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, 2003
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)
12920 CLOVERLEAF CENTER DRIVE, GERMANTOWN, MARYLAND 20874
(Address of principal executive offices) (Zip code)
Registrant’s telephone number, including area code: (301) 444-2200.
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
Indicate by check mark whether the registrant is an acclerated filer (as defined in Exchange Act Rule 12b-2). Yes o No ý
At November 7, 2003, the registrant had outstanding 3,114,086 shares of Common Stock, $.03 Par Value.
OPTELECOM, INC.
FORM 10-Q
TABLE OF CONTENTS
2
OPTELECOM, INC.
AS OF SEPTEMBER 30, 2003 and DECEMBER 31, 2002
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2003 |
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2002 |
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(Unaudited) |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
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$ |
1,115,489 |
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$ |
46,012 |
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Accounts and contracts receivable, net |
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2,726,905 |
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3,164,721 |
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Inventories, net |
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3,030,940 |
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2,453,201 |
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Prepaid expenses and other current assets |
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241,926 |
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184,876 |
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Total current assets |
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7,115,260 |
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5,848,810 |
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Property and equipment, net |
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1,111,263 |
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522,983 |
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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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— |
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126,062 |
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TOTAL ASSETS |
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$ |
8,355,891 |
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$ |
6,627,223 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES |
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Accounts payable |
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$ |
896,017 |
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$ |
971,416 |
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Accrued payroll |
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372,663 |
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255,096 |
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Commissions payable |
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165,535 |
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369,197 |
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Bank line-of-credit payable |
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— |
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576,079 |
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Current portion of notes payable |
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45,000 |
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— |
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Current portion of leases payable |
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— |
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1,006 |
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Other current liabilities |
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867,349 |
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786,596 |
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Total current liabilities |
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2,346,564 |
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2,959,390 |
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Notes payable |
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112,500 |
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— |
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Deferred rent liability |
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45,450 |
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— |
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Total liabilities |
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2,504,514 |
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2,959,390 |
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STOCKHOLDERS’ EQUITY: |
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Common stock, $.03 par value - shares authorized, 15,000,000; issued and outstanding, 3,112,908 and 2,877,891 shares as of September 30, 2003 and December 31, 2002, respectively |
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93,387 |
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86,336 |
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Additional paid-in capital |
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10,825,137 |
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10,152,729 |
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Foreign currency translation |
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(4,600 |
) |
41,538 |
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Treasury stock, 162,672 shares, at cost |
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(1,265,047 |
) |
(1,265,047 |
) |
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Accumulated deficit |
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(3,797,500 |
) |
(5,347,723 |
) |
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Total stockholders’ equity |
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5,851,377 |
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3,667,833 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
8,355,891 |
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$ |
6,627,223 |
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See notes to unaudited consolidated financial statements.
3
OPTELECOM, INC.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
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2003 |
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2002 |
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Revenues |
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$ |
4,498,752 |
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$ |
3,726,282 |
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Cost of goods sold |
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1,992,054 |
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1,557,689 |
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Gross profit |
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2,506,698 |
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2,168,593 |
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Operating expenses: |
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Engineering |
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386,847 |
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308,660 |
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Selling and marketing |
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706,108 |
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493,185 |
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General and administrative |
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753,859 |
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833,699 |
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Total operating expenses |
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1,846,814 |
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1,635,544 |
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Income from operations |
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659,884 |
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533,049 |
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Interest income (expense), net |
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(3,480 |
) |
(17,887 |
) |
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Income before income taxes |
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656,404 |
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515,162 |
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Provision for income taxes |
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11,027 |
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— |
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Net income |
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$ |
645,377 |
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$ |
515,162 |
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Foreign currency translation |
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8,657 |
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(37,450 |
) |
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Comprehensive income |
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$ |
654,034 |
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$ |
477,712 |
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Basic earnings per share |
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$ |
0.21 |
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$ |
0.18 |
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Diluted earnings per share |
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$ |
0.20 |
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$ |
0.18 |
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Weighted average common shares outstanding — basic |
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3,088,340 |
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