FORM 10-QSB
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 MARCH 31, 1997
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: 000-22023
Macrovision Corporation
(Exact name of Registrant as specified in its charter)
Delaware 77-0156161
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1341 Orleans Drive
Sunnyvale, California 94089
(Address of principal executive offices) (Zip code)
(408) 743-8600
(Registrant's telephone number including area code)
Not applicable
(Former name, former address, and former fiscal year, if changed since last
report)
Check whether the issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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 ____ No X *
* Registrant became subject to the filing requirements of the Securities
Exchange Act of 1934 on March 12, 1997, when its Registration Statements on
Forms SB-2 and 8-A were declared effective by the Commission.
<PAGE>
APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Check whether the registrant has filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act
of 1934 subsequent to the distribution of securities under a plan confirmed by a
court.
Yes ____ No ____
(APPLICABLE ONLY TO CORPORATE REGISTRANTS)
State the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Title Outstanding as of March 31, 1997
Common Stock 6,774,549
Transitional Small Business Disclosure Format (check one);
Yes___ No X
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<CAPTION>
MACROVISION CORPORATION
FORM 10-QSB
INDEX
<S> <C> <C>
PART I. FINANCIAL INFORMATION Page
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets
as of March 31, 1997 (unaudited) and December 31, 1996 ....... 4
Condensed Consolidated Statements of Operations (unaudited)
for the Three Month Periods Ended March 31, 1997 and 1996 .... 5
Condensed Consolidated Statements of Cash Flows (unaudited)
for the Three Month Periods Ended March 31, 1997 and 1996..... 6
Notes to Condensed Financial Statements......................... 7
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations .......................................... 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings............................................... 11
Item 2-3 Not Applicable
Item 4 Submission of Matters to a Vote of Security Holders............. 11
Item 5. Other Information .............................................. 12
Item 6. Exhibits and Reports on Form 8-K ............................... 12
Signatures................................................................ 12
</TABLE>
3
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Part I. Financial Information
Item 1. Financial Statements
MACROVISION CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
-------------- ----------------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 4,227 $ 2,409
Short-term investments 9,763 -
Accounts receivable, less allowance for doubtful
accounts of $371 and $267 3,548 3,376
Inventories 716 550
Deferred tax assets 1,310 929
Prepaid expenses and other assets 434 186
-------------- ----------------
Total current assets 19,998 7,450
Property and equipment, net 1,990 2,017
Patents and other intangibles, net 1,132 1,161
Other assets 840 1,325
-------------- ----------------
$ 23,960 $ 11,953
============== ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,306 $ 1,073
Accrued expenses 2,385 2,713
Deferred revenue 1,576 749
Income taxes payable 989 585
Current portion of capital lease 105 105
-------------- ----------------
Total current liabilities 6,361 5,225
Capital lease liability 269 296
Deferred tax liabilities 361 360
-------------- ----------------
TOTAL LIABILITIES 6,991 5,881
Stockholders' equity:
Preferred stock, Series A convertible - 1
Common stock, 6,774,549 and 3,951,759 shares issued
and outstanding at March 31, 1997 and December 31,
1996, respectively 7 4
Additional paid-in capital 20,049 9,530
Stockholders note receivable (157) (157)
Deferred stock compensation (204) (240)
Accumulated deficit (2,533) (2,931)
Accumulated translation adjustment (190) (135)
Unrealized gain (loss) on investments (3) -
-------------- ----------------
TOTAL STOCKHOLDERS' EQUITY 16,969 6,072
-------------- ----------------
$ 23,960 $ 11,953
============== ================
</TABLE>
See the accompanying notes to these condensed consolidated financial statements.
4
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MACROVISION CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
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<CAPTION>
Three Months Ended
March 31, March 31,
1997 1996
----------------- ----------------
<S> <C> <C>
Net revenues $ 4,564 $ 3,583
Costs and expenses:
Cost of revenues 681 594
Research and development 557 642
Selling and marketing 1,548 1,241
General and administrative 879 601
Total costs and expenses 3,665 3,078
----------------- ----------------
Operating income from continuing operations 899 505
Interest and other income (expense), net 24 (120)
----------------- ----------------
Income from continuing operations before income taxes 923 385
Provision for income taxes 369 192
----------------- ----------------
Net income from continuing operations 554 193
Loss from discontinued operations, net of income tax benefit - (195)
----------------- ----------------
Net income (loss) $ 554 $ (2)
================= ================
Computation of earnings (loss) per share:
Net income from continuing operations $ 554 $ 193
Preferred stock dividends (156) (112)
----------------- ----------------
Adjusted net income from continuing operations 398 81
Discontinued operations - (195)
----------------- ----------------
Earnings (loss) applicable to common stock $ 398 $ (114)
================= ================
Earnings (loss) per share:
Continuing operations $ 0.08 $ 0.02
Discontinued operations - (0.05)
----------------- ----------------
Net earnings (loss) $ 0.08 $ (0.03)
================= ================
Shares used in computing earnings (loss) per share 4,903
4,345
See the accompanying notes to these condensed consolidated financial statements.
5
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</TABLE>
MACROVISION CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31, March 31,
1997 1996
--------------- --------------
<S> <C> <C>
Net cash provided by operating activities $ 1,007 $ 1,012
Cash flows from investing activities:
Purchases of short-term investments (9,766) -
Sales of short-term investments - 1,200
Acquisition of property and equipment (165) (160)
Payments for patents and other intangibles (31) (100)
Other, net (108) 5
--------------- --------------
Net cash (used in) provided by investing activities (10,070) 945
Cash flows from financing activities:
Payments on capital lease obligations (27) (40)
Payments on long-term debt - (696)
Proceeds from issuance of common stock 11,064 -
Cash dividends (156) -
--------------- --------------
Net cash (used in) provided by financing activities 10,881 (736)
--------------- --------------
Net (decrease) increase in cash and cash equivalents 1,818 1,221
Cash and cash equivalents at beginning of period 2,409 2,286
--------------- --------------
Cash and cash equivalents at end of period $ 4,227 $ 3,507
=============== ==============
</TABLE>
See the accompanying notes to these condensed consolidated financial statements.
6
<PAGE>
MACROVISION CORPORATION
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared by Macrovision Corporation (the "Company") in accordance with the rules
and regulations of the Securities and Exchange Commission (SEC). Certain
information and footnote disclosure, normally included in financial statements
prepared in accordance with generally accepted accounting principles, have been
condensed or omitted in accordance with such rules and regulations. In the
opinion of management, the accompanying unaudited condensed consolidated
financial statements reflect all adjustments, consisting only of normal
recurring adjustments, necessary to present fairly the financial position of the
Company, and its results of operations and cash flows for those periods
presented. This quarterly report on Form 10-QSB should be read in conjunction
with the audited financial statements and notes thereto for the year ended
December 31, 1996 included in the Company's Registration Statement on Form SB-2
(Registration No. 333-19373), which was declared effective by the SEC on March
12, 1997.
The results of operations for the interim periods presented are not necessarily
indicative of the results expected for the entire year ending December 31, 1997
or any other future interim period, and the Company makes no representations
related thereto.
NOTE 2 - INITIAL PUBLIC OFFERING AND STOCK SPLIT
The Company's Board of Directors approved a 1 for 1.8 reverse stock split of
common and preferred stock, $.001 par value per share which became effective
February 26, 1997. The accompanying consolidated financial statements have been
restated to give effect to the reverse stock split.
On March 12, 1997, the Company consummated an initial public offering (IPO) of
2,350,000 shares of its Common Stock at a price of $9.00 per share, of which
1,434,016 shares were issued and sold by the Company and 915,984 shares were
sold by selling shareholders of the Company. The net proceeds to the Company
from the Offering, after underwriting discounts and commissions and other
expenses of the Offering, were approximately $10.4 million. The Company did not
receive any proceeds from the sale of shares sold by the selling shareholders.
Also, during this period, the Company issued 12,342 shares of common stock and
received proceeds of approximately $33,000 associated with the exercise of stock
options. Also, coinciding with the consummation of the IPO, all the outstanding
shares of preferred stock were converted into 1,376,432 shares of common stock
upon the closing of the IPO.
7
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NOTE 3 - INVENTORIES
Inventories are stated at the lower of cost (determined on a first-in, first-out
basis) or market and consisted of the following:
<TABLE>
<CAPTION>
March 31, December 31,
1997 1996
------------------ -------------------
<S> <C> <C>
Raw materials $236,000 $ 260,000
Work-in-process 184,000 73,000
Finished goods 296,000 217,000
================== ===================
$716,000 $ 550,000
================== ===================
</TABLE>
NOTE 4 - NET EARNINGS (LOSS) PER SHARE
Net earnings (loss) per share for the three month period ended March 31, 1997
was determined using the weighted average number of shares of common stock and
dilutive common equivalent shares from stock options using the treasury stock
method. Pursuant to the rules of the SEC all common and common equivalent shares
issued within 12 months of the initial filing of the registration statement have
been included in the computation net earnings (loss) per share of the three
month period ended March 31, 1996 as if they were outstanding for the entire
period.
The Financial Accounting Standards Board recently issued Statement of Financial
Accounting Standards (SFAS) No. 128, "Earnings Per Share." SFAS No. 128 requires
the presentation of basic earnings per share (EPS) and, for companies with
complex capital structure diluted EPS. SFAS No. 128 is effective for annual and
interim periods ending after December 31, 1997. The Company expects that basic
EPS will be higher than primary earnings per share as presented in the
accompanying consolidated financial statements and that diluted EPS will not
differ materially from fully diluted earnings per share as presented in the
accompanying consolidated financial statements.
NOTE 5 - CONTINGENCIES
In October 1995, a former officer and director of the Company filed suit against
the Company in the Superior Court of the State of California alleging monetary
damages suffered as a result of alleged fraud, misrepresentation, and other
malfeasance in connection with the Company's grant of stock options to him. Mr.
Swyt maintains that the Company induced him to accept employment by falsely
representing to him that the options granted to him eventually would have
substantial value. Between August 1990 and December 1993, the Company granted to
him options to purchase approximately 200,000 shares of the Company's common
stock with per share exercise prices of $2.25 or $2.70. Substantially all of
these options expired unexercised within three months following his departure
from the Company in June 1995. In December 1996, the court ordered this matter
to binding arbitration in accordance with a written agreement between him and
the Company. The arbitration agreement contains limitations on the types of
damages available to him and expressly precludes punitive damages. The Company
believes that the case is without merit and intends to contest it vigorously. In
the opinion of counsel, it is not possible to determine with precision the
probable outcome or the amount of liability, if any, under this lawsuit;
however, in the opinion of the Company, the disposition of this lawsuit will not
have a materially adverse affect on the consolidated financial statements of the
Company.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
The following discussion in 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. Predictions of
future events are inherently uncertain. Actual events could differ materially
from those predicted in the forward looking statements as a result of the risks
set forth in this Form 10-QSB and in the Risk Factors section of the Company's
Prospectus dated March 12, 1997, included in the Company's Registration
Statement on Form SB-2 (Registration No. 333-19373), which was declared
effective by the Securities and Exchange Commission on March 12, 1997. There are
no assurances that the Company has identified all possible problems which the
Company might face. All investors should carefully read the Company's
Registration Statement on Form SB-2, together with this Form 10-QSB, and
consider all such risks before making an investment decision with respect to the
Company's stock.
Overview
The Company was founded in 1983 to develop video security solutions for major
motion picture studios and independent video producers. Since that time, the
Company has derived most of its revenues and operating income from licensing its
video copy protection technologies. The revenues of the Company primarily
consists of licensing fees for videocassette copy protection, licensing of
digital Pay-Per-View copy protection, licensing and selling products
incorporating its PhaseKrypt video scrambling technology to cable television
system operators, law enforcement agencies, television broadcasters, private
analog satellite networks and in its CineGuard motion picture theaters.
Results of Operations
Net Revenues
Consolidated net revenues for the first quarter of 1997 increased to $4.6
million or 27% from $3.6 million in the first quarter of 1996. Revenues in the
Copy Protection group increased 8% to $3.6 million from $3.3 million and
revenues in the Video Scrambling group increased 253% to $1.0 million from $.3
million. Revenues in the Copy Protection group during the first quarter of 1997
included lower revenues from packaged media due in part to the lower number of
video releases during the first quarter of 1997 as compared to the first quarter
of 1996. In the first quarter of 1997, the Company recorded its first DVD copy
protection royalty revenue from replication of DVDs and license fees from PC
manufacturers. The other component of Copy Protection revenue is Pay Per View
which in the first quarter of 1997 was 142% higher than the first quarter of
1996. Revenue growth in the Pay Per View area is primarily due to the royalties
from set top boxes shipped during the quarter. Higher revenues in the Video
Scrambling group during the first quarter of 1997 were a result of higher
shipments of the VES-TM product and royalties from analog decoder customers,
which were derived from business in South America and Southeast Asia.
Gross Margin
Gross margin for the first quarter of 1997 was 85% compared to 83% for the first
quarter of 1996. The Company's gross margin is influenced by the sales mix which
in the first quarter of 1997 favored higher margined royalty based revenue
versus lower margined product sales. Cost of sales includes items such as
product costs, duplicator fees, patent amortization and mastering costs.
Research and Development
Research and Development expenses decreased by $85,000 or 13% compared to the
first quarter of 1996 primarily due to a reduction in the number of employees
and in engineering supplies associated with the completion of the VES-TM product
during 1996.
9
<PAGE>
Selling & Marketing
Selling and marketing expenses increased by $307,000 or 25% from the first
quarter of 1996 primarily due to increased sales efforts in Pay Per View and
Video Scrambling.
General & Administrative
General and administrative expenses increased by $278,000 or 46% from the first
quarter of 1996 primarily due to an increase in the number of employees and
expenses associated with the costs associated with being a public company as
well as support for the growing businesses of Pay Per View, DVD and Video
Scrambling.
Interest and Other Expense
Other income during the first quarter of 1997 benefited from interest income
earned on the IPO proceeds. The first quarter of 1996 included interest expense
on the Company's convertible debt which was converted into preferred stock
during the third quarter of 1996.
Provision for Income Taxes
Income tax expense represents combined federal and state taxes at an effective
rate of 40% and 50% from continuing operations for the three months ended March
31, 1997 and 1996, respectively.
Net Income (Loss)
Net income from continuing operations for the first quarter of 1997 was $554,000
or 187% higher than the first quarter of 1996 which was $193,000.
Net income for the first quarter of 1997 was $554,000 as compared to the first
quarter of 1996 which was a loss of $2,000 which included the loss from the
discontinued operations of Command Audio Corporation.
LIQUIDITY AND CAPITAL RESOURCES
On March 12, 1997, the Company consummated an initial public offering (IPO) of
2,350,000 shares of its Common Stock at a price of $9.00 per share, of which
1,434,016 shares were issued and sold by the Company and 915,984 shares were
sold by selling shareholders of the Company. The net proceeds to the Company
from the Offering, after underwriting discounts and commissions and other
expenses of the Offering, were approximately $10.4 million. The Company did not
receive any proceeds from the sale of shares sold by the selling shareholders.
The Company has financed its operations primarily from cash generated by
operations, principally by its videocassette copy protection business. The
Company's operating activities provided net cash of $1,007,000 and $1,012,000 in
the three months ending March 31, 1997 and 1996, respectively. In each of these
periods, net cash was provided primarily by net income, increase in accounts
payable, accrued liabilities and deferred revenue and depreciation and
amortization, partially offset by increases in accounts receivable, inventories
and deferred taxes in 1997 and discontinued operations in 1996.
The Company made capital expenditures of $165,000 and $160,000 in the first
three months ending March 31, 1997 and 1996, respectively. The Company also paid
$31,000 and $100,000, respectively, for patents and other intangibles during
those periods. The proceeds from the IPO have been invested in various cash
equivalents and short term securities.
10
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The Company believes that the net proceeds of its initial public offering,
together with available funds and cash flows generated from operations will be
sufficient to meet its working capital and capital expenditure requirements. The
Company may also utilize cash to acquire or invest in complementary businesses
or to obtain the right to use complementary technologies.
The Company paid interest of $3,000 and $133,000 in the three months ended
March 31, 1997 and 1996, respectively. The interest expense paid in 1996 was
primarily from the convertible note.
Part II. Other Information
Item 1. Legal Proceedings
In October 1995, a former officer and director of the Company filed suit against
the Company in the Superior Court of the State of California alleging monetary
damages suffered as a result of alleged fraud, misrepresentation, and other
malfeasance in connection with the Company's grant of stock options to him. Mr.
Swyt maintains that the Company induced him to accept employment by falsely
representing to him that the options granted to him eventually would have
substantial value. Between August 1990 and December 1993, the Company granted to
him options to purchase approximately 200,000 shares of the Company's common
stock with per share exercise prices of $2.25 or $2.70. Substantially all of
these options expired unexercised within three months following his departure
from the Company in June 1995. In December 1996, the court ordered this matter
to binding arbitration in accordance with a written agreement between him and
the Company. The arbitration agreement contains limitations on the types of
damages available to him and expressly precludes punitive damages. The Company
believes that the case is without merit and intends to contest it vigorously. In
the opinion of counsel, it is not possible to determine with precision the
probable outcome or the amount of liability, if any, under this lawsuit;
however, in the opinion of the Company, the disposition of this lawsuit will not
have a materially adverse affect on the consolidated financial statements of the
Company.
Item 4 - Submission of Matters to a Vote of Security Holders.
During the fiscal quarter ended March 31, 1997, the Company solicited a written
consent from its stockholders (effective December 1996) approving a series of
documents and certain related and other corporate actions. The documents consist
of the following: (i) the Macrovision Corporation 1996 Equity Incentive Plan,
(ii) the Macrovision Corporation 1996 Stock Purchase Plan, (iii) the Macrovision
Corporation 1996 Directors Option Plan, (iv) the form of the Certificate of
Amendment of Certificate of Incorporation giving effect to the proposed reverse
stock split, (v) the form of the post-IPO Amended and Restated Certificate of
Incorporation of Macrovision Corporation, and (vi) the form of the post-IPO
Amended and Restated Bylaws of Macrovision Corporation. The corporate actions
consisted of: (i) the reservation and issuance of shares of the Corporation's
Common Stock under each of the 1996 Equity Incentive Plan, the 1996 Employee
Stock Purchase Plan, and the 1996 Director's Stock Option Plan, (ii) the
assumption by the Company of all stock options issued by Macrovision
Corporation, a California corporation, and outstanding under the Macrovision
Corporation Stock Option Plan, which Plan was adopted on September 8, 1988 and
restated on February 6, 1992, as well as all of its obligations thereunder,
(iii) the reverse stock split in the ratio of one share of Common Stock for each
one and eight-tenths outstanding shares of the Company's Common Stock and the
filing of the Certificate of Amendment of Certificate of Incorporation of
Macrovision Corporation giving effect thereto as noted above, (iv) the filing of
the Company's post-IPO Amended and Restated Certificate of Incorporation, (v)
indemnification agreements with the officers and directors, and (vi) the merger
agreement between Macrovision Corporation, a California corporation and
Macrovision Corporation, a Delaware corporation. The written consent and each
matter contained therein was approved by a majority of the stockholders of the
Company, representing 3,565,983 shares of the Company's Common Stock and
1,238,790 shares of the Company's Series A Preferred stock.
11
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Item 5 - Other Information.
Item 5.1 - In April 1997, the Board of Directors approved the election of Bill
Stirlen and Donna Birks to fill two vacancies on the Board. Mr. Stirlen and Ms.
Birks, both independent directors, also were appointed to serve on the audit and
compensation committees of the Board.
Item 5.2 - In April 1997, the Underwriters exercised a 30-day option to purchase
330,000 additional shares of Common Stock resulting in net proceeds to the
Company of approximately $2,762,000.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
11.1 - Schedule of Computation of Earnings (Loss) Per Share.
27.1 - Financial Data Schedule.
(b) Reports on Form 8-K.
During the quarter ended March 31, 1997, the Company filed no Current Reports on
Form 8-K.
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.
Macrovision Corporation
May 15, 1997 By: /s/ William A. Krepick
Date William A. Krepick, President and Chief
Operating Officer
May 15, 1997 By: /s/ Victor A. Viegas
Date Victor A. Viegas, Vice President, Finance and
Administration and Chief Financial Officer
12
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<CAPTION>
Exhibit 11.1
MACROVISION CORPORATION
STATEMENT OF COMPUTATION OF NET EARNINGS (LOSS) PER SHARE
(In thousands, except per share data)
(Unaudited)
Three Months Ended
March 31, March 31,
1997 1996
---------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Computation of earnings (loss) per share:
Net income from continuing operations $ 554 $ 193
Preferred stock dividends (156) (112)
---------------- ----------------
Adjusted net income from continuing operations 398 81
Discontinued operations - (195)
---------------- ----------------
Earnings (loss) applicable to common stock $ 398 $ (114)
================ ================
Earnings (loss) per share:
Continuing operations $ 0.08 $ 0.02
Discontinued operations - (0.05)
---------------- ----------------
Net earnings (loss) $ 0.08 $ (0.03)
================ ================
Weighted average common shares outstanding 4,490 3,633
Weighted average common equivalent shares from stock options
calculated using the treasury stock method 413 467
Commonequivalent shares from common shares issued and stock options granted
within twelve months of the initial public offering, included pursuant to
Staff Accounting Bulletin No. 83 - 245
---------------- ----------------
Shares used to compute net earnings (loss) per share 4,903 4,345
================ ================
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<LEGEND>
EXHIBIT-27.1
FINANCIAL DATA SCHEDULE
This schedule contains summary financial information extracted from the
Financial Statements of Macrovision Corporation for the three months ended March
31, 1997, and is qualified in its entirety by reference to such Financial
Statements.
(In Thousands, except per share data)
Period-Type 3 Mos
Fiscal Year-End Dec 31, 1997
Period Start Jan 1, 1997
Period End Mar 31, 1997
Cash 4227
Securities 9763
Receivables 3548
Allowances 371
Inventory 716
Current Asssets 19998
PP&E 4484
Depreciation 2494
Total Assets 23960
Current Liabilities 6361
Bonds 0
Preferred-Mandatory 0
Preferred 0
Common 7
Other-Se 20049
Total Liab. And Equity 23960
Sales 4564
Total Revenues 4564
CGS 681
Total Costs 681
Other Expenses 2984
Loss Provision 0
Interest Expense 2
Income-Pretax 923
Income-Tax 369
Income-Continuing 554
Discontinued 0
Extraordinary 0
Changes 0
Net Income 554
EPS-Primary .08
EPS-Dilute 0
</LEGEND>
