-----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, GR8V16IfNIiyAiLhDnJYN9eX2YoOxWKFRcD18lbcdOFeHZz4kaopXN2Grvjw98CM JTSTXDDCY41E5QShDuR8WA== 0000891092-97-000309.txt : 19970814 0000891092-97-000309.hdr.sgml : 19970814 ACCESSION NUMBER: 0000891092-97-000309 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970813 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: PORTA SYSTEMS CORP CENTRAL INDEX KEY: 0000079564 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 112203988 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08191 FILM NUMBER: 97657920 BUSINESS ADDRESS: STREET 1: 575 UNDERHILL BLVD CITY: SYOSSET STATE: NY ZIP: 11791 BUSINESS PHONE: 5163649300 MAIL ADDRESS: STREET 1: 575 UNDERHILL BLVD CITY: SYOSSET STATE: NY ZIP: 11791 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1997 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from______________to______________ Commission file number 1-8191 PORTA SYSTEMS CORP. (Exact name of registrant as specified in its charter) Delaware 11-2203988 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 575 Underhill Boulevard, Syosset, New York (Address of principal executive offices) 11791 (Zip Code) 516-364-9300 (Company's telephone number, including area code) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 of 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 ______ Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date: Common Stock (par value $0.01) 2,191,896 shares as of August 7, 1997 Page 1 of 13 pages PART I.- FINANCIAL INFORMATION Item 1- Financial Statements PORTA SYSTEMS CORP. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) June 30, December 31, 1997 1996 -------- -------- Assets (Unaudited) Current assets: Cash and cash equivalents $ 4,277 $ 2,584 Accounts receivable, net 15,852 16,034 Inventories 8,561 7,424 Prepaid expenses 663 782 Other receivable -- 531 -------- -------- Total current assets 29,353 27,355 -------- -------- Property, plant and equipment, net 4,935 5,422 Deferred computer software, net 1,122 1,676 Goodwill, net 11,330 11,555 Other assets 3,658 4,650 -------- -------- Total assets $ 50,398 $ 50,658 ======== ======== Liabilities and Stockholders' Deficit Current liabilities: Convertible subordinated debentures $ 2,079 $ 2,096 Zero coupon senior subordinated convertible notes 25,916 -- Current portion of senior debt 1,922 750 Accounts payable 6,309 6,056 Accrued expenses 9,047 9,004 Accrued interest payable 713 583 Accrued commissions 2,319 2,708 Income taxes payable 780 780 Accrued deferred compensation 1,154 1,232 Short-term loans 70 31 -------- -------- Total current liabilities 50,309 23,240 -------- -------- Senior debt 14,840 16,835 Zero coupon senior subordinated convertible notes -- 25,885 Notes payable net of current maturities 3,084 3,084 Income taxes payable 719 802 Other long-term liabilities 485 653 Minority interest 849 863 -------- -------- Total long-term liabilities 19,977 48,122 -------- -------- Stockholders' deficit: Preferred stock, no par value; authorized 1,000,000 shares, none issued -- -- Common stock, par value $.01; authorized 40,000,000 shares, issued 2,225,230 and 2,223,861 shares at June 30, 1997 and December 31,1996, respectively 22 22 Additional paid-in capital 36,724 36,561 Foreign currency translation adjustment (4,216) (4,014) Accumulated deficit (50,045) (50,900) -------- -------- (17,515) (18,331) Treasury stock, at cost (2,066) (2,066) Receivable for employee stock purchases (307) (307) -------- -------- Total stockholders' deficit (19,688) (20,704) -------- -------- Total liabilities and stockholders' deficit $ 50,398 $ 50,658 ======== ======== See accompanying notes to consolidated financial statements. Page 2 of 13 pages PORTA SYSTEMS CORP. AND SUBSIDIARIES Unaudited Consolidated Statements of Operations (In thousands, except per share data) Six Months Ended June 30, June 30, 1997 1996 -------- -------- Sales $ 28,874 $ 26,863 Cost of sales 18,095 17,744 -------- -------- Gross profit 10,779 9,119 Selling, general and administrative expenses 5,892 6,187 Research and development expenses 2,488 1,804 -------- -------- Total expenses 8,380 7,991 -------- -------- Operating income 2,399 1,128 Interest expense (1,840) (3,226) Interest income 92 42 Gain on sale of assets -- 2,264 Other income 202 18 -------- -------- Income before income taxes, minority interest and extraordinary item 853 226 Income tax expense (23) (6) Minority interest 15 233 -------- -------- Income before extraordinary item 845 453 Extraordinary item 11 3,390 -------- -------- Net income $ 856 $ 3,843 ======== ======== Per share data: Income before extraordinary item $ 0.14 $ 0.10 Extraordinary item 0.00 0.80 -------- -------- Net income $ 0.14 $ 0.90 ======== ======== Weighted average shares outstanding 6,251 4,249 ======== ======== See accompanying notes to unaudited consolidated financial statements. Page 3 of 13 pages PORTA SYSTEMS CORP. AND SUBSIDIARIES Unaudited Consolidated Statements of Operations (In thousands, except per share data) Three Months Ended June 30, June 30, 1997 1996 -------- -------- Sales $ 16,394 $ 13,642 Cost of sales 9,629 8,861 -------- -------- Gross profit 6,765 4,781 Selling, general and administrative expenses 3,305 2,775 Research and development expenses 1,337 933 -------- -------- Total expenses 4,642 3,708 -------- -------- Operating income 2,123 1,073 Interest expense (924) (1,048) Interest income 50 33 Gain on sale of assets -- 2,264 Other income 67 169 -------- -------- Income before income taxes, minority interest and extraordinary item 1,316 2,491 Income tax benefit (expense) (9) 7 Minority interest 60 123 -------- -------- Income before extraordinary item 1,247 2,621 Extraordinary item 3 357 -------- -------- Net income $ 1,250 $ 2,978 ======== ======== Per share data: Income before extraordinary item $ 0.20 $ 0.54 Extraordinary item 0.00 0.07 -------- -------- Net income $ 0.20 $ 0.61 ======== ======== Weighted average shares outstanding 6,288 4,854 ======== ======== See accompanying notes to unaudited consolidated financial statements. Page 4 of 13 pages PORTA SYSTEMS CORP. AND SUBSIDIARIES Unauditied Consolidated Statements of Cash Flows (In thousands) Six Months Ended June 30, June 30, 1997 1996 -------- -------- Cash flows from operating activities: Net income $ 856 $ 3,843 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Gain on sale of assets -- (2,264) Extraordinary gain (11) (3,390) Non-cash financing expenses 184 1,799 Non-cash operating expenses 13 -- Depreciation and amortization 1,582 2,237 Amortization of discount on convertible subordinated debentures 20 63 Minority interest 14 (233) Changes in assets and liabilities: Accounts receivable 182 (666) Inventories (1,137) 802 Prepaid expenses 119 (69) Other receivables 31 -- Deferred computer software (13) (38) Other assets 865 (359) Accounts payable, accrued expenses and other liabilities (285) (2,851) ------- ------- Net cash provided by (used in) operating activities 2,420 (1,126) ------- ------- Cash flows from investing activities: Proceeds from disposal of assets held for sale, net 500 6,793 Proceeds from sale of assets -- 3,456 Capital expenditures (216) (292) ------- ------- Net cash provided by investing activities 284 9,957 ------- ------- Cash flows from financing activities: Proceeds from long-term debt 299 1,330 Repayments of long-term debt (1,122) (9,959) (Repayments of) proceeds from notes payable and short term loans 39 (118) ------- ------- Net cash used in financing activities (784) (8,747) ------- ------- Effect of exchange rates on cash (227) (144) ------- ------- Increase (decrease) in cash and cash equivalents 1,693 (60) Cash and equivalents - beginning of the year 2,584 1,109 ------- ------- Cash and equivalents - end of the period $ 4,277 $ 1,049 ======= ======= Supplemental cash flow disclosures: Cash paid for interest expense $ 1,399 $ 1,391 ======= ======= Cash paid for income taxes $ 45 $ 29 ======= ======= See accompanying notes to unaudited consolidated financial statements. Page 5 of 13 pages NOTES TO UNAUDITIED CONSOLIDATED FINANCIAL STATEMENTS Note 1: Management's Responsibility For Interim Financial Statements Including All Adjustments Necessary For Fair Presentation Management acknowledges its responsibility for the preparation of the accompanying interim consolidated financial statements which reflect all adjustments, consisting of normal recurring adjustments, considered necessary in its opinion for a fair statement of its consolidated financial position and the results of its operations for the interim periods presented. These consolidated financial statements should be read in conjunction with the summary of significant accounting policies and notes to consolidated financial statements included in the Company's annual report to stockholders for the year ended December 31, 1996. Results for the first six months of 1997 are not necessarily indicative of results for the year. Note 2: Inventories Inventories are valued at lower of cost or market. Inventory costs at June 30, 1997 have been computed using a standard cost system. The composition of inventories at the end of the respective periods is as follows: June 30, December 31, 1997 1996 ------------ ------------ (in thousands) Parts and components $6,170 $4,557 Work-in-process 1,027 515 Finished goods 1,364 2,352 ------ ------ $8,561 $7,424 ====== ====== Note 3: 6% Convertible Subordinated Debentures and Zero Coupon Senior Subordinated Convertible Notes As of June 30, 1997, the Company had outstanding $2,079,000 of its 6% Convertible Subordinated Debentures due July 1, 2002 ("the Debentures"), net of original issue discount amortized to principal over the term of the debt using the effective interest rate method, of $186,000. The face amount of the outstanding Debentures was $2,265,000 at June 30, 1997. Interest on the Debentures is payable on July 1 of each year. The interest accrued as of June 30, 1997 amounted to $531,000. As of June 30, 1997 the Company is in default under the provisions of the Debentures. As of June 30, 1997, the Company had exchanged approximately $33,810,000 principal amount of the Debentures, net of unamortized discount and accrued interest expense for 655,900 shares of the Company's common stock and $25,940,000 of Zero Coupon Senior Subordinated Convertible Notes ("the Notes"). As of June 30, 1997, $25,916,000 of Notes are outstanding after the conversion of $24,000 of principal Notes to common stock. Page 6 of 13 pages Note 3: 6% Convertible Subordinated Debentures and Zero Coupon Senior Subordinated Convertible Notes (continued) The exchange of the Debentures for the Notes and common stock was accounted for as a troubled debt restructuring in accordance with Statement of Financial Accounting Standards No. 15. Since the future principal and interest payments under the Notes is less than the carrying value of the Debentures, the Notes were recorded for the amount of the future cash payments, and not discounted. In addition, no future interest expense will be recorded on the exchanged Notes. As a result of the exchange, the Company recognized an extraordinary gain of $3,000 and $357,000 for the three months ended June 30, 1997 and 1996, and $11,000 and $3,390,000 for the six months ended June 30, 1997 and 1996, receptively. Note 4: Senior Debt On June 30, 1997, the Company's senior debt under its credit facility consisted of $16,762,000. The credit facility is secured by substantially all of the Company's assets. All obligations except undrawn letters of credit, letter of credit guarantees and the deferred fee notes bear interest at 12% per annum. The Company incurs an annual fee of 2% on the average balance of undrawn letters of credit and letter of credit guarantees outstanding. In addition, the Company is obligated to pay a monthly facility fee of $50,000. The loan agreement requires a minimum quarterly amortized payment of $250,000 commencing for the quarter ending June 30, 1997, increasing to $325,000 for the quarter ending March 31, 1998 and for the quarters thereafter during the term of the agreement, as well as an additional principal payment if cash flow exceeds certain amounts. Based on these required principal payments, $1,922,000 has been classified as a current liability at June 30, 1997. Financial debt covenants include an interest coverage ratio measured quarterly, limitations on the incurrence of indebtedness, limitations on capital expenditures, and prohibitions on declarations of any cash or stock dividends or the repurchase of the Company's stock. As of June 30,1997, the Company is in compliance with the above covenants. Page 7 of 13 pages Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The Company's consolidated statements of operations for the periods indicated below, shown as a percentage of sales, are as follows: Six Months Three Months Ended June 30, Ended June 30, -------------- -------------- 1997 1996 1997 1996 ---- ---- ---- ---- Sales 100% 100% 100% 100% Cost of Sales 63% 66% 59% 65% Gross Profit 37% 34% 41% 35% Selling, general and administrative expenses 20% 23% 20% 20% Research and development expenses 9% 7% 8% 7% Operating income 8% 4% 13% 8% Interest expense - net (6%) (12%) (5%) (8%) Other income (expense) 1% 8% 0% 18% Minority interest 0% 1% 0% 1% Extraordinary item 0% 13% 0% 3% Net income 3% 14% 8% 22% The Company's sales by product line for the periods ended June 30, 1997 and 1996 are as follows: Six Months Ended June 30, ------------------------ 1997 1996 ---- ---- (Dollars in thousands) Line connection/protection equipment ("Line connection")* $13,347 46% $12,705 47% Operations Support Systems ("OSS") 11,302 39% 10,633 40% Signal Processing 3,942 14% 3,377 12% Other 283 1% 148 1% ------------- -------------- $28,874 100% $26,863 100% ============= ============== Three Months Ended June 30, ------------------------- 1997 1996 ---- ---- (Dollars in thousands) Line connection $ 6,552 40% $ 6,908 51% OSS 7,310 45% 4,733 35% Signal Processing 2,339 14% 1,940 14% Other 193 1% 61 0% ------------- -------------- $16,394 100% $13,642 100% ============= ============== *Includes sales of fiber optics products of $0 and $452,000 for the six months ended June 30, 1997 and 1996, respectively. There were no sales of fiber optic products for either the three months ended June 30, 1997 or 1996. Page 8 of 13 pages Results of Operations The Company's sales for the six months ended June 30, 1997 compared to the six months ended June 30, 1996 increased $2,011,000 (7%) from $26,863,000 in 1996 to $28,874,000 in 1997 and sales for the quarter ended June 30, 1997 of $16,394,000 increased by $2,752,000 (20%) compared to $13,642,000 for the quarter ended June 30, 1996. The increased sales for both the six and three months is due to higher revenue from the OSS and Signal Processing divisions. OSS revenue for the six and three months ended June 30, 1997 was $11,302,000 and $7,310,000, respectively, compared to the six and three months ended June 30, 1996 of $10,633,000 and $4,733,000, respectively, an increase of $669,000 (6%) and $2,577,000 (54%) for the six and three month periods, respectively. The increased sales relates primarily to higher revenues generated from the installation of the OSS systems and our Korean joint venture. The line connection sales for the six months ended June 30 increased from $12,705,000 to $13,347,000 or $642,000 (5%) from 1996 to 1997. Sales for the three months ended June 30, decreased by $356,000 (5%) from $6,908,000 in 1996 to $6,552,000 in 1997. These fluctuations are not considered significant. Signal Processing sales for the six and three months ended June 30, 1997 were $3,942,000 and $2,339,000, respectively, compared to the six and three months ended June 30, 1996 of $3,377,000 and $1,940,000, an increase of $565,000 (17%) and $399,000 (21%) from 1996 to 1997, respectively. The increased revenue was generated from the earlier than anticipated completion of certain military orders. Cost of sales for the six months and the quarter ended June 30, 1997, as a percentage of sales compared to the same periods of 1996, decreased from 66% to 63% and from 65% to 59%, respectively. The improvement in gross margin is attributed to the Company's continuing effort to increase manufacturing productivity and the absorption of certain fixed expenses associated with the OSS contracts. Selling, general and administration expenses decreased by $295,000 (5%) from $6,187,000 to $5,892,000 for the six months ended June 30, 1997 compared to 1996. For the six months, the change is not material. For the quarter ended June 30, 1997 and 1996 selling, general and administration expenses increased by $530,000 (19%). The increase from the 1996 to the 1997 quarter results primarily from the Company's efforts to increase its sales and marketing effectiveness in order to secure future business, and to a lesser extent, higher commissions associated with the increased revenues for the quarter. Research and development expenses increased by $684,000 (38%) and by $404,000 (43%) for the six and three months ended June 30, 1997 from the comparable periods in 1996, respectively. The increased expenses results from the Company's efforts to develop new products, primarily related to the OSS business. As a result of the above, for the six months ended June 30, 1997 compared to 1996, the Company had operating income of $2,399,000 in 1997 versus $1,128,000 in 1996. The Company had an operating income of $2,123,000 for the quarter ended June 30, 1997 as compared to $1,073,000 for the quarter ended June 30, 1996. The Company's operating improvement for the six months and the quarter ended June 30, 1996, when compared to the comparable periods ended June 30, 1996, were the results of the improved gross margins and its continuing efforts to maintain costs and expenses at a level appropriate with the current level of sales. Page 9 of 13 pages Results of Operations (continued) Interest expense decreased for the six months ended June 30 by $1,386,000 (43%) from $3,226,000 in 1997 to $1,840,000 in 1997. For the quarter ended June 30, interest expense decreased by $124,000 (12%) from $1,048,000 in 1996 to $924,000 in 1997. This change is attributable primarily to a decrease in interest expense related to the exchange of the Company's Debentures for the Notes and common stock which occurred primarily in the first and second quarters of 1996, and repayment of principal to the Company's senior lender. In addition, for the six month period ended June 30, 1996, the Company incurred additional interest expense as a result of the recognition in that period of certain deferred borrowing costs related to its loans from its senior lender. The Company had income before extraordinary item of $845,000 and $453,000 for the six months ended June 30, 1997 and 1996, respectively, and income before extraordinary item of $1,247,000 and $2,621,000 for the three months ended June 30, 1997 and 1996, respectively. During the quarter ended June 30, 1996, the Company had a gain of $2,264,000 on a sale of assets. If not for this gain, there would have been a loss before extraordinary item incurred for the six months ended June 30, 1996 of $1,811,000 and income before extraordinary item for the three months ended June 30, 1996 of $357,000. The improvement in income before extraordinary item reflects the increased gross margin coupled with the reduction of interest expense. During the six months ended 1997 and 1996, respectively, the Company recorded an $11,000 and $3,390,000 extraordinary gain from the early extingushment of Debt as a result of the exchange of the Debentures for the Notes and common stock. During the three months ended June 30, 1997 and 1996, respectively, a $3,000 and $357,000 extraordinary gain was recorded as a result of such conversions. As the result of the foregoing the Company generated net income of $856,000, $0.14 per share for the six months ended June 30, 1997 compared with net income of $3,843,000, $0.90 per share, for the six months ended June 30, 1996 and net income for the quarter ended June 30, 1997 of $1,250,000, $0.20 per share, compared with net income for the quarter ended June 30, 1996 of $2,978,000, $0.61 per share. The calculation of the weighted average shares, for the period and quarter ended June 30, 1997, assumes the conversion of the Notes which are considered to be a common stock equivalent. Page 10 of 13 pages Liquidity and Capital Resources The Company had income from continuing operations for the six and three months ended June 30, 1997. These results notwithstanding, the Company will be required to refinance or restructure certain existing notes payable which become due on January 2, 1998 as discussed in the following paragraph. This factor continues to raise substantial doubt about the Company's ability to continue as a going concern. Furthermore, the unaudited consolidated financial statements do not include any adjustments that might result from the inability of the Company to refinance or restructure such notes. At June 30, 1997 the Company had cash and cash equivalents of $4,277,000 compared with $2,584,000 at December 31, 1996. The Company's working capital deficit at June 30, 1997 was $20,956,000, compared to working capital of $4,115,000 at December 31, 1996. At June 30, 1997, $25,916,000 of the Notes, which are due on January 2, 1998, are classified as current liabilities. At June 30, 1997 the Company does not have sufficient resources to pay the Notes when they mature and it is likely that it cannot generate such cash from its operations or from its existing credit facilities. Although the Company is seeking to refinance or restructure the Notes, no assurance can be given that it will be successful in these efforts. If the Company is unable to refinance or restructure the Notes or the holders of the Notes do not convert such Notes to common stock, the Company's liquidity may be severely impaired and the Company's business may be materially and adversely affected. At June 30, 1997, the Company's senior debt to its senior secured lender, Foothill Capital Corporation ("Foothill"), consisted of a credit facility in the amount of $16,762,000 of which approximately $15,915,000 and $847,000 relates to the term loan and the revolving line of credit, respectively. The agreement provides for (i) the repayment of loan principal of $750,000 in 1997, (ii) the repayment of loan principal of $325,000 each quarter commencing March 31, 1998 and thereafter during the term of the agreement, (iii) the Company to pay additional principal payments if certain "adjusted cash flow amounts", as defined, exceed certain amounts, and (iv) the Company to pay a monthly facility fee of $50,000. For the quarter ended June 30, 1997 the additional principal payment based upon the "adjusted cash flow" amounts to $522,000. As of June 30, 1997, the Company's availability under its $2,000,000 revolving line of credit is approximately $1,153,000. As of June 30, 1997, the Company had remaining outstanding $2,079,000 of the Debentures, net of original issue discounts amortized to principal over the term of the debt using the effective interest rate method, of $186,000. The face amount of the outstanding Debentures was $2,265,000. Interest on the Debentures is payable on July 1 of each year. The interest accrued as of June 30, 1997 amounted to $531,000. As of June 30, 1997 the Company is in default under the provisions of the Debentures. Accordingly, such debt has been classified as a current liability at June 30, 1997. Page 11 of 13 pages PART II- OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders. The Company's 1997 Annual Meeting of Stockholders was held on July 31, 1997. At the annual meeting, the stockholders (i) reelected its present board, consisting of Messrs. William V. Carney, Seymour Joffe, Michael A. Tancredi, Howard D. Brous, Warren H. Esanu, Herbert H. Feldman, Stanley Kreitman, and Robert Schreiber (ii) approved an amendment to the 1996 Stock Option Plan which, among other things, increases the number of shares of Common Stock subject to such plan from 100,000 shares to 450,000 shares (iii) approved an amendment to its certificate of incorporation to change the authorized capital stock by decreasing the number of authorized shares of common stock from 40,000,000 shares to 20,000,000 shares and (iv) ratified the appointment of BDO Seidman, LLP as independent auditors for the year ended December 31, 1997. Each director received at least 1,777,194 votes for his election. Set forth below is the vote on the other matters approved at the meeting. Votes Broker Matter Votes for Against Abstentions Non-Votes ------ --------- ------- ----------- --------- Amendment to 1996 Stock Option Plan 780,964 317,116 27,237 904,600 Amendment to Certificate of Incorporation 1,856,123 161,836 11,958 Appointment of Auditors 1,988,631 34,931 6,355 Page 12 of 13 pages 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. PORTA SYSTEMS CORP. Dated August 12, 1997 By /s/William V. Carney -------------------- William V. Carney Chairman of the Board Dated August 12, 1997 By /s/Edward B. Kornfeld --------------------- Edward B. Kornfeld Senior Vice President and Chief Financial Officer Page 13 of 13 pages EX-27 2 FDS --
5 1,000 6-MOS DEC-31-1997 JAN-01-1997 JUN-30-1997 4,227 0 15,852 0 8,561 29,353 4,935 0 50,398 50,309 0 0 0 22 (19,666) 50,398 28,874 28,874 18,095 8,380 0 0 1,840 853 23 845 0 11 0 856 0.14 0.14
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