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EXHIBIT (20)
INOTEK TECHNOLOGIES CORP.
REPORT FURNISHED TO SECURITY HOLDERS
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TO OUR SHAREHOLDERS:
INOTEK Technologies Corp. reported a loss of $22,622 or $(.01) per share on
revenues of $5,198,049 for its second quarter ended November 30, 1999 compared
with a loss of $41,025 or $(.01) on revenues of $5,678,720 for the second
quarter of the previous year.
Total sales decreased during the second quarter of fiscal year 2000 as compared
to the second quarter of fiscal year 1999 by 8.5% or $480,671 due primarily to a
soft market.
Because of the dramatic downturn in activity in our two key customer categories
- - manufacturing and petro-chemical, and the impact of project dollars being
channeled into Y-2K fixes, Inotek endured one of its slowest quarters in recent
memory. The former conditions have begun to correct themselves and spending for
capital projects should resume at normal to higher rates.
Thank you for your continued support.
Neal E. Young Dennis W. Stone
Chairman Chief Executive Officer
January 15, 2000
INOTEK TECHNOLOGIES CORP.
STATEMENTS OF OPERATION (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
30-Nov 30-Nov
1999 1998 1999 1998
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NET SALES $ 5,198,049 $ 5,678,720 $ 9,486,168 $ 11,180,531
COST AND EXPENSES:
COST OF SALES 3,689,163 4,102,851 6,717,554 8,119,852
SALES AND MARKETING 897,366 834,788 1,794,985 1,727,829
GENERAL AND ADMINISTRATIVE 647,209 771,212 1,276,541 1,399,403
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TOTAL COST AND EXPENSES 5,233,738 5,708,851 9,789,080 11,247,084
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OPERATING INCOME (LOSS) (35,689) (30,131) (302,912) (66,553)
INTEREST INCOME (EXPENSES) 0 (4,297) 4,837 (8,594)
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EARNINGS (LOSS) BEFORE INCOME TAXES (35,689) (34,428) (298,075) (75,147)
INCOME TAXES (13,067) 6,597 (62,207) 1,585
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NET EARNINGS (LOSS) $ (22,622) $ (41,025) $ (235,868) $ (76,732)
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NET EARNINGS (LOSS) PER SHARE $ (0.01) $ (0.01) $ (0.05) $ (0.02)
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INOTEK TECHNOLOGIES CORP.
BALANCE SHEETS
NOVEMBER MAY 31
1999 1999
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(UNAUDITED)
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ -- $ 173,668
TRADE RECEIVABLES, (NET OF
ALLOWANCE FOR DOUBTFUL
ACCOUNTS OF $101,483 AND $73,221) 2,907,712 2,181,222
INVENTORIES 1,409,333 1,409,887
DEFERRED TAX ASSET 103,622 103,232
INCOME RECEIVABLE 304,824 352,120
PREPAID EXPENSES & OTHER ASSETS 204,600 83,913
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TOTAL CURRENT ASSETS 4,930,091 4,304,042
PROPERTY AND EQUIPMENT, NET 706,823 755,400
GOODWILL,NET 1,958,752 1,991,709
OTHER ASSETS 64,665 59,008
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TOTAL ASSETS $ 7,660,331 $ 7,194,072
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE $ 1,722,996 $ 927,953
ACCRUED EXPENSES 302,612 343,863
CURRENT PORTION OF NOTES
PAYABLE -- --
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TOTAL CURRENT LIABILITIES 2,025,578 1,271,816
DEFERRED TAX LIABILITY -- 37,626
SHAREHOLDERS' EQUITY:
COMMON SHARES, $.01 PAR VALUE;
AUTHORIZED SHARES - 10,000,000
ISSUED SHARES - 4,604,088
OUTSTANDING SHARES - 4,604,088 46,041 43,541
ADDITIONAL PAID-IN CAPITAL 3,367,047 3,299,546
RETAINED EARNINGS 2,261,045 2,497,010
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TOTAL SHAREHOLDERS' EQUITY 5,674,133 5,840,097
LESS: COMMON TREASURY STOCK (39,380) (39,380)
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TOTAL SHAREHOLDERS' EQUITY 5,634,753 5,800,717
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EQUITY $ 7,660,331 $ 7,110,159
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