10-Q 1 radiant_10q.txt 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 March 31, 2001 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 (I.R.S 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 March 31, 2001) 1 RADIANT TECHNOLOGY CORPORATION INDEX Part I Financial Information:...........................................Page No. Condensed Balance Sheet- March 31, 2001 and September 30, 2000 (unaudited)...............................3 Condensed Statement of Operations - Three Months Ended March 31, 2001 and 2000 (unaudited)........................4 Condensed Statement of Operations - Six Months Ended March 31, 2001 and 2000 (unaudited)........................4 Condensed Statement of Cash Flows - Three Months Ended March 31, 2001 and 2000 (unaudited)........................5 Condensed Statement of Cash Flows - Six Months Ended March 31, 2001 and 2000 (unaudited)........................6 Notes to Condensed Financial Statements (unaudited)................7 Management's Discussion and Analysis of Financial Condition and Results of Operation................................7 Part II Other Information: Legal Proceedings and Exhibits.....................................8 Signature Page.....................................................9 2 RADIANT TECHNOLOGY CORPORATION PART I FINANCIAL INFORMATION CONDENSED BALANCE SHEETS (UNAUDITED) ASSETS March 31 September 30 2001 2000 ------- ---------- Current Assets Cash ........................................ $1,128,416 $1,528,383 Accounts Receivable - Net ................... 955,387 1,844,418 Inventories ................................. 926,952 689,133 Prepaid Expenses ............................ 12,360 42,411 Deferred Income Taxes ....................... 170,000 170,000 ------- ------- Total Current Assets ..................... 3,193,115 4,274,345 Machinery and Equipment - Net ..................... 241,074 265,671 Other Assets ...................................... 3,773 11,443 ----- ------ Total Assets ................................ $3,437,962 $4,551,459 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Notes Payable ............................... $ -- $ 500,000 Accounts Payable ............................ 210,343 397,164 Accrued Expenses ............................ 350,026 254,754 Customer Deposits ........................... 216,189 967,269 Income Tax Payable .......................... 21,528 13,000 ------ ------ Total Current Liabilities ................... 798,086 2,132,187 ------- --------- Stockholders' Equity Common Stock, no par value ................... 1,167,608 1,154,483 Retained Earnings ........................... 1,472,268 1,264,789 ------- --------- Total Stockholders' Equity ................... 2,639,876 2,419,272 ------- --------- Total Liabilities and Stockholders' Equity ........... $3,437,962 $4,551,459 ========== ========== 3 RADIANT TECHNOLOGY CORPORATION PART I FINANCIAL INFORMATION-CONTINUED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Six Months Ended March 31 March 31 2001 2000 2001 2000 ---- ---- ------ ---- Net Sales $1,777,458 $991,211 $3,477,681 $1,857,389 Cost of Sales 1,277,896 668,037 2,334,772 1,172,944 ------------ ------- --------- --------- Gross Profit 499,562 323,174 1,142,909 684,445 Operating Expenses: Selling, general and administrative 414,889 282,257 888,513 571,414 Depreciation and amortization 31,122 30,328 69,249 72,858 ------ ------ ------ ------ Total Operating Expenses 459,011 312,585 957,762 644,272 ------- ------- ------- ------- Income from Operations 40,551 10,589 185,147 40,173 Interest Income, net 15,497 7,260 30,860 16,211 ------------ ----- -------- ------ Income Before Tax Provision (Benefit) 56,048 17,849 216,007 56,384 Provision (Benefit) for Income Taxes (6,372) - 8,528 - ----------- ------------ -------- -------- Net Income $62,420 $17,849 $207,479 $56,384 ========= ======== ========= ========= Basic Earning per Share: Net Income $0.03 $0.01 $0.10 $0.03 ============= ===== ===== ========= Diluted Earning per Share: Net Income $0.03 $0.01 $0.10 $0.03 ============= ===== ===== ========= Basic Weighted Average shares outstanding 2,081,678 1,905,678 1,994,178 1,905,678 ========= ========= ========= ========= Diluted Weighted Average shares outstanding 2,259,511 2,243,729 2,172,011 2,243,729 ========= ========= ========= ========= 4
RADIANT TECHNOLOGY CORPORATION PART I FINANCIAL INFORMATION-CONTINUED CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) THREE MONTHS ENDED March 31 2001 2000 ----------- ----------- Cash Flows From Operating Activities: Net Income ..................................... $ 62,420 $ 17,849 Adjustments To Reconcile Income To Net Cash From Operating Activities: Depreciation And Amortization .................. 31,122 30,328 Changes In Assets And Liabilities: Accounts Receivable ......................... 481,682 (13,378) Inventories .................................. 196,350 (129,230) Prepaid Expenses ............................. 16,031 0 Other Assets ................................. (2,948) 24,595 Accounts Payable ............................. (87,910) 54,588 Accrued Expenses ............................. (3,665) 28,906 Customer Deposits ............................ (554,887) 290,958 Income Tax Payable ........................... 6,628 0 ----------- ----------- Net Cash From Operating Activities ................ 144,822 304,616 ----------- ----------- Cash Flows From Investing Activities: Purchase Of Property And Equipment ............. 15,662 0 ----------- ----------- Cash Flows From Financing Activities: Stock Issued For Cash .............................. 0 625 ----------- ----------- Net Cash From Financing Activities ................. 0 625 Net Increase (Decrease) In Cash ..................... 129,161 305,241 Cash At Beginning Of Period ......................... 999,255 386,422 ---------- ----------- Cash At End Of Period ...............................$ 1,128,416 $ 691,663 =========== =========== 5 RADIANT TECHNOLOGY CORPORATION PART I FINANCIAL INFORMATION-CONTINUED CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED) SIX MONTHS ENDED March 31 2001 2000 ----------- ----------- Cash Flows From Operating Activities: Net Income ........................ $ 207,479 $ 56,384 Adjustments To Reconcile Income To Net Cash From Operating Activities: Depreciation And Amortization ..... 69,249 72,858 Changes In Assets And Liabilities: Accounts Receivable ............. 889,031 (584,073) Inventories ..................... (237,819) (130,294) Prepaid Expenses ................ 30,051 -- Other Assets .................... 7,670 31,442 Accounts Payable ................ (186,821) (47,803) Accrued Expenses ................ 95,272 (1,825) Customer Deposits ............... (751,080) 418,790 Tax Payable ..................... 8,528 -- ----------- ----------- Net Cash From Operating Activities ... 131,560 (184,521) ----------- ----------- Cash Flows From Investing Activities: Purchase Of Property And Equipment (44,652) (9,343) ----------- ----------- Cash Flows From Financing Activities: Stock Issued For Cash ............... 13,125 625 Repayment Of Line Of Credit ......... (500,000) (1,500,000) ----------- ----------- Net Cash Used By Financing Activities (486,875) 1,499,375 ----------- ----------- Net Decrease In Cash ................. (399,967) (1,693,239) Cash At Beginning Of Period .......... 1,528,383 2,327,925 ----------- ----------- Cash At End Of Period ................ $ 1,128,416 $ 691,663 =========== =========== 6 RADIANT TECHNOLOGY CORPORATION PART I FINANCIAL INFORMATION - CONTINUED NOTES TO CONDENSED FINANCIAL STATEMENTS FOR MARCH 31, 2001 (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, performance or achievements expressed or implied by such forward-looking 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 $1,128,416 at March 31, 2001. This decrease of $399,967 is attributable to cash generated from operating activities of $131,560, use of cash in investing activities of $44,652 and use of cash of $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. 7 Results of Operations Sales were approximately $1,777,458 and $991,211 for the three months ended March 31, 2001 and 2000, respectively, an increase of 79.3%. The increase in revenues from 2000 to 2001 resulted principally from increased shipments to solar cell manufacturers. The Company's overall cost of sales increased as a percentage of sales for the three months ended March 31, 2001 to 71.9%, compared to the three months ended March 31, 2000 of 67.4%. The increase is attributed to additional costs incurred in managing an influx of orders and streamlining the process flow to manage continued increases in equipment orders. Net income increased to 3.5% of sales for the quarter ending March 31, 2001 compared to 1.8% for the quarter ending March 31, 2000 due to reductions in operating expenses to 25.8% of sales from 31.5% of sales in the prior year. Year-to-date sales were $3,477,681 and $1,857,389 for the six months ended March 31, 2001 and 2000, respectively, an increase of 87.2%. The increase in revenues from 2000 to 2001 resulted principally from increased shipments to solar cell manufacturers and additional sales to existing customers. The Company's overall cost of sales increased as a percentage of sales for the six months ended March 31, 2001 to 67.2%, compared to the six months ended March 31, 2000 of 63.2%. The increase is attributed to additional costs incurred in managing an influx of orders and streamlining the process flow to manage continued increases in equipment orders. Net income increased to 6.0% of sales for the six months ending March 31, 2001 compared to 3.0% for the comparable period ending March 31, 2000 due to reductions in operating expenses to 27.5% of sales from 34.7% of sales in the prior year. RADIANT TECHNOLOGY CORPORATION PART II - OTHER INFORMATION Item 1. Legal Proceedings None. Item 6. Reports on 8-K None. 8 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: May 15, 2001 /s/ L. R. McNamee ------------------------------- Lawrence R. McNamee Chairman of the Board, Chief Operating Officer, Chief Executive Officer