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 the Quarter Ended April 30, 1997 Commission File Number 0-10964
MAXWELL TECHNOLOGIES, INC.
Delaware IRS ID #95-2390133
8888 Balboa Avenue
San Diego, California 92123
Telephone (619) 279-5100
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
----- -----
As of May 31, 1997 Registrant had only one class of common stock of which
there were 6,035,339 shares outstanding.
<PAGE>
<TABLE>
PART I - FINANCIAL STATEMENTS
Maxwell Technologies, Inc.
Consolidated Condensed Balance Sheet
(in thousands)
<CAPTION>
Assets
------
April 30, July 31,
1997 1996
--------- ---------
(Unaudited) (Note)
<S> <C> <C> <C> <C>
Current assets:
Cash and cash equivalents $ 1,435 $ 1,465
Accounts receivable - net 19,199 15,573
Inventories:
Finished products 2,051 714
Work in process 2,029 1,836
Parts and raw materials 5,294 4,258
--------- ---------
9,374 6,808
Recoverable income taxes -- 740
Prepaid expenses 1,186 548
Deferred income taxes 161 161
--------- ---------
Total current assets 31,355 25,295
Property, plant and equipment - net 15,768 14,809
Deposits and other assets 807 620
--------- ---------
$ 47,930 $ 40,724
========= =========
</TABLE>
<TABLE>
<CAPTION>
Liabilities and Shareholders' Equity
------------------------------------
<S> <C> <C> <C> <C>
Current liabilities:
Accounts payable $ 16,259 $ 14,231
Accrued employee compensation 4,454 2,866
Current portion of long-term debt 610 910
--------- ---------
Total current liabilities 21,323 18,007
Long-term debt 636 1,018
Minority interest 583 954
Shareholders' equity:
Common stock 601 568
Additional paid-in capital 21,454 19,752
Deferred compensation (484) (605)
Retained earnings 3,817 1,030
--------- ---------
25,388 20,745
--------- ---------
$ 47,930 $ 40,724
========= =========
<FN>
Note: The Balance Sheet at July 31, 1996 has been derived from the audited
financial statements at that date.
See notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
PART I - FINANCIAL STATEMENTS, continued
Maxwell Technologies, Inc.
Consolidated Condensed Statement of Income - (Unaudited)
(in thousands, except share and per share data)
<CAPTION>
Three Months
Ended April 30,
-------------------------
1997 1996
--------- ---------
<S> <C> <C> <C> <C>
Sales $ 25,922 $ 20,331
Costs and expenses:
Cost of sales 17,599 16,114
Research and development expenses 1,407 1,223
Selling, administrative and general expenses 5,875 3,955
Restructure and asset impairment losses -- 3,817
Other - net 10 (4)
--------- ---------
24,891 25,105
Income (loss) before income taxes
and minority interest 1,031 (4,774)
Provision for income taxes -- 37
Minority interest in net income (loss)
of subsidiary (28) 12
--------- ---------
Net income (loss) $ 1,059 $ (4,823)
========= =========
Earnings (loss) per share $ 0.16 $ (0.88)
========= =========
Weighted average number of shares 6,714,000 5,474,000
========= =========
<FN>
Note: Earnings (loss) per share is based upon weighted average number of shares
of common stock outstanding and all dilutive stock options. Per share
amounts are unchanged on a fully diluted basis.
See notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
PART I - FINANCIAL STATEMENTS, continued
Maxwell Technologies, Inc.
Consolidated Condensed Statement of Income - (Unaudited)
(in thousands, except share and per share data)
<CAPTION>
Nine Months
Ended April 30,
-------------------------
1997 1996
--------- ---------
<S> <C> <C> <C> <C>
Sales $ 74,516 $ 58,843
Costs and expenses:
Cost of sales 51,496 48,975
Research and development expenses 3,677 3,541
Selling, administrative and general expenses 16,543 11,657
Restructure and asset impairment losses -- 6,385
Other - net 5 (223)
--------- ---------
71,721 70,335
Income (loss) before income taxes,
minority interest and loss from
cumulative effect of change in
accounting principle 2,795 (11,492)
Provision for income taxes -- 1,237
Minority interest in net income
of subsidiary 8 31
Loss from cumulative effect of change in
accounting principle -- 2,569
--------- ---------
Net income (loss) $ 2,787 $ (15,329)
========= =========
Earnings (loss) per share before cumulative
effect of change in accounting principle $ 0.42 $ (2.35)
========= =========
Earnings (loss) per share $ 0.42 $ (2.82)
========= =========
Weighted average number of shares 6,620,000 5,434,000
========= =========
<FN>
Note: Earnings (loss) per share is based upon weighted average number of shares
of common stock outstanding and all dilutive stock options. Per share
amounts are unchanged on a fully diluted basis.
See notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
PART I - FINANCIAL STATEMENTS, continued
Maxwell Technologies, Inc.
Consolidated Condensed Statement of Cash Flows - (Unaudited)
(in thousands)
<CAPTION>
Nine Months
Ended April 30,
-------------------------
1997 1996
--------- ---------
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net income (loss) $ 2,787 $ (15,329)
Adjustments to reconcile net income
(loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization 2,167 1,524
Deferred compensation 121 --
Restructure and asset impairments
and losses -- 6,642
Cumulative effect of change in
accounting principle -- 2,569
Minority interest in net income of
subsidiary 8 31
Changes in operating assets and
liabilities - net (3,074) 1,595
--------- ---------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 2,009 (2,968)
--------- ---------
INVESTING ACTIVITIES
Purchases of property and equipment (3,126) (1,479)
--------- ---------
NET CASH USED IN
INVESTING ACTIVITIES (3,126) (1,479)
--------- ---------
FINANCING ACTIVITIES
Principal payments on long-term debt (682) (681)
Proceeds from short-term borrowings -- 2,100
Proceeds from issuance of company and
subsidiary stock 1,769 385
--------- ---------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 1,087 1,804
--------- ---------
DECREASE IN CASH
AND CASH EQUIVALENTS (30) (2,643)
Cash and cash equivalents at beginning
of period 1,465 4,053
--------- ---------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 1,435 $ 1,410
========= =========
<FN>
See notes to consolidated condensed financial statements.
</TABLE>
<PAGE>
PART I - continued
NOTES TO FINANCIAL STATEMENTS
The preceding interim consolidated condensed financial statements
contain all adjustments (consisting of normal recurring accruals) which are, in
the opinion of management, necessary for a fair and accurate presentation of
financial position at April 30, 1997 and the results of operations for the
three and nine month periods then ended. These interim financial statements
should be read in conjunction with the company's July 31, 1996 audited
financial statements included in its Proxy Statement for the 1996 Annual
Meeting of Shareholders. Interim results are not necessarily indicative of
those to be expected for the full year.
The consolidated financial statements include the accounts of Maxwell
Technologies, Inc., and its subsidiaries. All significant intercompany
transactions and account balances are eliminated in consolidation.
During the third quarter of fiscal year 1996, the company recorded
charges totaling $4.9 million, primarily for restructuring activities. These
charges coincided with a change in management at the company, and reflected the
reorganization plans of new management. Non-restructure charges included
reserves for certain contract and inventory-related matters totaling
approximately $800,000. Combined with write-offs of approximately $9.5 million
taken in the first six months of last year, primarily for asset write-downs and
the company's early adoption of FASB Statement No. 121, total fiscal year 1996
charges for the nine-month period amounted to approximately $14.4 million.
In November 1996, the company declared a 2-for-1 split of the company's
common shares, effected as a 100% stock dividend that was distributed on
December 17, 1996 to shareholders of record as of November 26, 1996. Common
stock accounts, earnings per share and weighted average number of share amounts
from prior periods have been restated to reflect the stock split.
In February 1997, the Financial Accounting Standards Board issued
Statement No. 128, Earnings Per Share, which is required to be adopted on
January 31, 1998. At that time the company will be required to change the
method currently used to compute earnings per share and to restate all prior
periods. Under the new requirements for calculating primary earnings per
share, the dilutive effect of stock options will be excluded. The impact is
expected to result in primary earnings per share for the three and nine months
ended April 30 as follows:
<PAGE>
PART I - continued
<TABLE>
<CAPTION>
Three Months Nine Months
Ended April 30, Ended April 30,
----------------- -----------------
1997 1996 1997 1996
------- ------- ------- -------
<S> <C> <C> <C> <C>
Primary earnings per share,
as reported $ 0.16 $ (0.88) $ 0.42 $ (2.82)
======= ======= ======= =======
As restated, under Statement 128 $ 0.18 $ (0.88) $ 0.47 $ (2.82)
======= ======= ======= =======
</TABLE>
The impact of Statement 128 on the calculation of fully diluted earnings per
share for the above periods is not expected to be material.
Backlog of unfilled orders at April 30, 1997 was $60.5 million, of which
$44.7 million is fully funded.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL POSITION
Results of Operations
- ---------------------
Sales for the quarter ended April 30, 1997 were $25,922,000, or a 27%
increase over the $20,331,000 for the same period one year ago. Nine-month
sales were $74,516,000, also a 27% increase over last year, when nine-month
sales were $58,843,000. Following the pattern of the first two quarters, the
Commercial and Industrial PC Products and the Power Conversion Products
business segments had strong growth compared to the prior year. Together,
these two segments account for approximately 90% of the sales gains in both the
three and nine-month periods. Sales and cost of sales for each business
segment are shown in a table below, and results of operations are further
described in a separate discussion of each business segment following the
table.
Restructure Reserves and Other Charges in the Prior Year. During the
third quarter of last year, the Company recorded charges totaling $4.9 million,
primarily for restructuring activities. These charges coincided with a change
in management at the Company, and reflected the reorganization plans of new
management. Non-restructure charges included reserves for certain contract and
inventory-related matters totaling approximately $800,000.
Combined with write-offs of approximately $9.5 million taken in the
first six months of last year, primarily for asset write-downs and the
Company's early adoption of FASB Statement No. 121, total fiscal year 1996
charges for the nine-month period amounted to approximately $14.4 million.
In the following tables of sales and cost of sales by business segment
for the three and nine-month periods, the Chemical Analytical Services
business, which was sold in June 1996, is included with the Technology Programs
and Systems segment.
<TABLE>
<CAPTION>
Sales
---------------------------------------------
Three Months Nine Months
Ended January 31, Ended January 31,
-------------------- -------------------
(In 000's) 1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Commercial and Industrial
PC Products $ 8,583 $ 5,988 $ 25,670 $ 18,718
Technology Programs &
Systems 8,198 7,918 22,392 21,937
Information Products &
Services 2,554 2,137 7,277 6,727
Power Conversion Products 6,587 4,288 19,177 11,461
-------- -------- -------- --------
$ 25,922 $ 20,331 $ 74,516 $ 58,843
======== ======== ======== ========
Cost of Sales
-------------------------------------------------------------------
Three Months Nine Months
Ended April 30, Ended April 30,
------------------------------- ---------------------------------
% of % of % of % of
(In 000's) 1997 Sales 1996 Sales 1997 Sales 1996 Sales
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Commercial and Industrial
PC Products $ 5,594 65.2% $ 4,400 73.5% $17,009 66.3% $13,312 71.1%
Technology Programs &
Systems 6,369 77.7% 6,286 79.4% 17,935 80.1% 18,261 83.2%
Information Products &
Services 1,413 55.3% 2,481 116.1% 4,263 58.6% 8,524 126.7%
Power Conversion Products 4,223 64.1% 2,947 68.7% 12,289 64.1% 8,878 77.5%
------- ------- ------- -------
$17,599 67.9% $16,114 79.3% $51,496 69.1% $48,975 83.2%
======= ======= ======= =======
</TABLE>
The Commercial and Industrial PC Products segment is operated through
the I-Bus business unit. I-Bus' sales to OEM customers in the
telecommunications market for use in end products such as voice mail systems,
fax servers and switching test equipment account for the majority of the
increase in sales as compared to last year both for the third quarter and the
first nine months. Shipments to Lucent Technologies for use in their
telecommunications equipment comprise the largest portion of the increase.
While some of these shipments are from prior year backlog, Lucent has also
entered into current year agreements with I-Bus to purchase products worth up
to approximately $10 million over periods ranging up to 18 months. Lucent has
begun the early stages of a one-year-plus process of designing next generation
products for certain of its applications. The competition for the PC component
of these new products is keen, and it currently appears that I-Bus will not be
participating with Lucent on two of the new designs which will succeed products
I-Bus has been supplying for several years. However, I-Bus has an outstanding
bid with Lucent for new products for which Lucent has not yet made a decision.
In addition, I-Bus has recently concluded its most successful period of large
OEM design wins in its history, including a single agreement with a Fortune 500
company with a value of up to $30 million over a three-year period. Cost of
sales in both the third quarter and first nine months of the prior year was
impacted by inventory reserves taken as part of the $14.4 million in fiscal
1996 charges, as referred to
<PAGE>
PART I - continued
above. Cost of sales as a percent of sales also decreased this year as
compared to fiscal 1996 due to the effect of the higher sales volume on the
fixed portion of the costs of operations, and the shipments of certain products
in both the three and nine-month periods with higher than typical margins on
the material content of the product.
The Technology Programs and Systems business segment is operated through
Maxwell's Federal Division, and a significant portion of this business is with
the US Government Department of Defense. While total revenues are relatively
consistent for the comparable three and nine-month periods of fiscal 1997 and
1996, there are several offsetting factors contributing to this result. A $4
million, 15-month program for the production of advanced, high-voltage power
supplies for a Department of Energy accelerator project has increased sales in
the current year. This program began in April of 1996, and is now ramped-up
to its full run-rate. Work has also increased on two large, multi-year Defense
contracts, one for space-based sensors and the other for Operations &
Maintenance at a Government facility, as well as increased efforts on the
closure of a simulator facility which had been operated for the Government for
a number of years. The simulator facility closure effort is currently
scheduled for completion in the fall of this year. One of the large,
multi-year contracts previously mentioned will also be concluded toward the
end of this calendar year. A Government request for proposal for a follow-on
to that effort is expected prior to completion of the current contract;
however, while the Company has won several prior follow-on contracts to this
project and has been performing at the very highest levels of award fee, there
is no assurance that the Federal Division will be the successful bidder in the
future. Offsetting these increases, as compared to the prior year, are the
impact of the sale in last year's fourth quarter of the Chemical Analytical
Services business, a winding-down of the Division's environmental consulting
programs, and the shipment in the first quarter of fiscal 1996 of a large
hardware system with no such large hardware shipment this year. Federal
government funding of Defense related projects, particularly in both the
hardware and software aspects of nuclear effects simulation, has been key to
this business segment. The level of future Defense cutbacks and their impact
on the Company is not predictable and, therefore, previously reported results
are not necessarily indicative of those to be expected in the future. Adjusted
for the affects of losses from the Chemical Analytical Services group, which,
as mentioned above, was later sold, cost of sales as a percent of sales is
generally consistent from year to year, both for the quarter and the year-to-
date.
The Information Products and Services segment is operated through the
Information Systems business unit. Sales in this business unit consist
primarily of the Business Systems group's JAMIS accounting and MIS software
package, and three large multi-year contracts, two for integrated justice
information systems (IJIS) in the State of Florida, and one for the network
component of a Child Support Enforcement System in South Carolina. All three
of these multi-year contracts are scheduled for completion around the end of
the current fiscal year, and work is winding-down. The increase in sales in
the three and nine-month periods is primarily due to greater JAMIS-related
sales in the Business Systems group, as well as completion of an educational
software project for Glencoe/McGraw-Hill. Due to prior year performance on
the IJIS contracts, over $1 million of charges were taken last year for the
impact of anticipated financial results and, together with the current status
of the IJIS operation, as described below, these jobs are not currently
contributing to segment gross profit. As compared to the prior year, those
charges, as well as a write-down last year of approximately $800,000 of
capitalized software as part of the overall $14.4 million of previously
described fiscal 1996 write-offs, are the major factors affecting the
comparability of cost of sales as a percent of sales in this business segment.
The cost of sales percentage is also lower this year due to the favorable
profit margins associated with the increased Business Systems sales. In
addition to seeking new contracts in the IJIS and network business area,
Information Systems is pursuing funding for add-ons and enhancements to the
IJIS contracts nearing completion. To date, however, the operation has been
unsuccessful in obtaining additional new or add-on projects. The Company is
currently considering its
<PAGE>
PART I - continued
alternatives for the IJIS operation, including a sale, a wind-down, and a
re-launch with a new focus on more distinct product applications.
The Power Conversion Products business segment is operated through the
Energy Products and PurePulse Technologies business units. In the third
quarter, the increase in revenue in this segment was nearly evenly split
between sales of the Company's new Ultracapacitor product, together with
related applications and funded development work, and sales primarily of
filter/capacitors for implantable defibrillator/pacemakers at the Sierra
division of Energy Products. For the nine-month period, the revenue increase
is primarily attributable to the Ultracapacitor product, the Sierra
filter/capacitor for medical applications, and greater PurePulse revenue.
Cost of sales in this business segment was impacted in the prior year by
inventory reserves and other charges taken by the Energy Products business unit
in last year's second and third quarters. Aside from those charges, current
quarter and year-to-date improvements in cost of sales as a percent of sales
are primarily due to the impact on this percentage of the increase in sales, as
well as the results of the restructuring undertaken at Sierra to focus the
business on the new medical product.
Selling, administrative and general expenses in the third quarter were
$5,875,000, or 22.7% of sales, compared to $3,955,000, or 19.5% of sales, in
the prior year's third quarter. For the nine months, these expenses were
$16,543,000, or 22.2% of sales, compared to $11,657,000, or 19.8% of sales,
one year ago. Approximately $1.5 million of one-time charges were recorded in
selling, administrative and general expenses in last year's first nine months
as part of the overall $14.4 million of restructuring and asset-related
charges. Approximately $300,000 of such charges occurred in last year's third
quarter. Excluding those charges, the fiscal 1996 third quarter and year-to-
date expenses would have been 18.0% and 17.3% of sales, respectively. In both
the three and nine-month periods, the major factors contributing to the current
year increase include: (1) increased sales and marketing costs in the
commercial business segments in order to support the significant revenue
growth; (2) accruals under new Company incentive and profit sharing plans that
were implemented in fiscal year 1997; and (3) additions to staff to support the
Company's new strategic directions, including new executive management with
skills in technology commercialization and high-volume manufacturing.
Other-net for the three and nine months ended April 30, 1997 was expense
of $10,000 and $5,000, respectively, compared to income of $4,000 and $223,000
for the comparable periods last year. The nine month change primarily reflects
completion of the amortization into income of amounts contributed by minority
shareholders upon the organization of PurePulse Technologies over such
shareholders' proportionate share of PurePulse's equity during April 1996.
Thus, last year's third quarter and year-to-date other-net included $125,000
and $379,000 of such income, respectively, while none is included in the
current year.
The Company has net operating loss carryforwards to offset pre-tax
income, and therefore no income tax expense is provided on current year
profits. As a result of the factors described above, net income for the three
months ended April 30, 1997 was $1,059,000, as compared to a loss of $4,823,000
for the same period one year ago. For the nine months, current year net income
of $2,787,000 compares to a loss of $15,329,000 in the prior year.
<PAGE>
PART I - continued
Liquidity and Capital Resources
- -------------------------------
The accounts related to working capital have increased from July 31,
1996, primarily due to the increased business volume in the current fiscal
year. The balance sheet remains strong, however, with very little long-term
debt, working capital of $10.0 million, and a current ratio of 1.5 to 1 at
April 30, 1997. This compares to working capital of $7.3 million and a working
capital ratio of 1.4 to 1 at the end of fiscal year 1996. The Company has
available a $10 million unsecured bank line of credit, and management believes
that funds on hand and those generated by future operations and available
through its bank line of credit will be sufficient to finance current working
capital requirements. The Company is considering financing plans, including
plans whereby one or more of its subsidiaries could pursue the issuance of
shares of stock to the public. The proceeds of any such financing would be
available for long-term capital needs such as manufacturing facilities and for
funding anticipated future growth.
Note on Forward-Looking Information
- -----------------------------------
To the extent that the above discussion goes beyond historical
information and indicates results or developments which the Company plans or
expects to achieve, these forward-looking statements are identified by the use
of terms such as "expected," "anticipates," "believes," "plans" and the like.
Readers are cautioned that such future results are uncertain and could be
affected by a variety of factors that could cause actual results to differ from
those expected. These risks and uncertainties include such factors as
engineering or manufacturing issues with design prototypes, regulatory
approvals, ability to reach agreement on contractual terms and conditions and
demand for products reaching expected levels, as well as other items of general
applicability including product development based on new technologies,
applications and acceptance of new products in major markets, production and
quality issues on new products, and the impact of competitive products and
pricing. Readers are referred to item 1 of the Company's Annual Report on Form
10-K for fiscal 1996 for additional discussion of certain of those factors.
PART II - OTHER INFORMATION
Item 3. Legal Proceedings
-----------------
The Registrant has been named as a defendant in an action originally
filed in June 1994, in the United States District Court for the Eastern
District of Tennessee at Knoxville, Tennessee (Troy Murphy Morgan, et.al. v.
Brush Wellman, Inc., et.al.) by six individuals against the U.S. Government and
four companies (Brush Wellman, Inc., Cabot Corporation, NGK Metals Corporation,
and Ceradyne, Inc.) for injuries allegedly related to exposure to beryllium.
Included as new defendants in addition to the Registrant are Lockheed Martin
Beryllium Corporation, Microtechnologies, Inc., Cercom Quality Products, Inc.,
General Ceramics, Inc., and Eagle-Picher Industries, Inc. Plaintiffs claim
that exposure to beryllium while working at the U.S. Government facility at Oak
Ridge, Tennessee, has led to chronic beryllium disease and other illnesses and
are demanding a total of $14,000,000 in compensatory damages and $5,000,000 in
punitive damages. The Registrant was served with the complaint in early June
and has tendered the matter to its insurance carriers. Although its
investigation into the matter is in the early stages, the Registrant does not
believe that its products could have contributed to any beryllium exposure by
the plaintiffs.
<PAGE>
PART II - continued
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
--------
No exhibits are included with the Form 10-Q for the period ended
April 30, 1997.
(b) Reports on Form 8-K
-------------------
No reports on Form 8-K were filed during the quarter ended
April 30, 1997.
SIGNATURE
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.
MAXWELL TECHNOLOGIES, INC.
June 16, 1997 /s/ Gary Davidson
- --------------------------- --------------------------------------
Date Gary Davidson, Chief Financial Officer
and Authorized Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> APR-30-1997
<CASH> 1,435
<SECURITIES> 0
<RECEIVABLES> 19,199
<ALLOWANCES> 0
<INVENTORY> 9,374
<CURRENT-ASSETS> 31,355
<PP&E> 47,403
<DEPRECIATION> 31,635
<TOTAL-ASSETS> 47,930
<CURRENT-LIABILITIES> 21,323
<BONDS> 636
<COMMON> 601
0
0
<OTHER-SE> 24,787
<TOTAL-LIABILITY-AND-EQUITY> 47,930
<SALES> 74,516
<TOTAL-REVENUES> 74,516
<CGS> 51,496
<TOTAL-COSTS> 51,496
<OTHER-EXPENSES> 3,677
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,795
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,795
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,787
<EPS-PRIMARY> .42
<EPS-DILUTED> .42
</TABLE>
