-----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, ThhDW4L4oFWt6/cwXTWyxjkOTrcNXFn1Vzbl/fJzjQhrll/ZawbGbPhZHa7ogvbK XvoD4L23674uBCIrTDmfzw== 0000735703-97-000007.txt : 19970411 0000735703-97-000007.hdr.sgml : 19970411 ACCESSION NUMBER: 0000735703-97-000007 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970228 FILED AS OF DATE: 19970410 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: 97578306 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 28, 1997. [ ] 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 1,573,295 ----------------------------- ------------------- (Title of Class) (Shares Outstanding) Part I - Financial Information Item 1: Financial Statements TECHNOLOGY 80 INC. CONDENSED BALANCE SHEETS (UNAUDITED)
February 28, August 31, 1997 1996 ASSETS ------------ ----------- CURRENT ASSETS Cash and cash equivalents $ 212,593 $ 419,136 Short-term investments 5,000 127,163 Accounts receivable (less allowance for doubtful accounts: Feb. 28 - $9,000; Aug. 31 - $9,000) 715,367 587,537 Inventories 994,952 956,744 Deferred taxes 21,450 38,600 Other current assets 38,028 29,069 ---------- ---------- TOTAL CURRENT ASSETS 1,987,390 2,158,249 ---------- ---------- PROPERTY AND EQUIPMENT Furniture and equipment 458,469 424,670 Leasehold improvements 23,060 23,060 ---------- ---------- 481,529 447,730 Less accumulated depreciation 380,161 363,780 ---------- ---------- 101,368 83,950 ---------- ---------- OTHER ASSETS Investments 2,898,223 2,580,957 Deferred taxes 55,800 74,400 ---------- ---------- 2,954,023 2,655,357 ---------- ---------- TOTAL ASSETS $5,042,781 $4,897,556 ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 55,918 $ 49,413 Accrued payroll and payroll taxes 112,930 217,214 Accrued income taxes 48,000 206,137 Accrued liabilities - other 1,062 74,379 ---------- ---------- TOTAL CURRENT LIABILITIES 217,910 547,143 ---------- ---------- STOCKHOLDERS' EQUITY Common stock, $0.01 par value (authorized - 5,000,000 shares; issued and outstanding - Feb. 28, 1,573,295, Aug. 31, 1,571,170 shares) 15,733 15,712 Paid-in capital 3,386,399 3,383,944 Other - loans (162,263) (162,263) Unrealized loss on available-for-sale securities (63,697) (102,526) Retained earnings 1,648,699 1,215,546 ---------- ---------- 4,824,871 4,350,413 ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $5,042,781 $4,897,556 ========== ========== See notes to condensed financial statements.
TECHNOLOGY 80 INC. CONDENSED STATEMENTS OF INCOME (UNAUDITED)
Three months ended Six months ended February 28, February 28, 1997 1996 1997 1996 ---------- ---------- ---------- ---------- REVENUES $1,160,828 $1,061,504 $2,154,708 $1,933,575 COST OF GOODS SOLD 413,908 440,014 801,443 789,480 ---------- ---------- ---------- ---------- GROSS PROFIT 746,920 621,490 1,353,265 1,144,095 ---------- ---------- ---------- ---------- OPERATING EXPENSES General and administrative 117,426 113,594 246,127 239,514 Research and development 183,130 145,636 337,114 283,289 Selling 152,503 160,111 304,739 336,065 ---------- ---------- ---------- ---------- TOTAL OPERATING EXPENSES 453,059 419,341 887,980 858,868 ---------- ---------- ---------- ---------- INCOME FROM OPERATIONS 293,861 202,149 465,285 285,227 OTHER INCOME 73,475 46,080 190,868 88,604 ---------- ---------- ---------- ---------- INCOME BEFORE INCOME TAXES 367,336 248,229 656,153 373,831 PROVISION FOR INCOME TAXES 130,000 92,000 223,000 127,000 ---------- ---------- ---------- ---------- NET INCOME $ 237,336 $ 156,229 $ 433,153 $ 246,831 ========== ========== ========== ========== EARNINGS PER SHARE $0.14 $0.09 $0.25 $0.14 ===== ===== ===== ===== See notes to condensed financial statements
TECHNOLOGY 80 INC. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six months ended February 28, 1997 1996 ----------- ----------- OPERATING ACTIVITIES Net income $ 433,153 $ 246,831 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 16,381 13,525 Deferred taxes 19,750 59,000 Gain on sale of investments (118,031) (28,576) Gain on sale of fixed asset 0 (62) Changes in operating assets and liabilities: Accounts receivable (127,830) (36,359) Inventories (38,208) (32,329) Other current assets (8,959) 4,647 Accounts payable 6,505 138,339 Accrued income taxes (158,137) 0 Accrued liabilities (177,601) (57,513) ---------- ---------- NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (152,977) 307,503 ---------- ---------- INVESTING ACTIVITIES Proceeds from sale of equipment 0 1,350 Purchase of equipment (33,799) (13,836) Proceeds from sales and maturities of investments 1,090,672 1,108,811 Purchases of investments (1,112,915) (1,676,386) Repayment of other - loans 0 1,442 ---------- ---------- NET CASH USED IN INVESTING ACTIVITIES (56,042) (578,619) ---------- ---------- FINANCING ACTIVITIES Proceeds from exercise of stock options 2,476 1,562 ---------- ---------- NET CASH PROVIDED BY FINANCING ACTIVITIES 2,476 1,562 ---------- ---------- NET DECREASE IN CASH AND CASH EQUIVALENTS 2,476 309,065 CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD 419,136 926,163 ---------- ---------- CASH AND CASH EQUIVALENTS AT END OF THE PERIOD $ 212,593 $ 656,609 ========== ========== See notes to condensed financial statements.
TECHNOLOGY 80 INC. NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED) February 28, 1997 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, 1996 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 1996 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 1,718,331 for the quarter ended February 28, 1997 and 1,732,490 for the quarter ended February 29, 1996. Item 2: Management's Discussion and Analysis Results of Operations - --------------------- Revenues for the second quarter ended February 28, 1997 increased 9% over the same period the preceding year and increased 11% for the six months ended February 28, 1997. The revenue increase for the three and six months ended February 28, 1997 was due to an increase in sales volume. Gross profit percentages for the second quarter ended February 28, 1997 and 1996 was 64% and 59% respectively. Gross profit percentages for the six months ended February 28, 1997 was 63% compared to 59% for the six months ended February 29, 1996. The increase is primarily due to increased cost cutting measures. Operating expenses as a percentage of sales was 39% for the three months and 41% for the six months ended February 28, 1997 compared to 40% and 44% for the same periods the prior year, respectively. Other income increased $27,395 for the quarter ended February 28, 1997 and increased $102,264 for the six months ended February 28, 1997 from the same periods the preceding year. The increase was primarily due to increased investment income. Net income was $237,336 and $156,229 for the quarter ended February 28, 1997 and 1996 respectively. This represents a 52% increase. For the six months ended February 28, 1997 and 1996, net income was $433,153 and $246,831 respectively. This represents a 75% increase. Liquidity and Capital Resources - ------------------------------- Registrant's balance sheet shows a strong capital position. Operations used $152,977 in cash compared to providing $307,503 the same period the prior year. Cash and cash equivalents decreased $206,543 since August 31, 1996. The company used $56,042 to purchase investments and equipment since August 31, 1996. Registrant expects that there will be sufficient capital to fund its operations during fiscal year 1997. 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. Statements included in this Management's Discussion and Analysis or Plan of Operation and elsewhere in this Form 10-QSB, in future filings by the Registrant with the Securities and Exchange Commission and in the Registrant's press releases and oral statements made with the approval of authorized executive officers, if the statements are not historical or current facts, should be considered "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Registrant wishes to caution the reader not to place undue reliance on any such forward-looking statements, which speak only as of the date made. 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 (following signature page) Exhibit 11 -- Statement Re: Computation of Per-Share Earnings Exhibit 27 -- Financial Data Schedule 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) April 11, 1997 /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 28, February 28, 1997 1996 1997 1996 --------- --------- --------- --------- Primary Average shares outstanding 1,572,894 1,563,420 1,567,659 1,562,922 Net effect of dilutive stock options - based on the treasury stock method using average market price 145,437 169,070 150,956 166,404 --------- --------- --------- --------- Total 1,718,331 1,732,490 1,718,615 1,729,326 ========= ========= ========= ========= Net income $237,336 $156,229 $433,153 $246,831 ======== ======== ======== ======== Per-share amount $0.14 $0.09 $0.25 $0.14 ===== ===== ===== ===== Fully Diluted Average shares outstanding 1,572,894 1,563,420 1,567,659 1,562,922 Net effect of dilutive stock options - based on the treasury stock method using the quarter end market price, if higher than average market price 145,437 169,070 150,956 171,968 --------- --------- --------- --------- Total 1,718,331 1,732,490 1,718,615 1,734,890 ========= ========= ========= ========= Net income $237,336 $156,229 $433,153 $246,831 ======== ======== ======== ======== Per-share amount $0.14 $0.09 $0.25 $0.14 ===== ===== ===== =====
EX-27 3
5 6-MOS AUG-31-1997 SEP-01-1996 FEB-28-1997 212593 5000 724367 9000 994952 1987390 481529 380161 5042781 217910 0 0 0 15733 4809138 5042781 2154708 2154708 801443 801443 887980 0 853 656153 223000 433153 0 0 0 433153 .25 .25
-----END PRIVACY-ENHANCED MESSAGE-----