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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-K
(Mark One)
[X] Annual Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934 [Fee Required]
for the fiscal year ended March 29, 1997
or
[] Transition Report pursuant Section 13 or 15(d)
of the Securities Exchange Act of 1934 [No Fee Required]
for the transition period from ___________ to ___________
Commission File No. 33-9875
______________________
BOSTON ACOUSTICS, INC.
(Exact name of registrant as specified in its charter)
Massachusetts 04-2662473
(State or other jurisdiction (I.R.S. employer
of incorporation or identification no.)
organization)
300 Jubilee Drive
Peabody, Massachusetts 01960
(Address of Principal Executive Offices) (Zip Code)
(508) 538-5000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
None.
Securities registered pursuant to Section 12(g) of the Act:
6,000,000 shares of Common Stock ($.01 Par Value)
(Title of Class)
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 by check mark if the disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-K or any amendment to this Form 10-K. []
The aggregate market value of the voting stock held by nonaffiliates of the
registrant was $48,958,827 as of June 20, 1997.
There were 3,291,366 shares of Common Stock issued and outstanding as of June
20, 1997.
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DOCUMENTS INCORPORATED BY REFERENCE
(1) Registrant's Annual Report to Stockholders for the fiscal year ended
March 29, 1997 (Items 5, 6, 7, 8 and 14 (a)(1))
(2) Proxy Statement for Registrant's Annual Meeting of Stockholders to be
held on August 12, 1997 (Items 10, 11, 12 and 13)
BOSTON ACOUSTICS, INC.
Securities and Exchange Commission
Item Number and Description Page
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PART I
ITEM 1. Business 1
ITEM 2. Properties 7
ITEM 3. Legal Proceedings 7
ITEM 4. Submission of Matters to a Vote of Security Holders 7
PART II
ITEM 5. Market for Registrant's Common Equity
and Related Stockholder Matters 8
ITEM 6. Selected Financial Data 8
ITEM 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
ITEM 8. Financial Statements and Supplementary Data 8
ITEM 9. Changes in and Disagreements with Accounts on
Accounting and Financial Disclosure 8
PART III
ITEM 10. Directors and Executive Officers of the Registrant 9
ITEM 11. Executive Compensation 9
ITEM 12. Security Ownership of Certain Beneficial
Owners and Management 9
ITEM 13. Certain Relationships and Related Transactions 9
PART IV
ITEM 14. Exhibits, Financial Statement Schedules and
Reports on Form 8-K 10
SIGNATURES 12
INDEX TO FINANCIAL STATEMENT SCHEDULES F-1
Inasmuch as the calculation of shares of the registrant's voting stock held
by non-affiliates requires a calculation of the number of shares held by
affiliates, such figure, as shown on the cover page hereof, represents the
registrant's best good faith estimate for purposes of this annual report on
Form 10-K, and the registrant disclaims that such figure is binding for any
other purpose. The aggregate market value of Common Stock indicated is based
upon $23.25, the price at which the Common Stock was last sold on June 20,
1997 as reported by The Nasdaq Stock Market. All outstanding shares
beneficially owned by executive officers and directors of the registrant or
by any shareholder beneficially owning more than 10% of registrant's Common
Stock, as disclosed herein, were considered for purposes of this disclosure
to be held by affiliates.
i
Part I
Item 1. Business
Boston Acoustics, Inc. ("the Company") engineers, manufactures and markets
moderately-priced, high-quality loudspeaker systems for use in home audio and
video entertainment systems and in after-market automotive audio systems.
The Company believes that its products deliver better sound quality than
other comparably priced loudspeaker systems. Most of the Company's products
are assembled by the Company from purchased components, although certain
automotive speakers are manufactured by others according to Company
specifications. All of the Company's products and subassemblies, including
those supplied by outside sources, have been designed by the Company's
engineering department. Boston Acoustics' speakers are marketed nationwide
through selected audio and audio-video specialty dealers and through
distributors in certain foreign countries.
The Company was organized as a Massachusetts corporation in 1979 by Andrew G.
Kotsatos and former CEO, Francis L. Reed, who passed away in November 1996.
Its principal executive offices and manufacturing facilities are located at
300 Jubilee Drive, Peabody, Massachusetts.
Products
The Company operates in one business industry segment and has distinct
product lines as discussed below.
The Home Loudspeaker line consists of five bookshelf models currently ranging
in price from $150 to $420 per pair, three floor-standing systems currently
priced from $550 to $1400 per pair, two three-piece subwoofer/satellite
systems currently priced at $400 and $800 per system, and three powered
subwoofers priced at $400, $600 and $1200. Additional products for the home
theater market include four different center-channel speakers currently
ranging in price from $130 to $400 each. The Company also produces
magnetically shielded versions of most of its models and produces three
indoor/outdoor speaker systems (Voyager-Registered Trademark-,
Runabout-Registered Trademark- I, and Runabout-Registered Trademark- II)
currently priced from $200 to $400 per pair. The Company also produces a
complete THX-Registered Trademark- Home Theater speaker system priced at
$2,400.
The Designer Series line is a collection of speaker systems engineered for
flush mounting in the walls or ceilings of homes, businesses and recreational
vehicles. There are six models in the Designer Series line with prices
currently ranging from $130 to $500 per pair.
The Company has 38 models of automotive speakers with prices currently
ranging from $60 to $700 per pair. The automotive line includes high-quality
full-range replacement speakers, sophisticated component systems, and
subwoofers. The component systems permit flexible speaker placement and
provide sound rivaling that of fine home speakers. The automotive line
includes the CX Series, the
700 Series of plate speakers, the Boston Rally-TM- RC Series of component
speakers, the Boston Rally RX Coaxial Series, the Boston Rally RS Subwoofers and
Band-Pass enclosure systems, the Boston Rally RM Series, and the premium
performance ProSeries Speaker Systems.
New Products
During fiscal 1997 the Company added a number of new products, described below,
to supplement or replace those products which have matured, to increase
penetration of current markets, and to gain footholds in new markets.
During fiscal 1997 the Company introduced two THX-certified speakers--the VR14
center channel and VR35 floorstanding main--to its flagship THX line that
includes VRS Pro surrounds and the VR2000 powered subwoofer. This premier
system offers our highest quality of movie sound reproduction. The suggested
retail price for the VR14 is $600 and $1,300 for a pair of the VR35 speakers.
During fiscal 1997 the Company introduced the Micro Reference Series, an upgrade
of the discontinued SubSat Series. The Micro Reference Series consists of the
three-piece Micro80, the three-piece Micro90 and the four-piece Micro90t theater
system with suggested retail prices of $400, $800 and $1,000, respectively.
The Company supplemented its Video Reference Series with the addition of VRS
Micro diffuse-field surround speakers. The VRS Micro surrounds, which are also
compatible with the Compact Reference and Micro Reference Series, carry a
suggested retail price of $200 per pair.
During fiscal 1997 the Company expanded its automotive line of products with
several new introductions. The flagship ProSeries line of products was
augmented by the introduction of the ProSeries 6.43 automotive three-way
component system with a suggested retail of $700. The introduction of the RM6
and RM9 integrated two-way automotive speakers are specifically designed for
component performance in factory drop-in locations. The RM6 and RM9 carry
suggested retail prices of $249.95 and $299.95, respectively. The RX Series was
supplemented with the addition of the RX47 carrying a suggested retail of
$139.95.
During fiscal 1997 the Company introduced the Boston Rally Subwoofer Band-Pass
enclosure systems consisting of four models--the RS110B, RS112B, RS208B and
RS210B. The enclosures incorporate one or two Rally Subwoofers in a balanced
band-pass configuration for exceptional volume and true plug and play
convenience. The suggested retail prices range from $299.95 to $499.95 per
system.
In June 1996, the Company acquired the business of Snell Acoustics (Snell), a
manufacturer of high-quality speaker systems for traditional audio and home
theater use. Snell specializes in creating furniture-quality speakers for
discriminating customers. It has products in three ranges -- bookshelf
speakers, floorstanding systems, and THX home theater systems. Products range
from $480 per pair for small bookshelf speakers, to $45,000 per system for a
complete 7-speaker THX theater system with state-of-the-art digital room
correction.
2
Engineering and Development
The Company's engineering and development department is actively engaged in the
development of new products and manufacturing processes, the improvement of
existing products and the research of new materials for use in the Company's
products. The Company has designed all of its products and subassemblies,
including those supplied by outside sources.
The Company's engineering and development staff includes 38 full-time employees
and one outside consultant. During fiscal years 1997, 1996 and 1995 the Company
spent approximately $3,187,000, $2,497,000, and $2,046,000, respectively, for
engineering and development.
Marketing
The Company employs 17 salespersons and retains 12 manufacturer's
representatives who service the Company's dealer network. Boston Acoustics'
loudspeaker systems are distributed in the United States and Canada through
approximately 375 selected home dealers (some of whom have multiple outlets)
which are typically audio or audio-video specialty retailers. The Company sells
its automotive products through approximately 310 dealers located in the United
States and Canada including automotive sound specialty retailers and many of the
Company's home audio dealers. The Company's Designer Series speakers are sold
by many of its home audio dealers. The Company's dealers usually stock and sell
a broad variety of audio components including, in most cases, competing
loudspeaker lines. The Company seeks dealers who emphasize quality products and
who are knowledgeable about home and automotive entertainment products. One
dealer accounted for more than 10% of gross sales during fiscal year 1997.
Boston Acoustics' product lines are also exported to dealers in Canada and
through exclusive distributors in certain foreign countries, primarily in
Western Europe and Asia Pacific. Export sales accounted for approximately 22%
of net sales in fiscal 1995, 20% in fiscal 1996, and 21% in fiscal 1997. See
also Note 6 to Consolidated Financial Statements incorporated herein by
reference, pursuant to Part II, Item 8.
The Company emphasizes the high performance-to-price ratio of its speakers in
its advertising and promotion. Boston Acoustics believes that specialty
retailers can be effective in introducing retail customers to the high dollar
value of the Company's products. The Company directly supports its dealer
network with a cooperative advertising program and by providing Company prepared
advertisements and detailed product literature. In addition, the Company
advertises in national magazines including Stereo Review, Audio, Car Audio &
Electronics, Car Stereo Review, Video, Stereophile's Guide to Home Theater and
Audio Video International. During fiscal 1997 the Company spent approximately
$2,024,000 (4.0% of net sales) for advertising.
Competition
The Company competes primarily on the basis of performance, price and the
strength of its dealer organization.
The market for branded loudspeaker systems is served by many manufacturers,
both foreign and domestic. Many products are available over a broad price
range, and the market is highly fragmented and competitive. The Company
distributes its products primarily through specialty retailers where it
competes directly for space with other branded speaker manufacturers.
Loudspeaker systems produced by many of the Company's competitors can be
purchased by consumers through mass merchandisers, department stores,
mail-order merchants, and catalogue showrooms. The Company
3
believes it is more advantageous to distribute through specialty retailers who
provide sales support and service to consumers.
Boston Acoustics competes with a substantial number of branded speaker
manufacturers, including Bose Corporation, Infinity and JBL (divisions of Harman
International Industries), Polk Audio, Inc., and Klipsch and Associates, Inc.
Some of these competitors have greater technical and financial resources than
the Company and may have broader brand recognition than Boston Acoustics.
In addition to competition from branded loudspeaker manufacturers, the Company's
products compete indirectly with single name "rack systems". Rack systems
contain all the various components needed to form an audio system, and are sold
by Sony, Pioneer, Technics, Yamaha and many others. Rack systems are generally
sold through mass merchandisers and department stores, although many of the
Company's dealers also sell rack systems.
Manufacturing and Suppliers
Most of the Company's products are assembled by the Company from components
specially fabricated for the Company, although certain automotive speakers are
manufactured by others according to Company specifications.
The Company purchases materials and component parts from approximately 154
suppliers located in the United States, Canada, Western Europe and the Far
East. Although Boston Acoustics relies on single suppliers for certain parts,
the Company could, if necessary, develop multiple sources of supply for these
parts. The Company does not have long-term or exclusive purchase commitments
nor does the Company have written agreements with any of its inventory
suppliers. No supplier accounted for more than 10% of the Company's purchases
during fiscal year 1997.
Seasonality and Consumer Discretion
The home and automotive audio markets are both somewhat seasonal, with a
majority of home speaker retail sales normally occurring in the period October
through March and a majority of automotive speaker retail sales normally
occurring in the period April through October.
The Company's sales and earnings can also be affected by changes in the general
economy since purchases of home entertainment and automotive audio products,
including loudspeakers, are discretionary for consumers.
Patents and Trademarks
Boston Acoustics holds two United States patents which relate to certain
automotive speaker assemblies and cabinet design. The Company also has several
registered trademarks including Boston-Registered Trademark-, Boston
Acoustics-Registered Trademark-, Varimount-Registered Trademark-,
Magnaguard-Registered Trademark-, PowerVent-Registered Trademark-,
Tempo-Registered Trademark-, Voyager-Registered Trademark-,_and
Runabout-Registered Trademark-. Trademarks used by the Snell subsidiary include
Snell Acoustics, Snell Multimedia, Snell Music & Cinema and Room
Ready-Registered Trademark-. The Company believes that its growth, competitive
position and success in the marketplace are more dependent on its technical and
marketing skills and expertise than upon the ownership of patent and trademark
rights. There can be no assurance that any patent or trademark would ultimately
be proven valid if challenged.
4
Backlog
The Company currently has no significant backlog. The Company's policy is to
maintain sufficient inventories of finished goods to fill all orders within two
business days of receipt.
Warranties
Boston Acoustics warrants its home speakers to be free from defects in materials
and workmanship for a period of five years, its Designer Series speakers for a
period of one year and its automotive speakers for one year. Warranty costs
during fiscal 1997 were not significant.
Employees
As of June 20, 1997, the Company had 295 full-time employees who were engaged as
follows: 203 in production and materials management; 38 in engineering and
development; 34 in marketing and sales support; and 20 in administration.
None of the Company's employees are represented by a collective bargaining
agreement and the Company believes that its relations with its employees are
satisfactory.
5
Executive Officers of the Registrant
There is incorporated herein by reference the information concerning Andrew G.
Kotsatos, who is Chairman of the Board, Chief Executive Officer and Treasurer of
the Company, and Fred E. Faulkner, Jr., who is President and Chief Operating
Officer of the Company, from the Company's definitive Proxy Statement for its
Annual Meeting of Stockholders to be held on August 12, 1997, under the headings
"Proposal No. 1 -- Election of Directors", "Board of Directors", and "Certain
Transactions and Relationships". Information concerning the Company's other
executive officers as of June 20, 1997 is set forth below.
Name Age Title
Ira S. Friedman 37 Vice President - Marketing and President
Snell Acoustics
Moses A. Gabbay 52 Vice President - Engineering
Paul F. Reed 33 Vice President - Administrative Services
Debra A. Ricker-Rosato 41 Vice President - Finance
Robert L. Spaner 36 Vice President - Sales
Ira S. Friedman has served as Vice President - Marketing since February 1991 and
President of Snell Acoustics since June 1996. He joined the Company in 1989 as
Director of Marketing. In 1990 he became Director of Marketing and Sales. Mr.
Friedman was previously a marketing consultant for various advertising agencies,
including Vector Research and Celltronics. He holds an MBA degree from Harvard
Business School.
Moses A. Gabbay has been Vice President - Engineering since joining the Company
in 1981. Mr. Gabbay was previously Director of Engineering at Avid Corporation
and an acoustic engineer for Teledyne Acoustic Research.
Paul F. Reed was named Vice President - Administrative Services in May 1993. He
has been with the Company since its inception in 1979. From production and
shipping, Mr. Reed moved to sales in 1986 and, in 1989, became a Regional Sales
Manager. He was named Director of Administrative Services in 1990.
Debra A. Ricker-Rosato was named Vice President - Finance in May 1993. Prior to
joining the Company in October 1986 as Controller, Ms. Ricker-Rosato was
employed by Babco-Textron from 1975, a manufacturer of small aircraft engine
components. Her last position with Babco-Textron was that of Assistant
Controller. She holds an MSF degree from Bentley College.
Robert L. Spaner was named Vice President - Sales in May 1993. He joined the
Company in 1987 as a regional sales manager. In 1990 he became National Sales
Manager. Mr. Spaner was formerly employed by Kloss Video as Western Regional
Manager and worked six years in retail sales at Tweeter, Etc.
Each executive officer is elected for a term scheduled to expire at the meeting
of Directors following the Annual Meeting of Stockholders or until a successor
is duly chosen and qualified. There are no arrangements or understandings
pursuant to which any executive officer was or is to be selected for election or
reelection. There are no family relationships among any Directors or executive
officers, except that Paul F. Reed, an executive officer, and Lisa M. Mooney, a
director, are brother and sister.
6
Item 2. Properties
During fiscal 1995 and 1996, the Company purchased a total of three parcels of
land totaling 11 acres for approximately $1.4 million. This land was used to
construct the Company's new principal executive offices and manufacturing
facilities at 300 Jubilee Drive, Peabody, Massachusetts. Construction of the
150,000 square foot building began in June 1995 with occupancy taking place in
February 1996.
Snell Acoustics (Snell), a subsidiary of the Company, leases all of the
properties used in its business. Snell maintains its principal executive
offices and manufacturing facilities at 143 Essex Street, Haverhill,
Massachusetts. A total of 65,090 square feet of space is leased from an
unrelated party under an operating lease which expires in March 1999.
Item 3. Legal Proceedings
There are no material legal proceedings affecting the Company.
Item 4. Submission of Matters to a Vote of Security Holders
There were no matters submitted to a vote of shareholders during the fourth
quarter of fiscal 1997.
7
PART II
Item 5. Market for Registrant's Common Equity and Related Stockholder
Matters
The information required by this item is incorporated by reference to the
section entitled "Stock Market Activity" on page 16 in the Registrant's 1997
Annual Report to Stockholders, which is filed herewith as Exhibit 13.
Item 6. Selected Financial Data
The information required by this item is incorporated by reference to the
section entitled "Selected Financial Data" on page 15 in the Registrant's 1997
Annual Report to Stockholders, which is filed herewith as Exhibit 13.
Item 7. Management's Discussion and Analysis of Financial Condition
and Results of Operations
The information required by this item is incorporated by reference to the
section entitled "Management's Discussion and Analysis of Financial Condition
and Results of Operations" on pages 6 and 7 in the Registrant's 1997 Annual
Report to Stockholders, which is filed herewith as Exhibit 13.
Item 8. Financial Statements and Supplementary Data
The information required by this item is incorporated by reference to the
Consolidated Financial Statements at March 29, 1997 and notes thereto on pages 8
through 14 in the Registrant's 1997 Annual Report to Stockholders, which is
filed herewith as Exhibit 13.
Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure
None.
8
PART III
Item 10. Directors and Executive Officers of the Registrant
Pursuant to General Instruction G(3) of Form 10-K and Instruction 3 to Item
401(b), the information required by this item concerning executive officers,
including certain information incorporated herein by reference to the
information appearing in the Company's definitive Proxy Statement for its Annual
Meeting of Stockholders to be held on August 12, 1997 concerning Andrew G.
Kotsatos, who is the Chairman of the Board, Treasurer and Chief Executive
Officer of the Company, and Fred E. Faulkner, Jr., who is President and Chief
Operating Officer of the Company, is set forth in Part I, Item 1, hereof, under
the heading "Executive Officers of the Registrant" and information concerning
Directors, including Messrs. Kotsatos and Faulkner, is incorporated by reference
to the sections entitled "Proposal No. 1 -- Election of Directors",
"Compensation Interlocks and Insider Participation" and "Board of Directors" in
the Registrant's definitive Proxy Statement for its Annual Meeting of
Stockholders to be held August 12, 1997.
There is incorporated herein by reference to the discussion under "Compliance
with Section 16(a) of the Securities Exchange Act of 1934" in the Company's
definitive Proxy Statement for its Annual Meeting of Stockholders to be held
August 12, 1997 the information with respect to delinquent filings of reports
pursuant to Section 16(a) of the Securities Exchange Act of 1934.
Item 11. Executive Compensation
The information required by this item is incorporated by reference to the
sections entitled "Executive Compensation" in the Registrant's definitive Proxy
Statement for its Annual Meeting of Stockholders to be held August 12, 1997.
Item 12. Security Ownership of Certain Beneficial Owners and
Management
The information required by this item is incorporated by reference to the
section entitled "Principal and Management Stockholders" in the Registrant's
definitive Proxy Statement for its Annual Meeting of Stockholders to be held
August 12, 1997.
Item 13. Certain Relationships and Related Transactions
The information required by this item is incorporated by reference to the
section entitled "Certain Relationships and Transactions" in the Registrant's
definitive Proxy Statement for its Annual Meeting of Stockholders to be held
August 12, 1997.
9
PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K.
(a) The following documents are included as part of this report:
(1) Financial Statements
The following consolidated financial statements are incorporated by
reference to the Registrant's 1997 Annual Report to Stockholders:
Report of Independent Public Accountants.
Consolidated Balance Sheets as of March 29, 1997 and March 30, 1996.
Consolidated Statements of Income for the three years ended March 29, 1997.
Consolidated Statements of Shareholders' Equity for the three years ended
March 29, 1997.
Consolidated Statements of Cash Flows for the three years ended March 29,
1997.
Notes to Consolidated Financial Statements.
(2) Financial Statement Schedules
The following financial statement schedules are filed as part of this
report and should be read in conjunction with the consolidated financial
statements:
Report of Independent Public Accountants on Schedules
Schedule I -- Valuation and Qualifying Accounts
Other financial schedules have been omitted because they are not required
or because the required information is given in the Consolidated Financial
Statements or notes thereto.
10
(3) Listing of Exhibits
Exhibits
3.A. - Articles of Organization (1)
3.B. - Amendment to Articles of Organization (1)
3.C. - Second Amendment to Articles of Organization (1)
3.D. - Bylaws (1)
4.A. - Specimen Share Certificate (1)
10.A*+ - 1996 Stock Plan adopted by Boston Acoustics, Inc. on
February 20, 1996, as amended
10.B.+ - 1986 Incentive Stock Option Plan adopted by Boston
Acoustics, Inc. on October 15, 1986, as amended (2)
10.C. - Lease between Boston Acoustics, Inc. and Newburyport
Turnpike Associates Limited Partnership dated August 24,
1988 relating to office and manufacturing facilities (3)
10.D. - First Amendment between Boston Acoustics, Inc. and
Newburyport Turnpike Associates Limited Partnership dated
March 23, 1994 relating to office and manufacturing
facilities (4)
10.E*# - Purchase Agreement dated March 27, 1997 by and between
Gateway 2000, Inc. and Boston Acoustics, Inc.
10.F* - Boston Acoustics, Inc. Warrant naming Gateway 2000, Inc.
as registered holder.
10.G*# - Letter of Agreement dated January 14, 1997 by and between
Gateway 2000, Inc. and Boston Acoustics, Inc.
13. * - 1997 Annual Report to Shareholders
21. * - Subsidiaries of the Registrant
23. * - Consent of Independent Public Accountants
27. * - Financial Data Schedule
99. - "Safe Harbor" Statement under Private Securities Litigation
Reform Act of 1995 (5)
* Indicates an exhibit which is filed herewith.
+ Indicates an exhibit which constitutes an executive compensation plan.
# Indicates that portions of the exhibit have been omitted pursuant to a
request for confidential treatment.
________________
(1) Incorporated by reference to the similarly numbered exhibits in Part II of
File No. 33-9875.
(2) Incorporated by reference to the similarly numbered exhibit in Item 14 of
the Company's Annual Report on Form 10-K for the year ended March 27, 1993.
(3) Incorporated by reference to the similarly numbered exhibit in Item 14 of
the Company's Annual Report on Form 10-K for the year ended March 25, 1989.
(4) Incorporated by reference to the similarly numbered exhibit in Item 14 of
the Company's Annual Report on Form 10-K for the fiscal year ended March 26,
1994.
(5) Incorporated by reference to the similarly numbered exhibit in Item 14 of
the Company's Annual Report on Form 10-K for the fiscal year ended March 30,
1996.
(b) Reports on Form 8-K:
No reports on Form 8-K were filed by the Registrant during the last quarter
covered by this report, and no other such reports were filed subsequent to March
29, 1997 through the date of this report.
11
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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, in the City of Peabody,
Commonwealth of Massachusetts, on the 20th day of June 1997.
BOSTON ACOUSTICS, INC.
(Registrant)
BY: s/Andrew G. Kotsatos
--------------------------
Andrew G. Kotsatos
Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the Registrant and
in the capacities and on the dates indicated.
Signatures Capacities Date
s/Andrew G. Kotsatos Director, Chief Executive 6/20/97
- ----------------------- ----------
Andrew G. Kotsatos Officer and Treasurer
s/Fred E. Faulkner, Jr. Director, President and 6/20/97
- ----------------------- ----------
Fred E. Faulkner, Jr. Chief Operating Officer
s/Debra A. Ricker-Rosato Vice President and 6/20/97
- ------------------------ ---------
Debra A. Ricker-Rosato Chief Accounting Officer
s/George J. Markos Director 6/20/97
- ----------------------- ---------
George J. Markos
s/Lisa M. Mooney Director 6/20/97
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Lisa M. Mooney
12
SCHEDULE I
BOSTON ACOUSTICS, INC. AND SUBSIDIARIES
VALUATION AND QUALIFYING ACCOUNTS
Allowance for Doubtful Accounts
Balance, Charged to
Beginning of Costs and Other Balance, End
For the fiscal years ended Year Expenses Additions(1) Deductions(2) of Year
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March 29, 1997 $ 307,000 $ 84,000 $ 60,000 $ (40,000) $ 411,000
---------- --------- --------- ----------- ----------
---------- --------- --------- ----------- ----------
March 30, 1996 $ 207,000 $ 134,000 $ - $ (34,000) $ 307,000
---------- --------- --------- ----------- ----------
---------- --------- --------- ----------- ----------
March 25, 1995 $ 173,000 $ 104,000 $ - $ (70,000) $ 207,000
---------- --------- --------- ----------- ----------
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(1) Addition arising through the acquisition of Snell Acoustics, Inc.
(2) Amounts deemed uncollectible net of recoveries of previously reserved
amounts.