Just a reminder,i see here a lot of people talking about the book value being 2.5-3 but if we look carefully we see that the majority
of the asset side of the balance sheet is not liquid.Most of their receivbles are tied up to their line of credits therefore we can not realy assume that as a "real" source of cash(21 mill).Inventory, Who knows,they may have noncurrent sitting in thr whare house(That 21 mill) Togther only this items represnt the majority of their book value with out considering all the other asset (those assets could be worth substaintially less or more ..Who the hell knows..??
This is one of the most cmplicated statement i have ever seen ..with so many notes and contingencies this is a night mare...
they should have long time cleaned this up..
This is a partial copy of their latest 10-q
JULY 31, 1997 JANUARY 31, 1997
------------- ----------------
(UNAUDITED)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and equivalents $ 2,634 $ 4,055
Restricted cash (Notes B and E) 1,896 1,744
Accounts receivable, net of reserve for doubtful accounts $1,059 (Note E) 21,649 19,090
Inventory (Notes B and E) 21,475 21,835
Other receivables (Notes C and O) 2,992 985
Prepaid expenses and other current assets 1,321 1,239
------------ ------------
TOTAL CURRENT ASSETS 51,967 48,948
------------ ------------
PROPERTY AND EQUIPMENT, NET (Notes B, D, E and F) 16,106 15,417
------------ ------------
OTHER ASSETS
Purchased technology, net (Notes A and B) 2,485 7,588
Excess of cost over net assets acquired, net (Notes A and B) 6,984 1,464
Capitalized software, net (Note B) 2,569 2,005
Other assets (Notes K and Q) 9,213 3,054
------------ ------------
TOTAL OTHER ASSETS 21,251 14,111
------------ ------------
TOTAL ASSETS $ 89,324 $ 78,476
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Short-term debt (Note E) $ 12,449 $ 11,151
Current maturities of long-term debt (Note F) 1,345 1,492
Accounts payable 18,519 18,706
Accrued liabilities 8,478 5,029
Other current liabilities (Note A) 712 2,737
Income taxes payable (Note M) 260 235
------------ ------------
TOTAL CURRENT LIABILITIES 41,763 39,350
------------ ------------
Long-term debt and capital lease obligations (Notes F and H) 3,531 3,919
Deferred income taxes (Note M) 295 299
Other liabilities -- 44
------------ ------------
TOTAL LIABILITIES 45,589 43,612
------------ ------------
COMMITMENTS AND CONTINGENCIES (Notes A, H and I)
Redeemable common stock (Note A) -- 1,994
STOCKHOLDERS' EQUITY (Note J)
Preferred stock, $.01 par value; 27 shares authorized; cumulative dividends;
19 shares issued and outstanding, $20,610 liquidation preference including
accumulated dividends at July 31, 1997; 41 shares issued and outstanding,
$19,578 liquidation preference at January 31, 1997 1 1
Common stock, $.10 par value; 20,000 shares authorized; 14,354 shares issued
and 14,351 shares outstanding at July 31, 1997; 10,978 shares issued and
10,975 shares outstanding at January 31, 1997 1,435 1,098
Additional paid-in capital 71,610 49,246
Accumulated deficit (29,133) (17,297)
Treasury stock, 3 shares, at cost (178) (178)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 43,735 32,870
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 89,324 $ 78,476
============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE> 4
OSICOM TECHNOLOGIES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, except per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JULY 31 JULY 31
------------------------- -------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
NET SALES $ 32,649 $ 27,477 $ 65,281 $ 45,631
COST OF SALES 22,250 23,172 44,868 35,296
---------- ---------- ---------- ----------
GROSS PROFIT 10,399 4,305 20,413 10,335
---------- ---------- ---------- ----------
OPERATING EXPENSES
Selling and marketing 5,017 3,325 9,088 5,721
Engineering, research and development 1,883 1,509 3,373 2,776
General and administrative 4,885 2,552 7,937 4,077
Purchased in-process research and development (Note A) -- 13,653 -- 13,653
Other operating expenses (Notes A and B) 11,026 1,279 11,493 1,182
---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 22,811 22,318 31,891 27,409
---------- ---------- ---------- ----------
INCOME (LOSS) FROM OPERATIONS (12,412) (18,013) (11,478) (17,074)
---------- ---------- ---------- ----------
OTHER INCOME (CHARGES)
Investment income 153 289 253 137
Interest expense (530) (1,104) (964) (1,442)
Gain on disposal of assets -- -- 426 --
Other income (charges) 36 75 (57) 84
---------- ---------- ---------- ----------
TOTAL OTHER INCOME (CHARGES) (341) (740) (342) (1,221)
---------- ---------- ---------- ----------
INCOME (LOSS) BEFORE INCOME TAXES (12,753) (18,753) (11,820) (18,295)
PROVISION FOR INCOME TAXES (Note M) -- 80 16 83
---------- ---------- ---------- ----------
NET INCOME (LOSS) $ (12,753) $ (18,833) $ (11,836) $ (18,378)
========== ========== ========== ==========
INCOME (LOSS) PER COMMON SHARE (Note N)
ACCRUED UNDECLARED DIVIDENDS 38 38 75 75
NET INCOME (LOSS) APPLICABLE
TO COMMON SHARES $ (12,791) $ (18,871) $ (11,911) $ (18,453)
========== ========== ========== ==========
PRIMARY
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING (RESTATED, IN THOUSANDS) 12,618 6,961 12,009 6,373
NET INCOME (LOSS) PER COMMON SHARE: $ (1.01) $ (2.71) $ (0.99) $ (2.90)
========== ========== ========== ==========
FULLY DILUTED
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING (RESTATED) n/a n/a n/a n/a
NET INCOME (LOSS) PER COMMON SHARE: n/a $ n/a n/a n/a
========== ========== ========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE> 5
OSICOM TECHNOLOGIES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JULY 31
-------------------------
1997 1996
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (11,836) $ (18,378)
---------- ----------
Adjustments to reconcile net loss to net cash used in operating activities:
Intangible assets valuation allowances (Notes A and B) 8,530 --
Purchased research and development (Note A) -- 12,320
Depreciation and amortization 2,329 724
Accounts receivable and inventory reserves (1,571) 705
Account and note receivable recoveries 154 --
Debt issuance costs reducing proceeds recorded as interest expense -- 582
Expenses paid through issuances of securities 121 224
Gain on disposals of fixed assets (419) --
Unrealized losses (gains) in investment securities -- (90)
Changes in assets and liabilities net of effects of business entity acquisitions:
Increase in restricted cash (152) (129)
(Increase) decrease in accounts receivable (2,477) 816
Decrease in inventories 1,849 1,938
Increase in other current assets (76) (3,806)
Decrease in accounts payable (187) (532)
Increase in accrued expenses 3,492 585
Increase (decrease) in other current liabilities (4) 118
---------- ----------
NET CASH USED IN OPERATING ACTIVITIES (247) (4,923)
---------- ----------
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of property and equipment (4,349) (4,628)
Capitalized software development costs (Notes B and D) (2,446) (928)
Proceeds from disposal of fixed assets 729 --
Purchase of other assets (Note A) 28 (827)
Cash outlays for acquired companies in excess of cash acquired (Note A) (14) (3,779)
Other receivables (Notes C and O) (2,537) (488)
---------- ----------
NET CASH USED IN INVESTING ACTIVITIES (8,589) (10,650)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of convertible preferred stock (Note J) 6,175 15,616
Proceeds from issuance of common stock (Note K) 5,528 --
Proceeds from issuance of convertible debentures (Note G) -- 16,831
Redemption of preferred stock (Notes A and J) -- (6,269)
Proceeds from issuance of short-term debt, net of repayments (Note E) 1,298 (485)
Proceeds from long-term debt (Note F) -- 2,996
Repayment of long-term debt (Note F) (535) (1,407)
Repayment of acquisition liabilities (Note A) (3,274) --
Repayment of liability due on cashless warrant exercise (Note K) (1,567) --
Proceeds from stock option exercises (Note L) 28 328
Other (238) 37
---------- ----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 7,415 27,647
---------- ----------
INCREASE IN CASH AND CASH EQUIVALENTS (1,421) 12,074
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 4,055 910
---------- ----------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 2,634 $ 12,984
========== ==========
</TABLE>
See accompanying notes to consolidated financial statements. |
