Page 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(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, 1996
--------------------------------
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: 1-2999
------------------------------
CHRIS-CRAFT INDUSTRIES, INC.
----------------------------
(Exact name of Registrant as specified in its charter)
Delaware 94-1461226
- ---------------------------- -------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
767 Fifth Avenue, New York, New York 10153
- ------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 421-0200
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
------- -------
As of April 30, 1996 there were 22,254,047 shares of the issuer's
Common Stock outstanding and 7,753,200 shares of the issuer's
Class B Common Stock outstanding.
<PAGE>
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<TABLE>
PART I -- FINANCIAL INFORMATION
CHRIS-CRAFT INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of dollars)
(UNAUDITED)
-------------------------------------
<CAPTION>
March 31, December 31,
1996 1995
------------- ------------
<S> <C> <C>
ASSETS
- ------
CURRENT ASSETS:
Cash and cash equivalents $ 118,068 $ 73,840
Marketable securities (substantially
all U.S. Government securities) 1,364,185 1,449,598
Accounts receivable, net 74,950 93,093
Film contract and prepaid broadcast rights 102,599 95,541
Prepaid expenses and other current assets 57,958 45,871
----------- -----------
Total current assets 1,717,760 1,757,943
----------- -----------
FILM CONTRACT AND, IN 1995, PREPAID BROADCAST
RIGHTS, less current portion 22,020 50,361
----------- -----------
PROPERTY, PLANT AND EQUIPMENT, net 51,279 49,927
----------- -----------
INTANGIBLE ASSETS 324,867 321,945
----------- -----------
OTHER ASSETS 24,778 23,677
----------- -----------
$ 2,140,704 $ 2,203,853
=========== ===========
<FN>
The accompanying notes to condensed consolidated financial statements
are an integral part of these statements.
</TABLE>
<PAGE>
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<TABLE>
PART I -- FINANCIAL INFORMATION
CHRIS-CRAFT INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands of dollars)
(UNAUDITED)
-------------------------------------
<CAPTION>
March 31, December 31,
1996 1995
------------- ------------
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' INVESTMENT
- ----------------------------------------
CURRENT LIABILITIES:
Film contracts payable within one year $ 82,345 $ 87,634
Accounts payable and other liabilities 100,874 105,682
Income taxes payable 35,893 33,211
----------- -----------
Total current liabilities 219,112 226,527
----------- -----------
FILM CONTRACTS PAYABLE AFTER ONE YEAR 75,900 86,392
----------- -----------
OTHER LIABILITIES 11,391 11,588
----------- -----------
MINORITY INTEREST 528,125 560,326
----------- -----------
SHAREHOLDERS' INVESTMENT:
Prior preferred stock - $1.00 dividend; currently
authorized 73,399 shares; outstanding 73,399 shares 1,578 1,578
Convertible preferred stock - $1.40 dividend;
currently authorized 275,178 shares;
outstanding 275,178 and 275,758 shares 4,816 4,826
Class B common stock - par value $.50 per share;
authorized 50,000,000 shares; outstanding
7,790,635 and 7,652,273 shares 3,895 3,826
Common stock - par value $.50 per share; authorized
100,000,000 shares; outstanding 22,261,590 and
21,478,079 shares 11,922 11,530
Capital surplus 332,656 301,351
Retained earnings 953,844 989,181
Treasury stock, at cost (3,901) -
Increase to reflect marketable
securities at market value 1,366 6,728
----------- -----------
1,306,176 1,319,020
----------- -----------
$ 2,140,704 $ 2,203,853
=========== ===========
<FN>
The accompanying notes to condensed consolidated financial statements
are an integral part of these statements.
</TABLE>
<PAGE>
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<TABLE>
CHRIS-CRAFT INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands of dollars except per share data)
(UNAUDITED)
-----------------------------------------------
<CAPTION>
Three Months
Ended March 31,
----------------------
1996 1995
---------- ----------
<S> <C> <C>
OPERATING REVENUES $ 105,650 $ 108,709
---------- ----------
OPERATING EXPENSES:
Expenses directly associated with revenues 54,990 53,989
Selling, general and administrative 32,787 30,940
---------- ----------
87,777 84,929
---------- ----------
Operating income 17,873 23,780
---------- ----------
OTHER INCOME (EXPENSE):
Interest and other income, net 23,160 20,820
Equity in United Paramount Network loss (32,754) (38,403)
---------- ----------
(9,594) (17,583)
---------- ----------
Income before income taxes
and minority interest 8,279 6,197
INCOME TAX PROVISION 4,100 2,500
---------- ----------
Income before minority interest 4,179 3,697
MINORITY INTEREST (3,804) (3,383)
---------- ----------
Net income $ 375 $ 314
========== ==========
Net income per share:
Primary $ .01 $ .01
========== ==========
Fully diluted $ .01 $ .01
========== ==========
3% Stock 3% Stock
DIVIDENDS PER COMMON SHARE Dividend Dividend
========== ==========
<FN>
The accompanying notes to condensed consolidated financial statements
are an integral part of these statements.
</TABLE>
<PAGE>
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<TABLE>
CHRIS-CRAFT INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of dollars)
(UNAUDITED)
-----------------------------------------------
<CAPTION>
Three Months
Ended March 31,
----------------------
1996 1995
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 375 $ 314
Adjustments to reconcile net income to net cash
provided from operating activities:
Film contract payments (22,683) (23,520)
Film contract amortization 22,249 17,612
Depreciation and other amortization 4,790 5,104
Equity in United Paramount Network loss 32,754 38,403
Minority interest 3,804 3,383
Other (2,361) 563
Changes in assets and liabilities:
Accounts receivable 18,143 21,388
Other assets (3,993) 2,337
Accounts payable and other liabilities (3,656) (7,678)
Income taxes 2,551 (3,813)
---------- ----------
Net cash provided from operating activities 51,973 54,093
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Disposition (purchase) of marketable securities, net 75,711 (48,838)
Investment in United Paramount Network (33,610) (38,028)
Capital expenditures, net (3,812) (852)
Other (148) (249)
---------- ----------
Net cash provided from (used in) investing activities 38,141 (87,967)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Capital transactions of subsidiaries (42,183) (20,505)
Purchase of treasury stock (4,196) (13,067)
Proceeds from option exercises 703 149
Other (210) (216)
---------- ----------
Net cash used in financing activities (45,886) (33,639)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 44,228 (67,513)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 73,840 226,183
---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 118,068 $ 158,670
========== ==========
<FN>
The accompanying notes to condensed consolidated financial statements
are an integral part of these statements.
</TABLE>
<PAGE>
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CHRIS-CRAFT INDUSTRIES, INC.
----------------------------
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
----------------------------------------------------
1. PRINCIPLES OF CONSOLIDATION:
The accompanying condensed consolidated financial statements
include the accounts of Chris-Craft Industries, Inc. and its
subsidiaries, including Chris-Craft's majority owned (75% at March 31,
1996) television broadcasting subsidiary, BHC Communications, Inc.,
and BHC's majority owned (58% at March 31, 1996) subsidiary, United
Television, Inc. (UTV). The pro rata interests of BHC and UTV
minority shareholders in the net income of the respective companies
are reflected in minority interest in the accompanying condensed
consolidated statements of income. The minority shareholders'
interests in the net assets of BHC and UTV are reflected as minority
interest in the accompanying condensed consolidated balance sheets.
Intercompany accounts and transactions have been eliminated.
The financial information included herein has been prepared by
Chris-Craft, without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission. Certain information and
footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and regulations.
However, Chris-Craft believes that the disclosures herein are adequate
to make the information presented not misleading. It is suggested
that these condensed consolidated financial statements be read in
conjunction with the financial statements and the notes thereto
included in Chris-Craft's latest annual report on Form 10-K. The
information furnished reflects all adjustments (consisting only of
normal recurring adjustments) which are, in the opinion of management,
necessary to a fair statement of the results for the interim periods.
The results for these interim periods are not necessarily indicative
of results to be expected for the full year, due to seasonal factors,
among others.
2. MARKETABLE SECURITIES:
In accordance with Statement of Financial Accounting Standards
(SFAS) No. 115, "Accounting for Certain Investments in Debt and Equity
Securities", Chris-Craft classifies its marketable securities as
available-for-sale.
At March 31, 1996, Chris-Craft's marketable securities, which
consisted substantially of U.S. Government securities, had a carrying
value of $1,362,072,000 and a fair value of $1,364,185,000. The
difference of $2,113,000 ($1,366,000 net of income taxes and minority
interests) is reflected as an increase to shareholders' investment in
the accompanying condensed consolidated balance sheet. Of the
<PAGE>
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investments in U.S. Government securities, 78% mature within one year,
95% within two years and all within three years.
At December 31, 1995, Chris-Craft's marketable securities, which
consisted substantially of U.S. Government securities, had a carrying
value of $1,435,282,000 and a fair value of $1,449,598,000. The
difference of $14,316,000 ($6,728,000 net of income taxes and minority
interests) is reflected as an increase to shareholders' investment in
the accompanying condensed consolidated balance sheet.
3. UNITED PARAMOUNT NETWORK:
In July 1994, BHC, along with Viacom Inc.'s Paramount Television
Group, formed the United Paramount Network, a fifth broadcast
television network which premiered in January 1995. BHC currently
owns 100% of UPN, and Paramount has an option exercisable through
January 15, 1997 to acquire an interest in UPN equal to that of BHC.
The option price is equivalent to approximately one-half of BHC's
aggregate cash contributions to UPN through the exercise date, plus
interest; payment may be deferred through the option expiration date.
UPN has been organized as a partnership, and BHC's partnership
interest is accounted for under the equity method. The carrying value
of such interest totalled $2,983,000 at March 31, 1996 and $2,121,000
at December 31, 1995 and is included in other assets on the
accompanying condensed consolidated balance sheets. UPN is still in
its infancy, and the cost of developing UPN is expected to remain
significant for several years.
UPN's condensed consolidated statement of operations for the
three months ended March 31, 1996 is as follows (in thousands):
Operating revenues* $ 10,908
Operating expenses* 42,602
----------
Operating loss (31,694)
Other expenses (1,060)
----------
Loss before interest
on BHC advances (32,754)
Interest on BHC advances
(eliminated in consolidation) (2,523)
----------
Net loss $ (35,277)
==========
* With respect to certain of its programming,
UPN derives no revenue and incurs no programming
expense.
<PAGE>
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4. SHAREHOLDERS' INVESTMENT:
Chris-Craft paid 3% stock dividends on its common and Class B
common stock in the respective shares of such classes on April 2,
1996. During the three months ended March 31, 1996, 88,843 shares of
Class B common stock were converted into 88,843 shares of common
stock, and 580 shares of $1.40 convertible preferred stock were
converted into 17,971 shares of common stock. In addition, 48,821
shares of common stock, including 18,039 shares held in treasury, were
issued upon exercise of stock options, and 18,039 shares of common
stock were received in partial payment of option exercises. During
the three month period, 92,500 shares of common stock were purchased
by Chris-Craft, all of which were held in treasury at March 31, 1996.
As of March 31, 1996, 1,055,402 shares of common stock and 12,899
shares of $1.00 prior preferred stock remained authorized for
purchase.
As of March 31, 1996, shares of Chris-Craft's authorized but
unissued common stock were reserved for issuance as follows:
Shares
----------
Conversion of Class B common stock 7,790,635
Conversion of $1.40 convertible preferred stock 8,784,427*
Stock options (including options
outstanding for 1,773,875 shares) 3,556,570
----------
20,131,632
==========
*Including Class B common shares.
5. COMMITMENTS AND CONTINGENCIES:
Commitments of BHC's television stations for film contracts
entered into but not available for broadcasting at March 31, 1996
aggregated approximately $187.4 million, including $55.8 million
applicable to UTV. BHC also has a commitment to invest over time up
to $65 million, including $40 million applicable to UTV, in management
buyout limited partnerships.
BHC is expected to make significant expenditures developing UPN.
See Note 3.
As set forth in Note 10 of Notes to Consolidated Financial
Statements in Chris-Craft's 1995 Annual Report, Chris-Craft has been
named as a defendant (or a "potentially responsible party") in certain
actions seeking recovery for environmental damage allegedly related to
(i) the activities (discontinued since 1983) of 50% owned Montrose
Chemical Corporation of California and (ii) the activities of Montrose
<PAGE>
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Chemical Co., a predecessor company to Chris-Craft. Chris-Craft does
not presently consider liability to be "probable" in any of the
Montrose related matters and no amount has been reserved in Chris-
Craft's financial statements.
6. INCOME PER SHARE:
Computations of income per share, all of which give retroactive
effect to the April 1996 3% stock dividend, are as follows (in
thousands of dollars except per share amounts):
<TABLE>
<CAPTION>
Three Months
Ended March 31,
-------------------------
1996 1995
----------- ------------
<S> <C> <C>
PRIMARY:
- --------
Average outstanding common
and Class B common shares 29,984,788 30,152,126
Assumed exercise of stock options 489,214 167,379
----------- -----------
Total shares used in computation 30,474,002 30,319,505
=========== ===========
Net income $ 375 $ 314
Preferred stock dividend requirements (114) (117)
----------- -----------
$ 261 $ 197
=========== ===========
Primary income per share $ .01 $ .01
=========== ===========
FULLY DILUTED:
- --------------
Average outstanding common
and Class B common shares 29,984,788 30,152,126
Assumed conversion of
$1.40 preferred stock 8,790,748 9,013,377
Assumed exercise of stock options 489,214 167,379
----------- -----------
Total shares used in computation 39,264,750 39,332,882
=========== ===========
Net income $ 375 $ 314
Preferred stock dividend requirements (18) (18)
----------- -----------
$ 357 $ 296
=========== ===========
Fully diluted income per share $ .01 $ .01
=========== ===========
</TABLE>
<PAGE>
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CHRIS-CRAFT INDUSTRIES, INC.
----------------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
------------------------------------
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
------------------------------------------------
Liquidity and Capital Resources
- -------------------------------
Chris-Craft's financial position is strong and highly liquid. Cash and
marketable securities totalled $1.5 billion at March 31, 1996, and
Chris-Craft has no debt outstanding. Chris-Craft's 75% owned
television broadcasting subsidiary, BHC Communications, Inc., is
currently expending significant funds to develop the United Paramount
Network, but cash flow provided from BHC's operating activities has
substantially exceeded BHC's UPN funding since the network's January
1995 launch.
Chris-Craft's operating cash flow is generated primarily by the
Television Division's core television station group. Broadcast cash
flow reflects station operating income plus depreciation and film
contract amortization less film contract payments. The relationship
between film contract payments and related amortization may vary
greatly between periods (payments exceeded amortization by $.4 million
and $5.9 million, respectively, in the 1996 and 1995 first quarters),
and is dependent upon the mix of programs aired and payment terms of
the stations' contracts. Reflecting such $5.5 million variance between
the first quarters of 1996 and 1995, broadcast cash flow declined only
10% to $26.2 million from $29.2 million in 1995, while station
earnings declined 25%, as explained below. Although broadcast cash
flow is often used in the broadcast television industry as an
ancillary measure, it is not synonymous with operating cash flow
computed in accordance with generally accepted accounting principles,
and should not be considered alone or as a substitute for measures of
performance computed in accordance with generally accepted accounting
principles.
Chris-Craft's cash flow additionally reflects earnings associated with
its cash and marketable securities, most of which are held by BHC.
Cash and marketable securities totalled $1.5 billion at March 31,
1996, virtually unchanged from December 31, 1995. First quarter
operating cash flow of $52.0 million was more than offset by BHC's UPN
funding of $33.6 million and treasury stock purchases by BHC and UTV
totalling $44.6 million.
BHC generates most of Chris-Craft's consolidated cash flow. Parent
company obligations consist solely of corporate office expenditures,
current and accrued. Parent company cash balances were augmented in
January 1993 upon the receipt of $36 million in dividends from BHC,
which paid a special cash dividend of $2.00 per share, and were again
augmented in April 1995 upon the receipt of $18 million in dividends
<PAGE>
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from BHC, which paid a special cash dividend of $1.00 per share. BHC
has no plan to pay regular dividends. Chris-Craft parent company cash
balances are substantially in excess of normal operating requirements.
Since April 1990, BHC's Board of Directors has authorized the purchase
of up to 6,800,000 Class A common shares. Through March 31, 1996,
5,220,787 shares were purchased for a total cost of $324.8 million,
including $28.3 million in 1996. From 1993 through March 31, 1996, UTV
purchased 1,160,676 of its common shares at an aggregate cost of $66.9
million, and at March 31, 1996, 1,023,349 UTV shares remained
authorized for purchase.
Chris-Craft intends to expand its operations in the media,
entertainment and communications industries and to explore business
opportunities in other industries. Chris-Craft believes it is capable
of raising significant additional capital to augment its already
substantial financial resources, if desired, to fund such additional
expansion.
In July 1994, BHC, along with Viacom Inc.'s Paramount Television
Group, formed UPN, a fifth broadcast television network which
premiered in January 1995. BHC currently owns 100% of UPN, and
accounts for UPN under the equity method, since Paramount has an
option through January 15, 1997 to acquire an interest in UPN equal to
that of BHC. The option price is equivalent to approximately one-half
of BHC's aggregate cash contributions to UPN through the exercise
date, plus interest. BHC expenditures related to UPN totalled $128.6
million in 1995 and $33.6 million in the first quarter of 1996. UPN is
still in its infancy, and the cost of developing UPN is expected to
remain significant for several years.
Chris-Craft's television stations make commitments for programming
that will not be available for telecasting until future dates. At
March 31, 1996, commitments for such programming totalled
approximately $187.4 million, including $55.8 million applicable to
UTV. BHC also has a commitment to invest over time up to $65 million,
including $40 million applicable to UTV, in management buyout limited
partnerships. Chris-Craft capital expenditures generally have not been
material in relation to its financial position, and the related
capital expenditure commitments at March 31, 1996 (including any
related to UPN) were not material. Chris-Craft expects that its
expenditures for UPN, future film contract commitments and capital
requirements for its present business will be satisfied primarily from
operations, marketable securities or cash balances.
As set forth in Note 5, Chris-Craft has been named as a defendant (or
"potentially responsible party") in certain actions seeking recovery
for environmental damage allegedly related to (i) the activities
(discontinued since 1983) of 50% owned Montrose Chemical Corporation
of California and (ii) the activities of Montrose Chemical Co., a
<PAGE>
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predecessor company to Chris-Craft. As further set forth in Note 5,
Chris-Craft does not presently consider liability to be "probable" in
any of the Montrose related matters, and no amount has been reserved
in Chris-Craft's financial statements.
Results of Operations
- ---------------------
Chris-Craft first quarter net income was $375,000, or $.01 per share,
compared to last year's $314,000, also $.01 per share. Results for
the quarter reflect a smaller start-up loss at United Paramount
Network and an increase in income earned on its substantial cash and
marketable securities holdings. These positive factors offset a
decline in operating income at Chris-Craft's core Television Division.
Operating revenues and operating income for the 1996 and 1995 first
quarters are as follows (in thousands):
Operating Revenues Operating Income
------------------ ------------------
1996 1995 1996 1995
-------- -------- -------- --------
First Quarter
Television Division $101,045 $104,475 $ 21,335 $ 26,247
Industrial Division 4,605 4,234 441 355
Corporate and other - - (3,903) (2,822)
-------- -------- -------- --------
$105,650 $108,709 $ 17,873 $ 23,780
======== ======== ======== ========
The rather lackluster demand for television advertising on Chris-
Craft's stations which prevailed during the fourth quarter of 1995
continued into the first quarter of 1996, especially in Los Angeles
and San Francisco. Revenues at Chris-Craft's eight station group
accordingly declined 5%, to $98,985,000 from $104,475,000 and, after a
4% increase in operating expenses, first quarter station earnings
declined 25%, to $24,568,000 from $32,703,000. Television Division
operating income declined only 19%, to $21,335,000 from $26,247,000,
as the Division's television production subsidiaries recorded improved
results.
There are preliminary signs of strengthening demand for television
advertising at Chris-Craft stations, and the upcoming Summer Olympic
Games and political contests are expected to have a further positive
effect on advertising demand later in the year.
Industrial Division operating revenues rose 9%, to $4,605,000 from
$4,234,000 as both of its businesses, film manufacturing and health
care products distribution, posted revenue gains. The Division's
operating income increased 24%, to $441,000 from $355,000.<PAGE>
Page 13
After Chris-Craft corporate office expense, which increased in 1996,
primarily due to a rise in retirement plan expense, consolidated
operating income declined 25%, to $17,873,000 from last year's
$23,780,000.
Interest and other income in the first quarter rose to $23,160,000
from last year's $20,820,000, primarily reflecting marketable
securities gains.
UPN's first quarter loss declined to $32,754,000 from $38,403,000, as
last year's amount included nonrecurring promotion expenses related to
the network's January 1995 launch. UPN, which is accounted for under
the equity method, is expected to incur substantial start-up losses
for several more years.
Minority interest reflects the interest of shareholders other than
Chris-Craft in the net income of BHC, 75% owned by Chris-Craft at
March 31, 1996 and 73% owned at March 31, 1995, and the interest of
shareholders other than BHC in the net income of UTV, 58% owned by BHC
at March 31, 1996 and 56% owned at March 31, 1995.
<PAGE>
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CHRIS-CRAFT INDUSTRIES, INC.
----------------------------
PART II. OTHER INFORMATION
--------------------------
Item 6. Exhibits and Reports on Form 8-K.
---------------------------------
(a) The following exhibits are filed herewith:
Exhibit No. Description
----------- -----------
27 Financial Data Schedule
(b) No report on Form 8-K was filed during the quarter for
which this report is filed.
SIGNATURE
---------
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.
CHRIS-CRAFT INDUSTRIES, INC.
----------------------------
(Registrant)
By: /s/ JOELEN K. MERKEL
----------------------------
Joelen K. Merkel
Vice President and Treasurer
(Principal Accounting Officer)
Date: May 15, 1996
<PAGE>
Page 15
EXHIBIT INDEX
Incorporated by
Reference to: Exhibit No. Exhibit
- ------------- ----------- -------
27 Financial Data Schedule
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1
<CASH> 118068
<SECURITIES> 1364185
<RECEIVABLES> 80921
<ALLOWANCES> 5971
<INVENTORY> 2722
<CURRENT-ASSETS> 1717760
<PP&E> 141157
<DEPRECIATION> 89878
<TOTAL-ASSETS> 2140704
<CURRENT-LIABILITIES> 219112
<BONDS> 0
0
6394
<COMMON> 15816
<OTHER-SE> 1283966
<TOTAL-LIABILITY-AND-EQUITY> 2140704
<SALES> 4605
<TOTAL-REVENUES> 105650
<CGS> 3173
<TOTAL-COSTS> 87777
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 8279
<INCOME-TAX> 4100
<INCOME-CONTINUING> 375
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 375
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
