Included in their financials, nobody reads the detail
USTI
Year 2000
Until just a few years ago, most computer programs were written to define an applicable year by using two digits for the year instead of four. The effect on a computer program that was written in such a way is to define a year that is entered with the two digits "00" as 1900 rather than 2000. When the Year 2000 arrives, any computer programs that are written in this manner will either have to be modified to accept a date in the 21st century or the programs will have to be replaced. This issue not only affects the Company's internal automated information systems but also has an effect on the software products the Company develops, supports and markets to its customers. The Company has evaluated the computer programs that it utilizes internally for its information systems and has determined that substantially all of its systems are currently Year 2000 compliant. The Company's asystTM product line is Year 2000 compliant. The Company's customers that are utilizing its LegacyTM and QuestTM product lines are being offered a Year 2000 compliant version of certain packages within these product lines or are being encouraged to migrate to the Company's products that are Year 2000 compliant. Based on currently available information, the Company does not anticipate that the costs to address the issues related to the Year 2000 will have a material adverse impact on the Company's financial condition, results of operations or liquidity.
Forward-Looking Statements
This report contains forward-looking statements, other than historical facts, which reflect the view of Company's management with respect to future events. Such forward-looking statements are based on assumptions made by and information currently available to the Company's management. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from such expectations include, without limitation, the ability of the Company i) to generate levels of revenue and adequate cash flows from its operations to support and maintain its current cost structure and ii) to develop and deliver products that are competitive, accepted by its markets and are not rendered obsolete by changing technology. The forward-looking statements contained herein reflect the current views of the Company's management with respect to future events and are subject to these factors and other risks, uncertainties and assumptions relating to the operations, results of operations and financial position of the Company. The Company assumes no obligation to update the forward-looking statements or to update the reasons actual results could differ from those contemplated by such forward-looking statements.
ITEM 7. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
United Systems Technology, Inc. and Subsidiary
Index to Consolidated Financial Statements
And Supplementary Schedules
Pages
Reports of Independent Accountants F-1
Consolidated Financial Statements
Balance sheets as of December 31, 1997 and 1996 F-2 Statements of operations for the years
ended December 31, 1997 and 1996 F-3
Statements of stockholders' equity for the years
ended December 31, 1997 and 1996 F-4
Statements of cash flows for the years
ended December 31, 1997 and 1996 F-5
Notes to Consolidated Financial Statements F-6 to F-17
Report of Independent Certified Public Accountants
Board of Directors and Shareholders United Systems Technology, Inc.
We have audited the accompanying consolidated balance sheets of United Systems Technology, Inc. and subsidiary as of December 31, 1997 and 1996, and the related consolidated statements of operations, stockholders' equity and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion. |
