1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q/A [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 1998 or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 0-28132 LANVISION SYSTEMS, INC. (Exact name of registrant as specified in its charter) Delaware 31-1455414 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Financial Way, Suite 400 Cincinnati, Ohio 45242-5859 (Address of principal executive offices) (Zip Code) (513) 794-7100 (Registrant's telephone number, including area code) 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 ----- ----- Number of shares of Registrant's Common Stock ($.01 par value per share) issued and outstanding, as of December 11, 1998: 8,814,520. 1 2 See Notes to Condensed Consolidated Financial Statements. 2
LANVISION SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS Three and Nine Months Ended October 31, (Unaudited) Three Months Ended Nine Months Ended --------------------------------- --------------------------------- 1998 1997 1998 1997 --------------- --------------- --------------- --------------- Revenues: Systems sales $ 1,307,886 $ 1,160,116 $ 4,979,826 $ 2,758,963 Service, maintenance and support 1,276,852 1,168,599 4,047,450 3,251,731 Service bureau operations 251,591 - 422,305 - --------------- --------------- --------------- --------------- Total revenues 2,836,329 2,328,715 9,449,581 6,010,694 Operating expenses: Cost of systems sales 315,912 493,633 1,525,768 1,658,513 Cost of service, maintenance and support 1,340,522 1,276,395 4,298,875 3,630,152 Cost of service bureau operations 755,534 - 2,103,374 - Selling, general and administrative 1,516,922 2,205,518 6,092,729 7,129,460 Product research and development 722,443 1,304,364 3,121,056 3,534,214 Restructuring expense - - 300,000 - --------------- --------------- --------------- --------------- Total operating expenses 4,651,333 5,279,910 17,441,802 15,952,339 --------------- --------------- --------------- --------------- Operating (loss) (1,815,004) (2,951,195) (7,992,221) (9,941,645) Interest income 94,112 287,484 291,741 901,005 Interest expense 390,000 - 457,500 - --------------- --------------- --------------- --------------- Net (loss) $ (2,110,892) $ (2,663,711) $ (8,157,980) $ (9,040,640) =============== =============== =============== =============== Basic net (loss) per common share $ (.24) $ (.30) $ (.93) $ (1.02) =============== =============== =============== =============== Diluted net (loss) per common share $ (.24) $ (.30) $ (.93) $ (1.02) =============== =============== =============== =============== Number of shares used in per common share computations 8,814,520 8,806,000 8,809,856 8,834,716 =============== =============== =============== =============== 3 Item 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits 10(a)* First Amendment to the Employment Agreement among LanVision Systems, Inc., LanVision, Inc. and J. Brian Patsy. 10(b)* First Amendment to the Employment Agreement among LanVision Systems, Inc., LanVision, Inc. and Eric S. Lombardo. 10(c)* First Amendment to Loan and Security Agreement between The HillStreet Fund, L.P. and LanVision Systems, Inc. 11* Computation of Earnings (Loss) Per Common Share 27* Financial Data Schedule * previously filed (b) Reports on Form 8-K None. 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. LANVISION SYSTEMS, INC. DATE: December 16, 1998 By: /s/ J. BRIAN PATSY ------------------------ ---------------------------------------- J. Brian Patsy Chief Executive Officer and President DATE: December 16, 1998 By: /s/ THOMAS E. PERAZZO ------------------------ ---------------------------------------- Thomas E. Perazzo Vice President, Chief Operating Officer, Chief Financial Officer and Treasurer 3