6-K 1 form6k.htm FORM 6-K form 6-K

 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2004

SUPERCOM LTD.

Millennium Bldg.
3 Tidhar Street, P.O.B. 2094
Raanana 43665 Israel

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F X          Form 40-F__

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934
Yes                       No     X     



 
     
 
 

SUPERCOM LTD.

Form 6-K

TABLE OF CONTENTS

Financial Statements
        
         
Condensed Consolidated Balance Sheets as of June 30, 2004 (unaudited) and December 31, 2003
    
3
  
Condensed Consolidated Statements of Operations (unaudited) for the six months ended June 30, 2004 and 2003
    
5
  
Condensed Consolidated Statements of Cash Flows (unaudited) for the six months ended June 30, 2004 and 2003
    
6
  
         
Signatures
    
7
  
Exhibit Index
    
8
  


  2  
 
 


CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands


 
    
December 31,
June 30,
2003
2004
 
Unaudited
  
ASSETS
              
               
CURRENT ASSETS:
              
Cash and cash equivalents
  
$
1,912
  
$
1,528
  
Restricted cash deposits
    
681
    
434
  
Short-term deposit
    
1,196
    
601
  
Marketable debt securities
   
117
    
-
  
Trade receivables (net of allowance for doubtful accounts of $ 3,333 as of December 31, 2003 and June 30, 2004)
    
1,808*
)
  
1,798
  
Other accounts receivable and prepaid expenses
    
680
    
879
  
Inventories
    
3,236
    
2,836
  
               
Total current assets
    
9,630
    
8,076
  
               
LONG-TERM INVESTMENTS:
              
Long term trade receivables
    
364*
)
  
305
  
Investment in an affiliate and others
   
275
    
275
  
Severance pay fund
   
333
    
356
  
               
     
972
    
936
  
               
PROPERTY AND EQUIPMENT, NET
   
1,676
    
1,886
  
               
OTHER ASSETS
    
156
    
134
  
               
   
$
12,434
  
$
11,032
  

*) Reclassified.

The accompanying notes are an integral part of the consolidated financial statements.

  3  
 
 

CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands



 
December 31, 
June 30,
2003
2004
 
Unaudited 
  
               
LIABILITIES AND SHAREHOLDERS' EQUITY
              
               
CURRENT LIABILITIES:
              
Short-term bank credit and current maturities of long-term loan
  
$
2,131
  
$
1,741
  
Trade payables
    
1,085
    
1,033
  
Employees and payroll accruals
    
161
    
192
  
Accrued expenses and other liabilities
   
822
    
660
  
               
Total current liabilities
    
4,199
    
3,626
  
               
LONG-TERM LIABILITIES:
              
Long-term loan, net of current maturities
   
187
    
185
  
Accrued severance pay
    
436
    
465
  
               
Total long-term liabilities
    
623
    
650
  
               
SHAREHOLDERS' EQUITY:
             
Share capital:
Ordinary shares of NIS 0.01 par value -
              
Authorized: 26,500,000 shares at December 31, 2003 and June 30, 2004; Issued and outstanding: 12,906,872 and 12,966,872 shares at December 31, 2003 and June 30, 2004, respectively
    
40
    
41
  
Additional paid-in capital
    
25,814
    
25,856
  
Deferred stock compensation
    
-
    
(14
)
Receipt on account of shares
    
-
    
775
  
Accumulated deficit
    
(18,242
)
  
(19,902
)
               
Total shareholders' equity
    
7,612
    
6,756
  
               
   
$
12,434
  
$
11,032
  

The accompanying notes are an integral part of the consolidated financial statements.

  4  
 
 

CONSOLIDATED STATEMENTS OF OPERATIONS
U.S. dollars in thousands (except share data)
 
     
Six months ended
June 30, 
    
Three months ended
June 30, 
  
     
2003 
    
2004 
    
2003 
    
2004 
  
   

 Unaudited

  
Revenues
  
$
3,905
  
$
2,484
  
$
1,021
  
$
1,173
  
Cost of revenues
    
1,504
    
1,564
    
447
    
738
  
                           
Gross profit
   
2,401
    
920
    
574
    
435
  
                           
Operating expenses:
                          
Research and development
    
465
    
377
    
229
    
183
  
Selling and marketing
    
1,547
    
1,129
    
260
    
572
  
General and administrative
    
939
    
944
    
438
    
441
  
                           
Total operating expenses
    
2,951
    
2,450
    
927
    
1,196
  
                           
Operating loss
    
550
    
1,530
    
353
    
761
  
Financial expenses, net
    
146
    
77
    
131
    
70
  
Other expenses, net
    
41
    
53
    
11
    
49
  
                           
Net loss
  
$
737
  
$
1,660
  
$
495
  
$
880
  
                           
                           
Basic and diluted net loss per share
  
$
(0.06
)
$
(0.13
)
$
(0.04
)
$
(0.07
)
                           
Weighted average number of Ordinary shares used in computing basic and diluted net loss per share
    
12,706,339
    
12,949,070
    
12,706,339
    
12,966,872
  
                           
 
The accompanying notes are an integral part of the consolidated financial statements.
 
  5  
 
 


CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
 
     
Six months ended
June 30, 
    
Three months ended
June 30, 
  
     
2003 
    
2004 
    
2003 
    
2004 
  
     
Unaudited 
  
Cash flows from operating activities:
                          
Net loss
  
$
(737
)
$
(1,660
)
$
(495
)
$
(880
)
Adjustments to reconcile net loss to net cash used in operating activities:
                          
Depreciation and amortization
    
189
    
167
    
93
    
81
 
Accrued severance pay, net
   
10
    
6
    
9
    
(3
)
Amortization of deferred stock compensation
    
26
    
5
    
1
    
1
  
Decrease (increase) in trade receivables
    
(1,649
)
  
69
    
(165
)
  
(126
)
Decrease (increase) in other accounts receivable and prepaid expenses
    
76
    
(199
)
  
(206
)
  
(314
)
Decrease (increase) in inventories
    
246
    
330
    
(199
)
  
50
  
Increase (decrease) in trade payables
    
294
    
(52
)
  
436
    
187
  
Increase (decrease) in employees and payroll accruals
    
42
    
56
    
25
    
(15
)
Increase (decrease) in accrued expenses and other liabilities
    
603
    
(162
)
  
(52
)
  
207
  
Loss from sale of Marketable Securities
    
-
    
7
    
-
    
7
  
Others
    
6
    
-
    
6
    
2
  
                           
Net cash used in operating activities
    
(894
)
  
(1,433
)
  
(547
)
  
(803
)
                           
Cash flows from investing activities:
                          
Proceeds from sale of property and equipment
    
1
    
-
   
1
    
-
 
Purchase of property and equipment
    
(31
)
  
(257
)
  
(13
)
  
(100
)
Purchase of other asset
    
-
    
(28
)
  
-
    
(28
)
Investment in short-term deposit
    
(791
)
  
595
    
-
    
604
  
Proceeds from redemption of marketable debt securities
    
335
    
110
    
-
    
2
  
Restricted cash deposits
    
(15
)
  
247
    
(7
)
  
(63
)
                           
Net cash provided by (used in) investing activities
    
(501
)
  
667
    
(19
)
  
415
  
                           
Cash flows from financing activities:
                          
Short-term bank credit, net
    
768
    
(555
)
  
583
    
(212
)
Proceeds from long-term loan
    
167
    
400
    
167
    
400
  
Issuance expenses related to conversion of loan into shares
    
-
    
(1
)
  
-
    
-
  
Proceeds from payable on account of shares
    
-
    
775
    
-
    
775
  
Principal payment of long-term loan
    
(175
)
  
(237
)
  
(87
)
  
(119
)
                           
Net cash provided by (used in) financing activities
    
760
    
382
    
663
    
844
  
                           
Decrease in cash and cash equivalents
    
(635
)
  
(384
)
  
97
    
456
  
Cash and cash equivalents at the beginning of the period
    
4,567
    
1,912
    
3,835
    
1,072
  
                           
Cash and cash equivalents at the end of the period
  
$
3,932
  
$
1,528
  
$
3,932
  
$
1,528
  
                           
Supplemental disclosure of cash flows information:
                          
Cash paid during the period for:
                          
Interest
  
$
37
  
$
69
  
$
13
  
$
29
  
                           
Supplemental disclosure of non-cash investing activities:
                          
Transfer of inventory to property and equipment
  
$
-
  
$
70
  
$
-
  
$
-
  
                           
Conversion of loan to ordinary shares
  
$
-
  
$
25
  
$
-
  
$
-
  
 
The accompanying notes are an integral part of the consolidated financial statements.

 
  6  
 


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.

SUPERCOM LTD.


By: /s/ Eyal Tuchman            
Eyal Tuchman
Chief Financial Officer


Date: September 29, 2004
 
 
 
 
 

 

 
  7  
 
 

EXHIBIT INDEX


 
Exhibit No.
  
Exhibit
     
99.1
  
Press Release dated September 29, 2004

 
 
 
 
 
 
 
 
 
 
 
 
 
 
8