2019 Q2 Form 10-Q Financial Statement

#000072050019000026 Filed on August 08, 2019

View on sec.gov

Income Statement

Concept 2019 Q2 2018 Q3 2018 Q2
Revenue $21.00M $28.83M $41.20M
YoY Change -49.02% -47.27% -13.74%
Cost Of Revenue $13.15M $14.89M $18.56M
YoY Change -29.13% -158.31% -42.46%
Gross Profit $7.850M $8.193M $10.18M
YoY Change -22.91% -58.18% -34.31%
Gross Profit Margin 37.38% 28.42% 24.72%
Selling, General & Admin $5.718M $6.225M $6.775M
YoY Change -15.6% -1072.66% -32.97%
% of Gross Profit 72.84% 75.98% 66.53%
Research & Development $790.0K $582.0K
YoY Change 35.74% -67.19%
% of Gross Profit 10.06% 5.72%
Depreciation & Amortization $390.0K $230.0K $700.0K
YoY Change -44.29% -62.9% 14.75%
% of Gross Profit 4.97% 2.81% 6.87%
Operating Expenses $6.508M $6.225M $7.357M
YoY Change -11.54% -350.0% -38.08%
Operating Profit $1.351M -$1.100M $2.826M
YoY Change -52.19% -113.69% -28.83%
Interest Expense $250.0K $340.0K $640.0K
YoY Change -60.94% 9.68% -557.14%
% of Operating Profit 18.5% 22.65%
Other Income/Expense, Net $249.0K $342.0K $410.0K
YoY Change -39.27% -1305.88%
Pretax Income $1.600M -$758.0K $6.351M
YoY Change -74.81% -148.59% 65.95%
Income Tax $707.0K $352.0K $1.372M
% Of Pretax Income 44.19% 21.6%
Net Earnings $2.047M -$8.953M $4.971M
YoY Change -58.82% -222.36% 51.23%
Net Earnings / Revenue 9.75% -31.05% 12.07%
Basic Earnings Per Share $0.14 -$0.61 $0.33
Diluted Earnings Per Share $0.14 -$0.61 $0.33
COMMON SHARES
Basic Shares Outstanding 14.25M 14.73M 14.93M
Diluted Shares Outstanding 14.32M 14.73M 15.09M

Balance Sheet

Concept 2019 Q2 2018 Q3 2018 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $49.10M $45.90M $48.70M
YoY Change 0.82% -10.18% 24.23%
Cash & Equivalents $49.11M $45.90M $48.73M
Short-Term Investments
Other Short-Term Assets $1.688M $2.884M $2.688M
YoY Change -37.2% 13.45% -9.0%
Inventory $18.89M $17.84M $22.59M
Prepaid Expenses
Receivables $15.49M $17.99M $27.63M
Other Receivables $0.00 $0.00 $5.700M
Total Short-Term Assets $108.8M $130.2M $130.8M
YoY Change -16.82% -17.11% 14.29%
LONG-TERM ASSETS
Property, Plant & Equipment $10.29M $10.51M $16.31M
YoY Change -36.93% -33.45% 8.18%
Goodwill $6.633M $6.633M $11.34M
YoY Change -41.52% -41.84% 1.09%
Intangibles $935.0K $1.131M $3.039M
YoY Change -69.23% -67.64% -16.58%
Long-Term Investments $0.00 $0.00
YoY Change -100.0% -100.0%
Other Assets $775.0K $902.0K $948.0K
YoY Change -18.25% -10.07% -7.6%
Total Long-Term Assets $18.63M $19.17M $31.64M
YoY Change -41.11% -44.44% -6.93%
TOTAL ASSETS
Total Short-Term Assets $108.8M $130.2M $130.8M
Total Long-Term Assets $18.63M $19.17M $31.64M
Total Assets $127.4M $149.4M $162.4M
YoY Change -21.56% -22.03% 9.43%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.914M $6.867M $12.58M
YoY Change -60.93% -68.14% -44.05%
Accrued Expenses $1.192M $667.0K $3.077M
YoY Change -61.26% -67.56% 65.16%
Deferred Revenue $2.561M $1.519M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $369.0K $350.0K $371.0K
YoY Change -0.54% -3.05% -54.59%
Total Short-Term Liabilities $32.54M $47.56M $44.66M
YoY Change -27.14% -44.68% -30.32%
LONG-TERM LIABILITIES
Long-Term Debt $5.270M $5.542M $8.028M
YoY Change -34.35% -31.87% -17.51%
Other Long-Term Liabilities $3.000M $3.200M $3.300M
YoY Change -9.09% -54.29% -49.23%
Total Long-Term Liabilities $5.270M $5.542M $8.028M
YoY Change -34.35% -31.87% -17.51%
TOTAL LIABILITIES
Total Short-Term Liabilities $32.54M $47.56M $44.66M
Total Long-Term Liabilities $5.270M $5.542M $8.028M
Total Liabilities $40.85M $56.32M $56.02M
YoY Change -27.08% -44.32% -30.27%
SHAREHOLDERS EQUITY
Retained Earnings -$27.35M -$21.39M -$12.44M
YoY Change 119.87% -19.87% -63.43%
Common Stock $143.0K $142.0K $150.0K
YoY Change -4.67% -3.4% 12.78%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $86.58M $93.09M $106.4M
YoY Change
Total Liabilities & Shareholders Equity $127.4M $149.4M $162.4M
YoY Change -21.56% -22.03% 9.43%

Cashflow Statement

Concept 2019 Q2 2018 Q3 2018 Q2
OPERATING ACTIVITIES
Net Income $2.047M -$8.953M $4.971M
YoY Change -58.82% -222.36% 51.23%
Depreciation, Depletion And Amortization $390.0K $230.0K $700.0K
YoY Change -44.29% -62.9% 14.75%
Cash From Operating Activities $3.490M $6.830M -$3.080M
YoY Change -213.31% -70.45% 373.85%
INVESTING ACTIVITIES
Capital Expenditures -$310.0K -$650.0K -$160.0K
YoY Change 93.75% -27.78% 6.67%
Acquisitions
YoY Change
Other Investing Activities -$1.110M $5.790M -$10.00K
YoY Change 11000.0% -200.0%
Cash From Investing Activities -$1.420M $5.140M -$170.0K
YoY Change 735.29% -671.11% 21.43%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 50.00K -4.090M 450.0K
YoY Change -88.89% -134.34% -48.86%
NET CHANGE
Cash From Operating Activities 3.490M 6.830M -3.080M
Cash From Investing Activities -1.420M 5.140M -170.0K
Cash From Financing Activities 50.00K -4.090M 450.0K
Net Change In Cash 2.120M 7.880M -2.800M
YoY Change -175.71% -76.91% -3211.11%
FREE CASH FLOW
Cash From Operating Activities $3.490M $6.830M -$3.080M
Capital Expenditures -$310.0K -$650.0K -$160.0K
Free Cash Flow $3.800M $7.480M -$2.920M
YoY Change -230.14% -68.85% 484.0%

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Concentrations of Credit Risk </font><font style="font-family:inherit;font-size:10pt;">&#8211; Our customers consist primarily of semiconductor manufacturers worldwide, as well as the lapping and polishing marketplace. Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and trade accounts receivable. Credit risk is managed by performing ongoing credit evaluations of the customers&#8217; financial condition, by requiring significant deposits where appropriate, and by actively monitoring collections. Letters of credit are required of certain customers depending on the size of the order, type of customer or its creditworthiness, and country of domicile. </font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As of </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2019</font><font style="font-family:inherit;font-size:10pt;">, one Semiconductor segment customer individually represented </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> of accounts receivable. As of </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">, one Semiconductor customer individually represented </font><font style="font-family:inherit;font-size:10pt;">16%</font><font style="font-family:inherit;font-size:10pt;"> of accounts receivable.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We maintain our cash, cash equivalents and restricted cash in multiple financial institutions. Balances in the United States, which account for approximately </font><font style="font-family:inherit;font-size:10pt;">77%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">88%</font><font style="font-family:inherit;font-size:10pt;"> of total cash balances at our continuing operations as of </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2019</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2018</font><font style="font-family:inherit;font-size:10pt;">, respectively, are primarily invested in U.S. Treasuries or are in financial institutions insured by the Federal Deposit Insurance Corporation (&#8220;FDIC&#8221;). The remainder of our cash is maintained with financial institutions with reputable credit ratings in the Netherlands, China, France, the United Kingdom, Singapore and Malaysia.</font></div></div>
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font><font style="font-family:inherit;font-size:10pt;"> &#8211; The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>

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