-----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, VwRn4isy2VsSzKxN3RnHOvgLuycoEJNQOVIwrhi9UNyuh9pxNXZGAgRll1umRvIP UoFR2+V526Lz0NDYW51QNQ== 0000735703-96-000010.txt : 19960715 0000735703-96-000010.hdr.sgml : 19960715 ACCESSION NUMBER: 0000735703-96-000010 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960531 FILED AS OF DATE: 19960712 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TECHNOLOGY 80 INC CENTRAL INDEX KEY: 0000735703 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823] IRS NUMBER: 411373380 STATE OF INCORPORATION: MN FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-13870 FILM NUMBER: 96593982 BUSINESS ADDRESS: STREET 1: 658 MENDELSSOHN AVE N CITY: MINNEAPOLIS STATE: MN ZIP: 55427 BUSINESS PHONE: 6125429545 MAIL ADDRESS: STREET 1: 658 MENDELSSOHN AVE N CITY: MINNEAPOLIS STATE: MN ZIP: 55427 10QSB 1 U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-QSB [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MAY 31, 1996. [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____ TO ____. Commission File Number 0-13870 Technology 80 Inc. (Exact name of small business issuer as specified in its charter) Minnesota 41-1373380 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 658 Mendelssohn Avenue North, Minneapolis, Minnesota 55427 (Address of principal executive offices) (Zip Code) (612) 542-9545 (Issuer's telephone number) N/A (Former name, former address and former fiscal year, if changed since last report) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practible date. Common Stock, $0.01 par value 1,567,795 (Title of Class) (Shares Outstanding) Part I - Financial Information Item 1: Financial Statements TECHNOLOGY 80 INC. CONDENSED BALANCE SHEETS (UNAUDITED)
ASSETS May 31, August 31, 1996 1995 CURRENT ASSETS ----------- ----------- Cash and cash equivalents $ 318,828 $ 926,163 Short-term investments 200,465 917,271 Accounts receivable (less allowance for doubtful accounts: May 31 - $9,000; Aug. 31 - $9,000) 532,140 506,815 Inventories 902,494 797,794 Deferred taxes 0 43,000 Other current assets 41,568 41,945 ---------- ---------- TOTAL CURRENT ASSETS 1,995,495 3,232,988 ---------- ---------- PROPERTY AND EQUIPMENT Furniture and equipment 415,682 402,752 Leasehold improvements 23,060 23,060 --------- ---------- 438,742 425,812 Less accumulated depreciation 356,284 335,625 ---------- ---------- 82,458 90,187 ---------- ---------- OTHER ASSETS Investments 2,571,856 831,200 Deferred taxes 25,000 41,000 ---------- ---------- 2,596,856 872,200 ---------- ---------- TOTAL ASSETS $4,674,809 $4,195,375 ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 78,332 $ 51,000 Accrued payroll and payroll taxes 149,715 172,517 Accrued liabilities - other 108,419 42,016 ---------- ---------- TOTAL CURRENT LIABILITIES 336,466 265,533 ---------- ---------- DEFERRED INCOME TAXES 58,000 72,000 ---------- ---------- STOCKHOLDERS' EQUITY Common stock, $0.01 par value (authorized - 5,000,000 shares; issued and outstanding - May 31, 1,567,795, Aug. 31, 1,561,670 shares) 15,678 15,617 Paid-in capital 3,379,845 3,372,648 Other - loans (162,263) (163,705) Unrealized gain on available-for-sale securities 86,388 83,091 Retained earnings 960,695 550,191 ---------- ---------- 4,280,343 3,857,842 ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $4,674,809 $4,195,375 ========== ========== See notes to condensed financial statements.
TECHNOLOGY 80 INC. CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Three months ended Nine months ended May 31, May 31, 1996 1995 1996 1995 ---------- ---------- ---------- ---------- REVENUES $1,087,912 $968,026 $3,021,487 $2,584,679 COST OF GOODS SOLD 437,920 366,502 1,227,400 948,906 ---------- ---------- ---------- ---------- GROSS PROFIT 649,992 601,524 1,794,087 1,635,773 ---------- ---------- ---------- ---------- OPERATING EXPENSES General and administrative 121,304 88,968 360,818 281,415 Research and development 165,123 117,197 448,412 330,625 Selling 181,399 163,455 517,464 476,479 ---------- ---------- ---------- ---------- TOTAL OPERATING EXPENSES 467,826 369,620 1,326,694 1,088,519 ---------- ---------- ---------- ---------- INCOME FROM OPERATIONS 182,166 231,904 467,393 547,254 OTHER INCOME 78,507 27,693 167,111 81,001 ---------- ---------- ---------- ---------- INCOME BEFORE INCOME TAXES 260,673 259,597 634,504 628,255 PROVISION FOR INCOME TAXES 97,000 91,893 224,000 216,643 ---------- ---------- ---------- ---------- NET INCOME $ 163,673 $167,704 $ 410,504 $ 411,612 ========== ========== ========== ========== EARNINGS PER SHARE $0.10 $0.10 $0.24 $0.25 ===== ===== ===== ===== See notes to condensed financial statements
TECHNOLOGY 80 INC. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine months ended May 31, 1996 1995 ----------- ----------- OPERATING ACTIVITIES Net income $ 410,504 $ 411,612 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 20,916 19,075 Deferred taxes 45,000 211,000 Gain on sale of investments (76,964) 0 Gain on sale of fixed asset (62) 0 Changes in operating assets and liabilities: Accounts receivable (25,325) 72,265 Inventories (104,700) (15,993) Other current assets 377 (32,886) Accounts payable 27,332 74,326 Due to related parties 0 (24,500) Accrued liabilities 43,601 (82,635) ---------- ---------- NET CASH PROVIDED BY OPERATING ACTIVITIES 340,679 632,264 ---------- ---------- INVESTING ACTIVITIES Proceeds from sale of equipment 1,350 0 Purchase of equipment (14,475) (47,860) Proceeds from sales and maturities of investments 1,967,764 0 Purchases of investments (2,911,353) (935,887) Repayment of other - loans 1,442 4,378 ---------- ---------- NET CASH USED IN INVESTING ACTIVITIES (955,272) (979,369) ---------- ---------- FINANCING ACTIVITIES Proceeds from exercise of stock options 7,258 8,203 ---------- ---------- NET CASH PROVIDED BY FINANCING ACTIVITIES 7,258 8,203 ---------- ---------- NET DECREASE IN CASH AND CASH EQUIVALENTS (607,335) (338,902) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 926,163 458,433 ---------- ---------- CASH AND CASH EQUIVALENTS AT END OF THE PERIOD $ 318,828 $ 119,531 ========== ========== See notes to condensed financial statements.
TECHNOLOGY 80 INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED) May 31, 1996 NOTE A - FINANCIAL INFORMATION The unaudited interim financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission; accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. The condensed balance sheet at August 31, 1995 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. These interim financial statements should be read in conjunction with the financial statements and notes in the Company's 1995 Annual Report on Form 10-KSB filed with the Securities and Exchange Commission. In the opinion of management, the financial statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the interim periods. NOTE B - EARNINGS PER SHARE Earnings per share is based upon the number of weighted average common shares outstanding of 1,718,574 for the quarter ended May 31, 1996 and 1,659,450 for the quarter ended May 31, 1995. Item 2: Management's Discussion and Analysis Results of Operations Revenues for the third quarter ended May 31, 1996 increased 12% and increased 17% for the nine months ended May 31, 1996 over the same periods the preceding year . The revenue increase for the three and nine months ended May 31, 1996 was due to an increase in sales volume. Registrant's backlog is up 67% since fiscal year end August 31, 1995. The backlog is deliverable within the next twelve months or less and is cancelable. Gross profit percentages for the third quarter ended May 31, 1996 and May 31, 1995 was 60% and 62% respectively. Gross profit percentages for the nine months ended May 31, 1996 was 59% compared to 63% for the nine months ended May 31, 1995. The decrease is primarily due to meeting the demands of a more competitive market and cost increases. Operating expenses as a percentage of sales was 43% for the three months and 44% for the nine months ended May 31, 1996 compared to 38% and 42% for the same periods the prior year. Other income increased $50,814 for the quarter ended May 31, 1996 and increased $86,110 for the nine months ended May 31, 1996 from the same periods the preceding year. The increase was primarily due to increased investment income. Net income was $163,673 and $167,704 for the quarter ended May 31, 1996 and May 31, 1995 respectively. This represents a 2% decrease. For the nine months ended May 31, 1996 and 1995, net income was $410,504 and $411,612 respectively. Liquidity and Capital Resources Registrant's balance sheet shows a strong capital position. Operations provided $340,679 in cash compared to $632,264 the same period the prior year. Cash and cash equivalents decreased $607,335 since August 31, 1995. The company used $955,272 in investing activities since August 31, 1995. Registrant expects that there will be sufficient capital to fund its operations during fiscal year 1996. Registrant has no debt and does not anticipate, at this time, that it will be necessary to seek any debt financing in the near future for ongoing operations, but may consider some type of financing for other purposes. Part II - Other Information Item 1: Legal Proceedings None. Item 2: Changes in Securities None. Item 3: Defaults Upon Senior Securities None. Item 4: Submission of Matters to a Vote of Security Holders None. Item 5: Other Information None. Item 6: Exhibits and Reports on Form 8-K a. Exhibits Exhibit 11 -- Statement Re: Computation of Per- Share Earnings (following signature page) b. Reports on Form 8-K None. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Technology 80 Inc. (Registrant) July 12, 1996 /s/ Duane Markus, President, CEO (Date) Duane Markus, President, CEO EX-11 2 Exhibit 11 -- Statement Re: Computation of Per-Share Earnings
Three months ended Nine months ended May 31, May 31, 1996 1995 1996 1995 --------- --------- --------- --------- Primary Average shares outstanding 1,567,129 1,561,545 1,564,324 1,555,966 Net effect of dilutive stock options - based on the treasury stock method using average market price 151,445 97,905 161,418 94,189 --------- --------- --------- --------- Total 1,718,574 1,659,450 1,725,742 1,650,155 ========= ========= ========= ========= Net income $163,673 $167,704 $410,504 $411,612 ======== ======== ======== ======== Per-share amount $0.10 $0.10 $0.24 $0.25 ===== ===== ===== ===== Fully Diluted Average shares outstanding 1,567,129 1,561,545 1,564,324 1,555,966 Net effect of dilutive stock options - based on the treasury stock method using the quarter end market price, if higher than average market price 154,790 106,058 166,242 99,420 --------- --------- --------- --------- Total 1,721,919 1,667,603 1,730,566 1,655,386 ========= ========= ========= ========= Net income $163,673 $167,704 $410,504 $411,612 ======== ======== ======== ======== Per-share amount $0.10 $0.10 $0.24 $0.25 ===== ===== ===== =====
EX-27 3
5 9-MOS AUG-31-1996 SEP-01-1995 MAY-31-1996 318828 200465 541140 9000 902494 1995495 438742 356284 4674809 336466 0 0 0 15678 4264665 4674809 3021487 3021487 1227400 1227400 1326694 0 2645 634504 224000 410504 0 0 0 410504 .24 .24
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