================================================================================
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 27, 1997
-------------------
( ) 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)
----------
(781) 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 5,673,800
----------------------------- ----------------------------------
Class Outstanding as of October 29, 1997
================================================================================
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
INDEX
TITLE PAGE
----- ----
Part I. FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS
Consolidated Statements of Operations for the Three Months Ended
September 27, 1997 and September 28, 1996 2
Consolidated Balance Sheets-
September 27, 1997 and June 28, 1997 3
Consolidated Statements of Cash Flows for the Three Months Ended
September 27, 1997 and September 28, 1996 4
Notes to Consolidated Financial Statements 5
Item 2 Management's Discussion and Analysis of
Results of Operations and Financial Condition 9
PART II. OTHER INFORMATION
Items 1-5 None
Item 6 Exhibits and Reports on Form 8-K 13
SIGNATURES 14
1
ITEM 1 FINANCIAL STATEMENTS
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended
--------------------------------------
September 27, September 28,
1997 1996
----------------- -----------------
(unaudited) (unaudited)
<S> <C> <C>
Product sales, net $ 16,580,003 $ 8,822,457
Research contract revenue 200,040 259,916
Other revenue 641,259 777,967
----------------- -----------------
Total revenue 17,421,302 9,860,340
----------------- -----------------
Cost of sales and revenue:
Product sales and other revenue 10,879,415 5,927,383
Research contracts 67,870 119,543
----------------- -----------------
Total cost of sales and revenue 10,947,285 6,046,926
----------------- -----------------
Gross profit 6,474,017 3,813,414
Operating expenses:
Research and development expenses (note 5) 2,561,006 1,669,430
Selling expenses 835,059 765,963
General and administrative expenses 1,400,904 842,325
----------------- -----------------
Total operating expenses 4,796,969 3,277,718
----------------- -----------------
Earnings from operations 1,677,048 535,696
Other expense (income):
Interest expense 160,711 152,200
Interest income (80,056) (115,217)
Other expense (income) (236,557) 3,797
----------------- -----------------
Total other (income) expense (155,902) 40,780
----------------- -----------------
Earnings before income taxes 1,832,950 494,916
Income tax expense 678,000 183,000
----------------- -----------------
Net earnings $ 1,154,950 $ 311,916
----------------- -----------------
Primary net earnings per share $ 0.23 $ 0.07
----------------- -----------------
Fully diluted net earnings per share $ 0.22 $ 0.07
----------------- -----------------
Weighted average common shares outstanding used
to calculate primary earnings per share 5,069,825 4,489,287
----------------- -----------------
Weighted average common shares outstanding used
to calculate fully diluted earnings per share 5,205,765 4,489,287
----------------- -----------------
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
2
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
Assets September 27, June 28,
1997 1997
---------------- ----------------
(unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 9,293,426 $ 3,246,337
Short-term marketable investments 1,299,658 0
Accounts receivable, trade, net (note 3) 10,116,114 11,915,919
Inventories (note 4) 10,866,968 10,013,422
Prepaid expenses and other assets 249,067 276,682
Deferred income taxes 895,237 895,237
---------------- ----------------
Total current assets 32,720,470 26,347,597
---------------- ----------------
Property, plant and equipment:
Land 473,000 473,000
Building and improvements 1,624,578 1,621,469
Equipment 8,103,478 7,871,718
Furniture and fixtures 746,955 741,143
Leasehold improvements 1,946,801 1,946,800
---------------- ----------------
12,894,812 12,654,130
Less accumulated depreciation and amortization (5,670,168) (5,150,881)
---------------- ----------------
Net property, plant and equipment 7,224,644 7,503,249
---------------- ----------------
Other assets:
Patents, net 156,828 148,794
Goodwill, net of accumulated amortization 3,227,599 3,261,652
Long-term investments 0 1,299,545
Notes receivable, less current maturities 382,072 383,080
Other 141,486 383,304
---------------- ----------------
Total other assets 3,907,985 5,476,375
---------------- ----------------
$ 43,853,099 $ 39,327,221
================ ================
Liabilities and Stockholders' Equity
Current liabilities:
Current maturities of long-term debt (note 7) 1,824,397 1,824,397
Accounts payable 3,568,376 3,869,521
Accrued expenses 1,240,960 1,374,635
Accrued compensation expense and related costs 1,048,872 1,448,928
Accrued income tax expense 704,488 647,142
Commissions payable and customer advances 264,749 226,672
---------------- ----------------
Total current liabilities 8,651,842 9,391,295
---------------- ----------------
Long-term debt, less current maturities (note 7) 5,909,666 6,368,913
Deferred income taxes 78,003 78,003
---------------- ----------------
Total liabilities 14,639,511 15,838,211
---------------- ----------------
Stockholders' equity (note 6):
Common stock: issued 4,862,437 shares (4,519,006 shares at 6/28/97); 48,624 45,190
outstanding 4,862,437 shares (4,519,006 shares at 6/28/97)
Additional paid-in capital 32,426,039 27,859,845
Accumulated deficit (3,112,749) (4,267,699)
Less: Notes receivable for common stock purchases (148,326) (148,326)
---------------- ----------------
Total stockholders' equity 29,213,588 23,489,010
---------------- ----------------
$ 43,853,099 $ 39,327,221
================ ================
See accompanying Notes to Consolidated Financial Statements.
</TABLE>
3
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
----------------------------------------
September 27, September 28,
1997 1996
------------------ ------------------
(unaudited) (unaudited)
Cash flows from operating activities:
<S> <C> <C>
Net earnings $ 1,154,950 $ 311,916
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation 519,287 423,167
Amortization 89,770 16,322
Equipment transferred to inventory 0 54,154
Gain on investment (250,000) 0
Changes in assets and liabilities:
Accounts receivable 1,799,805 1,376,603
Inventories (853,546) (500,538)
Prepaid expenses and other assets 27,615 (60,304)
Note receivable 1,008 30,079
Accounts payable (301,145) (659,896)
Accrued expenses (476,385) (884,582)
Commissions payable and customer advances 38,077 (67,067)
------------------ ------------------
Net cash provided by
operating activities 1,749,436 39,854
------------------ ------------------
Cash flows from investing activities:
Acquisition related expenses (50,521) 0
Purchases of investments (113) (1,299,102)
Sales of investments 0 993,534
Additions to property and equipment (240,682) (80,147)
Patents and other assets (21,412) (32,910)
Proceeds from sale of investment 500,000 0
------------------ ------------------
Net cash provided by (used for)
investing activities 187,272 (418,625)
------------------ ------------------
Cash flows from financing activities:
Repayments of notes payable (459,247) (410,376)
Net proceeds from issuance of common stock 4,569,628 500
Net cash provided by (used for)
financing activities 4,110,381 (409,876)
------------------ ------------------
Net increase (decrease) in cash and cash equivalents 6,047,089 (788,647)
Cash and cash equivalents at beginning of period 3,246,337 5,182,294
------------------- ------------------
Cash and cash equivalents at end of period $ 9,293,426 $ 4,393,647
================== ==================
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 165,362 $ 152,200
Income taxes $ 620,654 $ 412,304
See accompanying Notes to Consolidated Financial Statements.
</TABLE>
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 27, 1997 and
September 28, 1996 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 28, 1997, and the notes
thereto included in the Company's Form 10-K filed with the Securities
and Exchange Commission.
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.
3) ACCOUNTS RECEIVABLE
<TABLE>
<CAPTION>
September 27, June 28,
1997 1997
--------------- --------------
(unaudited)
<S> <C> <C>
Accounts receivable, trade $ 10,396,092 $ 11,857,598
Notes receivable, current portion 64,982 384,663
Allowance for doubtful accounts (344,960) (326,342)
--------------- --------------
$ 10,116,114 $ 11,915,919
=============== ==============
</TABLE>
(4) INVENTORIES
Inventories consist of the following:
<TABLE>
<CAPTION>
September 27, June 28,
1997 1997
--------------- --------------
(unaudited)
<S> <C> <C>
Raw materials $ 7,018,800 $ 6,566,718
Work in process 2,843,601 2,534,245
Finished goods 1,004,567 912,459
--------------- --------------
$ 10,866,968 $ 10,013,422
=============== ==============
</TABLE>
5
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
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:
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------------------------
September 27, September 28,
1997 1996
-------------------- --------------------
(unaudited) (unaudited)
<S> <C> <C>
Research and development costs $ 2,673,392 $ 1,727,644
Less funding 112,385 58,214
-------------------- --------------------
$ 2,561,007 $ 1,669,430
==================== ====================
</TABLE>
6) STOCKHOLDERS' EQUITY
Capital stock consists of the following:
<TABLE>
<CAPTION>
Number of Shares
-----------------------------------------------
Authorized Issued and Outstanding
-----------------------------------------------
September 27, June 28,
1997 1997
--------------- ---------------
Preferred stock: (unaudited)
<S> <C> <C> <C>
Preferred stock, $.01 par value, 1,000,000 - -
------------------------------ ---------------
Total preferred stock 1,000,000 - -
------------------------------ ---------------
Common Stock:
Common stock, $.01 par value 10,000,000 4,862,437 4,519,006
------------------------------ ---------------
Total common stock 10,000,000 4,862,437 4,519,006
------------------------------ ---------------
Total capital stock 11,000,000 4,862,437 4,519,006
============================== ===============
</TABLE>
6
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
7) LONG-TERM DEBT
Long-term debt consists of the following:
<TABLE>
<CAPTION>
September 27, June 28,
1997 1997
-------------------- --------------------
(unaudited)
<S> <C> <C>
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, 1997).
The Note is secured by the land and
building. $ 439,148 $ 445,853
Unsecured note payable to the bank with interest
at bank's prime rate (8.5% at September
27, 1997) payable in monthly principal
installment of $83,051, plus interest,
due June 30, 2002 4,650,847 4,900,000
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. 2,644,068 2,847,457
-------------------- --------------------
7,734,063 8,193,310
Less current maturities 1,824,397 1,824,397
-------------------- --------------------
Long-term debt, less current maturities $ 5,909,666 $ 6,368,913
==================== ====================
</TABLE>
8) SUBSEQUENT EVENTS
On October 1, 1997 the Company acquired all the shares of Sorbios GmbH, to be
renamed ASTeX Sorbios GmbH. The acquisition will be accounted for by the
purchase method of accounting and accordingly the purchase price will be
allocated to the assets acquired and liabilities assumed based on fair values at
the date of acquisition.
At September 27, 1997 $4,861,000 had been transferred to an escrow account in
anticipation of the acquisition. These funds are included in cash and cash
equivalents in the September 27, 1997 balance sheet. Of these funds, $3,507,000
was used for the acquisition while the remainder was used to repay debt and
recapitalize the acquired company.
On September 3, 1997 the Company announced that it had met the requirements for
redemption of the 1,955,000 redeemable warrants issued in connection with the
Company's IPO and would call the warrants for redemption. At September 27, 1997,
599,226 warrants had been redeemed for 304,107 shares of common stock for net
cash of $4,221,000. As of October 29, 1997 a total of approximately 1,069,270
shares of common stock had been issued associated with the warrant conversion
for net cash of $14,903,000. These funds have been used to repay all of the
Company's long-term debt.
7
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
GENERAL
Applied Science and Technology, Inc. (the "Company" or "ASTeX") is a leading
provider of innovative production technology for the manufacture of advanced
semiconductor devices. The Company's products are typically used in plasma
production techniques in which gases are heated to form a plasma which
chemically interacts with a substrate material. ASTeX markets its plasma sources
and subsystems, ozone generators and subsystems, and specialty power sources to
the world's leading semiconductor capital equipment manufacturers. ASTeX markets
the same underlying core technology for medical, electro-optic and synthetic
diamond applications.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 27, 1997 AND
SEPTEMBER 28, 1996
The following table compares the consolidated statements of operations for the
three-month periods ended September 27, 1997 and September 28, 1996.
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
COMPARATIVE CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
--------------------------------------------------------------------------
SEPT 27, 1997 SEPT 28, 1996 CHANGE CHANGE
$ (000) % $ (000) % $ (000) %
<S> <C> <C> <C> <C> <C> <C>
Product sales, net 16,580 95% 8,822 89% 7,758 88%
Research contract revenue 200 1% 260 3% (60) (23%)
Other revenue 641 4% 778 8% (137) (18%)
----------------------- ----------------------- ----------------------
Total revenue 17,421 100% 9,860 100% 7,561 77%
Cost of sales and revenue:
Product sales and other revenues 10,879 63% 5,927 60% 4,952 84%
Research contracts 68 0% 120 1% (52) (43%)
----------------------- ----------------------- ----------------------
Total cost of sales and revenue 10,947 63% 6,047 61% 4,900 81%
----------------------- ----------------------- ----------------------
Gross profit 6,474 37% 3,813 39% 2,661 70%
----------------------- ----------------------- ----------------------
Operating expenses:
Research and development expenses 2,561 15% 1,669 17% 892 53%
Selling expenses 835 4% 766 8% 69 9%
General and administrative expenses 1,401 8% 842 9% 559 66%
----------------------- ----------------------- ----------------------
Total operating expenses 4,797 27% 3,277 34% 1,520 46%
----------------------- ----------------------- ----------------------
Earnings from operations 1,677 10% 536 5% 1,141 213%
----------------------- ----------------------- ----------------------
Other (income) expense:
Interest expense 161 0% 152 1% 9 6%
Interest income (80) (0%) (115) (1%) 35 (30%)
Other (income) expense (237) (1%) 4 0% (241) (6025%)
----------------------- ----------------------- ----------------------
Total other expense (income) (156) (1%) 41 0% (197) (480%)
----------------------- ----------------------- ----------------------
Earnings before income taxes 1,833 11% 495 5% 1,338 270%
Income tax expense 678 4% 183 2% 495 270%
----------------------- ----------------------- ----------------------
Net earnings 1,155 7% 312 3% 843 270%
----------------------- ----------------------- ----------------------
</TABLE>
8
Total revenue increased in the first quarter of Fiscal 1998 by 77% to
$17,421,000 compared to the first quarter Fiscal 1997. This growth is a result
of acquisitions and a 92% increase in semiconductor capital equipment revenues
primarily due to the industry's recovery. Specialty power supplies increased by
58% compared to Fiscal 1997, primarily due to the acquisition of ASTeX CPI,
completed in May 1997, which contributed $3,557,000 in revenues for the first
quarter of Fiscal 1998. Research contract revenue and other revenue consisting
of service, spare parts and repairs declined in the first quarter of Fiscal 1998
compared to the first quarter of Fiscal 1997.
Gross profits increased by $2,661,000 or 70% in the first quarter of Fiscal 1998
compared to Fiscal 1997. Gross profit as a percent of revenues decreased from
39% in Fiscal 1997 to 37% in Fiscal 1998 primarily due to the acquisition of CPI
whose products have lower gross margins than other product lines in the Company.
In addition, gross margins were negatively impacted by new product introduction
ramp-up costs. The Company continues to focus on improving gross margins with
the introduction of new products with anticipated higher margins, and improved
manufacturing efficiencies and methods.
Net research and development expenses increased by 53% to $2,561,000 in Fiscal
1998 compared to Fiscal 1997. Gross spending (total research and development
spending including funded joint development and the direct cost of research
contracts) increased by 48% to $2,741,000 in Fiscal 1998 compared to Fiscal
1997. The increase is primarily due to new acquisitions and increased
investments in new products. The Company is committed to continued investments
in research and development in order to advance its position as a market and
technological leader.
Selling expenses increased by 9% but decreased as a percent of revenue to 4% in
Fiscal 1998 compared to 8% in Fiscal 1997. The decrease as a percent of revenues
is due to consolidation of the Company's semiconductor sales activities,
reduction of headcount and other expense reductions. General and administrative
expenses increased by 66% but decreased to 8% of revenues in Fiscal 1998
compared to 9% in Fiscal 1997. The increase is primarily due to goodwill
amortization and increased expenses from the acquisition of ASTeX CPI and other
increases due to growth and complexity of the Company. Despite these additions,
cost reduction efforts have reduced the overall level of increase.
Operating income increased by 213% to $1,677,000 or 10% of revenue in Fiscal
1998 compared to Fiscal 1997. The increased operating income is due to increased
revenues, increased gross profit and a reduction of expenses as a percent of
revenue.
Interest expense increased by $9,000 and interest income decreased by $35,000 in
Fiscal 1998 compared to Fiscal 1997. Other income increased by $241,000 in
Fiscal 1998 compared to Fiscal 1997 due to the gain on the sale of the Company's
investment in Low Entropy Systems, Inc.
Income tax expense was $678,000 in Fiscal 1998 compared to $183,000 in Fiscal
1997.
The Company's backlog consists of purchase orders for products and research and
development contracts. At September 27, 1997 the Company's backlog was
$18,767,000 (consisting of $18,137,000 for products and $630,000 for research
contracts) compared to backlog at September 28, 1996 of $5,595,000 (consisting
of $4,925,000 for products and $670,000 for research contracts). Bookings for
Fiscal 1998 were a record $22,479,000 compared to Fiscal 1997 bookings of
$7,438,000. The Company expects to complete all product backlog during the next
12 months. The backlog excludes supply agreements with certain SCEM's. The
supply agreements, as well as certain government contracts, typically provide
for modification or cancellation with little or no penalty.
The Company does not expect inflation to have a material effect on its
operations. The Company does not know of any environmental issues that would
have a material effect on its operations.
9
LIQUIDITY AND CAPITAL RESOURCES
At September 27, 1997 the Company had cash and short-term marketable investments
of $10,593,000 with working capital of $24,069,000 compared to September 28,
1996 when the Company had cash, short-term marketable investments and long-term
investments of $6,690,000 with working capital of $18,228,000. At September 27,
1997 the Company had committed $4,861,000 to the purchase of Sorbios GmbH (see
footnote 8 of the Notes to Consolidated Financial Statements).
For the first three months of Fiscal 1998, the Company provided cash of
$1,749,000 from operating activities and provided cash of $187,000 from
investing activities. Cash used for investing activities was primarily $262,000
for additions to fixed assets and patents and $51,000 for acquisition
activities, off-set by the proceeds of the sale of the Company's investment in
Low Entropy Systems, Inc. The Company provided cash of $4,110,000 from financing
activities, primarily due to exercise of redeemable warrants and options which
provided cash of $4,570,000 (see footnote 8 of the Notes to Consolidated
Financial Statements), offset by repayment of debt for $459,000.
The Company has two unsecured promissory note agreements with State Street Bank
and Trust Company, as described in footnote 7 of the Notes to Consolidated
Financial Statements. In addition, the Company has a credit facility with State
Street Bank and Trust Company which consists of an $8,000,000 unsecured demand
line of credit for working capital purposes. There were no outstanding
borrowings under the line of credit at September 27, 1997. The credit facility
expires in May, 2000.
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.
Management believes that existing cash resources, investments, anticipated cash
flows from operations and its credit facility will be sufficient to meet planned
operating expenses and working capital requirements for a period of at least the
next 12 months.
10
APPLIED SCIENCE AND TECHNOLOGY, INC. AND SUBSIDIARIES
PART II. OTHER INFORMATION
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
Computation of Per Share Earnings
Three Months Ended
-----------------------------------
September 27, September 28,
1997 1996
---------------- ---------------
(unaudited) (unaudited)
Net earnings (loss) $ 1,154,950 $ $ 311,915
================ ===============
Primary earnings per share:
Weighted average common
shares outstanding... 4,551,733 4,448,402
Dilutive stock options
and warrants... 518,092 40,885
---------------- ---------------
5,069,825 4,489,287
================ ===============
Earnings per share $ 0.23 $ 0.07
================ ===============
Fully diluted earnings per share:
Weighted average common
shares outstanding... 4,551,733 4,448,402
Dilutive stock options
and warrants... 654,032 40,885
---------------- ---------------
5,205,765 4,489,287
================ ===============
Earnings per share... $ 0.22 $ 0.07
================ ===============
11
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: October 29, 1997
APPLIED SCIENCE AND TECHNOLOGY, INC.
(Registrant)
<TABLE>
<CAPTION>
Name Capacity Date
- ---- -------- ----
<S> <C> <C>
/S/ Richard S. Post Chairman of the Board, Chief October 29, 1997
- ------------------------- Executive Officer and President
Richard S. Post (principal executive officer)
/S/ John M. Tarrh Chief Financial Officer, Senior October 29, 1997
- ------------------------ Vice President of Finance
John M. Tarrh (principal financial and accounting
officer) and Director
</TABLE>
12
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-28-1997
<PERIOD-END> SEP-27-1997
<CASH> 9,293,426
<SECURITIES> 1,299,658
<RECEIVABLES> 10,461,074
<ALLOWANCES> 344,960
<INVENTORY> 10,866,968
<CURRENT-ASSETS> 32,720,470
<PP&E> 12,894,812
<DEPRECIATION> (5,670,168)
<TOTAL-ASSETS> 43,853,099
<CURRENT-LIABILITIES> 8,651,842
<BONDS> 5,909,666
0
0
<COMMON> 48,624
<OTHER-SE> 29,164,964
<TOTAL-LIABILITY-AND-EQUITY> 43,853,099
<SALES> 17,221,262
<TOTAL-REVENUES> 17,421,302
<CGS> 10,879,415
<TOTAL-COSTS> 10,947,285
<OTHER-EXPENSES> 4,796,969
<LOSS-PROVISION> (18,618)
<INTEREST-EXPENSE> 160,711
<INCOME-PRETAX> 1,832,950
<INCOME-TAX> 678,000
<INCOME-CONTINUING> 1,832,950
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,154,950
<EPS-PRIMARY> 0.23
<EPS-DILUTED> 0.22
</TABLE>
