-----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, TawoB2y22gvzfxbD1cat55oNmG1aGwljbgYooCsJl6t96N66ycrGG5a7qj9mYq5M AXh4qgBIoAcKs4jyPc8rCg== 0000350644-97-000009.txt : 19971117 0000350644-97-000009.hdr.sgml : 19971117 ACCESSION NUMBER: 0000350644-97-000009 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SCIENCE DYNAMICS CORP CENTRAL INDEX KEY: 0000350644 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 222011859 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-10690 FILM NUMBER: 97721528 BUSINESS ADDRESS: STREET 1: 1919 SPRINGDALE RD CITY: CHERRY HILL STATE: NJ ZIP: 08003 BUSINESS PHONE: 6094240068 10QSB 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-QSB (Mark One) [x] QUARTERLY REPORT UNDER SECTION 13 0R 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 1997 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from ______________ to ______________ Commission file number 010690 ____________________ Science Dynamics Corporation ------------------------------------------------------------------- (Exact name of small business issuer as specified in its charter) Delaware ------------------------------------------------------------ (State or other jurisdiction of incorporation or organization) 22-2011859 ------------------------------- (IRS Employer Identification No.) 1919 Springdale Road, Cherry Hill, New Jersey 08003 ----------------------------------------------------- (Address of principal executive offices) ( 609 ) 424-0068 ----------------------------------------------------- (Issuer's telephone number) N/A --------------------------------------------------------------- (Former name, former address, and former fiscal year, if changed since last report) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 [ ] APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS Check whether the registrant filed all documents and reports required to be filed by Section 12, 13, or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. Yes [ ] No [ ] APPLICABLE ONLY TO CORPORATE ISSUERS State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 09/30/97 14,535,649 shares of common stock were outstanding. S C I E N C E D Y N A M I C S C O R P O R A T I O N INDEX ----- PAGE NO. -------- PART I. FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Balance sheets as of September 30, 1997 1 (unaudited) and December 31, 1996 (audited) Consolidated Statements of Income (loss) for nine 2 months and three months ended September 30, 1997 (unaudited) and nine months and three months ended September 30, 1996 (unaudited) Consolidated Statements of Cash Flows for nine 3 months and three months ended September 30, 1997 (unaudited) and nine months and three months ended September 30, 1996 (unaudited) Consolidated Statements of Shareholders' Equity 4 for the period ending December 31, 1996 (audited) and the three months ending September 30, 1997 (unaudited) Notes to Financial Statements 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 5 - 11 PART II. OTHER INFORMATION Item 1. Legal Proceeding 11 Item 2. Changes in Securities 11 Item 3. Defaults upon Senior Securities 11 Item 4. Submission of Matters to Vote of Security Holders 11 Item 5. Other Information 11 Item 6. Exhibits 12 Item 7. Signatures 12 PART 1. FINANCIAL INFORMATION Item 1. Financial Statements: SCIENCE DYNAMICS CORPORATION AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
ASSETS September 30, December 31, 1997 1996 Unaudited Audited --------- ------- Current assets: Cash and cash equivalents $ 178,397 $ 830,229 Accounts receivable - trade 425,459 87,726 - other - 200,000 Inventories 325,550 581,277 Other current assets 36,853 42,095 --------------- -------------- Total current assets 966,259 1,741,327 --------------- -------------- Property and equipment, net 226,727 208,376 Software development costs, net of accumulated amortization of $251,930 in 1997 and $173,745 in 1996 270,347 347,489 Deferred income taxes 308,000 308,000 Intangible Assets, net of accumulated amortization of $225,000 1,275,000 1,500,000 Other assets 42,757 41,295 --------------- -------------- Total assets $ 3,089,090 $ 4,146,487 =============== ============== LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 113,220 $ 372,913 Accrued expenses, principally payroll related 53,324 184,703 --------------- -------------- Total current liabilities 166,544 557,616 --------------- -------------- Long term debt: Long term debt payable - 500,000 --------------- -------------- Total liabilities 166,544 1,057,616 =============== ============== Shareholders' equity - Common stock - .01 par value, 25,000,000 shares authorized, 14,661,449 and 12,055,861 issued 14,535,649 and 11,930,061 outstanding in 1997 and 1996 146,614 120,558 Additional paid-in capital 10,166,429 9,615,191 Retained earnings (deficit) (6,992,664) (6,249,045) --------------- -------------- 3,320,379 3,486,704 Common stock held in treasury, at cost (397,833) (397,833) Total shareholders' equity 2,922,546 3,088,871 --------------- -------------- Total liabilities and shareholders' equity $ 3,089,090 $ 4,146,487 =============== ============== - -4-
PART 1. FINANCIAL INFORMATION Item 1. Financial Statements (Continued): SCIENCE DYNAMICS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Nine Months Ended September 30, Three Months Ended September 30, 1997 1996 1997 1996 ---- ---- ---- ---- NET SALES $ 3,366,792 $ 1,821,298 $ 548,280 $ 644,356 ------------- ------------ -------------- ------------- Operating costs and expenses: Cost of sales 1,626,411 1,339,965 303,373 391,923 Research and development 791,169 726,776 386,776 382,135 Selling, general and administrative 1,678,863 1,471,370 488,870 248,747 ------------- ------------ -------------- ------------- 4,096,443 3,538,111 1,179,019 1,022,805 ------------- ------------ -------------- ------------- Operating income (loss) (729,651) (1,716,813) (630,739) (378,449) Other income (expenses): Interest and other investment income 15,434 - 3,660 - Interest expense (29,402) (62,979) - (35,981) ------------- ------------ -------------- ------------- Net Income (Loss) $ (743,619) $ (1,779,792) $ (627,079) $ (414,430) ============= ============ ============== ============= Net Income (Loss) per common share $ (0.06) $ (0.20) $ (0.05) $ (0.05) ============= ============ ============== ============= - -5-
PART 1. FINANCIAL INFORMATION Item 1. Financial Statements (Continued): SCIENCE DYNAMICS CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
Nine Months Ended September 30, Three Months Ended September 30, 1997 1996 1997 1996 ---- ---- ---- ---- Cash flows from operating activities: Net income (loss) $ (743,619) $ (1,779,792) $ (627,079) $ (414,430) ------------ ------------- ------------- -------------- Adjustments to reconcile net (loss) to net cash provided by (used for) operating activities: Depreciation 49,387 42,648 17,967 13,110 Amortization of capitalized software 78,185 131,444 26,062 40,012 Amortization of Intangible assets 225,000 - 75,000 - Other non-cash expense 29,402 - - - Changes in operating assets and liabilities: (Increase) decrease in: Accounts receivable (337,733) 155,189 215,299 (28,189) Other Receivables 200,000 (500,000) 150,000 (500,000) Inventories 255,727 142,671 130,672 (84,026) Other current assets 5,242 57,219 (11,386) 10,571 Other assets (1,462) 1,550 (1,462) (2,365) Increase (decrease) in: Accounts payable and accrued expenses (344,223) 407,211 (277,852) 129,113 ------------ ------------- ------------- -------------- Total adjustments 159,525 437,932 324,300 (421,774) ------------ ------------- ------------- -------------- Net cash provided by (used for) operating activities (584,094) (1,341,860) (302,779) (836,204) ------------ ------------- ------------- -------------- Cash flows from investing activities: Purchase of property and equipment - net (67,738) (15,698) (24,032) (4,829) ------------ ------------- ------------- -------------- Net cash (used) in investing activities (67,738) (15,698) (24,032) (4,829) ------------ ------------- ------------- -------------- Cash flows from financing activities: Increase (decrease) in notes payable - 490,000 - - Increase (decrease) in Loans Payable - 32,000 - 32,000 Issuance of common stock and warrants - 863,499 - 852,000 ------------ ------------- ------------- -------------- Net cash (used in) provided by financing activities - 1,385,499 - 884,000 Net increase (decrease) in cash and cash equivalents (651,832) 27,941 (326,811) 42,967 ------------ ------------- ------------- -------------- Cash and cash equivalents - beginning of period 830,229 22,626 505,208 7,600 ------------ ------------- ------------- -------------- Cash and cash equivalents - end of period $ 178,397 $ 50,567 $ 178,397 $ 50,567 ============ ============= ============= ============== - -6-
PART 1. FINANCIAL INFORMATION Item 1. Financial Statements (Continued): SCIENCE DYNAMICS CORPORATION AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 1996 AND NINE MONTHS ENDED SEPTEMBER 31, 1997 ------------------------------------
Common Stock Additional Retained ------------ Paid-In Earnings Shares Amount Capital (Deficit) Shares Amount ------ ------ ------- --------- ------ ------ Balance December 31, 1995 $8,048,778 $ 80,488 $ 6,955,899 $ (4,630,698) 125,800 $ 397,833 Issuance of common stock and warrants 2,047,083 20,470 943,019 - - - Issuance of common stock for acquisition of intellectual property 1,500,000 15,000 1,485,000 - - - Issuance of common stock to pay note payable to investment company 460,000 4,600 231,273 - - - Net loss - - - (1,618,347) - - ---------- ------- --------- ----------- ------- ------- Balance December 31, 1996 12,055,861 120,558 9,615,191 (6,249,045) 125,800 397,833 ---------- ------- --------- ----------- ------- ------- Issuance of common stock to pay long term debt & related interest 2,605,588 26,056 551,238 - - - Net loss - - - (743,619) - - ---------- ------- --------- ----------- ------- ------- Balance September 30, 1997 14,661,449 $ 146,614 $ 10,166,429 $ (6,992,664) 125,800 $ 397,833 ---------- ------- --------- ----------- ------- ------- - -7-
SCIENCE DYNAMICS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) PART I Item 1. (continued) Basis of Presentation The financial statements included in this Form 10-QSB 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. These financial statements should be read in conjunction with the financial statements and related notes included in the Company's Fiscal Form 10-KSB. The financial statements presented herein, as of September 30, 1997 reflect in the opinion of management, all adjustments necessary for a fair presentation of financial position and the results of operations for the periods presented. The results of operations for any interim period are not necessarily indicative of the results for the full year. Income per share ---------------- Income per common share is computed by dividing net income applicable to common stock by the weighted average number of shares of common stock and common share equivalents outstanding during each period. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997. Business Overview ----------------- Science Dynamics Corporation designs, develops and markets value-added software and systems, which integrates the computer and telephone (Computer Telephony Integration, CTI), which provides solutions to various telcos and business telecommunications needs. The company has focused on a product strategy to develop new applications that will expand its product offerings and ultimately its customer base. The methodology is to develop versatile, cost effective methods to provide communications solutions with the integration of voice, data, and video transmission over existing infrastructures for both local and worldwide area networks. - -5- The Company's initial product line resulting from the frame relay technology acquired in November 1996, the VFX-250 was recently introduced and has been successfully tested across a wide range of Frame Relay and Codec manufacturers in the U.S., Canada and Taiwan. The main application of the VFX product is to allow videoconferencing over Frame Relay. The transmission of Video over any digital network requires the use of Video Encoders/Decoders (often referred to as Codecs). Most video Codecs, however, are designed to run on 'Leased Line' or ISDN type services, which provide a transparent path for a continuous bit-stream. The versatility of the VFX product allows video to be incorporated into an existing network, providing an instant upgrade to Frame Relay Networking facilities. The VFX-250 is being shipped in two forms, either as an OEM integrated VFX-250C card for FRAD and Codec manufacturers, or a stand-alone product, VFX-250S. The next application for release is the Commander Inmate Call Control System that will replace the Company's existing CCTD product in the Inmate Call Control Arena. This is a software version of the CCTD ported to Windows NT(TM) operating system. This product provides advanced call control functions and feature capabilities, which will carry the product into the next century. Additionally, the Company is developing a Voice over IP (Internet Protocol) product that enables the transmission of data or voice over intranet or internet networks eliminating the expensive long distance toll charges. Several other products are in various stages of development that are intended to provide a continual roll out of product offerings which management feels should provide the company with future revenue growth. Results of Operations --------------------- SCIENCE DYNAMICS CORPORATION AND SUBSIDIARIES --------------------------------------------- The following table summarizes the basic results of operations for the periods indicated in the Consolidated Statement of Operations. Nine Months ended September 30, 1997 compared to the Nine Months ended September 30, 1996 (unaudited). Nine Months Ended September 30, 1997 1996 ---- ---- Sales $3,366,792 $1,821,298 Net Income (Loss) $ (743,619) $(1,779,792) Net Income Per Share $(0.06) $(.20) - -6- OPERATING EXPENSES PERCENT OF SALES 1997 1996 1997 1996 ---- ---- ---- ---- Cost of Goods Sold $1,626,411 $1,339,965 48.3% 73.6% Research & Development 791,169 726,776 23.5% 39.9% Selling, General & Admin 1,678,863 1,471,370 49.9% 80.8% Total Operating Costs and $4,096,443 $3,538,111 121.7% 194.3% Expenses For the first nine months of 1997, the sales increased 84.9% to $3,366,792 from $1,821,298 in the comparable 1996 period. The increase was attributable to the sales of the Commander Plus prison inmate phone control system, which included the newly developed automated operator services software. Cost of Goods Sold increased to $1,626,411 in the first nine months of 1997, a 21.4% increase from $1,339,965 in the first nine months of 1996, due to the substantial increase in sales. As a percentage of sales, the cost of goods decreased to 48.3% in the 1997 nine month period as compared to 73.6% in the comparable period of 1996. The Company continues to investigate areas to improve the profit margins and believes expanding the market segments and introducing new products and product enhancements will increase the volume purchased maximizing purchasing power. Research & Development expenses increased to $791,169 in the first nine months of 1997, an 8.9% increase over the corresponding period of 1996. As a percentage of sales, the expenses decreased to 23.5% in the nine months period of 1997 compared to 39.9% in the nine month period of 1996. The decrease is a direct result of the increased sales level. The Company expects to continue expending funds in research and development to facilitate the new development efforts. Selling, General and Administrative expenses in the first nine months of 1997 increased 14.1% to $1,678,863 as compared to $1,471,370 in the corresponding nine month period ending September 30, 1996. As a percentage of sales, the SG&A decreased to 49.9% in the nine months period as compared to 80.8% in the comparable period of 1996.This decrease in the percentage is attributable to the increase in sales for the nine months ended September 30, 1997. The increase in absolute dollars has several contributing factors. A significant portion of the increase is associated with the establishment of the international sales office in the U.K.Other contributing factors were the additional expenses such as rent and utilities which were incorporated into SG&A as a result of the elimination of the manufacturing facility and increases in consulting, investor relations and professional fees necessary to improve the Company's financial and shareholder relations program. - -7- Three Months ended September 30, 1997 compared to the Three Months ended September 30, 1996 (unaudited). Three Months Ended September 30, 1997 1996 ---- ---- Sales $ 548,280 $ 644,356 Net Income (Loss) $ (627,079) $( 414,430) Net Income Per Share $(0.05) $(.05) OPERATING EXPENSES PERCENT OF SALES 1997 1996 1997 1996 ---- ---- ---- ---- Cost of Goods Sold $ 303,373 $ 391,923 55.3% 60.8% Research & Development 386,776 382,135 70.5% 59.3% Selling, General & Admin 488,870 248,747 89.2% 38.6% Total Operating Costs and $1,179,019 $1,022,805 215.0% 158.7% Expenses Sales for the three months ended September 30, 1997 were $548,280 compared to $644,356 for the three months ended September 30, 1996. The sales results were substantially below original expectations. The Company continues to be subject to period to period fluctuations due primarily to the inability to control timing of orders in its existing market segment. Management has concentrated on extensive analysis to identify other target markets, since the Company's technology is adaptable to additional applications. Development of additional products utilizing SDC's proprietary technology is progressing to expand these product offerings. The Company believes the deployment of these products will greatly improve the period fluctuations and provide for a continual growth pattern. While the Company's VFX-250 products have been well received by the FRAD and Codec Manufacturers, the distributors, and system integrators, the sales cycle is elongated as resellers must build upon their potential customers. Sales are expected to be generated from this product line commencing in 1998. - -8- The Company believes through the penetration of new markets and by increasing its customer base, the Company may be positioned to capture significant business opportunities in the CTI arena resulting in a positive growth trend in 1998 and in subsequent years. Management anticipates that the Company will not generate historical levels of revenues in the remainder of 1997 as the Company focuses on developing strategic products for the CTI industry. Cost of Goods Sold for the quarter amounted to $303,373 or 55.3% of sales revenue versus $391,923 or 60.8% for the comparable quarter of the prior year. The decrease in cost of goods sold is due to the corresponding decrease in sales revenue. Since the Company has adopted outsourcing of manufactured items, it has focused on reducing its supplier base by developing and nurturing long-term partnerships with high quality and reliable suppliers enhancing the delivery times and improving cost. Research & Development costs for the three months ended September 30, 1997, amounted to $386,776, 70.5% of sales revenue compared to $382,135, 59.3% of sales revenue for the comparable three months of 1996. Since the dollar expenditures are almost equaled year-to-year, the percentages are askew due to the low sales results of the quarter. The Company is continuing to invest in the development of new technology and products, which the Company believes is essential for the survival and growth strategy of the Company. The Company anticipates new product introductions and enhancements on its current products on a charted schedule, which will expand its current product lines into new markets. Selling, General and Administrative expenses increased to $488,870 for the three months ended September 30, 1997 as compared to $248,747 for the three months ended September 30, 1996. A portion of this increase is due to a reclassification of certain expenses into Research and Development in the 1996 period. Another significant portion of the increase was attributable to the establishment of the international sales office in the U.K. Other contributing factors are increases in consulting, investor relations and professional fees to explore various business opportunities and arrangements and expand its financial and shareholder relations program. The sales team and the managing director have aggressively marketed the VFX-250 product line to Original Equipment Manufacturers (OEM's), Value Added Resellers (VAR's), system integrators and distributors whose markets and market presence will provide significant sales channels for the VFX product family and the future product initiatives. The Company plans to market its products in the United States and Internationally in Canada, Europe, Asia, and the Middle East direct and through the above mentioned distribution channels. - -9- Liquidity and Capital Resources ------------------------------- Cash and cash equivalents for the period ending September 30, 1997 amounted to $178,397 and working capital of $799,715. The ratio of current assets to current liabilities at September 30, 1997 was 5.8 to 1.0 compared to 3.1 to 1.0 at December 31, 1996. Cash used in operations during the nine months period ended September 30, 1997 was $584,094 compared to $1,341,860 in the nine months period ended September 30, 1996. The change was primarily the result of the reduction in accounts payable and accrued expenses. Cash used in operations during the three months ended September 30, 1997 amounted to $302,779 compared to cash used in operations of $836,204 for the comparable three months ended September 30, 1996. The decrease in cash used in operations as compared to the prior year period primarily reflects the decrease in accounts payable and accrued expenses resulting from the collections of accounts receivable and other receivables during the period. Cash used in investing activities during the nine month period ended September 30, 1997 was $67,738 compared to $15,698 in the corresponding nine month period of 1996. This increase reflects the purchase of test equipment and computer related equipment to facilitate testing and product development. Cash for the three months ended September 30, 1997 used in investing activities amounted to $24,032 compared with $4,829 for the comparable period of 1996. This increase from the prior period is attributable to the purchase of computer related equipment to upgrade development tools. The Company believes that funds expected to be generated by operating activities and existing cash and cash equivalents will be adequate to cover operating expenses in the foreseeable future. The Company is exploring various financing instruments to subsidize the execution of its growth strategy. Subsequent Event ---------------- A Board of Directors Meeting was held on November 5, 1997, to discuss a business arrangement with WorldWave Communications, Inc. The board unanimously approved further action in accordance with a Memorandum of Understanding with WorldWave. Under the terms of the memorandum, Science Dynamics would acquire 100% of WorldWave for 5.5 million shares of Science Dynamics common stock. The acquisition is predicated upon WorldWave obtaining contracts, in the near future, for a minimum of 20,000 of its telephone units, at a purchase price of approximately $10,000,000, with a provision for additional shares if WorldWave receives a purchase order for an additional 10,000 telephone units. Other contingencies of the acquisition are the performance of due diligence by Science Dynamics, a valuation of the technology and shareholder approval from both parties. The - -10- transaction is expected to be defined as a tax-free exchange for WorldWave shareholders. Science Dynamics plans to operate WorldWave as a wholly owned subsidiary of Science Dynamics. Certain statements contained in the 10QSB concerning the Company's business outlook on future performance and statements concerning assumptions made or expectations as to any future events, conditions or other matters are "forward-looking statements" as that term is defined under the Federal Securities Laws. Forward-looking statements are subject to risks, uncertainties and other factors, which may cause actual results to differ materially from those set forth in this report. The Company may encounter competitive, technological, financial and business challenges making it more difficult to market its products and services, the impact of which may in turn affect the Company's results of operations and financial position. PART II. OTHER INFORMATION SCIENCE DYNAMICS CORPORATION AND SUBSIDIARIES --------------------------------------------- Item 1. Legal Proceedings No material developments. Item 2. Changes in Securities There has been no change or modification in the constituent instruments defining the rights of holders of neither the corporation's sole class of registered security nor any modification of the rights evidenced by such class by issuance or modification of any other class of securities. Item 3. Defaults Upon Senior Securities There has been no default of any nature upon any form neither of senior security nor in payment of interest or sinking or purchase fund installment with respect to any indebtedness of the registrant, nor any other form of default upon any financial obligation. Item 4. Submission of Matters to a Vote of Security Holders None. Item 5. Other Information None. - -11- Item 6. Exhibits and Reports None. Item 7. Signatures Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, registrant has duly caused this report to be signed in its behalf by the undersigned thereunto duly authorized. SCIENCE DYNAMICS CORPORATION By: /s/ ALAN C. BASHFORTH --------------------------------- Alan C. Bashforth President, and CEO By: /s/ JOY C. HARTMAN --------------------------------- Joy C. Hartman Executive Vice President, Chief Financial Officer, Treasurer and Corporate Secretary Dated: November 14,1997 - -12- EX-27 2 ARTICLE 5 FIN. DATA SCHEDULE FOR 3RD QTR 10-QSB
5 1,000 3-MOS Dec-31-1997 Jul-01-1997 Sep-30-1997 178 0 425 0 326 966 1224 1017 3089 167 0 147 0 0 2923 3089 548 548 303 303 876 0 0 (627) 0 (627) 0 0 0 (627) (.05) (.05)
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