10-Q 1 q101201b.txt 12/31/01 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 the Quarter ended December 31, 2001 Commission File Number 0-10125 Radiant Technology Corporation ------------------------------ (Exact name of registrant as specified in its charter) California 95-2800355 ---------------------- ---------------------- (State or other jurisdiction of (I.R.S Employer incorporation or organization) identification number) 1335 South Acacia Avenue, Fullerton, CA 92831 ----------------------------------------------- (Address of principal executive offices)(Zip Code) (714) 991 - 0200 ---------------- (Registrant's Telephone number, including area code) Inapplicable (Former name, former address and former fiscal year, if changed since last report) 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 X No ------ ------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, no par value 2,082,678 -------------------------- --------------------------------- (Class) (Outstanding at December 31, 2001) 1 RADIANT TECHNOLOGY CORPORATION INDEX Part I Financial Information:...........................................Page No. Condensed Balance Sheets- December 31, 2001 and September 30, 2001 (unaudited).................................3 Condensed Statements of Operations - Three Months Ended December 31, 2001 and 2000 (unaudited).......................4 Condensed Statements of Cash Flows - Three Months Ended December 31, 2001 and 2000 (unaudited).......................5 Notes to Condensed Financial Statements (unaudited)..................6 Management's Discussion and Analysis of Financial Condition and Results of Operation..................................6 Part II Other Information Legal Proceedings and Exhibits.......................................7 Signature Page.......................................................8 2 RADIANT TECHNOLOGY CORPORATION PART I FINANCIAL INFORMATION CONDENSED BALANCE SHEETS (UNAUDITED) ASSETS

~~ASSETS~~December ~~June~~31 ~~30,~~ September 30, 2001 ~~2000~~2001 ----------- ----------- Current Assets: Cash and Equivalents $1 821,~~143,533~~722 $ 1,~~528~~118,~~383~~630 Accounts Receivable ~~- Net 855~~599,~~688~~389 1407,~~844,418~~814 Inventories ~~902~~726,~~581~~174 ~~689~~845,~~133~~823 Prepaid Expenses 2074,~~261~~859 4253,~~411~~467 Deferred ~~Income~~ Taxes ~~170~~263,~~000~~500 ~~170~~283,~~000~~500 ----------- ----------- Total Current Assets 32,~~092~~485,~~063~~644 42,~~274~~709,~~345~~234 ~~Machinery~~Property and Equipment ~~- Net 282~~228,~~913~~927 ~~265~~252,~~671~~243 Other Assets -5,511 115,~~443~~035 ----------- ----------- Total Assets $3 2,~~374~~720,~~976~~082 $4 2,~~551~~966,~~459~~512 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: ~~Notes~~Accounts Payable $ -113,550 $~~500,000~~ ~~Accounts Payable 277~~274,~~783~~582 ~~397,164~~ Accrued Expenses ~~252~~179,~~903~~405 ~~254~~216,~~754~~080 Customer Deposits ~~178~~524,~~688~~609 ~~967~~200,~~269~~663 ~~Income~~----------- ~~Tax~~----------- ~~Payable 21,528 13,000~~ Total Current Liabilities ~~730~~817,~~902~~564 2691,~~132,187~~325 ----------- ----------- Stockholders' Equity Common Stock, ~~no par value~~ 1,167,608 1,~~154~~167,~~483~~608 Retained Earnings 1734,~~476,466~~910 1,~~264~~107,~~789~~579 ----------- ----------- Total Stockholders' Equity 21,~~644~~902,~~074~~518 2,~~419~~275,~~272~~187 ----------- ----------- Total Liabilities and Stockholders' Equity $3 2,~~374~~720,~~976~~082 $4 2,~~551~~966,~~459~~512 =========== ===========

3 RADIANT TECHNOLOGY CORPORATION PART I FINANCIAL INFORMATION-CONTINUED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

~~Three~~THREE ~~Months~~MONTHS ~~Ended~~ENDED ~~Nine~~December ~~Months~~31 ~~Ended June 30, June 30,~~ ----------- 2001 2000 -----------~~----------~~ -----------~~------------------------~~ ~~2001~~Net ~~2000~~Sales ~~2001~~$ ~~2000~~655,139 $ 1,700,223 Cost Of Sales 515,746 1,056,876 ------------- ------------- Gross Profit 139,393 643,347 ------------- ------------- ~~Net Sales $1,029,034 $1,013,601 $4,506,715 $2,870,990 Cost of Sales 773,458 731,939 3,161,459 1,908,574 Gross Profit 255,576 281,662 1,345,256 962,416~~ Operating Expenses: Selling, ~~general~~General and ~~administrative~~Administrative ~~195~~486,~~277~~453 ~~202~~460,~~042~~624 ~~881,606~~Depreciation ~~687,042 Research~~ and ~~Development~~Amortization 6931,~~116~~046 7338,~~658~~127 ~~287,318~~----------- ~~229,237~~----------- Total Operating Expenses ~~264~~517,~~393~~499 ~~275~~498,~~700~~751 ~~1,168,924~~----------- ~~916,279~~----------- Income ~~from~~(Loss) From Operations (8378,~~817~~106) 5144,~~962~~596 ~~176,332 46,137~~ Interest Income, ~~net~~Net 136,~~014~~238 815,~~972~~363 ~~43,874~~----------- ~~25,182~~----------- Income (Loss) Before ~~Tax~~ Provision ~~(Benefit)~~For ~~4,197~~Income ~~14,934~~Taxes ~~220~~(371,~~206~~868) 71159,~~319~~959 Provision ~~(Benefit)~~For ~~for~~ Income Taxes -800 ~~- 8~~14,~~528~~900 ----------- ----------- Net Income ~~$4,197~~(Loss) $~~14,934~~ ~~$211~~(372,~~678~~668) $71 145,~~319~~059 ======== ===~~=====~~ ========= ==~~=======~~ Earnings Per Share: Basic ~~Earning~~Earnings ~~per~~(Loss) Per Share: Net Income ~~$0.00~~(Loss) $~~0.01~~ $(0.1018) $ 0.0408 =========== =========== Diluted ~~Earning~~Earnings ~~per~~(Loss) Per Share: Net Income ~~$0.00~~(Loss) $~~0.01~~ $(0.0918) $ 0.0307 =========== =========== Basic ~~Weighted~~Number ~~Average~~of ~~shares~~Common ~~outstanding~~Shares Outstanding 2,081,678 1,~~905~~916,~~678~~400 ~~2,026,550~~=========== ~~1,905,678~~=========== Diluted ~~Weighted~~Number ~~Average~~of ~~shares~~Common ~~outstanding~~Shares ~~2,250,578~~Outstanding 2,~~254~~081,~~264~~678 2,~~195~~070,~~450~~899 ~~2,254,664~~=========== ===========

4 RADIANT TECHNOLOGY CORPORATION PART I FINANCIAL INFORMATION-CONTINUED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

~~Nine~~THREE ~~Months~~MONTHS ~~Ended~~ENDED ~~June~~December ~~30,~~31 --------------------- 2001 2000 ---- ---- Cash Flows From Operating Activities: Net Income (Loss) $~~211~~ (372,~~678~~668) $71 145,~~319~~059 Adjustments To Reconcile Income To Net Cash ~~From~~Used In Operating Activities: Depreciation And Amortization ~~100~~31,~~835~~046 ~~174~~38,~~065~~127 Changes In Assets And Liabilities: (Increase) Decrease in: Accounts Receivable ~~988,730~~ (~~609~~191,~~817~~575) 407,348 Inventories ~~(213~~119,~~448)~~649 (~~256~~434,~~909~~168) Prepaid Expenses ~~22,150~~& ~~4,605~~ Other Assets 11(1,~~443~~392) -13,195 Increase (Decrease) in: Accounts Payable (~~119~~161,~~381~~032) (1998,~~717~~911) Accrued Expenses (136,~~851~~675) ~~(50~~100,~~756)~~837 Customer Deposits 323,946 (~~788~~196,~~581~~193) ~~676,933~~----------- ~~Tax Payable 8,528~~ ----------- Net Cash ~~From~~(Used In) Operating Activities ~~220~~(288,~~103~~701) (1024,~~277~~706) ----------- ----------- Cash Flows From Investing Activities: ~~Purchase~~Capital OfExpenditures ~~Property And Equipment~~ (~~118~~8,~~078~~207) (7517,~~308~~547) ----------- ----------- Cash Flows From Financing Activities: ~~Stock~~Issuance ~~Issued~~of ~~For~~Common ~~Cash~~Stock -- 13,125 ~~625~~ Repayment Ofof Line Ofof Credit ~~(500,000)~~-- (1,500,000) ----------- ----------- Net Cash (Used ByIn) Financing Activities -- (486,875) ~~1,499,375~~----------- ----------- Net (Decrease) Inin Cash and Equivalents (~~384~~296,~~850~~908) (1529,~~584,960~~128) ----------- ----------- Cash Atand Equivalents, Beginning Ofof ~~Period~~Year 1,~~528~~118,~~383~~630 21,~~384~~528,~~902~~383 ----------- ----------- Cash Atand Equivalents, End Ofof ~~Period~~year $ 1821,~~143,533~~722 $ ~~799~~999,~~942~~255 =========== ===========

5 RADIANT TECHNOLOGY CORPORATION PART I FINANCIAL INFORMATION - CONTINUED Notes to Condensed Financial Statement for December 31, 2001 (Unaudited) Item 1 - Notes 1. General The accompanying unaudited consolidated financial statements of Radiant Technology Corporation (the "Company") have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Form 10-K for the year ended September 30, 2001. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for the fair presentation have been included. Operating results for interim periods are not necessarily indicative of results expected for a full year. ITEM 2 - Management's Discussion and Analysis of Financial Condition and Results of Operation All statements, other than statements of historical fact, included in this Form 10-Q are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, statements contained in this Form 10-Q. Financial Condition, Liquidity and Capital Resources The Company's cash and equivalents decreased from $1,118,383 at September 30, 2001 to $821,722 at December 31, 2001. This decrease of $296,908 is attributable to the use of cash in operating activities of $288,701, and use of cash in investing activities of $8,207. Management believes that the expected revenues from operations, supplemented by the cash on hand, will be sufficient to provide adequate cash to fund anticipated working capital and other cash needs during the remainder of the year. Results of Operations Sales were approximately $655,139 and $1,700,222 for the three months ended December 31, 2001 and 2000, respectively, a decrease of 61%. The decrease in revenues from 2000 to 2001 resulted principally from world wide reduction of demand for increased semiconductor production. We anticipate increased sales in the next quarter. 6 ITEM 2 - Management's Discussion and Analysis of Financial Condition and Results of Operation (Continued) The Company's overall cost of sales increased as a percentage of sales for the three months ended December 31, 2001 (79%) compared to the three months ended December 31, 2000 (62%). The increase compared to the prior year is attributed to increased price pressure and under absorbed overhead with the decrease in revenue achieved. RADIANT TECHNOLOGY CORPORATION PART II - OTHER INFORMATION Item 1. Legal Proceedings None. Item 2. Changes in Securities and Use of Proceeds None. Item 3. Defaults Upon Senior Securities None. Item 4. Submission of Matters to a Vote of Security Holders None. Item 5. Other Information None. Item 6. Reports on 8-K None. 7 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. RADIANT TECHNOLOGY CORPORATION ------------------------------ (Registrant) Dated: February 19, 2002 /s/ L. R. McNamee ----------------------------- Lawrence R. McNamee Chairman of the Board, Chief Operating Officer, Chief Executive Officer 8

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