SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D. C. 20549
FORM 10Q
Quarterly Report Under Section 13 or 15 (d)
Of the Securities Exchange Act of 1934
For the Quarter ended March 31, 2001
Commission File Number 0-10125
Radiant Technology Corporation
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(Exact name of registrant as specified in its charter)
California 95-2800355
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(State or other jurisdiction of (I.R.S Employer
incorporation or organization) identification number)
1335 South Acacia Avenue, Fullerton, CA 92831
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(Address of principal executive offices)(Zip Code)
(714) 991 - 0200
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(Registrant's Telephone number, including area code)
Inapplicable
(Former name, former address and former fiscal year, if changed
since last report)
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 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
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Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Common Stock, no par value 2,081,678
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(Class) (Outstanding at March 31, 2001)
1
RADIANT TECHNOLOGY CORPORATION
INDEX
Part I Financial Information:...........................................Page No.
Condensed Balance Sheet- March 31, 2001
and September 30, 2000 (unaudited)...............................3
Condensed Statement of Operations - Three Months
Ended March 31, 2001 and 2000 (unaudited)........................4
Condensed Statement of Operations - Six Months
Ended March 31, 2001 and 2000 (unaudited)........................4
Condensed Statement of Cash Flows - Three Months
Ended March 31, 2001 and 2000 (unaudited)........................5
Condensed Statement of Cash Flows - Six Months
Ended March 31, 2001 and 2000 (unaudited)........................6
Notes to Condensed Financial Statements (unaudited)................7
Management's Discussion and Analysis of Financial
Condition and Results of Operation................................7
Part II Other Information:
Legal Proceedings and Exhibits.....................................8
Signature Page.....................................................9
2
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION
CONDENSED BALANCE SHEETS
(UNAUDITED)
ASSETS
March 31 September 30
2001 2000
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Current Assets
Cash ........................................ $1,128,416 $1,528,383
Accounts Receivable - Net ................... 955,387 1,844,418
Inventories ................................. 926,952 689,133
Prepaid Expenses ............................ 12,360 42,411
Deferred Income Taxes ....................... 170,000 170,000
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Total Current Assets ..................... 3,193,115 4,274,345
Machinery and Equipment - Net ..................... 241,074 265,671
Other Assets ...................................... 3,773 11,443
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Total Assets ................................ $3,437,962 $4,551,459
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Notes Payable ............................... $ -- $ 500,000
Accounts Payable ............................ 210,343 397,164
Accrued Expenses ............................ 350,026 254,754
Customer Deposits ........................... 216,189 967,269
Income Tax Payable .......................... 21,528 13,000
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Total Current Liabilities ................... 798,086 2,132,187
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Stockholders' Equity
Common Stock, no par value ................... 1,167,608 1,154,483
Retained Earnings ........................... 1,472,268 1,264,789
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Total Stockholders' Equity ................... 2,639,876 2,419,272
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Total Liabilities and Stockholders' Equity ........... $3,437,962 $4,551,459
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3
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
March 31 March 31
2001 2000 2001 2000
---- ---- ------ ----
Net Sales $1,777,458 $991,211 $3,477,681 $1,857,389
Cost of Sales 1,277,896 668,037 2,334,772 1,172,944
------------ ------- --------- ---------
Gross Profit 499,562 323,174 1,142,909 684,445
Operating Expenses:
Selling, general and administrative 414,889 282,257 888,513 571,414
Depreciation and amortization 31,122 30,328 69,249 72,858
------ ------ ------ ------
Total Operating Expenses 459,011 312,585 957,762 644,272
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Income from Operations 40,551 10,589 185,147 40,173
Interest Income, net 15,497 7,260 30,860 16,211
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Income Before Tax Provision (Benefit) 56,048 17,849 216,007 56,384
Provision (Benefit) for Income Taxes (6,372) - 8,528 -
----------- ------------ -------- --------
Net Income $62,420 $17,849 $207,479 $56,384
========= ======== ========= =========
Basic Earning per Share:
Net Income $0.03 $0.01 $0.10 $0.03
============= ===== ===== =========
Diluted Earning per Share:
Net Income $0.03 $0.01 $0.10 $0.03
============= ===== ===== =========
Basic Weighted Average
shares outstanding 2,081,678 1,905,678 1,994,178 1,905,678
========= ========= ========= =========
Diluted Weighted Average
shares outstanding 2,259,511 2,243,729 2,172,011 2,243,729
========= ========= ========= =========
4
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
March 31
2001 2000
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Cash Flows From Operating Activities:
Net Income ..................................... $ 62,420 $ 17,849
Adjustments To Reconcile Income To Net
Cash From Operating Activities:
Depreciation And Amortization .................. 31,122 30,328
Changes In Assets And Liabilities:
Accounts Receivable ......................... 481,682 (13,378)
Inventories .................................. 196,350 (129,230)
Prepaid Expenses ............................. 16,031 0
Other Assets ................................. (2,948) 24,595
Accounts Payable ............................. (87,910) 54,588
Accrued Expenses ............................. (3,665) 28,906
Customer Deposits ............................ (554,887) 290,958
Income Tax Payable ........................... 6,628 0
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Net Cash From Operating Activities ................ 144,822 304,616
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Cash Flows From Investing Activities:
Purchase Of Property And Equipment ............. 15,662 0
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Cash Flows From Financing Activities:
Stock Issued For Cash .............................. 0 625
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Net Cash From Financing Activities ................. 0 625
Net Increase (Decrease) In Cash ..................... 129,161 305,241
Cash At Beginning Of Period ......................... 999,255 386,422
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Cash At End Of Period ...............................$ 1,128,416 $ 691,663
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5
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED
March 31
2001 2000
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Cash Flows From Operating Activities:
Net Income ........................ $ 207,479 $ 56,384
Adjustments To Reconcile Income To Net
Cash From Operating Activities:
Depreciation And Amortization ..... 69,249 72,858
Changes In Assets And Liabilities:
Accounts Receivable ............. 889,031 (584,073)
Inventories ..................... (237,819) (130,294)
Prepaid Expenses ................ 30,051 --
Other Assets .................... 7,670 31,442
Accounts Payable ................ (186,821) (47,803)
Accrued Expenses ................ 95,272 (1,825)
Customer Deposits ............... (751,080) 418,790
Tax Payable ..................... 8,528 --
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Net Cash From Operating Activities ... 131,560 (184,521)
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Cash Flows From Investing Activities:
Purchase Of Property And Equipment (44,652) (9,343)
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Cash Flows From Financing Activities:
Stock Issued For Cash ............... 13,125 625
Repayment Of Line Of Credit ......... (500,000) (1,500,000)
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Net Cash Used By Financing Activities (486,875) 1,499,375
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Net Decrease In Cash ................. (399,967) (1,693,239)
Cash At Beginning Of Period .......... 1,528,383 2,327,925
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Cash At End Of Period ................ $ 1,128,416 $ 691,663
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6
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION - CONTINUED
NOTES TO CONDENSED FINANCIAL STATEMENTS FOR
MARCH 31, 2001
(UNAUDITED)
ITEM 1 - Notes
1. General
The accompanying unaudited consolidated financial statements of Radiant
Technology Corporation (the "Company") have been prepared in accordance
with the instructions to Form 10-Q and do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. These statements should be
read in conjunction with the consolidated financial statements and notes
thereto included in the Company's Form 10-K for the year ended September
30, 2000.
In the opinion of management, all adjustments, consisting of normal
recurring adjustments, considered necessary for the fair presentation have
been included. Operating results for interim periods are not necessarily
indicative of results expected for a full year.
ITEM 2 - Management's Discussion and Analysis of Financial Condition and
Results of Operation
All statements, other than statements of historical fact, included in this
Form 10-Q are, or may be deemed to be, "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934. Such forward-looking
statements involve assumptions, known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements contained in this Form 10-Q.
Financial Condition, Liquidity and Capital Resources
The Company's cash and equivalents decreased from $1,528,383 at September
30, 2000 to $1,128,416 at March 31, 2001. This decrease of $399,967 is
attributable to cash generated from operating activities of $131,560, use
of cash in investing activities of $44,652 and use of cash of $486,875 in
the repayment of financing activities.
Management believes that the expected revenues from operations,
supplemented by the cash on hand, will be sufficient to provide adequate
cash to fund anticipated working capital and other cash needs during the
remainder of the year.
7
Results of Operations
Sales were approximately $1,777,458 and $991,211 for the three months ended
March 31, 2001 and 2000, respectively, an increase of 79.3%. The increase
in revenues from 2000 to 2001 resulted principally from increased shipments
to solar cell manufacturers.
The Company's overall cost of sales increased as a percentage of sales for
the three months ended March 31, 2001 to 71.9%, compared to the three
months ended March 31, 2000 of 67.4%. The increase is attributed to
additional costs incurred in managing an influx of orders and streamlining
the process flow to manage continued increases in equipment orders. Net
income increased to 3.5% of sales for the quarter ending March 31, 2001
compared to 1.8% for the quarter ending March 31, 2000 due to reductions in
operating expenses to 25.8% of sales from 31.5% of sales in the prior year.
Year-to-date sales were $3,477,681 and $1,857,389 for the six months ended
March 31, 2001 and 2000, respectively, an increase of 87.2%. The increase
in revenues from 2000 to 2001 resulted principally from increased shipments
to solar cell manufacturers and additional sales to existing customers.
The Company's overall cost of sales increased as a percentage of sales for
the six months ended March 31, 2001 to 67.2%, compared to the six months
ended March 31, 2000 of 63.2%. The increase is attributed to additional
costs incurred in managing an influx of orders and streamlining the process
flow to manage continued increases in equipment orders. Net income
increased to 6.0% of sales for the six months ending March 31, 2001
compared to 3.0% for the comparable period ending March 31, 2000 due to
reductions in operating expenses to 27.5% of sales from 34.7% of sales in
the prior year.
RADIANT TECHNOLOGY CORPORATION
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 6. Reports on 8-K
None.
8
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.
RADIANT TECHNOLOGY CORPORATION
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(Registrant)
Dated: May 15, 2001 /s/ L. R. McNamee
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Lawrence R. McNamee
Chairman of the Board,
Chief Operating Officer,
Chief Executive Officer