-----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, SiWkkW83BBt4gArwOTe7OpysjN2KR59VMBRvLA7lOIGYK4Juj+CO0f/Yp1u6jBkW ZLzYzqUmc2Opj9dRmNXEVA== 0000812083-98-000005.txt : 19981106 0000812083-98-000005.hdr.sgml : 19981106 ACCESSION NUMBER: 0000812083-98-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981105 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: 98738456 BUSINESS ADDRESS: STREET 1: 101 CHRISTOPHER ST CITY: RONKONKOMA STATE: NY ZIP: 11779 BUSINESS PHONE: 5164674200 MAIL ADDRESS: STREET 1: 101 CHRISTOPHER ST 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 September 30, 1998 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 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 September 30,1998, their were 3,382,859 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 September 30, 1998 and June 30, 1998 3 Statements of Operations and Retained Earnings for the Three Months Ended September 30, 1998 and 1997 4 Statements of Cash Flows for the Three Months Ended September 30, 1998 and 1997 5 Notes to Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 Part II:OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 9 Signatures 10 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS LOGITEK, INC BALANCE SHEETS ASSETS September30,1998 June 30,1998 Current Assets: (Unaudited) Cash $424,833 $429,713 Accounts receivable, 604,899 676,704 Inventories 1,058,604 1,061,103 Prepaid expenses and other 11,857 15,332 Total Current Assets 2,100,193 2,182,852 Property and equipment,less accumulated depreciation 658,234 680,134 Other Assets: Deferred Income Taxes,State 7,000 7,000 Goodwill 34,441 34,441 Other 47,649 48,695 Total Assets 2,847,517 2,953,122 LIABILITIES AND STOCKHOLDERS' EQUITY: Current Liabilities: Current portion of long-term debt $81,220 $90,525 Capitalized lease obligation,current 22,802 22,123 Accounts payable 301,991 324,736 Accrued expenses 85,610 194,398 Total current liabilities 491,623 631,782 Capitalized Lease Obligation, Less Current Portion 70,099 75,350 Long-term debt, less current maturities 288,018 300,360 Deferred income taxes 52,000 52,000 Total Liabilities 901,740 1,059,492 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 1,649,630 1,597,483 Sub-total 1,965,985 1,913,838 Less: Treasury shares,at cost,187,941 shares (20,208) (20,208) Total stockholders' equity 1,945,777 1,893,630 Total liabilities and stockholders'equit $2,847,517 $2,953,122 See notes to the financial statements. LOGITEK, INC STATEMENTS OF OPERATIONS AND RETAINED EARNINGS For the Three Months Ended September 30, 1998 and 1997 (Unaudited) Three Months Ended September 30, 1998 1997 Net sales $1,089,905 $1,100,862 Cost of goods sold 708,642 652,133 Gross profit 381,263 448,729 Operating expenses: Selling 78,108 91,916 General and administrative 161,921 198,356 Research and development 55,305 37,699 Total operating expenses 295,334 327,971 Income (loss) from operations 85,929 120,758 Interest expense,net 13,782 16,320 Income (loss) before provision for income taxes 72,147 104,438 Provision for income taxes 20,000 44,000 Net income (loss) 52,147 60,438 Retained earnings,beginning of period 1,597,483 1,196,693 Retained earnings,end of period $1,649,630 $1,257,131 Per share amounts Net income (loss) $.02 $.02 Weighted average shares outstanding 3,382,859 3,412,059 See Notes to financial statements LOGITEK INC. STATEMENTS OF CASH FLOWS For the Three Months ended September 30, 1998 and 1997 (Unaudited) Three Months Ended September 30, 1998 1997 Cash Flows from Operating Activities Net income (loss) $52,147 $60,438 Adjustments to reconcile net income (loss) to cash provided by operating activiities: Depreciation 21,900 23,250 Accounts receivable 71,805 48,490 Inventories 2,499 45,290 Prepaid expenses and other 3,475 28,862 Other assets 1,046 (228) Accounts payable (22,745) (69,991) Accrued expenses (108,788) (55,392) Deferred Taxes 0 10,000 Total adjustments (30,808) 30,281 Net cash provided by (used in) operating activities 21,339 90,719 Cash Flows from Financing Activities: Repayment of Long Term Debt (26,219) (40,007) Purchase of Property, Plant and Equipment 0 0 Net cash (used in) financing activities (26,219) (40,007) Net increase (decrease) in cash (4,880) 50,712 Cash, beginning of period 429,713 393,797 Cash, end of period $424,833 $444,509 Supplemental disclosures: Cash paid for: Interest 13,782 16,320 See notes to financial statements 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, 1998. The results of operations for the three months ended September 30, 1998 are not necessarily indicative of the results of operations to be expected for the full year. NOTE 2 - Inventories Inventories consisted of the following: September 30, June 30, 1998 1998 Raw materials $545,828 $547,117 Work-in-process 346,941 347,760 Finished goods 165,835 166,226 Total $1,058,604 $1,061,103 For the three months ended September 30, 1998 the Company used the gross profit method to calculate ending inventory values. Note 3 - Provision for Income Taxes The provision for income taxes differs from the amounts computed by applying the federal income tax rate to the income before income taxes due to the following: September 30, % 1998 1997 Statutory rate 34.0 34.0 State income taxes, net of federal tax benefit 2.0 2.0 Utilization of tax credit (10.3) (6.0) Other 2.0 12.0 Effective tax rate 27.7 42.0 ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following table presents selected financial information for the periods September 30, 1998 and 1997. Three Months Ended September 30, 1998 1997 Net sales $1,089,905 $1,100,862 Gross profit $381,263 $448,729 Gross margin 35.0% 40.8% Net income (loss) $52,147 $60,438 Net income (loss), per share $0.02 $0.02 General Logitek, Inc. (the "Company") reported net income of $52,147 for the three months ended September 30, 1998 versus $60,438 for the prior year period. The Company's sales backlog is aproximately $1,750,000 at September 30, 1998 versus $2,500,000 at September 30, 1997. Results of Operations Net sales for the three months ended September 30,1998 were $1,089,905 compared to $1,100,862 or an decrease of $10,957, or 1%, from the prior year period. This decrease is the result of certain jobs being delayed awaiting engineering release. These releases are expected to occur early in the second quarter. Gross profit decreased to 35.0% in the quarter ended September 30, 1998 compared to 40.8% for the prior year quarter. This decrease in gross profit is a result of the Company's committment to additional labor in the engineering and quality control areas. The Company belieives this investment will pay off in the near term. Operating expenses for the three months ended September 30, 1998 decreased $32,637 or 10% This occurred as a result of the Company continuing to maintain tight cost controls over its general and administrative expenses as well as its general overhead. Liquidity As of September 30 and June 30, 1998 the Company had cash on hand of $424,833 and $429,713, respectively; and, as of September 30, 1998 the Company's current ratio was 4.27 compared to 3.46 at June 30, 1998. Total borrowings were $462,139 at September 30, 1998 and $488,358 at June 30, 1998 for a decrease of $26,219 while accounts payable and accrued expenses decreased $138,533. The Company does not anticipate any new borrowings, however, if the need arises to purchase equipment in its continuing effort to increase its manufacturing capability it is the Company's intention to lease such equipment on more favorable terms than an outright purchase. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits - None (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: 11/ 5/ 98 By: /s/ Herbert L. Fischer Herbert L. Fischer President and Chief Executive Officer Date: 11/ 5/ 98 By: /s/ Herbert L. Fischer Herbert L.Fischer Chief Financial Officer EX-27 2
5 3-MOS JUN-30-1999 SEP-30-1998 424,833 0 604,899 0 1,058,604 100,947 658,234 0 2,847,517 491,623 0 0 0 36,000 1,909,777 2,847,517 1,089,905 1,089,905 708,642 295,334 0 0 13,782 72,147 20,000 52,147 0 0 0 52,147 .02 .02
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