-----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, Jwl8Ee76k4k093j+7VQYJePwC2MVvF0N7+IbPnAwpOSGdKo5lbrcE+L+V2VbGsWz LtwVEZZmCfYkyXL3TRwKhw== 0000812083-97-000001.txt : 19970222 0000812083-97-000001.hdr.sgml : 19970222 ACCESSION NUMBER: 0000812083-97-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970214 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: LOGITEK INC /NY CENTRAL INDEX KEY: 0000812083 STANDARD INDUSTRIAL CLASSIFICATION: INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825] IRS NUMBER: 112203507 STATE OF INCORPORATION: NY FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-15545 FILM NUMBER: 97535455 BUSINESS ADDRESS: STREET 1: 101 CHRISTOPHER ST CITY: RONKONKOMA STATE: NY ZIP: 11779 BUSINESS PHONE: 5164674200 MAIL ADDRESS: STREET 2: 101 CHRISTOPHER ST CITY: RONKONKOMA STATE: NY ZIP: 11779 10-Q 1 Form 10-QSB CONFORMED Securities and Exchange Commission Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from Commission File Number 0-15545 Logitek, Incorporated (Exact name of registrant as specified in its charter) New York No. 11-2203507 State or other jurisdiction of (I.R.S Employer incorporation or organization Identification No.) 101 Christopher St., Ronkonkoma, N.Y. 11779 (Address of principal executive offices and ZIP Code) Registrant's Telephone Number, including area code 516-467-4200 Securities registered pursuant to Section 12(g) of the Act: Common Stock, $.001, par value None Title of Class Name of each exchange on which registered Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d)ofthe Securities Exchange Act of 1934 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 As of November 1, 1996, their were 3,424,000 shares of common stock outstanding. LOGITEK, INC. Quarterly Report on Form 10-QSB INDEX Page # Part 1:FINANCIAL INFORMATION Item 1.Financial Statements Balance Sheets as of December 31, 1996 and June 30, 1996 3 Statements of Operations and Retained Earnings for the Six and Three Months Ended December 31, 1996 and 1995 4 Statements of Cash Flows for the Six and Three Months Ended December 31, 1996 and 1995 5 Notes to Financial Statements 6 Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations 6 Part II: OTHER INFORMATION Item 4.Submission of Matters to a Vote of Security Holders 9 Item 6. Exhibits and Reports on Form 8-K a) Exhibits 9 b) Reports on Form 8-K 9 Signatures 10 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS LOGITEK, INC BALANCE SHEETS ASSETS December 31,1996 June 30,1996 Current Assets: (unaudited) Cash $109,842 $348,979 Accounts Receivable 525,718 328,801 Inventories (Note 2) 1,113,464 1,018,074 Prepaid expenses and other 15,579 33,941 Due from officer 30,500 30,500 Total Current Assets 1,795,103 1,760,295 Property and equipment, less accumulated depreciation 677,752 720,929 Other Assets: Deferred income taxes, state 7,000 7,000 Goodwill 34,441 34,441 Other 33,517 33,111 Total Assets $2,547,813 $2,555,776 LIABILITIES AND STOCKHOLDERS' EQUITY: Current Liabilities: Current portion of long-term debt (Notes 3 & 4) $149,017 $140,491 Capitalized lease obligation, current 7,150 7,150 Accounts payable 486,109 463,889 Accrued expenses 82,504 166,561 Total current liabilities 724,780 778,091 Capitalized lease obligation, less current portion 37,133 39,402 Long-term debt, less current maturities (Notes 3 & 4) 463,654 541,921 Deferred income taxes 17,466 13,380 Total Liabilities 1,243,033 1,372,794 STOCKHOLDERS' EQUITY Common stock, $.01 par value; authorized 10,000,000 shares; issued 3,600,000 shares 36,000 36,000 Capital in excess of par value 280,355 280,355 Retained earnings 993,925 872,127 Sub-total 1,310,280 1,188,482 Less:Treasury shares, at cost, 176,000 shares (5,500) (5,500) Total stockholders' equity 1,304,780 1,182,982 Total liabilities and stockholders' equity $2,547,813 $2,555,776 See notes to the financial statements. LOGITEK, INC STATEMENTS OF OPERATIONS AND RETAINED EARNINGS For the Three and Six Months Ended December 31, 1996 and 1995 (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 1996 1995 1996 1995 Net sales $1,084,930 $970,077 $1,793,043 $1,671,837 Cost of goods sold 641,657 564,981 1,110,792 994,103 Gross profit 443,273 405,096 682,251 677,734 Operating expenses: Selling 74,285 71,321 139,976 120,331 General and administrative (Note 4) 148,191 187,606 252,896 309,612 Research and development 48,346 32,855 95,686 54,246 Total operating expenses 270,822 291,782 488,558 484,189 Income (loss) from operations 172,451 113,314 193,693 193,545 Other (income) expense: Interest expense, net 21,502 20,927 41,445 42,271 Total other (income) expense 21,502 20,927 41,445 42,271 Income (loss) before provision for income taxes 150,949 92,387 152,248 151,274 Provision for income taxes 30,190 13,767 30,450 22,600 Net Income (Loss) 120,759 78,620 121,798 128,674 Retained earnings , beginning of period 873,166 662,206 872,127 612,152 Retained earnings, end of period $993,925 $740,826 $993,925 $740,826 Per share amounts Net Income (loss) $0.04 $0.02 $0.04 $0.04 Weighted average shares outstanding 3,424,000 3,424,000 3,424,000 3,424,000 See notes to financial statements. LOGITEK INC. STATEMENTS OF CASH FLOWS For the Three and Six Months Ended December 31,1996 and 1995 (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 1996 1995 1996 1995 Net income (loss) $120,759 $78,620 $121,798 $128,674 Adjustments to reconcile net income (loss) to cash provided (used) by operations: Depreciation 24,250 25,725 48,500 51,450 Accounts Receivable (150,481) (99,065) (196,917) (244,653) Inventories (5,390) (93,500) (95,390) (120,000) Prepaid expenses and other 43,932 (23,470) 18,362 (14,164) Other assets 1,628 (187) (406) (364) Accounts Payable (40,095) 96,806 22,220 207,308 Accrued Expenses 46,576 91,603 (84,057) 31,932 Due from officer 0 (27,000) 0 (27,000) Deferred taxes 910 22,600 4,086 22,600 Total adjustments (78,670) (6,488) (283,602) (92,891) Net cash provided(used) by operating activities 42,089 72,132 (161,804) 35,783 Cash flows from investing activities: purchase of equipment (3,275) (49,803) (5,323) (69,809) Net cash provided by investing activities (3,275) (49,803) (5,323) (69,809) Cash flows from financing activities: Repayment of long term debt (41,350) 18,314 (69,741) (9,140) Capitalized lease obligation (1,135) 0 (2,269) 0 Net cash (used) by financing activities (42,485) 18,314 (72,010) (9,140) Net increase (decrease) in cash (3,671 40,643 (239,137) (43,166) Cash, beginning of period 113,513 55,942 348,979 139,751 Cash , end of period 109,842 55,942 109,842 96,585 Supplemental disclosures: Cash paid for : Interest $26,253 $20,927 $50,267 $42,271 See notes to financial statements ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION LOGITEK, INC. Notes to Financial Statements Note 1 - Basis of Presentation The financial statements included herein have been prepared by the Company, withoutaudit, pursuant to the rules and regulations of the Securities and Exchange Commission and reflect all adjustments which are, in the opinion of management, necessary to present fairly the information required therein. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's Form 10-KSB filed with the Securities and Exchange Commission for the year ended June 30, 1996. The results of operations for the three and six months ended December 31, 1996 are not necessarily indicative of the results of operations to be expected for the full year. NOTE 2- Inventories Inventories consisted of the following: December 31, June 30, 1996 1996 Raw materials $524,333 $479,414 Work-in-process 308,592 282,155 Finished goods 280,539 256,505 Total $1,113,464 $1,018,074 For the three and six months ended December 31, 1996 the Company used the gross profit method to calculate ending inventory values. Note 5 - Provision for Income Taxes Income taxes were different from the amounts computed by applying the federal income tax rate to the income before taxes due to the following: Three Months Ended Six Months Ended 12/31/96 12/31/95 12/31/96 12/31/95 Statutory rate 34% 34% 34% 34% State income taxes, net of federal tax benefit 4 2 4 4 General Business Credit (18) (11) (18) (13) Reversal of prior year deferred tax provisions (10) (10) Effective tax rate 20% 15% 20% 15% CONDITION AND RESULTS OF OPERATIONS The following table presents selected financial information for the periods December 31,1996 and 1995, respectively. Three Months Ended Six Months Ended December 31, December 31, 1996 1995 1996 1995 Net sales $1,084,930 $970,077 $1,793,043 $1,671,837 Gross profit $443,273 $405,096 $682,251 $677,734 Gross margin 40.8% 41.7% 38.0% 40.5% Operating expenses $270,822 $291,782 $488,558 $484,189 Net income (loss) $120,759 $78,620 $121,798 $128,674 General Logitek, Inc. (the "Company") reported a profit of $121,798 for the six months ended December 31, 1996 versus a profit of $128,674 for the prior year period. For the quarter ended December 31, 1996 the Company reported a profit of $120,759 compared to a profit of $78,620 for the prior year quarter. Results of Operations Net sales for the first six months of fiscal 1996 were $1,793,043 compared to $1,671,837, or an increase of $121,206. Net sales for the quarter ended December 31, 1996 were $1,084,930 compared to $970,077 or an increase of $114,853. Gross profit decreased to 38.0% in the current six month period compared to 40.5% for the prior year.. Operating expenses for the six months ended December 31, 1996 decreased $20,910. Liquidity As of December 31, 1996 and June 30, 1996 the Company had cash on hand of $109,842 and $348,979, respectively; and, as of December 31, 1996 the Company's current ratio was 2.48 compared to 2.26 as of June 30, 1996. Total borrowings were $656,954 at December 31, 1996, $728,964 at June 30, 1996 and $749,379 at December 31, 1995. This represents decreases of $74,010 and $92,425 for the six and twelve month periods ended December 31, 1996. For the twelve month period ended June 30, 1996 the Company reduced total debt by $29,555. The Company does not anticipate any new borrowings, however, if the need arises to purchase equipment in its continuing effort to modernize its manufacturing capability it is the Company's intention to lease such equipment rather than purchase in order to conserve as much cash as possible. PART II - OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders At the Company's regularly scheduled Annual Meeting held on November 22, 1996 the following votes were recorded: 1.To elect a partial board of two directors, each to serve for a term of one year or until his successor shall have been duly elected and qualified: Votes Cast For Against Abstained Herbert L. Fischer 2,032,376 20,000 5,000 Howard Fein 2,032,376 20,000 5,000 Francis Vuccii 2,032,376 20,000 5,000 . 2.To elect Marcum & Kliegman, Certified Public Accountants as the Company's independent certified accountants: Votes Cast For Against Abstained 2,032,076 20,000 0 Item 6. Exhibits and Reports on Form 8-K (a) Exhibits - There are no exhibits being filed with this report. (b) Reports on Form 8-K - None SIGNATURES Pursuant to the requirements of The Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. LOGITEK, INC. Registrant Date: 2/ 14 / 97 By: /s/ Herbert L. Fischer Herbert L. Fischer President and Chief Executive Officer EX-27 2
5 6-MOS JUN-30-1997 JUL-01-1996 DEC-31-1996 109,842 0 525,718 0 1,113,464 46,079 677,752 0 2,547,813 724,780 0 0 0 36,000 0 2,547,813 1,793,043 1,793,043 1,110,792 1,110,792 488,558 0 41,445 152,248 30,450 121,798 0 0 0 121,798 .04 .04
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