-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, nOt0yMCAzPe4MIioeqfW3zwLVDOhun8Y7Fu8frVBnTl3NyzZlpyfQtIHB/4+tmY/ hvENcbMJJcmyS5v19/Uhag== 0000050842-95-000003.txt : 19950615 0000050842-95-000003.hdr.sgml : 19950615 ACCESSION NUMBER: 0000050842-95-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950430 FILED AS OF DATE: 19950614 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERPOINT CORP /NEW/ CENTRAL INDEX KEY: 0000050842 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 910850556 STATE OF INCORPORATION: WA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-11069 FILM NUMBER: 95546871 BUSINESS ADDRESS: STREET 1: 10301 WILLOWS RD STREET 2: PO BOX 97005 CITY: REDMOND STATE: WA ZIP: 98073-9705 BUSINESS PHONE: 2068823100 MAIL ADDRESS: STREET 1: 10301 WILLOWS ROAD STREET 2: PO BOX 97005 CITY: REDMOND STATE: WA ZIP: 98073-9705 FORMER COMPANY: FORMER CONFORMED NAME: INTEGRATED CIRCUITS INC DATE OF NAME CHANGE: 19890321 10-Q 1 FORM 10-Q 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 April 30, 1995 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number 0-11069 INTERPOINT CORPORATION Incorporated under the laws I.R.S. Identification of the State of Washington No. 91-0850556 10301 Willows Road P.O. Box 97005 Redmond, Washington 98073-9705 (206) 882-3100 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. [X] Yes [ ] No The total shares of common stock without par value outstanding at the end of the quarter reported is 3,820,885. PART I - FINANCIAL INFORMATION Item 1. Financial statements CONSOLIDATED BALANCE SHEETS April 30, 1995 and October 31, 1994
April 30, 1995 October 31, 1994 (Unaudited) -------------- ---------------- ASSETS Current assets: Cash $ 16,909 $ 541,805 Trade accounts receivable, less allowance for doubtful accounts of $125,000 in 1995 and $108,000 in 1994 11,761,704 12,095,295 Inventories 16,378,257 14,453,920 Prepaid expenses and other 374,117 399,206 Deferred income taxes 464,950 467,830 ----------- ----------- Total current assets 28,995,937 27,958,056 Property, plant and equipment, at cost: Land 1,324,988 1,324,988 Buildings and improvements 4,919,210 4,890,474 Machinery and equipment 12,499,814 11,946,535 Office equipment 2,737,061 2,620,412 Leasehold improvements 481,784 405,929 ----------- ----------- 21,962,857 21,188,338 Less accumulated depreciation and amortization 12,920,292 11,950,335 ----------- ----------- Net property, plant and equipment 9,042,565 9,238,003 Investment in common stock 1,371,534 1,331,669 Other assets 628,276 611,593 ----------- ----------- $ 40,038,312 $ 39,139,321 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Loans payable $ 6,747,226 $ 6,253,840 Accounts payable 4,127,812 4,584,858 Income taxes payable 493,684 230,409 Accrued wages and commissions 2,360,351 2,484,036 Other current liabilities 593,286 564,131 Long-term debt, current portion 1,500,142 1,504,502 ----------- ----------- Total current liabilities 15,822,501 15,621,776 Long-term debt 3,766,220 4,029,172 Accrued retirement benefits 569,884 518,451 Other liabilities 99,970 112,870 Deferred income taxes 828,075 834,387 Commitments: Stockholders' equity: Preferred stock, 500,000 shares authorized, none issued -- -- Common stock, 10,000,000 shares authorized, 3,820,885 shares issued and outstanding, (3,802,272 in 1994) 509,156 shares reserved 4,637,708 4,561,859 Retained earnings 13,852,113 13,125,229 Cumulative translation adjustments 461,841 335,577 ----------- ----------- Total stockholders' equity 18,951,662 18,022,665 ----------- ----------- $ 40,038,312 $ 39,139,321 =========== =========== See accompanying notes.
CONSOLIDATED STATEMENTS OF OPERATIONS Three months and six months ended April 30, 1995 and 1994 (Unaudited)
Three months ended Six months ended April 30, April 30, ------------------------- ------------------------ 1995 1994 1995 1994 ----------- ----------- ----------- ----------- Net sales $16,041,106 $11,359,330 $29,583,105 $23,786,399 Cost of sales 10,946,894 8,392,612 20,266,685 17,117,719 ---------- ---------- ---------- ---------- Gross profit 5,094,212 2,966,718 9,316,420 6,668,680 Selling and administrative 3,615,457 2,404,479 7,002,289 5,024,562 Research and development 392,318 422,737 860,492 883,628 Acquisition expenses -- -- -- 728,743 ---------- ---------- ---------- ---------- Operating profit 1,086,437 139,502 1,453,639 31,747 Other expenses (net) 216,101 173,494 462,463 357,808 Equity in net income (loss) of an affiliate (1,068) 35,072 39,865 39,041 ---------- ---------- ---------- ---------- Income (loss) before provision for income taxes 869,268 1,080 1,031,041 (287,020) Provision for income taxes 251,528 -- 304,157 (35,000) ---------- ---------- ---------- ---------- Net income (loss) $ 617,740 $ 1,080 $ 726,884 $ (252,020) ========== ========== ========== ========== Average number of common and common equivalent shares outstanding 3,978,468 4,014,714 3,979,499 3,751,432 ========== ========== ========== ========== Net income (loss) per share $ .16 $ -- $ .18 $ (.07) ========== ========== ========== ========== See accompanying notes.
CONSOLIDATED STATEMENTS OF CASH FLOWS Six months ended April 30, 1995 and 1994 (Unaudited)
1995 1994 ------------ ------------ Operating activities: Net income (loss) $ 726,884 $ (252,020) Adjustments to reconcile net income(loss) to net cash provided by (used in) operating activities: Depreciation and amortization 969,277 886,163 Deferred income tax -- (110,605) Equity in net income of an affiliate (39,865) (39,041) Net book value of assets retired 2,156 10,932 Foreign currency translation of intercompany debt (34,928) -- Change in assets and liabilities: Receivables 430,824 (174,650) Inventories (1,866,722) (924,351) Prepaid expenses and other 29,761 114,224 Other assets (47,911) (12,002) Accounts payable (464,169) 1,262,822 Income taxes payable 264,682 (495,448) Accrued liabilities (131,851) (110,040) Accrued retirement benefits 37,558 35,616 Other liabilities (12,900) (7,674) ----------- ----------- Net cash provided by (used in) operating activities (137,204) 183,926 Investing activities: Purchases of property, plant and equipment (690,027) (446,721) Financing activities: Net proceeds from loans payable 493,386 405,184 Proceeds from long-term borrowings 312,045 154,807 Repayment of long-term debt (579,357) (1,538,426) Proceeds from issuance of common stock for stock options 75,848 63,299 ----------- ----------- Net cash provided by (used in) financing activities 301,922 (915,136) Effect of exchange rate changes on cash 413 84 ----------- ----------- Net decrease in cash (524,896) (1,177,847) Cash at beginning of period 541,805 1,350,157 ----------- ----------- Cash at end of period $ 16,909 $ 172,310 =========== =========== See accompanying notes.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS April 30, 1995 (Unaudited) Note 1. Basis of presentation - The accompanying condensed financial statements are unaudited and should be read in conjunction with the Interpoint financial statements included in the Company's fiscal 1994 Annual Report on Form 10-K. Operating results for the six-month period ended April 30, 1995, are not necessarily indicative of the results that may be expected for the full year. In the opinion of management, all adjustments necessary for a fair presentation of interim operating results are reflected herein. Note 2. Per share calculations - Per-share calculations are determined on the weighted average number of common and common equivalent shares outstanding during each period. Due to the net loss incurred in the six months ended April 30, 1994, and in accordance with Accounting Principles Board Opinion No. 15 "Earnings Per Share," per share calculations for this period do not include common equivalent shares outstanding. Note 3. Merger agreement with Advanced Digital Information Corporation - On February 11, 1994, Interpoint Corporation acquired Advanced Digital Information Corporation (ADIC) pursuant to an Agreement and Plan of Merger dated October 29, 1993, in which ADIC was merged into a wholly-owned subsidiary of Interpoint. Pursuant to the terms of the merger agreement, each outstanding share of Common Stock of ADIC was converted into .55 shares of Interpoint Common Stock. A total of 1,340,255 shares of Common Stock of Interpoint were issued to ADIC shareholders. The acquisition was accounted for as a pooling-of-interests in accordance with Accounting Principles Board Opinion No. 16 "Business Combinations." All amounts are presented as if Interpoint and ADIC had been combined as of the beginning of the period presented. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS Net sales for the quarter ended April 30, 1995, increased 41 percent versus the same quarter a year ago. The most significant factor in the growth is the acquisition of ADIC Europe in June of last year which is contributing strongly to ADIC's net sales number during 1995. ADIC's net sales for the second quarter of 1994 were $3,338,000. Net sales for the same quarter of 1995 were $6,676,000, an increase of 100 percent. The Custom Microelectronics and Power Products Divisions also showed increases in sales of 25 and 13 percent, respectively, with the custom growth coming primarily from medical applications. We expect that all three divisions will continue to show growth in sales compared to prior year quarters throughout the remainder of fiscal year 1995. Quarterly gross profit improved from 26 percent in 1994 to 32 percent in 1995. The increase results primarily from the Power Products Division. The trend to produce more of these products at our Kaohsiung, Taiwan facility has helped to reduce costs and improve margins. Also, the gross profit percentage in the Custom Microelectronics Division has increased as lower margin programs have been completed and replaced with more profitable business. ADIC has comparable margins to last year, the net result of greater Library product shipments from its Redmond facility which improve margins and greater non-Library, lower margin products from its Europe facility. Sales and administrative costs have increased significantly over 1994, largely as a result of the acquisition of ADIC Europe which serves as a sales, marketing and distribution organization for ADIC Library products and other tape storage products. Other marketing related increases were seen in the domestic businesses as well. As a whole, however, sales and administrative costs for the second quarter of 1995 are comparable as a percentage of sales with the second quarter of 1994. Other expenses consists primarily of interest expense which has increased as a result of both greater short-term borrowings and higher interest rates. LIQUIDITY AND CAPITAL RESOURCES The Company's principal sources of liquidity are cash provided by operations and bank lines of credit. The domestic line of $8.5 million bears interest at the bank's prime rate or adjusted LIBOR rate. This line is subject to certain restrictive covenants on working capital, etc. The Company is well within acceptable limits with regard to these covenants. Interpoint has no material commitments for capital expenditures. In addition to the working lines of credit, the Company has credit facilities in place to finance capital equipment. Inventories have grown between fiscal year-end and April 30, 1995. The largest change results from ADIC, which has increased both raw material and finished good inventories in order to respond to higher sales forecasts. The Custom Microelectronics and Power Product Divisions have both also grown inventories to support higher shipping volumes. Interpoint expects to see a decrease in these inventory levels throughout the remainder of the year. A decrease in these levels coupled with greater sales volumes should allow the Company to generate significant cash in fiscal year 1995. PART II - OTHER INFORMATION Item 1. Legal Proceedings. None Item 2. Changes in Securities. None. Item 3. Defaults Upon Senior Securities. None. Item 4. Submission of Matters to a Vote of Security Holders. None. Item 5. Other information. None. Item 6. Exhibits and Reports on Form 8-K. None. 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. INTERPOINT CORPORATION June 13, 1995 /s/Peter H. van Oppen Peter H. van Oppen Chairman Chief Executive Officer June 13, 1995 /s/Leslie S. Rock Leslie S. Rock Vice President, Treasurer Chief Accounting Officer EX-27 2 FDS FOR 2ND QUARTER 10-Q
5 The schedule contains summary financial information extracted from the second quarter 10-Q and is qualified in its entirety by reference to such financial statements. 1,000 6-MOS OCT-31-1995 APR-30-1995 17 0 11,762 125 16,378 28,996 21,963 12,920 40,038 15,823 3,766 4,638 0 0 13,852 40,038 29,583 29,583 20,267 20,267 0 0 462 1,031 304 727 0 0 0 727 .18 .18
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