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 December 31, 2003 |
Commission file number 0-12829 |
GRADCO SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
|
Nevada |
|
95-3342977 |
|
(State or other jurisdiction of |
|
(I.R.S. Employer |
|
incorporation or organization) |
|
Identification No.) |
|
|
|
|
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30-A Mauchly, Irvine, California |
|
92618 |
|
(Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including area code (949) 754-0140
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 accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes o 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:
|
Class |
|
Number of
Shares Outstanding |
|
|
|
|
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Common Stock,
without |
|
229,026 |
GRADCO SYSTEMS, INC.
INDEX
2
GRADCO SYSTEMS, INC.
(Dollars in thousands)
|
|
|
December
31, |
|
March 31, |
|
||
|
|
|
(Unaudited) |
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|
|
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ASSETS |
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|
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|
|
||
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Current assets: |
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|
|
|
|
||
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Cash and cash equivalents |
|
$ |
3,124 |
|
$ |
2,719 |
|
|
Restricted cash |
|
600 |
|
1,000 |
|
||
|
Accounts receivable, less allowance for doubtful accounts of $232 and $212, respectively |
|
3,755 |
|
4,092 |
|
||
|
Inventories, less allowance for obsolescence of $338 and $354, respectively |
|
672 |
|
714 |
|
||
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Prepaid expenses and refundable deposits |
|
127 |
|
438 |
|
||
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Total current assets |
|
8,278 |
|
8,963 |
|
||
|
Property and equipment, net |
|
304 |
|
160 |
|
||
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Cash surrender value of life insurance |
|
281 |
|
251 |
|
||
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Other assets |
|
1,120 |
|
1,270 |
|
||
|
|
|
$ |
9,983 |
|
$ |
10,644 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
||
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Current liabilities: |
|
|
|
|
|
||
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Accounts payable |
|
$ |
2,231 |
|
$ |
1,372 |
|
|
Note payable to bank |
|
466 |
|
416 |
|
||
|
Notes payable to suppliers |
|
2,304 |
|
3,350 |
|
||
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Accrued expenses |
|
178 |
|
166 |
|
||
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Income taxes payable |
|
258 |
|
261 |
|
||
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Net liabilities of discontinued operations |
|
47 |
|
79 |
|
||
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Total current liabilities |
|
5,484 |
|
5,644 |
|
||
|
Deferred compensation obligation |
|
367 |
|
328 |
|
||
|
|
|
|
|
|
|
||
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Shareholders’ equity: |
|
|
|
|
|
||
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Common stock, no par value; authorized 30,000,000 shares, 229,026 shares issued and outstanding at December 31, 2003 and 264,205 shares at March 31, 2003 |
|
44,786 |
|
46,454 |
|
||
|
Accumulated deficit |
|
(43,482 |
) |
(42,225 |
) |
||
|
Accumulated other comprehensive income |
|
2,828 |
|
2,112 |
|
||
|
Less cost of common stock in treasury, no shares at December 31, 2003 and 35,179 shares at March 31, 2003 |
|
— |
|
(1,669 |
) |
||
|
Total shareholders’ equity |
|
4,132 |
|
4,672 |
|
||
|
|
|
$ |
9,983 |
|
$ |
10,644 |
|
See accompanying notes to unaudited consolidated financial statements.
3
GRADCO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
|
December
31, |
|
December
31, |
|
December
31, |
|
December
31, |
|
||||
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Revenues: |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
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Net sales |
|
$ |
3,138 |
|
$ |
4,526 |
|
$ |
12,328 |
|
$ |
13,243 |
|
|
Development engineering services |
|
8 |
|
— |
|
885 |
|
433 |
|
||||
|
Licenses and royalties |
|
2 |
|
3 |
|
6 |
|
12 |
|
||||
|
|
|
3,148 |
|
4,529 |
|
13,219 |
|
13,688 |
|
||||
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Costs and expenses: |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
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Cost of sales |
|
2,633 |
|
4,022 |
|
10,426 |
|
10,931 |
|
||||
|
Research and development |
|
35 |
|
737 |
|
214 |
|
1,223 |
|
||||
|
Selling, general and administrative |
|
1,181 |
|
1,174 |
|
3,452 |
|
3,777 |
|
||||
|
Foreign currency transaction losses |
|
148 |
|
(19 |
) |
419 |
|
309 |
|
||||
|
|
|
3,997 |
|
5,914 |
|
14,511 |
|
16,240 |
|
||||
|
Loss from operations |
|
(849 |
) |
(1,385 |
) |
(1,292 |
) |
(2,552 |
) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest expense |
|
(2 |
) |
— |
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