FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------------
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the quarterly period ended: June 28, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the transition period from_______to________
Commission file number: 0-27992
ELAMEX, S.A. de C.V.
(Exact name of registrant as specified in its charter)
Mexico Not Applicable
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification number)
Avenida Insurgentes No. 4145-B Ote.
Cd. Juarez, Chihuahua Mexico C.P. 32340
(Address of principal executive offices) (Zip code)
(915) 774-8252
Registrant's telephone number, including area code
in El Paso, Texas
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 ____
The number of shares of Class I Common Stock, no par value of the Registrant
outstanding as of August 7, 1998 was:
7,350,000
================================================================================
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<TABLE>
<CAPTION>
ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
TABLE OF CONTENTS
Page No.
<S> <C> <C>
PART I FINANCIAL INFORMATION
Item 1. Consolidated Balance Sheets as of
June 28, 1998 and December 31, 1997..............................1
Consolidated Statements of Earnings for the thirteen and
twenty-six weeks ended June 28, 1998 and June 29, 1997...........2
Consolidated Statements of Cash Flows for the twenty-six
weeks ended June 28, 1998 and June 29, 1997......................3
Notes to Consolidated Financial Statements.......................4
Item 2. Management's Discussion and Analysis fo Financial
Condition and Results of Operations..............................6
PART II OTHER INFORMATION
Item 3. Defaults Upon Senior Securities..................................9
Item 4. Submission of Matters to a Vote of Security Holders..............9
Item 5. Other Information................................................9
Item 6. Exhibits and Reports on Form 8-K.................................10
SIGNATURES .................................................................11
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
Consolidated Balance Sheets
(In U. S. Dollars)
June 28, December 31,
1998 1997
(Unaudited)
------------------- ------------------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 15,978,646 13,597,581
Receivables
Trade accounts, less allowance for doubtful accounts 16,174,960 14,343,265
Other receivables 3,602,281 1,872,747
------------------- ------------------
Total receivables 19,777,241 16,216,012
------------------- ------------------
Investment security - 2,080,000
Inventories, net 10,698,582 12,696,705
Prepaid expenses 2,684,529 809,109
------------------- ------------------
Total current assets 49,138,998 45,399,407
Property, plant and equipment, net 28,261,375 28,503,121
Other assets, net 679,648 742,644
------------------- ------------------
$ 78,080,021 74,645,172
=================== ==================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 6,142,370 4,337,223
Accrued expenses 3,946,141 3,854,638
Current obligations of capital leases 382,115 496,190
Taxes payable 1,495,940 1,306,126
Deferred income taxes, net 3,581,899 3,581,899
Due to related parties 24,681 45,480
------------------- ------------------
Total current liabilities 15,573,146 13,621,556
Capital lease obligations, excl. current obligations 239,769 654,462
Other liabilities 302,953 258,988
Deferred income taxes, net 3,547,755 3,078,486
------------------- ------------------
Total liabilities 19,663,623 17,613,492
Stockholders' equity:
Preferred stock, authorized 50,000,000 shares, none issued
or outstanding - -
Common stock, 22,400,000 shares authorized, 7,400,000 issued,
and 7,350,000 and 7,381,500 shares outstanding at
June 28, 1998 and December 31, 1997, respectively 35,010,468 35,010,468
Retained earnings 23,843,883 22,236,212
Treasury stock, 50,000 and 18,500 shares at June 28, 1998
and December 31, 1997, respectively, at cost (437,953) (215,000)
------------------- -------------------
58,416,398 57,031,680
------------------- -------------------
$ 78,080,021 74,645,172
=================== ===================
<FN>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
Consolidated Statements of Earnings
(In U. S. Dollars)
13 weeks ended 26 weeks ended
-------------------------------- ---------------------------------
June 28, June 29, June 28, June 29,
1998 1997 1998 1997
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------------- --------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Net sales $ 30,667,807 33,826,874 58,973,565 67,642,145
Cost of sales 26,734,363 28,559,425 51,842,901 57,940,852
--------------- --------------- ---------------- ---------------
Gross Profit 3,933,444 5,267,449 7,130,664 9,701,293
--------------- --------------- ---------------- ---------------
Operating expenses:
General and administrative 1,955,746 2,150,765 3,947,308 4,029,095
Selling 432,312 193,351 743,464 345,127
Research & development 496,019 - 989,621 -
--------------- --------------- ---------------- ---------------
Total operating expenses 2,884,077 2,344,116 5,680,393 4,374,222
--------------- --------------- ---------------- ---------------
Operating income 1,049,367 2,923,333 1,450,271 5,327,071
--------------- --------------- ---------------- ---------------
Other income (expense):
Interest income 252,594 83,520 483,390 122,970
Interest expense (44,996) (50,918) (89,457) (101,156)
Other, net 79,011 132,773 420,121 221,063
--------------- --------------- ---------------- ---------------
Total other income 286,609 165,375 814,054 242,877
--------------- --------------- ---------------- ---------------
Income before income taxes 1,335,976 3,088,708 2,264,325 5,569,948
Income tax provision 378,149 958,387 656,654 1,752,383
--------------- --------------- ---------------- ---------------
Net income $ 957,827 2,130,321 1,607,671 3,817,565
=============== =============== ================ ===============
Basic and diluted earnings per
common share $ 0.13 0.29 0.22 0.52
Weighted average shares outstanding 7,365,865 7,400,000 7,367,042 7,400,000
=============== =============== ================ ===============
<FN>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>
2
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<TABLE>
<CAPTION>
ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(In U. S. Dollars)
26 weeks ended
-----------------------------------
June 28, June 29,
1998 1997
(Unaudited) (Unaudited)
--------------- --------------
<S> <C> <C>
Cash flows provided by operating activities:
Net income $ 1,607,671 3,817,565
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,056,450 2,025,245
Allowance for doubtful trade accounts receivable 167,844 33,680
Allowance for excess and obsolete inventory (326,304) (35,991)
Deferred income taxes, net 469,269 1,587,316
Loss on disposal of property, plant and equipment 163,438 70,642
Change in assets and liabilities:
Trade account receivable (1,999,539) (3,909,349)
Other receivables (1,729,534) 937,795
Inventories 2,324,427 5,548,373
Prepaid expenses (1,875,420) (363,533)
Other assets 33,804 29,497
Accounts payable 1,805,147 (3,009,527)
Accrued expenses, taxes payable and
due to related parties 260,518 1,001,716
Other liabilities 43,965 41,317
--------------- --------------
Net cash provided by operating activities 3,001,736 7,774,746
--------------- --------------
Cash flows used by investing activities:
Proceeds from the sale of investment security 2,080,000 -
Purchase of property, plant and equipment (2,208,965) (1,466,339)
Proceeds from disposal of equipment - 153,066
--------------- --------------
Net cash used by investing activities (128,965) (1,313,273)
--------------- --------------
Cash flows used by financing activities:
Principal repayments of capital lease obligations (268,753) (301,760)
Purchase of treasury stock (222,953) -
--------------- --------------
Net cash used by financing activities (491,706) (301,760)
--------------- --------------
Net increase in cash and cash equivalents 2,381,065 6,159,713
Cash and cash equivalents, beginning of period 13,597,581 6,269,825
--------------- --------------
Cash and cash equivalents, end of period $ 15,978,646 12,429,538
=============== ==============
<FN>
See accompanying notes to consolidated financial statements.
</FN>
</TABLE>
3
<PAGE>
ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(In U.S. Dollars)
June 28, 1998
(Unaudited)
(1) General
The consolidated financial statements of Elamex, S.A. de C.V., and
subsidiaries ("Elamex" or the "Company") are unaudited and certain information
and footnote disclosures normally included in financial statements have been
omitted. While the management of the Company believes that the disclosures
presented are adequate, interim consolidated financial statements should be
read in conjunction with the consolidated financial statements and notes
included in the Company's 1997 annual report on Form 10-K.
In the opinion of management, the accompanying unaudited consolidated
financial statements contain all normal recurring adjustments necessary for a
fair presentation of the Company's consolidated financial statements for the
interim period. The results of operations for the twenty-six week period ended
June 28, 1998 are not necessarily indicative of the results to be expected for
the entire year.
(2) Inventories
Inventories consist of the following:
<TABLE>
<CAPTION>
June 28, December 31,
1998 1997
--------------- ---------------
<S> <C> <C>
Raw materials $ 9,974,834 10,732,767
Work-in-process 808,486 1,213,553
Finished goods 1,353,324 2,467,932
--------------- ---------------
12,136,644 14,414,252
Reserve for excess and obsolete inventory (1,438,062) (1,717,547)
--------------- ---------------
$ 10,698,582 12,696,705
=============== ===============
</TABLE>
(3) Foreign Currency Translation
Included in "other, net" on the accompanying consolidated statements of
operations is a foreign exchange gain of $73,744 and a $17,309 loss for the
twenty-six week periods ended June 28, 1998 and June 29, 1997, respectively.
Assets and liabilities denominated in pesos are summarized as follows in U. S.
dollars:
<TABLE>
<CAPTION>
June 28, December 31,
1998 1997
---------------- ----------------
<S> <C> <C>
Cash and cash equivalents $ 271,638 356,848
Other receivables 2,030,326 690,906
Prepaid expenses 244,075 248,609
Other assets, net 155,983 80,249
Accounts payable (93,822) (376,168)
Accrued expenses
and other (3,388,442) (2,547,084)
liabilities
---------------- ----------------
Net non-U.S. currency position $ (780,242) (1,546,640)
================ ================
</TABLE>
4
<PAGE>
ELAMEX, S.A. DE C.V. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(In U.S. Dollars)
June 28, 1998
(Unaudited)
(4) Research and Development
In January 1998, the Company agreed to purchase 2,525,000 shares of
Series A 9% Cumulative Convertible Preferred Stock ("Preferred Stock") of
Optimag, Inc. ("Optimag"), a California corporation. A majority of the Board
members of Optimag are Elamex directors.
Optimag was formed to develop, manufacture, and market optical
inspection stations and electrical test equipment to companies that produce disk
drive heads, magnetic media, and optical heads and optical media. The Company
has agreed to purchase the Preferred Stock in a three-part transaction as
follows:
In January 1998, the Company signed the Preferred Stock Purchase Agreement
and purchased 637,500 shares of Preferred Stock for $1.00 per share which
are convertible into common stock 1 for 1.
Because certain performance targets were met, in March 1998, the Company
purchased an additional 637,500 shares of Preferred Stock at $1.00 per
share.
Upon completion of certain benchmarks and several prototype inspection
stations, the Company will purchase in tranches, an additional 1,250,000
shares of Preferred Stock at $1.00 per share. After conversion to common
stock, the Company will own a minimum of 51% of the common stock.
The Company has consolidated the operations of this investment. As of
June 1998, approximately $1.0 million have already been expensed.
(5) Income Taxes
Pursuant to Statement of Financial Accounting Standards No. 109,
Accounting for Income Taxes ("FAS 109"), the Company has estimated income
taxes using an overall expected effective tax rate of approximately 29% for
the twelve months ended December 31, 1998. The actual effective tax rate for
the year ended December 31, 1998 may differ from that used to estimate taxes
on June 28, 1998. In addition, during the quarter ended June 28, 1998, the
Company reduced a previously recorded valuation allowance related to asset tax
carry forwards by approximately $220,000.
(6) Basic Earnings per Share
Basic Earnings per share on common stock ("EPS") for the twenty-six
weeks ended June 28, 1998 and June 29, 1997 were calculated using the weighted
average number of common shares outstanding. The weighted average number of
common shares outstanding for the twenty-six week period ended June 28, 1998
was 7,367,042, and the weighted average number of shares used to determine EPS
at June 29, 1997 was 7,400,000. The company has no dilutive securities.
(7) Subsequent Events
On July 14, 1998, the Company formed a joint venture ("JV"), with GE
International Mexico, S.A. de C.V. ("GE") a subsidiary of the General Electric
Company, to produce plastic molding and stamped metal components in Juarez,
Mexico. The Company will contribute its current plastic molding and metal
stamping operations to the JV, of which it will own 50.1%, with GE owning the
remaining 49.9%. As of June 28, 1998, the plastics and metal stamping operations
had total net assets of approximately $5.0 million. In connection with the JV,
GE will receive a 3-year warrant to purchase up to 6.3% of Elamex's common stock
exercisable at $7.81 per share subject to anti-dilution provisions and will have
a representative on Elamex's Board. The JV will begin with a $10 million dollar
commitment of business from General Electric, expected to increase over the next
year. In addition to supporting GE, the JV will continue to look for
opportunities within Elamex's client base.
5
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Results of Operations
General
The following table sets forth statement of earnings data as a
percentage of net sales, derived from Consolidated Financial Statements included
elsewhere herein, for each period presented, unless otherwise indicated.
<TABLE>
<CAPTION>
Percentage of Net Sales
(Unaudited)
Thirteen weeks ended Twenty-six weeks ended
June 28 June 29 June 28 June 29
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Net sales........................................... 100.0% 100.0% 100.0% 100.0%
Cost of sales....................................... 87.2 84.4 87.9 85.7
Gross profit........................................ 12.8 15.6 12.1 14.3
Selling, general and administrative expenses........ 7.8 7.0 8.0 6.5
Research and development............................ 1.6 0.0 1.7 0.0
Operating income.................................... 3.4 8.6 2.4 7.9
Other income........................................ 0.9 0.5 1.4 0.4
Income before income taxes.......................... 4.4 9.1 3.8 8.3
Income tax provision................................ 1.2 2.8 1.1 2.6
Net income ......................................... 3.1 6.3 2.7 5.7
</TABLE>
Net Sales for the thirteen weeks ended June 28, 1998 decreased 9.3% to
$30.7 million from $33.8 million for the comparable period in 1997. Net sales
for the twenty-six weeks ended June 28, 1998 decreased 12.8% to $59.0 million
from $67.6 million for the same period in 1997. The decrease is primarily due to
the completion of projects and to fluctuations in demand from certain other
customers, however, these were partially offset by sales to new customers. For
the thirteen week and twenty-six week periods ended June 28, 1998, the Company's
assembly sales slightly declined. Turnkey sales also dropped as compared to the
same period of 1997.
Gross Profit decreased 25.3% to $3.9 million or 12.8% as a percentage
of sales, for the thirteen weeks ended June 28, 1998, as compared to $5.3
million or 15.6% as a percentage of sales, for the same period of the prior
year. Gross profit decreased 26.5% to $7.1 million for the twenty-six weeks
ended June 28, 1998 from $9.7 million for the same period in 1997. The gross
profit decrease was due to an increase in labor cost as there was only a partial
exchange rate compensation of the labor rate increase at the beginning of the
year, in addition to a change in the business structure of some assembly
contracts and the loss of turnkey sales as explained above.
Selling, General and Administrative (SG&A) Expenses increased 1.9% to
$2.4 million for the thirteen weeks ended June 28, 1998, compared to $2.3
million for the same period of the prior year. SG&A Expenses increased as a
percentage of sales to 7.8% for the thirteen weeks ended June 28, 1998, compared
to 7.0% for the thirteen weeks ended the same period in 1997. The increase in
SG&A Expenses reflects additional staffing and infrastructure in the sales and
marketing areas for the thirteen and twenty six weeks ended June 28, 1998.
Research and Development (R&D) represents 1.6% and 1.7% of sales for
the thirteen and twenty six weeks ended June 28, 1998, respectively, and is
directly attributed to the start-up of Optimag, Inc., a non-invasive inspection
technology company, in which Elamex holds a majority interest.
Operating Income decreased by 64.1% to $1.0 million, or 3.4% of net
sales, for the thirteen weeks ended June 28, 1998, from $2.9 million, or 8.6% of
net sales, for the thirteen weeks ended June 29, 1997. The decrease in operating
income as a percentage of sales was a result of the gross profit decrease and
the increase of SG&A Expenses previously mentioned for the thirteen and twenty
six week period ended June 28, 1998.
6
<PAGE>
Income tax provision decreased to $0.4 million, or 1.2% of net sales
for the thirteen weeks ended June 28, 1998, from $1.0 million or 2.8% of net
sales for the thirteen weeks ended June 29, 1997. The estimated effective tax
rate at June 28, 1998 was 29%, compared to 31% for the same period ended 1997.
The income tax provision does not include the benefit of deductions caused by
losses in Optimag, Inc. a U.S. company. For financial reporting purposes, a
valuation allowance was established for the full amount of the deferred tax
asset related to this net operating loss carryforward. The difference between
the estimated tax rate of 29% and the statutory tax rate of 34% for 1998, is
caused primarily by negative inflationary effects. The income tax provision was
also reduced by approximately $220,000 due to a reduction in a valuation
allowance related to asset tax credit carryforwards. At June 28, 1998 the
Company expected that income levels for certain companies with asset tax credits
would be sufficient to fully utilize such credits.
Liquidity and Capital Resources
The Company's working capital needs (defined as inventory plus trade
and other accounts receivable, minus accounts payable) showed a slight reduction
for this period. At December 31, 1997, the Company had working capital of $24.6
million compared to $24.3 million at June 28, 1998. This decrease was due to a
reduction in inventories partially offset by an increase in accounts payable.
For the thirteen weeks ended June 28, 1998, the company had net cash
provided by operating activities of $3.0 million which consists of net income of
$1.6 million plus depreciation and amortization of $2.1 million, a decrease of
inventories of $2.3 million, a decrease in accrued and other liabilities of $0.3
million, an increase in accounts payable of $1.8 million, and other
miscellaneous reductions of $0.3 million, offset by an increase in receivables
of $3.7 million and prepaid expenses of $1.9 million.
Cash provided by operating activities financed additions of $2.2
million of property, plant, and equipment. It also provided cash for the
repayment of capital lease obligations, and purchase of treasury stock.
The Company had the following lines of credit, outstanding borrowings,
and significant capital leases at June 28, 1998:
<TABLE>
<CAPTION>
Amount Interest
Lender or Outstanding at Rate at
Class of Securities Type June 28, 1998 June 28, 1998 Maturity Date
- ------------------- ---- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Comerica Bank $10 million Line of
Credit $ - 9.00% May 1, 1999
Bank of America $10 million Line of
N.T. & S.A. Credit - 8.91% December 15, 1999
Norwest Bank El Paso $5 million Line of
Credit - 8.50% December 6, 2001
GE Financial Capital Lease $ 621,884 7.92% December 15, 1999
----------
Total $ 621,884
</TABLE>
Under its several credit agreements, Elamex has committed to maintain:
(a) a debt service coverage ratio of 1.3, (b) a current ratio no lower than
1.25, (c) a leverage ratio (defined as the ratio of senior indebtedness to the
sum of capital plus subordinated indebtedness) no greater than 1.5 and (d)
equity plus subordinated indebtedness of no less than $18 million. The Company
may not invest in or advance significant amounts to other companies that are not
a party to one of the debt agreements. As of June 28, 1998 the Company believes
it was in compliance with all material covenants related to its debt
obligations.
Research and Development
In January 1998, the Company agreed to purchase 2,525,000 shares of
Series A 9% Cumulative Convertible Preferred Stock ("Preferred Stock") of
Optimag, Inc. ("Optimag"), a California corporation. Optimag was formed to
develop, manufacture, and market optical inspection stations and electrical test
equipment to companies that produce disk drive heads, magnetic media, and
optical heads and optical media. The Company agreed to purchase the Preferred
Stock in a three-part transaction subject to certain peformance targets.
7
<PAGE>
At June 28, 1998, the Company had purchased 1,275,000 shares of Preferred Stock
for $1.00 per share which are convertible into common stock 1 for 1. Upon
completion of certain benchmarks and several prototype inspection stations, the
Company will purchase in three tranches, the final 1,250,000 shares of Preferred
Stock at $1.00 per share. After conversion to common stock, the Company will own
a minimum of 51% of the common stock. At June 1998, approximately $1.0 million
have already been expensed.
Year 2000 Issue
During 1997, the Company began a corporate-wide system conversion to a
software system that is Year 2000 compliant. The Company is also currently
evaluating all systems that it believes are sensitive to the Year 2000 issue.
The conversion and systems evaluation will cover all significant computer
applications of the Company. Implementation and final evaluation of all systems
is expected in early Fall 1998. The Year 2000 issues is the result of computer
programs being written using two digits rather than four to define the
applicable year. The Company presently believes that, with the upgrades
currently in progress, the Year 2000 problem will not pose significant
operational problems.
Forward Looking Comments
This form 10-Q includes forward-looking statements that involve risks
and uncertainties, including, but not limited to, risks associated with the
company's future growth and profitability, the ability of the Company to
continue to increase sales to existing customers and to new customers and the
effects of competitive and general economic conditions.
8
<PAGE>
PART II
OTHER INFORMATION
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of Security Holders during the
period covered by this report.
Item 5. Other Information
Elamex, S.A. de C.V. intends to provide periodic reports according to
Section 13 of the Securities Exchange Act of 1934, as amended, and the rules
promulgated thereunder. It expects that its annual reports will be filed on Form
10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, or
equivalent forms, following the customary time deadlines therefor; but, as a
foreign private issuer, it is entitled to report on Form 20-F and Form 6-K and
it hereby reserves all of its rights to use such forms or their equivalent as
permitted for such an issuer under applicable laws, rules and regulations.
9
<PAGE>
Item 6. Exhibits and Reports on Form 8-K.
<TABLE>
<CAPTION>
(a) Exhibits
Exhibit Description
Number
<S> <C>
3 Estatutos Sociales (By-Laws) of the Registrant (including English translation).*
* Filed as an exhibit to the Company's Registration Statement on Form S-1, file No. 333-01768
(b) No reports on Form 8-K were filed during the period covered by this report.
</TABLE>
10
<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, in Ciudad Juarez, Chihuahua, Mexico.
ELAMEX, S.A. de C.V.
Date: August 12, 1998 By: /s/ HECTOR RAYNAL
-----------------
Hector M. Raynal
President and Chief Executive Officer
(Duly Authorized Officer)
Date: August 12, 1998 By: /s/ CARLOS MARTENS
------------------
Carlos D. Martens
Vice-President of Finance and
Chief Financial Officer
11
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001009302
<NAME> ELAMEX, S.A. DE C.V.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> MAR-30-1998
<PERIOD-END> JUN-28-1998
<CASH> 15,979
<SECURITIES> 0
<RECEIVABLES> 19,777
<ALLOWANCES> 0
<INVENTORY> 10,699
<CURRENT-ASSETS> 49,139
<PP&E> 44,894
<DEPRECIATION> 16,633
<TOTAL-ASSETS> 78,080
<CURRENT-LIABILITIES> 15,573
<BONDS> 0
0
0
<COMMON> 35,010
<OTHER-SE> 23,406
<TOTAL-LIABILITY-AND-EQUITY> 78,080
<SALES> 30,668
<TOTAL-REVENUES> 30,668
<CGS> 26,734
<TOTAL-COSTS> 2,884
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,336
<INCOME-TAX> 378
<INCOME-CONTINUING> 958
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 958
<EPS-PRIMARY> .13
<EPS-DILUTED> .13
</TABLE>
