<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
/x/ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended December 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 0-6516
DATASCOPE CORP.
- ------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-2529596
- --------------------------------------------------------------------------------
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
14 Philips Parkway, Montvale, New Jersey 07645-9998
- ---------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (201) 391-8100
- --------------------------------------------------------------------------------
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
--- -----
Number of Shares of Company's Common Stock outstanding as of January 29, 1999:
15,176,196.
<PAGE>
Datascope Corp. and Subsidiaries
Management's Discussion and Analysis of
Results of Operations and Financial Condition
Results of Operations
Second quarter and first six months of fiscal 1999 compared to the
corresponding periods last year.
Net Sales
Net sales of $66.7 million in the second quarter and $122.4 million in
the first six months of fiscal 1999 increased 6% and 5%, respectively.
Sales of VasoSeal(R) increased 44% and 37% in the second quarter and
first six months of fiscal 1999, respectively. VasoSeal's dynamic
growth reflects increasing productivity of the recently expanded direct
sales organization in the U.S., continued strong market growth, and
expansion of the Company's international distributor network.
The Company recently announced receipt of FDA approval to market
VasoSeal(R) ES, its second generation arterial puncture sealing device,
and is planning its U.S. market launch within the next several months.
VasoSeal ES retains the proprietary, extravascular technology of the
original VasoSeal but features a one-size-fits-all design that
eliminates the need to measure skin-to-artery distance and the
hospital's need to stock more than one size device. VasoSeal ES also
becomes the first vascular sealing device to be approved for use on
patients with peripheral vascular disease (PVD), a significant portion
of the total patient population. The Company believes that its
competitive position will further strengthen with the introduction of
the VasoSeal ES product.
Sales of new patient monitoring products, including the Expert(TM),
Accutorr(R) and MRI monitors, rose sharply in the second quarter of
fiscal 1999. Total sales were only slightly ahead of last year,
however, because sales of Passport monitors in the second quarter last
year included several large shipments that did not recur. In the first
six months of fiscal 1999, sales growth of patient monitoring products
was modest because the Company's supplier could not produce enough new
anesthetic gas modules (AGM) to support the market launch of the new
Expert. The outside supplier of the AGM corrected its production
problem and the supply of AGMs caught up to market demand in the second
quarter. The Company anticipates increased sales growth for patient
monitoring products for the balance of the year.
<PAGE>
The Cardiac Assist Division strengthened its market leadership in the
U.S. as a result of excellent customer response to its two major new
products: the System 98 balloon pump and the Profile 8 Fr. balloon
catheter. During the second quarter, U.S. sales increased 11%, the
first double-digit quarterly increase since fiscal 1995. Higher sales
in European direct selling markets were offset by lower pump sales to
the Company's international distributors, thus worldwide cardiac assist
sales increased modestly during the second quarter and first six months
of fiscal 1999. The Company expects stronger gains in the second half
of fiscal 1999.
Sales of InterVascular, Inc. increased in the second quarter as a
result of higher sales of the InterGard(R) collagen coated graft in
Europe, including a new heparin- coated graft which received the CE
mark in the first quarter. Sales of vascular grafts in the first six
months of fiscal 1999 declined from the same period last year due to
pipeline filling shipments of the InterGard collagen coated grafts to
the Company's distributors in the U.S. and Japan in the first quarter
of fiscal 1998. The Company plans to introduce a range of antimicrobial
grafts in the second half of fiscal 1999, pending receipt of the CE
mark, and expects increasing sales for the balance of the year.
The weaker U.S. dollar compared to major European currencies increased
total sales by approximately $300 thousand in the second quarter and
first six months of fiscal 1999.
Gross Profit (Net Sales Less Cost of Sales)
The gross profit percentage was 65.2% and 65.4% for the second quarter
and first six months of fiscal 1999, respectively, compared to 64.2%
and 64.3% for the corresponding periods last year with the improvement
primarily attributable to a favorable mix of sales, higher selling
prices for the VasoSeal device and cost reductions in the Patient
Monitoring and Collagen Products divisions, and InterVascular, Inc.
Partially offsetting the above were costs associated with the
production start-up of the new Profile 8 Fr. balloon catheter.
Research and Development (R&D)
R&D expenses, as a percentage of sales, amounted to 11.1% and 12.5% in
the second quarter and first six months of fiscal 1999, respectively,
compared to 12.0% and 13.1% last year.
R&D expenses of $15.3 million declined slightly (less than 2%) in both
the second quarter and first six months as lower development expenses
in the Cardiac Assist division were partially offset by increases in
the Patient Monitoring and Collagen Products divisions. Cardiac Assist
division R&D expenses were higher last year due to development of the
Profile 8 Fr. catheter and the System 98 balloon pump, two major new
products currently being sold worldwide.
<PAGE>
Selling, General & Administrative Expenses (SG&A)
SG&A expenses, as a percentage of sales, were 42.1% and 44.1% in the
second quarter and first six months of fiscal 1999, respectively,
compared to 41.1% and 43.0% in the corresponding periods last year.
SG&A expenses increased $2.3 million or 9% in the second quarter and
$3.7 million or 7% in the first six months as a result of the expansion
of the U.S. and European VasoSeal direct selling organization, higher
selling and marketing expenses in the Patient Monitoring and Cardiac
Assist businesses due to new product introduction marketing programs
and additional headcount as a result of filling open sales
representative and clinical education positions. Partially offsetting
the above increases were reduced corporate expenses.
The weaker U.S. dollar compared to major European currencies increased
SG&A expenses by approximately $200 thousand in the second quarter and
first six months of fiscal 1999.
Interest Income and Expense
The lower interest income in the second quarter and first six months
was attributable to a reduction in the investment portfolio as $11.5
million was used for the Company's common stock repurchase program.
Other Income and Expense
The Company enters into foreign exchange forward contracts to hedge a
major portion of its foreign currency exposures, primarily related to
certain receivables denominated in foreign currencies. The hedging has
reduced the Company's exposure to fluctuations in foreign currencies.
The net foreign exchange transaction gain or loss is reported in other
income and expense. Foreign exchange forward contracts outstanding at
December 31, 1998 totaled $1.9 million, all of which were in European
currencies, with maturities that do not exceed 12 months.
Net Earnings
Net earnings in the second quarter of fiscal 1999 improved to $5.89
million or $0.38 per diluted share compared to $5.65 million, or $0.34
per diluted share. Net earnings for the first six months of fiscal 1999
were $8.57 million or $0.55 per diluted share compared to $8.32 million
or $0.50 per diluted share for the first six months last year. The
earnings increases resulted primarily from strong growth of U.S.
VasoSeal sales and lower corporate expenses.
<PAGE>
Liquidity and Capital Resources
Although working capital declined during the first six months of fiscal
1999, the Company maintained its strong financial position. Working
capital was $112.6 million at December 31, 1998 compared to $117.9
million at June 30, 1998 and the current ratio was unchanged at 4.2:1.
The decline in working capital was primarily attributable to using
$11.5 million for the Company's common stock repurchase program.
In the first six months cash was used to purchase $5.1 million of plant
and equipment.
In May 1996 the Company announced a stock repurchase program of up to
$20 million to buy shares of its common stock from time to time subject
to market conditions and other relevant factors affecting the Company.
During the first quarter of fiscal 1999, the Company completed the May
1996 repurchase program by purchasing $1.9 million of common stock
remaining under this program. A second stock repurchase program for up
to $20 million was approved by the board of directors on August 5, 1998
and through December 31, 1998 the Company purchased $9.6 million of
stock under this second repurchase program.
Management believes that the Company's financial resources are
sufficient to meet its projected cash requirements including the
expenditures expected under the stock repurchase program.
The moderate rate of current U.S. inflation has not significantly
affected the Company.
Year 2000
Many currently installed computer systems, software products and
manufactured products that utilize microprocessors are coded to accept
only two-digit entries in the date code field. These date code fields will
need to accept four-digit entries to distinguish twenty-first century
dates from twentieth century dates. This is commonly referred to as the
"Year 2000 issue." The Company is aware of the Year 2000 issue and during
fiscal 1998 commenced a program to identify, remediate, test and develop
contingency plans for the Year 2000 issue (the "Y2K Program"), to be
substantially completed by the fall of 1999.
As of January 31, 1999, the results of the assessment being conducted
under the Y2K Program were as follows:
Computer Information Systems (Company CIS). Most of the Company CIS was
found to be Year 2000 compliant. Several minor software programs that were
not compliant were modified by December 31, 1998 by the software vendor or
third party support vendor. Testing will continue throughout fiscal 1999
to verify that software programs are year 2000 compliant.
<PAGE>
Products. It was determined that all currently marketed patient monitor
and intra-aortic balloon pump products are Year 2000 compliant or are not
affected because the product does not contain a date field in the
software. A small number of patient monitor products that are no longer
manufactured are not Year 2000 compliant. In these cases, the Company has
plans to offer an upgrade to any customer requiring Year 2000 compliance
for their monitor.
Third Parties. The Company solicited statements of compliance from its
key outside vendors, manufacturers and suppliers with respect to their CIS
and products. Approximately 63% of these parties responded and informed
the Company that they are currently compliant or plan to be compliant by
December 31, 1999. In the event that any of these parties are unable to
certify that they will be Year 2000 compliant by early 1999, the Company
will be reviewing its alternatives with respect to other vendors,
manufacturers or suppliers (as applicable). The Company solicited
statements of compliance, from its key customers at the end of October
1998, with respect to their CIS. In the event that its key customers are
unable to certify that they will be Year 2000 compliant by early 1999, the
Company will be assessing the accounts receivable collection risk of such
key customers.
Costs. The cost to modify the computer software programs used in the
Company CIS is covered by existing service agreements with the software
vendors. The assessments, testing and verification of all Company CIS and
the Company's software and manufactured products was performed by existing
staff. No significant outside resources were required. Despite the use of
internal resources for the Y2K Program, there was no significant deferral
of other Company CIS projects. The Company does not currently anticipate
that the cost of the Y2K Program will be material to its financial
condition or results of operations.
The Year 2000 issue presents far-reaching implications, some of which
cannot be anticipated with any degree of certainty. Satisfactorily
addressing the Year 2000 issue is dependent on many factors, some of which
are not completely within the Company's control, such as the availability
of certain resources, third-party remediation plans and other factors.
Based on the assessment that has been made under the Y2K Program, and
other than as stated above, the Company has no other contingency plans in
the event of any Year 2000 noncompliance and does not currently believe
that any other contingency plans are necessary. In addition, management is
not able to determine the effect of any Year 2000 noncompliance (including
with respect to a "worst-case scenario") on the Company, and there can be
no guarantee that any such noncompliance would not have an adverse effect
on the Company's CIS, products, results of operations or financial
condition.
<PAGE>
Information Concerning Forward Looking Statements
This Management's Discussion includes forward-looking statements that
involve risks and uncertainties because of the possibility that market
conditions may change, particularly as the result of competitive
activity in the cardiac assist, vascular sealing device and other
markets served by the Company, and because of the Company's dependence
on its suppliers for certain patient monitoring products. Additional
risks are the ability of the Company to successfully introduce and gain
market acceptance for new products, continued demand for the Company's
products generally, the rapid and significant changes that characterize
the medical device and life science research industries and the ability
to continue to respond to such technological changes, information
provided to the Company by third parties concerning their year 2000
readiness and because the timing of regulatory approvals is uncertain,
as well as other risks detailed from time to time in documents filed by
Datascope with the Securities and Exchange Commission.
Quantitative and Qualitative Disclosures About Market Risk
The Company has only limited involvement with derivative financial
instruments and does not use them for trading purposes. The Company enters
into foreign currency forward exchange contracts to hedge foreign currency
transactions (which are primarily related to certain receivables
denominated in foreign currencies) on a continuing basis for periods
consistent with its committed foreign currency exposures. The effect of
this practice is to minimize the impact of foreign exchange rate movements
on the Company's operating results. The Company's hedging activities do
not subject the Company to exchange rate risk because gains and losses on
these contracts offset losses and gains on the assets, liabilities and
transactions being hedged. The net foreign exchange transaction gain or
loss is reported in other income and expense.
As of December 31, 1998, the Company had $1.9 million of foreign exchange
forward contracts outstanding, all of which were in European currencies.
The foreign exchange forward contracts generally have maturities that do
not exceed 12 months and require the Company to exchange foreign
currencies for U.S. dollars at maturity, at rates agreed to at inception
of the contracts.
<PAGE>
Datascope Corp. and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands)
<TABLE>
<CAPTION>
Dec 31, June 30,
1998 1998
--------- ---------
<S> <C> <C>
Assets (unaudited) (a)
Current Assets:
Cash and cash equivalents $ 6,400 $ 3,364
Short-term investments 24,790 46,314
Accounts receivable, less allowance for doubtful
accounts of $1,237 and $1,078 58,765 55,248
Inventories (Note 2) 48,451 40,246
Prepaid expenses and other current assets 9,663 10,036
--------- ---------
Total Current Assets 148,069 155,208
Property, Plant and Equipment, net of accumulated
depreciation of $50,911 and $46,780 55,522 50,946
Non-Current Marketable Securities 31,152 34,371
Other Assets 17,268 12,523
--------- ---------
$ 252,011 $ 253,048
========= =========
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 12,450 $ 14,378
Accrued expenses 13,492 12,743
Accrued compensation 7,132 10,190
Taxes on income 2,433 --
--------- ---------
Total Current Liabilities 35,507 37,311
Other Liabilities 13,768 14,255
Stockholders' Equity (Notes 3, 4 and 5):
Preferred stock, par value $1.00 per share:
Authorized 5,000,000 shares; Issued, none -- --
Common stock, par value $.01 per share:
Authorized, 45,000,000 shares; Issued and
outstanding, 16,549,787 and 16,394,387 shares 165 164
Additional paid-in capital 50,163 47,041
Treasury stock at cost, 1,364,821 and 793,400 shares (29,938) (18,122)
Retained earnings 186,076 177,509
Accumulated other comprehensive income (3,730) (5,110)
--------- ---------
202,736 201,482
--------- ---------
$ 252,011 $ 253,048
========= =========
</TABLE>
(a) Derived from audited financial statements
See notes to consolidated financial statements
<PAGE>
Datascope Corp. and Subsidiaries
Statements of Consolidated Earnings
(In thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
December 31, December 31,
-------------------------- --------------------------
1998 1997 1998 1997
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net Sales $ 122,400 $ 117,000 $ 66,700 $ 62,700
--------- --------- --------- ---------
Costs and Expenses:
Cost of sales 42,402 41,814 23,231 22,418
Research and development
expenses 15,263 15,376 7,429 7,551
Selling, general and
administrative expenses 54,010 50,269 28,102 25,770
--------- --------- --------- ---------
111,675 107,459 58,762 55,739
--------- --------- --------- ---------
Operating Earnings 10,725 9,541 7,938 6,961
Other (Income) Expense:
Interest income (1,869) (2,561) (797) (1,272)
Interest expense 20 13 14 8
Other, net 158 37 190 41
--------- --------- --------- ---------
(1,691) (2,511) (593) (1,223)
--------- --------- --------- ---------
Earnings Before Taxes on Income 12,416 12,052 8,531 8,184
Taxes on Income 3,849 3,736 2,645 2,537
--------- --------- --------- ---------
Net Earnings $ 8,567 $ 8,316 $ 5,886 $ 5,647
========= ========= ========= =========
Earnings Per Share, Basic (Note 4) $ 0.56 $ 0.52 $ 0.39 $ 0.35
========= ========= ========= =========
Weighted Average Number of
Common and Common Equivalent
Shares Outstanding, Basic 15,296 16,005 15,174 15,978
========= ========= ========= =========
Earnings Per Share, Diluted (Note 4) $ 0.55 $ 0.50 $ 0.38 $ 0.34
========= ========= ========= =========
Weighted Average Number of
Common and Common Equivalent
Shares Outstanding, Diluted 15,688 16,504 15,550 16,559
========= ========= ========= =========
</TABLE>
See notes to consolidated financial statements
<PAGE>
Datascope Corp. and Subsidiaries
Statements of Consolidated Cash Flows
(Dollars in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
December 31
------------------------
1998 1997
-------- --------
<S> <C> <C>
Operating Activities:
Net cash (used in) provided by operating activities $ (4,859) $ 12,303
-------- --------
Investing Activities:
Capital expenditures (5,105) (3,905)
Purchases of marketable securities (13,624) (46,789)
Maturities of marketable securities 38,367 40,760
Acquisition of Polyprobe, Inc. and Alpha Probe, Inc. (450) --
-------- --------
Net cash provided by (used in) investing activities 19,188 (9,934)
-------- --------
Financing Activities:
Treasury shares acquired under repurchase programs (11,531) (3,835)
Exercise of stock options and other 138 1,104
-------- --------
Net cash used in financing activities (11,393) (2,731)
-------- --------
Effect of exchange rates on cash 100 (652)
-------- --------
Increase (decrease) in cash and cash equivalents 3,036 (1,014)
Cash and cash equivalents, beginning of period 3,364 2,597
-------- --------
Cash and cash equivalents, end of period $ 6,400 $ 1,583
======== ========
Supplemental Cash Flow Information
Cash paid during the period for:
Income taxes $ 1,331 $ 1,995
-------- --------
Non-cash transactions:
Net transfers of inventory to fixed assets
for use as demonstration equipment $ 4,183 $ 3,248
-------- --------
Issuance of common stock for acquisition
of Polyprobe, Inc. and Alpha Probe, Inc. $ 2,700 --
-------- --------
</TABLE>
See notes to consolidated financial statements
<PAGE>
Datascope Corp. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)
1. Basis of Presentation
The consolidated balance sheet as of December 31, 1998, the statements of
consolidated earnings for the three and six month periods ended December 31,
1998 and 1997 and the statements of cash flows for the six month periods ended
December 31, 1998 and 1997 have been prepared by the Company, without audit. In
the opinion of management, all adjustments (which include only normal recurring
adjustments) have been made that are necessary to present fairly the financial
position, results of operations and cash flows for all periods presented.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that the condensed consolidated
financial statements included herein be read in conjunction with the financial
statements and notes included in the Company's Annual Report on Form 10-K for
the fiscal year ended June 30, 1998. The results of operations for the period
ended December 31, 1998 are not necessarily indicative of a full year's
operations.
The presentation of certain prior year information has been reclassified to
conform with the current year presentation.
2. Inventories
Inventories are stated at the lower of cost, determined on a first-in, first-out
basis, or market.
(In thousands)
-----------------------------------------
Dec 31, June 30,
1998 1998
--------------- ---------------
Materials $ 17,112 $ 13,323
Work in Process 6,129 6,620
Finished Goods 25,210 20,303
--------------- ---------------
$ 48,451 $ 40,246
=============== ===============
3. Stockholders' Equity
Changes in the components of stockholders' equity for the six months ended
December 31, 1998 were as follows:
(In thousands)
---------------
Net income $ 8,567
Foreign currency translation adjustments 1,380
Common stock and additional paid-in
capital effects of stock option activity 2,838
Purchases under stock repurchase plans (11,531)
---------------
Total increase in stockholders' equity $ 1,254
===============
<PAGE>
Datascope Corp. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)
4. Earnings Per Share
The Company adopted Financial Accounting Standard No. 128, "Earnings Per Share",
as required effective December 31, 1997. All prior earnings per share amounts
presented have been restated to conform with this statement. The reconciliation
of Basic Earnings Per Share to Diluted Earnings Per Share is as follows:
<TABLE>
<CAPTION>
- ---------------------------- ----------------------------------- ------------------------------------
For Three Months Ended December 31, 1998 December 31, 1997
- ---------------------------- ----------------------------------- ------------------------------------
Net Per Share Net Per Share
Basic EPS Earnings Shares Amount Earnings Shares Amount
- --------- -------- ------ --------- -------- ------ ---------
<S> <C> <C> <C> <C> <C> <C>
Earnings available to
common shareholders $5,886 15,174 $ 0.39 $5,647 15,978 $ 0.35
Diluted EPS
Options issued to employees -- 376 -- -- 581 --
------ ------ -------- ------ ------ --------
Earnings available to
common shareholders
plus assumed conversions $5,886 15,550 $ 0.38 $5,647 16,559 $ 0.34
====== ====== ======== ====== ====== ========
<CAPTION>
- ---------------------------- ---------------------------------- ------------------------------------
For Six Months Ended December 31, 1998 December 31, 1997
- ---------------------------- ---------------------------------- ------------------------------------
Net Per Share Net Per Share
Basic EPS Earnings Shares Amount Earnings Shares Amount
- --------- -------- ------ --------- -------- ------ ---------
<S> <C> <C> <C> <C> <C> <C>
Earnings available to
common shareholders $8,567 15,296 $ 0.56 $8,316 16,005 $ 0.52
Diluted EPS
Options issued to employees -- 392 -- -- 499 --
------ ------ -------- ------ ------ --------
Earnings available to
common shareholders
plus assumed conversions $8,567 15,688 $ 0.55 $8,316 16,504 $ 0.50
====== ====== ======== ====== ====== ========
</TABLE>
5. Comprehensive Income
Effective July 1, 1998, the Company adopted Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income" (SFAS No. 130). This
statement requires the disclosure of comprehensive income and its components,
including net income, minimum pension liability adjustments, unrealized gains
and losses on available-for-sale securities and foreign currency translation
adjustments, in an annual financial statement displayed with the same prominence
as other annual financial statements. Interim reporting is required beginning
with the first quarter after adoption of the new standard and prior periods must
be restated.
<PAGE>
Datascope Corp. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)
5. Comprehensive Income (continued)
The Company's comprehensive income for the three and six months ended December
31, 1998 and 1997 was as follows:
(In thousands)
-------------------------------------------
Six Months Ended Three Months Ended
12/31/98 12/31/97 12/31/98 12/31/97
-------- -------- -------- --------
Net earnings $8,567 $8,316 $5,886 $5,647
Foreign currency translation 1,380 (1,036) 3 (422)
--------- -------- -------- ---------
Total comprehensive income $9,947 $7,280 $5,889 $5,225
========= ======== ======== =========
The adoption of SFAS No. 130 had no effect on the Company's reported results of
operations or financial position.
6. Acquisition of Polyprobe, Inc. and Alpha Probe, Inc.
On October 2, 1998, pursuant to merger agreements, the Company acquired 100% of
the outstanding common stock of Polyprobe, Inc. and Alpha Probe, Inc. The
purchase price for the acquisition of these companies was $3.2 million, paid
through the issuance of 125,141 shares of the Company's common stock and cash of
$450 thousand. Both acquisitions will be accounted for using the purchase method
of accounting. The excess of the purchase price over the fair value of the net
assets acquired, $3.1 million, has been allocated to goodwill and will be
amortized over a period of 10 years.
<PAGE>
Part II:
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
none
b. Reports on Form 8-K. No reports on Form 8-K have been filed
during the quarter for which this report is filed.
<PAGE>
Form 10-Q
SIGNATURES
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.
DATASCOPE CORP.
Registrant
By: /s/ Lawrence Saper
----------------------------------
Lawrence Saper
Chairman of the Board and
Chief Executive Officer
By: /s/ Leonard S. Goodman
----------------------------------
Leonard S. Goodman
Vice President and
Chief Financial Officer
Dated: February 12, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM (A)
CONSOLIDATED BALANCE SHEETS AND STATEMENTS OF CONSOLIDATED EARNINGS. AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH (B)
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 6,400
<SECURITIES> 24,790
<RECEIVABLES> 60,002
<ALLOWANCES> (1,237)
<INVENTORY> 48,451
<CURRENT-ASSETS> 148,069
<PP&E> 106,433
<DEPRECIATION> (50,911)
<TOTAL-ASSETS> 252,011
<CURRENT-LIABILITIES> 35,507
<BONDS> 0
0
0
<COMMON> 165
<OTHER-SE> 202,571
<TOTAL-LIABILITY-AND-EQUITY> 252,011
<SALES> 122,400
<TOTAL-REVENUES> 122,400
<CGS> 42,402
<TOTAL-COSTS> 42,402
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 150
<INTEREST-EXPENSE> 20
<INCOME-PRETAX> 12,416
<INCOME-TAX> 3,849
<INCOME-CONTINUING> 8,567
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,567
<EPS-PRIMARY> 0.56
<EPS-DILUTED> 0.55
</TABLE>
