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 MARCH 31, 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 0-9010
--------------------------------------------------
ROBINSON NUGENT, INC.
(Exact name of registrant as specified in its charter)
- -----------------------------------------------------------------------
INDIANA 35-0957603
- -----------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
800 East Eighth Street, New Albany, Indiana 47151-1208
- -----------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (812) 945-0211
----------------
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 practical date: As of
April 30 1997, the registrant had outstanding 4,891,765 common shares
without par value.
The Index to Exhibits is located at page 13 in the sequential
numbering system. Total pages: 15.
<PAGE>
ROBINSON NUGENT, INC. AND SUBSIDIARIES
INDEX
Page No.
--------
PART I. Financial Information:
Item 1. Financial Statements (Unaudited)
Consolidated condensed balance sheets at March 31,1997,
March 31, 1996 and June 30, 1996 .......3
Consolidated condensed statements of income for the three
and nine months ended March 31, 1997 and March 31, 1996......5
Consolidated condensed statements of cash flows for the
nine months ended March 31, 1997 and March 31,1996 ..... 6
Notes to consolidated condensed financial statements .......7
Item 2. Management's discussion and analysis of financial
condition and results of operations .......8
PART II. Other Information ..... 11
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ROBINSON NUGENT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION> March 31 June
30
------------------ -------
ASSETS 1997 1996 1996
------- ------- -------
<C> <C> <C>
<S>
Current assets:
Cash and cash equivalents $ 2,027 $ 2,024 $ 2,368
Accounts receivable, net 13,729 12,280 10,433
Inventories:
Raw materials 1,722 2,263 1,899
Work in process 6,163 6,977 7,021
Finished goods 3,811 4,169 4,526
------- ------- -------
Total inventories 11,696 13,409 13,446
Other current assets 1,638 1,747 1,532
------- ------- -------
Total current assets 29,090 29,460 27,779
------- ------- -------
Property, plant & equipment, net 21,267 25,588 23,618
Other assets 63 692 69
------- ------- -------
Total assets $50,420 $55,740 $51,466
======= ======= =======
</TABLE>
See accompanying notes to consolidated condensed financial statements.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
ROBINSON NUGENT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
March 31 June
30
------------------ -------
LIABILITIES AND SHAREHOLDERS' EQUITY 1997 1996 1996
------- ------- -------
<S> <C> <C> <C>
Current liabilities:
Current installments of long-term debt $ 752 $ 522 $ 713
Short-term bank borrowings -- 2,520 6,400
Accounts payable 4,005 6,022 5,692
Accrued expenses 5,167 4,752 4,557
Income taxes 1,029 578 89
------- ------- -------
Total current liabilities 10,953 14,394 17,451
------- ------- -------
Long-term debt, excluding current
installments 8,030 3,428 3,036
Deferred income taxes 980 1,047 1,011
------- ------- -------
Total liabilities 19,963 18,869 21,498
------- ------- -------
Shareholders' equity:
Common shares without par value
Authorized shares: 15,000,000;
Issued shares: 6,851,250 20,950 20,955 20,950
Retained earnings 20,560 22,921 19,521
Equity adjustment from foreign
currency translation 2,130 3,108 2,847
Employee stock purchase plan loans
and deferred compensation (187) (489) (354)
Less treasury shares: 1,959,485 shares
at March 31, 1997 and June 30, 1996,
and 1,459,642 shares at March 31, 1996 (12,996) (9,624) (12,996)
------- ------- -------
Total shareholders' equity 30,457 36,871 29,968
------- ------- -------
Total liabilities and shareholders'
equity $50,420 $55,740 $51,466
======= ======= =======
</TABLE>
See accompanying notes to consolidated condensed financial statements.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
ROBINSON NUGENT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31 March 31
----------------- -----------------
1997 1996 1997 1996
------- ------- ------- -------
<S> <C> <C> <C> <C>
Net sales $21,651 $21,178 $62,874 $61,725
Cost of sales 16,474 16,434 48,722 47,448
------- ------- ------- -------
Gross profit 5,177 4,744 14,152 14,277
Selling, general and
administrative expenses 3,786 3,952 11,464 11,738
------- ------- ------- -------
Operating income 1,391 792 2,688 2,539
------- ------- ------- -------
Other income (expense):
Interest income 53 34 95 92
Interest expense (164) (142) (538) (375)
Royalty income 5 95 55 155
Currency gain (loss) 133 17 308 (84)
Other expense -- -- -- (122)
------- ------- ------- -------
27 4 (80) (334)
------- ------- -------- -------
Income before income taxes 1,418 796 2,608 2,205
Income taxes 479 464 1,129 1,129
------- ------- ------- -------
Net income $ 939 $ 332 $ 1,479 $ 1,076
======= ======= ======= =======
Net income per common share $ .19 $ .06 $ .30 $ .20
======= ======= ======= =======
Dividends per common share $ .03 $ .03 $ .09 $ .09
======= ======= ======= =======
Weighted average number of
common shares outstanding
and common share equivalents 4,903 5,414 4,906 5,433
======= ======= ======= =======
</TABLE>
See accompanying notes to consolidated condensed financial statements.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
ROBINSON NUGENT, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Nine Months Ended
March 31
------------------
1997 1996
------- -------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,479 $ 1,076
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 3,989 3,972
(Gains) losses from disposition of
capital assets (8) 258
Increase in receivables (3,296) (71)
(Increase) decrease in inventories 1,750 (2,131)
Decrease in other current assets 41 400
Increase (decrease) in accounts payable and
accrued expenses (1,077) 187
Increase in income taxes 762 399
------- -------
Net cash provided by operating activities 3,640 4,090
------- -------
Cash flows from investing activities:
Capital expenditures (2,325) (5,467)
Proceeds from the sale of capital assets 146 --
Decrease in other assets 6 75
------- -------
Net cash used in investing activities (2,173) (5,392)
------- -------
Cash flows from financing activities:
Proceeds from short-term bank borrowings -- 2,230
Repayments of short-term bank borrowings (300) (239)
Proceeds from long-term debt -- 193
Repayments of long-term debt (749) (644)
Cash dividends paid (440) (484)
Repayments of employee stock purchase plan loans 119 182
Issuance of common stock -- 5
Stock options exercised -- 3
------- -------
Net cash provided by (used in) financing
activities (1,370) 1,246
------- -------
Effect of exchange rate changes on cash (438) (380)
------- -------
Decrease in cash and cash equivalents (341) (436)
Cash and cash equivalents at beginning of period 2,368 2,460
------- -------
Cash and cash equivalents at end of period $ 2,027 $ 2,024
======= =======
</TABLE>
See accompanying notes to consolidated condensed financial statements.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
ROBINSON NUGENT, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
MARCH 31, 1997 AND 1996, AND JUNE 30, 1996
1. In the opinion of management, the accompanying unaudited
consolidated condensed financial statements contain all adjustments
necessary (all of which are normal and recurring) to present fairly
the financial position of the Company and its subsidiaries, results
of operations, and cash flows in conformity with generally
accepted accounting principles.
2. Earnings per common share are based upon the weighted average
number of shares outstanding during each period, plus common share
equivalents resulting from dilutive stock options.
3. The income tax expense for the quarter and the nine months ended
March 31, 1997 were provided using the appropriate effective tax
rates for each of the tax jurisdictions in which the Company
operates. A provision for income tax expense has been accrued for
profits generated in the United States, Switzerland and
Netherlands, but no tax benefit has been recognized on the pretax
losses incurred in Singapore and Malaysia. The income tax expense
for profits generated in Scotland and Japan were offset by the
partial reversal of valuation allowances for tax benefits of prior
period net operating losses. At such time as management is able
to project the probable utilization of all or part of the net
operating loss carryforward provisions in Scotland, Singapore,
Malaysia and Japan, the valuation allowance for these deferred tax
assets will be reversed.
4. During February 1997 the Financial Accounting Standards Board
issued Statement of Financial Accounting Standards No. 128,
"Earnings Per Share" ("SFAS No. 128"). The Company will adopt SFAS
No. 128 during the second quarter of 1998 as required and does not
expect it to have a material impact on the calculation of net
income per share.
5. In February, 1997 the Company entered into a $9.0 million unsecured
revolving credit agreement with one of its banks. This agreement
expires on December 31, 1999. The weighted average interest rate
on the $6.0 million outstanding balance as of March 31, 1997 was
7.2%. Proceeds from this agreement were used to repay $6.4 million
of short-term borrowings.
6. Reference is directed to the Company's consolidated financial
statements (Form 10-K), including references to the Annual Report,
for the year ended June 30, 1996 and management's discussion and
analysis included in Part I, Item 2 in this report.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This discussion and analysis contains both historical and forward
looking information. The forward looking statements are made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward looking statements may be significantly
impacted by certain risks and uncertainties described herein, and in
the Company's annual report on Form 10-K for the year ended June 30,
1996.
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Net sales for the quarter ended March 31, 1997 were $21,651,000,
compared to sales of $21,178,000 in the same period a year ago. The
sales growth in the quarter reflects an increase in sales in Europe and
Asia, partially offset by lower customer sales in the United States.
Customer sales in Europe were $5,661,000 compared to $5,595,000 in the
same period a year ago as higher sales of "Smart Card" and PCMCIA
connectors were partially offset by lower export sales from Europe to
Asia. Customer sales in the United States decreased 4% compared to
prior year. Higher sales of PC Board connectors, newer 2.0 mm back
plane connectors and cable assemblies where offset primarily by lower
sales of high density sockets. Net sales for the nine months ended
March 31, 1997 were $62,874,000, up 2 percent over sales of $61,725,000
for the same period a year ago. Customer sales were higher in Europe
and Asia, partially offset by slightly lower customer sales in the
United States. Customer sales in the United States decreased slightly
compared to the prior year due primarily to the assignment of Asian
customer sales to our Asia Pacific division. European sales increased
5% due to higher domestic sales, partially offset by lower exports to
Asia.
<PAGE>
<TABLE>
<CAPTION>
Comparative sales by geographic territory for the respective periods
follows:
Three Months Ended Nine Months Ended
($000 omitted) March 31 March 31
------------------ -----------------
1997 1996 1997 1996
------- -------- ------- -------
<S> <C> <C> <C> <C>
United States:
Domestic $13,124 $13,602 $39,211 $39,630
Export:
Europe 18 11 49 48
Asia 8 168 192 1,152
Rest of world 498 505 1,646 1,062
------- ------- ------- -------
Total export sales 524 684 1,887 2,262
------- ------- ------- -------
Total sales to
customers 13,648 14,286 41,098 41,892
Intercompany 2,345 2,026 6,386 5,172
------- ------- ------- -------
Total United States 15,993 16,312 47,484 47,064
------- ------- ------- -------
Europe:
Domestic 5,661 5,271 16,243 14,738
Export to Asia -- 324 422 1,352
------- ------- ------- -------
Total sales to
customers 5,661 5,595 16,665 16,090
Intercompany 1,188 867 3,036 2,600
------- ------- ------- -------
Total Europe 6,849 6,462 19,701 18,690
------- ------- ------- -------
Asia:
Domestic 2,342 1,297 5,016 3,743
Export to Europe -- -- 95 --
------- ------- ------- -------
Total sales to
customers 2,342 1,297 5,111 3,743
Intercompany 555 514 2,174 2,096
------- ------- ------- -------
Total Asia 2,897 1,811 7,285 5,839
------- ------- ------- -------
Eliminations (4,088 (3,407) (11,596) (9,868)
------- ------- ------- -------
Consolidated $21,651 $21,178 $62,874 $61,725
======= ======= ======= =======
</TABLE>
Incoming customer orders for the quarter ended March 31, 1997 were
$21.7 million, compared to orders of $22.3 million in the same quarter
a year ago. Customer orders for the nine months ended March 31,1997
were $63.0 million compared to $63.4 million in the prior year. The
Company ended the quarter with a backlog of unshipped orders of $16.1
million compared to $16.9 million a year ago.
Gross profits in the quarter ended March 31, 1997 amounted to
$5,177,000 or 23.9 percent of net sales, compared to $4,744,000 or 22.4
percent of net sales in the prior year. Gross profits are net of
engineering charges associated with new product development which
amounted to $892,000 or 4.1 percent of net sales in the current quarter
compared to $1,013,000 or 4.8 percent of net sales in the prior year.
The gross profits in the quarter reflect continued competitive price
pressures, partially offset by lower manufacturing costs and higher
gross profits from recently developed products. Gross profits for the
nine months ended March 31, 1997 amounted to $14,152,000 or 22.5
percent of net sales, compared to $14,277,000 or 23.1 percent of net
sales in the prior year. Engineering expenses for the nine months
ended March 31, 1997 amounted to $2,427,000 or 3.8 percent of net sales
compared to $2,688,000 or 4.4 percent of net sales in the prior year.
The reduction of year-to-date engineering expenses is due primarily to
a reduction in outside product evaluation services.
<PAGE>
Selling, general and administrative expenses of $3,786,000 for the
three months ended March 31, 1997 decreased by $166,000 or 4 percent
compared to expenses of $3,952,000 in the prior year. Lower expenses
in Europe and the United States were partially offset by higher
administrative expenses in Asia. The lower expenses in Europe reflect
actions taken in prior periods to reduce administrative expenses in
this region. Expenses of $11,464,000 for the nine months ended March
31, 1997 decreased by $274,000 or 2.3 percent compared to expenses of
$11,738,000 in the prior year. This primarily reflected lower
commissions, advertising, travel and administrative expenses.
Other income and expense for the three months ended March 31, 1997
reflected a net income of $27,000 compared to $4,000 for the comparable
three month period in the prior year. This reflected a currency gain
in the quarter, offset by higher interest expense and lower royalty
income. Currency gains totaled $133,000 compared to $17,000 in the
prior year. The currency gains were generated primarily in
Switzerland, and were partially offset by currency losses in Scotland
and Japan. Interest expense increased to $164,000 compared to $142,000
in the prior year due to higher bank borrowings. Other income and
expense for the nine months ended March 31, 1997 reflected an expense
of $80,000 compared to $334,000 for the comparable nine month period in
the prior year. Currency gains and the elimination of expenses related
to a joint venture, were partially offset by higher interest expense
and lower royalty income. Currency gains in the current period of
$308,000 where recognized primarily in Scotland and Switzerland.
Interest expense increased to $538,000 compared to $375,000 in the
prior year period due to an increased borrowing level. Other expense
in the prior year includes $122,000 of expenses related to the
terminated Isocon L.C. joint venture.
The provision for income taxes was provided using the appropriate
effective tax rates for each of the tax jurisdictions in which the
Company operates. A provision for income tax expense has been accrued
for profits generated in the United States, Switzerland and
Netherlands, but no tax benefit has been recognized on the pretax
losses incurred in Singapore and Malaysia. The income tax expense for
profits generated in Scotland and Japan were offset by the partial
reversal of a valuation allowance for tax benefits of prior period net
operating losses. At such time as management is able to project the
probable utilization of all or part of the net operating loss
carryforward provisions, in Scotland, Singapore, Malaysia and Japan,
the valuation allowance for these deferred tax assets will be reversed.
The net income in the quarter ended March 31, 1997 amounted to $939,000
or 19 cents per share, compared to $332,000 or 6 cents per share, a
year ago. The net income for the nine months ended March 31, 1997
amounted to $1,479,000 or 30 cents per share compared to $1,076,000 or
20 cents per share a year ago. Year-to-date net income in the United
States of $1,651,000 and Europe of $352,000 were partially offset by
net losses of $524,000 in Asia.
<PAGE>
MATERIAL CHANGES IN FINANCIAL CONDITION
Net working capital at March 31, 1997 amounted to $18.1 million
compared to $15.1 million at March 31, 1996, $11.0 million at December
31, 1996, and $10.3 million at June 30, 1996. The current ratio was
2.7 to 1 compared to 2.0 to 1 in the prior year and 1.7 to 1 at
December 31, 1996. The increase in net working capital, compared to
the prior year, and the prior quarter, is due primarily to a reduction
in short-term bank borrowings. In February 1997, the Company replaced
its existing line of credit agreement with a new long-term credit
facility. Long-term borrowings under this agreement were $6.0 million
as of March 31, 1997. Cash and cash equivalent balances decreased by
$341,000 at March 31, 1997 compared to June 30, 1996. The new long-
term credit facility described above was the only significant change in
long-term debt in the quarter. Long-term debt due after one year
represented $8.0 million, or 26 percent of shareholders' equity at the
quarter end, compared to $3.4 million or 9 percent of shareholders'
equity at the prior year's quarter end. The Company believes working
capital and capital expenditure requirements can be met from
operations, cash balances, and available credit facilities.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
During February 1997 the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, "Earnings Per
Share" ("SFAS No. 128"). The Company will adopt SFAS No. 128 during
the second quarter of 1998 as required and does not expect it to have a
material impact on the calculation of net income per share.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Not applicable.
Item 2. Not applicable.
Item 3. Not applicable.
Item 4. Not applicable.
Item 5. Other information.
On January 28, 1997, the Company announced the election
of Mr. Donald C. Neel and Mr. Ben M. Streepey to three
year terms as members of the Board of Directors of the
Company.
Mr. Neel is the President and Chief Executive Officer of
Health Network International, located in Indianapolis,
Indiana. In addition to his regular duties as a member
of the Board of Directors, Mr. Neel will serve as a
member of the Audit committee.
Mr. Streepey is the Vice President - Network Printer
division of Lexmark International, located in Lexington,
Kentucky. In addition to his regular duties as a member
of the Board of Directors, Mr. Streepey will serve as a
member of the Compensation committee.
Item 6. Exhibits and Reports on Form 8-K.
(a) See Index to Exhibits.
(b) No reports on Form 8-K were filed during the
quarter
ended March 31, 1997.
<PAGE>
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.
ROBINSON NUGENT, INC.
--------------------------------------
(Registrant)
Date
----------------------- --------------------------------------
Larry W. Burke
President and Chief Executive Officer
Date
----------------------- --------------------------------------
Robert L. Knabel
Vice President, Treasurer and Chief
Financial Officer
<PAGE>
FORM 10-Q
INDEX TO EXHIBITS
Number of Sequential
Item Numbering
Assigned in System
Regulation S-K Page Number
Item 601 Description of Exhibit of Exhibit
- -------------- ------------------------------------- ------------
(2) Not applicable.
(4) 4.1 Specimen certificate for Common Shares,
without par value. (Incorporated by
reference to Exhibit 4 to Form S-1
Registration Statement No. 2-62521.)
4.2 Rights Agreement dated April 21, 1988
between Robinson Nugent, Inc. and Bank
One, Indianapolis, N.A. (Incorporated
by reference to Exhibit I to Form 8-A
Registration Statement dated May 2,
1988.)
4.3 Amendment No. 1 to Rights Agreement
dated September 26, 1991 between
Robinson Nugent, Inc. and Bank One,
Indianapolis, N.A. (Incorporated by
reference to Exhibit 4.3 to Form 10-K
Report for year ended June 30, 1991.)
4.4 Amendment No. 2 to Rights Agreement
dated June 11, 1992. (Incorporated by
reference to Exhibit 4.4 to Form 8-K
Current Report dated July 6, 1992.)
(10) 10.1 Robinson Nugent, Inc. 1983 Tax-Qualified
Incentive Stock Option Plan.
(Incorporated by reference to Exhibit
10.1 to Form 10-K Report for year ended
June 30, 1983.)
10.2 Robinson Nugent, Inc. 1983 Non Tax-
Qualified Incentive Stock Option Plan.
(Incorporated by reference to Exhibit
10.2 to Form 10-K Report for year ended
June 30, 1983.)
<PAGE>
10.3 Deferred compensation agreement dated
May 10, 1990 between Robinson Nugent,
Inc. and Larry W. Burke, President and
Chief Executive Officer, and related
agreement dated May 10, 1990 between
Robinson Nugent, Inc. and PNC Bank,
Kentucky, Inc. (formerly Citizens
Fidelity Bank and Trust Company of
Louisville, Kentucky) as trustee.
(Incorporated by reference to Exhibit
19.1 to Form 10-K Report for year ended
June 30, 1990.)
10.4 Summary of Robinson Nugent, Inc. Bonus
Plan for the fiscal year ended June 30,
1997. (Incorporated by reference to
Exhibit 10.7 to Form 10-K Report for
year ended June 30, 1996.)
10.5 1993 Robinson Nugent, Inc. Employee and
Non-Employee Director Stock Option Plan.
(Incorporated by reference to Exhibit
19.1 to Form 10-K Report for year ended
June 30, 1993.)
10.6 Summary of the Robinson Nugent, Inc.
Employee Stock Purchase Plan
(Incorporated by reference to Exhibit
19.2 to Form 10-K Report for year ended
June 30, 1993.)
(11) Not applicable.
(15) Not applicable.
(18) Not applicable.
(19) Not applicable.
(22) Not applicable.
(23) Not applicable.
(24) Not applicable.
(27) Financial Data Schedule
(99) Not applicable.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
ROBINSON
NUGENT, INC. 10-Q FOR THE PERIOD ENDING MARCH 31, 1997 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> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> MAR-31-1997
<CASH> 2,027
<SECURITIES> 0
<RECEIVABLES> 14,372
<ALLOWANCES> 643
<INVENTORY> 11,696
<CURRENT-ASSETS> 29,090
<PP&E> 60,738
<DEPRECIATION> 39,471
<TOTAL-ASSETS> 50,420
<CURRENT-LIABILITIES> 10,953
<BONDS> 0
<COMMON> 20,950
0
0
<OTHER-SE> 9,507
<TOTAL-LIABILITY-AND-EQUITY> 50,420
<SALES> 62,874
<TOTAL-REVENUES> 62,874
<CGS> 48,722
<TOTAL-COSTS> 48,722
<OTHER-EXPENSES> 11,464
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 538
<INCOME-PRETAX> 2,608
<INCOME-TAX> 1,129
<INCOME-CONTINUING> 1,479
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,479
<EPS-PRIMARY> .30
<EPS-DILUTED> .30
</TABLE>
