UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
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 0-12489
SPECTRAN CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 04-2729372
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
50 Hall Road, Sturbridge, Massachusetts 01566
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (508) 347-2261
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 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 __.
The number of shares of the registrant's Common Stock outstanding as of
July 31, 1998, was 7,003,850.
1
PART I - FINANCIAL INFORMATION
SPECTRAN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Dollars in thousands except per share amounts
(unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
1998 1997 1998 1997
---- ---- ---- ----
Net Sales $ 32,259 $ 32,109 $ 17,032 $ 15,881
Cost of Sales 24,595 19,405 14,479 9,719
------------- ------------- ------------- -------------
Gross Profit 7,664 12,704 2,553 6,162
Selling and Administrative Expenses 6,652 7,888 3,518 3,906
Research and Development Costs 2,581 1,598 1,406 817
------------- ------------- ------------- -------------
Income(Loss) from Operations (1,569) 3,218 (2,371) 1,439
Other Income (Expense):
Interest Income 147 765 33 489
Interest Expense (476) (464) (352) (111)
Other, Net 1,583 (11) 741 42
------------- ------------- ------------- -------------
Other Income (Expense), net 1,254 290 422 420
------------- ------------- ------------- -------------
Income (Loss) before Income Taxes (315) 3,508 (1,949) 1,859
Income Tax Expense (Benefit) (123) 1,193 (760) 626
------------- ------------- ------------- -------------
Income (Loss) before Equity in Joint Venture (192) 2,315 (1,189) 1,233
Income (Loss) from Joint Venture, Net of
Income Taxes (326) 137 (194) 97
------------- ------------- ------------- -------------
Net Income (Loss) $ (518) $ 2,452 $ (1,383) $ 1,330
============= ============= ============= =============
Net Income (Loss) per Common Share:
Basic $ (.07) $ .37 $ (.20) $ .19
=========== ============== =========== ==============
Diluted $ (.07) $ .35 $ (.20) $ .18
=========== ============== ============== ==============
Weighted Average Number of
Common Shares Outstanding:
Basic 7,002 6,499 7,022 6,913
========== =========== ============ =========
Diluted 7,002 6,988 7,022 7,360
========== =========== ============ =========
See accompanying notes to these consolidated financial statements.
2
SPECTRAN CORPORATION
CONSOLIDATED BALANCE SHEETS
Dollars in thousands
June 30, 1998 December 31, 1997
------------- -----------------
(unaudited)
ASSETS
Current Assets:
Cash and Cash Equivalents $ 2,797 $ 445
Current Portion of Marketable Securities -- 5,535
Trade Accounts Receivable, net 11,244 8,622
Income Taxes Receivable 815 --
Inventories 10,232 9,666
Deferred Income Taxes, net 1,189 1,189
Prepaid Expenses and Other Current Assets 2,635 1,943
---------------- ---------------
Total Current Assets 28,912 27,400
Investment in Joint Venture 3,887 4,213
Property, Plant and Equipment, net 65,456 55,409
Other Assets:
Long-term Marketable Securities -- 996
License Agreements, net 502 603
Deferred Income Taxes, net 412 412
Goodwill, net 832 872
Other Long-term Assets 2,146 2,200
---------------- ---------------
Total Other Assets 3,892 5,083
---------------- ---------------
Total Assets $ 102,147 $ 92,105
================ ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ 6,089 $ 4,758
Income Taxes Payable -- 573
Accrued Liabilities 5,796 6,015
--------------- ----------------
Total Current Liabilities 11,885 11,346
Long-term Debt 34,000 24,000
Stockholders' Equity:
Common Stock, voting, $.10 par value; authorized
20,000,000 shares; outstanding 7,002,350 shares and
7,000,634 shares in 1998 and 1997, respectively 700 700
Common Stock, non-voting, $.10 par value;
authorized 250,000 shares; no shares outstanding -- --
Paid-in Capital 50,243 50,223
Net Unrealized Gain (Loss) on Marketable Securities -- (1)
Retained Earnings 5,319 5,837
--------------- ----------------
Total Stockholders' Equity 56,262 56,759
--------------- ----------------
Total Liabilities & Stockholders' Equity $ 102,147 $ 92,105
================ ===============
See accompanying notes to these consolidated financial statements.
3
SPECTRAN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Dollars in thousands
(unaudited)
Six Months Ended June 30,
1998 1997
---- ----
Cash Flows from Operating Activities:
Net Income (Loss) $ (518) $ 2,452
Reconciliation of Net Income to Net Cash Provided by
(Used in) Operating Activities:
Depreciation and Amortization 2,972 1,939
Other Non-Cash Charges 5,022 (562)
Loss (Equity) in Unconsolidated Joint Venture 326 (137)
Changes in Other Components of Working Capital (9,183) (3,482)
Loss on Disposition of Equipment 204 2
--------------- --------------
Net Cash Provided by (Used in) Operating Activities (1,177) 212
Cash Flows from Investing Activities:
Acquisition of Property, Plant and Equipment (13,024) (16,559)
Purchase of Marketable Securities (9,652) (199,493)
Proceeds from Sale/Maturity of Marketable Securities 16,184 190,888
--------------- --------------
Cash Used in Investing Activities (6,492) (25,164)
Cash Flows from Financing Activities:
Borrowings of Long-term Debt 10,000 --
Proceeds from Exercise of Stock Options and Warrants 21 240
Issuance of Common Stock, net -- 23,077
-------------- --------------
Cash Provided by Financing Activities 10,021 23,317
Increase (Decrease) in Cash and Cash Equivalents 2,352 (1,635)
Cash and Cash Equivalents at Beginning of Period 445 3,565
--------------- --------------
Cash and Cash Equivalents at End of Period $ 2,797 $ 1,930
=============== ==============
See accompanying notes to these consolidated financial statements.
4
SPECTRAN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. BASIS OF PRESENTATION
The financial information for the three months and six months ended
June 30, 1998, is unaudited but reflects all adjustments (consisting solely of
normal recurring adjustments) which the Company considers necessary for a fair
statement of results for the interim periods. The results of operations for the
three months and six months ended June 30, 1998, are not necessarily indicative
of the results for the entire year.
The consolidated results for the three months and six months ended June 30,
1998, include the accounts of SpecTran Corporation (the Company) and its
wholly-owned subsidiaries, SpecTran Communication Fiber Technologies,Inc.
("SpecTran Communication"), SpecTran Specialty Optics Company ("SpecTran
Specialty"), and Applied Photonic Devices, Inc. ("APD"), which holds the
Company's investment in General Photonics, LLC, a 50-50 joint venture between
the Company and General Cable Corporation ("General Cable"), a former subsidiary
of Wassall plc. In December 1996, the Company sold certain of the assets of APD
to General Cable and then contributed the remaining non-cash assets of APD to
General Photonics for a 50% equity interest. The investment in General Photonics
is accounted for under the equity method of accounting pursuant to which the
Company records its 50% interest in General Photonics' net operating results.
Prior to the formation of General Photonics, APD's results of operations,
including net sales and expenses, were consolidated with those of the Company.
All significant intercompany balances and transactions have been eliminated.
These financial statements supplement, and should be read in
conjunction with, the Company's audited financial statements for the year ended
December 31, 1997, as contained in the Company's Form 10-K as filed with the
United States Securities and Exchange Commission.
2. INVENTORIES
Inventories consisted of (in thousands):
June 30, 1998 December 31, 1997
------------- -----------------
Raw Materials $ 3,401 $ 4,036
Work in Process 1,079 1,010
Finished Goods 5,752 4,620
--------------- ---------------
$ 10,232 $ 9,666
=============== ===============
5
3. PROPERTY, PLANT & EQUIPMENT
Property, plant and equipment consisted of (in thousands):
June 30, 1998 December 31, 1997
------------- -----------------
Land and Land Improvements $ 978 $ 978
Buildings and Improvements 24,479 10,453
Machinery and Equipment 40,008 33,567
Construction in Progress 19,345 27,694
---------------- ---------------
84,810 72,692
Less Accumulated Depreciation and Amortization 19,354 17,283
---------------- ---------------
$ 65,456 $ 55,409
================ ===============
4. LONG-TERM DEBT
Long-term debt consisted of (in thousands):
June 30, 1998 December 31, 1997
------------- -----------------
Revolving Credit Loan Facility at the Lower of
Prime or LIBOR plus 1.5% $ 10,000 $ --
Series A Senior Secured Notes at 9.24% Interest 16,000 16,000
Series B Senior Secured Notes at 9.39% Interest 8,000 8,000
--------- ---------
Total $ 34,000 $ 24,000
========= =========
In December 1996, the Company sold to a limited number of selected
institutional investors an aggregate principal amount of $24.0 million of senior
secured notes consisting of $16.0 million of 9.24% interest Series A Senior
Secured Notes due December 26, 2003, and $8.0 million of 9.39% interest Series B
Senior Secured Notes due December 26, 2004. The Company also has a $20.0 million
revolving credit agreement with its principal bank, maturing in December 1999.
As of June 30, 1998, the Company had borrowed $10.0 million against the
revolving agreement.
Due to the loss incurred in this year's second quarter, the Company was in
violation as of June 30, 1998, of certain covenants contained in both the
revolving credit agreement and the senior secured notes. Subsequent to the end
of the quarter, the Company obtained waivers of the violations as of June 30,
1998 from the bank regarding the revolving credit agreement and the note holders
regarding the senior secured notes. The Company is currently in discussions with
its lenders to obtain modifications of certain covenants contained in the loan
agreements to accommodate this decline in earnings.
5. CORNING SETTLEMENT
On March 13, 1998, the Company announced the settlement of Corning's
obligation to purchase multimode fiber from the Company under a multiyear supply
contract the companies entered into on January 1, 1996. Corning has terminated
its purchase of multimode fiber from the Company in exchange for a series of
cash payments to the Company totaling $4.1 million. For the three months and six
months ended June 30, 1998, the Company recognized income on the settlement of
approximately $900,000 and $1.8 million, respectively.
6
6. COMPUTATION OF EARNINGS PER COMMON SHARE
Effective December 31, 1997, the Company adopted Statement of Financial
Accounting Standards No. 128 "Earnings per Share" (SFAS 128) which has changed
the method of computing and presenting earnings per common share. All prior
periods presented have been restated in accordance with SFAS 128. This
restatement had an immaterial impact on prior periods' earnings per common share
amounts calculated under previous standard.
Under SFAS 128, primary earnings per common share has been replaced
with basic earnings per common share. The basic earnings per share computation
is based on the earnings applicable to common stock divided by the weighted
average number of shares of common stock outstanding at June 30, 1998 and June
30, 1997.
Fully diluted earnings per common share has been replaced with diluted
earnings per common share. The diluted earnings per common share computation for
the three months and six months ended June 30, 1997, includes the common stock
equivalency of options granted to employees under the stock incentive plan.
Excluded from the diluted earnings per common share calculation are options
granted to employees that are anti-dilutive based on the average stock price for
the year. For the three months and six months ended June 30, 1998, diluted
earnings per common share excludes the common share equivalency of options
granted to employees under the stock incentive plan since the effects would be
anti-dilutive.
7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Three and Six Months Ended June 30, 1998 Compared to Three and Six Months Ended
June 30, 1997
Overview of Results for the June, 1998 Quarter
SpecTran incurred a net loss for the June, 1998 quarter of $1.4
million, or $.20 per diluted share. Reduced earnings at all three operating
units contributed to the net loss.
The lower earnings at the Communication Fiber Technologies subsidiary
was caused by an industry-wide oversupply situation resulting in a highly
competitive market environment and price weakness. Overall demand is still
strong and while the overall volume of standard communication fiber sold during
this year's second quarter was up slightly compared with the same quarter last
year, declining selling prices, particularly for single-mode fiber, caused a
reduction in gross profit margins.
Lower earnings at the Specialty Optics subsidiary resulted from
operational issues rather than the lack of market demand. Charles B. Harrison,
SpecTran's President and Chief Executive Officer, has assumed operational
control of this subsidiary until a new general manager can be recruited and is
restructuring its management and systems. William B. Beck, the former general
manager and President of SpecTran Specialty Optics Company, has left the Company
to pursue other interests. Manufacturing and engineering personnel from the
Company's Communication Fiber Technologies subsidiary have been assigned to
address specific operational issues.
General Photonics, the Company's cabling joint venture with General Cable,
is experiencing lower than expected sales due to soft domestic customer premises
cable market and pricing, not unlike our competitors. Stringent cost control
measures have recently been implemented which are expected to lead to improved
results at General Photonics for the second half.
Due to the loss incurred during this year's second quarter, the Company is
in violation of certain covenants with its debt holders. Subsequent to the end
of the quarter, the Company obtained waivers of the violations as of June 30,
1998. The Company is currently in discussions with its lenders to obtain
modifications of certain covenants contained in the loan agreements to
accommodate this decline in earnings.
8
Results of Operations
The following table sets forth, for the periods indicated, certain
financial data as a percentage of net sales:
SIX MONTHS ENDED JUNE 30, THREE MONTHS ENDED JUNE 30,
1998 1997 1998 1997
---- ---- ---- ----
Net Sales 100.0% 100.0% 100.0% 100.0%
Cost of Sales 76.2% 60.4% 85.0% 61.2%
----- ----- ----- -----
Gross Profit 23.8% 39.6% 15.0% 38.8%
Selling and Administrative Expenses 20.7% 24.6% 20.6% 24.6%
Research and Development Cost 8.0% 5.0% 8.3% 5.1%
---- ---- ---- ----
Income (Loss) from Operations (4.9)% 10.0% (13.9)% 9.1%
Other Income (Expense), net 3.9% .9% 2.5% 2.6%
---- --- ---- ----
Income (Loss) before Income Taxes (1.0%) 10.9% (11.4)% 11.7%
Income Tax Expense (Benefit) (.4)% 3.7% (4.5)% 3.9%
----- ---- ------ ----
Income (Loss) before Equity in
Joint Venture (.6)% 7.2% (6.9)% 7.8%
Income (Loss) from Joint Venture, net (1.0)% .4% (1.1)% .6%
------ --- ------ ---
Net Income (1.6)% 7.6% (8.0)% 8.4%
====== ==== ====== ====
Net Sales
- ---------
Net sales of $17.0 million and $32.3 million for the three months and six
months ended June 30, 1998, were $1.2 million, or 7.2% and $150,000, or .5%,
higher than the comparable periods of 1997. The increases were primarily due to
increased revenues at SpecTran Specialty. Sales growth was adversely effected by
lower unit selling prices for both multimode and single-mode fiber due to the
highly competitive market conditions caused by an industry-wide oversupply
situation. In addition, the volume of single-mode fiber sales for the three
months and six months ended June 30, 1998, were substantially lower than in the
comparable periods in 1997, in large part due to continued unsettled economic
conditions and competitive market conditions in Asia.
Gross Profit
- ------------
Gross profit of $2.6 million and $7.7 million for the three months and
six months ended June 30, 1998, was $3.6 million, or 58.6% and $5.0 million, or
39.7% lower than for the comparable periods in 1997. As a percentage of net
sales the gross profit decreased to 15.0% and 23.8% for the three months and six
months ended June 30, 1998, from 38.8% and 39.6% for the three months and six
months ended June 30, 1997. The decrease in gross profit for both periods was
primarily due to operational and inventory issues at SpecTran Specialty and
continued industry pricing pressures for standard communication fiber products.
As a percentage of net sales, royalty expense increased from 2.5% and 2.8% for
the three months and six months ended June 30, 1997, to 3.1% and 3.6% for the
three months ended June 30, 1998, primarily due to an increase in the percentage
of net sales subject to royalty.
Selling and Administration
- --------------------------
Selling and administrative expenses decreased $388,000, or 9.9%, and
$1.2 million, or 15.7%, for the three months and six months ended June 30, 1998.
Included in the three months and six months ended June 30, 1997, were $400,000
and $1.1 million, respectively, of costs associated with the Company's one-time
management reorganization and training costs. As a percentage of net sales,
selling and administrative expenses decreased to 20.6% and 20.7% for the three
months and six months ended June 30, 1998, from 24.6% for both the three months
and six months ended June 30, 1997.
Research and Development
- ------------------------
Research and development costs increased $589,000, or 7.2%, and $983,000,
or 61.5 % for the three months and six months ended June 30, 1998. Assuming the
Company obtains modifications from its debtholders, the Company plans to
continue to increase its investment in programs to improve manufacturing cost
and product performance in both multimode and single-mode product lines, to
develop new special performance fiber products and to develop alternative
process technologies. As a percentage of net sales, research and development
costs increased form 5.1% and 5.0% for the three months and six months ended
June 30, 1997, to 8.3% and 8.0% for the three months and six months ended June
30, 1998.
9
Other Income (Expense), net
- ---------------------------
Other income (expense), net favorably increased by $2,000 or .5%, and
$964,000 or 332.4%, for the three months and six months ended June 30, 1998,
compared with the same periods in 1997. Interest income decreased for the three
months and six months ended June 30, 1998, by $456,000 and $618,000,
respectively due to a lower level of cash available for investment. Net interest
expense increased for the three months and six months ended June 30, 1998 by
$241,000 and $12,000, respectively. The increase for the three months primarily
relates to a higher level of borrowings under the Company's revolving credit
agreement and to a lower level of capitalized interest associated with the
Company's capacity expansion programs. Other, net increased for the three months
and six months ended June 30, 1998, by $699,000 and $1.6 million, respectively,
primarily due to the Company's settlement of a multi-year contract with Corning.
Income Taxes
- ------------
The Company realized a tax benefit for the three months and six months
ended June 30, 1998, as compared to a tax provision of 33.7% and 34.0% for the
three months and six months ended June 30, 1997. The tax benefit was due to the
loss incurred by the Company for the 1998 periods.
Income from Equity in Joint Venture
- -----------------------------------
The Company realized losses of $194,000 and $326,000, net of tax, for the
three months and six months ended June 30, 1998, from its investment in General
Photonics, the joint venture formed in December, 1996 with General Cable. The
loss was due to lower than anticipated revenues and gross profit.
Net Income
- ----------
The net loss for the three months and six months ended June 30, 1998, was
$1.4 million and $518,000 as compared to net income for the three months and six
months ended June 30, 1997, of $1.3 million and $2.5 million. The loss for the
three months ended June 30, 1998, was due to the operational and inventory
issues at SpecTran Specialty, the loss from its equity in General Photonics and
a lower level of earnings at SpecTran Communication due to competitive market
conditions.
Liquidity and Capital Resources
- -------------------------------
The Company's principal sources of cash are cash flow from operations,
established bank credit facilities and existing cash balances. Although the
Company did not generate positive cash flow from operations during the first
half of 1998, it does expect to generate positive cash flow for the entire year.
As of June 30, 1998, the Company had approximately $2.8 million of cash and cash
equivalents. In addition, the Company has a $20.0 millino revolving credit
agreement with its principal bank, $10.0 million of which has been drawn down.
The Company at June 30, 1998, had working capital of approximately $17.0 million
and a current ratio of 2.4 to 1.
The results for the three months and six months ended June 30, 1998, have
put the Company in violation of certain covenants with its debtholders. The
Company has obtained waivers of the violations as of June 30, 1998, and has
initiated discussions with its debtholders to obtain modifications of certain
covenants in its loan agreements to accommodate the temporary decline in
earnings. There can be no assurance that the modifications in the loan
agreements will be obtained, or that the Company will be able to borrow
additional amounts under its revolving credit agreement.
The Company is continuing its capacity expansion which will require
approximately $10.0 million in capital expenditures through the remainder of
1998, which will result in total expenditures for capacity expansion of
approximately $44.0 million at SpecTran Communication and $12.0 million at
SpecTran Specialty. When fully operational, the expansion at SpecTran
Communication will increase capacity there by 100%. The expansion at SpecTran
Specialty, which was completed in 1997, increased capacity by 50%. The Company
intends to continue to finance this expansion through a combination of cash flow
from operations and borrowings, assuming it obtains the appropriate
modifications with its debtholders.
10
Other Matters
- -------------
Charles B. Harrison, a Company Director since July 1997, was appointed
President and Chief Executive Officer of the Company, effective April 13, 1998,
succeeding Dr. Raymond E. Jaeger. Dr. Jaeger remains the Company's Chairman of
the Board.
Pursuant to Rule 14a-4 adopted under the Securities Exchange Act of 1934,
unless a stockholder who desires to introduce a proposal at the Company's annual
meeting of stockholders notifies the Company at least 45 days prior to the
month and day of the mailing of the prior year's proxy statement (i.e., by March
16, 1999), the proxyholders designated by management will be allowed to use
their discretionary voting authority when the proposal is raised at the annual
meeting, without any discussion of the matter in the proxy statement.
Management is aware of the potential software logic anomalies associated
with the year 2000 date change. The Company has evaluated the potential issues
that need to be addressed in its operations and has developed a plan for their
remediation. Parts of this plan have already been implemented. Based on
currently known information, costs of addressing the issue are not expected to
have a material effect upon the Company's financial position, results of
operations, or cash flows in future periods. As part of the process, the Company
plans on communicating with certain service providers, suppliers, and customers
to obtain information regarding their plans to address Year 2000 issues, to the
extent that they have such issues. There can be no assurance that third parties'
systems, upon which the Company may rely will become Year 2000 compliant in a
timely manner.
Subsequent Events
- -----------------
In July 1998, the Company announced that William B. Beck, the former
general manager and President of SpecTran Specialty, had left the company to
pursue other interests.
In August 1998, the Company announced the election of Robert A. Schmitz
to the Board of Directors.
As discussed above, subsequent to the end of the quarter, the Company
obtained from its debtholders waivers as of June 30, 1998 of violations of
certain covenants due to the loss incurred in this year's second quarter. The
Company is currently in discussions with its lenders to obtain modifications of
certain covenants contained in the loan agreements to accommodate this decline
in earnings.
The Company presently anticipates revenue growth in 1998 over the
previous year, but perhaps not the double digit growth previously announced.
Recent Accounting Pronouncements
- --------------------------------
Effective June 15, 1998, the provisions of Statements of Financial
Accounting Standards No. 133, "Accounting for Derivative Instruments and Hedging
Activities," will apply to the Company. The Company anticipates that application
of these statements will have no effect on the presentation of its financial
information.
In March 1998, the American Institute of Certified Public Accountants
issued Statement of Position ("SOP") 98-1, "Accounting for Costs of Computer
software Developed or Obtained for Internal Use." SOP 98-1 provides guidance on
accounting for the costs of computer software developed or obtained for internal
use, and is effective for fiscal years beginning December 31, 1998, with earlier
application encouraged. The adoption of SOP 98-1 is not expected to have a
material effect on the Company's financial statements.
Forward Looking Statements
- --------------------------
This report contains forward looking statements which are subject to a
number of risks and uncertainties that may cause actual results to differ
materially from expectations. These uncertainties include, but are not limited
to, general economic conditions and competitive conditions in markets served by
the Company.
11
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) 10.109 Employment agreement between SpecTran Corporation and William
B. Beck dated as of June 20, 1998.
10.110 Employment agreement between SpecTran Corporation and Dr.
Raymond E. Jaeger dated as of April 13, 1998.
(b) Reports on Form 8-K
No reports on Form 8-K were filed by the Registrant during the quarter
which this report was filed.
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.
SPECTRAN CORPORATION
(Registrant)
Date: August 14, 1998 BY:
/s/ Charles B. Harrison
------------------------
Charles B. Harrison
President and
Chief Executive Officer
Date: August 14, 1998 BY:
/s/ Bruce A. Cannon
--------------------
Bruce A. Cannon
Senior Vice President,
Chief Financial Officer and
Chief Accounting Officer
12