<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 March 31, 1998
--------------
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 0-1649
------
NEWPORT CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Nevada 94-0849175
- --------------------------------------------------------------------------------
(State or other Jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
1791 Deere Avenue, Irvine, CA 92606
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (949) 863-3144
--------------
N/A
----------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (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 [_]
The number of shares outstanding of each of the issuer's classes of common stock
as of March 31, 1998, was 9,149,496.
Page 1 of 12
Exhibit Index on Sequentially Numbered Page 12
<PAGE>
NEWPORT CORPORATION
INDEX
PART I. FINANCIAL INFORMATION Page Number
Item 1: Financial Statements:
Consolidated Statement of Income and Condensed
Consolidated Statement of Stockholders' Equity for
the Three Months ended March 31, 1998 and 1997. 3
Consolidated Balance Sheet at March 31, 1998 and
December 31, 1997. 4
Consolidated Statement of Cash Flows for the Three
Months ended March 31, 1998 and 1997. 5
Notes to Condensed Consolidated Financial Statements. 6-8
Item 2: Management's Discussion and Analysis of Financial
Condition and Results of Operations. 9-12
PART II. OTHER INFORMATION
Item 6: Exhibits and Reports on Form 8-K. 12
SIGNATURE 12
Page 2
<PAGE>
NEWPORT CORPORATION
Consolidated Statement of Income and
Condensed Consolidated Statement of Stockholders' Equity
(Unaudited)
<TABLE>
<CAPTION>
(In thousands, except per share amounts) Three Months Ended
March 31,
--------------------
1998 1997
-------- --------
<S> <C> <C>
Net sales $33,663 $31,051
Cost of sales 19,183 17,532
------- -------
Gross profit 14,480 13,519
Selling, general and administrative expense 8,312 8,766
Research and development expense 2,772 2,124
------- -------
Income from operations 3,396 2,629
Interest expense (508) (510)
Other income (expense), net 63 (210)
------- -------
Income before income taxes 2,951 1,909
Income tax provision 945 649
------- -------
Net income $ 2,006 $ 1,260
======= =======
Net income per share
Basic $ 0.22 $ 0.14
Diluted $ 0.21 $ 0.14
Number of shares used to calculate net income per share
Basic 8,919 8,811
Diluted 9,377 9,079
Stockholders' equity, beginning of period $60,658 $57,429
Net income 2,006 1,260
Unrealized translation loss (455) (1,541)
Unamortized deferred compensation (207) (124)
Repurchase of common stock - (225)
Issuance of common stock 1,734 433
------- -------
Stockholders' equity, end of period $63,736 $57,232
======= =======
</TABLE>
See accompanying notes
Page 3
<PAGE>
NEWPORT CORPORATION
Consolidated Balance Sheet
<TABLE>
<CAPTION>
(Dollars in thousands, except per share amounts)
March 31, December 31,
1998 1997
----------- ------------
ASSETS (Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 10,369 $ 7,456
Customer receivables, net 23,505 23,372
Other receivables 1,232 979
Inventories 29,498 28,326
Deferred tax assets 3,231 3,256
Other current assets 2,110 2,065
-------- --------
Total current assets 69,945 65,454
Investments and other assets 5,428 5,830
Property, plant and equipment, at cost, net 21,118 22,994
Goodwill, net 9,824 10,133
-------- --------
$106,315 $104,411
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,811 $ 6,082
Accrued payroll and related expenses 5,074 5,855
Taxes based on income 1,540 2,056
Current portion of long-term debt 2,989 2,380
Other accrued liabilities 3,754 4,766
-------- --------
Total current liabilities 20,168 21,139
Long-term debt 20,824 21,027
Other liabilities 1,587 1,587
Commitments and contingencies
Stockholders' equity:
Common stock, $.35 stated value, 20,000,000
shares authorized; 9,149,000 shares issued
and outstanding at March 31, 1998;
8,951,000 shares at December 31, 1997 3,195 3,132
Capital in excess of stated value 9,697 8,026
Unamortized deferred compensation (726) (519)
Unrealized translation loss (5,491) (5,036)
Retained earnings 57,061 55,055
-------- --------
Total stockholders' equity 63,736 60,658
-------- --------
$106,315 $104,411
======== ========
</TABLE>
See accompanying notes
Page 4
<PAGE>
NEWPORT CORPORATION
Consolidated Statement of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
(In thousands)
Three Months Ended
March 31,
---------------------
1998 1997
--------- ---------
<S> <C> <C>
Operating activities:
Net income $ 2,006 $ 1,260
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,608 1,371
Increase in provision for losses
on receivables and inventories 396 362
Other non-cash items, net 59 (4)
Changes in operating assets and liabilities:
Receivables (556) (410)
Inventories (1,736) (381)
Other current assets (318) (430)
Other assets 360 430
Accounts payable and other accrued expenses (644) (2,885)
Taxes based on income (515) 530
------- -------
Net cash provided by (used in) operating activities 660 (157)
------- -------
Investing activities:
Purchases of property, plant and equipment, net (1,396) (1,243)
Disposition of property, plant and equipment, net 1,857 37
Acquisition of businesses, net of cash acquired - (879)
Other, net 12 (86)
------- -------
Net cash provided by (used in) investing activities 473 (2,171)
------- -------
Financing activities:
Increase in short-term borrowings 651 508
Decrease in long-term borrowings (157) (156)
Cash dividends paid (180) (177)
Repurchase of common stock - (225)
Issuance of common stock under employee
agreements, including associated tax benefit 1,467 257
------- -------
Net cash provided by financing activities 1,781 207
------- -------
Effect of foreign exchange rate changes on cash (1) 196
------- -------
Net increase (decrease) in cash and cash equivalents 2,913 (1,925)
Cash and cash equivalents at beginning of period 7,456 3,375
------- -------
Cash and cash equivalents at end of period $10,369 $ 1,450
======= =======
Cash paid in the period for:
Interest $ 51 $ 47
Taxes 1,103 133
</TABLE>
See accompanying notes
Page 5
<PAGE>
NEWPORT CORPORATION
Notes to Consolidated Financial Statements
March 31, 1998
(Unaudited)
1. Interim Reporting
General
The accompanying unaudited financial statements consolidate the accounts of the
Company and its wholly-owned subsidiaries and have been prepared in accordance
with generally accepted accounting principles for interim financial information.
The accounts of the Company's subsidiaries in Europe have been consolidated
using a one-month lag.
In the opinion of management, all adjustments necessary for a fair presentation
of the information in the unaudited condensed consolidated financial statements
have been made and consist of only normal recurring accruals. Operating results
for the three-month period ended March 31, 1998, are not necessarily indicative
of the results that may be expected for the year ending December 31, 1998.
Although the Company believes that the disclosures in these financial statements
are adequate to make the information presented not misleading, certain
information and footnotes normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to rules and regulations of the Securities and Exchange
Commission, and consequently, these statements should be read in conjunction
with the Company's consolidated financial statements and notes thereto,
contained in the Company's Annual Report on Form 10-K for the year ended
December 31, 1997.
Net Income per Share
Net income per share for all periods have been presented and, where necessary,
restated to conform with the provisions of Statement of Financial Accounting
Standards No. 128, Earnings Per Share. Basic net income per share is based on
the weighted average number of shares of common stock outstanding during the
periods, excluding restricted stock, while diluted net income per share is based
on the weighted average number of shares of common stock outstanding during the
periods and the dilutive effects of common stock equivalents (stock options),
determined using the treasury stock method, outstanding during the periods.
Foreign Currency
Balance sheet accounts denominated in foreign currencies are translated at
exchange rates as of the date of the balance sheet and income statement accounts
are translated at average exchange rates for the period. Translation gains and
losses are accumulated as a separate component of stockholders' equity. The
Company has adopted local currencies as the functional currencies for its
subsidiaries because their principal economic activities are most closely tied
to the respective local currencies.
The Company may enter into foreign exchange contracts as a hedge against foreign
currency denominated receivables. It does not engage in currency speculation.
Market value gains and losses on contracts are recognized currently, offsetting
gains or losses on the associated receivables. Foreign currency transaction
gains and losses are included in current earnings. Foreign exchange contracts
totaled $4.5 million and $5.6 million at March 31, 1998, and December 31, 1997,
respectively.
Page 6
<PAGE>
NEWPORT CORPORATION
Notes to Condensed Consolidated Financial Statements
March 31, 1998
(Unaudited)
Adoption of Statement of Financial Accounting Standards No. 130
As of January 1, 1998, the Company adopted Statement of Financial Accounting
Standards No. 130, Reporting Comprehensive Income (SFAS No. 130). SFAS No. 130
establishes new rules for the reporting and display of comprehensive income and
its components; however, the adoption of this Statement had no impact on the
Company's net income or stockholders' equity. Statement 130 requires unrealized
gains or losses on foreign currency translation adjustments, which prior to
adoption were reported separately in shareholders' equity to be included in
other comprehensive income. Prior year financial statements have been
reclassified to conform to the requirements of Statement 130.
The components of comprehensive income, net of related tax, are as follows:
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
(In thousands) 1998 1997
------------ ------------
<S> <C> <C>
Net income $2,006 $ 1,260
Unrealized translation loss (455) (1,541)
------ -------
Comprehensive income (loss) $1,551 $ (281)
====== =======
</TABLE>
Pending Adoption of Statement of Financial Accounting Standards No. 131
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 131, Disclosures about Segments of an
Enterprise and Related Information (SFAS 131), which is effective for years
beginning after December 15, 1997. SFAS No. 131 establishes standards for the
way that public business enterprises report information about operating segments
in annual financial statements and requires that those enterprises report
selected information about operating segments in interim financial reports. It
also establishes standards for related disclosures about products and services,
geographic areas, and major customers. SFAS No. 131 is effective for financial
statements for fiscal years beginning after December 15, 1997, and therefore the
Company will adopt the new requirements effective with the filing of its Annual
Report on Form 10-K for the year ended December 31, 1998. Management has not
completed its review of SFAS No. 131, but does expect that, while adoption of
SFAS. 131 may result in more reported segments than are currently reported, it
will not have an impact on the Company's results of operations, financial
position or cash flow.
Page 7
<PAGE>
NEWPORT CORPORATION
Notes to Condensed Consolidated Financial Statements
March 31, 1998
(Unaudited)
2. Customer Receivables
Customer receivables consist of the following:
<TABLE>
<CAPTION>
March 31, December 31,
(In thousands) 1998 1997
--------- ------------
<S> <C> <C>
Customer receivables $23,986 $23,857
Less allowance for doubtful accounts 481 485
------- -------
$23,505 $23,372
======= =======
</TABLE>
3. Inventories
<TABLE>
<CAPTION>
March 31, December 31,
(In thousands) 1998 1997
--------- ------------
<S> <C> <C>
Raw materials and purchased parts $10,794 $10,161
Work in process 5,466 5,236
Finished goods 13,238 12,929
------- -------
$29,498 $28,326
======= =======
</TABLE>
4. Property, Plant and Equipment
Property plant and equipment consist of the following:
<TABLE>
<CAPTION>
March 31, December 31,
(In thousands) 1998 1997
--------- ------------
<S> <C> <C>
Land $ 1,188 $ 1,954
Buildings 7,039 12,069
Leasehold improvements 8,385 8,381
Machinery and equipment 21,157 20,620
Office equipment 10,237 12,929
------- -------
48,006 53,098
Less accumulated depreciation 26,888 30,104
------- -------
$21,118 $22,994
======= =======
</TABLE>
5. Other Income (Expense), Net
Other income (expense), net, consists of the following:
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
(In thousands) 1998 1997
------------- ------------
<S> <C> <C>
Interest and dividend income $ 86 $ 44
Exchange gains (losses), net (44) (293)
Other 21 39
---- -----
$ 63 $(210)
==== =====
</TABLE>
Page 8
<PAGE>
NEWPORT CORPORATION
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Three Months Ended March 31, 1998 and March 31, 1997
INTRODUCTORY NOTE
This Form 10-Q contains certain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934 and the Company intends that such forward-looking
statements be subject to the safe harbors created thereby. For this purpose, any
statements contained in this Form 10-Q except for historical information may be
deemed to be forward-looking statements. Without limiting the generality of the
foregoing, words such as "may," "will," "expect," believe," "anticipate,"
"intend," "could," "estimate," or "continue" or the negative or other variations
thereof or comparable terminology are intended to identify forward-looking
statements. These forward-looking statements include (i) the existence and
development of the Company's technical and manufacturing capabilities, (ii)
anticipated competition, (iii) potential future growth in revenues and income,
(iv) potential future decreases in costs, and (v) the need for, and availability
of, additional financing.
The forward-looking statements included herein are based on current expectations
that involve a number of risks and uncertainties. These forward-looking
statements are based on assumptions that the Company will not lose a significant
customer or customers or experience increased fluctuations of demand or
rescheduling of purchase orders, that the Company's markets will continue to
grow, that the Company's products will remain accepted within their respective
markets and will not be replaced by new technology, that competitive conditions
within the Company's markets will not change materially or adversely, that the
Company will retain key technical and management personnel, that the Company's
forecasts will accurately anticipate market demand, that there will be no
material adverse change in the Company's operations or business, that
fluctuations in foreign currency exchange rates do not have a material adverse
impact on the Company's competitive position in international markets and that
the Company will not experience significant supply shortages with respect to
purchased components, sub-systems or raw materials. Additional factors that may
affect future operating results are discussed in more detail in the Company's
Annual Report on Form 10-K for the year ended December 31, 1997. Assumptions
relating to the foregoing involve judgments with respect to, among other things,
future economic, competitive and market conditions, and future business
decisions, all of which are difficult or impossible to predict accurately and
many of which are beyond the control of the Company. Although, the Company
believes that the assumptions underlying the forward-looking statements will be
realized. In addition, the business and operations of the Company are subject to
substantial risks that increase the uncertainty inherent in the forward-looking
statements. In light of the significant uncertainties inherent in the forward-
looking information included herein, the inclusion of such information should
not be regarded as a representation by the Company or any other person that the
objectives or plans of the Company will be achieved.
The following is management's discussion and analysis of certain significant
factors that have affected the earnings and financial position of the Company
during the period included in the accompanying financial statements. This
discussion compares the three-month period ended March 31, 1998, with the three-
month period ended March 31, 1997. This discussion should be read in conjunction
with the financial statements and associated notes.
Page 9
<PAGE>
NEWPORT CORPORATION
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Three Months Ended March 31, 1998 and March 31, 1997
RESULTS OF OPERATIONS
FINANCIAL ANALYSIS
<TABLE>
<CAPTION>
Period-to-Period
Percentage of Net Sales Increase (Decrease)
----------------------- ------------------
Three months ended Three months ended
March 31, March 31,
1998 1997 1998
---- ---- ----
<S> <C> <C> <C>
Net Sales 100.0% 100.0% 8.4%
Cost of sales 57.0 56.5 9.4
----- -----
Gross profit 43.0 43.5 7.1
Selling, general and
administrative expense 24.7 28.2 (5.2)
Research and
development expense 8.2 6.8 30.5
----- -----
Income from operations 10.1 8.5 29.2
Interest expense (1.5) (1.6) (0.4)
Other income (expense), net 0.2 (0.7) (130.0)
Income taxes (2.8) (2.1) 45.6
----- -----
Net income 6.0 4.1 59.2
===== =====
</TABLE>
NET SALES
Net sales were $33.7 million for the three-month period ended March 31, 1998, an
increase of 8.4% from $31.1 million for the three-month period ended March 31,
1997. The increase is principally attributable to growth in the domestic market
where sales rose $2.8 million, offset in part by lower international sales.
Growth in the Company's targeted markets was fueled by increases in the fiber
optic communications and semiconductor test equipment markets, where sales
advanced 29.5% over a year ago. This increase offset weakness in sales to the
computer peripherals market, where sales declined 5.5%.
The Company's domestic sales totaled $21.9 million for the three-month period
ended March 31, 1998, compared with $19.1 million for the three months ended
March 31, 1997, an increase of 14.7%. Consistent with total Company sales,
domestic growth was driven by increased sales to the fiber optic communications
and semiconductor markets, offset in part by lower sales to the computer
peripherals market.
The Company's international sales totaled $11.8 million for the three-month
period ended March 31, 1998, compared with $12.0 million for the three months
ended March 31, 1997, a decrease of 1.7%. While European sales grew by 2%, they
were constrained by the negative effect of currency translation against the
stronger U.S. dollar. That impact reduced the growth, when measured in dollars,
by $0.6 million for the quarter. Excluding the impact of currency translation,
sales in the European markets grew $0.8 million, or 10.8%, most notably in
France, Germany and the U.K. This local currency performance measurement
reflects the positive effect of Newport's increased focus on its targeted
markets.
U.S. and European order rates for the first quarter increased 22.9% and 5.3%,
respectively, over the prior year period. Excluding the impact of currency
translation, orders in the European markets grew 14.4%. The increase in
domestic orders was fueled by a $4.0 million order with a customer for the
Company's precision motion systems. Orders from customers in the Company's
targeted markets increased 41.0%, reflecting a favorable book-to-bill ratio for
each of the three targeted markets.
Overall, management anticipates that net sales in 1998 will increase over 1997;
however, such growth is dependent on many factors, including economic
uncertainty in Asia which may partially offset anticipated sales growth in other
geographic markets, and cannot be assured.
Page 10
<PAGE>
NEWPORT CORPORATION
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Three Months Ended March 31, 1998 and March 31, 1997
GROSS PROFIT
Gross profit increased 7.1% on a sales increase of 8.4% for the three-month
period ended March 31, 1998, compared with the three-month period ended March
31, 1997. However, the gross margin (gross profit as a percentage of sales)
decreased 0.5% to 43.0% for the three-month period ended March 31, 1998,
compared with 43.5% for the three-month period ended March 31, 1997. The decline
in gross margin was primarily attributable to the increase in sales to OEM
customers in the Company's targeted markets, which generally have a lower margin
than sales to end user customers. However, management anticipates that the
Company's overall gross margin will improve in 1998 as a result of an overall
increase in sales volume and continued productivity improvements Company-wide.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative (SG&A) expenses for the three-month period
ended March 31, 1998, decreased 5.2% compared with the three-month period ended
March 31, 1997. As a percentage of sales, SG&A expenses were 24.7%, compared
with 28.2% for the prior year period. The decrease in SG&A expenses is primarily
due to a favorable exchange rate effect and reduced sales and marketing expenses
in Europe that resulted from changes made in 1997 to the European sales
organization.
RESEARCH AND DEVELOPMENT EXPENSES
Research and development (R&D) expenses for the three-month period ended March
31, 1998, increased 30.5% compared with the three-month period ended March 31,
1997. As a percentage of sales, R&D expenses were 8.2% versus 6.8% a year ago.
The increase in expenses is in line with management's commitment to continued
product development and enhancement of existing products.
INTEREST EXPENSE AND OTHER INCOME (EXPENSE), NET
Interest expense totaled %0.5 million for both the three-month periods ended
March 31, 1998 and 1997. Other income (expense), net was a $0.1 million gain
for the three-month period ended March 31, 1998, versus a $0.2 million loss for
the corresponding 1997 period. This change was primarily attributable to the
minimal foreign exchange loss realized in the first three months of 1998
compared with a $0.3 million foreign exchange loss in the prior year period.
PROVISION FOR TAXES
The effective tax rates for the quarters ended March 31, 1998 and 1997 were
32.0% and 34.0%, respectively.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities of $0.7 million for the three-month
period ended March 31, 1998 was principally attributable to the Company's net
income ($2.0 million) and non-cash items, primarily depreciation and
amortization ($1.6 million), provision for losses on receivables and inventory
($0.4 million) and other non-cash items ($0.1 million), offset in part by
changes in operating assets and liabilities, principally inventories,
receivables, taxes and accounts payable and accrued expenses ($3.4 million).
Net cash provided by investing activities of $0.5 million for the three-month
period ended March 31, 1998, was principally attributable to the Company's sale
of property for net proceeds of $1.8 million offset in part by the Company's
purchases of property, plant and equipment.
Page 11
<PAGE>
NEWPORT CORPORATION
Management's Discussion and Analysis of
Financial Condition and Results of Operations (Cont'd)
Three Months Ended March 31, 1998 and March 31, 1997
Net cash provided by financing activities of $1.8 million for the three-month
period ended March 31, 1998, was principally attributable to the increase in
borrowings and issuance of common stock in connection with stock option and
purchase plans, partially offset by dividend payments.
In February 1998, the Company's board of directors authorized the repurchase of
an additional 350,000 shares under the Company's share repurchase program which
commenced in April 1997. This brings the total number of shares authorized for
repurchase to 640,000. The 290,000 shares originally authorized for repurchase
were repurchased in 1997.
In February 1998, the Company modified its bank credit agreement increasing its
overall unsecured line of credit to $25.0 million to support the Company's
worldwide operations. This modified credit agreement has an interest rate of
prime or LIBOR plus 1.0%, an unused line fee of 20 basis points and matures at
December 31, 2000.
Although the Company has no present agreements or commitments with respect to
any material acquisitions of other businesses, products, product rights or
technologies, the Company continues to evaluate acquisitions of products,
technologies or companies that complement the Company's business and may make
such acquisitions in the future, and there can be no assurance that the Company
will not need to obtain additional sources of capital to finance any such
acquisitions.
The Company believes its current working capital position together with
estimated cash flows from operations and its existing credit availability are
adequate to fund operations in the ordinary course of business, anticipated
capital expenditures and debt repayment requirements over at least the next
year.
NEWPORT CORPORATION
PART II. OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K.
(a) Exhibits
Exhibit 27 Financial Data Schedule
(b) Reports on Form 8-K
None
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.
NEWPORT CORPORATION
(Registrant)
Dated: May 12, 1998
By: /S/ROBERT C. HEWITT
-------------------------------------
Robert C. Hewitt, Principal Financial
Officer, duly authorized to sign on
behalf of the Registrant
Page 12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED STATEMENTS OF INCOME, CONSOLIDATED BALANCE SHEETS AND
CONSOLIDATED STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS CONTAINED WITHIN THE COMPANY'S FORM 10-Q
FOR THE PERIOD ENDED MARCH 31, 1998.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 10,369
<SECURITIES> 0
<RECEIVABLES> 23,986
<ALLOWANCES> 481
<INVENTORY> 29,498
<CURRENT-ASSETS> 69,945
<PP&E> 48,006
<DEPRECIATION> 26,888
<TOTAL-ASSETS> 106,315
<CURRENT-LIABILITIES> 20,168
<BONDS> 20,824
0
0
<COMMON> 3,195
<OTHER-SE> 60,541
<TOTAL-LIABILITY-AND-EQUITY> 106,315
<SALES> 33,663
<TOTAL-REVENUES> 33,663
<CGS> 19,183
<TOTAL-COSTS> 19,183
<OTHER-EXPENSES> 11,084
<LOSS-PROVISION> 63
<INTEREST-EXPENSE> 508
<INCOME-PRETAX> 2,951
<INCOME-TAX> 945
<INCOME-CONTINUING> 2,006
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,006
<EPS-PRIMARY> 0.22
<EPS-DILUTED> 0.21
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED STATEMENTS OF OPERATIONS, BALANCE SHEETS AND STATEMENTS
OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH CONSOLIDATED
FINANCIAL STATEMENTS CONTAINED WITHIN THE COMPANY'S FORM 10-K FOR THE YEAR ENDED
DECEMBER 31, 1995.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> DEC-31-1995
<CASH> 1,524
<SECURITIES> 0
<RECEIVABLES> 20,304
<ALLOWANCES> 537
<INVENTORY> 22,744
<CURRENT-ASSETS> 48,903
<PP&E> 51,479
<DEPRECIATION> 29,152
<TOTAL-ASSETS> 83,948
<CURRENT-LIABILITIES> 20,330
<BONDS> 9,899
0
0
<COMMON> 3,045
<OTHER-SE> 49,642
<TOTAL-LIABILITY-AND-EQUITY> 83,948
<SALES> 101,961
<TOTAL-REVENUES> 101,961
<CGS> 55,421
<TOTAL-COSTS> 55,421
<OTHER-EXPENSES> 6,765
<LOSS-PROVISION> 171
<INTEREST-EXPENSE> 1,593
<INCOME-PRETAX> 4,878
<INCOME-TAX> 1,003
<INCOME-CONTINUING> 3,875
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,875
<EPS-PRIMARY> 0.47
<EPS-DILUTED> 0.45
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED STATEMENTS OF INCOME, CONSOLIDATED BALANCE SHEETS AND
CONSOLIDATED STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS CONTAINED WITHIN THE COMPANY'S FORM 10-Q
FOR THE PERIOD ENDED MARCH 31, 1996.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,967
<SECURITIES> 0
<RECEIVABLES> 19,268
<ALLOWANCES> 514
<INVENTORY> 25,961
<CURRENT-ASSETS> 55,360
<PP&E> 53,053
<DEPRECIATION> 30,102
<TOTAL-ASSETS> 94,586
<CURRENT-LIABILITIES> 19,041
<BONDS> 21,401
0
0
<COMMON> 3,066
<OTHER-SE> 50,046
<TOTAL-LIABILITY-AND-EQUITY> 94,586
<SALES> 27,979
<TOTAL-REVENUES> 27,979
<CGS> 15,691
<TOTAL-COSTS> 15,691
<OTHER-EXPENSES> 1,891
<LOSS-PROVISION> 35
<INTEREST-EXPENSE> 411
<INCOME-PRETAX> 1,386
<INCOME-TAX> 444
<INCOME-CONTINUING> 942
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 942
<EPS-PRIMARY> 0.11
<EPS-DILUTED> 0.11
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED STATEMENTS OF INCOME, CONSOLIDATED BALANCE SHEETS AND
CONSOLIDATED STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS CONTAINED WITHIN THE COMPANY'S FORM 10-Q
FOR THE PERIOD ENDED JUNE 30, 1996.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 2,304
<SECURITIES> 0
<RECEIVABLES> 20,642
<ALLOWANCES> 537
<INVENTORY> 25,883
<CURRENT-ASSETS> 55,997
<PP&E> 54,202
<DEPRECIATION> 30,187
<TOTAL-ASSETS> 96,242
<CURRENT-LIABILITIES> 19,051
<BONDS> 22,471
0
0
<COMMON> 3,083
<OTHER-SE> 50,605
<TOTAL-LIABILITY-AND-EQUITY> 96,242
<SALES> 58,096
<TOTAL-REVENUES> 58,096
<CGS> 32,790
<TOTAL-COSTS> 32,790
<OTHER-EXPENSES> 3,970
<LOSS-PROVISION> 38
<INTEREST-EXPENSE> 913
<INCOME-PRETAX> 2,821
<INCOME-TAX> 903
<INCOME-CONTINUING> 1,918
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,918
<EPS-PRIMARY> 0.22
<EPS-DILUTED> 0.21
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED STATEMENTS OF INCOME, CONSOLIDATED BALANCE SHEETS AND
CONSOLIDATED STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS CONTAINED WITHIN THE COMPANY'S FORM 10-Q
FOR THE PERIOD ENDED SEPTEMBER 30, 1996.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 3,708
<SECURITIES> 0
<RECEIVABLES> 20,899
<ALLOWANCES> 537
<INVENTORY> 27,138
<CURRENT-ASSETS> 58,510
<PP&E> 55,340
<DEPRECIATION> 31,059
<TOTAL-ASSETS> 99,000
<CURRENT-LIABILITIES> 19,857
<BONDS> 22,632
0
0
<COMMON> 3,094
<OTHER-SE> 52,385
<TOTAL-LIABILITY-AND-EQUITY> 99,000
<SALES> 87,331
<TOTAL-REVENUES> 87,331
<CGS> 49,317
<TOTAL-COSTS> 49,317
<OTHER-EXPENSES> 5,866
<LOSS-PROVISION> 32
<INTEREST-EXPENSE> 1,417
<INCOME-PRETAX> 4,463
<INCOME-TAX> 1,429
<INCOME-CONTINUING> 3,034
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,034
<EPS-PRIMARY> 0.35
<EPS-DILUTED> 0.34
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED STATEMENTS OF OPERATIONS, BALANCE SHEETS AND STATEMENTS
OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH CONSOLIDATED
FINANCIAL STATEMENTS CONTAINED WITHIN THE COMPANY'S 10-K FOR THE YEAR ENDED
DECEMBER 31, 1996.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<CASH> 3,375
<SECURITIES> 0
<RECEIVABLES> 23,942
<ALLOWANCES> 524
<INVENTORY> 28,954
<CURRENT-ASSETS> 62,529
<PP&E> 55,890
<DEPRECIATION> 31,845
<TOTAL-ASSETS> 103,377
<CURRENT-LIABILITIES> 20,787
<BONDS> 23,464
0
0
<COMMON> 3,110
<OTHER-SE> 54,319
<TOTAL-LIABILITY-AND-EQUITY> 103,377
<SALES> 119,910
<TOTAL-REVENUES> 119,910
<CGS> 67,103
<TOTAL-COSTS> 67,103
<OTHER-EXPENSES> 44,883
<LOSS-PROVISION> 62
<INTEREST-EXPENSE> 1,931
<INCOME-PRETAX> 6,408
<INCOME-TAX> 1,705
<INCOME-CONTINUING> 4,703
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,703
<EPS-PRIMARY> 0.54
<EPS-DILUTED> 0.52
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED STATEMENTS OF INCOME, CONSOLIDATED BALANCE SHEETS AND
CONSOLIDATED STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS CONTAINED WITHIN THE COMPANY'S FORM 10-Q
FOR THE PERIOD ENDED MARCH 31, 1997.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 1,450
<SECURITIES> 0
<RECEIVABLES> 23,925
<ALLOWANCES> 490
<INVENTORY> 28,455
<CURRENT-ASSETS> 58,913
<PP&E> 55,222
<DEPRECIATION> 31,644
<TOTAL-ASSETS> 98,188
<CURRENT-LIABILITIES> 16,776
<BONDS> 23,131
0
0
<COMMON> 3,120
<OTHER-SE> 54,112
<TOTAL-LIABILITY-AND-EQUITY> 98,188
<SALES> 31,051
<TOTAL-REVENUES> 31,051
<CGS> 17,532
<TOTAL-COSTS> 17,532
<OTHER-EXPENSES> 10,890
<LOSS-PROVISION> 210
<INTEREST-EXPENSE> 510
<INCOME-PRETAX> 1,909
<INCOME-TAX> 649
<INCOME-CONTINUING> 1,260
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,260
<EPS-PRIMARY> 0.14
<EPS-DILUTED> 0.14
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED STATEMENTS OF INCOME, CONSOLIDATED BALANCE SHEETS AND
CONSOLIDATED STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS CONTAINED WITHIN THE COMPANY'S FORM 10-Q
FOR THE PERIOD ENDED JUNE 30, 1997.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 4,117
<SECURITIES> 0
<RECEIVABLES> 21,674
<ALLOWANCES> 493
<INVENTORY> 28,365
<CURRENT-ASSETS> 59,255
<PP&E> 54,804
<DEPRECIATION> 31,443
<TOTAL-ASSETS> 98,058
<CURRENT-LIABILITIES> 15,929
<BONDS> 22,888
0
0
<COMMON> 3,143
<OTHER-SE> 55,019
<TOTAL-LIABILITY-AND-EQUITY> 98,058
<SALES> 62,912
<TOTAL-REVENUES> 62,912
<CGS> 35,452
<TOTAL-COSTS> 35,452
<OTHER-EXPENSES> 22,058
<LOSS-PROVISION> 269
<INTEREST-EXPENSE> 1,004
<INCOME-PRETAX> 4,129
<INCOME-TAX> 1,404
<INCOME-CONTINUING> 2,725
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,725
<EPS-PRIMARY> 0.31
<EPS-DILUTED> 0.30
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED STATEMENTS OF INCOME, CONSOLIDATED BALANCE SHEETS AND
CONSOLIDATED STATEMENTS OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS CONTAINED WITHIN THE COMPANY'S FORM 10-Q
FOR THE PERIOD ENDED SEPTEMBER 30, 1997.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 6,576
<SECURITIES> 0
<RECEIVABLES> 22,049
<ALLOWANCES> 472
<INVENTORY> 29,210
<CURRENT-ASSETS> 63,643
<PP&E> 55,139
<DEPRECIATION> 31,401
<TOTAL-ASSETS> 102,567
<CURRENT-LIABILITIES> 18,168
<BONDS> 22,740
0
0
<COMMON> 3,163
<OTHER-SE> 57,447
<TOTAL-LIABILITY-AND-EQUITY> 102,567
<SALES> 95,611
<TOTAL-REVENUES> 95,611
<CGS> 54,186
<TOTAL-COSTS> 54,186
<OTHER-EXPENSES> 33,162
<LOSS-PROVISION> 170
<INTEREST-EXPENSE> 1,484
<INCOME-PRETAX> 6,609
<INCOME-TAX> 2,115
<INCOME-CONTINUING> 4,494
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,494
<EPS-PRIMARY> 0.51
<EPS-DILUTED> 0.49
</TABLE>
