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 March 31, 1998
Commission file number 1-9802
SYMBOL TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 11-2308681
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Symbol Plaza, Holtsville, NY 11742
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 516-738-2400
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
APPLICABLE ONLY TO CORPORATE ISSUERS:
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.
Class Outstanding at March 31, 1998 (1)
Common Stock, 58,981,944 shares
par value $0.01
(1) Reflects a three for two split of the Company's common stock
effected as a fifty percent stock dividend paid April 3,
1998 to shareholders of record as of March 17, 1998.
SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES
INDEX TO FORM 10-Q
PAGE
<TABLE>
<S> <C>
PART I. FINANCIAL INFORMATION
ITEM I. Financial Statements
Condensed Consolidated Balance Sheets at
March 31, 1998 and December 31, 1997 2
Condensed Consolidated Statements of Earnings
Three Months Ended March 31, 1998 and 1997 3
Condensed Consolidated Statements of Cash Flows
Three Months Ended March 31, 1998 and 1997 4
Notes to Condensed Consolidated Financial
Statements 5 - 7
ITEM 2.
Management's Discussion and Analysis of
Financial Condition and Results of Operations 8 - 10
PART II. OTHER INFORMATION 11 - 12
SIGNATURES 13
</TABLE>
SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except stock par value)
<TABLE>
March 31, December 31,
ASSETS 1998 1997 (1)
(Unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash and temporary investments $ 37,907 $ 59,970
Accounts receivable, less allowance for doubtful
accounts of $11,419 and $10,995, respectively 179,373 162,789
Inventories, net 140,593 128,155
Deferred income taxes 25,335 24,908
Other current assets 25,401 24,130
TOTAL CURRENT ASSETS 408,609 399,952
PROPERTY, PLANT AND EQUIPMENT, net of accumulated
depreciation and amortization of $76,566 and
$72,723 respectively 126,495 118,745
INTANGIBLE AND OTHER ASSETS, net of accumulated
amortization of $77,310 and $72,043,
respectively 161,652 160,493
$696,756 $679,190
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $118,021 $121,714
Current portion of long-term debt 10,493 10,384
Income taxes payable 9,891 13,580
Deferred revenue 14,417 12,428
TOTAL CURRENT LIABILITIES 152,822 158,106
LONG-TERM DEBT, less current maturities 33,837 40,301
OTHER LIABILITIES AND DEFERRED REVENUES 33,012 22,367
COMMON EQUITY PUT OPTIONS 4,674 4,674
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, par value $1.00; authorized
10,000 shares, none issued or outstanding - -
Common stock, par value $0.01; authorized
100,000 shares; issued 65,799 shares and
43,519 shares, respectively 658 435
Retained earnings 293,793 274,976
Other stockholders' equity 177,960 178,331
472,411 453,742
$696,756 $679,190
See notes to condensed consolidated financial statements
(1) The consolidated balance sheet as of December 31, 1997 has been taken
from the audited financial statements at that date and condensed.
</TABLE>
-2-
SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(All amounts in thousands, except per share data)
(Unaudited)
<TABLE>
Three Months Ended
March 31,
1998 1997
<S> <C> <C>
NET REVENUE $213,310 $178,271
COST OF REVENUE 116,837 96,299
AMORTIZATION OF SOFTWARE DEVELOPMENT COSTS 3,517 2,917
GROSS PROFIT 92,956 79,055
OPERATING EXPENSES:
Engineering 16,135 13,036
Selling, general and administrative 44,439 39,543
Amortization of excess of cost over
fair value of net assets acquired 1,261 1,138
61,835 53,717
EARNINGS FROM OPERATIONS 31,121 25,338
INTEREST EXPENSE, net (449) (822)
EARNINGS BEFORE PROVISION FOR
INCOME TAXES 30,672 24,516
PROVISION FOR INCOME TAXES 11,042 9,071
NET EARNINGS $ 19,630 $ 15,445
EARNINGS PER SHARE:
Basic $0.33 $0.26
Diluted $0.32 $0.25
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING:
Basic 58,820 58,905
Diluted 61,724 61,378
See notes to condensed consolidated financial statements
</TABLE>
-3-
SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(All amounts in thousands)
(Unaudited)
<TABLE>
Three Months Ended March 31,
1998 1997
<S> <C> <C>
Cash flows from operating activities:
Net earnings $19,630 $15,445
Adjustments to reconcile net earnings
to net cash provided by operating activities:
Depreciation and amortization of property,
plant and equipment 7,901 5,853
Other amortization 5,267 4,823
Provision for losses on accounts receivable 491 514
Changes in assets and liabilities net of
effects of acquisitions:
Accounts receivable (17,178) (10,265)
Inventories (12,466) 3,068
Prepaid expenses and other current assets (1,698) (2,326)
Intangible and other assets (5,258) 1,798
Accounts payable and accrued expenses (3,728) (7,962)
Other liabilities and deferred revenues 8,945 3,053
Net cash provided by operating activities 1,906 14,001
Cash flows from investing activities:
Expenditures for property, plant and
equipment (15,667) (5,524)
Acquisition of subsidiaries (1,168) (1,960)
Net cash used in investing activities (16,835) (7,484)
Cash flows from financing activities:
Proceeds from issuance of notes payable 160,815 12,650
Principal repayments of notes payable
and long-term debt (167,170) (19,000)
Exercise of stock options and warrants 9,170 14,107
Dividends (813) (798)
Purchase of treasury shares (8,345) (15,656)
Net cash used in financing activities (6,343) (8,697)
Effects of exchange rate changes on cash (791) (2,316)
Net decrease in cash and
temporary investments (22,063) (4,496)
Cash and temporary investments, beginning
of period 59,970 34,290
Cash and temporary investments, end of
period $37,907 $29,794
Supplemental disclosures of cash flow
information:
Cash paid during the period for:
Interest $ 848 $ 1,389
Income taxes $ 660 $ 1,351
See notes to condensed consolidated financial statements
</TABLE>
-4-
SYMBOL TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(All amounts in thousands, except per share data)
1. In the opinion of management, the accompanying unaudited condensed
consolidated financial statements include all necessary adjustments
(consisting of normal recurring accruals) and present fairly the
Company's financial position as of March 31, 1998, and the results
of its operations and its cash flows for the three months ended
March 31, 1998 and 1997, in conformity with generally accepted
accounting principles for interim financial information applied on
a consistent basis. The results of operations for the three months
ended March 31, 1998, are not necessarily indicative of the results
to be expected for the full year. For further information, refer
to the consolidated financial statements and footnotes thereto
included in the Company's annual report on Form 10-K for the year
ended December 31, 1997.
2. Basic earnings per share are based on the weighted average number
of shares of common stock outstanding during the period. Diluted
earnings per share are based on the weighted average number of
shares of common stock and common stock equivalents (options and
warrants) outstanding during the period, computed in accordance
with the treasury stock method.
On February 9, 1998 the Board of Directors approved a three for two
split of the Company's common stock to be effected as a 50 percent
stock dividend and a $0.02 per share (pre split basis) semi-annual
cash dividend both of which were payable on April 3, 1998 to
shareholders of record on March 17, 1998. In this report, all
earnings per share amounts and the weighted average number of
common shares outstanding have been retroactively restated to
reflect the stock split. In addition the number of common shares
issued have been adjusted to reflect the stock split, an amount
equal to the par value of the additional shares issued has been
transferred from additional paid in capital to common stock and the
cash dividend has been recorded as an adjustment to retained
earnings as of March 31, 1998.
3. Classification of inventories is:
<TABLE>
March 31, 1998 December 31, 1997
(Unaudited)
<S> <C> <C>
Raw materials $ 61,708 $ 57,872
Work-in-process 17,124 14,039
Finished goods 61,761 56,244
$140,593 $128,155
</TABLE>
4. Effective January 1, 1998 the Company has adopted Financial
Accounting Standards No. 130 "Reporting Comprehensive Income" which
requires that all items that are required to be recognized under
accounting standards as components of comprehensive income be
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reported in the financial statements. Prior periods will be
reclassified, as required. The Company's total Comprehensive
earnings were as follows:
<TABLE>
Three Months Ended
March 31,
1998 1997
<S> <C> <C>
Net earnings $ 19,630 $ 15,445
Other comprehensive earnings(losses),
net of tax:
Change in equity due to foreign
currency translation adjustments (973) (3,705)
Comprehensive earnings $ 18,657 $ 11,740
</TABLE>
5. The Company is currently involved in matters of litigation arising
from the normal course of business. Management is of the opinion
that such litigation will not have a material adverse effect on the
Company's consolidated financial position or results of operations.
On April 1, 1996, PSC Inc. ("PSC") commenced suit against the
Company in Federal District Court for the Western District of New
York, purporting to assert claims against the Company for alleged
violations of the federal antitrust laws, unfair competition and
also seeking a declaratory judgment of non-infringement and
invalidity as to certain of the Company's patents. PSC has served
a Third Amended Complaint, which purports to assert essentially the
same antitrust and unfair competition claims against the Company,
and also seeks a declaratory judgment of alleged non-infringement
and validity of nine of the Company's patents, and a declaratory
judgment that PSC has not breached its two license agreements with
the Company and that those agreements have been terminated. The
Company has amended its suit against PSC to assert infringement of
four Symbol patents, breach of contract and fraud. The Company is
also seeking damages of which now exceed $10,000,000 plus interest
on unpaid royalties since the second quarter of 1996.
The Company had also sued Data General Corporation ("Data
General"), a manufacturer of portable integrated scanning terminals
which incorporate scan engines from PSC, for infringement of the
same four patents and five additional patents. The nine patents
asserted against Data General are the same nine Symbol patents as
to which PSC is seeking declaratory relief.
On October 9, 1996, the Court granted the Company's motion to sever
and stay PSC's antitrust, unfair competition and related claims.
On the same day, the Court denied Data General's motion to stay the
Company's claims against it.
The Court also set a one week trial (a "Markman" hearing) for July
14, 1997, to construe the claims in all nine patents asserted by
Symbol against Data General and PSC. On May 8, 1997, the Court
postponed the "Markman" hearing and in the interest of judicial
economy, the Court also stayed discovery on the patent claims until
a non-judicial arbitration which PSC had initiated on March 10,
1997 was completed. The arbitration involved an interpretation of
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certain provisions of 1985 and 1995 license agreements between the
Company and Spectra-Physics Scanning Systems, Inc. (which had been
acquired by PSC) concerning whether purchasers of PSC's scan
engines were free to incorporate these scan engines into their
integrated scanning terminals without any royalty payment to Symbol
beyond that paid by PSC on the scan engine itself. The arbitration
was heard on July 22-24, 1997. On December 29, 1997, the
Arbitrator rendered his decision in favor of the Company and
against PSC. The Arbitrator ruled that the sale of PSC's scan
engines passed no immunity to PSC's customers under Symbol patents
covering the integration of the scan engine into integrated
scanning terminals. The Arbitrator's decision has been confirmed
by the Court.
The Company requested that the Court lift the stay it entered in
the litigation, to permit the Company to seek a ruling that the
Company's agreements with PSC, which PSC argues have been
terminated and under which it has ceased paying royalties for more
than two years, remain in full force and effect and require royalty
payments to be made to the Company pursuant to those agreements.
PSC initially objected to the Company's request and asked the Court
that it continue to hold the contract issues in abeyance and
instead lift the stay with respect to the pending patent issues and
that discovery in these claims be reopened. On April 3, 1998 the
court, with the consent of the parties lifted the stay with respect
to the contract issues and rescheduled a trial on this aspect of
the litigation which is currently scheduled to commence on October
13, 1998.
6. During April 1997, the Company issued common equity put options on
225,000 shares of its common stock which are exercisable for a
period of one year from the date of issuance and give independent
parties the right to sell such shares to the Company at a strike
price of $20.775 per share. The balance of the common equity put
option account as of March 31, 1998 and December 31, 1997,
represents the amount the Company would be obligated to pay if all
unexpired put options were exercised relating to unexpired
transactions outstanding as of the respective balance sheet dates.
On April 9, 1998 the obligation associated with the common equity
put options expired. As a result the balance in the common equity
put option account of $4,674,000 will be reclassified to additional
paid in capital in April 1998.
-7-
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Results of Operations
Net revenue of $213,310,000 for the three months ended March 31,
1998 increased 19.7 percent over the comparable prior year period
primarily due to increased sales of worldwide scanner products and
North America hand-held computer systems. Foreign exchange rate
fluctuations unfavorably impacted the growth in net revenue by
approximately 2.0 percentage points for the three months ended March
31, 1998 and 1.0 percentage point for the three months ended March
31, 1997, respectively, due to a stronger U.S. dollar.
Geographically, North America revenue increased 29.1 percent and
International revenue increased 7.7 percent, respectively, over the
prior year. North America and International revenue continue to
represent approximately three-fifths and two-fifths of net revenue,
respectively.
Cost of revenue (as a percentage of revenue) of 54.8 percent for
the three months ended March 31, 1998 increased from 54.0 percent for
the three months ended March 31, 1997. This increase is principally
due to the unfavorable impact of foreign exchange rate fluctuations on
net revenue previously described. The Company anticipates an increase
in the cost of revenue (as a percentage of net revenue), in the
subsequent quarters of 1998, due to the roll out of its contract
related to the United States Postal Service which represents a lower
margin order relative to historical orders. This is the largest
contract in the Company's history and represents over $100,000,000 of
revenue. In the first quarter of 1998, the U.S. dollar continued to
appreciate from year end 1997 levels. Even if there is no further
change in foreign exchange rates, the comparison of 1998 to 1997 cost
of revenue (as a percentage of net revenue) will be adversely
effected, particularly in the first half of the year. The Company
anticipates that this combination of factors will have an adverse
impact on the 1998 to 1997 comparison of cost of revenue (as a
percentage of net revenue).
Amortization of software development costs of $3,517,000 for the
three months ended March 31, 1998 increased from $2,917,000 for the
three months ended March 31, 1997 due to new product releases.
Engineering costs for the three months ended March 31, 1998
increased to $16,135,000 from $13,036,000 for the three months ended
March 31, 1997. As a percentage of net revenue engineering expenses
increased to 7.6 percent from 7.3 percent in the prior year period.
Engineering expenses increased from the prior year period due to
additional expenses incurred in connection with the continuing
research and development of new products and the improvement of
existing products partially offset by increased capitalized costs
incurred for internally developed product software where economic and
technological feasibility has been established.
-8-
Selling, general and administrative expenses of $44,439,000 for
the three months ended March 31, 1998 increased from $39,543,000 for
the three months ended March 31, 1997. While in absolute dollars,
selling, general and administrative expenses increased 12.4 percent
from the prior year period, as a percentage of revenue such expenses
were reduced to 20.8 percent for the three months ended March 31,
1998, from 22.2 percent in 1997 due to on going cost containment
programs. The increase in absolute dollars reflects expenses
incurred to support a higher revenue base and additional expenses
incurred due to two subsidiaries acquired subsequent to March 31,
1997.
Amortization of excess of cost over fair value of net assets
acquired of $1,261,000 for the three months ended March 31, 1998
increased from $1,138,000 for the three months ended March 31, 1997
due to the acquisitions referred to above.
Net interest expense decreased to $449,000 for the three months
ended March 31, 1998 from $822,000 for the three months ended March
31, 1997 due to a reduction in interest expense due to annual
mandatory repayments of indebtedness and increased interest income
resulting from an increase in temporary investments versus the prior
year period.
The Company's effective tax rate of 36.0 percent for the three
months ended March 31, 1998 decreased from 37.0 percent in the prior
year primarily due to a decrease in the incremental foreign income
tax expense.
Liquidity and Capital Resources
The Company utilizes a number of measures of liquidity including
the following:
<TABLE>
March 31, December 31,
1998 1997
<S> <C> <C>
Working Capital (in thousands) $255,787 $241,846
Current Ratio (Current Assets
to Current Liabilities) 2.7:1 2.5:1
Long-Term Debt to Capital 6.7% 8.1%
(Long-term debt to long-term
debt plus equity)
</TABLE>
Current assets increased by $8,657,000 from December 31, 1997
principally due to an increase in accounts receivable as a result of the
increase in net revenue and an increase in inventories due to the
increased operating levels, partially offset by the decrease in cash.
Current liabilities decreased $5,284,000 from December 31, 1997
primarily due to a decrease in accounts payable and accrued expenses and
a decrease in income taxes payable resulting from a reclassification of
deferred taxes payable to long term liabilities.
-9-
The aforementioned activity resulted in a working capital increase
of $13,941,000 for the three months ended March 31, 1998. The Company's
current ratio at March 31, 1998 increased to 2.7:1 compared with 2.5:1
as of December 31, 1997.
Property, plant and equipment expenditures for the three months
ended March 31, 1998 totalled $15,667,000 compared to $5,524,000 for the
three months ended March 31, 1997. In the fourth quarter of 1997 the
Company entered into a construction commitment to expand its existing
Worldwide Headquarters facility, located in Holtsville, New York, by
approximately 125,000 square feet. The project cost, including
furniture, fixtures and equipment, is estimated at approximately
$20,000,000 and is anticipated to be completed in March 1999. In
addition, the Company continues to make capital investments in major
systems and networks conversions. Excluding the preceding the Company
does not have any other material commitments for capital expenditures.
The Company's long-term debt to capital ratio decreased to 6.7
percent at March 31, 1998 from 8.1 percent at December 31, 1997
primarily due to increased equity from results of profitable operations
and payment of the annual installment of the Company's 7.76 percent
Series A and B Senior Notes.
The Company has loan agreements with three banks pursuant to which
the banks have agreed to provide lines of credit totalling $75,000,000.
As of March 31, 1998, the Company had no outstanding borrowings under
these lines. These agreements expire between June 30, 1998 and December
31, 1998.
The Company generated $1,906,000 positive cash flow from operations
for the three months ended March 31, 1998, but experienced an overall
decrease in cash of $22,063,000 for the period. The positive cash flow
provided by operations was offset by cash used in investing and
financing activities during the period. Cash was used for the purchase
of 269,000 shares (adjusted to effect the 1998 stock split) of the
Company's common stock, the note repayments described above and
expenditures for property, plant and equipment. The purchases of common
stock include both shares purchased from officers related to the
exercise of stock options and shares purchased in open market
transactions. These purchases were partially offset by cash flow
generated from and tax benefits associated with the exercise of stock
options.
The Company believes that it has adequate liquidity to meet its
current and anticipated needs from working capital, results of its
operations, and existing credit facilities.
-10-
Part II - Other Information
Item 1. Legal Proceedings
On April 1, 1996, PSC Inc. ("PSC") commenced suit against
the Company in Federal District court for the Western District of
New York, purporting to assert claims against the Company for
alleged violations of the federal antitrust laws, unfair
competition and also seeking a declaratory judgment of non-
infringement and invalidity as to certain of the Company's
patents. PSC has served a Third Amended Complaint, which
purports to assert essentially the same antitrust and unfair
competition claims against the Company, and also seek a
declaratory judgment of alleged non-infringement and invalidity
of nine of the Company's patents, and a declaratory judgment that
PSC has not breached its two license agreements with the Company
and that those agreements have been terminated. The Company has
amended its suit against PSC to assert infringement of four
Symbol patents, breach of contract and fraud. The Company had
also sued Data General Corporation ("Data General"), a
manufacturer of portable integrated scanning terminals which
incorporate scan engines from PSC, for infringement of the same
four patents and five additional patents. The nine patents
asserted against Data General are the same nine Symbol patents as
to which PSC is seeking declaratory relief.
On October 9, 1996, the Court granted the Company's motion,
to sever and stay PSC's antitrust, unfair competition and related
claims. On the same day, the Court denied Data General's motion
to stay the Company's claims against it. The Court also set a one
week trial (a "Markman" hearing) for July 14, 1997, to construe
the claims in all nine patents asserted by Symbol against Data
General and PSC. On May 8, 1997, the Court postponed the
"Markman" hearing and in the interest of judicial economy, the
Court also stayed discovery on the patent claims until a non-
judicial arbitration which PSC had initiated on March 10, 1997
was completed. The arbitration involved an interpretation of
certain provisions of 1985 and 1995 license agreements between
the Company and Spectra Physics Scanning Systems, Inc. (which had
been acquired by PSC) concerning whether purchasers of PSC's scan
engines were free to incorporate such scan engines into their
integrated scanning terminals without any royalty payment to the
Company beyond that paid by PSC on the scan engine itself. The
arbitration was heard on July 22-24, 1997. On December 29, 1997,
the Arbitrator rendered his decision in favor of the Company and
against PSC. The Arbitrator ruled that the sale of PSC's scan
-11-
engines passed no immunity to PSC's customers under Symbol
patents covering the integration of the scan engine into
integrated scanning terminals. The Arbitrator's decision has
been confirmed by the Court.
By letter dated January 22, 1998, the Company requested that
the Court lift the stay it entered in the litigation, to permit
the Company to seek a ruling that the Company's agreements with
PSC, which PSC argues have been terminated and under which it has
ceased paying royalties for more than two years, remain in full
force and effect and require royalty payments to be made to the
Company pursuant to those agreements. PSC initially objected to
the Company's request and asked the Court that it continue to
hold the contract issues in abeyance and instead lift the stay
with respect to the pending patent issues and that discovery in
these claims be reopened. On April 3, 1998 the Court, with the
consent of the parties, lifted the stay previously in effect with
respect to the contractual issues in the litigation and ordered
that a trial on these issues be held commencing on October 13,
1998. If the Company succeeds in the contract action, it
believes it is entitled to receive damages in excess of
$10,000,000 plus interest in unpaid royalties since the second
quarter of 1996 and that it will be owed, on an ongoing basis,
additional royalties in excess of $5,000,000 per annum. If the
Company does not prevail in the action, it will continue to
receive royalty payments from PSC at the same rate and on the
same products as it currently is receiving them.
-12-
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.
SYMBOL TECHNOLOGIES, INC.
<TABLE>
<S> <C>
Dated: April 20, 1998 By: /s/ Jerome Swartz
Jerome Swartz, Chairman and
Chief Executive Officer
Dated: April 20, 1998 By: /s/ Kenneth V. Jaeggi
Kenneth V. Jaeggi
Senior Vice President -
Chief Financial Officer
</TABLE>
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 37,907,000
<SECURITIES> 0
<RECEIVABLES> 190,792,000
<ALLOWANCES> (11,419,000)
<INVENTORY> 140,593,000
<CURRENT-ASSETS> 408,609,000
<PP&E> 203,061,000
<DEPRECIATION> (76,566,000)
<TOTAL-ASSETS> 696,756,000
<CURRENT-LIABILITIES> 152,822,000
<BONDS> 33,837,000
0
0
<COMMON> 658,000
<OTHER-SE> 471,753,000
<TOTAL-LIABILITY-AND-EQUITY> 696,756,000
<SALES> 213,310,000
<TOTAL-REVENUES> 213,310,000
<CGS> 116,837,000
<TOTAL-COSTS> 120,354,000
<OTHER-EXPENSES> 61,835,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (449,000)
<INCOME-PRETAX> 30,672,000
<INCOME-TAX> 11,042,000
<INCOME-CONTINUING> 19,630,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 19,630,000
<EPS-PRIMARY> .33
<EPS-DILUTED> .32
</TABLE>
