-----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, HAcurwN8FKmY5i6oxEOLzpggmj0LmYPw0oLQLCUd2N6FSGf3ODWt2vulyWxIUhSN fHV+LQgtibGnIrGQepTTEQ== 0000812083-99-000001.txt : 19990218 0000812083-99-000001.hdr.sgml : 19990218 ACCESSION NUMBER: 0000812083-99-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990217 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: 99544334 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 December 31, 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 Securitie s 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, 1998, their were 3,375,731 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, 1998 and June 30, 1998 3 Statements of Operations and Retained Earnings for the Six and Three Months Ended December 31, 1998 and 1997 4 Statements of Cash Flows for the Six and Three Months Ended December 31, 1998 and 1997 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 Signatures 10 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS LOGITEK, INC BALANCE SHEETS ASSETS December 31,1998 June 30, 1998 Current Assets: (unaudited) Cash $491,851 $429,713 Accounts Receivable 625,835 676,704 Inventories (Note 2) 1,121,104 1,061,103 Prepaid expenses and other 33,025 15,332 Total Current Assets 2,271,815 2,182,852 Property and equipment, less accumulated depreciation 636,334 680,134 Other Assets: Deferred Income Taxes, State 7,000 7,000 Goodwill 34,441 34,441 Other 47,550 48,695 Total Assets $2,997,140 $2,953,122 LIABILITIES AND STOCKHOLDERS' EQUITY: Current Liabilities: Current portion of long-term debt $58,452 $90,525 Capitalized lease obligation, current 23,879 22,123 Accounts payable 367,284 324,736 Accrued expenses 139,603 194,398 Total current liabilities 589,218 631,782 Capitalized lease obligation, less current portion 59,878 75,350 Long-term debt, less current maturities 278,776 300,360 Deferred income taxes 52,000 52,000 Total Liabilities 979,872 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 1,721,121 1,597,483 Sub-total 2,037,476 1,913,838 Less: Treasury shares,at cost,187,941 shares (20,208) (20,208) Total stockholders' equity 2,017,268 1,893,630 Total liabilities and stockholders' equity $2,997,140 $2,953,122 See notes to the financial statements. LOGITEK, INC STATEMENTS OF OPERATIONS AND RETAINED EARNINGS For the Three and Six Months Ended December 31, 1998 and 1997 (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 1998 1997 1998 1997 Net sales $1,220,949 $1,209,400 $2,310,854 $2,310,262 Cost of goods sold 719,298 757,353 1,427,940 1,409,486 Gross profit 501,651 452,047 882,914 900,776 Operating expenses: Selling 114,536 72,997 192,644 164,913 General and administrative 187,494 152,763 349,415 351,119 Research and development 95,805 40,221 151,110 77,920 Total operating expenses 397,835 265,981 693,169 593,952 Income (loss) from operations 103,816 186,066 189,745 306,824 Other (income) expense: Interest expense, net 17,325 12,245 31,107 28,565 Total other (income) expense 17,325 12,245 31,107 28,565 Income (loss) before provision for income taxes 86,491 173,821 158,638 278,259 Provision for income taxes 15,000 70,000 35,000 114,000 Net Income (Loss) 71,491 103,821 123,638 164,259 Retained earnings , beginning of period 1,649,630 1,257,131 1,597,483 1,196,693 Retained earnings, end of period $1,721,121 $1,360,952 $1,721,121 $1,360,952 Per share amounts Net Income (loss) $0.02 $0.03 $0.04 $0.05 Weighted average shares outstanding 3,375,731 3,412,059 3,375,731 3,412,059 See notes to financial statements. LOGITEK INC. STATEMENTS OF CASH FLOWS For the Three and Six Months Ended December 31,1998 and 1997 (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 1998 1997 1998 1997 Net income (loss) $71,491 $103,821 $123,638 $164,259 Adjustments to reconcile net income (loss) to cash provided (used) by operations: Depreciation 21,900 23,250 43,800 46,500 Accounts Receivable (20,936) (337,884) 50,869 (289,394) Inventories (62,500) (55,501) (60,001) (10,211) Prepaid expenses and other (21,168) (27,409) (17,693) 1,459 Other assets 99 1,136 1,145 908 Accounts Payable 65,293 41,966 42,548 (28,025) Accrued Expenses 53,993 80,194 (54,795) 24,983 Deferred taxes 0 30,000 0 40,000 Total adjustments 36,681 (244,248) 5,873 (213,780) Net cash provided(used) by operating activities 108,172 (140,427) 129,511 (49,521) Cash flows from investing activities: Purchase of equipment 0 0 0 0 Net cash provided by investing activities 0 0 0 0 Cash flows from financing activities: Repayment of long term debt (32,010) (34,699) (53,657) (71,795) Capitalized lease obligation (9,144) (7,439) (13,716) (10,537) Net cash (used) by financing activities (41,154) (42,138) (67,373) (82,332) Net increase (decrease) in cash 67,018 (182,565) 62,138 (131,853) Cash, beginning of period 424,833 444,509 429,713 393,797 Cash,end of period 491,851 261,944 491,851 261,944 Supplemental disclosures: Cash paid for : Interest $16,503 $18,546 $30,285 $35,510 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, 1998. The results of operations for the three and six months ended December 31, 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: December 31,1998 June 30,1998 Raw materials $579,118 $547,117 Work-in-process 355,760 347,760 Finished goods 186,226 166,226 Total $1,121,104 $1,061,103 For the six months ended December 31, 1998 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 12/31/98 12/31/97 12/31/98 12/31/97 Statutory rate 34% 34% 34% 34% State income taxes, net of federal tax benefit 2 4 2 4 General Business Credit (19) (6) (14) (6) Deferred Tax Provision 0 8 0 8 Effective Tax Rate 17% 40% 22% 40% CONDITION AND RESULTS OF OPERATIONS The following table presents selected financial information for the periods December 31,1998 and 1997, respectively. Three Months Ended Six Months Ended December 31, December 31, 1998 1997 1998 1997 Net sales $1,220,949 $1,209,400 $2,310,854 $2,310,262 Gross profit $501,651 $452,047 $882,914 $900,776 Gross margin 41.1% 37.4% 38.2% 38.9% Operating expenses $397,835 $265,981 $693,169 $593,952 Net income $71,491 $103,821 $123,638 $164,259 Net income per share $0.02 $0.03 $0.04 $0.05 General Logitek, Inc. (the "Company") reported a profit of $123,638 for the six months ended December 31, 1998 versus a profit of $164,259 for the prior year period.For the quarter ended December 31, 1998 the Company reported a profit of $71,491 compared to a profit of $103,821 for the prior year quarter. The Company's sales backlog is approximately $2,000,000 at December 31,1998.This represents a decrease from prior periods. The Company is awaiting orders from customers that have been delayed until completion of special designs for several significant programs. The Company believes that ongoing repeat business for these prograams will materialize in the near term. Other programs in which the special designs have already been completed are also experiencing delay in order placement.It is expected that these situations will be cleared during the third quarter at which time backlog should return to expected levels.In the meantime, the Comapny expects lower sales levels during the third and possibly fourth quarters. Results of Operations Net sales for the first six months of fiscal 1998 were $2,310,854 compared to $2,310,262, or an increase of $592. Net sales for the quarter ended December 31, 1998 were $1,220,949 compared to $1,209,400 or an increase of $11,549. Gross profit decreased to 38.2% in the current six month period compared to 38.9% for the prior year. This decrease is considered minor and the Company believes its margins will remain strong in the future. Operating expenses for the six months ended December 31, 1998 increased $99,217.This occurred as a result of additional selling and research and development costs. The selling expense is primarily advertising costs. The research costs are being incurred as the Company is undertaking product modifications , for major customers specifications. These are the orders discussed above which the Company believes will be coming in the near term. While it is generally management's policy not to undertake special design efforts, the significance of these programs warrants these efforts. Liquidity As of December 31, 1998 and June 30, 1998 the Company had cash on hand of $491,851 and $429,713 respectively; and, as of December 31, 1998 the Company's current ratio was 3.86 compared to 3.46 as of June 30, 1998. Total borrowings were $420,985 at December 31, 1998, $488,358 at June 30, 1998 and $516,084 at December 31, 1997. 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 he 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 30,1998 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 3,112,945 500 0 Howard Fein 3,112,945 500 0 Francis Vuccii 3,112,945 500 0 2. To elect Marcum & Kliegman, Certified Public Accountants as the Company's independent certified accountants: Votes Cast For Against Abstained 3,112,945 500 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: 2/16/99 By: /s/ Herbert L. Fischer Herbert L. Fischer President and Chief Executive Officer EX-27 2
5 6-MOS JUN-30-1999 DEC-31-1998 491,851 0 625,835 0 1,121,104 2,271,815 636,334 0 2,997,140 589,218 0 0 0 36,000 1,981,268 2,997,140 2,310,854 2,310,854 1,427,940 693,169 0 0 31,107 158,638 35,000 123,638 0 0 0 123,638 .04 .04
-----END PRIVACY-ENHANCED MESSAGE-----