0000357064-95-000011.txt : 19950816 0000357064-95-000011.hdr.sgml : 19950816 ACCESSION NUMBER: 0000357064-95-000011 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950815 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: TCI INTERNATIONAL INC CENTRAL INDEX KEY: 0000357064 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 943026925 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-10877 FILM NUMBER: 95563990 BUSINESS ADDRESS: STREET 1: 222 CASPIAN DR CITY: SUNNYVALE STATE: CA ZIP: 94089 BUSINESS PHONE: 4087476100 MAIL ADDRESS: STREET 1: 222 CASPIN DRIVE CITY: SUNNYVALE STATE: CA ZIP: 94089 FORMER COMPANY: FORMER CONFORMED NAME: TECHNOLOGY FOR COMMUNICATIONS INTERNATIONAL INC DATE OF NAME CHANGE: 19880606 10-Q 1 06/95 10Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1995 * OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period N/A Commission file number: 0-10877 TCI INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Delaware 94-3026925 (State of other jurisdiction of (I.R.S. Employer Identification Number) incorporation or organization) 222 Caspian Drive, Sunnyvale, California 94089-1014 (Address of principal executive offices) (Zip Code) (408)747-6100 (Registrant's telephone number, including area code) *The Company is on a 52/53 week fiscal year. The quarter ended on July 2, 1995. For presentation purposes, the Company has indicated its quarter end as June 30, 1995. 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 ___ As of June 30, 1995, 3,115,934 shares of Common Stock were outstanding. TCI INTERNATIONAL, INC. PART I FINANCIAL INFORMATION Condensed Consolidated Financial Statements (Unaudited) The unaudited condensed consolidated financial statements included herein have been prepared by the Company 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 the information included herein, when read in conjunction with the financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended September 30, 1994, filed with the Securities and Exchange Commission, to be not misleading. Further, the following financial statements reflect, in the opinion of management, all adjustments necessary to present fairly the financial position and results of operations as of and for the periods indicated. E The results of operations for the nine months ended June 30, 1995, are not necessarily indicative of results to be expected for the entire year ending September 30, 1995. TCI INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share amounts) Three Months Ended Nine Months Ended June 30 June 30 1995 1994 1995 1994 Revenues $ 8,364 $ 8,612 $22,084 $20,299 Operating costs and expenses: Cost of revenues 5,710 6,034 14,087 12,860 MG&A 2,627 2,525 7,725 7,317 8,337 8,559 21,812 20,177 Income from operations 27 53 272 122 Investment income, net 284 226 787 442 Income before provision for income taxes 311 279 1,059 564 Provision for income taxes 34 17 79 28 Income before change in accounting for income taxes 277 262 980 536 Change in accounting for income taxes (SFAS No. 109) 0 0 0 1,511 Net income $ 277 $ 262 $ 980 $ 2,047 Per share: Income before change in accounting for income taxes $ .08 $ .08 $ .29 $ .16 Net income $ .08 $ .08 $ .29 $ .61 Shares used in per share computations 3,316 3,282 3,366 3,359 See accompanying Notes to Condensed Consolidated Financial Statements. TCI INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In Thousands) June 30, September 30, 1995 1994 (Unaudited) ASSETS Current assets Cash and cash equivalents $ 2,120 $ 7,578 Short-term investments 16,629 11,938 Accounts receivable - Billed 1,962 2,686 Unbilled 4,484 2,935 Refundable income taxes 0 739 Inventories 5,003 4,901 Prepaid expenses 406 490 Total current assets 30,604 31,267 Property and equipment, net 1,667 1,889 Other assets 90 85 Total assets $32,361 $33,241 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,906 $ 2,168 Customer deposits and billings on uncompleted contracts in excess of revenue recognized 2,009 2,478 Accrued liabilities 4,013 4,523 Total current liabilities 7,928 9,169 Stockholders' equity: Common stock: Authorized - 5,000 shares, $.01 par value Issued - 3,281 shares 11,780 11,993 Shares held in treasury at cost: 165 Shares in June 1995 (739) 0 78 Shares in Sept. 1994 0 (311) Retained earnings 13,397 12,483 Valuation allowance- short-term investments (5) (93) Total stockholders' equity 24,433 24,072 Total liabilities and stockholders' equity $32,361 $33,241 See accompanying Notes to Condensed Consolidated Financial Statements. TCI INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended June 30, (In thousands) 1995 1994 Cash provided by (used in): Operations: Net income $ 980 $2,047 Reconciliation to cash provided by (used in) operations: Depreciation 474 566 Gain on sale of investments 0 (226) Effect of change in accounting for income taxes (SFAS 109) 0 (1,511) Changes in assets and liabilities: Accounts receivable (825) 5,855 Refundable income taxes 739 0 Inventories (102) 1,136 Prepaid expenses 79 51 Accounts payable (262) 1,147 Customer deposits/billing in excess of revenue (469) (2,671) Accrued liabilities (511) (529) Cash provided by (used in) operations 103 5,865 Investing activities: Purchases of property and equipment (251) (104) Purchases of short-term investments (5,963) (69,219) Proceeds from sale of short-term investments 1,360 63,319 Proceed from sale of building 0 703 Other 0 7 Cash used in investing activities (4,854) (5,294) Financing activities: Repurchase of common stock for treasury stock (707) (695) Cash used in financing activities (707) (695) Net increase (decrease) in cash and cash equivalents (5,458) (124) Cash and cash equivalents at beginning of period 7,578 5,739 Cash and cash equivalents at end of period $ 2,120 $ 5,615 See accompanying Notes to Condensed Consolidated Financial Statements TCI INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1 Inventories consist of the following (in thousands): June 30, September 30, 1995 1994 (Unaudited) Material and component parts $3,684 $3,235 Work-in-Process 1,319 1,666 $5,003 $4,901 Note 2 At June 30, 1995 there were outstanding standby letters of credit of approximately $4,166,000 serving as performance and payment bonds. The standby letters of credit expire at various dates through 1997; however, certain performance bonds are automatically renewable until canceled by the beneficiary. These outstanding standby letters of credit are fully secured by the Company's short term investment portfolio. TCI INTERNATIONAL, INC. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Third Fiscal Quarter of 1995 Compared to Third Fiscal Quarter of 1994 Revenues for the first nine months of fiscal year 1995 were $22,084,000, an increase of 9% over revenues of $20,299,000 for the same period a year ago. Revenues for the third quarter decreased 3% from $8,612,000 in fiscal year 1994 to $8,364,000 in fiscal year 1995. While the general business activity for the year has increased compared to that of a year ago, variances in material flows and the timing of completion of some fixed priced, long-term contracts continue to contribute to quarter to quarter revenue and gross profit fluctuations. Gross profit as a percentage of revenue for the nine month period decreased from 37% to 36% but increased from 30% to 32% for the third quarter. The increase in gross profit as a percentage of revenue is primarily due to the timing of completion of various foreign and domestic contracts which have a range of gross profit margins associated with them. Gross profit as a percentage of revenue may decline further during the remaining three months of the fiscal year due to competitive bidding pressures the Company has recently experienced in its pursuit of its broadcast related contracts. Marketing, general and administrative expenses increased by 4% in the third quarter and 6% for the nine month period ending June 30, 1995 compared with prior year periods. This variance is primarily the result of increased marketing efforts. Net investment income for the first nine months of fiscal year 1995 was $787,000, an increase of 78% over net investment income of $442,000 for the same period in fiscal year 1994. This increase is due to the benefit of comparatively higher interest rates. Net income for the first nine months of fiscal year 1995 was $980,000 or $0.29 per share, compared to net income of $2,047,000 or $0.61 per share for the same period in fiscal year 1994. The net income for fiscal year 1994 included the benefit of $1,511,000 or $0.45 per share, to reflect the cumulative effect of adopting SFAS No. 109 "Accounting for Income Taxes." The Company's total backlog at June 30, 1995 was $34 million compared to $28 million at September 30, 1994. The total funded portion of the Company's backlog at June 30, 1995 was $20 million compared to $21 million at September 30, 1994. The Company's funded backlog excludes unfunded and unexercised options which the Company believes are likely to be exercised The results of operations for the first nine months in fiscal year 1995 are not necessarily indicative of future quarterly or annual performance expectations. TCI INTERNATIONAL, INC. LIQUIDITY AND CAPITAL RESOURCES June 30, 1995 Compared to September 30, 1994 Consolidated cash, cash equivalents and marketable securities totaled $18,749,000 at June 30, 1995, compared to $19,516,000 at September 30, 1994. The Company currently believes that its cash, cash equivalents and short-term investments, together with expected revenues from operations, will be sufficient to fund its operations through fiscal 1995. At June 30, 1995 , the Company has standby letters of credit outstanding of approximately $4,166,000. The standby letters of credit are collateralized by the Company's short-term investments. The Company purchased 146,303 shares of its stock and retired 59,501 shares during the first nine months of the fiscal year. The Company held 165,414 shares of treasury stock at June 30, 1995. TCI INTERNATIONAL, INC. PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K a. Exhibits: None b. Reports on Form 8-K: None No other applicable items. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TCI INTERNATIONAL, INC. (Registrant) Signature on File John W. Ballard III Vice President, Chief Financial Officer (Duly authorized officer of the registrant and principal financial officer of the registrant) Date: August 14, 1995 EX-27 2
5 This schedule contains summary financial information extracted from SEC Form 10Q and is qualified in its entirety by reference to such financial statements. 0000357064 TCI INTERNATIONAL, INC. 9-MOS SEP-30-1995 JUN-30-1995 2,120 16,629 6,446 0 5,003 30,604 10,130 8,464 32,361 7,928 0 11,041 0 0 13,392 32,361 22,084 22,084 14,087 14,087 7,725 0 0 1,059 79 980 0 0 0 980 .30 .29