SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended June 30, 2003 Commission file number 0-12829
GRADCO SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
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Nevada |
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95-3342977 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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incorporation or organization) |
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Identification No.) |
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39 Parker, Irvine, California |
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92618 |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code (949) 206-6100
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
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes No ý
Applicable Only to Corporate Issuers:
Indicate the number of shares outstanding of each of the issuer’s
classes of common stock, as of the latest practicable date:
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Number of Shares Outstanding |
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Class |
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at July 31, 2003 |
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Common Stock, without |
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229,026 |
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par value |
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GRADCO SYSTEMS, INC.
INDEX
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Consolidated Balance Sheets
at June 30, 2003 (Unaudited) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
GRADCO SYSTEMS, INC.
(Dollars in thousands)
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June 30, |
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March 31, |
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2003 |
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2003 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
2,193 |
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$ |
2,719 |
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Restricted cash |
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1,000 |
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1,000 |
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Accounts
receivable, less allowance for doubtful |
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5,374 |
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4,092 |
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Inventories,
less allowance for obsolescence |
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866 |
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714 |
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Prepaid expenses and refundable deposits |
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547 |
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438 |
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Total current assets |
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9,980 |
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8,963 |
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Property and equipment, net |
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245 |
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160 |
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Cash surrender value of life insurance |
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252 |
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251 |
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Other assets |
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1,130 |
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1,270 |
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$ |
11,607 |
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$ |
10,644 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
2,442 |
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$ |
1,372 |
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Note payable to bank |
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418 |
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416 |
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Notes payable to suppliers |
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2,937 |
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3,350 |
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Accrued expenses |
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204 |
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166 |
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Income taxes payable |
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260 |
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261 |
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Net liabilities of discontinued operations |
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53 |
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79 |
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Total current liabilities |
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6,314 |
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5,644 |
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Deferred compensation obligation |
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329 |
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328 |
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Shareholders’ equity: |
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Common stock, no
par value; authorized 30,000,000 |
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46,454 |
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46,454 |
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Accumulated deficit |
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(41,954 |
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(42,225 |
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Accumulated other comprehensive income |
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2,133 |
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2,112 |
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Less cost of common stock in treasury, 35,179 shares |
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(1,669 |
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(1,669 |
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Total shareholders’ equity |
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4,964 |
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4,672 |
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$ |
11,607 |
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$ |
10,644 |
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See accompanying notes to consolidated financial statements.
3
GRADCO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
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Three Months Ended |
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June 30, |
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June 30, |
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2003 |
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2002 |
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Revenues: |
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Net sales |
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$ |
5,318 |
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$ |
4,664 |
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Development engineering services |
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741 |
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375 |
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Licenses and royalties |
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2 |
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5 |
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6,061 |
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5,044 |
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Costs and expenses: |
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Cost of sales |
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4,650 |
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3,477 |
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Research and development |
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25 |
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395 |
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Selling, general and administrative |
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1,141 |
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1,431 |
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Foreign currency transaction losses |
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9 |
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304 |
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5,825 |
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5,607 |
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Income (loss) from operations |
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236 |
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(563 |
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Interest expense |
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(5 |
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— |
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Interest income |
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5 |
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7 |
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