SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended July 26, 1997 Commission File Number 2-37706
Bowles Fluidics Corporation
(exact name of registrant as specified in its charter)
MARYLAND 52-0741762
(State or other jurisdiction of (I..R.S. Employer
incorporation or organization) Identification No.)
6625 Dobbin Road, Columbia, Maryland 21045
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (410) 381-0400
Indicate by check mark whether the registrant has filed all annual, quarterly
and other reports required to be filed with the Commission within the past 90
days and in addition has filed the most recent annual report required to be
filed.
Yes X No
Indicate the number of shares outstanding of each issurer's classes of common
stock, as of July 26, 1997.
Class Outstanding at July 26, 1997
------------------ ----------------------------
Common Stock, $.10 12,640,011 shares
<PAGE>
INDEX
BOWLES FLUIDICS CORPORATION
FOR THE NINE MONTHS ENDED JULY 26, 1997
Page
PART I. Financial Information Number
------
Item 1. Financial Statements
Consolidated Statements of Income
For the three and nine months ended
July 26, 1997, and July 27, 1996.......... 3
Consolidated Balance Sheets
July 26, 1997, and October 26, 1996....... 4
Consolidated Statements of Cash Flows
For the nine months ended
July 26, 1997, and July 27, 1996........... 5
Notes to Consolidated Financial Statements.... 6
Item 2. Management's Discussion and Analysis
of Results of Operations and Financial
Condition..................................... 7
PART II. Other Information
Item 6.Exhibits and Reports on Form 8-K................ 11
Exhibit 11.................................... 12
Exhibit 20.................................... 14
2
<PAGE>
BOWLES FLUIDICS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
-------------------------- --------------------------
July 26, July 27, July 26, July 27,
1997 1996 1997 1996
----------- ----------- ---------- ------------
<S> <C>
Net sales $ 4,387,924 $ 4,101,894 $ 13,615,319 $ 13,339,251
Cost of sales 3,130,132 2,905,128 9,325,310 8,839,888
--------------- ------------- ------------- -------------
Gross profit 1,257,792 1,196,766 4,290,009 4,499,363
Selling, general and
administrative expenses 672,013 987,879 2,409,483 2,819,659
Research and development costs 225,055 275,838 756,563 854,844
--------------- ------------- ------------- -------------
Operating income (loss) 360,724 (66,951) 1,123,963 824,860
Interest income 30,363 24,590 81,551 62,449
Other (expense), net (3,990) (11,561) (5,839) (17,590)
--------------- ------------- ------------- -------------
Income (loss) before taxes 387,097 (53,922) 1,199,675 869,719
Provision (credit) for income taxes 140,345 (35,148) 432,687 297,688
--------------- ------------- ------------- -------------
Net income (loss) 246,752 (18,774) 766,988 572,031
Preferred stock
dividends accrued 18,662 18,662 55,985 55,986
--------------- ------------- ------------- -------------
Income (loss) applicable to
common shareholders $ 228,090 $ (37,436) $ 711,003 $ 516,045
=============== ============= ============= =============
Primary earnings per common share $ .02 $ .00 $ .06 $ .04
=============== ============= ============= =============
Full diluted earnings per common share $ .02 $ .00 $ .05 $ .03
=============== ============= ============= =============
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
BOWLES FLUIDICS CORPORATION
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Unaudited) (Audited)
July 26, October 26,
1997 1996
------------ ------------
<S> <C>
ASSETS
Current
Cash and cash equivalents $ 1,087,565 $ 1,287,110
Investments available for sale 1,541,594 577,837
Accounts receivable 2,195,555 2,775,658
Inventories 2,148,154 1,986,065
Other current assets 408,285 556,525
---------------- ----------------
Total current assets 7,381,153 7,183,195
---------------- ----------------
Property and equipment, net 3,535,664 3,428,765
Other assets 99,595 107,892
---------------- ----------------
Total assets $ 11,016,412 $ 10,719,852
================ ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable - trade $ 696,304 $ 1,104,511
Accrued expenses and other liabilities 1,838,061 1,389,356
Income taxes payable - 40,000
---------------- ----------------
Total current liabilities 2,534,365 2,533,867
Other liabilities 326,992 746,433
--------------- ----------------
Total liabilities $ 2,861,357 $ 3,280,300
--------------- ----------------
Commitments and contingencies
Stockholder's Equity
8% Convertible preferred stock 933,080 933,080
Common stock 1,264,001 1,261,001
Additional paid-in capital 2,728,082 2,726,583
Retained earnings
($2,407,467 deficit eliminated
at 10/29/94) NOTE 5 3,229,892 2,518,888
--------------- ----------------
Total stockholders' equity 8,155,055 7,439,552
--------------- ----------------
Total liabilities and stockholders' equity $ 11,016,412 $ 10,719,852
=============== ================
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
BOWLES FLUIDICS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
<TABLE>
<CAPTION>
For The Nine Months Ended
-------------------------
July 26, July 27,
1997 1996
------------ ---------
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 766,988 $ 572,031
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 699,690 548,731
Deferred income taxes - (294,600)
Loss on disposal of assets 2,891 15,460
Accretion of interest on investments (1,580) (10,832)
------------ ------------
1,467,989 830,790
Change in operating accounts: ------------ ------------
Accounts receivable 580,103 659,052
Inventories (162,089) 234,682
Other assets 145,444 (60,993)
Accounts payable (408,207) (398,978)
Accrued expenses and other liabilities 44,609 799,204
Income taxes payable (40,000) (111,441)
------------ ------------
Changes in operating accounts 159,860 1,121,526
------------ ------------
Net cash provided by operating activities 1,627,849 1,952,316
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (791,063) (898,095)
Patent and trademark expenditures (4,433) -
Proceeds from sale of equipment 425 -
Purchase of investments (1,540,014) (566,664)
Proceeds from sale of investments 577,837 489,058
------------ ------------
Net cash used in investing activities (1,757,248) (975,701)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payment of debt - (271,668)
Preferred stock dividend (74,646) (74,648)
Proceeds from issuance of common stock 4,500 -
------------ ------------
Net cash used in financing activities (70,146) (346,316)
------------ ------------
Net increase (decrease) in cash and cash
equivalents (199,545) 630,299
CASH AND CASH EQUIVALENTS
- Beginning of period 1,287,110 676,981
------------ ------------
- End of period $ 1,087,565 $ 1,307,280
============ ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
BOWLES FLUIDICS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - GENERAL
In the opinion of the Company, the accompanying unaudited financial
statements contain all adjustments (consisting of only normal recurring
adjustments) necessary to present fairly the financial position of July 26,
1997, and the results of operations and cash flows for three and nine months
ended July 26, 1997, and July 27, 1996. Certain amounts in the FY1996 financial
statements have been reclassified to conform to the FY1997 financial statement
presentation.
While the Company believes that the disclosures presented are adequate to
make the information not misleading, it is suggested that these financial
statements be read in conjunction with the financial statements and the notes
included in the Company's latest annual report on Form 10-K.
NOTE 2 - INVENTORIES
Inventories are comprised of:
July 26, October 26,
1997 1996
----------- -------------
Raw material $ 733,151 $ 678,494
Work and tooling in process 615,402 242,369
Finished goods 799,601 1,065,202
----------- ---------
Total $ 2,148,154 $ 1,986,065
=========== ===========
NOTE 3 - PROPERTY AND EQUIPMENT, AND ACCUMULATED DEPRECIATION
Property and Equipment, and Accumulated Depreciated are comprised of:
July 26, October 26,
1997 1996
----------- -----------
Production machinery and equipment $ 4,800,478 $ 4,397,018
Office furniture and equipment 2,310,319 1,992,152
Laboratory and machine shop equipment 1,436,910 1,395,837
Leasehold improvements 807,046 796,928
----------- ------------
Total property and equipment 9,354,753 8,581,935
Less accumulated depreciation (5,819,089) (5,153,170)
---------- ------------
Net property and equipment $ 3,535,664 $ 3,428,765
=========== ============
NOTE 4 - COMMON STOCK
In January 1997, an officer of the Company exercised stock options and
purchased 30,000 shares of common stock at the exercise price of $.15 per share.
NOTE 5 - QUASI-REORGANIZATION
Effective October 29, 1994, the Board of Directors approved a
quasi-reorganization which had the impact of eliminating the retained earnings
deficit as an adjustment to the additional paid-in capital.
6
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The following discussion should be read in conjunction with the attached
financial statements and notes thereto, and with the Company's audited financial
statements and notes thereto for the fiscal year ended October 26, 1996.
RESULTS OF OPERATIONS
Third Quarter FY 1997 Compared with Third Quarter FY 1996
Record sales for the Company's third quarter, which includes the annual vacation
shutdown period for the automotive industry, was achieved this year but all due
to higher sales of production tooling. Product sales were slightly lower than
last year. Net income, however, was significantly higher, due to the running of
the manufacturing facilities at higher levels more efficiently and the absence
of last year's additional charge related to the planned termination of the
Company's sales agreement with one of its manufacturer's representatives.
Net sales in the third quarter of FY 1997 rose to $4,387,924, 7% above last
year's third quarter sales of $4,101,894. Net income was $246,752, $265,526
greater than last year's third quarter loss of $18,774.
Sales of light vehicle windshield washer and defroster nozzles of $3,983,944
decreased 1% from last year's third quarter sales of $4,012,500. A 5% increase
in washer nozzle shipments, approximately half of which was due to the sales of
new nozzles for a transplant manufacturer in the U.S., was more than offset by a
39% decrease in defroster nozzle shipments as certain parts were discontinued.
Sales of prototype and production tooling of $403,979 for future product
manufacturing increased significantly over last year's third quarter sales of
$89,394 due to the timing of the start-up of a number of new washer nozzle
programs.
Gross profit in this year's third quarter was $1,257,792, 5% above last year's
third quarter profit of $1,196,766. The Company's production facilities ran at a
19% higher level than the previous year's third quarter and this provided
efficiencies that enhanced the financial results for the quarter. On the other
hand, greater spending was incurred for engineering and other support activities
related to the customization of new products, both washer nozzles and air
conditioning outlets.
Selling, general and administrative expenses of $672,013 for the fiscal year
1997 third quarter were 32% lower than those for the prior year's third quarter
due to the lack of last year's $340,000 additional charge related to the planned
termination of the Company's sales agreement with one of its manufacturer's
representatives. Research and development costs at 5.1% of net sales were
$225,055, 18% below last year's third quarter as a special program for the
improvement of windshield washer nozzles was completed last year and less
spending was incurred for nonautomotive product development. Greater spending,
however, was made for development of the new air conditioning outlet.
7
<PAGE>
Operating income increased $427,675 to $360,724 in this year's third quarter
from a loss in the previous year's third quarter of $66,951.
Provision for income taxes, both federal and state, was determined based upon an
estimate of the total year's pretax income using the same tax rates for both
this year and last year.
Nine Months Ended July 26, 1997, Compared with Nine Months Ended July 27, 1996
For the first nine months of the 1997 fiscal year ended July 26, 1997, net sales
were only slightly higher and net income was 34% higher since this year's
results did not include last year's additional charge for termination
commissions, even though expenses rose in several areas.
Net sales for the first nine months of fiscal year 1997 were $13,615,319, 2%
above last year's first nine months sales of $13,339,251. Net income, however,
increased 34% to $766,988 from the prior year's first nine months results of
$572,031.
Sales of light vehicle windshield washer and defroster nozzles of $12,924,127
increased 1% in the first nine months of FY 1997 compared with $12,824,542 in
the same period the prior year. Stronger shipments of washer nozzles were offset
by lower shipments of defroster nozzles as certain parts were discontinued.
Technical services sales of product design and prototype and production tooling
related to future product manufacturing increased 34% to $691,191 from last
year's first nine month sales of $514,709 due to the reimbursement of part of
the design costs for a new air conditioning outlet. The Company has been
selected as the supplier of automotive air conditioning outlets for two future
vehicles scheduled for production by one customer starting in 1999 and by
another in 2000.
Gross profit in the first nine months of the 1997 fiscal year declined 5% to
$4,290,009 from $4,499,363 in the similar 1996 period as a result of higher
spending on engineering and the support activities for the customization of new
windshield washer nozzles and air conditioning outlets. The current year's gross
profit was also improved by the achievement of greater manufacturing
efficiencies.
Selling, general and administrative expenses were $2,409,483 in the first nine
months of fiscal year 1997, $410,176 or 15% lower than in the similar 1996
period due to the lack of last year's $760,000 additional charge related to the
planned termination of the Company's sales agreement with two of its
manufacturer's representatives. These expenses also increased from the addition
of sales personnel as well as increases in professional services for operational
improvements and long-range planning. Research and development costs at 5.6% of
net sales decreased 12% as less spending was incurred for washer nozzle
improvement and nonautomotive product development but more was spent for
development of the air conditioning outlet.
Operating income of $1,123,963 in this year's first nine months compared with
$824,860 in the similar period last year, a 36% increase.
Provision for income taxes, both federal and state, was determined based upon an
estimate of the total year's pretax income. The effective tax rates for both
years' nine months were essentially the same.
8
<PAGE>
FINANCIAL CONDITION
The Company's position in cash, cash equivalents, and current investments
available for sale on July 26, 1997, reached $2,629,159, an increase of $764,212
over the previous fiscal year end of October 26, 1996. The working capital of
$4,846,788 at July 26, 1997, increased $197,460 from the last fiscal year end.
The current ratio rose from 2.8 to 2.9 during the first nine months of FY 1997.
From the previous fiscal year end, accounts receivable declined as a result of
the timing of receipts as well as lower sales prior to July 26, 1997, versus
October 26, 1996. Accounts payable decreased as a result of lower business
activity compared to the previous year end.
Cash provided by operating activities was $1,627,849 in the first nine months of
fiscal year 1997 compared with $1,952,316 in the last fiscal year's similar
period. There were two principal differences in cash flow: one was the
additional investment in product design work and tooling inventories scheduled
for future sales; the other was the lower net income excluding the additional
expense last year related to the termination of the Company's sales agreement.
This expense was not paid out last year, but rather payment started May 15 this
year and will continue for one year.
Capital expenditures were $791,063 in this fiscal year's first nine months,
$107,032 less than the comparable period last year. The Company's management
believes that capital expenditures for the 1997 fiscal year as a whole will be
approximately equal to or less than the prior year.
North American light vehicle production (excluding Mexican output) by the three
major U.S. automotive companies, which generates most of the Company's sales,
increased 7% in the first calendar quarter of 1997 versus the same period in
1996 and decreased 4% in the second quarter. Production for the third calendar
quarter of 1997 is forecasted to decrease 3% from last year's third quarter.
The Company's management believes that the present and planned production
capacity should be satisfactory to meet the anticipated demands referred to
above, as well as near-term new product deliveries. Cash flow from operations as
well as available cash is expected to provide the funds needed for near-term
working capital requirements and capital expenditures.
FORWARD-LOOKING STATEMENTS
This report contains certain forward-looking statements subject to risks and
uncertainties which could cause actual results to differ materially from those
anticipated. Readers are cautioned not to place undue reliance on those
forward-looking statements which speak only as of the date of this report.
9
<PAGE>
NEW ACCOUNTING STANDARDS
In 1997, the Financial Accounting Standards Board issued the following
Statements of Financial Accounting Standards:
No. 128 - "Earnings per Share"
This statement, which becomes effective for fiscal years ending after December
15, 1997, replaces the presentations of primary earnings per share with a
presentation of basic earnings per share and also requires dual presentation of
basic and diluted earnings per share on the face of the income statement for all
entities with complex capital structures and requires a reconciliation of the
numerator and denominator of the basic earnings per share computation to the
numerator and denominator of the diluted earnings per share computation. The
adoption of this Standard would not have had a material effect on the Company's
computation of earnings per share for the three- and nine-month periods ended
July 26, 1997, and July 27, 1996.
No. 131 - "Disclosures About Segments of an Enterprise and Related Information"
This statement becomes effective for fiscal years ending after December 15,
1997, and changes the way public companies report information about segments of
their business in their annual financial statements and requires them to report
selected segment information in their quarterly reports issued to shareholders.
10
<PAGE>
BOWLES FLUIDICS CORPORATION
PART II. OTHER INFORMATION
FOR THE NINE MONTHS ENDED JULY 26, 1997
Item 6. Exhibits and Reports on Form 8-K
Exhibit Description
------- -----------
(a) Exhibit 11 Calculation of Earnings
Per Common Share
Exhibit 20 Report furnished to Security Holders
(b) Reports on Form 8-K None
11
<PAGE>
BOWLES FLUIDICS CORPORATION - EXHIBIT 11
CALCULATION OF EARNINGS PER SHARE
A. PRIMARY EARNINGS PER COMMON SHARE
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
-------------------------- -------------------------
July 26, July 27, July 26, July 27,
1997 1996 1997 1996
-------- -------- ------- -------
<S> <C>
Calculation of net income:
Net income (loss) $ 246,752 $ (18,774) $ 766,988 $ 572,031
Less: Dividends on convertible
preferred stock 18,662 18,662 55,985 55,986
--------------- --------------- ---------------- -------------
Net income (loss) as adjusted $ 228,090 $ (37,436) $ 711,003 $ 516,045
=============== ============= ================ ============
Calculation of outstanding common shares:
Weighted average of common
shares outstanding 12,640,011 12,610,011 12,633,111 12,610,011
Add: Assumed exercise of stock
options 34,346 78,457 45,284 91,233
--------------- --------------- ---------------- ---------------
Number of common shares
outstanding adjusted 12,674,357 12,688,468 12,678,395 12,701,244
=============== =============== ================ ===============
Primary earnings per common share $ .02 $ .00 $ .06 $ .04
=============== ================ ================ ===============
</TABLE>
12
<PAGE>
BOWLES FLUIDICS CORPORATION - EXHIBIT 11
CALCULATION OF EARNINGS PER COMMON SHARE (continued)
B. FULLY DILUTED EARNINGS PER COMMON SHARE
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
----------------------------- ----------------------------
July 26, July 27, July 26, July 27,
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C>
Net income (loss) $ 246,752 $ (18,774) $ 766,988 $ 572,031
=========== =========== =========== ===========
Calculation of outstanding common shares:
Weighted average of common
shares outstanding 12,640,011 12,610,011 12,633,111 12,610,011
Add: Assumed conversion of
preferred stock 3,732,320 3,732,320 3,732,320 3,732,320
Assumed exercise of
stock options 38,615 78,457 45,284 91,233
----------- ----------- ----------- -----------
Number of common shares
outstanding adjusted 16,410,946 16,420,788 16,410,715 16,433,564
=========== =========== =========== ===========
Fully diluted earnings per share $ .02 $ .00 $ .05 $ .03
=========== =========== =========== ===========
</TABLE>
13
<PAGE>
Exhibit 20
BOWLES FLUIDICS CORPORATION
6625 Dobbin Road, Columbia, Maryland 21045-4707 USA
Phone: 410-381-0400 Fax: 410-381-2718
September 9, 1997
TO THE STOCKHOLDERS OF BOWLES FLUIDICS CORPORATION:
Larger tooling sales more than compensated for a 1% decrease in product sales to
produce record sales for the third quarter compared to last year. A 5% increase
of washer nozzles sales nearly balanced the 39% decrease of defroster sales
because of the phase-out of certain lines.
Also in this period, the start-up of a washer nozzle program for a major
transplant car line helped to mitigate negative effects of the GM and Chrysler
strikes.
For the second time, BFC has been selected as the supplier of air conditioning
outlets for a new car line. Production for this new line is scheduled to
commence in the year 2000, approximately one year following the first program.
We continue to pursue other AC outlet opportunities as well as those in the
household and industrial fields.
Sincerely,
Ronald Stouffer
President
RS:lto
Enclosure
14
<PAGE>
BOWLES FLUIDICS CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
July 26, 1997 July 27, 1996 July 26, 1997 July 27, 1996
------------- ------------- ------------- -------------
<S> <C>
Net Sales $4,387,924 $4,101,894 $13,615,319 $13,339,251
Cost of Sales 3,130,132 2,905,128 9,325,310 8,839,888
Selling, General and Administrative Expenses 672,013 987,879 2,409,483 2,819,659
Research and Development Costs 225,055 275,838 756,563 854,844
Interest (Income) and Other (Income) & Expense, Net (26,373) (13,029) (75,712) (44,859)
---------- ---------- ----------- -----------
Income (Loss) before Taxes $ 387,097 $ (53,922) $ 1,199,675 $ 869,719
Provision (Credit) for Income Taxes 140,345 (35,148) 432,687 297,688
---------- ---------- ----------- -----------
Net Income (Loss) $ 246,752 $ (18,774) $ 766,988 $ 572,031
---------- ---------- ----------- -----------
Income (Loss) applicable to Common Shareholders $ 228,090 $ (37,436) $ 711,003 $ 516,045
========== ========== =========== ===========
Net Income per Common Share
Primary $ 0.02 $ - $ 0.06 $ 0.04
Fully Diluted $ 0.02 $ - $ 0.05 $ 0.03
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
CONSOLIDATED BALANCE SHEETS
Unaudited Audited
July 26, 1997 October 26, 1996
------------- ----------------
Assets
Cash and Cash Equivalents $ 1,087,565 $ 1,287,110
Investments 1,541,594 577,837
Accounts Receivable 2,195,555 2,775,658
Inventories 2,148,154 1,986,065
Other Current Assets 408,285 556,525
----------- -----------
Total Current Assets 7,381,153 7,183,195
Property, Plant and Equipment, Net 3,535,664 3,428,765
Other Assets 99,595 107,892
----------- -----------
Total Assets $11,016,412 $10,719,852
=========== ===========
Liabilities and Stockholders' Equity
Accounts Payable--Trade $ 696,304 $ 1,104,511
Accrued Expenses and Other Liabilities 1,838,061 1,389,356
Income Taxes Payable - 40,000
Total Current Liabilities 2,534,365 2,533,867
Other Liabilities 326,992 746,433
----------- -----------
Total Liabilities 2,861,357 3,280,300
----------- -----------
8% Convertible Preferred Stock 933,080 933,080
Common Stock 1,264,001 1,261,001
Additional Paid-in Capital 2,728,082 2,726,583
Retained Earnings 3,229,892 2,518,888
----------- -----------
Stockholders' Equity 8,155,055 7,439,552
----------- -----------
Total Liabilities and
Stockholders' Equity $11,016,412 $10,719,852
=========== ===========
15
<PAGE>
FORM 10-Q
BOWLES FLUIDICS CORPORATION
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.
BOWLES FLUIDICS CORPORATION
Date By
_________________ ______________________________
Ronald D. Stouffer
President
Date By
_________________ ______________________________
David A. Quinn
Vice President - Finance
16
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> OCT-25-1997
<PERIOD-END> JUL-26-1997
<CASH> 1,087,565
<SECURITIES> 1,541,594
<RECEIVABLES> 2,195,555
<ALLOWANCES> 0
<INVENTORY> 2,148,154
<CURRENT-ASSETS> 7,381,153
<PP&E> 9,354,753
<DEPRECIATION> 5,819,089
<TOTAL-ASSETS> 11,016,412
<CURRENT-LIABILITIES> 2,534,365
<BONDS> 0
0
933,080
<COMMON> 1,264,001
<OTHER-SE> 5,957,974
<TOTAL-LIABILITY-AND-EQUITY> 11,016,412
<SALES> 4,387,924
<TOTAL-REVENUES> 4,387,924
<CGS> 3,130,132
<TOTAL-COSTS> 4,027,200
<OTHER-EXPENSES> (26,373)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 387,097
<INCOME-TAX> 140,345
<INCOME-CONTINUING> 246,752
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 246,752
<EPS-PRIMARY> 0.02
<EPS-DILUTED> 0.02
</TABLE>
