-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, XJAq/hIRz0POVDf+5v68psWD1XqOoZbg3SGC7GSqKVzQXuZodtNFDih+oM6lmXiA bs+syNQAZ9qc4MANwrpigg== 0000016590-95-000008.txt : 19950420 0000016590-95-000008.hdr.sgml : 19950420 ACCESSION NUMBER: 0000016590-95-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950304 FILED AS OF DATE: 19950417 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAMBEX CORP CENTRAL INDEX KEY: 0000016590 STANDARD INDUSTRIAL CLASSIFICATION: 3577 IRS NUMBER: 042442959 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-06933 FILM NUMBER: 95529120 BUSINESS ADDRESS: STREET 1: 360 SECOND AVE CITY: WALTHAM STATE: MA ZIP: 02154 BUSINESS PHONE: 6178906000 MAIL ADDRESS: STREET 2: 360 SECOND AVE CITY: WALTHAM STATE: MA ZIP: 02154 FORMER COMPANY: FORMER CONFORMED NAME: CAMBRIDGE MEMORIES INC DATE OF NAME CHANGE: 19801204 10-Q 1 FORM 10-Q FOR Q2 FY 95 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Quarterly Report Under Section 13 Or 15(d) Of The Securities Exchange Act Of 1934 For Quarter Ended: March 4, 1995 Commission File No: 0-6933 CAMBEX CORPORATION (Exact name of registrant as specified in its charter) Massachusetts 04-244-2959 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 360 Second Avenue, Waltham, Massachusetts (Address of principal executive offices) 02154 (Zip Code) Registrant's telephone number, including area code: (617) 890-6000 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 the past 90 days. Yes [X] No [ ] CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 4, 1995 AND AUGUST 31, 1994 (UNAUDITED) ASSETS MARCH 4, AUGUST 31, 1995 1994 ------------- ------------- CURRENT ASSETS: CASH AND CASH EQUIVALENTS $ 2,137,912 $ 6,126,289 ACCOUNTS RECEIVABLE, LESS RESERVES OF $140,000 ON MARCH 4, 1995 AND $138,000 ON AUGUST 31, 1994 8,509,191 6,853,233 CURRENT PORTION OF INVESTMENT IN SALES-TYPE LEASES, NET OF UNEARNED INTEREST INCOME OF $32,000 ON MARCH 4, 1995 AND $45,000 ON AUGUST 31, 1994 361,070 404,622 INVENTORIES 18,310,174 14,153,739 PREPAID TAXES 2,089,410 2,946,025 PREPAID EXPENSES 621,253 757,072 -------------- -------------- TOTAL CURRENT ASSETS $ 32,029,010 $ 31,240,980 -------------- -------------- LONG-TERM INVESTMENT IN SALES-TYPE LEASES, NET OF UNEARNED INTEREST INCOME OF $22,000 ON MARCH 4, 1995 AND $35,000 ON AUGUST 31, 1994 $ 305,749 $ 475,900 LEASED EQUIPMENT, AT COST, NET OF ACCUMULATED DEPRECIATION OF $223,000 ON MARCH 4, 1995 AND $167,000 ON AUGUST 31, 1994 $ 374,580 $ 302,410 PROPERTY AND EQUIPMENT, AT COST: MACHINERY AND EQUIPMENT $ 7,972,428 $ 7,932,084 FURNITURE AND FIXTURES 243,194 240,239 LEASEHOLD IMPROVEMENTS 554,507 357,796 -------------- -------------- $ 8,770,129 $ 8,530,119 LESS - ACCUMULATED DEPRECIATION AND AMORTIZATION 7,044,325 6,647,467 -------------- -------------- NET PROPERTY AND EQUIPMENT $ 1,725,804 $ 1,882,652 OTHER ASSETS TECHNOLOGY LICENSE/MARKETING AGREEMENT, NET OF ACCUMULATED AMORTIZATION OF $5,242,000 ON MARCH 4, 1995 AND $4,392,000 ON AUGUST 31, 1994 $ 3,258,341 $ 4,108,343 OTHER 37,926 37,958 -------------- -------------- TOTAL ASSETS $ 37,731,410 $ 38,048,243 ============== ============== -2- CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 4, 1995 AND AUGUST 31, 1994 (UNAUDITED) LIABILITIES AND STOCKHOLDERS' INVESTMENT MARCH 4, AUGUST 31, 1995 1994 ------------- -------------- CURRENT LIABILITIES: NOTES PAYABLE $ 23,874 $ 159,152 ACCOUNTS PAYABLE 5,298,596 4,408,747 OBLIGATIONS FOR TRADE-IN MEMORY 1,870,317 662,067 ACCRUED EXPENSES 2,305,499 4,374,102 ------------- -------------- TOTAL CURRENT LIABILITIES $ 9,498,286 $ 9,604,068 ------------- -------------- REVOLVING CREDIT AGREEMENT $ 2,300,000 $ 3,900,000 DEFERRED REVENUE $ 2,133,209 $ 1,431,311 STOCKHOLDERS' INVESTMENT: PREFERRED STOCK, $1.00 PAR VALUE PER SHARE AUTHORIZED - 3,000,000 SHARES ISSUED - NONE -- -- COMMON STOCK, $.10 PAR VALUE PER SHARE - AUTHORIZED - 25,000,000 SHARES ISSUED - 10,257,873 SHARES ON MARCH 4, 1995 AND 10,157,064 SHARES ON AUGUST 31, 1994 $ 1,025,787 $ 1,015,706 CAPITAL IN EXCESS OF PAR VALUE 14,512,260 14,154,516 CUMULATIVE TRANSLATION ADJUSTMENT 75,978 68,862 RETAINED EARNINGS 9,040,656 8,728,546 LESS - COST OF SHARES HELD IN TREASURY - 1,534,356 ON MARCH 4, 1995 AND 1,534,356 ON AUGUST 31, 1994 (854,766) (854,766) ------------- -------------- TOTAL STOCKHOLDERS' INVESTMENT $ 23,799,915 $ 23,112,864 ------------- -------------- TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $ 37,731,410 $ 38,048,243 ============= ============== -3-
CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE SIX MONTHS ENDED MARCH 4, 1995 AND FEBRUARY 26, 1994 (UNAUDITED) QUARTER ENDED SIX MONTHS ENDED MARCH 4, FEBRUARY 26, MARCH 4, FEBRUARY 26, 1995 1994 1995 1994 ------------ ------------ ------------ ------------ REVENUES $10,511,618 $ 10,060,061 $ 20,678,350 $ 19,148,426 COST OF SALES 5,892,428 5,285,358 11,309,581 9,640,356 ------------ ------------- ------------- ------------- GROSS PROFIT $ 4,619,190 $ 4,774,703 $ 9,368,769 $ 9,508,070 OPERATING EXPENSES: RESEARCH AND DEVELOPMENT $ 1,673,059 $ 1,640,748 $ 3,160,724 $ 3,134,716 SELLING 2,136,905 1,833,532 4,109,236 3,797,333 GENERAL AND ADMINISTRATIVE 703,940 748,941 1,319,911 1,351,107 ------------ ------------- ------------- ------------- $ 4,513,904 $ 4,223,221 $ 8,589,871 $ 8,283,156 ------------ ------------- ------------- ------------- OPERATING INCOME $ 105,286 $ 551,482 $ 778,898 $ 1,224,914 OTHER INCOME (EXPENSE): INTEREST EXPENSE $ (76,854) $ (37,630) $ (139,721) $ (66,866) INTEREST INCOME 18,888 29,079 46,333 61,107 OTHER INCOME (EXPENSE) 211,724 (380,993) (165,400) (805,994) ------------ ------------- ------------- ------------- INCOME BEFORE INCOME TAXES $ 259,044 $ 161,938 $ 520,110 $ 413,161 PROVISION FOR INCOME TAXES $ 103,000 $ 71,000 $ 208,000 $ 194,000 ------------ ------------- ------------- ------------- NET INCOME $ 156,044 $ 90,938 $ 312,110 $ 219,161 ============ ============= ============= ============= NET INCOME PER COMMON SHARE $ 0.02 $ 0.01 $ 0.04 $ 0.03 ============ ============= ============= ============= WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 8,675,000 8,600,000 8,675,000 8,600,000 -4-
CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED MARCH 4, 1995 AND FEBRUARY 26, 1994 FOR THE SIX MONTHS ENDED MARCH 4, FEBRUARY 26, 1995 1994 ---------- ---------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 312,110 $ 219,161 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization $ 1,336,636 $ 1,364,615 Provision for losses on accounts receivable -- -- Provision for losses on inventory -- -- Amortization of prepaid expenses 15,424 17,290 Common stock issued in lieu of cash 365,148 225,118 Change in assets and liabilities: Decrease (increase) in accounts receivable (1,655,958) (1,943,174) Increase in inventory (4,156,435) (3,437,693) Decrease in investment in sales-type leases 213,703 56,686 Decrease in prepaid taxes 856,615 1,477,263 Decrease (increase) in prepaid expenses 120,395 (79,731) Decrease in other assets 32 32 Increase in accounts payable 889,849 241,769 Increase (decrease) in obligations for trade-in memory 1,208,250 (2,051,900) Increase (decrease) in accrued liabilities (2,068,603) 170,523 Increase (decrease) in deferred revenue 701,898 (122,510) ------------- ------------ Total adjustments $ (2,173,046) $ (4,081,712) ------------- ------------ Net cash used in operating activities $ (1,860,936) $ (3,862,551) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of Equipment $ (401,956) $ (405,708) ------------ ------------ Net cash used in investing activities $ (401,956) $ (405,708) CASH FLOWS FROM FINANCING ACTIVITIES: Payments of notes payable $ (135,278) $ (102,898) Proceeds from sale of common stock 2,677 24,298 Repayments under revolving credit agreement (1,600,000) (50,000) ------------- ------------ Net cash used in financing activities $ (1,732,601) $ (128,600) Effect of exchange rate changes on cash 7,116 83,046 ------------ ------------ Net decrease in cash and cash equivalents $ (3,988,377) $ (4,313,813) Cash and cash equivalents at beginning of period $ 6,126,289 $ 5,827,673 ------------- ------------ Cash and cash equivalents at end of period $ 2,137,912 $ 1,513,860 ============= ============ SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 163,213 $ 74,972 Income Taxes 14,003 23,161
-5- FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For Quarter Ended: March 4, 1995 Commission File No. 0-6933 Notes & Comments: (1)Significant Accounting Policies The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. The Company has deferred revenue associated with the sale of certain products which have future performance obligations, principally relating to reinstallation of IBM memory. The condensed financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. The information furnished includes all adjustments and accruals consisting only of normal recurring accrual adjustments which are, in the opinion of management, necessary for a fair presentation of results for the interim period. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Company's latest annual report on Form 10-K. Inventories, which include raw materials, labor and manufacturing overhead are stated at the lower of cost (first-in, first-out) or market and consist of the following: March 4, August 31, 1995 1994 Raw materials $ 2,751,765 $ 2,192,939 Work-in-process 1,709,225 790,892 Finished goods 3,891,184 3,593,472 Trade-in memory 9,958,000 7,576,436 $18,310,174 $14,153,739 =========== =========== - 6 - FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For Quarter Ended: March 4, 1995 Commission File No. 0-6933 Notes & Comments (Continued): (2) Income and Dividends Per Share Per share amounts are based on the weighted average number of shares outstanding during each year plus applicable common stock equivalents. There were no material differences for per share amounts assuming full dilution in either year. (3) Management's Discussion and Analysis of Financial Condition and Results of Operations Revenues for the second quarter of fiscal 1995 increased by approximately $450,000 or 4% from the second quarter of fiscal 1994 due to higher sales of client/server products. Gross profit as a percentage of revenues was 44% for the second quarter of fiscal 1995 as compared to 47% in the second quarter of fiscal 1994, with the decrease primarily due to an increasing percentage of the Company's revenues being generated from client/server products for which gross profit margins are typically lower than those realized on add-in memory sales for IBM mainframe computers and lower average selling prices and consequently, lower gross margins on the Company's mainframe memory products. Operating expenses for the second quarter of fiscal 1995 increased 6% from the second quarter of fiscal 1994. Selling expenses increased 17%, from $1,834,000 to $2,137,000, due primarily to increased staffing relating to the recently announced disk storage products and expenses in Europe. Interest expense increased 104%, from $38,000 to $77,000, due to higher bank borrowings and a higher interest rate on the Company's Revolving Credit Agreement. - 7 - FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For Quarter Ended: March 4, 1995 Commission File No. 0-6933 Notes & Comments (Continued): (3) Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) Other income (expense) in the second quarter of fiscal 1995 included a reversal of an overaccrual of the Company match on the Company's 401(k) profit sharing retirement plan of $400,000, favorable European exchange rates of $150,000 and sale of excess inventory of $75,000, partially offset by approximately $425,000 in amortization expenses relating to the Company's technology license/marketing agreement. Other expense in the second quarter of fiscal 1994 included approximately $425,000 in amortization expenses relating to the Company's technology license/marketing agreement. The Company's cash position decreased by $3,988,000 from the end of fiscal 1994. A significant portion of the Company's business during the first six months of fiscal 1995 involved the acceptance of IBM trade-in memory as payment for the Company's newest mainframe central storage memory. Consequently, the Company's inventory of IBM memory accounted for $2,382,000 of the total $4,156,000 increase in inventories. The Company believes that the trade-in memory is fairly stated at its net realizable value and will be liquidated for cash. The Company's prepaid tax asset is realizable through carry-backs against taxes paid in prior periods or future profitability. The Company's present operating plans indicate that cash flow generated from operations will be adequate to meet its obligations. - 8 - FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For Quarter Ended: March 4, 1995 Commission File No. 0-6933 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. CAMBEX CORPORATION By: /s/ JOSEPH F. KRUY Joseph F. Kruy President By: /s/ SHELDON M. SCHENKLER Sheldon M. Schenkler Chief Financial Officer Dated: EX-27 2
5 1,000 6-MOS AUG-31-1995 MAR-04-1995 2,138 0 8,649 140 18,310 32,029 8,770 7,044 37,731 9,498 0 1,026 0 0 22,774 37,731 20,678 20,678 11,310 11,310 8,755 0 140 520 208 312 0 0 0 312 .04 .04
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