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EXHIBIT 20
INOTEK TECHNOLOGIES CORP.
REPORT FURNISHED TO SECURITY HOLDERS
TO OUR SHAREHOLDERS:
INOTEK Technologies Corp. reported a gain of $7,314 or $.02 per share on
revenues of $4,779,322 for its third quarter ended February 29, 2000 compared
with a loss of $196,272 or $(.05) on revenues of $4,735,875 for the third
quarter of the previous year, while gross profit margin increased 6.3% to
$1,421,627 from $1,336,990 for the same period last year. Sales increased during
the third quarter of fiscal year 2000 as compared to the third quarter of fiscal
year by only $43,447 due primarily to a soft market.
The company continued to experience a downturn in the petro-chemical market and
the impact of project dollars being channeled into Y-2K fixes not related to our
equipment. The increase in gross margin dollars is due to the increase in
contribution of our calibration service business. The Y-2K issues should be over
and the petro-chemical market has begun to show signs of a turnaround.
Thank you for your continued support.
Neal E. Young Dennis W. Stone
Chairman Chief Executive Officer
April 15, 2000
INOTEK TECHNOLOGIES CORP.
STATEMENTS OF OPERATION (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
28-Feb 28-Feb
2000 1999 2000 1999
----------- ------------ ------------ ------------
NET SALES $ 4,779,322 $ 4,735,875 $ 14,265,490 $ 13,281,935
COST AND EXPENSES:
COST OF SALES 3,357,695 3,398,885 10,075,248 9,434,378
SALES AND MARKETING 879,265 948,981 2,674,249 1,839,560
GENERAL AND ADMINISTRATIVE 603,056 639,666 1,879,578 1,851,184
----------- ------------ ------------ ------------
TOTAL COST AND EXPENSES 4,840,016 4,987,532 14,629,075 13,125,122
----------- ------------ ------------ ------------
OPERATING INCOME (LOSS) (60,694) (251,657) (363,585) 156,813
INTEREST INCOME (EXPENSES) 11,835 (4,297) 16,672 (11,763)
----------- ------------ ------------ ------------
EARNINGS (LOSS) BEFORE INCOME TAXES (48,859) (255,954) (346,913) 145,050
INCOME TAXES (20,521) (59,682) (82,728) 54,938
----------- ------------ ------------ ------------
NET EARNINGS (LOSS) $ (28,338) $ (196,272) $ (264,185) $ 90,112
============ ============ ============ ============
NET EARNINGS (LOSS) PER SHARE $ (0.01) $ (0.01) $ (0.06) $ (0.02)
============ ============ ============ ============
INOTEK TECHNOLOGIES CORP.
BALANCE SHEETS
February MAY 31
2000 1999
---------- ----------
(unaudited)
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 758,572 $ 173,668
TRADE RECEIVABLES, (NET OF
ALLOWANCE FOR DOUBTFUL
ACCOUNTS OF $105,515 AND $73,221) 2,356,932 2,181,222
INVENTORIES 1,257,329 1,409,887
DEFERRED TAX ASSET 114,206 103,232
INCOME RECEIVABLE 352,120
PREPAID EXPENSES & OTHER ASSETS 151,992 83,913
----------- -----------
TOTAL CURRENT ASSETS 4,639,031 4,304,042
PROPERTY AND EQUIPMENT, NET 680,052 755,400
GOODWILL, NET 1,942,273 1,991,709
OTHER ASSETS 108,610 59,008
----------- -----------
TOTAL ASSETS $ 7,369,967 $ 7,110,159
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE $ 1,496,190 $ 927,953
ACCRUED EXPENSES 246,712 343,863
CURRENT PORTION OF NOTES
INCOME TAX PAYABLE 20,645 --
----------- -----------
TOTAL CURRENT LIABILITIES 1,763,547 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 2,232,711 2,497,010
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 5,645,799 5,840,097
LESS: COMMON TREASURY STOCK (39,380) (39,380)
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 5,606,419 5,800,717
----------- -----------
EQUITY $ 7,369,967 $ 7,110,159
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