-----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, Wlp16+u4hwIEeL4ngcvKAcMcrjtAFadwkmzw6e42YDjy2IS0q38dbc60Zttby6EY j5IJWfXf0ryjuSs8eblQKQ== 0000016590-99-000008.txt : 19991115 0000016590-99-000008.hdr.sgml : 19991115 ACCESSION NUMBER: 0000016590-99-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991002 FILED AS OF DATE: 19991112 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: 99749804 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-Q399/QTR END 10/02/99 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: October 2, 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 OCTOBER 2, 1999 AND DECEMBER 31, 1998 (UNAUDITED) ASSETS OCTOBER 2, DECEMBER 31, 1999 1998 CURRENT ASSETS: CASH AND CASH EQUIVALENTS $ 104,076 $ 211,452 ACCOUNTS RECEIVABLE, LESS RESERVES OF $100,000 ON OCTOBER 2, 1999 AND $100,000 ON DECEMBER 31, 1998 259,059 514,335 CURRENT PORTION OF INVESTMENT IN SALES TYPE LEASES - 25,820 INVENTORIES 639,099 303,720 PREPAID TAXES - - PREPAID EXPENSES 54,394 72,852 TOTAL CURRENT ASSETS $1,056,628 $1,128,179 LEASED EQUIPMENT,AT COST, NET OF ACCUMULATED DEPRECIATION OF $208,000 ON OCTOBER 2, 1999 AND $208,000 ON DECEMBER 31, 1998 $ - $ - PROPERTY AND EQUIPMENT, AT COST: MACHINERY AND EQUIPMENT $3,052,887 $3,044,199 FURNITURE AND FIXTURES 247,173 247,173 LEASEHOLD IMPROVEMENTS 602,092 602,092 $3,902,152 $3,893,464 LESS-ACCUMULATED DEPRECIATION AND AMORTIZATION 3,684,117 3,585,441 NET PROPERTY AND EQUIPMENT $ 218,035 $ 308,023 OTHER ASSETS TECHNOLOGY LICENSE/MARKETING AGREEMENT, NET OF ACCUMULATED AMORTIZATION OF $8,500,000 ON OCTOBER 2, 1999 and DECEMBER 31, 1998 $ - $ - OTHER 37,830 37,830 TOTAL ASSETS $1,312,493 $1,474,032
-2- CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS OCTOBER 2, 1999 AND DECEMBER 31, 1998 (UNAUDITED) LIABILITIES AND STOCKHOLDERS' INVESTMENT OCTOBER 2, DECEMBER 31, 1999 1998 CURRENT LIABILITIES: REVOLVING LINE OF CREDIT $ 552,696 $ 393,424 ACCOUNTS PAYABLE 374,579 408,841 OBLIGATIONS FOR TRADE-IN MEMORY 360,250 360,250 OTHER LIABILITIES-SHORT TERM 637,820 1,146,168 ACCRUED EXPENSES 529,681 394,039 TOTAL CURRENT LIABILITIES 2,455,026 2,702,722 LONG TERM NOTES 1,273,730 1,063,730 OTHER LIABILITIES-LONG TERM 2,720,709 3,173,007 DEFERRED REVENUE 101,366 255,366 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-11,074,832 SHARES ON OCTOBER 2, 1999 AND 11,072,582 SHARES ON DECEMBER 31, 1998 $1,107,483 $ 1,107,258 CAPITAL IN EXCESS OF PAR VALUE 15,967,670 15,966,625 ACCUMULATED OTHER COMPREHENSIVE INCOME 88,134 88,134 RETAINED EARNINGS (DEFICIT) (21,546,859) (22,028,044) LESS-COST OF SHARES HELD IN TREASURY- 1,534,356 ON OCTOBER 2, 1999 AND ON DECEMBER 31, 1998 (854,766) (854,766) TOTAL STOCKHOLDERS' INVESTMENT $(5,238,338) $(5,720,793) TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $ 1,312,493 $ 1,474,032
-3- CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME FOR THE NINE MONTHS ENDED OCTOBER 2, 1999 AND OCTOBER 3, 1998 (UNAUDITED) FOR THE QUARTER ENDED FOR THE NINE MONTHS ENDED OCTOBER 2, OCTOBER 3, OCTOBER 2, OCTOBER 3, 1999 1998 1999 1998 REVENUES $ 867,492 $ 739,609 $ 2,870,416 $ 2,578,744 COST OF SALES 314,282 726,469 1,183,655 2,346,726 GROSS PROFIT 553,210 13,140 1,686,761 232,018 OPERATING EXPENSES: RESEARCH AND DEVELOPMENT $ 201,556 $ 451,362 837,016 1,116,704 SELLING 216,238 251,130 586,052 812,632 GENERAL AND ADMINISTRATIVE 132,315 182,415 433,024 603,030 $ 550,109 $ 884,907 $ 1,856,092 $ 2,532,366 OPERATING INCOME (LOSS) $ 3,101 $ (871,767) $ (169,331) $(2,300,348) OTHER INCOME(EXPENSE): INTEREST EXPENSE (45,618) $ (35,000) $ (118,648) $ (35,000) INTEREST INCOME - 797 405 3,079 OTHER INCOME(EXPENSE) 255,411 (34,999) 768,759 (235,636) INCOME(LOSS) BEFORE INCOME TAXES $ 212,894 $ (940,969) $ 481,185 $(2,567,905) CREDIT (PROVISION) FOR INCOME TAXES - - - - NET INCOME (LOSS) $ 212,894 $ (940,969) $ 481,185 $(2,567,905) OTHER COMPREHENSIVE INCOME, NET OF TAX: FOREIGN CURRENCY TRANSLATION ADJUSTMENTS - 3,546 - 63,231 TOTAL COMPREHENSIVE INCOME (LOSS) $ 212,894 $ (937,423) $ 481,185 $(2,504,674) TOTAL COMPREHENSIVE INCOME (LOSS) PER COMMON SHARE $ 0.02 $ (0.10) $ 0.05 $ (0.27) WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 9,540,000 9,375,000 9,540,000 9,250,000
-4- CAMBEX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED OCTOBER 2, 1999 AND OCTOBER 3, 1998 OCTOBER 2, OCTOBER 3, 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ 481,185 $(2,567,905) Adjustments to reconcile net income(loss) to net cash provided by (used in) operating activities: Depreciation and amortization $ 98,676 $ 215,017 Amortization of prepaid expenses 7,822 24,892 Common stock issued in lieu of cash - 125,907 Changes in assets and liabilities: Decrease(increase) in accounts receivable 255,276 952,382 Decrease(increase) in inventory (335,379) 842,161 Decrease in investment in sales-type leases 25,820 44,126 Decrease in prepaid taxes - - Decrease(increase) in prepaid expenses 11,636 (22,891) Decrease in other assets - - Increase(decrease) in accounts payable (34,262) (58,091) Increase in obligations for trade-in memory - - Increase(decrease) in accrued expenses 135,642 (106,096) Increase(decrease) in deferred revenue (154,000) - Increase(decrease) in liabilities subject to compromise - (909,724) Increase(decrease) in other liabilities (960,646) - Total adjustments $ (949,415) $ 1,107,683 Net cash used in operating activities $ (468,230) $(1,460,222) CASH FLOWS FROM INVESTING ACTIVITIES: Sales (purchases) of Equipment (8,688) 3,500 Net cash provided by (used in) investing activities $ (8,688) $ 3,500 CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings(payments)under revolving line of credit$ 159,272 - Proceeds from sale of common stock 270 7,184 Proceeds from notes payable 210,000 1,063,730 Net cash provided by (used in) financing activities $ 369,542 $ 1,070,914 Effect of exchange rate changes on cash $ - $ 63,231 Net increase (decrease) in cash and cash equivalents $(107,376) $ (322,577) Cash and cash equivalents at beginning of period $ 211,452 $ 476,246 Cash and cash equivalents at end of period $ 104,076 $ 153,669 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ 10,648 $ - Income Taxes - -
-5- FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 2, 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: October 2, December 31, 1999 1998 Raw materials $ 377,463 $ 228,524 Work-in-process 43,897 51,215 Finished goods 217,739 23,981 $ 639,099 $ 303,720 - 6 - FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 2, 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. (3) Management's Discussion and Analysis of Financial Condition and Results of Operations Revenues for the third quarter ended October 2, 1999 increased 18% from the comparable three months of the prior year due to increased sales of the Company's Fibre Channel connectivity products. The gross profit of 64% for the third quarter of 1999 was higher than the 2% achieved in 1998 due to product mix and decreased fixed costs. Operating expenses for the three months ended October 2, 1999 decreased 38% from the comparable three months of the prior year due principally to the cost savings achieved from putting in place additional expense controls. Other income for the three months ended October 2, 1999 was primarily retirement of debt at a discount from face value. Other expense for the three months ended October 3, 1998 was primarily legal and professional fees. -7- FORM 10-Q CAMBEX CORPORATION AND SUBSIDIARIES For The Quarter Ended: October 2, 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: November 12, 1999 - 8 - EX-27 2
5 1000 9-MOS DEC-31-1999 OCT-02-1999 104 0 359 100 639 1057 3902 3684 1312 2455 0 0 0 1107 (6345) 1312 2870 2870 1183 1183 (769) 0 119 481 0 481 0 0 0 481 0.05 0.05
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