<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------------
FORM 10-Q
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 27, 1997 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 0-8771
---------------------------------------
EVANS & SUTHERLAND COMPUTER CORPORATION
(Exact name of registrant as specified in its charter)
UTAH 87-0278175
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
600 KOMAS DRIVE, SALT LAKE CITY, UTAH 84108
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (801) 588-1000
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
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding Shares at August 1, 1997
- ----------------------------------- ------------------------------------
COMMON STOCK, $0.20 PAR VALUE 9,046,546
<PAGE>
FORM 10-Q
EVANS & SUTHERLAND COMPUTER CORPORATION
QUARTER ENDED JUNE 27, 1997
PAGE NO.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Condensed Consolidated Statements of Operations - Three Months
and Six Months Ended June 27, 1997 and June 28, 1996 3
Condensed Consolidated Balance Sheets - June 27, 1997 and
December 27, 1996 4
Condensed Consolidated Statements of Cash Flows - Six Months
Ended June 27, 1997 and June 28, 1996 5
Notes to Condensed Consolidated Financial Statements 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS 7
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
SIGNATURE PAGE 11
2
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
EVANS & SUTHERLAND COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------------------ -----------------------------
June 27, June 28, June 27, June 28,
1997 1996 1997 1996
------------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Net sales $ 37,907 $ 30,907 $ 71,549 $ 57,594
Cost of sales 20,483 16,192 38,997 30,385
------------- ------------ ------------ -------------
Gross profit 17,424 14,715 32,552 27,209
------------- ------------ ------------ -------------
Expenses:
Marketing, general and administrative 8,632 7,880 16,476 14,561
Research and development 6,746 5,499 12,592 10,819
------------- ------------ ------------ -------------
Total expenses 15,378 13,379 29,068 25,380
------------- ------------ ------------ -------------
Operating earnings 2,046 1,336 3,484 1,829
Other income, net 661 1,072 1,238 1,798
------------- ------------ ------------ -------------
Earnings before income taxes 2,707 2,408 4,722 3,627
Income tax expense 732 915 1,336 1,377
------------- ------------ ------------ -------------
Net earnings $ 1,975 $ 1,493 $ 3,386 $ 2,250
============= ============ ============ =============
Earnings per share (note 1):
Primary $ 0.21 $ 0.16 $ 0.36 $ 0.25
Fully diluted $ 0.21 $ 0.16 $ 0.36 $ 0.24
Weighted average common and common
equivalent shares outstanding:
Primary 9,394 9,328 9,414 9,180
Fully diluted 9,501 9,330 9,526 9,224
</TABLE>
See accompanying notes to condensed financial statements.
3
<PAGE>
EVANS & SUTHERLAND COMPUTER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except share data)
<TABLE>
<CAPTION>
June 27, December 27,
1997 1996
-------------------- ---------------
(Unaudited)
Assets
----------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 9,960 $ 16,521
Marketable securities 56,831 46,454
Accounts receivable, less allowance for doubtful
receivables of $618 in 1997 and $563 in 1996 26,757 34,842
Inventories (note 2) 21,893 20,202
Costs and estimated earnings in excess of billings
on uncompleted contracts 39,994 34,166
Deferred income taxes 5,691 4,841
Prepaid expenses and deposits 1,604 2,187
-------------------- ---------------
Total current assets 162,730 159,213
Property, plant, and equipment, at cost 120,052 115,358
Less accumulated depreciation and amortization 76,186 72,687
-------------------- ---------------
Net property, plant, and equipment 43,866 42,671
Investment securities 6,872 7,057
Other assets 1,920 1,950
-------------------- ---------------
Total assets $ 215,388 $ 210,891
==================== ===============
Liabilities and Stockholders' Equity
-----------------------------------------------------
Current liabilities:
Notes payable to banks $ 3,311 $ 5,334
Accounts payable 4,620 6,370
Accrued expenses 14,870 13,933
Customer deposits 5,476 2,058
Income taxes payable 1,052 -
Billings in excess of costs and estimated
earnings on uncompleted contracts 5,651 4,595
-------------------- ---------------
Total current liabilities 34,980 32,290
Long-term debt 18,015 18,015
Deferred income taxes - 114
Stockholders' equity:
Common stock, $.20 par value; authorized
30,000,000 shares; issued and outstanding
9,001,565 shares at June 27, 1997 and
9,056,871 shares at December 27, 1996 1,800 1,811
Additional paid-in capital 7,163 8,639
Retained earnings 153,883 150,496
Net unrealized loss on marketable securities (732) (541)
Cumulative translation adjustment 279 67
-------------------- ---------------
Total stockholders' equity 162,393 160,472
-------------------- ---------------
Total liabilities and stockholders' equity $ 215,388 $210,891
==================== ===============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE>
EVANS & SUTHERLAND COMPUTER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
(In thousands)
<TABLE>
<CAPTION>
Six Months Ended
-------------------------------------
June 27, June 28,
1997 1996
-------------- ---------------
<S> <C> <C>
Net cash provided by (used in) operating activities $ 12,657 $ (15,443)
Cash flows from investing activities:
Capital expenditures (5,929) (5,135)
Purchases of marketable securities (36,046) (40,496)
Proceeds from sale of marketable securities 25,601 53,886
Proceeds from sale of investment securities - 432
Purchases of other long-term assets - (1,450)
-------------- ---------------
Net cash provided by (used in) investing activities (16,374) 7,237
Cash flows from financing activities:
Net proceeds from issuance of common stock 704 2,126
Net borrowings (payments) under line of credit agreement (1,550) 1,340
Purchases of treasury stock (2,190) -
-------------- ---------------
Net cash provided by (used in) financing activities (3,036) 3,466
Effect of foreign exchange rate changes on cash 192 93
-------------- ---------------
Net decrease in cash and cash equivalents (6,561) (4,647)
Cash and cash equivalents at beginning of year 16,521 5,023
-------------- ---------------
Cash and cash equivalents at end of period $ 9,960 $ 376
============== ===============
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest $ 664 $ 677
Income taxes $ 1,900 $ 10,394
</TABLE>
See accompanying notes to condensed consolidated financial statements.
5
<PAGE>
EVANS & SUTHERLAND COMPUTER CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In thousands)
1. SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
- ---------------------
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q and, therefore, do not
include all information and footnotes necessary for a complete presentation of
the results of operations, the financial position, and cash flows, in conformity
with generally accepted accounting principles. This report on Form 10-Q for the
three months and six months ended June 27, 1997 should be read in conjunction
with the Company's annual report on Form 10-K for the year ended December 27,
1996.
The accompanying unaudited condensed consolidated balance sheets and statements
of operations and cash flows reflect all normal recurring adjustments which are,
in the opinion of management, necessary for a fair presentation of the Company's
financial position, results of operations and cash flows. The results of
operations for the interim period ended June 27, 1997 are not necessarily
indicative of the results to be expected for the full year.
The Company has changed its fiscal year end from the last Friday in December to
a calendar year end.
Earnings Per Share
- ------------------
Earnings per share is computed based on the weighted average number of common
shares and, as appropriate, dilutive common stock equivalents outstanding during
the period. Stock options are considered to be common stock equivalents. Fully
diluted earnings per share for the three months and six months ended June 27,
1997 and June 28, 1996 were not materially different from primary earnings per
share.
In February 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128, Earnings per Share (SFAS 128). SFAS 128
establishes a different method of computing earnings per share than is currently
required under the provisions of Accounting Principles Board Opinion No. 15.
Under SFAS 128, the Company will be required to present both basic earnings per
share and diluted earnings per share. Basic earnings per share is expected to be
higher than the currently presented primary earnings per share as the effect of
dilutive stock options will not be considered in computing basic earnings per
share. Diluted earnings per share is expected to be comparable or slightly lower
than the currently presented primary earnings per share.
The Company plans to adopt SFAS 128 in its fiscal fourth quarter and at that
time all historical earnings per share data presented will be restated to
conform to the provisions of SFAS 128.
2. INVENTORIES
Inventories consist of the following:
June 27, December 27,
1997 1996
----------- ------------
(Unaudited)
Raw materials and supplies $10,898 $ 8,117
Work-in-process 8,080 11,211
Finished Goods 2,915 874
------- -------
$21,893 $20,202
======= =======
4. STOCK REPURCHASE PROGRAM
On September 19, 1996, the Company announced that its board of directors had
authorized the repurchase of up to 500,000 shares of its common stock, either in
the open market or in private transactions. As of August 1, 1997, the Company
has repurchased and retired 95,000 shares since the announcement of the
repurchase program.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the condensed
consolidated financial statements and notes thereto included elsewhere herein.
All data in the tables are in thousands except for percentages. Except for the
historical information contained herein, this report on Form 10-Q contains
forward-looking statements that involve risks and uncertainties. The Company's
actual results may differ materially.
OVERVIEW
- --------
Evans & Sutherland Computer Corporation (E&S or the Company) develops and
manufactures hardware and software for visual systems that produce vivid and
highly realistic 3D (three-dimensional) graphics and synthetic environments.
The Company's product offerings include a full range of high-performance visual
systems for simulation, training, and virtual reality applications, as well as
graphic accelerator products for workstations and personal computers.
E&S is organized into six business units. Each business unit develops and
markets its products for a worldwide customer base. These business units can be
grouped into two areas: core businesses and new start-ups. The core businesses
are the simulation-related units in which E&S has an established market presence
with significant market share, and have historically been profitable. The
start-ups are in high growth markets where E&S has superior technology which can
be applied to new applications.
Core businesses:
. Government Simulation provides visual systems for flight and ground
---------------------
training and related services to U.S. and international armed forces,
NASA, and aerospace companies.
. Commercial Simulation is the world's leading independent supplier of
---------------------
visual systems for flight simulators for commercial airline pilot
training.
. Display Systems provides a complete suite of avionics displays for
---------------
cockpit and flight training.
New business start-ups:
. Desktop Graphics provides graphic accelerator technology for the
----------------
world's leading workstation manufacturers and NT-based personal
computers.
. Digital Studio provides virtual studio products and services for
--------------
digital content production in the television, film, video, corporate
training, and multimedia industries.
. Entertainment and Education is the world's leading supplier of digital
---------------------------
planetarium projection systems, and provides virtual reality
experiences for location-based entertainment centers, including
entertainment simulators.
7
<PAGE>
RESULTS OF OPERATIONS
- ---------------------
The following table summarizes changes in operations for the periods indicated
and presents the percentage of increase (decrease) by listed items compared to
the indicated prior period (unaudited):
<TABLE>
<CAPTION>
Quarters Six Months
Ended June 27, 1997 Ended June 27, 1997
and June 28, 1996 and June 28, 1996
---------------------- -------------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Net Sales $7,000 22.6% $13,955 24.2%
Cost of Sales 4,291 26.5% 8,612 28.3%
------------ ---------
Gross Profit 2,709 18.4% 5,343 19.6%
------------ ---------
Expenses:
Marketing, general & administrative 752 9.5% 1,915 13.2%
Research & development 1,247 22.7% 1,773 16.4%
------------ ---------
Total expenses 1,999 14.9% 3,688 14.5%
------------ ---------
Operating earnings 710 53.1% 1,655 90.5%
Other income, net (411) (38.3%) (560) (31.1%)
------------ ---------
Earnings before income taxes 299 12.4% 1,095 30.2%
Income tax expense (183) (20.0%) (41) (3.0%)
------------ ---------
Net earnings $ 482 32.3% $ 1,136 50.5%
============ =========
</TABLE>
SALES
- -----
Sales for the second quarter of 1997 increased 22.6% to $37.9 million compared
to $30.9 million for the second quarter of 1996. Sales for the six month period
ended June 27, 1997 increased 24.2% to $71.5 million compared to $57.6 million
for the six month period ended June 28, 1996. Domestic sales for the second
quarter increased approximately 86% over the second quarter of 1996 as a result
of more commercial deliveries and the AMC VUE program. Foreign sales for the
second quarter increased approximately 3% over the second quarter of 1996.
COST OF SALES
- -------------
Cost of sales, as a percentage of sales, was 54.0% for the second quarter of
1997 compared to 52.4% for the second quarter 1996. For the six month period
ended June 27, 1997, cost of sales as a percentage of sales was 54.5% compared
to 52.8% for the six month period ended June 28, 1996. The increase in cost of
sales, as a percentage of sales is primarily due to the Company's move towards
accepting work as a prime contractor. The Company experienced higher cost of
sales as a percentage of sales in its non-simulation business units which are in
the start-up phase. Cost of sales as a percentage of sales in the simulation
business units was slightly higher reflecting the move to prime contracting in
Government Simulation.
EXPENSES
- --------
Total expenses for the second quarter of 1997 increased 14.9% to $15.4 million
compared to $13.4 million for the second quarter of 1996, but decreased as a
percentage of sales to 40.6% from 43.3% for the respective periods. Total
expenses for the six month period ended June 27, 1997 increased 14.5% to $29.1
million compared to $25.4 million for the six month period ended June 28, 1996,
but decreased as a percentage of sales to 40.6% from 44.1% for the respective
periods.
8
<PAGE>
Marketing, General, and Administrative: Marketing, general, and administrative
- --------------------------------------
expenses for the second quarter of 1997 increased 9.5% to $8.6 million compared
to $7.9 million for the second quarter of 1996, but decreased as a percentage of
sales to 22.8% from 25.5% for the respective periods. Marketing, general, and
administrative expenses for the six month period ended June 27, 1997 increased
13.2% to $16.5 million compared to $14.6 million for the six month period ended
June 28, 1996, but decreased as a percentage of sales to 23.0% from 25.3% for
the respective periods. The increase in marketing, general, and administrative
expenses during the second quarter is primarily due to increased labor costs
related to increased headcount, wages and incentive bonuses due to higher
profitability, travel costs, tradeshow activity and administrative costs related
to the start-up of the new business units.
Research and Development: Research and development expenses for the second
- ------------------------
quarter of 1997 increased 22.7% to $6.7 million compared to $5.5 million for the
second quarter of 1996, but stayed constant as a percentage of sales at 17.8%
for the respective periods. Research and development expense for the six month
period ended June 27, 1997 increased 16.4% to $12.6 million compared to $10.8
million for the six month period ended June 28, 1996, but decreased as a
percentage of sales to 17.6% from 18.8% for the respective periods. The increase
in research and development expenses during the second quarter is primarily due
to increased activity related to the development of the next generation of the
image generator product, Harmony.
OTHER INCOME, NET
- -----------------
Other income for the second quarter of 1997 decreased 38.3% to $0.7 million
compared to $1.1 million for the second quarter of 1996. For the six month
period ended June 27 1997, other income decreased 31.1% to $1.2 million compared
to $1.8 million for the six month period ended June 28, 1996. The decrease in
other income for the second quarter and six month period is due to a decrease in
interest income due to lower average cash and marketable securities balances and
gains recognized on the sale of investment securities in 1996.
INCOME TAXES
- ------------
The Company's combined federal, state and foreign effective income tax rate was
28.3% for the first six months of 1997. The tax rate for the same period in 1996
was 38%. These rates are calculated based on an estimated annual effective tax
rate applied to income before income taxes. The improvement in 1997 over 1996 is
attributable to utilization of foreign loss carryforwards against U.S. taxable
income and increased benefit of the foreign sales corporation.
LIQUIDITY & CAPITAL RESOURCES
- -----------------------------
Working capital at June 27, 1997 was $127.7 million compared to $126.9 million
at December 27, 1996. This includes cash, cash equivalents and marketable
securities of $66.8 million and $63.0 million at June 27, 1997 and December 27,
1996, respectively. The Company's operations provided $12.7 million during the
first six months of 1997, compared to $15.4 million of cash used in operations
during the first six months of 1996. Cash was also provided from proceeds of
sales of marketable securities and proceeds from employee stock purchase and
option plans. Cash was principally used to purchase marketable securities,
capital equipment and treasury stock and to make payments on the line of credit.
On September 19, 1996, the Company announced that its Board of Directors had
authorized a plan that allows the Company to repurchase up to 500,000 shares of
its common stock. As of August 1, 1997, the Company has repurchased and retired
95,000 shares of its common stock.
Management believes that existing cash and marketable securities balances,
borrowings available under the line of credit and cash generated from operations
will be adequate to meet the Company's anticipated cash requirements through
June 1998.
This quarterly report on Form 10-Q may be deemed to contain certain forward-
looking statements. Any forward-looking statements involve risks and
uncertainties, including but not limited to risk of product demand, market
acceptance, economic conditions, competitive products and pricing, difficulties
in product development, commercialization and technology, and other risks
detailed in this filing. Although the Company believes it has the product
offerings and resources for continuing success, future revenue and margin trends
cannot be reliably predicted. Factors external to the Company can result in
volatility of the Company's common stock price. Because of the foregoing
factors, recent trends are not necessarily reliable indicators of future stock
prices or financial performance.
9
<PAGE>
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
(a) The Company held its Annual Meeting of Stockholders on May 22, 1997.
Proxies for the meeting were solicited pursuant to Regulation 14A.
(b) The Company's Board of Directors is divided into three classes, with
directors in each class serving for three-year terms. Accordingly,
not all directors are elected at each Annual Meeting of
Stockholders. Peter O. Crisp and Ivan E. Sutherland were re-elected
as Directors and other continuing Directors are: Stewart Carrell,
Henry N. Christiansen, James R. Oyler, and John E. Warnock.
(c) The matters described below were voted on at the Annual Meeting of
Stockholders, and the number of votes cast with respect to each
matter and, with respect to the election of directors, for each
nominee, were as indicated.
1. To elect two directors to serve until the 2000 Annual Meeting of
Stockholders.
Nominees for Director
---------------------
PETER O. CRISP
For: 7,813,382 Against: 74,174
IVAN E. SUTHERLAND
For: 7,814,132 Against: 73,424
2. To approve an amendment to the Evans & Sutherland 1995 Long-Term
Incentive Equity Plan to increase the number of shares issuable
under such plan by 450,000 shares.
For: 5,824,770 Against: 2,055,592 Abstained: 7,194
Unvoted: 1,185,833
3. To ratify the appointment of KPMG Peat Marwick LLP as independent
auditors of the Company for the fiscal year ending December 31,
1997.
For: 7,874,192 Against: 7,893 Abstained: 5,471 Unvoted: 1,185,833
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Regulation S-K
Exhibit No. Description
-------------- -----------
11 Earnings Per Share Calculation
27 Financial Data Schedule
(b) There were no reports on Form 8-K filed for the three-month period
ended June 27, 1997.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
EVANS & SUTHERLAND COMPUTER CORPORATION
---------------------------------------
Registrant
Date AUGUST 11, 1997 /S/
--------------- ---------------------------------------
JOHN T. LEMLEY, VICE PRESIDENT
AND CHIEF FINANCIAL OFFICER
(PRINCIPAL FINANCIAL OFFICER)
11
<PAGE>
EXHIBIT 11
EVANS & SUTHERLAND COMPUTER CORPORATION
EARNINGS PER SHARE CALCULATION
Unaudited
(In thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
--------------------------------- ---------------------------------
June 27, June 28, June 27, June 28,
1997 1996 1997 1996
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Net earnings applicable to common stock $ 1,975 $ 1,493 $ 3,386 $ 2,250
=============== =============== =============== ===============
Primary shares outstanding:
Weighted average number of
common shares outstanding 9,017 8,954 9,042 8,848
Common equivalent shares outstanding 377 374 372 332
--------------- --------------- --------------- ---------------
Weighted average common and
common equivalent shares outstanding 9,394 9,328 9,414 9,180
=============== =============== =============== ===============
Fully diluted shares outstanding:
Weighted average number of
common shares outstanding 9,017 8,954 9,042 8,848
Common equivalent shares outstanding 484 376 484 376
--------------- --------------- --------------- ---------------
Weighted average common and
common equivalent shares outstanding 9,501 9,330 9,526 9,224
=============== =============== =============== ===============
Primary net earnings per common and
common equivalent share outstanding $ 0.21 $ 0.16 $ 0.36 $ 0.25
=============== =============== =============== ===============
Fully diluted net earnings per common and
common equivalent share outstanding $ 0.21 $ 0.16 $ 0.36 $ 0.24
=============== =============== =============== ===============
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM 10Q FOR
PERIOD ENDING JUNE 27, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> DEC-28-1996
<PERIOD-END> JUN-27-1997
<CASH> 9,960
<SECURITIES> 56,831
<RECEIVABLES> 26,757
<ALLOWANCES> 618
<INVENTORY> 21,893
<CURRENT-ASSETS> 162,730
<PP&E> 120,052
<DEPRECIATION> 76,186
<TOTAL-ASSETS> 215,388
<CURRENT-LIABILITIES> 34,980
<BONDS> 18,015
0
0
<COMMON> 1,800
<OTHER-SE> 160,593
<TOTAL-LIABILITY-AND-EQUITY> 215,388
<SALES> 71,549
<TOTAL-REVENUES> 71,549
<CGS> 38,997
<TOTAL-COSTS> 38,997
<OTHER-EXPENSES> 28,229
<LOSS-PROVISION> 839
<INTEREST-EXPENSE> 677
<INCOME-PRETAX> 4,722
<INCOME-TAX> 1,336
<INCOME-CONTINUING> 3,386
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,386
<EPS-PRIMARY> .36
<EPS-DILUTED> .36
</TABLE>
