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Table of Contents
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
For the Quarterly Period Ended November 30, 2002
 
Commission File No. 0-24414
 
 
RF Monolithics, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware
  
75-1638027
(State or other jurisdiction of
  
(I.R.S. Employer
incorporation of organization)
  
Identification)
4347 Sigma Road, Dallas, Texas
  
75244
(Address of principal executive offices)
  
(Zip Code)
 
Registrant’s telephone number, including area code (972) 233-2903
 
 
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.  x  Yes    ¨  No
 
As of December 31, 2002: 7,131,869 shares of the Registrant’s Common Stock, $.001 par value, were outstanding.
 

Table of Contents
 
RF MONOLITHICS, INC.
 
FORM 10-Q
 
QUARTER ENDED NOVEMBER 30, 2002
 
TABLE OF CONTENTS
 
Item Number
        
Page
Part I.    CONDENSED CONSOLIDATED FINANCIAL INFORMATION
1.
   
Condensed Consolidated Financial Statements:
     
       
2
       
3
       
4
       
5
2.
      
8
3.
      
21
4.
      
21
    
PART II.    OTHER INFORMATION
     
6.
      
21
    
SIGNATURES
     
    
CERTIFICATIONS
     
    
INDEX TO EXHIBITS
     
 

-1-

Table of Contents
 
PART I.  CONDENSED CONSOLIDATED FINANCIAL INFORMATION
 
ITEM 1.  CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
RF MONOLITHICS, INC.
                  
CONDENSED CONSOLIDATED BALANCE SHEETS
                  
(In Thousands)
                  
    
November 30,
2002
     
August 31,
2002
  
    
(Unaudited)
         
ASSETS
                  
CURRENT ASSETS:
                  
Cash and cash equivalents
   
$
94
 
   
$
273
 
Trade receivables—net
   
 
6,593
 
   
 
7,374
 
Inventories
   
 
10,799
 
   
 
10,642
 
Prepaid expenses and other
   
 
417
 
   
 
429
 
    
  
Total current assets
   
 
17,903
 
   
 
18,718
 
PROPERTY AND EQUIPMENT—Net
   
 
10,436
 
   
 
11,353
 
OTHER ASSETS—Net
   
 
363
 
   
 
439
 
    
  
TOTAL
   
$
28,702
 
   
$
30,510
 
    
  
LIABILITIES AND STOCKHOLDERS’ EQUITY
                  
CURRENT LIABILITIES:
                  
Current portion of long-term debt
   
$
2,600
 
   
$
3,600
 
Accounts payable—trade
   
 
1,630
 
   
 
2,238
 
Accrued expenses and other current liabilities
   
 
1,656
 
   
 
1,603
 
    
  
Total current liabilities
   
 
5,886
 
   
 
7,441
 
LONG-TERM DEBT—Less current portion
   
 
2,471
 
   
 
2,844
 
OTHER LIABILITIES
   
 
235
 
   
 
216
 
STOCKHOLDERS’ EQUITY:
                  
Common stock: 7,132 and 7,131 shares issued
   
 
7
 
   
 
7
 
Additional paid-in capital
   
 
32,940
 
   
 
32,969
 
Common stock warrants
   
 
800
 
   
 
800
 
Treasury stock, 36 common shares at cost
   
 
(227
)
   
 
(227
)
Accumulated deficit
   
 
(13,155
)
   
 
(13,209
)
Unearned compensation
   
 
(255
)
   
 
(331
)
    
  
Total stockholders’ equity
   
 
20,110
 
   
 
20,009
 
    
  
TOTAL
   
$
28,702
 
   
$
30,510
 
    
  
 
See notes to condensed consolidated financial statements.
 

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Table of Contents
RF MONOLITHICS, INC.
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS—UNAUDITED
(In Thousands, Except Per-Share Amounts)
    
Three Months Ended
  
    
November 30,
  
    
2002
     
2001
  
SALES
   
$
10,628
 
   
$
11,680
 
COST OF SALES
   
 
7,752
 
   
 
9,201
 
    
  
GROSS PROFIT
   
 
2,876
 
   
 
2,479
 
OPERATING EXPENSES:
                  
Research and development
   
 
788
 
   
 
740
 
Sales and marketing
   
 
1,220
 
   
 
1,181
 
General and administrative
   
 
665
 
   
 
730
 
    
  
Total operating expenses
   
 
2,673
 
   
 
2,651
 
    
  
INCOME (LOSS) FROM OPERATIONS
   
 
203
 
   
 
(172
)
OTHER INCOME (EXPENSE):
                  
Interest income
   
 
3
 
   
 
2
 
Interest expense
   
 
(177
)
   
 
(383
)
Other expense
   
 
31
 
   
 
(12
)
    
  
Total
   
 
(143
)
   
 
(393
)
    
  
INCOME (LOSS) BEFORE INCOME TAXES
   
 
60
 
   
 
(565
)
INCOME TAX EXPENSE
   
 
6
 
   
 
—  
 
    
  
NET INCOME (LOSS)
   
$
54
 
   
$
(565
)
    
  
EARNINGS PER SHARE
                  
Basic
   
$
0.01
 
   
$
(0.08
)
    
  
Diluted
   
$
0.01
 
   
$
(0.08
)
    
  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
                  
Basic
   
 
7,132
 
   
 
7,068
 
    
  
Diluted
   
 
7,177
 
   
 
7,068
 
    
  
See notes to condensed consolidated financial statements.
 

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Table of Contents
RF MONOLITHICS, INC.
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS—UNAUDITED
(In Thousands)
 
    
Three Months Ended
November 30,
  
    
2002
     
2001
  
OPERATING ACTIVITIES:
                  
Net income (loss)
   
$
54
 
   
$
(565
)
Noncash items included in net (loss) income:
                  
Depreciation and amortization
   
 
1,042
 
   
 
1,366
 
Provision for trade receivable allowance
   
 
2
 
   
 
9
 
Amortization of unearned compensation
   
 
47
 
   
 
68
 
Gain on disposal of property and equipment
   
 
(14
)
   
 
—  
 
    
  
Net income (loss) adjusted for noncash transactions
   
 
1,131
 
   
 
878
 
    
  
Change in working capital:
                  
Trade receivables
   
 
779
 
   
 
(256
)
Inventories
   
 
(157
)
   
 
982
 
Prepaid expenses and other
   
 
12
 
   
 
37
 
Accounts payable—trade
   
 
(608
)
   
 
(661
)
Accrued expenses and other liabilities
   
 
72
 
   
 
(232
)
    
  
Net cash provided by (used in) working capital
   
 
98
 
   
 
(130
)
    
  
Net cash provided by operating activities
   
 
1,229
 
   
 
748
 
    
  
INVESTING ACTIVITIES:
                  
Acquisition of property and equipment
   
 
(106
)
   
 
(16
)
Proceeds from disposition of property and equipment
   
 
14
 
   
 
174
 
Change in other assets
   
 
57
 
   
 
(4
)
    
  
Net cash provided by (used in) investing activities
   
 
(35
)
   
 
154
 
    
  
FINANCING ACTIVITIES:
                  
Borrowings on notes payable
   
 
10,393
 
   
 
10,909
 
Repayments of notes payable
   
 
(11,766
)
   
 
(11,976
)
Repayments of capital lease obligations
   
 
—  
 
   
 
(16
)
Repayments of accounts payable—construction and equipment
   
 
—  
 
   
 
(37
)
Proceeds from common stock and warrants issued
   
 
—  
 
   
 
—  
 
    
  
Net cash provided by (used in) financing activities
   
 
(1,373
)
   
 
(1,120
)
    
  
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
   
 
(179
)
   
 
(218
)
CASH AND CASH EQUIVALENTS:
                  
Beginning of period
   
 
273
 
   
 
332
 
    
  
End of period
   
$
94
 
   
$
114
 
    
  
SUPPLEMENTAL INFORMATION:
                  
Interest paid
   
$
115
 
   
$
236
 
    
  
Income taxes paid
   
$
—  
 
   
$
—  
 
    
  
See notes to condensed consolidated financial statements.
 

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Table of Contents
 
RF MONOLITHICS, INC.
 
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS—UNAUDITED
 
1.    INTERIM FINANCIAL STATEMENTS
 
The accompanying condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments and accruals, that in the opinion of the management of RF Monolithics, Inc. (the “Company” or “RFM”) are necessary for a fair presentation of the Company’s financial position as of November 30, 2002, and the results of operations and cash flows for the three months ended November 30, 2002 and 2001. These unaudited interim condensed financial statements should be read in conjunction with the audited financial statements of the Company and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended August 31, 2002, filed with the Securities and Exchange Commission.