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, 2002
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 June 30, 2002)
1
RADIANT TECHNOLOGY CORPORATION
INDEX
Part I Financial Information:...........................................Page No.
Condensed Balance Sheet- June 30, 2002
and September 30, 2001 (unaudited)...................................3
Condensed Statement of Operations - Three Months
Ended June 30, 2002 and 2001 (unaudited).............................4
Condensed Statement of Operations - Nine Months
Ended June 30, 2002 and 2001 (unaudited).............................4
Condensed Statement of Cash Flows - Three Months
Ended June 30, 2002 and 2001 (unaudited).............................5
Condensed Statement of Cash Flows - Nine Months
Ended June 30, 2002 and 2001 (unaudited).............................6
Notes to Condensed Financial Statements (unaudited)...................7
Management's Discussion and Analysis of Financial
Condition and Results of Operation.................................7-8
Part II Other Information:
Legal Proceedings and Exhibits........................................9
Signature Page........................................................9
2
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION
CONDENSED BALANCE SHEETS
(UNAUDITED)
ASSETS
June 30 September 30
2002 2001
----------- -----------
Current Assets
Cash $ 198,971 $ 1,118,630
Accounts Receivable - Net 867,689 407,814
Inventories 901,668 845,823
Prepaid Expenses 37,805 53,467
Deferred Income Taxes 263,500 283,500
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Total Current Assets 2,269,633 2,709,234
Machinery and Equipment - Net 194,120 252,243
Other Assets 5,298 5,035
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Total Assets $ 2,469,051 $ 2,966,512
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 437,370 $ 274,582
Accrued Expenses 191,162 216,080
Customer Deposits 101,568 200,663
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Total Current Liabilities 730,100 691,325
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Stockholders' Equity
Common Stock, no par value 1,167,608 1,167,608
Retained Earnings 571,343 1,107,579
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Total Stockholders' Equity 1,738,951 2,275,187
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Total Liabilities and Stockholders' Equity $ 2,469,051 $ 2,966,512
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3
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30 June 30
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2002 2001 2002 2001
---- ---- ---- ----
Net Sales $1,743,088 $1,029,034 $2,999,123 $4,506,715
Cost of Sales 1,297,153 773,458 2,253,201 3,161,459
========= ======= ========= =========
--------- ------- --------- ---------
Gross Profit 445,935 255,576 745,922 1,345,256
Operating Expenses:
Selling, general and administrative 399,438 232,807 1,199,468 1,068,089
Depreciation and amortization 29,096 31,586 92,116 100,835
------ ------ ------ -------
Total Operating Expenses 428,534 264,393 1,291,584 1,168,924
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Income (Loss) from Operations 17,401 (8,817) (545,662) 176,332
Interest Income, net 1,277 13,014 10,227 43,874
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Income (Loss) Before Tax Provision 18,678 4,197 (535,435) 220,206
Provision for Income Taxes - - 800 8,528
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Net Income (Loss) $18,678 $4,197 $(536,235) $211,678
======== ======== ========= =========
Basic Earning per Share:
Net Income (Loss) $ 0.01 $ 0.00 $ (0.26) $ 0.10
======= ======= ======== =======
Diluted Earning per Share:
Net Income (Loss) $ 0.01 $ 0.00 $ (0.26) $ 0.10
======= ======= ======== =======
Basic Weighted Average 2,081,678 2,081,678 2,081,678 2,026,550
shares outstanding ========= ========= ========= =========
Diluted Weighted Average 2,205,659 2,250,578 2,081,678 2,195,450
shares outstanding ========= ========= ========= =========
4
RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
Three Months Ended
June 30,
--------
2002 2001
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Cash Flows From Operating Activities:
Net Income (Loss) $ 18,678 $ 4,197
Adjustments To Reconcile Income To Net
Cash From Operating Activities:
Depreciation And Amortization 29,879 31,588
Changes In Assets And Liabilities:
Accounts Receivable (530,350) 99,699
Inventories 272,928 24,371
Prepaid Expenses (1,810) (4,128)
Other Assets -- --
Accounts Payable 269,803 67,440
Accrued Expenses (14,209) (97,123)
Customer Deposits (173,805) (37,501)
Income Tax Payable -- --
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Net Cash Provided By (Used By)
Operating Activities (128,886) 88,543
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Cash Flows Used By Investing Activities:
Purchase Of Property And Equipment (14,218) (73,426)
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Cash Flows From Financing Activities: -- --
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Net Increase (Decrease) In Cash (143,104) 15,117
Cash At Beginning Of Period 342,075 1,128,416
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Cash At End Of Period $ 198,971 $ 1,143,533
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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
June 30,
-----------
2002 2001
---- ----
Cash Flows From Operating Activities:
Net Income (Loss) $ (536,235) $ 211,678
Adjustments To Reconcile Income To Net
Cash From Operating Activities:
Depreciation And Amortization 92,116 100,835
Changes In Assets And Liabilities:
Accounts Receivable (459,875) 988,730
Inventories (55,845) (213,448)
Prepaid Expenses 15,681 22,150
Other Assets (1,340) 11,443
Deferred Taxes 20,000 --
Accounts Payable 162,788 (119,381)
Accrued Expenses (24,918) (1,851)
Customer Deposits (99,095) (788,581)
Tax Payable -- 8,528
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Net Cash Provided By (Used By)
Operating Activities (886,723) 220,103
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Cash Flows Used By Investing Activities:
Purchase Of Property And Equipment (32,936) (118,078)
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Cash Flows Used By Financing Activities:
Stock Issued For Cash -- 13,125
Repayment Of Line Of Credit -- (500,000)
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Net Cash Used By Financing Activities -- (486,875)
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Net Decrease In Cash (919,659) (384,850)
Cash At Beginning Of Period 1,118,630 1,528,383
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Cash At End Of Period $ 198,971 $ 1,143,533
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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION - CONTINUED
NOTES TO CONDENSED FINANCIAL STATEMENTS FOR
JUNE 30, 2002
(UNAUDITED)
ITEM 1 - Notes
1. General
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The accompanying unaudited condensed 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, 2001. 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 $1,118,630 at September
30, 2001 to $198,971 at June 30, 2002. This significant decrease of
$919,659 is primarily attributable to the net loss and the increase in
accounts receivable. The purchase of equipment accounted for the cash used
in investing activities of $32,936.
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. The Company's order backlog at June 30, 2002 was
approximately $1,000,000.
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ITEM 2 - Management's Discussion and Analysis of Financial Condition and Results
of Operations - Continued
Results of Operations
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Three Months Ended March 31, 2002
---------------------------------
Net Sales were $1,743,088 and $1,029,034 for the three months ended June
30, 2002 and 2001, respectively, or an increase of 69%. The increase in
revenues resulted principally from an increase in orders booked in the
second quarter of the current fiscal year, including one order that
represented approximately 35% of sales for the current quarter.
The cost of sales as a percentage of sales for the three months ended June
30, 2002 was 74%, as compared to 75% in the prior year third quarter.
Although sales increased significantly in the quarter, the one order that
represented more than one-third of sales for the quarter had a higher cost
of sales that affected the current quarter margins. This system was a
newly designed product for the semiconductor industry, and higher costs
were incurred in its initial design and manufacture. Future systems of
this type are expected to have higher margins.
Selling, general and administrative expenses were $399,438 in the current
quarter as compared to $232,807 in the year earlier period, an increase of
72%. This increase was mainly due to increased payroll and related
expenses in engineering, research and development and sales and marketing.
The profit in the current year period was the result of increased
revenues, which offsets the increased selling, engineering and research
and development expenses.
Nine Months Ended June 30, 2002
-------------------------------
Net sales were $2,999,123 and $4,506,715 for the nine months ended June
30, 2002 and 2001, respectively, a decrease of 33%. The decrease in
revenues in the first nine months of 2002 as compared to 2001 resulted
primarily from reduced orders from the semiconductor industry.
Cost of sales increased as a percentage of sales for the nine months ended
June 30, 2002 to 75%, compared to the 70% recorded in the nine months
ended June 30, 2001 The increase is partially attributed to fixed
manufacturing expenses for facilities and labor that represent a higher
percentage of net sales because the net sales are significantly lower.
Additionally, the higher costs of one significant order in the third
quarter also affected the year-to-date margins.
Selling, general and administrative expenses were $1,199,468 in the
current year period, as compared to $1,068,089 in the year earlier nine
months. The increase of 12 % was primarily due to increased payroll and
related costs in engineering, research and development, sales and
marketing. The net loss for the nine months ending June 30, 2002 was
primarily the result of the decline in revenues.
8
RADIANT TECHNOLOGY CORPORATION
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 6. Reports on 8-K
None.
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: August 10, 2002 /s/ L. R. McNamee
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Lawrence R. McNamee
Chairman of the Board,
Chief Executive Officer
(Principal Executive Officer
and Principal Financial Officer)
The written statements of our Chief Executive Officer and Chief Financial
Officer required pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, accompanied the filing of this
report by correspondence to the Securities and Exchange Commission.
9