<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File Number 0-4748
-------------------------------
Data Dimensions, Inc.
- --------------------------------------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Delaware 06-0852458
- --------------------------------------------------------------------------------
(NAME OR OTHER JURISDICTION OF (IRS EMPLOYER IDENTIFICATION NO.)
INCORPORATION OR ORGANIZATION)
One Bellevue Center, 411 - 108th Avenue NE, Suite 2100, Bellevue, WA 98004
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (425) 688-1000
------------------------------
Indicate by check 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 [ ].
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date
Common Stock: 13,641,463 shares as of July 31, 1999
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<PAGE> 2
DATA DIMENSIONS, INC.
Index
<TABLE>
<CAPTION>
Page
Number
------
<S> <C>
PART I - FINANCIAL INFORMATION.
Item 1. Consolidated Financial Statements.
Consolidated Balance Sheets at June 30, 1999 (unaudited) and December 31, 1998. 3
Consolidated Statements of Operations for the three month and six month
periods ended June 30, 1999 and 1998 (unaudited). 4
Consolidated Statements of Comprehensive Income for the three month and
six month periods ended June 30, 1999 and 1998 (unaudited). 4
Consolidated Statements of Cash Flows for the six month periods ended
June 30, 1999 and 1998 (unaudited). 5
Notes to Consolidated Financial Statements. 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations. 7
Item 3. Quantitative and Qualitative Disclosure About Market Risk. 9
PART II - OTHER INFORMATION.
Item 4. Submission of Matters to a Vote of Security Holders. 10
Item 6. Exhibits and Reports on Form 8-K. 10
SIGNATURES 11
</TABLE>
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
DATA DIMENSIONS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
----------- -----------
(unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 3,464 $ 776
Accounts receivable, net 32,122 36,876
Prepaid and other current assets 2,330 2,850
Deferred income taxes 1,622 1,140
----------- -----------
Total current assets 39,538 41,642
Equipment and furniture, net 7,691 8,467
Investment in product development, net 597 1,016
Other assets 670 812
----------- -----------
Total assets $ 48,496 $ 51,937
=========== ===========
Current liabilities:
Accounts payable $ 4,394 $ 4,571
Accrued compensation and commissions 7,320 6,157
Other accrued liabilities 2,368 3,596
Current portion of capital lease obligations 1,398 1,161
Income taxes payable 227 5,997
Deferred income taxes 550 797
----------- -----------
Total current liabilities 16,257 22,279
Capital lease obligations, net of current portion 1,597 1,976
Other long term liabilities 183 180
----------- -----------
Total liabilities 18,037 24,435
----------- -----------
Commitments and contingencies (Note 2 )
Stockholders' equity:
Common stock, $.001 par value; 20,000 shares
authorized; 13,533 and 13,521 outstanding 13 13
Additional paid in capital 24,604 24,539
Treasury stock, at cost, 112 shares in 1999 and 1998 (3,034) (3,034)
Retained earnings 9,077 6,104
Cumulative comprehensive loss (201) (120)
----------- -----------
Total stockholders' equity 30,459 27,502
----------- -----------
Total liabilities and stockholders' equity $ 48,496 $ 51,937
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
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DATA DIMENSIONS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Month Periods Six Month Periods
Ended June 30, Ended June 30,
----------------------- -----------------------
1999 1998 1999 1998
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenue
Field consulting $ 24,469 $ 20,255 $ 48,556 $ 35,325
Outsourcing services 3,881 2,456 8,107 4,386
Test centers 3,007 3,485 6,170 6,800
Other 922 935 1,664 1,850
-------- -------- -------- --------
Total revenue 32,279 27,131 64,497 48,361
Direct costs 20,646 15,651 40,158 27,498
-------- -------- -------- --------
Gross margin 11,633 11,480 24,339 20,863
Selling, general and administrative expenses 9,194 8,538 19,294 16,394
-------- -------- -------- --------
Income from operations 2,439 2,942 5,045 4,469
Other income (expense) (93) (187) (171) (215)
-------- -------- -------- --------
Income before income tax 2,346 2,755 4,874 4,254
Income tax provision 915 1,225 1,901 1,850
-------- -------- -------- --------
Net income $ 1,431 $ 1,530 $ 2,973 $ 2,404
======== ======== ======== ========
Earnings per share-basic $ 0.11 $ 0.11 $ 0.22 $ 0.18
Earnings per share-diluted $ 0.11 $ 0.11 $ 0.22 $ 0.18
Weighted average shares outstanding-basic 13,533 13,372 13,531 13,271
Weighted average shares outstanding-diluted 13,553 13,587 13,569 13,587
</TABLE>
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
Net Income $ 1,431 $ 1,530 $ 2,973 $ 2,404
Other comprehensive income (loss) - foreign
currency translation adjustments (36) (235) (81) (133)
------- ------- ------- -------
Comprehensive income $ 1,395 $ 1,295 $ 2,892 $ 2,271
======= ======= ======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements.
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DATA DIMENSIONS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Six Month Periods Ended June 30,
--------------------------------
1999 1998
------------- ----------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 2,973 $ 2,404
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation and amortization 3,055 1,471
Deferred income tax provision (benefit) (729) 1,850
Changes in certain operating assets and liabilities
Accounts receivable 4,754 (5,835)
Prepaid and other assets 75 (163)
Accounts payable (177) 2,115
Advanced billings (300) (1,179)
Accrued compensation and commissions 1,163 1,249
Income taxes payable (5,770) --
Other (453) 239
----------- -----------
Net cash provided by operating activities 4,591 2,151
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Maturities and sales of investments -- 986
Purchases of equipment and furniture (1,076) (2,172)
Investment in product development -- (48)
----------- -----------
Net cash used by investing activities (1,076) (1,234)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short term debt -- 130
Payment of capital lease obligations (614) (131)
Distribution to shareholder (229) (300)
Repayment of note payable -- (89)
Proceeds from issuance of common stock 16 310
----------- -----------
Net cash used by financing activities (827) (80)
----------- -----------
Net increase in cash and cash equivalents 2,688 837
Cash and cash equivalents, beginning of period 776 4,734
----------- -----------
Cash and cash equivalents, end of period $ 3,464 $ 5,571
=========== ===========
Cash paid during the period for:
Interest $ 105 $ 118
Income taxes $ 6,114 $ --
Non-cash investing and financing activities:
Equipment acquired under capital lease $ 473 $ --
</TABLE>
The accompanying notes are an integral part of these financial statements.
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DATA DIMENSIONS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1: Basis of Presentation
The consolidated financial statements present the consolidated financial
position and results of operations of Data Dimensions, Inc. and its
subsidiaries, ("Data Dimensions" or the "Company") in accordance with the rules
and regulations of the Securities and Exchange Commission. Certain information
and footnote disclosures normally included in the financial statements prepared
in accordance with generally accepted accounting principles have been condensed
or omitted in accordance with such rules and regulations.
In August 1998, the Company acquired ST Labs, Inc. in a business combination
accounted for as a pooling of interests. The historical financial statements for
periods prior to consummation of the business combination have been restated as
though the companies had been combined for all periods presented.
The financial information included herein for the three and six month periods
ended June 30, 1999 and 1998 is unaudited; however, such information reflects
all adjustments consisting only of normal recurring adjustments which are, in
the opinion of management, necessary for a fair presentation of the consolidated
financial position, results of operations, comprehensive income and cash flows
for the interim periods. The financial information as of December 31, 1998 is
derived from the Company's audited consolidated financial statements. These
interim consolidated financial statements should be read in conjunction with the
audited consolidated financial statements and related notes thereto, which are
included in the Company's 1998 Annual Report on Form 10-K.
The results of operations for the 1999 interim period presented are not
necessarily indicative of the results to be expected for the year ended December
31, 1999 or any future interim period, and the Company makes no representation
related thereto.
Certain amounts have been reclassified in the prior period financial statements
to conform with the current year presentations.
NOTE 2: Contingencies
The Company is from time to time involved in various claims and legal
proceedings of a nature considered by Company management to be routine and
incidental to its business. In the opinion of Company management, after
consultation with outside legal counsel, the ultimate disposition of such
matters is not expected to have a material adverse effect on the Company's
financial position, results of operations or liquidity.
NOTE 3: Reconciliation of Earnings Per Share
Basic earnings per share is computed using the weighted average number of common
shares outstanding during the period. Diluted earnings per share is computed
using the weighted average number of common shares and dilutive common
equivalent shares outstanding during the period. Dilutive common equivalent
shares consist of common stock issuable upon exercise of stock options using the
treasury stock method. The following provides a reconciliation of the numerators
and denominators of the basic and diluted per share computations:
<TABLE>
<CAPTION>
Three Month Period Six Month Period
Ended June 30, Ended June 30,
----------------------- -----------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Weighted average shares outstanding 13,533 13,372 13,531 13,271
Dilutive common stock options using the
treasury stock method 20 215 38 316
---------- ---------- ---------- ----------
Weighted average diluted shares outstanding 13,553 13,587 13,569 13,587
========== ========== ========== ==========
Net income $ 1,431 $ 1,530 $ 2,973 $ 2,404
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C>
$ 0.11 $ 0.11 $ 0.22 $ 0.18
Earnings per share - basic
Earnings per share - diluted $ 0.11 $ 0.11 $ 0.22 $ 0.18
</TABLE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
This management's discussion and analysis of financial condition and results of
operations should be read in conjunction with the discussion and analysis
presented in the Company's 1998 Annual Report on Form 10-K.
Results of Operations
Quarter Ended June 30, 1999
Revenue of $32.2 million in the second quarter ended June 30, 1999 was 19
percent higher than the revenue of $27.1 million in the quarter ended June 30,
1998. Field consulting revenue increased 21 percent, outsourcing services
revenue increased 58 percent, while test centers revenue decreased 14 percent
and other revenue decreased 1 percent. The increase in revenue for field
consulting and outsourcing resulted primarily from an increase in Year 2000
remediation contracts over the comparable period in 1998. Second quarter revenue
was essentially flat with the quarter ended March 31, 1999 as the Company began
to see a slowdown in Year 2000 remediation work in the second quarter of 1999.
Many Year 2000 projects are either being completed or are in process, while, at
the same time, some companies are deferring new information technology projects
or investments until after the Year 2000 date change has passed. These factors
have resulted in a slowdown in both new Year 2000 and non-Year 2000 projects,
which is expected to continue through the third and fourth quarters of 1999. The
Company's strategy is to build its existing non-Year 2000 services, including
quality assurance and testing, and data center and application outsourcing, to
offset in part declining Year 2000 revenue. The Company has also introduced new
service offerings to extend its customer relationships and technological
expertise beyond Year 2000 work. These new services include enterprise
integration and healthcare-specific consulting.
Direct costs increased 32 percent in the quarter ended June 30, 1999 over the
quarter ended June 30, 1998. As a result of the increase in direct costs, gross
margin was flat in the quarter ended June 30, 1999 with the quarter ended June
30, 1998. Gross margin as a percentage of revenue decreased from 42 percent to
36 percent. The decrease in gross margin percent was partially the result of a
decrease in the utilization rates of consultants and a shift in revenue mix
towards lower margin business. The Company is addressing the number of
consultants to align staffing with the level of business for the rest of the
year.
Selling, General and Administrative (SG&A) expenses increased 8 percent in the
quarter ended June 30, 1999 over the quarter ended June 30, 1998. The increase
was primarily due to employee related costs associated with the Company's
transition from Year 2000 work to enterprise integration services. SG&A expenses
as a percentage of revenue decreased from 31 percent in the quarter ended June
30, 1998 to 28 percent in the quarter ended June 30, 1999. SG&A expenses
continue to be evaluated in relationship to the Company's revenue trends.
Other income (expense) recorded in 1999 and 1998 consists primarily of the
interest component of capital leases, as well as the interest on short term
borrowing to support cash requirements.
The annual effective tax rate in 1999 is 39 percent compared to 43 percent in
1998. The primary cause of the higher effective rate in 1998 was the pro forma
impact of ST Labs, Inc. losses as a result of the business combination mentioned
in Note 1.
Two Quarters Ended June 30, 1999
Revenue of $64.5 million in the two quarters ended June 30, 1999 was 33 percent
higher than the revenue of $48.4 million in the two quarters ended June 30,
1998. Field consulting revenue increased 37 percent, outsourcing services
revenue increased 85 percent, test centers revenue decreased 9 percent and other
revenue decreased 10 percent. The increase in revenue from field consulting and
outsourcing services was primarily due to Year 2000 contracts. The decrease in
other revenue is primarily a result of
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de-emphasizing the Company's product offering. The Company has discontinued
development and marketing of its existing products and will continue supporting
them only during the remaining product life cycle.
Direct costs increased 46 percent in the two quarters ended June 30, 1999 over
the two quarters ended June 30, 1998. The reasons for the increase are
consistent with the explanation for the quarter ended June 30, 1999.
SG&A expenses increased 18 percent in the two quarters ended June 30, 1999 over
the two quarters ended June 30, 1998, primarily from an increase in employee
related costs associated with the Company's transition from Year 2000 work to
enterprise integration services.
Liquidity and Capital Resources
The Company utilized its $10 million line of credit during the two quarters
ended June 30, 1999 to fund a significant federal income tax payment and cover
short term cash requirements. At June 30, 1999, the Company had no borrowings
outstanding under its $10 million line of credit and had a cash balance of $3.5
million.
Working capital increased $3.9 million and the current ratio improved from 1.9
to 1 to 2.4 to 1 from December 31, 1998 to June 30, 1999. Accounts receivable
decreased $4.8 million from December 31, 1998, resulting in an improvement in
cash flow from operations.
The Company anticipates that it will be able to meet its cash requirements for
the foreseeable future through cash generated by operations and occasional
use of its line of credit.
Year 2000 Compliance
The Year 2000 issue is the result of computer programs that were written using
two digits rather than four to identify the applicable year. Any of the
Company's computer equipment, software and devices with embedded technology that
are time-sensitive may mistakenly identify a date field using "00" as the year
1900, rather than the year 2000.
State of Readiness
The Company provides Year 2000 consulting services to Fortune 500 companies and
government agencies and is employing the same methods and processes to complete
its own internal Year 2000 project that it provides to its customers. The
Company has established a Year 2000 task force, comprised of members
representing the different business operations of the Company, to assess and
remediate the impact of the Year 2000 on its IT and non-IT systems, material
third party relationships, and service and product offerings. As identified by
the task force, the Year 2000 issues facing Data Dimensions that may have a
material impact on its ability to continue its business practices as usual
through the change of the century include: internal business systems; internet
and intranet service; telecommunications; power; and the compliance and
readiness of the Company's third party suppliers, vendors, and customers.
The task force has divided the Company's Year 2000 project into three major
phases: (1) assessment and planning; (2) implementation; and (3) verification
and contingency planning. The Company is currently completing the implementation
phase of the project and has initiated the verification and contingency planning
phase. To date, the Company is not aware of any information which indicates that
the magnitude of the Company's Year 2000 problem is material. During the
implementation phase of the project, the Company replaced obsolete systems and
updated (or repaired) the hardware, applications and data so they are Year 2000
compliant. During the verification and contingency planning phase of the
project, the Company will perform acceptance testing and review the results to
determine that the updated applications are ready to return to production as
well as remove any unused and outdated hardware and software, and migrate the
various systems to production status. Based on information compiled to date, the
Company expects to substantially complete its compliance project, as outlined
above, by the end of September 1999.
In addition to its own compliance efforts, the Company is conducting an
assessment of the third parties with which it has material relationships to
determine if they are Year 2000 compliant. The Company has
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contacted its key vendors and suppliers by the distribution of questionnaires. A
majority of the vendors and suppliers have responded to the questionnaire with
assurance that they will be Year 2000 compliant. The Company is in the process
of developing contingency plans for those vendors and suppliers that will not be
fully Year 2000 compliant.
Prior to the start of the Company's Year 2000 project, implementation of a new
enterprise-wide integrated accounting package to provide for the financial needs
of the organization was completed. This software has been warranted by the
vendor to be Year 2000 compliant. Similarly, the operating system used by Data
Dimensions Information Services, Inc., the Company's subsidiary which outsources
mainframe computer processing services, also has been warranted by the vendor to
be Year 2000 compliant. Finally, the Company has replaced its phone and
voicemail systems with new, Year 2000 compliant systems to better provide for
the expanding communication needs of the organization.
Costs to Address Year 2000 Issues
The total estimated cost of the project is approximately $1.0 million. These
costs consist primarily of the cost of labor needed to complete the Company's
readiness and compliance project. The approximate labor cost incurred through
June 30, 1999 was $650,000. The decision by the Company to acquire new
accounting and phone software and equipment, and the timing thereof, arose in
the ordinary course of the growth of the Company, and is not considered a cost
associated with the Year 2000 issue.
Risks of Year 2000 Issues
The failure to correct a material Year 2000 problem could result in an
interruption in, or a failure of, certain normal business activities or
operations. If such failures occur, the Company's results of operations,
liquidity, and financial condition could be materially and adversely affected
and the Company may be required to incur unanticipated expenses to remedy any
problems not addressed by the Company's compliance efforts. Additionally, if any
of the Company's material suppliers or vendors are not fully Year 2000
compliant, it is possible that a system failure or miscalculations causing
disruptions in the Company's operations or potential problems with its product
and service offerings could result.
Contingency Plans
Part of the Company's Year 2000 project includes the preparation of contingency
plans. The Company anticipates completion of its contingency plans by the end of
September 1999.
Forward-Looking Statements and Associated Risks
The foregoing and the discussion and analysis presented in the Company's 1998
Annual Report on Form 10-K and subsequent quarterly report on Form 10-Q contains
certain forward-looking statements, including, among others (i) the potential
extent of the Year 2000 problem; (ii) anticipated trends in the Company's
financial condition and results of operations (including expected changes in the
Company's gross margin and general, administrative and selling expenses); (iii)
the Company's business strategies for expanding its presence in the computer
services industry and positioning itself for non-Year 2000 markets; and (iv) the
Company's ability to distinguish itself from its current and future competitors.
These forward-looking statements are based largely on the Company's current
expectations and are subject to a number of risks and uncertainties, some of
which are described in the Issues and Uncertainties section of the discussion
and analysis included in the Company's 1998 Annual Report on Form 10-K. The
Company does not provide forecasts of future financial performance. While
Company management is optimistic about the Company's long-term prospects, these
issues and uncertainties, among others, should be considered. Actual results
could differ materially from these forward-looking statements. Important factors
to consider in evaluating such forward-looking statements include (i) the
shortage of reliable market data regarding the Year 2000 consulting market; (ii)
changes in external market conditions that might impact trends in
the Company's results of operations; (iii) unanticipated working capital or
other cash requirements; (iv) changes in the Company's business strategies or an
inability to execute its strategies due to unanticipated changes in the overall
information technology consulting market; (v) the Company's ability to recruit
new employees and retain current employees during the implementation of the
business
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strategy, and (vi) various competitive factors that may prevent the
Company from competing successfully in the marketplace. In view of these risks
and uncertainties, there can be no assurance that the forward-looking statements
contained in the Company's Annual Report on Form 10-K and subsequent quarterly
report on Form 10-Q will, in fact, transpire.
Item 3. Quantitative and Qualitative Disclosure About Market Risk
Not Applicable.
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
At the May 18, 1999 Annual Meeting of Stockholders, the following proposals were
voted on by stockholders:
1. Election of Directors
Thomas W. Fife was elected director of the Company to a three-year term,
which expires in the year 2002. Larry W. Martin, Peter A. Allen, Robert
T. Knight and Lucie J. Fjeldstad continue as directors of the Company.
Votes for election of director:
<TABLE>
<S> <C>
For: 12,415,727
Withheld: 302,622
</TABLE>
2. Amendment to the 1997 Stock Option Plan
The amendment to increase by 1.5 million the number of shares reserved
for issuance under the 1997 stock option plan was approved.
Votes for the amendment to the 1997 stock option plan:
<TABLE>
<S> <C>
For: 5,641,487
Against: 999,630
Abstain: 126,907
Non-vote: 6,873,439
</TABLE>
Item 6. Exhibits and reports on Form 8-K
(a) The following exhibits are filed as a part of this report, and this
list is intended to constitute the exhibit index:
<TABLE>
<CAPTION>
Exhibit No.
-----------
<S> <C>
27. Financial Data Schedule
</TABLE>
(b) There were no reports on Form 8-K filed during the quarter ended
June 30, 1999.
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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.
Data Dimensions, Inc.
(Registrant)
August 13, 1999 /s/ Peter A. Allen
--------------- ----------------------------------------
Date Peter A. Allen, President and Chief
Executive Officer
August 13, 1999 /s/ Gordon A. Gardiner
--------------- ----------------------------------------
Date Gordon A. Gardiner, Executive Vice
President, Chief Financial Officer and
Secretary (Principal Financial and
Accounting Officer)
Page 11
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> APR-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 3,464
<SECURITIES> 0
<RECEIVABLES> 33,261
<ALLOWANCES> 1,139
<INVENTORY> 0
<CURRENT-ASSETS> 39,558
<PP&E> 14,527
<DEPRECIATION> 6,836
<TOTAL-ASSETS> 48,496
<CURRENT-LIABILITIES> 16,257
<BONDS> 0
0
0
<COMMON> 21,583
<OTHER-SE> 8,876
<TOTAL-LIABILITY-AND-EQUITY> 48,496
<SALES> 32,279
<TOTAL-REVENUES> 32,279
<CGS> 20,646
<TOTAL-COSTS> 20,646
<OTHER-EXPENSES> 9,194
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 107
<INCOME-PRETAX> 2,346
<INCOME-TAX> 915
<INCOME-CONTINUING> 1,431
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,431
<EPS-BASIC> 0.11
<EPS-DILUTED> 0.11
</TABLE>
