SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended February 3, 1996
Commission File Number 1-10512
Del Global Technologies Corp.
(Exact name of registrant as specified in its charter)
New York 13-1784308
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
One Commerce Park, Valhalla, NY 10595
(Address of principal executive offices)
(Zip Code)
(914) 686-3600
(Registrant's telephone number including area code)
Del Electronics Corp.
(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
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.
Common Stock - 4,288,758 shares
<PAGE>
PART I
Item 1. Financial Statements
Consolidated Balance Sheets - February 3, 1996 and July 29,
1995.
Consolidated Statements of Income for the Three Months and Six
Months ended February 3, 1996 and January 28, 1995.
Consolidated Statements of Cash Flows for the Six Months ended
February 3, 1996 and January 28, 1995.
Notes to Consolidated Financial Statements
1
<PAGE>
DEL GLOBAL TECHNOLOGIES CORP. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
ASSETS
February 3, July 29,
1996 1995
---- ----
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents .................. $ 162,052 $ 505,989
Investments available-for-sale ............. 497,790 378,534
Trade receivables .......................... 5,725,121 6,456,853
Cost and estimated earnings in excess of
billings on uncompleted contracts ....... 404,030 395,847
Inventory .................................. 19,908,557 18,038,358
Prepaid expenses and other current assets .. 1,567,122 1,117,963
--------- ---------
Total current assets .................... 28,264,672 26,893,544
---------- ----------
FIXED ASSETS - NET ................................. 8,175,092 7,752,781
GOODWILL - NET ..................................... 2,802,018 2,865,408
DEFERRED CHARGES ................................... 801,665 876,638
OTHER ASSETS ....................................... 626,212 666,263
------- -------
TOTAL ...................................... $40,669,659 $39,054,634
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long-term debt .......... $ 943,383 $ 943,383
Accounts payable - trade ................... 2,748,117 2,539,615
Accrued liabilities ........................ 2,137,886 2,484,435
Income taxes payable ....................... 544,598 277,830
------- -------
Total current liabilities ............... 6,373,984 6,245,263
--------- ---------
LONG-TERM LIABILITIES
Long-term debt (less current portion above) 11,755,397 11,902,951
Other ...................................... 782,424 775,541
Deferred taxes payable ..................... 605,806 605,806
------- -------
Total liabilities ....................... 19,517,611 19,529,561
---------- ----------
SHAREHOLDERS' EQUITY
Common stock, $.10 par value
Authorized - 10,000,000 shares
Issued and outstanding -
February 3, 1996 - 4,346,983
July 29, 1995 - 4,253,486 ............... 434,698 412,960
Additional paid-in capital ................. 17,490,139 16,239,784
Retained earnings .......................... 3,563,896 3,189,244
--------- ---------
21,488,733 19,841,988
---------- ----------
Less common shares in treasury -
February 3, 1996 - 58,225,
July 29, 1995 - 55,165 ..................... 336,685 316,915
------- -------
Total shareholders' equity ................. 21,152,048 19,525,073
---------- ----------
TOTAL ................................... $40,669,659 $39,054,634
=========== ===========
</TABLE>
See notes to consolidated financial statements
2
<PAGE>
DEL GLOBAL TECHNOLOGIES CORP. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
------------------ ----------------
Feb. 3, Jan 28, Feb. 3, Jan 28,
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net Sales .............................................................. $ 9,329,438 $ 7,579,366 $16,800,619 $13,715,422
Costs and expenses:
Cost of sales ...................................................... 5,553,918 4,280,738 9,744,552 7,499,943
Research and development ........................................... 789,063 688,294 1,431,894 1,209,050
Selling, general & administrative .................................. 1,784,151 1,578,032 3,356,117 3,054,806
Interest expense - net ............................................. 285,984 305,287 595,211 576,293
------- ------- ------- -------
8,413,116 6,852,351 15,127,774 12,340,092
--------- --------- ---------- ----------
Income before provision
for income taxes ................................................... 916,322 727,015 1,672,845 1,375,330
Provision for income taxes: ............................................ 283,261 221,800 510,218 419,500
------- ------- ------- -------
Net income ......................................................... $ 633,061 $ 505,215 $ 1,162,627 $ 955,830
=========== =========== =========== ===========
Per share amounts:
Net income per common share
and common share equivalents,
primary and fully diluted .......................................... $ .12 $ .10 $ .23 $ .19
=========== =========== =========== ===========
Weighted average number of
common shares outstanding
and common share equivalents ....................................... 5,276,094 4,911,717 5,252,173 5,012,086
========= ========= ========= =========
</TABLE>
See notes to consolidated financial statements
3
<PAGE>
DEL GLOBAL TECHNOLOGIES CORP. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
----------------
Feb. 3, Jan. 28,
1996 1995
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income .......................................$1,162,627 $ 955,830
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Imputed interest ............................. 33,133 18,991
Depreciation ................................. 338,919 388,492
Amortization ................................. 194,617 202,500
Changes in assets and liabilities:
Decrease in trade receivables ................ 731,732 946,817
(Increase) decrease in cost and estimated
earnings in excess of billings
on uncompleted contracts ........... (8,183) 168,445
Increase in inventory ........................ (1,870,199) (2,047,079)
Increase in prepaid and other current
assets .............................. (503,223) (196,453)
Decrease (increase) in other assets .......... 37,861 (16,692)
Increase (decrease) in accounts payable -
trade ............................... 208,502 (686,763)
(Decrease) increase in accrued liabilities ... (346,549) 12,804
Increase in income taxes payable ............. 266,768 96,162
------- ------
Net cash provided by (used in)
operating activities ................ 246,005 (156,946)
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for fixed assets ................ (761,231) (429,508)
(Investment in) sale of marketable
securities - net .................... (119,256) 52,731
Payments to former shareholders of
subsidiary acquired ................. (26,250) (195,375)
------- --------
Net cash used in investing activities ........ (906,737) (572,152)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayment of) proceeds from
bank borrowing ..........................(147,554) 578,105
Payment for repurchase of shares ................. (19,770) (122,554)
Proceeds from exercise of stock options
& warrants .............................. 491,867 62,446
Other ............................................ (7,748) (18,935)
------ -------
Net cash provided by financing activities 316,795 499,062
------- -------
(continued)
</TABLE>
See notes to consolidated financial statements
4
<PAGE>
DEL GLOBAL TECHNOLOGIES CORP. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
----------------
Feb. 3, Jan. 28,
1996 1995
---- ----
<S> <C> <C>
NET DECREASE IN CASH AND CASH EQUIVALENTS ........ $(343,937) $(230,036)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ... 505,989 445,597
------- -------
CASH AND CASH EQUIVALENTS, END OF PERIOD ......... $ 162,052 $ 215,561
========= =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Interest paid ........................... $ 569,505 $ 432,586
--------- ---------
Incomes taxes paid ...................... $ 269,405 $ 98,930
--------- ----------
</TABLE>
(concluded)
See notes to consolidated financial statements
5
<PAGE>
DEL GLOBAL TECHNOLOGIES CORP. & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 In the opinion of the Company, the accompanying unaudited consolidated
financial statements contain all adjustments (consisting of only
normal recurring adjustments) necessary to present fairly the results
of the Company's financial position as of February 3, 1996 and January
28, 1995 and the results of its operations and its cash flows for the
six months ended February 3, 1996 and January 28, 1995. The accounting
policies followed by the Company are set forth in Note 1 to the
Company's consolidated financial statements as of July 29, 1995. The
consolidated financial statements should be read in conjunction with
the notes to the consolidated financial statements as of July 29,
1995.
NOTE 2 The results of operations for the three and six month periods ended
February 3, 1996 are not necessarily indicative of the results to be
expected for the full year.
NOTE 3 PERCENTAGE OF COMPLETION ACCOUNTING
<TABLE>
<CAPTION>
Balance at
February 3, 1996
----------------
<S> <C>
Costs incurred on uncompleted contracts ........ $344,309
Estimated earnings ............................. 94,921
------
439,230
Less: Billings to-date ........................ 35,200
------
Costs and estimated earnings in excess
of billings on uncompleted
contracts ............................... $404,030
========
</TABLE>
The backlog of unshipped contracts being accounted for under the
percentage of completion method of accounting was $625,570 at February
3, 1996.
6
<PAGE>
NOTE 4 Inventory is stated at a lower of cost (first-in, first-out) or
market. Inventories and their effect on cost of sales are determined
by physical count for annual reporting purposes and are estimated by
management for interim reporting purposes based on estimated gross
margins.
<TABLE>
<CAPTION>
Inventory consists of the following:
February 3, July 29,
1996 1995
---- ----
<S> <C> <C>
Finished goods ....................... $ 4,853,706 $ 4,398,096
Work in process ...................... 8,434,964 7,642,588
Raw material and purchased parts ..... 6,619,887 5,997,674
--------- ---------
Total $19,908,557 $18,038,358
=========== ===========
</TABLE>
NOTE 5 FIXED ASSETS
<TABLE>
<CAPTION>
Fixed assets consist of the following:
February 3, July 29,
1996 1995
---- ----
<S> <C> <C>
Land ..................................... $ 694,046 $ 694,046
Building ................................. 2,146,025 2,146,025
Machinery and equipment .................. 7,164,933 6,624,296
Furniture and fixtures ................... 802,924 773,694
Leasehold improvements ................... 795,755 790,226
Construction in progress ................. 210,435 76,023
Transportation equipment ................. 11,425 10,987
------ ------
11,825,543 11,115,297
Less accumulated depreciation and
amortization ....................... 3,650,451 3,362,516
--------- ---------
$ 8,175,092 $ 7,752,781
=========== ===========
</TABLE>
Construction in progress relates to computer equipment and the
computerization of certain of the Company's manufacturing and
accounting systems.
NOTE 6 Net income per common share was computed using the modified treasury
stock method. This method was utilized since the number of shares of
common stock obtainable upon the assumed exercise of outstanding
options and warrants in the aggregate exceeded 20 percent of the
number of common shares outstanding at the end of the period. The
weighted average number of common shares and common share equivalents
for the period and for all periods presented includes the effect of
the 3 percent stock dividend declared on November 20, 1995 (see Note
7).
7
<PAGE>
NOTE 7 On November 20, 1995, the Company declared a 3 percent stock dividend
to holders of record on December 5, 1995, which was paid on December
21, 1995.
NOTE 8 LONG-TERM DEBT AND ACQUISITION
On March 5, 1996 the Company and its lending bank entered into an
Amended and Restated Credit Agreement wherein the bank increased the
Company's line of credit to $24,000,000, consisting of a $10,000,000
five-year term loan and a four-year revolving credit line of
$14,000,000. Initial borrowings made under this credit line on March
6, 1996 were used to pay off existing term loans, the existing
revolving credit loan balance and to fund the acquisition of certain
assets of the GENDEX Medical Division ("GENDEX") of Dentsply
International Inc. Borrowing under the revolving credit loan is based
upon a formula based on 80 percent of eligible accounts receivable and
50 percent of inventory, with a $2,000,000 maximum sublimit for
letters of credit. Interest will be computed at prime, or at the
Company's option, at a rate tied to the London Interbank Borrowing
Rate ("LIBOR").
On March 6, 1996, the Company and its newly-formed wholly-owned
subsidiary, GENDEX-DEL Medical Imaging Corp. acquired certain assets,
including inventories, fixed assets, intangibles and the use of the
GENDEX trade name, of the GENDEX Medical Division of Dentsply
International Inc. for $5,700,000 in cash and a subordinated term note
of $1,800,000. The subordinated term note bears interest at 7.75
percent, which is payable quarterly, with principal payments beginning
three years after closing. The Company assumed the lease for the
GENDEX facility in Franklin Park, Illinois and will operate the
business under the GENDEX-DEL name. The Company entered into a supply
agreement with Dentsply International Inc. for certain components and
parts used in the manufacture of medical x-ray equipment and systems
of GENDEX.
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
The Company had a line of credit of $10,000,000 with $8,225,000
outstanding and outstanding balances on two term loans of approximately
$1,821,000 and $2,625,000 on February 3, 1996. Borrowing under the line of
credit were based on 85 percent of eligible accounts receivable and 50 percent
of inventory, with a $1,000,000 maximum sub-limit for letters of credit.
On March 5, 1996, the Company and its lending bank entered into an
Amended and Restated Credit Agreement wherein the bank increased the Company's
line of credit to $24,000,000, consisting of a five-year $10,000,000 term loan
and a four-year revolving line of credit of $14,000,000. Borrowings under the
revolving line of credit are based on 80 percent of eligible accounts receivable
and 50 percent of inventory, with a $2,000,000 maximum sub-limit for letters of
credit. Borrowings under this credit line were used to pay off the existing term
loans and the existing revolving credit loan balance. Interest will be computed
at prime, or at the Company's option, at a rate tied to LIBOR. Approximately
$5,700,000 of this credit line was used to purchase certain assets of the GENDEX
Medical Division from Dentsply International Inc., on March 6, 1996. In
connection with such purchase, the Company delivered a seven-year $1,800,000
subordinated note to Dentsply with interest at 7.75 percent, payable quarterly.
After the acquisition, the Company had outstanding borrowings of $10,000,000
under the term loan and $8,300,000 under the revolving credit loan. The unused
and available portion of the line of credit was approximately $3,243,000, after
deducting outstanding letters of credit of approximately $652,000.
The Company believes its current financial resources, future operating
revenue and existing credit lines will be sufficient to meet its foreseeable
working capital requirements.
Working capital was approximately $21,891,000 at February 3, 1996,
compared to approximately $20,648,000 at July 29, 1995, an increase of 6.0
percent. The current ratio increased to 4.43 to 1 at February 3, 1996 from 4.31
to 1 at July 29, 1995.
Investments available-for-sale of approximately $498,000 at February 3,
1996 consist primarily of corporate debt securities and equities. These
investments are used to fund a deferred compensation plan for a key Company
employee.
Trade receivables at February 3, 1996 decreased approximately $732,000
as compared to July 29, 1995 as the result of collections and lower sales levels
in the quarter ended February 3, 1996 as compared to the quarter ended July 29,
1995. This is primarily attributable to more workdays in the last quarter of the
Company's fiscal year as compared to the second quarter of its fiscal year due
to plant shutdowns for the calendar year end holidays.
9
<PAGE>
Unbilled contract revenues were approximately $404,000 at February 3,
1996 as compared to $396,000 at July 29, 1995 due to work performed on contracts
which utilize the percentage of completion method of accounting.
Inventory at February 3, 1996 increased approximately $1,870,000 as
compared to July 29, 1995. Major new orders received in the six months ended
February 3, 1996 resulted in the increase of inventory levels.
Prepaid expenses and other current assets increased approximately
$503,000 at February 3, 1996 as compared to July 29, 1995. This increase was
primarily attributable to advanced payments for inventory for Del Medical
Systems under its exclusive distribution agreement for diagnostic medical image
enhancers, worker's compensation insurance policy premiums and costs incurred
relating to the acquisition of certain assets of the GENDEX Medical Division of
Dentsply International Inc.
Capital expenditures for the six months ended February 3, 1996 were
approximately $761,000. These expenditures were primarily for assembly and test
equipment for improved manufacturing efficiencies. Depreciation expense was
approximately $339,000 for the six months ended February 3, 1996 as compared to
approximately $388,000 for the six months ended January 28, 1995, because
certain classes of fixed assets have been fully depreciated. There were no
material open commitments for capital equipment expenditures at February 3,
1996. The funds for capital expenditure improvements were derived from
operations and short-term borrowing.
The Company's long-term debt at February 3, 1996 decreased
approximately $148,000 as compared to July 29, 1995. The decrease is due
primarily to collections of trade receivables during the period.
RESULTS OF OPERATIONS
Net sales for the three months ended February 3, 1996 were
approximately $9,329,000 compared to approximately $7,579,000, an increase of
approximately 23.1 percent over the corresponding period in the prior year. Net
sales for the six months ended February 3, 1996 were approximately $16,801,000
compared to approximately $13,715,000, an increase of approximately 22.5 percent
over the corresponding period in the prior year. These increases were due to
higher sales levels of products supplied by the Company to its customers
manufacturing end-user medical diagnostic and industrial products.
Cost of sales, as a percentage of net sales for the three months ended
February 3, 1996, was 59.5 percent compared to 56.5 percent for the prior
corresponding period. Cost of sales, as a percentage of net sales for the six
months ended February 3, 1996, was 58.0 percent compared to 54.7 percent for the
prior corresponding period. These changes were due to the change in product mix
in the periods.
Research and development expenses increased to approximately $789,000
for the three months ended February 3, 1996 from approximately $688,000 for the
three months ended January 28, 1995. Research and development expenses increased
to approximately $1,432,000 for the six months ended February 3, 1996 from
approximately $1,209,000 for the six months ended January 28, 1995. The Company
continues to invest in research and development in order to introduce new
state-of-the-art products for its medical and industrial markets.
10
<PAGE>
Selling, general and administrative expenses were approximately
$1,784,000 in the three months ended February 3, 1996 as compared to
approximately $1,578,000 in the same period in the prior year. Selling, general,
and administrative expenses increased to approximately $3,356,000 for the six
months ended February 3, 1996 from approximately $3,055,000 for the same period
in the prior year. These increases were primarily attributable to increased
selling expenses, advertising and commissions due to increased sales levels in
the respective periods.
Net interest expense was approximately $286,000 for the three months
ended February 3, 1996 compared to approximately $305,000 for the corresponding
prior period. This decrease was attributable to lower interest rates. Net
interest expense was approximately $595,000 for the six months ended February 3,
1996 compared to approximately $576,000 for the corresponding prior period. This
increase is due to higher average credit balances outstanding in the six months
ended February 3, 1996, partly offset by lower interest rates.
Income tax expense was 30.5 percent of pre-tax income in the six months
ended February 3, 1996 and the six months ended January 28, 1995. The decrease
from statuatory rates is primarily due to sales being made through the Company's
Foreign Sales Corporation, research and development and other tax credits.
Net income increased to approximately $633,000 for the three months
ended February 3, 1996, an increase of approximately 25.3 percent from $505,000
for the prior corresponding period. Net income per common share increased to
$.12 from $.10 even though the weighted number of common shares outstanding and
common share equivalents increased approximately 7.4 percent to 5,276,094 from
4,911,717. Net income increased to approximately $1,163,000 for the six months
ended February 3, 1996, an increase of approximately 21.6 percent from
approximately $956,000 for the prior corresponding period. For the six months
ended February 3, 1996 primary and fully diluted net income per share was $.23
as compared to $.19 for the six months ended January 28, 1995. the number of
outstanding shares and common share equivalents increased 4.8 percent from the
six month period ended January 28, 1995. The increases in net income for the
three and six months are primarily due to higher sales levels to its customers
manufacturing end-user medical diagnostic and industrial products.
The backlog of unshipped orders at February 3, 1996 was approximately
$21.0 million.
11
<PAGE>
PART II
Item 1. Legal Proceedings - None
Item 2. Changes in Securities - None
Item 3. Defaults on Senior Securities - None
Item 4. Submission to a Vote of Security Holders
At the annual meeting of stockholders of the Company held on
February 14, 1996, the stockholders:
(a) Elected the following directors: Natan V. Bertman,
Raymond Kaufman, David Michael, Seymour Rubin, James
Tiernan, Leonard A. Trugman.
<TABLE>
<CAPTION>
Election of Directors
---------------------
For Withheld
--- --------
<S> <C> <C>
L.A. Trugman ................................ 3,698,097 59,332
N.V. Bertman ................................ 3,703,838 53,591
R. Kaufman .................................. 3,703,246 54,183
D. Michael .................................. 3,715,254 42,175
S. Rubin .................................... 3,704,382 53,047
J. Tiernan .................................. 3,699,274 58,155
</TABLE>
(b) Approved the Company's name change to Del Global
Technologies Corp.
For Against Abstain
--- ------- -------
3,697,546 43,679 16,204
(c) Approved the proposal to amend the Company's
Non-qualified Stock Option Plan to increase by
250,000 the number of shares of common stock reserved
for issuance thereunder.
For Against Abstain Broker No Vote
--- ------- ------- --------------
2,089,426 313,647 57,347 1,297,009
Item 5. Other Information
(a) Exhibits:
Exhibit 11 - Computation of Earnings per Common Share
Exhibit 27 - Financial Data Schedule
(b) Report on Form 8-K:
As filed with Commission on March 21, 1996.
12
<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.
DEL GLOBAL TECHNOLOGIES CORP.
/S/LEONARD A. TRUGMAN
---------------------
Leonard A. Trugman
Chairman of the Board,
Chief Executive Officer
and President
/S/MICHAEL H. TABER
-------------------
Michael H. Taber
Vice President Finance and Secretary
Chief Accounting Officer
Dated: March 22, 1996
13
DEL GLOBAL TECHNOLOGIES CORP. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER COMMON SHARE
THREE AND SIX MONTHS ENDED FEBRUARY 3, 1996
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
Feb. 3, 1996 Feb. 3, 1996
------------ ------------
Fully Fully
Primary Diluted Primary Diluted
------- ------- ------- -------
<S> <C> <C> <C> <C>
Reconciliation of net income per
statement of income to amount
used in earnings per share computation:
Net Income .................................. $ 633,061 $ 633,061 $1,162,627 $1,162,627
Assumed reduction of -
Interest on short-term debt,
net of tax effect on
application of assumed
proceeds from exercise of
options subject to
limitations under the Modified
Treasury Stock method ................... 16,840 0 39,466 22,626
------ ---------- ------ ------
Net income, as adjusted ......................$ 649,901 $ 633,061 $1,202,093 $1,185,253
========== ========== ========== ==========
Reconciliation of weighted average
number of shares outstanding to
amount used in earnings per share
computation:
Weighted average number of shares
outstanding: .......................... 4,266,107 4,266,107 4,231,486 4,231,486
Add - shares issuable from assumed
exercise of options subject to
limitations under the Modified
Treasury Stock method ................... 1,000,202 1,009,987 1,015,794 1,020,687
--------- --------- --------- ---------
Weighted average number of shares
outstanding as adjusted ................. 5,266,309 5,276,094 5,247,280 5,252,173
========= ========= ========= =========
Net income per common share ..................$ .12 $ .12 $ .23 $ .23
========== ========== ========== ==========
</TABLE>
The Company utilized the Modified Treasury Stock method for computing net income
per common share. Under this method, the funds obtained by the assumed exercise
of all options and warrants were applied to repurchase common stock at the
average market price but limited to an amount of repurchased shares to not
greater than 20 percent of the then outstanding actual common shares. Any
assumed funds still available after the repurchase of 20 percent of outstanding
actual common shares were assumed to be utilized to reduce the existing
short-term debt. The adjustment to net income has been shown net of tax effect.
13
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000027748
<NAME> DEL GLOBAL TECHNOLOGIES CORP.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-03-1996
<PERIOD-START> JUL-30-1995
<PERIOD-END> FEB-03-1996
<EXCHANGE-RATE> 1.000
<CASH> 162,052
<SECURITIES> 497,790
<RECEIVABLES> 5,884,552
<ALLOWANCES> 159,431
<INVENTORY> 19,908,557
<CURRENT-ASSETS> 28,264,672
<PP&E> 11,825,543
<DEPRECIATION> 3,650,451
<TOTAL-ASSETS> 40,669,659
<CURRENT-LIABILITIES> 6,373,984
<BONDS> 0
0
0
<COMMON> 434,698
<OTHER-SE> 20,717,350
<TOTAL-LIABILITY-AND-EQUITY> 40,669,659
<SALES> 16,800,619
<TOTAL-REVENUES> 16,800,619
<CGS> 9,744,552
<TOTAL-COSTS> 9,744,552
<OTHER-EXPENSES> 4,788,011
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 595,211
<INCOME-PRETAX> 1,672,845
<INCOME-TAX> 510,218
<INCOME-CONTINUING> 1,162,627
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,162,627
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</TABLE>
