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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 earnings of
$119,390 or $.03 per share on revenues of
$6,143,396 for its third quarter ended February 28,
1997 compared with earnings of $33,788 or $.01 per
share on revenues of $6,308,970 for the third quarter
of the previous year.
We have been informed by NASDAQ that the new
regulation which would require a minimum bid price
of $1.00 to remain listed among the NASDAQ Small
Cap Stocks has been delayed. We are hopeful that
our bid price will soon exceed $1.00 and therefore
negate having to implement a reverse stock split.
Consequently, we are deferring consideration of
such a split. Because we have now achieved three
consecutive quarters of healthy positive results, we
are optimistic that the market price of the stock will
reflect this trend and eliminate any need to take any
action to maintain our NASDAQ listing.
Thank you for your continued support.
Neal E. Young David L. White
Chairman Chief Executive Officer
April 11, 1997
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INOTEK TECHNOLOGIES CORP.
STATEMENTS OF INCOME (unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED
FEBRUARY 28 FEBRUARY 29 FEBRUARY 28 FEBRUARY 29
1997 1996 1997 1996
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NET SALES $ 6,143,396 $ 6,308,970 $ 18,000,592 $ 18,370,269
COST AND EXPENSES:
COST OF SALES 4,370,711 4,670,826 12,720,035 13,302,108
SALES AND MARKETING 802,290 860,394 2,423,593 2,638,272
GENERAL AND ADMINISTRATIVE 744,460 690,366 2,187,861 2,122,591
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TOTAL COST AND EXPENSES 5,917,461 6,221,586 17,331,489 18,062,971
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OPERATING INCOME 225,935 87,384 669,103 307,298
INTEREST EXPENSE (4,170) (10,783) (19,046) (25,825)
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EARNINGS BEFORE INCOME TAXES 221,765 76,601 650,057 281,473
INCOME TAXES 102,375 42,813 299,540 147,385
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NET EARNINGS $ 119,390 $ 33,788 $ 350,517 $ 134,088
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NET EARNINGS PER SHARE $ .03 $ .01 $ .08 $ .03
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INOTEK TECHNOLOGIES CORP.
BALANCE SHEETS
FEBRUARY 28, MAY 31,
1997 1996
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(UNAUDITED)
ASSETS
CURRENT ASSETS
CASH AND CASH EQUIVALENTS $ 581,179 $ 460,855
TRADE RECEIVABLES (NET OF
ALLOWANCE FOR DOUBTFUL
ACCOUNTS OF $34,065 AND
$77,809 3,285,779 2,644,022
INVENTORIES 2,146,282 2,002,231
DEFERRED TAX ASSET 60,974 75,572
PREPAID EXPENSES & OTHER ASSETS 230,524 96,588
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TOTAL CURRENT ASSETS 6,304,738 5,279,268
PROPERTY AND EQUIPMENT, NET 286,911 351,958
GOODWILL, NET 2,140,010 2,189,442
OTHER ASSETS 74,416 65,238
DEFERRED TAX ASSET 192,762 164,538
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TOTAL ASSETS $8,998,837 $8,050,444
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE $1,822,563 $1,423,116
ACCRUED EXPENSES 829,369 669,128
INCOME TAXES PAYABLE 174,908 110,777
CURRENT PORTION OF NOTES PAYABLE 213,215 305,945
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TOTAL CURRENT LIABILITIES 3,040,055 2,508,964
NOTES PAYABLE 88,785 --
SHAREHOLDERS' EQUITY:
COMMON SHARES, $.01 PAR VALUE
AUTHORIZED SHARES -10,000,000
ISSUED SHARES - 4,354,088
OUTSTANDING SHARES - 4,354,088 43,541 43,541
ADDITIONAL PAID-IN CAPITAL 3,299,546 3,299,546
RETAINED EARNINGS 2,548,910 2,198,383
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TOTAL SHAREHOLDERS' EQUITY 5,891,997 5,541,480
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $8,998,837 $8,050,444
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