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Exhibit 99.3 - Unaudited Consolidated Financial Statements
PACIFIC DECISION SCIENCES
CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
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PACIFIC DECISION SCIENCES CORPORATION
AND SUBSIDIARIES
CONTENTS
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Unaudited Consolidated Financial Statements
Page
Consolidated Balance Sheet 1
Consolidated Statements of Income and Retained Earnings 2
Consolidated Statement of Cash Flows 3
Notes to Consolidated Financial Statements 4
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<TABLE>
PACIFIC DECISION SCIENCES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<CAPTION>
SEPTEMBER 30, 2000
(UNAUDITED)
ASSETS
<S> <C>
CURRENT ASSETS
Cash and cash equivalents $2,355,474
Accounts receivable 2,989,842
Inventory 312,976
Deferred income tax asset 116,800
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TOTAL CURRENT ASSETS 5,775,092
EQUIPMENT AND LEASEHOLD IMPROVEMENTS, NET 127,971
OTHER ASSETS 283,244
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$6,186,307
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 465,655
Income taxes payable 34,145
Deferred income tax liability 1,582,780
Deferred revenue 184,099
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TOTAL CURRENT LIABILITIES 2,266,679
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STOCKHOLDERS' EQUITY
Common stock:
Authorized,10,000,000 shares of no par value;
5,719,500 shares issued and outstanding 202,000
Retained earnings 3,717,628
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TOTAL STOCKHOLDERS' EQUITY 3,919,628
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$6,186,307
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</TABLE>
See the accompanying notes to consolidated financial statements.
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PACIFIC DECISION SCIENCES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
<CAPTION>
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000
(UNAUDITED)
CONSOLIDATED STATEMENT OF INCOME
<S> <C>
SALES $1,803,071
COST OF SALES 493,992
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GROSS PROFIT 1,309,079
OPERATING EXPENSES 1,106,000
OTHER INCOME 31,723
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INCOME BEFORE PROVISION FOR INCOME TAXES 234,802
PROVISION FOR INCOME TAXES (NOTE 4) 116,198
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NET INCOME $ 118,604
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<CAPTION>
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
<S> <C>
BALANCE - BEGINNING OF PERIOD $3,599,024
NET INCOME 118,604
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BALANCE - END OF PERIOD $3,717,628
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</TABLE>
See the accompanying notes to consolidated financial statements.
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<TABLE>
PACIFIC DECISION SCIENCES CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
<CAPTION>
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000
(UNAUDITED)
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 118,604
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation 6,644
Change in assets and liabilities:
Decrease in accounts receivable 986,235
Decrease in refundable income taxes 89,400
Increase in accounts payable and accrued expenses 267,348
Increase in income taxes payable 34,145
Decrease in deferred income taxes (7,020)
Decrease in deferred revenue (141,704)
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CASH FLOWS PROVIDED BY OPERATING ACTIVITIES 1,353,652
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for software development (283,244)
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INCREASE IN CASH AND CASH EQUIVALENTS 1,070,408
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 1,285,066
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CASH AND CASH EQUIVALENTS - END OF PERIOD $2,355,474
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Income taxes paid $ 5,667
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</TABLE>
See the accompanying notes to consolidated financial statements.
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PACIFIC DECISION SCIENCES CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of
Pacific Decision Sciences Corporation ("PDSC") as of September 30,
2000 and for the three months then ended 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 PDSC'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
September 30, 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
statement and related notes thereto for the year ended June 30,
2000.
2. PRINCIPLES OF CONSOLIDATION
The financial statements include the accounts of PDSC and its
wholly owned subsidiaries. All material intercompany balances and
transactions have been eliminated.
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