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Ikos Systems Inc – ‘10-Q’ for 3/30/96

As of: Monday, 5/13/96 · For: 3/30/96 · Accession #: 898430-96-1783 · File #: 0-18623

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

 5/13/96  Ikos Systems Inc                  10-Q        3/30/96    3:31K                                    Donnelley R R & S… 05/FA

Quarterly Report — Form 10-Q
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                      12     61K 
 2: EX-11.1     Computation of Earnings Per Share                      1      5K 
 3: EX-27       Financial Data Schedule                                2      6K

10-Q — Quarterly Report
Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Exhibits and Reports on Form 8-K Financial Statements Financial Statements PAGE Management's Discussion and Analysis of Financial Condition and Results of Operations Not Applicable Signatures
1	1st Page - Filing Submission
2	Item 1:. Financial Statements PAGE
3	Item 1. Financial Statements
7	Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
10	Items 1-5. Not Applicable
"	Item 6. Exhibits and Reports on Form 8-K
12	Signatures

10-Q 1st Page of 12 TOC ↑Top Previous Next ↓Bottom Just 1st
 
================================================================================

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

------------------- 

FORM 10-Q 

(Mark One)                                                                      
[X]                 Quarterly Report Pursuant to Section 13 or 15(d) of the     
Securities Exchange Act of 1934 for the quarter ended March 30, 1996 or         
[   ]               Transition Report Pursuant to Section 13 or 15(d) of the    
Securities Exchange Act of 1934 for the transition period from __________ to    
__________                                                                      

COMMISSION FILE NUMBER 0-18623                                                  

------------------- 

IKOS SYSTEMS, INC.
(Exact name of registrant as specified in its charter)

DELAWARE                                        77-0100318            
(State or other jurisdiction of             (I.R.S. Employer          
incorporation or organization)             Identification No.)        

19050 PRUNERIDGE AVE., CUPERTINO, CA             95014                
(Address of principal executive offices)       (zip code)             

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 
(408) 255-4567

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 $.01 PAR VALUE                        7,264,000              
---------------------------                                               
     (Title of Class)                   (Outstanding as of March 30, 1996)

================================================================================

10-Q 2nd Page of 12 TOC 1st Previous Next ↓Bottom Just 2nd
IKOS SYSTEMS, INC.
FORM 10-Q 
QUARTER ENDED MARCH 30, 1996

INDEX 
----- 

Part I:  Financial Information                                                  

                                                                [Download Table]


Item 1:   Financial Statements                                          
                                                                    PAGE
                                                                        
          Consolidated Balance Sheets at                                
            March 30, 1996 and September 30, 1995..............      3  

          Consolidated Statements of Income                             
            for the three and six months ended                          
            March 30, 1996 and April 1, 1995...................      4  

          Consolidated Statements of Cash Flows                         
            for the six months ended                                    
            March 30, 1996 and April 1, 1995...................      5  

          Notes to Consolidated Financial Statements...........      6  

 Item 2:    Management's Discussion and Analysis                        
            of Financial Condition and Results of Operations...      8  

Part II:  Other Information                                             

     Item 6:  Exhibits and Reports on Form 8-K ................     10  
     Signatures................................................     12  

2 

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PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS                                                    

IKOS SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS 
(in thousands, except per share amounts)

                                                        [Enlarge/Download Table]


                                                                March 30,   September 30, 
                                                                  1996           1995     
                                                               -----------  --------------
                                                                                          
                                                               (Unaudited)             (1)
    ASSETS                                                                                
Current assets:                                                                           
 Cash and cash equivalents....................................   $ 13,166        $  7,305 
 Short-term investments.......................................      9,616             450 
 Accounts receivable (net of allowances for                                               
  doubtful accounts of $221 and $171, respectively)...........      3,857           6,046 
 Inventories..................................................      2,121           1,328 
 Prepaid expenses and other current assets....................        280             271 
                                                                 --------        -------- 
   Total current assets.......................................     29,040          15,400 
Equipment and leasehold improvements:                                                     
 Office and evaluation equipment..............................      3,197           2,730 
 Machinery and equipment......................................      5,131           4,985 
 Leasehold improvements.......................................        303             287 
                                                                 --------        -------- 
                                                                    8,631           8,002 
   Less allowances for depreciation and amortization..........     (6,292)         (6,363)
                                                                 --------        -------- 
                                                                    2,339           1,639 
Other assets..................................................      1,455             113 
                                                                 --------        -------- 
                                                                 $ 32,834        $ 17,152 
                                                                 ========        ======== 

    LIABILITIES AND STOCKHOLDERS' EQUITY                                                  
Current liabilities:                                                                      
 Accounts payable.............................................   $  2,719        $  1,613 
 Accrued payroll and related expenses.........................      1,427           1,195 
 Accrued commissions..........................................        186             697 
 Income taxes payable.........................................        275             188 
 Other accrued liabilities....................................        168             480 
 Deferred maintenance revenues................................      3,971           3,030 
 Current portion of long-term debt............................        450             688 
                                                                 --------        -------- 
   Total current liabilities..................................      9,196           7,891 

Long-term debt, less current portion..........................        800           1,300 
Accrued rent..................................................        248             251 

Stockholders' equity:                                                                     
 Preferred stock, $.01 par value; 10,000 shares authorized,                               
  none issued or outstanding..................................         --              -- 
 Common stock, $.01 par value; 25,000 shares authorized,                                  
  7,264 and 5,886 issued and outstanding, respectively........         73              59 
 Additional paid-in capital...................................     38,115          27,034 
 Accumulated deficit..........................................    (15,598)        (19,383)
                                                                 --------        -------- 
   Total stockholders' equity.................................     22,590           7,710 
                                                                 --------        -------- 
                                                                 $ 32,834        $ 17,152 
                                                                 ========        ======== 

(1)  These amounts have been derived from audited financial statements          

See notes to consolidated financial statements. 

3 

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IKOS SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF INCOME 
(in thousands, except per share amounts)
(Unaudited) 

                                                        [Enlarge/Download Table]


                                           Three Months Ended       Six Months Ended   
                                         ----------------------  ----------------------
                                         March 30,    April 1,   March 30,    April 1, 
                                            1996        1995        1996        1995   
                                         ----------   ---------  ----------   ---------
                                                                                       
Net revenues:                                                                          
  Product...............................   $ 9,332      $5,504     $16,971     $10,534 
  Maintenance...........................     1,822       1,176       3,460       2,254 
                                           -------      ------     -------     ------- 
       Total net revenues...............    11,154       6,680      20,431      12,788 

Cost of revenues:                                                                      
  Product...............................     2,066       1,447       3,983       2,761 
  Maintenance...........................       331         216         550         546 
                                           -------      ------     -------     ------- 
       Total cost of revenues...........     2,397       1,663       4,533       3,307 
                                           -------      ------     -------     ------- 

Gross profit............................     8,757       5,017      15,898       9,481 

Operating expenses:                                                                    
  Research and development..............     1,727       1,035       3,268       1,954 
  Sales and marketing...................     3,417       2,686       6,911       5,268 
  General and administrative............     1,034         551       1,723       1,034 
                                           -------      ------     -------     ------- 
       Total operating expenses.........     6,178       4,272      11,902       8,256 
                                           -------      ------     -------     ------- 
Income from operations..................     2,579         745       3,996       1,225 

Other income (expense):                                                                
  Interest income.......................       285          26         482          49 
  Interest expense......................       (24)        (25)        (42)        (63)
  Other income..........................        30          29          59          58 
                                           -------      ------     -------     ------- 
       Total other income...............       291          30         499          44 
                                           -------      ------     -------     ------- 

Income before income taxes..............     2,870         775       4,495       1,269 
Provision for income taxes..............       460          60         710         106 
                                           -------      ------     -------     ------- 
Net income..............................   $ 2,410      $  715     $ 3,785     $ 1,163 
                                           =======      ======     =======     ======= 

Net income per share....................     $0.31       $0.12       $0.49       $0.20 
                                           =======      ======     =======     ======= 

Common and common equivalent shares                                                    
  used in computing per share amounts...     7,843       6,011       7,681       5,897 
                                           =======      ======     =======     ======= 


See notes to consolidated financial statements. 

4 

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IKOS SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS 
Increase (decrease) in cash and cash equivalents in thousands 
(Unaudited) 

                                                                [Download Table]


                                                             Six Months Ended   
                                                          ----------------------
                                                          March 30,    April 1, 
                                                             1996        1995   
                                                          ----------   ---------
                                                                                
Operating activities:                                                           
 Net income..............................................  $  3,785     $ 1,163 
 Adjustment to reconcile net income to net                                      
  cash provided by operating activities:                                        
  Depreciation and amortization..........................       493         684 
  Loss on retirement of equipment........................        19           2 
  Deferred rent..........................................        (3)         18 
 Changes in operating assets and liabilities:                                   
  Accounts receivable....................................     2,189      (1,919)
  Inventories............................................      (793)        (65)
  Prepaid expenses and other current assets..............        (9)        (38)
  Other assets...........................................       (92)        (12)
  Accounts payable.......................................     1,106         283 
  Accrued payroll and other expenses.....................       232          13 
  Accrued commissions....................................      (511)       (328)
  Income taxes payable...................................        87         (20)
  Other accrued liabilities..............................      (312)        (58)
  Deferred maintenance revenues..........................       941         437 
                                                           --------     ------- 
    Net cash provided by operating activities............     7,132         160 

Investing activities:                                                           
 Purchases of equipment and leasehold improvements.......    (1,212)       (418)
 Investment in Virtual Machine Works, Inc................    (1,250)         -- 
 Purchase of short-term investments......................   (10,755)        (14)
 Maturities of short-term investments....................     1,589          -- 
                                                           --------     ------- 
   Net cash used in investing activities.................   (11,628)       (432)

Financing activities:                                                           
 Principal payments on long-term debt....................      (738)       (250)
 Sale of common stock....................................    11,095          60 
                                                           --------     ------- 
   Net cash provided by (used in) financing activities...    10,357        (190)
                                                           --------     ------- 

Increase (decrease) in cash and cash equivalents.........     5,861        (462)
Cash and cash equivalents at beginning of period.........     7,305       3,422 
                                                           --------     ------- 
Cash and cash equivalents at end of period...............  $ 13,166     $ 2,960 
                                                           ========     ======= 

See notes to consolidated financial statements. 

5 

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IKOS SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1.   Basis of Presentation                                                      

The accompanying consolidated financial statements at March 30, 1996  
   and for the three and six month periods ended March 30, 1996 and April 1,
   1995, have been prepared in conformity with generally accepted accounting
principles, consistent with those applied in, and should be read in   
 conjunction with, the audited consolidated financial statements for the
   year ended September 30, 1995 included in the Form 10-K as filed with the
 Securities and Exchange Commission on December 22, 1995.  The unaudited
 interim financial information reflects all normal recurring adjustments
    which are, in the opinion of management, necessary for a fair statement of
   results for the interim periods presented.  The results for the three and
  six month periods ended March 30, 1996 are not necessarily indicative of
results expected for the full year.                                   

2.   Revenue Recognition                                                        

Product revenues, which include licensing and software revenues, are  
 generally recognized on shipment provided that no significant vendor or
    post-contract support obligations remain outstanding and collection of the
  resulting receivable is deemed probable.  Insignificant vendor and post-
   support obligations are accrued upon shipment.  Revenue under maintenance
contracts is recognized ratably over the term of the related contract,
generally twelve months.                                              

3.   Inventories                                                                

Inventories are stated at the lower of cost (first-in, first-out) or  
market and consisted of (in thousands):                               

                                                                [Download Table]

                        March 30,   September  30,
                          1996           1995     
                        ---------   --------------
                                                  

Purchased parts            $  164   $  347        
Work-in-process             1,497      563        
Finished goods                460      418        
                           ------   ------        

 Total inventories         $2,121   $1,328        
                           ======   ======        

4.   Net Income Per Share                                                       

Net income per share is based on the weighted average number of common
shares outstanding during the period.  Common equivalent shares from  
   dilutive options have been included in the computation using the treasury
stock method.                                                         

5.   Subsequent Event                                                           

In March 1996, the Company entered into a binding letter of intent to 
 acquire Virtual Machine Works Inc. (VMW), a developer of logic emulator
products.  Under the terms of the letter of intent, if the deal is    
 consummated, the Company will pay approximately $10,000,000 in cash and
    issue approximately $5,000,000 in stock and stock options to the VMW stock
     and option holders plus acquisition costs.  In connection with the proposed
    acquisition, the Company advanced VMW approximately $1,250,000 in exchange
  for a note.  The advance is included in other assets in the accompanying
     financial statements.  The Company may advance VMW an additional $1,250,000
  prior to the closing. In the event the acquisition is not completed, any
cash advances will be converted to stock of VMW. The transaction is   
    expected to be completed in May 1996.  In connection with the acquisition,
     the Company expects to write off up to $10,000,000 of the acquisition price
related to the in-process research and development being acquired.    

6 

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ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND       
RESULTS OF OPERATIONS                                             

NET REVENUES                                                                    

Net revenues for the three month period ended March 30, 1996 were $11,154,000,  
an increase of approximately 67% over the same quarter in fiscal 1995. Revenues 
for the six month period ended March 30, 1996 were $20,431,000, representing an 
increase of approximately 60% over the same period in 1995.  The increase for   
the three and six month periods ended March 30, 1996 is primarily the result of 
the continued growth in sales of the Voyager product line (primarily the NSIM   
product) and the Gemini product line which was introduced during the second half
of fiscal year 1995. These products contributed  the  vast  majority  of        
product  net  revenues  during  the  three and six months  ending  March 30,    
1996.                                                                           

Maintenance revenue for the three and six months ended March 30, 1996 increased 
55% and 54%, respectively, over the same periods of the previous fiscal year as 
a result of growth in the installed base of systems.                            

International sales for the three and six months ended March 30, 1996, were     
$4,416,000 and $6,364,000, respectively, representing increases of approximately
102% and 64%, respectively, over the same periods in fiscal 1995. International 
sales accounted for approximately 39% and 31% of total sales, respectively, for 
the same current year periods.                                                  

GROSS PROFIT MARGINS                                                            

Gross profit margins improved to approximately 78% of net revenues for each of  
the three and six months ended March 30, 1996, as compared to  75%  and 74%,    
respectively, for the same periods of fiscal 1995. The increase for the three   
month period was primarily the result of a change in product mix to a greater   
percentage of higher margin newer products.  The increase for the six months    
ended March 30, 1996 was primarily the result of increased maintenance revenues 
without any significant increases in maintenance costs as well as the positive  
margin impact from product revenue mix generated in the second quarter.         

RESEARCH AND DEVELOPMENT EXPENSES                                               

Research and development expenses for the three and six months ended March 30,  
1996 were $1,727,000 and $3,268,000, respectively, each representing an increase
of approximately 67% over the same period of fiscal year 1995. The increase for 
the three month period was primarily the result of increased headcount and      
associated expenses.  In addition to the increased personnel expenses, research 
and development costs increased significantly during the six month period as a  
result of the acquisition in the first quarter of 1996 of certain technology    
that had not yet reached technological feasibility and did not have alternative 
future uses. The Company expects research and development expenses to increase  
in absolute dollars over the remainder of the year as the Company continues its 
product enhancement, new product development and technology development         
programs.                                                                       

7 

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SALES AND MARKETING EXPENSES                                                    

Sales and marketing expenses for the three and six month periods ended March 30,
1996, increased to $3,417,000 and $6,911,000, respectively, representing        
increases of 27% and 31%, respectively, when compared to the same periods in    
fiscal 1995.  The increases are primarily the result of increased headcount,    
increased commissions as a result of higher revenue levels and increased        
expenses for international operations.  Sales and marketing expenses are        
expected to continue to increase in absolute dollars over the next two fiscal   
quarters reflecting increased headcount, commission expense and marketing       
expenses.                                                                       

GENERAL AND ADMINISTRATIVE EXPENSES                                             

General and administrative expenses were $1,034,000 and $1,723,000 for the three
and six month periods ended March 30, 1996, respectively, representing an       
increase of 88% and 67%, respectively, for the same periods in fiscal 1995.  The
increases are due primarily to additional headcount, increased investor         
relations expenses, professional services and profit sharing expenses.  General 
and administrative expenses are expected to increase slightly in absolute       
dollars and decrease as a percentage of net revenues over the remainder of      
fiscal 1996.                                                                    

INCOME TAXES                                                                    

The provision for income taxes consists primarily of federal alternative minimum
tax, state and foreign taxes and Japanese withholding taxes.  The tax rate is   
substantially below the federal statutory rate due to the utilization of net    
operating loss carryovers for which no benefit has previously been taken.       

LIQUIDITY AND CAPITAL RESOURCES                                                 

As of March 30, 1996, the Company had $22,782,000 in cash, cash equivalents and 
short term investments which compared to $7,755,000 as of September 30, 1995.   

Net  cash  provided  by  operating  activities  was  $7,132,000  for  the  six  
months  ended  March 30, 1996 and was primarily due to net income plus          
depreciation and amortization, a reduction in outstanding accounts receivable,  
increased deferred maintenance revenues and accounts payable partially offset by
an increase in inventories and a decrease in accrued commissions and other      
accrued liabilities.                                                            

Net cash used in investing activities was approximately $11,628,000 due         
primarily to the advance to VMW of $1,250,000 and the net purchases of          
approximately $9,166,000 of short-term investments and $1,212,000 of equipment, 
primarily engineering workstations, during the six months ended March 30, 1996. 
The Company expects additional capital expenditures throughout the remainder of 
the year as expected headcount additions will require additional engineering    
workstations.                                                                   

Net cash provided by financing activities for the six months ended March 30,    
1996 was $10,357,000 which was a result of the completion of the Company's      
public stock offering in October 1995 and the exercise of options by Company    
employees.  Proceeds from the sale of 1,150,000 shares of common stock, net of  
offering costs, were approximately $10,450,000.  Offsetting the increases in    
cash provided by financing activities were principal payments of approximately  
$738,000 on long-term debt.                                                     

8 

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During the quarter, the Company signed a binding letter of intent to acquire    
Virtual Machine Works, Inc. (VMW).  Under the terms of the letter of intent, if 
the acquisition is consummated, the Company will pay approximately $10,000,000  
in cash and $5,000,000 in stock and stock options to VMW stock and option       
holders plus acquisition costs.  In connection with the proposed acquisition,   
the Company advanced VMW approximately $1,250,000 in exchange for a note.  The  
Company may advance VMW an additional $1,250,000 prior to the closing. In the   
event the acquisition is not completed, any cash advances will be converted to  
stock of VMW.  As a result of the proposed acquisition, the Company is expecting
to take a one-time charge of up to $10,000,000 relating to in-process research  
and development. The majority of initial expenditures are expected to be in the 
research and development area as the Company attempts to get VMW products       
developed and ready for sale.  Such efforts may require additional capital      
equipment spending and other such costs in the near-term, including anticipated 
integration costs. As a result of the anticipated one-time charge and increased 
research and development spending generated by the on-going VMW operations, the 
Company may incur a net loss for the third quarter ending June 29, 1996 and for 
the year ending September 28, 1996.  The transaction is expected to be completed
in May 1996.                                                                    

The Company's primary unused sources of funds at March 30, 1996, consisted of   
$22,782,000 of cash, cash equivalents and short term investments.  The Company  
believes that its present cash position and cash generated from operations will 
be sufficient to meet its anticipated financing needs for the proposed VMW      
acquisition and its capital and operational needs for at least the next twelve  
months.  The Company's future cash requirements may also be financed through    
additional equity or debt financing.                                            

Forward-looking statements in this Quarterly Report on Form 10-Q are made       
pursuant to the safe harbor provisions of the Private Securities Litigation     
Reform Act of 1995.  Investors are cautioned that all forward-looking statements
involve risks and uncertainties, including, without limitation, a developing    
market and continued acceptance of the Company's products, changes in the       
marketplace and increased levels of competition for the Company, the Company's  
dependence upon third-party suppliers and the Company's intellectual property   
rights.  Further information on potential factors which could affect the        
Company's financial results are included in the Company's Annual Report on Form 
10-K for the year ended September 30, 1995 and the Company's Registration       
Statement on Form S-2, effective October 12, 1995.                              

9 

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PART II.  OTHER INFORMATION 

ITEMS 1-5.  NOT APPLICABLE.                                                     

ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K.                                   

(a) INDEX TO EXHIBITS                                                           

Exh. No.                Documentation Description                           Page
--------                -------------------------                           ----

4.1   Certificate of Amendment of Certificate of Incorporation filed May 5,   
1994. (Incorporated by reference to Exhibit 4.1 of the Company's  
registration statement on Form S-2 effective October 12, 1995.)   

4.2   Certificate of Amendment of Certificate of Incorporation filed April 24,
1995. (Incorporated by reference to Exhibit 4.2 of the Company's  
registration statement on Form S-2 effective October 12, 1995.)   

4.4   Rights Agreement dated as of January 27, 1992 between the Company and   
Manufacturers Hanover Trust Company of California, Rights Agent.  
  (Incorporated by reference to Exhibit (C)1, in the Company's current
report on Form 8-K filed February 10, 1992.)                      

10.1   Lease Agreement for the Company's principal facility dated March 20,     
1992, between Ames Avenue Associates and the Company, as amended. 
       (Incorporated by reference to Exhibit 10.1 of the Company's annual report
on 10-K for the year ending September 26, 1992.)                  

10.2   Form of Director and Officer Indemnity Agreement.  (Incorporated by      
   reference to Exhibit 10.6 of the Company's registration statement  on
Form  S-1  effective  July 25, 1990.)                             

10.3   1988 Stock Option Plan.  (Incorporated by reference to Exhibit 10.14 of  
 the Company's registration statement on Form S-1 effective July 25,
1990.)                                                            

10.4   Patent Cross License Agreement dated May 17, 1989 with Zycad Corporation.
    (Incorporated by reference  from  Zycad  Corporation's  Annual  Report
on  Form 10-K filed April 2, 1990.)  (Incorporated by reference to
Exhibit 10.20 of the Company's registration statement on Form S-1 
effective July 25, 1990.)                                         

10.5   International Distributorship Agreement dated April 11, 1988, with C.    
Itoh & Co., Ltd. (with certain confidential portions excised).    
       (Incorporated by reference to Exhibit 10.24 of the Company's registration
statement  on  Form S-1 effective July 25, 1990.)                 

10.6   OEM Software License Agreement between CAD Language Systems, Inc. and    
  IKOS Systems, Inc. dated June 22, 1989 and amendment dated September
 1991.  (Incorporated by reference to Exhibit 10.18 of the Company's
Annual Report for the year ended September 28, 1991.)             

10

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Exh. No.                Documentation Description                           Page
--------                -------------------------                           ----

10.7   Technology Transfer and Joint Development Agreement with Racal-Redac,    
     Inc. dated July 1, 1993 (with certain portions excised).  (Incorporated
     by reference to Exhibit 10.19 of the Company's quarterly report on Form
10-Q for the quarter ended July 3, 1993.)                         

10.8   Settlement Agreement and Release dated March 31, 1994 between Racal      
      Redac, Inc. and the Company. (Incorporated by reference to Exhibit 10.13
of the Company's registration  statement  on  Form  S-2  effective
October 12, 1995.)                                                

10.9   Software License Agreement dated December 31, 1993 between Compass Design
      Automation and the Company.  (Incorporated by reference to Exhibit 10.17
  of the Company's quarterly report on Form 10-Q for the quarter ended
January 1, 1994.)                                                 

10.10  Agreement dated June 2, 1994, between the Company and Gerald S. Casilli. 
    (Incorporated by reference to Exhibit 10.18 of the Company's quarterly
report on Form 10-Q for the quarter ended July 2, 1994.)          

10.11  Agreement dated June 2, 1994, between the Company and William B.         
      Fazakerly.  (Incorporated by reference to Exhibit 10.18 of the Company's
quarterly report on Form 10-Q for the quarter ended July 2, 1994.)

10.12  Agreement dated June 2, 1994, between the Company and Daniel R. Hafeman. 
    (Incorporated by reference to Exhibit 10.18 of the Company's quarterly
report on Form 10-Q for the quarter ended July 2, 1994.)          

10.13  Agreement dated June 2, 1994, between the Company and Stephen M.         
       McLaughlin.  (Incorporated by reference to Exhibit 10.18 of the Company's
quarterly report on Form 10-Q for the quarter ended July 2, 1994.)

10.14  Agreement dated June 2, 1994, between the Company and Lawrence A.        
    Melling.  (Incorporated by reference to Exhibit 10.18 of the Company's
quarterly report on Form 10-Q for the quarter ended July 2, 1994.)

10.15  Agreement dated June 2, 1994, between the Company and Ramon A. Nunez.    
    (Incorporated by reference to Exhibit 10.18 of the Company's quarterly
report on Form 10-Q for the quarter ended July 2, 1994.)          

10.16  Agreement dated June 2, 1994, between the Company and Joseph W. Rockom.  
    (Incorporated by reference to Exhibit 10.18 of the Company's quarterly
report on Form 10-Q for the quarter ended July 2, 1994.)          

10.17  The Company's 1995 Outside Directors Stock Option Plan.  (Incorporated by
   reference to Exhibit 10.22 of the Company's registration statement on
Form S-2 effective October 12, 1995.)                             

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10.18  Development and OEM Agreement for Verilog/IKOS Co-simulation Interface   
dated August 26, 1994 by and between the Company and Precedence   
Incorporated.  (Incorporated by reference to Exhibit 10.24 of the 
       Company's registration statement on Form S-2 effective October 12, 1995.)

10.19  Agreement dated June 19, 1995 by and between the Company and William B.  
     Fazakerly. (Incorporated by reference to Exhibit 10.20 of the Company's
annual report on Form 10-K for the year ended September 30, 1995.)

10.20  Amendment to OEM Agreement for the acquisition of certain software       
technology, by and between Compass Design Automation, Inc. and the
     Company dated December 27, 1995.  (Incorporated by reference to Exhibit
  10.19 of the Company's quarterly report on Form 10-Q for the quarter
ended December 30, 1995).                                         

10.21  Amended and Restated Employment Agreement dated August  1, 1995 by and   
between the Company and Ramon Nunez. (Incorporated by reference to
  Exhibit 10.19 of the Company's quarterly report on Form 10-Q for the
quarter ended December 30, 1995).                                 

11.1   Statements of Computation of Earnings Per Share                          

27.1   Financial Data Schedule                                                  

(b) REPORTS ON FORM 8-K  -  Not applicable                                      

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.                                          

          IKOS SYSTEMS, INC.
          ------------------
  Registrant

Date:  May 13, 1996                 /s/  Joseph W. Rockom                       
------------                 ----------------------------         
               (JOSEPH W. ROCKOM, CFO)
                    Principal Financial Officer,
               Duly Authorized 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

	9/28/96	9		10-K
	6/29/96	9		10-Q
Filed on:	5/13/96	12
For Period End:	3/30/96	1	9
	12/30/95	12		10-Q
	12/27/95	12
	12/22/95	6
	10/12/95	9	12	10-C
	9/30/95	2	12	10-K
	8/1/95	12
	6/19/95	12
	4/24/95	10
	4/1/95	2	6	10-Q
	8/26/94	12
	7/2/94	11
	6/2/94	11
	5/5/94	10
	3/31/94	11
	1/1/94	11
	12/31/93	11
	7/3/93	11
	7/1/93	11
	9/26/92	10
	3/20/92	10
	2/10/92	10
	1/27/92	10
				List all Filings

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Filing Submission 0000898430-96-001783 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Ikos Systems Inc – ‘10-Q’ for 3/30/96

As of: Monday, 5/13/96 · For: 3/30/96 · Accession #: 898430-96-1783 · File #: 0-18623

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Dates Referenced Herein and Documents Incorporated by Reference

Quarterly Report — Form 10-Q
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10-Q — Quarterly Report
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