SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D. C. 20549
FORM 10Q
Quarterly Report Under Section 13 or 15 (d)
Of the Securities Exchange Act of 1934
For the Quarter ended March 31, 2002
Commission File Number 0-10125
Radiant Technology Corporation
------------------------------
(Exact name of registrant as specified in its charter)
California 95-2800355
- ---------------------- ----------------------
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) identification number)
1335 South Acacia Avenue, Fullerton, CA 92831
-----------------------------------------------
(Address of principal executive offices)(Zip Code)
(714) 991 - 0200
----------------
(Registrant's Telephone number, including area code)
Inapplicable
(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 X No ____
------
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Common Stock, no par value 2,081,678
- -------------------------- ------------------------------
(Class) (Outstanding at March 31, 2002)
1
RADIANT TECHNOLOGY CORPORATION
INDEX
Part I Financial Information:...........................................Page No.
Condensed Balance Sheet- March 31, 2002
and September 30, 2001 (unaudited)................................3
Condensed Statement of Operations - Three Months
Ended March 31, 2002 and 2001 (unaudited).........................4
Condensed Statement of Operations - Six Months
Ended March 31, 2002 and 2001 (unaudited).........................4
Condensed Statement of Cash Flows - Three Months
Ended March 31, 2002 and 2001 (unaudited).........................5
Condensed Statement of Cash Flows - Six Months
Ended March 31, 2002 and 2001 (unaudited).........................6
Notes to Condensed Financial Statements (unaudited).................7
Management's Discussion and Analysis of Financial
Condition and Results of Operation.................................7
Part II Other Information:
Legal Proceedings and Exhibits......................................9
Signature Page......................................................9
2
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION
CONDENSED BALANCE SHEETS
(UNAUDITED)
ASSETS
March 31 September 30
2002 2001
---------- ----------
Current Assets
Cash $342,075 $1,118,630
Accounts Receivable - Net 337,339 407,814
Inventories 1,174,596 845,823
Prepaid Expenses 35,995 53,467
Deferred Income Taxes 263,500 283,500
---------- ----------
Total Current Assets 2,153,505 2,709,234
Machinery and Equipment - Net 209,406 252,243
Other Assets 5,674 5,035
---------- ----------
Total Assets $2,368,585 $2,966,512
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities
Accounts Payable $167,567 $274,582
Accrued Expenses 205,371 216,080
Customer Deposits 275,373 200,663
---------- ----------
Total Current Liabilities 648,311 691,325
---------- ----------
Stockholders' Equity
Common Stock, no par value 1,167,608 1,167,608
Retained Earnings 552,666 1,107,579
---------- ----------
Total Stockholders' Equity 1,720,274 2,275,187
---------- ----------
Total Liabilities and Stockholders' Equity $2,368,585 $2,966,512
========== ==========
3
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
March 31 March 31
-------- --------
2002 2001 2002 2001
----------- ----------- ----------- -----------
Net Sales .................................. $603,776 $1,777,458 $1,256,035 $3,477,681
Cost of Sales .............................. 452,115 1,277,896 956,048 2,334,772
----------- ----------- ----------- -----------
Gross Profit ............................... 151,661 499,562 299,987 1,142,909
Operating Expenses:
Selling, general and administrative ..... 305,426 427,889 800,813 888,513
Depreciation and amortization ........... 31,191 31,122 62,237 69,249
----------- ----------- ----------- -----------
Total Operating Expenses ................ 336,617 459,011 863,050 957,762
----------- ----------- ----------- -----------
Income (Loss) from Operations .............. (184,956) 40,551 (563,063) 185,147
Interest Income, net ....................... 2,712 15,497 8,950 30,860
----------- ----------- ----------- -----------
Income (Loss) Before Tax Provision (Benefit) (182,244) 56,048 (554,113) 216,007
Provision (Benefit) for Income Taxes ....... -- (6,372) 800 8,528
----------- ----------- ----------- -----------
Net Income (Loss) .......................... $(182,244) $62,420 $(554,913) 207,479
=========== =========== =========== ===========
Basic Earning per Share:
Net Income (Loss) ....................... $(0.09) $0.03 $(0.27) $0.10
=========== =========== =========== ===========
Diluted Earning per Share:
Net Income (Loss) ....................... $(0.09) $0.03 $(0.27) $0.10
=========== =========== =========== ===========
Basic Weighted Average shares outstanding .. 2,081,678 2,081,678 2,081,678 1,994,178
=========== =========== =========== ===========
Diluted Weighted Average shares outstanding 2,081,678 2,259,511 2,081,678 2,172,011
=========== =========== =========== ===========
4
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
Three Months Ended
March 31,
------------------------------
2002 2001
---------- -----------
Cash Flows From Operating Activities:
Net Income (Loss) ................... $(182,244) $62,420
Adjustments To Reconcile Income To Net
Cash From Operating Activities:
Depreciation And Amortization ....... 31,191 31,122
Changes In Assets And Liabilities:
Accounts Receivable .............. 262,050 481,682
Inventories ....................... (448,422) 196,349
Prepaid Expenses .................. 38,864 16,031
Other Assets ...................... (521) (2,948)
Accounts Payable .................. 54,017 (87,910)
Accrued Expenses .................. 25,966 (3,665)
Customer Deposits ................. (249,236) (554,887)
Income Tax Payable ................ -- 6,628
----------- -----------
Net Cash (Used By) From Operating Activities (468,335) 144,822
----------- -----------
Cash Flows Used By Investing Activities:
Purchase Of Property And Equipment .. (11,312) (15,661)
----------- -----------
Cash Flows From Financing Activities: .. -- --
----------- -----------
Net Increase (Decrease) In Cash ........ (479,647) 129,161
Cash At Beginning Of Period ........... 821,722 999,255
----------- -----------
Cash At End Of Period ................. $342,075 $1,128,416
=========== ===========
5
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
Six Months Ended
March 31,
--------------------
2002 2001
----------- -----------
Cash Flows From Operating Activities:
Net Income (Loss) ...................... $(554,913) $207,479
Adjustments To Reconcile Income To Net
Cash From Operating Activities:
Depreciation And Amortization ........... 62,237 69,249
Changes In Assets And Liabilities:
Accounts Receivable ................... 70,475 889,031
Inventories ........................... (328,773) (237,819)
Prepaid Expenses ...................... 17,491 30,051
Other Assets .......................... (1,339) 7,670
Deferred .............................. Taxes
20,000 --
Accounts Payable ...................... (107,015) (186,821)
Accrued Expenses ...................... (10,709) 95,272
Customer Deposits ..................... 74,710 (751,080)
Tax Payable ........................... -- __ 8,528
----------- -----------
Net Cash (Used By) From Operating Activities (757,836) 131,560
----------- -----------
Cash Flows Used By Investing Activities:
Purchase Of Property And Equipment ...... (18,719) (44,652)
----------- -----------
Cash Flows Used By Financing Activities:
Stock Issued For Cash .................... -- 13,125
Repayment Of Line Of Credit .............. -- (500,000)
----------- -----------
Net Cash Used By Financing Activities ...... -- (486,875)
----------- -----------
Net Decrease In Cash ....................... (776,555) (399,967)
Cash At Beginning Of Period ................ 1,118,630 1,528,383
----------- -----------
Cash At End Of Period ...................... $342,075 $1,128,416
=========== ===========
6
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION - CONTINUED
NOTES TO CONDENSED FINANCIAL STATEMENTS FOR
MARCH 31, 2002
(UNAUDITED)
ITEM 1 - Notes
1. General
-------
The accompanying unaudited consolidated financial statements of Radiant
Technology Corporation (the "Company") have been prepared in accordance
with the instructions to Form 10-Q and do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. These statements should be
read in conjunction with the consolidated financial statements and notes
thereto included in the Company's Form 10-K for the year ended September
30, 2001.
In the opinion of management, all adjustments, consisting of normal
recurring adjustments, considered necessary for the fair presentation have
been included. Operating results for interim periods are not necessarily
indicative of results expected for a full year.
ITEM 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operation
All statements, other than statements of historical fact, included in this
Form 10-Q are, or may be deemed to be, "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934. Such forward-looking
statements involve assumptions, known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements contained in this Form 10-Q.
Financial Condition, Liquidity and Capital Resources
----------------------------------------------------
The Company's cash and equivalents decreased from $1,118,630 at September
30, 2001 to $342,075 at March 31, 2002. This decrease of $776,555 is
primarily attributable to the net loss. The increase in inventories and
reduction of accounts payable which were partially offset by the decrease
in accounts receivable and customer deposits also contributed to the net
cash used in operations of $757,836. The purchase of equipment accounted
for the cash used in investing activities of $11,312.
Management believes that the expected revenues from operations,
supplemented by the cash on hand, will be sufficient to provide adequate
cash to fund anticipated working capital and other cash needs during the
remainder of the year. The Company's order backlog at March 31, 2002 was
approximately $2,100,000.
7
ITEM 2 - Management's Discussion and Analysis of Financial Condition and Results
of Operations - Continued
Results of Operations
---------------------
Three Months Ended March 31, 2002
---------------------------------
Net Sales were $603,776 and $1,777,458 for the three months ended March 31,
2002 and 2001, respectively, or a decrease of 66%. The decrease in revenues
resulted principally from our inability to ship nearly $700,000 worth of
orders by March 31. Had this occurred, the quarter would have been
profitable. It will carry over into the next quarter.
The cost of sales increased as a percentage of sales for the three months
ended March 31, 2002 to 75%, compared to 72% for the three months ended
March 31, 2001. The increase is attributed to fixed costs which were a
higher percentage of costs due to the lower revenues in the quarter.
Selling, general and administrative expenses were $305,426 in the current
quarter as compared to $427,889 in the year earlier period, a reduction of
29%. This reduction was mainly due to reductions in payroll and related
expenses and research and development costs. The net loss in the current
year period was the result of lower revenues, which were only partially
offset by the reduction in selling, general and administrative expenses.
Six Months Ended March 31, 2002
-------------------------------
Net sales were $1,256,035 and $3,477,681 for the six months ended March 31,
2002 and 2001, respectively, a decrease of 64%. The decrease in revenues in
the first six months of 2002 as compared to 2001 resulted primarily from
reduced orders from the semiconductor industry.
Cost of sales increased as a percentage of sales for the six months ended
March 31, 2002 to 76%, compared to the 67% recorded in the six months ended
March 31, 2001 The increase is attributed to fixed manufacturing expenses
for facilities and labor that represent a higher percentage of net sales
because the net sales are significantly lower. In the current six month
period, manufacturing labor and related payroll expenses were significantly
lower than the prior year period, but the effect was negated by the
decrease in net sales for the period.
Selling, general and administrative expenses were $800,813 in the current
year period, as compared to $888,513 in the year earlier six months. The
decrease of 10 % was primarily due to reduced research and development
costs. The net loss for the six months ending March 31, 2002 was the result
of the decline in revenues.
8
RADIANT TECHNOLOGY CORPORATION
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 6. Reports on 8-K
None.
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.
RADIANT TECHNOLOGY CORPORATION
------------------------------
(Registrant)
Dated: May 13, 2002 /s/ L. R. McNamee
--------------------------------
Lawrence R. McNamee
Chairman of the Board,
Chief Operating Officer,
Chief Executive Officer
9