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 March 31, 1999
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 0-27316
Molecular Devices Corporation
(Exact name of registrant as specified in its charter)
Delaware 94-2914362
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1311 Orleans Drive
Sunnyvale, California 94089
(Address of principal executive offices, including zip code)
(408) 747-1700
(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 ___
As of May 10, 1999, 9,560,121 shares of the Registrant's Common Stock were
outstanding.
<PAGE>
Molecular Devices Corporation
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1999
Index
PAGE
PART I. FINANCIAL INFORMATION NUMBER
ITEM 1. FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31, 1999 and December 31, 1998................................ 3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31, 1999 and 1998.......................... 4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 1999 and 1998.......................... 5
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS................ 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS................................. 8
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK................................................... 11
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS ...................................... 13
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS............... 13
ITEM 3. DEFAULTS UPON SENIOR SECURITIES......................... 13
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF
SECURITY HOLDERS........................................ 13
ITEM 5. OTHER INFORMATION....................................... 13
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K........................ 13
SIGNATURE.................................................................... 14
2
<PAGE>
<TABLE>
PART I: FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
MOLECULAR DEVICES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
<CAPTION>
March 31, December 31,
1999 1998
-------- --------
ASSETS: (unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 33,947 $ 32,689
Accounts receivable, net 12,992 12,958
Inventories 4,573 4,055
Deferred tax asset 2,080 1,630
Other current assets 594 688
-------- --------
Total current assets 54,186 52,020
Equipment and leasehold improvements, net 1,915 2,115
Other assets 359 270
-------- --------
$ 56,460 $ 54,405
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,862 $ 2,135
Accrued liabilities 3,894 4,945
Deferred revenue 1,582 1,502
-------- --------
Total current liabilities 8,338 8,582
Stockholders' equity:
Preferred stock, no par value; 3,000,000 authorized
no shares issued or outstanding -- --
Common stock, $.001 par value; 30,000,000
shares authorized; 9,551,951 and 9,476,062
shares issued and outstanding at March 31, 1999
and December 31, 1998, respectively 9 9
Additional paid-in capital 42,768 42,391
Retained Earnings 6,209 4,235
Deferred compensation (478) (586)
Accumulated other comprehensive income (386) (226)
-------- --------
Total stockholders' equity 48,122 45,823
-------- --------
$ 56,460 $ 54,405
======== ========
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
.
3
<PAGE>
MOLECULAR DEVICES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(unaudited)
Three Months Ended
March 31,
1999 1998
------- -------
TOTAL REVENUES $13,507 $10,346
TOTAL COST OF REVENUES 5,264 3,713
------- -------
GROSS MARGIN 8,243 6,633
------- -------
OPERATING EXPENSES:
Research and development 1,590 1,384
Selling, general and administrative 3,865 3,308
------- -------
Total operating expenses 5,455 4,692
------- -------
INCOME FROM OPERATIONS 2,788 1,941
Other income, net 421 358
------- -------
INCOME BEFORE TAXES 3,209 2,299
Income tax provision 1,235 885
------- -------
NET INCOME $ 1,974 $ 1,414
======= =======
BASIC NET INCOME PER SHARE $ 0.21 $ 0.15
======= =======
DILUTED NET INCOME PER SHARE $ 0.20 $ 0.15
======= =======
SHARES USED IN COMPUTING BASIC NET INCOME PER SHARE 9,528 9,361
======= =======
SHARES USED IN COMPUTING DILUTED NET INCOME PER SHARE 9,963 9,737
======= =======
The accompanying notes are an integral part of these statements.
4
<PAGE>
<TABLE>
MOLECULAR DEVICES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
<CAPTION>
Three Months Ended
March 31,
1999 1998
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,974 $ 1,414
Adjustments to reconcile net income to net
cash used in operating activities:
Depreciation and amortization 189 195
Amortization of deferred compensation 108 25
Loss on disposal of fixed asset -- --
(Increase) decrease in assets:
Accounts receivable (34) 212
Inventories (518) (356)
Deferred tax asset (450) 165
Other current assets 94 (141)
Increase (decrease) in liabilities:
Accounts payable 727 1,035
Accrued liabilities (1,051) (45)
Deferred revenue 80 192
-------- --------
Net cash provided by operating activities 1,119 2,696
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures 12 (84)
Other assets (89) 18
-------- --------
Net cash used in investing activities (77) (66)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of promissory notes -- --
Issuance of common stock, net 377 101
-------- --------
Net cash provided by (used in) financing activities 377 101
-------- --------
EFFECT OF EXCHANGE RATE CHANGES ON CASH: (161) (111)
-------- --------
Net increase (decrease) in cash and cash equivalents 1,258 2,620
Cash and cash equivalents at beginning of period 32,689 26,773
-------- --------
Cash and cash equivalents at end of period $ 33,947 $ 29,393
======== ========
<FN>
The accompanying notes are an integral part of these statements.
</FN>
</TABLE>
5
<PAGE>
Molecular Devices Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements included
herein have been prepared by the Company, without audit, pursuant to the rules
and regulations of the Securities and Exchange Commission. Certain information
and footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations, although the Company believes
the disclosures which are made are adequate to make the information presented
not misleading. These condensed consolidated financial statements should be read
in conjunction with the consolidated financial statements and the notes thereto
included in the Company's Annual Report on Form 10-K for the fiscal year ended
December 31, 1998, as filed with the Securities and Exchange Commission on March
26, 1999.
The unaudited condensed consolidated financial statements included herein
reflect all adjustments (which include only normal, recurring adjustments) which
are, in the opinion of management, necessary to state fairly the results for the
periods presented. The results for the three month period ended March 31, 1999
are not necessarily indicative of the results to be expected for the entire
fiscal year ending December 31, 1999.
Note 2. New Accounting Standards
In June 1998, the Financial Accounting Standards Board (FASB) issued Statement
of Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments
and Hedging Activities". We are required to adopt SFAS No. 133 for the year
ending December 31, 2000. SFAS No. 133 establishes methods of accounting for
derivative financial instruments and hedging activities related to those
instruments as well as other hedging activities. Because we currently hold no
derivative financial instruments and do not currently engage in hedging
activities, adoption of SFAS No. 133 is expected to have no material impact on
our financial condition or results of operations.
Note 3. Comprehensive Income
Statement of Financial Accounting Standards No. 130 requires unrealized gains or
losses on the Company's foreign currency translation adjustments, which are
reported separately in stockholders' equity, to be included in other
comprehensive income. Comprehensive income was approximately $1.9 million and
$1.3 million for the three month periods ended March 31, 1999 and 1998,
respectively.
6
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Note 4. Inventories
Inventories consist of (in thousands):
March 31, 1999 December 31, 1998
-------------- -----------------
(unaudited)
Finished goods $1,556 $1,660
Work in process 761 602
Raw materials and subassemblies 2,256 1,793
------ ------
$4,573 $4,055
====== ======
Note 5. Net Income Per Share
Basic net income per share is computed using the weighted average number of
shares of common stock outstanding and diluted net income per share is computed
using the weighted average number of shares of common stock outstanding and
dilutive common equivalent shares from outstanding stock options (using the
treasury stock method). Computation of earnings per share is as follows:
<TABLE>
MOLECULAR DEVICES CORPORATION
COMPUTATION OF EARNINGS PER SHARE
<CAPTION>
Three Months Ended
March 31,
1999 1998
------ ------
(unaudited)
<S> <C> <C>
Net Income $1,974 $1,414
====== ======
Denominator for basic EPS - weighted average common shares
outstanding 9,528 9,361
Effect of dilutive securities - employee stock options 435 376
------ ------
Denominator for diluted EPS - weighted average common shares
outstanding plus dilutive securities 9,963 9,737
====== ======
BASIC NET INCOME PER SHARE $ 0.21 $ 0.15
====== ======
DILUTED NET INCOME PER SHARE $ 0.20 $ 0.15
====== ======
</TABLE>
7
<PAGE>
MOLECULAR DEVICES CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Except for the historical information contained herein, the following discussion
contains forward-looking statements that involve risks and uncertainties. The
words "expect," "integrate," "believe," "intends," and words of similar import
are intended to identify those statements as forward-looking statements. The
Company's actual results could differ materially from those discussed here.
Factors that could cause or contribute to such differences include, but are not
limited to, those discussed in this section, as well as those identified in the
Company's Annual Report on Form 10-K for the year ended December 31, 1998 as
filed with the Securities and Exchange Commission on March 26, 1999.
The following discussion should be read in conjunction with the unaudited
condensed consolidated financial statements and notes thereto included in Part I
- - Item 1 of this Quarterly Report and the audited consolidated financial
statements and notes thereto and Management's Discussion and Analysis of
Financial Condition and Results of Operations for the year ended December 31,
1998 contained in the Company's Annual Report on Form 10-K for the year ended
December 31, 1998 as filed with the Securities and Exchange Commission on March
26, 1999. The results for the first quarter of 1999 are not necessarily
indicative of the results to be expected for the entire fiscal year ending
December 31, 1999.
Results of Operations - Three months ended March 31, 1999 and 1998
REVENUES. Revenues for the first quarter of 1998 increased 31% to approximately
$13.5 million from approximately $10.3 million in the first quarter of 1998. The
Maxline and Cell Analysis product families both generated increased levels of
revenue which was partially offset by decreased Threshold product family
revenues. Maxline and Cell Analysis revenues increased primarily due to greater
sales of new SPECTRAmax and FLIPR products, respectively, worldwide. Threshold
revenues declined primarily as a result of decreased demand from military
customers worldwide.
GROSS MARGIN. The Company's gross margin declined to 61% in the first quarter of
1999 as compared to 64% in the first quarter of 1998. This planned decline was
due primarily to a high volume of lower margin FLIPR products (384 upgrades) as
the Company's FLIPR production capacity was able to satisfy backlog demand for
this product during the quarter.
RESEARCH AND DEVELOPMENT. Research and development expenses for the first
quarter of 1999 increased 15% to approximately $1.6 million (11.8% of total
revenue) from approximately $1.4 million (13.4% of total revenue) for the first
quarter of 1998. This increased spending is primarily the result of additional
personnel and increased expenditures on the development of new products and
product line extensions.
SELLING, GENERAL AND ADMINISTRATIVE. Selling, general and administrative
expenses for the first quarter of 1999 increased 17% to approximately $3.9
million (28.6% of total revenue) from approximately $3.3 million (32.0% of total
revenue) for the first quarter of 1998. This increased spending is primarily the
result of additional expenditures on marketing, sales and service related
activities, including additional personnel, as the Company continued efforts to
expand worldwide market coverage.
8
<PAGE>
OTHER INCOME (NET). Net other income for the first quarter of 1999 increased by
18% to approximately $421,000 from approximately $358,000 for the first quarter
of 1998 primarily due to interest earned on increased cash balances (provided
primarily by operations) in the first quarter of 1999 as compared to 1998.
INCOME TAX PROVISION. The Company recorded income tax provisions of
approximately $1.2 million and $885,000, respectively, for the first quarter of
1999 and 1998 based on an effective tax rate of 38.5%.
Liquidity and Capital Resources
The Company had cash and cash equivalents of approximately $33.9 million at
March 31, 1999. During the first quarter of 1999, the Company generated
approximately $1.1 million and $377,000, respectively, from operations and
financing activities as partially offset by approximately $77,000 used in
investing activities. The cash flow from operations relates primarily to the
Company's earnings as partially offset by increased inventory and decreased
accrued liabilities balances at March 31, 1999. The cash flow from financing
activities relates solely to stock option exercises, while the cash used in
investing activities relates primarily to increased other assets.
The Company believes that its existing capital resources and cash expected to be
generated from future operations will be sufficient to fund its operations and
anticipated capital expenditures for the foreseeable future. However, the
Company's future liquidity and capital requirements will depend upon numerous
factors, including the resources the Company devotes to developing,
manufacturing and marketing its products, the extent to which the Company's
products generate market acceptance and demand, potential acquisition
opportunities that may arise and other factors. As such, there can be no
assurances that the Company will not require additional financing in the future
and, therefore, the Company may in the future seek to raise additional funds
through bank facilities, debt or equity offerings or other sources of capital.
Additional funding may not be available when needed or on terms acceptable to
the Company, which could have a material adverse effect on the Company's
business, financial condition and results of operations.
Factors That May Affect Future Results
The Company's business, financial condition and results of operations are
subject to various risk factors, including those described below and elsewhere
in this report.
o Uncertainty of Future Operating Results. Future operating results will
depend on many factors, including demand for the Company's products, the
levels and timing of government and private sector funding of life sciences
research activities, the timing of the introduction of new products by the
Company or by competing companies, the integration of acquired products and
technology into manufacturing and distribution processes, the Company's
ability to control costs and its ability to attract and retain highly
qualified personnel. Furthermore, the Company's gross margins can be
significantly affected by many factors, including shifts in product mix,
the mix of direct sales as compared with sales through distributors,
competitive price pressures and quarterly fluctuations in sales levels
relative to fixed costs.
o Fluctuations in Quarterly Operating Results; Lack of Backlog. The Company
manufactures its products to forecast rather than to outstanding orders,
and products are typically shipped within 30 to 90 days of purchase order
receipt. As a result, the Company does not believe the amount of backlog at
any particular date is indicative of its future level of sales. The
Company's manufacturing
9
<PAGE>
procedures may in certain instances create a risk of excess or inadequate
inventory levels if orders do not match forecasts. The Company's expense
levels are based, in part, on expected future sales. However, the timing of
capital equipment purchases by customers is expected to be uneven and
difficult to predict. If sales levels in a particular quarter do not meet
expectations, the Company may not be able to adjust operating expenses
sufficiently quickly to compensate for the shortfall, and the Company's
results of operations for that quarter may be materially adversely
affected. Many of the Company's products are subject to long customer
procurement processes. In addition, a significant portion of the Company's
revenues is typically derived from sales of a small number of relatively
high-priced systems, and sales of such products may increase as a
percentage of revenue in the future. Delays in receipt of anticipated
orders of such products could lead to substantial variability from quarter
to quarter. Furthermore, the Company has historically received purchase
orders and made a significant portion of each quarter's product shipments
near the end of the quarter. If that pattern continues, even short delays
in the receipt of orders or shipment of products at the end of a quarter
could have a material adverse effect on results of operations for that
quarter. The Company typically experiences a decrease in the level of sales
in the first calendar quarter as compared to the fourth quarter of the
preceding year because of budgetary and capital equipment purchasing
patterns in the life sciences industry. The Company also typically
experiences a decrease in product revenues in the third quarter compared to
the second quarter, related to seasonality primarily associated with lower
European and academic sales during the summer months. Revenues for the
third quarter of 1998 nominally exceeded second quarter 1998 revenues due
to the phasing in of new products. The Company believes that the third
quarter seasonality trend may recur in the future as the Company increases
efforts to further penetrate European Markets. Operating results in any
period should not be considered indicative of the results to be expected
for any future period.
o Dependency on New Products; Rapid Technological Change. The life sciences
instrumentation market is characterized by rapid technological change and
frequent new product introductions. The Company's future success will
depend on its ability to enhance its current products and to develop and
introduce, on a timely basis, new products that address the evolving needs
of its customers.
o Reliance on Sole Source Suppliers. Certain components used in the Company's
products are currently purchased from single sources. Any delay in the
manufacture of such components could materially adversely affect the
Company's business, financial condition and results of operations.
o Year 2000 Compliance. The Company has a Year 2000 project in place to
address the potential exposures related to the impact on its computer
systems and scientific and manufacturing equipment containing computer
related components for the Year 2000 and beyond. The Company is currently
assessing its internal and external Year 2000 risks and continues to
monitor, validate and implement the identified corrective actions. The
Company's internal business systems have been reviewed and plans are being
defined to achieve Year 2000 compliance. Testing of the Company's business
critical application programs began in the fourth quarter of 1998 and is
scheduled to be complete by the third quarter of 1999. Any failure on the
part of the Company to identify and correct Year 2000 compliance issues
related to the Company's internal business systems could materially
adversely affect the Company's business, financial condition and results of
operation.
All of the Company's products that are currently manufactured and supported
are Year 2000 compliant. There is an installed base of Company products no
longer distributed that are not Year 2000 compliant, all of which have an
identified upgrade path which our customers can purchase to achieve
compliance.
10
<PAGE>
In addition to risks associated with the Company's own computer systems,
equipment and products, the Company has relationships with, and is to
varying degrees dependent upon, a large number of third parties that
provide information, goods and services to the Company. These include
financial institutions, suppliers, vendors, governmental entities,
distributors and customers. If significant numbers of these third parties
experience failures in their computer systems or equipment due to Year 2000
non-compliance, it could affect the company's ability to process
transactions, manufacture products, or engage in similar normal business
activities. While many of these risks are outside the control of the
Company, the Company has instituted programs, including internal records
review and use of external questionnaires, to identify key third parties,
assess their level of Year 2000 compliance and address any non-compliance
issues.
At this time, the Company believes there are no significant incremental
costs anticipated to achieve both internal and external Year 2000
compliance. The total cost of the Year 2000 systems assessments and
conversions is being funded through operating cash flows and the Company is
expensing these costs as they are incurred. However, there can be no
assurances that the third parties of the Company will be in compliance and
the Company has no control over whether such third parties will be in
compliance with Year 2000 requirements. Any failure on the part of the
Company's third parties, which could include inability to deliver or
purchase product, could materially adversely affect the Company's business,
financial condition and results of operations.
Other Factors. The Company's business is affected by other factors, including:
(i) the possibility that the introduction or announcement of new products would
render existing products obsolete or result in a delay or decrease in purchase
orders for existing products; (ii) the extent to which and the timing in which
the Company's products achieve market acceptance; (iii) the capital spending
policies of the Company's customers (which depend on various factors, including
the resources available to such customers, the spending priorities among various
types of research equipment and the policies regarding capital expenditures
during recessionary periods), including those policies of universities,
government research laboratories and other institutions whose funding is
dependent on grants from government agencies; (iv) competition in the life
sciences instrumentation market which is highly competitive and expected by the
Company to increase; (v) the Company's ability to obtain and maintain patent and
other intellectual property protection for its products and technology; (vi)
compliance with governmental regulations, including those promulgated by the
United Sates Food and Drug Administration and similar state and foreign
agencies; and (vii) the extent of the Company's sales outside the United States,
which involve certain specific risks, including risks related to currency
fluctuations, imposition of government controls, export license requirements,
restrictions on export of critical technology, political and economic
instability or conflicts, trade restrictions, changes in tariffs and taxes and
difficulties in staffing and managing international operations and international
distributor relationships.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is exposed to market risk, including changes in interest rates and
foreign currency exchange rates. The primary objective of the Company's
investment activities is to preserve principal while at the same time maximizing
the income we receive from our investments without significantly increasing
risk. A discussion of the Company's accounting policies for financial
instruments and further disclosures relating to financial institutions is
included in the Summary of Significant Accounting Policies note in the Notes to
Consolidated Financial Statements included in the Company's Annual Report on
Form 10-K for the fiscal year ended December 31, 1998. The Company's interest
income is sensitive to changes in the general level of interest rates, primarily
U.S. interest rates. In this regard, changes in U.S. interest rates affect the
interest earned on the Company's cash equivalents. The
11
<PAGE>
Company invests its excess cash primarily in demand deposits with United States
banks and money market accounts and short-term securities. These securities,
consisting of commercial paper and U.S. government agency securities, are
carried at market value (which approximate cost), typically mature or are
redeemable within 90 days, and bear minimal risk. The Company is exposed to
changes in exchange rates in Europe (primarily the United Kingdom and Germany)
and Canada. All export sales, with the exception of sales into Canada, are
denominated in U.S. dollars and bear no exchange rate risk. Gains and losses
resulting from foreign currency transactions in Canada have been immaterial.
12
<PAGE>
MOLECULAR DEVICES CORPORATION
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is not currently a party to any material legal proceedings.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
The Company entered into employment arrangements with each of Mr. Joseph D.
Keegan, Mr. Timothy A. Harkness and Mr. John S. Senaldi pursuant to which the
Company is obligated to issue to each such officer shares of its Common Stock in
exchange for services rendered. As a result of these arrangements, the Company
issued shares of its Common Stock to these officers on the dates and amounts
indicated below in reliance on the exemption from registration afforded by
Section 4(2) of the Securities Act of 1993, as amended.
Number of Shares Date of Issue
Mr. Keegan 3,750 03/31/99
Mr. Harkness 1,250 01/09/99
Mr. Senaldi 312 02/06/99
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
27.1 Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed by the Company during the
quarter ended March 31, 1999.
13
<PAGE>
SIGNATURE
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.
MOLECULAR DEVICES CORPORATION
By: /s/ Timothy A. Harkness
----------------------------------------
Vice President, Finance and Chief
Financial Officer
(Duly Authorized and Principal Financial
and Accounting Officer)
Date: May 12, 1999
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Condensed Consolidated Balance Sheet as of March 31, 1999 and the
Consolidated Statement of Income for the three months ended March 31, 1999
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 33,947
<SECURITIES> 0
<RECEIVABLES> 13,317
<ALLOWANCES> 325
<INVENTORY> 4,573
<CURRENT-ASSETS> 54,186
<PP&E> 7,385
<DEPRECIATION> 5,470
<TOTAL-ASSETS> 56,460
<CURRENT-LIABILITIES> 8,338
<BONDS> 0
0
0
<COMMON> 9
<OTHER-SE> 48,113
<TOTAL-LIABILITY-AND-EQUITY> 56,460
<SALES> 13,507
<TOTAL-REVENUES> 13,507
<CGS> 5,264
<TOTAL-COSTS> 5,264
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,209
<INCOME-TAX> 1,235
<INCOME-CONTINUING> 1,974
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,974
<EPS-PRIMARY> 0.21
<EPS-DILUTED> 0.20
</TABLE>