SEC Info - Transnet Corp - ‘10-Q’ for 12/31/02

SEC Info℠

Home

Help

Please Sign In

Transnet Corp – ‘10-Q’ for 12/31/02

On: Thursday, 2/13/03, at 4:16pm ET · For: 12/31/02 · Accession #: 913906-3-1 · File #: 0-08693

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

 2/13/03  Transnet Corp                     10-Q       12/31/02    1:31K                                    Moore Stephens PC/FA

Quarterly Report — Form 10-Q
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                      14     54K

Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Control and Procedures Exhibits and Reports on Form 8-K
1	1st Page - Filing Submission
9	Item 3. Control and Procedures
"	Item 6:. Exhibits and Reports on Form 8-K

10-Q 1st Page of 14 TOC ↑Top Previous Next ↓Bottom Just 1st
 
   Form 10-Q

SECURITIES AND EXCHANGE COMMISSION

 Washington, D. C. 20549

(X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934                                                                     

For the quarterly period ended December 31, 2002                                
----------------- 

OR

( )   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE   SECURITIES    
EXCHANGE ACT OF 1934                                                            

For the transition period from ________________to _________________             

For Quarter Ended December 31, 2002                                             
-----------------                           

TRANSNET CORPORATION
--------------------
(Exact name of registrant as specified in its charter)

   DELAWARE________________          ______________22-1892295_________
--------------------------------                        ----------              
(State or other jurisdiction of             (IRS Employer Identification Number)
incorporation or organization)                                                  

45 Columbia Road, Somerville, New Jersey               08876-3576_              
----------------------------------------          --------------------          
(Address of principal executive offices)            (Zip Code)                  

Registrant's Telephone Number, Including Area Code:   908-253-0500              
                                        ------------

----------------------------------------------------------------                
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 February 11, 2003:  4,774,804.                              

10-Q 2nd Page of 14 TOC 1st Previous Next ↓Bottom Just 2nd
TRANSNET CORPORATION
 FORM 10-Q

 TABLE OF CONTENTS

                                                                        Page No.

PART I.  FINANCIAL INFORMATION                                                  

Consolidated Balance Sheets                                         
   December 31, 2002 and June 30, 2002                       1

Consolidated Statements of Operations                               
   Three Months Ended December 31, 2002 and 2001             2
   Six Months Ended December 31, 2002 and 2001               3

Consolidated Statements of Cash Flows                               
   Six Months Ended December 31, 2002 and 2001               4

Notes to Consolidated Financial Statements                     5    

Management's Discussion and Analysis                            6   

PART II.  OTHER INFORMATION                                           9         
-------   -----------------                                                     

i.

10-Q 3rd Page of 14 TOC 1st Previous Next ↓Bottom Just 3rd
14

 TRANSNET CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS 

                                                 December 31,   June 30,
                                                    2 0 0 2      2 0 0 2
                                                    -------      -------
                                       (unaudited)

Assets:                                                                         
Current Assets                                                                  
Cash and Cash Equivalents                          $7,201,936   $ 7,035,649 
Accounts Receivable - Net                           5,496,350     7,553,927 
Inventories                                           823,883       615,646 
Other Current Assets                                  128,565       113,725 
Deferred Tax Asset                                    195,649       195,649 
                                                  ----------   -----------

Total Current Assets                               13,846,383    15,514,596 

Property and Equipment - Net                            520,550       583,490   

Other Assets                                            232,084       238,089   
                                                  ----------   -----------

Total Assets                                       $14,599,017  $16,336,175 
                                                  ===========  ===========

Liabilities and Stockholders' Equity:                                           
Current Liabilities:                                                            
Accounts Payable                                   $  309,310   $   684,823 
Accrued Expenses                                       54,320       419,684 
Income Taxes Payable                                   24,266       228,691 
Floor Plan Payable                                    385,640     1,024,507 
                                                  ----------   -----------

Total Current Liabilities                             773,536     2,357,705 
                                                  ----------   -----------

Deferred Tax Liability                                   30,976        30,976   
                                                  ----------   -----------

Commitments and Contingencies                                --            --   
                                                  ----------   -----------

Stockholders' Equity:                                                           
Capital Stock - Common, $.01 Par Value, Authorized                          
15,000,000 Shares; Issued 7,469,524 Shares                                  
[of which 2,694,720 are in Treasury]                   74,695        74,695 

Paid-in Capital                                    10,686,745    10,686,745 

Retained Earnings                                  10,341,265    10,494,254 
                                                  ----------   -----------

Totals                                             21,102,705    21,255,694 
Less:  Treasury Stock - At Cost                    (7,308,200)   (7,308,200)
                                                  ----------   -----------

Total Stockholders' Equity                         13,794,505    13,947,494 
                                                  ----------   -----------

Total Liabilities and Stockholders' Equity         $14,599,017  $16,336,175 
                                                  ===========  ===========

See Notes to Consolidated Financial Statements.                                 

10-Q 4th Page of 14 TOC 1st Previous Next ↓Bottom Just 4th
 TRANSNET CORPORATION AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF OPERATIONS
   (UNAUDITED)

                                                    THREE MONTHS ENDED
                                                    DECEMBER 31,
                                                    ------------
                                                     2 0 0 2     2 0 0 1
                                                     -------     -------
Revenue                                                                         
Equipment                                          $3,383,589   $ 9,875,110 
Service                                             4,234,032     4,562,967 
                                                  ----------   -----------

Total Revenue                                       7,617,621    14,438,077 
                                                  ----------   -----------

Cost of Revenue                                                                 
Equipment                                           2,983,010     9,253,066 
Service                                             3,225,379     3,100,202 
                                                  ----------   -----------

Total Cost of Revenue                               6,208,389    12,353,268 
                                                  ----------   -----------

Gross Profit                                        1,409,232     2,084,809 

Selling, General and Administrative Expenses          1,636,623     1,815,979   
                                                  ----------   -----------

Operating (Loss) Income                              (227,391)      268,830 
                                                  ----------   -----------

Other Income                                                                    
Interest Income                                        11,569         9,406 
Interest Income - Related Party                            --         5,672 
                                                  ----------   -----------

Total Other Income                                     11,569        15,078 
                                                  ----------   -----------

(Loss) Income Before Tax Expense                     (215,822)      283,908 

Income Tax (Benefit) Expense                            (24,924)      107,885   
                                                  ----------   -----------

Net (Loss) Income                                  $ (190,898)  $   176,023 
                                                  ==========   ===========

Basic Net Income Per Common Share                    $   ( 0.04)  $      0.04   
                                                  ==========   ===========

Diluted Net Income Per Common Share                  $   ( 0.04)  $      0.04   
                                                  ==========   ===========

Weighted Average Common Shares Outstanding - Basic    4,774,804     4,815,872   
                                                  ==========   ===========

Weighted Average Common Shares Outstanding - Diluted  4,839,084     4,990,710   
                                                  ==========   ===========

See Notes to Consolidated Financial Statements.                                 

10-Q 5th Page of 14 TOC 1st Previous Next ↓Bottom Just 5th
 TRANSNET CORPORATION AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (UNAUDITED)

                                                    SIX MONTHS ENDED
                                                     -----------------
                                                    DECEMBER 31,
                                                    ------------
                                                     2 0 0 2     2 0 0 1
                                                     -------     -------
Revenue                                                                         
Equipment                                          $9,000,638   $23,069,269 
Service                                             8,465,415     8,445,198 
                                                  ----------   -----------

Total Revenue                                      17,466,053    31,514,467 
                                                  ----------   -----------

Cost of Revenue                                                                 
Equipment                                           8,089,588    21,790,795 
Service                                             6,172,724     5,666,436 
                                                  ----------   -----------

Total Cost of Revenue                              14,262,312    27,457,231 
                                                  ----------   -----------

Gross Profit                                        3,203,741     4,057,236 

Selling, General and Administrative Expenses          3,382,004     3,486,115   
                                                  ----------   -----------

Operating (Loss) Income                              (178,263)      571,121 
                                                  ----------   -----------

Other Income                                                                    
Interest Income                                        25,274        43,343 
Interest Income - Related Party                            --        11,344 
                                                  ----------   -----------

Total Other Income                                     25,274        54,687 
                                                  ----------   -----------

(Loss) Income Before Tax Expense                     (152,989)      625,808 

Income Tax (Benefit) Expense                                 --       223,825   
                                                  ----------   -----------

Net (Loss) Income                                  $ (152,989)  $   401,983 
                                                  ==========   ===========

Basic Net Income Per Common Share                    $   (0.03)   $      0.08   
                                                  =========     ==========

Diluted Net Income Per Common Share                  $   (0.03)   $      0.08   
                                                  =========    ===========

Weighted Average Common Shares Outstanding - Basic    4,774,804     4,815,872   
                                                  ==========   ===========

Weighted Average Common Shares Outstanding - Diluted  4,884,547     4,977,520   
                                                  ==========   ===========

See Notes to Consolidated Financial Statements.                                 

10-Q 6th Page of 14 TOC 1st Previous Next ↓Bottom Just 6th
 TRANSNET CORPORATION AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF CASH FLOWS
     (UNAUDITED)

                                                    SIX MONTHS ENDED
                                                     -----------------
                                                    DECEMBER 31,
                                                    ------------
                                                     2 0 0 2     2 0 0 1
                                                     -------     -------
Operating Activities:                                                           
Net Income                                         $  (152,989) $   401,983 
                                                  -----------  -----------
Adjustments to Reconcile Net Income                                         
to Net Cash:                                                      
 Depreciation and Amortization                        102,100       61,474
 Provision for Doubtful Accounts                       (7,000)      39,726

Changes in Assets and Liabilities:                                              
(Increase) Decrease in:                                                     
  Accounts Receivable                                2,064,577   (3,316,543)
  Inventory                                           (208,237)    (552,856)
 Other Current Assets                                 (14,840)     146,193
  Other Assets                                            (980)      (1,194)

Increase (Decrease) in:                                                     
  Accounts Payable and Accrued Expenses               (740,874)    (474,591)
 Other Current Liabilities                           (204,428)          --
                                                  -----------  -----------

  Total Adjustments                                    990,318   (4,097,791)
                                                  -----------  -----------

Net Cash - Operating Activities - Forward              837,329   (3,695,808)

Investing Activities:                                                           
Capital Expenditures                                   (32,174)    (117,961)

Financing Activities -                                                          
Floor Plan Payable- Net                               (638,867)    (289,928)
                                                  -----------  -----------

Net Increase (Decrease) in Cash and Cash                                    
 Equivalents                                           166,288   (4,103,697)

Cash and Cash Equivalents at Beginning of Periods      7,035,649    6,301,210   
                                                  -----------  -----------

Cash and Cash Equivalents at End of Periods        $ 7,201,936  $ 2,197,513 
                                                  ===========  ===========

See Notes to Consolidated Financial Statements.                                 

10-Q 7th Page of 14 TOC 1st Previous Next ↓Bottom Just 7th
 TRANSNET CORPORATION AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (Information as of December 31, 2002 and 2001 is unaudited)

(1.) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                 

    (a) Consolidation: The consolidated financial statements include the
accounts of TransNet Corporation and its wholly owned subsidiary Century        
American Corporation (the "Company"). Intercompany transactions and accounts    
have been eliminated in consolidation.                                          

        (b) Inventory:  Inventory  consists of finished goods. The Corporation's
inventory is valued at the lower of cost  (determined on the average cost basis)
or market.                                                                      

        (c) Cash and Cash Equivalents: For the purposes of the statement of cash
flows, the Corporation considers highly liquid debt instruments, purchased with 
a maturity of three months or less, to be cash equivalents.                     

      (d) Earnings Per Share: Earnings per common share - basic are based on
4,774,804 weighted shares outstanding for the quarter ended December 31, 2002   
and on 4,815,872 weighted shares outstanding for the quarter ended December 31, 
2001. Earnings per common share - diluted are based on 4,839,084 weighted shares
outstanding for the quarter ended December 31, 2002 and on 4,990,710 weighted   
shares outstanding for the quarter ended December 31, 2001.                     

(2.) INCOME TAXES                                                               

   The Corporation has a deferred tax asset of $195,649 and a deferred tax
liability of $30,976 based upon temporary timing differences including inventory
capitalization, allowance for doubtful accounts, vacation pay accruals and      
depreciation.                                                                   

(3.) RECLASSIFICATION                                                           

Certain items from the prior year's financial statements have been reclassified 
to conform to the current year's presentation.                                  

In the opinion of management, the accompanying unaudited consolidated financial 
statements contain all adjustments consisting only of normal recurring          
adjustments necessary to present fairly the financial position, the results of  
operations and cash flows for the periods presented.                            

These statements should be read in conjunction with the summary of significant  
accounting policies and notes contained in the Corporation's annual report on   
Form 10-K for the year ended June 30, 2002.                                     

10-Q 8th Page of 14 TOC 1st Previous Next ↓Bottom Just 8th
 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
 FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations                                                           

Revenues for the three months ended December 31, 2002 were $7,617,621 as        
compared with $14,438,077 for the quarter ended December 31, 2001. For the      
quarter ended December 31, 2002 the Corporation reported a net loss of $190,898 
as compared with net income of $176,023 for the similar period in the prior     
fiscal year. For the six months ended December 31, 2002 revenues were           
$17,466,053, as compared to $31,514,467 reported for the similar period in the  
prior fiscal year, with a net loss of $152,989 for the six-month period ended   
December 31, 2002, compared with net income of $401,983 for the same period in  
the prior fiscal year. The decrease in revenues in the three and six-month      
periods ended December 31, 2002 is due primarily to a decrease in hardware      
sales, which was partially attributable to delays of orders and/or projects by  
many of the Corporation's largest customers due to their budget freezes and/or  
restraints, the slowdown of the overall economy, especially related to IT       
spending. The Corporation's increased use of the direct ship-agency model, as   
described below, also contributed to the decrease.                              

The net loss for the quarter and six-month period ended December 31, 2002 is    
attributable, as referenced above, to the decrease in hardware sales, delays in 
large-scale projects, decreased service revenues and technical staff utilization
and related decreases in profit margins on technical services. Service and      
training related revenues are significant in their contributions to earnings    
because these operations yield a higher profit margin than equipment sales.     
Although current expectations are that the delays are for approximately six     
months, because the delays are client-based, management cannot determine in     
which quarters services will be provided, nor can management give assurances    
that delays will not be longer than expected or that orders will be given.      
Management concentrates it efforts on technical service and support, and on     
sales of network and system integration products which yield higher profit      
margins, and continues its adherence to and implementation of cost control      
measures. For the six-month periods ended December 31, 2002 and 2001,           
respectively, revenues from the provision of service, support, outsourcing and  
network integration were largely the result of the Corporation renewing and/or  
entering into service contracts with a number of large corporate clients. Most  
of these contracts are short-term, usually twelve months or less, and contain   
provisions which permit early termination. Although the contracts generally     
contain renewal terms, there is no assurance that such renewals will occur.     

During the fiscal years discussed, the computer industry has experienced a trend
of decreasing prices of computers and related equipment. Management believes    
that this trend will continue. Industrywide, the result of price erosion has    
been lower profit margins on sales, which require businesses to sell a greater  
volume of equipment to maintain past earning levels. Another result of the price
decreases has been intensified competition within the industry, including the   
consolidation of businesses through merger or acquisition, the initiation of    
sales by many manufacturers directly to the end-user, and the entrance of       
manufacturers into technical services business. Management believes that the    
adoption of policies by many larger corporate customers, which limit the number 
of vendors permitted to provide goods and services for specified periods of     
time, has further increased price competition.                                  

The Corporation's performance is also impacted by other factors, many of which  
are not within its control. These factors include: the short-term nature of     
client's commitments; patterns of capital spending by clients; the timing and   
size of new projects; pricing changes in response to competitive factors; the   
availability and related costs of qualified technical personnel; timing and     
customer acceptance of new product and service offerings; trends in IT          
outsourcing; product constraints; and industry and general economic conditions. 

To meet these competitive challenges and to maximize the Corporation's profit   
margin, management has modified its marketing strategy during these years and   
has enforced expense controls. Management also utilizes new trends such as      
manufacturers' direct shipment and billing of the customers in exchange for     
payment to the Corporation of an "agency fee" as a means to reduce equipment    
related costs while increasing profits. Management believes that this approach, 
although it may impact revenues, insulates the corporation from challenges which
may accompany sudden price dereases, hardware obsolescence and delays collection
of receivables.                                                                 

Management's current marketing strategy is designed to emphasize provision of   
technical services and sales of lower revenue/higher profit margin products     
related to service and support operations. In this regard, management continues 
its concentration on sales of network and system integration products which     
yield higher profit margins. Management's efforts include targeting commercial, 
educational and governmental customers who provide marketplaces for a wide range
of products and services at one time, a cost-effective approach to sales. These 
customers often do not have their own technical staffs and outsource their      
computer service requirements to companies such as TransNet. Although there is  
uncertainty as to the economic future, management is cautiously optimistic,     
particularly with respect to education sales. Management believes it maximizes  
profits through concentration on sales of value-added applications; promotion of
the Corporation's service and support operations; and strict adherence to cost  
cutting controls. In light of the above, management emphasizes and continues the
aggressive pursuit of an increased volume of sales of technical service and     
support programs, and promotion of its training services. In the near term, the 
Corporation believes that product sales will continue to generate a significant 
percentage of the Company's revenues. In addition, the Corporation's buying     
agreement with Ingram Micro, Inc. enhances the Corporation's competitive edge   
through product discounts unavailable through other sources.                    

With respect to selling, general and administrative expenses, although actual   
expenses decreased as a result of management's cost control measures, due to    
decreased revenues, selling, general and administrative expenses increased to   
approximately 21% of revenue for the quarter and 11% for the six month period   
ended December 31, 2002. Selling, general and administrative expenses were      
approximately 13% of revenues for the same time periods in fiscal 2001.         
Management continues its efforts to control and reduce administrative and       
personal related costs.                                                         

Liquidity and Capital Resources                                                 

There are no material commitments of the Corporation's capital resources.       

The Corporation currently finances a portion of its accounts receivable and     
finances purchases of portions of its inventory through floor-planning          
arrangements under which such inventory secures the amount outstanding. The     
amount due under this fianancing decreased for the quarter and six months ended 
December 31, 2002 due to the decrease in hardware sales. Inventory increased in 
the quarter and six-month periods due to orders received at the end of the      
period ended December 31, 2002 as compared to the corresponding periods in the  
prior fiscal year.                                                              

Accounts receivable and payable decreased for the quarter and six months ended  
December 31, 2002 as compared to the same periods in 2001 as a direct result of 
the decrease in revenues and to reduction of payables. Cash levels increased in 
the three and six-months ended December 31, 2002 as compared to the             
corresponding periods in 2001 as a result of expenses required to finance the   
hardware sales in the 2001 period.                                              

Interest income increased in the 2002 quarter due to larger amounts invested,   
but decreased in the six-month period as compared to the same period in 2001    
primarily due to the lower interest rates available on investments as well as   
lower amounts invested.                                                         

For the fiscal quarter and six months ended December 31, 2002, as in the similar
periods in the prior year, the internal resources of the Corporation were       
sufficient to enable the Corporation to meet its obligations.                   

In the first quarter of fiscal 1998, management was apprised of an unasserted   
possible claim or assessment involving the Corporation's Pension Plan. The Plan 
was adopted in 1981 as a defined benefit plan. In 1989, various actions were    
taken by the Corporation to terminate the Plan, to convert it to a defined      
contribution plan and to freeze benefit accruals. No filing for plan termination
was made with the Pension Benefit Guaranty Corporation (the "PBGC").            
Additionally, a final amended and restated plan document incorporating the      
foregoing amendments and other required amendments including those required by  
the Tax Reform Act of 1986 do not appear to have been properly adopted. In      
addition, since 1989, it appears that certain operational violations occurred in
the administration of the Plan including the failure to obtain spousal consent  
in certain instances where it was required.                                     

The Corporation decided to (i) take corrective action under the IRS Walk-in     
Closing Agreement Program ("CAP"), (ii) applied for a favorable determination   
letter with respect to the Plan from the IRS, and (iii) terminate the Plan. The 
CAP program provides a correction mechanism for "non-amenders" such as the      
Corporation. Under CAP, the Corporation was subject to a monetary sanction. In  
addition, the Corporation was required to correct, retroactively, operational   
violations, and to pay any resulting excise taxes and PBGC premiums and         
penalties that may be due. In this regard, in connection with settlement        
negotiations with the IRS, during the December 2000 quarter the Corporation made
a contribution to the Plan and made payment of specified sanctions. During the  
March 2001 quarter, the Corporation finalized a settlement agreement with the   
IRS and is awaiting resolution with the PBGC.                                   

The matters discussed in Management's Discussion and Analysis and throughout    
this report that are forward-looking statements are based on current management 
expectations that involve risk and uncertainties. Potential risks and           
uncertainties include, without limitation: the impact of economic conditions    
generally and in the industry for microcomputer products and services;          
dependence on key vendors and customers; continued competitive and pricing      
pressures in the industry; product supply shortages; open-sourcing of products  
of vendors, including direct sales by manufacturers; rapid product improvement  
and technological change, short product life cycles and resulting obsolescence  
risks; technological developments; capital and financing availability; and other
risks set forth herein.                                                         

10-Q 9th Page of 14 TOC 1st Previous Next ↓Bottom Just 9th
PART II.                                                                        

OTHER INFORMATION                                                               

Item 3.  Control and Procedures                                                 

The Chief Executive Officer of the Corporation has concluded, based on his      
evaluation as of a date within 90 days prior to the date of the filing of this  
Report, that the Corporation's disclosure controls and procedures are effective 
to ensure that information required to be disclosed by the Corporation in the   
reports filed or submitted by it under the Securities Exchange Act of 1934, as  
amended (the "Exchange Act"), is recorded, processed, summarized and reported   
within the time periods specified in the SEC's rules and forms, and include     
controls and procedures designed to ensure that information required to be      
disclosed by the Corporation in such reports is accumulated and communicated to 
the Corporation's management, including the Chief Executive Officer and Chief   
Financial Officer, as appropriate to allow timely decisions regarding required  
disclosure.                                                                     

There were no significant changes in the Corporation's internal controls or in  
other factors that could significantly affect these controls subsequent to the  
date of such evaluation.                                                        

Item 6:  Exhibits and Reports on Form 8-K                                       

A.  Exhibits - None required to be filed for Part II of this report.            

B.  Reports on Form 8-K - None filed  during the  quarter  for which this       
report is submitted.                                                            

10-Q 10th Page of 14 TOC 1st Previous Next ↓Bottom Just 10th
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.                                          

TRANSNET CORPORATION
(Registrant)

    /s/ Steven J. Wilk
                  --------------------------------
           Steven J. Wilk, President
         Chief Executive Officer

  /s/ John J. Wilk
                   ---------------------------------
John J. Wilk, 
                            Principal Financial and Accounting Officer
                        and Chairman of the Board of Directors

DATE:  February 12, 2003                                                        

10-Q 11th Page of 14 TOC 1st Previous Next ↓Bottom Just 11th
 CERTIFICATION

I, Steven J. Wilk, certify that:                                                

1.  I have reviewed this quarterly report on Form 10-Q of TransNet Corporation. 

2. Based on my knowledge, this quarterly report does not contain any untrue     
statement of a material fact or omit to state a material fact necessary to make 
the statements made, in light of the circumstances under which such statements  
were made, not misleading with respect to the period covered by this quarterly  
report;                                                                         

3. Based on my knowledge, the financial statements, and other financial         
information included in this quarterly report, fairly present in all material   
respects the financial condition, results of operations and cash flows of the   
registrant as of, and for, the periods presented in this quarterly report;      

4. The registrant's other certifying officers and I are responsible for         
establishing and maintaining disclosure controls and procedures (as defined in  
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:           
  (a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated        
subsidiaries, is made known to us by others within those entities,        
particularly during the period in which this quarterly report is being    
prepared; (b) evaluated the effectiveness of the registrant's disclosure  
  controls and procedures as of a date within 90 days prior to the filing date
 of this quarterly report (the "Evaluation Date"); and (c) presented in this
quarterly report our conclusions about the effectiveness of the disclosure
controls and procedures based on our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
  most recent evaluation, to the registrant's auditors and the audit committee
of registrant's board of directors (or persons performing the equivalent  
function):                                                                
(a) all significant deficiencies in the design or operation of internal   
controls which could adversely affect the registrant's ability to record, 
process, summarize and report financial data and have identified for the  
 registrant's auditors any material weaknesses in internal controls; and (b)
any fraud, whether or not material, that involves management or other     
  employees who have a significant role in the registrant's internal controls;
and                                                                       

6. The registrant's other certifying officers and I have indicated in this      
quarterly report whether or not there were significant changes in internal      
controls or in other factors that could significantly affect internal controls  
subsequent to the date of our most recent evaluation, including any corrective  
actions with regard to significant deficiencies and material weaknesses.        

Date:  February 12, 2003                                                        

/s/  Steven J. Wilk                                                             
----------------------------------------------------                            
Steven J. Wilk                                                                  
Chief Executive Officer                                                         

10-Q 12th Page of 14 TOC 1st Previous Next ↓Bottom Just 12th
 CERTIFICATION

I, John J. Wilk, certify that:                                                  

1.  I have reviewed this quarterly report on Form 10-Q of TransNet Corporation  

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
   statement of a material  fact or omit to state a material  fact  necessary to
   make the  statements  made,  in light of the  circumstances  under which such
   statements  were made, not  misleading  with respect to the period covered by
this quarterly report;                                                    

3. Based on my knowledge, the financial statements, and other financial         
   information included in this quarterly report, fairly present in all material
   respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for         
  establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:       
  (a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated        
subsidiaries, is made known to us by others within those entities,        
particularly during the period in which this quarterly report is being    
prepared; (b) evaluated the effectiveness of the registrant's disclosure  
  controls and procedures as of a date within 90 days prior to the filing date
 of this quarterly report (the "Evaluation Date"); and (c) presented in this
quarterly report our conclusions about the effectiveness of the disclosure
controls and procedures based on our evaluation as of the Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
  most recent evaluation, to the registrant's auditors and the audit committee
of registrant's board of directors (or persons performing the equivalent  
function):                                                                
(a) all significant deficiencies in the design or operation of internal   
controls which could adversely affect the registrant's ability to record, 
process, summarize and report financial data and have identified for the  
 registrant's auditors any material weaknesses in internal controls; and (b)
any fraud, whether or not material, that involves management or other     
  employees who have a significant role in the registrant's internal controls;
and                                                                       

6. The registrant's other certifying officers and I have indicated in this      
quarterly report whether or not there were significant changes in internal      
controls or in other factors that could significantly affect internal controls  
subsequent to the date of our most recent evaluation, including any corrective  
actions with regard to significant deficiencies and material weaknesses.        

Date:  February 12, 2003                                                        

/s/  John J. Wilk                                                               
--------------------------------------------------                              
John J. Wilk                                                                    
Chief Financial Officer                                                         

10-Q 13th Page of 14 TOC 1st Previous Next ↓Bottom Just 13th
 Certification

Pursuant to 18 U.S.C.ss.1350, the undersigned officer of TransNet Corporation   
(the "Corporation"), hereby certifies, to the best of his knowledge, that the   
Corporation's Quarterly Report on Form 10-Q for the quarter ended December 31,  
2002 (the "Report") fully complies with the requirements of Section 13(a) or    
15(d), as applicable, of the Securities Exchange Act of 1934 and that the       
information contained in the Report fairly presents, in all material respects,  
the financial condition and results of operations of the Corporation.           

Dated:  February 12, 2003                                                       

/s/   Steven J. Wilk                                                            
--------------------------------------------------                              
Steven J. Wilk                                                                  
Chief Executive Officer                                                         

This certification is being furnished solely pursuant to 18 U.S.C ss.1350 and is
not being filed as part of the Report or as a separate disclosure document      

10-Q Last Page of 14 TOC 1st Previous Next ↓Bottom Just 14th
 Certification

Pursuant to 18 U.S.C.ss.1350, the undersigned officer of TransNet Corporation.  
(the "Corporation"), hereby certifies, to the best of his knowledge, that the   
Corporation's Quarterly Report on Form 10-Q for the quarter ended December 31,  
2002 (the "Report") fully complies with the requirements of Section 13(a) or    
15(d), as applicable, of the Securities Exchange Act of 1934 and that the       
information contained in the Report fairly presents, in all material respects,  
the financial condition and results of operations of the Corporation.           

Dated:  February 12, 2003                                                       

/s/   John J. Wilk                                                              
---------------------------------------------                                   
John J. Wilk                                                                    
Chief Financial Officer                                                         

This certification is being furnished solely pursuant to 18 U.S.C ss.1350 and is
not being filed as part of the Report or as a separate disclosure document

10-Q	1st Page of 14	TOC	↑Top	Previous	Next	↓Bottom	Just 1st

10-Q	2nd Page of 14	TOC	1st	Previous	Next	↓Bottom	Just 2nd

10-Q	3rd Page of 14	TOC	1st	Previous	Next	↓Bottom	Just 3rd

10-Q	4th Page of 14	TOC	1st	Previous	Next	↓Bottom	Just 4th

10-Q	5th Page of 14	TOC	1st	Previous	Next	↓Bottom	Just 5th

10-Q	6th Page of 14	TOC	1st	Previous	Next	↓Bottom	Just 6th

10-Q	7th Page of 14	TOC	1st	Previous	Next	↓Bottom	Just 7th

10-Q	8th Page of 14	TOC	1st	Previous	Next	↓Bottom	Just 8th

10-Q	9th Page of 14	TOC	1st	Previous	Next	↓Bottom	Just 9th

10-Q	10th Page of 14	TOC	1st	Previous	Next	↓Bottom	Just 10th

10-Q	11th Page of 14	TOC	1st	Previous	Next	↓Bottom	Just 11th

10-Q	12th Page of 14	TOC	1st	Previous	Next	↓Bottom	Just 12th

10-Q	13th Page of 14	TOC	1st	Previous	Next	↓Bottom	Just 13th

10-Q	Last Page of 14	TOC	1st	Previous	Next	↓Bottom	Just 14th

Dates Referenced Herein and Documents Incorporated by Reference

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

Filed on:	2/13/03
	2/12/03	10	14
	2/11/03	1
For Period End:	12/31/02	1	14
	6/30/02	7		10-K
	12/31/01	2	8	10-Q
				List all Filings

↑Top

Filing Submission 0000913906-03-000001 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Transnet Corp – ‘10-Q’ for 12/31/02

On: Thursday, 2/13/03, at 4:16pm ET · For: 12/31/02 · Accession #: 913906-3-1 · File #: 0-08693

Previous ‘10-Q’: ‘10-Q’ on 11/13/02 for 9/30/02 · Next: ‘10-Q’ on 5/13/03 for 3/31/03 · Latest: ‘10-Q’ on 5/23/11 for 3/31/11

Quarterly Report — Form 10-QFiling Table of Contents

Document Table of Contents

Dates Referenced Herein and Documents Incorporated by Reference

Quarterly Report — Form 10-Q
Filing Table of Contents