-----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, EY2rh2mXn5PieBObwFBwuXMfbj1mTDy3UEEuJ8IcXEIPPVuXKvslFfxhoKeB84kL rzHmflSXa7YhxTnuibTccg== 0000950117-98-000963.txt : 19980507 0000950117-98-000963.hdr.sgml : 19980507 ACCESSION NUMBER: 0000950117-98-000963 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980328 FILED AS OF DATE: 19980506 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: NAI TECHNOLOGIES INC CENTRAL INDEX KEY: 0000072575 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER TERMINALS [3575] IRS NUMBER: 111798773 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-03704 FILM NUMBER: 98611030 BUSINESS ADDRESS: STREET 1: 282 NEW YORK AVE STREET 2: SUITE 412 CITY: HUNTINGTON STATE: NY ZIP: 11743 BUSINESS PHONE: 3037765674 MAIL ADDRESS: STREET 1: 282 NEW YORK AVE STREET 2: 1000 WOODBURY ROAD STE 412 CITY: NEW YORK STATE: NY ZIP: 11743 FORMER COMPANY: FORMER CONFORMED NAME: NORTH ATLANTIC INDUSTRIES INC DATE OF NAME CHANGE: 19920703 10-Q 1 NAI TECHNOLOGIES, INC. 10-Q (CONFORMED COPY) SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES - --- EXCHANGE ACT OF 1934 For the quarterly period ended March 28, 1998 OR - --- 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 0-3704 NAI TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) New York 11-1798773 (State or other jurisdiction of (IRS Employer Identification No.) incorporation or organization) 282 New York Avenue, Huntington, NY 11743 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (516) 271-5685 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 May 7, 1998, 9,155,427 shares of NAI Technologies, Inc.'s $.10 par value Common Stock were outstanding. Page 1 of 14 Pages Page 2 NAI TECHNOLOGIES, INC. INDEX
Facing Sheet 1 Index 2 PART I. Financial Information Item 1. Financial Statements Consolidated Balance Sheets - 3 March 28, 1998 and December 31, 1997 Consolidated Statements of Earnings - 4 Three months ended March 28, 1998 and March 29, 1997 Consolidated Statements of Comprehensive Income - 5 Three months ended March 28, 1998 and March 29, 1997 Consolidated Statements of Cash Flows - 6 Three months ended March 28, 1998 and March 29, 1997 Notes to Financial Statements 7 Item 2. Management's Discussion and Analysis of 9-12 Financial Condition and Results of Operations PART II. Other Information Item 5. Other Information 13 Item 6. Exhibits and Reports on Form 8-K 13 Signatures 14
Page 3 PART I - FINANCIAL INFORMATION Item 1. Financial Statements NAI TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Balance Sheets (in thousands)
- -------------------------------------------------------------------------------- March 28, Dec. 31, 1998 1997 (Audited) - -------------------------------------------------------------------------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 745 $ 585 Accounts receivable, net 12,285 11,742 Inventories, net 9,251 9,320 Deferred tax asset 150 148 Other current assets 644 497 - -------------------------------------------------------------------------------- Total current assets 23,075 22,292 - -------------------------------------------------------------------------------- Property, plant and equipment, net 2,858 2,986 Excess of cost over fair value of net assets acquired,net 8,915 9,073 Other assets 1,244 1,330 - -------------------------------------------------------------------------------- Total assets $36,092 $35,681 ================================================================================ LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 6,899 $ 7,465 Notes payable - 571 Current installments of long-term debt 6,614 311 Accrued payroll and commissions 112 302 Other accrued expenses 2,134 2,116 Income taxes payable 761 597 - -------------------------------------------------------------------------------- Total current liabilities 16,520 11,362 - -------------------------------------------------------------------------------- Long-term debt 4,754 9,747 Other accrued expenses 770 783 Deferred income taxes 41 41 - -------------------------------------------------------------------------------- Total liabilities 22,085 21,933 - -------------------------------------------------------------------------------- SHAREHOLDERS' EQUITY: Capital Stock: Preferred stock, no par value, 2,000,000 shares authorized and unissued - - Common stock, $.10 par value, 25,000,000 shares authorized; 9,155,427 shares issued 916 916 Capital in excess of par value 19,457 19,457 Accumulated other comprehensive income 281 196 Accumulated deficit (6,647) (6,821) - -------------------------------------------------------------------------------- Total shareholders' equity 14,007 13,748 - -------------------------------------------------------------------------------- Total liabilities and shareholders' equity $36,092 $35,681 ================================================================================
Page 4 NAI TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Earnings (in thousands except per share amounts) (Unaudited)
- -------------------------------------------------------------------------------- For the Three Months Ended ---------------------------- March 28, March 29, 1998 1997 - -------------------------------------------------------------------------------- Net sales $13,722 $13,062 - -------------------------------------------------------------------------------- Cost of sales 10,450 9,413 - -------------------------------------------------------------------------------- Gross margin 3,272 3,649 - -------------------------------------------------------------------------------- Selling expense 876 1,010 General and administrative expense 1,222 1,070 Research and development 212 424 Other 184 128 - -------------------------------------------------------------------------------- Total expenses 2,494 2,632 - -------------------------------------------------------------------------------- Operating income 778 1,017 - -------------------------------------------------------------------------------- Non-operating income (expense): Interest income 7 14 Amortization of deferred debt costs (81) (104) Interest expense (364) (401) - -------------------------------------------------------------------------------- (438) (491) - -------------------------------------------------------------------------------- Earnings before income taxes 340 526 Provision for income taxes 166 147 - -------------------------------------------------------------------------------- Net earnings $ 174 $ 379 ================================================================================ Earnings per common share - basic $ 0.02 $ 0.04 ================================================================================ Average shares outstanding - basic 9,155 9,028 ================================================================================ Earnings per common share - diluted $ 0.02 $ 0.04 ================================================================================ Average shares outstanding - diluted 9,157 10,199 ================================================================================
Page 5 NAI TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (in thousands) (Unaudited)
- -------------------------------------------------------------------------------- For the Three Months Ended ---------------------------- March 28, March 29, 1998 1997 - -------------------------------------------------------------------------------- Net Earnings $ 174 $ 379 - -------------------------------------------------------------------------------- Other comprehensive income, net of tax: Foreign currency translation adjustment 85 (138) - ------------------------------------------------------------------------------ Other comprehensive income 85 (138) - ------------------------------------------------------------------------------ Comprehensive income $ 259 241 ==============================================================================
Page 6 NAI TECHNOLOGIES, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (in thousands) (Unaudited)
- -------------------------------------------------------------------------------- For the Three Months Ended ---------------------------- March 28, March 29, 1998 1997 ------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ 174 $ 379 Adjustments to reconcile net earnings to cash provided by operating activities: Depreciation and amortization 419 538 Gain on disposal of property, plant and equipment - (7) Provision for inventory obsolescence 45 13 Change in operating assets and liabilities, excluding effects from acquisitions, dispositions and foreign currency adjustments: Accounts receivable (543) 2,656 Inventories 24 212 Accounts payable and other accrued expenses (751) (3,042) Income taxes 162 145 Other, net (142) 51 - -------------------------------------------------------------------------------- Net cash flow (used in) provided by operating activities (612) 945 - -------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (16) (94) Proceeds from sale of property, plant and equipment - 17 - -------------------------------------------------------------------------------- Net cash used in investing activities (16) (77) - -------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Issuances of notes payable 158 - Payments of notes payable (729) - Payments of debt (522) (1,621) Proceeds from borrowings under revolving credit agreement 1,800 - Proceeds from exercise of stock options and stock purchase plan - 78 - -------------------------------------------------------------------------------- Net cash provided by (used in) financing activities 707 (1,543) - -------------------------------------------------------------------------------- Effect of foreign currency exchange rates on cash 81 (126) - -------------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents 160 (801) Cash and cash equivalents at beginning of year 585 2,727 - -------------------------------------------------------------------------------- Cash and cash equivalents at end of period $ 745 $1,926 ============================================================================ SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for (refunded): Interest $ 388 $ 347 Income taxes $ 13 $ - Conversion of 12% Notes into common stock $ - $ 12 ============================================================================
Page 7 NOTES TO FINANCIAL STATEMENTS UNAUDITED FINANCIAL STATEMENTS The accompanying unaudited consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") and, in the opinion of management, include all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods. 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 the rules and regulations of the SEC. The Company believes that the disclosures contained herein are adequate to make the information presented not misleading. The consolidated statements of earnings for the three months ended March 28, 1998 are not necessarily indicative of the results to be expected for the full year. These unaudited financial statements should be read in conjunction with the audited financial statements and accompanying notes included in the Company's 1997 Annual Report on Form 10-K for the year ended December 31, 1997. INVENTORIES Inventories are summarized by major classification as follows:
- -------------------------------------------------------------------------------- March 28, Dec. 31, 1998 1997 (Audited) - -------------------------------------------------------------------------------- (In thousands of dollars) Raw materials and components $8,983 $ 9,360 Work-in-process 2,859 3,086 Finished goods 1,345 1,426 Allowance for obsolescence (3,936) (4,033) Unliquidated progress payments -- (519) - -------------------------------------------------------------------------------- Inventories, net $9,251 $ 9,320 ================================================================================
SIGNIFICANT EVENTS On April 8, 1998, NAI Technologies, Inc. announced that it has signed a Letter of Intent with DRS Technologies, Inc. for NAI to merge with DRS. NAI shareholders will receive one quarter of a share of DRS common stock for each share of NAI common stock held. NAI's 12% Convertible Subordinated Promissory Notes and Warrants to purchase NAI common stock will be converted into or exercisable for DRS common stock at the same one quarter to one exchange ratio. The closing is subject to negotiation of a definitive merger agreement, completion of due diligence, approval by the respective shareholders and certain other conditions. The Letter of Intent provides for the payment of a termination fee by NAI in the amount of $1.5 million in the event that NAI accepts an offer from a third party to acquire NAI. Each company intends to send a joint proxy statement to its shareholders and to hold a special meeting for approval of the transaction. The transaction is expected to close during the third quarter of 1998. Page 8 NAI Technologies, Inc. and Subsidiaries Information by industrial segment
As of or Three Months Ended --------------------------- Mar 28, Mar 29, 1998 1997 ---------------------- Sales to unaffiliated customers: Rugged Systems $9,567 $7,740 System Integration 3,253 4,278 Telecommunications 902 1,044 ---------------------- Total $13,722 $13,062 ====================== Intersegment sales: Rugged Systems $32 $253 System Integration 356 103 ---------------------- Total $388 $356 ====================== Total sales Rugged Systems $9,599 $7,993 System Integration 3,609 4,381 Telecommunications 902 1,044 Eliminations (388) (356) ---------------------- Total $13,722 $13,062 ====================== Operating Earnings (Loss): Rugged Systems $949 $766 System Integration 453 723 Telecommunications (106) (117) ---------------------- Subtotal 1,296 1,372 Corporate expenses & other (518) (355) ---------------------- Total operating earnings 778 1,017 Net interest expense & other (438) (491) ---------------------- Earnings before income taxes $340 $526 ====================== Identifiable Assets: Rugged Systems $23,304 $23,816 System Integration 5,633 3,332 Telecommunications 5,409 6,213 ---------------------- Subtotal 34,346 33,361 Corporate and other 1,746 3,843 ---------------------- Total $36,092 $37,204 ======================
Page 9 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations First Quarter 1998 Compared with First Quarter 1997 The nature of the Company's business is such that year to year changes in sales levels are predominantly due to changes in shipping volume or product mix rather than changing sales prices. Net sales for the first quarter of 1998 were $13.7 million, a 5% increase when compared with $13.1 million for the same period in 1997. The following chart provides the sales breakdown by subsidiary:
In thousands of dollars 1998 1997 % Change - ----------------------------------------------------------------------------- RUGGED SYSTEMS SEGMENT Codar Technology, Inc. $4,318 $ 3,933 10% Lynwood Rugged Systems Ltd. 5,281 4,060 30% Inter-company (32) (253) ----------------------------------- Total Rugged Systems Segment 9,567 7,740 24% SYSTEMS INTEGRATION SEGMENT NAI Systems Division 3,609 4,381 (18%) Inter-company (356) (103) ----------------------------------- Total Systems Integration Segment 3,253 4,278 (24%) TELECOMMUNICATIONS SEGMENT Wilcom, Inc. 902 1,044 (14%) ----------------------------------- Total Telecommunications Segment 902 1,044 (14%) TOTAL $13,722 $13,062 5% ===================================
Sales in the Rugged Systems segment (net of intercompany eliminations) increased 24% to $9.6 million from $7.7 million for the same period in 1997. The increased sales were attributable to 10% sales growth at Codar and 30% sales growth at Lynwood. The sales increase at Lynwood was attributable to strong bookings and increased export sales from the United Kingdom. Sales in the Systems Integration segment (net of intercompany eliminations) decreased 24% to $3.3 million from $4.3 million for the same period in 1997. The decrease in sales at the Systems division is attributable to a delay in anticipated orders from the National Security Agency. The delay in orders is believed to be due to changes in the Agency's budget as a result of priority modifications by the Agency. Although delayed, the Company believes the anticipated orders will be forthcoming. However, there can be no assurance that such orders will be received. In recent years the Company has reduced its dependency on the United States defense budget by expanding its non-military and export business operations. However, the Company still expects approximately 25% of 1998 sales to be directly to the U.S. military or through prime contractors to the U.S. military. The Company is not aware of any programs in which it participates that are specifically targeted for termination or curtailment. The Company's products are utilized on many different U.S. Government programs, which reduces the adverse impact of the cancellation of a single specific program. However, changes in future U.S. defense spending levels could impact the Company's future sales volume. Page 10 Sales in the Telecommunications segment decreased 14% to $0.9 million as compared to $1.0 million for the same period in 1997. The decrease in sales was attributable to a decline in sales of the MFT analog line treatment products and the ELPA transmission products, which are sold to the Telco's. The Company is exploring all avenues to increase its business level and has recently added additional sales resources and restructured its sales and engineering departments. The Company is actively expanding its U.S. and European distributor network to increase sales. The gross margin percentage for the first quarter of 1998 was 23.8%, as compared with 27.9% in the comparable quarter of 1997. The following chart provides the gross margin percentage by subsidiary.
1998 1997 - ---------------------------------------------------------------------------- Codar Technology, Inc. 17.6% 15.9% NAI Systems Division 23.3% 27.6% Lynwood Rugged Systems Ltd. 27.1% 36.8% Wilcom, Inc. 26.4% 31.6%
The improved margins at Codar are attributable to continued cost reduction efforts at the Company, as well as an emphasis to compete for higher margin work. The lower gross margin percentage at NAI Systems Division is attributable to decreased shipping volumes and a less favorable product mix. Lynwood's margins were lower due to an unfavorable product mix and higher engineering expenditures in cost of sales due to the change in mix between Company-sponsored research and development (which are charged to R&D) vs. an increase in customer funded engineering (which are charged to cost of sales). Wilcom's gross margins continued to decline as a result of low shipping volumes and thus poor absorption of fixed overhead costs. Wilcom's margins will not significantly improve until the Company's sales increase. Selling expense for the first quarter of 1998 was $0.9 million as compared with $1.0 million for the same period in 1997. This decrease is due to lower sales commissions at the Wilcom and Systems divisions. General and administrative expenses for the first quarter of 1998 were $1.2 million as compared with $1.1 million in same period of 1997. Company-sponsored research and development expenditures for the first quarter of 1998 were $0.2 million as compared with $0.4 million for the same period in 1997, which represents a decrease of 50%. The decrease is attributable to a change in the mix between Company-sponsored research and development and customer funded engineering. The Company expects that the level of the first quarter 1998 internal research and development expenditures will increase for the remainder of 1998. For the first quarter of 1998, the Company reported operating income of $0.8 million as compared with operating income of $1.0 million for the same period in 1997. Interest expense and amortization of deferred debt costs, net of interest income, was $0.4 million for the first quarter of 1998 as compared with $0.5 million for the same period in 1997. The Company accrued an income tax expense of $0.17 million as compared with $0.15 million in 1997, which equates to effective income tax rates of 49% and 28%, respectively. The entire tax expense in both periods pertains to the Company's Lynwood subsidiary located in the U.K. Lynwood's earnings are taxed in the U.K. and, while the Company has a U.S. net operating loss carry-forward, it is required to pay taxes in the U.K. The Company is unable to recognize the future tax benefit associated with its U.S. operating loss Page 11 carry-forwards due to uncertainties as to whether or not a future benefit will be realized. For the first quarter of 1998 the Company recorded net earnings of $0.17 million as compared with $0.38 million in the first quarter of 1997. Basic earnings per share was $0.02 per share as compared with $0.04 per share for the same period in 1997, based on a weighted average of 9.2 million and 9.0 million shares outstanding, respectively. Diluted earnings per share was $0.02 per share as compared with $0.04 per share for the same period in 1997, based on a weighted average of 9.2 million and 10.2 million shares outstanding, respectively. Liquidity and Capital Resources Cash and cash equivalents totaled $0.7 million at March 28, 1998, as compared to $0.6 million at December 31, 1997. Cash used by operating activities amounted to $0.6 million in the first quarter of 1998, as compared to cash provided by operating activities of $0.9 million in the comparable period of 1997. During the first quarter accounts receivable increased $0.5 million and accounts payable and other accrued expenses decreased $0.8 from December 31, 1997 respectively. During the quarter ended March 28, 1998, the Company had borrowings of long term debt and notes payable of $2.0 million, and had payments of long term debt and notes payable of $1.3 million. Net borrowings of $0.7 million were used for working capital purposes. Borrowings were required because the Company recognized a significant amount of revenue in the last three weeks of the quarter. The Company is trying to level out shipments to maximize cash flow. As of March 28, 1998 the Company's outstanding borrowing under its secured revolving credit agreement was $6.6 million. The Company has made payments totaling $1.425 million ($675 thousand on March 31, 1998) in excess of contractual requirements and has the right to re-borrow such amount if needed. During 1998, the Company will lose the right to re-borrow such amounts at the rate of $750 thousand per quarter. If no additional payments are made the Company will be required to repay $75 thousand on June 30, 1998 and $750 thousand on both September 30, 1998 and December 31, 1998. The remaining amount outstanding is due and payable on January 15, 1999. The Company does not believe that it will generate adequate cash flow from operations to pay the entire balance under its secured revolving credit agreement on January 15, 1999. The Company intends to refinance all or a substantial portion of the amount due and payable, either through borrowings or other capital sources and pursue all available options in order that it meet its obligations. As of March 28, 1998 the Company was in violation of two of its debt covenants and has received waivers from its banks. Inflation The Company's financial statements are prepared in accordance with historical accounting systems, and therefore do not reflect the effect of inflation. The impact of changing prices on the financial statements is not considered to be significant. Year 2000 NAI is currently in the process of evaluating its computer software and databases to determine whether or not modifications will be required to prevent problems related to the year 2000. These problems, which have been widely reported in the media, could cause malfunctions in certain software and databases with respect to dates on or after January 1, 2000, unless corrected. Page 12 At this time, the Company does not believe that it has a significant problem in this regard. The cost, if any, to become year 2000 compliant is not expected to be material. This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current plans and expectations of NAI Technologies and involve risks and uncertainties that could cause actual future activities and results of operations to be materially different from those set forth in the forward-looking statements. Important factors that could cause actual results to differ include, among others, changes in government purchasing policies and budget constraints, competition, the continuity of booking trends, the absence of supply interruptions, new products' market acceptance and warranty performance. Page 13 PART II. OTHER INFORMATION Item 5. Other Information On April 8, 1998, NAI Technologies, Inc. announced that it has signed a Letter of Intent with DRS Technologies, Inc. for NAI to merge with DRS. NAI shareholders will receive one quarter of a share of DRS common stock for each share of NAI common stock held. NAI's 12% Convertible Subordinated Promissory Notes and Warrants to purchase NAI common stock will be converted into or exercisable for DRS common stock at the same one quarter to one exchange ratio. The closing is subject to negotiation of a definitive merger agreement, completion of due diligence, approval by the respective shareholders and certain other conditions. The Letter of Intent provides for the payment of a termination fee by NAI in the amount of $1.5 million in the event that NAI accepts an offer from a third party to acquire NAI. Each company intends to send a joint proxy statement to its shareholders and to hold a special meeting for approval of the transaction. The transaction is expected to close during the third quarter of 1998. Item 6. Exhibits and Reports on Form 8-K a) Exhibits 11 - Statement re: Computation of Per Share Earnings 27 - Financial Data Schedule (Edgar Filing only) b) Reports on Form 8-K Registrant filed a Current Report on Form 8-K dated April 15, 1998 to report that it had signed a Letter of Intent with DRS Technologies, Inc. for NAI to merge with DRS. Page 14 S I G N A T U R E S 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. NAI TECHNOLOGIES, INC. (Registrant) DATE May 5, 1998 By: \s\ Richard A. Schneider --------------------- --------------------------- Richard A. Schneider Executive Vice President (On behalf of the registrant and as Principal Financial Officer) EX-11 2 EXHIBIT 11 Exhibit 11 NAI TECHNOLOGIES, INC. AND SUBSIDIARIES (In thousands)
- -------------------------------------------------------------------------------------- Three Months Ended March 28, March 29, 1998 1997 - -------------------------------------------------------------------------------------- Net Income (loss) $174 $379 Average shares of common stock outstanding during the period 9,155 9,028 -------- -------- Basic Earnings per share $0.02 $0.04 ======== ======== Net Income (loss) 174 379 Interest on Convertible Debt (Net of Taxes) 0 0 Amortization of OID (Net of Taxes) 0 0 Amortization of Deferred Debt Expense (Net of Taxes) 0 0 -------- -------- Adjusted Net Income 174 379 ======== ======== Average shares of common stock outstanding during the period 9,155 9,028 Incremental shares from assumed exercise of stock options, stock warrants & employee stock purchase plan 2 1,171 Dilution from Convertible Debt 0 0 Total shares used to calculate diluted EPS 9,157 10,199 -------- ------- Diluted earnings per share $0.02 $0.04 ======== =======
EX-27 3 EXHIBIT 27
5 1,000 3-MOS MAR-29-1998 MAR-29-1998 745 0 12,285 0 9,251 23,075 10,567 (7,709) 36,092 16,520 5,123 916 0 0 13,091 36,092 13,722 13,722 10,450 12,944 0 0 364 340 166 174 0 0 0 174 0.02 0.02
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