-----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, QldLdg7pkXoQqfHNq6zHbaIgiIXOu2XcUXZA04eqhsbR0G24YNYEt3rUNg2vrYhk pHZBLLlx8qq/bckLW0SkXw== 0000740726-97-000005.txt : 19970520 0000740726-97-000005.hdr.sgml : 19970520 ACCESSION NUMBER: 0000740726-97-000005 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: LASER CORP CENTRAL INDEX KEY: 0000740726 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690] IRS NUMBER: 870395567 STATE OF INCORPORATION: UT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-13316 FILM NUMBER: 97605933 BUSINESS ADDRESS: STREET 1: 1832 S 3850 WEST CITY: SALT LAKE CITY STATE: UT ZIP: 84104 BUSINESS PHONE: 8019721311 MAIL ADDRESS: STREET 1: 1832 SOUTH 3850 WEST CITY: SALT LAKE CITY STATE: UT ZIP: 84104 10QSB 1 THIS DOCUMENT IS THE SUBMISSION OF FORM 10QSB AND CONTAINS THE QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997. ================================================================================ United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB (Mark one) [ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1997 or TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to __________________ Commission File Number 0-13316 LASER CORPORATION ------------------------------------------------------------------------- (Exact name of small business issuer as specified in its charter) Utah 87-0395567 --------------------------------- --------------------------------- (State of Incorporation) (I.R.S. Employer Identification No.) 1832 South 3850 West Salt Lake City, UT 84104 --------------------------------- --------------------------------- (Address of principal (Zip Code) executive office) (801) 972-1311 ------------------------------------------------------------------------- (Issuer's telephone number, including area code) Not Applicable ------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Check whether the issuer (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 State the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date. Common Stock, .05 Par Value -- 682,088 shares as of March 31, 1997. Page 1 of 10 ================================================================================ INDEX LASER CORPORATION AND SUBSIDIARIES PART I. FINANCIAL INFORMATION - ------- --------------------- Item 1. Financial Statements (Unaudited) Consolidated Balance Sheets - March 31, 1997 and December 31, 1996. Consolidated Statements of Operations - Three months ended March 31, 1997 and 1996. Consolidated Statements of Cash Flows - Three months ended March 31, 1997 and 1996. Notes to Consolidated Financial Statements - March 31, 1997. Item 2. Management's Discussion and Analysis. PART II. OTHER INFORMATION - -------- ----------------- SIGNATURES - ---------- Page 2 of 10 ================================================================================ PART I. FINANCIAL INFORMATION - ------- Item 1. LASER CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31, December 31, ASSETS 1997 1996 Unaudited ----------- ----------- CURRENT ASSETS [C] [C] Cash and cash equivalents $ 194,615 $ 555,204 Receivables: Trade receivables 522,639 624,819 Less allowance for doubtful accounts (45,000) (56,000) Other 3,078 3,319 ----------- ----------- 480,717 572,138 Inventories: Raw materials 782,961 756,930 Work in process 607,005 468,573 Finished Goods 69,576 63,500 ----------- ----------- 1,459,542 1,289,003 Notes Receivable - current portion 671,947 176,284 Other current assets 30,647 34,829 ----------- ----------- Total Current Assets 2,837,468 2,627,458 NOTES RECEIVABLE LESS CURRENT PORTION --- 534,308 EQUIPMENT AND LEASEHOLD IMPROVEMENTS Equipment 1,396,411 1,389,535 Leasehold improvements 612,260 612,260 ----------- ----------- 2,008,671 2,001,795 Less accumulated depreciation and amortization (1,801,929) (1,779,865) ----------- ----------- 206,742 221,930 OTHER ASSETS 62,996 62,996 ----------- ----------- $ 3,107,206 $ 3,446,692 =========== =========== See accompanying notes to consolidated financial statements Page 3 of 10 ================================================================================ LASER CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS March 31, December 31, 1997 1996 (Unaudited) ----------- ----------- LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES [C] [C] Trade accounts payable $ 432,699 $ 696,133 Accrued expenses 261,179 177,363 Accrued warranty expense 100,000 100,000 ----------- ----------- Total Current Liabilities 793,878 973,496 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Common Stock, $.05 par value; Authorized Shares - 10,000,000 Issued Shares - 682,088 Outstanding Shares - 682,088 34,105 34,105 Additional paid-in capital 701,537 701,537 Retained earnings 1,677,686 1,837,554 Treasury stock, at cost (100,000) (100,000) ----------- ----------- Total Stockholders' Equity 2,313,328 2,473,196 ----------- ----------- $ 3,107,206 $ 3,446,692 =========== =========== See accompanying notes to consolidated financial statements Page 4 of 10 ================================================================================ LASER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended -------------------------- March 31, March 31, 1997 1996 ----------- ----------- REVENUES: [C] [C] Net sales $ 980,391 $ 861,505 Interest and other income 15,779 23,852 ----------- ----------- 996,170 885,357 COSTS AND EXPENSES: Cost of products sold 780,002 698,773 Selling, general and administrative 189,085 139,716 Research and development 170,242 164,815 Royalties 16,709 14,370 Interest --- 809 ----------- ------------ 1,156,038 1,018,483 ----------- ----------- LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (159,868) (133,126) INCOME TAX BENEFIT (EXPENSE) - CURRENT --- --- ----------- ----------- NET LOSS $ (159,868) $ (133,126) =========== =========== NET LOSS PER SHARE $ ( .23) $ ( .20) =========== =========== Average number of shares of Common Stock outstanding 682,000 682,000 =========== =========== See accompanying notes to consolidated financial statements Page 5 of 10 ================================================================================ LASER CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (Unaudited) 1997 1996 CASH FLOWS FROM OPERATING ACTIVITIES: ----------- ----------- [C] [C] Net income (loss) $ (159,868) $ (133,126) Adjustments to reconcile net income (loss) to net cash provided from (used in) operating activities: Depreciation and amortization 22,064 26,344 (Increase) decrease in assets: Trade accounts receivable 91,421 (140,432) Inventories (170,539) (33,041) Other current assets 4,182 (18,689) Increase (decrease) in liabilities: Trade accounts payable and accrued expenses (179,618) (8,527) ----------- ----------- Net Cash Used in Operating Activities (392,358) (307,471) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (6,876) (11,632) Payments received on long term notes 38,645 40,291 ----------- ----------- Net Cash Provided from Investing Activities 31,769 28,659 CASH FLOWS FROM FINANCING ACTIVITIES: Payments on long-term debt and capital lease obligations --- (9,617) ----------- ----------- Net Cash Used in Financing Activities --- (9,617) ----------- ----------- INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (360,589) (288,429) CASH AND CASH EQUIVALENTS, BEG. OF PERIOD 555,204 936,370 ----------- ----------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 194,615 $ 647,941 =========== =========== See accompanying notes to consolidated financial statements Page 6 of 10 ================================================================================ LASER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) March 31, 1997 NOTE A - BASIS OF PRESENTATION - ------------------------------ The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-QSB and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 1997 are not necessarily indicative of the results that may be expected for the year ending December 31, 1997. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 1996 included in the Company's Annual Report on Form 10-KSB (file number 0-13316). NOTE B - RECLASSIFICATIONS - -------------------------- Certain 1996 financial statement amounts have been reclassified to conform to 1997 presentations. These amounts were not material reclassifications. Page 7 of 10 ================================================================================ ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION - ------------------------------------------------------------------ The following discussion should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere herein. RESULTS OF OPERATIONS - --------------------- Three months ended March 31, 1997. - ---------------------------------- Net sales for the three months ended March 31, 1997 were $980,391 as compared to $861,505 for the same period in 1996, an increase of $118,886 or 14%. This increase was primarily a result of increased laser product and service sales to two of the Company's original equipment manufacturer ("OEM") customers. This increase was partially offset by decreases in product and service sales to another major OEM customer and to all other customers, as a consolidated group. The Company believes that the increase in net sales resulted from the normal quarter to quarter variations in product and service orders received from its OEM customers. OEM customer orders are based in part on the end-user demand for customer products which use or incorporate the Company's products and services. Cost of products sold as a percent of Company net sales were 80% for the three months ended March 31, 1997 as compared to 81% for the same period in 1996, a decrease of 1%. This decrease was primarily the result of decreases in overhead cost percentages due to the increase in net sales. Selling, general, and administrative expenses for the three months ended March 31, 1997 were $189,085 as compared to $139,716 for the same period in 1996, an increase of $49,369 or 35%. This increase was primarily the result of pre-market advertising and other "start up" related costs of the Company's new dermatologic and ophthalmic medical products. Research and development expenditures for the three months ended March 31, 1997 were $170,242 as compared to $164,815 for the same period in 1996, an increase of $5,427 or 3%. As a result of continuing research and development expenditures, the increase in advertising and "start up" costs relating to the Company's medical products and other factors, which were partially offset by an increase in laser product and service sales, the Company recognized a net loss for the three months ended March 31, 1997 of $159,868, or $.23 per share compared to a net loss of $133,126 or $.20 per share for the same period of 1996. Page 8 of 10 ================================================================================ LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- On March 31, 1997, the Company had working capital of $2,043,590 as compared to $1,653,962 at December 31, 1996, an increase of $389,628 or 24%. This increase was primarily a result of the reclassification of $492,663 of notes receivable from long term assets to current assets on the Company's balance sheets. The notes receivable become due the first quarter of 1998. This increase was partially offset by decreases in other working capital account categories during the quarter ended March 31, 1997. Essentially all of the Company's working capital requirements have been financed by internally generated funds. Cash equivalents at March 31, 1997 were $194,615 compared to $555,204 on December 31, 1996, a decrease of $360,589 or 65%. This decrease in the cash equivalent balance was primarily the result of the Company's net loss for the period ended March 31, 1997, decreases in accounts payable and accrued expense balances, and to increases in inventory totals. PART II. OTHER INFORMATION - -------- ----------------- No material matter occurred during the quarter ended March 31, 1997 that requires disclosure in Part II of the Quarterly Report on Form 10-QSB. Page 9 of 10 ================================================================================ 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 thereunto duly authorized. LASER CORPORATION Date: May 14, 1997 /s/ B. Joyce Wickham ---------------------- ------------------------------------ B. Joyce Wickham President, Chief Executive Officer Treasurer and Director Date: May 14, 1997 /s/ Reo K Larsen ---------------------- ------------------------------------ Reo K Larsen General Accounting Manager Page 10 of 10 ================================================================================ EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM LASER CORPORATION AND SUBSIDIARIES MARCH 31, 1997 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000740726 LASER CORPORATION 3-MOS DEC-31-1997 MAR-31-1997 194,615 0 1,197,664 45,000 1,459,542 2,837,468 2,008,671 1,801,929 3,107,206 793,878 0 0 0 34,105 2,279,223 2,313,328 980,391 996,170 780,002 1,156,038 0 0 0 (159,868) 0 (159,868) 0 0 0 (159,868) (.23) (.23)
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