-----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, UqnA5rBT/pseHT+ZxVhgpbYI7Hr3bOT0C4jqVtwUOfvKDpc/ViQZ5UtHIuNSP30+ wsbMAY20LMTB/sKStKSiAw== 0000087050-99-000015.txt : 19990914 0000087050-99-000015.hdr.sgml : 19990914 ACCESSION NUMBER: 0000087050-99-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990731 FILED AS OF DATE: 19990913 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SBE INC CENTRAL INDEX KEY: 0000087050 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER COMMUNICATIONS EQUIPMENT [3576] IRS NUMBER: 941517641 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-08419 FILM NUMBER: 99709995 BUSINESS ADDRESS: STREET 1: 4550 NORRIS CANYON ROAD CITY: SAN RAMON STATE: CA ZIP: 94583 BUSINESS PHONE: 5103552000 MAIL ADDRESS: STREET 1: 4550 NORRIS CANYON RD CITY: SAN RAMON STATE: CA ZIP: 94583 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one) [X] Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 FOR THE QUARTERLY PERIOD ENDED JULY 31, 1999 [ ] Transition report pursuant to section 13 or 15(d) of the Securities and Exchange Act of 1934 For the transition period from _______ to ________ Commission file number 0-8419 ------ SBE, INC. _____________________________________________________ (Exact name of registrant as specified in its charter) Delaware 94-1517641 _______________________________ ___________________ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 4550 Norris Canyon Road, San Ramon, California 94583 ____________________________________________________ (Address of principal executive offices and zip code) (925) 355-2000 __________________________________________________ (Registrant's telephone number, including area code) Indicate by check mark whether Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- ---- The number of shares of Registrant's Common Stock outstanding as of August 31, 1999 was 2,835,905. 1 SBE, INC. INDEX TO JULY 31, 1999 FORM 10-Q PART I FINANCIAL INFORMATION ITEM 1 Financial Statements Condensed Consolidated Balance Sheets as of July 31, 1999 and October 31, 1998..........................................3 Condensed Consolidated Statements of Operations for the three and nine months ended July 31, 1999 and 1998..........................4 Condensed Consolidated Statements of Cash Flows for the nine months ended July 31, 1999 and 1998....................................5 Notes to Condensed Consolidated Financial Statements...........................6 ITEM 2 Management's Discussion and Analysis of Financial Condition and Results of Operations.................................9 ITEM 3 Quantitative and Qualitative Disclosures about Market Risk........................................................14 PART II OTHER INFORMATION ITEM 6 Exhibits and Reports on Form 8-K...................................15 SIGNATURES....................................................................16 EXHIBIT.......................................................................17 2 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS
SBE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS JULY 31, 1999 AND OCTOBER 31, 1998 (In thousands) July 31, October 31, 1999 1998 ----------- ----------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 2,484 $ 3,381 Restricted cash 2,449 -- Trade accounts receivable, net 2,369 3,837 Inventories 1,744 1,754 Deferred income taxes 240 240 Other 255 417 ----------- ----------- Total current assets 9,541 9,629 Property, plant and equipment, net 1,259 1,330 Capitalized software costs, net 317 185 Other 39 39 ----------- ----------- Total assets $ 11,156 $ 11,183 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable $ 948 $ 1,375 Accrued payroll and employee benefits 220 321 Other accrued expenses 248 323 ----------- ----------- Total current liabilities 1,416 2,019 Deferred tax liabilities 240 240 Deferred rent 361 391 ----------- ----------- Total liabilities 2,017 2,650 ----------- ----------- Stockholders' equity: Common stock 10,890 10,016 Note receivable from stockholder (744) -- Treasury stock (146) -- Accumulated deficit (861) (1,483) ----------- ----------- Total stockholders' equity 9,139 8,533 ----------- ----------- Total liabilities and stockholders' equity $ 11,156 $ 11,183 =========== =========== See notes to condensed consolidated financial statements.
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SBE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED JULY 31, 1999 AND 1998 (In thousands, except per share amounts) (Unaudited) Three months ended Nine months ended July 31, July 31, 1999 1998 1999 1998 ------- ------- -------- -------- Net sales $3,533 $4,041 $13,811 $12,897 Cost of sales 1,466 1,603 4,994 4,969 ------- ------- -------- -------- Gross profit 2,067 2,438 8,817 7,928 Product research and development 1,122 677 3,345 2,763 Sales and marketing 903 884 2,861 3,431 General and administrative 565 735 2,134 2,382 ------- ------- -------- -------- Total operating expenses 2,590 2,296 8,340 8,576 ------- ------- -------- -------- Operating (loss) income (523) 142 477 (648) Interest and other income, net 77 12 176 92 ------- ------- -------- -------- (Loss) income before income taxes (446) 154 653 (556) Provision for income taxes 10 -- (31) -- ------- ------- -------- -------- Net (loss) income $ (436) $ 154 $ 622 $ (556) ======= ======= ======== ======== Basic (loss) earnings per share $(0.15) $ 0.06 $ 0.22 $ (0.21) ======= ======= ======== ======== Diluted (loss) earnings per share $(0.15) $ 0.06 $ 0.21 $ (0.21) ======= ======= ======== ======== Basic - Shares used in per share computations 2,875 2,674 2,855 2,662 ======= ======= ======== ======== Diluted - Shares used in per share computations 2,875 2,705 2,983 2,662 ======= ======= ======== ======== See notes to condensed consolidated financial statements.
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SBE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED JULY 31, 1999 AND 1998 (In thousands) (Unaudited) Nine months ended July 31, ------------------ 1999 1998 -------- -------- Cash flows from operating activities: Net income (loss) $ 622 $ (556) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 551 735 Changes in operating assets and liabilities: Decrease (increase) in trade accounts receivable 1,468 (1,082) Decrease (increase) in inventories 10 (1,128) Decrease (increase) in other assets 162 (400) (Decrease) increase in trade accounts payable (427) 41 Decrease in other liabilities (206) (990) -------- -------- Net cash provided by (used in) operating activities 2,180 (3,380) -------- -------- Cash flows from investing activities: Purchases of property and equipment (400) (921) Capitalized software costs (212) (146) Increase in restricted cash (2,449) -- -------- -------- Net cash used in investing activities (3,061) (1,067) -------- -------- Cash flows from financing activities: Purchase of treasury stock (146) -- Proceeds from stock plans 130 183 -------- -------- Net cash provided by financing activities (16) 183 -------- -------- Net decrease in cash and cash equivalents (897) (4,264) Cash and cash equivalents at beginning of period 3,381 5,569 -------- -------- Cash and cash equivalents at end of period $ 2,484 $ 1,305 ======== ======== See notes to condensed consolidated financial statements.
5 SBE, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. INTERIM PERIOD REPORTING: These condensed consolidated financial statements are unaudited and include all adjustments, consisting of normal recurring adjustments, that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations and cash flows for the interim periods. The results of operations for the quarter and nine-month period ended July 31, 1999 are not necessarily indicative of expected results for the full 1999 fiscal year. Certain information and footnote disclosures normally contained in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the financial statements and notes contained in the Company's Annual Report on Form 10-K for the year ended October 31, 1998. 2. INVENTORIES: Inventories comprise the following (in thousands): July 31, October 31, 1999 1998 ------------ ------------ Finished goods $ 1,067 $ 1,657 Parts and materials 677 97 ------------ ------------ $ 1,744 $ 1,754 ============ ============ 3. NET EARNINGS (LOSS) PER SHARE: The Company computes earnings (loss) per share in accordance with Statement of Financial Accounting Standards No. 128, "Earnings Per Share." Basic earnings per common share for the nine months ended July 31, 1999 were computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per common share for the nine months ended July 31, 1999 and for the three months ended July 31, 1998 were computed by dividing net income by the weighted average number of shares of common stock and common stock equivalents outstanding. Common stock equivalents relate to outstanding options to purchase 819,225 shares of the Company's common stock as of July 31, 1999. Common stock equivalents are excluded from the diluted loss per common share (LPS) calculations for the three months ended July 31, 1999 and for the nine months ended July 31, 1998, as they have the effect of decreasing LPS. 6 4. NOTE RECEIVABLE FROM STOCKHOLDER: On November 6, 1998 the Company made a loan to an officer and stockholder in the amount of $622,800 under a two-year recourse promissory note bearing an interest rate of 4.47 percent and collateralized by 145,313 shares of Common Stock of the Company. The loan was used to pay for the exercise of 139,400 shares of Company stock options and related taxes. On April 16, 1999 the loan was increased to $743,800. 5. LETTER OF CREDIT; RESTRICTED CASH: During the quarter ended April 30, 1999 the Company established a letter of credit with a bank in connection with an arrangement with a vendor under which the Company will purchase parts valued at $2.7 million for use in products to be sold to Compaq Computer. The letter of credit was secured by $2.7 million of restricted cash and expires on September 30, 1999 with automatic six-month extensions. Due to subsequent purchases in connection with the arrangement, restricted cash has been reduced to $2.5 million as of July 31, 1999. 6. REPURCHASE OF COMMON STOCK: In May 1999, the Board of Directors authorized the Company to repurchase up to 100,000 shares of the Company's issued and outstanding common stock. During the third fiscal quarter of 1999, the Company repurchased 27,500 shares of its common stock in the open market for an aggregate purchase price of approximately $146,000. The Company is still authorized to repurchase an additional 72,000 shares under this plan. Repurchases may be made from time to time, subject to prevailing conditions, in the open market or in privately negotiated transactions. 7. CONCENTRATION OF RISK: In the first nine months of fiscal 1999, most of the Company's sales were attributable to sales of board-level products and were derived from a limited number of OEM customers. During this period, sales to Compaq Computer accounted for 74 percent of the Company's net sales. Also, Compaq Computer accounted for 65 percent of the Company's accounts receivable as of July 31, 1999. The Company expects that sales from Compaq will continue to constitute a substantial portion of the Company's net sales in the remainder of fiscal 1999. A significant reduction in orders from any of the Company's OEM customers, particularly Compaq and Lockheed Martin, could have a material adverse effect on the Company's business, operating results and financial condition. In December 1996, the Company sold all of its manufacturing operations to XeTel Corporation ("XeTel"), a contract manufacturing company headquartered in Austin, Texas. At the same time the Company and XeTel entered into an exclusive manufacturing service agreement under which XeTel is to manufacture all of the Company's products until at least December 2000. The Company is dependent on XeTel's ability to manufacture the Company's products according to 7 specifications and in required volumes on a timely basis. The failure of XeTel to perform its obligations under the manufacturing service agreement could have a material adverse effect on the Company's business, operating results and financial condition. 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion contains forward-looking statements that involve risks and uncertainties. The Company's actual results could differ materially from those discussed here. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this section and those discussed in the Company's Annual Report on Form 10-K for the year ended October 31, 1998, particularly in the section entitled "Item 1--Business--Risk Factors." The Company develops and delivers Wide Area Network (WAN) products, focusing on three different communications markets: open system platforms; telecommunications, aerospace, and industrial controls; and financial services. The Company's business is characterized by a concentration of sales to a small number of customers and consequently the timing of significant orders from major customers and of their product cycles causes fluctuations in the Company's operating results. This concentration, which is expected to continue, also makes it difficult to project future sales and operating results. The Company's sales to any single OEM customer are also subject to significant variability from quarter to quarter. Such fluctuations may have a material adverse effect on the Company's operating results. A significant reduction in orders from any of the Company's OEM customers, particularly Compaq and Lockheed Martin, could have a material adverse effect on the Company's business, operating results and financial condition. The Company is pursuing a strategy to expand its sales to telecommunications equipment manufacturers (TEMs). This market is rapidly expanding and is demanding new solutions to deal with escalating bandwidth requirements and the deregulation of telephone services. The Company is investing a majority of its research and development spending to expand its product offering to this market. The Company is also attempting to form strategic partnerships with large server providers that offer equipment to TEMs. The Company believes that its technology, integration expertise and current position within the telecommunications market will allow for the expansion of sales in this market area. In the quarter ended July 31, 1999, the Company expanded its relationship as part of Motorola Computer Group's (MCG) Embedded Connections Partner Program. This program is a development effort designed to create industry leading telecommunications and data communications product solutions through strategic partnering. Also during the quarter, ILX, a subsidiary of Thompson Corporation, selected SBE WanXL controllers to be integrated into its financial information system servers. The Company is also expanding its current product line through partnerships with software providers. The Company recently released a line of products called PacketEyes, which combines acquired and licensed software with existing hardware platforms to extend the Company's products into the policy management market. The policy management market includes application solutions such as bandwidth management, network traffic reporting, security and quality of service management. This market area is new and developing and without a clear set of 9 solutions. The Company believes that its products will offer a compelling economic solution to a number of application problems in this market area. RESULTS OF OPERATIONS The following table sets forth, as a percentage of net sales, certain consolidated statements of operations data for the three and nine months ended July 31, 1999 and 1998. These operating results are not necessarily indicative of the Company's operating results for any future period. THREE MONTHS ENDED NINE MONTHS ENDED JULY 31, JULY 31, ------------ ------------ 1999 1998 1999 1998 ----- ----- ----- ----- Net sales 100% 100% 100% 100% Cost of sales 41 40 36 39 ----- ----- ----- ----- Gross profit 59 60 64 61 ----- ----- ----- ----- Product research and development 32 17 24 21 Sales and marketing 26 22 21 27 General and administrative 16 18 15 18 ----- ----- ----- ----- Total operating expenses 74 57 60 66 ----- ----- ----- ----- Operating (loss) income (15) 4 4 (5) Interest and other income, net 2 -- 1 1 ----- ----- ----- ----- (Loss) income before income taxes (13) 4 5 (4) Provision for income taxes -- -- -- -- ----- ----- ----- ----- Net (loss) income (13)% 4% 5% (4)% ===== ===== ===== ===== NET SALES Net sales for the third quarter of fiscal 1999 were $3.5 million, a 13 percent decrease from the third quarter of fiscal 1998. This decrease was primarily attributable to decreased sales of VME communication controller, netXpand(R) and WanXL products as compared to the third quarter of fiscal 1998. Sales of VME communication controller products decreased 5 percent and sales of netXpand products decreased 100 percent from the third quarter of fiscal 1998. The Company has discontinued commercial sales of netXpand products. Sales of WanXL products decreased 54 percent from the third quarter of fiscal 1998. Sales for the nine months ended July 31, 1999 were $13.8 million, up from $12.9 million for the same period of 1998, principally due to increased sales of communication controller products partially offset by decreased sales of netXpand and WanXL products. Sales of all product lines to individual customers in excess of 10 percent of net sales of the Company consisted of sales to Compaq Computer, which represented 74 percent of net sales in the first nine months of fiscal 1999. This compares to sales to Compaq Computer (formerly Tandem Computers) and Motorola, Inc. of 32 and 21 percent, respectively, of net sales in the first nine months of fiscal 1998. The Company expects to continue to experience fluctuation in communication controller product sales as large customers' needs change. International sales constituted 4 percent and 7 percent of net sales in the 10 first nine months of fiscal 1999 and the first nine months of fiscal 1998, respectively. The decrease in international sales is primarily attributable to decreased sales of netXpand products. GROSS PROFIT Gross profit as a percentage of sales was 59 percent and 60 percent in the third quarter of fiscal 1999 and the third quarter of fiscal 1998, respectively. Gross profit as a percentage of sales in the first nine months of fiscal 1999 was 64 percent, up from 61 percent for the same period of 1998. The increases from fiscal 1998 to fiscal 1999 were primarily attributable to lower material costs and improved operational efficiencies. PRODUCT RESEARCH AND DEVELOPMENT Product research and development expenses were $1.1 million in the third quarter of fiscal 1999, an increase of 66 percent from $677,000 in the third quarter of fiscal 1998. Product research and development costs for the first nine months of fiscal 1999 increased 21 percent from the same period of fiscal 1998. Recruiting and hiring engineers continues to be one of the Company's greatest challenges. Competition for qualified technical personnel, particularly in the San Francisco Bay Area, is intense. While a number of engineers have been hired during the past year, the Company is actively recruiting to fill several open positions and has engaged outside engineering consultants to assist in meeting certain project deadlines. This resulted in an increase in research and development expenses for the third quarter of 1999. The increases in research and development spending from fiscal 1998 to fiscal 1999 were a result of higher spending on new telecommunications product development. The Company expects that product research and development expenses will remain at current levels. SALES AND MARKETING Sales and marketing expenses for the third quarter of fiscal 1999 were $903,000, up from $884,000 in the third quarter of fiscal 1998. Sales and marketing expenses decreased 17 percent in the first nine months of fiscal 1999 from the same period of fiscal 1998. The decrease for the nine months was primarily due to lower marketing program costs for advertising and tradeshows. The Company expects sales and marketing expenses, as new products are announced, to increase from current expenditure levels. GENERAL AND ADMINISTRATIVE General and administrative expenses for the third quarter of fiscal 1999 were $565,000, a decrease of 23 percent from $735,000 in the third quarter of fiscal 1998. General and administrative expenses decreased 10 percent in the first nine months of fiscal 1999 from the same period of fiscal 1998. The decreased expenses are a result of lower outside costs and continued expense control efforts. In future periods, the Company expects that general and administrative expenses will remain consistent with current dollar levels. INTEREST AND OTHER INCOME (EXPENSE), NET Interest income increased in the third quarter and first nine months of fiscal 11 1999 from the same periods of fiscal 1998 due to higher cash balances. INCOME TAXES The Company recorded a benefit from income taxes of $10,000 in the third quarter and a provision of $31,000 in the first nine months of fiscal 1999. The Company did not record any benefit for taxes in the third quarter or the first nine months of fiscal 1998 as the benefit derived from its net operating losses and unused tax credits was fully valued against. In the event of future taxable income, the Company's effective income tax rate in future periods could be lower than the statutory rate as operating loss and tax credit carryforwards are recognized. NET INCOME (LOSS) As a result of the factors discussed above, the Company recorded a net loss of $436,000 in the third quarter of fiscal 1999 and net income of $154,000 in the third quarter of fiscal 1998. Net income for the first nine months of fiscal 1999 was $622,000, as compared to a net loss of $556,000 for the same period of 1998. LIQUIDITY AND CAPITAL RESOURCES At July 31, 1999 the Company had cash and cash equivalents of $2.5 million, as compared to $3.4 million at October 31, 1998. In the first nine months of fiscal 1999, $2.2 million of cash was provided by operating activities, primarily as a result of net income of $622,000, a $1.5 million decrease in accounts receivable, $551,000 in depreciation and amortization, a $10,000 decrease in inventories, and a $162,000 decrease in other assets. These cash inflows were partially offset by a $2.5 million increase in restricted cash, a $427,000 decrease in accounts payable and a $206,000 decrease in other liabilities. Working capital at July 31, 1999 was $8.1 million, as compared to $7.6 million at October 31, 1998. In the first nine months of fiscal 1999 the Company purchased $400,000 of fixed assets, consisting primarily of computer and engineering equipment. Software costs of $212,000 were also capitalized during the first nine months of 1999. The Company expects capital expenditures during fiscal 1999 to be less than fiscal 1998 levels. The Company purchased $146,000 of treasury stock in the first nine months of 1999. The Company received $130,000 in the first nine months of fiscal 1999 from employee stock option exercises and employee stock purchase plan purchases. Based on the current operating plan, the Company anticipates that its current cash balances and anticipated cash flow from operations will be sufficient to meet its working capital needs over at least the next twelve months. 12 YEAR 2000 COMPLIANCE Many older computer software programs refer to years in terms of their final two digits only. Such programs may interpret the year 2000 to mean the year 1900 instead. If not corrected, those programs could cause date-related transaction failures. The Company's current products, to the extent they have the capability to process date-related information, were designed to be Year 2000 compliant; in other words, the products were designed to manage and manipulate data involving the transition of dates from 1999 to 2000 without functional or data abnormality and without inaccurate results relating to such dates. There can be no assurance that systems operated by third parties that interface with or contain the Company's products will timely achieve Year 2000 compliance. Any failure of these third parties' systems to timely achieve Year 2000 compliance could have a material adverse effect on the Company's business, financial condition and results of operations. The Company believes it has identified substantially all of the major information systems used in connection with its internal operations that must be modified, upgraded or replaced to minimize the possibility of a material disruption of its business. The Company is in the process of modifying, upgrading and replacing systems that have been identified as potentially being adversely affected and expects to complete this process before the end of its 1999 fiscal year. The Company does not expect the cost related to these efforts to be material to its business, financial condition or operating results. The Company depends on third party suppliers for the manufacturing of its products. The Company has been gathering information from, and is communicating with, these suppliers and, to the extent possible, has resolved issues involving the Year 2000 problem. However, the Company has limited or no control over the actions of its suppliers. Therefore, the Company cannot guarantee that its manufacturing services suppliers will resolve any or all Year 2000 problems with their systems before the occurrence of a material disruption to their businesses. Any failure of these suppliers to resolve Year 2000 problems with their systems in a timely manner could have a material adverse effect on the Company's business, financial condition or operating results. The Company is currently developing contingency plans to be implemented as part of its efforts to identify and correct Year 2000 problems affecting its internal systems. The Company expects to complete its contingency plans by the end of its 1999 fiscal year. Depending on the systems affected, these plans could include (a) accelerated replacement of affected equipment or software; (b) increased work hours; and (c) other similar approaches. If the Company is required to implement any of these contingency plans, such plans could have a material adverse effect on its business, financial condition or operating results. 13 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The Company's cash and cash equivalents are subject to interest rate risk. The Company invests primarily on a short-term basis. The Company's financial instrument holdings at July 31, 1999 were analyzed to determine their sensitivity to interest rate changes. The fair values of these instruments were determined by net present values. In our sensitivity analysis, the same change in interest rate was used for all maturities and all other factors were held constant. If interest rates increased by 10%, the expected effect on net income related to the Company's financial instruments would be immaterial. 14 PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K List of Exhibits: 11.1 Statements of Computation of Net Income per Share 27.1 Financial Data Schedule Reports on Form 8-K: No report on Form 8-K was filed by the Company during the quarter ended July 31, 1999. 15 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, on September 10, 1999. SBE, INC. ---------- Registrant /s/ Timothy J. Repp ------------------- Timothy J. Repp Chief Financial Officer, Vice President of Finance and Secretary (Principal Financial and Accounting Officer) 16 EX-11.1 2 EXHIBIT 11.1
SBE, INC. STATEMENTS OF COMPUTATION OF NET (LOSS) INCOME PER SHARE FOR THE THREE AND NINE MONTHS ENDED JULY 31, 1999 AND 1998 (In thousands, except per share amounts) (Unaudited) Three months ended Nine months ended July 31, July 31, ----------------- ---------------- 1999 1998 1999 1998 ------- ------- ------- ------- BASIC Weighted average number of common shares outstanding 2,875 2,674 2,855 2,662 ------- ------- ------- ------- Number of shares for computation of net (loss) income per share 2,875 2,674 2,855 2,662 ======= ======= ======= ======= Net (loss) income $ (436) $ 154 $ 622 $ (556) ======= ======= ====== ======= Net (loss) income per share $(0.15) $ 0.06 $ 0.22 $(0.21) ======= ======= ======= ======= DILUTED Weighted average number of common shares outstanding 2,875 2,674 2,855 2,662 Shares issuable pursuant to options granted under stock option plans, less assumed repurchase at the ending fair market value for the period (a) 31 128 (a) ------- ------- ------ ------- Number of shares for computation of net (loss) income per share 2,875 2,705 2,983 2,662 ======= ======= ======= ======= Net (loss) income $ (436) $ 154 $ 622 $ (556) ======= ======= ======= ======= Net (loss) income per share $(0.15) $ 0.06 $ 0.21 $(0.21) ======= ======= ======= ======= (a) In loss periods, common share equivalents would have an antidilutive effect on loss per share and therefore have been excluded.
EX-27 3
5 1000 9-MOS OCT-31-1999 NOV-01-1998 JUL-31-1999 2484 0 2369 0 1744 9541 1259 0 11156 1416 0 0 0 10890 (1751) 11156 13811 13811 4994 4994 0 0 (176) 653 31 622 0 0 0 622 0.22 0.21
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