-----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, U2FvFZFjzQhQsCSM15wbVXAepAfQ8lEk2XxxFRkocKYuSw5Wc/XIXg5rlhewepOw WR+7jb8w1nvt2kLnsU4Ckw== 0000926236-99-000085.txt : 19990816 0000926236-99-000085.hdr.sgml : 19990816 ACCESSION NUMBER: 0000926236-99-000085 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990813 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERPHASE CORP CENTRAL INDEX KEY: 0000728249 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER COMMUNICATIONS EQUIPMENT [3576] IRS NUMBER: 751549797 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-13071 FILM NUMBER: 99688295 BUSINESS ADDRESS: STREET 1: 13800 SENLAC DR CITY: DALLAS STATE: TX ZIP: 75234 BUSINESS PHONE: 2146545000 MAIL ADDRESS: STREET 1: 13800 SENLAC DR STREET 2: 13800 SENLAC DR CITY: DALLAS STATE: TX ZIP: 75234 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended June 30, 1999 Commission File Number 0-13071 INTERPHASE CORPORATION (Exact name of registrant as specified in its charter) Texas 75-1549797 (State of incorporation) (IRS Employer Identification No.) 13800 Senlac, Dallas, Texas 75234 (Address of principal executive offices) (214)-654-5000 (Registrant's telephone number, including area code) _______________________________________________________________________ Indicate by check mark whether the registrant (1) has filed all reports required by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for a much 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 _______________________________________________________________________ Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at August 2, 1999 Common Stock, No par value 5,678,185 INTERPHASE CORPORATION INDEX Part I -Financial Information Item 1. Consolidated Interim Financial Statements Consolidated Balance Sheets as of June 30, 1999 and December 31, 1998 3 Consolidated Statements of Operations for the three months and six months ended June 30, 1999 and 1998 4 Consolidated Statements of Cash Flows for the six months ended June 30, 1999 and 1998 5 Notes to Consolidated Interim Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 10 Part II- Other Information Item 4. Submission of Matters to a Vote of Security Holders 14 Item 6. Reports on Form 8-K and Exhibits 14 Signature 15 INTERPHASE CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands)
(unaudited) June 30, Dec 31, ASSETS 1999 1998 --------------------- Cash and cash equivalents $ 2,848 $ 4,531 Marketable securities 3,449 3,430 Trade accounts receivable, less allowances for uncollectible accounts of $208 and $164, respectively 13,319 13,716 Inventories, net 13,628 13,488 Prepaid expenses and other current assets 1,443 856 Deferred income taxes, net 516 516 --------------------- Total current assets 35,203 36,537 --------------------- Machinery and equipment 10,463 10,135 Leasehold improvements 3,049 2,909 Furniture and fixtures 549 515 --------------------- 14,061 13,559 --------------------- Less-accumulated depreciation and amortization (10,852) (10,339) --------------------- Total property and equipment, net 3,209 3,220 Capitalized software, net 819 773 Deferred income taxes, net 1,376 1,376 Acquired developed technology, net 2,824 3,365 Goodwill, net 2,950 3,070 Other assets 2,133 1,947 --------------------- Total assets $ 48,514 $ 50,288 ===================== LIABILITIES AND SHAREHOLDERS'EQUITY Accounts payable $ 2,603 $ 2,883 Accrued liabilities 1,591 1,639 Accrued compensation 1,595 2,041 Income taxes payable 337 1,408 Current portion of debt 2,218 2,252 --------------------- Total current liabilities 8,344 10,223 Other liabilities 658 873 Long term debt 6,265 7,367 --------------------- Total liabilities 15,267 18,463 Commitments and contingencies Common stock redeemable 3,304 3,813 SHAREHOLDERS' EQUITY Common stock, no par value 32,366 31,221 Retained deficit (2,273) (3,217) Cumulative other comprehensive income (150) 8 --------------------- Total shareholders' equity 29,943 28,012 --------------------- Total liabilities and shareholders' equity $ 48,514 $ 50,288 ===================== The accompanying notes are an integral part of these consolidated financial statements.
INTERPHASE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands except per share amounts) (unaudited) Three Months Ended Six Months Ended 30-Jun-99 30-Jun-98 30-Jun-99 30-Jun-98 ------------------ -------------------- $ 17,818 $ 16,087 Revenues $ 35,164 $ 33,676 9,521 8,007 Cost of sales 19,052 17,453 ------------------ -------------------- 8,297 8,080 Gross profit 16,112 16,223 3,070 2,640 Research and development 6,031 5,506 3,109 2,617 Sales and marketing 5,774 5,003 1,405 1,500 General and administrative 2,605 2,829 ------------------ -------------------- 7,584 6,757 Total operating expenses 14,410 13,338 ------------------ -------------------- 713 1,323 Operating income 1,702 2,885 ------------------ -------------------- 63 60 Interest income 195 143 (127) (286) Interest expense (369) (526) 74 (220) Other, net (150) (445) ------------------ -------------------- 723 877 Income before income taxes 1,378 2,057 203 367 Provision for income taxes 434 839 ------------------ -------------------- $ 520 $ 510 Net income $ 944 $ 1,218 ================== ==================== Net income per share $ 0.10 $ 0.09 Basic EPS $ 0.17 $ 0.22 ------------------ -------------------- $ 0.09 $ 0.09 Diluted EPS $ 0.17 $ 0.21 ------------------ -------------------- Weighted average common 5,422 5,517 shares 5,418 5,517 ------------------ -------------------- Weighted average common 5,801 5,682 and dilutive shares 5,698 5,674 -------------------------------------------------------------------- The accompanying notes are an integral part of these consolidated financial statements.
INTERPHASE CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months ended 30-Jun-99 30-Jun-98 ------------------------ Cash flow from operating activities: Net income $ 944 $ 1,218 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,978 1,909 Change in assets and liabilities: Trade accounts receivable 397 2 Inventories (140) 1,430 Prepaid expenses and other current assets (587) 105 Accounts payable and accrued liabilities (328) (1,707) Accrued compensation (446) (15) Income taxes payable (1,071) 405 ------------------------ Net adjustments (197) 2,129 ------------------------ Net cash provided by operating activities 747 3,347 Cash flows from investing activities: Additions to property, equipment, leasehold improvements and capitalized software (1,352) (873) Decrease in other assets (186) 10 (Increase) decrease in marketable securities (19) 91 ------------------------ Net cash (used) by investing activities (1,557) (772) Cash flows from financing activities: Payments on debt (1,136) (1,189) Other long term liabilities (215) (66) Change in comprehensive income (158) 35 Purchase of redeemable common stock (509) - Proceeds from the exercise of stock options 1,145 8 ------------------------ Net cash (used) by financing activities (873) (1,212) ------------------------ Net increase (decrease) in cash and cash equivalents (1,683) 1,363 Cash and cash equivalents at beginning of period 4,531 2,247 ------------------------ Cash and cash equivalents at end of period $ 2,848 $ 3,610 ======================== Supplemental Disclosure of Cash Flow Information: Income taxes paid 1,509 432 Interest paid 364 494 The accompanying notes are an integral part of these consolidated financial statements.
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION The accompanying consolidated interim financial statements include the accounts of Interphase Corporation and its wholly owned subsidiaries (the "Company"). Significant intercompany accounts and transactions have been eliminated. While the accompanying interim financial statements are unaudited, they have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of the Company, all material adjustments and disclosures necessary to fairly present the results of such periods have been made. 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 Securities and Exchange Commission. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 1998. 2. NET INCOME PER COMMON AND COMMON DILUTIVE SHARE The following table shows the calculations of the Company's weighted average common and dilutive equivalent shares outstanding (in thousands): Three months ended: Six months ended: Jun 30, Jun 30, June 30, June 30, 1999 1998 1999 1998 ----- ----- ----- ----- Weighted average shares outstanding 5,422 5,517 5,418 5,517 Dilutive impact of stock options 379 165 280 157 ----- ----- ----- ----- Total weighted average common and common equivalent shares outstanding 5,801 5,682 5,698 5,674 --------------------------------------- Anti-Dilutive Weighted Shares Excluded from shares outstanding 202 960 246 956
3. CREDIT FACILITY The Company maintains a credit facility with BankOne Texas NA which consists of an $8,500,000 acquisition term loan, a $2,500,000 equipment financing facility and a $5,000,000 revolving credit facility. The facility is a two-year facility with an annual renewal provision, and bears interest at the bank's base rate (currently 8.5%). The term loan is payable in equal quarterly installments of $548,000 plus accrued interest with final payment due November 30, 2001. The Company has the ability to satisfy the quarterly payments on the term notes through borrowings under the revolving credit component of the credit facility. The revolving portion of the loan has been renewed and is due June 30, 2001. The credit facility is collateralized by marketable securities, assignment of accounts receivable and equipment. The credit facility includes certain restrictive financial covenants including, among others, tangible net worth, total liabilities to tangible net worth, interest coverage, quick ratio, debt service coverage, and is subject to a borrowing base calculation. At June 30, 1999, the Company had borrowings of $8,452,000 and remaining availability under the revolving credit facility was $1,500,000. 4. COMPREHENSIVE INCOME The following table shows the Company's comprehensive income (in thousands): Three months ended: Six months ended: June 30, June 30, June 30, June 30, 1999 1998 1999 1998 ---- ---- ---- ----- Net income 520 510 944 1,218 Other comprehensive income Unrealized holding gains (losses) arising during period, net of tax (77) 0 (77) 0 Foreign currency translation adjustment (34) 79 (81) 35 ---- ---- ---- ----- Comprehensive income 409 589 786 1,253 ==== ==== ==== =====
5. STOCK REPURCHASE Effective October 1998, the Company approved a stock repurchase agreement with Motorola, Inc. to purchase all of the shares owned by Motorola for $4,125,000, ratably from October 1998 to July 2002. Under the terms of the agreement, Motorola retains the right as an equity owner and has assigned its voting rights to the Company. The Company plans to cancel the stock upon each repurchase. Prior to the repurchase agreement, Motorola owned approximately 12% of the Company's outstanding common stock. The future scheduled payments are classified as redeemable common stock in the accompanying consolidated Balance Sheet. As of June 30, 1999, 131,334 shares have been repurchased for $820,837 and retired. 6. DISPOSISTION OF ASSETS Effective June 30, 1999 the Company sold an 80% interest in part of its VOIP business, Quescom, for $1,172,000 to the former owner of Interphases's Paris Operation. The sales proceeds consisted of $300,000 due at closing with a $872,000 technology license fee. The license fee is payable based on capital availability of the purchaser or based on 5% of the purchaser's revenues, beginning July 1, 2000. The sales agreement also contains purchasing and manufacturing rights for the Purchaser of certain Interphase technology, as well as certain rights of first refusal for Interphase with respect to executive salaries, disposition of assets, and merger and acquisitions. Due to the uncertainty of payment on the remaining license fee, the Company will recognize the income as payment is received. As of June 30, 1999, $300,000 had been received and is included in other income in the Statement of Operations. The Company will account for its remaining 20% investment in the new company using the equity method of accounting. This investment is included in other assets. 7. SEGMENT DATA The Company manages its business segments on an industry basis. The Company's reportable segments are composed of high performance networking/storage adapters and voice over Internet Protocol (VOIP) products and services. The Company evaluates the performance of its segments based on revenue and operating profits. Segment operating income (loss) excludes general and administrative expenses. (Amounts in thousands $): Segment Data: Three months ended June 30: Three months ended Three months ended June 30, 1999 June 30, 1998 Networking VOIP Total Networking VOIP Total -------------------------- ------------------------- Revenues 17,657 161 17,818 16,087 - 16,087 Operating income 2,809 (691) 2,118 2,823 - 2,823 Fixed assets 3,367 661 4,028 3,295 - 3,295 Reconciliation of segment operating income to consolidated operating income: Three months ended June 30, 1999 June 30, 1998 ---------------------------- Networking 2,809 2,823 VOIP (691) - General and Administrative (1,405) (1,500) Consolidated Operating Income 713 1,323 Segment Data: Six-month period ended June 30: Six-month period ended Six-month period ended June 30, 1999 June 30, 1998 Networking VOIP Total Networking VOIP Total ------------------------- -------------------------- Revenues 34,826 338 35,164 33,676 - 33,676 Operating income 5,826 (1,519) 4,307 5,714 - 5,714
Reconciliation of segment operating income to consolidated operating income: Six-month period ended June 30, 1999 June 30, 1998 ---------------------------- Networking 5,826 5,714 VOIP (1,519) - General and Administrative (2,605) (2,829) Consolidated Operating Income 1,702 2,885 Fixed Assets and Capitalized Software by Segment: June 30, 1999 Dec 31, 1998 ------------- ------------ Networking 3,367 3,241 VOIP 661 752 Total 4028 3,993 Segment Data: Geographic: Revenue related to North American and other foreign countries for the three month and six-month period ended June 30, 1999 and 1998 are as follows. (Amounts in thousands $) Three months ended: Six months ended: Revenue June 30, 1999 June 30, 1998 June 30, 1999 June 30, 1998 ------------- ------------- ------------- ------------- North America 14,490 13,248 27,559 25,580 Europe 3,006 2,596 7,125 7,046 Pac Rim 322 243 480 1,050 ------ ------ ------ ------ Total 17,818 16,087 35,164 33,676 ====== ====== ====== ====== Long lived assets related to North American and other foreign countries for the period ended June 30, 1999 and December 31, 1998 are as follows. (Amounts in thousands $) Long lived assets June 30, 1999 Dec 31, 1998 ------------- ------------ North America 3,815 3,701 Europe 213 292 Pac Rim 0 0 ----- ----- Total 4,028 3,993 ===== =====
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Revenues for the three months ended June 30, 1999 ("second quarter 1999") were $17,818,000. Revenues for the same period in 1998 ("comparative period") were $16,087,000. The 11% increase in total revenue from the second quarter of 1999 to the comparable period is attributable to increases in Fibre Channel and ATM product revenues, partially offset by decreases in FDDI, SCSI, Ethernet, Fast Ethernet and WAN product revenues. During the second quarter, one of the Company's distributors asked to return certain products totaling $1.5 million. This request was the result of an unexpected product specification change and production delays of one of the distributor's customers. The Company evaluated this request based upon the long- term business prospects with the distributor and its customer, as well as the Company's ability to use the returned product to fulfill other customers' current and future orders. Based on this analysis, the Company agreed to accept the return. LAN product revenues, consisting of FDDI, Ethernet, ATM and Fast Ethernet, represented 49% of total revenues for the second quarter 1999, as compared to 61% for the comparative period. FDDI product revenues declined 5%, Ethernet product revenues declined 63%, ATM product revenues increased 107% and Fast Ethernet product revenues declined 30% as compared to the comparative period. FDDI, Ethernet, ATM and Fast Ethernet product revenues represented 16%, 4%, 12% and 20% of total revenues, respectively for the second quarter 1999. Mass storage product revenues, consisting of SCSI and Fibre Channel adapter cards, represented 43% of total revenues for the second quarter 1999, as compared to 22% for the comparative period. SCSI product revenues declined 22% while Fibre Channel product revenues increased 163% over the comparative period. WAN product revenues comprised 5% of revenues for the second quarter 1999, as compared to 15% for the comparative period. WAN product revenues decreased 64% as compared to the comparative period. Geographically, North America revenues comprised 81% of consolidated revenues in the second quarter 1999 compared to 82% in the comparative period. European revenues comprised 17% of consolidated revenues in the second quarter 1999 and 16% in the comparative period. Pacific Rim revenues comprised 2% of consolidated revenues in the second quarter 1999 and 2% in the comparative period. Revenues for the six month period ended June 30, 1999 were $35,164,000 as compared to $33,676,000 for the six month period ended June 30, 1998. Revenues from LAN, Mass Storage and WAN products were 48%, 37% and 12% of total revenues respectively, for the six month period ended June 30 1999. The Company's current marketing strategy is to increase market penetration through sales to major OEM customers. One of these customers accounted for approximately 52% of the Company's revenue for the second quarter of 1999 and 39% in the comparable period. The gross margin percentage for the second quarter 1999 was 47% and 50% for the comparable period. The gross margin percentage for the six-month period ended June 30, 1999 and 1998 was 46% and 48% respectively. The decrease in gross margin is due to a shift in the product sales mix. Operating expenses for the second quarter 1999 were $7,584,000 as compared to $6,757,000 for the comparable period. The increase in operating expenses is due to expenses relating to the Company's new subsidiaries Zirca.com and Quescom. Operating expenses for the six month period ended June 30, 1999 were $14,410,000 as compared to $13,338,000 for the six-month period ended June 30, 1998. Other expense for the second quarter included a gain of $300,000 that represents an initial license payment due to the restructuring of the Company's subsidiary, Quescom. The Company transferred the assets of its Quescom subsidiary to a new company, T2PCom in exchange for a 20- percent equity interest in the company and a license payment of $1,172,000 for previously developed technology. LIQUIDITY AND CAPITAL RESOURCES The Company's cash, cash equivalents and marketable securities aggregated $6,297,000 at June 30, 1999, and $7,961,000 at December 31, 1998. The Company's decreased cash position is primarily due to the purchase of fixed assets, payment on debt, tax payments and purchase of common stock. In the next twelve months, scheduled debt payments on the Company's credit facility are approximately $2,192,000. Effective October 1998, the Company approved a stock repurchase agreement with Motorola, Inc. to purchase all of the shares owned by Motorola for $4,125,000, ratably from October 1998 to July 2002. Under the terms of the agreement, Motorola retains the right as an equity owner and has assigned it voting rights to the Company. The Company plans to cancel the stock upon each repurchase. Prior to the repurchase agreement, Motorola owned approximately 12% of the Company's outstanding common stock. The future scheduled payments are classified as redeemable common stock in the accompanying consolidated Balance Sheet. As of June 30, 1999, 131,334 shares have been repurchased for $820,837 and retired. The Company expects that its cash, cash equivalents, marketable securities and proceeds from its credit facility will be adequate to meet foreseeable cash needs for the next 12 months. Year 2000 The Company has recognized the need to ensure that its operations and relationships with vendors and other third parties will not be adversely impacted by software processing errors arising from the calculations using the Year 2000 ("Y2K") and beyond. The Company has created a company-wide Y2K team to identify and resolve Y2K issues associated with the Company's internal information systems, internal non-information systems, the products sold by the Company, and its major suppliers of products and services. The Company established a Y2K program coordinator to ensure these programs are implemented across the Company. The coordinator provides a single point of reference, both internal, and external, for the Company. The products that the Company sells are Y2K compliant. The Company's internal reporting system is being replaced with a Y2K compliant Enterprise Reporting Planning (ERP) system that is scheduled to go into operation the third quarter of 1999. In addition, the Company is communicating with its suppliers, customers, vendors and financial service organizations regarding their Year 2000 compliance. The Company anticipates that its full Year 2000 review, new information system implementation, and other necessary remediation actions will be substantially complete by the end of the third quarter of 1999. Direct expenditures in 1999 are expected to be between $850,000 and $900,000. The Company will fund these expenditures through its normal operating budget, and as required by generally accepted accounting principles, these costs are being expensed as incurred, excluding the capitalization of application software. The capitalization for software will be approximately $300,000. The Company does not believe that the costs associated with such actions will have a material adverse effect on the Company's results of operations or financial condition. However the costs of such actions may vary from quarter to quarter, and there is no assurance that there will not be a delay in the Company's implementation or increased costs associated with the implementation of such changes. Failure to achieve Y2K readiness for the Company could delay its ability to manufacture and ship products and deliver services. The Company's inability to perform these functions could have an adverse effect on future results of operations or financial condition. Non-IT systems include, but are not limited to, telephone/PBX systems; fax machines; facilities systems regulating alarms, building access and sprinklers; manufacturing, assembly and distribution equipment; and other miscellaneous systems and processes. Y2K readiness for these internal non-IT systems is the responsibility of the Company's Y2K coordinator. It is anticipated that all Non-IT systems will be compliant if they are not already compliant by the end of the third quarter of 1999. The Company regularly reviews and monitors the suppliers' Y2K readiness plans and performance. Based on the Company's risk assessment, selective on-site reviews may be performed. In some cases, to meet Y2K readiness, the Company has replaced suppliers or eliminated suppliers from consideration for new business. The Company has also contracted with multiple transportation companies to provide product delivery alternatives. While the Company has contingency plans in place to address most issues under its control, an infrastructure problem outside of its control could result in a delay in product shipments depending on the nature and severity of the problems. The Company would expect that most utilities and service providers would be able to restore service within days although more pervasive system problems involving multiple providers could last two to four weeks or more depending on the complexity of the systems and the effectiveness of their contingency plans. Although the Company is dedicating substantial resources towards attaining Y2K readiness, there is no assurance it will be successful in its efforts to identify and address all Y2K issues. Even if the Company acts in a timely manner to complete all of its assessments; identifies, develops and implements remediation plans believed to be adequate; and develops contingency plans believed to be adequate, some problems may not be identified or corrected in time to prevent material adverse consequences to the Company. The discussion above regarding estimated completion dates, costs, risks and other forward-looking statements regarding Y2K is based on the Company's best estimates given information that is currently available and is subject to change. As the Company continues to progress with its Y2K initiatives, it may discover that actual results will differ materially from these estimates. Use of Forward-Looking Statements: Certain statements contained in MD&A are forward-looking, including statements concerning expected expenses, Year 2000 readiness, and the adequacy of the Company's sources of cash to finance its current and future operations. Factors which could cause actual results to materially differ from management's expectations include the following: general economic conditions and growth in the high tech industry; competitive factors and pricing pressures; changes in product mix; the timely development and acceptance of new products; inventory risks due to shifts in market domain; Year 2000 readiness of the Company's suppliers, and the risks described from time to time in the Company's SEC filings. PART II OTHER INFORMATION Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS On May 5, 1999, the Annual meeting of Shareholders of Interphase Corporation was held. The following matter was voted upon and approved at the meeting. An election of directors of the Company to serve until the next annual meeting for the Company was held. The following seven individuals were elected as Directors of the Company: Nominee: Votes Cast For Votes Withheld -------- -------------- -------------- James F. Halpin 5,074,822 203,780 Paul N. Hug 5,097,822 180,780 Gregory B. Kalush 5,074,822 203,780 R. Stephen Polley 5,073.289 205,313 David H. Segrest 5,074,822 203,780 S. Thomas Thawley 5,097,822 180,780 William Voss 5,097,822 180,780
To be elected a director each individual must have received a plurality of all votes cast at the meeting of election of directors. Item 6. Reports on form 8-K None Exhibits Exhibit 27 Financial Data Schedule SIGNATURE 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. INTERPHASE CORPORATION (Registrant) Date: August 13, 1999 /s/ Steven P. Kovac -------------------- Steven P. Kovac Chief Financial Officer, Vice President of Finance and Treasurer (Principal Financial and Accounting officer) EX-27 2
5 1,000 6-MOS DEC-31-1999 JUN-30-1999 2,848 3,449 13,527 208 13,628 35,203 14,061 10,852 48,514 8,344 0 0 0 32,366 (2,423) 48,514 35,164 35,164 19,052 5,774 8,636 0 369 1,378 434 944 0 0 0 944 0.17 0.17
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