Radiant Technology Corp – ‘10-Q’ for 3/31/03

On:  Tuesday, 5/20/03, at 7:30pm ET   ·   As of:  5/21/03   ·   For:  3/31/03   ·   Accession #:  310235-3-9   ·   File #:  0-10125

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Quarterly Report   —   Form 10-Q
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        10Q-3-31-03                                           10     34K 

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10-Q
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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 March 31, 2003

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 March 31, 2003)

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RADIANT TECHNOLOGY CORPORATION

 INDEX

Part I Financial Information:...........................................Page No.

Condensed Balance Sheet - March 31, 2003                      
        and December, 2002 (unaudited)...................................3

Condensed Statement of Operations - Three Months              
        Ended March 31, 2003 and 2002 (unaudited)........................4

Condensed Statement of Operations - Six Months                
        Ended March 31, 2003 and 2002 (unaudited)........................5

Condensed Statement of Cash Flows - Three Months              
        Ended March 31, 2003 and 2002 (unaudited)........................6

Condensed Statement of Cash Flows - Six Months                
        Ended March 31, 2003 and 2002 (unaudited)........................7

      Notes to Condensed Financial Statements (unaudited)................8

Management's Discussion and Analysis of Financial             
        Condition and Results of Operation...............................8-9

Part II Other Information:                                                      

      Legal Proceedings and Exhibits....................................10

      Signature Page....................................................10

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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION
CONDENSED BALANCE SHEETS
 (UNAUDITED)

ASSETS

                                             March 31,        December 31,
                                           -------------     -------------
                                           2003               2002
                                           -------------     -------------

Current Assets:                                                                 
Cash and equivalents                         $60,730           $158,052 
Accounts Receivable                          181,301            548,363 
Inventories                                  424,985            645,706 
Prepaid expenses                              55,043             22,461 
Deferred taxes                               263,519            263,500 
                                         ----------         ----------

Total Current Assets                         985,578          1,638,082 

Property and equipment                           280,734            286,113     
Other Assets                                        -                12,748     
                                         ----------         ----------

Total Assets                              $1,266,312         $1,936,943 
                                         ==========         ==========

 LIABILITIES AND STOCKHOLDERS EQUITY

Current Liabilities:                                                            
Accounts payable                            $331,668           $366,385 
Accrued expenses                             153,048            143,109 
Customer deposits                            337,797            319,920 
                                          ----------         -----------
Total Liabilities                            822,513            826,414 
                                          ----------         -----------

Commitments & Contingencies                         -                  -        

Stockholder's Equity                                                            
Common stock, no par value                     1,167,608          1,167,608     
Retained earnings                               (723,809)           (60,079)    
                                         ----------         ----------

Total Stockholders' Equity                                                      

Total Liabilities & Stockholders Equity       $1,266,312         $1,936,943     
                                         ==========         ==========

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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENTS OF OPERATIONS
 (UNAUDITED)

                                            Three Months Ended March 31,
                                            ----------------------------------
                                             2003               2002
                                            ---------------     --------------

Net sales                                      $318,761           $603,776      

Cost of sales                               583,826            452,115  

                                            ---------------     --------------
Gross profit                                   (265,065)           151,661      
                                            ---------------     --------------

Operating expenses:                                                             
Selling, general and administrative         362,353            305,426  
Depreciation and amortization                36.630             31,191  
                                            ---------------     --------------

Total operating expenses                        398,983            336,617      
                                            ---------------     --------------

Income/(loss) from operations                  (664,048)          (184,956)     

Interest income, net                            320              2,712  
                                            ---------------     --------------

Income/(loss) before provision/(benefit)                                        
for income taxes                            (663,728)          (182,244)  

Provision (benefit) for income taxes           -                  -     
                                            ---------------     --------------

Net income/(loss)                             $(663,728)         $(182,244)     
                                            ===============     ==============

Basic earnings (loss) per share                  $(0.32)            $(0.09)     
                                            ===============     ==============

Diluted earnings (loss) per share                $(0.32)            $(0.09)     
                                            ===============     ==============

Basic number of common shares outstanding     2,081,678          2,081,678      
                                            ===============     ==============

Diluted number of common shares outstanding   2,081,678          2,081,678      
                                            ===============     ==============

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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
CONDENSED STATEMENTS OF OPERATIONS
 (UNAUDITED)

                                      Six Months Ended March 31,
                                          ----------------------------------
                                         2003               2002
                                          ---------------     --------------

Net sales                                        $1,240,279         $1,256,035  

  Cost of sales                                 1,453,080            956,048

                                            ---------------     --------------
Gross profit                                       (212,801)           299,987  
                                            ---------------     --------------

Operating expenses:                                                             
  Selling, general and administrative             759,335            800,813
  Depreciation and amortization                    73,104             62,237
                                            ---------------     --------------
Total operating expenses                            832,439            863,050  
                                            ---------------     --------------

Income/(loss) from operations                    (1,045,240)          (563,063) 

  Interest income, net                                138              8,950
                                            ---------------     --------------

Income/(loss) before provision/(benefit)                                        
  for income taxes                              (1,045,102)          (554,113)

Provision (benefit) for income taxes              -                   - 
                                            ---------------     --------------

Net income/(loss)                               $(1,045,102)         $(554,113) 
                                            ===============     ==============

Basic earnings (loss) per share                      $(0.50)            $(0.27) 
                                            ===============     ==============

Diluted earnings (loss) per share                    $(0.50)            $(0.27) 
                                            ===============     ==============

Basic number of common shares outstanding         2,081,678          2,081,678  
                                            ===============     ==============

Diluted number of common shares outstanding       2,081,678          2,081,678  
                                            ===============     ==============

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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
 CONDENSED STATEMENT OF CASH FLOWS
 (UNAUDITED)

                                              Three Months Ended March 31,
                                              ----------------------------------
                                                 2003               2002
                                              ---------------     --------------

Cash flows from operating activities:                                           

Net income/(loss)                                  $(663,729)         $(182,244)
Adjustments to reconcile net income/(loss) to                           
net cash provided by operating activities:                              
       Depreciation and amortization                 36,629             31,191

Changes in assets and liabilities:                                              
(Increase) decrease in:                                                 
       Accounts receivable                          367,062            262,050
        Inventory                                    220,721           (448,422)
       Prepaid expenses & other assets              (32,601)            38,343
(Increase) decrease in:                                                 
       Accounts payable                             (34,717)            54,017
       Accrued expenses                               9,940             25,966
        Customer deposits                             17,877           (249,236)
                                                   ----------         ----------

Net cash provided by/(used in) operating                                        
    activities                                       (78,818)          (468,335)
                                                    ----------        ----------

Cash flows from investing activities                                            
        Capital expenditures                         (18,502)           (11,312)
                                                    ----------        ----------

Cash flows from financing activities                                            
     Issuance of common stock                        -                   -
     Repayment of short term debt                    -                   -
                                                    ----------        ----------

Net cash provided by financing activities                                       
                                                    ----------        ----------

Net increase (decrease) in cash and equivalents      (97,320)          (479,647)

Cash and equivalents, beginning of period            158,051            821,722 
                                                    ----------        ----------

Cash and equivalents, end of period                  $60,731           $342,075 
                                                    ==========        ==========

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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION-CONTINUED
 CONDENSED STATEMENT OF CASH FLOWS
 (UNAUDITED)

                                                Six Months Ended March 31,
                                                 -------------------------------
                                                   2003               2002
                                                 ------------       ------------

Cash flows from operating activities:                                           

Net income/(loss)                                  $(1,045,103)       $(554,913)
Adjustments to reconcile net income/(loss) to                           
net cash provided by operating activities:                              
       Depreciation and amortization                  (70,368)          62,237

Changes in assets and liabilities:                                              
(Increase) decrease in:                                                 
       Accounts receivable                            267,861           70,475
        Inventory                                      555,377         (328,773)
       Prepaid expenses & other assets                (23,221)          16,152
Deferred Taxes                                  20,000          
(Increase) decrease in:                                                 
        Accounts payable                               (32,673)        (107,015)
        Accrued expenses                               (46,391)         (10,709)
       Customer deposits                              178,288           74,710
                                                     ----------       ----------
Net cash provided by/(used in) operating activities   (216,230)        (757,836)
                                                     ----------       ----------

Cash flows from investing activities                                            
        Capital expenditures                           (33,385)         (18,719)
                                                     ----------       ----------

Cash flows from financing activities                                            
   Other Assets                                   156,562            -
   Repayment of short term debt                      -               -
                                                     ----------       ----------
Net cash provided by financing activities                                       
                                                     ----------       ----------

Net increase (decrease) in cash and equivalents        (93,053)        (776,555)

Cash and equivalents, beginning of year                153,784        1,118,630 
                                                     ----------       ----------

Cash and equivalents, end of period                    $60,731         $342,075 
                                                     ==========       ==========

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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION - CONTINUED
 NOTES TO CONDENSED FINANCIAL STATEMENTS FOR
MARCH 31, 2003
 (UNAUDITED)

ITEM 1 - Notes                                                                  

1.       General                                                                

         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, 2002.                                           

         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.                                  

Overview                                                      

As discussed in more detail throughout our MD&A:              

          o    Our results  for the three  months  ended  March 31,  reflect the
               continued  weakness in capital  spending in all of the markets we
               serve.  Workable  backlog at the end of December was $565,000 but
               improvement in March orders  received and orders  received at the
               end of April  have  more than  tripled  backlog  from  December's
               level.  Increased  quoting  on new  products  and new  markets in
               addition to traditional markets suggest  significant  improvement
               in market demand.  It is, however,  unclear as the moment if this
    demand level will be maintained beyond the short term.

          o    The low level of shipments has  significantly  impacted our gross
               margins.   The  monthly  shipment  volume  has  been  well  below
               break-even  levels and under utilized  capacity in production has
led to high levels of manufacturing inefficiency. 

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ITEM  2 -  Management's  Discussion  and Analysis of Financial  Condition and   
Results of Operations - Continued                         

          o    In order to fund the sharply higher volume of units to be shipped
               over the third quarter and the forecasted levels of shipments for
               the fourth quarter we are actively pursuing debt financing is the
               form of a revolving  line of credit.  As of this date we are very
               encouraged  by  the  reception  we  have  received  from  lending
institutions.                                     

     However,  if capital spending does not continue to improve or improves at a
     slower  pace  than we  anticipate,  our  revenues  and  profitability  will
continue to be severely affected.                                     

Financial Condition, Liquidity and Capital Resources                  
----------------------------------------------------                  

     The Company's cash and plus receivables  decreased from $706,414 at the end
     of December to $242,032 at the end of March.  This  decrease of $464,382 is
     primarily   attributable   to  the  collection  of   outstanding   accounts
receivable.                                                           

     Management  believes that planned actions for obtaining a line of credit in
     addition to significant  cost cuts,  aggressive  collections of outstanding
     receivable balances,  improved manufacturing methods and improved inventory
     management  systems will be  sufficient  to provide  adequate  cash to fund
     anticipated  working  capital and other cash needs during the  remainder of
     the year.  However,  if we are unable to successfully obtain debt financing
     and market  volume  does not  continue  to improve,  further  cost  cutting
measures are planned.                                                 

Results of Operations                                                 
---------------------                                                 

Three Months Ended March 31, 2003                                     

     Net Sales were  $318,761  and $603,776 for the three months ended March 31,
     2003 and 2002, respectively.  The decrease in revenues resulted principally
     from the low levels of  orders,  which  averaged  less than $170k per month
through Feb.                                                          

     The Gross Profit as a percentage  of sales for the three months ended March
     31, 2003 was (83%), as compared to 25% in the prior year second quarter. In
     addition  to the low  volume of  shipments,  February  shipments  generated
     exceptionally  high,  nonrecurring,  unfavorable cost variances.  The total
     February  variance accounts for 70% of the total negative gross margin over
the three months in quarter two.                                      

     Selling,  general and administrative  expenses were $362,353 in the current
     quarter as compared to $305,426 in the year earlier period,  an increase of
     18%.  This  increase  was due to higher  payroll  and  related  expenses in
engineering, research and development and sales and marketing.        

     Cash  generated  was ($97,320)  and  $(479,647)  for the three months ended
     March 31,  2003 and 2002  respectively.  In the  quarter  ended  March 2003
     operating losses were ameliorated by cash generated from changes in working
     capital compared to operating losses in the quarter ended March 31, 2002 in
addition to working capital changes that generated ($286,091) in cash.

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RADIANT TECHNOLOGY CORPORATION
 PART II - OTHER INFORMATION

Item 1.   Legal Proceedings                                                     
------------------                                          

None.                                                       

Item 6.   Reports on 8-K                                                        

          Item 5. Other Events and  Regulation  FD  Disclosure:  On February 26,
          2003, Radiant Technology  Corporation filed a Form 15 with the SEC for
          the  purpose  of  terminating  its  duty to  file  reports  under  the
Securities Exchange Act of 1934 as amended.                 

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:     May 20, 2003                            /s/ L. R. McNamee            
                                            ------------------------------------
                                           Lawrence R. McNamee
                                              Chairman of the Board,
                                               Chief Executive Officer

10

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘10-Q’ Filing		Date		First		Last			Other Filings
Filed as of:		5/21/03
Filed on:		5/20/03		10
For Period End:		3/31/03		1		9			8-K,  NT 10-Q
		2/26/03		10					15-12G
		9/30/02		8					10-K,  NT 10-K,  PRE 14A
		3/31/02		2		9			10-Q
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