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, 2004
Commission File No. 0-8828
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 accelerated filer (as defined in Rule 12b-2 of the Act).
Yes o No ý
At November 8, 2004, the registrant had outstanding 3,176,483 shares of Common Stock, $.03 Par Value.
OPTELECOM, INC.
FORM 10-Q
TABLE OF CONTENTS
0;
2
OPTELECOM, INC.
AS OF SEPTEMBER 30, 2004 and DECEMBER 31, 2003
(Unaudited)
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2004 |
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2003 |
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ASSETS |
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CURRENT ASSETS |
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Cash and cash equivalents |
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$ |
2,323,488 |
|
$ |
1,387,866 |
|
|
Accounts and contracts receivable, net |
|
3,432,767 |
|
2,834,956 |
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||
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Inventories, net |
|
3,151,105 |
|
2,661,000 |
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||
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Deferred tax asset—current |
|
794,256 |
|
1,069,479 |
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||
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Prepaid expenses and other current assets |
|
268,680 |
|
340,078 |
|
||
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Total current assets |
|
9,970,296 |
|
8,293,379 |
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Property and equipment, net |
|
1,610,288 |
|
1,350,366 |
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Restricted certificate of deposit |
|
134,759 |
|
129,368 |
|
||
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Deferred tax asset—non-current |
|
482,115 |
|
658,784 |
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Other assets |
|
61,984 |
|
— |
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TOTAL ASSETS |
|
$ |
12,259,442 |
|
$ |
10,431,897 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES |
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Accounts payable |
|
$ |
1,184,162 |
|
$ |
1,052,410 |
|
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Accrued payroll |
|
275,115 |
|
315,889 |
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Commissions payable |
|
212,331 |
|
287,767 |
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Current portion of notes payable |
|
45,000 |
|
67,500 |
|
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Other current liabilities |
|
915,614 |
|
587,835 |
|
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Total current liabilities |
|
2,632,222 |
|
2,311,401 |
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Notes and leases payable |
|
67,500 |
|
90,000 |
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Security deposits payable |
|
11,526 |
|
11,526 |
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Deferred rent liability |
|
155,805 |
|
62,494 |
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Total liabilities |
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2,867,053 |
|
2,475,421 |
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COMMITMENTS AND CONTINGENCIES |
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STOCKHOLDERS’ EQUITY |
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Common stock, $.03 par value—shares authorized, 15,000,000; issued and outstanding, 3,174,707 and 3,114,898 shares as of September 30, 2004 and December 31, 2003, respectively |
|
95,240 |
|
93,446 |
|
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Additional paid-in capital |
|
11,210,236 |
|
10,942,206 |
|
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Other comprehensive loss |
|
(29,020 |
) |
(19,672 |
) |
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Treasury stock, 162,672 shares, at cost |
|
(1,265,047 |
) |
(1,265,047 |
) |
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Accumulated deficit |
|
(619,020 |
) |
(1,794,457 |
) |
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Total stockholders’ equity |
|
9,392,389 |
|
7,956,476 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
12,259,442 |
|
$ |
10,431,897 |
|
See notes to unaudited consolidated financial statements.
3
OPTELECOM, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30,
(Unaudited)
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2004 |
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2003 |
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Revenues |
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$ |
5,529,720 |
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$ |
4,498,752 |
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Cost of goods sold |
|
2,385,908 |
|
1,992,054 |
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Gross profit |
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3,143,812 |
|
2,506,698 |
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Operating expenses: |
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|
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Engineering |
|
397,717 |
|
386,847 |
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Selling and marketing |
|
897,552 |
|
706,108 |
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General and administrative |
|
1,093,736 |
|
753,859 |
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Total operating expenses |
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2,389,005 |
|
1,846,814 |
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Income from operations |
|
754,807 |
|
659,884 |
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Other income (expense): |
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|
|
|
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Interest income (expense), net |
|
4,344 |
|
(3,480 |
) |
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Income before income taxes |
|
759,151 |
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