SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 30, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 0-8161
DIONICS, INC.
(Exact name of Small Business Issuer as Specified in its Charter)
Delaware 11-2166744
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Identification
Organization) Number)
65 Rushmore Street
Westbury, New York 11590
(Address of Principal Executive Offices)
(516) 997-7474
(Issuer's Telephone Number, Including Area Code)
Check whether the Issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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
State the number of shares outstanding of each of the Issuer's classes of
common equity, as of the latest practicable date:
Common, $.01 par value per share: 3,683,678
outstanding as of August 1, 1999
(excluding 164,544 treasury shares).
<PAGE>
PART I - FINANCIAL INFORMATION
DIONICS, INC.
Index to Financial Information
Period Ended June 30, 1999
Item Page Herein
Item 1 - Financial Statements:
Introductory Comments 3
Condensed Balance Sheet 4
Condensed Statement of Operations 6
Statement of Cash Flows 8
Notes to Financial Statements 9
Item 2 - Management's Discussion and
Analysis or Plan of Operation 14
<PAGE>
DIONICS, INC.
June 30, 1999
The financial information herein is unaudited. However, in the opinion of
management, such information reflects all adjustments (consisting only of
normal recurring accruals) necessary to a fair presentation of the results of
operations for the periods being reported. Additionally, it should be noted
that the accompanying condensed financial statements do not purport to be
complete disclosures in conformity with generally accepted accounting
principles.
The results of operations for the six months ended June 30, 1999 are not
necessarily indicative of the results of operations for the full fiscal year
ending December 31, 1999.
These condensed statements should be read in conjunction with the Company's
financial statements for the year ended December 31, 1998.
<PAGE>
DIONICS, INC.
BALANCE SHEETS
JUNE 30, DECEMBER 31,
1999 1998
(UNAUDITED) (UNAUDITED)
A S S E T S
CURRENT ASSETS:
Cash $ 524,000 $ 606,100
Accounts Receivable Trade
(Less Estimated Doubtful Accounts
of $10,000 in 1999 and $10,000 in
1998) - (Note 2) 364,100 262,100
Inventory - Notes 2 and 3 488,400 412,200
Prepaid Expenses and Other Current
Assets 33,000 29,000
Total Current Assets 1,409,500 1,309,400
PROPERTY, PLANT AND
EQUIPMENT - (Notes 2 and 4)
(At Cost Less Accumulated
Depreciation of $1,651,200
in 1999 and $1,647,800 in 1998) 53,000 48,400
DEPOSITS AND OTHER ASSETS -
(Notes 2 and 4) 51,200 52,500
Total $1,513,700 $1,410,300
<PAGE>
DIONICS, INC.
BALANCE SHEETS
JUNE 30, DECEMBER 31,
1999 1998
(UNAUDITED) (UNAUDITED)
L I A B I L I T I E S
CURRENT LIABILITIES:
Current Portion of Long-Term
Debt - (Note 5) $ 93,500 $ 70,500
Accounts Payable 88,900 37,700
Accrued Expenses 68,900 78,300
Deferred Compensation Payable -
Current (Note 4) 120,000 120,000
Total Current Liabilities 371,300 306,500
Deferred Compensation Payable -
(Note 4) Non Current 420,600 446,800
Long-Term Debt Less Current
Maturities - (Note 5) 718,200 765,500
Total Liabilities 1,510,100 1,518,800
CONTINGENCIES AND COMMENTS
SHAREHOLDERS' EQUITY
Common Shares - $.01 Par Value
Authorized 5,000,000 Shares
Issued 3,848,222 Shares in
1999 and 3,848,222 in 1998
(Note 6) 38,400 38,400
Additional Paid-in Capital 1,522,800 1,522,800
Accumulated (Deficit) (1,337,000) (1,449,100)
224,200 112,100
Less: Treasury Stock at Cost
164,544 Shares in 1999 and
164,544 Shares in 1998 (220,600) (220,600)
Total Shareholders'
Equity (Deficit) 3,600 (108,500)
Total $1,513,700 $1,410,300
<PAGE>
DIONICS, INC.
CONDENSED STATEMENT OF OPERATIONS
THREE MONTHS ENDED
JUNE 30,
1999 1998
(UNAUDITED) (UNAUDITED)
SALES $ 652,400 $ 560,600
COST AND EXPENSES:
Cost of Sales (Including Research
and Development Costs) 426,300 381,200
Selling, General and Administrative
Expenses 92,500 94,200
Total Costs and Expenses 518,800 475,400
NET INCOME FROM OPERATIONS 133,600 85,200
INTEREST AND OTHER INCOME 5,500 4,500
139,100 89,700
OTHER DEDUCTIONS:
Interest Expense 27,300 17,300
NET INCOME FOR THE PERIOD $ 111,800 $ 72,400
NET INCOME PER SHARE -
Basic $ .030 $ .020
Diluted $ .030 $ .019
Average Number of Shares
Outstanding Used in Computation
of Per Share Income -
Basic 3,683,678 3,677,159
Diluted 3,710,844 3,730,434
<PAGE>
DIONICS, INC.
CONDENSED STATEMENT OF OPERATIONS
SIX MONTHS ENDED
JUNE 30,
1999 1998
(UNAUDITED) (UNAUDITED)
SALES $1,005,200 $ 864,500
COST AND EXPENSES:
Cost of Sales (Including
Research and Development Costs) 673,500 609,100
Selling, General and Administrative
Expenses 186,300 181,500
Total Costs and Expenses 859,800 790,600
NET INCOME FROM OPERATIONS 145,400 73,900
INTEREST AND OTHER INCOME 11,300 8,900
156,700 82,800
OTHER DEDUCTIONS
Interest Expenses 44,600 34,600
NET INCOME FOR THE PERIOD $ 112,100 $ 48,200
NET INCOME PER SHARE -
Basic $ .030 $ .013
Diluted $ .030 $ .013
Average Number of Shares
Outstanding Used in Computation
of Per Share Income -
Basic 3,683,678 3,677,159
Diluted 3,709,793 3,729,402
<PAGE>
DIONICS, INC.
STATEMENT OF CASH FLOWS
SIX MONTHS ENDED
JUNE 30,
1999 1998
(UNAUDITED) (UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 112,100 $ 48,200
Adjustment to Reconcile
Net Income to Net Cash
Used for Operating Activities:
Depreciation and Amortization 3,400 3,700
Deferred Compensation
and Related Interest 33,800 31,900
Changes in Operating Assets
and Liabilities:
(Increase) in Accounts Receivable (102,000) (85,100)
(Increase) in Inventory (76,200) (82,300)
(Increase) Decrease in Prepaid
Expenses and Other Current Assets (4,000) 14,000
Decrease in Deposits and Other Assets 1,300 1,000
Increase in Accounts Payable 51,200 37,300
(Decrease) Increase
in Accrued Expenses (9,400) 22,600
Net Cash (Used In)
Provided by Operating Activities 10,200 (8,700)
CASH FLOWS (USED IN) FINANCING ACTIVITIES:
Repayment of Debt (24,300) (14,300)
CASH FLOWS (USED IN)
INVESTING ACTIVITIES:
Purchase of Treasury Shares -0- (3,000)
Purchase of Fixed Assets (8,000) -0-
Payments of Deferred Compensation (60,000) -0-
NET (DECREASE) IN CASH (82,100) (26,000)
CASH - Beginning of Period 606,100 473,400
CASH - End of Period $ 524,000 $ 447,400
<PAGE>
DIONICS, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
NOTE 1 - BUSINESS:
The Company designs, manufactures and sells silicon semi-conductor electronic
products, as individual discrete components, as multi-component integrated
circuits and as multi-component hybrid circuits.
The individual discrete components are predominantly transistors, diodes and
capacitors, intended for use in miniature circuit assemblies called "hybrid
micro-circuits".
Due to the rapidly changing needs of the marketplace, there are continual
shifts in popularity among the various chip components offered by the Company.
Taken as a whole, the category of discrete chip components for the hybrid
circuit industry is one of the three main classes of products offered by the
Company.
A second main class of products offered by the Company is encapsulated,
assembled, integrated circuits for use in electronic digital display functions.
The third main class of products offered by the Company is a range of hybrid
circuits that function as opto-isolated MOSFET drivers and custom Solid State
Relays.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Accounting
Assets, liabilities, revenues and expenses are recognized on the accrual basis
of accounting.
Cash and Cash Equivalents
The Company considers money market funds to be cash equivalents.
Merchandise Inventory
Inventory is stated at the lower of cost (which represents cost of materials
and manufacturing costs on a first-in, first-out basis) or market.
<PAGE>
DIONICS, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (Continued)
Property, Plant and Equipment
Property, Plant and Equipment is stated at cost less accumulated depreciation
and amortization. Expenditures for renewals and improvements that
significantly extend the useful life of assets are capitalized for all assets;
depreciation is provided over the estimated useful lives of the individual
asset, using the straight- line method. The following asset lives are in
effect:
Machine and Equipment 8 Years
Testing Equipment 8 Years
Furniture and Fixtures 10 Years
Building Improvements 10 Years
Building 25 Years
Deferred Compensation Plan
Future payments required under a plan of deferred compensation adopted in 1987,
and revised in 1998, as well as interest accrued thereon are being charged to
operations over the period of expected service.
Bad Debts
The Company maintains a constant allowance for doubtful accounts of $10,000.
Deferred Mortgage Costs
Costs related to the new Money Store Commercial Mortgage and prior costs
related to the paid off mortgage with D.A.N. Joint Venture are being amortized
as follows:
a) New Costs $35,800 360 Months Starting 1/l/1999
b) Unamortized Prior Cost 16,200 94 Months
$52,000
<PAGE>
DIONICS, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
NOTE 3 - INVENTORY:
Inventories are stated at the lower of cost (which represents cost of materials
and manufacturing costs on a first-in, first-out basis) or market, and are
comprised of the following:
June 30, December 31,
1999 1998
(Unaudited) (Unaudited)
Finished Goods $ 42,400 $ 35,800
Work-in-Process 306,400 258,600
Raw Materials 104,400 88,100
Manufacturing Supplies 35,200 29,700
Total $488,400 $412,200
NOTE 4 - DEFERRED COMPENSATION PAYABLE:
In 1987 the Company entered into an agreement, amended in 1997 and 1998, which
provides for a 72 month schedule of payments to its chief executive officer.
In connection with the refinancing of the Money Store Loan (see Note 5) a
modified deferred compensation payment schedule commencing January 1, 1999 was
agreed to by the Company and it's chief executive officer.
The Company executed a mortgage subordinate to the existing first mortgage (see
note 5) secured by land and building at 65 Rushmore Street, Westbury, New York
in favor of the chief executive officer to insure amounts due him on the
deferred compensation agreement.
A new 72 month schedule consists of a 24 month period of reduced consecutive
monthly payments, to be followed by an 18-month period of no payments except
for monthly interest. At the end of the 42{nd} month, the total of the delayed
payments becomes due followed by 30 months of principal and interest payments.
Notwithstanding the above schedule for payments, other than a life insurance
policy to cover death benefits, the Company has not specifically designated
funds with which to meet these payment requirements. In view of its continuing
total indebtedness as well as its need for operating capital, there can be no
assurance that the Company will be able to satisfy the terms of this new
agreement in full or in part. Should such unfavorable circumstances occur, the
terms of the agreement may have to again be renegotiated to better match the
Company's then-current financial circumstances. The previously mentioned Life
Insurance policy had a cash surrender value at December 31, 1998 of
approximately $4,000, which is included in other assets.
<PAGE>
DIONICS, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
NOTE 5 - LOANS PAYABLE -
First Mortgage Loan:
A new loan agreement was entered into between Dionics, Inc. and the Money Store
Commercial Mortgage Inc. effective 12/31/1998.
The loan in the principal amount of $384,685 requires 360 monthly self
liquidating payments. Interest is calculated on the unpaid principal balance
at an initial rate of 8.23% per annum. The interest rate on the loan is
variable depending on an independent index related to the yield of United
States Treasury Notes. This rate change will occur once every 60 months.
$358,232 of the above proceeds were used to satisfy the balance of the Mortgage
due D.A.N. Joint Venture in full.
Term Loans:
Term Loan A - Due D.A. N. Joint Venture.
Certain 1990 loans were replaced by a new term loan in the principal amount of
$283,850, (Term Loan A") structured over two five-year periods. During the
first five-year period ended 3/31/99, the Company paid interest only. During
the second five-year period commencing 4/1/99 the balance due will be repaid
over 60 equal monthly installments, plus interest at prime plus two percent on
the unpaid balance.
Term Loan C - Due D.A. N. Joint Venture.
Another Term Loan ("Term Loan C") stemming from the Original Mortgage has a
face amount of $167,500 and carries the same interest rate and payment terms
over two five-year periods as the new $283,850 Term Loan A described in the
Paragraph above.
In conjunction with the refinancing of the old mortgage D.A.N. Joint Venture
confirmed and acknowledged that the old mortgage note was paid in full, that
all accrued interest above the 2% stated rate and the principal and any accrued
interest on Term Loan C was forgiven, discharged and cancelled.
<PAGE>
DIONICS, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
NOTE 6 - STOCK OPTION PLAN
In September 1997, the Board of Directors of the Company adopted the 1997
Incentive Stock Option Plan (the "1997 Plan") for employees of the Company to
purchase up to 250,000 shares of common Stock of the Company. Options granted
under the 1997 plan are "incentive stock options" as defined in Section 422 of
the Internal Revenue Code. Any stock options granted under the 1997 Plan shall
be granted at no less than 100% of the fair market value of the Common Stock of
the Company at the time of the grant. As of December 31, 1998, options to
acquire 120,000 shares of Common Stock have been granted under the 1997 Plan.
All of such options were granted on September 11, 1997 and have an exercise
price of $.38 per share. As of June 30, 1999, 130,000 options were available
for future grant.
NOTE 7 - INCOME TAXES:
As of December 31, 1998 the Company had available a federal operating loss
carry forward of $584,500. This net operating loss originated in 1990 through
1992 and may be carried forward and expires as follows:
Year of Origin Amount Carry Forward
Expires In
1990 $285,700 2005
1991 65,600 2006
1992 233,200 2007
$584,500
<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation
A. LIQUIDITY AND CAPITAL RESOURCES
In 1996, after several years of gradually reducing its annual losses, the
Company finally crossed back to profitability; steady improvements followed in
1997 and 1998. In the First Quarter of 1999, in response to growing demand for
its products, and in order to overcome a tight local labor-supply, the Company
adopted a program of stronger production outsourcing. This modified approach,
however, was not without its own negative consequences, causing a much longer
pipeline filled with costly raw- and partly-processed materials, thus leading
to a sizable increase in the Company's Work-In-Process inventory. A further
negative consequence was the temporary delay in the shipment of finished
products, causing a lower First Quarter shipping level.
The Second Quarter of 1999 showed the benefits of the new outsourcing
strategy, with shipping volume up by 86 percent from the First Quarter, helping
the Company to reach Quarterly and First-Half Sales levels higher than any in
the last ten-years. Based on this new production plan, Sales for the Full-Year
1999 are also expected to reach near-term recent-year highs.
Also worth noting, the Company had successfully refinanced its real
estate mortgage loan in December 1998 and thus avoided the need to make a March
1999 $350,000 "balloon" payment on its previous mortgage loan. As a
requirement of the refinancing process, the Company's property also underwent
an independent appraisal that showed it to have a current market-value that is
$750,000 HIGHER than the heavily-depreciated value shown on the Company's
balance sheet. This suggests that the "true" Net Worth of the Company at June
30, 1999 is a STRONGLY positive $753,600 instead of the MARGINALLY positive
$3,600 arrived at by more conventional accounting methods.
During 1999 the Company will be facing certain new payment obligations
that will require substantial use of its Cash assets. (See Notes 4 and 5 in
the financial statement.) Commencing in April 1999 the Company entered the
second five-year period of its Bank Loan Agreement, and began the 60-month pay-
down of the prior amount of $451,350 in debts, plus interest. These payments
are in addition to the recently reduced monthly obligations of the Deferred
Compensation Agreement, which began on January 1, 1999. It is Management's
opinion that current cash reserves plus anticipated positive cash flow from
operations should permit the above obligations to be met.
The ratio of the Company's Total Current Assets to Total Current
Liabilities remains a healthy 3.80-to-1 at June 30, 1999, and Working Capital
also remains strong at a level of $1,038,200. Management has continued its
search for additional Working Capital to provide further growth momentum for
the Company. Contacts are always active with several potential lenders or
acquirors, and it is believed that continued improvements in the Company's
operating performance and balance sheet should enhance those efforts, although
no assurance of success can be given. For the immediate future, at least, the
Company is well able to support its current operations.
B. RESULTS OF OPERATIONS
Sales in the Second Quarter of 1999 rose 16.4 percent from the same
period last year, showing $652,400 in the current period versus $560,600 in the
Second Quarter of 1998. Because of the new strategy of strong outsourcing of
certain production operations, the Company was able to recover from the
temporarily-reduced $352,800 shipping level of the immediately preceding First
Quarter of 1999. Although requiring a larger Work-In-Process inventory, this
new approach is helping the Company deal more effectively with its large
backlog for photovoltaic (PV) Solid State Relays and MOSFET-drivers. One very
bright spot has been the growth in total order backlog from $900,000 at
December 31, 1998 to over $1.3 million at June 30, 1999.
Gross Profit rose to 34.6 percent in the Second Quarter of 1999 as
compared to 32 percent in the Second Quarter of 1998. Selling, General and
Administrative Expenses, remaining essentially unchanged in absolute dollar
amounts, fell as a percentage of Sales to 14.1 percent in the current period
versus 16.8 percent in the prior year's Second Quarter.
In the Second Quarter of 1999, the Company showed a Net Profit of
$111,800 as compared to a Net Profit of $72,400 in the same period last year,
an increase of 54.4 percent.
For the First Six-Months of 1999, the Company saw its Sales volume rise
16.3 percent, reaching $1,005,200 in the current period versus $864,500 in the
First Six-Months of 1998. The Gross Profit margin for the First Half of 1999
rose to 33 percent as compared to 29.5 percent in the First Half of 1998.
Selling, General & Administrative Expenses were largely unchanged, but dropped
on a percentage basis to 18.5 percent in the First Half of 1999 as compared to
21 percent in the same period last year.
For the First Six-Months of 1999 the Company showed a Net Profit of
$112,100 as compared to a Net Profit of $48,200 in the First Six-Months of
1998, an increase of 133 percent. This improvement largely reflects poor 1998
First Quarter results, coupled with increased Sales in the First-Half of 1999,
and comes in spite of a $10,000 increase in First-Half 1999 Interest Expenses
stemming from a new phase in the Company's debt repayment program.
Addressing the bigger, longer-term picture, the Company has made great
strides in dealing with its debt situation as well as its need for currently
profitable operations. Although the Company's performance was adversely
affected in the First Quarter by its new outsourcing strategy, the higher
shipping results of the Second Quarter proved the strategy to be a valid one.
Further benefits are expected to show in the future.
It is anticipated that there will be additional improvement in future
periods if the current trend of increasing orders continues for the Company's
photovoltaic Solid State Relays and MOSFET-drivers. The latter product shows
particular growth potential in the medical-electronics field, and the former
product continues to be strong in aircraft flight-controls. There is much
reason for optimism that Management's goals of continued increases in Sales and
Profits will be met. As always, risks of disappointment persist, but the
Company, having struggled back from the brink of failure several years ago, now
appears poised at the brink of success.
C. YEAR 2000 ISSUE
The Year 2000 issue is the result of computer programs having been written
using two digits, rather then four, to define the applicable year. Software
programs and hardware that have date-sensitive software or embedded chips may
recognize a date using "00" as the year 1900 rather than the year 2000. This
could result in a major system failure or miscalculations causing disruptions
of operations, including a temporary inability to engage in normal business
activities.
Based on recent assessments, the Company determined that its critical
software (primarily widely-used software packages) and all of its critical
business systems, including manufacturing instrumentation, are already year
2000 compliant. Nevertheless, throughout 1999, assessment, testing and
remediation, if necessary, will continue.
The Company is also actively working with critical suppliers of products
and services to determine that the suppliers' operations and the products and
services they provide are year 2000 compliant or to monitor their progress
toward year 2000 compliance. In this regard, the Company believes its greatest
year 2000 risk for disruption to its business is the potential noncompliance
of third parties. As a result, the Company has initiated communications with
third parties with whom the Company has material direct and indirect business
relationships. The Company is currently in the process of contacting third
parties in order to determine the extent to which the Company's business is
vulnerable to the third parties' failure to make their systems year 2000
compliant. To date, the Company is still continuing to gather information
from such other third parties.
The Company currently does not have a contingency plan in the event a
particular system, including the systems of material third parties, are not
year 2000 compliant. Such a plan will be developed if it becomes clear that
the Company is not going to achieve its scheduled compliance objectives.
Although no assurance can be given that there will be no interruption of
operations in the year 2000, the Company believes (and assuming that third
parties with whom the Company has material business relationships successfully
remediate their own year 2000 issues) that it has reasonably assessed all
of its systems in order to ensure that the Company will not suffer any material
adverse effect from the year 2000 issue.
The Company has used and will continue to use internal resources to
resolve its year 2000 issue. Costs incurred to date by the Company have not
been material and the Company currently expects that the total cost of these
programs will not exceed $20,000.
THE PRECEDING TEXT CONTAINS FORWARD-LOOKING STATEMENTS WHICH REFLECT
MANAGEMENT'S BEST JUDGMENT OF CURRENTLY AVAILABLE INFORMATION. SHOULD
CERTAIN ASSUMPTIONS FAIL TO MATERIALIZE, OR UNEXPECTED ADVERSE EVENTS
OCCUR, THE COMPANY MAY NOT REACH MANAGEMENT'S GOALS.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote
of Security-Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits. There are no exhibits applicable to this Form 10-
QSB.
(b) Reports on Form 8-K. Listed below are Current Reports on
Form 8-K filed by the Registrant during the fiscal quarter ended June 30,
1999:
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the
Registrant caused this Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DIONICS, INC.
(Registrant)
Dated: August 12, 1999 By:/s/Bernard Kravitz
Bernard Kravitz,
President
Dated: August 12, 1999 By:/s/Bernard Kravitz
Bernard Kravitz,
Principal Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM DIONICS, INC.'S QUARTERLY REPORT FOR THE QUARTER ENDED JUNE 30,
1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 524,000
<SECURITIES> 0
<RECEIVABLES> 364,100
<ALLOWANCES> 0
<INVENTORY> 488,400
<CURRENT-ASSETS> 1,409,500
<PP&E> 1,704,200
<DEPRECIATION> 1,651,200
<TOTAL-ASSETS> 1,513,700
<CURRENT-LIABILITIES> 371,300
<BONDS> 1,138,800
<COMMON> 38,400
0
0
<OTHER-SE> 1,522,800
<TOTAL-LIABILITY-AND-EQUITY> 1,513,700
<SALES> 1,005,200
<TOTAL-REVENUES> 1,005,200
<CGS> 673,500
<TOTAL-COSTS> 859,800
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 44,600
<INCOME-PRETAX> 112,100
<INCOME-TAX> 0
<INCOME-CONTINUING> 112,100
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 112,100
<EPS-BASIC> .03
<EPS-DILUTED> .03
</TABLE>
