|
UNITED
STATES | ||
|
SECURITIES
AND EXCHANGE COMMISSION | ||
|
WASHINGTON,
D.C. 20549 | ||
|
FORM
10-Q | ||
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(Mark
One) | ||
|
[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 | ||
|
For
the quarterly period ended March 31,
2005 | ||
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OR | ||
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[
] 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 |
1-13550 | |
|
HAUPPAUGE
DIGITAL, INC. | ||
|
(Exact
name of registrant as specified in its
charter) | ||
|
Delaware |
11-3227864 | |
|
(State
or other jurisdiction of incorporation or
organization) |
(I.R.S.
Employer identification No.) | |
|
91
Cabot Court, Hauppauge, New York 11788 | ||
|
(Address
of principal executive offices) | ||
|
(631)
434-1600 | ||
|
(Registrant’s
telephone number, including area code
) | ||
|
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
by check mark whether the registrant is an accelerated filer (as defined
in Rule 12b-2 of the Exchange Act) | |||
|
Yes
____ |
No
X | ||
|
| |||
|
As
of May 3, 2005, 9,493,011 shares of .01 par value Common Stock of the
registrant were outstanding, not including treasury
shares. | |||
|
PART
I. FINANCIAL
INFORMATION |
|
Item
1. Financial Statements |
Page
No. |
|
Condensed
Consolidated Balance Sheets -
March
31, 2005 (unaudited) and September 30, 2004
(audited) |
5 |
|
Condensed
Consolidated Statements of Income -
Three
Months ended March 31, 2005 (unaudited) and 2004
(unaudited) |
6 |
|
Condensed
Consolidated Statements of Income -
Six
Months ended March 31, 2005 (unaudited) and 2004
(unaudited) |
7 |
|
Condensed
Consolidated Statements of Other Comprehensive Income
-
Three
and six months ended March 31, 2005 (unaudited) and 2004
(unaudited) |
8 |
|
Condensed
Consolidated Statements of Cash Flows -
Six
Months ended March 31, 2005 (unaudited) and 2004
(unaudited) |
9 |
|
Notes
to Condensed Consolidated Financial Statements
|
10
-17 |
|
Item
2. Management's Discussion and Analysis of Financial Condition and Results
of Operations |
18
-37 |
|
|
|
|
Item
3. Quantitative and Qualitative Disclosures about Market
Risks |
38-39 |
|
Item
4. Controls and Procedures |
39 |
|
PART
II. OTHER INFORMATION
|
|
|
Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds |
40 |
|
Item
6. Exhibits |
40 |
|
SIGNATURES |
41 |
|
Item
1. Financial Statements |
|
HAUPPAUGE
DIGITAL, INC. AND SUBSIDIARIES |
|
CONDENSED
CONSOLIDATED BALANCE SHEETS |
|
March
31, 2005
(unaudited) |
September
30,
2004
(audited |
) | |||||
Assets:
|
|
||||||
Current
Assets: |
|
|
|||||
Cash
and cash equivalents |
$ |
8,976,708 |
$ |
8,661,589 |
|||
Receivables,
net of various allowances |
16,832,937
|
13,593,907 |
|||||
Inventories |
8,359,476
|
8,477,254 |
|||||
|
Prepaid
expenses and other current assets |
1,117,222
|
770,745 |
|||||
Total
current assets |
35,286,343
|
31,503,495 |
|||||
Property,
plant and equipment, net |
525,800
|
489,370 |
|||||
|
Security
deposits and other non current assets |
77,952
|
77,934 |
|||||
|
|
$ |
35,890,095 |
$ |
32,070,799 |
|||
Liabilities
and Stockholders’ Equity: |
|||||||
|
|
|
||||||
Current
Liabilities: |
|||||||
Accounts
payable |
$ |
13,577,432 |
$ |
13,243,966 |
|||
Accrued
expenses |
4,650,351
|
4,256,970 |
|||||
|
Income
taxes payable |
263,871
|
242,438 |
|||||
Total
current liabilities |
18,491,654
|
17,743,374 |
|||||
|
|
|
||||||
Stockholders'
Equity: |
|
||||||
Common
stock $.01 par value; 25,000,000 shares authorized, 10,091,496 and
9,759,465 issued, respectively |
100,915
|
97,595 |
|||||
Additional
paid-in capital |
13,566,486
|
12,913,497 |
|||||
Retained
earnings |
4,016,290
|
1,925,135 |
|||||
Accumulated
other comprehensive income |
1,448,820
|
975,511 |
|||||
|
Treasury
Stock, at cost, 602,067 and 567,067 shares |
(1,734,070 |
) |
(1,584,313 |
) | |||
|
Total
stockholders' equity |
17,398,441
|
14,327,425 |
|||||
$ |
35,890,095 |
$ |
32,070,799 |
|
HAUPPAUGE
DIGITAL, INC. AND SUBSIDIARIES |
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME |
|
Three
months ended March 31, | |||||||
|
2005 |
2004 |
||||||
Net
sales |
$ |
20,362,293 |
$ |
16,804,283 |
|||
|
Cost
of sales |
15,542,399
|
11,873,313
|
|||||
Gross
profit |
4,819,894
|
4,930,970
|
|||||
|
|
|
||||||
Selling,
general and administrative expenses |
3,326,814
|
3,223,769
|
|||||
Research
& development expenses |
631,437
|
444,390
|
|||||
Arbitration
proceeding |
-
|
206,250
|
|||||
Litigation
proceeding |
-
|
500,000
|
|||||
|
Income
from operations |
861,643
|
556,561
|
|||||
|
|
|
||||||
Other
Income: |
|
|
|||||
Interest
income |
3,150
|
1,397
|
|||||
|
Foreign
currency |
7,672
|
33,232
|
|||||
|
Other
income |
10,822
|
34,629
|
|||||
Income
before taxes on income |
872,465
|
591,190
|
|||||
|
Tax
provision |
45,000
|
46,800
|
|||||
|
Net
income |
$ |
827,465
|
$ |
544,390 |
|||
|
|
|
||||||
Net
income per share: |
|
|
|||||
Basic
|
$ |
0.09 |
$ |
0.06 |
|||
|
Diluted |
$ |
0.08 |
$ |
0.06 |
|||
|
HAUPPAUGE
DIGITAL, INC. AND SUBSIDIARIES |
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME |
|
Six
months ended March 31, | |||||||
|
2005 |
2004 |
||||||
Net
sales |
$ |
43,722,736 |
$ |
35,034,581 |
|||
|
Cost
of sales |
33,591,477
|
25,521,988
|
|||||
Gross
profit |
10,131,259
|
9,512,593
|
|||||
|
|
|
||||||
Selling,
general and administrative expenses |
6,753,870
|
6,344,385
|
|||||
Research
& development expenses |
1,188,967
|
854,664
|
|||||
Arbitration
proceeding |
</ | ||||||