-----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, J6oY3QamrcIdYKnhjtCVRW0/qznQ7Jm7auArOYGkxAZu5EAJ/NWaS9OJCH6EIdIP aUKhjxnLAeXHjgWvTZw1dA== 0000950109-98-000155.txt : 19980114 0000950109-98-000155.hdr.sgml : 19980114 ACCESSION NUMBER: 0000950109-98-000155 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19971130 FILED AS OF DATE: 19980113 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL ELECTRONICS INC CENTRAL INDEX KEY: 0000717751 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATIONS EQUIPMENT, NEC [3669] IRS NUMBER: 042654231 STATE OF INCORPORATION: MA FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-16305 FILM NUMBER: 98505728 BUSINESS ADDRESS: STREET 1: 427 TURNPIKE ST CITY: CANTON STATE: MA ZIP: 02072 BUSINESS PHONE: 6178215566 MAIL ADDRESS: STREET 1: 427 TURNPIKE STREET CITY: CANTON STATE: MA ZIP: 02021 10QSB 1 FORM 10-QSB U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB Quarterly Report Under Section 13 or 15 (d) of the Securities Exchange Act of 1934 For Quarter Ended November 30, 1997 -------------------------------------------------------------- Commission File Number 2-91218-B --------------------------------------------------------- International Electronics, Inc. - -------------------------------------------------------------------------------- (Exact name of small business issuer as specified in its charter) Massachusetts 04-2654231 - -------------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 427 Turnpike Street, Canton, Massachusetts 02021 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (781) 821-5566 - -------------------------------------------------------------------------------- (Issuer's telephone number, including area code) Not applicable - -------------------------------------------------------------------------------- (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 Exchange Act 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 ----- ----- 1,493,301 common shares were outstanding at January 5, 1998. INTERNATIONAL ELECTRONICS, INC. --------------------------------- Index ----- Part I. Financial Information: Page No. -------- Item 1: Financial Statements (unaudited) -------------------------------- Condensed Consolidated Balance Sheets, November 30, 1997 and August 31, 1997 2 Condensed Consolidated Statements of Operations, three months ended November 30, 1997 and 1996 3 Condensed Consolidated Statement of Shareholders' Equity, three months ended November 30, 1997 4 Condensed Consolidated Statements of Cash Flows, three months ended November 30, 1997 and 1996 5 Notes to Condensed Consolidated Financial Statements 6-8 Item 2: Management's Discussion and Analysis of --------------------------------------- Financial Condition and Results of Operations 9-13 --------------------------------------------- Part II. Other Information: Item 6: Exhibits and Reports on Form 8-K 14 -------------------------------- Signature 14 --------- - 1 - INTERNATIONAL ELECTRONICS, INC. ------------------------------- CONDENSED CONSOLIDATED BALANCE SHEETS ------------------------------------- (unaudited)
Nov. 30, 1997 August 31, 1997 ------------- --------------- ASSETS - ------ Current assets: Cash and equivalents $ 223,617 $ 160,075 Accounts receivable, net 1,017,768 1,035,596 Inventories 1,130,925 1,078,561 Other current assets 130,244 133,274 ---------- ---------- Total current assets 2,502,554 2,407,506 Equipment, furniture and improvements, net 441,727 357,289 Other assets: Goodwill and other intangibles, net 213,293 235,029 Other 18,998 26,349 ---------- ---------- 232,291 261,378 ---------- ---------- $3,176,572 $3,026,173 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY - -------------------------------------- Current liabilities: Accounts payable $ 513,190 $ 684,431 Accrued expenses 1,044,231 847,210 Income taxes 44,000 39,000 Current portion of long-term obligations 40,947 36,212 ---------- ---------- Total current liabilities 1,642,368 1,606,853 Long-term obligations 73,718 68,369 Commitments Shareholders' equity: Common stock, $.01 par value: Authorized 5,984,375 shares Issued 1,528,301 shares 15,283 15,283 Capital in excess of par value 4,784,738 4,784,267 Accumulated deficit (3,300,891) (3,409,955) Less treasury stock, at cost: 35,000 shares (38,644) (38,644) ----------- ----------- Total shareholders' equity 1,460,486 1,350,951 ----------- ----------- $ 3,176,572 $ 3,026,173 =========== ===========
See notes to unaudited condensed consolidated financial statements. - 2 - INTERNATIONAL ELECTRONICS, INC. ------------------------------- CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ----------------------------------------------- (unaudited)
Three months ended ----------------------------- Nov. 30, 1997 Nov. 30, 1996 ------------- ------------- Net sales $2,360,932 $2,298,156 Cost of sales 1,297,351 1,367,829 --------- ----------- Gross profit 1,063,581 930,327 Research and development costs 102,723 114,118 Selling, general and administrative expenses 805,701 763,488 --------- ------------ Income from operations 155,157 52,721 Interest expense (3,136) (12,046) Other income 1,043 3,453 --------- ------------ Income before taxes 153,064 44,128 Provision for taxes 44,000 16,000 --------- ------------- Net income $109,064 $28,128 ========= ============ Net income per share $.07 $.02 ========= ============ Weighted average number of common and equivalent shares outstanding 1,587,053 1,720,894 ========= ============
See notes to unaudited condensed consolidated financial statements. - 3 - INTERNATIONAL ELECTRONICS, INC. --------------------------------- CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY ------------------------------------------------------------- (unaudited)
Common Stock Capital in Treasury Stock ------------ excess of Accumulated -------------- Shares Amount par value Deficit Shares Cost Total ------ ------ --------- ------- ------ ---- ----- Balances, September 1, 1997 1,528,301 $15,283 $4,784,267 ($3,409,955) 35,000 ($38,644) $1,350,951 Issuance of stock warrants - - 471 - - - 471 Net income - - - 109,064 - - 109,064 --------- ------- ---------- ------------ ------ -------- ---------- Balances, November 30, 1997 1,528,301 $15,283 $4,784,738 ($3,300,891) 35,000 ($38,644) $1,460,486 ========= ======= ========== ============ ====== ======== ==========
See notes to unaudited condensed consolidated financial statements. - 4 - INTERNATIONAL ELECTRONICS, INC. --------------------------------- CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS ---------------------------------------------------- (unaudited)
Three months ended ----------------------------- Nov. 30, 1997 Nov. 30, 1996 ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 109,064 $ 28,128 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 51,579 61,241 Stock warrants issued for professional services 471 - Changes in operating assets and liabilities: Accounts receivable 17,828 (104,229) Inventories (52,364) 34,725 Other current assets 3,030 3,469 Income taxes 5,000 (24,000) Accounts payable and accrued expenses 25,780 108,528 --------- --------- Net cash provided by operating activities 160,388 107,862 CASH FLOWS FROM INVESTING ACTIVITIES AND OTHER: Net purchase of equipment, furniture and improvements (114,281) (25,645) Other assets 7,351 (11,142) --------- --------- Net cash used in investing activities and other (106,930) (36,787) CASH FLOWS FROM FINANCING ACTIVITIES: Additions to debt obligations 22,250 - Reduction of notes payable and debt obligations (12,166) (26,878) Issuance of common stock and warrants - 2,580 --------- --------- Net cash provided by (used in) financing activities 10,084 (24,298) CASH AND EQUIVALENTS: Net increase during period 63,542 46,777 Balances, beginning of period 160,075 556,745 --------- --------- Balances, end of period $ 223,617 $ 603,522 ========= =========
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS: Equipment acquired under capitalized leases $- $29,726 See notes to unaudited condensed consolidated financial statements. - 5 - INTERNATIONAL ELECTRONICS, INC. ------------------------------- NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ---------------------------------------------------- (unaudited) A. Financial Statements: --------------------- In the opinion of the Company, the unaudited condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the financial position as of November 30, 1997 and the results of operations for the three months then ended. Certain disclosures normally included have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission, although the Company believes the disclosures are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's annual report on Form 10-KSB for the year ended August 31, 1997. B. Net Income per Share: --------------------- Net income per share is based on the weighted average common and dilutive common equivalent shares outstanding during the period. Common equivalent shares consist of stock options and warrants. Primary income per share is computed by dividing net income by the weighted average number of common and common equivalent shares outstanding based on the average market price of the Company's common stock (under the treasury stock method). Income per share, on a fully diluted basis, is computed as described above utilizing the higher of the ending or average market price of the Company's common stock. Primary and fully diluted income per share are the same for the periods presented. C. Principles of Consolidation: ---------------------------- The accompanying condensed consolidated financial statements include the accounts of the Company, its majority owned subsidiary, Ecco Industries, Inc. and its wholly owned subsidiary, International Electronics Europe Limited. All material intercompany transactions, balances and profits have been eliminated. D. Income Taxes: ------------- The Company provides for income taxes at the end of each interim period based on the estimated effective tax rate for the full fiscal year. Cumulative adjustments to the tax provision are recorded in the interim period in which a change in the estimated annual effective rate is determined. - 6 - INTERNATIONAL ELECTRONICS, INC. ------------------------------- NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ---------------------------------------------------- (continued) (unaudited) E. Long-term Obligations: ---------------------- Long-term obligations are summarized as follows:
Nov. 30, 1997 Aug. 31, 1997 ------------- ------------- 7-18% capitalized lease obligations, due through April, 2001 (Note G) $51,954 $60,627 Other 14,000 14,000 Equipment line of credit, 8.5% (Note F) 22,323 24,352 8-13% equipment loans, collateralized by equipment, final payment due Nov., 2001 26,388 5,602 ------ ----- 114,665 104,581 Less current portion (40,947) (36,212) ------- ------- $73,718 $68,369 ======= =======
The aggregate principal payments on long-term obligations, excluding capital leases are $22,177 (1998), $22,439 (1999), $11,854 (2000), and $6,241 (2001). F. Bank Arrangements: ----------------- In February 1997, the Company established a bank working capital demand line of credit with borrowings up to $1,000,000 and a $250,000 equipment line of credit. Available borrowings under the working capital line are based on a percentage of eligible accounts receivable and inventory. Both lines of credit are at the bank's prime rate of interest and all of the Company's assets are collateralized under these arrangements. The credit agreements contain certain restrictive covenants including covenants limiting the payment of dividends, and a required minimum current ratio and debt to tangible net worth ratio. As of November 30, 1997, no borrowings have been made under the working capital line of credit and the Company has $22,323 in borrowings under the equipment line of credit at an interest rate of 8.5% which is payable in monthly installments through August 2000. - 7 - INTERNATIONAL ELECTRONICS, INC. ------------------------------- NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ---------------------------------------------------- (continued) (unaudited) G. Capital Lease Commitments: -------------------------- The Company leases certain equipment under capital leases and, accordingly, the present value of the net minimum payments has been reflected in equipment, furniture and improvements and capitalized lease obligations. Future minimum capital lease payments under non-cancelable lease terms in excess of one year at November 30, 1997 are as follows:
1998 $ 24,486 1999 22,355 2000 10,584 2001 4,230 -------- Total minimum lease payments 61,655 Less interest (9,701) -------- Net minimum lease payments 51,954 Less current portion (18,770) -------- Long-term portion $ 33,184 ========
- 8 - Management's Discussion and Analysis of ---------------------------------------- Financial Condition and Results of Operations --------------------------------------------- Liquidity and Capital Resources - ------------------------------- As of November 30, 1997, the Company had working capital of $860,186 compared to $800,653 at August 31, 1997. The ratio of current assets to current liabilities was 1.5 at both November 30, 1997 and August 31, 1997. The debt to equity ratio was 1.2 at both November 30, 1997 and August 31, 1997. The increase in working capital is primarily the result of the Company's operating cash flow, offset in part by the purchase of fixed assets for the first quarter of fiscal 1998. Net capital expenditures were $114,281 and $55,371 for the three months ended November 30, 1997 and 1996, respectively. The Company has no current commitments for any material capital expenditures, but the Company anticipates up to $400,000 in capital expenditures for the purchase of office and manufacturing equipment, regulatory testing and tooling costs over the next twelve months. Management believes that its current cash position, together with internally generated funds at present sales levels and its available bank financing, will provide adequate cash reserves to satisfy its cash requirements for the next twelve months. Depending upon whether or not sufficient revenue and working capital is generated from profitable operations, the Company may require additional external funding. There is no assurance that profits will be generated, or that additional external funding will be obtainable, if such a need should arise. Results of Operations - --------------------- Net sales for the first quarter of fiscal 1998 increased 3% as compared to the first quarter of fiscal 1997. The increase in sales for the first quarter of fiscal 1998 primarily reflects increases in access control and keypad sales, offset in part by a reduction in glassbreak detector sales. The ratios of gross profit to sales for the three months ended November 30, 1997 and 1996 were 45% and 40%, respectively. The increase is primarily the result of product mix, lower product costs and the settlement for $75,000 of an agreement with a customer who failed to purchase certain minimum quantities of the Company's products. Research and development expenses were $102,723 and $114,118 for the three months ended November 30, 1997 and 1996, respectively. The decrease in costs is primarily due to lower personnel and related costs. As a percentage of net sales, selling, general and administrative expenses were 34% and 33% for the three months ended November 30, 1997 and 1996, respectively. The provision for income taxes for the first quarter of fiscal 1998 represents foreign, federal alternative minimum taxes and state income tax expense. The Company's effective income tax rate for the three months ended November 30, 1997 of 29% was less than the combined federal and state statutory income tax rates, primarily as a result of the utilization of available net operating loss carryforwards. - 9 - Management's Discussion and Analysis of --------------------------------------- Financial Condition and Results of Operations --------------------------------------------- (continued) New Accounting Pronouncements Statement of Financial Accounting Standards ("SFAS") SFAS No. 128, "Earnings per Share" will be effective commencing with the Company's second quarter in fiscal 1998. The Company believes there will be no material impact upon adoption of SFAS No. 128 on its reported net income per share. SFAS No. 129, "Disclosure of Information about Capital Structure" will be effective commencing with the Company's second quarter in fiscal 1998. SFAS No. 130, "Reporting Comprehensive Income" will be effective for fiscal years beginning after December 15, 1997. SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information" is effective for periods beginning after December 15, 1997. The Company has not determined the effects, if any, that SFAS Nos. 129, 130 and 131 will have on its consolidated financial statements and disclosures. Factors that May Affect Future Results Information provided by the Company in writing and orally, from time to time may contain certain "forward-looking" information as this term is defined by: (1) the Private Securities Litigation Reform Act of 1995 (the "Act") and (2) in releases made by the Securities and Exchange Commission. These Cautionary Statements are being made pursuant to the provisions of the Act and with the intention of obtaining the benefits of the "safe harbor" provisions of the Act. The Company cautions investors that any forward-looking statements made by the Company involve risks and uncertainties, which could cause actual results to differ materially from those projected. The Company has identified certain risks and uncertainties as factors which may impact on its operating results that are detailed below. All of these factors are difficult for the Company to forecast, and these or other factors can materially adversely affect the Company's business and operating results for one quarter or a series of quarters. Limited Financial Resources and Losses from Operations. The Company has limited financial resources. It is therefore subject to all the risks generally associated with a small business having limited financial resources. The Company experienced a loss of approximately ($231,000) for the year ended August 31, 1995. For the years ended August 31, 1996, 1997 and three months ended November 30, 1997, the Company had net income of approximately $162,000, $70,000 and $109,000, respectively. There can be no assurance that the Company will continue profitable operations. Continued operations after the expenditure of the Company's existing cash reserves may require additional working capital to be generated by profitable operations or use of the bank lines of credit and/or additional financing. There can be no assurance that profits will continue or that additional external funding will be obtainable, if such a need should arise. - 10 - Management's Discussion and Analysis of ---------------------------------------- Financial Condition and Results of Operations --------------------------------------------- (continued) Dependence on Key Employees. The business of the Company is dependent upon the efforts of John Waldstein and certain other key management and technical employees. The loss or prolonged disability of such personnel could have a significant adverse effect on the business of the Company. The Company presently maintains a key man life insurance policy of $1,000,000 on John Waldstein, President and Treasurer. Limited Design Engineering Staff. The Company is engaged in an industry which, as a result of extensive research and development, introduces new products on a regular basis. Current competitors or new market entrants may develop new products with features that could adversely affect the competitive position of the Company's products. There can be no assurance that the Company will be successful in selecting, developing, manufacturing and marketing new products or enhancing its existing products or that the Company will be able to respond effectively to technological changes or product announcements by competitors. Any failure or delay in these goals could have a material adverse effect on the Company. Fluctuations in Sales and Operating Results. The quarterly growth rates recently experienced by the Company are not necessarily indicative of future quarterly growth rates. Operating results may also fluctuate due to factors such as the timing of new product announcements and introductions by the Company, its major customers and its competitors, market acceptance of new or enhanced versions of the Company's products, changes in the product mix of sales, changes in the relative proportions of sales among distribution channels or among customers within each distribution channel, changes in manufacturing costs, competitive pricing pressures, the gain or loss of significant customers, increased research and development expenses associated with new product introductions and general economic conditions. A limited number of customers have accounted for a significant portion of sales in any particular quarter. In addition, the Company typically operates with a relatively small backlog. As a result, quarterly sales and operating results generally depend on the volume, timing of, and ability to fulfill orders received within the quarter which are difficult to forecast. In this regard, the Company may recognize a substantial portion of its sales in a given quarter from sales booked and shipped in the last weeks of that quarter. A delay in customer orders, resulting in a shift of product shipment from one quarter to another, could have a significant effect on the Company's operating results. In addition, competitive pressure on pricing in a given quarter could adversely affect the Company's operating results, or such price pressure over an extended period could adversely affect the Company's long-term profitability. The Company establishes its expenditure levels for sales and marketing and other expenses based, in large part, on its expected future results. As a result, if sales fall below expectations, there would likely be a material adverse effect on operating results because only a small portion of the Company's expenses vary with its sales in the short-term. - 11 - Management's Discussion and Analysis of ---------------------------------------- Financial Condition and Results of Operations --------------------------------------------- (continued) Concentration of Customers. Although the Company has a substantial number of customers, a significant portion of the Company's sales are to a small number of large customers. This concentration of customers may cause net sales and operating results to fluctuate from quarter to quarter based on major customers' requirements and the timing of their orders and shipments. Sales to the Company's largest customer accounted for approximately 36% of the Company's total net sales for the fiscal year ended August 31, 1997. The Company's agreements with its customers generally do not include minimum purchase requirements. There can be no assurance that the Company's major customers will place additional orders, or that the Company will obtain orders of similar magnitude from other customers. The Company's operating results could be materially and adversely affected if any present or future major customer were to choose to reduce its level of orders, were to experience financial, operational or other difficulties that resulted in such a reduction in orders to the Company or were to delay paying or fail to pay the Company's receivables from such customer. In fiscal 1995, the Company lost a major domestic distributor who filed for bankruptcy with accounts receivable due the Company of approximately $80,000. Competition. Other companies in the industry offer products in competition with those of the Company. Many of the companies with which the Company competes are substantially larger, have greater resources and market a larger line of products. The Company expects competition to increase significantly in the future from existing competitors and new companies that may enter the Company's existing or future markets. Increased competition could adversely affect the Company's sales and profitability. There can be no assurance that the Company will be able to continue to compete successfully with its existing competitors or with new competitors. Lack of Patent Protection. Although the Company has obtained some patent and copyright protection for certain of its products and software, management believes that competitors may be able to market certain products similar to those sold by the Company. Production in Asia. The Company presently maintains certain manufacturing molds in Asia and has a significant amount of components for some products manufactured in Asia. There can be no assurance that the Asian political or economic environment will remain sufficiently stable to allow reliable and consistent delivery of product. Dependence on Single Source of Supply. The Company is dependent upon sole source suppliers for a number of key components and parts used in the Company's products. There can be no assurance that these suppliers will be able to meet the Company's future requirements for such components or that the components will be available to the Company at favorable prices. Any extended interruption in the supply or significant increase in price of any such components could have a material adverse effect on the Company's operating results in any given period. Foreign Sales. During the year ended August 31, 1997, the Company's foreign sales represented approximately 16% of net sales. There may be a reduction in the Company's foreign sales in the event of significant changes in foreign exchange rates or political and economic instability in foreign countries. - 12 - Management's Discussion and Analysis of ---------------------------------------- Financial Condition and Results of Operations --------------------------------------------- (continued) Limited Market for Common Stock. There is a limited market for the Company's common stock and there can be no assurance that even this limited market will be sustained. Holders of the Company's common stock may have difficulty selling their shares or may have difficulty selling them at a favorable price. Maintain Listing on NASDAQ. In March 1992, the NASD changed its standards for a company's stock to maintain its listing on NASDAQ. The revised standards included maintaining a minimum bid price of $1.00 per share for ten consecutive trading days and shareholders' equity with a minimum balance of $1,000,000. Although the Company has maintained its NASDAQ listing, the Company has, at times, been unable to maintain the $1.00 minimum bid price criteria. In February, 1997, the NASD adopted new more stringent standards for a company to maintain its stock listing on NASDAQ. The new standards may result in the Company's common stock losing its listing on NASDAQ. The final standards will be effective on February 23, 1998. One of the newly adopted standards includes maintaining minimum net tangible shareholders' equity of $2,000,000. As of November 30, 1997, the Company had net tangible shareholders' equity of approximately $1,247,000. The Company does not presently meet the standard and, unless the Company increases its net tangible shareholders' equity to $2,000,000, the Company's common stock will no longer be listed on NASDAQ. If the Company is unable to maintain its listing on NASDAQ, holders of the Company's common stock may have additional difficulty selling their shares at a favorable price. Volatility of Stock Price. The Company's stock price is subject to significant volatility. If revenues or earnings in any quarter fail to meet the investment community's expectations, announcements of new products by the Company or its competitors and other events or factors could have an immediate impact on the Company's stock price. The stock price may also be affected by broader market trends unrelated to the Company's performance. - 13 - Part II. Other Information - --------------------------- Item 6. Exhibits and Reports on Form 8-K -------------------------------- (a) Exhibits: (11.1) Calculation of Net Income Per Share (27) Financial Data Schedule (b) There were no reports on Form 8-K filed for the three months ended November 30, 1997. SIGNATURE --------- Pursuant to the requirements of the Exchange Act, the Registrant has duly caused this report to be signed on its behalf by the undersigned, who is duly authorized to sign and is Chief Financial and Accounting Officer. International Electronics, Inc. Date: 1/13/98 /s/ John Waldstein -------- ------------------------------------------ John Waldstein, President, Treasurer & Chief Financial and Accounting Officer and duly authorized to sign. - 14 - EX-11.1 2 CALCULATION OF NET INCOME PER SHARE Exhibit 11.1 International Electronics, Inc. Calculation of Net Income Per Share (unaudited)
PRIMARY NET INCOME PER SHARE - ---------------------------- Weighted average common and Three months ended ------------------ equivalent shares: Nov. 30, 1997 Nov. 30, 1996 ------------- ------------- Common stock 1,493,301 1,492,469 Common equivalent shares resulting from dilutive stock options and warrants (treasury stock method using the average market price) 93,752 228,425 --------- --------- Total 1,587,053 1,720,894 ========= ========= Net income $109,064 $28,128 ========= ========= Net income per share $.07 $.02 ========= ========= FULLY DILUTED NET INCOME PER SHARE - ---------------------------------- Weighted average common and equivalent shares: Common stock 1,493,301 1,492,469 Common equivalent shares resulting from dilutive stock options and warrants (treasury stock method using the higher of the ending or average market price) 99,128 247,901 --------- --------- Total 1,592,429 1,740,370 ========= ========= Net income $109,064 $28,128 ========= ========= Net income per share $.07 $.02 ========= =========
EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF FINANCIAL CONDITION AT NOVEMBER 30, 1997 (UNAUDITED) AND THE RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED NOVEMBER 30,1997 (UNAUDITED) AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS AUG-31-1998 SEP-01-1997 NOV-30-1997 223,617 0 0 0 1,130,925 2,502,554 0 0 3,176,572 1,642,368 73,718 0 0 15,283 1,445,203 3,176,572 2,360,932 2,361,975 1,297,351 1,297,351 102,723 0 3,136 153,064 44,000 109,064 0 0 0 109,064 .07 .07
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