SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
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 0-57495
SAVILLE SYSTEMS PLC
(Exact name of registrant as specified in its charter)
Republic of Ireland
(State or other jurisdiction of incorporation or organization)
Not Applicable
(I.R.S. Employer Identification No.)
IDA Business Park, Dangan, Galway, Ireland
(Address of principal executive offices, including zip code)
011-353-91-526611
(Registrant's telephone number, including area code)
American Depository Shares, Representing Ordinary Shares, $0.0025 par value
(Title of Class)
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 outstanding of the registrant's class of Ordinary Shares as of
October 31, 1996 was 17,836,805.
<PAGE>
SAVILLE SYSTEMS PLC
FORM 10-Q REPORT
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996
TABLE OF CONTENTS
PAGE
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Balance Sheets as at September 30, 1996 (unaudited)
and December 31, 1995 3
Consolidated Statements of Income for the three and for the nine
months ended September 30, 1996 and 1995 (unaudited) 4
Consolidated Statements of Cash Flows for the nine months ended
September 30, 1996 and 1995 (unaudited) 5
Notes to Consolidated Financial Statements (unaudited) 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 7-10
PART II - OTHER INFORMATION 11
SIGNATURES 12
EXHIBIT INDEX 13
<PAGE>
<TABLE>
Saville Systems PLC
CONSOLIDATED BALANCE SHEETS
(in thousands of U.S. dollars)
September 30 December 31
1996 1995
(unaudited)
- -------------------------------------------------------------------------------- -------- --------
<S> <C> <C>
ASSETS
Current
Cash and cash equivalents ...................................................... $ 28,681 $ 23,722
Accounts receivable, less allowance for doubtful accounts of $671 and
$370, respectively ............................................................. 15,123 8,177
Prepaid expenses and other assets .............................................. 1,314 1,056
45,118 32,955
Property and equipment, net .................................................... 3,971 2,335
Long-term receivable ........................................................... 743 741
$ 49,832 $ 36,031
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable ............................................................... $ 2,083 $ 1,079
Accrued compensation and related benefits ...................................... 2,619 1,527
Accrued royalties .............................................................. 167 663
Income taxes payable ........................................................... 2,286 1,228
Other current liabilities ...................................................... 698 296
Current portion of long-term debt .............................................. 57 53
7,910 4,846
Long-term debt ................................................................. -- 44
Minority interest .............................................................. 302 217
302 261
Shareholders' equity
Share capital .................................................................. 93 92
Additional paid-in capital ..................................................... 26,404 23,636
Retained earnings .............................................................. 15,159 7,244
Cumulative translation account ................................................. (36) (48)
41,620 30,924
$ 49,832 $ 36,031
See accompanying notes
</TABLE>
<PAGE>
<TABLE>
Saville Systems PLC
CONSOLIDATED STATEMENTS OF INCOME
(in thousands of U.S. dollars, except per share data)
Three months ended Nine months ended
September 30 September 30 September 30 September 30
1996 1995 1996 1995
- --------------------------------------------- ------------------ ----------------- ---------------- -----------------
(unaudited) (unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C>
REVENUE
Services $12,051 $5,807 $31,320 $18,201
License Fees 2,696 1,239 6,287 3,910
14,747 7,046 37,607 22,111
EXPENSES
Cost of services 5,932 2,930 15,522 8,765
Cost of license fees 140 24 188 53
Sales and marketing 920 370 2,376 1,035
Research and development 1,085 553 2,966 975
General and administrative 2,830 1,687 7,627 4,756
10,907 5,564 28,679 15,584
Income from operations 3,840 1,482 8,928 6,527
Other income, net 393 8 1,019 140
Income before income taxes 4,233 1,490 9,947 6,667
Provision for income taxes 910 388 1,947 1,595
Income before minority interest 3,323 1,102 8,000 5,072
Minority interest share in subsidiaries'
net income 12 48 85 91
Net income $3,311 $1,054 $7,915 $4,981
Net income per share $0.17 $0.07 $0.42 $0.32
Shares used in computing net income per
share (in thousands) 19,048 15,797 18,875 15,797
</TABLE>
See accompanying notes
<PAGE>
<TABLE>
Saville Systems PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of U.S. dollars)
Nine months ended
September 30 September 30
1996 1995
- -------------------------------------------------------------------------------- -------- --------
(unaudited) (unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ..................................................................... $ 7,915 $ 4,981
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization ................................................ 530 223
Allowance for doubtful accounts .............................................. 301 325
Minority interest ............................................................ 85 91
Changes in operating assets and liabilities:
Accounts receivable .......................................................... (7,247) (4,021)
Other current assets ......................................................... (258) (33)
Long term receivable ......................................................... (612)
Accounts payable ............................................................. 1,004 327
Accrued compensation and related benefits .................................... 1,092 612
Accrued royalties ............................................................ (496) 271
Income taxes payable ......................................................... 1,058 (123)
Other current liabilities .................................................... 267 (231)
Net cash provided by (used in) operating activities ............................ 4,251 1,810
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment ............................................. (2,166) (1,861)
Net cash used in investing activities .......................................... (2,166) (1,861)
CASH FLOWS FROM FINANCING ACTIVITIES
Loan repayments from an officer ................................................ 50
Repayment of long-term debt .................................................... (40) (274)
Repayments to related parties .................................................. (10)
Proceeds from share issuances .................................................. 3,487 159
Public offering costs .......................................................... (583) (142)
Dividends ...................................................................... (3,000)
Net cash provided by (used in) financing activities ............................ 2,864 (3,217)
Effect of exchange rate changes on cash ........................................ 10 76
Net increase in cash and cash equivalents ...................................... 4,959 (3,192)
Cash and cash equivalents, beginning of period ................................. 23,722 3,509
Cash and cash equivalents, end of period ....................................... $ 28,681 $ 317
Supplement disclosure of cash flow information:
Cash paid for interest ....................................................... 14 51
Cash paid for income taxes ................................................... 936 1,726
Note receivable from sale (repayment) of shares .............................. (100) 100
</TABLE>
See accompanying notes
<PAGE>
Saville Systems PLC
Notes to Consolidated Financial Statements at September 30, 1996. (unaudited)
1. Basis of Presentation
The accompanying consolidated financial statements are unaudited, except for the
balance sheet dated as of December 31, 1995, and have been prepared by the
Company in accordance with U.S. generally accepted accounting principles.
Certain information and footnote disclosure normally included in the Company's
audited annual consolidated financial statements have been condensed or omitted
in accordance with the rules and regulations of the Securities and Exchange
Commission. The unaudited interim consolidated financial statements, in the
opinion of management, reflect all adjustments (consisting only of normal and
recurring adjustments) necessary for a fair presentation of the results of the
interim periods ended September 30, 1996 and 1995 and the financial position at
September 30, 1996.
The results of operations for the interim periods are not necessarily indicative
of the results of operations to be expected for the fiscal year. These interim
consolidated financial statements should be read in conjunction with the audited
consolidated financial statements of the Company which are contained in the
Company's Annual Report on Form 10-K for the year ended December 31, 1995.
2. Net Income Per Share
The net income per share is computed based upon the weighted average number of
Ordinary Shares and dilutive share equivalents outstanding and gives effect to
certain adjustments described below. Share equivalents are not included in the
per share calculations where the effect of their inclusion would be
antidilutive, except that, in accordance with Securities and Exchange Commission
requirements, common and common share equivalents issued during the twelve month
period prior to the filing of an initial public offering have been included in
the calculation as if they were outstanding for all periods, using the treasury
stock method and the initial public offering price.
3. Share Capital
The number of Ordinary Shares and Deferred Shares outstanding are 17,836,805 and
30,000 respectively at September 30, 1996 and 17,576,406 and 30,000,
respectively at December 31, 1995. On June 24, 1996 the Company issued 100,000
Ordinary Shares in a public offering raising proceeds of $2,600,000 to the
company before expenses. The Company issued 89,099 and 160,399 Ordinary shares
pursuant to the 1996 Employee Stock Option Plan for proceeds of $557,000 and
$787,000, respectively in the three and nine months ended September 30, 1996.
During the three months ended September 30, 1996, the Company granted under the
1996 Employee Stock Option Plan 16,000 options entitling holders to receive one
Ordinary Share for each option at exercise prices ranging from $26.625 to
$29.125 and 37,499 options under the Employee Stock Purchase plan at a price of
$21.76. Also during the period, options to purchase an aggregate of 10,690
Ordinary Shares with an exercise price ranging from $8.66 to $10.00 were
cancelled.
As at September 30, 1996, options entitling holders to purchase an aggregate of
1,717,236 Ordinary Shares were outstanding with exercise prices ranging from
$1.68 to $32.375.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
General
The following information should be read in conjunction with the Unaudited
Consolidated Financial Statements and Notes thereto included in Item 1 of this
Quarterly Report, the Audited Consolidated Financial Statements and Notes
thereto and Management's Discussion and Analysis of Financial Condition and
Results of Operations contained in the Company's Annual Report on Form 10-K for
the year ended December 31, 1995 and with the Unaudited Consolidated Financial
Statements and Notes thereto contained in the Company's Quarterly Reports on
Form 10-Q for the quarterly periods ended March 31, 1996 and June 30, 1996.
Results of Operations
Revenues
Total revenues increased 109.3% from $7.0 million in the three months ended
September 30, 1995 to $14.7 million in the three months ended September 30,
1996, and increased 70.1% from $22.1 million in the nine months ended September
30, 1995 to $37.6 million in the nine months ended September 30, 1996. Both
service and license fee revenues increased as described below.
Service revenues increased 107.5% from $5.8 million in the three months ended
September 30, 1995 to $12.1 million in the three months ended September 30,
1996, and increased 72.1% from $18.2 million in the nine months ended September
30, 1995 to $31.3 million in the nine months ended September 30, 1996. The
increase in service revenues was primarily due to increased demand for software
enhancements from existing clients, as well as customizations for new clients.
License fee revenues increased 117.6% from $1.2 million in the three months
ended September 30, 1995 to $2.7 million in the three months ended September 30,
1996, and increased 60.8% from $3.9 million in the nine months ended September
30, 1995 to $6.3 million in the nine months ended September 30, 1996. Several
new license fees have been negotiated during the nine months ended September 30,
1996.
Cost of Services
Cost of services increased 102.5% from $2.9 million in the three months ended
September 30, 1995 to $5.9 million in the three months ended September 30, 1996,
and increased 77.1% from $8.8 million in the nine months ended September 30,
1995 to $15.5 million in the nine months ended September 30, 1996. As a
percentage of service revenues, cost of services remained relatively constant in
all periods, decreasing from 50.5% to 49.2% in the three month period and
increasing from 48.2% to 49.6% in the nine month period. The overall increase in
expenses was primarily due to additional personnel hired to support the
increased volume of business.
Cost of License Fees
Cost of license fees increased from $24,000 in the three months ended September
30, 1995 to $140,000 in the three months ended September 30, 1996 , and
increased from $53,000 in the nine months ended September 30, 1995 to $188,000
in the nine months ended September 30, 1996. This increase was due to employee
sales commissions earned on new license fee agreements, partially offset by
reductions in royalties paid to a third party in connection with certain license
fees.
<PAGE>
Sales and Marketing
Sales and marketing expenses increased 148.6% from $370,000 in the three months
ended September 30, 1995 to $920,000 in the three months ended September 30,
1996, and increased 129.6% from $1.0 million in the nine months ended September
30, 1995 to $2.4 million in the nine months ended September 30, 1996. This
increase was primarily due to the expansion of the Company's sales force in the
latter half of 1995. The Company anticipates that continued expansion of its
sales force in North America and its intention to establish a stronger sales
presence in Europe will increase its sales and marketing expenses through the
remainder of 1996.
Research and Development
Research and development expenses increased from $553,000 in the three months
ended September 30, 1995 to $1.1 million in the three months ended September 30,
1996, and increased from $975,000 in the nine months ended September 30, 1995 to
$3.0 million in the nine months ended September 30, 1996. This increase was due
to increased development efforts by the Company in creating new and enhanced
billing and customer care products. The developments resulted in the release of
Saville's Convergent Billing Platform TM (CBP)in the first quarter of 1996. The
Company intends to continue to increase its investment in research and
development efforts in the future.
General and Administrative
General and administrative expenses increased 67.8 % from $1.7 million in the
three months ended September 30, 1995 to $2.8 million in the three months ended
September 30, 1996, and increased 60.4% from $4.8 million in the nine months
ended September 30, 1995 to $7.6 million in the nine months ended September 30,
1996. This increase was attributable to the costs of building infrastructure
during 1995 and 1996 to support the growth in the Company's employee base and
the expansion of the Company's business.
Other Income and Expenses
Other income, net of other expenses, increased from $8,000 in the three months
ended September 30, 1995 to $393,000 in the three months ended September 30,
1996, and increased from $140,000 in the nine months ended September 30, 1995 to
$1.0 million in the nine months ended September 30, 1996. This increase was
primarily the result of interest earned on cash and cash equivalents and on the
net proceeds from the Company's public offering in November, 1995.
Provision for Income Taxes
The Company recorded a tax provision of $388,000 and $1.6 million in the three
and nine months ended September 30, 1995, respectively representing effective
tax rates of 26.0% and 23.9% respectively. Comparatively, tax provisions of
$910,000 and $1.9 million were recorded in the three and nine months ended
September 30, 1996, respectively, representing effective tax rates of 21.5% and
19.6% respectively. The Company's effective tax rate is largely dependent on the
proportion of the Company's income earned in different tax jurisdictions. The
Company is currently eligible for a 10% tax rate on "manufacturing" income
earned in the Republic of Ireland. The rate is not available for other types of
income such as income earned by the Company on its cash investments. The
eligibility for the 10% tax rate is the reason that the Company's effective tax
rate is below the Irish standard rate of 38%, and below the statutory rates of
Canada and the United States. There can be no assurances that the Company will
continue to be eligible for this 10% tax rate in future periods.
<PAGE>
Liquidity and Capital Resources
Cash and cash equivalents increased $5.0 million from $23.7 million at December
31, 1995 to $28.7 million at September 30, 1996. During the nine months ended
September 30, 1996, $4.3 million of cash was provided by operating activities
representing an increase of $2.4 million over the corresponding period in 1995.
This increase was due primarily to the increased net income in the nine months
ended September 30, 1996.
The Company used $2.2 million to purchase fixed assets during the nine months
ended September 30, 1996. This represents an increase of $305,000 over the
corresponding period in 1995. The Company continues to make capital asset
investments for infrastructure to support the business growth experienced and
anticipated in the next fiscal period. The Company expects to continue its
capital asset investments in 1997.
During the nine months ended September 30, 1996 the Company issued Ordinary
Shares pursuant to exercises of options under the employee stock option plan for
proceeds of approximately $787,000. On June 24, 1996, the Company issued 100,000
Ordinary Shares in a public offering for proceeds to the Company of
approximately $2.6 million before expenses. Also, during the nine months ended
September 30, 1996 the Company paid public offering costs of approximately
$583,000 and received $100,000 on the repayment of an employee share purchase
loan.
As of September 30, 1996 the Company had $15.1 million in net accounts
receivable. The average days sales outstanding ("DSO") at September 30, 1996 was
approximately 94 days as compared to approximately 121 at September 30, 1995.
DSO is calculated based on the average daily sales of the immediately preceding
three month period divided by the trade accounts receivable balance at the end
of the period.
The Company believes that existing cash balances and funds generated by
operations will be sufficient to meet its anticipated liquidity and working
capital requirements through at least fiscal 1997.
Certain Factors That May Affect Future Results
This Quarterly Report contains forward-looking statements that involve risks and
uncertainties. The Company's actual results may differ significantly from the
results discussed in the forward-looking statements. A number of uncertainties
exist that could affect the Company's future operating results, including,
without limitation, the Company's ability to retain existing customers and
attract new customers, the Company's ability to attract and retain qualified
employees the Company's continuing ability to develop products that are
responsive to the evolving needs of its customers, increased competition,
changes in operating expenses, foreign currency exchange rates, the Company's
continued ability to take advantage of favorable tax treatment currently
available to the Company, and general economic factors.
To date, a substantial portion of the Company's total revenues has derived from
a small number of customers. This concentration of customers can cause the
Company's revenues and earnings to fluctuate from quarter to quarter, based on
these customers' requirements and the timing of their orders. A significant
decrease in business from any of its major customers would have a material
adverse effect on the Company's business, financial condition, and results of
operations.
The Company competes with both independent providers of systems and services
like the Company and with internal billing departments of existing
telecommunications service providers, many of which have substantially greater
financial, technical, sales, marketing and other resources, as well as greater
name recognition, than the Company. There can be no assurance that the Company
will be able to compete successfully with its existing competitors or with new
competitors.
<PAGE>
The Company's future success depends in large part on its ability to develop new
customer relationships with successful telecommunications service providers.
There can be no assurance that the Company will be able to develop such
relationships or that service providers that become customers of the Company
will be successful. Historically, the Company has been dependent on long-term
customer relationships and therefore, the failure of the Company's customers to
compete effectively in the telecommunications market could have a material
adverse effect on the Company's business, financial condition and results of
operations.
Although the Company has developed software for UNIX-based operating systems,
the Company's billing software currently runs primarily on the IBM AS/400
platform which represents a leading platform for existing and new billing
systems. If there should be a rapid shift away from the current use of the
AS/400 platform by the telecommunications industry for billing, the Company
would be required to expend substantial capital resources to develop new
software and likely experience delays or losses in customer orders.
The Company's success will depend upon its ability to enhance its existing
products and to introduce new products and features to meet changing customer
requirements. The Company is currently devoting significant resources to
refining and expanding its base software modules and to continuing the
development of billing software that will operate on UNIX-based operating
systems. If the Company were unable, due to resource, technological or other
constraints, to adequately anticipate or respond to such changes, the Company's
business, financial condition and results of operations would be materially
adversely affected.
Historically, the Company's sales outside the United States have represented a
significant portion of the Company's total revenues, and the Company expects
that non-U.S. operations will continue to account for a significant portion of
its revenues in the future. The Company's international business is subject to
risks such as fluctuations in exchange rates, difficulties or delays in
developing and supporting non-English language versions of the Company's
products, political and economic conditions in various jurisdictions, unexpected
changes in regulatory requirements, tariffs and other trade barriers,
difficulties in staffing and managing foreign operations and longer accounts
receivable payment cycles.
Fluctuations in exchange rates may have a material adverse effect on the
Company's results of operations, particularly its operating margins, and could
also result in exchange losses. The impact of future exchange rate fluctuations
on the Company's results of operations cannot be accurately predicted. To date,
the Company has not sought to hedge the risks associated with fluctuations in
exchange rates, but may undertake such transactions in the future. There can be
no assurance that any hedging techniques implemented by the Company will be
successful or that the Company's results of operations will not be materially
adversely affected by exchange rate fluctuations.
The Company has significant operations and generates a substantial portion of
its taxable income in the Republic of Ireland, and, under an incentive tax
program due to terminate in 2010, is taxed on its "manufacturing income" at a
10% rate, which is substantially lower than U.S. tax rates. If the Company could
no longer qualify for this 10% tax rate or if the tax laws were rescinded or
change, the Company's net income could be materially adversely affected. In
addition, if U.S., Canadian or other foreign tax authorities were to challenge
successfully the manner in which profits are recognized among the Company and
its subsidiaries, the Company's effective tax rate could increase, and its cash
flow and results of operations could be materially adversely affected.
<PAGE>
SAVILLE SYSTEMS PLC
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
The exhibits listed in the Exhibit Index as part of or included
in this report.
(b) Reports on form 8-K
None
<PAGE>
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.
SAVILLE SYSTEMS PLC
(Registrant)
Date: November 12, 1996 By: /s/ John J. Boyle, III
------------------------------- ----------------------------
John J. Boyle, III
President & CEO
Date: November 12, 1996 By: /s/ Marc Venator
------------------------------ ----------------------------
Marc Venator
Chief Financial Officer
(Principal Financial and
Accounting Officer)
<PAGE>
SAVILLE SYSTEMS PLC
FORM 10-Q REPORT
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996
INDEX TO EXHIBITS
Exhibit No. Description Page
11.0 Statement re: Computation of Per Share
Earnings 14
27.0 Financial Data Schedule 15
EXHIBIT 11.0
SAVILLE SYSTEMS PLC
FORM 10-Q REPORT
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996
Calculation of Shares Used in Determining
Net Income Per Share (1)
(in thousands, except per share data)
<TABLE>
Three months ended Nine months ended
Sept. 30 Sept. 30 Sept. 30 Sept. 30
1996 1995 1996 1995
- --------------------------------------------- ------------------ -------------- ---------------- ---------------
(unaudited) (unaudited) (unaudited) (unaudited)
<S> <C> <C> <C> <C>
Net income $3,311 $1,054 $7,915 $4,981
Weighted average number of Ordinary equivalent shares:
Ordinary shares 17,771 15,004 17,646 15,004
Non-qualified share options (2) 1,277 793 1,229 793
19,048 15,797 18,875 15,797
Net Income per Share $0.17 $0.07 $0.42 $0.32
</TABLE>
(1) This Exhibit should be read in connection with "Net Income per share" in
Note 2 of the notes to the consolidated interim financial statements.
(2) Pursuant to the requirements of the Securities and Exchange Commission,
Ordinary Shares and share equivalents issued during the twelve month period
prior to the Company's initial public offering have been included in the
calculation (using the treasury stock method and the initial public offering
price) as if they were outstanding for all periods presented.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
UNAUDITED CONSOLODATED FINANCIAL STATEMENTS FOR THE QUARTERLY PERIOD ENDED
SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1
<CASH> 28,681
<SECURITIES> 0
<RECEIVABLES> 15,793
<ALLOWANCES> 671
<INVENTORY> 0
<CURRENT-ASSETS> 45,118
<PP&E> 5,139
<DEPRECIATION> 1,169
<TOTAL-ASSETS> 49,832
<CURRENT-LIABILITIES> 7,910
<BONDS> 0
0
48
<COMMON> 45
<OTHER-SE> 41,527
<TOTAL-LIABILITY-AND-EQUITY> 49,832
<SALES> 0
<TOTAL-REVENUES> 37,607
<CGS> 0
<TOTAL-COSTS> 18,086
<OTHER-EXPENSES> 9,259
<LOSS-PROVISION> 301
<INTEREST-EXPENSE> 14
<INCOME-PRETAX> 9,947
<INCOME-TAX> 1,947
<INCOME-CONTINUING> 7,915<F1>
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,915
<EPS-PRIMARY> 0.42
<EPS-DILUTED> 0.42
<FN>
<F1> After deducting minority interest of 85.
</FN>
</TABLE>
