-----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, AiRiaMOj2dXNZyJl4zJK1+FVIuNBBYS5Ps8Td9DnDreOErPB/wE6utdbpeVECNqI 6VRnkM7hemrM+Enur+kZhg== 0000950134-03-008408.txt : 20030520 0000950134-03-008408.hdr.sgml : 20030520 20030520105639 ACCESSION NUMBER: 0000950134-03-008408 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030519 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030520 FILER: COMPANY DATA: COMPANY CONFORMED NAME: XETA TECHNOLOGIES INC CENTRAL INDEX KEY: 0000742550 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 731130045 STATE OF INCORPORATION: OK FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-16231 FILM NUMBER: 03711533 BUSINESS ADDRESS: STREET 1: 1814 WEST TACOMA CITY: BROKEN ARROW STATE: OK ZIP: 74012 BUSINESS PHONE: 9186648200 MAIL ADDRESS: STREET 1: 1814 WEST TACOMA CITY: BROKEN ARROW STATE: OK ZIP: 74012 FORMER COMPANY: FORMER CONFORMED NAME: XETA CORP DATE OF NAME CHANGE: 19920703 8-K 1 d06186e8vk.txt FORM 8-K U. S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934 Date of Report (Date of earliest event reported): May 19, 2003 (May 19, 2003) XETA Technologies, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Oklahoma 0-16231 73-1130045 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 1814 West Tacoma, Broken Arrow, Oklahoma 74012 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: 918-664-8200 ----------------------------- - -------------------------------------------------------------------------------- (Former name or address, if changed since last report.) Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. (c) Exhibits. 99.1 Press release dated May 19, 2003. Item 9. Regulation FD Disclosure. (Required by Item 12. Results of Operations and Financial Condition). The following information is furnished pursuant to Item 12, "Results of Operations and Financial Condition." On May 19, 2003, the Company issued a press release reporting the Company's financial results for the 2nd quarter ended April 30, 2003. A copy of the Company's press release is attached hereto as Exhibit 99.1. 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. XETA Technologies, Inc. (Registrant) Dated: May 19, 2003 By: /s/ Robert B. Wagner ----------------------------------- Robert B. Wagner CFO and Vice President of Finance 2 EXHIBIT INDEX
SEC No. Description Page ------- ----------- ---- (1) Underwriting Agreement - None. (2) Plan of acquisition, reorganization, arrangement, liquidation or succession - N/A. (4) Instruments defining rights of security holders, including indentures - previously filed as Exhibits 3.1, 3.2 and 3.3 to the registrant's Registration Statement on Form S-1, Registration No. 33-7841. (16) Letter on change in certifying accountant - N/A. (17) Letter on director resignation - N/A. (20) Other documents or statements to security holders - None. (23) Consents of experts and counsel - N/A (24) Power of attorney - None. (99) Additional exhibits
99.1 Press Release dated May 19, 2003 3 EX-99.1 3 d06186exv99w1.txt PRESS RELEASE [XETA TECHNOLOGIES LOGO] NEWS RELEASE Date: May 19, 2003 FOR IMMEDIATE RELEASE Contact: Cheryl Moll XETA Technologies (918) 664-8200 XETA TECHNOLOGIES REPORTS STRONG 2Q AND YTD GROWTH BROKEN ARROW, OK. - XETA Technologies (NASDAQ: XETA) today announced earnings of $0.313 million, or $0.03 per share, diluted, on revenues of $11.8 million for the second fiscal quarter ending April 30, 2003. The Company also reported earnings of $0.805 million, or $0.08 per share, diluted, on revenues of $27.2 million for the six months year-to-date. These earnings represent growth of more than 47 times those of last year's second quarter and nearly triple the 2002 six months year-to-date results. "We have completed another solid quarter in a very difficult business environment," said Jack Ingram, President and CEO. "Continued careful management of our resources permitted earnings at the upper end of our previous projections. The positive cash flows experienced permitted a 25% reduction in total debt shortly after the end of the quarter." "We continue to make good progress in executing our long range business plan and remain focused on broadening our customer base, managing costs to maintain profitability, and consistently delivering an excellent level of customer service," stated Larry Patterson, Sr. Vice President of Sales and Service. "During the quarter, we announced a new midmarket initiative, which continues to grow and perform as expected. We also continued to expand our technical capabilities and maintain our leadership position in converged technologies, as evidenced by our recent installation of one of the nation's first and largest Internet Protocol (IP) Office telephone networks. During the quarter, we experienced increased quotation activity as businesses began the process of migrating their multi-vendor voice and data networks onto secure and reliable Internet Protocol (IP) telephony networks and further explore the strategic benefits of emerging applications." Patterson continued, "It is also important to note that the gap between capital spending and available technology is widening at a very impressive rate. While consumers continue to spend cautiously, new internet-based communications applications are rapidly emerging. "We achieved our second quarter results despite a persistence of the lackluster capital spending environment in which we continue to find ourselves," said Ingram. "We still see no reliable signals of any significant improvement in the malaise that continues to envelope the business community, and as a result, we will continue to operate in a cautious manner. We expect earnings for the third quarter to fall in the 1 to 5 cent range, and assuming the current economic conditions continue, we expect earnings for the year to be in the 15 to 20 cent range." XETA Technologies will host a conference call to discuss fiscal 2003 second quarter operating results at 10 a.m. CDST on Tuesday, May 20. The media, analysts and investors are invited to participate by dialing 800-230-1092 A replay of the call will be available from 1:30 p.m. CDST that day through 11:59 p.m. CDST on May 27 by dialing 800-475-6701, access code 685689.
Quarter Ending April 30 Six Months Ending April 30 ------------------------- ---------------------------- 2003 2002 2003 2002 --------- --------- --------- ---------- Sales Systems 6,010 6,172 14,735 13,517 Services 5,605 6,323 11,722 12,390 Other 151 64 740 415 Total 11,766 12,599 27,197 26,322 Gross Profit Margins Systems 34% 29% 30% 30% Services 29% 24% 29% 23% Other 100% 100% 54% 30% Corp COGS -3% -3% -3% -3% Overall 29% 23% 27% 23% Operating Expense 2,800 2,761 5,782 5,421 Income from Operations 636 154 1,573 753 Interest and Other Expense -121 -143 -251 -286 Net Income After Tax 313 7 805 283 Basic Earnings Per Share $0.03 $0.00 $0.08 $0.03 Diluted Earnings Per Share $0.03 $0.00 $0.08 $0.03 Wt. Avg. Common Shares Outstanding 9,723,709 9,237,952 9,713,143 9,237,952 Wt. Avg. Common Equivalent Shares 9,936,926 9,917,943 9,940,279 9,883,122
(The information is presented in thousands except percentages and per-share data.)
April 30, 2003 October 31, 2002 Assets Current Cash 4,936 1,967 Receivables (net) 7,489 9,479 Inventories 6,564 7,801 Other 1,681 2,969 Subtotal 20,670 22,216 Non-Current Receivables (net) 447 519 PPE (net) 10,434 10,458 Goodwill 25,755 25,782 Capitalized Software 148 238 Other 149 171 Subtotal 36,933 37,168 Total Assets 57,603 59,384 Liabilities Current Notes Payable 3,288 3,288 Revolving Line of Credit 2,000 0 Accounts Payable 2,309 6,119 Unearned Revenue 2,383 2,079 Accrued Liabilities 2,346 2,150 Subtotal 12,326 13,636 Non-Current Long Term Debt 9,921 11,565 Other 1,976 1,662 Subtotal 11,897 13,227 Total Liabilities 24,223 26,863 Equity 33,380 32,521
(The information is presented in thousands) # # # ABOUT XETA TECHNOLOGIES XETA Technologies is a leading communications integrator with sales and service locations nationwide. XETA has grown from being the lodging industry's leading provider of call accounting solutions to a major national integrator of enterprise communications equipment. Through internal growth and corporate acquisitions, XETA today is positioned to serve and lead the growing market of converged communications network solutions for voice, data and video applications. XETA is also building upon its success as one of the largest integrators of Avaya voice and data systems, serving national business clients in sales, consulting, engineering, project management, installation and service support. As proven technologies come to the market place, XETA is at the forefront of providing communication solutions and consulting services that support such platforms as Microsoft Exchange 2000 and the growing demand for Unified Messaging and Voice-over Internet Protocol (VoIP) applications. XETA Technologies has recently been recognized by Fortune Small Business magazine's Top 100 Fastest-Growing Companies, Fortune magazine's "100 Fastest-Growing Companies", Forbes magazine's "Best 200 Small Companies in America" and BusinessWeek's "Top 100 Hot Growth Companies". For more information about XETA Technologies, visit www.xeta.com. This news release contains forward-looking statements, which are made subject to the provisions of the Private Securities Litigation Reform Act of 1995. These statements include statements concerning XETA's targeted growth levels for sales and after-tax earnings for the fiscal year ending October 31, 2003 and the second quarter of fiscal 2003. These and other forward-looking statements (generally identified by such words as "expects," "plans," "believes," "anticipates" and similar words or expressions) reflect management's current expectations, assumptions, and beliefs based upon information currently available to management. Investors are cautioned that all forward-looking statements are subject to certain risks and uncertainties which are difficult to predict and that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, the state of the U.S. economy and the telecommunications market specifically, the impact of a war with Iraq and further terrorist attacks upon the U.S. stock market and economy, the Company's ability to manage its bank debt and meet its covenant requirements, the long-term success of the Company's growth strategies, market acceptance of and demand for the Company's product and service offerings, the success and growth of Avaya, the Company's ability to expand successfully into various geographic areas and to major Avaya customers who previously purchased through Avaya's direct sales channel, competition, and the availability and retention of sales professionals and trained technicians. Additional factors which could affect actual results are described in the section entitled "Outlook and Risk Factors" contained in the Company's Form 10-K for its fiscal year ended October 31, 2002. -----END PRIVACY-ENHANCED MESSAGE-----