10-Q 1 0001.txt 10Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10Q Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the Quarter ended December 31, 2000 Commission File Number 0-10125 Radiant Technology Corporation (Exact name of registrant as specified in its charter) California 95-2800355 (State or other jurisdiction of (IRS Employer incorporation or organization) identification number) 1335 South Acacia Avenue, Fullerton, CA 92831 (Address of principal executive offices)(Zip Code) (714) 991 - 0200 (Registrant's Telephone number, including area code) Inapplicable (Former name, former address and former fiscal year, if changed since last report) 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 Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, no par value 2,081,678 (Class) (Outstanding at December 31, 2000) 1 RADIANT TECHNOLOGY CORPORATION INDEX Part I Financial Information:...........................................Page No. Condensed Balance Sheets- December 31, 2000 (unaudited) and September 30, 2000 (audited).................................3 Condensed Statement of Operations - Three Months Ended December 31, 2000 and 1999 (unaudited).....................4 Condensed Statement of Cash Flows - Three Months Ended December 31, 2000 and 1999 (unaudited).....................5 Notes to Condensed Financial Statements (unaudited)................6 Management's Discussion and Analysis of Financial Condition and Results of Operation................................7 Part II Other Information Legal Proceedings and Exhibits.....................................7 Signature Page.....................................................8 2 RADIANT TECHNOLOGY CORPORATION CONDENSED BALANCE SHEET
December 31, September 30, 2000 2000 ------------ ------------- (Unaudited) (Audited) ASSETS Current Assets: Cash and equivalents $ 999,255 $ 1,528,383 Accounts receivable 1,437,069 1,844,418 Inventories 1,123,301 689,133 Prepaid expenses 28,391 42,411 Deferred taxes 170,000 170,000 ---------- --------- Total Current Assets 3,758,016 4,274,345 Property and equipment 256,534 265,671 Other assets 825 11,443 -------- ------ Total Assets $ 4,015,375 $ 4,551,459 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term debt $ - $ 500,000 Accounts payable 298,253 397,164 Accrued expenses 353,691 254,754 Income taxes payable 14,900 13,000 Customer deposits 771,076 967,269 ------- ------- Total Current Liabilities 1,437,920 2,132,187 --------- --------- Stockholders' Equity: Capital stock 1,167,608 1,154,483 Retained earnings 1,409,847 1,264,789 --------- --------- Total Stockholders' Equity 2,577,455 2,419,272 -------------------------- --------- --------- Total Liability and Stockholders' Equity $ 4,015,375 $ 4,551,459 ============= ============
3 RADIANT TECHNOLOGY CORPORATION CONDENSED STATEMENT OF OPERATIONS (Unaudited)
Three Months Ended December 31, ------------ 2000 1999 ---- ---- Net sales $1,700,223 $ 866,176 Cost of Sales 1,056,876 504,907 --------- ------- Gross profit 643,347 361,269 ------- ------- Operating expenses: Selling, general and administrative 460,624 286,979 Depreciation and amortization 38,127 44,708 ------ ------ Total operating expenses 498,751 331,687 ------- ------- Income from operations 144,596 29,582 Interest income, net 15,363 8,951 ------ ----- Income before provision for income taxes 159,959 38,533 Provision for income taxes 14,900 - -------- ------- Net income $ 145,059 $ 38,533 =========== ============ Basic earnings per share: Net income $ 0.08 $ 0.02 ============= ============ Diluted earnings per share: Net income $ 0.07 $ 0.02 ============= ============ Basic number of common shares outstanding: 1,916,400 1,895,678 ========= ========= Diluted number of common shares outstanding: 2,070,899 1,895,678 ========= =========
4 RADIANT TECHNOLOGY CORPORATION CONDENSED STATEMENT OF CASH FLOWS (Unaudited)
Year Ended September 30, ------------------------ Three Months Ended ------------------ December 31, ------------ 2000 1999 ---------------------------------- Cash flows from operating activities: Net income $ 145,059 $ 38,535 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 38,126 44,708 Changes in assets and liabilities: (Increase) decrease in: Accounts receivable 407,349 (570,695) Inventories (434,168) (1,064) Prepaid expenses and other assets 13,195 4,669 Increase (decrease) in: Accounts payable (98,911) (102,391) Accrued expenses 98,937 (30,731) Income taxes payable 1,900 - Customer deposits (196,193) 127,832 -------- ------- Net cash provided (used in) operating activities (24,706) (489,137) ------- -------- Cash flows from investing activities: Capital expenditures (17,547) (9,343) ------- ------ Cash flows from financing activities: Issuance of common stock 13,125 - Repayment of line of credit (500,000) (1,500,000) -------- ---------- Net cash provided (used in) financing activities (486,875) (1,500,000) -------- ---------- Net increase (decrease) in cash and equivalents (529,128) (1,998,480) Cash and equivalents, beginning of year 1,528,383 2,384,902 --------- --------- Cash and equivalents, end of year $ 999,255 $ 386,422 ========= =========
5 RADIANT TECHNOLOGY CORPORATION PART I FINANCIAL INFORMATION - CONTINUED Notes to Condensed Financial Statement for December 31, 2000 (Unaudited) ITEM 1 - Notes 1. General The accompanying unaudited consolidated financial statements of Radiant Technology Corporation (the "Company") have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Form 10-K for the year ended September 30, 2000. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for the fair presentation have been included. Operating results for interim periods are not necessarily indicative of results expected for a full year. ITEM 2 - Management's Discussion and Analysis of Financial Condition and Results of Operation All statements, other than statements of historical fact, included in this Form 10-Q are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, statements contained in this Form 10-Q. Financial Condition, Liquidity and Capital Resources The Company's cash and equivalents decreased from $1,528,383 at September 30, 2000 to $999,255 at December 31, 2000. This decrease of $529,128 is attributable to the use of cash in operating activities of $24,706, use of cash in investing activities of $17,547 and use of cash, $486,875, in the repayment of financing activities. Management believes that the expected revenues from operations, supplemented by the cash on hand, will be sufficient to provide adequate cash to fund anticipated working capital and other cash needs during the remainder of the year. Results of Operations Sales were approximately $1,700,223 and $866,176 for the three months ended December 31, 2000 and 1999, respectively, an increase of 96.29%. The increase in revenues from 1999 to 2000 resulted principally from increased backlog from repeat customers. 6 ITEM 2 - Management's Discussion and Analysis of Financial Condition and Results of Operation (Continued) The Company's overall cost of sales increased as a percentage of sales for the three months ended December 31, 2000 (62%) compared to the three months ended December 31, 1999 (58%). The increase compared to the prior year is attributed to additional costs incurred in managing an influx of orders and streamlining the process flow to manage continued increases in equipment orders. RTC uses technology to reduce both cost of sales, the maintenance of optimal inventory levels and operating expenses, optimizing both cash flow and company profits. RADIANT TECHNOLOGY CORPORATION PART II - OTHER INFORMATION Item 1. Legal Proceedings None. Item 6. Reports on 8-K None. 7 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. RADIANT TECHNOLOGY CORPORATION ------------------------------ (Registrant) Dated: February 13, 2001 /s/ L. R. McNamee Lawrence R. McNamee Chairman of the Board, Chief Operating Officer, Chief Executive Officer 8