FORM 10-Q
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 29, 1996
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OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 0-3286
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SEMICON, INC.
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(Exact name of registrant as specified in its charter)
MASSACHUSETTS 04-2242662
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(State or other jurisdiction of (I.R.S. Employer
of incorporation or organization) Identification No.)
10 North Avenue, Burlington, MA 01803
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(address of principal executive offices)
(Zip Code)
617-272-9015
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year,
if changed since last report)
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 No X
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Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $.25 Par Value - 3,304,873 shares (at January 31, 1997)
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INDEX
FORM 10-Q
SEMICON, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Page
Consolidated Balance Sheet - December 29, 1996
and June 30, 1996. 3
Consolidated Statement of Operations - Quarters ended
December 29, 1996 and December 31, 1995 and six
months ended December 29, 1996 and
December 31, 1995. 5
Consolidated Statement of Cash Flows - Quarters ended
December 29, 1996 and December 31, 1995 and six
months ended December 29, 1996 and
December 31, 1995. 6
Notes to Consolidated Financial Statements -
December 29, 1996. 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 12
2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
SEMICON, INC.
CONSOLIDATED BALANCE SHEET
ASSETS
December 29, June 30,
1996 1996
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Current assets:
Cash and cash equivalents $ 202,000 $ 240,000
Accounts receivable, less allowances
of $10,000 ($10,000 at June 30, 1996) 435,000 781,000
Inventories:
Work-in-process and finished products 633,000 655,000
Raw materials and supplies 227,000 274,000
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860,000 929,000
Other current assets 48,000 56,000
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Total current assets 1,545,000 2,006,000
Property, plant and equipment
Machinery and equipment 4,051,000 4,051,000
Leasehold improvements 130,000 130,000
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4,181,000 4,181,000
Less accumulated depreciation
and amortization 4,070,000 4,048,000
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111,000 133,000
Other assets 1,000 1,000
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$ 1,657,000 $ 2,140,000
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See notes to consolidated financial statements.
3
SEMICON, INC.
CONSOLIDATED BALANCE SHEET - Continued
LIABILITIES AND STOCKHOLDERS' DEFICIT
December 29, June 30,
1996 1996
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Current liabilities:
Accounts payable and other accrued liabilities $ 335,000 $ 423,000
Accrued compensation 161,000 185,000
Accrued interest 1,710,000 1,610,000
Federal and state income taxes 83,000 88,000
Indebtedness in default 2,686,000 2,731,000
Reserves for restructuring and environmental costs 1,299,000 1,300,000
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Total current liabilities 6,274,000 6,337,000
Stockholders' deficit:
Preferred stock, $1.00 par value
1,000,000 shares authorized, none issued 0 0
Common stock, $.25 par value,
10,000,000 shares authorized, 3,304,873
shares issued 826,000 826,000
Additional paid-in-capital 46,000 46,000
Accumulated deficit (5,489,000) (5,069,000)
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Total stockholders' deficit (4,617,000) (4,197,000)
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$ 1,657,000 $ 2,140,000
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See notes to consolidated financial statements.
4
SEMICON, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
QUARTER ENDED SIX MONTHS ENDED
December 29, December 31, December 29, December 31,
1996 1995 1996 1995
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Net Sales $ 1,123,000 $ 1,746,000 $ 2,455,000 $ 3,268,000
Costs and expenses:
Cost of products sold 1,092,000 1,391,000 2,372,000 2,773,000
Selling, general and adminstrative 209,000 248,000 445,000 498,000
Interest 70,000 77,000 141,000 155,000
Other (income) expense 0 0 0 0
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1,371,000 1,716,000 2,958,000 3,426,000
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Income (loss) before income taxes and
extraordinary item (248,000) 30,000 (503,000) (158,000)
Income taxes 0 0 0 0
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Income (loss) before extraordinary item (248,000) 30,000 (503,000) (158,000)
Extraordinary items:
Gain on purchase of debentures 74,000 132,000 83,000 195,000
Gain on debt settlement 0 158,000 0 158,000
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74,000 290,000 83,000 353,000
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Net income (loss) $ (174,000)$ 320,000 $ (420,000)$ 195,000
============ ============ ============ ============
Income (loss) per share:
Before extraordinary items ($0.07) $0.01 ($0.16) ($0.05)
Extraordinary items 0.02 0.09 0.03 0.11
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Net income (loss) per share ($0.05) $0.10 ($0.13) $0.06
============ ============ ============ ============
Weighted average number of
shares outstanding 3,305,000 3,305,000 3,305,000 3,305,000
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See notes to consolidated financial statements.
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SEMICON, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
QUARTER ENDED SIX MONTHS ENDED
December 29, December 31, December 29, December 31,
1996 1995 1996 1995
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Operating activities:
Net income (loss) $ (174,000)$ 320,000 $ (420,000)$ 195,000
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 11,000 5,000 22,000 10,000
Provision for bad debts 0 0 0 0
Gain on purchase of debentures (74,000) (132,000) (83,000) (195,000)
Gain on debt settlement 0 (158,000) 0 (158,000)
Changes in assets and liabilities:
Accounts receivable 138,000 (186,000) 346,000 16,000
Inventory 5,000 (191,000) 69,000 (193,000)
Other current assets 16,000 35,000 8,000 22,000
Accounts payable and accrued expenses 39,000 21,000 28,000 98,000
Income taxes payable (1,000) (2,000) (5,000) (9,000)
Other 0 3,000 0 7,000
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Total adjustments 134,000 (605,000) 385,000 (402,000)
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Cash provided by (used in)
operating activities (40,000) (285,000) (35,000) (207,000)
Investing activities:
Capital expenditures 0 (39,000) 0 (76,000)
Collection of investment income 0 0 0 0
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Cash provided by (used in)
investing actitivies 0 (39,000) 0 (76,000)
Financing activities:
Debenture purchases and debt settlement (2,000) (3,000) (3,000) (5,000)
Other 0 (2,000) 0 (2,000)
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Cash provided by (used in)
financing actitivies (2,000) (5,000) (3,000) (7,000)
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Increase (decrease) in cash
and cash equivalents (42,000) (329,000) (38,000) (290,000)
Cash and cash equivalents
at beginning of period 244,000 591,000 240,000 552,000
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Cash and cash equivalents
at end of period $ 202,000 $ 262,000 $ 202,000 $ 262,000
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See notes to consolidated financial statements.
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