FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
(As last amended in Rel. No. 34-26589, eff. 4/12/89)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20459
Form 10-Q
(Mark One)
(X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the period ended April 30, 1995
( ) 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: 0-7928
COMTECH TELECOMMUNICATIONS CORP.
(Exact name of registrant as specified in its charter)
Delaware 11-2139466
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
105 Baylis Road, Melville, New York 11747
(Address of principal executive offices) (Zip Code)
(516) 777-8900
(Registrant's telephone number, including area code)
----------------------------------------------------------------------------
(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.
(X) Yes ( ) No
APPLICABLE ONLY TO ISSUERS INVOLVED
IN BANKRUPTCY PROCEEDING 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 ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Common Stock, Par Value $.10 Per Share - 2,605,344 shares outstanding as
of 04/30/95.
-2-
COMTECH TELECOMMUNICATIONS CORP.
INDEX
Page
No.
----
PART I FINANCIAL INFORMATION
Consolidated Balance Sheets - 3
April 30, 1995 (unaudited) and
July 31, 1994
Consolidated Statements of Operations - 4
Three Months and Nine Months Ended
April 30, 1995 and 1994 (unaudited)
Consolidated Statements of Cash Flows 5
Nine Months Ended April 30, 1995 and 1994
(unaudited)
Notes to Consolidated Financial Statements 6-8
Management's Discussion and Analysis of
Financial Condition and Results of Operations 9-12
PART II OTHER INFORMATION 13
Exhibit 11.0 Computation of Loss Per Common Share 14
Signature Page 15
-3-
PART I
FINANCIAL INFORMATION
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
April 31, July 31,
1995 1994
----------- --------
(unaudited)
ASSETS:
Current assets:
Cash and cash equivalents $ 1,937,000 $ 505,000
Marketable investment securities 1,200,000 5,365,000
Accounts receivable, less allowance
for doubtful accounts of $136,000 at
April 30, 1995 and July 31, 1994 3,344,000 3,778,000
Inventories, net 4,914,000 3,891,000
Prepaid expenses and other current
assets 410,000 216,000
----------- -----------
Total current assets 11,805,000 13,755,000
Property, plant and equipment, net 4,239,000 3,992,000
Other assets 490,000 542,000
----------- -----------
Total Assets $16,534,000 $18,289,000
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current installments of long-term debt
(including $301,000 and $289,000 payable
to related party at April 30, 1995
and July 31, 1994, respectively) $ 480,000 $ 510,000
Notes payable 250,000 250,000
Accounts payable 1,872,000 1,363,000
Accrued expenses and other current
liabilities 1,387,000 2,185,000
----------- -----------
Total current liabilities 3,989,000 4,308,000
----------- -----------
Long-term debt, less current installments
(including $1,955,000 and $2,181,000 payable
to related party at April 30, 1995 and
July 31, 1994, respectively) 2,530,000 2,535,000
----------- -----------
TOTAL LIABILITIES 6,519,000 6,843,000
Stockholders' equity:
Preferred stock, par value $.10 per
share; shares authorized and unissued
2,000,000 - -
Common stock, par value $.10 per share;
authorized 10,000,000 shares; issued and
outstanding, 2,605,344 shares at
April 30, 1995 and July 31, 1994 261,000 261,000
Additional paid-in capital 22,230,000 22,230,000
Accumulated deficit (11,707,000) (10,169,000)
----------- -----------
10,784,000 12,322,000
Less:
Treasury stock (15,000 shares) (180,000) (180,000)
Deferred compensation expense (589,000) (696,000)
----------- -----------
10,015,000 11,446,000
----------- -----------
Total liabilities and stockholders' equity $16,534,000 $18,289,000
=========== ===========
See accompanying notes to consolidated financial statements
-4-
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
April 30, April 30,
------------------------- -------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
Unaudited Unaudited Unaudited Unaudited
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net sales $ 4,494,000 $ 2,792,000 $11,535,000 $11,295,000
Operating costs and expenses:
Cost of sales 3,545,000 2,132,000 8,655,000 8,440,000
Selling, general and
administrative 1,233,000 1,359,000 3,540,000 3,665,000
Research and development 312,000 255,000 762,000 541,000
----------- ----------- ----------- -----------
Total operating costs and
expenses 5,090,000 3,746,000 12,957,000 12,646,000
----------- ----------- ----------- -----------
Operating loss (596,000) (954,000) (1,422,000) (1,351,000)
Other expenses (income):
Interest expense 94,000 70,000 248,000 208,000
Interest income (48,000) (55,000) (144,000) (187,000)
----------- ----------- ----------- -----------
Loss before provision
for income taxes (642,000) (969,000) (1,526,000) (1,372,000)
Provision for income taxes 4,000 - 12,000 10,000
----------- ----------- ----------- -----------
Net loss $ (646,000) $ (969,000) $(1,538,000) $(1,382,000)
=========== =========== =========== ===========
Loss per share $ (.25) $ (.38) $ (.59) (.55)
=========== =========== =========== ===========
Weighted average number of
common and common equivalent
shares outstanding 2,590,344 2,582,254 2,590,344 2,494,525
=========== =========== =========== ===========
</TABLE>
See accompanying notes to consolidated financial statements
-5-
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
April 30
(unaudited)
-------------------
1995 1994
---- ----
Cash flows from operating activities:
Net loss $(1,538,000) $(1,382,000)
----------- -----------
Adjustments to reconcile net loss
to net cash used in operating activities:
Depreciation and amortization 557,000 473,000
Amortization of deferred compensation 107,000 51,000
Changes in assets and liabilities:
Accounts receivable 434,000 991,000
Inventories (1,023,000) (1,438,000)
Prepaid expenses and other current
assets (194,000) (83,000)
Other assets 52,000 (2,000)
Accounts payable 509,000 (166,000)
Accrued expenses and other current
liabilities (798,000) (901,000)
----------- -----------
Net cash used in operating activities (1,894,000) (2,457,000)
----------- -----------
Cash flows from investing activities:
Purchases of property, plant and equipment (430,000) (462,000)
Proceeds from sales (purchases) of
marketable securities, net 4,165,000 (4,500,000)
----------- -----------
Net cash provided by (used in)
investing activities 3,735,000 (4,962,000)
----------- -----------
Cash flows from financing activities:
Principal payments on long-term debt (409,000) (292,000)
Proceeds from issuance of common stock:
Public offering - 887,000
Stock options - 123,000
----------- -----------
Net cash (used in) provided by
financing activities (409,000) 718,000
----------- -----------
Net increase (decrease) in cash and cash
equivalents 1,432,000 (6,701,000)
Cash and cash equivalents at beginning of
period 505,000 8,291,000
----------- -----------
Cash and cash equivalents at end of period $ 1,937,000 $ 1,590,000
=========== ===========
Supplemental cash flow disclosure:
Cash paid during the period for:
Interest $ 248,000 $ 208,000
Income taxes $ 12,000 $ 20,000
See accompanying notes to consolidated financial statements
-6-
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) General
The accompanying consolidated financial statements for the
three and nine months ended April 30, 1995 and 1994 are unaudited.
In the opinion of management, the information furnished reflects
all adjustments, consisting only of normal recurring adjustments,
necessary for a fair presentation of the results for the unaudited
interim periods. The results of operations for the three and nine
months ended April 30, 1995 are not necessarily indicative of the
results of operations to be expected for the full year.
(2) Marketable Investment Securities
At April 30, 1995, investments are comprised principally of
commercial paper, corporate notes and United States Treasury
obligations. The Company utilizes the services of a financial
institution to administer its cash management short term investment
program within parameters established by the Company. The Company
adopted the provisions of Statement of Financial Accounting
Standards No. 115, Accounting for Certain Investments in Debt and
Equity Securities ("SFAS No. 115") as of August 1, 1994. Under
SFAS No. 115, the Company classifies its debt and marketable equity
securities as trading securities that are principally being held
for an unspecified period of time, as such, the Company may
consider selling them to meet liquidity needs or as part of the
Company's risk management program.
Trading securities are recorded at fair value. Dividend and
interest income are recognized when earned. Realized and
unrealized gains and losses are included in earnings and are
derived using the specific identification method for determining
the cost of securities sold.
(3) Accounts Receivable
Accounts receivable consist of the following:
April 30, July 31,
1995 1994
---------- ----------
Accounts receivable from commercial
customers $1,860,000 $2,386,000
Unbilled receivables (including
retainages) on contracts-in-progress 752,000 1,197,000
Amounts receivable from the United
States Government and its agencies 868,000 331,000
---------- ----------
3,480,000 3,914,000
Less allowance for doubtful accounts 136,000 136,000
---------- ----------
Accounts receivable, net $3,344,000 $3,778,000
========== ==========
-7-
(4) Inventories
Inventories consist of the following:
April 30, July 31,
1995 1994
---------- ----------
Raw materials and components $1,685,000 $ 711,000
Work-in-process 3,767,000 4,079,000
---------- ----------
5,452,000 4,790,000
Less:
Progress payments 9,000 321,000
Inventory reserves 529,000 578,000
---------- ----------
Inventories - net $4,914,000 $3,891,000
========== ==========
(5) Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the
following:
April 30, July 31,
1995 1994
---------- ----------
Customer advances and deposits $ 53,000 $ 243,000
Accrued wages and benefits 466,000 489,000
Accrued commissions 342,000 904,000
Other 526,000 $ 549,000
---------- ----------
$1,387,000 $2,185,000
========== ==========
(6) Long-Term Debt
Long-term debt consists of the following:
April 30, July 31,
1995 1994
---------- ----------
Obligations under capital leases $3,010,000 $3,045,000
Less current installments 480,000 510,000
---------- ----------
$2,530,000 $2,535,000
========== ==========
(7) Income Taxes
For the nine months ended April 30, 1995 and 1994, the
provision for income taxes was $12,000 and $10,000, respectively.
The provision for income taxes included in the accompanying
consolidated statements of operations consisted entirely of
estimated state and local income taxes.
-8-
The tax effects of temporary differences that give rise to
significant portions of the deferred tax assets at July 31, 1994
are presented below. There are no temporary differences that give
rise to deferred tax liabilities.
Deferred tax asset:
Allowances for doubtful accounts receivable $ 47,000
Inventories, principally due to additional costs
inventoried for tax purposes pursuant to the Tax
Reform Act of 1986 259,000
Plant and equipment, principally due to capitalized
interest and differences in depreciation 244,000
Compensated absences, principally due to accrual
for financial reporting purposes 95,000
Net operating loss carryforwards 4,111,000
Investment tax credit carryforwards 440,000
Alternative minimum tax credit carryforwards 87,000
Other 134,000
----------
Total gross deferred tax assets 5,417,000
Less valuation allowance (5,417,000)
----------
Net deferred tax assets $ -
==========
The valuation allowance for deferred tax assets as of July 31,
1994 was $5,417,000. In assessing the realizability of deferred
tax assets, management considers whether it is more likely than not
that some portion or all of the deferred tax assets will not be
realized.
The ultimate realization of deferred tax assets is dependent
upon the generation of future taxable income during the periods in
which those temporary differences become deductible. Management
considers projected future taxable income and tax planning
strategies in making this assessment. In order to fully realize
the deferred tax asset, the Company will need to generate future
taxable income of approximately $13,000,000. Taxable loss for the
nine months ended April 30, 1995 was approximately $1,450,000.
Based upon the level of historical taxable income and projections
for future taxable income over the periods which the deferred tax
assets are deductible, management believes it is more likely than
not the Company will not realize the benefits of these deferred tax
assets and has fully reserved the deferred asset.
(8) Earnings Per Share
Earnings per share are based on the weighted average number of
common and common equivalent shares (if dilutive) outstanding
during each year.
-9-
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
COMPARISON OF THE RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED
APRIL 30, 1995 AND APRIL 30, 1994
Net Sales. Net sales were $4,494,000 and $2,792,000 for the three
months ended April 30, 1995 and 1994, respectively, representing an
increase of approximately 61%. The higher sales were principally
due to increased sales of solid state amplifiers and other related
equipment at our Comtech Microwave Products subsidiary. The
Company's backlog of orders at April 30, 1995 was $8,957,000
compared to a backlog of $5,963,000 at April 30, 1994 and
$5,003,000 at July 31, 1994.
It is typical of the Company's business that a substantial portion
is derived from a limited number of relatively large customer
contracts, the timing of which cannot be predicted. Sales that
relate to contracts extending for more than 12 months are accounted
for on a percentage-of-completion basis, which results in the
recognition of sales and the recording of unbilled accounts
receivable prior to the delivery of the products to which they
relate. All other sales are recorded on the unit of delivery
method. As a result of these and other factors, the Company has
experienced, and will experience in the future, significant
fluctuations in sales, bookings and operating results from quarter
to quarter.
Gross Margin. Gross profit was $949,000 and $660,000 for the three
month period ended April 30, 1995 and 1994, respectively,
representing a period-to-period increase of $289,000, or
approximately 44%. This increase was mainly attributable to the
higher level of sales, partially offset by charges of $236,000 for
inventory valuation and other related adjustments. Gross margins,
as a percentage of sales overall, were 21.1% and 23.6% for these
periods. The fiscal 1995 period was adversely impacted by the
above mentioned inventory adjustments and the continued start-up
expenses being incurred at the Comtech Communications Corp.
subsidiary formed in February 1994.
Selling, General and Administrative. Selling, general and
administrative expenses were $1,233,000 and $1,359,000 for the
three month period ended April 30, 1995 and 1994, respectively,
representing a period to period decrease of $126,000 or
approximately 9%. The decrease in expenses was primarily
attributable to the effect of general cost reductions at our
Florida and New York operating subsidiaries which were partially
offset by increased expenses at Comtech Communications Corp.
-10-
Research and Development. Research and development expenses were
$312,000 and $255,000 for the three months ended April 30, 1995 and
1994, respectively, representing an increase of $57,000, or 22%.
The increase was principally attributable to increased research and
development efforts at Comtech Communications Corp.
Results from Operations. As a result of the foregoing factors, the
results from operations were a loss of $596,000 and $954,000 for
the three months ended April 30, 1995 and 1994, respectively.
Interest Expense. Interest expense was $94,000 and $70,000 for the
three months ended April 30, 1995 and 1994, respectively. Interest
expense is mainly attributable to the Company's capitalized lease
obligations. There were no borrowings during the period under the
Company's bank line of credit.
Interest Income. Interest income was $48,000 and $55,000 for the
three months ended April 30, 1995 and 1994, respectively. The
decrease in the 1995 period was due primarily to lower average cash
balances for the period due to the greater utilization of available
cash for working capital requirements, and a corresponding
reduction of funds under investment.
Provision for Income Taxes. The provision for income taxes was
$4,000 and zero for the three months ended April 30, 1995 and 1994,
respectively. The provisions principally relate to state income
taxes. The Company files on a consolidated basis for federal
income tax purposes and is not expected to incur federal taxes for
these periods due to the losses incurred and the net operating loss
carryforwards that the Company has available from prior years.
COMPARISON OF THE RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED
APRIL 30, 1995 AND APRIL 30, 1994
Net Sales. Net sales were $11,535,000 and $11,295,000 for the nine
months ended April 30, 1995 and 1994, respectively, representing a
period-to-period increase of $240,000, or approximately 2%.
Gross Margin. Gross profit was $2,880,000 and $2,855,000 for the
nine month period ended April 30, 1995 and 1994, respectively,
representing a period-to-period increase of $25,000. Gross margins
overall remained consistant at approximately 25%. Increased gross
margins on solid-state amplifiers were offset by inventory
valuation and other related adjustments.
Selling, General and Administrative. Selling, general and
administrative expenses were $3,540,000 and $3,665,000 for the nine
months ended April 30, 1995 and 1994, respectively, representing a
decrease of $125,000. Although higher expenses were incurred at
the Comtech Communications Corp. subsidiary in the fiscal 1995
period, the impact was mitigated by cost reductions instituted at
the other subsidiaries and corporate headquarters.
-11-
Research and Development. Research and development expenses were
$762,000 and $541,000 for the nine months ended April 30, 1995 and
1994, respectively, representing an increase of $221,000, or
approximately 41%. This was due to increased efforts and the
related expenses in research and development at the Comtech
Communications Corp. subsidiary. These efforts have resulted in
the development of new products which are expected to yield
deliveries commencing in the fourth quarter of fiscal 1995.
Results of Operations. As a result of the foregoing factors, the
Company had operating losses of $1,422,000 and $1,351,000 for the
nine months ended April 30, 1995 and 1994, respectively.
Interest Expense. Interest expense was $248,000 and $208,000 for
the nine months ended April 30, 1995 and 1994, respectively.
Interest expense is mainly attributable to the Company's
capitalized lease obligations. There were no borrowings during the
respective periods under the Company's bank line of credit.
Interest Income. Interest income was $144,000 and $187,000 for the
nine months ended April 30, 1995 and 1994, respectively. The
decrease in the 1995 period was due primarily to lower average cash
balances for the period due to the greater utilization of available
cash for working capital requirements, and a corresponding
reduction of funds under investment.
Provision for Income Taxes. The provision for income taxes was
$12,000 and $10,000 for the nine months ended April 30, 1995 and
1994, respectively. The provisions principally relate to state
income taxes. The Company files on a consolidated basis for
federal income tax purposes and is not expected to incur federal
taxes for these periods due to the losses incurred and the net
operating loss carryforwards that the Company has available from
prior years.
LIQUIDITY AND CAPITAL RESOURCES
As of April 30, 1995, the Company's cash and cash equivalents
totalled $1,937,000 as compared to $505,000 at July 31, 1994.
Marketable investment securities were $1,200,000 and $5,365,000 at
April 30, 1995 and July 31, 1995, respectively.
Operating activities used $1,894,000 as a result of a net loss as
adjusted for depreciation and other non-cash charges, an increase
in inventories and prepaid expenses, a decrease in accrued expenses
and other current liabilities which were offset partially by a
decrease in accounts receivable and other assets as well as an
increase in accounts payable.
Accounts receivable were $3,344,000 at April 30, 1995 as compared
to $3,778,000 at July 31, 1994 net of an allowance for doubtful
accounts of $136,000 in both periods. Of these amounts $2,592,000
and $2,581,000, respectively, represented net amounts due from
customers for products and services rendered as of April 30, 1995
and July 31, 1994, respectively, and the balances of $752,000 and
-12-
$1,197,000, respectively, represented unbilled amounts for sales
recorded on a percentage-of-completion basis as of such dates. The
portion of accounts receivable represented by unbilled accounts
receivable will vary at any time as a function of the volume of
contracts being performed by the Company that are accounted for on
a percentage-of-completion basis. The Company believes that its
allowance for doubtful accounts is sufficient based on past
experience and the Company's credit standards. The Company
generally requires international customers to secure their
obligations by letter of credit.
Inventory levels of materials and components and work-in-process,
net of progress payments and reserves were $4,914,000 and
$3,891,000 at April 30, 1995 and July 31, 1994, respectively. The
Company generally operates on a job-order cost basis, that is costs
are incurred as work-in-process inventory for specific contracts or
"jobs". However, in order to provide a more competitive response
to customer requirements, the Company is maintaining a certain
level of "off-the-shelf" equipment for certain of its products.
The only general raw materials inventory that the Company maintains
is for basic components which are common for most of its products.
Investing activities provided $3,735,000 of cash principally as the
result of the net proceeds from the sales of marketable securities
less the amount utilized for the purchase of property, plant and
equipment.
Financing activities used $409,000 of cash due to the net principal
payments of long-term debt resulting from capital lease
obligations.
From time to time the Company utilizes short-term bank financing to
fund its working capital requirements. The Company has a $4.5
million credit facility which expires on January 31, 1996. The
facility is to finance working capital requirements and is
available for direct borrowing and standby letters of credit.
Direct borrowings under the line will bear interest at 1% over the
prime rate and is secured at the time of borrowing with collateral
satisfactory to the financial institution. There were no
borrowings under the Company's credit facility during the nine
months ended April 30, 1995.
The Company believes that its current cash position, funds
generated from operations and funds available from its current
credit facility, collectively, would be adequate to meet the
Company's cash requirements.
The Company's cash investments consist of highly liquid interest
bearing commercial paper, corporate notes and U.S. treasury
obligations.
-13-
PART II
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 11.
The following exhibit is annexed hereto:
Computation of Loss per Common Share - Page 14
-14-
Exhibit 11.0
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
COMPUTATION OF LOSS PER COMMON SHARE
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
April 30 April 30
------------------- -------------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net Loss $ (646,000) $ (969,000) $(1,538,000) $(1,382,000)
========== ========== =========== ===========
Computation of weighted average
number of common equivalent
shares outstanding during the period:
Weighted average number of common
shares 2,605,344 2,597,254 2,605,344 2,509,525
Weighted average shares assumed
to be issued upon exercise of
common stock option - - - -
Less Treasury Stock (15,000) (15,000) (15,000) (15,000)
Weighted average number of
common and common equivalent
shares outstanding during the
period 2,590,344 2,582,254 2,590,344 2,494,525
========== ========== ========== ==========
Loss per share: $ (.25) $ (.38) $ (.59) $ (.55)
=========== ========= =========== ==========
</TABLE>
-15-
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.
COMTECH TELECOMMUNICATIONS CORP.
--------------------------------
(Registrant)
Date: June 8, 1995 By: s/Fred Kornberg
----------------------------
Fred Kornberg
Chairman of the Board
Chief Executive Officer
and President
Date: June 8, 1995 By: s/J. Preston Windus, Jr.
----------------------------
J. Preston Windus, Jr.
Chief Financial Officer
Vice President and Secretary
-15-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUL-31-1995
<PERIOD-END> APR-30-1995
<CASH> 1937
<SECURITIES> 1200
<RECEIVABLES> 3344
<ALLOWANCES> 136
<INVENTORY> 4914
<CURRENT-ASSETS> 11805
<PP&E> 13431
<DEPRECIATION> 9192
<TOTAL-ASSETS> 16534
<CURRENT-LIABILITIES> 3989
<BONDS> 0
<COMMON> 261
0
0
<OTHER-SE> 9754
<TOTAL-LIABILITY-AND-EQUITY> 16534
<SALES> 11535
<TOTAL-REVENUES> 11535
<CGS> 8655
<TOTAL-COSTS> 12957
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 104
<INCOME-PRETAX> (1526)
<INCOME-TAX> 12
<INCOME-CONTINUING> (1538)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1538)
<EPS-PRIMARY> (.59)
<EPS-DILUTED> (.59)
</TABLE>