-----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, Ghuilg0ADLLxbgFMYHqyuTPrKNKGHVke+fItdSlBUHk9/oj8LhCuyDjvPXACpGvp g9urwtsuKdRJT/S0JgGDew== 0000016590-98-000021.txt : 19981123 0000016590-98-000021.hdr.sgml : 19981123 ACCESSION NUMBER: 0000016590-98-000021 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981003 FILED AS OF DATE: 19981116 DATE AS OF CHANGE: 19981120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAMBEX CORP CENTRAL INDEX KEY: 0000016590 STANDARD INDUSTRIAL CLASSIFICATION: 3572 IRS NUMBER: 042442959 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-06933 FILM NUMBER: 98753765 BUSINESS ADDRESS: STREET 1: 360 SECOND AVE CITY: WALTHAM STATE: MA ZIP: 02154 BUSINESS PHONE: 6178906000 MAIL ADDRESS: STREET 1: 360 SECOND AVE 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 10Q-Q398/QTR END 10/3/98 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 the Quarter Ended: October 3, 1998 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) 02451 (Zip Code) Registrant's telephone number, including area code: (781) 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 OCTOBER 3, 1998 AND DECEMBER 31, 1997 (UNAUDITED) ASSETS OCTOBER 3, DECEMBER 31, 1998 1997 ------------- ------------- CURRENT ASSETS: CASH AND CASH EQUIVALENTS $ 153,669 $ 476,246 ACCOUNTS RECEIVABLE, LESS RESERVES OF $100,000 ON OCTOBER 3, 1998 AND $131,000 ON DECEMBER 31, 1997 247,961 1,200,343 CURRENT PORTION OF INVESTMENT IN SALES-TYPE LEASES, NET OF UNEARNED INTEREST INCOME OF $1,000 ON OCTOBER 3, 1998 AND $4,000 ON DECEMBER 31, 1997 40,993 59,299 INVENTORIES 570,764 1,412,925 PREPAID TAXES - - PREPAID EXPENSES 119,182 121,183 -------------- -------------- TOTAL CURRENT ASSETS $ 1,132,569 $ 3,269,996 -------------- -------------- LONG-TERM INVESTMENT IN SALES-TYPE LEASES, NET OF UNEARNED INTEREST INCOME OF $1,000 ON ON DECEMBER 31, 1997 $ - $ 25,820 LEASED EQUIPMENT, AT COST, NET OF ACCUMULATED DEPRECIATION OF $220,000 ON OCTOBER 3, 1998 AND $183,000 ON DECEMBER 31, 1997 $ - $ 37,886 PROPERTY AND EQUIPMENT, AT COST: MACHINERY AND EQUIPMENT $ 3,044,199 $ 3,036,699 FURNITURE AND FIXTURES 247,173 247,173 LEASEHOLD IMPROVEMENTS 602,092 620,949 -------------- -------------- $ 3,893,464 $ 3,904,821 LESS - ACCUMULATED DEPRECIATION AND AMORTIZATION 3,517,215 3,347,941 -------------- -------------- NET PROPERTY AND EQUIPMENT $ 376,249 $ 556,880 OTHER ASSETS TECHNOLOGY LICENSE/MARKETING AGREEMENT, NET OF ACCUMULATED AMORTIZATION OF $8,500,000 ON OCTOBER 3, 1998 AND ON DECEMBER 31, 1997 $ - $ - OTHER 37,830 37,830 -------------- -------------- TOTAL ASSETS $ 1,546,648 $ 3,928,412 ============== ==============
-2- CONSOLIDATED BALANCE SHEETS OCTOBER 3, 1998 AND DECEMBER 31, 1997 (UNAUDITED) LIABILITIES AND STOCKHOLDERS' INVESTMENT OCTOBER 3, DECEMBER 31, 1998 1997 ------------- -------------- LIABILITIES NOT SUBJECT TO COMPROMISE: CURRENT LIABILITIES: ACCOUNTS PAYABLE $ 238,328 $ 296,419 OBLIGATIONS FOR TRADE-IN MEMORY - - ACCRUED EXPENSES 355,629 461,725 ------------- -------------- TOTAL CURRENT LIABILITIES $ 593,957 $ 758,144 ------------- -------------- NOTES PAYABLE $ 1,063,730 - DEFERRED REVENUE 15,478 15,478 LIABILITIES SUBJECT TO COMPROMISE: ACCOUNTS PAYABLE AND ACCRUED EXPENSES $ 5,415,549 $ 6,325,273 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 - 10,947,784 SHARES ON OCTOBER 3, 1998 AND 10,636,108 SHARES ON DECEMBER 31, 1997 $ 1,094,778 $ 1,063,611 CAPITAL IN EXCESS OF PAR VALUE 15,916,707 15,814,783 CUMULATIVE TRANSLATION ADJUSTMENT 123,987 60,756 RETAINED EARNINGS (DEFICIT) (21,822,772) (19,254,867) LESS - COST OF SHARES HELD IN TREASURY - 1,534,356 ON OCTOBER 3, 1998 AND ON DECEMBER 31, 1997 (854,766) (854,766) ------------- -------------- TOTAL STOCKHOLDERS' INVESTMENT $ (5,542,066) $ (3,170,483) ------------- -------------- TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $ 1,546,648 $ 3,928,412 ============= ==============
-3- CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE NINE MONTHS ENDED OCTOBER 3, 1998 AND SEPTEMBER 27, 1997 (UNAUDITED) QUARTER ENDED NINE MONTHS ENDED OCTOBER 3, SEPTEMBER 27, OCTOBER 3, SEPTEMBER 27, 1998 1997 1998 1997 ------------ ------------ ----------- ---------- REVENUES $ 739,609 $ 1,225,125 $ 2,578,744 $ 8,627,760 COST OF SALES 726,469 1,095,324 2,346,726 5,793,832 ------------- ------------- ------------ ------------ GROSS PROFIT $ 13,140 $ 129,801 $ 232,018 $ 2,833,928 OPERATING EXPENSES: RESEARCH AND DEVELOPMENT $ 451,362 $ 555,043 $ 1,116,704 $ 2,067,447 SELLING 251,130 705,902 812,632 2,912,404 GENERAL AND ADMINISTRATIVE 182,415 357,672 603,030 1,070,165 ------------ ------------- ------------ ------------ $ 884,907 $ 1,618,617 $ 2,532,366 $ 6,050,016 ------------ ------------- ------------ ------------ OPERATING INCOME (LOSS) $( 871,767) $ (1,488,816) $ (2,300,348) $ (3,216,088) OTHER INCOME (EXPENSE): INTEREST EXPENSE $( 35,000) $ ( 30,999) $ ( 35,000) $ ( 74,453) INTEREST INCOME 797 2,368 3,079 21,686 OTHER INCOME (EXPENSE) (34,999) ( 166,886) ( 235,636) ( 210,796) ------------ ------------- ------------ ------------ INCOME (LOSS) BEFORE INCOME TAXES $( 940,969) $ (1,684,333) $ (2,567,905) $ (3,479,651) PROVISION FOR INCOME TAXES $ 0 $ 0 0 0 ------------ ------------- ------------ ------------ NET INCOME (LOSS) $( 940,969) $ (1,684,333) $ (2,567,905) $ (3,479,651) ============ ============= ============ ============ NET INCOME (LOSS) PER COMMON SHARE $ (0.10) $ (0.18) $ (0.28) $ (0.38) ============ ============= ============= ============ WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 9,375,000 9,090,000 9,250,000 9,090,000
-4- CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED OCTOBER 3, 1998 AND SEPTEMBER 27, 1997 FOR THE NINE MONTHS ENDED OCTOBER 3, SEPTEMBER 27, 1998 1997 ---------- ---------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ (2,567,905) $ (3,479,651) Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization $ 215,017 $ 587,258 Amortization of prepaid expenses 24,892 28,990 Common stock issued in lieu of cash 125,907 - Change in assets and liabilities: Decrease in accounts receivable 952,382 356,412 Decrease in inventory 842,161 1,620,495 Decrease in investment in sales-type leases 44,126 486,815 Decrease in prepaid taxes - 2,335,295 Decrease (increase) in prepaid expenses (22,891) 33,653 Decrease in other assets - - Increase (decrease) in accounts payable ( 58,091) 341,175 Decrease in obligations for trade-in memory - ( 21,985) Increase (decrease) in accrued liabilities (106,096) (608,808) Increase (decrease) in deferred revenue - (467,399) Increase (decrease) in liabilities subject to compromise (909,724) - ------------- ------------ Total adjustments $ 1,107,683 $ 4,691,901 ------------- ------------ Net cash provided by (used in) operating activities $ (1,460,222) $ 1,212,250 CASH FLOWS FROM INVESTING ACTIVITIES: Sales (purchases) of Equipment $ 3,500 $ (13,339) ------------ ------------ Net cash provided by (used in) investing activities $ 3,500 $ (13,339) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from sale of common stock $ 7,184 $ 24,875 Proceeds from notes payable 1,063,730 - Repayments under revolving credit agreement - (1,800,000) ------------- ------------ Net cash provided by (used in) financing activities $ 1,070,914 $ (1,775,125) Effect of exchange rate changes on cash 63,231 63,464 ------------ ------------ Net decrease in cash and cash equivalents $ (322,577) $ (512,750) Cash and cash equivalents at beginning of period $ 476,246 $ 615,949 ------------- ------------ Cash and cash equivalents at end of period $ 153,669 $ 103,199 ============= ============ SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ - $ 43,454 Income Taxes - -
-5- FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 3, 1998 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, relating to reinstallation of IBM memory and maintenance. 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: October 3, December 31, 1998 1997 Raw materials $ 399,080 $ 987,920 Work-in-process 103,162 255,377 Finished goods 68,522 169,628 Trade-in memory - - $ 570,764 $ 1,412,925 - 6 - FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 3, 1998 Commission File: 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 ended October 3, 1998 decreased 40% from the comparable three months of the prior year due to decreased sales of the Company's mainframe storage and client/server storage products. For the third quarter of 1998, the gross profit of 2% was lower than the gross profit of 11% in 1997 due primarily to the relative amount of fixed costs in relation to lower revenues. Operating expenses for the three months ended October 3, 1998 decreased 45% from the comparable three months of the prior year due to the cost savings achieved from putting in place additional expense controls. - 7 - FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 3, 1998 Commission File: 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/ Peter J. Kruy Peter J. Kruy Chief Financial Officer Dated: November 16, 1998 - 8 - EX-27 2
5 1000 9-MOS DEC-31-1998 OCT-03-1998 154 0 348 100 571 1133 3893 3517 1547 594 0 0 0 1095 (6637) 1547 2579 2579 2347 2347 268 0 35 (2568) 0 (2568) 0 0 0 (2568) (0.28) (0.28)
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