-----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, WU2d1L02uVstgbRpKuRLecItdOZnr+3Nrj0hwzGUp04BiDSLPUzmBbFtDxKRmBeM XupNn9R0Li+E3TkM9wEb9w== 0000921895-96-000153.txt : 19960629 0000921895-96-000153.hdr.sgml : 19960629 ACCESSION NUMBER: 0000921895-96-000153 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960516 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRINITECH SYSTEMS INC CENTRAL INDEX KEY: 0000099047 STANDARD INDUSTRIAL CLASSIFICATION: 7373 IRS NUMBER: 061344888 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-21324 FILM NUMBER: 96568673 BUSINESS ADDRESS: STREET 1: 333 LUDLOW STREET CITY: STAMFORD STATE: CT ZIP: 06902 BUSINESS PHONE: 2034258000 10QSB 1 QUARTERLY REPORT ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB (Mark one) |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1996 OR |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________to________ Commission File No. 0-21324 TRINITECH SYSTEMS, INC. (Exact name of registrant as specified in its charter) NEW YORK 06-1344888 (State of incorporation) (I.R.S. Employer identification number) 333 LUDLOW STREET, STAMFORD, CONNECTICUT 06902 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (203) 425-8000 Indicate by check mark whether the 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 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 |_| 7,303,530 shares of Common Stock were issued and outstanding as of May 13, 1996. ================================================================================ PART I - FINANCIAL INFORMATION ITEM 1. Financial Statements TRINITECH SYSTEMS, INC. - - -------------------------------------------------------------------------------- BALANCE SHEETS - - ---------------------------------
(Unaudited) March 31, December 31, ASSETS 1996 1995 -------------- -------------- CURRENT ASSETS: Cash $926,189 $1,258,119 Accounts receivable 1,958,560 2,409,434 Inventories 1,212,304 1,000,450 Prepaid expenses and other 230,058 201,849 -------------- -------------- Total Current Assets 4,327,111 4,869,852 -------------- -------------- EQUIPMENT - net of accumulated depreciation of $313,883 and $283,306 at March 31 and December 31, respectively 402,629 403,512 -------------- -------------- OTHER ASSETS - net of accumulated amortization of 646,558 and $565,107 at March 31 and December 31, respectively 602,368 596,561 -------------- -------------- TOTAL $5,332,108 $5,869,925 ============== ============== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable - trade $349,927 $353,129 Accrued expenses 267,373 454,449 Current portion of term loan payable 16,667 16,667 Advance billings 154,467 120,634 Payroll and other taxes payable 26,207 25,633 -------------- -------------- Total Current Liabilities 814,641 970,512 TERM LOAN PAYABLE 25,000 29,167 -------------- -------------- Total Liabilities 839,641 999,679 -------------- -------------- COMMITMENTS: STOCKHOLDERS' EQUITY: 10% Convertible preferred stock - par value $1.00; 1,000,000 shares authorized; -0- outstanding - - Common stock - par value $.001; 15,000,000 and 10,000,000 shares authorized in 1996 and 1995, respectively; 7,274,030 and 7,272,530 shares issued and outstanding in 1996 and 1995, respectively 7,274 7,273 Additional paid-in capital 5,924,701 5,920,203 Accumulated deficit (1,439,508) (1,057,230) -------------- -------------- Total Stockholders' Equity 4,492,467 4,870,246 -------------- -------------- TOTAL $5,332,108 $5,869,925 ============== ==============
See Notes to Financial Statements. 2 TRINITECH SYSTEMS, INC. - - -------------------------------------------------------------------------------- STATEMENTS OF OPERATIONS - - ------------------------------------------
(Unaudited) --- Three Months Ended --- March 31, March 31, 1996 1995 -------------- -------------- REVENUES: Sales $434,002 $817,965 Service contracts 169,094 88,330 -------------- -------------- Total Revenues 603,096 906,295 COST OF SALES AND SERVICE 319,688 426,790 -------------- -------------- GROSS PROFIT 283,408 479,505 -------------- -------------- EXPENSES: Selling, general and administrative 645,349 508,288 Depreciation and amortization 37,867 32,338 -------------- -------------- Total Expenses 683,216 540,626 -------------- -------------- LOSS FROM OPERATIONS (399,808) (61,121) OTHER INCOME - NET 17,530 17,675 -------------- -------------- NET LOSS ($382,278) ($43,446) ============== ============== NET LOSS PER COMMON SHARE $ (0.05) $ (0.01) ============== ============== AVERAGE COMMON SHARES OUTSTANDING 7,273,997 7,113,947 ============== ==============
See Notes to Financial Statements. 3 TRINITECH SYSTEMS, INC. - - -------------------------------------------------------------------------------- STATEMENTS OF CASH FLOWS - - ------------------------------------------
(Unaudited) ---Three Months Ended --- March 31, March 31, 1996 1995 -------------- -------------- OPERATING ACTIVITIES: Net loss ($382,278) ($43,446) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 106,965 84,616 Changes in assets and liabilities: Accounts receivable 450,874 (707,750) Inventories (211,854) (71,721) Prepaid expenses (28,209) (25,343) Accounts payable - trade (3,202) 69,048 Deferred revenue 33,833 27,715 Payroll and other taxes payable 574 10,665 Accrued expenses (187,076) 83,181 -------------- -------------- Net cash used in operating activities (220,373) (573,035) -------------- -------------- INVESTING ACTIVITIES: Payments for equipment (29,694) (52,218) Payments for other assets (82,195) (83,548) -------------- -------------- Net cash used in investing activities (111,889) (135,766) -------------- -------------- FINANCING ACTIVITIES: Issuance of common stock 4,499 55,625 Repayment of borrowings (4,167) - -------------- -------------- Net cash provided by financing activities 332 55,625 -------------- -------------- DECREASE IN CASH (331,930) (653,176) CASH, BEGINNING OF PERIOD 1,258,119 1,035,276 -------------- -------------- CASH, END OF PERIOD $926,189 $382,100 ============== ==============
See Notes to Financial Statements. 4 TRINITECH SYSTEMS, INC. NOTES TO FINANCIAL STATEMENTS (Unaudited) 1. BASIS OF PRESENTATION The accompanying financial statements have been prepared by the Company without audit (except for the balance sheet information as of December 31, 1995 which has been derived from the Company's audited financial statements) in accordance with generally accepted accounting principles for interim financial information and instructions to Form 10-QSB and Item 310 (b) of Regulation S-B. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation have been included. The accompanying financial statements do not include certain footnotes and financial presentations normally required under generally accepted accounting principles and, therefore, should be read in conjunction with the Company's 1995 audited financial statements. Results of operations for the period ended March 31, 1996 are not necessarily indicative of operating results for the fiscal year. 2. INVENTORIES Inventories are stated at the lower of cost (first-in, first-out) or market. Inventories consisted of the following: March 31, 1996 December 31, 1995 -------------- ----------------- Parts $ 848,227 $ 634,003 Finished goods 364,077 366,447 ---------- ---------- Total $1,212,304 $1,000,450 ========== ========== 3. PER SHARE INFORMATION Net loss per common share is based on the weighted average number of common shares outstanding. Common stock equivalents have not been included in the per share calculation because their effect is anti-dilutive. 5 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS The Company commenced its present business operations in January 1991 through the acquisition of a software license for its Guided-Input(R) Trinitech TouchPad(TM) System. The following discussion should be read in conjunction with the consolidated financial statements and related notes included elsewhere herein. Historical results and percentage relationships are not necessarily indicative of the operating results for any future period. REVENUES Revenues for the three months ended March 31, 1996 were $603,096 as compared to $906,295 for the three months ended March 31, 1995, a decrease of 33%. Unexpectedly long lead times in delivery of a new type of display used in the Company's products made it impossible to schedule certain deliveries prior to the end of the first quarter. Management believes that such delays experienced during the first quarter do not have any impact on the Company's expectation for the remainder of 1996. Approximately 20% and 27% of the Company's sales revenues for the periods ended March 31, 1996 and 1995, respectively were derived from software installations. Revenue from export sales approximated $31,000 (7% of sales) and $264,000 (32% of sales) during the three months ended March 31, 1996 and 1995, respectively. In addition, revenues from service contracts increased by 91% in the three months ended March 31, 1996 over the comparable 1995 quarter. The increase in service revenue resulted from an increase of hardware and software products sold during the past year. The Company did not experience any significant price changes in its product lines during the three month periods ended March 31, 1996 and 1995. At March 31, 1996, the Company's order backlog totaled approximately $3,800,000. COST OF SALES AND SERVICE AND GROSS PROFIT The Company's cost of sales and service is principally comprised of labor, materials and overhead. Gross profit as a percentage of total revenues was 47.0% and 52.9% for the three months ended March 31, 1996 and 1995, respectively. Cost of sales and service decreased from $426,790 in the three months ended March 31, 1995 to $319,688 in the three months ended March 31, 1996 as a result of the decrease in revenues as noted above (as a percentage of gross profit, cost of sales and service increased from 47.1% in 1995 to 53% in 1996). The Company obtains its materials parts and supplies from a variety of vendors in the US and far east. Although the Company experienced slight price increases in certain component parts obtained from the far east, these increases were partially offset by price reductions in other product components due to increased volumes purchased. 6 SELLING, GENERAL AND ADMINISTRATIVE Selling, general and administrative expenses for the three months ended March 31, 1996 were $645,349 as compared to $508,288 in the three months ended March 31, 1995, an increase of 27%. Such increase reflected the continued expansion of operations in both the U.S and in London. A significant portion of the costs of such expansion, including personnel costs, was not realized until mid 1995. The Company has also continued its marketing programs for 1996, primarily focusing on public relations activities in financial trade publications and representation at technological exhibitions planned throughout 1995. Research and development expenses for the three months ended March 31, 1996 and 1995 approximated $64,000 and $16,300, respectively and are included in selling, general and administrative expenses. OTHER INCOME Other income consists principally of interest earned on cash balances and sublease income earned during the three months ended March 31, 1996 and 1995. The Company leases a portion of its corporate office facility under a three year sublease which expires on April 30, 1997. Sublease rental income earned during the three month periods ended March 31, 1996 and 1995 totaled approximately $9,700 and $9,800, respectively. NET LOSS Net loss for the three months ended March 31, 1996 was $382,278 ($0.05 per share) as compared to a net loss of $43,446 ($0.01 per share) in the comparable 1995 period. This increase in net loss principally resulted from a delay in the delivery of finished products experienced by the Company during the first quarter of 1996. See "Revenues" above. Management has made a considerable effort with respect to an expansion of its operations, which began in 1993 and continues into 1996. The Company believes that this expansion of personnel and facilities will better position the Company and facilitate its future growth. LIQUIDITY AND CAPITAL RESOURCES Since its formation, the Company's primary source of working capital has been private offerings of its securities, through which the Company has raised approximately $5.9 million of working capital. At March 31, 1996, cash balances decreased to $926,189 from $1,258,119 at December 31, 1995. The decrease is primarily due to the net loss experienced by the Company during the three month period ended March 31, 1996. 7 The accounts receivable balance at March 31, 1996 principally represents amounts due from customers (including sales and other taxes approximating $207,000) on sales made during 1995 and 1996. In the past, the Company's cash position enabled it to offer, as circumstances required, flexibility to certain customers with respect to payment. This business practice explains the receivable balance as business has grown. Now that new accounts are maturing, the Company has placed an emphasis on the collection of all outstanding receivables, and believes that all of the balances are fully collectible. The Company's current assets at March 31, 1996 exceeded its current liabilities by approximately $3,512,000. The Company at March 31, 1996 had long-term debt totaling $25,000 which represents a secured term loan on the purchase of development equipment. In addition, at March 31, 1996, the Company had no material commitments for capital expenditures or inventory purchases. The Company had available a one million dollar bank line of credit facility for the purpose of financing accounts receivable and, at March 31, 1996, the Company had not used the line of credit facility. The line of credit, which was secured by accounts receivable and inventory, expired on April 30, 1996. Interest on the line of credit was based on the bank's prime rate plus one percent. The Company anticipates to renew the facility upon substantially similar terms. The Company believes that with its available capital and anticipated funds generated from operations it will be able to fund its cash needs through the end of 1996 without the need for additional capital or financing. The Company intends to utilize its positive financial position to internally finance its continuing research and development activities and anticipated sales growth. The Company's financial requirements and its ability to meet them thereafter will depend largely on its future financial performance. However, in the event the Company's operations do not generate cash to the extent currently anticipated by management of the Company and grow more rapidly than anticipated, it is possible that the Company would require additional funds beyond 1996. At this time, the Company does not know what sources, if any, would be available to it for such funds, if required. In addition, at March 31, 1996, the Company has warrants outstanding for the purchase of 502,587 shares of its Common stock. Assuming the exercise of all such outstanding Warrants, the Company would realize approximately $1,195,000 in gross proceeds. 8 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. Dated: May 15, 1996 TRINITECH SYSTEMS, INC. (Registrant) By:/s/ Peter Kilbinger Hansen -------------------------- Peter Kilbinger Hansen Chairman of the Board and President (Chief Executive Officer) By:/s/ William E. Alvarez, Jr. --------------------------- William E. Alvarez, Jr. Chief Financial Officer and Secretary (Principal Financial and Accounting Officer) 9 EX-27 2 ARTICLE 5 FDS FOR 10-QSB
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE COMPANY'S FORM 10-QSB FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS DEC-31-1995 JAN-01-1996 MAR-31-1996 926,189 0 1,958,560 0 1,212,304 4,327,111 716,512 313,883 5,332,108 814,641 0 0 0 7,274 5,924,701 5,332,108 434,002 603,096 319,688 1,002,904 (17,530) 0 0 (382,278) 0 (382,278) 0 0 0 (382,278) (.05) (.05)
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