, repair, spare parts and consulting services.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 28, 1996 AND
SEPTEMBER 30, 1995
The following table compares the consolidated statements of operations for the
three-month periods ended September 28,1996 and September 30, 1995.
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
COMPARATIVE CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
SEPTEMBER 28, 1996 SEPTEMBER 30, 1995 CHANGE CHANGE
<S> <C> <C> <C> <C> <C> <C>
$ (000) % $ (000) % $ (000) %
Product sales, net 8,822 89% 5,088 90% 3,734 73%
Research contract revenue 260 3% 207 4% 53 26%
Other revenue 778 8% 344 6% 434 126%
---------------------- ---------------------- ---------------------
Total revenue 9,860 100% 5,639 100% 4,221 75%
Cost of sales and revenue:
Product sales and other revenues 5,927 60% 3,450 61% 2,477 72%
Research contracts 120 1% 66 1% 54 82%
---------------------- ---------------------- ---------------------
Total cost of sales and revenue 6,047 61% 3,516 62% 2,531 72%
---------------------- ---------------------- ---------------------
Gross profit 3,813 39% 2,123 38% 1,690 80%
---------------------- ---------------------- ---------------------
Operating expenses:
Research and development expenses 1,669 17% 736 13% 933 127%
Selling expenses 766 8% 533 10% 233 44%
General and administrative expenses 842 8% 622 11% 220 35%
---------------------- ---------------------- ---------------------
Total operating expenses 3,277 33% 1,891 34% 1,386 73%
---------------------- ---------------------- ---------------------
Earnings from operations 536 6% 232 4% 304 131%
---------------------- ---------------------- ---------------------
Other expense (income):
Interest expense 152 2% 0 0% 152 -
Interest income (115) (1%) (201) (3%) 86 (43%)
Other expense (income) 4 0% 5 0% (1) (20%)
---------------------- ---------------------- ---------------------
Total other expense (income) 41 1% (196) (3%) 237 (121%)
---------------------- ---------------------- ---------------------
Earnings before income taxes 495 5% 428 8% 67 16%
Income tax expense 183 2% 130 2% 53 41%
---------------------- ---------------------- ---------------------
Net earnings 312 3% 298 5% 14 5%
---------------------- ---------------------- ---------------------
</TABLE>
9
Total revenue increased in the first quarter of Fiscal 1997 by 75% to $9,860,000
compared to the first quarter of Fiscal 1996. Of this sum $3,553,000 was from
sales by ETO. Product sales increased by 73% to $8,822,000. Product sales to
OEMs increased by 70%, primarily due to the acquisition of ETO and its sales of
medical sterilization and MRI imaging products which accounted for 51% of the
increase in OEM sales in the first quarter of Fiscal 1997 compared to the first
quarter of Fiscal 1996. OEM sales to SCEM's accounted for 19% of the increase,
primarily due to ozone generator sales (16% of the increase) and the acquisition
of ETO (9% of the increase), offset by a 6% decline in sales of microwave
generators, components, and plasma products due to the slowdown in the SCEM
market. Sales of equipment to end users (3% of the increase) is primarily due to
the acquisition of ETO's amateur radio business.
Sales to diamond customers of was unchanged.
Research contract revenue increased by $53,000 and other revenue increased by
$434,000 (or 126%) in the first quarter of Fiscal 1997 compared to the first
quarter of Fiscal 1996. The increase in other revenue is primarily due to the
acquisition of ETO which obtains a larger fraction of its total revenue from
this category. Without ETO, the revenue growth in this classification would have
been 47% which is consistent with total growth without ETO.
Gross profits increased by $1,690,000 or 80% in the first quarter of Fiscal 1997
compared to the first quarter of Fiscal 1996. Gross margins as a percent of
sales improved to 39% in the first quarter of Fiscal 1997 compared to 38% in the
first quarter of Fiscal 1996. ETO's gross margin historically has been lower
than ASTeX primarily due to lower prices in a more competitive market. Without
the acquisition of ETO the gross margin as a percent of sales would have been
46% in the first quarter of Fiscal 1997 compared to 38% in the first quarter of
Fiscal 1996. The Company's gross margin improved due to manufacturing
efficiencies, design improvements, controlling of fixed manufacturing overhead
and increased volume in ozone products. The semiconductor segment is a highly
competitive market that will require continued cost improvement in order to
maintain existing margins. The Company anticipates that downward price pressure
due to the downturn in the SCEM market could impact future gross margins
although the Company is actively implementing cost reduction measures. Research
contract gross margin declined in the first quarter of Fiscal 1997 compared to
the first quarter of Fiscal 1996 primarily due to increased overhead cost
sharing on government funded CVD contracts.
Research and development expenses increased by $933,000 or 127% in the first
quarter of Fiscal 1997 compared to the first quarter of Fiscal 1996. The Company
continues to make significant investments in RD&E in order to support future
growth. The investments are in the semiconductor, medical and diamond business
segments. Outcomes of these investments will be anticipated new product
introductions in Fiscal 1997 such as an advanced compact integrated microwave
plasma source. This product will be used for photoresist stripping by leading
SCEMs, which is expected to go into production in the second half of Fiscal
1997. The Company anticipates comparable expense spending as a percent of sales
though Fiscal 1997.
10
Selling expenses decreased to 8% of sales in the first quarter of Fiscal 1997
compared to 10% of sales in the first quarter of Fiscal 1996. Gross spending
increased by 44% primarily due to the acquisition of ETO. The Company
anticipates comparable expense spending as a percent of sales though Fiscal
1997.
General and administrative expenses decreased to 8% of sales in the first
quarter of Fiscal 1997 compared to 11% of sales in the first quarter of Fiscal
1996. Gross spending increased by 35% primarily due to the acquisition of ETO,
additional personnel in finance, human resources, MIS and facility maintenance,
higher cost of audit and tax fees due to the increased size and complexity of
the Company, and increased cost of legal expenses associated with patent and
intellectual property issues. The Company anticipates comparable expense
spending as a percent of sales though Fiscal 1997.
Earnings from operations increased by 131% to 6% of sales in the first quarter
of Fiscal 1997 compared to 4% of sales the first quarter of Fiscal 1996. The
increase in operating income is a result of increased sales, improved gross
margins, and the reduction as a percent of sales in sales expense and general
and administrative costs. The Company anticipates comparable expense spending as
a percent of sales though Fiscal 1997.
Interest expense was $152,000 in the first quarter of Fiscal 1997 with no
comparable expense in the first quarter of Fiscal 1996. The increase in interest
expense is primarily due to two bank notes incurred as part of the financing of
the ETO acquisition. Interest income was $115,000 in the first quarter of Fiscal
1997 compared to $201,000 the first quarter of Fiscal 1996. The decrease in
interest income is primarily due to having less cash investments than in the
prior fiscal year due to the cash used for the ETO acquisition.
Income tax expense was $183,000 in the first quarter of Fiscal 1997 compared to
$130,000 in the first quarter of Fiscal 1996.
ETO contributed $3,553,000 in sales or 36% of the total Company's sales in the
first quarter of Fiscal 1997. While ETO was profitable during the quarter, the
acquisition was dilutive to earnings, which is consistent with the impairment of
goodwill write-off that the Company took in the fourth quarter of Fiscal 1996.
Without ETO, earnings per share would have been $0.11 for the quarter.
LIQUIDITY AND CAPITAL RESOURCES
At September 28, 1996 the Company had cash and long-term investments of
$6,690,000 with working capital of $18,228,000 compared to September 30, 1995
when the Company had had cash and long-term investments of $11,129,000 with
working capital of $17,322,000.
For the first quarter of Fiscal 1997 the Company provided cash of $40,000 from
operating activities and used cash of $419,000 for investing activities. Cash
used for investing activities was primarily $1,299,000 used to purchase
investments, off-set by sales of $994,000 of investments, and the addition of
fixed assets and patents for
11
$113,000. The Company used cash of $410,000 for financing activities, primarily
for repayment of notes payable.
For the first quarter of Fiscal 1996 the Company used $1,506,000 for operating
activities and provided $277,000 from investment activities. Sales of cash
investments provided $4,180,000, while purchase of cash investments used
$2,998,000 and additions to fixed assets and patents used $905,000. Net cash of
$1,010,000 was provided by financing activities, primarily from the exercise of
private placement warrants and incentive stock options. At September 30, 1995 a
total of 84,237 warrants had been exercised to purchase common stock at a price
of $9.60 per share, which provided funds of $809,000 during the quarter.
The Company has two unsecured promissory note agreements with State Street Bank
and Trust Company, as described in footnote 7. In addition the Company has a
credit facility with State Street Bank and Trust Company which consists of a $2
million unsecured demand line of credit for working capital purposes. There were
no outstanding borrowings at September 28, 1996. The credit facility expires
November 30, 1996, and the Company anticipates that the line of credit will be
renewed.
The Company continues to use its cash resources for development of new products,
expanding sales and marketing, performing collaborative product development
projects, and for general working capital. The Company continues to seek joint
ventures and/or acquisitions that will enhance the Company's position in the
market while increasing revenue growth and profitability. However, the Company
has made no material commitments to acquire other businesses at this time and no
assurance can be given that the Company will make such acquisitions in the
future.
12
APPLIED SCIENCE AND TECHNOLOGY INC. AND SUBSIDIARIES
PART II OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 10Q
Computation of Per Share Earnings
Three Months Ended
-----------------------------
September 28, September 30,
1996 1995
------------ -------------
(unaudited) (unaudited)
Net earnings $ 311,915 $ 298,520
============ =============
Primary earnings per share:
Weighted average common
shares outstanding... 4,448,402 3,910,332
Dilutive stock options
and warrants... 40,885 160,842
------------ -------------
4,489,287 4,071,174
============ =============
Earnings per share... $ 0.07$ 0.07
============ =============
Fully diluted earnings per share:
Weighted average common
shares outstanding... 4,448,402 3,910,332
Dilutive stock options
and warrants... 40,885 162,079
------------ -------------
4,489,287 4,072,411
============ =============
Earnings per share... $ 0.07$ 0.07
============ =============
13
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: November 5, 1996
APPLIED SCIENCE AND TECHNOLOGY, INC.
(Registrant)
/s/ Richard S. Post
--------------------------
Richard S. Post
President & Chairman of the Board
/s/ John M. Tarrh
--------------------------
John M. Tarrh
Senior Vice President
Principal Financial Officer
