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Previous: APPLIED DIGITAL SOLUTIONS INC, 8-K/A, EX-99.2, 2000-09-11 |
Next: APPLIED DIGITAL SOLUTIONS INC, 8-K/A, EX-99.4, 2000-09-11 |
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COMPUTER EQUITY CORPORATION AND SUBSIDIARIES
Unaudited Consolidated Financial Statements
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<PAGE>
COMPUTER EQUITY CORPORATION AND SUBSIDIARIES
Contents
--------------------------------------------------------------------------------
Unaudited Consolidated Financial Statements
Page
Consolidated Balance Sheets 3
Consolidated Statements of Income 4
Consolidated Statement of Stockholders' Equity 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 7
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<TABLE>
<CAPTION>
Computer Equity Corporation and Subsidiaries
Consolidated Balance Sheets
<S> <C> <C>
May 31, February 29,
ASSETS 2000 2000
(Unaudited)
---------------------------------------------------------------------- ------------------------- -------------------------
Current Assets
Cash and cash equivalents $ 5,458,000 $ 4,970,000
Short-term investments 2,925,000 2,654,000
Accounts receivable 5,507,000 9,766,000
Deferred tax asset 235,000 -
Inventories - 130,000
Other assets 37,000 -
------------------------ ------------------------
Total Current Assets 14,162,000 17,520,000
Equipment Held for Lease, net of accumulated
depreciation of $586,000 and $1,097,000 at
May 31 and February 29, 2000 respectively 140,000 334,000
Property and Equipment, net of accumulated
depreciation of $505,000 and $490,000 at
May 31 and February 29, 2000 respectively 155,000 170,000
Other Assets 18,000 18,000
------------------------ ------------------------
$14,475,000 $18,042,000
======================== ========================
LIABILITIES AND STOCKHOLDERS' EQUITY
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Current Liabilities
Accounts payable and accrued expenses $ 5,698,000 $ 8,688,000
Deferred Income Taxes - 267,000
Stockholders' Equity
Common stock, $.01 par value; authorized
10,000,000 shares; issued and outstanding
5,117,336 and 4,816,846 at May 31 and
February 29, 2000 respectively 51,000 48,000
Capital in excess of par 470,000 61,000
Retained earnings 8,256,000 8,978,000
------------------------ ------------------------
8,777,000 9,087,000
------------------------ ------------------------
$14,475,000 $18,042,000
======================== ========================
</TABLE>
See the accompanying notes to consolidated financial statements.
3
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<TABLE>
<CAPTION>
Computer Equity Corporation and Subsidiaries
Consolidated Statements of Income
Unaudited
For the three months
ended May 31,
2000 1999
-------------------- ------------------
<S> <C> <C>
Revenue
Sales $4,526,000 $8,327,000
Costs and Expenses
Cost of sales 3,141,000 6,526,000
General, administrative and other 1,668,000 986,000
Depreciation and amortization 100,000 130,000
-------------------- ------------------
Income (Loss) from Operations (383,000) 685,000
Investment Income (Loss) (814,000) 36,000
-------------------- ------------------
Income (Loss) before Provision (Benefit) for
Income Taxes (1,197,000) 721,000
Provision (Benefit) for Income Taxes (475,000) 279,000
-------------------- ------------------
Net Income (Loss) $ (722,000) $ 442,000
==================== ==================
</TABLE>
See the accompanying notes to consolidated financial statements.
4
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<TABLE>
<CAPTION>
Computer Equity Corporation and Subsidiaries
Consolidated Statement of Stockholders' Equity
Three months ended May 31, 2000
(Unaudited)
<S> <C> <C> <C> <C> <C>
Capital Total
Common Stock in excess Retained stockholders'
Shares Amount of par earnings equity
---------------- -------------- ---------------- ----------------- ---------------
Balance February 29, 2000 4,816,846 $48,000 $ 61,000 $8,978,000 $9,087,000
Exercise of stock options 300,490 3,000 409,000 - 412,000
Net loss - - - (722,000) (722,000)
---------------- -------------- ---------------- ----------------- ---------------
Balance May 31, 2000 5,117,336 $51,000 $470,000 $8,256,000 $8,777,000
================ ============== ================ ================= ===============
</TABLE>
See the accompanying notes to consolidated financial statements.
5
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<TABLE>
<CAPTION>
Computer Equity Corporation and Subsidiaries
Consolidated Statements of Cash Flows
Three months ended May 31,
(Unaudited)
<S> <C> <C>
2000 1999
------------------- -------------------
Increase (Decrease) in Cash and Cash Equivalents
Cash flows from Operating Activities
Net (loss) income $ (722,000) $ 442,000
Adjustments to reconcile net income (loss) to net cash
provided by operating activities
Depreciation and amortization 100,000 130,000
Deferred income taxes (539,000) (21,000)
Gain on sale of equipment held for lease (194,000) -
Unrealized loss on short-term investments 1,159,000 -
Changes in operating assets and liabilities
Decrease in accounts receivable 4,259,000 3,848,000
Decrease in inventories 130,000 289,000
Increase in investments (1,430,000) -
Decrease in other assets - 5,000
Increase in accounts payable and
accrued expenses (2,990,000) (2,923,000)
----------------- -----------------
Net Cash (Used in) Provided by Operating Activities (227,000) 1,770,000
Cash Flows Provided by (Used in) Investing Activities
Proceeds from sale of equipment held for lease 304,000 -
Additions to property and equipment - (15,000)
----------------- -----------------
Net Cash Provided by (Used in) Investing Activities 304,000 (15,000)
Cash Flows Provided by Financing Activities
Issuance of common stock 412,000 -
----------------- -----------------
Net Cash Provided by Financing Activities 412,000 -
----------------- -----------------
Net Increase in Cash and Cash Equivalents 489,000 1,755,000
Cash and Cash Equivalents at Beginning of Year 4,970,000 4,965,000
----------------- -----------------
Cash and Cash Equivalents at End of Year $5,459,000 $6,720,000
================= =================
Supplemental Disclosures of Cash Flows Information
Cash paid during the period for:
Interest $ 0 $ 2,000
Taxes 47,000 310,000
</TABLE>
See the accompanying notes to consolidated financial statements.
6
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Computer Equity Corporation and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
May 31, 2000
(Unaudited)
Note 1: Basis of Presentation
The accompanying unaudited consolidated financial statements of Computer Equity
Corporation ("Compec") as of May 31, 2000 and February 29, 2000 and for the
three months ended May 31, 2000 and 1999 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 Compec's management, all adjustments (consisting only of
normal recurring adjustments) considered necessary to present fairly the
consolidated financial statements have been made.
The consolidated statement of income for the three months ended May 31, 2000 is
not necessarily indicative of the results that may be expected for the entire
year. These statements should be read in conjunction with the audited
consolidated financial statements and related notes thereto for the year ended
February 29, 2000.
Note 2: Principles of Consolidation
The financial statements include the accounts of Compec and its wholly-owned
subsidiaries. All material intercompany balances and transactions have been
eliminated.
7
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