UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended May 31, 2004
Commission File No. 0-24414
RF Monolithics, Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 75-1638027 | |
| (State or other jurisdiction of incorporation of organization) |
(I.R.S. Employer Identification) | |
| 4441 Sigma Road, Dallas, Texas | 75244 | |
| (Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code (972) 233-2903
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 x Yes ¨ No
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes x No
As of June 30, 2004: 7,744,320 shares of the Registrant’s Common Stock, $.001 par value, were outstanding.
FORM 10-Q
QUARTER ENDED MAY 31, 2004
TABLE OF CONTENTS
-1-
PART I. CONDENSED FINANCIAL INFORMATION
ITEM 1. CONDENSED FINANCIAL STATEMENTS
RF MONOLITHICS, INC.
CONDENSED BALANCE SHEETS
(In Thousands)
| May 31, 2004 |
August 31, 2003 |
|||||||
| (Unaudited) | ||||||||
| ASSETS |
||||||||
| CURRENT ASSETS: |
||||||||
| Cash and cash equivalents |
$ | 734 | $ | 216 | ||||
| Trade receivables - net |
9,013 | 6,913 | ||||||
| Inventories - net |
8,258 | 7,894 | ||||||
| Prepaid expenses and other |
359 | 322 | ||||||
| Total current assets |
18,364 | 15,345 | ||||||
| PROPERTY AND EQUIPMENT - Net |
7,586 | 9,201 | ||||||
| OTHER ASSETS - Net |
262 | 277 | ||||||
| TOTAL |
$ | 26,212 | $ | 24,823 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| CURRENT LIABILITIES: |
||||||||
| Current portion of long-term debt |
$ | 79 | $ | 3,206 | ||||
| Accounts payable - trade |
3,171 | 1,768 | ||||||
| Accrued expenses and other current liabilities |
1,800 | 1,477 | ||||||
| Total current liabilities |
5,050 | 6,451 | ||||||
| LONG-TERM DEBT - Less current portion |
61 | 892 | ||||||
| OTHER LIABILITIES |
289 | 190 | ||||||
| STOCKHOLDERS’ EQUITY: |
||||||||
| Common stock: 7,736 and 7,260 shares issued |
8 | 7 | ||||||
| Additional paid-in capital |
35,964 | 33,487 | ||||||
| Common stock warrants |
128 | 842 | ||||||
| Treasury stock, 36 common shares at cost |
(227 | ) | (227 | ) | ||||
| Accumulated deficit |
(14,872 | ) | (16,550 | ) | ||||
| Unearned compensation |
(189 | ) | (269 | ) | ||||
| Total stockholders’ equity |
20,812 | 17,290 | ||||||
| TOTAL |
$ | 26,212 | $ | 24,823 | ||||
See notes to condensed financial statements.
-2-
CONDENSED STATEMENTS OF OPERATIONS - UNAUDITED
(In Thousands, Except Per-Share Amounts)
| Three Months Ended May 31, |
Nine Months Ended May 31, |
|||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
| SALES |
$ | 13,568 | $ | 10,818 | $ | 35,980 | $ | 31,845 | ||||||||
| COST OF SALES |
9,144 | 10,418 | 24,658 | 25,826 | ||||||||||||
| GROSS PROFIT |
4,424 | 400 | 11,322 | 6,019 | ||||||||||||
| OPERATING EXPENSES: |
||||||||||||||||
| Research and development |
1,358 | 833 | 3,199 | 2,394 | ||||||||||||
| Sales and marketing |
1,442 | 1,230 | 4,029 | 3,609 | ||||||||||||
| General and administrative |
778 | 683 | 2,257 | 1,987 | ||||||||||||
| Restructuring and impairment |
— | 1,216 | — | 1,216 | ||||||||||||
| Total operating expenses |
3,578 | 3,962 | 9,485 | 9,206 | ||||||||||||
| INCOME (LOSS) FROM OPERATIONS |
846 | (3,562 | ) | 1,837 | (3,187 | ) | ||||||||||
| OTHER INCOME (EXPENSE): |
||||||||||||||||
| Interest income |
1 | — | 1 | 3 | ||||||||||||
| Interest expense |
(40 | ) | (141 | ) | (212 | ) | (458 | ) | ||||||||
| Other |
(12 | ) | 9 | 62 | 71 | |||||||||||
| Total other income (expense) |
(51 | ) | (132 | ) | (149 | ) | (384 | ) | ||||||||
| INCOME (LOSS) BEFORE INCOME TAXES |
795 | (3,694 | ) | 1,688 | (3,571 | ) | ||||||||||
| INCOME TAX EXPENSE |
2 | 8 | 10 | 20 | ||||||||||||
| NET INCOME (LOSS) |
$ | 793 | $ | (3,702 | ) | $ | 1,678 | $ | (3,591 | ) | ||||||
| EARNINGS (LOSS) PER SHARE |
||||||||||||||||
| Basic |
$ | 0.10 | $ | (0.52 | ) | $ | 0.22 | $ | (0.50 | ) | ||||||
| Diluted |
$ | 0.09 | $ | (0.52 | ) | $ | 0.20 | $ | (0.50 | ) | ||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
||||||||||||||||
| Basic |
7,722 | 7,168 | 7,534 | 7,152 | ||||||||||||
| Diluted |
8,455 | 7,168 | 8,256 | 7,152 | ||||||||||||
See notes to condensed financial statements.
-3-
CONDENSED STATEMENTS OF CASH FLOWS - UNAUDITED
(In Thousands)
| Nine Months Ended May 31, |
||||||||
| 2004 |
2003 |
|||||||
| OPERATING ACTIVITIES: |
||||||||
| Net income (loss) |
$ | 1,678 | $ | (3,591 | ) | |||
| Noncash items included in net income (loss): |
||||||||
| Depreciation and amortization |
2,192 | 3,004 | ||||||
| Special charge for inventory obsolescence, restructuring and impairment |
— | 3,846 | ||||||
| Provision for trade receivable allowance |
4 | 25 | ||||||
| Amortization of unearned compensation |
154 | 134 | ||||||
| Gain on disposal of property and equipment |
(10 | ) | (25 | ) | ||||
| Sub-total |
2,340 | 6,984 | ||||||
| Change in operating working capital: |
||||||||
| Trade receivables |
(2,104 | ) | 825 | |||||
| Inventories |
(364 | ) | 552 | |||||
| Prepaid expenses and other |
(37 | ) | 46 | |||||
| Accounts payable - trade |
1,403 | (504 | ) | |||||
| Accrued expenses and other liabilities |
185 | (132 | ) | |||||
| Sub-total |
(917 | ) | 787 | |||||
| Net cash provided by operating activities |
3,101 | 4,180 | ||||||
| INVESTING ACTIVITIES: |
||||||||
| Acquisition of property and equipment |
(439 | ) | (2,530 | ) | ||||
| Proceeds from disposition of property and equipment |
158 | 37 | ||||||
| Change in other assets |
(34 | ) | 49 | |||||
| Net cash used in investing activities |
(315 | ) | (2,444 | ) | ||||
| FINANCING ACTIVITIES: |
||||||||
| Borrowings on building mortgage |
— | 1,050 | ||||||
| Repayments on line of credit - net |
(2,696 | ) | (2,454 | ) | ||||
| Repayments on building mortgage and other |
(1,262 | ) | (497 | ) | ||||
| Proceeds from common stock issued under employee stock programs |
1,690 | 129 | ||||||
| Net cash used in financing activities |
(2,268 | ) | (1,772 | ) | ||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
518 | (36 | ) | |||||
| CASH AND CASH EQUIVALENTS: |
||||||||
| Beginning of period |
216 | 273 | ||||||
| End of period |
$ | 734 | $ | 237 | ||||
| SUPPLEMENTAL INFORMATION: |
||||||||
| Interest paid |
$ | 70 | $ | 286 | ||||
| Income taxes paid |
$ | 3 | ||||||