<PAGE>
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: February 29, 2000
-----------------
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: 0-21367
-------
DATA TRANSLATION, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
Delaware 04-3332230
- -------------------------------------------- ------------------------------------------------
(State or other jurisdiction of organization (I.R.S. Employer Identification Number)
or incorporation)
</TABLE>
100 Locke Drive
Marlboro, Massachusetts
--------------------------------------------------------------
(Address of principal executive offices)
01752
--------------------------------------------------------------
(Zip code)
(508) 481-3700
--------------------------------------------------------------
(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 ___________
-----------
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Common Stock, Outstanding at March 31, 2000
$.01 Par Value 2,193,122 shares
<PAGE>
Page 2 of 14
DATA TRANSLATION, INC. AND SUBSIDIARIES
INDEX
-----
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
Part I - Financial Information:
Consolidated Balance Sheets as of February 29, 2000 and
November 30, 1999.......................................................................................... 3
Consolidated Statements of Operations for the Three Months Ended
February 29, 2000 and February 28, 1999.................................................................... 4
Consolidated Statements of Cash Flows for the Three Months Ended
February 29, 2000 and February 28, 1999.................................................................... 5
Notes to Consolidated Financial Statements................................................................... 6
Management's Discussion and Analysis of
Financial Condition and Results of Operations.............................................................. 10
Part II - Other Information.................................................................................... 13
Signatures..................................................................................................... 14
</TABLE>
<PAGE>
Page 3 of 14
PART I. FINANCIAL INFORMATION
DATA TRANSLATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
February 29, November 30,
2000 1999
------------- --------------
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 3,562,000 $ 3,989,000
Marketable securities 109,000 109,000
Accounts receivable, net of reserves of
$284,000 and $289,000 in 2000
and 1999, respectively 1,872,000 2,035,000
Inventories 1,325,000 1,294,000
Prepaid expenses 544,000 357,000
---------------- -----------------
Total current assets 7,412,000 7,784,000
Property and equipment, net 1,161,000 1,243,000
Other assets - net 72,000 22,000
---------------- -----------------
Total Assets $ 8,645,000 $ 9,049,000
================ =================
Current Liabilities:
Accounts payable $ 681,000 $ 646,000
Accrued expenses 1,606,000 2,150,000
---------------- -----------------
Total current liabilities 2,287,000 2,796,000
Deferred income taxes 3,000 3,000
Stockholders' Investment:
Preferred stock, $.01 par value, -- --
Authorized - 5,000,000 shares, none issued
Common stock, $.01 par value,
Authorized - 30,000,000 shares,
2,207,159 and 2,175,780 shares issued in 2000 23,000 22,000
and 1999, respectively
Treasury stock, at cost, (43,000) (43,000)
15,000 common shares 12,978,000 12,891,000
Capital in excess of par value (6,545,000) (6,569,000)
Accumulated deficit (58,000) (51,000)
Cumulative translation adjustment ---------------- -----------------
Total stockholders' investment 6,355,000 6,250,000
---------------- -----------------
Total Liabilities and Stockholders' Investment $ 8,645,000 $ 9,049,000
================ =================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
Page 4 of 14
DATA TRANSLATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended
February 29, February 28,
2000 1999
----------------- -----------------
<S> <C> <C>
Net sales $ 3,902,000 $ 3,857,000
Cost of sales 1,698,000 1,671,000
----------------- -----------------
Gross profit 2,204,000 2,186,000
Research and development expenses 637,000 611,000
Selling and marketing expenses 1,089,000 1,002,000
General and administrative expenses 479,000 499,000
----------------- -----------------
Income (loss) from operations (1,000) 74,000
Interest income 25,000 28,000
----------------- -----------------
Net income $ 24,000 $ 102,000
================= =================
Basic and diluted income per share $ 0.01 $ 0.05
================= =================
Basic weighted average number
of common shares outstanding 2,184,000 2,104,000
================= =================
Diluted weighted average number
of common shares outstanding 2,440,000 2,105,000
================= =================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
Page 5 of 14
DATA TRANSLATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
February 29, February 28,
2000 1999
---------------- --------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 24,000 $ 102,000
Adjustments to reconcile net income to
net cash (used in) provided by operating activities-
Depreciation and amortization 213,000 171,000
Reserve for doubtful accounts (5,000) 6,000
Change in assets and liabilities-
Accounts receivable 168,000 (185,000)
Inventories (31,000) 12,000
Prepaid expenses (187,000) (19,000)
Accounts payable 35,000 273,000
Accrued expenses (544,000) 96,000
---------------- --------------
Net cash (used in) provided by operating activities $ (327,000) $ 456,000
---------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment (131,000) (2,000)
Increase in other assets (50,000) 4,000
---------------- --------------
Net cash (used in) provided by investing activities $ (181,000) $ 2,000
---------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from stock plans 88,000 11,000
---------------- --------------
Net cash provided by financing activities $ 88,000 $ 11,000
---------------- --------------
EXCHANGE RATE EFFECTS (7,000) (24,000)
---------------- --------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ (427,000) $ 445,000
CASH AND CASH EQUIVALENTS, beginning of period 3,989,000 2,780,000
---------------- --------------
CASH AND CASH EQUIVALENTS, end of period $ 3,562,000 $ 3,225,000
================ ==============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
Page 6 of 14
DATA TRANSLATION, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
In the opinion of management, these unaudited consolidated financial
statements and disclosures reflect all adjustments necessary for fair
presentation. The results of operations for the interim periods are not
necessarily indicative of the results to be expected for the full year.
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 the rules and regulations of the
Securities and Exchange Commission. These consolidated financial statements
should be read in conjunction with the consolidated financial statements and the
notes thereto included in the latest audited financial statements of Data
Translation, Inc. and its subsidiaries (the "Company"), which are contained in
the Company's 1999 Annual Report on Form 10-K, filed with the Securities and
Exchange Commission on February 28, 2000.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
2. Cash and Cash Equivalents
Cash equivalents are carried at cost, which approximates market value, and
have original maturities of less than three months. Cash equivalents include
money market accounts, U.S. Treasury bills and repurchase agreements with
overnight maturities.
The Company accounts for marketable securities in accordance with Statement
of Financial Accounting Standards ("SFAS") No. 115, Accounting for Certain
Investments in Debt and Equity Securities. Under this standard, the Company is
required to classify all investments in debt and equity securities into one or
more of the following three categories: held-to-maturity, available-for-sale or
trading. The Company's marketable securities mature in April 2000 and are
classified as held-to-maturity as the Company has the positive intent and
ability to hold to maturity. Marketable securities are reported at amortized
cost. The Company's cash equivalents and marketable securities are invested in
highly rated government securities.
3. Segment Reporting and Geographic Information
(a) Segment Reporting
The Company adopted SFAS No. 131. Disclosures About Segments of an
Enterprise and Related Information in the fiscal year ended November 30, 1999.
SFAS No. 131 establishes standards for reporting information regarding operating
segments in annual financial statements and requires selected information for
those segments to be presented in interim financial reports issued to
stockholders. SFAS No. 131 also establishes standards for related disclosures
about products and services and geographic areas. Operating segments are
identified as components of an enterprise about which separate financial
information is available for evaluation by the chief decision maker, or decision
making group, in making decisions how to allocate resources and assess
performance. The Company's chief operating decision-maker, as defined under SFAS
No. 131, is the Chief Executive Officer.
The Company's reportable segments are Core and Broadway(TM). The Core
segment is composed of the imaging and data acquisition business which consists
of plug-in cards and Windows-based software that provide an integrated, high
performance system solution to the general scientific and measurement
marketplace. The Broadway segment is composed of a plug-in video capture card,
Broadway, which is a high-performance video capture and encoding system for
Windows 98 and Windows NT PCs. The accounting policies of the segments are the
same as those described in the summary of significant accounting policies
contained in the Company's 1999 Annual Report on Form 10-K, filed with the
Securities and Exchange Commission on February 28, 2000. The Company evaluates
performance based on revenues and operating margin. Revenues are attributed to
geographic areas based on where the customer is located. Segment information for
the three months ended February 29, 2000 and February 28, 1999 is as follows:
<PAGE>
Page 7 of 14
<TABLE>
<CAPTION>
Core Broadway Total
--------------- ------------- --------------
<S> <C> <C> <C>
For the three months ended February 29, 2000
Revenues from unaffiliated customers............... $3,443,000 $459,000 $3,902,000
Cost of revenue.................................... 1,470,000 228,000 1,698,000
Research and development........................... 552,000 85,000 637,000
---------- -------- ----------
Operating margin (1)............................... $1,421,000 $146,000 $1,567,000
========== ======== ==========
For the three months ended February 28, 1999
Revenues from unaffiliated customers............... $3,263,000 $594,000 $3,857,000
Cost of revenue.................................... 1,414,000 257,000 1,671,000
Research and development........................... 517,000 94,000 611,000
---------- -------- ----------
Operating margin (1)............................... $1,332,000 $243,000 $1,575,000
========== ======== ==========
</TABLE>
(1) The Operating Margins reported reflect only the expenses of the line
of business and do not represent the actual margins for each operating
segment since they do not contain an allocation for selling and
marketing, general and administrative and other corporate expenses
incurred in support of the line of business.
Profit Reconciliation:
<TABLE>
<CAPTION>
February 29, February 28
2000 1999
------------ ------------
<S> <C> <C>
Total operating margin for reportable segments.................... $ 1,567,000 $ 1,575,000
Selling and marketing expenses.................................... (1,089,000) (1,002,000)
General and administrative expenses............................... (479,000) (499,000)
Interest income................................................... 25,000 28,000
------------ ------------
Income (loss) before provision for income
taxes...................................................... $ 24,000 $ 102,000
============ ============
</TABLE>
(b) Geographic Information
<TABLE>
<CAPTION>
United
------
United States Kingdom Germany Eliminations Consolidated
------------- --------- --------- ------------ ------------
<S> <C> <C> <C> <C> <C>
For the three months ended February 29, 2000
Sales to unaffiliated customers (1)................. $ 2,953,000 $ 392,000 $ 557,000 $ -- $3,902,000
Sales or transfers between geographic areas......... 467,000 -- -- (467,000) --
------------ ------------ ------------ ------------ ------------
Total net sales..................................... $ 3,420,000 $ 392,000 $ 557,000 $ (467,000) $ 3,902,000
============ ============ ============ ============ ============
Income (loss) from continuing operations before
provision for income taxes...................... $ 24,000 $ 9,000 $ (8,000) $ (1,000) $ 24,000
============ ============ ============ ============ ============
Long-lived assets................................... $ 1,086,000 $ 74,000 $ 14,000 $ (13,000) $ 1,161,000
============ ============ ============ ============ ============
For the three months ended February 28, 1999
Sales to unaffiliated customers (1)................. $ 2,801,000 $ 352,000 $ 704,000 $ -- $ 3,857,000
Sales or transfers between geographic areas......... 457,000 -- -- (457,000) --
------------ ------------ ------------ ------------ ------------
Total net sales..................................... $ 3,258,000 $ 352,000 $ 704,000 $ (457,000) $ 3,857,000
============ ============ ============ ============ ============
Income (loss) from continuing operations before
provision for income taxes...................... $ 66,000 $ 1,000 $ 63,000 $ (28,000) $ 102,000
============ ============ ============ ============ ===========
Long-lived assets................................... $ 1,121,000 $ 62,000 $ 14,000 $ (13,000) $ 1,184,000
============ ============ ============ ============ ============
</TABLE>
(1) Foreign sales from the United States to unaffiliated customers for the three
months ended February 29, 2000, and February 28, 1999 were approximately
$780,000, and $939,000, respectively.
<PAGE>
Page 8 of 14
4. Inventories
Inventories are stated at the lower of first-in, first-out (FIFO) cost
or market and consist of the following:
<TABLE>
<CAPTION>
February 29, November 30,
2000 1999
---- ----
<S> <C> <C>
Raw material $ 919,000 $ 899,000
Work-in-process 91,000 89,000
Finished goods 315,000 306,000
----------- -----------
$ 1,325,000 $ 1,294,000
=========== ===========
</TABLE>
Work-in-process and finished goods inventories include material, labor
and manufacturing overhead. Management performs periodic reviews of inventory
and disposes of items not required by their manufacturing plan and reduces the
carrying cost of inventory items to the lower of cost or market (with market
value generally defined as the lower of replacement cost or net realizable
value).
5. Stock Buyback Plan
On March 26, 1999, the Company announced that its Board of Directors had
approved the "Stock Buyback Plan", which allowed for the purchase of up to
$1,000,000 of its shares of common stock over the remainder of the calendar
year. As of December 31, 1999, the Company completed the program and acquired
15,000 shares of its common stock, for an aggregate purchase price of $43,000.
6. Net Income Per Common Share
Basic net income per share is computed by dividing net income by the
weighted average number of common shares outstanding during the period. In
determining diluted net income, the dilutive effect of potential common shares,
consisting of outstanding stock options, is determined using the treasury stock
method in accordance with SFAS No. 128.
A reconciliation of basic and diluted weighted average shares
outstanding for the three months ended February 29, 2000 is as follows:
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
February 29, February 28,
2000 1999
---- ----
<S> <C> <C>
Basic weighted average number
of common shares outstanding 2,184,000 2,104,000
Weighted average common
equivalent shares 256,000 1,000
--------------- ---------------
Diluted weighted average
number of common shares
outstanding 2,440,000 2,105,000
=============== ===============
</TABLE>
7. Recent Accounting Pronouncements
In June 1998, the FASB issued SFAS No. 133, Accounting for Derivative
Instruments and Hedging Activities. This statement establishes accounting and
reporting standards for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities. It
requires that an entity recognize all derivatives as either assets or
liabilities in the balance sheet and measure those instruments at fair value.
Pursuant to SFAS No. 137, Accounting for Derivative Instruments and Hedging
Activities-Deferral of the Effective Date of FASB No. 133, SFAS No. 133 is
effective for all fiscal
<PAGE>
Page 9 of 14
quarters of fiscal years beginning after June 15, 2000. SFAS No. 133 is not
expected to have a material impact on the Company's financial statements.
In March 1999, the FASB issued a proposed interpretation, Accounting for
Certain Transactions Involving Stock Compensation-An Interpretation of APB
Opinion No. 25. The proposed interpretation would clarify the application of
Opinion 25 in certain situations, as defined. The proposed interpretation would
be effective upon issuance (expected to be during fiscal 2000) but would cover
certain events that occur after December 15, 1998, but before issuance of the
final interpretation, the effects of applying this proposed interpretation would
be recognized on a prospective basis from the effective date. Accordingly, upon
initial application of the final interpretation, (a) no adjustments would be
made to financial statements for periods before the effective date and (b) no
expense would be recognized for any additional compensation cost measured that
is attributable to periods before the effective date. The Company expects that
the adoption of the Interpretation would affect the accounting for stock options
repriced during the fiscal year 1999.
<PAGE>
Page 10 of 14
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Forward Looking Statements
This Form 10-Q may contain "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, including, without limitation, with
respect to (i) the Company's anticipated liquidity position, (ii) market
conditions and trends in the markets in which the Company participates, (iii)
the Company's ability to meet its current operating requirements, (iv) the
Company's belief that its internal systems will continue to be Year 2000
compliant (v) the impact on the Company's business results of operations, and
financial condition of contingencies over which the Company has no control, and
(vi) certain other statements identified or qualified by words such as "likely",
"will", "suggests", "may", "would", "could", "should", "expects", "anticipates",
"estimates", "plans", "projects", "believes", "is optimistic about", or similar
expressions (and variants of such words of expressions). Investors are cautioned
that forward-looking statements are inherently uncertain. These forward-looking
statements represent the best judgment of the Company as on the date of this
Form 10-Q and the Company cautions readers not to place undue reliance on such
statements. Actual performance and results of operations may differ materially
from those projected or suggested in the forward-looking statements due to
certain risks and uncertainties including, without limitation, risks associated
with fluctuations in the Company's operating results, volume and timing of
orders received, changes in the mix of products sold, competitive pricing
pressure, the Company's ability to meet or renegotiate customer demands, the
Company's ability to anticipate changes in the market, the Company's ability to
finance its operations on terms that are acceptable, acquisition related risks,
the Company's ability to attract and retain qualified personnel including the
Company's management, changes in the global economy, the reliance in
international sales, the dependence on certain key customers, the dependence on
a few key original equipment manufacturers, the Company's ability to manage its
distribution channel, the dependence on single or limited source suppliers, the
Company's ability to realize sufficient margins on sales of its products, the
availability and timing of funding for the Company's current products and the
Company's development of and ability to successfully market future products.
Results of Operations
The following table sets forth certain consolidated statements of
operations data as a percentage of net sales.
<TABLE>
<CAPTION>
Three months ended
Feb. 29, 2000 Feb. 28, 1999
------------- -------------
<S> <C> <C>
Net sales........................................ 100.0 100.0
Gross profit..................................... 56.5 56.7
Research and development expenses................ 16.3 15.8
Selling and marketing expenses................... 27.9 26.1
General and administrative expenses.............. 12.3 12.9
----- -----
Income (loss) from operations.................... 0.0 1.9
Interest income.................................. 0.6 0.7
---- -----
Net income....................................... 0.6% 2.6%
==== =====
</TABLE>
Comparison of First Fiscal Quarter of 2000 to First Fiscal Quarter of 1999:
Net sales for the fiscal quarter ended February 29, 2000 were $3,902,000,
an increase of $45,000, or 1.2%, from the same period a year ago. The increase
was attributable primarily to increased sales of the Company's core products,
which increased approximately 5.5% from the same period a year ago.
Gross profit for the fiscal quarter ended February 29, 2000 was 56.5%,
compared to 56.7% in the comparable quarter of the prior year. The slight
reduction in gross profit from the comparable prior year period was the result
of a less favorable product mix.
<PAGE>
Page 11 of 14
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(CONTINUED)
The loss from operations for the first fiscal quarter of 2000 was $1,000,
compared to income from operations of $74,000 in the comparable quarter of the
prior year. The decrease in income is primarily a result of the Company's
investment within the product development, sales and marketing departments
during the first quarter of FY2000. Operating expenses for the first quarter of
fiscal 2000 were $2,205,000, representing 56.5% of sales, compared to
$2,112,000, representing 54.8% of sales, in the prior year period. Research and
development expenses for the first quarter of fiscal 2000 were $637,000,
representing 16.3% of sales, compared to $611,000, representing 15.8% of sales,
for the comparable period of the prior year. Sales and marketing expenses for
the first quarter of fiscal 2000 were $1,089,000, representing 27.9% of sales,
compared to $1,002,000, representing 26.1% of sales, in the prior year period.
The increase in sales and marketing expenses is primarily a result of an
increase in the size of the Company's sales force and a slight increase in the
Company's marketing programs. General and administrative expenses were $479,000
for the first quarter of fiscal 2000, representing 12.3% of sales, compared to
$499,000, representing 12.9% of sales, for the same period last year. The
slight decrease in general and administrative expenses is primarily the result
of a reduction in staff and professional fees within the general and
administrative departments.
Net income for the fiscal quarter ended February 29, 2000 was $24,000, or
$0.01 per diluted share compared to net income of $102,000, or $0.05 per diluted
share, for the same period in 1999.
Liquidity and Capital Resources
As of February 29, 2000 the Company had cash and cash equivalents totaling
$3,562,000 as compared to cash and cash equivalents of $3,989,000 as of November
30, 1999.
During the fiscal quarter ended February 29, 2000, the Company used
$327,000 for operating activities, resulting from increases in prepaid expenses
and inventory and a decrease in accrued expenses, partially offset by a decrease
in accounts receivable and a slight increase in accounts payable.
The Company used $181,000 for investing activities during the first three
months of fiscal 2000, mainly as a result of acquisitions of property and
equipment.
The Company generated funds from financing activities of $88,000 during the
first three months of fiscal 2000 related to the exercise of stock options and
the issuance of stock under the employee stock purchase plan.
The Company believes that its existing cash, cash equivalents and marketable
securities balances and cash flows expected to be generated from future
operations, will be sufficient to meet its capital requirements at least through
the remainder of the current fiscal year, although the Company may be required,
or could elect, to seek additional funding prior to that time. The Company's
future capital requirements will depend on many factors, including the rate of
revenue growth, the timing and extent of spending to support product development
efforts and expansion of sales and marketing, the timing of introductions of new
products and enhancements to existing products, and market acceptance of the
Company's products. There can be no assurances that additional funding, if
required, will be available on acceptable terms or at all.
<PAGE>
Page 12 of 14
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(CONTINUED)
YEAR 2000 COMPLIANCE DISCLOSURE
Year 2000 Definition
The year 2000 computer problem refers to the potential for system and
processing failures of date-related data as a result of computer-controlled
systems using two digits rather than four to define the applicable year. For
example, computer programs that have time-sensitive software may recognize a
date represented as "00" as the year 1900 rather than the year 2000. This could
result in a system failure or miscalculations causing disruptions of operations,
including among other things, a temporary inability to process transactions,
send invoices, or engage in similar normal business activities.
To date, we have not experienced any year 2000 issues with any of our
internal systems or our products, and we do not expect to experience any in the
future. To date, we have not experienced any year 2000 issues related to any of
our key third party suppliers and customers nor do we expect to experience any
in the future. Costs associated with remediating our internal systems were not
material.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company does not engage in trading market risk sensitive instruments or
purchasing hedging instruments or "other than trading" instruments that are
likely to expose the Company to market risk, whether interest rate, foreign
currency exchange, commodity price or equity price risk. The Company has not
purchased options or entered into swaps or forward or futures contracts.
Additionally, the Company is exposed to market risk related to changes in
foreign currency exchange rates. These exposures may change over time as
business practices evolve and could have a material adverse effect on the
Company's business, financial condition and results of operations.
Historically, the Company's primary foreign currency exchange rate exposure has
been related to the operations of its European subsidiaries.
<PAGE>
Page 13 of 14
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
a) Exhibits
Exhibit
Number Description
------ -----------------------
27 Financial Data Schedule
b) Reports on Form 8-K
No reports on Form 8-K were filed during the period
covered by this report.
<PAGE>
Page 14 of 14
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.
DATA TRANSLATION, INC.
Date: April 14, 2000 By: /s/ Michael A. DiPoto
---------------------------------
Michael A. DiPoto
Vice President Finance
and Chief Financial Officer
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> NOV-30-2000
<PERIOD-START> DEC-01-1999
<PERIOD-END> FEB-29-2000
<CASH> 3,562,000
<SECURITIES> 109,000
<RECEIVABLES> 1,872,000
<ALLOWANCES> 284,000
<INVENTORY> 1,325,000
<CURRENT-ASSETS> 7,412,000
<PP&E> 20,419,000
<DEPRECIATION> 19,258,000
<TOTAL-ASSETS> 8,645,000
<CURRENT-LIABILITIES> 2,287,000
<BONDS> 0
0
0
<COMMON> 23,000
<OTHER-SE> 6,332,000
<TOTAL-LIABILITY-AND-EQUITY> 8,645,000
<SALES> 3,902,000
<TOTAL-REVENUES> 3,902,000
<CGS> 1,698,000
<TOTAL-COSTS> 1,698,000
<OTHER-EXPENSES> 2,205,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 24,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 24,000
<EPS-BASIC> 0.01
<EPS-DILUTED> 0.01
</TABLE>
