<PAGE>
UNITED STATES 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 June 29, 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: 0-5255
COHERENT, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 94-1622541
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5100 PATRICK HENRY DRIVE, SANTA CLARA, CALIFORNIA 95054
(Address of principal executive offices) (Zip Code)
(408) 764-4000
(Registrant's telephone number, including area code)
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
------- -------
APPLICABLE ONLY TO ISSUERS INVOLVED
IN BANKRUPTCY PROCEEDINGS DURING
THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes No
------- -------
APPLICABLE ONLY TO CORPORATE ISSUES:
The number of shares outstanding of registrant's common stock, par value $.01
per share, at July 31, 1996 was 11,198,564 shares.
<PAGE>
COHERENT, INC.
INDEX
Page No.
PART I. FINANCIAL INFORMATION
Consolidated Condensed Statements of Income --
Three months and nine months ended June 29, 1996
and July 1, 1995 3
Consolidated Condensed Balance Sheets --
June 29, 1996 and September 30, 1995 4
Consolidated Condensed Statements of Cash Flows --
Nine months ended June 29, 1996 and July 1, 1995 5
Notes to Consolidated Condensed Financial Statements 6
Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
PART II. OTHER INFORMATION 12
SIGNATURES 13
2
<PAGE>
PART I. FINANCIAL INFORMATION
COHERENT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED; IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE NINE
MONTHS ENDED MONTHS ENDED
------------------ --------------------
June 29, July 1, June 29, July 1,
1996 1995 1996 1995
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET SALES $89,327 $76,247 $263,560 $201,286
COST OF SALES 43,245 38,106 128,401 100,853
- -------------------------------------------------------------------------------
GROSS PROFIT 46,082 38,141 135,159 100,433
- -------------------------------------------------------------------------------
OPERATING EXPENSES:
Research and development 9,353 8,176 27,436 22,648
Selling, general and administrative 26,018 21,810 76,450 58,280
- -------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 35,371 29,986 103,886 80,928
- -------------------------------------------------------------------------------
INCOME FROM OPERATIONS 10,711 8,155 31,273 19,505
OTHER INCOME (EXPENSE):
Interest and dividend income 556 605 1,903 1,771
Interest expense (280) (28) (943)
Foreign exchange gain (loss) 156 (110) 159 661
Other - net 1,280 69 2,109 432
- -------------------------------------------------------------------------------
TOTAL OTHER INCOME, NET 1,992 284 4,143 1,921
- -------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 12,703 8,439 35,416 21,426
PROVISION FOR INCOME TAXES 4,785 3,322 13,682 8,434
- -------------------------------------------------------------------------------
NET INCOME $ 7,918 $ 5,117 $ 21,734 $ 12,992
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET INCOME PER COMMON AND
COMMON EQUIVALENT SHARE $ .68 $ .46 $ 1.89 $ 1.19
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING 11,663 11,176 11,525 10,961
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS.
3
<PAGE>
COHERENT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(UNAUDITED; IN THOUSANDS, EXCEPT PAR VALUE PER SHARE)
<TABLE>
<CAPTION>
JUNE 29, September 30,
1996 1995
- ------------------------------------------------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 5,567 $ 20,426
Short-term investments 29,592 24,242
Accounts receivable - net of allowances of
$2,581 in 1996 and $2,834 in 1995 70,146 62,374
Inventories 67,111 52,004
Prepaid expenses and other assets 9,285 11,173
Deferred tax assets 18,591 14,733
- ------------------------------------------------------------------------
TOTAL CURRENT ASSETS 200,292 184,952
- ------------------------------------------------------------------------
PROPERTY AND EQUIPMENT 101,963 91,300
ACCUMULATED DEPRECIATION AND AMORTIZATION (50,186) (46,427)
- ------------------------------------------------------------------------
Property and equipment - net 51,777 44,873
- ------------------------------------------------------------------------
GOODWILL - net of accumulated amortization of
$5,361 in 1996 and $4,237 in 1995 10,995 10,152
OTHER ASSETS 24,335 15,897
- ------------------------------------------------------------------------
$287,399 $255,874
- ------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $ 5,451 $ 7,016
Current portion of long-term obligations 4,089 5,285
Accounts payable 12,433 11,688
Income taxes payable 4,036 4,165
Other current liabilities 56,258 50,011
- ------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 82,267 78,165
- ------------------------------------------------------------------------
LONG-TERM OBLIGATIONS 3,876 5,139
OTHER LONG-TERM LIABILITIES 10,338 9,597
MINORITY INTEREST IN SUBSIDIARIES 2,424 1,782
STOCKHOLDERS' EQUITY:
Common stock, par value $.01
Authorized - 50,000 shares
Outstanding - 11,191 in 1996
and 10,869 in 1995 111 108
Additional paid-in capital 82,428 76,225
Unrealized gain on short-term investments 171
Notes receivable from stock sales (845) (1,218)
Retained earnings 105,214 83,480
Accumulated translation adjustment 1,586 2,425
- ------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 188,494 161,191
- ------------------------------------------------------------------------
$287,399 $255,874
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS.
4
<PAGE>
COHERENT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED; IN THOUSANDS)
<TABLE>
<CAPTION>
NINE
MONTHS ENDED
---------------------------
JUNE 29, July 1,
1996 1995
- -----------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND EQUIVALENTS
OPERATING ACTIVITIES:
Net income $21,734 $12,992
Adjustments to reconcile to net cash
provided by operating activities:
Purchases of short-term investments (82,415) (55,053)
Proceeds from sales of short-term investments 77,065 54,700
Changes in assets and liabilities (13,465) 2,471
Other adjustments 5,476 (6,960)
- -----------------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 8,395 8,150
- -----------------------------------------------------------------------------
INVESTING ACTIVITIES:
Purchases of property and equipment - net (13,774) (5,349)
Purchase of Amoco assets (4,520)
Purchase of asset held for investment (4,312)
Acquisition of Japan distribution rights (5,048)
Purchase of other intangibles (1,966) (333)
Other - net (2,952) 626
- -----------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES (23,740) (13,888)
- -----------------------------------------------------------------------------
FINANCING ACTIVITIES:
Long-term debt borrowings 1,306 161
Long-term debt repayments (3,662) (4,854)
Notes payable borrowings 4,717 5,536
Notes payable repayments (5,926) (3,064)
Repayments of capital lease obligations (91) (547)
Sales of shares under employee benefit plans 4,603 4,774
- -----------------------------------------------------------------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 947 2,006
- -----------------------------------------------------------------------------
EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND EQUIVALENTS (461) (2,489)
- -----------------------------------------------------------------------------
Net decrease in cash and equivalents (14,859) (6,221)
Cash and equivalents beginning of period 20,426 27,239
- -----------------------------------------------------------------------------
CASH AND EQUIVALENTS END OF PERIOD $ 5,567 $21,018
- -----------------------------------------------------------------------------
- -----------------------------------------------------------------------------
</TABLE>
SEE ACCOMPANYING NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS.
5
<PAGE>
COHERENT, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
1. The accompanying consolidated condensed financial statements have been
prepared in conformity with generally accepted accounting principles,
consistent with those reflected in the Company's annual report to
stockholders for the year ended September 30, 1995. All adjustments
necessary for a fair presentation have been made which comprise only normal
recurring adjustments; however, interim results of operations are not
necessarily indicative of results to be expected for the year.
2. Common and equivalent per share data is based upon the weighted average
number of common shares outstanding during the period including dilutive
common share equivalents and shares issuable under the Productivity
Incentive Plan. Dilutive common stock equivalents include outstanding
stock options when the exercise price is less than the average market price
and shares subscribed under the Employee Stock Purchase Plan.
No dividends were paid in fiscal 1996 or 1995.
3. Balance Sheet Detail:
Inventories are stated at the lower of cost (first-in, first-out) or
market. Inventories are as follows:
June 29, September 30,
1996 1995
---------------------------------------------------------------
(IN THOUSANDS)
Purchased parts and assemblies $17,733 $14,840
Work-in-process 24,519 19,836
Finished goods 24,859 17,328
---------------------------------------------------------------
Net inventories $67,111 $52,004
---------------------------------------------------------------
---------------------------------------------------------------
Prepaid expenses and other assets consists of the following:
June 29, September 30,
1996 1995
-----------------------------------------------------------------
(IN THOUSANDS)
Prepaid expenses and other $ 7,642 $ 5,483
Prepaid income taxes 1,643 5,690
----------------------------------------------------------------
Prepaid expenses and other assets $ 9,285 $11,173
----------------------------------------------------------------
----------------------------------------------------------------
Other assets consist of the following:
June 29, September 30,
1996 1995
-----------------------------------------------------------------
(IN THOUSANDS)
Asset held for investment $ 9,558 $ 6,726
Intangibles and other assets 14,777 9,171
-----------------------------------------------------------------
Other assets $24,335 $15,897
-----------------------------------------------------------------
-----------------------------------------------------------------
6
<PAGE>
Other current liabilities consist of the following:
June 29, September 30,
1996 1995
-----------------------------------------------------------------
(IN THOUSANDS)
Accrued expenses and other $18,697 $16,085
Accrued payroll and benefits 16,557 15,889
Reserve for warranty 10,083 6,856
Deferred income 9,245 8,595
Customer deposits 1,676 2,586
-----------------------------------------------------------------
Other current liabilities $56,258 $50,011
-----------------------------------------------------------------
-----------------------------------------------------------------
Other long-term liabilities consist of the following:
June 29, September 30,
1996 1995
-----------------------------------------------------------------
(IN THOUSANDS)
Deferred tax liabilities $ 4,298 $ 4,679
Deferred income and other 3,554 2,449
Environmental remediation costs 2,486 2,469
----------------------------------------------------------------
Other long-term liabilities $10,338 $ 9,597
----------------------------------------------------------------
----------------------------------------------------------------
4. Certain claims and lawsuits arising in the ordinary course of business have
been filed or are pending against the Company. In the opinion of
management, all such matters have been adequately provided for, are without
merit, or are of such kind that if disposed of unfavorably, would not have
a material adverse effect on the Company's consolidated financial position
or results of operations.
The Company, along with several other companies, has been named as a party
to a remedial action order issued by the California Department of Toxic
Substance Control relating to soil and groundwater contamination at and in
the vicinity of the Stanford Industrial Park in Palo Alto, California,
where the Porter Drive facility is located. The responding parties to the
Regional Order (including the Company) have completed Remedial
Investigation and Feasibility Reports, which were approved by the State of
California. The responding parties have installed four remedial systems
and have reached agreement with responding parties on final cost sharing.
The Company was also named, along with other parties, to a remedial action
order for the Porter Drive facility site itself in the Stanford Industrial
Park. The State of California has approved the Remedial Investigation
Report, Feasibility Study Report, Remedial Action Plan Report and Final
Remedial Action Report prepared by the Company for this site. The Company
has been operating remedial systems at the site to remove subsurface
chemicals since April 1992.
Management believes that the Company's probable, nondiscounted net
liability at June 29, 1996 for remaining costs associated with the above
environmental matters is $1.3 million which has been previously accrued.
This amount consists of total estimated probable costs of $2.7 million
($0.2 million included in other current liabilities and $2.5 million
included in other long-term liabilities) reduced by estimated minimum
probable recoveries of $1.4 million included in other assets from other
parties named to the order. Based on currently available information, the
Company believes that costs in excess of amounts accrued, if any, relating
to the investigation and remedial action which may be required by the
agencies of the State of California, will not
7
<PAGE>
have a material adverse effect on the consolidated financial position or
results of operations of the Company.
5. Certain prior year amounts have been reclassified to conform with the
current quarter presentation.
8
<PAGE>
COHERENT, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
The Company operates in a technologically advanced, dynamic and highly
competitive environment. The Company's future operating results are and will
continue to be subject to quarterly variations based on a variety of factors,
many of which are beyond the Company's control, including fluctuations in
customer orders and foreign currency exchange rates, among others. While the
Company attempts to identify and respond to these conditions in a timely manner,
they represent significant risks to the Company's performance. In particular,
the Company has experienced in recent quarters significant increases in orders,
sales and profits which it believes has contributed to the increase in its stock
price over this period. However, if additional orders fail to materialize
during the next, or any future, quarter, or if for any reason the Company's
shipments are disrupted (particularly near a quarter end when the Company
typically ships a significant portion of its sales), it would have a material
adverse effect on sales and earnings, and a corresponding adverse effect on the
market price of the Company's stock.
Similarly, the Company conducts a significant portion of its business
internationally. International sales accounted for 51% of the Company's sales
for the fiscal 1995 year and 52% for the first nine months of fiscal 1996. The
Company expects that international sales will continue to account for a
significant portion of its net sales in the future. A significant amount of
these sales occur through its international subsidiaries, some of which also
perform research, development, manufacturing and service functions. As a result
of the Company's international sales and operations, it is subject to the risks
of conducting business internationally, including sovereign risk and
fluctuations in foreign exchange rates, which could affect the sales price in
local currencies of the Company's products in foreign markets as well as the
Company's local costs and expenses of its foreign operations. The Company uses
forward exchange and currency swap contracts, and other risk management
techniques, to hedge its exposure to currency fluctuations relating to its
intercompany transactions and certain firm foreign currency commitments;
however, its international subsidiaries remain exposed to the economic risks of
foreign currency fluctuations.
RESULTS OF OPERATIONS
CONSOLIDATED SUMMARY
The Company's net income for the current quarter and nine months ended June
29, 1996 was $7.9 million ($.68 per share) and $21.7 million ($1.89 per share),
respectively, compared to $5.1 million ($.46 per share) and $13.0 million ($1.19
per share), in the corresponding prior year periods. Pretax income increased
$4.3 million (51%) for the current quarter and increased $14.0 million (65%) for
the nine months ended June 29, 1996, compared to the same prior year periods.
The primary factors contributing to these increases were higher sales volumes,
improved gross margins and higher other income. The effective tax rate for the
nine months ended June 29, 1996 remained at 39% compared to the same period one
year ago.
NET SALES AND GROSS PROFITS
CONSOLIDATED
The Company's sales for the third quarter and nine months ended June 29,
1996, increased $13.1 million (17%) and $62.3 million (31%), respectively,
compared to the same periods a year ago. During the current quarter and year-
to-date, international and domestic sales increased in both the Medical and
Electro-Optical business segments. Higher sales to OEM's and commercial
customers in the Electro-
9
<PAGE>
Optical segment and higher sales of lasers for aesthetic surgery in the
Medical segment were primarily responsible for the increases.
The gross profit rate increased to 52% and 51% for the current quarter and
nine months ended June 29, 1996, respectively, compared to 50% for the same
prior year periods. The increases resulted from the higher sales volumes and
manufacturing efficiencies.
ELECTRO-OPTICAL
Electro-Optical net sales increased $8.5 million (20%) and $31.1 million
(28%) for the third quarter and nine months ended June 29, 1996, respectively,
compared to the corresponding prior year periods. International sales increased
$5.9 million (24%) and $22.4 million (34%) for the current quarter and year-to-
date and increased domestically $2.6 million (14%) and $8.7 million (19%) for
both periods, compared to the same periods one year ago. Sales increased in
all three operating groups primarily due to broader market acceptance of newer
products introduced within the past two years and due in part to increased
sales associated with business acquisitions.
The gross profit rate increased to 52% for the current quarter and the nine
months ended June 29, 1996, compared to 49% for the same periods one year ago.
The increases over the prior year resulted from efficiencies gained from the
higher sales volumes, a more favorable product mix and efficiencies experienced
due to manufacturing facility enhancements at Lambda Physik GmbH.
MEDICAL
Medical net sales increased $4.6 million (14%) and $31.2 million (35%) for
the third quarter and nine months ended June 29, 1996, respectively, compared to
the corresponding prior year periods. International sales increased $3.3
million (23%) and $10.7 million (28%) during the current quarter and nine months
ended June 29, 1996, compared to the prior year periods, respectively. Domestic
sales increased $1.3 million (7%) and $20.4 million (41%) for both periods,
compared to the same prior year periods. The increases were primarily
attributable to increases in sales volumes from the reduction of substantial
backlog accumulated during fiscal 1995 and from increased sales of the
Ultrapulse for aesthetic applications.
The gross profit rate decreased to 51% during the current quarter from 52%
one year ago and remained at 51% year-to-date compared to the same prior year
period. The current quarter decrease resulted primarily from higher warranty
costs.
OPERATING EXPENSES
Third Quarter First Three Quarters
1996 1995 1996 1995
------------------------------------
(IN THOUSANDS)
Research & development $ 9,353 $ 8,176 $ 27,436 $22,648
Selling, general & administrative 26,018 21,810 76,450 58,280
- ------------------------------------------------------------------------------
Total operating expenses $35,371 $29,986 $103,886 $80,928
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Total operating expenses increased $5.4 million (18%) and $23.0 million
(28%) for the current quarter and nine months ended June 29, 1996, respectively,
compared to the same periods a year ago. As a percentage of sales, operating
expenses increased to 40% from 39% during the current quarter however decreased
to 39% from 40% year-to-date.
Research and development (R&D) expenses increased $1.2 million (14%) for
the current quarter and increased $4.8 million (21%) year-to-date, compared to
the same periods a year ago, however, R&D expenses decreased as a percentage
of sales from 11% to 10% for both the current quarter and nine
10
<PAGE>
months ended June 29, 1996, compared to the same periods a year ago. The
dollar increases were primarily due to increased headcount and activity
levels in both the Electro-Optical and Medical business segments and due to
business acquisitions in the Electro-Optical segment.
Selling, general and administration (SG&A) expenses increased $4.2 million
(19%) and $18.2 million (31%) for the current quarter and year-to-date,
respectively, compared to the same periods a year ago. However, for both
periods SG&A expenses as a percentage of sales, remained at 29% compared to the
prior year periods. The dollar increases were primarily due to increased sales
and marketing expenses resulting from increased headcount in both business
segments, higher activity levels including workshops and trade shows in the
Medical business segment, and higher costs associated with the Medical segment's
commencement of direct sales operations in Japan. Administration expense also
increased due to the business acquisitions and new sales offices.
OTHER INCOME (EXPENSE)
Other income, net, increased $1.7 million during the current quarter and
increased $2.2 million for the nine months ended June 29, 1996, compared to the
same periods last year. The increases were primarily due to the $1.6 million
third quarter sale of the Company's holdings in another medical laser company,
the capitalization of interest associated with the refurbishing of the Porter
Drive facility and the sale of capital assets throughout the fiscal year. The
Porter Drive facility will be completed by September 1, 1996.
INCOME TAXES
The Company's effective tax rate for the nine months ended June 29, 1996
and July 1, 1995 was 39%.
FINANCIAL CONDITION
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of liquidity are cash and equivalents and
short-term investments of $35.2 million as of June 29, 1996. Additional sources
of liquidity are the Company's multi-currency line of credit and bank credit
facilities totaling $29.1 million. As of June 29, 1996, the Company had $21.1
million unused and available under these credit facilities.
CHANGES IN FINANCIAL CONDITION
Cash and equivalents decreased by $14.9 million (73%) year-to-date.
Operations and changes in exchange rates generated $7.9 million. The increase
from operations is net of significant amounts used to establish the working
capital of the Company's direct sales organization in Japan. Investing
activities used $23.7 million including $13.8 million used to acquire property
and equipment (net of proceeds from dispositions of property and equipment) $5.0
million used to purchase distribution rights in Japan, $2.0 million used for
acquisitions made by the Company and $2.9 million of other investing activities,
including $2.3 million of expenditures on the refurbishment of the Porter Drive
facility and other additions, net of $0.6 million. Financing activities
provided $0.9 million including sales of shares under employee benefit plans
which generated $4.6 million, partially offset by increased repayments on
borrowings, net, of $3.7 million.
11
<PAGE>
COHERENT, INC.
PART II. OTHER INFORMATION
ITEM 1. Material developments in connection with legal proceedings.
N/A
ITEM 2. Material modification of rights of registrant's securities.
N/A
ITEM 3. Defaults on senior securities.
N/A
ITEM 4. Submission of Matters to a Vote of Security Holders.
N/A
ITEM 5. Other.
N/A
ITEM 6. Exhibits and Reports on Form 8-K.
Exhibit 27 "Financial Data Schedules" included herewith.
12
<PAGE>
COHERENT, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COHERENT, INC.
(Registrant)
Date: August 2, 1996 By: ROBERT J. QUILLINAN
-----------------------------
Robert J. Quillinan
Vice President and Chief Financial Officer
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-28-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> JUN-29-1996
<CASH> 5,567
<SECURITIES> 29,592
<RECEIVABLES> 79,362
<ALLOWANCES> 3,902
<INVENTORY> 67,111
<CURRENT-ASSETS> 200,292
<PP&E> 101,963
<DEPRECIATION> 50,186
<TOTAL-ASSETS> 287,399
<CURRENT-LIABILITIES> 82,267
<BONDS> 3,876
111
0
<COMMON> 0
<OTHER-SE> 188,383
<TOTAL-LIABILITY-AND-EQUITY> 287,399
<SALES> 263,560
<TOTAL-REVENUES> 263,560
<CGS> 128,401
<TOTAL-COSTS> 128,401
<OTHER-EXPENSES> 103,886
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 28
<INCOME-PRETAX> 35,416
<INCOME-TAX> 13,682
<INCOME-CONTINUING> 21,734
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 21,734
<EPS-PRIMARY> 1.89
<EPS-DILUTED> 1.88
</TABLE>
