Item 1. BUSINESS
GENICOM Corporation ("GENICOM" or the "Company") designs, manufactures, and markets a wide range of computer printer technologies for general purpose applications. In addition, the Company derives revenue from customer service related activities, including maintenance, leasing and the sale of accessories, spare parts, ribbons and supplies. GENICOM is also a leading manufacturer of a line of hermetically sealed relays, which are electromechanical devices used primarily as remote switches.
Printer Products
The Company offers a wide range of serial (one character at a time), line (one or more lines at a time) and page (one page at a time) printers, with performance features and prices suitable for a varied range of printing applications. Besides offering a wide range of technologies and print speeds, GENICOM's printers offer multiple combinations of features that make them suitable for varied applications. Such features include multiple copy and extensive paper handling capabilities, multiple type styles (fonts), color printing and bar codes. GENICOM's printers are used with desktop workstations and with various networks and stand alone configurations in conjunction with micro, mini, super-mini and mainframe computers. GENICOM also manufactures and sells spare parts and supplies. In 1993, sales of printers and related products accounted for 72.3% of GENICOM's revenues as compared to 72.0% for 1992 and 74.2% for 1991. Printer revenues, as a percentage of total revenues, were 46.3%, 45.1% and 49.0% in 1993, 1992 and 1991, respectively. Spares revenues, as a percentage of total revenues, were 7.1%, 9.6% and 10.3% in 1993, 1992 and 1991, respectively. Supplies revenues, as a percentage of total revenues, were 19.4%, 17.4% and 15.0% in 1993, 1992 and 1991, respectively.
Prior to 1993, the Company's printer business had experienced revenue declines due to the maturing of the Company's product line along with the adverse impact of the worldwide recessionary economy. In 1993, the Company's printer revenues increased over 1992, as a result of the growth in the Company's Applications Solutions business using nonimpact (laser) technology. This was offset by declines in mature impact printer products and reduced sales to Original Equipment Manufacturer ("OEM") customers as businesses curtailed capital spending in a recessionary economic environment. The Company expects revenues from its Applications Solutions business using nonimpact technology to continue to grow in 1994 and offset declines in other printer product lines.
The Company's spares business has experienced revenue declines due to new product designs that have increased reliability and resulted in fewer replaceable parts and to declines in sales of mature serial matrix and band line printers requiring such spare parts. The Company expects that spares revenues will continue to decline.
The Company's supplies business has experienced revenue growth as a result of increased market share achieved by increasing the number of product offerings, including laser printing supplies, and aggressive marketing in established markets. The Company expects supplies revenue will continue to grow.
The Company experiences lower sales each year in its third quarter due to European holidays and the two week vacation shutdown of the Company's manufacturing facilities. See "Management's Discussion and Analysis of Results of Operations and Financial Condition", for further analysis of product revenue trends.
The following table sets forth a summary of certain performance features of GENICOM's principal printer products. Manufacturer's List Price Range is as of January 1994. Sales price may vary depending on features installed, customization, discounts and other factors.
Sales, Marketing and Service
Sales and Marketing
GENICOM markets its products and services through several domestic and international channels. GENICOM's distribution channels consist of (1) national and regional distributors who sell to value added resellers ("VAR's") and dealers and end users, and (2) a direct sales force which sells to OEM's, end users and value added resellers and dealers. In 1993, GENICOM incurred restructuring charges, in part, to reorganize sales and marketing operations. The new sales and marketing organization places more emphasis on large end users, distribution channels and the newly created Applications Solutions business unit. The Applications Solutions business unit focuses on delivering value add applications to all channels.
Most printers are available in several standard models, enabling distributors to serve a wide range of customer requirements. A combination of accessories satisfies various printing applications. In addition, standard models are customized for OEM's using GENICOM's manufacturing and engineering design capabilities. No customer accounted for more than 10% of GENICOM's total sales in 1993.
GENICOM maintains international sales and marketing subsidiaries in Australia, Canada, France, Germany, Italy and the United Kingdom. These subsidiaries offer GENICOM products and services to distributors, small OEM's, system houses, VAR's and retail dealers in over 66 countries in primarily local currencies. See "Business Segment and Geographic Information."
Service
GENICOM performs a wide range of service solutions related activities through its Enterprising Solutions Service business unit ("ESSD"). These service solutions activities include field service support, depot equipment repair, express parts and professional services and are provided to customers of GENICOM manufactured and distributed products as well as products manufactured by others--multivendor services. In addition to the growing third-party service business, ESSD revenues are generated from on-site maintenance, depot equipment repair, warranty administration, printed circuit board exchange, technical support and service training.
The Company's strategy is to continue to increase its share in this growing third-party service business -- multivendor services. In 1993, GENICOM announced the formation of ESSD. This new business unit will provide service solutions to address customer needs and applications through GENICOM's worldwide service operations. Concurrently, the Waynesboro, Virginia facility shifted its principal mission from a traditional manufacturing site to a center of competency for service operations.
GENICOM also provides its Canadian and European customers parts and services through the Company's international subsidiaries. GENICOM services its Latin American, Middle East, African and Pacific Rim customers through authorized distributors of GENICOM products. ESSD revenues, as a percentage of total revenues, were 20.5%, 20.2% and 18.2% in 1993, 1992 and 1991, respectively.
Competition
GENICOM's printer products compete in markets characterized by rapid technological change and strong competition. The Company competes primarily in the medium and high-performance segments of the printer market where users require reliable printers principally for word processing, shared network printing, graphics, bar codes and other business applications. The Company competes against many well-established companies, some with financial, technical and operating resources greater than GENICOM. Such competitors include large computer system manufacturers that produce printers for their own product lines and, in certain cases, for sale to other suppliers or end users. In addition, there are a number of independent printer manufacturers producing printers that compete with those offered by GENICOM.
Competitive factors within the printer market include price, performance, reliability, cost of ownership, versatility, ease of maintenance, applications solutions support, after-sales service and support and marketing channels. As the computer industry continues to move toward product standardization and relies less on proprietary designs, GENICOM's challenge is to continue to provide product differentiation based on these competitive factors. The Company believes that its ability to maintain a competitive market position depends on the following: development of applications solutions to customer needs, continued growth of nonimpact printer technologies, sustained migration to shared printing environments, effective channels to market, continued enhancement of the Company's product line and improvements in the Company's productivity. In order to enhance its competitive position in the nonimpact market, the Company formed the Application Solutions business unit in the third quarter of 1993. The Company expects this action to generate high quality customer support and value add applications technology in all of its channels to market. See "Management's Discussion and Analysis of Results of Operations and Financial Condition."
The Company believes the printer market as a whole will continue unit shipment growth and to a lesser extent revenue growth through 1997. This growth is attributable to the growth in the nonimpact printer market segment partially offset by the contraction of the impact printer market segment. This market trend should result in nonimpact printer technologies' dominance by 1996, when it is expected to constitute 75.0% of the printer units shipped. Nevertheless, impact printers currently play a significant role in the printer industry. The serial dot matrix market reached record sales in 1992. Although shipments of these printers are expected to decline an average of 15.0% per year through 1996, they accounted for 54.0% of all printers shipped in 1992. Line printer shipments overall are predicted to decline an average of 9.0% per year through 1996. However, the high speed segments of the serial dot matrix and line printers markets are expected to remain steady. The Company is a leader and earns a significant portion of its printer revenues in these high performance impact printer markets, offering high-speed, high performance serial matrix and shuttle matrix line printers. Such printers continue to meet customer application needs not yet satisfied by nonimpact technologies, in such areas as multipart forms, high-volume reliability and low cost of ownership.
The Company's nonimpact printer strategy is to compete in the shared or network printer market segment which is anticipated to experience compounded annual growth rate of over 36.0% for unit shipments through 1996. Functionality, paper handling capabilities, applications solutions support and after sales service and support enhance the competitiveness of the Company's product introductions.
The Company improved its competitive position in 1993 by continuing to realign its product mix with the growing nonimpact printer market. This shift in product mix included the introduction of an affordable, high quality color wax thermal printer and a feature rich laser printer for small workgroups or desktop printing solutions. The Company has been able to increase its nonimpact offerings by sourcing products from OEM's, however, this has resulted in lower margins than those realized from selling sourced print engines combined with the Company's own controller units.
Rastek Corporation provides GENICOM's Applications Solutions business with engineering and product development services including expertise in raster imaging, a widely employed technology used in translation and creation of images for nonimpact printing and other applications. The Company believes that Rastek's product development expertise will continue to be a factor in the Company's efforts to introduce successful nonimpact printer products.
Relay Products
GENICOM offers a line of relays that are used primarily in signal switching applications requiring high functional reliability and product quality. Relay revenues, as a percentage of total revenues, were 6.8%, 7.8% and 7.6% in 1993, 1992 and 1991, respectively.
GENICOM sells relay products primarily for aerospace and defense applications, automatic test equipment applications and, to a lesser extent, communication, industrial control and transportation control applications. GENICOM believes that its certified and proprietary designs should enable it to continue to participate in future major space and weapons programs, however, relay revenues have declined since 1990 due to decreased spending by defense contractors. There are relatively few competitors in the relay market that GENICOM serves. See "Management's Discussion and Analysis of Results of Operations and Financial Condition."
Manufacturing and Depot Repair
GENICOM conducts its manufacturing and assembly operations at its facilities in Waynesboro, Virginia and Reynosa, Mexico. The Waynesboro facility produces relays, assembles shuttle matrix printers and is the Company's primary depot repair center. The Reynosa facility assembles certain mature printer product lines and produces printed circuit boards, high-speed matrix printheads, ribbon cartridges and a variety of conventional electromechanical assemblies. The Company utilizes third party manufacturers located in the Repulic of India and Freemont, California to produce company designed products.
As a result of manufacturing processes, the Company generates and manages hazardous wastes at its facilities. The Company does not believe that compliance with Federal, State and local regulations will have a material effect on its capital expenditures, financial condition or results of operations. See "Legal Proceedings."
Customer Arrangements
The major portion of GENICOM's sales of printers and relays is made pursuant to purchase agreements, blanket purchase orders and similar arrangements whereby products are deliverable only after the customer issues a purchase order, release or schedule covering specific numbers of units and specifying firm delivery dates. These arrangements are generally from one to three years in duration. GENICOM's agreements with larger OEM's for printer sales generally require the customer to provide GENICOM with continuously updated forecasts of its requirements and to issue firm orders for deliveries for up to a six-month period. GENICOM's agreements with its distributors provide that if GENICOM decreases its prices, the distributor will receive the benefit of such price decrease for products then held in inventory by the distributor.
The Company's order backlog at January 2, 1994, was approximately $34.1 million, compared with approximately $40.0 million at January 3, 1993. GENICOM's reportable backlog includes all orders associated with relays, service and those orders for printers, spare parts and supplies for which a delivery date within approximately six months has been specified by the customer. The Company expects to ship substantially all orders in reported backlog within fiscal year 1994. See "Management's Discussion and Analysis of Results of Operations and Financial Condition."
GENICOM's working capital practices are consistent with the working capital practices of the printer industry. GENICOM's customer payment terms generally require invoices to be paid within thirty days of the date of issue. To support its ESSD business and spare parts business, the Company is required to carry significant inventories of spare parts, which were approximately $14.4 million and $15.7 million at January 2, 1994 and January 3, 1993, respectively.
Engineering, Research and Product Development
GENICOM incurs engineering, research and product development costs for the following purposes: development of new products; applications solutions development; modification, enhancement and achievement of cost reductions for existing product lines; customization of products for OEM's; market research; and development of process inspection criteria to ensure new products are built to specification. GENICOM's expenditures for engineering, research and product development were $9.3 million, $10.6 million and $8.2 million in 1993, 1992 and 1991, respectively. In 1993, 1992 and 1991 the Company expended 4.2%, 4.7% and 3.8% of consolidated revenues, respectively, in engineering research and product development.
GENICOM maintains extensive in-house capabilities and facilities available to support its engineering and design activities. The Company also engages a number of highly specialized independent firms to supplement its own engineering capabilities and to design certain software and components for its products.
Proprietary Rights
GENICOM relies on patent, copyright and trade secret laws to protect its proprietary technology and rights. GENICOM obtained certain patents, licenses and cross-licenses when it acquired the Data Communication Products Business Departmen t from General Electric Company (collectively "G.E.") in 1983 and when it acquired the Printer related assets of Ekco Group, Inc. (formerly Centronics Data Computer Corporation, "Centronics") in 1987. GENICOM continues to patent certain developments, holds certain patents pending and retains numerous patents expiring at various times between 1993 and 2009. In addition, the Company has a cross-licensing agreement with IBM that expires 17 years after the date of issue of certain patents pending prior to January 1, 1991.
"GENICOM" and certain other marks used in connection with the sale of the Company's products are registered trademarks of GENICOM in the United States and, in some cases, certain foreign countries. Under United States law, a registered trademark remains valid for 20 years if affirmed at the end of the sixth year. There is no limit to the number of times the registration may be renewed for additional 20-year periods.
GENICOM's wholly owned subsidiary, Rastek Corporation, specializes in raster imaging technology and has numerous related patents and trademarks such as "Rastek," "MIRROR_5," and "RASTOS." The combined technologies of MIRROR_5, an HP Laserjetr III emulation software package; RASTOS, a printer operating system; and GENICOM's GeniScriptr, a PostScriptr compatible interpreter, will assist in GENICOM's continued penetration into the nonimpact market in 1994.
In connection with the acquisition of the printer-related assets of Centronics, GENICOM acquired a license to use the name "Centronics" as a trademark, tradename and service name. ______________
HP Laserjet is a registered trademark of Hewlett-Packard Company.
Suppliers
GENICOM currently purchases raw materials, components and printers from various domestic as well as foreign suppliers. GENICOM utilizes supply agreements and other arrangements whereby volume discounts can be obtained.
GENICOM purchases certain products -- printers, options, supplies and component parts, including print engines, from sole suppliers who have developed proprietary processes that the Company incorporates into its products. The Company purchases all of its print engines for laser printers from third-party foreign manufacturers. In the event that those suppliers were unable or unwilling to supply these products, the Company believes it could establish alternate sources for these products or similar products. The time required to establish an alternate source could disrupt the manufacture or distribution of these products, thus causing delays that could adversely affect revenues. Currently, the Company considers its relationships with these vendors to be good and does not anticipate any disruption in the supply of these products.
For other purchases the Company utilizes multiple suppliers, thus it is unlikely that the loss of any one supplier would have a material impact upon the manufacture or assembly of certain printer or relay products.
No supplier accounted for a significant portion of GENICOM's total 1993 purchases. In 1992, GENICOM procured 16% of its total purchases from Toshiba Corporation ("Toshiba") which supplies the Company with certain nonimpact printer products. No other supplier accounted for a significant portion of GENICOM's total 1992 purchases.
Employees
As of January 2, 1994, the Company and its subsidiaries employed 2,147 employees. The Company believes its relations with its employees are satisfactory.
The Company's production and maintenance employees at its Waynesboro facility are represented by the United Electrical, Radio and Machine Workers of America Local 124 (the "Union"), under a collective bargaining agreement which expires in July 1994. The Company beleives it will obtain a satisfactory agreement with the Union.
Business Segment and Geographic Information
Operation of the Company's subsidiaries in Australia, Canada, Europe and Mexico is subject to risks associated with political and economic developments in such countries, such as tariffs imposed to discourage imports, varying product standards and specifications, and value added and excise taxes. In addition, GENICOM is exposed to currency fluctuation risks as a result of its international sales and sourcing of products from foreign vendors. The Company usually hedges these risks through the purchase of forward exchange contracts and expects to continue this practice in the future.
Reference is hereby made to Note 1 and 10 of the Notes to Consolidated Financial Statements incorporated by reference in Item 8 of this report for further financial information by business segment and geographic location.
Item 2.
Item 2. Properties
GENICOM's leased property is occupied under standard industrial leases. Each lease generally contains an optional renewal provision.
The combined capacity of GENICOM's service and manufacturing facilities is 23,000 labor hours per day, of which approximately 30% is utilized. Productive capacity is based on the operation of two shifts at Reynosa, Mexico and three shifts at Waynesboro, Virginia.
The Company's domestic owned properties are subject to a lien in favor of the Company's lender under its revolving loan agreement.
Item 3.
Item 3. Legal Proceedings
The Company and the former owner of its Waynesboro facility, G.E., have generated and managed hazardous wastes at the facility for many years as a result of their use of materials such as industrial solvents and heavy metals, like chromium, in manufacturing processes. As a result of permit applications filed by the Company in connection with these activities, the United States Environmental Protection Agency ("EPA") conducted a Resource Conservation and Recovery Act ("RCRA") facility assessment at the site. The EPA determined that releases and potential releases of hazardous wastes into the environment had or potentially could have occurred at the facility and, as a result, a corrective action order process was initiated. The Company and the EPA have agreed to a corrective action consent order (the "Order") issued under section 3008(h) of the RCRA, which became effective on September 14, 1990. The Order requires the Company to undertake an investigation of solid waste management units at its Waynesboro, Virginia facility and to conduct a study of any necessary corrective measures that may be required. Those investigations and studies are still in progress and will likely take approximately two more years to complete. If, as a result of the investigation and study, corrective measures are required, the Company expects that it will then enter into discussions with the EPA concerning a further order for that purpose. Presently, it is not possible for the Company to reliably estimate the cost of any corrective measures that may be required.
On December 9, 1993, the Company entered into a Cooperation Agreement ("Agreement") with G.E. covering certain environmental matters at the Company's Waynesboro, Virginia site. One of the matters covered is the cost of responding to the Order. The Agreement provides that G.E. will bear 70.0% of the allocable costs relating to the Order.
As a result of the continuing financial obligation which G.E. has with respect to releases at the facility and the protracted nature of the investigation, the Company believes that the costs of the investigation and study and any corrective action that may be required are not likely to have a material effect upon the financial condition or results of operations of the Company.
On May 1, 1990, the Company received a draft enforcement order (the "Enforcement Order") from the Virginia Department of Waste Management (the "Department"). The Enforcement Order addressed alleged noncompliance with RCRA requirements in the Company's operation of facilities and storage of hazardous waste at the Waynesboro facility. The draft Enforcement Order includes a proposed civil penalty of $152,700. After meeting with the Company, the Department offered to reduce the proposed penalty to $135,800. The Company's position is that the proposed civil penalty, both as originally stated and as revised, is excessive and inappropriate, and the Company has so informed the Department. The Company has been informed of the Department's intention to refer this matter to the Attorney General of Virginia for possible action, but as of March 30, 1993, no further action has been taken against the Company. The areas of noncompliance referred to in the Enforcement Order involved various technical requirements with which the Company believes it is currently in compliance. The Enforcement Order would also have required the closure of a hazardous waste storage tank which closure the Company believes is unnecessary. If the Company were required to close the storage tank, the cost of such action would not have a material effect upon the financial condition or results of operations of the Company.
On January 9, 1992, the Company was notified by the EPA that it is one of 700 potentially responsible parties under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, for necessary corrective action at a hazardous waste disposal site in Greer, South Carolina. In prior years, the Company arranged for the transportation of wastes to the site for treatment or disposal. Based on information currently available, the Company believes its share of the costs of the investigation and necessary corrective action is not likely to have a material effect on its financial condition or results of operations.
In the ordinary course of business, the Company is a party to various environmental, administrative and legal proceedings. In the opinion of management, the Company's liability, if any, in all pending litigation or other legal proceedings, other than those discussed above, will not have a material effect upon the financial condition or results of operations.
Item 4.
Item 4. Submission of Matters to a Vote of Security Holders
Not Applicable.
Mr. Winn joined the Company in April 1990 as President and Chief Executive Officer and became a director in May 1990. Previously, Mr. Winn was employed by IBM Corporation, where he served for 22 years in various capacities, most recently as Vice President of Graphics Systems in the Advanced Work Station Division. Prior to that position, Mr. Winn served as Vice President of Worldwide System Printers, responsible for technology, software, product development and manufacturing.
Mr. Surber became Senior Vice President, Printer Solutions Business in August 1993 after having served as Senior Vice President Development since joining the Company in July 1991. From December 1983 until he joined the Company, Mr. Surber served Dataproducts Corporation in various engineering and development capacities, most recently as Senior Vice President of Engineering and Research.
Mr. Gale joined the Company as Senior Vice President Finance and Chief Financial Officer in August 1991. Previously, Mr. Gale was employed by General Foods Corporation, where he served for 25 years in various capacities, most recently as Vice President of Finance for General Foods Corporation and in that role acted as Chief Financial Officer of General Foods, USA.
Mr. Stapleton became Senior Vice President and General Manager of Enterprising Service Solutions Division in November 1993 after serving the Company and its predecessor, General Electric, in various capacities for 30 years, most recently as General Manager Field Service and Multivendor Enterprising Services.
Mr. Dumas became Vice President, General Manger Relay Products Division in January 1994, after serving as General Manager Waynesboro Operations since September 1992. Previously, Mr. Dumas had served the Company as Vice President, Printer Manufacturing upon his employment in August 1990. From April 1988 until he joined the Company, Mr. Dumas was Vice President of Operations for Quotron Systems, Inc.
Mr. Jones has served the Company as Corporate Controller since November 1988, and Treasurer since March 1990.
Mr. Meyer was appointed Vice President of Human Resources in September 1991 after serving the Company, and its predecessor, General Electric, in various human resources capacities since 1973.
Mr. Buttner was appointed Vice President and General Manager Supplies Business Unit in April 1993, after serving in sales, marketing and business management positions with GENICOM since 1988. Previously, Mr. Buttner was employed by General Electric for 15 years.
PART II
Item 5.
Item 5. Market for the Registrant's Common Stock and Related Stockholder Matters
The information set forth under the caption "Stock Trading" on page 38 of the registrant's 1993 Annual Report to Stockholders is incorporated herein by reference. Additionally, GENICOM has not paid a cash dividend on its common stock. The Company intends to retain earnings from operations for use in its business, and therefore does not anticipate paying any cash dividends in the foreseeable future. Certain of the Company's debt arrangements restrict the payment of dividends unless certain tests are met. Reference is hereby made to Note 3 of the Notes to Consolidated Financial Statements incorporated by reference in Item 8 of this report for further financial information regarding the Company's debt arrangements.
Item 6.
Item 6. Selected Financial Data
The information set forth under the caption "Ten Year History" on page 18 of the registrant's 1993 Annual Report to Stockholders is incorporated herein by reference.
Item 7.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
The information set forth under the caption "Management's Discussion and Analysis of Results of Operations and Financial Condition" on pages 21 through 23 and 25 of the registrant's 1993 Annual Report to Stockholders is incorporated herein by reference.
Item 8.
Item 8. Financial Statements and Supplementary Data
The information set forth under the captions "Consolidated Statements of Income," "Consolidated Balance Sheets," "Consolidated Statements of Cash Flows," "Consolidated Statements of Changes in Stockholders' Equity," and "Notes to Consolidated Financial Statements" on pages 20, 24, and 26 through 36 of the registrant's 1993 Annual Report to Stockholders is incorporated herein by reference.
The supplementary data regarding quarterly results of operations set forth in Note 11 of the "Notes to Consolidated Financial Statements" on page 36 of the registrant's 1993 Annual Report to Stockholders is incorporated herein by reference.
Item 9.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Not applicable.
PART III
Item 10.
Item 10. Directors and Executive Officers of the Registrant
The information required by this item is set forth under the caption "Election of Directors" in the registrant's Proxy Statement for its 1994 annual meeting of stockholders, to be mailed to each stockholder on or about April 4, 1994, which information is incorporated herein by reference and under the heading "Executive Officers of the Registrant" appearing on page 12 of this report.
Item 11.
Item 11. Executive Compensation
The information required by this item is set forth under the caption "Executive Compensation" in the registrant's Proxy Statement for its 1994 annual meeting of stockholders, to be mailed to each stockholder on or about April 4, 1994, which information is incorporated herein by reference.
Item 12.
Item 12. Security Ownership of Certain Beneficial Owners and Management
The information required by this item is set forth under the caption "Principal Stockholders of the Company" in the registrant's Proxy Statement for its 1994 annual meeting of stockholders, to be mailed to each stockholder on or about April 4, 1994, which information is incorporated herein by reference.
Item 13.
Item 13. Certain Relationships and Related Transactions
The information required by this item is set forth under the caption "Certain Transactions" in the registrant's Proxy Statement for its 1994 annual meeting of stockholders, to be mailed to each stockholder on or about April 4, 1994, which information is incorporated herein by reference.
PART IV
Item 14.
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
(a) Financial Statements and Schedules
The financial statements incorporated by reference into this report and the financial statement schedules filed as part of this report are listed in the Index to Financial Statements and Schedules on page immediately following the signatures to this report.
GENICOM Corporation and Subsidiaries
INDEX TO FINANCIAL STATEMENTS AND SCHEDULES
The consolidated balance sheets of GENICOM Corporation and subsidiaries as of January 2, 1994 and January 3, 1993, and the related consolidated statements of income, changes in stockholders' equity and cash flows for each of the three years in the period ended January 2, 1994, including the notes thereto, are included on pages 20, 24 and 26 through 36 of the Registrant's 1993 Annual Report to Stockholders and are incorporated herein by reference. With the exception of the aforementioned information, and the information incorporated by reference in numbered Items 5, 6, 7 and 8, no other data appearing in the Annual Report to Stockholders is deemed to be "filed" as part of this Form 10-K. The following additional financial data should be read in conjunction with these consolidated financial statements.
F 1 INDEPENDENT ACCOUNTANTS' REPORT
The Board of Directors and Stockholders of GENICOM Corporation:
We have audited the accompanying consolidated balance sheets of GENICOM Corporation and subsidiaries as of January 2, 1994 and January 3, 1993, and the related consolidated statements of income, changes in stockholders' equity and cash flows for each of the three fiscal years in the period ended January 2, 1994, which financial statements are included on pages 20, 24 and 26 through 36 of the Company's 1993 Annual Report to Stockholders and incorporated by reference herein. We have also audited the financial statement schedules listed in the index on page of this Form 10-K. These financial statements and financial statement schedules are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements and financial statement schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of GENICOM Corporation and subsidiaries as of January 2, 1994 and January 3, 1993, and the consolidated results of their operations and their cash flows for each of the three fiscal years in the period ended January 2, 1994 in conformity with generally accepted accounting principles. In addition, in our opinion, the financial statement schedules referred to above, when considered in relation to the basic financial statements taken as a whole, present fairly, in all material respects, the information required to be included therein.
As discussed in Note 4 to the financial statements, effective January 4, 1993, the Company changed its method of accounting for postretirement benefits other than pensions.
Coopers & Lybrand
Washington, D.C. February 1, 1994
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