-----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, K61M3Y4oGpyNKAWfPgrbIX/G19XoksQZnl/CTbRcaWOVwpcqjk30ivE7m21EHGvW HO1PAib85o61UMTnWj8Pgg== 0000910647-97-000119.txt : 19970507 0000910647-97-000119.hdr.sgml : 19970507 ACCESSION NUMBER: 0000910647-97-000119 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970506 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEGATECH CORP CENTRAL INDEX KEY: 0000064708 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS PUBLISHING [2741] IRS NUMBER: 042461059 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-09643 FILM NUMBER: 97596572 BUSINESS ADDRESS: STREET 1: 525 WOBURN STREET CITY: TEWKSBURY STATE: MA ZIP: 01876 BUSINESS PHONE: 6172731900 MAIL ADDRESS: STREET 1: 525 WOBURN STREET CITY: TEWKSBURY STATE: MA ZIP: 01876 10-Q 1 BODY OF 10-Q FOR THE FIRST QUARTER SECURITIES AND EXCHANGE COMMISSION Washington, DC. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended March 31, 1997 Commission File Number 0-9643 - -------------------------------- ----------------------------- MEGATECH CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) Massachusetts 04-2461059 ------------------------------- ------------------- (State or other jurisdiction of (IRS. Employer incorporation of organization) Identification No.) 555 WOBURN Street, TEWKSBURY, MA 01876 - ---------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (508) 937-9600 ------------------------------------------------------------------ N/A ---------------------------------------------------- (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 XX NO ------------------------------------------------------------ The number of shares of the registrant's common stock outstanding as of April 30, 1997 was 3,788,808. MEGATECH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31 DECEMBER 31 1997 1996 (UNAUDITED) AUDITED ----------- ----------- ASSETS Current assets: Cash and cash equivalents $111,883 $ 90,770 Accounts receivable: Trade (less allowance for doubtful accounts of $11,580) 324,346 407,169 Affiliate 0 50,945 Other receivables 2,160 2,024 Inventories at lower of cost (first-in first-out) 365,031 380,379 or market Prepaid expenses 28,981 17,127 ------------------------- Total current assets 832,401 948,414 ------------------------- Property, plant and equipment, at cost net of accumulated depreciation of $335,922 100,461 96,370 in 1996 & $361,403 in 1997. Security deposits 7,666 7,666 ------------------------- Total Assets $940,528 $1,052,450 =========================
See accompanying notes to consolidated financial statements. MEGATECH CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31 DECEMBER 31 1997 1996 (UNAUDITED) AUDITED ----------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable: Trade 243,586 309,562 Affiliate 0 8,701 Accrued commissions 32,622 Other accrued liabilities 34,010 40,058 Current obligation under capital lease 1,252 ---------------------------- Total current liabilities 277,596 392,195 ---------------------------- Stockholders' equity: Common Stock, authorized, 5,000,000 shares of $.0143 par value; issued and outstanding, 1996, 3,788,808 shares; 1995, 3,761,558, shares 54,180 54,180 Additional paid-in capital 4,034,824 4,034,824 Deficit (3,428,749) (3,428,749) Profit (Loss) 2,677 ---------------------------- Stockholders' equity - net 662,932 660,255 ---------------------------- Total Liabilities and Stockholders' Equity $ 940,528 $1,052,450 ============================
See accompanying notes to consolidated financial statements. MEGATECH CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 1997 1996 ---------------------------- Sales $ 569,607 $ 531,217 Cost of goods sold 323,587 366,603 ---------------------------- Gross profit 246,020 164,614 Operating expenses: Selling, general and administrative expenses 241,123 243,453 Research and development 3,789 5,698 ---------------------------- Total operating expenses 244,912 Profit (loss) from operations 1,108 (84,537) Other income and (expense): Interest (1,692) 337 Other 0 0 Legal 124 0 ---------------------------- Total other income and (expense) 1,568 (337) Net profit (loss) $ 2,676 $ (84,874) ============================ Net profit (loss) per share $ 0.001 $ (0.023) ============================ Weighted average number of shares outstanding 3,784,566 3,731,425 ============================
MEGATECH CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 1997 1996 ---------------------------- Cash flows from operating activities: Net profit (loss) $ 2,677 $(84,874) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 5,481 6,765 Changes in operating assets and liabilities: Accounts receivable, trade 133,769 60,851 Accounts receivable, other (27) (2,572) Prepaid expenses (11,964) (17,748) Inventories 15,019 18,440 Accounts payable (74,348) (7,220) Accrued expenses (23,013) 9,044 --------------------------- Net cash provided (used) by operating activities 47,594 (17,314) Cash flows from investing activities: Property, plant and equipment (9,572) (1,646) Cash flows from financing activities: Payments on capital lease obligations (1,230) (649) Principal payments on long-term debt 0 (14,897) Proceeds from issuance of common stock 0 3,299 --------------------------- Net cash used by financing activities (1,230) (12,247) Net increase (decrease) in cash and 37,113 (31,207) cash equivalents Cash & cash equivalents, beginning of period 90,770 55,578 --------------------------- Cash & cash equivalents, end of period $127,883 $ 24,371 ===========================
MEGATECH CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1997 1. BASIS OF PRESENTATION: The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete Financial Statements. In the opinion of management, all adjustments necessary to present fairly the financial position, results of operations and cash flows at March 31, 1997 and for all periods presented have been made. The results of operation for the three months ended March 31, 1997 are not necessarily indicative of the operating results that may be expected for the year ended December 31, 1997. It is suggested that the condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 1996 annual report. 2. INVENTORIES: Inventories consist of the following:
MARCH 31 DECEMBER 31 1997 1996 -------- ----------- Raw materials 137,780 357,045 Work in process 65,093 0 Finished goods 172,158 23,334 ------------------- 375,031 380,379 Less reserve for obsolescence 10,000 10,000 ------------------- 365,031 370,379 ===================
MEGATECH CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS MARCH 31, 1997 RESULTS OF OPERATIONS: THREE MONTHS ENDED MARCH 31, 1997 COMPARED WITH THREE MONTHS ENDED MARCH 31, 1996 Consolidated net sales for the quarter ended March 31, 1997 increased from the corresponding period of 1996 by $.04 million or 7%. This increase was primarily due to increases in overall sales. Gross profit for the quarter ended March 31, 1997 increased from the corresponding period of 1996 by $.08 million. As a percentage of total sales, gross profit was 43% in the quarter ended March 31, 1997 as compared to 31% in the corresponding period of 1996. The increase is due to product mix, where higher percentage of sales for 1997 were items with larger gross profit margins, and also due to lower direct labor costs. Selling, General & Administrative expenses for the quarter ended March 31, 1997 decreased slightly from the corresponding period of 1996 by $ .01 million. The decrease is primarily a result of pay cutting measures taken by management for certain salaried personnel. Research and Development expenses for the quarter ended March 31, 1997 decreased from the corresponding period of 1996 by $.002 million. The decrease is attributable to a reduction in R & D activities. MEGATECH CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) MARCH 31, 1997 LIQUIDITY AND CAPITAL RESOURCES: Working capital for the quarter ended March 31, 1997 was $554,805 as compared to $530,094 in working capital at December 31, 1996. The increase was primarily attributable to cash balnces and reduced accounts payables. The company maintains a $ 200,000 line of credit with a bank. The line is collaterized by a security interest in substantially all assets of the Company. The company believes that cash generated from operations, together with existing sources of debt financing, will be sufficient to meet foreseeable cash requirements for the next twelve months. The firm's backlog as of March 31, 1997 was approximately $247,570 compared to $ 163,700 same period ended in 1996. 3. MAJOR CUSTOMER INFORMATION: For the period ended March 31, 1997, sales to one representative in Mexico comprised 35% of total sales for the quarter. No other single customer accounted for more than 10% of the Company's sales for the same period in 1997. PART II: OTHER INFORMATION Item 1. Legal Proceedings: Not applicable ___________________________ Item 2. Changes in Securities: Not applicable _______________________________ Item 3. Defaults Upon Senior Securities: Not applicable _________________________________________ Item 4. Submission of Matters to a Vote of Security Holders: Not applicable ___________________________________ Item 5. Other Information: Not applicable ___________________________ Item 6. Exhibits and Reports in Form 8-K: Not applicable __________________________________________ 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. MEGATECH CORPORATION (Registrant) April 30, 1997 /s/ Vahan V. Basmajian - -------------- ---------------------- Date Vahan V. Basmajian President, Treasurer EX-27 2 ARTICLE 5 FDS FOR 1ST QUARTER OF 10-Q
5 3-MOS DEC-31-1997 MAR-31-1997 111,883 0 324,346 11,580 365,031 832,401 100,461 361,403 940,528 277,596 0 0 0 54,180 0 940,528 569,607 2,676 323,587 244,912 124 0 (1,692) 2,676 0 2,676 0 0 0 2,676 0.001 0.001
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