-----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, Nln273Mx/kPZsqGiVgjwQW+bDGhSuLTlLgTXLg+UR8YPXGnPiR4wqWTS2rL0zD6L nxk/xKkK7xUIwscM6Zc3hg== 0000016590-95-000012.txt : 199507180000016590-95-000012.hdr.sgml : 19950718 ACCESSION NUMBER: 0000016590-95-000012 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950603 FILED AS OF DATE: 19950717 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAMBEX CORP CENTRAL INDEX KEY: 0000016590 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [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: 95554467 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 Q3 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: June 3, 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 JUNE 3, 1995 AND AUGUST 31, 1994 (UNAUDITED) ASSETS JUNE 3, AUGUST 31, 1995 1994 ------------- ------------- CURRENT ASSETS: CASH AND CASH EQUIVALENTS $ 2,432,101 $ 6,126,289 ACCOUNTS RECEIVABLE, LESS RESERVES OF $141,000 ON JUNE 3, 1995 AND $138,000 ON AUGUST 31, 1994 9,116,236 6,853,233 CURRENT PORTION OF INVESTMENT IN SALES-TYPE LEASES, NET OF UNEARNED INTEREST INCOME OF $37,000 ON JUNE 3, 1995 AND $45,000 ON AUGUST 31, 1994 477,087 404,622 INVENTORIES 17,654,167 14,153,739 PREPAID TAXES 3,825,360 2,946,025 PREPAID EXPENSES 589,222 757,072 -------------- -------------- TOTAL CURRENT ASSETS $ 34,094,173 $ 31,240,980 -------------- -------------- LONG-TERM INVESTMENT IN SALES-TYPE LEASES, NET OF UNEARNED INTEREST INCOME OF $22,000 ON JUNE 3, 1995 AND $35,000 ON AUGUST 31, 1994 $ 298,168 $ 475,900 LEASED EQUIPMENT, AT COST, NET OF ACCUMULATED DEPRECIATION OF $197,000 ON JUNE 3, 1995 AND $167,000 ON AUGUST 31, 1994 $ 299,906 $ 302,410 PROPERTY AND EQUIPMENT, AT COST: MACHINERY AND EQUIPMENT $ 8,051,745 $ 7,932,084 FURNITURE AND FIXTURES 278,341 240,239 LEASEHOLD IMPROVEMENTS 598,243 357,796 -------------- -------------- $ 8,928,329 $ 8,530,119 LESS - ACCUMULATED DEPRECIATION AND AMORTIZATION 7,270,496 6,647,467 -------------- -------------- NET PROPERTY AND EQUIPMENT $ 1,657,833 $ 1,882,652 OTHER ASSETS TECHNOLOGY LICENSE/MARKETING AGREEMENT, NET OF ACCUMULATED AMORTIZATION OF $5,667,000 ON JUNE 3, 1995 AND $4,392,000 ON AUGUST 31, 1994 $ 2,833,340 $ 4,108,343 OTHER 37,910 37,958 -------------- -------------- TOTAL ASSETS $ 39,221,330 $ 38,048,243 ============== ============== -2-
CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 3, 1995 AND AUGUST 31, 1994 (UNAUDITED) LIABILITIES AND STOCKHOLDERS' INVESTMENT JUNE 3, AUGUST 31, 1995 1994 ------------- -------------- CURRENT LIABILITIES: NOTES PAYABLE $ -- $ 159,152 ACCOUNTS PAYABLE 3,464,583 4,408,747 OBLIGATIONS FOR TRADE-IN MEMORY 2,268,567 662,067 ACCRUED EXPENSES 4,079,518 4,374,102 ------------- -------------- TOTAL CURRENT LIABILITIES $ 9,812,668 $ 9,604,068 ------------- -------------- REVOLVING CREDIT AGREEMENT $ 3,000,000 $ 3,900,000 DEFERRED REVENUE $ 2,310,925 $ 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 - 10,272,973 SHARES ON JUNE 3, 1995 AND 10,157,064 SHARES ON AUGUST 31, 1994 $ 1,027,297 $ 1,015,706 CAPITAL IN EXCESS OF PAR VALUE 14,552,256 14,154,516 CUMULATIVE TRANSLATION ADJUSTMENT 238,923 68,862 RETAINED EARNINGS 9,134,027 8,728,546 LESS - COST OF SHARES HELD IN TREASURY - 1,534,356 ON JUNE 3, 1995 AND 1,534,356 ON AUGUST 31, 1994 (854,766) (854,766) ------------- -------------- TOTAL STOCKHOLDERS' INVESTMENT $ 24,097,737 $ 23,112,864 ------------- -------------- TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $ 39,221,330 $ 38,048,243 ============= ============== -3-
CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE NINE MONTHS ENDED JUNE 3, 1995 AND MAY 28, 1994 (UNAUDITED) QUARTER ENDED NINE MONTHS ENDED JUNE 3, MAY 28, JUNE 3, MAY 28, 1995 1994 1995 1994 ------------ ------------ ------------ ------------ REVENUES $11,166,910 $ 11,245,386 $ 31,845,260 $ 30,393,812 COST OF SALES 6,296,793 6,051,939 17,606,374 15,692,295 ------------ ------------- ------------- ------------- GROSS PROFIT $ 4,870,117 $ 5,193,447 $ 14,238,886 $ 14,701,517 OPERATING EXPENSES: RESEARCH AND DEVELOPMENT $ 1,345,847 $ 1,388,968 $ 4,506,571 $ 4,523,684 SELLING 2,000,686 $ $2,058,451 6,109,922 5,855,784 GENERAL AND ADMINISTRATIVE $632,889 729,558 1,952,800 2,080,665 ------------ ------------- ------------- ------------- $ 3,979,422 $ 4,176,977 $ 12,569,293 $ 12,460,133 ------------ ------------- ------------- ------------- OPERATING INCOME $ 890,695 $ 1,016,470 $ 1,669,593 $ 2,241,384 OTHER INCOME (EXPENSE): INTEREST EXPENSE $ (60,350) $ (62,085) $ (200,071) $ (128,951) INTEREST INCOME 25,969 30,944 72,302 92,051 OTHER INCOME (EXPENSE) (700,943) (519,878) (866,343) (1,325,872) ------------ ------------- ------------- ------------- INCOME BEFORE INCOME TAXES $ 155,371 $ 465,451 $ 675,481 $ 878,612 PROVISION FOR INCOME TAXES $ 62,000 $ 206,000 $ 270,000 $ 400,000 ------------ ------------- ------------- ------------- NET INCOME $ 93,371 $ 259,451 $ 405,481 $ 478,612 ============ ============= ============= ============= NET INCOME PER COMMON SHARE $ 0.01 $ 0.03 $ 0.05 $ 0.06 ============ ============= ============= ============= WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 8,750,000 8,600,000 8,750,000 8,600,000 -4-
CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED JUNE 3, 1995 AND MAY 28, 1994 FOR THE NINE MONTHS ENDED JUNE 3, MAY 28, 1995 1994 ------------ ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 405,481 $ 478,612 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization $ 2,004,954 $ 2,069,897 Provision for losses on accounts receivable -- -- Provision for losses on inventory -- -- Amortization of prepaid expenses 23,135 25,934 Common stock issued in lieu of cash 365,148 225,118 Change in assets and liabilities: Increase in accounts receivable (2,263,003) (1,723,546) Increase in inventory (3,500,428) (5,452,625) Decrease (increase) in investment in sales-type leases 105,267 (370,579) Decrease (increase) in prepaid taxes (879,335) 1,549,897 Increase in prepaid expenses 144,715 (44,761) Decrease in other assets 48 48 Increase (decrease) in accounts payable (944,164) 973,525 Increase (decrease) in obligations for trade-in memory 1,606,500 (2,124,880) Increase (decrease) in accrued liabilities (294,584) 416,373 Increase (decrease) in deferred revenue 879,614 (157,510) ------------- ------------- Total adjustments $ (2,752,133) $ (4,613,109) ------------- ------------- Net cash used in operating activities $ (2,346,652) $ (4,134,497) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of Equipment (502,628) (528,388) ------------ ------------ Net cash used in investing activities $ (502,628) $ (528,388) CASH FLOWS FROM FINANCING ACTIVITIES: Payments of notes payable $ (159,152) $ (166,718) Proceeds from sale of common stock 44,183 25,062 Net borrowings (repayments) under revolving credit agreement (900,000) (50,000) ------------- ------------- Net cash used in financing activities $ (1,014,969) $ (191,656) Effect of exchange rate changes on cash 170,061 319,567 ------------ ------------- Net decrease in cash and cash equivalents $ (3,694,188) $ (4,534,974) Cash and cash equivalents at beginning of period $ 6,126,289 $ 5,827,673 ------------- ------------- Cash and cash equivalents at end of period $ 2,432,101 $ 1,292,699 ============= ============= SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 200,071 $ 116,769 Income Taxes 31,592 38,074 -5-
FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For Quarter Ended: June 3, 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: June 3, August 31, 1995 1994 Raw materials $ 2,984,172 $ 2,192,939 Work-in-process 810,346 790,892 Finished goods 4,303,124 3,593,472 Trade-in memory 9,556,525 7,576,436 $17,654,167 $14,153,739 - 6 - FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For Quarter Ended: June 3, 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 third quarter of fiscal 1995 decreased by approximately $78,000 or 1% from the third quarter of fiscal 1994. Gross profit as a percentage of revenues was 44% for the third quarter of fiscal 1995 as compared to 46% in the third quarter of fiscal 1994, with the decrease primarily due to lower gross margins on the Company's mainframe memory products. Operating expenses for the third quarter of fiscal 1995 decreased 5% from the third quarter of fiscal 1994. Selling expenses decreased 3%, from $2,058,000 to $2,000,686, due primarily to decreased staffing. Other income (expense) in the third quarter of fiscal 1995 included $425,000 in amortization expenses relating to the Company's technology license/marketing agreement and a $200,000 unfavorable exchange rate adjustment. Other expense in the third quarter of fiscal 1994 included approximately $425,000 in amortization expenses relating to the Company's technology license/marketing agreement. - 7 - FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For Quarter Ended: June 3, 1995 Commission File No. 0-6933 Notes & Comments (Continued): (3) Management's Discussion and Analysis of Financial Condition and Results of Operations (Continued) The Company's cash position decreased by $3,694,000 from the end of fiscal 1994. A significant portion of the Company's business during the first nine 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 $1,980,000 of the total $3,500,000 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. In addition, the Company has accepted longer term receivables for certain memory transactions resulting in an increase in accounts receivable of $2,263,000. 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: June 3, 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: July 17, 1995 EX-27 2
5 1,000 9-MOS AUG-31-1995 JUN-03-1995 2432 0 9116 141 17654 34094 8928 7270 39221 9813 0 1027 0 0 23070 39221 31845 31845 17606 17606 13363 0 200 675 270 405 0 0 0 405 .05 .05
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