U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the transition period from _____ to _____
Commission File Number 0-16376
TIMBERLINE SOFTWARE CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Oregon 93-0748489
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
15195 N.W. Greenbrier Parkway, Beaverton, Oregon 97006-5701
-----------------------------------------------------------
(Address of principal executive offices) (Zip code)
(503) 690-6775
----------------------------------------------------
(Registrant's telephone number, including area code)
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 [ ]
At May 10, 2000, 12,865,737 shares of common stock of the registrant were
outstanding.
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TIMBERLINE SOFTWARE CORPORATION
FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000
TABLE OF CONTENTS
- ------------------------------------------------------------------------------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed balance sheets, March 31, 2000 and
December 31, 1999 ............................... 3
Condensed statements of operations for the three
months ended March 31, 2000 and 1999............. 4
Condensed statements of cash flows for the three
months ended March 31, 2000 and 1999............. 5
Notes to condensed financial statements ........... 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations .................... 9
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K ...................... 16
SIGNATURES ..................................................... 16
EXHIBIT INDEX .................................................. 17
2
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PART I. Financial Information
Item 1. Financial Statements
TIMBERLINE SOFTWARE CORPORATION
CONDENSED BALANCE SHEETS
MARCH 31, 2000 (Unaudited) AND DECEMBER 31, 1999
(Amounts in thousands)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
----------- -----------
<S> <C> <C>
ASSETS
- ------
Current assets:
Cash and cash equivalents $ 8,362 $ 7,642
Temporary investments 11,736 12,738
Accounts receivable, less allowance
for doubtful accounts
(March 31, 2000, $143;
December 31, 1999, $143) 4,416 5,025
Inventories 228 221
Other current assets 1,875 1,501
----------- -----------
Total current assets 26,617 27,127
----------- -----------
Property and equipment 25,354 24,709
Less accumulated depreciation
and amortization 6,725 6,364
----------- -----------
Property and equipment - net 18,629 18,345
----------- -----------
Capitalized software costs - net 2,676 2,188
Purchased software - net 3,126 2,602
Other assets 89 85
----------- -----------
Total $51,137 $50,347
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Accounts payable $ 1,041 $ 864
Deferred revenues 14,874 13,725
Accrued employee expenses 1,346 2,184
Income taxes payable 313 467
Other current liabilities 923 1,185
----------- -----------
Total current liabilities 18,497 18,425
----------- -----------
Accrued rent expense 30 30
Deferred income taxes 1,911 1,725
Shareholders' equity:
Common stock, without par value
authorized, 20,000 shares;
issued - March 31, 2000, 12,838
shares; December 31, 1999,
12,822 shares 385 385
Additional paid in capital 5,515 5,405
Accumulated other comprehensive
loss (83) (70)
Retained earnings 24,882 24,447
----------- -----------
Total shareholders' equity 30,699 30,167
----------- -----------
Total $51,137 $50,347
=========== ===========
See notes to condensed financial statements.
</TABLE>
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TIMBERLINE SOFTWARE CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (Unaudited)
(Amounts in thousands, except per share data)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999
---------- ----------
<S> <C> <C>
Net revenue:
Software license fees $ 5,550 $ 7,472
Service fees 6,475 5,500
Other 315 369
---------- ----------
Net revenue 12,340 13,341
---------- ----------
Cost and expenses:
Cost of revenue 1,185 1,128
Client services 3,104 2,452
Product development 3,118 2,464
Sales and marketing 2,077 2,406
General and administrative 1,629 1,327
---------- ----------
Total cost and expenses 11,113 9,777
---------- ----------
Operating income 1,227 3,564
Other income 289 91
---------- ----------
Income before income taxes 1,516 3,655
Provision for income taxes 568 1,425
---------- ----------
Net income $ 948 $ 2,230
========== ==========
Earnings per share:
Basic $ 0.07 $ 0.18
Diluted 0.07 0.17
See notes to condensed financial statements.
</TABLE>
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TIMBERLINE SOFTWARE CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (Unaudited)
(Amounts in thousands)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
2000 1999
---------- ----------
<S> <C> <C>
Net cash provided by
operating activities $ 2,145 $ 3,635
---------- ----------
Cash flows from investing
activities:
Payments for property,
equipment and purchased software (1,378) (606)
Capitalized software costs (633) (1,080)
Proceeds from investments 989 1,805
Other 1 2
---------- ----------
Net cash provided by (used in)
investing activities (1,021) 121
---------- ----------
Cash flows from financing
activities:
Long-term debt payments - (5,500)
Proceeds from issuance of
common stock 109 289
Dividends paid (513) (378)
---------- ----------
Net cash used in financing
activities (404) (5,589)
---------- ----------
Net increase (decrease) in cash
and cash equivalents 720 (1,833)
Cash and cash equivalents,
beginning of the period 7,642 10,193
---------- ----------
Cash and cash equivalents,
end of the period $ 8,362 $ 8,360
========== ==========
Supplemental information:
Cash paid during the period for
income taxes $ 494 $ 396
========== ==========
See notes to condensed financial statements.
</TABLE>
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TIMBERLINE SOFTWARE CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2000 AND 1999 (Unaudited)
(Amounts in thousands)
1. Condensed financial statements
Certain information and note disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been omitted from these condensed financial statements.
These condensed financial statements should be read in conjunction with
the financial statements and notes thereto included in the Company's Form
10-K for the year ended December 31, 1999. The balance sheet at December
31, 1999 has been condensed from the audited balance sheet as of that
date. The results of operations for the three month periods ended March
31, 2000 and 1999 are not necessarily indicative of the operating results
for the full year.
In the opinion of management, all adjustments, consisting of normal
recurring adjustments, have been made to present fairly the Company's
financial position at March 31, 2000 and the results of its operations
and its cash flows for the three month periods ended March 31, 2000 and
1999.
2. Earnings per share
A reconciliation of the common shares used in the denominator for
computing basic and diluted earnings per share for the three month
periods ended March 31, 2000 and 1999 is as follows:
Three Months Ended
March 31,
------------------
2000 1999
------- -------
Weighted-average shares outstanding,
used in computing basic earnings
per share 12,829 12,591
Effect of dilutive stock options 360 406
------- -------
Weighted-average shares outstanding,
used in computing diluted earnings
per share 13,189 12,997
======= =======
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NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2000 AND 1999
(Unaudited)(Continued)
(Amounts in thousands)
3. Comprehensive income
Statements of comprehensive income for the three month periods ended
March 31, 2000 and 1999 are not presented because the difference between
net income and comprehensive income is not material. The only difference
between the Company's net income and comprehensive income relates to the
change in the unrealized net gain (loss) on temporary investments. For
the three months ended March 31, 2000 and 1999, net income would have
been reduced by $13 and $6, respectively, to arrive at comprehensive
income of $935 and $2,224, respectively, due to the change in the
unrealized net loss on temporary investments.
4. Operating segment information
The Company's operations are divided into two operating segments:
software products and software services. The Company evaluates its
performance in each segment based on its operating contribution, which
includes revenue, cost and expenses that can be specifically identified
within each segment. Product development and general and administrative
expenses are not allocated to the segments for determining its operating
contribution because such an allocation would be based on subjective
factors. Information about each operating segment and a reconciliation of
operating contribution to operating income for the three month periods
ended March 31, 2000 and 1999 is as follows:
Three Months Ended
March 31,
------------------
2000 1999
------- -------
Net revenue:
Software products $ 5,550 $ 7,472
Services 6,475 5,500
Other 315 369
------- -------
Net revenue $12,340 $13,341
======= =======
7
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TIMBERLINE SOFTWARE CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2000 AND 1999
(Unaudited)(Continued)
(Amounts in thousands)
Three Months Ended
March 31,
------------------
2000 1999
------- -------
Operating Contribution:
Software products $ 3,191 $ 4,875
Services 2,529 2,152
Other revenue, net of cost 254 328
Product development expenses (3,118) (2,464)
General and administrative expenses (1,629) (1,327)
------- -------
Operating income $ 1,227 $ 3,564
======= =======
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Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
TIMBERLINE SOFTWARE CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
(Amounts in thousands, except percentages and per share data)
- ------------------------------------------------------------------------------
Forward-Looking Statements
- --------------------------
This Report includes forward-looking statements. The words or phrases
"anticipates," "believes," "expects," "intends," "will continue," "estimates,"
"plans," "projects," or similar expressions are intended to identify
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995.
The Company's forward-looking statements are subject to certain risks, trends,
and uncertainties that could cause actual results to vary materially from
anticipated results, including, without limitation, delays in new product
releases, delays in acceptance of the Company's products in the marketplace,
failures by the Company's outside vendors to perform as promised, changes in
the software operating systems for which the Company's products are written,
increased competition, and changes in general market conditions. These factors
are discussed in further detail below under "Risks and Uncertainties." Should
any one or more of these risks or uncertainties materialize, or should any
underlying assumptions prove incorrect, actual results may vary materially
from those discussed herein as expected, believed, estimated, intended or
anticipated. The Company undertakes no obligation to revise or publicly
release the results of any revision to these forward-looking statements.
Results of Operations
- ---------------------
The Company's results of operations for the three month periods ended March
31, 2000 and 1999 and the changes on a period over period comparison are set
forth below:
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Three Months Ended
March 31, %
------------------- Increase Increase
2000 1999 (Decrease) (Decrease)
- --------------------------------------------------------------------------
Net revenue:
Software license fees $ 5,550 $ 7,472 $(1,922) (25.7)
Service fees 6,475 5,500 975 17.7
Other 315 369 (54) (14.6)
- --------------------------------------------------------------------------
Net revenue 12,340 13,341 (1,001) (7.5)
- --------------------------------------------------------------------------
Cost and expenses:
Cost of revenue 1,185 1,128 57 5.1
Client services 3,104 2,452 652 26.6
Product development 3,118 2,464 654 26.5
Sales and marketing 2,077 2,406 (329) (13.7)
General and administrative 1,629 1,327 302 22.8
- --------------------------------------------------------------------------
Total cost and expenses 11,113 9,777 1,336 13.7
- --------------------------------------------------------------------------
Operating income 1,227 3,564 (2,337) (65.6)
Other income 289 91 198 217.6
- --------------------------------------------------------------------------
Income before income taxes 1,516 3,655 (2,139) (58.5)
Provision for income taxes 568 1,425 (857) (60.1)
- --------------------------------------------------------------------------
Net income $ 948 $ 2,230 $(1,282) (57.5)
==========================================================================
The following table presents the Company's operating statement data expressed
as a percentage of net revenue for the three months ended March 31, 2000 and
1999:
Three Months Ended
March 31,
------------------
2000 1999
- -------------------------------------------------
Net revenue:
Software license fees 45.0 56.0
Service fees 52.4 41.2
Other 2.6 2.8
- -------------------------------------------------
Net revenue 100.0 100.0
- -------------------------------------------------
Cost and expenses:
Cost of revenue 9.6 8.5
Client services 25.2 18.4
Product development 25.3 18.5
Sales and marketing 16.8 18.0
General and administrative 13.2 9.9
- -------------------------------------------------
Total cost and expenses 90.1 73.3
- -------------------------------------------------
Operating income 9.9 26.7
Other income 2.4 0.7
- -------------------------------------------------
Income before income taxes 12.3 27.4
Provision for income taxes 4.6 10.7
- -------------------------------------------------
Net income 7.7 16.7
=================================================
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NET REVENUE. Net revenue for the quarter ended March 31, 2000 decreased
compared to the same period last year, primarily due to a decline in software
license revenue. Software license fees from the Company's Accounting products,
which comprised 68 percent of the Company's total software license fees for
the three months ended March 31, 2000, decreased 21 percent compared to the
same period in 1999. The Company believes the following factors contributed to
this decline:
- - There was a general consensus by market research firms and industry
experts that there would be a significant, continuing demand well into
the year 2000 by construction companies needing to upgrade their computer
software because of the Y2K issue. So far this year, the Company has not
seen any significant business related to Y2K.
- - The Company experienced a significant slowdown in sales leads at the end
of 1999 due to construction companies focusing on their internal
operations in preparation for the upcoming new millennium.
- - The Company had targeted the specialty contractor segment of the
construction industry as a primary focus for future growth. However,
because of delays in introducing new products needed for this market
segment, the Company has not been able to begin penetration as quickly as
it had anticipated.
Estimating software license fees, which accounted for 32 percent of the
Company's total software license fees for the three months ended March 31,
2000, decreased 34 percent compared to the same period in 1999. The decrease
was due to the largest, single software order in the Company's history during
the first quarter of 1999 for which there was no comparable order in 2000.
Excluding this order from last year, estimating software revenue increased
over 20 percent.
Service fee revenue increased, primarily due to an increase in revenue from
maintenance and support plans. Revenue from these service plans, which
accounted for more than 80 percent of total service fees for the quarter ended
March 31, 2000, increased 27 percent over the same period last year. This
increase was primarily due to the increase in the Company's user base through
new software orders during 1999, and an increase in the percentage of users
renewing their annual service plans. Also contributing to the overall increase
in service fee revenue, consulting revenue increased nine percent over the
same period last year. These increases were partially offset by a 36 percent
decline in training revenue, primarily due to the decrease in new software
orders.
COST OF REVENUE. Cost of revenue as a percentage of net revenue, increased
slightly for the three months ended March 31, 2000, over the same period in
1999. This was primarily due to higher royalty costs associated with software
revenue.
OPERATING EXPENSES. Operating expenses increased 15 percent for the three
months ended March 31, 2000, over the same period last year.
Expenses for client services increased primarily due to expenses incurred in
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restructuring the consulting services practice which the Company has targeted
for future growth which the Company experienced higher personnel costs
required to retain and hire highly qualified technical support specialists to
handle telephone support.
Product development expenses increased, primarily due to additional personnel
hired to keep the Company's development schedule on track for enhancements to
the software as well as research and development on new software products.
Product development expenses for the quarter were reduced by $633 of
capitalized software development costs related to new software products. The
Company expects overall product development expenses to remain above its 1999
level throughout 2000.
Sales and marketing expenses decreased for the three months ended March 31,
2000 compared to the same period last year, primarily due to lower commission
expenses resulting from lower software revenue. This was partially offset by
an increase in personnel and additional expenses for the Company's Australian
sales office, which was opened during this quarter. As a percentage of net
revenue, sales and marketing expenses decreased to 17 percent for the three
months ended March 31, 2000 from 18 percent for the same period in 1999.
General and administrative expenses increased for the three months ended March
31, 2000 over the same period last year. The increase was primarily due to
increased depreciation and amortization expense (mainly due to a new IS system
that was implemented last September), an increase in legal and insurance costs
and an increase in personnel.
OTHER INCOME. Other income increased for the three months ended March 31, 2000
over the same period last year, primarily due to an increase in interest
income. This increase was a result of cash and cash equivalents and temporary
investments increasing $9,782 to $20,098 at March 31, 2000, compared to
$10,316 at March 31, 1999.
PROVISION FOR INCOME TAXES. The Company's effective tax rate was 37.5 percent
for the three months ended March 31, 2000 compared to 39.0 percent for the
same period in 1999. The provision for income taxes is based on the Company's
estimate of the effective tax rate for each of the respective years.
Capital Resources and Liquidity
- -------------------------------
The Company generally meets its liquidity needs through cash generated from
operations. During the three months ended March 31, 2000, net cash provided by
operations was $2,145 compared to $3,635 for the same period in 1999. This
decrease was primarily due to the decrease in the profitability of the
Company's operations for the first three months of 2000 compared to the same
period in 1999. Working capital decreased to $8,120 at March 31, 2000 from
$8,702 at December 31, 1999, as a result of several factors discussed below.
Net accounts receivable at March 31, 2000 were $4,416, a decrease of $609
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compared to December 31, 1999, primarily due to the decline in software
license fee revenue during this period. DSO (Days Sales Outstanding) at March
31, 2000 increased slightly to 32, compared to 30 at December 31, 1999. Net
capitalized software costs increased $488 to $2,676 at March 31, 2000 from
$2,188 at December 31, 1999, primarily due to cost incurred in the development
of new products. Purchased software increased $524 to $3,126 at March 31, 2000
from $2,602 at December 31, 1999, primarily due to the recently announced
purchase of a service billing application.
Deferred revenues at March 31, 2000 increased $1,149 to $14,874 from $13,725
at December 31, 1999 primarily due to an increase in the billings for annual
maintenance and support service plans. Revenue from annual maintenance and
support service billings are recognized ratably over the service plan period.
Accrued employee expenses decreased $838 to $1,346 at March 31, 2000, from
$2,184 at December 31, 1999, primarily due to payments during this quarter of
the Company's 1999 matching contribution to its 401(k) plan and 1999's profit
sharing expense.
In January 2000, the Company declared a regular quarterly cash dividend of
$.04 per share, aggregating $513. The Company plans to continue to pay
quarterly cash dividends consistent with its capital needs and income levels.
In March the Board of Directors authorized management to repurchase up to
1,300 shares of the Company's common stock in the open market. This action by
the Board reflects its confidence in the Company's future prospects and the
outstanding value of the Company's stock at current market prices.
13
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Risks and Uncertainties
- -----------------------
From time to time, the Company may make forward-looking statements as such
term is defined in the Federal securities laws. The following risks and
uncertainties, among others, should be considered in evaluating the Company's
forward-looking statements. Factors that may cause actual results to differ
materially from those contained in such forward-looking statements are as
follows:
Competition. The computer software market is highly competitive and subject to
change because of the rapid technological changes in the computer industry.
The number of software vendors with which the Company competes varies from
product to product and from region to region within the United States.
Although the Company believes it is a major supplier of project accounting and
cost estimating software for the construction and property management
industries, and that there are economical and technological barriers to
discourage new specialty software vendors from entering into its segment of
the software market, there can be no assurance that larger, well-known
software developers will not target this segment of the market. Such
competitors are considerably larger, more diversified, and have greater
financial and other resources and enjoy greater brand recognition for their
products than the Company.
The Company must also compete with other larger, well-known software
developers for the hiring and retention of highly qualified technical
personnel. As a result, the Company may have to expend additional financial
resources to hire and retain qualified technical personnel. If the Company is
not able to secure the services of employees with the level of technical
expertise it requires, the development of new products would likely be delayed
and would result in a decrease in the quality of new software products and
enhancements to its existing software products. A delay in the development, or
failure to maintain the quality of new software products by the Company would
likely have a material adverse effect on the financial position, results of
operations and cash flows of the Company.
Dependence on Microsoft Operating System; Obsolescence and Technological
Changes. The Company is a specialty software developer, an industry
characterized by rapid technological change. Its software is designed to work
with specific operating systems developed by Microsoft Corporation. If
substantial changes are made to those operating systems or if new operating
systems are adopted, the Company's software may not function properly,
necessitating that the Company invest additional resources to adapt its
software to those changes. Also, other operating systems may be introduced on
which the Company's software may not function, which may also cause additional
14
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resources to be expended which would otherwise be devoted to improving the
Company's software or developing new software.
To remain competitive, the Company must continue to make substantial
expenditures for product development. Although the Company plans to continue
to enhance its existing products and to develop new products, the Company's
competitors may develop products with superior capabilities and/or market
their products more effectively at lower prices, by "bundling" their software
with other software or through other methods. The Company believes its
existing software products are widely accepted in its segment of the
marketplace. However, a delay in the release of new products or modifications
to existing products, or a delay in the acceptance by the marketplace of any
new products or modifications to existing products, could similarly delay the
recognition of revenue, or have an adverse effect on the Company's revenue and
earnings.
Substantial Dependence on Single Industry. Because the Company sells a large
majority of its software products and services to the construction industry,
adverse economic conditions in that industry could have a material adverse
effect on the Company's revenue and earnings. The construction industry is
particularly sensitive to a significant increase in interest rates, which in
the past has resulted in substantial financial distress across the industry.
In addition, a downturn in general economic conditions in the United States
could adversely affect the construction industry.
Product Protection. The Company regards its software as proprietary and
attempts to protect it by relying upon copyrights, trade secrets, internal
nondisclosure agreements and transferability restriction incorporated into its
software license agreements. The Company believes the risk of unauthorized
transfers of the Company's proprietary information is reduced because program
source listings are not released to third parties. Despite these restrictions,
it may be possible for competitors or users to copy aspects of the Company's
products or to obtain information which the Company regards as proprietary.
The Company's competitive position could be adversely affected by unauthorized
use of its proprietary information. Third parties may also assert infringement
or other claims against the Company with respect to any existing or future
products. Litigation to protect the Company's proprietary information or to
determine the validity of any third-party claims could result in significant
expense to the Company and, whether or not such litigation is determined in
favor of the Company, divert the efforts of the Company's technical and
management personnel from further development and support of the Company's
software products.
15
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PART II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(27) Financial Data Schedule
(b) Reports on Form 8-K
No Form 8-K was filed during the three months ended March 31, 2000.
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.
TIMBERLINE SOFTWARE CORPORATION
...............................
(Registrant)
Date May 12, 2000 /s/ Carl C. Asai
-----------------------------------------------
Carl C. Asai, Sr. Vice President,
Finance & Chief Financial Officer
16
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FORM 10-Q
Exhibit Index
Exhibit
- -------
(27) Financial Data Schedule
17
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
TIMBERLINE SOFTWARE CORPORATION'S CONDENSED FINANCIAL STATEMENTS
CONTAINED IN ITS QUARTERLY REPORT ON FORM 10-Q FOR THE PERIOD ENDED
MARCH 31, 2000 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> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 8,362
<SECURITIES> 11,736
<RECEIVABLES> 4,559
<ALLOWANCES> 143
<INVENTORY> 228
<CURRENT-ASSETS> 26,617
<PP&E> 25,354
<DEPRECIATION> 6,725
<TOTAL-ASSETS> 51,137
<CURRENT-LIABILITIES> 18,497
<BONDS> 0
<COMMON> 385
0
0
<OTHER-SE> 30,314
<TOTAL-LIABILITY-AND-EQUITY> 51,137
<SALES> 5,550
<TOTAL-REVENUES> 12,340
<CGS> 1,185
<TOTAL-COSTS> 7,407
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,516
<INCOME-TAX> 568
<INCOME-CONTINUING> 948
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 948
<EPS-BASIC> .07
<EPS-DILUTED> .07
</TABLE>
