SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For Quarterly Period Ended November 30, 1995
[ ] 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 1-8381
WELDOTRON CORPORATION
(Exact name of Registrant as specified in its charter)
NEW JERSEY 22-1602728
(State or other jurisdiction (I.R.S. Employer
incorporation or organization) Identification No.)
1532 South Washington Avenue
Piscataway, New Jersey 08855
(Address of Principal Exec. Offices) (Zip Code)
Registrant's Telephone Number, Including
Area Code (908) 752-6700
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, and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
2,300,173 Shares of Common Stock were outstanding as of
January 10, 1996.
<PAGE>
<TABLE>
WELDOTRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
($000'S OMITTED EXCEPT SHARE DATA)
<CAPTION>
Three Months Ended
November 30,
1995 1994
(Unaudited) (Unaudited)
___________ ___________
<S> <C> <C>
NET SALES $4,225 $4,700
COST AND EXPENSES:
Cost of Sales 2,839 3,492
Selling, General & Administrative Expenses 1,862 2,280
Depreciation and Amortization 125 127
______ ______
4,826 5,899
______ ______
LOSS FROM OPERATIONS (601) (1,199)
______ ______
OTHER INCOME/(EXPENSES):
Foreign Currency Translation Gain (Loss) 88 (90)
Other Income 166 16
Interest Expense (174) (114)
_______ _______
80 (188)
_______ _______
LOSS FROM CONTINUING OPERATIONS BEFORE
TAXES AND MINORITY INTEREST $ (521) $(1,387)
_______ _______
INCOME TAX PROVISION $ (40) $ --
_______ _______
MINORITY INTEREST: SHARE OF (INCOME) LOSS (75) 91
NET LOSS FROM CONTINUING OPERATIONS $ (636) $(1,296)
_______ _______
DISCONTINUED OPERATIONS:
LOSS FROM OPERATIONS $ -- $ (14)
LOSS ON DISPOSAL $ -- $ (56)
LOSS RELATED TO
DISCONTINUED OPERATIONS $ -- $ (70)
_______ _______
NET LOSS $ (636) $(1,366)
_______ _______
NET INCOME (LOSS) PER COMMON SHARE:
CONTINUING OPERATIONS $ (.28) $ (.56)
DISCONTINUED OPERATIONS -- (.03)
_______ _______
NET LOSS PER COMMON SHARE $ (.28) $ (.59)
_______ _______
DIVIDEND PER SHARE NONE NONE
WEIGHTED AVERAGE OF
COMMON SHARES OUTSTANDING 2,300,173 2,300,173
<FN>
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
WELDOTRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
($000'S OMITTED EXCEPT SHARE DATA)
<CAPTION>
Nine Months Ended
November 30,
1995 1994
(Unaudited) (Unaudited)
___________ ___________
<S> <C> <C>
NET SALES $13,753 $13,970
COST AND EXPENSES:
Cost of Sales 8,816 9,953
Selling, General & Administrative Expenses 5,489 6,021
Depreciation and Amortization 372 383
______ ______
14,677 16,357
______ ______
LOSS FROM OPERATIONS (924) (2,387)
______ ______
OTHER INCOME/(EXPENSES):
Foreign Currency Translation Gain 117 126
Other Income 466 346
Interest Expense (513) (454)
_______ _______
70 18
_______ _______
LOSS FROM CONTINUING OPERATIONS BEFORE
TAXES AND MINORITY INTEREST $ (854) $(2,369)
_______ _______
INCOME TAX PROVISION $ (136) $ --
_______ _______
MINORITY INTEREST: SHARE OF (INCOME) LOSS (200) 95
LOSS FROM CONTINUING OPERATIONS $(1,190) $(2,274)
_______ _______
DISCONTINUED OPERATIONS:
INCOME FROM OPERATIONS $ -- $ 66
LOSS ON DISPOSAL $ -- $ (56)
INCOME RELATED TO
DISCONTINUED OPERATIONS $ -- $ 10
_______ _______
NET LOSS $(1,190) $(2,264)
_______ _______
NET INCOME (LOSS) PER COMMON SHARE:
CONTINUING OPERATIONS $ (.52) $ (.98)
DISCONTINUED OPERATIONS -- --
_______ _______
NET LOSS PER COMMON SHARE $ (.52) $ (.98)
_______ _______
DIVIDEND PER SHARE NONE NONE
WEIGHTED AVERAGE OF COMMON SHARES OUTSTANDING 2,300,173 2,300,173
<FN>
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
WELDOTRON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
($000'S OMITTED)
<CAPTION>
November 30, February 28,
1995 1995
(Unaudited) (Audited)
________ _______
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 297 $ 438
Accounts Receivable (Net) 2,164 2,461
Inventories (Note B) 9,030 9,025
Prepaid Expenses and Other Current Assets 477 303
________ _______
TOTAL CURRENT ASSETS 11,968 12,227
Property and Equipment at Cost 12,272 12,076
Less Accumulated Depreciation & Amort. (9,439) (9,162)
________ _______
2,833 2,914
Other Assets 115 145
________ _______
TOTAL ASSETS $ 14,916 $ 15,286
________ _______
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES & STOCKHOLDERS' EQUITY
<S> <C> <C>
CURRENT LIABILITIES
Short Term Borrowings (Note C) $ 2,256 $ 2,215
Notes Payable: Related Party (Note C) 1,000 --
Accounts Payable 2,457 2,022
Other Current Liabilities 2,746 2,381
________ _______
TOTAL CURRENT LIABILITIES 8,459 6,618
________ _______
Long-Term Debt-Net of Current Maturities
(Note C) -- 750
Long Term Debt: Related Party (Note C) -- 500
Notes Payable - Non-Current 10 --
Deferred Compensation 1,062 1,088
Deferred Income 30 --
Minority Interests in Subsidiary 975 754
Stockholders' Equity 4,380 5,576
________ _______
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 14,916 $ 15,286
________ _______
<FN>
The Balance Sheet at February 28, 1995, has been taken from the
audited financial statements at that date, condensed and reclassified.
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
<PAGE>
<TABLE>
WELDOTRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
($000'S OMITTED)
<CAPTION>
Nine Months Ended
November 30,
1995 1994
(Unaudited) (Unaudited)
________ _______
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (1,190) $ (2,264)
Adjustments to reconcile net loss to
net cash flows provided by (used in)
operating activities:
Depreciation and amortization 371 383
Foreign currency translation gain (117) (126)
Bad debt provision 19 19
Decrease in assets held for sale -- 700
Deferred compensation expense 95 252
Minority interest in subsidiary net income (loss) 200 (95)
Gain on sale of property, plant and equipment (29) --
Changes in operating assets and liabilities
(Increase) decrease in assets
Accounts receivable 207 222
Inventories (102) 185
Prepaid expenses and other current assets (32) (449)
Other assets 5 39
Increase in current liabilities 799 1,181
Decrease in other long-term liabilities (121) (37)
_______ _______
Total adjustments 1,295 2,274
_______ _______
Net cash provided by (used in)
operating activities 105 10
_______ _______
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment (193) (232)
Proceeds from the sales of
property, plant and equipment 29 --
_______ _______
Net cash used in investing activities (164) (232)
_______ _______
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds under short-term borrowings 52 865
Proceeds from short-term debt - Related Party 500 500
Principal payments under capital lease obligations (1) (47)
Reduction of long term debt (750) (750)
_______ _______
Net cash provided by (used in)
financing activities (199) 568
_______ _______
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS 117 (534)
_______ _______
NET DECREASE IN CASH AND CASH EQUIVALENTS (141) (188)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 438 501
_______ _______
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 297 $ 313
_______ _______
<FN>
See Notes to Condensed Consolidated Financial Statements.
</TABLE>
<PAGE>
WELDOTRON CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note A: Basis of Preparation
The unaudited, condensed Consolidated Financial Statements as of
November 30, 1995 for the three and nine month periods ended November
30, 1995 and 1994, included herein, have been prepared in accordance
with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Rule 10-01.
The information reflects all adjustments which are of a normal
recurring nature and which are, in the opinion of management,
necessary to a fair statement of the results for the period.
Certain financial information and footnote disclosures normally
included in financial statements prepared in accordance with the
generally accepted accounting principles have been condensed or
omitted. The reader is referred to the consolidated financial
statements and notes thereto included in the Registrant's annual
report on Form 10-K for the year ended February 28, 1995.
Results of operations for the interim period are not necessarily
indicative of the operating results for the full year.
Note B: Inventories
Inventories at November 30, 1995, and February 28, 1995, are as
follows:
($000's - Omitted)
November 30, February 28,
1995 1995
__________ ________
Finished Goods $ 3,983 $ 3,858
Work in Process 2,893 2,852
Raw Materials 2,154 2,315
__________ ________
$ 9,030 $ 9,025
__________ ________
<PAGE>
Note C: Long-Term Debt and Short-Term Borrowings
In June 1991, the Registrant entered into a credit facility (the
Credit Facility) with Congress Financial Corporation, ("Congress") to
provide a revolving line of credit and term loan for working capital
purposes not to exceed $5,000,000. The interest rate is 3.75% over
the CoreStates floating base rate which was 8.75% at November 30,1995.
The Credit Facility further requires that the Registrant pay fees on
the unused line of credit, for administration, and upon early
termination of the Credit Facility. The Credit Facility was amended on
May 19,1995 to decrease the line of credit and the term loan to
$3,500,000 and extend the maturity date to June 25, 1996.
The Credit Facility is collateralized by substantially all of the
assets of the Registrant and its domestic subsidiaries. Borrowings
under the Credit Facility are limited to certain percentages of
eligible inventory and accounts receivable including stipulations as
to the ratio of advances collateralized by receivables compared to
advances collateralized by inventory.
The Company was in default of its minimum working capital require-
ments, but in compliance with all other financial covenants and terms
of the Credit Facility as of November 30, 1995. The Company obtained
a waiver of default and renegotiated new minimum working capital
requirements with its lender.
On August 31, 1994, the Registrant borrowed Five Hundred Thousand
($500,000) Dollars from Lyford Corp. "Lyford", a related company that
owns 19.56% of the issued and outstanding common stock of the
registrant. The Company executed and delivered to Lyford a promissory
note, a security agreement and a Common Stock Purchase Warrant
granting to Lyford the right to purchase up to 200,000 shares of the
Company's common stock at an initial exercise price of Two ($2.00)
Dollars per share, the closing price for the Company's common stock on
the date the warrant was granted. The warrant expires on August 4,
2004.
On May 5, 1995, the Registrant concluded the rolling of this note into
a new note in the amount of One Million ($1,000,000) Dollars. The new
obligation is evidenced by a certain Amended, Extended and Restated
Promissory Note dated as of March 1, 1995 (the "Restated Note"). In
consideration for the new loan, the Company executed and delivered to
Lyford the Restated Note and an additional Common Stock Purchase
Warrant. The new loan is secured by a junior lien on all of the
Company's assets. The new warrant grants to Lyford the right to
purchase up to 1,000,000 shares of the Company's common stock at an
initial exercise price of One ($1.00) Dollar per share. The market
price of the Company's common stock was $.875 on the date of the
warrant grant. The new warrant expires by its terms on April 12,
2005. Although an independent appraisal has not been obtained, the
Company management considered the application of APB 14 to the value
of these warrants and believes that they are of no value at this time.
The loan transaction closed pursuant to documents dated as of
March 1, 1995 and in the case of the new Warrant, April 13, 1995.
These loan documents were contingent on the Company's obtaining the
consent of its senior lender, which consent was obtained on May 5,
1995.
<PAGE>
WELDOTRON CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Financial Condition
___________________
The Registrant's net working capital decreased from $5,609,000 at
February 28, 1995 to $3,509,000 at November 30, 1995. The current
ratio decreased from 1.85 at February 28,1995 to 1.41 at November 30,
1995. The changes in net working capital during the first nine months
of this year were primarily related to the following:
- - accounts receivable decreased 12% due to lower sales in the third
quarter of this year compared to the fourth quarter of last year.
- - inventories were flat; a $691,000 reduction in domestic inventories
was offset by a $696,000 build up at our Brazilian subsidiary.
- - prepaid expenses and other current assets increased due to insurance
policy renewals and increased trade show expenditures.
- - accounts payable increased due to extended payment terms with
vendors.
- - other current liabilities increased due to increased customer
deposits.
- - notes payable from a related party increased at November 30, 1995
due to the reclassification of $500,000 from long-term to short-term
as well as an additional $500,000 received in the first quarter of
this year.
At November 30, 1995 the Registrant had used approximately $2,121,000
of the Congress Credit Facility (See Note C to the consolidated
financial statements). Based on the advance percentages of eligible
receivables and inventories the Registrant had a borrowing overadvance
of approximately $30,000 at November 30, 1995. Other short term
borrowings include capitalized leases of approximately $41,000.
The availability of future borrowings depends upon the Company's
compliance with the covenants contained in the Credit Facility
agreement and the level of eligible receivables and inventories.
The Registrant's primary and secondary sources of liquidity at
November 30, 1995 were the Congress Credit Facility and the note from
a related party, respectively. There can be no assurances that an
extended economic recession will not adversely impact the Registrant's
future financial condition and liquidity.
<PAGE>
The major components affecting the favorable period to period change
in cash flow from operating activities were: (1) The 47% reduction in
net loss and (2) a smaller increase in prepaid expenses and other
current assets due to lower insurance premiums and trade show
expenditures.
The Registrant increased its note obligation to a related party this
year by $500,000 to liquidate accounts payable and other current
liabilities.
The effect of exchange rate changes on cash and cash equivalents for
the nine months ended November 30, 1995 and for the same period last
year was $117,000 and $(534,000), respectively. This is attributable
to Brazil's inflationary economy and the "remeasurement method" used
for foreign currency translation to be measured into U.S. dollars as
required by SFAS No. 52.
<PAGE>
Results of Continuing Operations for the Nine Month Period Ended
November 30, 1995 and 1994
______________________________________________________________________
For the third quarter ended November 30, 1995 sales from continuing
operations were $4,225,000 with loss from continuing operations of
$636,000 or $.28 per share. This compares to sales from continuing
operations of $4,700,000 with loss from continuing operations of
$1,296,000 or $.56 per share in the third quarter last year.
Loss From Operations
____________________
Third Quarter
______________
Sales for the third quarter were approximately 10.1% lower than the
same period last year. This is primarily due to a decrease in sales
of domestic packaging systems between these quarters. Sales of
domestic packaging systems decreased by 18.9% from $3,147,000 to
$2,551,000. The Company streamlined its product offering this year
eliminating several low margin, custom made products which required
extensive engineering time, as well as certain imported product lines
which became less profitable due to unfavorable changes in exchange
rates. Our control segment's sales declined 28.5% in the third
quarter this year compared to the same quarter last year. Sales at
our Brazilian subsidiary increased 48.2% in the third quarter this
year compared to the same quarter last year.
Cost of sales for the third quarter this year was 67.2% of sales
compared to 74.3% for the prior year. The decrease in cost of sales
is due to sales of higher margin products.
Selling, general and administrative expense decreased by $418,000 in
the third quarter of this year compared to the same quarter last year
due to staff reductions made in the latter part of fiscal 1995 as well
as lower provisions for deferred compensation. These savings were
partially offset by severance accruals this quarter of $129,000 and
increases at our Brazilian subsidiary; a direct result of their
increased sales volume.
Nine Months
__________
Sales for the first nine months of this year decreased approximately
1.6% compared to last year. The Company streamlined its product
offering this year eliminating several low margin, custom made
products which required extensive engineering time, as well as certain
imported product lines which became less profitable due to unfavorable
changes in exchange rates. Sales at our Brazilian subsidiary increased
from $1,946,000 to $3,699,000, or 90%, while sales in the domestic
packaging group and controls segment declined 15.9% and 18.3%
respectively, from last year's similar nine month period.
Cost of sales for the first nine months of this year was 64.1% of
sales compared to 71.2% of sales for the same period last year,
reflecting sales of higher margin products.
Selling, general and administrative expenses decreased in the first
nine months of this year by $532,000 compared to the same period last
year due to staff reductions which took place in the latter part of
fiscal 1995, as well as lower provisions for deferred compensation.
These savings were partially offset by certain professional fees,
severance accruals and increases at our Brazilian subsidiary due to
increased sales volume.
The gain from foreign currency translation decreased by $9,000 for
the first nine months of this year compared to the same period last
year due to slower movement this year in the Brazilian currency
exchange rate.
Other Income and Expense
________________________
Third Quarter
______________
Other income in the third quarter this year was $150,000 higher than
the third quarter last year due primarily to higher commission income
generated by our Brazilian subsidiary.
Interest expense increased $60,000 in the third quarter this year
compared to the third quarter last year due to increased interest
expense, arising from higher average borrowings from a related party
and higher interest rates.
The provision for income taxes was $40,000 in the third quarter this
year versus no provision in the third quarter last year. The
provision is based solely on taxable income from our Brazilian
subsidiary of $151,000 for the quarter.
Nine Months
__________
Other income in the first nine months of this year increased by
$120,000 due to a real estate tax abatement, and gains on sales of
non-performing assets.
Interest expense increased by $59,000 in the first nine months of this
year compared to the same period last year. Domestic interest expense
increased $137,000 due to higher average borrowings and higher
interest rates, whereas our Brazilian subsidiary experienced a $78,000
reduction.
The provision for income taxes was $136,000 in the first nine months
of this year versus no provision in the first nine months last year.
The provision is based solely on taxable income from our Brazilian
subsidiary of $435,000 for the first nine months.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
MTD Service Corp. V. Weldotron Corporation
Information with respect to this litigation is incorporated by
reference to PART I, Item 3, Legal Proceedings, on page 13 of the
Registrant's Report on Form 10-K for the fiscal year ended February
28, 1995, filed with the Securities and Exchange Commission on June 7,
1995.
In July 1994 the Company and its co-defendants filed a motion for
summary judgment to dismiss the amended complaint. The motion was
granted by the Judge in the United State District Court for the
Southern District of New York. The Court's order, which dismissed
MTD's complaint with prejudice, was signed on July 29, 1994.
Subsequently MTD filed an appeal in the matter with the U.S. Court of
Appeals, 2nd Judicial Circuit. On May 5, 1995 this appeal was
dismissed by the Court by affirming the decision of the U.S.
District Court granting the Company's motion for the summary judgment.
Martin Siegel v. Weldotron Corporation
Information with respect to this litigation is incorporated by
reference to PART I, Item 3, Legal Proceedings, on page 13 of the
Registrant's Report on Form 10-K for the fiscal year ended February
28, 1995, filed with the Securities and Exchange Commission on June 7,
1995.
On April 13, 1995, the Company reached a full and final
settlement with Martin Siegel. Under the terms of the settlement,
which was approved by the Court: (1) all claims and counterclaims by,
between and among Mr. Siegel, the Company and the other parties to the
litigation were dismissed, with prejudice, (2) Mr. Siegel and the
Company exchanged mutual releases, (3) Mr. Siegel's Employment
Agreement with the Company dated March 1, 1988, as amended, was
terminated, and (4) Mr. Siegel was awarded a lifetime annual deferred
compensation benefit of $100,000. The annual deferred compensation
benefit is an unsecured obligation of the Company.
Item 2. Changes in Securities
On August 31, 1994, the Registrant borrowed Five Hundred Thousand
($500,000) Dollars from Lyford Corp. "Lyford", a related company that
owns 19.56% of the issued and outstanding common stock of the
registrant. The Company executed and delivered to Lyford a promissory
note, a security agreement and a Common Stock Purchase Warrant
granting to Lyford the right to purchase up to 200,000 shares of the
Company's common stock at an initial exercise price of Two ($2.00)
Dollars per share, the closing price for the Company's common stock on
the date the warrant was granted. The warrant expires on August 4,
2004.
<PAGE>
On May 5, 1995, the Registrant concluded the rolling of this note
into a new note in the amount of One Million ($1,000,000) Dollars.
The new obligation is evidenced by a certain Amended, Extended and
Restated Promissory Note dated as of March 1, 1995 (the "Restated
Note"). In consideration for the new loan, the Company executed and
delivered to Lyford the Restated Note and an additional Common Stock
Purchase Warrant. The new loan is secured by a junior lien on all of
the Company's assets. The new warrant grants to Lyford the right to
purchase up to 1,000,000 shares of the Company's common stock at an
initial exercise price of One ($1.00) Dollar per share. The market
price of the Company's common stock was $.875 on the date of the
warrant grant. The new warrant expires by its terms on April 12,
2005. Although an independent appraisal has not been obtained, the
Company management considered the application of APB 14 to the value
of these warrants and believes that they are of no value at this time.
The loan transaction closed pursuant to documents dated as of
March 1, 1995 and in the case of the new Warrant, April 13, 1995.
These loan documents were contingent on the Company's obtaining the
consent of its senior lender, which consent was obtained on May 5,
1995. The new note in the amount of one million ($1,000,000) dollars
is due and payable on March 31, 1996.
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) Exhibits
One press release issued by the Registrant on
April 18, 1995 regarding settlement with former chairman.
(b) Report on Form 8-K
Two reports on Form 8K were filed in the quarter ended
May 31, 1995 as follows
Date Item Reported
________ __________
April 13, 1995 Settlement with former chairman
May 5, 1995 Loan from related party
<PAGE>
S I G N A T U R E
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.
WELDOTRON CORPORATION
Registrant
By: Michael McKee
Michael McKee
Vice President of Finance
Date: January 16, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> FEB-28-1995
<PERIOD-END> NOV-30-1995
<CASH> 297
<SECURITIES> 0
<RECEIVABLES> 2164
<ALLOWANCES> 0
<INVENTORY> 9030
<CURRENT-ASSETS> 11968
<PP&E> 12272
<DEPRECIATION> 9439
<TOTAL-ASSETS> 14916
<CURRENT-LIABILITIES> 8459
<BONDS> 0
<COMMON> 118
0
0
<OTHER-SE> 4380
<TOTAL-LIABILITY-AND-EQUITY> 14916
<SALES> 4225
<TOTAL-REVENUES> 4225
<CGS> 2839
<TOTAL-COSTS> 4826
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 174
<INCOME-PRETAX> (521)
<INCOME-TAX> (40)
<INCOME-CONTINUING> (636)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (636)
<EPS-PRIMARY> (.28)
<EPS-DILUTED> 0
</TABLE>
