UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the Fiscal Quarter Ended March 29, 1997, 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: 0-26620
ACCOM, INC.
(Exact name of registrant as specified in its charter)
Delaware 94-3055907
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
1490 O'Brien Drive
Menlo Park, California 94025
(Address of principal executive offices)
Registrant's telephone number, including area code:
(415) 328-3818
Indicate by check mark whether the registrant (1) has filed all reports required
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 the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for at least the past 90 days.
Yes X No
------ ------
As of May 1, 1997 6,593,325 shares of the Registrant's common stock
$0.001 par value, were outstanding.
<PAGE>
<TABLE>
ACCOM, INC.
FORM 10-Q For the Quarter Ended March 29,1997
INDEX
<CAPTION>
Page
----
<S> <C> <C>
Facing sheet 1
Index 2
Part I. Financial Information
Item 1. a) Condensed consolidated balance sheets at March 29, 1997 and September 30, 1996 3
b) Condensed consolidated statements of operations for the three months ended
March 29, 1997 and March 31, 1996 and for the six months ended March 29, 1997 and 4
March 31, 1996
c) Condensed consolidated statements of cash flows for the six months ended March 29, 5
1997 and March 31, 1996
d) Notes to condensed consolidated financial statements 6
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7
Part II. Other Information 12
Signature 13
Exhibit 11.1 14
Statement re computation of net loss per share
Exhibit 27.1 15
Financial Data Schedule (EDGAR version only)
</TABLE>
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<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ACCOM, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
<CAPTION>
March 29, September 30,
1997 1996
-------- --------
(Unaudited) (Note)
<S> <C> <C>
Assets
Current assets
Cash and cash equivalents $ 4,483 $ 4,221
Accounts receivable, net 3,337 4,714
Inventories 1,651 5,447
Deferred tax assets 695 695
Prepaid expenses and other current assets 338 377
-------- --------
Total current assets 10,504 15,454
Property and equipment, net 762 1,683
Other assets 149 142
-------- --------
$ 11,415 $ 17,279
======== ========
Liabilities and Stockholders' Equity
Current Liabilities:
Notes payable $ 53 $ 58
Accounts payable 1,077 2,242
Accrued liabilities 1,825 1,455
Deferred revenue 183 528
-------- --------
Total Current Liabilities 3,138 4,283
Note payable - noncurrent -- 24
Deferred tax liabilities 20 20
Commitments
Stockholders' Equity:
Preferred stock, $0.001 par value; 2,000,000 shares authorized; -- --
no shares issued and outstanding
Common stock, $0.001 par value; 20,233,497 shares authorized;
6,586,158 and 6,493,734 shares issued and outstanding on March 29, 1997 7 7
and September 30, 1996, respectively
Additional paid-in capital 21,377 21,317
Retained earnings (accumulated deficit) (13,127) (8,372)
-------- --------
Total Stockholders' Equity 8,257 12,952
-------- --------
$ 11,415 $ 17,279
======== ========
<FN>
Note: The balance sheet at September 30, 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 notes to condensed consolidated financial statements.
</FN>
</TABLE>
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<PAGE>
<TABLE>
ACCOM, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Unaudited
<CAPTION>
Three months ended Six months ended
March 29 March 31, March 29, March 31,
1997 1996 1997 1996
-------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net sales $4,234 $5,191 $8,450 $10,734
Cost of sales 2,193 2,453 6,869 5,064
------------------------------------------------------------------
Gross margin 2,041 2,738 1,581 5,670
Operating expenses:
Research and development 839 1,072 1,637 2,015
Marketing and sales 1,175 1,623 3,441 3,165
General and administrative 334 382 1,330 671
------------------------------------------------------------------
Total operating expenses 2,348 3,077 6,408 5,851
------------------------------------------------------------------
Operating loss (307) (339) (4,827) (181)
Interest income 38 59 74 135
Interest expense (2) (3) (4) (6)
Other expense 13 (6) 2 (19)
------------------------------------------------------------------
Loss before income taxes (258) (289) (4,755) (71)
Provision for income taxes -- (102) (25)
------------------------------------------------------------------
Net loss $(258) $(187) ($4,755) ($46)
==================================================================
Net loss per share $(0.04) $(0.03) ($0.72) ($0.01)
Shares used in computation of net loss per 6,579 6,419 6,570 6,412
share
<FN>
See notes to condensed consolidated financial statements.
</FN>
</TABLE>
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<PAGE>
<TABLE>
ACCOM, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Unaudited
<CAPTION>
Six months ended
-----------------------------
March 29, March 31,
1997 1996
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (4,755) $ (46)
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:
Depreciation 330 354
Change in valuation reserve for fixed assets 2,433 --
Changes in operating assets and liabilities
Accounts receivable 1,127 (1,015)
Inventories 1,295 (409)
Write-off of inventories reserved in Q1 1997 772 --
Prepaid expenses and other current assets 40 (31)
Note payable (5)
Accounts payable (1,164) 515
Accrued compensation 92 (2)
Other accrued liabilities (175) (504)
Accrual for streamlining operations in Q1 1997 39 --
Income taxes payable -- (25)
Customer deposits (42) 7
Deferred revenue (345) (96)
-------- --------
Net cash used in operating activities (358) (1,252)
-------- --------
Cash flows from investing activities:
Expenditures for property and equipment (161) (339)
Write-off of property and equipment reserved in Q1 1997 751
Purchase of short-term investments -- (27,853)
Sale of short-term investments -- 22,745
Increase (decrease) in other assets (6) (88)
-------- --------
Net cash used in investing activities 584 (5,535)
-------- --------
Cash flows from financing activities:
Repayments on notes payable (24) (30)
Issuance of common stock 61 104
Payment of accrued initial public offering costs -- (821)
-------- --------
Net cash provided by (used in) financing activities 36 (747)
-------- --------
-------- --------
Net increase (decrease) in cash and cash equivalents 262 (7,534)
Cash and cash equivalents at beginning of period 4,221 8,769
-------- --------
Cash and cash equivalents at end of period $ 4,483 $ 1,235
======== ========
Supplemental disclosure of cash flow information
Interest paid $ 1 $ 6
======== ========
Income taxes paid $ -- $ 1
======== ========
Supplemental disclosure of noncash investing and financing activities
Accrued acquisition costs $ 2 $ 66
======== ========
<FN>
See accompanying notes.
</FN>
</TABLE>
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<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Unaudited
Note 1. Summary of Significant Accounting Policies
Basis of Preparation
The condensed consolidated balance sheet as of March 29, 1997, and the
condensed consolidated statements of income and cash flows for the three and
six-month periods ended March 29, 1997, and March 31, 1996 have been prepared by
the Company, and have not been audited. In the opinion of management, all
adjustments (consisting of normal accruals) necessary to present fairly the
financial position, results of operations, and cash flows at March 29, 1997, and
for all periods presented, have been made. The financial data should be reviewed
in conjunction with the audited financial statements and notes thereto included
in the Company's Annual Report on Form 10-K for the fiscal year ended September
30, 1996. The results of operations for the three month period ended March 29,
1997, are not necessarily indicative of the operating results for the full 1997
fiscal year.
Note 2. Short-Term Investments
The Company accounts for short-term investments in accordance with
Statement of Financial Accounting Standards No. 115 (FAS 115), "Accounting for
Certain Investments in Debt and Equity Securities."
All of the Company's short-term investments are designated as
available-for-sale and are carried at fair value, with unrealized gains and
losses reported as a separate component of stockholders' equity. Realized gains
and losses and declines in value judged to be other than temporary on
available-for-sale securities are included in interest income. Interest and
dividends on all securities are included in interest income.
Note 3. Inventories
Inventories consist of the following (In thousands):
March 29, September 30,
1997 1996
----------------------- -----------------------
Purchased parts and materials $ 202 $ 1,105
Work-in-progress 536 1,842
Finished goods 241 440
Demonstration inventory 672 2,060
----------------------- -----------------------
$1,651 $ 5,447
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<PAGE>
Note 4. Earnings Per Share
In February 1997, the Financial Accounting Standards Board issued
Statement No. 128, Earnings Per Share, which is required to be adopted on
December 31, 1997. At that time, the Company will be required to change the
method currently used to compute loss per share and to restate all prior
periods. Under the new requirements for calculating primary earnings per share,
the dilutive effect of common stock equivalents will be excluded. As a result of
the antidilutive effect of common stock equivalent shares, the impact on the
calculation of primary and fully diluted earnings per share is not expected to
be material.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
The following discussion should be read in conjunction with the
unaudited consolidated financial statements and notes thereto included in Part
I--Item 1 of this Quarterly Report. Except for that disclosure that reports the
Company's historical results, the statements set forth in this section are
forward looking statements. Actual results could differ materially from those
projected in the forward looking statements due to a number of factors,
including uncertainty as to development and market acceptance of the Company's
ELSET Virtual Set product and other products; dependence on Silicon Graphics,
Inc.; rapid technological change in the Company's industry; and the need for new
product development. Additional information concerning these and other factors
that could cause actual results to differ materially from those in the forward
looking statements is contained under the heading "Other Factors That May Affect
Future Results" commencing on page 16 of the Company's Annual Report on Form
10-K for the Fiscal Year Ended September 30, 1996.
Overview
Accom designs, manufactures, markets and supports digital video systems
for the high-end production, post-production and broadcast markets. The Company
was incorporated in December 1987 and began shipments of its digital signal
processing products in fiscal 1989. In November 1991, the Company merged with
Axial Systems Corporation ("Axial"), a developer of digital on-line editing
systems. The first shipments of the Company's Axial(R) 2020 Visual On-Line
Editing System ("Axial 2020") and RTD 4224 digital video disk recorder (the
"RTD") occurred in fiscal 1992. The first shipments of the Company's
Brontostore(TM) news graphics and clip server (the "Brontostore", renamed
"Axess" in April 1996) and the Company's lower cost Axial 2010 On-Line Editing
System ("Axial 2010") and WSD(R) Work Station Disk Recorder (the "WSD") occurred
in fiscal 1994. In January 1995, the Company began shipping the WSD(R)/XL Work
Station Disk Recorder ("WSD/XL") and in June 1996 began shipping the WSD(R)/XLS.
In September 1996 the Company began shipping the WSD(R)/Xtreme, a replacement
for the WSD(R)/XLS which has eight minutes of uncompressed digital video
storage.
In September 1995, the Company increased its ownership interest in
ELSET Electronic-Set GmbH, a German limited liability company ("ELSET GmbH"), to
100% for approximately $7.6 million in cash, funded with a portion of the
proceeds of the Company's initial public offering (the "ELSET Acquisition"). At
the April 1995 National Association of Broadcasters ("NAB") convention, the
Company introduced a prototype of the ELSET(TM) virtual set system (the "ELSET
Virtual Set"), which operates on a Silicon Graphics, Inc. ("SGI") Onyx(TM)
Reality Engine2 or OnyxTM Infinite Reality workstation (an "Onyx"). The Company
shipped its first ELSET Virtual Set in the second quarter of fiscal 1996.
The Company's gross margin has historically fluctuated from quarter to
quarter and declined on an annual basis. As the Company begins to resell the
Onyx as part of the ELSET Virtual Set, gross margins may decline. In the future,
gross margins will be dependent on the mix of higher and lower-priced products
and the percentage of sales made through direct and indirect distribution
channels.
The Company's revenues are currently derived primarily from product
sales. The Company generally recognizes revenue upon product shipment. If
significant obligations exist at the time of
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<PAGE>
shipment, revenue recognition is deferred until obligations are met. Beginning
in the second quarter of fiscal 1996 the Company's revenues included revenues
from licensing of ELSET software. In connection with sales of the ELSET Virtual
Set, revenues in the future may also include revenues from the resale of the
Onyx and revenues from maintenance and other services. Software development
costs are recorded in accordance with Statement of Financial Accounting
Standards No. 86. To date, the Company has expensed all of its software
development costs.
In the first quarter of fiscal 1997, the Company took a charge of
$3,995,000 to reserve for a reduction in value of certain inventory items,
accounts receivable and certain fixed assets as well as to accrue for expenses
to be incurred in streamlining operations. The charge was taken to reflect
changes in the support of existing products as well as future product
development.
Results of Operations
Quarters ended March 29, 1997 and March 31, 1996
Net Sales. The Company's net sales decreased by 18.4% to $4.23 million
in the second quarter of fiscal 1997 from $5.19 million in the second quarter of
fiscal 1996. The decrease in fiscal 1997 was primarily due to decreased
shipments of products sold into the post-production market. Shipments into the
post-production market decreased by $984,000. The decrease was partially offset
by slight increases in the shipment of other products. International sales
represented approximately 48.1% and 40.4% of the Company's sales during the
second quarter of fiscal 1997 and 1996, respectively. The increase in the
percentage of international sales resulted from a significant decrease in
domestic sales.
Cost of Sales. Gross margin was 48.2% and 52.7% in the second quarter
of fiscal 1997 and 1996, respectively. Gross margin decreased in the second
quarter of fiscal 1997 as a result of increased costs of manufacturing certain
disk based products as well as lower average selling price on certain older
products.
Research and Development. Research and development expenses decreased
by 21.7% to $839,000 in the second quarter of fiscal 1997 from $1.07 million in
the second quarter of fiscal 1996. The decrease in fiscal 1997 was due to
decreases in salaries and related overhead expenses, consultant expenses,
recruiting expenses, and expenses relating to certifying equipment for
regulatory compliance. Research and development expenses as a percentage of net
sales were 19.8% and 20.7% in the second quarter of fiscal 1997 and 1996,
respectively.
Marketing and Sales. Marketing and sales expenses decreased by 27.6% to
$1.18 million in the second quarter of fiscal 1997 from $1.62 million in the
second quarter of fiscal 1996. The decrease in fiscal 1997 was primarily due to
decreases in salaries and related overhead expenses, depreciation, trade show
and promotional expenses, the closing of one field sales office and a reduction
in staffing in another sales office. Marketing and sales expenses as a
percentage of net sales were 27.8% and 31.3% in the second quarter of fiscal
1997 and 1996, respectively.
General and Administrative. General and administrative expenses
decreased by 12.5% to $334,000 in the second quarter of fiscal 1997 from
$382,000 in the second quarter of fiscal 1996. The decrease in fiscal 1997 was
primarily due to decreases in salaries and payroll taxes and the provision for
bad debt. The decrease was partially offset by increases in legal and accounting
fees. General and administrative expenses as a percentage of net sales were 7.9%
and 7.4% in the second quarter of fiscal 1997 and 1996, respectively.
Interest Income, Interest Expense, and Other (Expense). Interest income
decreased to $38,000 in the second quarter of fiscal 1997 from $59,000 in the
second quarter of fiscal 1996. The decrease was primarily due to a decrease in
cash and cash equivalents. Interest expense was essentially unchanged from
fiscal 1997 to fiscal 1996.
-8-
<PAGE>
Provision for Income Taxes. In accordance with FAS 109, the Company has
recognized no tax benefit from its loss for the period ended March 29, 1997. The
Company believes its existing deferred tax asset is realizable based on
recoverability of taxes previously paid. The Company's effective tax rate for
fiscal year 1996 was 35%, which was less than the applicable statutory rate
primarily due to benefits derived from the Company's foreign sales subsidiary.
Net Loss. The net loss increased to $258,000 in the second quarter of
fiscal 1997 on reduced sales and reduced spending from $187,000 in the second
quarter of fiscal 1996. The increase in the net loss was primarily due to the
absence of the income tax benefit that was present in the second quarter of
fiscal 1996. The net loss as a percentage of net sales was 6.1% and 3.6% in the
second quarters of fiscal 1997 and 1996, respectively.
Six Months ended March 29, 1997 and March 31, 1996
Net Sales. The Company's net sales decreased by 21.3% to $8.45 million
in the six months ended March 29, 1997 from $10.73 million for the same period
in fiscal 1996. The decrease in fiscal 1997 was primarily due to decreases in
shipments into the post-production and production markets. Shipments into the
post-production market decreased by $1.8 million; shipments into the production
market decreased by $718,000. International sales represented approximately
46.9% and 43.5% of the Company's sales during the first six months of fiscal
1997 and 1996, respectively. The increase in the percentage of international
sales in the first six months of fiscal 1997 was primarily due to a decrease in
domestic sales.
Cost of Sales. Gross margin was 18.7% and 52.8% in the first six months
of fiscal 1997 and 1996, respectively. During January 1997, the Company
developed plans with respect to future development, support and introduction of
certain products. As a result of these plans, reserves were provided for
inventory, accounts receivable and property and equipment. As part of these
reserves, inventory reserves totaling $2.5 million were included in the cost of
sales for the first quarter of fiscal 1997. Without this charge, gross margin
would have been 48.3% for the first six months of fiscal 1997; the decrease from
the first six months of fiscal 1996 was due to increased costs of manufacturing
certain disk based products and a lower average selling price on certain older
products..
Research and Development. Research and development expenses decreased
by 18.7% to $1.64 million in the first six months of fiscal 1997 from $2.0
million in the first six months of fiscal 1996. The decrease in fiscal 1997 was
primarily due to decreases in salaries and related overhead expenses, patent
legal fees, and consultant fees. Research and development expenses as a
percentage of net sales were 19.4% and 18.8% in the first six months of fiscal
1997 and 1996, respectively.
Marketing and Sales. Marketing and sales expenses increased by 8.72% to
$3.44 million in the first six months of fiscal 1997 from $3.17 million in the
first six months of fiscal 1996. As a result of the Company's decisions noted
above, a charge of $845,000 was incurred in the first quarter of fiscal 1997
related primarily to reserves against certain marketing and sales fixed assets.
Without this charge, marketing and sales expenses would have decreased by 18% to
$2.6 million. The decrease in fiscal 1997 was due primarily to decreases in
salaries and related overhead expenses, trade show and promotional expenses,
expenses related to refurbishment of demonstration equipment, and depreciation
expense. Marketing and sales expenses as a percentage of net sales were 40.7%
(30.7% without the charge) and 29.5% in the second quarter of fiscal 1997 and
1996, respectively.
General and Administrative. General and administrative expenses
increased by $660,000 to $1.33 million in the first six months of fiscal 1997
from $670,000 in the first six months of fiscal 1996. A $650,000 charge
primarily for streamlining operations, to reduce overhead and other costs as
well as to
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<PAGE>
increase the reserve for bad debt, was recorded in the first quarter of fiscal
1997. Without this charge, general and administrative expenses would have
increased by 1.47% to $680,000. The increase in fiscal 1997 was primarily due to
an increase in legal, accounting, and investor-related expenses. The increase
was partially offset by decreases in salaries and payroll taxes and license
fees. General and administrative expenses as a percentage of net sales were
15.7% (8.1% without the charge) and 6.3% in the second quarter of fiscal 1997
and 1996, respectively.
Interest Income, Interest Expense and Other (Expense). Interest income
decreased to $74,000 in the first six months of fiscal 1997 from $135,000 in the
first six months of fiscal 1996. The decrease was primarily due to a decrease in
cash and cash equivalents. Interest expense decreased slightly to $4,000 in the
first six months of fiscal 1997 from $6,000 in the first six months of fiscal
1996. The decrease was due to a decrease in debt.
Provision for Income Taxes. In accordance with FAS 109, the Company has
recognized no tax benefit from its loss for the period ended March 29, 1997. The
Company believes its existing deferred tax asset is realizable based on
recoverability of taxes previously paid. The Company's effective tax rate for
fiscal year 1996 was 35%, which was less than the applicable statutory rate
primarily due to benefits derived from the Company's foreign sales subsidiary.
Net Loss. The net loss increased to $4.75 million in the first six
months of fiscal 1997 on reduced sales and reduced spending from $46,000 in the
first six months of fiscal 1996. As a result of the Company's decisions noted
above, charges were incurred and reserves were provided totaling $4.0 million in
the first quarter of fiscal 1997. These charges and reserves related to
streamlining operations, reducing overhead, and setting up reserves for
inventory, accounts receivable, and fixed assets. Without these charges and
reserves, the net loss in the first six months of fiscal 1997 would have been
$760,000. The increase in the net loss was primarily due to a decrease in net
sales ($2.28 million), lower gross margins, and a decrease in interest income
($61,000) partially offset by a decrease in operating expenses ($938,000). The
net loss as a percentage of net sales was (56.3%), (9.0% without the charges),
and (0.4%) in the first six months of fiscal 1997 and 1996, respectively.
Liquidity and Capital Resources
As of March 29, 1997 the Company had $4.5 million of cash and cash
equivalents.
Operating activities used $358,000 in the first six months of fiscal 1997
and used $1,252,000 in the first six months of fiscal 1996. Net cash used in the
first six months of fiscal 1997 was due primarily to the net loss and to
decreases in accounts payable partially offset by decreases in inventory and
accounts receivable.
The Company has a revolving line of credit with Comerica Bank that allows
for borrowings of up to $4.0 million, subject to the level of accounts
receivable. As of March 29, 1997, the Company had no borrowings outstanding.
Indebtedness under the line of credit accrues interest at Comerica's base rate
and is secured by substantially all of the Company's assets. The line of credit
may be terminated by either party upon 30 days' notice. Borrowings under the
line of credit are subject to certain financial covenants. The Company is not
currently in compliance with these covenants and is in discussions with Comerica
to review the terms of the facility.
The Company believes that its existing cash, cash equivalents, will be
sufficient to meet its cash requirements for at least the next twelve months.
Although operating activities may provide cash in certain periods, to the extent
the Company grows in the future, its operating and investing
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<PAGE>
activities may use cash and, consequently, such growth may require the Company
to obtain additional sources of financing. There can be no assurance that any
necessary financing will be available to the Company on commercially reasonable
terms, or at all.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Not Applicable
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<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
On February 18, 1997, the Company held its annual meeting of
stockholders. At such meeting, the Company's stockholders approved the following
items by the following votes:
1. The Election of the following directors of the Company:
Nominee For Withheld
------- --- --------
Junaid Sheikh 5,856,291 6,203
Robert L. Wilson 5,856,491 6,003
Lionel M. Allan 5,856,491 6,003
Gary W. Kalbach 5,856,491 6,003
2. The ratification of the appointment of Ernst & Young LLP as
the Company's independent auditors for the fiscal year ending
September 30, 1997.
For 5,858,491 Against 4,000 Abstain 2,003
Note: Subsequent to the annual meeting, Gary W. Kalbach resigned from
the board of directors. To replace Mr. Kalbach as a director, on March 14, 1997,
the Company appointed Thomas E. Fanella to the Board of Directors. Mr. Fanella
is the President of KTEH Public Television Channel 54 in San Jose, California.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
11.1 Computation of net loss per share
27.1 Financial Data Schedule (EDGAR version only)
(b) Reports on Form 8-K.
None.
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<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ACCOM, INC.
By: /s/ Junaid Sheikh
---------------------------------------
Chief Executive Officer
Principal Financial Officer
By: /s/ James Cunniffe
---------------------------------------
Principal Accounting Officer
Date: May 12, 1997
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<TABLE>
EXHIBIT 11.1
ACCOM, INC.
STATEMENT RE COMPUTATION OF NET LOSS PER SHARE
(In thousands, except share data)
<CAPTION>
Three months ended Six months ended
------------------ ----------------
March 29, March 31, March 29, March 31,
1997 1996 1997 1996
------- ------- ------- -------
<S> <C> <C> <C> <C>
Primary and fully diluted:
Net Income $ (258) $ (187) $(4,755) $ (46)
======= ======= ======= =======
Shares used in Computation of Net Income Per Share(1)
Weighted average shares of common stock outstanding 6,579 6,419 6,570 6,412
------- ------- ------- -------
Net effect of dilutive stock options Preferred Stock
Shares used in net income per share computation 6,579 6,419 6,570 6,412
======= ======= ======= =======
Net income (loss) per share $ (0.04) $ (0.03) $ (0.72) $ (0.01)
======= ======= ======= =======
<FN>
(1) Conversion equivalent shares from stock options and convertible preferred stock are excluded from the computations as their
effect is anti-dilutive.
</FN>
</TABLE>
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> DEC-29-1996
<PERIOD-END> MAR-29-1997
<CASH> 4,483,000
<SECURITIES> 0
<RECEIVABLES> 3,732,000
<ALLOWANCES> (395,000)
<INVENTORY> 1,651,000
<CURRENT-ASSETS> 10,504,000
<PP&E> 2,642,000
<DEPRECIATION> (1,880,000)
<TOTAL-ASSETS> 11,415,000
<CURRENT-LIABILITIES> 3,138,000
<BONDS> 0
<COMMON> 7,000
0
0
<OTHER-SE> 8,250,000
<TOTAL-LIABILITY-AND-EQUITY> 11,415,000
<SALES> 4,234,000
<TOTAL-REVENUES> 4,234,000
<CGS> 2,193,000
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2,348,000
<LOSS-PROVISION> (307,000)
<INTEREST-EXPENSE> 49,000
<INCOME-PRETAX> (258,000)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (258,000)
<EPS-PRIMARY> (0.04)
<EPS-DILUTED> 0.00
</TABLE>
