-----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, TFL57M7JQmpfxAA2hububbWLr5aa1uCwUvTdkwRGjSPDqCEP1wZADrAwDhLHRTgr 7ZP9cG6U2XY6U7qd9CFVjg== 0000812083-98-000001.txt : 19980212 0000812083-98-000001.hdr.sgml : 19980212 ACCESSION NUMBER: 0000812083-98-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980211 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: SEC FILE NUMBER: 000-15545 FILM NUMBER: 98531503 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, 1997 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) of the 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, 1997, their were 3,412,059 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, 1997 and June 30, 1997 3 Statements of Operations and Retained Earnings for the Six and Three Months Ended December 31, 1997 and 1996 4 Statements of Cash Flows for the Six and Three Months Ended December 31, 1997 and 1996 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, June 30, 1997 1997 Current Assets: (unaudited) Cash $261,944 $393,797 Accounts Receivable 711,943 422,549 Inventories (Note 2) 1,056,293 1,046,082 Prepaid expenses and other 32,833 34,292 Due from officer 30,500 30,500 Total Current Assets 2,093,513 1,927,220 Property and equipment, less accumulated depreciation 622,361 668,861 Other Assets: Goodwill 34,441 34,441 Other 35,415 36,323 Total Assets $2,785,730 $2,666,845 LIABILITIES AND STOCKHOLDERS' EQUITY: Current Liabilities: Current portion of long-term debt $135,229 $145,182 Capitalized lease obligation, current 12,693 11,783 Accounts payable 357,857 385,882 Accrued expenses 179,303 154,507 Total current liabilities 685,082 697,354 Capitalized lease obligation, less current portion 38,672 50,119 Long-term debt, less current maturities 336,941 398,596 Deferred income taxes 55,380 15,380 Total Liabilities 1,116,075 1,161,449 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 1,360,952 1,196,693 Sub-total 1,677,307 1,513,048 Less: Treasury shares, at cost, 187,941 shares (7,652) (7,652) Total stockholders' equity 1,669,655 1,505,396 Total liabilities and stockholders'equity $2,785,730 $2,666,845 See notes to the financial statements. LOGITEK, INC STATEMENTS OF OPERATIONS AND RETAINED EARNINGS For the Three and Six Months Ended December 31, 1997 and 1996 (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 1997 1996 1997 1996 Net sales $1,209,400 $1,084,930 $2,310,262 $1,793,043 Cost of goods sold 757,353 641,657 1,409,486 1,110,792 Gross profit 452,047 443,273 900,776 682,251 Operating expenses: Selling 72,997 74,285 164,913 139,976 General and administrative 152,763 148,191 351,119 252,896 Research and development 40,221 48,346 77,920 95,686 Total operating expenses 265,981 270,822 593,952 488,558 Income (loss) from operations 186,066 172,451 306,824 193,693 Other (income) expense: Interest expense,net 12,245 21,502 28,565 41,445 Total other (income) expense 12,245 21,502 28,565 41,445 Income (loss) before provision for income taxes 173,821 150,949 278,259 152,248 Provision for income taxes 70,000 30,190 114,000 30,450 Net Income (Loss) 103,821 120,759 164,259 121,798 Retained earnings , beginning of period 1,257,131 873,166 1,196,693 872,127 Retained earnings, end of period $1,360,952 $993,925 $1,360,952 $993,925 Per share amounts Net Income (loss) $0.03 $0.04 $0.05 $0.04 Weighted average shares outstanding 3,412,059 3,424,000 3,412,059 3,424,000 See notes to financial statements. LOGITEK INC. STATEMENTS OF CASH FLOWS For the Three and Six Months Ended December 31,1997 and 1996 (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 1997 1996 1997 1996 Net income (loss) $103,821 $120,759 $164,259 $121,798 Adjustments to reconcile net income (loss) to cash provided (used) by operations: Depreciation 23,250 24,250 46,500 48,500 Accounts Receivable (337,884) (150,481) (289,394) (196,917) Inventories (55,501) (5,390) (10,211) (95,390) Prepaid expenses and other (27,409) 43,932 1,459 18,362 Other assets 1,136 1,628 908 (406) Accounts Payable 41,966 (40,095) (28,025) 22,220 Accrued Expenses 80,194 46,576 24,983 (84,057) Deferred taxes 30,000 910 40,000 4,086 Total adjustments (244,248) (78,670) (213,780) (283,602) Net cash provided(used) by operating activities (140,427) 42,089 (49,521) (161,804) Cash flows from investing activities: Purchase of Equipment 0 (3,275) 0 (5,323) Net Cash provided by investing activities 0 (3,275) 0 (5,323) Cash flows from financing activities: Repayment of long term debt (34,699) (41,350) (71,795) (69,741) Capitalized lease obligation (7,439) (1,135) (10,537) (2,269) Net cash (used) by financing activities (42,138) (42,485) (82,332) (72,010) Net increase (decrease) in cash (182,565) (3,671) (131,853) (239,137) Cash, beginning of period 444,509 113,513 393,797 348,979 Cash , end of period 261,944 109,842 261,944 109,842 Supplemental disclosures: Cash paid for : Interest $18,546 $26,253 $35,510 $50,267 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, without audit,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, 1997. The results of operations for the three and six months ended December 31,1997 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, 1997 1997 Raw materials $515,492 $505,280 Work-in-process 326,954 326,954 Finished goods 213,847 213,848 Total $1,056,293 $1,046,082 For the three months ended December 31, 1997 the Company used the gross profit method to calculate ending inventory values. Note 3 - 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 12/31/97 12/31/96 12/31/97 12/31/96 Statutory rate 34% 34% 34% 34% State income taxes, net of federal tax benefit 4 4 4 4 General Business Credit (6) (18) (6) (18) Deferred Tax Provision 8 8 Effective Tax Rate 40% 20% 40% 20% CONDITION AND RESULTS OF OPERATIONS The following table presents selected financial information for the periods December 31, 1997 and 1996, respectively. Three Months Ended Six Months Ended December 31, December 31, 1997 1996 1997 1996 Net sales $1,209,400 $1,084,930 $2,310,262 $1,793,043 Gross profit $452,047 $443,273 $900,776 $682,251 Gross margin 37.4% 40.8% 38.9% 38.0% Operating expenses $265,981 $270,822 $593,952 $488,558 Net income $103,821 $120,759 $164,259 $121,798 Net income per share $0.03 $0.04 $0.05 $0.04 General Logitek, Inc. (the "Company") reported a profit of $164,259 for the six months ended December 31, 1997 versus a profit of $121,798 for the prior year period. For the quarter ended December 31, 1997 the Company reported a profit of $103,821 compared to a profit of $120,759 for the prior year quarter. The Company's sales backlog is approximately $2,500,000 at December 31,1997. This reflects a$ 500,000 increase which the Company hopes will continue to grow. Results of Operations Net sales for the first six months of fiscal 1997 were $2,310,262 compared to $1,793,043, or an increase of $517,219. Net sales for the quarter ended December 31, 1997 were $1,209,400 compared to $1,084,930 or an increase of $124,470. Gross profit increased to 38.9% in the current six month period compared to 38.0% for the prior year. This increase is attributable to increased sales with only minimal additional manufacturing overhead. Operating expenses for the six months ended December 31, 1996 increased $105,394. This occurred as a result of additional general and administrative overhead incurred as the Company plans for greater sales volume based on increased bookings and increased sales activity. Liquidity As of December 31, 1997 and June 30, 1997 the Company had cash on hand of $261,944 and $393,797, respectively; and, as of December 31, 1997 the Company's current ratio was 2.81 compared to 2.76 as of June 30, 1997. Total borrowings were $516,084 at December 31, 1997, $605,680 at June 30, 1997 and $656,954 at December 31, 1996. 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 24, 1997 the following votes were recorded: 1.To elect a board of three 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 3,167,675 0 7,400 Howard Fein 3,167,675 0 7,400 Francis Vuccii 3,167,675 0 7,400 2.To elect Marcum & Kliegman, Certified Public Accountants as the Company's independent certified accountants: Votes Cast For Against Abstained 3,169,175 0 5,900 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/ 13 / 98 By: /s/ Herbert L. Fischer Herbert L. Fischer President and Chief Executive Officer EX-27 2
5 6-MOS JUN-30-1998 DEC-31-1997 261,944 0 711,943 0 1,056,293 2,093,513 622,361 0 2,785,730 685,082 0 0 0 36000 1633655 2,785,730 2,310,262 2,310,262 1,409,486 593,952 0 0 28,565 278,259 114,000 164,259 0 0 0 164,259 .05 .05
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