-----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, I8kVTm/lKCZ4pwgCqFH/IkiDv+WA0k3wWWL7xIieGvv5oaoRBPc85AzF2dUE/Jd9 zpGUyyGrKKZNNL8ANEYfSQ== 0000735703-96-000007.txt : 19960416 0000735703-96-000007.hdr.sgml : 19960416 ACCESSION NUMBER: 0000735703-96-000007 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960229 FILED AS OF DATE: 19960412 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: 96546705 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 FEBRUARY 29, 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 1,563,420 (Title of Class) (Shares Outstanding) Part I - Financial Information Item 1: Financial Statements TECHNOLOGY 80 INC. CONDENSED BALANCE SHEETS (UNAUDITED)
ASSETS February 29, August 31, 1996 1995 CURRENT ASSETS ------------ ----------- Cash and cash equivalents $ 656,609 $ 926,163 Short-term investments 105,612 917,271 Accounts receivable (less allowance for doubtful accounts: Feb. 29 - $9,000; Aug. 31 - $9,000) 543,174 506,815 Inventories 830,123 797,794 Deferred taxes - 43,000 Other current assets 37,298 41,945 ---------- ---------- TOTAL CURRENT ASSETS 2,172,816 3,232,988 ---------- ---------- PROPERTY AND EQUIPMENT Furniture and equipment 415,043 402,752 Leasehold improvements 23,060 23,060 ---------- ---------- 438,103 425,812 Less accumulated depreciation 348,893 335,625 ---------- ---------- 89,210 90,187 ---------- ---------- OTHER ASSETS Investments 2,252,408 831,200 Deferred taxes 25,000 41,000 ---------- ---------- 2,277,408 872,200 ---------- ---------- TOTAL ASSETS $4,539,434 $4,195,375 ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 189,339 $ 51,000 Accrued payroll and payroll taxes 122,285 172,517 Accrued liabilities - other 34,735 42,016 ---------- ---------- TOTAL CURRENT LIABILITIES 346,359 265,533 ---------- ---------- DEFERRED INCOME TAXES 67,500 72,000 ---------- ---------- STOCKHOLDERS' EQUITY Common stock, $0.01 par value (authorized - 5,000,000 shares; issued and outstanding - Feb. 29, 1,563,420, Aug. 31, 1,561,670 shares) 15,634 15,617 Paid-in capital 3,374,193 3,372,648 Other - loans (162,263) (163,705) Unrealized gain on available-for-sale securities 100,989 83,091 Retained earnings 797,022 550,191 ---------- ---------- 4,125,575 3,857,842 ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $4,539,434 $4,195,375 ========== ========== See notes to condensed financial statements.
TECHNOLOGY 80 INC. CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Three months ended Six months ended February 29, February 29, 1996 1995 1996 1995 ---------- ---------- ---------- ---------- REVENUES $1,061,504 $ 818,424 $1,933,575 $1,616,653 COST OF GOODS SOLD 440,014 303,024 789,480 582,404 ---------- ---------- ---------- ---------- GROSS PROFIT 621,490 515,400 1,144,095 1,034,249 ---------- ---------- ---------- ---------- OPERATING EXPENSES General and administrative 113,594 100,464 239,514 192,447 Research and development 145,636 109,451 283,289 213,428 Selling 160,111 147,713 336,065 313,024 ---------- ---------- ---------- ---------- TOTAL OPERATING EXPENSES 419,341 357,628 858,868 718,899 ---------- ---------- ---------- ---------- INCOME FROM OPERATIONS 202,149 157,772 285,227 315,350 OTHER INCOME 46,080 29,828 88,604 53,308 ---------- ---------- ---------- ---------- INCOME BEFORE INCOME TAXES 248,229 187,600 373,831 368,658 PROVISION FOR INCOME TAXES 92,000 69,125 127,000 124,750 ---------- ---------- ---------- ---------- NET INCOME $ 156,229 $ 118,475 $ 246,831 $ 243,908 ========== ========== ========== ========== EARNINGS PER SHARE $0.09 $0.07 $0.14 $0.15 ===== ===== ===== ===== See notes to condensed financial statements.
TECHNOLOGY 80 INC. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six months ended February 29, 1996 1995 ----------- ----------- OPERATING ACTIVITIES Net income $ 246,831 $ 243,908 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 13,525 11,973 Deferred taxes 59,000 121,500 Gain on sale of investments (28,576) 0 Gain on sale of fixed asset (62) 0 Changes in operating assets and liabilities: Accounts receivable (36,359) 59,774 Inventories (32,329) 3,312 Other current assets 4,647 (17,889) Accounts payable 138,339 86,770 Due to related parties 0 (24,500) Accrued liabilities (57,513) (63,878) ---------- ---------- NET CASH PROVIDED BY OPERATING ACTIVITIES 307,503 420,970 ---------- ---------- INVESTING ACTIVITIES Proceeds from sale of equipment 1,350 0 Purchase of equipment (13,836) (26,491) Proceeds from sales and maturities of investments 1,108,811 0 Purchases of investments (1,676,386) (607,372) Repayment of other - loans 1,442 2,979 ---------- ---------- NET CASH USED IN INVESTING ACTIVITIES (578,619) (630,884) ---------- ---------- FINANCING ACTIVITIES Proceeds from exercise of stock options 1,562 8,203 ---------- ---------- NET CASH PROVIDED BY FINANCING ACTIVITIES 1,562 8,203 ---------- ---------- NET DECREASE IN CASH AND CASH EQUIVALENTS (269,554) (201,711) CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 926,163 458,433 ---------- ---------- CASH AND CASH EQUIVALENTS AT END OF THE PERIOD $ 656,609 $ 256,722 ========== ========== See notes to condensed financial statements.
TECHNOLOGY 80 INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED) February 29, 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 1,732,490 for the quarter ended February 29, 1996 and 1,648,417 for the quarter ended February 28, 1995. Item 2: Management's Discussion and Analysis Results of Operations Revenues for the second quarter ended February 29, 1996 increased 30% over the same period the preceding year and increased 20% for the six months ended February 29, 1996. The revenue increase for the three and six months ended February 29, 1996 was due to an increase in sales volume. Registrant's backlog is up 86% 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 second quarter ended February 29, 1996 and February 28, 1995 was 59% and 63% respectively. Gross profit percentages for the six months ended February 29, 1996 was 59% compared to 64% for the six months ended February 28, 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 40% for the three months and 44% for the six months ended February 29, 1996 compared to 44% for the same periods the prior year. Other income increased $16,252 for the quarter ended February 29, 1996 and increased $35,296 for the six months ended February 29, 1996 from the same periods the preceding year. The increase was primarily due to increased investment income. Net income was $156,229 and $118,475 for the quarter ended February 29, 1996 and February 28, 1995 respectively. This represents a 32% increase. For the six months ended February 29, 1996 and 1995, net income was $246,831 and $243,908 respectively. Liquidity and Capital Resources Registrant's balance sheet shows a strong capital position. Operations provided $307,503 in cash compared to $420,970 the same period the prior year. Cash and cash equivalents decreased $269,554 since August 31, 1995. The company used $580,061 to purchase investments and equipment 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) Exhibit 27 -- Financial Data Schedule. b. Reports on Form 8-K None. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Technology 80 Inc. (Registrant) April 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 Six months ended February 29, February 29, 1996 1995 1996 1995 --------- --------- --------- --------- Primary Average shares outstanding 1,563,420 1,553,433 1,562,922 1,553,177 Net effect of dilutive stock options - based on the treasury stock method using average market price 169,070 94,984 166,404 92,331 --------- --------- --------- --------- Total 1,732,490 1,648,417 1,729,326 1,645,508 ========= ========= ========= ========= Net income $156,229 $118,475 $246,831 $243,908 ======== ======== ======== ======== Per-share amount $0.09 $0.07 $0.14 $0.15 ===== ===== ===== ===== Fully Diluted Average shares outstanding 1,563,420 1,553,433 1,562,922 1,553,177 Net effect of dilutive stock options - based on the treasury stock method using the quarter end market price, if higher than average market price 169,070 97,866 171,968 96,196 --------- --------- --------- --------- Total 1,732,490 1,651,299 1,734,890 1,649,373 ========= ========= ========= ========= Net income $156,229 $118,475 $246,831 $243,908 ======== ======== ======== ======== Per-share amount $0.09 $0.07 $0.14 $0.15 ===== ===== ===== =====
EX-27 3
5 6-MOS AUG-31-1996 SEP-01-1995 FEB-29-1996 656609 105612 552174 9000 830123 2172816 438103 348893 4539434 346359 0 0 0 15634 4109941 4539434 1933575 1933575 789480 789480 858868 0 600 373831 127000 246831 0 0 0 246831 .14 .14
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