[TEST]
[RETURN-COPY]
[DOCUMENT-COUNT] 1
[SROS] NASD
[FILER]
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
X Quarterly report pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934
For the quarterly period ended March 31, 1995 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 number 0-18603
INTEGRAL SYSTEMS, INC.
(Exact name of registrant as specified in its chapter)
Maryland 52-1267968
(State or other jurisdiction of I.R.S. Employer
incorporation or organization) Identification No.)
5000 Philadelphia Way, Suite A, Lanham, MD 20706
(Address of principal executive offices) Zip Code)
Registrant's telephone number, including area code 301) 731-4233
(Former name, address and fiscal year, if changed since last
report)
Indicate by checkmark 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
As of March 31, 1995 the aggregate market value of the
Common Stock of the Registrant (based upon the average bid and
ask prices of the Common Stock as reported by the market makers)
held by non-affiliates of the Registrant was $15,532,440.
Registrant has 942,846 shares of common stock outstanding as
of March 31, 1995.
INTEGRAL SYSTEMS, INC.
TABLE OF CONTENTS
Part I Financial Information:
Page No.
Item 1. Financial Statements
Balance Sheets - March 31, 1995, September 30, 1994 1
Statements of Operations Six Months and Three Months
Ended March 31, 1995 and March 31, 1994....... 3
Statement of Cash Flow Six Months Ended March 31, 1995
and March 31, 1994 4
Statement of Shareholders Equity Six Months
Ended March 31, 1995 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operation 7
Part II Other Information:
Item 6. Exhibits and Reports on Form 8-K 10
INTEGRAL SYSTEMS, INC.
NOTES TO FINANCIAL STATEMENTS
1. Basis of Presentation
The interim financial statements include the accounts of
Integral Systems, Inc. (ISI) and its two wholly-owned
subsidiaries, Integral Marketing, Inc. (IMI) and InterSys,
Inc. (INTSYS). In the opinion of management, the financial
statements reflect all adjustments consisting only of normal
recurring accruals necessary for a fair presentation of
results for such periods. The financial statements, which
are condensed and do not include all disclosures included in
the annual financial statements, should be read in
conjunction with the consolidated financial statements of
the Company for the fiscal year ended September 30, 1994.
The results of operations for any interim period are not
necessarily indicative of results for the full year.
2. Accounts Receivable
Accounts receivable at March 31, 1995 and September 30, 1994
consist of the following:
Mar. 31, Sept. 30,
1995 1994
Billed $2,609,689 $1,623,540
Unbilled 1,367,125 773,912
$3,976,814 $2,397,452
The Company uses the direct write-off method for bad debts.
The Company's accounts receivable consist of amounts due on
prime contracts and subcontracts with the U.S. Government
and contracts with various private organizations. Unbilled
accounts receivable consist principally of amounts that are
billed in the month following the incurrence of cost. All
unbilled receivables are expected to be billed and collected
within one year.
3. Line-of-Credit
The Company has a line of credit agreement with a local bank
for $1,200,000. Borrowing under the line of credit bears
interest at the bank's lending rate plus one-quarter of one
percentage point per annum. Any accrued interest is payable
monthly. At March 31, 1995 and September 30, 1994 the
Company had no outstanding balance under the line of credit.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
COMPARISON OF THE SIX MONTHS ENDED MARCH 31, 1995
TO THE SIX MONTHS ENDED MARCH 31, 1994
The components of the Company's income statement as a
percentage of revenue are depicted in the following table for the
six months ended March 31, 1995 and March 31, 1994:
% of % of
1995 Revenue 1994 Revenue
(000's (000's
omitted) omitted)
Revenue $5,807 100.0 $4,310 100.0
Expenses
Cost of 4,959 85.4 3,788 87.9
Revenue
General & 545 9.4 573 13.3
Admin.
Other -7 -.1 -12 -.3
Income 119 2.0 4 .1
Taxes
Total 5,616 96.7 4,353 101.0
Expenses
Net income $191 3.3 $-43 -1.0
Revenue
Revenue increased by approximately $1,500,000 between the
six months ended March 31, 1995 and the six months ended March
31, 1994, principally because of new contract awards related to