-----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, MNAhfoWvNj52aab8NuQj8XqgbN7cLjpWOsDwL0USMF3d/L/icQLS4k4LbGXMcqe4 BHmObY5bqJN87Kbv4cA8/g== 0000016590-99-000004.txt : 19990518 0000016590-99-000004.hdr.sgml : 19990518 ACCESSION NUMBER: 0000016590-99-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990403 FILED AS OF DATE: 19990517 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAMBEX CORP CENTRAL INDEX KEY: 0000016590 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER STORAGE DEVICES [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: 99628252 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-Q199/QTR END 4/03/99 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: April 3, 1999 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 APRIL 3, 1999 AND DECEMBER 31, 1998 (UNAUDITED) ASSETS APRIL 3, DECEMBER 31, 1999 1998 CURRENT ASSETS: CASH AND CASH EQUIVALENTS $ 173,013 $ 211,452 ACCOUNTS RECEIVABLE, LESS RESERVES OF $100,000 ON APRIL 3, 1999 AND $100,000 ON DECEMBER 31, 1998 591,235 514,335 CURRENT PORTION OF INVESTMENT IN SALES TYPE LEASES 10,409 25,820 INVENTORIES 509,681 303,720 PREPAID TAXES - - PREPAID EXPENSES 60,600 75,852 TOTAL CURRENT ASSETS $1,344,938 $1,128,179 LEASED EQUIPMENT,AT COST, NET OF ACCUMULATED DEPRECIATION OF $208,000 ON APRIL 3, 1999 AND $208,000 ON DECEMBER 31, 1998 $ - $ - PROPERTY AND EQUIPMENT, AT COST: MACHINERY AND EQUIPMENT $3,047,594 $3,044,199 FURNITURE AND FIXTURES 247,173 247,173 LEASEHOLD IMPROVEMENTS 602,092 602,092 $3,896,859 $3,893,464 LESS-ACCUMULATED DEPRECIATION AND AMORTIZATION 3,618,333 3,585,441 NET PROPERTY AND EQUIPMENT $ 278,526 $ 308,023 OTHER ASSETS TECHNOLOGY LICENSE/MARKETING AGREEMENT, NET OF ACCUMULATED AMORTIZATION OF $8,500,000 ON APRIL 3, 1999 and DECEMBER 31, 1998 $ - $ - OTHER 37,830 37,830 TOTAL ASSETS $1,661,294 $1,474,032
-2- CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS APRIL 3, 1999 AND DECEMBER 31, 1998 (UNAUDITED) LIABILITIES AND STOCKHOLDERS' INVESTMENT APRIL 3, DECEMBER 31, 1999 1998 CURRENT LIABILITIES: REVOLVING LINE OF CREDIT $ 458,869 $ 393,424 ACCOUNTS PAYABLE 465,346 408,841 OBLIGATIONS FOR TRADE-IN MEMORY 360,250 360,250 OTHER LIABILITIES-SHORT TERM 1,554,586 1,146,168 ACCRUED EXPENSES 395,048 394,039 TOTAL CURRENT LIABILITIES 3,234,099 2,702,722 LONG TERM NOTES 1,063,730 1,063,730 OTHER LIABILITIES-LONG TERM 2,726,808 3,173,007 DEFERRED REVENUE 255,366 255,366 STOCKHOLDERS' INVESTMENT: PREFERRED STOCK, $1.00 PAR VALUE PER SHARE AUTHORIZED-3,000,000 SHARES ISSUED-NONE COMMON STOCK, $0.10 PAR VALUE PER SHARE- AUTHORIZED-25,000,000 SHARES ISSUED-11,072,582 SHARES ON APRIL 3, 1999 AND 11,072,582 SHARES ON DECEMBER 31, 1998 $1,107,258 $ 1,107,258 CAPITAL IN EXCESS OF PAR VALUE 15,967,225 15,966,625 ACCUMULATED OTHER COMPREHENSIVE INCOME 88,134 88,134 RETAINED EARNINGS (DEFICIT) (21,926,560) (22,028,044) LESS-COST OF SHARES HELD IN TREASURY- 1,534,356 ON APRIL 3, 1999 AND ON DECEMBER 31, 1998 (854,766) (854,766) TOTAL STOCKHOLDERS' INVESTMENT $(5,618,709) $(5,720,739) TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $ 1,661,294 $ 1,474,032
-3- CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTHS ENDED APRIL 3, 1999 AND APRIL 4, 1998 (UNAUDITED) FOR THE THREE MONTHS ENDED APRIL 3, APRIL 4, 1999 1998 REVENUES $ 1,390,148 $ 909,008 COST OF SALES 624,917 862,510 GROSS PROFIT 765,231 46,498 OPERATING EXPENSES: RESEARCH AND DEVELOPMENT $ 311,728 $ 435,228 SELLING 182,370 280,122 GENERAL AND ADMINISTRATIVE 148,782 207,734 $ 642,880 $ 923,084 OPERATING INCOME (LOSS) $ 122,351 $ (876,586) OTHER INCOME(EXPENSE): INTEREST EXPENSE (35,000) $ 0 INTEREST INCOME 323 1,255 OTHER INCOME(EXPENSE) 13,810 (114,387) INCOME(LOSS) BEFORE INCOME TAXES $ 101,484 $(989,718) CREDIT (PROVISION) FOR INCOME TAXES - - NET INCOME (LOSS) $ 101,484 $(989,718) OTHER COMPREHENSIVE INCOME, NET OF TAX: FOREIGN CURRENCY TRANSLATION ADJUSTMENTS - 68,971 TOTAL COMPREHENSIVE INCOME (LOSS) $ 101,484 $(920,747) TOTAL COMPREHENSIVE INCOME (LOSS) PER COMMON SHARE $ 0.01 $ (0.10) WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 9,500,000 9,100,000
-4- CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED APRIL 3, 1999 AND APRIL 4, 1998 APRIL 3, APRIL 4, 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 101,484 $ (989,718) Adjustments to reconcile net income(loss) to net cash provided by (used in) operating activities: Depreciation and amortization $ 32,892 $ 81,517 Amortization of prepaid expenses 8,422 24,892 Common stock issued in lieu of cash - - Changes in assets and liabilities: Decrease(increase) in accounts receivable (76,900) 537,866 Decrease(increase) in inventory (205,961) 305,634 Decrease in investment in sales-type leases 15,411 14,479 Decrease in prepaid taxes - - Decrease(increase) in prepaid expenses 4,430 (40,979) Decrease in other assets - - Increase(decrease) in accounts payable 56,505 (130,321) Increase in obligations for trade-in memory - - Increase(decrease) in accrued expenses 1,009 105,859 Increase(decrease) in deferred revenue - - Increase(decrease) in liabilities subject to compromise - (36,507) Increase(decrease) in other liabilities (37,781) - Total adjustments $ (201,973) $ 862,440 Net cash used in operating activities $ (100,489) $ (127,278) CASH FLOWS FROM INVESTING ACTIVITIES: Sales (purchases) of Equipment (3,395) 11,000 Net cash provided by (used in) investing activities $ (3,395) $ 11,000 CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings(payments)under revolving line of credit$ 65,445 - Proceeds from sale of common stock - 6,464 Net cash provided by (used in) financing activities $ 65,445 $ 6,464 Effect of exchange rate changes on cash $ - $ 68,971 Net increase (decrease) in cash and cash equivalents $ (38,439) $ (40,843) Cash and cash equivalents at beginning of period $ 211,452 $ 476,246 Cash and cash equivalents at end of period $ 173,013 $ 435,403 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ - $ - Income Taxes - -
-5- FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: April 3, 1999 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: April 3, December 31, 1999 1998 Raw materials $ 357,004 $ 228,524 Work-in-process 48,963 51,215 Finished goods 185,268 23,981 $ 509,681 $ 303,720 - 6 - FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: April 3, 1999 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 first quarter ended April 3, 1999 increased 53% from the comparable three months of the prior year due to increased sales of the Company's disk storage and Fibre Channel connectivity products. The gross profit of 55% for the first quarter of 1999 was higher than the 5% achieved in 1998 due to product mix and to the relative amount of fixed costs in relation to increased revenues. Operating expenses for the three months ended April 3, 1999 decreased 30% from the comparable three months of the prior year due principally to the cost savings achieved from outsourcing certain activities. - 7 - FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: April 3, 1999 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: May 17, 1999 - 8 - EX-27 2
5 1000 3-MOS DEC-31-1999 APR-03-1999 173 0 691 100 510 1345 3897 3618 1661 3234 0 0 0 1107 (6726) 1661 1390 1390 625 625 (14) 0 35 101 0 101 0 0 0 101 0.01 0.01
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