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SEC Filings
10-Q
ARGON ST, INC. filed this Form 10-Q on 12/13/1995
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Working capital remained relatively unchanged between July 31, 1995 and
October 31, 1995, due largely to the reclassification of the non-current
portion of the mortgage from current liabilities to long-term debt.
Without this reclassification, working capital would have declined
approximately $240,000 in the first quarter of fiscal 1996. Current
assets declined by approximately $661,000 due primarily to the loss for
the quarter and payments on the line of credit from funds generated by
the collection of a large portion of the July 31, 1995 unbilled accounts
receivable.  Contributing to the decline in current assets in the first
quarter of fiscal 1995 was the reduction in deposits caused by the
shipment of certain prepaid deliverables to a customer pursuant to one of
the contracts received in the fourth quarter of fiscal 1995.

Current liabilities decreased in the quarter ended October 31, 1995 largely
due to the reduction in the balance in the Company's line of credit and the
reclassification of the non-current portion of the mortgage from current
liabilities to long-term debt.

The Company expects to invest approximately $300,000 for capital
expenditures, primarily for equipment and software relating to the
Company's growth plan, during fiscal 1996; but as of December 11, 1995,
the majority of these expenditures had not  yet been incurred.  The
Company also expects internal research and development costs to exceed
the fiscal 1995 level in the upcoming year as additional products are
developed and introduced.  During fiscal 1996, the Company also expects
to make significant investments in accordance with its growth plan in
selling and administrative expense. These expenditures are vital to the
future growth of the Company, and are expected to be funded by
operations, the Company's line of credit and possibly by other sources of
capital as described above.

Although Management believes that the Company has access to sufficient
sources of cash to meet its needs for the foreseeable future, this belief
is based upon Management's expectation that certain substantial contracts
will be received by the Company in fiscal 1996 and that the Company will
collect in excess of $600,000 in December 1995 on an order completed in
November 1995.  If the receipt of such contracts and payments do not
occur or are significantly delayed, and if the Company is unable to raise
additional capital as needed, the Company's liquidity, financial
position, results of operations and ability to successfully execute its
growth plan will be materially adversely affected.  Management believes
that should the Company receive the expected contracts in fiscal 1996 and
should an expansion of the current line of credit become required, the
Company will be able to obtain such a credit line expansion.


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