<PAGE>
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, 1997
-----------------------------------------------------------
( ) 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 Identification Number)
incorporation or organization)
---------------------------------------------------------------------------
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 - 2,650,404 shares outstanding as of
04/30/97.
1
<PAGE>
COMTECH TELECOMMUNICATIONS CORP.
--------------------------------
INDEX
-----
Page
No.
----
PART I FINANCIAL INFORMATION
Consolidated Balance Sheets - 3
April 30, 1997 (unaudited) and
July 31, 1996
Consolidated Statements of Operations - 4
Three Months and Nine Months Ended
April 30, 1997 and 1996 (unaudited)
Consolidated Statements of Cash Flows - 5
Nine Months Ended April 30, 1997 and 1996
(unaudited)
Notes to Consolidated Financial Statements 6-7
Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-10
PART II OTHER INFORMATION 11
Exhibit 11.0 Computation of Earnings (Loss) Per
Common Share 12
Signature Page 13
2
<PAGE>
PART I
------
FINANCIAL INFORMATION
---------------------
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
-------------------------------------------------
CONSOLIDATED BALANCE SHEETS
---------------------------
<TABLE>
<CAPTION>
April 30, 1997 July 31, 1996
-------------- -------------
(unaudited)
<S> <C> <C>
ASSETS:
Current assets:
Cash and cash equivalents $ 1,474,000 $ 1,840,000
Restricted cash 90,000 220,000
Accounts receivable, less allowance for doubtful
accounts of $68,000 at April 30, 1997
and $28,000 at July 31, 1996 4,098,000 3,467,000
Inventories, net 7,793,000 6,527,000
Prepaid expenses and other current assets 263,000 196,000
---------------- --------------
Total current assets 13,718,000 12,250,000
---------------- --------------
Property, plant and equipment, net 3,743,000 3,996,000
Other assets 332,000 383,000
---------------- --------------
Total assets $ 17,793,000 $ 16,629,000
---------------- --------------
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Current installments of long-term debt (including
payable to related party of $376,000 at April 30,
1997 and $351,000 at July 31, 1996) $ 620,000 $ 642,000
Notes Payable 300,000 --
Accounts payable 2,756,000 2,037,000
Accrued expenses and other current liabilities 1,986,000 1,774,000
---------------- --------------
Total current liabilities 5,662,000 4,453,000
---------------- --------------
Long-term debt, less current installments
(including payable to related party of $1,227,000
at April 30, 1997 and $1,512,000 at July 31, 1996) 1,455,000 1,875,000
---------------- --------------
Total liabilities 7,117,000 6,328,000
---------------- --------------
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 2,650,404
shares at April 30, 1997 and 2,607,344 at July 31, 1996 265,000 261,000
Additional paid-in capital 22,285,000 22,235,000
Accumulated deficit (11,287,000) (11,599,000)
---------------- --------------
11,263,000 10,897,000
Less:
Treasury stock (55,000 shares at April 30, 1997 15,000 (184,000) (180,000)
shares at July 31, 1996)
Deferred compensation expense (403,000) (416,000)
---------------- --------------
10,676,000 10,301,000
Total liabilities and stockholders' equity $ 17,793,000 $ 16,629,000
---------------- --------------
See accompanying notes to consolidated financial statements
</TABLE>
3
<PAGE>
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
-------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
-------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
April 30, April 30,
------------------ ------------------
1997 1996 1997 1996
---- ---- ---- ----
Unaudited Unaudited Unaudited Unaudited
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net sales $ 5,531,000 $ 5,263,000 $ 16,767,000 $ 14,466,000
------------ ------------ ------------ ------------
Operating costs and expenses:
Cost of sales 3,696,000 3,670,000 11,929,000 10,125,000
Selling, general and administrative 1,395,000 1,287,000 3,678,000 3,654,000
Research and development 293,000 556,000 164,000 751,000
------------ ------------ ------------ ------------
Total operating costs and expenses 5,384,000 5,121,000 16,358,000 14,335,000
------------ ------------ ------------ ------------
Operating earnings 147,000 142,000 409,000 131,000
Other (expenses) income:
Interest expense (67,000) (76,000) (215,000) (233,000)
Interest income 3,000 18,000 16,000 55,000
Other income 6,000 - 123,000 -
------------ ------------ ------------ ------------
Earnings (loss) before provision for income taxes 89,000 84,000 333,000 (47,000)
Provision for income taxes 6,000 5,000 21,000 15,000
------------ ------------ ------------ ------------
Net income (loss) $ 83,000 $ 79,000 $ 312,000 $ (62,000)
------------ ------------ ------------ ------------
Earnings (loss) per share $ .03 $ .03 $ .12 $ (.02)
------------ ------------ ------------ ------------
Weighted average number of common
and common equivalent shares
outstanding 2,601,660 2,590,344 2,580,355 2,590,344
------------ ------------ ------------ ------------
</TABLE>
See accompanying notes to consolidated financial statements
4
<PAGE>
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
-------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
-------------------------------------
<TABLE>
<CAPTION>
Nine Months Ended
April 30,
------------------
(unaudited)
1997 1996
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 312,000 4 (62,000)
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Gain on sale of property (72,000)
Depreciation and amortization 793,000 733,000
Amortization (reversal) of deferred compensation expense net (40,000) 108,000
Gain on settlement of claim --- (165,000)
Changes in assets and liabilities:
Accounts receivable (631,000) 161,000
Inventories (1,265,000) (1,905,000)
Prepaid expenses and other current assets (67,000) 38,000
Other assets (6,000) (2,000)
Accounts payable 719,000 381,000
Notes Payble 300,000 ---
Accrued expenses and other current liabilities 212,000 431,000
--------------- --------------
Net cash provided by (used in) operating activities 255,000 (282,000)
--------------- --------------
Cash flows from investing activities:
Purchases of property, plant and equipment (494,000) (372,000)
Sale of property, plant and equipment 127,000 ---
Net proceeds of sales of marketable securities --- 279,000
--------------- --------------
Net cash used in investing activities (367,000) (93,000)
--------------- --------------
Cash flows from financing activities:
Principal payments on long-term debt (486,000) (386,000)
Proceeds from exercise of stock options 106,000 ---
Purchase of treasury stock (4,000) ---
--------------- --------------
Net cash used in financing activities (384,000) (386,000)
Net decrease in cash and cash equivalents (496,000) (761,000)
Cash and cash equivalents at beginning of period 2,060,000 2,044,000
--------------- --------------
Cash and cash equivalents at end of period $ 1,564,000 $ 1,283,000
--------------- --------------
Supplemental cash flow disclosure:
Cash paid during the period for:
Interest $ 215,000 $ 233,000
Income taxes $ 21,000 $ 15,000
Non cash items:
The Company entered into new capitalized lease agreements in the amount
of $44,000 and $195,000 during the nine months ended April 30, 1997 and
1996, respectively.
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE>
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
-------------------------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(1) General
The accompanying consolidated financial statements for the nine months
ended April 30, 1997 and 1996 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 nine months ended
April 30, 1997 are not necessarily indicative of the results of operations to be
expected for the full year.
(2) Accounts Receivable
Accounts receivable consist of the following:
<TABLE>
<CAPTION>
April 30, 1997 July 31, 1996
-------------- -------------
<S> <C> <C>
Accounts receivable from commercial customers $3,643,000 $2,079,000
Unbilled receivables (including retainages) on
contracts-in-progress 272,000 689,000
Amounts receivable from the United States Government
and its agencies 251,000 727,000
---------- ----------
4,166,000 3,495,000
Less allowance for doubtful accounts 68,000 28,000
---------- ----------
Accounts receivable, net $4,098,000 $3,467,000
---------- ----------
<CAPTION>
(3) Inventories
Inventories consist of the following:
April 30, 1997 July 31, 1996
-------------- -------------
<S> <C> <C>
Raw materials and components $2,108,000 $1,754,000
Work-in-process 7,147,000 5,414,000
----------- ------------
9,255,000 7,168,000
Less:
Progress payments 680,000 151,000
Inventory reserves 782,000 490,000
----------- ------------
Inventories - net $7,793,000 $6,527,000
----------- ------------
<CAPTION>
(4) Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following:
April 30, 1997 July 31, 1996
-------------- -------------
<S> <C> <C>
Customer advances and deposits $516,000 $208,000
Accrued wages and benefits 518,000 680,000
Accrued commissions 464,000 355,000
Other 488,000 531,000
----------- ------------
$1,986,000 $1,774,000
----------- ------------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
(5) Long-Term Debt
Long-term debt consists of the following:
April 30, 1997 July 31, 1996
-------------- -------------
<S> <C> <C>
Obligations under capital leases $ 2,075,000 $2,517,000
Less current installments 620,000 642,000
----------- ----------
$ 1,455 000 $1,875,000
----------- ----------
</TABLE>
(6) 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.
7
<PAGE>
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
-------------------------------------------------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
---------------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS
-----------------------------------
Forward-Looking Statements
--------------------------
Certain information contained in this Quarterly Report on Form 10-Q,
including, without limitation, information appearing under Part I, Item 2,
"Management's Discussion and Analysis of Financial Condition and Results of
Operations," are 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). Factors set forth in the Company's Annual Report on Form 10-K, filed
October 31, 1996, or in the Company's other Securities and Exchange Commission
filings, could affect the Company's actual results and could cause the Company's
actual results to differ materially from those expressed in any forward-looking
statements made by, or on behalf of, the Company in this Quarterly Report on
Form 10-Q.
COMPARISON OF THE RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED APRIL
- ---------------------------------------------------------------------------
30, 1997 AND APRIL 30, 1996
- ----------------------------
Net Sales. Net sales were $5,531,000 and $5,263,000 for the three months ended
April 30, 1997 and 1996, respectively, representing an increase of 5.1%. This
increase was due primarily to a higher level of sales of satellite frequency
converters at the Company's Comtech Communications Corp. subsidiary.
Gross Margin. Gross profit was $1,835,000 or 33.2% of net sales for the three
months ended April 30, 1997 compared to $1,593,000 or 30.3% of net sales for the
same period in fiscal 1996. Higher gross profits in the fiscal 1997 period were
due primarily to the higher sales volume, and higher gross profit margins, as a
percentage of sales, at Comtech PST Corp. and Comtech Communications Corp.
Selling, General and Administrative. Selling, general and administrative
expenses were $1,395,000 or 25.2% of net sales for the three months ended April
30, 1997 compared to $1,287,000 or 24.4% of net sales for the same period in
fiscal 1996. The increased expense was due primarily to a higher level of
expenses for bid and proposal expenses at the Comtech Systems, Inc. and Comtech
PST Corp. subsidiaries.
Research and Development. Research and development expenses were $293,000 and
$164,000 for the three months ended April 30, 1997 and 1996, respectively,
representing a $129,000, or 78.7% increase. This increase was due primarily to
expenses for product improvements at Comtech PST Corp. and Comtech Systems, Inc.
and new product development at Comtech Communications Corp.
Results from Operations. As a result of the foregoing factors, the Company had
operating earnings of $147,000 for the three months ended April 30, 1997
compared to operating earnings of $142,000 for the comparable prior year period.
Interest Expense. Interest expense was $67,000 and $76,000 for the three months
ended April 30, 1997 and 1996, respectively. Interest expense for both periods
was attributable largely to interest associated with the Company's capital lease
obligations.
Interest Income. Interest income was $3,000 and $18,000 for the three months
ended April 30, 1997 and 1996, respectively. This decrease was due primarily to
the decrease in the amount of cash available to invest in the fiscal 1997
period.
Other Income. Other income in the fiscal 1997 period was the result of the sale
of fully depreciated equipment.
8
<PAGE>
Provision for Income Taxes. The provision for income taxes was $6,000 and $5,000
for the three months ended April 30, 1997 and 1996, respectively, which
principally relates 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 previous losses incurred. The Company believes its
tax benefits are subject to a 100% valuation allowance due to earnings
fluctuations inherent in the Company's operations and the potential limitations
on utilization of loss and credit carryforwards pursuant to Sections 382 and 383
of the Internal Revenue Code of 1986.
COMPARISON OF THE RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED APRIL 30, 1997
- --------------------------------------------------------------------------------
AND APRIL 30, 1996
- ------------------
Net Sales. Net sales were $16,767,000 and $14,466,000 for the nine months ended
April 30, 1997 and 1996, respectively, representing an increase of $2,301,000 or
15.9%. The increase in sales was due primarily to a higher level of sales of
solid state amplifiers and satellite frequency converters at Comtech PST Corp.
and Comtech Communications Corp., respectively.
Gross Margin. Gross profit was $4,838,000 or 28.9% of net sales for the nine
months ended April 30, 1997 compared to $4,341,000 or 30% of net sales for the
same period in fiscal 1996. Higher gross profits in the fiscal 1997 period were
due primarily to the higher sales volume. Lower gross profit margins, as a
percentage of net sales, in the 1997 period were due primarily to lower gross
margins at Comtech Systems, Inc.
Selling, General and Administrative. Selling, general and administrative
expenses were $3,678,000 or 21.9% for the nine months ended April 30, 1997
compared to $3,654,000 or 25.2% of net sales for the same period in fiscal 1996.
Included in fiscal 1997 is the forfeiture of certain benefits by a former
employee relating to a restricted stock purchase agreement, which resulted in a
reduction of $79,000 to administrative expenses.
Research and Development. Research and development expenses were $751,000 and
$556,000 for the nine months ended April 30, 1997 and 1996, respectively,
representing a $195,000 or 35.1% increase. This increase was due primarily to
expenses for product improvements at the Company's Comtech PST Corp. and Comtech
Systems, Inc. subsidiaries and new product development at Comtech Communications
Corp. which was partially offset by a decrease in these expenses at Comtech
Antenna Systems, Inc.
Results From Operations. As a result of the foregoing factors, the Company had
operating earnings of $409,000 for the nine months ended April 30, 1997 compared
to an operating profit of $131,000 for the comparable prior year period.
Interest Expense. Interest expense was $215,000 and $233,000 for the nine months
ended April 30, 1997 and 1996, respectively. Interest expense for both periods
was attributable largely to interest associated with the Company's capital lease
obligations.
Interest Income. Interest income was $16,000 and $55,000 for the nine months
ended April 30, 1997 and 1996, respectively. This decrease was due primarily to
the decrease in the amount of cash available to invest in the fiscal 1997
period.
Other Income. Other income in the fiscal 1997 period was primarily the result of
the gain on the sale of a storage facility and fully depreciated equipment, and
a finders fee the Company earned relating to an agreement with a foreign
original equipment manufacturer.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
For the nine month period ended April 30, 1997, the Company's cash and cash
equivalent position decreased by $496,000 from $2,060,000 at July 31, 1996 to
$1,564,000 at April 30, 1997.
9
<PAGE>
Operating activities used a net of $255,000. Accounts receivable were $4,098,000
at April 30, 1997 as compared to $3,467,000 at July 31, 1996, representing an
increase of $631,000. This increase was primarily the result of the increase in
sales. Included in these balances were $272,000 and $689,000 for April 30, 1997
and July 31 1996, respectively, for unbilled accounts receivable for sales
recorded on a percentage-of-completion basis. The portion of accounts receivable
that are accounted for on a percentage-of-completion basis 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 $7,793,000 at April 30, 1997 and $6,527,000
at July 31, 1996, representing an increase of $1,266,000. This increase was due
primarily to the additional inventory required to address the increased backlog
at April 30, 1997. 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" and, accordingly, inventory levels will vary as a function of the
status of the Company's order backlog. The Company does have some product lines
which require a more competitive response to customers requirements and require
the Company to provide for a level of "off-the-shelf" equipment. The only other
general inventory that the Company maintains is for basic components which are
common for most of its products.
Accounts payable increased by $719,000, from July 31, 1996 to April 30, 1997
primarily as a result of the increased sales volume requiring increased
inventory purchases.
Accrued expenses and other current liabilities increased by $212,000 as a result
of an increase in customer advance payments and accrued commissions, partially
offset by a decrease in accrued wages and benefits and other expenses.
Investing activities used $367,000 of cash. The Company used $494,000 of cash
for purchases of equipment. It received $127,000 as proceeds from the sale of a
storage facility it previously owned and recognized a $72,000 profit from the
sale which is included as other income.
Financing activities used $384,000. The Company received $106,000 as proceeds
from the exercise of employee incentive stock options. Principal payments on
long term debt were $486,000. Additionally, the Company purchased forfeited
restricted employee stock which has been added to the Company's treasury stock.
In December 1996 the Company obtained a new $5,000,000 secured credit facility
from Republic National Bank of New York. The line of credit which is to be used
for working capital requirements is for a term of one year and bears interest on
borrowings of 1/2% over the bank's Reference Rate. There was $300,000 of
borrowings outstanding at April 30, 1997. A component of this facility is the
administration by Republic of $1,000,000 of loans under the Working Capital
Guarantee Program of the Export-Import Bank of the United States. This program
provides the lender a 90% guarantee on qualifying loans made to the Company for
export related contracts. The Company has not utilized this program to date.
The Company believes that its current cash position, funds generated from
operations and funds available from its credit facility, collectively, would be
adequate to meet the Company's cash requirements.
10
<PAGE>
PART II
-------
OTHER INFORMATION
-----------------
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibit 11.0
The following exhibit is annexed hereto:
Computation of Earnings (Loss) per Common Share - Page 12
11
<PAGE>
Exhibit 11.0
COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES
-------------------------------------------------
COMPUTATION OF EARNINGS (LOSS) PER COMMON SHARE
-----------------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
April 30 April 30
------------------ -----------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net earnings (loss) $ 83,000 $ 79,000 $ 312,000 $ ( 62,000)
- ------------------- ============= ============= ============ ===============
Computation of weighted average number of
common equivalent shares outstanding
during the period:
Weighted average number of
common shares 2,645,621 2,605,344 2,626,386 2,605,344
Weighted average shares assumed to be
issued upon exercise of common
stock option 11,039 8,969
Less Treasury Stock (55,000) (15,000) (55,000) (15,000)
--------------- --------------- ---------------- ---------------
Weighted average number of common
and common equivalent shares
outstanding during the period 2,601,660 2,590,344 2,580,355 2,590,344
============= ============= ============== =============
Earnings (loss) per share: $ .03 $ .03 $ .12 $ (.02)
--------------- --------------- ---------------- ---------------
</TABLE>
12
<PAGE>
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 10, 1997 By:
---------------------------
Fred Kornberg
Chairman of the Board
Chief Executive Officer
and President
Date: June 10, 1997 By:
---------------------------
J. Preston Windus, Jr.
Vice President, Chief Financial
Officer and Secretary
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
CONSOLIDATED FINANCIAL STATEMENTS FORM 10Q - 4/30/97 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-START> AUG-01-1996
<PERIOD-END> APR-30-1997
<CASH> 1,564
<SECURITIES> 0
<RECEIVABLES> 4,166
<ALLOWANCES> 68
<INVENTORY> 7,793
<CURRENT-ASSETS> 13,718
<PP&E> 14,506
<DEPRECIATION> 10,763
<TOTAL-ASSETS> 17,793
<CURRENT-LIABILITIES> 5,662
<BONDS> 0
0
0
<COMMON> 265
<OTHER-SE> 10,998
<TOTAL-LIABILITY-AND-EQUITY> 17,793
<SALES> 16,767
<TOTAL-REVENUES> 16,767
<CGS> 11,929
<TOTAL-COSTS> 16,358
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 215
<INCOME-PRETAX> 333
<INCOME-TAX> 21
<INCOME-CONTINUING> 312
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 312
<EPS-PRIMARY> .12
<EPS-DILUTED> .12
</TABLE>
