UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1999
( ) 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: 0-30018
MERIDIAN HOLDINGS, INC.
------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
COLORADO 52-2133742
- ---------------------------------------- --------------------------------
(State of Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
900 WILSHIRE BOULEVARD, SUITE 500, LOS ANGELES, CALIFORNIA 90017
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices)
(213) 627-8878
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
N/A
- --------------------------------------------------------------------------------
(Former name, former address and formal fiscal year, if changed since last
report)
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 ( )
As of June 30, 1999, Meridian Holdings, Inc., Registrant had 25,957,500 shares
of its $0.001 par value common stock outstanding.
Page 1 of 12 sequentially numbered pages
Form 10-Q
Second Quarter 1999
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MERIDIAN HOLDINGS, INC.
INDEX
PAGE
----
PART I. FINANCIAL INFORMATION
<S> <C> <C>
Balance Sheets - June 30, 1999. . . . . . . . . . . . . . . 3
Statements of Operations for the Six Months
Ended June 30, 1999 . . . . . . . . . . . . . . . . . . . . 4
Statement of Cash Flows for the Six Months
Ended June 30, 1999 . . . . . . . . . . . . . . . . . . . . 5
Statement of Shareholders' Equity for the Six Months
Ended June 30, 1999 . . . . . . . . . . . . . . . . . . . . 6
Notes to Financial Statements . . . . . . . . . . . . . . . 7-8
Statements of Operations for the Six Months
Ended June 30, 1998 . . . . . . . . . . . . . . . . . . . . 9
Statement of Cash Flows for the Six Months
Ended June 30, 1998 . . . . . . . . . . . . . . . . . . . . 10
Management's Discussion and Analysis of Financial Condition
and Results of Operations . . . . . . . . . . . . . . . . . 11
Signature . . . . . . . . . . . . . . . . . . . . . . . . . 12
</TABLE>
2
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<TABLE>
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MERIDIAN HOLDINGS, INC.
BALANCE SHEET
JUNE 30, 1999
(UNAUDITED)
ASSETS
<S> <C>
CURRENT ASSETS:
- ---------------
Cash In Bank. . . . . . . . . . . . . . . . . . $ 71,130
Accounts Receivable . . . . . . . . . . . . . . 231,611
Inventories . . . . . . . . . . . . . . . . . . 4,334
----------
Total Current Assets:. . . . . . . . . . . . . . . . $ 307,075
FIXED ASSETS:
- -------------
Computer Equipment. . . . . . . . . . . . . . . $ 56,419
Leasehold Improvements. . . . . . . . . . . . . 6,500
Office Furniture & Fixtures . . . . . . . . . . 36,603
Office Equipment. . . . . . . . . . . . . . . . 7,262
Computer Software . . . . . . . . . . . . . . . 4,792
Medical Equipment . . . . . . . . . . . . . . . 5,391
----------
Total. . . . . . . . . . . . . . . . . . . . . . . . 116,967
Depreciation Reserve . . . . . . . . . . . . . . . . 90,186
----------
Total Fixed Assets . . . . . . . . . . . . . . . . . $ 26,781
----------
OTHER ASSETS;
- -------------
Other Investments . . . . . . . . . . . . . . . $ 500
Prepaid Rent Deposit. . . . . . . . . . . . . . 4,541
----------
Total Other Assets . . . . . . . . . . . . . . . . . $ 5,041
----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . $ 338,897
----------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
- --------------------
Accounts Payable. . . . . . . . . . . . . . . . $ 18,390
Accrued Payroll Taxes Payable . . . . . . . . . 1,290
Credit Cards Payable. . . . . . . . . . . . . . 49,447
----------
Total Current Liabilities. . . . . . . . . . . . . . $ 69,127
LONG TERM LIABILITIES:
- ----------------------
Loan Payable - Small Business Administration. . $ 8,598
Loan Payable - L. A. Community Development Bank 60,000
Loan Payable - First Professional Bank. . . . . 15,000
Loan Payable - G. E. Capital Credit . . . . . . 35,000
----------
Total Long Term Liabilities. . . . . . . . . . . . . $ 118,598
----------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . $ 187,725
SHAREHOLDERS' EQUITY:
- ---------------------
Common Stock, Par Value $0.001 Per Share;
Authorized 50,000,000 Shares; Issued and
Outstanding 25,957,500 Shares . . . . . . . . . $ 25,958
Additional Paid In Capital. . . . . . . . . . . 535,237
Accumulated Deficit . . . . . . . . . . . . . . (410,023)
----------
TOTAL SHAREHOLDERS' EQUITY . . . . . . . . . . . . . $ 151,172
----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY . . . . . $ 338,897
----------
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
<TABLE>
<CAPTION>
MERIDIAN HOLDINGS, INC.
Consolidated Statement - Unaudited
STATEMENT OF OPERATIONS
FOR THE PERIOD FROM JANUARY 1, 1999 THROUGH JUNE 30, 1999
APRIL 1, 1999 JANUARY 1, 1999
THROUGH THROUGH
JUNE 30, 1999 JUNE 30, 1999
-------------- -----------------
<S> <C> <C>
REVENUES:
- ---------
PROFESSIONAL FEES . . . . . . . $ 351,947 $ 639,892
COST OF REVENUES:
Capitation Fees . . . . . . . . $ 119,847 $ 187,108
Medical Services. . . . . . . . 26,663 68,667
Management Fees . . . . . . . . 11,500 24,500
Other . . . . . . . . . . . . . . 8,883 15,031
-------------- -----------------
Total Cost of Goods Sold. . . . . . $ 166,893 $ 295,306
-------------- -----------------
GROSS PROFIT. . . . . . . . . . . . $ 185,054 $ 344,586
OPERATING EXPENSES:
Accounting. . . . . . . . . . . $ 4,313 $ 13,934
Advertising . . . . . . . . . . 15,500 26,290
Automobile. . . . . . . . . . . 855 4,381
Bank Charges. . . . . . . . . . . 581 700
Consulting Fees . . . . . . . . 3,584 11,209
Credentialing . . . . . . . . . 0 2,955
Dues & Subscriptions. . . . . . 300 2,493
Employee Benefits . . . . . . . 0 5,250
Equipment Rental. . . . . . . . . 0 6,759
Insurance . . . . . . . . . . . 5,266 10,727
Legal & Professional. . . . . . 445 3,445
Licenses & Permits. . . . . . . 50 1,485
Miscellaneous . . . . . . . . . 258 258
Postage & Delivery. . . . . . . 1,174 1,739
Printing. . . . . . . . . . . . . 598 1,416
Organizational Costs. . . . . . 21,403 21,403
Rent. . . . . . . . . . . . . . . 15,566 29,971
Repairs . . . . . . . . . . . . 2,311 3,315
Salaries - Medical Staff. . . . . 25,579 40,726
Supplies. . . . . . . . . . . . . 2,329 6,109
Taxes - Payroll . . . . . . . . . 2,730 6,961
Taxes - Property. . . . . . . . . 0 174
Telephone & Internet. . . . . . 10,681 30,923
Travel & Entertainment. . . . . 1,523 2,162
Utilities . . . . . . . . . . . . 660 1,209
-------------- -----------------
Total Operating Expenses. . . . . . $ 115,706 $ 235,994
-------------- -----------------
NET INCOME FROM OPERATIONS (LOSS) . 69,348 108,592
Other Income. . . . . . . . . . . . $ 2,576 $ 2,933
Other Expenses. . . . . . . . . . . 712 3,688
-------------- -----------------
NET OTHER INCOME (LOSS) . . . . . . $ 1,864 $ (755)
-------------- -----------------
NET INCOME (LOSS) . . . . . . . . . $ 71,212 $ 107,837
Common Shares Outstanding . . . . . . 25,957,500
Net Income (Loss) Per Common Share. $ 0.00
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
4
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<TABLE>
<CAPTION>
MERIDIAN HOLDINGS, INC.
Unaudited - Compiled By Management
STATEMENT OF CASH FLOW
FOR THE PERIOD FROM JANUARY 1, 1999 THROUGH JUNE 30, 1999
<S> <C>
Cash Flows From Operating Activities:
Net Income (Loss). . . . . . . . . . . . . . $ 107,837
Items Not Affecting Cash Flow:
Depreciation . . . . . . . . . . . . . . . . None
(Increase) Decrease In Accounts Receivable . (43,132)
(Increase) Decrease In Organizational Costs. 21,403
Increase (Decrease) In Liabilities . . . . . (163,480)
----------
NET CASH FLOW PROVIDED FROM OPERATIONS . . . . $ (77,372)
Cash Flow From Financing Activities:
Issuance of Company Stock - Cash . . . . . . $ 86,939
Deferred Offering Costs. . . . . . . . . . . None
----------
NET CASH FLOW FROM FINANCING ACTIVITIES. . . . $ 86,939
Cash Flow From Investment Activities:
Purchase of Equipment. . . . . . . . . . . . $ (21,120)
----------
NET CASH FLOW FROM INVESTMENT ACTIVITIES . . . $ (21,120)
Net Increase (Decrease) In Cash. . . . . . . . $ (11,553)
Cash At The Beginning Of Period. . . . . . . . 82,683
----------
CASH & CASH EQUIVALENTS AT END OF PERIOD . . . $ 71,130
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
5
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<TABLE>
<CAPTION>
MERIDIAN HOLDINGS, INC.
Unaudited - Compiled By Management
STATEMENT OF SHAREHOLDERS' EQUITY
FOR THE PERIOD ENDING JUNE 30, 1999
Transaction Number of Common Additional Accumulated Total
And Date Common Shares Stock Paid In Capital Deficit Equity
- --------------------------- -------------- -------- ---------------- ------------- --------
<S> <C> <C> <C> <C> <C>
October 13, 1998
Common Shares for Cash
and Services as Chairman
of the Board, Chief
Executive Officer
and President . . . . . . . 650,000 $ 650 $ 2,874 0 $ 3,524
December 5, 1998 Through
February 8, 1999
Common Shares for
Cash At $0.10
per Share . . . . . . . . . 307,500 $ 308 $ 30,442 0 $ 34,274
May 25, 1999
Common Shares to
Complete Acquisition
of the Capnet Group
of Companies. . . . . . . . 25,000,000 $ 25,000 $ 501,921 $ (517,860) $ 43,335
Earnings For Current Period $ 107,837 $151,172
Balance
June 30, 1999 . . . . . . . 25,957,500 $ 25,958 $ 535,237 $ (410,023) $151,172
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
MERIDIAN HOLDINGS, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
----------------------------------------------
This summary of significant accounting policies of Meridian Holdings, Inc. (the
"Company") is presented to assist in understanding the Company's financial
statements. Management has made all of the necessary adjustments which, in the
opinion of management, are necessary to make these financial statements not to
appear misleading. These accounting policies conform to generally accepted
accounting principles and have been consistently applied in the preparation of
the financial statements.
The Company completed the acquisition of the Capnet Group of Companies on May
25, 1999. The financial statements for the Quarter Ended June 30, 1999 have
been prepared to reflect a combination of the two company's financial
statements.
NOTE 2 -- ORGANIZATION
------------
Meridian Holdings, Inc. (NASDAQ: Bulletin Board - MEHO) was incorporated under
the laws of the State of Colorado on October 13, 1998. The Company is an
Internet based company with special emphasis on e-Commerce. The Company's
activities have been limited to capital formation and the development of a
business plan. The Company became fully reporting under Securities & Exchange
Commission guidelines on March 31, 1999. Meridian Holdings, Inc. acquired the
Capnet Group of Companies on May 25, 1999. The Company is focusing on providing
services that will generate recurring revenue. Internet based communities, an
on-line mall, classified advertisement and auction websites will be developed,
acquired or be affiliated with the Company. The Company expects that the
majority of its revenues will initially consist of recurring subscription
revenues and revenues from management service agreements. If the Company is
successful in increasing its subscriber base, building brand recognition and
increasing traffic on its Web site, the Company expects revenues from
advertising, transaction and sponsorship fees to increase as percentages of its
total revenues.
Income per share -- The Company has calculated the income per common share based
- ----------------
upon 25,957,700 shares issued and outstanding. The net income per share was
$0.00.
NOTE 3 -- LEASE OBLIGATION
-----------------
The Company's corporate offices are located at 900 Wilshire Boulevard, Suite
500, Los Angeles, California 90017. The Company is required to pay $2,270.67
per month rental. The Company was required to make a lease deposit of
$4,541.34. The lease expires on February 28, 2001. The telephone number is
(213) 627-8878. The Company has additional office space located at 1601
Centinela Avenue, Inglewood, California 90302. The Company is required to pay
$2,000.00 per month rental. The Company was not required to make a lease
deposit. This lease is on a month to month basis.
7
<PAGE>
MERIDIAN HOLDINGS, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 4 - CAPITALIZATION
--------------
The Company has established one class of preferred stock, one class of common
stock and has established two classes of warrants. 1,000,000 Class "A"
Redeemable Common Stock Purchase Warrants have been established, exercising into
Common Shares at an exercise price of $3.00 per share. 1,000,000 Class "B"
Redeemable Common Stock Purchase Warrants have been established, exercising into
Common Shares at an exercise price of $4.50 per share. There were no Warrants
issued or outstanding as of June 30, 1999.
The Common Shares each have voting rights, with par value $0.001 per share and
no preference rights.
As of June 30, 1999, there were 25,957,500 Common Shares of the Company issued
and outstanding. There were no Preferred Shares issued or outstanding.
NOTE 5 -- PROPERTY AND EQUIPMENT
--------------------------
Property and equipment are stated at cost. Acquisitions having a useful life in
excess of one (1) year are capitalized. Repairs and maintenance are expenses in
the year incurred. Capital assets are depreciated by the straight-line method
over estimated useful lives of the related assets, normally five (5) to seven
(7) years.
Property and equipment consists of the following:
Computer Equipment & Software . $ 56,419
Leasehold Improvements. . . . . 6,500
Office Furniture & Fixtures . . 7,262
Computer Software . . . . . . . 4,792
Medical Equipment . . . . . . . 5,391
Office Equipment. . . . . . . . 7,262
--------
Total . . . . . . . . . . . . . 116,967
Less: Accumulated Depreciation 90,186
--------
Total Property & Equipment. . . 26,781
Depreciation expense for the period has not been computed.
NOTE 6 -- INCOME TAXES
-------------
Operating Loss and Tax Credit Carryforwards
The Company has loss carryforwards totaling $517,860 that may be offset against
future taxable income. If not used, the carryforwards will expire as follows:
Year 2011 210,021
Year 2012 307,839
--------
Total $517,860
As a result of the above carryforwards, there is no provision for income tax for
the six months ended June 30, 1999.
8
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<TABLE>
<CAPTION>
MERIDIAN HOLDINGS, INC.
Consolidated Statement - Unaudited
STATEMENT OF OPERATIONS
FOR THE PERIOD FROM JANUARY 1, 1998 THROUGH JUNE 30, 1998
APRIL 1, 1998 JANUARY 1, 1998
THROUGH THROUGH
JUNE 30, 1998 JUNE 30, 1998
--------------- -----------------
<S> <C> <C>
REVENUES:
- -------------------------------------
PROFESSIONAL FEES . . . . . . . $ 130,636 $ 165,239
COST OF REVENUES:
Capitation Fees . . . . . . . . $ 42,409 $ 42,409
Medical Services. . . . . . . . 29,158 33,726
Management Fees . . . . . . . . 700 900
Other . . . . . . . . . . . . . . 1,246 1,246
--------------- -----------------
Total Cost of Goods Sold. . . . . . $ 73,513 $ 78,281
--------------- -----------------
GROSS PROFIT. . . . . . . . . . . . $ 57,123 $ 86,958
OPERATING EXPENSES:
Accounting. . . . . . . . . . . $ 6,012 $ 7,667
Advertising . . . . . . . . . . 750 750
Amortization. . . . . . . . . . 226 339
Automobile. . . . . . . . . . . 2,870 3,946
Depreciation. . . . . . . . . . 4,546 6,346
Dues & Subscriptions. . . . . . 3,075 4,785
Employee Benefits . . . . . . . 717 810
Equipment Rental. . . . . . . . . 1,342 2,315
Insurance . . . . . . . . . . . 6,812 9,012
Interest. . . . . . . . . . . . 2,323 2,540
Licenses & Permits. . . . . . . . 753 1,058
Miscellaneous . . . . . . . . . 248 414
Postage & Delivery. . . . . . . 677 677
Printing. . . . . . . . . . . . . 1,670 1,670
Rent. . . . . . . . . . . . . . . 11,000 16,700
Repairs . . . . . . . . . . . . 3,683 3,985
Salaries - Officers . . . . . . . 72,000 108,000
Salaries - Other. . . . . . . . . 17,216 27,376
Supplies. . . . . . . . . . . . . 1,575 3,297
Taxes - Payroll . . . . . . . . . 3,060 3,060
Telephone & Internet. . . . . . 4,673 6,297
Utilities . . . . . . . . . . . . 1,130 1,743
--------------- -----------------
Total Operating Expenses. . . . . . $ 146,358 $ 212,787
NET INCOME FROM OPERATIONS (LOSS) . $ (89,235) $ (125,829)
Common Shares Outstanding . . . . . . 25,957,500
Net Income (Loss) Per Common Share. $ 0.00
</TABLE>
9
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<TABLE>
<CAPTION>
MERIDIAN HOLDINGS, INC.
Unaudited - Compiled By Management
STATEMENT OF CASH FLOW
FOR THE PERIOD FROM JANUARY 1, 1998 THROUGH JUNE 30, 1998
<S> <C>
Cash Flows From Operating Activities:
Net Income (Loss) . . . . . . . . . . . . . $(125,829)
Items Not Affecting Cash Flow:
Amortization. . . . . . . . . . . . . . . . 339
Depreciation. . . . . . . . . . . . . . . . 6,346
(Increase) Decrease In Accounts Receivable. 4,428
Increase In Salaries Payable - Officers . . 108,000
Increase (Decrease) In Accounts Payable . . 2,529
----------
NET CASH FLOW PROVIDED FROM OPERATIONS. . . . $ (4,187)
Cash Flow From Financing Activities:
Cash Proceeds From Affiliate Loan . . . . . $ 20,000
Cash Proceeds From Stockholder's Loan . . . 2,000
Cash Repayment of Loans . . . . . . . . . . (1,539)
Cash Proceeds From Revolving Credit Line. . 8,000
Cash Repayment of Stockholder's Loan. . . . (19,331)
----------
NET CASH FLOW FROM FINANCING ACTIVITIES . . . $ 9,130
Cash Flow From Investment Activities:
Purchase of Equipment . . . . . . . . . . . $ (750)
----------
NET CASH FLOW FROM INVESTMENT ACTIVITIES. . . $ (750)
Net Increase (Decrease) In Cash . . . . . . . $ 4,193
Cash At The Beginning Of Period . . . . . . . 3,696
----------
CASH & CASH EQUIVALENTS AT END OF PERIOD. . . $ 7,889
</TABLE>
10
<PAGE>
MERIDIAN HOLDINGS, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS:
LIQUIDITY AND CAPITAL RESOURCES OF THE COMPANY.
With the completion of the acquisition of the Capnet Group of Companies into the
Company, the operations have changed significantly. Prior to the acquisition,
the Company was in the capital formation stages and did not have any business
operations. With the increased operations, however, there is also an increase
in commitments and cash requirements.
Cash and cash equivalents totaled $71,130 at June 30, 1999 compared to $7,889 at
June 30, 1998. The increase in cash was due to the acquisition of the Capnet
Group of Companies. The Company had net working capital of $237,948 at June 30,
1999 compared to $10,467 at March 31, 1999. This increase in working capital
was due to the restructuring of the long-term liabilities, infusion of
additional capital and the reduction of accounts receivable.
Long-term cash requirements, other than normal operating expenses, are
anticipated for the continued development of the Company's business plans. The
Company will need to raise additional funds from investors in order to complete
these business plans.
RESULTS OF OPERATIONS
The Company generated revenues from operations of $639,892 during the six-month
period ended June 30, 1999, compared to the revenues from operations of $165,239
during the six-month period ended June 30, 1998. This represents an increase in
revenues of 387% from the year earlier. The acquisition of the Capnet Group of
Companies was completed on May 25, 1999. The financial statements for the
periods ended June 30, 1998 and June 30, 1999 include the consolidated
operations. The Company recorded a net profit from operations of $107,837
during the period ended June 30, 1999, compared to a net operating loss of
$(125,829) during the period ended June 30, 1998.
Management anticipates that general operating expenses will continue to remain
constant or decrease slightly due to the fine-tuning of operations.
The Company incurred a profit of $71,212 for the second quarter of 1999, as
compared to a profit of $36,625 for the first quarter. This profit, lower than
anticipated, was due to the amount of time, effort and resources that were
required to be expanded to complete the acquisition on May 25, 1999.
There are no seasonal aspects of the Company's business that had, or are
expected to have, a material effect on the financial conditions or results of
operations.
PLAN OF OPERATIONS
The Company has undertaken the completion of a Private Placement pursuant to
Regulation D, Rule 506 of the Securities and Exchange Commission. The Company
will be offering to Accredited Investors the opportunity to purchase Units at a
price of $5.00 each. Each Unit consists of Three Common Shares, par value
$0.001 per share, One Class "A" Redeemable Common Stock Purchase Warrant and One
Class "B" Redeemable Common Stock Purchase Warrant. Each Class "A" Warrant
entitles the holder thereof to purchase one additional share of Common Stock for
$3.00 per share for a period commencing on the date of the Private Placement
Memorandum. Each Class "B" Warrant entitles the holder thereof to purchase one
additional share of common Stock for $4.50 per share for a period commencing on
the date of the Private Placement Memorandum. Each Warrant is redeemable by the
Company at a redemption price of $0.01 per Warrant at any time after nine months
from the date of the Private Placement Memorandum with thirty days prior written
notice, if the average closing bid price of the Common Shares equals or exceeds
$5.00 for any twenty consecutive trading days ending within ten days prior
notice of redemption.
11
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 12 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.
MERIDIAN HOLDINGS, INC.
DATE: July 27, 1999
By: /s/ Anthony C. Dike
-------------------
Anthony C. Dike
Chief Executive Officer and
Chief Financial Officer
12
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-01-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 71130
<SECURITIES> 0
<RECEIVABLES> 231611
<ALLOWANCES> 0
<INVENTORY> 4334
<CURRENT-ASSETS> 307075
<PP&E> 116967
<DEPRECIATION> 90186
<TOTAL-ASSETS> 338897
<CURRENT-LIABILITIES> 69127
<BONDS> 0
<COMMON> 25958
0
0
<OTHER-SE> 535237
<TOTAL-LIABILITY-AND-EQUITY> 151172
<SALES> 639892
<TOTAL-REVENUES> 639892
<CGS> 295306
<TOTAL-COSTS> 295306
<OTHER-EXPENSES> 3688
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 108592
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 107834
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
