<PAGE> 1
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: JUNE 30, 1996
OR
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 0-26496
CYBEX COMPUTER PRODUCTS CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
ALABAMA 63-0801728
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
4912 RESEARCH DRIVE
HUNTSVILLE, ALABAMA 35805
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(205) 430-4000
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS TO
BE FILED BY SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING
THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT 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 12, 1996, 5,504,383 SHARES OF THE REGISTRANT'S COMMON STOCK
$.001 PAR VALUE, WERE OUTSTANDING.
<PAGE> 2
CYBEX COMPUTER PRODUCTS CORPORATION
FORM 10-Q
JUNE 30, 1996
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
Part I - FINANCIAL INFORMATION NUMBER
------
<S> <C>
Item 1. Financial Statements:
Condensed Consolidated Balance Sheets as of March 31, 1996 and
June 30, 1996 3
Condensed Consolidated Statements of Income for the three
months ended June 30, 1995 and 1996 4
Condensed Consolidated Statements of Cash Flows for the three
months ended June 30, 1995 and 1996. 5
Notes to Condensed Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 8
Part II - OTHER INFORMATION
Item 6. Exhibits 12
SIGNATURES 13
INDEX OF EXHIBITS 14
</TABLE>
2
<PAGE> 3
ITEM 1. FINANCIAL STATEMENTS
CYBEX COMPUTER PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
MARCH 31, JUNE 30,
1996 1996
----------- -----------
ASSETS (UNAUDITED)
<S> <C> <C>
Current assets:
Cash and cash equivalents.............................................. $ 862,878 $ 8,330,516
Short-term investments ................................................ 36,907,899 24,938,909
Accounts receivable- trade, less allowance for doubtful accounts
of $131,383 and $137,000, respectively .............................. 4,276,640 4,433,637
Other receivables .................................................... 15,103 60,648
Income tax receivable ................................................ 118,651 3,100
Inventories .......................................................... 3,487,043 2,933,457
Prepaid expenses ..................................................... 43,926 48,654
Deferred income taxes ................................................ 393,639 393,639
----------- -----------
Total current assets ...................................... 46,105,779 41,142,560
Investments ............................................................. --- 1,117,930
Property and equipment, net of accumulated depreciation ................. 1,109,918 1,766,043
Other assets ........................................................... 202,065 213,142
----------- -----------
$47,417,762 $44,239,675
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Note payable ......................................................... $ 5,000,000 $ ----
Accounts payable....................................................... 962,867 936,477
Accrued salaries and bonuses .......................................... 515,726 439,140
Income taxes payable ................................................. ---- 584,449
Liability for sales and warranty returns .............................. 200,000 214,000
Other current liabilities ............................................. 33,124 129,207
----------- -----------
Total current liabilities ................................. 6,711,717 2,303,273
Deferred income taxes ................................................... 85,024 85,024
----------- -----------
Total liabilities ......................................... 6,796,741 2,388,297
Shareholders' equity:
Preferred stock, par value $.001 per share; 5,000,000 shares
authorized; no shares issued ........................................
Common stock, par value $.001 per share; 25,000,000 shares
authorized; March 31, 1996 -- 6,068,008 shares issued,
5,504,383 shares outstanding; June 30, 1996 -- 6,068,008
shares issued, 5,504,383 shares outstanding .......................... 6,069 6,069
Additional paid in capital ............................................. 34,079,719 34,079,719
Retained earnings ..................................................... 10,370,114 11,600,471
Treasury stock, at cost; 563,625 shares ................................ (3,834,881) (3,834,881)
----------- -----------
Total shareholders' equity ............................. 40,621,021 41,851,378
----------- -----------
$47,417,762 $44,239,675
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
3
<PAGE> 4
CYBEX COMPUTER PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30,
1995 1996
---- ----
<S> <C> <C>
Net sales .......................................................................... $5,653,460 $7,427,913
Cost of sales ...................................................................... 2,484,728 3,486,579
---------- ----------
Gross profit ................................................................... 3,168,732 3,941,334
Research and development expenses ................................................... 361,740 522,486
Selling, general and administrative expenses ........................................ 1,457,926 1,875,794
---------- ----------
Operating income ............................................................... 1,349,066 1,543,054
Other income ....................................................................... 15,656 387,303
---------- ----------
Income before provision for income taxes 1,364,722 1,930,357
Provision for income taxes ........................................................ 493,055 700,000
---------- ----------
Net income ....................................................................... $ 871,667 $1,230,357
========== ==========
Net income per common and common
equivalent share .................................................................. $ .24 $ .22
========== ==========
Weighted average common and common
equivalent shares outstanding ................................................... 3,699,767 5,620,962
========== ==========
</TABLE>
See notes to condensed consolidated financial statements
4
<PAGE> 5
CYBEX COMPUTER PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30,
1995 1996
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income ....................................................................... $ 871,667 $ 1,230,357
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation ................................................................... 49,641 70,375
Amortization of discount on investments ........................................ (10,888) (311,158)
Provision for losses on accounts receivable .................................... 13,116 5,617
Deferred income taxes .......................................................... (22,589) --
Changes in operating assets and liabilities:
Accounts receivable- trade ... ................................................ (269,351) (162,614)
Inventories ................................................................... (722,996) 553,586
Prepaid expenses and other assets ............................................ (56,064) (61,351)
Accounts payable ............................................................. (509,854) (26,390)
Accrued expenses and other liabilities ....................................... 225,938 33,497
Income taxes payable /receivable ............................................. 503,144 700,000
--------- ------------
Net cash provided by operating activities 71,764 2,031,919
Cash flows from investing activities:
Purchases of property and equipment .............................................. (87,673) (726,500)
Purchases of investments available for sale ...................................... (11,636,297)
Proceeds from maturities of investments .......................................... 265,000 22,798,516
--------- ------------
Net cash provided by investing activities ....................................... 177,327 10,435,719
Cash flows from financing activities:
Borrowings from line of credit ................................................... 500,000
Repayments of line of credit ..................................................... (500,000)
Repayment of note payable ........................................................ ---- (5,000,000)
Purchase of treasury stock ....................................................... 493,000
--------- ------------
Net cash provided by (used in) financing activities ............................. 493,000 (5,000,000)
--------- ------------
Net increase in cash and cash equivalents ....................................... 742,091 7,467,638
Cash and cash equivalents, beginning of period ..................................... 202,817 862,878
--------- ------------
Cash and cash equivalents, end of period ........................................... $ 944,908 $ 8,330,516
========= ============
Supplemental disclosure of cash flow information:
Cash paid during the period for interest ......................................... $ 1,975 $ 3,500
========= ============
Cash paid during the period for income taxes ..................................... $ 12,500 $ --
========= ============
</TABLE>
See notes to condensed consolidated financial statements
5
<PAGE> 6
CYBEX COMPUTER PRODUCTS CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements
of Cybex Computer Products Corporation (the Company) have been prepared by
management in accordance with generally accepted accounting principles for
interim financial information and in conjunction with the rules and regulations
of the Securities and Exchange Commission. In the opinion of management, all
adjustments necessary for a fair presentation of the interim consolidated
financial statements have been included, and all adjustments are of a normal and
recurring nature. The consolidated financial statements as of and for the
interim period ended June 30, 1996 should be read in conjunction with the
Company's consolidated financial statements as of and for the year ended March
31, 1996 included in the Company's Form 10-K filed June 27, 1996. Operating
results for the three months ended June 30, 1996 are not necessarily indicative
of the results that may be expected for the year ended March 31, 1997. The
March 31, 1996 balance sheet data presented herein was derived from audited
financial statements but does not include all disclosures required by generally
accepted accounting principles.
2. INVENTORIES
At March 31, 1996 and June 30, 1996, inventories consisted of the
following:
<TABLE>
<CAPTION>
March 31, June 30,
1996 1996
----------- -----------
<S> <C> <C>
Raw materials ...................................................... $ 2,035,335 $ 1,927,003
Work in process .................................................... 903,883 531,520
Finished goods ..................................................... 547,825 474,934
----------- -----------
$ 3,487,043 $ 2,933,457
=========== ===========
</TABLE>
3. EUROPEAN FACILITY
In June 1996, the Company announced that it selected Shannon, Ireland
for its European distribution and manufacturing facility. The Company has
reached an agreement in principle with The Shannon Development Authority for
facilities which will be located in the Shannon Free Trade Zone (SFTZ). The
definitive agreement is subject to final negotiations and execution. The
Shannon Facility should be operational during the Company's third quarter of
Fiscal year 1997.
In July, 1996, the Company signed an agreement to lease a 12,500
square foot temporary facility in the SFTZ. The agreement is a month to month
lease for a maximum period of twelve months. The agreement is subject to the
signing of a long term lease for another facility located in the SFTZ. The
specifications and terms of the additional lease are subject to further
negotiation. The Company will vacate the temporary facility once the
replacement facility is available for occupancy.
6
<PAGE> 7
4. LINE OF CREDIT
The Company renegotiated its line of credit on July 2, 1996, to
provide borrowings of up to $2.5 million at the bank's prime rate. The line of
credit expires July 1, 1997. There were no borrowings outstanding under the
Company's line of credit as of June 30, 1996.
7
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion of the results of operations and financial
condition of the Company should be read in conjunction with the Company's
Consolidated Financial Statements and Notes thereto included in the Company's
form 10-K for year ended March 31, 1996 filed on June 27, 1996.
GENERAL
The Company develops, produces and markets keyboard, video monitor and
mouse ("KVM") switch and extension products for use in the computer industry.
The Company's KVM switch products ("KVM Switch Products"), the first of which
was introduced in 1989, provide up to four users, each with a separate
keyboard, video monitor and mouse, with the capability to control up to 2000
personal computers ("PCs"), thereby eliminating the need for individual
keyboards, video monitors or mice for the controlled PCs. Elimination of
separate keyboards, video monitors and mice can provide significant cost
reduction (lower initial investment and ongoing utility costs) and space
savings as well as more efficient technical support capabilities. The
Company's KVM Switch Products allow users to control IBM-compatible, Macintosh
and Sun computers and certain Hewlett Packard, Digital Equipment, IBM, and
Silicon Graphics computers functioning either as stand-alone systems or as
file, communications or print servers ("Servers") operating within a local area
network ("LAN"). The Company's latest product introduction adds the increased
capability of remote access and control of up to 256 computers or servers over
ordinary telephone lines. The Company's KVM Switch Products are particularly
useful in networking environments where multiple computers are dedicated as
Servers and in situations where multiple computers need to be controlled from
one location to facilitate network management.
The Company's family of KVM extension products ("KVM Extension Products"),
the first of which was introduced in 1987, allow users to separate the
keyboard, video monitor and mouse up to 600 feet from the PC. In addition,
certain KVM Extension Products allow multiple users shared access to the same
PC from different keyboards, video monitors and mice. A new addition to the
KVM Extension Products introduced in the third quarter of Fiscal 1996 utilizes
standard Category 5 UTP cabling which is the most common cable used in PC
networks, either installed or for planned installations. KVM Extension
Products are particularly useful in congested work areas or where working
conditions may be hazardous to the function of the computer.
The Company's net sales have increased in each fiscal year due primarily to
increases in the number of units sold to both new and existing customers. These
annual net sales increases reflect the Company's strategy of increasing unit
volume and market share through the introduction of new products and through
the introduction of increasingly enhanced generations of already accepted
products, which have increased functionality and yet are price competitive as
compared to prior generations of the Company's products and to the products of
competitors. As a part of this strategy, the Company seeks to be price
competitive and to be the high quality provider of products in its markets.
This strategy has enabled the Company to sell succeeding generations of
products to existing customers as well as to increase its market share by
selling products to new customers as part of this strategy.
The Company contracts with third parties to provide completed subassemblies
of its products. The Company has recently begun a program of outsourcing the
entire product (turnkey) for certain stable high volume products. The Company
believes that outsourcing manufacturing generally enables the Company to
control product costs more effectively.
The Company continually evaluates new product opportunities and engages in
substantial research and product development efforts. The Company expenses all
product research and development costs as incurred. Additionally, the Company
also incurs substantial expenses related to advertising and participation in
trade shows.
Another important part of the Company's strategy is to emphasize customer
service and support. The Company offers a 30-day money back guarantee for all
of its products and a one year warranty on parts. To date, the Company has not
incurred significant sales and warranty returns expense. The Company also
offers sales discounts to its
8
<PAGE> 9
customers based on the level of sales to the customers. Such discounts have
historically not had a significant impact on the Company's results of
operations.
The Company believes that increasing its international sales will be an
important aspect of future revenue growth. International sales comprised 22.8%
of the Company's total sales for the three months ended June 30, 1996, and
20.4% and 15.4% of the Company's total sales in Fiscal 1996 and Fiscal 1995,
respectively. All international sales are made in U.S. dollars.
In June, 1996, the Company announced that it selected Shannon, Ireland for
its European distribution and manufacturing facility. The Company has reached
an agreement in principle with The Shannon Development Authority for facilities
which will be located in the Shannon Free Trade Zone (SFTZ). The definitive
agreement is subject to final negotiations and execution. The Shannon Facility
should be operational during the Company's third quarter of Fiscal year 1997.
RESULTS OF OPERATIONS
The following table presents selected financial information derived from
the Company's statements of income expressed as a percentage of net sales for
the quarters ended indicated:
<TABLE>
<CAPTION>
THREE MONTHS
ENDED JUNE 30,
--------------
1995 1996
---- ----
<S> <C> <C>
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100.0% 100.0%
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.0 46.9
----- -----
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56.0 53.1
Research and development expenses . . . . . . . . . . . . . . . . . . . . . . . . 6.4 7.0
Selling, general and administrative expenses . . . . . . . . . . . . . . . . . . 25.8 25.3
----- -----
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.8 20.8
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.3 5.2
----- -----
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.1 26.0
Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.7 9.4
----- -----
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.4% 16.6%
===== =====
</TABLE>
Three Months Ended June 30, 1996 Compared to the Three Months Ended June 30,
1995
Net sales increased 31.4% to $7.4 million in the three months ended June
30, 1996 from $5.7 million in the three months ended June 30, 1995. The net
sales increase resulted from increased sales volume to existing customers and
from an increase in sales volume to new customers of the Company's KVM Switch
Products. Sales of KVM Switch Products increased 36.6% to $6.0 million in the
three months ended June 30, 1996 from $4.4 million in the three months ended
June 30, 1995.
Sales of KVM Extension Products increased 19.4% to $1.2 million in the
three months ended June 30, 1996 from $1.0 million in the three months ended
June 30, 1995. The increased sales volume resulted primarily from sales of the
Keyview, Snap and Phoneboot/Reboot products, which had no sales during the
first quarter of Fiscal year 1996.
As a percentage of net sales, the Company's KVM Switch Products increased
to 80.3% from 77.2% and KVM Extension Products declined to 16.7% from 18.4%
during the same period in fiscal 1996. Management anticipates that sales of
KVM Extension Products will continue to be a substantial portion of the
Company's net sales. International sales increased 72.1% to $1.7 million in
the three months ended June 30, 1996 from $1.0 million in the three months
ended June 30, 1995.
Gross profit increased 24.4% to $3.9 million in the three months ended June
30, 1996, from $3.2 million in the three months ended June 30, 1995. Gross
profit as a percentage of net sales declined to 53.1% from 56.0% during
9
<PAGE> 10
the same period in fiscal 1996. This decrease reflects an overall increased
sales volume of newer KVM Switch Products, which yield overall lower margins
than the more mature products.
Selling, general and administrative (S G & A) expenses increased 28.7% to
$1.9 million (25.3% of net sales) in the three months ended June 30, 1996, from
$1.5 million (25.8% of net sales) in the three months ended June 30, 1995.
This increase in dollars spent reflects the increased level of expenditures in
administration, sales, customer support, advertising, and marketing activities
required to support the Company's expanded sales base. Management anticipates
that the dollar amount of selling, general and administrative expense will
continue to increase, however, the anticipated expanding sales volume should
cause the expenses to remain relatively constant as a percentage of net sales.
Research and development expense was $.5 million or 7.0% of net sales in
the three months ended June 30, 1996, as compared to $.4 million or 6.4% of net
sales in the three months ended June 30, 1995. Management anticipates that the
dollar amount of research and development expenses will increase but will
remain relatively constant as a percentage of net sales.
As a result of the factors discussed above, operating income increased
14.4% to $1.5 million (20.8% of net sales) in the three months ended June 30,
1996, from $1.3 million (23.8% of net sales) in the three months ended June 30,
1995.
Other income amounted to $.4 million (5.2% of net sales) in the three
months ended June 30, 1996. This amount related primarily to interest income
from the investment of the proceeds from the Company's initial public offering
completed July 28, 1995.
Net income increased 41.1% to $1.2 million (16.6% of net sales) in the
three months ended June 30, 1996, from $.9 million (15.4% of net sales) in the
three months ended June 30, 1995, as a result of the factors discussed above.
LIQUIDITY AND CAPITAL RESOURCES
Prior to its initial public offering in July 1995, the Company financed
its operations primarily through cash flow from operations, supplemented with
borrowings under its line of credit as needed. As of June 30, 1996, the
Company had an available line of credit of $1.85 million with no outstanding
borrowings. The Company renegotiated an increase in the line of credit as of
July 2, 1996, to $2.5 million at the bank's prime rate.
The Company's working capital position improved from $39,394,062 as of
March 31, 1996 to $39,957,217 as of June 30, 1996 (adjusted to include
$1,117,930 of long term-investments). This improvement in the Company's
working capital position was due primarily to increased earnings during the
quarter ended June 30, 1996.
Cash provided from operating activities increased from approximately
$72,000 for the three months ended June 30, 1995 to $2.0 million for the three
months ended June 30, 1996. This increase was caused primarily by an increase
in net income, an increase in accounts payable, although at a decreasing rate,
and by the cumulative effect of the change in inventory from a substantial
increase for the three months ended June 30, 1995, to a substantial decrease in
inventory for the three months ended June 30, 1996. The change was attributed
primarily to increased sales levels depleting inventory combined with an
increase in the level of turnkey products, which reduced the level of raw
components needed for production. The change in accounts payable between the
quarters was attributed primarily to the timing of payments.
There were capital expenditures totaling $.7 million in the first three
months of Fiscal 1997. The Company purchased over 14 acres of land for
approximately $600,000. The remaining amount was used to purchase equipment
for the Company.
10
<PAGE> 11
In July, 1996, the Company signed an agreement to lease a 12,500 square
foot facility in the Shannon Free Trade Zone (SFTZ) in Ireland. The agreement
is a month to month lease for a maximum period of twelve months. The agreement
is subject to the signing of a long term lease for additional facilities
located in the SFTZ. The specifications and terms of the additional lease are
subject to further negotiation. The Company will vacate the temporary facility
once the additional facilities are available for occupancy.
The Company believes that its current financial position and existing cash
and investments along with earnings and amounts available under its line of
credit will be sufficient to meet the Company's cash requirements over the next
twelve months.
FINANCIAL ACCOUNTING DEVELOPMENTS
In 1995, Statement of Financial Accounting Standards No. 121, "Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to be
Disposed of" (SFAS 121) was issued. SFAS 121 requires that long-lived assets
and certain identifiable intangibles held and used by an entity be reviewed for
impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. SFAS 121 is effective for
fiscal years beginning after December 15, 1995. The Company believes that the
adoption of SFAS 121 will not have a material effect on the Company's financial
position or results from operations.
In 1995, Statement of Financial Accounting Standards No. 123, "Accounting
for Stock-Based Compensation" (SFAS 123) was issued. SFAS 123 requires the
Company to either account for the estimated fair value of stock options granted
as compensation expense or continue to account for them under the present
rules. If the Company chooses to continue to account for stock options granted
under present rules, as the Company believes is likely, disclosure will be
required of the compensation expense. SFAS 123 is effective for fiscal years
beginning after December 15, 1995. The Company believes that the adoption of
SFAS 123 will not have a material effect on the Company's financial position or
results from operations.
FORWARD LOOKING STATEMENTS
When used in this Form 10-Q , the words "believe," "anticipate," "think,"
"intend," "will be," and similar expressions identify forward looking
statements. Such statements are subject to certain risks and uncertainties
which could cause actual results to differ materially from those projected.
Readers are cautioned not to place undue reliance on these forward looking
statements which speak only as of the date hereof. Readers are also urged to
carefully review and consider the various disclosures made by the Company which
attempt to advise interested parties of the factors which affect the Company's
business, including the disclosures made in other periodic reports on Forms
10-K, 10-Q and 8K filed with the Securities and Exchange Commission.
11
<PAGE> 12
PART II - OTHER INFORMATION
Item 6. Exhibits
(a) The following exhibits are being filed with this report:
Exhibit No. Description
----------- -----------
11 Statement Regarding Computation of Per Share
Earnings
27 Financial Data Schedule (for SEC use only)
12
<PAGE> 13
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
CYBEX COMPUTER PRODUCTS CORPORATION
/s/ Doyle C. Weeks
-----------------------------------
Doyle C. Weeks
Senior Vice President - Finance and
Chief Financial Officer and Treasurer
Date: August 12, 1996
13
<PAGE> 14
INDEX OF EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION PAGE NO.
- ----------- ----------- --------
<S> <C> <C>
11 Statement Regarding Computation of Per Share Earnings 15
27 Financial Data Schedule (for SEC use only) 16
</TABLE>
14
<PAGE> 1
EXHIBIT 11
CYBEX COMPUTER PRODUCTS CORPORATION
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30,
1995 1996
---- ----
<S> <C> <C>
Weighted average common shares outstanding ................................... 3,161,802 5,504,383
Net weighted average common stock options
outstanding under the treasury stock method ................................ 537,965 116,579
---------- ----------
Weighted average common and common
equivalent shares outstanding ............................................. 3,699,767 5,620,962
========== ==========
Net income ................................................................... $ 871,567 $1,230,357
========== ==========
Net income per common and common
equivalent share .......................................................... $ .24 $ .22
========== ==========
</TABLE>
Note: All share and per share amounts give retroactive effect to the 2.25 to 1
stock split as described in Note 4 of the Consolidated Financial Statements
included in the Company's form 10-K dated June 27, 1996.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF CYBEX COMPUTER PRODUCTS CORPORATION FOR THE THREE MONTHS
ENDED JUNE 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 8,330,516
<SECURITIES> 26,056,839
<RECEIVABLES> 4,570,637
<ALLOWANCES> 137,000
<INVENTORY> 2,933,457
<CURRENT-ASSETS> 41,142,560
<PP&E> 2,366,004
<DEPRECIATION> 599,961
<TOTAL-ASSETS> 44,239,675
<CURRENT-LIABILITIES> 2,303,273
<BONDS> 0
0
0
<COMMON> 6,069
<OTHER-SE> 45,680,190
<TOTAL-LIABILITY-AND-EQUITY> 44,239,675
<SALES> 7,427,913
<TOTAL-REVENUES> 7,427,913
<CGS> 3,486,579
<TOTAL-COSTS> 3,486,579
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 5,617
<INTEREST-EXPENSE> 3,500
<INCOME-PRETAX> 1,930,357
<INCOME-TAX> 700,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,230,357
<EPS-PRIMARY> 0.22
<EPS-DILUTED> 0.22
</TABLE>
