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Radiant Technology Corp – ‘10-Q’ for 12/31/02

On: Friday, 2/14/03, at 3:58pm ET · For: 12/31/02 · Accession #: 310235-3-2 · File #: 0-10125

  As Of                Filer                Filing    For·On·As Docs:Size

 2/14/03  Radiant Technology Corp           10-Q       12/31/02    1:14K

Quarterly Report — Form 10-Q
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        10Q-12/31/02                                           9     28K

Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Legal Proceedings Management's Discussion and Analysis of Financial Condition and Results of Operation Management's Discussion and Analysis of Financial Condition and Results of Operations - Continued Notes Reports on 8-K
1	1st Page - Filing Submission
6	Item 1 -. Notes
"	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation
7	Item 2 -. Management's Discussion and Analysis of Financial Condition and Results of Operations - Continued
8	Item 1. Legal Proceedings
"	Item 6. Reports on 8-K

10-Q 1st Page of 9 TOC ↑Top Previous Next ↓Bottom Just 1st
 
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 December 31, 2002

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 December 31, 2002)

1 

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RADIANT TECHNOLOGY CORPORATION

 INDEX

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

Condensed Balance Sheet- December, 2002                       
        and September 30, 2002 (unaudited)...............................3

Condensed Statement of Operations - Three Months              
        Ended December 31, 2002 and 2001 (unaudited).....................4

Condensed Statement of Cash Flows - Three Months              
        Ended December 31, 2002 and 2001 (unaudited).....................5

      Notes to Condensed Financial Statements (unaudited)................6

Management's Discussion and Analysis of Financial             
         Condition and Results of Operation..............................6-7-8

Part II Other Information:                                                      

      Legal Proceedings and Exhibits.....................................8

      Signature Page.....................................................9

2 

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

ASSETS
------

                                               December 31        September 30
                                              2002                2002
                                               -----------         -----------
Current Assets                                                                  
   Cash                                        $   158,052         $ 2,069,784
   Accounts receivable                             548,363             449,162
   Inventories                                     645,706             980,362
   Prepaid expenses                                 22,461              31,841
   Deferred income taxes                           263,500             263,500
                                               -----------         -----------
     Total Current Assets                        1,638,082           3,794,649

Machinery and equipment                             286,113             321,873 
Other assets                                         12,748              11,670 
                                               -----------         -----------
   Total Assets                                $ 1,936,943         $ 4,128,192
                                               ===========         ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

Current Liabilities                                                             
   Short Term Debt                             $       -           $ 1,916,000
   Accounts payable                                366,385             364,341
   Accrued expenses                                143,109             199,440
   Customer deposits                               319,920             159,509
                                               -----------         -----------

   Total Current Liabilities                       829,414           2,639,290
                                               -----------         -----------

Stockholders' Equity                                                            
   Common stock, no par value                    1,167,608           1,167,608
   Retained earnings                               (60,079)            321,294
                                               -----------         -----------

   Total stockholders' equity                    1,107,529           1,488,902
                                               -----------         -----------

Total Liabilities and Stockholders' Equity      $ 1,936,943         $ 4,128,192 
                                               ===========         ===========

3 

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

                                                Three Months Ended
                                               December 31
                                               -----------
                                                2002                2001
                                               -----------         -----------

   Net sales                                   $   921,518         $   655,139

   Cost of sales                                   869,254             515,746
                                               -----------         -----------

   Gross profit                                     52,264             139,393

Operating expenses:                                                     
   Selling, general and administrative             396,982             486,453
     Depreciation and amortization                  36,473              31,046
                                               -----------         -----------
     Total operating expenses                      433,455             517,499
                                               -----------         -----------
    Income (loss) from operations                  (381,191)           (378,106)

   Interest income, net                               (183)              6,238
                                               -----------         -----------

    Income (loss) before tax provision             (381,374)           (371,868)

   Provision for income taxes                         --                   800
                                               -----------         -----------

    Net income (loss)                           $  (381,374)        $  (372,668)
                                               ===========         ===========

Basic earning per share:                                                
------------------------                                                

    Net income (loss)                           $     (0.18)        $     (0.18)
                                               ===========         ===========

Diluted earning per share:                                              
--------------------------                                              

    Net income (loss)                           $     (0.18)        $     (0.18)
                                               ===========         ===========

   Basic weighted average shares outstanding     2,081,678           2,081,678
                                               ===========         ===========

   Diluted weighted average shares outstanding   2,081,678           2,081,678
                                               ===========         ===========

4 

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

                                                  Three Months Ended
                                                   December 31
                                                   -----------
                                                  2002                2001
                                               -----------         -----------
Cash flows from operating activities:                                           
    net income (loss)                           $  (381,374)        $  (372,668)
Adjustments to reconcile income to net                                          
cash from operating activities:                                         
   Depreciation and amortization                    36,473              31,046
Changes in assets and liabilities:                                      
     Accounts receivable                            (99,201)           (191,575)
    Inventories                                    334,656             119,649
    Prepaid expenses & other assets                   7,589              (1,392)
Increase (decrease) in:                                                         
    Accounts payable                                  2,044            (161,032)
    Accrued expenses                                (56,330)            (36,675)
   Customer deposits                               160,411             323,946
                                               -----------         -----------

Net cash provided by (used by) operating              4,268            (288,701)
                                               -----------         -----------

Cash flows used by investing activities:                                        
    Purchase of property and equipment                 --                (8,207)
                                               -----------         -----------

Cash flows from financing activities:                                           
 Short-term debt                              (1,916,000)               --
                                                -----------        -----------

Net cash (used in) financing activities          (1,916,000)               --   
                                                -----------        -----------

Net increase (decrease) in cash                  (1,911,732)           (296,908)
Cash at beginning of period                       2,069,784           1,118,630 
                                               -----------         -----------
Cash at end of period                           $   158,052         $   821,722 
                                               ===========         ===========

5 

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RADIANT TECHNOLOGY CORPORATION
PART I FINANCIAL INFORMATION - CONTINUED
 NOTES TO CONDENSED FINANCIAL STATEMENTS FOR
 DECEMBER 31, 2002
 (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 of operations  during the past seven  quarters were adversely
       affected by the sustained decline of the electronics markets.  Backlog of
       orders to ship have  declined  during fiscal 2002 and 2001 by 60% and 74%
       respectively  as compared  the  respective  prior year.  The  significant
       reduction in capital spending by our customers and aggressive  pricing by
       desperate  competitors,  among other factors contributed to this decline.
       The  Company's  order  backlog at  December  31,  2002 was  approximately
$676,000.                                                         

6 

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

     o Our gross  margins,  which  historically  have been at near the 35% mark,
       have  declined  over the past two years to 13.6% in the first  quarter of
       2003  from  24.1%  for  all of  2002  and  26.6%  for  all of  2001.  The
       significant  decline in demand and coupled  with the  development  of new
       product lines has led to significant  inventory charges and manufacturing
inefficiencies, which adversely affected our gross margin rates.  

     o Our cash  position  has also  declined  significantly  as a result of the
       operating  losses in the first quarter of 2003 of $(381,374),  $(756,284)
       for all of 2002  and  $(157,210)  in 2001.  Cash at the end of the  first
quarter of 2003 is $158,052.                                      

     During this extended  market weakness we have worked to improve our product
     offering,  improve manufacturing  methods,  strengthen our management staff
     and aggressively  pursue new markets.  If capital spending does not improve
     or  improves  at a  slower  pace  than  we  anticipate,  our  revenues  and
profitability will continue to be adversely affected.                 

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

     The Company's cash and  equivalents  decreased from $2,069,784 at September
     30, 2002 to $158,052 at December 31, 2002.  This  decrease of $1,911,732 is
     primarily   attributable  to  the  repayment  of  the  short-term  loan  of
     $1,916,000. The net loss of $(381,784) was offset by a reduction in working
capital of $349,169, plus depreciation of $36,473.                    

     Management  believes  that  planned  actions  for  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.                    

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

Three Months Ended December 31, 2002                                  
------------------------------------                                  

     Net Sales were  $921,518 and  $655,139 for the three months ended  December
     31, 2002 and 2001,  respectively,  or an increase of 41%.  The  increase in
revenues resulted principally from one shipment amounting to $309,000.

     The cost of sales as a  percentage  of sales  for the  three  months  ended
     December  31,  2002 was 94%,  as  compared  to 79% 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 was
     produced at a loss,  providing a significant  affect on the current quarter
     margins.  This system included  several newly designed  features and higher
     costs were incurred in the initial design and  manufacture.  Future systems
of this type will have profitable margins.                            

7 

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

     Selling,  general and administrative  expenses were $285,706 in the current
     quarter as compared to $486,453 in the year earlier  period,  a decrease of
     41%. This decrease was mainly due to reduced  payroll and related  expenses
in engineering, research and development and sales and marketing.     

     Cash  generated by operating  activities  was $4,268 and $(288,701) for the
     three months ended December 31, 2002 and 2001 respectively. Cash flows from
     operating losses for the three months ended December 31, 2002 and 2001 were
     roughly equivalent  $(381,374) and $(372,668)  respectively,  however, cash
     provided by  reductions  in working  capital  levels in the  quarter  ended
     December  31,  2002 were  $349,169  as  compared to $52,921 for the quarter
ended December 31, 2001.                                              

RADIANT TECHNOLOGY CORPORATION
 PART II - OTHER INFORMATION

Item 1.     Legal Proceedings                                                   

None.                                                   

Item 6.     Reports on 8-K                                                      

None.                                                   

8 

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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:  February 11, 2003                            /s/ L. R. McNamee          
                                             -----------------------------------
                                           Lawrence R. McNamee
                                              Chairman of the Board,
                                               Chief Executive Officer

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘10-Q’ Filing	Date	First	Last	Other Filings

Filed on:	2/14/03
	2/11/03	9
For Period End:	12/31/02	1	8
	9/30/02	2	7	10-K, NT 10-K, PRE 14A
	12/31/01	2	8	10-Q, NT 10-K, NT 10-Q
				List all Filings

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Filing Submission 0000310235-03-000002 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Radiant Technology Corp – ‘10-Q’ for 12/31/02

On: Friday, 2/14/03, at 3:58pm ET · For: 12/31/02 · Accession #: 310235-3-2 · File #: 0-10125

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Quarterly Report — Form 10-Q
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