U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE PERIOD ENDED JUNE 30, 1997.
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______________
TO_____________________.
Commission File Number: 0-29020
MULTIMEDIA ACCESS CORPORATION
(Exact Name of Small Business Issuer as Specified in its Charter)
Delaware 75-2528700
(State or other Jurisdiction of (I.R.S. Employer Incorporation
Incorporation or Organization) Identification No.)
2665 Villa Creek Drive, Suite 200, Dallas TX 75234
(Address of principal executive offices) (Zip Code)
972/488-7200
(Issuer's Telephone Number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities 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
As of August 11, 1997, 7,910,291 shares of the Registrant's common stock were
outstanding
<PAGE>
MULTIMEDIA ACCESS CORPORATION AND SUBSIDIARIES
INDEX TO FORM 10-QSB
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets at December 31, 1996 and June 30, 1997
(Unaudited) .................................................................3
Consolidated Statements of Operations for the Three Months ended June 30,
1996 and 1997 (Unaudited) and the Six Months ended June 30, 1996 and
1997 (Unaudited) ............................................................4
Consolidated Statement of Stockholders' Equity (Deficit) for the Six
Months ended June 30, 1997 (Unaudited) ..................................... 5
Consolidated Statements of Cash Flows for the Six Months ended June 30,
1996 and 1997 (Unaudited)................................................... 6
Notes to Consolidated Financial Statements................................... 7
Item 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations........................................................9
PART II. OTHER INFORMATION .................................................. 11
SIGNATURES................................................................... 12
2
<PAGE>
MULTIMEDlA ACCESS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
DECEMBER 31, JUNE 30,
ASSETS 1996 1997
------------- -------------
(UNAUDITED)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 18,539 $ 1,454,648
Accounts receivable, less allowance for doubtful accounts of $43,000
at December 31, 1996 and $29,000 at June 30, 1997 185,564 329,257
Inventory 310,133 1,409,861
Prepaid expenses 46,239 114,962
Deferred charges 504,295 1,606
------------- -------------
Total current assets 1,064,770 3,310 334
Property and equipment, net 460,895 716,013
Software development costs, net 147,321 172,249
Deposits 18,272 23,706
------------- -------------
Total assets $ 1,691,258 $ 4,222,302
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 682,689 $ 1,015,708
Accrued compensation 239,707 240,625
Deferred revenue 15,591 --
Other accrued liabilities 857,260 191,320
Short-term debt, officer 533,089 311,243
Short-term debt, other 1,966,202 3,780
Current portion of long-term debt 3,177,550 --
------------- -------------
Total current liabilities 7,472,088 1,762,676
Commitments
Stockholders' equity (deficit):
Preferred stock $.0001 par value;
Authorized shares - 5,000,000
Issued shares - none -- --
Common stock $ .0001 par value;
Authorized shares - 20,000,000
Issued and outstanding shares - 5,315,811 at December 31,1996
and 8,171,788 at June 30, 1997 532 817
Additional paid-in capital 6,602,572 17,821,152
Accumulated deficit (12,372,028) (15,350,437)
Treasury stock, 261,497 shares at December 31, 1996 and
June 30, 1997 (l1,906) (11,906)
------------- -------------
Total stockholders' equity (deficit) (5,780,830) 2,459,626
------------- -------------
Total liabilities and stockholders' equity (deficit) $ 1,691,258 $ 4.222.302
============= =============
</TABLE>
Note:The balance sheet at December 31, 1996 has been derived from the audited
financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements.
See accompanying notes
3
<PAGE>
MULTIMEDIA ACCESS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
JUNE 30, JUNE 30,
--------------------------- --------------------------
1996 1997 1996 1997
---------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
NET SALES $ 266,265 $ 574,568 $ 676,719 $ 834,101
Cost of goods sold 89,795 294,907 265,380 410,763
---------- ----------- ----------- -----------
GROSS PROFIT 176,470 280,361 411,339 423,338
Operating expenses:
Selling, general and administrative 550,263 1,129,626 1,129,548 1,861,597
Research and development 463,455 682,235 1,009,854 1,244,360
Depreciation and amortization 51,042 75,587 101,307 134,667
---------- ----------- ----------- -----------
Total operating expenses 1,064,760 1,887,448 2,240,709 3,240,624
---------- ----------- ----------- -----------
OPERATING LOSS (888,290) (1,607,087) (1,829,370) (2,817,286)
Other Income (expense):
Dividend and interest income 10 31,384 59 49,811
Interest expense (110,900) (11,767) (228,846) (227,814)
Other -- 15,594 - 16,880
---------- ----------- ----------- -----------
Total other income (expense) (110,890) 35,211 (228,787) (161,123)
---------- ----------- ----------- -----------
NET LOSS $ (999,180) $(1,571,876) $(2,058,157) $(2,978,409)
========== =========== =========== ===========
NET LOSS PER SHARE $ (0.17) $ (0.20) $ (0.35) $ (0.41)
========== =========== ============ ===========
WEIGHTED AVERAGE NUMBER OF COMMON AND
COMMON EQUIVALENT SHARES OUTSTANDING 5,929,139 7,907,434 5,858,477 7,268,660
========== =========== ============ ===========
</TABLE>
See accompanying notes
4
<PAGE>
MULTIMEDIA ACCESS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
ADDITIONAL STOCK TOTAL
COMMON STOCK PAID-IN SUBSCRIPTIONS ACCUMULATED TREASURY STOCKHOLDERS'
SHARES PAR VALUE CAPITAL RECEIVABLE DEFICIT STOCK EQUITY (DEFICIT)
----------- ----------- ----------- -------------- ------------- --------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE, DECEMBER 31, 1996 5,315,811 $ 532 $ 6,602,572 $ -- $(12,372,028) $(11,906) $(5,780,830)
Sale of Common Stock; and Public
Warrants, net of expenses 1,610,000 161 5,427,077 -- -- -- 5,427,238
Exchange of short-term and
long-term debt for Common Stock
and Public Warrants 1,241,977 124 5,713,003 -- -- -- 5,713,127
Fair market value of warrants
issued for inducement of debt -- -- 66,500 -- -- -- 66,500
Exercise of warrants 4,000 -- 12,000 -- -- -- 12,000
Net loss -- -- -- -- (2,978,409) -- (2,978,409)
--------- ------- ----------- ---------- ------------ -------- -----------
Balance, June 30,1997 8,171,788 $ 817 $17,821,152 -- $(15,350,437) $(11,906) $ 2,459,626
========= ======= =========== ========== ============ ======== ===========
</TABLE>
See accompanying notes
5
<PAGE>
MULTIMEDIA ACCESS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JUNE 30,
------------------------
1996 1997
------------- ------------
OPERATING ACTIVITIES;
<S> <C> <C>
Net loss $(2,058,157) $(2,978,409)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation of fixed assets 75,902 99,367
Amortization of software development costs 25,404 35,300
Non-cash charges to interest expense -- 155,667
Changes in operating assets and liabilities:
Accounts receivable (96,464) (143,693)
Inventory (148,528) (1,099,728)
Prepaid expenses (20,380) (68,723)
Due from debt holder 315,300 --
Deferred charges (132,976) 413,522
Deposits (75) (5,434)
Accounts payable 449,369 333,019
Accrued compensation (81,289) 918
Deferred revenue (59,922) (15,591)
Other accrued liabilities 332,566 (284,959)
------------- ------------
Net cash used in operating activities (1,399,250) (3,558,744)
------------- ------------
INVESTING ACTIVITIES
Purchase of property and equipment (85,901) (354,485)
Software development costs -- (60,228)
------------- ------------
Net cash used in investing activities (85,901) (414,713)
------------- ------------
FINANCING ACTIVITIES:
Net proceeds from issuance of short-term
and long-term debt 835,000 210,202
Net repayment of short-term debt-officer -- (235,000)
Other (4,436) (4,874)
Net proceeds from sale of common stock and warrants 692,054 5,439,238
------------- ------------
Net cash provided by financing activities 1,522,618 5,409,566
------------- ------------
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS 37,467 1,436,109
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 16,605 18,539
------------- ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 54,072 $ 1,454,648
============= ============
</TABLE>
See accompanying notes.
6
<PAGE>
MULTIMEDIA ACCESS CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements
include the accounts of MultiMedia Access Corporation and its wholly-owned
subsidiaries. Viewpoint Systems, Inc., VideoWare. Inc. and Osprey Technologies
Inc. (collectively, the Company). All material inter-company accounts and
transactions have been eliminated in consolidation.
The interim financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting only of normal
recurring accruals) considered necessary for a fair presentation have been
included. Operating results for the three and six month periods ended June 30,
1997 are not necessarily indicative of the results that may be expected for the
year ending December 31, 1997. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's Annual Report on Form 10-KSB filed March 28, 1997.
2. INVENTORIES
Inventory is comprised primarily of purchased electronic component and
computer system products, along with related documentation manuals and packaging
materials and consists of the following purchased materials and finished goods:
DECEMBER 31, JUNE 30,
1996 1997
------------------------------
(UNAUDITED)
Purchased materials $ 180,149 $ 744,406
Fleshed Goods 129,984 665,455
------------------------------
$ 310,133 $ 1,409,861
==============================
3. SALE OF COMMON STOCK
In February 1997, the Company completed an underwritten initial public
offering of 1,400,000 shares of its Common Stock and 1,400,000 Redeemable Common
Stock Purchase Warrants (Public Warrants). The shares of Common Stock and the
Public Warrants were sold on the basis of one Public Warrant for each share of
Common Stock at a unit price to the public of $4.60, and were separately
transferable immediately upon issuance. In March 1997, the Company issued an
additional 210,000 shares of Common Stock and Public Warrants upon exercise of
the underwriter's over-allotment option. The Company received net proceeds of
$5,427,000 during February and March 1997 related to this sale. The proceeds,
net of expense related to the offering, are being used primarily for marketing
activities in connection with the Company's products, to complete the
development of additional product and software applications, for repayment of
certain loans and to fund its working capital requirements.
7
<PAGE>
MULTIMEDIA ACCESS CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)
4. NET LOSS PER SHARE
Net loss per share is computed based on the weighted average number of
common and common equivalent shares outstanding. The Company has computed common
and common equivalent shares in determining the number of shares used in
calculating earnings per share for the three and six month periods ended June
30, 1996 pursuant to the Securities and Exchange Commission Staff Accounting
Bulletin (SAB) No. 83. SAB No. 83 requires the Company to include all common
shares and all common share equivalents issued in the 12 month period preceding
the filing date of the initial public offering in its calculation even if
anti-dilutive Net loss per share for the three and six month periods ended June
30, 1997 has been computed in accordance with AICPA Accounting Principles Board
Opinion No 15 and does not include common share equivalents since their effect
is anti-dilutive.
The FASB has issued Statement of Financial Accounting Standards No. 128,
Earnings per Share, which is effective for financial statements issued after
December 15, 1997. Early adoption of the new standard is not permitted. The new
standard eliminates primary and fully diluted earnings per share and requires
presentation of basic and diluted earnings per share together with disclosure of
how the per share amounts were computed. Because the application of SAB No. 83
in calculation of per share amounts under FAS 128 is presently uncertain, the
Company is unable to determine the effect of this standard on its historical per
share amounts.
8
<PAGE>
MULTIMEDIA ACCESS CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS - (CONTINUED)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
GENERAL
MultiMedia Access Corporation develops and markets advanced video
communications products. The Company delivers high-performance, low-cost
products and integrates video capabilities into existing desktop computers,
applications and networks, delivering standards-based video solutions to the PC
and workstation marketplace.
This Form 10-QSB contains forward-looking statements which involve risks
and uncertainties. The Company's actual results may differ significantly from
the results discussed in the forward-looking statements. Factors that might
cause such a difference include, but are not limited to, product demand and
market acceptance risks, the impact of competitive products and pricing, product
development commercialization and technological difficulties, capacity and
supply constraints or difficulties, general business and economic conditions,
the effect of the Company's accounting policies and other risks detailed in the
Company's Annual Report on Form 10-KSB and other filings with the Securities and
Exchange Commissions.
RESULTS OF OPERATIONS
Six Months Ended June 30, 1997 compared to Six Months Ended June 30, 1996.
Net Sales. Net sales for the six months ended June 30, 1997 increased 23.3%
to $834,101 from $676,719 reported for the same period last year. This increase
can be attributed to a significant increase in the sales of Osprey products
during the first half of 1997 compared to the same period last year, offset in
part by a decline in the sales of PC Products between the same periods.
During the first half of 1997, sales of Osprey products represented
approximately 83% of total sales, compared to approximately 51% of total sales
during the same period of 1996. While the sale of Osprey products are expected
to continue to increase dramatically for the balance of 1997 as new products are
developed and marketed and new contracts are finalized, the percentage of Osprey
product sales to total sales is expected to decline as the Company also expects
to see a significant increase in VBX product revenue for the balance of 1997.
Sales of PC products are expected to continue to show a decline from the
previous year, reflecting the Company's decision to focus its efforts on the VBX
and Osprey product lines.
Cost of Goods Sold. Cost of goods sold increased $145,383 to $410,763 for
the six months ended June 30, 1997 compared to the same period last year,
primarily due to the increase in net sales described above. Gross profit margin
for the first half of 1997 was 50.8%, representing a decline from the 60.8%
margin during the same period last year. This decline in gross margin can be
attributed to consulting and custom programming revenue in the first half of
1996 that was substantially greater than the same period in 1997, which have
little or no associated costs, and to the decrease in PC product sales discussed
above.
Selling, General and Administrative Expense. Selling, general and
administrative expenses increased to $1,861,597 as of June 30, 1997 from
$1,129,548 for the same period last year primarily due to a significant
expansion of the Company's sales and customer support efforts in the first half
of 1997. By the end of the first quarter of 1997, the Company had filled six
sales positions and three customer support positions that did not exist during
the same period in 1996.
Research and Development Expense. Research and development expense
increased $234,506 to $1,244,360 for the six months ended June 30, 1997 compared
to the same period in 1996, primarily due to an increase in the Company's
development staff and contract consultants during the first half of 1997. The
new staff and consultants were principally involved in the development of the
Company's Viewpoint VBX product.
9
<PAGE>
MULTIMEDIA ACCESS CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS - (CONTINUED)
Other Income (Expense). For the six months ended June 30, 1997, other
expense decreased $67,644 to $161,123, primarily as a result of an increase in
interest income during the period. The interest income is being earned on the
unused proceeds from the Company's initial public offering in February 1997.
LIQUIDITY AND CAPITAL RESOURCES
The Company successfully completed an initial public offering of its Common
Stock and Redeemable Common Stock Purchase Warrants on February 7, 1997 and on
March 13, 1997 sold the over-allotment option, raising a total of $5,427,000 of
net proceeds. During 1997, with the proceeds of the offering, the Company is
endeavoring to build an effective marketing and sales organization, develop a
network of independent resellers and achieve market acceptance of its products
at prices and volumes which will, in the future, result in profitable
operations. However, the Company expects operating losses to continue until such
time as gross margins from the sales of its products exceeds its development,
selling, administrative and financing costs. As a result of several potential
large contracts involving the Company's Viewpoint VBX product, the Company in
anticipation of such orders, increased its level of spending on inventory and
development equipment during the second quarter of 1997, above that contemplated
at the time of the Company's initial public offering. It is anticipated that the
proceeds from the initial public offering plus anticipated proceeds from the
exercise of private warrants (see below) will be sufficient to fund the
operations of the Company through at least the second quarter of 1998. In the
event that the Company's plans change or its assumptions change or prove to be
inaccurate or if the proceeds of the initial public offering prove to be
insufficient to fund operations (due to unanticipated expenses or difficulties
or otherwise), the Company may be required to seek additional financing sooner
than currently anticipated or could be required to curtail its activities.
In August 1997, the Company registered, in a Registration Statement on Form
SB-2, 2,981,573 shares of Common Stock underlying private warrants that had
previously been issued by the Company at various times between June 1995 and
February 1997 in connection with various financing transactions. Each such
private warrant entitles the holder to purchase one (1) share of Common Stock at
prices ranging from $ 1.00 to $3.00 per share at any time commencing immediately
upon issuance through and including three years from the date of issuance. The
Company will not receive any of the proceeds of the sale of such shares of
Common Stock, but will receive proceeds of up to $7,529,719 from the exercise of
the private warrants. Such proceeds, if any, will be used for working capital
and general corporate purposes, and possible future acquisitions.
The Company has had preliminary discussions with several potential sources
of additional financing, and may seek additional financing to provide additional
working capital in the future. Such financing may include loans or lines of
credit and could include factoring agreements. The Company has no current
arrangements with respect to, or sources of, additional financing. There can be
no assurance that existing stockholders will provide any portion of the
Company's future financing requirements. There can be no assurance that any
additional financing will be available to the Company on acceptable terms, or at
all. Additional equity financing may involve substantial dilution to the
Company's then existing stockholders.
At June 30, 1997, the Company had working capital of $1,547,658. Until the
completion of its initial public offering on February 7, 1997, the Company was
dependent upon loans from its principal stockholders, as well as private
placements of its debt and equity securities to finance its working capital
requirements. At June 30, 1997, the Company did not have any material
commitments for capital expenditures.
10
<PAGE>
MULTIMEDIA ACCESS CORPORATION AND SUBSIDIARIES
OTHER INFORMATION
PART II: OTHER INFORMATION
Item l. Legal Proceedings
(Not Applicable)
Item 2. Changes in Securities
(Not Applicable)
Item 3. Defaults Upon Senior Securities
(Not Applicable)
Item 4. Submission of Matters to a Vote of Security Holders
The Company held its Annual Meeting of Shareholders on May 14, 1997
and the following proposals were submitted to a vote by proxy of the
shareholders of record on April 11, 1997:
Proposal No. 1. To elect the Board of Directors (three directors) to
serve until the next Annual Meeting of Shareholders. The following
persons were nominated for re-election as directors of the Company
with the following voting results:
<TABLE>
<CAPTION>
Shares
Voted
Shares Against/ Share Broker Total Shares
Director Nominees Voted For Withheld Abstentions Non-Votes Results Represented
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
William D. Jobe 6,513,694 1,000 - 16,000 Elected 6,530,694
Glenn A. Norem 6,510,628 4,066 - 16,000 Elected 6,530,694
Joe C. Culp 6,508,694 6,000 - 16,000 Elected 6,530,694
</TABLE>
Proposal No. 2. To ratify the appointment of Ernst & Young, LLP as the
Company's independent public accountants for the year ending December 31,
1997. Voting results were as follows:
<TABLE>
<CAPTION>
Shares
Voted
Shares Against/ Share Broker Total Shares
Proposal Voted For Withheld Abstentions Non-Votes Results Represented
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ernst & Young, 6,504,908 1,500 8,286 16,000 Pass 6,530,694
LLP Ratification
</TABLE>
Item 5. Other Information
(None)
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits filed with this report:
Exhibit 11: Computation of Earnings Per Share
Exhibit 27: Financial Data Schedule
11
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
MultiMedia Access Corporation
-----------------------------
(registrant)
BY:
Date: Aug 13, 1997 /s/ WILLIAM S. LEFTWICH
------------ -----------------------
William S. Leftwich
Chief Financial Officer
Principal Financial Officer
12
EXHIBIT ll
MULTIMEDIA ACCESS CORPORATION AND SUBSIDIARIES
STATEMENT RE: CALCULATION OF NET LOSS PER SHARE
<TABLE>
<CAPTION>
For the Three Months Ended For the Six Months Ended
June 30, June 30,
---------------------------------------------------------------
LOSS PER SHARE DATA: 1996 1997 l996 l997
------------- ------------ ------------- --------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net loss as reported in the financial statements $ (999,180) $(1,571,876) $(2,058,157) $ (2,978,409)
------------ ------------ ------------ -------------
Weighted average number of common shares
outstanding 4,805,817 7,907,434 4,632,794 7,268,660
Common and common equivalent shares issued
in the twelve month period preceding the filing
date of the initial public offering as required by
SAB No. 83:
Common stock 38,145 - 140,506 -
Incentive stock options 266,356 - 266,356 -
Non-qualified stock option 40,208 - 40,208 -
Warrants 778,613 - 778,613 -
WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING AS REPORTED IN THE ------------ ------------ ------------ -------------
FINANCIAL STATEMENTS 5,929,139 7,907,434 5,858,477 7,268,660
------------ ------------ ------------ -------------
LOSS PER SHARE AS REPORTED IN THE FINANCIAL
STATEMENTS $ (0.17) $ (0.20) $ (0.35) $ (0.41)
============ ============ ============ =============
</TABLE>
13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET OF MULTIMEDIA ACCESS CORPORATION AND SUBSIDIARIES AS
OF JUNE 30, 1997 (UNAUDITED) AND THE RELATED CONSOLIDATED STATEMENT OF
OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED) AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<EXCHANGE-RATE> 1
<CASH> 1,454,648
<SECURITIES> 0
<RECEIVABLES> 358,257
<ALLOWANCES> 29,000
<INVENTORY> 1,409,861
<CURRENT-ASSETS> 3,310,334
<PP&E> 1,140,905
<DEPRECIATION> (424,892)
<TOTAL-ASSETS> 4,222,302
<CURRENT-LIABILITIES> 1,762,676
<BONDS> 0
0
0
<COMMON> 817
<OTHER-SE> 2,458,809
<TOTAL-LIABILITY-AND-EQUITY> 4,222,302
<SALES> 793,498
<TOTAL-REVENUES> 834,101
<CGS> 410,763
<TOTAL-COSTS> 410,763
<OTHER-EXPENSES> 1,379,027
<LOSS-PROVISION> 17,149
<INTEREST-EXPENSE> 227,814
<INCOME-PRETAX> (2,978,409)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,978,409)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,978,409)
<EPS-PRIMARY> (0.41)
<EPS-DILUTED> (0.41)
</TABLE>
