ARGON ST, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited)
(In Thousands)
Fiscal Quarter Ended | ||||||||||||||||||||
December 31, 2006 | January 1, 2006 | |||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net income | $ | 5,183 | $ | 5,603 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by | ||||||||||||||||||||
(used in) operating activities: | ||||||||||||||||||||
Depreciation and amortization | 1,893 | 1,373 | ||||||||||||||||||
Deferred income tax expense (benefit) | 276 | (68 | ) | |||||||||||||||||
Stock-based compensation | 390 | 368 | ||||||||||||||||||
Bad debt expense | 30 | — | ||||||||||||||||||
Loss on sale of equipment | 2 | — | ||||||||||||||||||
Change in: | ||||||||||||||||||||
Accounts receivable | 1,528 | (9,764 | ) | |||||||||||||||||
Inventory | (340 | ) | (311 | ) | ||||||||||||||||
Deferred projects costs | 5,534 | — | ||||||||||||||||||
Prepaids and other | 211 | (281 | ) | |||||||||||||||||
Accounts payable and accrued expenses | (8,786 | ) | (11,108 | ) | ||||||||||||||||
Accrued salaries and related expenses | (939 | ) | (150 | ) | ||||||||||||||||
Deferred revenue | (8,962 | ) | (202 | ) | ||||||||||||||||
Income taxes payable | 1,649 | 3,180 | ||||||||||||||||||
Net cash used in operating activities | (2,331 | ) | (11,360 | ) | ||||||||||||||||
Cash flows from investing activities | ||||||||||||||||||||
Acquisitions of property, equipment and software | (1,242 | ) | (729 | ) | ||||||||||||||||
Cash acquired in Radix acquisition | - | 1,107 | ||||||||||||||||||
Deposits and other assets | (60 | ) | 299 | |||||||||||||||||
Proceeds from sale of equipment | 5 | - | ||||||||||||||||||
Net cash (used in) provided by investing activities | (1,297 | ) | 677 | |||||||||||||||||
Cash flows from financing activities | ||||||||||||||||||||
Repayment on line of credit, net of borrowings | - | (11,000 | ) | |||||||||||||||||
Payment on note payable | — | (56 | ) | |||||||||||||||||
Payments on capital leases | (18 | ) | (3 | ) | ||||||||||||||||
Tax benefit on stock option exercises | 231 | 530 | ||||||||||||||||||
Proceeds from exercise of stock options | 425 | 606 | ||||||||||||||||||
Proceeds from secondary offering | - | 46,768 | ||||||||||||||||||
Net cash provided by financing activities | 638 | 36,845 | ||||||||||||||||||
Net (decrease) in cash and cash equivalents | (2,990 | ) | 26,162 | |||||||||||||||||
Cash and cash equivalents, beginning of period | 33,498 | 4,064 | ||||||||||||||||||
Cash and cash equivalents, end of period | $ | 30,508 | $ | 30,226 | ||||||||||||||||
Supplemental disclosure | ||||||||||||||||||||
Income taxes paid | $ | 699 | $ | — | ||||||||||||||||
Interest expense paid | $ | 2 | $ | 127 | ||||||||||||||||