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R:\Year-end 2001\10Q0601.doc
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 June 30, 2001
Commission File Number 0-10125
Radiant Technology Corporation
(Exact name of registrant as specified in its charter)
California 95-2800355
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) identification number)
1335 South Acacia Avenue, Fullerton, CA 92831
(Address of principal executive offices)(Zip Code)
(714) 991 - 0200
(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
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
- -------------------------- ---------
(Class) (Outstanding at June 30, 2001)
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RADIANT TECHNOLOGY CORPORATION
INDEX
Part I Financial Information:...........................................Page No.
Condensed Balance Sheets- June 30, 2001
and September 30, 2000 (unaudited)...............................3
Condensed Statements of Operations - Three Months
Ended June 30, 2001 and 2000 (unaudited)...........................4
Condensed Statements of Operations - Nine Months
Ended June 30, 2001 and 2000 (unaudited).........................4
Condensed Statements of Cash Flows - Nine Months
Ended June 31, 2001 and 2000 (unaudited).........................5
Notes to Condensed Financial Statements (unaudited)................6
Management's Discussion and Analysis of Financial
Condition and Results of Operation................................6
Part II Other Information:
Legal Proceedings and Exhibits.....................................7
Signature Page.....................................................8
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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION
CONDENSED BALANCE SHEETS
(UNAUDITED)
ASSETS
June 30, September 30,
2001 2000
---- ----
Current Assets
Cash $1,143,533 $1,528,383
Accounts Receivable - Net 855,688 1,844,418
Inventories 902,581 689,133
Prepaid Expenses 20,261 42,411
Deferred Income Taxes 170,000 170,000
Total Current Assets 3,092,063 4,274,345
Machinery and Equipment - Net 282,913 265,671
Other Assets - 11,443
Total Assets $3,374,976 $4,551,459
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Notes Payable $ - $500,000
Accounts Payable 277,783 397,164
Accrued Expenses 252,903 254,754
Customer Deposits 178,688 967,269
Income Tax Payable 21,528 13,000
Total Current Liabilities 730,902 2,132,187
Stockholders' Equity
Common Stock, no par value 1,167,608 1,154,483
Retained Earnings 1,476,466 1,264,789
Total Stockholders' Equity 2,644,074 2,419,272
Total Liabilities and Stockholders' Equity $3,374,976 $4,551,459
The accompanying notes are an integral part of these financial statements.
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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30, June 30,
-------------------------------- -----------------------------------
2001 2000 2001 2000
------------- ------------- ------------- -------------
Net Sales $1,029,034 $1,013,601 $4,506,715 $2,870,990
Cost of Sales 773,458 731,939 3,161,459 1,908,574
Gross Profit 255,576 281,662 1,345,256 962,416
Operating Expenses:
Selling, general and administrative 195,277 202,042 881,606 687,042
Research and Development 69,116 73,658 287,318 229,237
Total Operating Expenses 264,393 275,700 1,168,924 916,279
Income from Operations (8,817) 5,962 176,332 46,137
Interest Income, net 13,014 8,972 43,874 25,182
Income Before Tax Provision (Benefit) 4,197 14,934 220,206 71,319
Provision (Benefit) for Income Taxes - - 8,528 -
Net Income $4,197 $14,934 $211,678 $71,319
======== ======== ========= =========
Basic Earning per Share:
Net Income $0.00 $0.01 $0.10 $0.04
Diluted Earning per Share:
Net Income $0.00 $0.01 $0.09 $0.03
Basic Weighted Average
shares outstanding 2,081,678 1,905,678 2,026,550 1,905,678
Diluted Weighted Average
shares outstanding 2,250,578 2,254,264 2,195,450 2,254,664
The accompanying notes are an integral part of these financial statements
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RADIANT TECHNOLOGY CORPORATION
PART 1 FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
June 30,
2001 2000
---- ----
Cash Flows From Operating Activities:
Net Income $211,678 $71,319
Adjustments To Reconcile Income To Net
Cash From Operating Activities:
Depreciation And Amortization 100,835 174,065
Changes In Assets And Liabilities:
Accounts Receivable 988,730 (609,817)
Inventories (213,448) (256,909)
Prepaid Expenses 22,150 4,605
Other Assets 11,443 -
Accounts Payable (119,381) (19,717)
Accrued Expenses (1,851) (50,756)
Customer Deposits (788,581) 676,933
Tax Payable 8,528 -
Net Cash From Operating Activities 220,103 (10,277)
Cash Flows From Investing Activities:
Purchase Of Property And Equipment (118,078) (75,308)
Cash Flows From Financing Activities:
Stock Issued For Cash 13,125 625
Repayment Of Line Of Credit (500,000) (1,500,000)
Net Cash Used By Financing Activities (486,875) 1,499,375
Net Decrease In Cash (384,850) (1,584,960)
Cash At Beginning Of Period 1,528,383 2,384,902
Cash At End Of Period $ 1,143,533 $ 799,942
The accompanying notes are an integral part of these financial statements
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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION - CONTINUED
NOTES TO CONDENSED FINANCIAL STATEMENTS FOR
JUNE 30, 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 $1,143,533 at June 30, 2001. This decrease of $384,850 is
attributable to cash generated from operating activities of $220,103, use
of cash in investing activities of $118,078 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.
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Results of Operations
Sales were approximately $1,029,000 and $1,013,600 for the three months
ended June 30, 2001 and 2000, respectively, an increase of 1.5%.
Year-to-date sales were $4,506,700 and $2,871,000 for the nine months ended
June 30, 2001 and 2000, respectively, an increase of 57.0%. The increase in
revenues from 2000 to 2001 resulted principally from increased shipments to
customers developed in prior periods.
The Company's overall cost of sales increased as a percentage of sales for
the three months ended June 30, 2001 to 75.2%, compared to the three months
ended June 30, 2000 of 72.2%. The increase is attributed to a higher mix of
lower margin products. Net income decreased to 0.4% of sales for the
quarter ending June 30, 2001 compared to 1.5% for the quarter ending June
30, 2000 due to the lower gross profit margin more than offsetting lower
operating expenses compared to the prior year.
The Company's overall cost of sales increased as a percentage of sales for
the nine months ended June 30, 2001 to 70.1%, compared to the nine months
ended June 30, 2000 of 66.5%. 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 4.7% of sales for the nine months ending June 30, 2001
compared to 2.5% for the comparable period ending June 30, 2000 due to
reductions in operating expenses to 25.9% of sales from 31.9% 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.
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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
(Registrant)
Dated: August 15, 2001 /s/ L. R. McNamee
Lawrence R. McNamee
Chairman of the Board,
Chief Operating Officer,
Chief Executive Officer
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