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 September 30, 1999
-------------------------
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 October
31, 1999, the registrant had outstanding 4,931,911 common shares without
par value.
The Index to Exhibits is located at page 14 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
Consolidated balance sheets at September 30, 1999,
September 30, 1998 and June 30, 1999 3
Consolidated statements of operations and comprehensive
income for the three months ended September 30, 1999
and September 30, 1998 5
Consolidated statements of cash flows for the
three months ended September 30, 1999 and September 30,1998 6
Notes to consolidated financial statements 7
Item 2. Management's discussion and analysis of financial
condition and results of operations 8
PART II. Other Information 13
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ROBINSON NUGENT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
September 30 June 30
---------------------- -------
ASSETS 1999 1998 1999
------- ------- -------
(Unaudited)
<S> <S> <S> <S>
Current assets:
Cash and cash equivalents $ 1,147 $ 1,035 $ 845
Accounts receivable, net 14,373 8,472 13,159
Inventories:
Raw materials 1,039 990 971
Work in process 6,490 5,818 5,569
Finished goods 3,858 4,224 4,092
------- ------- -------
Total inventories 11,387 11,032 10,632
Other current assets 1,791 2,069 3,313
------- ------- -------
Total current assets 28,698 22,608 27,949
Property, plant & equipment,
net 17,968 20,200 18,539
Other assets 152 517 138
------- ------- -------
Total assets $46,818 $43,325 $46,626
======= ======= =======
</TABLE>
See accompanying notes to the consolidated financial statements.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
ROBINSON NUGENT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
September 30 June 30
----------------- -------
LIABILITIES AND SHAREHOLDERS' EQUITY 1999 1998 1999
------- ------- -------
(Unaudited)
<S> <S> <S> <S>
Current liabilities:
Current installments of long-term debt $ 462 $ 379 $ 449
Accounts payable 7,164 5,294 7,441
Accrued expenses 4,771 5,268 5,369
------- ------- -------
Total current liabilities 12,397 10,941 13,259
Long-term debt, excluding current
installments 8,667 9,228 9,016
Other liabilities 985 980 901
------- ------- -------
Total liabilities 22,049 21,149 23,176
------- ------- -------
Shareholders' equity:
Common shares without par value
Authorized shares 15,000,000; issued
6,851,250 shares 20,950 20,950 20,950
Retained earnings 15,614 13,246 14,847
Equity adjustment from foreign
currency translation 990 1,067 492
Employee stock purchase plan loans
and deferred compensation (65) (95) (77)
Less cost of common shares in treasury;
1,919,339 shares at September 30, 1999,
1,959,485 shares at September 30, 1998
and 1,925,668 shares at June 30, 1999 (12,720) (12,992) (12,762)
------- ------- -------
Total shareholders' equity 24,769 22,176 23,450
------- ------- -------
Total liabilities and shareholders'
equity $46,818 $43,325 $46,626
======= ======= =======
</TABLE>
See accompanying notes to the consolidated financial statements.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
ROBINSON NUGENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Three Months Ended
September 30
--------------------
1999 1998
---------------
(Unaudited)
<S> <S> <S>
Net sales $20,950 $14,914
Cost of sales 15,388 12,086
------- -------
Gross profit 5,562 2,828
Selling, general and
administrative expenses 3,998 3,418
Special and unusual expenses 230 798
------- -------
Operating income (loss) 1,334 (1,388)
------- -------
Other income (expense):
Interest income 14 13
Interest expense (176) (164)
Currency loss (75) (67)
------- -------
(237) (218)
------- -------
Income (loss) before income
taxes 1,097 (1,606)
Income taxes 313 (289)
------- -------
Net income (loss) $ 784 $(1,317)
------- -------
Other comprehensive income:
Foreign currency translation 498 355
------- -------
Comprehensive income (loss) $ 1,282 $ (962)
======= =======
Per Share Data:
Basic net income (loss) per
common share $ .16 $ (.27)
======= =======
Weighted average number of
common shares outstanding 4,931 4,892
======= =======
Diluted net income (loss) per
common share $ .16 $ (.27)
======= =======
Adjusted weighted average
number of common shares,
assuming dilution 4,985 4,892
======= =======
Dividends per common share $ -- $ --
======= =======
</TABLE>
See accompanying notes to the consolidated financial statements.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
ROBINSON NUGENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
Three Months Ended
September 30
--------------------
1999 1998
------- -------
(Unaudited)
<S> <S> <S>
Cash flows from operating activities:
Net income (loss) $ 784 $(1,317)
Adjustments to reconcile net income (loss)
to net cash
provided by (used in) operating activities:
Depreciation and amortization 1,120 1,035
Disposal of capital assets 93 8
Issuance of treasury shares as
compensation 27 --
Changes in assets and liabilities
Receivables (1,549) 802
Inventories (755) (970)
Other assets 861 (256)
Accounts payable and accrued expenses (791) 912
Income taxes 972 (321)
Deferred income taxes (2) (9)
------- -------
Net cash provided by (used in) operating
activities 760 (116)
------- -------
Cash flows from investing activities:
Capital expenditures (927) (1,351)
Proceeds from sale of fixed assets 326 --
------- -------
Net cash used in investing activities (601) (1,351)
------- -------
Cash flows from financing activities:
Proceeds from long-term debt 500 1,500
Repayments of long-term debt (884) (41)
Repayments of employee stock purchase plan
loans 9 10
------- -------
Net cash provided by (used in) financing
activities (375) 1,469
------- -------
Effect of exchange rate changes on cash 518 74
------- -------
Increase in cash and cash equivalents 302 76
Cash and cash equivalents at beginning
of period 845 959
------- -------
Cash and cash equivalents at end of period $ 1,147 $ 1,035
======= =======
</TABLE>
See accompanying notes to the consolidated financial statements.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
ROBINSON NUGENT, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 1999 AND 1998, AND JUNE 30, 1999
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. The results of operations for the interim period
are not necessarily an indication of results to be expected for the
entire year.
2. 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, 1999, and management's discussion and analysis
included in Part I, Item 2 in this report.
3. The Company recorded special and unusual expenses of $230,000,
before taxes, in the quarter ending September 30, 1999. This is
presented separately as a component of the operating income (loss) in the
consolidated statements of operations. These expenses are personnel
costs incurred to design and implement a new information and enterprise
resource planning system for North American and European operations.
This new system is being designed and implemented to satisfy year 2000
requirements, enhance management and control systems, improve customer
service and vendor communications.
4. The Financial Accounting Standards Board has issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities",
which establishes accounting and reporting standards for hedging
activities and for derivative instruments, including certain
derivative instruments embedded in other contracts (collectively
referred to as derivatives). It requires that an entity recognize
all derivatives as either assets or liabilities in the statement of
financial position and measure those instruments at fair value. RN
will adopt the new standard in fiscal 2001. RN does not expect
adoption of this standard will have a material impact on its
financial statements.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Customer orders for the first quarter ended September 30, 1999, amounted
to $27.2 million, up 62% from orders of $16.8 million in the same quarter
of the prior year. This increase reflected a 34% increase in the United
States, a 156% increase in Europe and a 33% increase in Asia. In
addition, the Company's backlog of unshipped orders increased in the
current quarter to $19.2 million, an increase of 56% compared to $12.3
million at September 30, 1998. The Company's backlog in the United
States increased 28% due primarily to increased orders of connectors for
Internet related applications such as servers, routers, hubs and other
telecommunication equipment. The European backlog increased 182% due to
the receipt of several large orders of next-generation, value added smart
card reader connectors from the Company's largest European customer.
Worldwide customer orders were $17.9 million in the fourth quarter of the
prior year, and the backlog of unshipped orders at June 30, 1999, was $13
million. Based on the improved incoming order activity and a higher
backlog of unshipped orders, management anticipates a continuation of the
Company's improved performance as the year progresses.
Net sales increased 40% in the quarter to $20.9 million compared to $14.9
million in the first quarter of the prior year, and 11% compared to $18.9
million in the fourth quarter of the prior year. Customer sales in the
United States increased 42% to $14.4 million compared to $10.1 million in
the first quarter of the prior year, and 16% compared to $12.5 million in
the prior quarter. The Company continues to experience higher levels of
incoming orders and sales activity on its more profitable backplane
connectors, and its high-density, surface mount, fine pitch board-to-
board interconnect systems. These types of connectors are used in
communication and networking components utilized to support the
infrastructure of the Internet.
European customer sales increased 41% to $4.9 million compared to $3.5
million in the first quarter of the prior year, and increased by 4% from
$4.7 million in quarter ended June 30, 1999. This sales increase is due
primarily to an increase in customer orders and sales of smart card
reader connectors. These connectors are currently in demand by major
communication and digital satellite receiver manufacturing companies in
Europe. The European sales team will continue to focus its sales effort
on this profitable business niche. Based on higher incoming order
activity and an increase in the backlog <PAGE>
of unshipped orders in these product categories, management anticipates
improved performance in this region as the year progresses.
Customer sales in Asia, which includes sales generated from operations in
Japan, Malaysia and Singapore, were $1.6 million in the quarter compared
to $1.3 million in the first quarter of the prior year, and $1.8 million
in the prior quarter. The economic conditions have stabilized in the
region and the strengthening of the Japanese yen and other Asian
currencies had some favorable impact on sales in the quarter. The
weakening of the dollar and the pound sterling against these currencies
has lowered the relative cost of products produced in North America and
Europe, compared to products produced in Asia. If the Japanese yen
continues to remain strong, it will facilitate higher sales and improve
the profitability of products manufactured in North America, Europe and
Malaysia, and sold in Japan.
Comparative sales by geographic territory for the respective periods
follows:
<TABLE>
<CAPTION>
Three Months Ended
($000 omitted) September 30
-------------------
1999 1998
------- -------
<S> <S> <S>
United States:
Domestic $13,909 $ 9,800
Export to rest of world 532 339
------- -------
Total sales to customers 14,441 10,139
Intercompany 1,536 872
------- -------
Total United States 15,977 11,011
------- -------
Europe:
Domestic sales to
customers 4,894 3,475
Intercompany 1,158 558
------- -------
Total Europe 6,052 4,033
------- -------
Asia:
Domestic sales to
customers 1,615 1,300
Intercompany 1,100 891
------- -------
Total Asia 2,715 2,191
------- -------
Eliminations (3,794) (2,321)
------- -------
Consolidated $20,950 $14,914
======= =======
</TABLE>
Gross profits in the quarter ended September 30, 1999, amounted to $5.6
million or 26.5 percent of net sales, compared to $2.8 million or 19.0
percent of net sales in the prior year. Gross profits are net of
engineering charges associated with new product development, which
amounted to $1.2 million or 5.8 percent of net sales in the current
quarter compared to $0.8 million or 5.3 percent of net sales in the prior
year. The increase in gross profits in the quarter compared to the prior
year reflects higher gross margins on sales and improved manufacturing
efficiencies and plant utilization. Gross profits continue to be
favorably impacted by the effect of manufacturing cost reduction
programs.
Selling, general and administrative expenses of $4.0 million for the
three months ended September 30, 1999 increased 17.6% compared to
expenses of $3.4 million in the first quarter of the prior year. This
increase was due primarily to higher sales commission expenses in the
United States and Europe, and expenses related to the new information
system in Europe and the United States.
<PAGE>
The Company recorded special and unusual expenses of $0.2 million before
taxes, in the quarter. These expenses include personnel costs incurred to
design and implement the new information and enterprise resource planning
system in Europe and the Company's cable assembly operations in North
America. This system is currently operational for connector and cable
assembly operations in the United States and Mexico. European operations
are scheduled to complete the implementation of this system in December
1999.
Other income and expense for the three months ended September 30, 1999,
reflect expenses of $237,000 compared to $218,000 for the comparable
three-month period in the prior year. Other income and expense reflected
currency losses in the current and first quarter of the prior year,
combined with a slight increase in interest expense. Interest expense
increased from $164,000 in the prior period to $176,000 in the current
period due primarily to an increase in short-term borrowing rates.
Currency losses in the quarter were generated primarily in Europe and the
United States, but were partially offset by currency gains in Japan.
The provision for income taxes was provided using the appropriate
effective tax rates for each of the tax jurisdictions in which the
Company operates. The Company maintains a valuation allowance for tax
benefits of prior period net operating losses in various jurisdictions.
At such time as management is able to project the probable utilization of
all or part of these net operating loss carryforward provisions, the
valuation allowances for these deferred tax assets will be reversed.
The net income in the quarter ended September 30, 1999, amounted to $0.8
million or 16 cents per share, compared to a net loss of $1.3 million or
27 cents per share in the first quarter of the prior year. Operations in
the United States, Europe and Asia generated net income in the current
quarter of $544,000, $201,000 and $4,000 respectively. The Company has
steadily improved its performance quarter by quarter since the start of
the prior fiscal year. This performance improved from one cent per share
in the second quarter of last year, to ten cents in the third quarter,
fifteen cents in the fourth quarter (excluding the one-time tax benefit
recognized in the fourth quarter), to sixteen cents in the current
quarter.
FINANCIAL CONDITION AND LIQUIDITY
Working capital at September 30, 1999, amounted to $16.3 million compared
to $11.7 million at September 30, 1998 and $14.7 million at June 30,
1999. The current ratio was 2.3 to 1 at September 30, 1999 compared to
2.1 to 1 at September 30, 1998. The increase in working capital,
compared to the prior year, primarily reflects a $5.9 million increase in
accounts receivable, partially offset by increases in accounts payable.
Long-term debt excluding current installments was $8.7 million as of
September 30, 1999, and represented 35 percent of shareholders' equity at
September 30, 1999, compared to $9.2 million or 42 percent of
shareholders' equity at September 30, 1998.
The Company believes future working capital and capital expenditure
requirements can be met from cash provided by operating activities,
existing cash balances, and borrowings available under the existing
credit facilities.
INFORMATION SYSTEMS AND YEAR 2000 ISSUES
The Company is currently in the process of replacing the management
information systems of its operations in the United States and Europe
including order management, manufacturing resource planning, finance and
accounting. These systems are scheduled to be operational by December
1999 at a total estimated cost of $6.8 million. All operations in the
United States have been converted to the new system. European operations
are scheduled to convert to the new system in December 1999. The Company
has incurred costs in the current and prior periods of approximately $6.1
million. <PAGE>
Expenditures in the current quarter include $0.2 million of personnel
costs reflected in the special and unusual expense category of the
statement of operations, and $0.3 million of capital expenditures.
Funding for these expenditures has been provided by operating activities,
existing cash balances and borrowings available under the existing credit
facilities.
The Company expects that this new integrated system will increase
operational efficiencies, support future growth, and address the impact
of the year 2000 on current information systems. While the Company's
future operating results and financial condition could be adversely
affected by functional or performance difficulties with the new system
during the transition period in Europe, management does not expect
significant adverse difficulties to occur.
The Company does not presently have an acceptable contingency plan in the
event of failure of the new management information system in Europe.
There is uncertainty as to the effects of any such failure on the
Company's results of operation, liquidity and financial conditions. The
Company intends to continue to review and consider contingency plans for
this region as preparations continue to convert to the new system in
Europe in December 1999.
In addition, other information and operational systems have been assessed
related to the impact of the year 2000. Plans have been developed to
address system modifications required by December 31, 1999.
The Company has considered the potential effect of Year 2000 issues on
the Company's business, results of operations, and financial condition if
key suppliers and vendors do not become year 2000 compliant in a timely
manner. Management has taken reasonable steps to verify the year 2000
readiness of its suppliers, vendors and customers.
DIVIDEND ACTION
On November 4, 1999 the Board of Directors voted not to declare a cash
dividend in the quarter.
CAUTIONARY STATEMENTS FOR PURPOSES OF THE SAFE HARBOR
In addition to statements of historical fact, this quarterly report
contains forward-looking statements which are inherently subject to
change, based on known and unknown risks, including but not limited to
changes in the market and industry. Please refer to documents filed with
the Securities and Exchange Commission for additional information on
factors that could materially affect the Company's financial results.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Not applicable.
Item 2. Not applicable.
Item 3. Not applicable.
Item 4. Not applicable.
Item 5. Not applicable.
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
September 30, 1999.
<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 11/8/99 /s/ Larry W. Burke
------------------- ------------------------
Larry W. Burke
President and Chief Executive Officer
Date 11/8/99 /s/ Robert L. Knabel
-------------------- ------------------------
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, (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
Report dated July 6, 1992.)
4.5 Amendment No. 3 to Rights Agreement dated
February 11, 1998 (Incorporated by reference
To Exhibit 4.5 to Form 10-Q Report for the
Period ended December 31, 1998.)
(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.)
10.3 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.)
<PAGE>
10.4 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.)
10.5 Deferred compensation agreement dated
May 10, 1990 between Robinson Nugent,
Inc. and Larry W. Burke, President and
Chief Executive Officer. (Incorporated
by reference to Exhibit 19.1 to Form
10-K Report for year ended June 30, 1990.)
10.6 Rabbi Trust Agreement dated July 1, 1996
between Robinson Nugent, Inc. and Dean
Witter Trust Company, related to the
deferred compensation agreement between
Robinson Nugent, Inc. and Larry W. Burke
President and Chief Executive Officer.
(Incorporated by reference to Exhibit
10.6 to Form 10-K Report for year ended
June 30, 1997.)
10.7 Amendment of the 1993 Robinson Nugent, Inc.
Employee and Non-Employee Director Stock
Option Plan. (Incorporated by reference to
Exhibit 10.7 to Form 10-K Report for year
ended June 30, 1998.)
10.8 Summary of the 1993 Robinson Nugent, Inc.
Employee and Non-Employee Director Stock
Option Plan, as amended. (Incorporated by
Reference to Exhibit 10.8 to Form 10-K Report
for year ended June 30, 1998.)
10.9 Summary of Robinson Nugent, Inc. Bonus
Plan for the fiscal year ended June 30,
1999. (Incorporated by reference to
Exhibit 10.9 to Form 10-K Report for
year ended June 30, 1998.)
(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 SEPTEMBER 30, 1999 AND IS
QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 1,147
<SECURITIES> 0
<RECEIVABLES> 14,373
<ALLOWANCES> 568
<INVENTORY> 11,387
<CURRENT-ASSETS> 28,698
<PP&E> 62,436
<DEPRECIATION> 44,468
<TOTAL-ASSETS> 46,818
<CURRENT-LIABILITIES> 12,397
<BONDS> 0
<COMMON> 20,950
0
0
<OTHER-SE> 3,819
<TOTAL-LIABILITY-AND-EQUITY> 46,818
<SALES> 20,950
<TOTAL-REVENUES> 20,950
<CGS> 15,388
<TOTAL-COSTS> 15,388
<OTHER-EXPENSES> 4,228
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 176
<INCOME-PRETAX> 1,097
<INCOME-TAX> 313
<INCOME-CONTINUING> 784
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 784
<EPS-BASIC> .16
<EPS-DILUTED> .16
</TABLE>
