UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------
FORM 10-Q
--------------------
(Mark One)
X Quarterly report pursuant to Section 13 or 15(d) of the Securities
- -------- Exchange Act of 1934
For the quarterly period ended December 31, 1997
OR
- -------- Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Commission File Number: 000-28276
SAWTEK INC.
(Exact name of registrant as specified in its charter)
Florida 59-1864440
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1818 South Highway 441
Apopka, Florida 32703
(Address of principal executive offices)
Telephone Number (407) 886-8860
(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 January 15, 1998, there were 20,975,704 shares of the
Registrant's Common Stock outstanding, par value $.0005.
<PAGE>
Sawtek Inc.
TABLE OF CONTENTS
Part I. Financial Information Page Number
Item 1. Financial Statements (unaudited)
Consolidated Balance Sheets as of December 31, 1997
and September 30, 1997 .............................. 3
Consolidated Statements of Income for the three months
months ended December 31, 1997 and 1996.............. 4
Consolidated Statements of Cash Flows for the three
months ended December 31, 1997 and 1996.............. 5
Notes to Consolidated Financial Statements........... 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations ....... 9
Part II. Other Information
Item 1. Legal Proceedings ................................... 14
Item 2. Changes in Securities ............................... 14
Item 3. Defaults Upon Senior Securities ..................... 14
Item 4. Submission of Matters to a Vote of Security Holders . 14
Item 5. Other Information ................................... 14
Item 6. Exhibits and Reports on Form 8-K .................... 14
Signatures............................................................. 15
Exhibit Index ......................................................... 16
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
<TABLE>
SAWTEK INC.
CONSOLIDATED BALANCE SHEETS
<CAPTION>
December 31, September 30,
1997 1997
(unaudited)
------------ -------------
(dollars in thousands, except per share data)
<S> <C> <C>
Assets
Current assets:
Cash , cash equivalents and short-term investments $ 63,321 $ 58,064
Accounts receivable net of allowance for doubtful accounts
and returns of $1,152 at December 31, 1997 and $684 at
September 30, 1997 9,959 11,895
Inventories 10,642 6,877
Deferred income taxes 1,188 1,234
Other current assets 780 579
-------- --------
Total current assets 85,890 78,649
Other assets 101 122
Property, plant and equipment, net 43,018 40,801
-------- --------
Total assets $129,009 $119,572
======== ========
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 3,974 $ 2,667
Accrued wages and benefits 1,593 3,290
Other accrued liabilities 2,730 2,588
Current maturities of long-term debt 1,053 1,249
Income taxes payable 782 68
-------- --------
Total current liabilities 10,132 9,862
Long-term debt, less current maturities 2,521 2,638
Deferred income taxes 9,957 8,612
Shareholders' equity:
Common stock; $.0005 par value; 120,000,000 authorized shares; issued and
outstanding shares 20,939,194 at December 31, 1997 and 20,761,805 at
September 30, 1997 11 10
Capital surplus 70,378 68,880
Unearned ESOP compensation (1,171) (1,171)
Retained earnings 37,181 30,741
-------- --------
Total shareholders' equity 106,399 98,460
-------- --------
Total liabilities and shareholders' equity $129,009 $119,572
======== ========
See accompanying notes to consolidated financial statements.
</TABLE>
3
<PAGE>
<TABLE>
SAWTEK INC.
CONSOLIDATED STATEMENTS OF INCOME - unaudited
<CAPTION>
Three Months Ended
December 31,
-------------------------
1997 1996
---- ----
(in thousands, except per share data)
<S> <C> <C>
Net sales $24,157 $18,502
Cost of sales 10,901 8,678
------- -------
Gross profit 13,256 9,824
Operating expenses:
Selling expenses 1,702 1,246
General & administrative expenses 1,252 1,134
ESOP compensation expense 53 196
Research & development expenses 868 681
------- -------
Total operating expenses 3,875 3,257
------- -------
Operating income 9,381 6,567
Interest expense 57 41
Other income (898) (355)
------- -------
Income before taxes 10,222 6,881
Income taxes 3,782 2,618
------- -------
Net income $ 6,440 $ 4,263
======= =======
Net income per share - basic $ 0.31 $ 0.21
======= =======
Net income per share - diluted $ 0.30 $ 0.20
======= =======
Shares used in computing net income per share - basic 20,853 20,038
======= =======
Shares used in computing net income per share - diluted 21,563 20,948
======= =======
See accompanying notes to consolidated financial statements.
</TABLE>
4
<PAGE>
<TABLE>
SAWTEK INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
<CAPTION>
Three Months Ended
December 31,
------------------------
1997 1996
---- ----
(in thousands)
<S> <C> <C>
Operating activities:
Net income $ 6,440 $ 4,263
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 1,618 819
Deferred income taxes 1,391 1,120
Changes in operating assets and liabilities:
(Increase) decrease in assets:
Accounts receivable 1,936 200
Inventories (3,765) 562
Other current assets (201) (5)
Increase (decrease) in liabilities:
Accounts payable 1,307 1,350
Accrued liabilities (1,555) (978)
Income taxes payable 1,942 1,023
------- -------
Net cash provided by operating activities 9,113 8,354
Investing activities:
Purchase of property, plant and equipment, net (3,813) (4,754)
Short-term investments (3,005) 0
------- -------
Net cash used in investing activities (6,818) (4,754)
Financing activities:
Principal payments on long-term debt (313) (105)
Net proceeds from sale of common stock 270 198
------- -------
Net cash provided by financing activities (43) 93
------- -------
Increase in cash and cash equivalents 2,252 3,693
Cash and cash equivalents at beginning of period 42,300 27,743
------- -------
Cash and cash equivalents at end of period 44,552 31,436
Short-term investments 18,769 0
------- -------
Cash, cash equivalents and short-term investments $63,321 $31,436
======= =======
Interest paid $ 65 $ 56
Income taxes paid $ 450 $ 475
See accompanying notes to consolidated financial statements.
</TABLE>
5
<PAGE>
SAWTEK INC.
Notes to Consolidated Financial Statements - December 31, 1997 (unaudited)
1. Basis of Presentation
The accompanying unaudited consolidated financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information as set forth in the requirements of Article 10 of
Regulation S-X. Accordingly, they do not contain all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, the accompanying unaudited
consolidated financial statements reflect all adjustments (consisting only of
normal recurring adjustments) considered necessary for a fair presentation of
the Company's financial condition as of December 31, 1997, and the results of
its operations, and its cash flows for the three months ended December 31, 1997
and 1996. These financial statements should be read in conjunction with the
Company's audited financial statements as of September 30, 1997, including the
notes thereto, and the other information set forth therein included in the
Company's most recent annual report on Form 10-K for the year ended September
30, 1997 (File No. 000-28276), which was filed with the Securities and Exchange
Commission (the "SEC") on November 12, 1997. The following discussion may
contain forward looking statements which are subject to the risk factors set
forth in "Risks and Uncertainties" in Item 2 of this Form 10-Q.
The Company maintains its records on a fiscal year ending on September 30 of
each year and all references to a year refer to the year ending on that date.
The Company's first, second and third quarters end on the Sunday closest to the
last day of the last month of such quarter, which was January 4, 1998, for the
first quarter of 1998. However, for convenience, the financial statements are
dated as of December 31, 1997.
Operating results for the three months ended December 31, 1997 are not
necessarily indicative of the operating results that may be expected for the
year ending September 30, 1998.
2. Earnings Per Share
Earnings per share ("EPS") is computed based on the weighted average number of
common shares, common stock options (using the treasury stock method) and all
ESOP shares outstanding in accordance with the requirements of FASB Statement
No. 128 "Earnings Per Share."
6
<PAGE>
The following table sets forth the computation of basic and diluted earnings per
share:
<TABLE>
<CAPTION>
Three Months Ended
December 31,
-------------------------
1997 1996
---- ----
(in thousands, except per share data)
<S> <C> <C>
Numerator:
- ---------
Net income available to common stockholders $ 6,440 $ 4,263
======= =======
Denominator:
- -----------
Denominator for basic earnings per share:
Weighted average shares 20,853 20,038
Effect of dilutive securities:
Employee stock options 710 910
------- -------
Denominator for diluted earnings per share:
Adjusted weighted average shares and
assumed conversions 21,563 20,948
======= =======
Basic earnings per share $ 0.31 $ 0.21
======= =======
Diluted earnings per share $ 0.30 $ 0.20
======= =======
</TABLE>
Options to purchase 6,500 shares at prices ranging from $33.25 to $35.00 per
share were outstanding during the quarter but were not included in the
computation of diluted earnings per share because the option exercise price was
greater than the average market price of the common shares and, therefore, the
effect would be antidilutive.
3. Inventories
Inventories are composed of the following:
<TABLE>
<CAPTION>
December 31, 1997 September 30,1997
----------------- -----------------
(in thousands)
<S> <C> <C>
Raw material $ 5,208 $ 2,911
Work in process 3,611 2,246
Finished goods 1,823 1,720
------- -------
Total $10,642 $ 6,877
======= =======
</TABLE>
7
<PAGE>
4. Property, Plant and Equipment
Property, plant and equipment is composed of the following:
<TABLE>
<CAPTION>
December 31, 1997 September 30, 1997
----------------- ------------------
(in thousands)
<S> <C> <C>
Land and improvements $ 671 $ 671
Buildings 16,537 14,076
Production and test equipment 33,071 29,490
Computer equipment 3,095 2,977
Furniture and fixtures 1,863 1,833
Construction in progress 3,130 5,507
------- -------
58,367 54,554
Less accumulated depreciation 15,349 13,753
------- -------
Total $43,018 $40,801
======= =======
</TABLE>
5. Shareholders' Equity
The consolidated changes in shareholders' equity for the three months ended
December 31, 1997 are as follows:
<TABLE>
(in thousands)
<CAPTION>
Unearned
Common Stock Capital ESOP Retained
Shares Amount Surplus Compensation Earnings
------ ------ ------- ------------ --------
<S> <C> <C> <C> <C> <C>
Balance at September 30, 1997 20,762 $ 10 $68,880 $(1,171) $30,741
Net income 6,440
Compensatory stock option tax benefit 1,228
Sale of common stock 177 1 270
------ ---- ------- ------- -------
Balance at December 31, 1997 20,939 $ 11 $70,378 $(1,171) $37,181
====== ==== ======= ======= =======
</TABLE>
6. Subsequent Events
On January 7, 1998, the Company announced that it has entered into a letter of
intent whereby Microsensor Systems, Inc., a privately-held firm which is engaged
in the research, design, and manufacturing of chemical sensor instruments using
polymer-coated surface acoustic wave (SAW) devices and other technologies will
merge into Sawtek. The contemplated merger is proposed as an exchange of common
stock to be accounted for as a pooling-of-interests and is subject to entering
into a definitive agreement and satisfaction of customary closing conditions.
8
<PAGE>
Item 2. Management's discussion and analysis of financial condition and results
of operations
The following discussion and analysis should be read in conjunction with the
Company's Consolidated Financial Statements and Notes thereto included elsewhere
in this Form 10-Q. Except for the historical information contained herein, the
discussion in this Form 10-Q contains certain forward-looking statements that
involve risks and uncertainties, such as statements of the Company's plans,
objectives, expectations and intentions. The cautionary statements made herein
should be read as being applicable to all related forward-looking statements
wherever they appear. The Company's actual results could differ materially from
those discussed here. Factors that could cause or contribute to such differences
include those discussed in "Risks and Uncertainties," as well as those discussed
elsewhere herein.
Overview
- --------
The Company was incorporated in 1979 to design, develop, manufacture and market
a broad range of electronic components based on surface acoustic wave ("SAW")
technology used in telecommunications, data communications, video transmission,
military and space systems and other markets. The Company's focus has been on
the high-end performance spectrum of the market, and its primary products are
SAW bandpass filters, resonators, delay lines, oscillators and SAW-based
sub-systems. Initially, the Company's products were concentrated in the military
and space systems market. The Company has since shifted its attention to
commercial markets which account for 91% of net sales in the first quarter of
1998. The Company has also experienced significant growth in its international
markets over the last five years, with international sales accounting for
approximately 46% of net sales for the first quarter of 1998. Sales to Korean
customers were approximately 22% of net sales for the first quarter of 1998 (up
from 16% for all of fiscal year 1997), while European customers accounted for
19% of net sales.
The Company derives revenue from high-volume commercial production components,
military/industrial production components and engineering services and products.
Non-recurring engineering ("NRE") revenue is included in engineering services
and products and relates to the design and development of a custom device and
delivery of one or more prototype parts. In all cases, revenue is recognized
when the parts or services have been completed and units, including prototypes,
have been shipped.
Net sales increased 31% from the first three months of 1997 to the first three
months of 1998. The growth in net sales is mainly attributable to growth in the
wireless communications market to which the Company supplies SAW bandpass
filters for cellular and PCS telephone base stations and for handheld subscriber
telephones. The Company has a broad product line of SAW filters and other
components with average selling prices generally in the range of $3 to $300 for
many high performance wireless applications.
For the three months ended December 31, 1997, net sales to the Company's top ten
customers accounted for approximately 83% of net sales with the top five
customers accounting for 68%. The Company expects that sales of its products to
a limited number of customers will account for a high percentage of its net
sales in the foreseeable future.
9
<PAGE>
Management does not believe that inflation has had a material impact on
operating costs and earnings of the Company.
Results of Operations
- ---------------------
The following table sets forth, for the periods indicated, the percentage
relationship of certain items from the Company's statement of operations to
total net sales:
<TABLE>
<CAPTION>
Three Months Ended
December 31,
--------------------------
1997 1996
---- ----
<S> <C> <C>
Net sales 100.0% 100.0%
Cost of sales 45.1 46.9
----- -----
Gross profit 54.9 53.1
Operating expenses:
Selling expenses 7.0 6.7
General & administrative expenses 5.2 6.1
ESOP compensation expense 0.2 1.1
Research & development expenses 3.6 3.7
----- -----
Total operating expenses 16.0 17.6
----- -----
Operating income 38.9 35.5
Interest expense .2 .2
Other income (3.7) (1.9)
----- -----
Income before income taxes 42.4 37.2
Income taxes 15.7 14.2
----- -----
Net income 26.7% 23.0%
===== =====
</TABLE>
Comparison of Three Months Ended December 31, 1996 and 1997
- -----------------------------------------------------------
Net Sales. Net sales increased 31% from $18.5 million in the quarter ended
December 31, 1996 to $24.2 million in the quarter ended December 31, 1997. The
increase for the period was a result of increased product shipments to the
wireless communications market, specifically sales of high volume filters for
basestation applications and for CDMA (Code Division Multiple Access) subscriber
handsets. International sales represented 46% of total revenue in the current
quarter, up from 44% for all of fiscal year 1997. Shipments of GSM (Global
System for Mobile communication) base station filters, principally to Europe,
remained constant compared to one year ago; however, the Company has experienced
an increase in shipments of CDMA base station filters to the Korean market,
which continues to grow despite the recent financial market turmoil in Asia. Net
sales into the telecommunications market accounted for 77% of revenue for the
quarter, up from 72% for all of FY97. Sales of military and space systems
accounted for 9% of sales in the quarter versus 14% in the first quarter of
FY97. Base station filters accounted for 47% of total revenue and filters for
subscriber handsets accounted for 29% of total revenue for the quarter.
10
<PAGE>
The Company's revenue from international sales, specifically from Korean
customers, could be adversely impacted by the recent financial market turmoil in
Asia which could result in a reduction or cancellation of orders or limit the
availability of credit to these customers.
Gross Margin. Gross margin for the quarter increased from 53.1% a year ago to
54.9%. The increased gross margin for the quarter, compared to the same quarter
last year, is a result of the following factors: i) continued favorable pricing
on current generation products that will be replaced with new generation
products that will have lower prices and margins, ii) production of filters in
our new Costa Rican operation that has lower overall costs, iii) better overall
yields and lastly, iv) economies of scale associated with the higher production
volumes.
There is a trend toward lower average selling prices for base station filters
due to competitive pricing pressures and next-generation designs for both
"macro" and emerging "micro" base stations which use less expensive, lower
performance SAW filters. The Company is uncertain whether an increase in the
number of base station filters sold in the future will offset the decrease in
the average selling price for these filters so as to maintain or increase
revenues from the sale of base station filters. The Company believes that its
sales of SAW filters for subscriber handsets in the CDMA market will increase
significantly in fiscal year 1998. Handset filters typically produce lower gross
margins than the gross margins produced by base station filters.
Selling Expenses. Selling expenses increased in the first quarter of 1998
compared to the same period in 1997, but only slightly as a percentage of net
sales from the corresponding period. The increase is a result of higher net
sales of products which generate associated commission expense paid to
independent sales representatives, an increase in the Company's internal sales
and marketing staff, and an increase in the allowance for doubtful accounts
associated with the Company's increased sales to Korean customers for the past
quarter.
General and Administrative Expenses. General and administrative expenses
increased slightly for the quarter ended December 31, 1997 from the year-ago
quarter. However, these costs decreased as a percentage of sales from 6.1% for
the first quarter of 1997 to 5.2% in the first quarter of 1998 as the Company
was able to increase its sales without incurring significant additional
administrative expenses.
ESOP Compensation Expense. For the first quarter of 1998, the Company recorded a
charge of $53,000 for ESOP compensation compared to $196,000 for the same period
in fiscal 1997. The lower charge for the quarter ended December 31, 1997 is due
to the Company restructuring its ESOP loan in the fourth quarter of FY97
resulting in a longer amortization period and a lower per quarter charge.
Research and Development Expenses. Research and development expenses increased
$187,000 in the quarter ended December 31, 1997 compared to the quarter ended
December 31, 1996. These expenses increased due to additional personnel and
expanded research and development efforts, but increased at a slower rate than
the sales increase. The Company anticipates that research and development
expenses will continue to increase in total dollars as personnel and programs
are added. A significant portion of the Company's development activities is
conducted in connection with the design and development of custom devices, which
is paid for by customers and classified as NRE items. The revenue generated from
these items is included in net sales and the cost is reflected in cost of sales
rather than in research and development expenses.
11
<PAGE>
Other Income and Expense. Other income and expense primarily represents interest
income and non-operating expenses. Other income increased due to interest earned
on the Company's cash balances.
Income Tax Expense. The provision for income taxes as a percentage of income
before income taxes was 37% for the first three months of 1998 compared to 38%
for the first three months of 1997. The slightly lower effective tax rate
relates to profits earned in the Costa Rican subsidiary that are permanently
exempt from Florida state taxes. The Company expects that its effective tax rate
will remain at approximately 36% to 38% during 1998.
Risks and Uncertainties
- -----------------------
Forward-looking statements in this Form 10-Q are made pursuant to the Safe
Harbor provisions of the Private Securities Litigation Act of 1995. Investors
are cautioned that such forward-looking statements involve risks and
uncertainties, such as statements of the Company's plans, objectives,
expectations and intentions. The cautionary statements made should be read as
being applicable to all related forward-looking statements wherever they appear
in this report. The Company's actual results could differ materially from those
discussed. Factors that could cause or contribute to such differences include
the following: the Company's dependence on continuing demand for wireless
communications services and CDMA technology, particularly CDMA handset units;
economic turmoil in Korea and other Asia-Pacific countries (as experienced in
the last two months) or other geographic areas of the world; dependence on a
limited number of customers, which are expected to continue to account for a
high percentage of the Company's future net sales; fluctuations in the Company's
quarterly results and backlog which may be caused by such factors as product mix
changes, price competition, availability of manufacturing capacity, and customer
order cancellation or rescheduling; the Company's dependence on its timely
development of new or improved SAW products (such as SAW chemical sensors) to
meet changing market needs; and the risk of competing technologies which could
replace or reduce the use of SAW technology for certain applications, as well as
other risks as discussed in Sawtek's SEC reports, including Form 10-K filed for
fiscal year 1997.
The Company is aware of the issues associated with the programming code in
existing computer systems as the year 2000 approaches. Systems that do not
correct such problems could generate erroneous data or cause system failures. In
July 1996, the Emerging Issues Task Force of the Financial Accounting Standards
Board reached a consensus on Issue 96-14, Accounting for the Costs Associated
with Modifying Computer Software for the Year 2000, which provides that costs
associated with modifying computer software for the year 2000 be expensed as
incurred. Management believes that the vast majority of its computer systems are
year 2000 compliant, and the Company continues to utilize both internal and
external resources to identify, correct or reprogram, and test its systems for
the year 2000 compliance as necessary, and does not anticipate total compliance
expense to be material.
12
<PAGE>
Liquidity and Capital Resources
- -------------------------------
The Company has financed its operations to date through cash generated from
operations, bank borrowings, lease financing, the private sale of securities,
its May 1, 1996 initial public offering, and the July 1, 1997 follow-on public
offering. The Company requires capital principally for equipment, expansion of
its primary facility, financing of accounts receivable and inventory, investment
in product development activities and new technologies, its operations in Costa
Rica, and potential acquisitions of new technologies or compatible companies.
For the three months ended December 31, 1997, the Company generated net cash
from operating activities of $9.1 million, consisting primarily of net income of
$6.4 million, $1.6 million of depreciation and amortization, and $1.4 million in
deferred taxes.
The Company has a revolving credit agreement totaling $15.0 million from
SunTrust Bank, Central Florida, N.A. available through June 30, 1999. There were
no balances outstanding on this credit line at December 31, 1997.
The Company made capital expenditures of approximately $3.8 million during the
quarter ended December 31, 1997. The Company intends to spend approximately $12
million to $14 million in 1998 on capital equipment and facilities.
The Company believes that its present cash position, together with its credit
facility and funds expected to be generated from operations, will be sufficient
to meet its projected working capital and other cash requirements through the
next 12 months. Thereafter, the Company may require additional equity or debt
financing to address its working capital needs or to provide funding for capital
expenditures. There can be no assurance that events in the future will not
require the Company to seek additional capital sooner or, if so required, that
it will be available on terms acceptable to the Company, if at all.
13
<PAGE>
PART II - OTHER INFORMATION
- ---------------------------
Item 1. Legal Proceedings. The Company is not subject to any legal proceedings
that, if adversely determined, would cause a material adverse effect on
the Company's financial condition, business or results of operations.
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) Exhibit 27 - Financial Data Schedule.
(b) Reports on Form 8-K.
The Company did not file any reports on Form 8-K during the
three-month period ending December 31, 1997.
14
<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.
Dated: January 20, 1998
SAWTEK INC.
(Registrant)
/s/ Steven P. Miller
Steven P. Miller
Chairman & Chief Executive Officer
/s/ Raymond A. Link
Raymond A. Link
Vice President-Finance, Chief Financial Officer
(Principal Financial Officer)
15
<PAGE>
EXHIBIT INDEX
- -------------
27 Financial Data Schedule
16
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<CIK> 0001009675
<NAME> Sawtek Inc.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> JAN-04-1998
<CASH> 63,321
<SECURITIES> 0
<RECEIVABLES> 11,111
<ALLOWANCES> 1,152
<INVENTORY> 10,642
<CURRENT-ASSETS> 85,890
<PP&E> 58,367
<DEPRECIATION> 15,349
<TOTAL-ASSETS> 129,009
<CURRENT-LIABILITIES> 10,132
<BONDS> 2,521
0
0
<COMMON> 11
<OTHER-SE> 106,388
<TOTAL-LIABILITY-AND-EQUITY> 129,009
<SALES> 24,157
<TOTAL-REVENUES> 24,157
<CGS> 10,901
<TOTAL-COSTS> 10,901
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 365
<INTEREST-EXPENSE> 57
<INCOME-PRETAX> 10,222
<INCOME-TAX> 3,782
<INCOME-CONTINUING> 6,440
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,440
<EPS-PRIMARY> .31
<EPS-DILUTED> .30
</TABLE>
