<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 December 30, 1995
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.)
Registrant's telephone number, including area code: (408) 764-4000
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 February 2, 1996 was 10,988,010 shares.
<PAGE>
COHERENT, INC.
INDEX
PAGE NO.
-------
PART I. FINANCIAL INFORMATION:
Consolidated Condensed Statements of Income --
Three months ended December 30, 1995 and December 31, 1994 3
Consolidated Condensed Balance Sheets --
December 30, 1995 and September 30, 1995 4
Consolidated Condensed Statements of Cash Flows --
Three months ended December 30, 1995 and December 31, 1994 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 13
SIGNATURES 14
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
MONTHS ENDED
------------
DECEMBER 30, DECEMBER 31,
1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C>
NET SALES $83,681 $58,583
COST OF SALES 41,325 28,845
- -------------------------------------------------------------------------------
GROSS PROFIT 42,356 29,738
- -------------------------------------------------------------------------------
OPERATING EXPENSES:
Research and development 8,005 6,668
Selling, general and administrative 24,903 17,571
- -------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 32,908 24,239
- -------------------------------------------------------------------------------
INCOME FROM OPERATIONS 9,448 5,499
OTHER INCOME (EXPENSE):
Interest and dividend income 676 558
Interest expense (144) (314)
Foreign exchange gain (loss) 15 (95)
Other - net 603 58
- -------------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSE), NET 1,150 207
- -------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES 10,598 5,706
PROVISION FOR INCOME TAXES 4,133 2,220
- -------------------------------------------------------------------------------
NET INCOME $6,465 $3,486
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
NET INCOME PER COMMON
AND COMMON EQUIVALENT SHARE $0.57 $0.33
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING 11,405 10,675
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</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>
DECEMBER 30, September 30,
1995 1995
- -------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $11,117 $20,426
Short-term investments 37,920 24,242
Accounts receivable - net of allowances of
$2,813 in 1996 and $2,834 in 1995 65,037 62,374
Inventories 54,255 52,004
Prepaid expenses and other assets 6,747 11,173
Deferred tax assets 16,179 14,733
- -------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 191,255 184,952
- -------------------------------------------------------------------------------
PROPERTY AND EQUIPMENT 93,864 91,300
ACCUMULATED DEPRECIATION AND AMORTIZATION (47,793) (46,427)
- -------------------------------------------------------------------------------
Property and equipment - net 46,071 44,873
- -------------------------------------------------------------------------------
GOODWILL - net of accumulated amortization of
$4,622 in 1996 and $4,237 in 1995 10,904 10,152
OTHER ASSETS 17,193 15,897
- -------------------------------------------------------------------------------
$265,423 $255,874
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term borrowings $4,869 $7,016
Current portion of long-term obligations 5,200 5,285
Accounts payable 12,032 11,688
Income taxes payable 8,635 4,165
Other current liabilities 50,011 50,011
- -------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 80,747 78,165
- -------------------------------------------------------------------------------
LONG-TERM OBLIGATIONS 4,040 5,139
OTHER LONG-TERM LIABILITIES 9,905 9,597
MINORITY INTEREST IN SUBSIDIARIES 1,888 1,782
STOCKHOLDERS' EQUITY:
Common stock, par value $.01
Authorized - 50,000 shares
Outstanding - 10,971 in 1996 and 10,869 in 1995 109 108
Additional paid-in capital 77,668 76,225
Notes receivable from stock sales (1,218) (1,218)
Unrealized gain on investments 212 171
Retained earnings 89,945 83,480
Accumulated translation adjustment 2,127 2,425
- -------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 168,843 161,191
- -------------------------------------------------------------------------------
$265,423 $255,874
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS.
4
<PAGE>
COHERENT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED; IN THOUSANDS)
<TABLE>
<CAPTION>
THREE
MONTHS ENDED
------------
DECEMBER 30, December 31,
1995 1994
- -------------------------------------------------------------------------------
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND EQUIVALENTS
OPERATING ACTIVITIES:
Net income $ 6,465 $ 3,486
Adjustments to reconcile to net cash
used for operating activities:
Purchases of short-term investments (35,978) (26,699)
Proceeds from sales of short-term investments 22,300 20,900
Changes in assets and liabilities 4,325 (1,912)
Other adjustments 1,504 (4,451)
- -------------------------------------------------------------------------------
NET CASH USED FOR OPERATING ACTIVITIES (1,384) (8,676)
- -------------------------------------------------------------------------------
INVESTING ACTIVITIES:
Purchases of property and equipment - net (3,315) (867)
Purchase of asset held for investment (4,312)
Other - net (2,644) (171)
- -------------------------------------------------------------------------------
NET CASH USED FOR INVESTING ACTIVITIES (5,959) (5,350)
- -------------------------------------------------------------------------------
FINANCING ACTIVITIES:
Long-term debt repayments (1,149) (844)
Notes payable borrowings 1,990 1,683
Notes payable repayments (4,081) (2,649)
Repayments of capital lease obligations (31) (151)
Sales of shares under employee benefit plans 1,132 1,374
Other 51
- -------------------------------------------------------------------------------
NET CASH USED FOR FINANCING ACTIVITIES (2,139) (536)
- -------------------------------------------------------------------------------
EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND EQUIVALENTS 173 263
- -------------------------------------------------------------------------------
Net decrease in cash and equivalents (9,309) (14,299)
Cash and equivalents beginning of period 20,426 27,239
- -------------------------------------------------------------------------------
CASH AND EQUIVALENTS END OF PERIOD $11,117 $12,940
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
SEE 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 fiscal 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:
<TABLE>
<CAPTION>
December 30, September 30,
1995 1995
--------------------------------------------------------------------------
(IN THOUSANDS)
<S> <C> <C>
Purchased parts and assemblies $ 15,293 $ 14,840
Work-in-process 21,461 19,836
Finished goods 17,501 17,328
--------------------------------------------------------------------------
Inventories $ 54,255 $ 52,004
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Prepaid expenses and other assets consists of the following:
December 30, September 30,
1995 1995
--------------------------------------------------------------------------
(IN THOUSANDS)
Prepaid expenses and other $ 6,356 $ 5,483
Prepaid income taxes 391 5,690
--------------------------------------------------------------------------
Prepaid expenses and other assets $ 6,747 $ 11,173
--------------------------------------------------------------------------
--------------------------------------------------------------------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
Other assets consist of the following:
December 30, September 30,
1995 1995
- -------------------------------------------------------------------------------
(IN THOUSANDS)
<S> <C> <C>
Assets held for investment $ 7,805 $ 6,726
Intangibles and other assets 9,388 9,171
- -------------------------------------------------------------------------------
Other assets $ 17,193 $ 15,897
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Other current liabilities consist of the following:
December 30, September 30,
1995 1995
- -------------------------------------------------------------------------------
(IN THOUSANDS)
<S> <C> <C>
Accrued expenses and other $ 16,795 $ 16,085
Accrued payroll and benefits 14,011 15,889
Deferred income 8,714 8,595
Reserve for warranty 7,603 6,856
Customer deposits 2,888 2,586
- -------------------------------------------------------------------------------
Other current liabilities $ 50,011 $ 50,011
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Other long-term liabilities consist of the following:
December 30, September 30,
1995 1995
- -------------------------------------------------------------------------------
(IN THOUSANDS)
<S> <C> <C>
Deferred tax liabilities $ 4,744 $ 4,679
Environmental remediation costs 2,480 2,469
Deferred income and other 2,681 2,449
- -------------------------------------------------------------------------------
Other long-term liabilities $ 9,905 $ 9,597
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
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 Stanford Industrial
Park. The State of California has
7
<PAGE>
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 December 30, 1995 for remaining costs associated with the
above environmental matters is $1.6 million which has been previously
accrued. This amount consists of total estimated probable costs of $3.1
million ($0.6 million included in other current liabilities and $2.5
million included in other long-term liabilities) reduced by estimated
minimum probable recoveries of $1.5 million included in other assets from
other parties named to the order. The Company filed a lawsuit in November
1995 in the District Court of Northern California against these other
parties seeking contribution for these expenses. The Company believes that
it is probable that it will be successful in obtaining a judgment at least
in the amount of the accrual. Based on currently available information,
management 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 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,
such conditions 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 have contributed to the increase
in its stock price over this period. However, if the level of orders diminishes
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 more than 50% of the
Company's sales for fiscal 1995 and 50% for the first three 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 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.
In keeping with its strategy of focusing on international market growth,
the Company terminated its relationship with its independent sales
representative for ophthalmic products in Japan and commenced selling these
products directly on February 1, 1996. Japan is the largest international
medical market and creating much closer relationships with Japanese customers
should enable Coherent to provide stronger support and help develop products
much more rapidly for the Japanese market. The Company believes it has
sufficient resources to meet the requirements of selling these products direct
in Japan.
The sales representative has filed a lawsuit in Japan claiming that
Coherent terminated the relationship without just cause and is seeking an
injunction prohibiting Coherent from selling its ophthalmic products in Japan.
Coherent believes that the lawsuit is without merit based on the legal advice of
its Japanese attorneys and will vigorously defend the lawsuit. It is likely
that Coherent's sales of ophthalmic products in Japan will be reduced as the
former distributor sells off its remaining inventory over the next two or three
quarters. The Company does not believe that this will have a material adverse
affect on its financial results as a whole.
9
<PAGE>
RESULTS OF OPERATIONS
CONSOLIDATED SUMMARY
The company's net income for the first quarter ended December 30, 1995 was
$6.5 million ($0.57 per common share) compared to $3.5 million ($0.33 per common
share) in the prior year's first quarter. Pretax income increased $4.9 million
(86%) to $10.6 million from $5.7 million one year ago. The primary factors
contributing to these increases over the prior year's first quarter were higher
sales volumes and lower operating expenses as a percentage of sales. The
effective tax rate for the first quarter of fiscal 1996 remained at 39% compared
to the same quarter one year ago.
NET SALES AND GROSS PROFITS
CONSOLIDATED
The Company's sales for the current quarter ended December 30, 1995
increased $25.1 million (43%) to $83.7 million from $58.6 million for the same
period one year ago. Sales in the Medical and Electro-Optical business segments
grew 55% and 33%, respectively. International sales increased $11.9 million
(40%) and domestic sales increased $13.2 million (46%) for the current quarter.
For the current quarter, international sales represented 50% of total sales.
The gross profit rate remained at 51%, comparable to the gross profit rate
of the prior year's first quarter.
ELECTRO-OPTICAL
Electro-Optical net sales increased $10.7 million (33%) to $43.1 million
for the current quarter compared to $32.4 million in the prior year's first
quarter. Sales increased in all three operating groups due primarily to
increased sales volumes of products associated with recent acquisitions and the
effect of broader acceptance in the current quarter of newer products
introduced in the prior year.
The gross profit rate remained over 51% for the current quarter compared to
the same quarter last year.
MEDICAL
Medical segment sales increased $14.4 million (55%) to $40.6 million from
$26.0 million one year ago. The increase resulted primarily from increased
shipments of products for cosmetic applications. The ability to ship higher
volumes reduced the substantial backlog accumulated during the past several
quarters.
The gross profit rate decreased to 50% for the current quarter from 51% in
the prior year's first quarter. Margins decreased due to reduced shipments of
products to Japan which normally have higher than average margins partially
offset by a more favorable mix of products for cosmetic applications.
OPERATING EXPENSES
<TABLE>
<CAPTION>
First Quarter
1996 1995
----------------------------
(IN THOUSANDS)
<S> <C> <C>
Research & development $ 8,005 $ 6,668
10
<PAGE>
Selling, general & administrative 24,903 17,571
- -------------------------------------------------------------------------------
Total operating expenses $ 32,908 $ 24,239
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
</TABLE>
Total operating expenses increased $8.7 million (36%) in the quarter ended
December 30, 1995 compared to the prior year's first quarter. This increase
resulted primarily from an increase in research and development (R&D) expenses
of $1.3 million (20%) and an increase in selling, general and administrative
(SG&A) expenses of $7.3 million (42%). However, as a percentage of sales, total
operating expenses have decreased to 39% in the current quarter compared to 41%
one year ago.
R&D expenses increased $1.3 million (20%) in the current quarter to $8.0
million from $6.7 million compared to the same period a year ago but decreased
as a percentage of sales to 10% from 11% in the prior year. Most of the dollar
increase occurred in the Electro-Optical business segment, primarily due to
headcount from business acquisitions; however, expressed as a percentage of
sales, R&D expenses remained constant within this segment.
SG&A expenses increased $7.3 million (42%) in the current quarter to $24.9
million from $17.6 million one year ago but remained at 30% as a percentage of
sales. In the Electro-Optical business segment, SG&A increased $2.3 million but
decreased as a percentage of sales from 28% to 26%. In the Medical business
segment, these expenses increased $5.3 million and also increased as a
percentage of sales to 34% from 31%. This increase is primarily due to
increased sales and marketing expenses in the Medical segment due to a higher
level of promotion and trade show activity and due to increased costs associated
with the higher sales volumes and additional headcount.
OTHER INCOME (EXPENSE)
Other income (expense), net increased $0.9 million for the current quarter
to $1.1 million from $0.2 million in the prior year's first quarter. This
increase was primarily due to higher interest income on higher average cash and
investments, the impact of favorable interest rate changes on third party
financing arrangements, increased royalty income, lower interest expense due to
capitalization of interest on the refurbishing of the Porter Drive building and
lower foreign exchange losses due to the effects of hedging activity.
INCOME TAXES
The Company's effective tax rate for the three months ended December 30,
1995 and December 31, 1994 was 39%.
FINANCIAL CONDITION
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of liquidity are cash, cash equivalents and
short-term investments of $49.0 million. Additional sources of liquidity are
the Company's multi-currency line of credit and bank credit facilities totaling
$25.1 million. As of December 30, 1995, the Company had $22.3 million unused
and available under these credit facilities.
CHANGES IN FINANCIAL CONDITION
Cash and cash equivalents decreased $9.3 million (46%) year-to-date.
Operations and changes in exchange rates used $1.2 million including a $13.7
million increase in short-term investments. Investing activities used $6.0
million including $3.3 million used to acquire property and equipment (net of
proceeds from dispositions of property and equipment) and $2.6 million of other
investing activities consisting of $1.1 million related to certain acquisitions
made by the Company and $0.7 million of
11
<PAGE>
expenditures on the refurbishment of the Porter Drive facility. Financing
activities used $2.1 million including repayments on borrowings, net of $3.2
million partially offset by sales of shares under employee benefit plans, net,
which generated $1.1 million.
12
<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.
Exhibits 27 "Financial Data Schedules" included herewith.
13
<PAGE>
COHERENT, INC.
SIGNATURES
Pursuant to the requirements of the Securities and 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: February 13, 1996 By: ROBERT J. QUILLINAN
----------------------------------
Robert J. Quillinan
Vice President and Chief Financial Officer
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-28-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> DEC-30-1995
<CASH> 11,117
<SECURITIES> 37,920
<RECEIVABLES> 78,244
<ALLOWANCES> 4,053
<INVENTORY> 54,255
<CURRENT-ASSETS> 191,255
<PP&E> 93,864
<DEPRECIATION> 47,793
<TOTAL-ASSETS> 265,423
<CURRENT-LIABILITIES> 80,747
<BONDS> 4,040
0
0
<COMMON> 109
<OTHER-SE> 168,734
<TOTAL-LIABILITY-AND-EQUITY> 265,423
<SALES> 83,681
<TOTAL-REVENUES> 83,681
<CGS> 41,325
<TOTAL-COSTS> 41,325
<OTHER-EXPENSES> 32,908
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 144
<INCOME-PRETAX> 10,598
<INCOME-TAX> 4,133
<INCOME-CONTINUING> 6,465
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,465
<EPS-PRIMARY> .57
<EPS-DILUTED> .57
</TABLE>
