<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
--------------------------------------------
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________
Commission file number 1-9983
OEC MEDICAL SYSTEMS, INC.
(Registrant)
Incorporated in the State of Delaware
I.R.S. Employer Identification Number 94-2538512
384 Wright Brothers Drive, Salt Lake City, Utah 84116
(Address of Principal Executive Offices)
Telephone: (801) 328-9300
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 requirements
for the past 90 days.
Yes X No____
-----
As of April 30, 1999, there were 12,664,877 shares of Common Stock ($.01 par
value) outstanding.
<PAGE>
Part I. Financial Information
Item 1. Financial Statements
OEC MEDICAL SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Net sales:
Product $ 44,541 $ 36,339
Service 5,821 5,256
--------- ---------
Total net sales 50,362 41,595
--------- ---------
Cost of sales:
Product 24,634 20,219
Service 4,484 3,978
Total cost of sales 29,118 24,197
Gross margin 21,244 17,398
--------- ---------
Operating expenses:
Research and development 3,591 3,010
Marketing and sales 8,581 7,323
Administrative, general and other 2,686 2,295
Total operating expenses 14,858 12,628
Operating income 6,386 4,770
Interest income 188 267
Interest expense (6) (76)
--------- ---------
Income before income taxes 6,568 4,961
Income tax expense 2,299 1,716
--------- ---------
Net income 4,269 $ 3,245
========= =========
Net income per common share:
Diluted $.32 $.24
Basic $.33 $.26
Common shares:
Diluted 13,405 13,397
Basic 12,751 12,639
</TABLE>
(See Accompanying Notes)
2
<PAGE>
OEC MEDICAL SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1999 AND DECEMBER 31, 1998
(In thousands)
ASSETS
<TABLE>
<CAPTION>
March 31, 1999 December 31, 1998
--------------- -----------------
(unaudited)
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 5,759 $ 4,438
Securities available for sale 11,393 15,222
Accounts receivable, net of
allowances of $1,115 and $1,288, respectively 44,240 44,365
Inventories, net 46,286 42,579
Prepaid expenses and other current assets 1,298 1,079
Income taxes receivable -- 629
Deferred income taxes 6,038 6,698
-------- --------
Total current assets 115,014 115,010
Long-term receivables 1,452 1,520
Property and equipment, net 17,293 17,242
Cost in excess of net assets acquired, net of
accumulated amortization of $10,369 and $10,126, respectively 9,679 9,922
Deferred income taxes 579 256
Investment in unconsolidated affiliate 1,371 1,421
Other assets 1,136 876
-------- --------
Total $146,524 $146,247
======== ========
</TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Current Liabilities:
<S> <C> <C>
Accounts payable $ 11,489 $ 12,101
Accrued salaries and benefits 5,006 6,485
Accrued warranty and installation costs 2,755 2,702
Deferred income and customer deposits 5,010 4,647
Income taxes payable 805 --
Accrued distributor commissions 3,234 3,795
Other accrued liabilities 5,296 4,548
-------- --------
Total current liabilities 33,595 34,278
-------- --------
Stockholders' Equity:
Preferred stock, $.01 par value
Authorized--2,000 shares, none outstanding -- --
Common stock, $.01 par value
Authorized--30,000 shares
Issued--14,080 and 13,976 shares, respectively 141 140
Capital in excess of par value 90,806 88,990
Retained earnings 42,335 38,066
Treasury stock, 1,415 and 1,200 shares at cost, respectively (20,135) (15,036)
Accumulated other comprehensive income (218) (191)
-------- --------
Total stockholders' equity 112,929 111,969
-------- --------
Total $146,524 $146,247
======== ========
</TABLE>
(See Accompanying Notes)
3
<PAGE>
OEC MEDICAL SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(In thousands)
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 4,269 $ 3,245
Adjustments to reconcile net income
to net cash provided (used) by operating activities:
Depreciation and amortization expense 956 917
Deferred income tax expense (benefit) 337 (340)
Current tax benefit attributable to stock options exercised 490 1,296
Non-employee stock option expense 147 --
Changes in current assets and liabilities:
Accounts receivable, net 125 (578)
Inventories, net (3,707) (3,451)
Prepaid expenses and other current assets (219) 1,319
Income taxes 1,434 682
Other assets (260) (239)
Accounts payable (612) (1,498)
Accrued salaries and benefits (1,479) (972)
Accrued warranty and installation costs 53 440
Deferred income and customer deposits 363 261
Accrued distributor commissions (561) (909)
Other accrued liabilities 748 (463)
------- -------
Net cash provided (used) by operating activities 2,084 (290)
------- -------
INVESTING ACTIVITIES:
Reduction in long-term receivables 68 998
Additions to property and equipment (714) (1,163)
Sale (purchase) of securities available for sale 3,829 (968)
Payment for the purchase of unconsolidated affiliate -- (1,575)
Other (27) (145)
------- -------
Net cash provided (used) by investing activities 3,156 (2,853)
------- -------
FINANCING ACTIVITIES:
Common stock issued under benefit plans 1,180 1,787
Purchases of treasury stock (5,099) --
------- -------
Net cash provided (used) by financing activities (3,919) 1,787
------- -------
Net increase (decrease) in cash and cash equivalents 1,321 (1,356)
Cash and cash equivalents at beginning of period 4,438 17,502
------- -------
Cash and cash equivalents at end of period $ 5,759 $16,146
======= =======
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for interest $ 6 $ 13
Cash paid during the period for income taxes $ 38 $ 78
</TABLE>
(See Accompanying Notes)
4
<PAGE>
OEC MEDICAL SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
MARCH 31, 1999 AND 1998
1. Interim information is unaudited but, in the opinion of Company management,
all adjustments necessary for a fair presentation of interim results have
been included. The results for the three months ended March 31, 1999 and
1998, are not necessarily indicative of the results to be expected for the
entire year. These consolidated financial statements and notes should be
read in conjunction with the Company's consolidated financial statements for
the year ended December 31, 1998, filed on Form 10-K on March 25, 1999.
2. Inventories are stated at the lower of cost, utilizing the first-in/first-
out method, or market. Inventories consist of the following:
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
--------- ------------
(In thousands)
<S> <C> <C>
Purchased parts and completed subassemblies $22,522 $21,893
Work-in-process 6,545 5,816
Finished goods 2,434 2,268
Demonstration equipment 12,728 11,476
Service and repair parts 6,652 5,870
------- -------
Total 50,881 47,323
Less: reserves for excess and obsolete inventory (4,595) (4,744)
------- -------
Net $46,286 $42,579
======= =======
</TABLE>
3. The Company has adopted Statement of Financial Accounting Standards ("SFAS")
No. 130, "Reporting Comprehensive Income." SFAS No. 130 establishes new
rules for the reporting and display of comprehensive income and its
components, however, it has no impact on the Company's net income.
The components of comprehensive income are as follows:
<TABLE>
<CAPTION>
March 31, March 31,
1999 1998
--------- ---------
(In thousands)
<S> <C> <C>
Net income $4,269 $3,245
Foreign currency translation adjustments (27) (145)
------ ------
Total comprehensive income $4,242 $3,100
====== ======
</TABLE>
5
<PAGE>
OEC MEDICAL SYSTEMS, INC.
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Except for historical information, this discussion contains forward looking
statements that involve risks and uncertainties that could cause actual results
to differ materially from those projected. Such risk and uncertainties include
those described in the "Factors That May Affect Future Operations" section on
page 8 of this Form 10-Q.
Results of Operations
- ---------------------
For the quarter ended March 31, 1999, OEC Medical Systems, Inc. ("OEC" or the
"Company") had net income of $4.3 million, compared with net income of $3.2
million for the same period in 1998. Operating income improved from $4.8 million
in 1998 to $6.4 million in 1999.
The following table sets forth OEC's operating results as a percentage of net
sales:
<TABLE>
<CAPTION>
Three Months
1999 1998
---- ----
<S> <C> <C>
Net sales:
Product 88.4 87.4
Service 11.6 12.6
Total net sales 100.0 100.0
------- -------
Cost of sales:
Product 48.9 48.6
Service 8.9 9.6
------- -------
Total cost of sales 57.8 58.2
------- -------
Gross margin 42.2 41.8
------- -------
Operating expenses:
Research and development 7.1 7.2
Marketing and sales 17.1 17.6
Administrative, general
and other 5.3 5.6
------- -------
Total operating
expenses 29.5 30.4
------- -------
Operating income 12.7 11.5
------- -------
Net income 8.5 7.8
======= =======
</TABLE>
Net Sales
- ---------
Net sales for the quarter ended March 31, 1999, increased 21% to $50.4 million,
compared to $41.6 million for the comparable period of 1998. Product sales for
the quarter ended March 31, 1999 were $44.5 million, compared to $36.3 million
for the same quarter last year. International revenue increased 59% to $8.5
million with strong growth in China, Japan and Europe.
Worldwide bookings increased 7% to $44.1 million compared to $41.0 million for
the first quarter of 1998 with international bookings increasing 29%. Domestic
bookings increased 3% to $35.2 million in the first quarter of 1999 compared to
$34.1 million for the same quarter last year. The slowdown in domestic bookings
is attributed to a delay in capital equipment spending as hospitals address
their Year 2000 concerns, the short-term effect of restructuring the Company's
product distribution channel in Texas, and the comparison to a strong first
quarter of 1998 due to a group-buy promotional program.
6
<PAGE>
Service revenue for the quarter ended March 31, 1999 increased 11% to $5.8
million compared to $5.3 million for the same quarter last year.
Margin Analysis
- ---------------
The Company's gross margin increased to 42.2% of net sales for the first quarter
of 1999 compared to 41.8% for the same period in 1998. Despite increasing
pricing pressures on all products, this margin improvement was accomplished
through continued efficiency gains in manufacturing and as a result of sales of
higher margin products like the Cardiac and vascular 12-inch field-of-view C-arm
products.
Service expenses increased by $0.5 million over the first quarter of 1998,
consistent with the service revenue increases.
Operating Expenses
- ------------------
Research and development costs were up $0.6 million for the three-month period
compared to the prior year. This reflects the Company's continuing investment
in new product development and enhancements.
Marketing and sales expenses increased $1.3 million or 17% compared to the prior
year, primarily due to additional commission expense associated with the
increased revenue and the start-up costs required for restructuring the
Company's product distribution channel in Texas.
Administrative expenses were up slightly for the first three months of 1999
compared to last year but, decreased as a percentage of net sales.
Income Taxes
- ------------
During the first quarter of 1999 and 1998, the Company recorded $2.3 million and
$1.7 million of tax expense, respectively. The effective tax rate increased
slightly from 34.6% in the first quarter of 1998 to 35.0% for the first three
months of 1999. This rate is expected to remain at this level throughout 1999.
Liquidity and Capital Resources
- -------------------------------
Cash provided by operations for the first three months of 1999 was $2.1 million
compared to cash usage of $0.3 million in the same period of the prior year. The
cash generated from net income was partially offset by inventory increases to
support increased production due to the broadened product line and to provide
additional demonstration units.
During the first quarter of 1999, the Company repurchased 215,000 shares of its
common stock at a cost of $5.1 million. OEC believes that it has sufficient
liquidity and anticipated cash flow to meet its obligations and support the
share repurchase program in 1999. In addition, OEC continues to carry an unused
$10 million line of credit.
Factors That May Affect Future Results
- --------------------------------------
Certain statements contained in this document and other written and oral
statements made from time to time by the Company do not relate strictly to
historical or current facts. As such, they are considered "forward-looking
statements" which provide current expectations or forecasts of future events.
Such statements can be identified by the use of terminology such as
"anticipate," "believe," "estimate," "expect," "intend," "may," and similar
words or expressions. The Company's forward-looking statements generally relate
to its growth strategies, financial results, product development and regulatory
approval programs, and sales efforts. One must carefully consider forward-
looking statements and understand that such statements involve a variety of
risks and uncertainties, known and unknown, and actual results may vary
materially.
OEC's future operating results are dependent on its ability to develop,
manufacture and market innovative products that meet customers' needs. The
process of developing new high technology medical products is complex and
uncertain and requires innovative designs that anticipate customer needs,
technological trends and healthcare shifts.
7
<PAGE>
There can be no assurance that the Company will be able to develop and market
new products on a cost-effective and timely basis, that such products will
compete favorably with products developed by others or that existing technology
will not be superseded by new discoveries or breakthroughs.
Because of the substantial length of time and expense associated with bringing
new products through development and regulatory approval to the marketplace, the
medical device industry places considerable importance on obtaining patent,
trademark, copyright and trade secret protection for new technologies, products
and processes. The loss of such protection could have a material adverse effect
on the Company's business.
OEC depends on some significant vendors for certain important component parts
for certain products. While the Company believes any of these single-source
items could be replaced over time, abrupt disruption in the supply of a part for
a product could have an adverse effect on the Company's production and on its
financial condition and results of operations in cases where the existing
inventory of the components is not adequate to meet the Company's demand for the
component during such disruption.
The testing, marketing and sale of human healthcare products entails an inherent
risk of product liability. There can be no assurance that product liability
claims will not be asserted against OEC. Although OEC has product liability
insurance coverage, there can be no assurance that such coverage will provide
adequate coverage against all potential claims.
As a manufacturer of medical devices, OEC is subject to extensive and rigorous
governmental regulation, principally by the FDA and corresponding state and
foreign agencies. Failure to comply with FDA and other regulations could result
in sanctions being imposed, including restrictions on the marketing of or recall
of the affected products. OEC's facilities and manufacturing processes have been
periodically inspected by the FDA and other agencies, but remain subject to
further inspections from time to time. OEC continues to devote substantial human
and financial resources to regulatory compliance and believes that it remains in
substantial compliance with all applicable federal and state regulations.
Nevertheless, there can be no assurance that the FDA or a state or foreign
agency will agree with OEC's positions, or that its GMP or ISO compliance will
not be challenged at some subsequent point in time.
A portion of the Company's research and development activities, some of its
single-source vendors, its corporate headquarters and other critical business
operations are located near a major earthquake fault. The ultimate impact on
the Company, significant suppliers and the general infrastructure is unknown,
but operating results could be materially affected in the event of a major
earthquake.
Although OEC believes that it has the product offerings and resources needed for
continuing success, future revenue and margin trends cannot be reliably
predicted and may cause the Company to adjust its operations. Factors external
to the Company can result in volatility of the Company's common stock price.
Foreign Currency Rate Exposure
The Company has operating subsidiaries located in Europe and utilizes forward
exchange contracts with durations generally less than six months to hedge
against the effect of exchange rate fluctuations of European income. The
Company's forward exchange contracts are not material. The Company also has
other customers located throughout the world; however, these customers' invoices
are denominated in U.S. dollars. As a result, the Company has not incurred
material gains or losses resulting from foreign currency fluctuations. However,
adverse fluctuations of exchange rates can affect the purchasing power of
international customers that can result in volatility of international demand.
Interest Rate Risk Exposure
The Company has purchased certain debt obligations of the U.S. government and
various corporations with original maturities of less than one year. As of
March 31, 1999, such investments totaled approximately $11.4 million and the
difference between fair market value and amortized cost is immaterial. Interest
rate risk and default risk underlying these securities is not considered to be
significant.
8
<PAGE>
Other Exposures
The Company has not entered into any speculative derivatives and does not
foresee utilizing such instruments in the future. The Company does not utilize
commodities in the normal course of its manufacturing process. Accordingly, the
Company does not believe it has any significant commodity risks or exposures.
Year 2000 Readiness Disclosure
The Company has completed a review of its business information systems with
respect to Year 2000 compliance and will either replace or correct those
computer systems that have been found to have date-related deficiencies. New
integrated business information systems for the order administration, financial
and manufacturing processes were put in place in 1997. A few minor corrective
actions are required to make these systems Year 2000 compliant and these
corrections are expected to be completed by mid-year 1999. The business
information system for the service operations is being replaced with a planned
completion date by the end of the third quarter of 1999.
The Company's products being shipped today have been assessed and found to be
Year 2000 compliant provided that the user perform a reset of the date upon
first use in the Year 2000. The Company believes that products previously
shipped are either Year 2000 compliant or can be made Year 2000 compliant with
the purchase of an upgrade or a date reset performed upon first use in the Year
2000.
The Company is also assessing facility and telecommunications systems and
systems used to support the product design and manufacturing processes to ensure
that these will be Year 2000 ready. It is anticipated that any required
corrective actions will be completed by mid-year 1999.
The Company relies on third party providers for materials and services such as
telecommunications, utilities, financial services and other key services.
Interruption of those materials or services due to Year 2000 issues could affect
the Company's operations. The Company has completed the process of contacting
its major suppliers and has determined that all major suppliers are in the
process of ensuring Year 2000 compliance. However, since the Company is
dependent on key third parties, there can be no guarantee that the Company's
efforts will prevent a material adverse impact on its financial position,
results of operations or liquidity in future periods in the event that a
significant number of suppliers and/or customers experience business disruptions
as a result of their lack of Year 2000 readiness.
The Company estimates that it has incurred costs of approximately $4 million, to
date, in external and internal costs to address its Year 2000 readiness issues,
the majority of which are the new business information systems installed in
1997. The Company currently estimates that it will incur additional costs of
approximately $2 million to complete its Year 2000 readiness projects.
Both the Company's cost estimates and completion time frames could be influenced
by its ability to successfully identify all Year 2000 issues, the nature and
amount of corrective action required, the availability and cost of trained
personnel in this area and the Year 2000 success that key third parties and
customers attain. While these and other unforeseen factors could have a
material adverse impact on the Company's financial position, results of
operations or liquidity in future periods, management believes that it has
implemented an effective Year 2000 compliance program that will minimize the
possible negative consequences to the Company.
Throughout 1999, the Company will determine areas where contingency planning is
needed. The planning efforts will include, but are not limited to,
identification and mitigation of potential serious business interruptions,
adjustments of inventory levels to meet customer needs, and establishing crisis
response processes to address unexpected problems.
Part II. Other information
Item 1. Legal proceedings
There are no significant changes in legal proceedings from the previous stated
position in the Company's Annual Report for 1998 or Form 10K filed with the
Securities & Exchange Commission on March 25, 1999.
9
<PAGE>
Item 6. Exhibits
(a) The following exhibit (numbered in accordance with Item 601 of SEC
Regulations S-K) is filed as part of this report:
Exhibit
Number Description
---------
3.1 Certificate of Incorporation, as amended. Incorporated by
reference to the OEC Medical Systems, Inc. Form 10-K, filed March
30, 1994.
3.2 By-Laws, as amended May 15, 1997. Incorporated by reference to
the OEC Medical Systems, Inc. Form 10-Q, filed August 8, 1997.
10.1 Diasonics, Inc. 1979 Stock Option Plan, amended and restated as
of June 1, 1982. Incorporated by reference to Exhibit 10.6 of the
Diasonics, Inc. Registration Statement on Form S-8, filed May 2,
1983.
10.4 Diasonics, Inc. 1990 Stock Option/Stock Purchase Plan.
Incorporated by reference to Exhibit 10.79 of the Diasonics, Inc.
Form S-8, filed on May 1, 1991.
10.14 Form of Option Agreement used in connection with options having
service-vesting provisions. Incorporated by reference to the OEC
Medical Systems, Inc. Form S-8 filed June 12, 1998.
10.15 Form of Option Agreement used in connection with options having
milestone provisions. Incorporated by reference to the OEC
Medical Systems, Inc. Form S-8 filed June 12, 1998.
10.16 Form of Option Agreement used in connection with automatic option
grant program for non-employee directors. Incorporated by
reference to the OEC Medical Systems, Inc. Form S-8 filed June
12, 1998.
10.20 Form of Warrant Agreement used in connection with grant to
independent contractors for the purchase of common shares.
Incorporated by reference to the OEC Medical Systems, Inc. Form
10-K, filed March 27, 1997.
10.24 OEC Medical Systems, Inc. 1993 Employee Incentive Stock
Acquisition Plan, as amended and restated March 31, 1998.
Incorporated by reference to the OEC Medical Systems, Inc.
Form S-8 filed June 12, 1998.
10.25 OEC Medical Systems, Inc. 1998 Stock Option Plan. Incorporated by
reference to the OEC Medical Systems, Inc. Form S-8 filed June
12, 1998.
10.26 Form of Option Agreement used in connection with the granting of
incentive stock options. Incorporate by reference to the OEC
Medical Systems, Inc. Form S-8 filed June 12, 1998.
11 Statement of Computation of Per Share Earnings.
21 List of Subsidiaries. Incorporated by reference to the OEC
Medical Systems, Inc. Form 10-Q, filed May 13, 1997.
27 Financial Data Schedule (FDS) for Edgar Filing.
(b) Reports on Form 8-K:
Not Applicable
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
OEC MEDICAL SYSTEMS, INC.
(Registrant)
By: /s/ Randy W. Zundel
--------------------------
Randy W. Zundel
Chief Financial Officer
(Principal Accounting Officer)
Date: May 13, 1999
11
<PAGE>
EXHIBIT 11
Computation of Earnings Per Share for the Three Months Ended March 31, 1999 and
1998:
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
1999 1998
------- -------
<S> <C> <C>
Net income* $ 4,269 $ 3,245
Earnings per common share:
Basic $ .33 $ .26
Diluted $ .32 $ .24
Shares outstanding (average):
Common shares 14,036 13,609
Treasury shares (1,285) (970)
------- -------
Common shares - basic (average) 12,751 12,639
Options: common equivalents 636 739
Warrants: common equivalents 18 19
------- -------
Common shares - diluted (average) 13,405 13,397
======= =======
</TABLE>
*Note: The Company did not have any outstanding preferred stock for the periods
ending March 31, 1998 and 1999.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED BALANCE SHEET AND STATEMENT OF OPERATIONS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE COMPANY'S 1ST QUARTER 10-Q FOR
1999.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<EXCHANGE-RATE> 1
<CASH> 5,759
<SECURITIES> 11,393
<RECEIVABLES> 45,355
<ALLOWANCES> 1,115
<INVENTORY> 46,286
<CURRENT-ASSETS> 115,014
<PP&E> 31,584
<DEPRECIATION> 14,291
<TOTAL-ASSETS> 146,524
<CURRENT-LIABILITIES> 33,595
<BONDS> 0
0
0
<COMMON> 141
<OTHER-SE> 112,788
<TOTAL-LIABILITY-AND-EQUITY> 146,524
<SALES> 44,541
<TOTAL-REVENUES> 50,362
<CGS> 24,634
<TOTAL-COSTS> 29,118
<OTHER-EXPENSES> 14,858
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6
<INCOME-PRETAX> 6,568
<INCOME-TAX> 2,299
<INCOME-CONTINUING> 4,269
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,269
<EPS-PRIMARY> .33
<EPS-DILUTED> .32
</TABLE>
