-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VaDVkgncp+YM9CCmZWYGfXx7qYP+twftLRs9k0/aoYW7RCQ6oyutuTheRB6fdJtz NCXyTBO7TK3MNGZhg5IuIw== 0000016590-96-000002.txt : 19960117 0000016590-96-000002.hdr.sgml : 19960117 ACCESSION NUMBER: 0000016590-96-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951202 FILED AS OF DATE: 19960116 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: 96503445 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 Q1 FY 96 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: December 2, 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 DECEMBER 2, 1995 AND AUGUST 31, 1995 (UNAUDITED) ASSETS DECEMBER 2, AUGUST 31, 1995 1995 ------------- ------------- CURRENT ASSETS: CASH AND CASH EQUIVALENTS $ 2,620,588 $ 3,246,353 ACCOUNTS RECEIVABLE, LESS RESERVES OF $135,000 ON DECEMBER 2, 1995 AND $135,000 ON AUGUST 31, 1995 2,834,916 5,144,976 CURRENT PORTION OF INVESTMENT IN SALES-TYPE LEASES, NET OF UNEARNED INTEREST INCOME OF $33,000 ON DECEMBER 2, 1995 AND $38,000 ON AUGUST 31, 1995 405,998 445,214 INVENTORIES 11,175,814 11,568,072 PREPAID TAXES 6,350,147 6,505,029 PREPAID EXPENSES 160,255 242,881 -------------- -------------- TOTAL CURRENT ASSETS $ 23,547,718 $ 27,152,525 -------------- -------------- LONG-TERM INVESTMENT IN SALES-TYPE LEASES, NET OF UNEARNED INTEREST INCOME OF $21,000 ON DECEMBER 2, 1995 AND $27,000 ON AUGUST 31, 1995 $ 392,196 $ 477,030 LEASED EQUIPMENT, AT COST, NET OF ACCUMULATED DEPRECIATION OF $233,000 ON DECEMBER 2, 1995 AND $193,000 ON AUGUST 31, 1995 $ 312,188 $ 351,768 PROPERTY AND EQUIPMENT, AT COST: MACHINERY AND EQUIPMENT $ 7,255,633 $ 7,221,473 FURNITURE AND FIXTURES 281,706 266,612 LEASEHOLD IMPROVEMENTS 606,454 606,454 -------------- -------------- $ 8,143,793 $ 8,094,539 LESS - ACCUMULATED DEPRECIATION AND AMORTIZATION 6,660,598 6,495,460 -------------- -------------- NET PROPERTY AND EQUIPMENT $ 1,483,195 $ 1,599,079 OTHER ASSETS TECHNOLOGY LICENSE/MARKETING AGREEMENT, NET OF ACCUMULATED AMORTIZATION OF $6,517,000 ON DECEMBER 2, 1995 AND $6,092,000 ON AUGUST 31, 1995 $ 1,983,338 $ 2,408,339 OTHER 37,880 37,895 -------------- -------------- TOTAL ASSETS $ 27,756,515 $ 32,026,636 ============== ============== -2-
CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 2, 1995 AND AUGUST 31, 1995 (UNAUDITED) LIABILITIES AND STOCKHOLDERS' INVESTMENT DECEMBER 2, AUGUST 31, 1995 1995 ------------- -------------- CURRENT LIABILITIES: REVOLVING CREDIT AGREEMENT $ 3,000,000 $ 3,850,000 ACCOUNTS PAYABLE 4,597,724 5,633,185 OBLIGATIONS FOR TRADE-IN MEMORY 1,939,657 2,712,317 ACCRUED EXPENSES 3,923,292 4,081,224 ------------- -------------- TOTAL CURRENT LIABILITIES $ 13,460,673 $ 16,276,726 ------------- -------------- DEFERRED REVENUE $ 906,610 $ 1,323,417 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 - 10,450,287 SHARES ON DECEMBER 2, 1995 AND 10,420,283 SHARES ON AUGUST 31, 1995 $ 1,045,029 $ 1,042,028 CAPITAL IN EXCESS OF PAR VALUE 15,400,195 15,161,980 CUMULATIVE TRANSLATION ADJUSTMENT 320,837 247,614 RETAINED EARNINGS (DEFICIT) (2,522,063) (1,170,363) LESS - COST OF SHARES HELD IN TREASURY - 1,534,356 ON DECEMBER 2, 1995 AND 1,534,356 ON AUGUST 31, 1995 (854,766) (854,766) ------------- -------------- TOTAL STOCKHOLDERS' INVESTMENT $ 13,389,232 $ 14,426,493 ------------- -------------- TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $ 27,756,515 $ 32,026,636 ============= ============== -3-
CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED DECEMBER 2, 1995 AND DECEMBER 3, 1994 (UNAUDITED) FOR THE THREE MONTHS ENDED DECEMBER 2, DECEMBER 3, 1995 1994 ------------ ------------ REVENUES $ 7,580,672 $ 10,166,732 COST OF SALES 3,987,346 5,417,153 ------------ ------------- GROSS PROFIT $ 3,593,326 $ 4,749,579 OPERATING EXPENSES: RESEARCH AND DEVELOPMENT $ 1,280,306 $ 1,487,665 SELLING 2,372,995 1,972,331 GENERAL AND ADMINISTRATIVE 772,095 615,971 ------------ ------------- $ 4,425,396 $ 4,075,967 ------------ ------------- OPERATING INCOME (LOSS) $ (832,070) $ 673,612 OTHER INCOME (EXPENSE): INTEREST EXPENSE $ (69,694) $ (62,867) INTEREST INCOME 34,365 27,445 OTHER INCOME (EXPENSE) (474,301) (377,124) ------------ ------------- INCOME (LOSS) BEFORE INCOME TAXES $(1,341,700) $ 261,066 PROVISION FOR INCOME TAXES $ 10,000 $ 105,000 ------------ ------------- NET INCOME (LOSS) $(1,351,700) $ 156,066 ============ ============= NET INCOME (LOSS) PER COMMON SHARE $ (0.15) $ 0.02 ============ ============= WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 8,915,000 8,625,000 -4-
CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED DECEMBER 2, 1995 AND DECEMBER 3, 1994 FOR THE THREE MONTHS ENDED DECEMBER 2, DECEMBER 3, 1995 1994 ------------ ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ (1,351,700) $ 156,066 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization $ 629,719 $ 676,294 Amortization of prepaid expenses 7,407 7,712 Common stock issued in lieu of cash 22,610 -- Change in assets and liabilities: Decrease (increase) in accounts receivable 2,310,060 (374,520) Decrease (increase) in inventory 392,258 (5,395,493) Decrease in investment in sales-type leases 124,050 111,141 Decrease in prepaid taxes 154,882 51,208 Decrease (increase) in prepaid expenses 75,219 228,110 Decrease in other assets 15 16 Increase (decrease) in accounts payable (1,035,461) 654,317 Increase (decrease) in obligations for trade-in memory (772,660) 893,250 Decrease in accrued liabilities (157,932) (647,832) Increase (decrease) in deferred revenue (416,807) 42,022 ------------- ------------- Total adjustments $ 1,333,360 $ (3,753,775) ------------- ------------- Net cash used in operating activities $ (18,340) $ (3,597,709) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of Equipment (49,254) (316,307) ------------ ------------- Net cash used in investing activities $ (49,254) $ (316,307) CASH FLOWS FROM FINANCING ACTIVITIES: Payments of notes payable $ -- $ (67,078) Proceeds from sale of common stock 218,606 1,656 Net borrowings (repayments) under revolving credit agreement (850,000) (600,000) ------------- ------------- Net cash used in financing activities $ (631,394) $ (665,422) Effect of exchange rate changes on cash 73,223 37,238 ------------ ------------- Net decrease in cash and cash equivalents $ (625,765) $ (4,542,200) Cash and cash equivalents at beginning of period $ 3,246,353 $ 6,126,289 ------------- ------------- Cash and cash equivalents at end of period $ 2,620,588 $ 1,584,089 ============= ============= SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 69,694 $ 62,867 Income Taxes 17,697 9,245 -5-
FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For Quarter Ended: December 2, 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: December 2, August 31, 1995 1995 Raw materials $ 2,708,854 $ 2,402,345 Work-in-process 1,237,569 760,399 Finished goods 5,914,335 4,573,200 Trade-in memory 1,315,056 3,832,128 $11,175,814 $11,568,072 - 6 - FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For Quarter Ended: December 2, 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 first quarter of fiscal 1996 decreased 25% from the first quarter of fiscal 1995 due principally to decreased sales of the Company's STOR/9000 memory products for the IBM ES/9000 computers. Operating expenses for the first quarter of fiscal 1996 increased 9% from the first quarter of fiscal 1995. Selling and general and administrative expenses increased 22% due to expansion in Europe. Research and development expenses decreased 14% due to completion of major projects in fiscal 1995. Other expense in the first quarter of fiscal 1996 and fiscal 1995 included approximately $425,000 in amortization expenses relating to the Company's technology license/marketing agreement. Accounts receivable decreased due to a lower volume of sales. The Company's present operating plans indicate that cash flow generated from operations will be adequate to meet its obligations. As reported in the Company's latest annual report on Form 10-K for the fiscal year ended August 31, 1995, the Company is continuing to negotiate with the bank to receive a waiver for certain provisions of the Revolving Credit Agreement with which the Company was not in compliance as of August 31, 1995 and December 2, 1995. - 7 - FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For Quarter Ended: December 2, 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: January 16, 1996 - 8 - EX-27 2
5 1,000 3-MOS AUG-31-1995 DEC-02-1995 2621 0 2970 135 11176 23548 8144 6661 27757 13461 0 0 0 1045 12344 27757 7581 7581 3987 3987 4866 0 70 (1342) 10 (1352) 0 0 0 (1352) (0.15) (0.15)
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