6-K 1 0001.txt FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. FORM 6-K Report of Foreign Issuer Pursuant to Rule 13a- 16 or 15d-16 of the Securities Exchange Act of 1934 2nd quarter statements dated March 31, 2000 Eiger Technology, Inc. 818 Erie St. Stratford, ON N4Z 1A2 [Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40- F] Form 20-F |X| Form 40-F |_| [Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information by the Commission pursuant to Rule 12g3-2(b) under the Securities Act of 1934.] Yes |X| No |_| 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. Eiger Technology, Inc. Date: May 29, 2000 Mr. Gerry A. Racicot President Management Review Eiger Technology, Inc. (Eiger) is pleased to report its' significant business progress during the second quarter of its fiscal year. Eiger's sales of $33 million dollars, a 480% increase over 1999, is a strong indication of the growth rate that is expected to continue during this fiscal year. Our presence in the computer peripheral business is strengthening with the 56K, DSL modem and MP3 player, sales being strong and continuing to grow. MP3 player sales continue to strengthen as a major North American computer manufacturer and a Korean conglomerate have committed orders of more than $30,000,000US over the next 12 months. Eiger has signed a letter of intent with Standard Telecom of South Korea to purchase a 25% interest in Nixxo Technology, Inc. (Nixxo), a California company based in San Jose, CA Nixxo is a GSM chip set developer with production anticipated in the first calendar quarter of 2001. This strategic alliance strengthens our sales in tow ways as follows: Eiger will be a distributor for the GSM chip set and Eiger will also be the manufacturer of certain GSM phone sets. This anticipated increase in sales of between $15,000,000 and $25,000,000 will materialize during the 2001 fiscal year. The range of sales volume is dependent on the production and shipment scheduling issues. This transaction will be consummated upon completion of Eiger due diligence to their satisfaction. EigerNet, Inc. (formerly Point Multimedia Systems Inc.) has opened a new factory in Seoul with state of the art equipment. The second line was 30 days late resulting in a delay in shipments during March and April, 2000. The new factory increased production from 100,000 units per month to 575,000 units per months, a significant milestone in the history of our company. Eiger Labs Group, Inc. has hired Manny Tan, a senior sales and marketing executive to head its North American sales initiative for Eiger brand products especially it's MP3 player. Eiger's management looks forward to the balance of 2000 being a growth year while entrenching itself further in the computer peripheral world market place. EIGER TECHNOLOGY, INC. Unaudited Consolidated Balance Sheet -------------------------------------------------------------------------------- March 31 2000 1999 -------------------------------------------------------------------------------- $ $ Assets Current Cash and Marketable Securities 10,182,000 0 Cash Held in Escrow 14,667,000 0 Accounts Receivable 10,738,000 1,887,000 Inventories 8,406,000 3,101,000 Prepaid Expenses 225,000 100,000 ----------- ----------- 44,218,000 5,088,000 Capital 3,345,000 1,844,000 Future Income Tax Benefits 123,000 0 Long-term Investments 342,000 1,587,000 Goodwill and Other 9,394,000 567,000 ----------- ----------- 57,422,000 9,086,000 =========== =========== Liabilities and Shareholders' Equity Current Bank Indebtedness 5,084,000 2,098,000 Accounts Payable and Accrued Liabilities 6,929,000 1,940,000 Income Taxes Payable (Recoverable) 195,000 (96,000) Current Portion of Lease Obligation 51,000 66,000 Current Portion of Long-term Debt 120,000 87,000 ----------- ----------- 12,379,000 4,095,000 ----------- ----------- Long-term Obligation Under Capital Lease 8,000 7,000 Long-term Debt 1,078,000 1,526,000 ----------- ----------- 1,086,000 1,533,000 ----------- ----------- Future Income Tax Liabilities 0 176,000 ----------- ----------- Non-Controlling Interest 3,400,000 236,000 ----------- ----------- Shareholders' Equity Share Capital 41,441,000 2,176,000 Contributed Surplus 787,000 217,000 Retained Earnings (Deficit) (1,671,000) 653,000 ----------- ----------- 40,557,000 3,046,000 ----------- ----------- 57,422,000 9,086,000 =========== =========== On Behalf of the Board: signed Gerry Racicot Director Signed Keith Attoe Director EIGER TECHNOLOGY, INC. Unaudited Statement of Consolidated Operations and Retained Earnings -------------------------------------------------------------------------------- For the six months ended March 31 2000 1999 -------------------------------------------------------------------------------- $ $ Sales 33,047,000 5,684,000 Cost of Sales 29,170,000 4,482,000 ----------- ----------- Gross Margin 3,877,000 1,202,000 ----------- ----------- Expenses Operating and Administrative 2,162,000 1,088,000 Management Fees 14,000 60,000 Amortization of Capital Assets 152,000 86,000 Amortization of Goodwill and Other Assets 134,000 20,000 Interest on Long-term Debt 32,000 10,000 Other Interest and Bank Charges 254,000 143,000 ----------- ----------- 2,748,000 1,407,000 ----------- ----------- Income (Loss) from Operations 1,129,000 (205,000) Non-recurring Factory Moving Costs (1,650,000) 0 Other Income 117,000 424,000 ----------- ----------- Income before Taxes (404,000) 219,000 Provision for Income Taxes (99,000) (96,000) ----------- ----------- Income before Non-controlling Interest (305,000) 315,000 Non-controlling Interest 233,000 (56,000) ----------- ----------- Net Income (Loss) for the Period (538,000) 371,000 Retained Earnings (Deficit), Beginning of Period (401,000) 247,000 Prior Period Adjustment of Non-controlling Interest (167,000) 35,000 Costs Related to Issuance of Share Capital (565,000) 0 ----------- ----------- Retained Earnings (Deficit), End of Period (1,671,000) 653,000 EIGER TECHNOLOGY, INC. Unaudited Statement of Consolidated Changes in Cash Position -------------------------------------------------------------------------------- For the six months ended March 31 2000 1999 -------------------------------------------------------------------------------- $ $ Cash Provided (Used In) Operating Activities Net Income (Loss) for the Period (538,000) 371,000 Items not Involving Cash Amortization 286,000 106,000 Negotiated Loan Reduction 0 (424,000) Changes in Non-Cash Operating Accounts Accounts Receivable (5,493,000) 230,000 Inventories (4,400,000) 114,000 Prepaid Expenses 44,000 (57,000) Accounts Payable 4,134,000 (422,000) Current Income Taxes (42,000) (83,000) Future Income Taxes (298,000) 0 Non-controlling Interest 233,000 (56,000) ----------- ----------- (6,074,000) (221,000) ----------- ----------- Investment Activities Purchase of Capital Assets (1,441,000) (78,000) Non-controlling Interest 1,611,000 0 Long-term Investments 0 (376,000) Other Assets (6,096,000) 0 ----------- ----------- (5,926,000) (454,000) ----------- ----------- Financing Activities Capital Lease Obligation 22,000 (47,000) Other Long-term Debt (13,000) (74,000) Common Shares Issued 32,338,000 0 Costs Related to Issuance of Share Capital (565,000) 0 Contributed Capital 570,000 0 ----------- ----------- 32,352,000 (121,000) ----------- ----------- Increase (Decrease) in Cash Position During Period 20,352,000 (796,000) Cash Position, Beginning of Period (587,000) (1,302,000) ----------- ----------- Cash Position, End of Period 19,765,000 (2,098,000) =========== =========== Analysis of Cash Position: Cash and Marketable Securities 10,182,000 0 Cash Held in Escrow 14,667,000 0 Bank Indebtedness (5,084,000) (2,098,000) ----------- ----------- 19,765,000 (2,098,000) Eiger Technology, Inc. Supplementary Information As at March 31, 2000 Schedule A: Financial Information - see unaudited consolidated financial statements Schedule B: #1 - See attached schedule of Administrative Expenses - See consolidated financial statements #2 a) Options Exercised - January 1, 2000 to March 31, 2000 Beverly Boorsma 15,000 @.85 Ken Rampersad 50,000 @.55 Dingeman Kleppe 30,000 @.85 Walter Keyser 50,000 @.85 Beverly Boorsma 5,000 @ 1.40 Scott St. Amand 12,000 @ 1.40 Leslie Babb 5,000 @ 1.40 Cheon Hong Kim 25,000 @ .80 Paul Bates 20,000 @ 1.40 Robert Kim 50,000 @ .60 #2 b) Options Granted - January 1st to March 31, 2000 Keith Attoe 250,000 4.50 02/01/04 Gerry A. Racicot 250,000 4.50 02/01/04 2845354 Canada Inc. c/o Dominique Gendeon 250,000 4.50 02/01/04 #3 a) 26,646,308 shares issued and outstanding #3 b) Outstanding Options: NAME # OF SHARES PRICE EXPIRY DATE Keith Attoe 50,000 .60 09/08/00 Keith Attoe 100,000 .90 11/11/00 Walter Keyser 50,000 .70 09/30/00 Ken Rampersad 50,000 .85 04/17/00 Keith Attoe 100,000 .85 04/17/00 Walter Keyser 50,000 .85 04/17/00 Robert Kim 150,000 .60 04/02/01 Steve Kim 50,000 .60 04/02/01 Robert Kim 350,000 .60 04/02/01 Tony Francolini 100,000 1.40 10/25/04 Scott St. Amand 8,000 1.40 10/25/04 Ray Dirks 500,000 1.47 11/17/02 George Swan 25,000 1.40 11/25/02 Keith Attoe 250,000 4.50 02/01/04 Gerry A. Racicot 250,000 4.50 02/01/04 2845354 Canada Inc. c/o Dominique Gendeon 250,000 4.50 02/01/04 #3 c) Total number of shares in escrow - nil #3 d) List of Directors Gerry Racicot Walter Keyser Robert Hoegler Keith Attoe Ernest Kolenda Morden C. Lazarus Sidney Harkema EIGER TECHNOLOGY INC. Notes to the Financial Statements March 31, 2000 -------------------------------------------------------------------------------- Reconciliation to U.S. GAAP: -------------------------------------------------------------------------------- Revelant differences between accounting principles generally accepted in Canada (Cdn. GAAP") compared to those principles generally accepted in the United States of America ("U.S. GAAP") are as follows: None. Reconciliations: 2000 1999 ---------- --------- $ $ Net Income - per Cdn. GAAP .............................. (538,000) 371,000 ========== ========= - per U.S. GAAP .............................. (538,000) 371,000 ========== ========= Retained Earnings (Deficit) - End of Period per Cdn. GAAP ............... (1,671,000) 653,000 - Adjustments re Depreciable Life of Computer Equipment .................... (30,000) (30,000) - Future Income Tax Adjustment ............... 12,000 12,000 ---------- --------- - End of Year per U.S. GAAP .................. (1,689,000) 635,000 ========== ========= Total Assets - per Cdn. GAAP .............................. 57,422,000 9,086,000 - Adjustments re Depreciable Life of Computer Equipment .................... (30,000) (30,000) - Deferred Tax Adjustment .................... 12,000 12,000 ---------- --------- - per U.S. GAAP .............................. 57,404,000 9,068,000