SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended Commission File Number O-6421
March 31, 1998
SYNERGISTICS, INC.
MASSACHUSETTS 04-2283157
(State of Incorporation) (IRS Employer ID Number)
9 Tech Circle, Natick, MA 01760
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number,
including area code (508)655-1340
Securities registered pursuant to Section 12(g) of the Act.
Common Stock $0.01 Par Value
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 preceeding 12 months (or 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
There is no public market for, and thus no aggregate market value of
the registrants securities.
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the last practicable date.
Class Outstanding at April 30, 1998
Common Stock, one cent par value 9,557,561
NO DOCUMENTS INCORPORATED BY REFERENCE
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SYNERGISTICS, INC.
BALANCE SHEET
ASSETS
(UNAUDITED)
Mar 31 Dec 31
1998 1997
CURRENT ASSETS
Cash $ 82,917 $ 36,686
Accounts receivable 440,723 529,682
Allowance for doubtful accts (21,248) (20,000)
Inventories 323,774 335,088
Prepaid expenses 18,646 15,026
------- -------
TOTAL CURRENT ASSETS 844,812 896,482
EQUIPMENT, less allowances of $84,067
and $79,267 for depreciation 58,929 62,921
DEFERRED TAXES 817,776 817,776
--------- ---------
TOTAL ASSETS $1,721,517 $1,777,179
========== ==========
LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $206,997 $307,033
Accrued expenses and other current 62,774 56,779
Amount due stockholder 73,605 86,297
------- -------
TOTAL CURRENT LIABLITIES 343,376 450,109
STOCKHOLDERS' EQUITY
Common Stock (9,557,561 shares issued
including shares held in Treasury 95,576 95,576
Additional paid-in capital 6,799,637 6,799,637
Retained earnings (deficit) (5,509,937)(5,561,008)
1,385,276 1,334,205
Cost of Common Stock held in
Treasury (7,135) (7,135)
--------- ---------
1,378,141 1,327,070
TOTAL LIABILITIES. PREFERRED STOCK --------- ---------
AND SHAREHOLDERS' EQUITY $1,721,517 $1,777,179
========= =========
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SYNERGISTICS, INC.
STATEMENT OF OPERATIONS
PERIOD OF THREE MONTHS ENDED
MARCH 31, 1998 AND 1997
(UNAUDITED)
1998 1997
Sales $ 603,920 $ 469,309
Other income 66,414 3,133
------- -------
670,334 472,442
Costs and expenses:
Cost of sales 382,023 360,602
Selling, general and administrative 237,170 208,686
Interest expense 71 472
------- -------
619,264 569,760
------- -------
Net gain (loss) $ 51,070 $(97,318)
Gain (loss) per share of Common Stock
Assuming no dilution $0.01 ($0.01)
Assuming full dilution $0.01 ($0.01)
- -----------------------------------------------------------
SYNERGISTICS, INC.
STATEMENT OF CHANGES IN FINANCIAL POSITION
PERIODS OF THREE MONTHS MARCH 31, 1998 AND 1997
(UNAUDITED)
1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 51,070 $(97,318)
Adjustments to reconcile net loss to net
cash (used) provided by operating activities:
Depreciation 4,800 4,200
(Increase) decrease in accounts
receivable 90,207 160,677
(Increase) decrease in inventories 11,314 (60,361)
(Increase) decrease in prepaid expenses
and other assets (3,620) (11,889)
Increase (decrease) in accounts
payable (100,035) 7
Increase (decrease) in accrued expenses
and other current liabilities 5,995 150,788
Increase (decrease) in amounts due
shareholder (12,692) (13,750)
------- -------
TOTAL ADJUSTMENTS (4,031) 229,672
NET CASH USED BY OPERATING ACTIVITIES 47,039 132,354
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (808) 0
Stock issued 0 0
------- -----
NET CASH (USED) BY INVESTING ACTIVITIES (808) 0
------ -------
NET CHANGE IN CASH 46,231 132,354
------ -------
CASH AT BEGINNING OF YEAR 36,686 101,550
------ -------
CASH AT END OF PERIOD 82,917 233,904
====== =======
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SYNERGISTICS, INC.
SELECTED INFORMATION
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. It is suggested
that these financial statements be read in conjunction with the
financial statements and notes thereto included in the Company's Annual
Report Form 10-K. The results of operations for the period ended March 31,
1998 are not necessarily indicative of the operations for the full year.
Basis of Presentation
It is the opinion of management that all significant adjustments which are
routine recurring adjustments reflected in the accompanying March 31
financial statements which are necessary to present fairly such interim
financial statements.
Accounting Policy for Revenues and Costs of Sales
Revenues are recognized at the time of product shipment. Cost of sales
is computed using the "gross profit" method based upon historical
results of operations. Other costs, included in costs of sales, are
based upon such costs as actually incurred.
Inventories
Inventories are comprised of the following:
* 3/31/98 12/31/97
Raw Materials 75,705 80,746
Finished Goods & WIP 248,069 254,342
Total Inventories 323,774 335,088
*Allocation Based Upon Estimate
(Loss) per Common Share
The weighted average number of shares of common stock outstanding used
in computing (loss) per share does not include the effect of the conversion
of the stock options as the exercise price exceeds the current market value
of the security.
The following schedule sets forth the number of shares used in computing
earnings per share:
Period of Three Month
Ended March 31
1998 1997
Assuming no dilution
Common Stock Outstanding April 30, 1998 9,557,561 9,297,561
Shares held in Treasury 16,445 16,445
Total Shares Authorized 12,000,000 12,000,000
- -----------------------------------------------------------
PART I FINANCIAL INFORMATION
ITEM 1. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
For the three months ended March 31, 1998, the Company recorded sales
$603,920 compared to $469,309 for the three months ended March 31, 1997
At March 31, 1998 the Company had a backlog of $76,291 compared to
$64,596 at March 31, 1997.
Cost of sales as a percentage of sales decreased to 63.3% from 76.8%
for the three months ended March 31, 1998 and 1997, respectively.
This decrease is due to the reduction of new product development.
For the period of three months ended March 31, 1998, selling, general
and administrative expenses increased by $28,484 over the period of
three months ended March 31, 1997.
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are currently no pending legal proceedings to which the Compan
a party or to which any of its property is subject.
ITEM 2. CHANGE IN SECURITIES
There have been no changes in the instruments defining the rights of
holders of any class of securities of the Company during the first
three months of calendar year 1998.
ITEM 3. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 4. EXHIBITS AND FORM 8-K
None.
Pursuant to the requirements of the Securities Act of 1934, the
registrant has duly caused this report to be signed on its behalf, t
undersigned thereunto being duly authorized.
DATE______May 14, 1998 BY/S/ WILLIAM M. TETRICK
William M. Tetrick
Chairman of the Board
DATE______May 14, 1998 BY/S/ DAVID S. LONGWORTH
David S. Longworth
President and Clerk
- --------------------------------------------------------------------
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<PERIOD-END> MAR-31-1998
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