SECURITIES AND EXCHANGE COMMISSION
Washington DC 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
GENTIA SOFTWARE PLC
Tuition House
St George's Road
Wimbledon
London SW19 4EU
United Kingdom
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
----------------- ------------------
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
-------------------- ---------------------
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
82- N.A.
Page 1 of 14 Pages
Exhibit Index Appears on Page 10
<PAGE>
GENTIA SOFTWARE PLC
Form 6-K
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
<S> <C>
Financial Information:
Condensed Consolidated Balance Sheets as of March 31, 1999 (Unaudited)
and December 31, 1998 (Unaudited) 3
Condensed Consolidated Statements of Operations for the three months
ended March 31, 1999 and 1998 (Unaudited) 4
Condensed Consolidated Statements of Cash Flows for the three months
ended March 31, 1999 and 1998 (Unaudited) 5
Notes to Condensed Consolidated Financial Statements (Unaudited) 6
Management's Discussion and Analysis of Financial Condition and Results of Operations. 7
Exhibit Index 10
Exhibit A. First Quarter Press Release 11
</TABLE>
2
<PAGE>
GENTIA SOFTWARE PLC
Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
March 31 December 31
1999 1998
----------------- ----------------
(unaudited) (unaudited)
(in thousands)
<S> <C> <C>
US$ US$
Assets
Current assets:
Cash and cash equivalents.................................... $2,396 $5,314
Accounts receivable, net of allowances $ 3,550
(Dec 31, 1998 - $3,801).................................. 9,620 10,565
Prepaid expenses and other current assets.................... 1,349 1,363
Tax recoverable.............................................. 106 212
---------- ------------
Total current assets.................................................... $13,471 $17,454
Property and equipment, net......................................... 2,100 2,192
Goodwill on acquisition, net of amortization of $1,988
(Dec 31, 1998 - $1,789)......................................... 6,702 6,902
Deferred taxes...................................................... -- --
---------- ------------
Total assets............................................................ $22,273 $26,548
========== ============
Liabilities and shareholders' equity
Current liabilities:
Current portion of lease obligations......................... $99 $78
Accounts payable............................................. 2,025 2,203
Accrued liabilities.......................................... 3,178 3,778
Deferred revenues............................................ 5,076 4,754
Other accounts payable....................................... 1,530 1,766
---------- ------------
Total current liabilities............................................... $11,908 $12,579
Non current liabilities:
Deferred taxation............................................ -- --
Long-term portion of lease obligations....................... 166 59
---------- ------------
Total Liabilities $12,074 $12,638
Shareholders' equity:
Ordinary shares.............................................. 2,445 2,445
Additional paid-in capital................................... 28,881 28,881
Retained (deficit)........................................... (20,526) (16,837)
Cumulative translation adjustment............................ (601) (579)
---------- ------------
Total shareholders' equity.............................................. $10,199 $13,910
---------- ------------
Total liabilities and shareholders' equity.............................. $22,273 $26,548
========== ============
</TABLE>
See accompanying notes
3
<PAGE>
GENTIA SOFTWARE PLC
Condensed Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
-----------------------------------------------------
March 31, March 31,
1999 1998
-----------------------------------------------------
(in thousands, except per share amounts)
(unaudited) (unaudited)
<S> <C> <C>
US$ US$
Revenues:
License.................................................. $2,294 $2,878
Services and other....................................... 3,657 3,039
---------- ------------
5,951 5,917
Cost of revenues:
License.................................................. 132 75
Services and other....................................... 2,615 1,782
---------- ------------
2,747 1,857
Gross profit.................................................. 3,204 4,060
Operating expenses:
Sales and marketing...................................... 3,658 4,115
Research and development................................. 1,589 1,639
General and administrative............................... 988 1,082
Restructuring costs...................................... 500 --
Goodwill amortization.................................... 199 102
---------- ------------
Total operating expenses................. 6,934 6,938
Loss from operations.......................................... (3,730) (2,878)
Other income.................................................. 41 246
---------- ------------
Loss before provision for income taxes........................ (3,689) (2,632)
Provision for income taxes.................................... -- --
---------- ------------
Net loss...................................................... ($3,689) ($2,632)
========== ============
Basic loss per share.......................................... ($0.36) ($0.27)
Diluted loss per share........................................ ($0.36) ($0.27)
Shares used to compute basic EPS......................... 10,178 9,637
Shares used to compute diluted EPS....................... 10,178 9,637
</TABLE>
See accompanying notes
4
<PAGE>
GENTIA SOFTWARE PLC
Condensed Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
---------------------- --- ---------------------
March 31, March 31,
1999 1998
---------------------- ---------------------
(in thousands)
<S> <C> <C>
US$ US$
Cash flows from operating activities
Net (loss)....................................................... $(3,689) $(2,632)
Adjustments to reconcile net (loss) to net cash (used in) operating
activities:
Depreciation............................................ 286 241
Goodwill amortization................................... 199 102
Changes in operating assets and liabilities:
Accounts receivable................................. 1,196 (1,534)
Provision for bad debts............................. (251) (90)
Prepaid expenses and other receivables.............. 15 431
Accounts payable.................................... (178) 727
Accrued liabilities and other expenses.............. (730) 33
Deferred revenues................................... 322 819
----------------- ----------------
Net cash (used in) operating activities................................... (2,830) (1,903)
----------------- ----------------
Cash flows from investing activities:
Costs of acquisition.................................... 0 (20)
Purchases of assets..................................... (194) (468)
----------------- ----------------
Net cash used in investing activities..................................... (194) (488)
----------------- ----------------
Cash flows from financing activities:
Net proceeds on shares issued........................... 0 190
Generation (repayment) of capital lease obligations..... 128 (23)
----------------- ----------------
Net cash provided by financing activities................................. 128 167
----------------- ----------------
Effect of exchange rate changes on cash.......................... (22) (56)
----------------- ----------------
Net (decrease) in cash........................................... (2,918) (2,280)
Cash at beginning of period...................................... 5,314 20,332
----------------- ----------------
Cash at end of period............................................ $2,396 $18,052
================= ================
</TABLE>
See accompanying notes
5
<PAGE>
GENTIA SOFTWARE PLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business
- --------
Gentia Software plc (the "Company") is incorporated in England and Wales. The
Company is the leading supplier of analytical applications that enable clients
to maximize their competitive position through enterprise-wide deployment of
strategic management and predictive decision making solutions.
Basis of Presentation
- ---------------------
The consolidated financial statements are stated in United States dollars and
are prepared under United States generally accepted accounting principles.
Interim Financial Information
- -----------------------------
The financial information at March 31, 1999 and the results of operations for
the three months ended March 31, 1999, and 1998 are unaudited but include all
adjustments which the Company considers necessary for a fair presentation of the
financial position at such date and the operating results and cash flows for
those periods. Results for the three month period ended March 31, 1999 are not
necessarily indicative of results that may be expected for the entire year.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with United States generally accepted
accounting principles have been condensed or omitted pursuant to the Securities
and Exchange Commission Rules and Regulations. In accordance with SOP 98-1, the
Company has capitalized computer software obtained for internal use.
Principles of Consolidation
- ---------------------------
The accompanying financial statements consolidate the accounts of the Company
and its wholly and majority owned subsidiaries. All significant intercompany
accounts and transactions have been eliminated.
Foreign Exchange
- ----------------
The consolidated balance sheets of the Company and its foreign subsidiaries are
translated from their respective functional currencies to United States dollars
at period-end exchange rates and the statements of operations and cash flows at
average exchange rates for the relevant periods. Gains and losses resulting from
translation are accumulated as a separate component of shareholders' equity. Net
gains and losses resulting from foreign exchange transactions, which are not
material in any of the reporting periods, are included in the consolidated
statement of operations.
Per Share Information
- ---------------------
Net income per share information is computed based on the weighted average
number of shares outstanding, as described in FAS 128.
2 LITIGATION
The Company is involved in one material legal action relating to patent issues
in the United States. While the outcome of this matter is currently not
determinable, the Company is vigorously pursuing its defence and is confident
that it will prevail in the litigation.
6
<PAGE>
GENTIA SOFTWARE PLC
Management's Discussion and Analysis of Financial Condition and
Results of Operations for the three months ended March 31, 1999 and 1998
Three months ended March 31, 1999 and three months ended March 31, 1998.
- ------------------------------------------------------------------------
Revenues
- --------
Revenues were $6.0 million in the 3 months ended March 31, 1999, an increase of
approximately 1.7% compared to revenues of $5.9 million for the 3 months ended
March 31, 1998. License revenues were $ 2.3 million in the 3 months ended March
31, 1999, a decrease of 20.7% compared to license revenues of $2.9 million for
the 3 months ended March 31, 1998. Services and other revenues were $3.7 million
in the 3 months ended March 31, 1999 an increase of approximately 23.3% compared
to $3.0 million for the 3 months ended March 31, 1998. The overall decrease in
revenues is principally a result of the company's global restructuring program
within world wide sales and the delayed closure of several transactions that
were expected to be signed in the first quarter of 1999.
Gross Profit
- ------------
Gross profit was $3.2 million or 53.8% for the 3 months ended March 31,1999,
compared to $4.1 million or 68.6% for the 3 months ended March 31, 1998. The
decrease in gross margin was principally due to the decline in higher margin
license revenue and the resulting higher proportion of lower margin services and
other revenues in the 3 months ended March 31, 1999. Services and other revenue
comprised 61.4% of total revenues for the three months ended March 31,1999,
compared to 51.4% for the three months ended March 31, 1998.
Sales and Marketing
- -------------------
Sales and marketing costs were $3.7 million in the 3 months ended March 31,
1999, a decrease of 11.1% compared to $4.1 million in the 3 months ended March
31, 1998. The decrease in expenditure reflects the results of the Company's
strategic actions to reduce costs, with the majority of the cost saving
resulting from a reduction in employee costs. The Company expects these expenses
will continue to decrease as a result of the continued actions to reduce
operating costs.
Research and Development
- ------------------------
Research and development costs were $1.6 million in the 3 months ended March 31,
1999, unchanged from the 3 months ended March 31, 1998. It is anticipated that
the Company's second quarter research and development costs will be slightly
lower compared to first quarter levels. Research and development will continue
to focus on building the analytical applications that surround the Scorecard.
The Company's research and development expenditure is predominantly incurred in
pounds sterling.
General and Administrative
- --------------------------
General and administrative costs were $1.0 million in the 3 months ended March
31, 1999, compared to $1.1 million for the 3 months ended March 31, 1998.
Other Income
- ------------
Other income was $41,000 in the 3 months ended March 31, 1999 compared to
$246,000 in the 3 months ended March 31,1998. Other income was primarily
interest income earned on bank deposits. The decrease is due to declining cash
balances on deposit.
7
<PAGE>
Liquidity and Capital Resources
- -------------------------------
At March 31, 1999, the Company had cash and cash equivalents of $2.4 million
compared to $5.3 million at December 31, 1998. In the three months ended March
31, 1999 the Company's operating activities consumed cash of $2.8 million
compared to $1.9 million in the three months ended March 31, 1998.
Accounts receivable at March 31, 1999 were $9.6 million, a decrease of 8.9%
compared to $10.6 million at December 31, 1998 reflecting the lower levels of
license revenue achieved in the first quarter of 1999 of $2.3 million compared
to $4.1 million in quarter four, 1998.
Investing activities consumed $194,000 in the three months ended March 31, 1999
compared to $488,000 in the three months ended March 31, 1998. Investing
activities primarily represent additional leased assets that were put in service
during the quarter.
Financing activities generated $128,000 in the three months ended March 31, 1999
compared to $167,000 in the three months ended March 31, 1998.
This Report contains "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. All statements, other than statements of
historical facts, included in this Report (or incorporated herein by reference)
regarding the Company's financial position and business strategy may constitute
forward-looking statements. Although the Company believes that the expectations
reflected in, and the assumptions underlying, such forward-looking statements
are reasonable, it can give no assurance that such expectations will prove to
have been correct. Important factors that could cause actual results to differ
materially from the Company's expectations are included in the documents filed
by the Company with the Securities and Exchange Commission, including the
matters contained in the caption "Business Factors" in the Company's most recent
Annual Report on Form 20-F. In light of the foregoing, readers of this Report
are cautioned not to place undue reliance on the forward-looking statements
contained or incorporated by reference herein.
The Company's ability to satisfy its cash requirements for the remainder of the
year is dependent on meeting certain projected revenue targets. The Company has,
at times in the past, been unable to meet similar targets. There can be no
assurance that the Company will meet its projected revenue targets, and the
failure of the Company to do so (or to obtain additional sources of financing,
which may not be available on suitable terms to the Company, if at all) will
have a material adverse effect on the Company's business and financial condition
and the value of the Company's American Depositary Shares.
8
<PAGE>
The information contained in Exhibit 1 hereto, consisting of the registrant's
unaudited financial statements for the three months ended March 31, 1999, has
been distributed to its security holders and is furnished to the Commission
pursuant to Rule 13a-16 under the Securities Exchange Act of 1934, as amended
(the "Act"). This report and the information furnished herewith shall not be
deemed to be "filed" for the purposes of Section 18 of the Act or otherwise
subject to the liabilities of that section.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused the Report to be signed on its behalf by the
undersigned, thereunto duly authorised.
GENTIA SOFTWARE plc
By: [Signature of George Sprenkle]
-----------------------------------
George Sprenkle
Chief Financial Officer
Date: April 30, 1998
9
<PAGE>
EXHIBIT INDEX
Page
Exhibit A First Quarter Press Release - (1999) 11
10
<PAGE>
EXHIBIT A
First Quarter Press Release
GENTIA SOFTWARE PLC
Tuition House, St. George's Road
Wimbledon
London SW19 4EU
(Nasdaq: GNTI)
AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
- --------------- ----------------------------------
George Sprenkle For Analyst Info: Julie Creed (312) 640-6724
Chief Financial Officer For General Info: Kelly Lofts (212) 661-8030
44 181 971 4000 For Media Info: Claudine Cornelis (212) 661-8030
For Immediate Release
GENTIA REPORTS FIRST QUARTER RESULTS
------------------------------------
LONDON, April 22, 1999 -- Gentia Software (Nasdaq: GNTI), a leading provider of
analytical applications for enterprise-wide deployment, today reported results
for the first quarter ended March 31, 1999. Revenues for the first quarter of
1999 totalled $6.0 million, compared with $5.9 million for the first quarter of
1998. As previously reported, revenues fell below the Company's original
expectations because several deals that were expected to close during the
quarter were closed during April. The Company also announced that it has
retained Hambrecht & Quist, a full-service investment bank, to assess strategic
alternatives for maximizing shareholder value, including identification of
prospective suitors.
Gentia reported a net loss of $3.7 million, or $0.36 per share,
compared with a net loss of $2.6 million, or $0.27 per share, in the first
quarter of 1998. The net loss for the first quarter of 1999 includes a
previously announced $500,000 severance charge. As a result of re-focusing and
streamlining operations, which eliminated a layer of management and increased
customer-facing activities, Gentia has lowered its break-even point and expects
to realize future benefits as it aggressively reduces operating costs in coming
quarters. The Company expects to take an additional $600,000 severance charge
during the second quarter of 1999, which combined with its previous expense
reduction measures, is expected to lower its operating costs approximately $3
million in 1999 and $4 million in subsequent years.
Paul Rolph, Chairman and Chief Executive Officer of Gentia, said
"Although the timing of several deals was delayed, we are pleased with many
aspects of the quarter. First and foremost, we continue to close deals with
Fortune 1000 companies in a marketplace where competition with Y2K projects for
IT funds is evident. Market awareness of the Balanced Scorecard and analytical
applications is increasing steadily as seen by the interest in our user
conference and the formation of the Gentia Select Partner Program.
"We continue to accelerate the establishment of strategic partnerships
and creation of new products. We recently teamed with Hewlett-Packard Company
(HP) to develop, market and deliver decision-support solutions for the
telecommunications industry. Our solutions will target network operators who
must transition from public-switched-telephone networks (PSTN) to Internet
protocol (IP)-based technologies. Furthermore, K-Wiz, the Data Mining and
Knowledge Discovery technology acquired in the second half of 1998, has been
successfully implemented at the BBC and British Telecom. There are plans to both
OEM this technology and embed it in other Gentia applications during 1999.
"In conjunction with our intensified focus on driving sales, we have
taken a hard line with respect to expense reduction and are committed to
reaching break-even during the second half of the year," concluded Mr. Rolph.
Most Recent Developments
o Closed major deals during the quarter with a major U.S. telecom supplier,
Schipol Airport, Volkswagen, Polestar, and Prudential Insurance, many of
which were in conjunction with our indirect partners; Arthur Andersen,
PricewaterhouseCoopers and Cap Gemini.
11
<PAGE>
o Formed a strategic alliance with Hewlett-Packard to develop, market and
deliver decision-support solutions for the telecommunications industry. By
analyzing SS7-enriched call-detail records (CDRs), the solution has been
proven to help network operators reduce network congestion, improve service
quality, optimize capital investment and maximize service revenue. The
alliance will provide decision-support capabilities that utilize the Gentia
analytical application platform and integrate with the HP acceSS7
business-intelligence solution.
o Teamed with Arthur Andersen to develop and launch Gentia ProfitImpact, a
profitability analysis application that helps organizations maximize
profits through the use of Activity-Based Management (ABM). The application
has been successfully implemented at the leading international bank, Credit
Suisse First Boston, which expects to reduce operational costs and focus on
growing profitable business.
o Developed solutions with Motorola Semiconductor to deliver key business
information to Motorola's executives. Motorola extended their Gentia-based
Employee Information System by combining Gentia's Intelligent Agents and
Motorola's advanced PageWriter 2000 two-way paging product, to provide
Motorola staff with real-time access to critical business information.
o Scheduled the 1999 Gentia Worldwide User Conference for May 6 and 7 in
Orlando, Florida. GartnerGroup, Renaissance Worldwide, Arthur Andersen, Sun
Microsystems, MERANT, American Management Systems (AMS), Grant Thornton,
and META Group are both sponsors and participants at the event.
o Released Version 3.0 of the Renaissance Balanced Scorecard powered by
Gentia. Key enhancements include Template Scorecards, Variable Periodicity,
Milestone Maintenance, Microsoft Excel Integration, Multi-Platform Schema
Support and multi-lingual deployment capability.
o Launched PerformanceImpact, a performance measurement application used for
tracking, measuring, and analyzing key performance indicators (KPIs) across
an organization. Encapsulating the Company's fifteen years of experience in
delivering Executive Information Systems (EIS), Gentia PerformanceImpact
complements the Renaissance Balanced Scorecard by providing a highly
focused performance measurement solution for KPI and performance reporting.
o Formed the Gentia Select Partner Program to build a dedicated channel that
can deliver best-in-class Enterprise Performance Management (EPM)
solutions. New members include PricewaterhouseCoopers, Ernst & Young, Ian
Alliott, Consyllior, Trillium Software, Burke Consortium, and Flexi
International.
About the Company
Gentia Software is the leading supplier of analytical applications that
enable clients to maximize their competitive position through enterprise-wide
deployment of strategy management, performance measurement and operational
analysis solutions. By leveraging the only networked Business Intelligence
solution designed for enterprise-wide deployment, Gentia enables a new class of
analytical applications, such as the Balanced Scorecard, which ensure
information delivery to key decision makers' desktops and browsers throughout an
enterprise. Gentia Software's worldwide client list of more than 500 customers
includes JP Morgan and Company, Volvo, McDonald's Restaurants, Fortis, Swiss
Reinsurance and Sun Microsystems. The Company has headquarters in Boston and
London and operates in more than 20 countries worldwide. For additional
information about Gentia, visit the Company's Web site at www.gentia.com or call
1-888-4GENTIA or 1-781-224-0750. To receive additional information via fax at no
charge, dial 1-800-PRO-INFO and enter code GNTI.
This news release contains statements of a forward-looking nature
relating to the financial performance of Gentia Software. Such statements are
based upon the information available to management at this time, and they
necessarily involve risk because actual results could differ materially from
current expectations. Among the many factors that could cause actual results to
differ from those set forth in the Company's forward-looking statements are
changes in general economic conditions, actions taken by customers or
competitors, and the receipt of more or fewer orders than expected.
(Financial Tables Follow)
12
<PAGE>
GENTIA SOFTWARE PLC
Condensed Consolidated Statement of Operations
<TABLE>
<CAPTION>
Three months ended
-----------------------------------------------------
March 31, March 31,
1999 1998
-----------------------------------------------------
(in thousands, except per share amounts)
(unaudited) (unaudited)
US$ US$
<S> <C> <C>
Revenues:
License.................................................. $2,294 $2,878
Services and other....................................... 3,657 3,039
---------- ----------
5,951 5,917
Cost of revenues:
License.................................................. 132 75
Services and other....................................... 2,615 1,782
---------- ----------
2,747 1,857
Gross profit.................................................. 3,204 4,060
Operating expenses:
Sales and marketing...................................... 3,658 4,115
Research and development................................. 1,589 1,639
General and administrative............................... 988 1,082
Restructuring costs...................................... 500 --
Goodwill amortization.................................... 199 102
---------- ----------
Total operating expenses................. 6,934 6,938
Loss from operations.......................................... (3,730) (2,878)
Other income.................................................. 41 246
---------- ----------
Loss before provision for income taxes........................ (3,689) (2,632)
Provision for income taxes.................................... -- --
---------- ----------
Net loss...................................................... ($3,689) ($2,632)
========== ==========
Basic loss per share......................................... ($0.36) ($0.27)
Diluted loss per share....................................... ($0.36) ($0.27)
Shares used to compute basic EPS........................ 10,178 9,637
Shares used to compute diluted EPS...................... 10,178 9,637
</TABLE>
13
<PAGE>
GENTIA SOFTWARE PLC
Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
March 31 December 31
1999 1998
----------------- ----------------
(unaudited) (unaudited)
(in thousands)
<S> <C> <C>
US$ US$
Assets
Current assets:
Cash and cash equivalents................................ $2,396 $5,314
Accounts receivable, net of allowances $ 3,550
(Dec 31, 1998 - $3,801).............................. 9,620 10,565
Prepaid expenses and other current assets................ 1,349 1,363
Tax recoverable.......................................... 106 212
--------- ----------
Total current assets................................................ $13,471 $17,454
Property and equipment, net..................................... 2,100 2,192
Goodwill on acquisition, net of amortization of $1,988
(Dec 31, 1998 - $1,789)..................................... 6,562 6,902
Deferred taxes.................................................. -- --
--------- ----------
Total assets........................................................ $22,133 $26,548
========= ==========
Liabilities and shareholders' equity
Current liabilities:
Current portion of lease obligations..................... $99 $78
Accounts payable......................................... 2,025 2,203
Accrued liabilities...................................... 3,178 3,778
Deferred revenues........................................ 5,076 4,754
Other accounts payable................................... 1,530 1,766
--------- ----------
Total current liabilities........................................... $11,908 $12,579
Non current liabilities:
Deferred taxation........................................ -- --
Long-term portion of lease obligations................... 166 59
--------- ----------
Total Liabilities $12,074 $12,638
Shareholders' equity:
Ordinary shares.......................................... 2,445 2,445
Additional paid-in capital............................... 28,881 28,881
Retained (deficit)....................................... (20,526) (16,837)
Cumulative translation adjustment........................ (741) (579)
--------- ----------
Total shareholders' equity.......................................... $10,059 $13,910
--------- ----------
Total liabilities and shareholders' equity.......................... $22,133 $26,548
========= ==========
</TABLE>
###
14
