UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
Quarterly Report Under Section 13
or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended September 30,
2002
Commission File No.
OPTELECOM, Inc.
(Exact Name of Registrant as
Specified in its Charter)
DELAWARE
(State or other jurisdiction of incorporation or organization)
52-1010850
(IRS employer identification number)
9300 GAITHER ROAD, GAITHERSBURG, MARYLAND 20877
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: (301) 840-2121.
Securities registered pursuant to Section 12(b) of the Act: None.
Securities registered pursuant to Section 12(g) of the Act: Common Stock $0.03 Par Value.
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 ý No o
At November 13, 2002, the registrant had outstanding 2,876,553 shares of Common Stock, $.03 Par Value.
OPTELECOM, INC.
FORM 10-Q
TABLE OF CONTENTS
2
OPTELECOM, INC.
AS OF SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
(Unaudited)
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2002 |
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2001 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
97,989 |
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$ |
58,869 |
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Accounts and contracts receivable, net |
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2,369,739 |
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2,478,045 |
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Inventories, net |
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2,920,734 |
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2,795,648 |
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Prepaid expenses and other current assets |
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173,919 |
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137,398 |
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Total current assets |
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5,562,381 |
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5,469,960 |
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Property and equipment, net |
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548,664 |
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774,351 |
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Restricted certificate of deposit |
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129,368 |
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129,368 |
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Other assets |
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25,978 |
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— |
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TOTAL ASSETS |
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$ |
6,266,391 |
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$ |
6,373,679 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
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$ |
1,013,908 |
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$ |
1,247,083 |
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Bank line-of-credit payable |
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1,086,326 |
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1,675,865 |
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Accrued payroll |
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275,746 |
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188,562 |
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Commissions payable |
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107,640 |
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144,018 |
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Current portion of leases payable |
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2,905 |
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19,673 |
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Current portion of notes payable |
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54,231 |
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489,110 |
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Other current liabilities |
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765,812 |
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453,700 |
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Total current liabilities |
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3,306,568 |
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4,218,011 |
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Long-Term Liabilities: |
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Notes payable |
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— |
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36,000 |
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Deferred rent liability |
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— |
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33,111 |
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TOTAL LIABILITIES |
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3,306,568 |
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4,287,122 |
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Stockholders’ Equity: |
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Common stock, $.03 par value - 15,000,000 shares authorized; 2,856,534 and 2,833,321 issued and outstanding as of September 30, 2002 and December 31, 2001, respectively |
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85,696 |
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85,000 |
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Discount on common stock |
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(11,161 |
) |
(11,161 |
) |
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Additional paid-in capital |
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10,101,474 |
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10,048,911 |
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Deferred compensation expense |
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(1,861 |
) |
(6,432 |
) |
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Foreign currency translation adjustment |
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98,270 |
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227,129 |
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Treasury stock, 162,672 shares, at cost |
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(1,265,047 |
) |
(1,265,047 |
) |
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Accumulated deficit |
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(6,047,548 |
) |
(6,991,843 |
) |
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TOTAL STOCKHOLDERS’ EQUITY |
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2,959,823 |
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2,086,557 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
6,266,391 |
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$ |
6,373,679 |
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See notes to consolidated financial statements.
3
OPTELECOM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
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2002 |
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2001 |
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Revenues |
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$ |
3,726,282 |
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$ |
3,810,620 |
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Cost of goods sold |
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1,557,689 |
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2,131,806 |
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Gross profit |
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2,168,593 |
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1,678,814 |
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Operating expenses: |
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Engineering |
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308,660 |
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287,627 |
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Selling and marketing |
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493,185 |
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553,737 |
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General and administrative |
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833,699 |
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592,495 |
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Total operating expenses |
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1,635,544 |
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1,433,859 |
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Operating income |
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533,049 |
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244,955 |
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Other expense: |
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Interest expense |
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17,887 |
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45,637 |
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Total other expense |
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17,887 |
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45,637 |
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Income before income taxes |
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515,162 |
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199,318 |
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Provision for income taxes |
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— |
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— |
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Net income |
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$ |
515,162 |
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$ |
199,318 |
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Basic net income per share |
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$ |
0.18 |
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$ |
0.07 |
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Diluted net income per share |
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