UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended December 31, 1999
Commission file number 1-6299
EMCEE Broadcast Products, Inc.
(Exact name of registrant as specified in its charter)
Delaware 13-1926296
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification
No.)
Registrant's telephone number, including area code: 570-443-9575
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 [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date:
Common stock, $ .01-2/3 par value - 3,982,397 shares as of February 10, 2000.
<PAGE> EMCEE BROADCAST PRODUCTS, INC. AND SUBSIDIARIES
I N D E X
PAGE(S)
PART I. FINANCIAL INFORMATION:
CONSOLIDATED BALANCE SHEETS -
December 31, 1999 and March 31, 1999 3
CONSOLIDATED STATEMENTS OF OPERATIONS -
Nine Months and three months ended December 31,
1999 and 1998 4
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY -
Nine Months ended December 31, 1999 5
CONSOLIDATED STATEMENTS OF CASH FLOWS -
Nine Months ended December 31, 1999 and 1998 6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 8-11
PART II. OTHER INFORMATION:
SIGNATURES 12
NOTE: Any questions concerning this report should be addressed to
Mr. Allan J. Harding, Vice President-Finance.
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION
EMCEE BROADCAST PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
- DECEMBER 31, 1999 and MARCH 31, 1999 -
=====================================
DEC 31, 1999 MARCH 31,1999
UNAUDITED
=====================================
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $1,120,810 $1,572,423
U. S. Treasury Bills 1,768,269 1,775,933
Accounts receivable, net of allowance for
doubtful accts.Dec -$60,000/
March-$35,000 958,283 603,248
Inventories 3,133,814 3,522,579
Prepaid expenses 428,189 660,842
Deferred taxes 141,000 132,000
-----------------------------------
TOTAL CURRENT ASSETS 7,550,365 8,267,025
PROPERTY, PLANT & EQUIPMENT:
Land & land improvements 246,841 246,841
Building 617,474 617,670
Machinery & equipment 1,921,320 2,017,084
-----------------------------------
2,785,635 2,881,595
Less accumulated depreciation 2,201,493 2,150,315
-----------------------------------
NET PROPERTY, PLANT & EQUIPMENT 584,142 731,280
-----------------------------------
OTHER ASSETS 510,929 492,149
-----------------------------------
NOTE RECEIVABLE 522,500 510,000
Less deferred portion (522,500) (510,000)
-----------------------------------
0 0
-----------------------------------
TOTAL ASSETS $8,645,436 $9,490,454
===================================
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $90,000 $119,000
Accounts payable 332,219 288,029
Accrued expenses 260,889 297,754
Deposits from customers 70,169 76,745
-----------------------------------
TOTAL CURRENT LIABILITIES 753,277 781,528
-----------------------------------
LONG-TERM DEBT, net of current portion 631,566 649,287
-----------------------------------
<PAGE>
SHAREHOLDERS' EQUITY:
Common stock issued, $.01-2/3 par;
authorized 9,000,000 shares; issued
4,384,161 73,084 73,084
Additional paid-in capital 3,502,092 3,502,092
Retained earnings 5,546,068 6,345,114
----------------------------------
9,121,244 9,920,290
Less shares held in treasury at cost:
401,764 shares Dec '99 and Mar '99 1,860,651 1,860,651
TOTAL SHAREHOLDERS' EQUITY 7,260,593 8,059,639
----------------------------------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $8,645,436 $9,490,454
==================================
<FN>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION> EMCEE BROADCAST PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS AND NINE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited)
==============================================
NINE (9) MONTHS THREE (3) MONTHS
12/31/99 12/31/98 12/31/99 12/31/98
==============================================
<S> <C> <C> <C> <C>
NET SALES $2,935,002 $5,171,345 $1,147,361 $806,551
COST OF PRODUCTS SOLD 2,432,048 3,738,205 934,011 742,439
----------------------------------------------
GROSS PROFIT 502,954 1,433,140 213,350 64,112
----------------------------------------------
OPERATING EXPENSES:
Selling 685,259 875,439 191,283 253,559
General and administrative 778,841 895,820 247,927 336,062
Research and development 283,826 301,993 110,319 94,785
-----------------------------------------------
TOTAL OPERATING EXPENSES 1,747,926 2,073,252 549,529 684,406
-----------------------------------------------
LOSS FROM OPERATIONS (1,244,972) (640,112) (336,179) (620,294)
-----------------------------------------------
OTHER INCOME (EXPENSE), NET:
Interest expense (41,959) (57,511) (15,205) (15,944)
Interest income 123,656 181,353 39,516 53,422
Other 23,129 25,783 8,740 20,241
-----------------------------------------------
TOTAL OTHER INCOME, NET 104,826 149,625 33,051 57,719
-----------------------------------------------
NET LOSS BEFORE TAX BENEFIT (1,140,146) (490,487) (303,128) (562,575)
INCOME TAX BENEFIT (341,100) (170,000) (92,700) (186,000)
-----------------------------------------------
NET LOSS $(799,046) $(320,487) $(210,428) $(376,575)
===============================================
COMMON SHARE AND COMMON
SHARE EQUIVALENT OUTSTANDING
Basic 3,982,397 4,015,457 3,982,397 3,995,723
===============================================
Diluted 3,982,397 4,015,457 3,982,397 3,995,723
===============================================
LOSS PER COMMON SHARE AND
COMMON SHARE EQUIVALENT
Basic $(.20) $(.08) $(.05) $(.09)
===============================================
Diluted $(.20) $(.08) $(.05) $(.09)
===============================================
<FN>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION> EMCEE BROADCAST PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
NINE MONTHS ENDED DECEMBER 31, 1999
(Unaudited)
ADDITIONAL
COMMON STOCK PAID-IN RETAINED TREASURY STOCK
SHARES AMOUNT CAPITAL EARNINGS SHARES AMOUNT TOTAL
=====================================================================
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE
3/31/99
4,384,161 $73,084 $3,502,092 $6,345,114 401,764($1,860,651)$8,059,639
NET LOSS
FOR THE
PERIOD (799,046) (799,046)
---------------------------------------------------------------------
BALANCE
12/31/99
4,384,161 $73,084 $3,502,092 $5,546,068 401,764($1,860,651)$7,260,593
=====================================================================
<FN>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION> EMCEE BROADCAST PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE (9) MONTHS ENDED DECEMBER 31, 1999 AND 1998
(Unaudited)
===========================
NINE (9) MONTHS
12/31/99 12/31/98
============================
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(799,046) $(320,487)
Adjustments:
Depreciation 195,722 204,930
Provision for doubtful accounts 26,986 36,454
(Increase) decrease in:
Accounts receivable (382,021) 612,191
Inventories 388,765 (200,608)
Prepaid expenses 232,653 (307,755)
Deferred taxes (9,000) (22,000)
Other assets (18,780) (109,533)
Increase (decrease) in:
Accounts payable 44,190 (299,759)
Accrued expenses (36,865) (21,213)
Deposits from customers (6,576) 57,659
Accrued income taxes (61,857)
-----------------------------
NET CASH USED IN OPERATING ACTIVITIES (363,972) (431,978)
-----------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property,plant & equipment (48,584) (126,527)
Purchase of US T-Bills (2,327,208) (3,400,000)
Proceeds from maturities of US T-Bills 2,334,872 3,900,751
-----------------------------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES (40,920) 374,224
-----------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Long term debt:
New borrowings 20,141
Payments (66,862) (63,557)
Acquisition of company stock (211,477)
-----------------------------
NET CASH USED IN FINANCING ACTIVITIES (46,721) (275,034)
-----------------------------
NET DECREASE IN CASH (451,613) (332,788)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR 1,572,423 2,529,594
-----------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $1,120,810 $2,196,806
=============================
<PAGE>
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
Cash paid during the period:
Interest Expense $36,934 $52,132
=============================
Income Taxes $ 6,000 $242,560
=============================
<FN>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
</FN>
</TABLE>
<PAGE>
EMCEE BROADCAST PRODUCTS, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The financial information presented as of any date other than March
31, has been prepared from the books and records of the Company without audit.
Financial information as of March 31 has been derived from the audited
financial statements of the Company, but does not include all disclosures
required by generally accepted accounting principles. In the opinion of
management, the accompanying unaudited consolidated condensed financial
statements contain all adjustments, consisting only of normal recurring
adjustments, necessary to present fairly EMCEE Broadcast Products,
Inc. and Subsidiaries' financial position, and the results of their operations
and changes in cash flow for the periods presented.
2. The results of operations for the three month and nine month periods
ended December 31, 1999 and 1998 are not necessarily indicative of the results
to be expected for the full year.
3. At December 31, 1999, cash equivalents included $894,000 invested in
a money market portfolio.
4. INVENTORIES consisted of the following:
December 31,1999 March 31, 1999
----------------------------------------
(UNAUDITED)
FINISHED GOODS $ 181,000 $ 266,000
WORK-IN-PROCESS 664,000 686,000
RAW MATERIALS 919,000 1,008,000
MANUFACTURED COMPONENTS 1,369,814 1,562,579
--------------------------------------
$3,133,814 $3,522,579
======================================
Inventories are stated at the lower of standard cost, which
approximates current actual cost (on a first-in, first-out basis) or market
(net realizable value).
5. EARNINGS PER SHARE. Basic income per share is computed by dividing
earnings applicable to common shareholders by the weighted average number of
common shares outstanding. Diluted income per share is similar to basic income
per share except that the weighted average number of common shares outstanding
is increased to include the number of additional common shares that would have
been outstanding if the dilutive potential common shares had been issued. The
number of options and warrants that could potentially dilute basic earnings
(loss) per share were 315,200 at December 31,1999 and 1998.
<PAGE> EMCEE BROADCAST PRODUCTS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF THE FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Net sales for the quarter ended December 31, 1999 of $1,147,000 was an
increase of 42% over the quarter ended December 31, 1998. Net sales for the
nine months ended December 31, 1999 totaled $2,935,000 or 43% below net sales
for the same period one year ago.
Although product demand is still decreased from past years, the increase in
sales quarter to quarter for fiscal 2000 is an indication that the demand is
improving, especially in the foreign market.
Foreign sales for the quarter ended December 31, 1999 totaled $710,000
compared to $539,000 for the same period one year ago. Sales for the nine
months ended December 31, 1999 of $1,528,000 was $1,033,000 less than the nine
months ended December 31, 1998.
A comparison of export shipments by region is as follows:
<TABLE>
<CAPTION>
Quarter Nine Months
ending December 31 ending December 31
Region 1999* 1998* 1999* 1998*
(000's omitted)
==============================================================
<S> <C> <C> <C> <C>
Asia/Pacific Rim 78 145 353 1,002
Middle East 193 -- 393 352
South America 391 7 533 162
North America (7) 186 20 373
Central America 5 6 24 91
Caribbean 24 134 115 219
Europe 32 89 55 311
Africa -- 40 -- 45
Other (6) (68) 35 6
==================================
710 539 1,528 2,561
<FN>
*Based on customers with $2,500 or more of sales
</FN>
</TABLE>
Domestic sales for the quarter ended December 31, 1999 totaled $437,000 and
increased nine month domestic sales to $1,407,000 compared to $2,610,000 for
the first nine months ended December 31, 1998 as the demand for Multichannel
Multipoint Distribution Services (MMDS) has virtually halted.
Management is confident that new products for high definition television
(HDTV) and high speed Internet service that have been developed will provide
additional sales in fiscal 2001. The initial sale of an HDTV transmitter was
transacted in September 1999 and additional sales are anticipated as
television operators conform to Federal Communications Commission (FCC)
regulations requiring high definition transmitting by 2003.
On February 8, 2000, the Company announced it has signed a Letter of Intent to
acquire the assets of Advanced Broadcast Systems, Inc. (ABS), a privately held
corporation that designs, manufactures and distributes high and medium power
<PAGE>
television equipment for UHF broadcast markets. The acquisition is conditioned
upon the parties' entering into and complying with a mutually acceptable final
written definitive Purchase Agreement. The acquisition is expected
to be funded from current working capital and the use of a certain amount of
stock held by the Company as Treasury stock.
Gross profit totaled $213,000 for the quarter ended December 31, 1999 compared
to $64,000 for the quarter ended December 31, 1998 as the latter quarter's low
volume affected the margins. Gross profit for the nine months ended December
31, 1999 totaled $503,000 or 17% of net sales compared to $1,433,000 or 28% to
sales for the nine months ended December 31, 1998. Although the decrease in
volume was the primary reason for the decrease in comparable gross profit, a
higher percent of original equipment manufactured by others (O.E.M.) of 24%
for 1999 compared to 15% for 1998 also contributed to the decrease, as profit
margins are less than EMCEE manufactured products.
Total operating expenses of $550,000 for the third quarter of fiscal 2000 were
20% less than the like period one year ago. Total operating expense for the
nine months ending December 31, 1999 was $1,748,000 or 16% less than the nine
month period one year ago as cost containment measures initiated in fiscal
1999 have continued.
Selling expenses included in total operating expenses decreased $62,000 for
the quarter ended December 31, 1999 compared to the quarter ended December 31,
1998 and decreased $190,000 for the respective nine month periods ended
December 31, 1999 and 1998. The major reduction for the quarter and nine
month periods, as could be expected, was in commissions. Additional
reductions were experienced in salaries, shows and advertising.
General and administrative expenses of $248,000 for the quarter ended December
31, 1999 increased general and administrative expenses to $779,000 for the
nine month period ended December 31, 1999 compared to $896,000 for the first
nine months one year ago. Expenses decreased primarily in salaries and
salary related expenses and in legal expenses as an expense of approximately
$60,000 occurred in the prior period relating to an evaluation of the Company
and a proposed merger with a third party. A determination was made by
management and consultants that the offer was inadequate.
Research and Development expense for the quarter and nine months ended
December 31, 1999 totaled $110,000 and $284,000 respectively compared to
$95,000 and $302,000 for the same two periods one year ago. Although the nine
months expense of fiscal 2000 is 6% less than the same period of fiscal 1999,
the Company is maintaining research and development expense at the same level
as previous years to remain competitive in the MMDS and HDTV industries.
Although sales for the quarter ended December 31, 1999 improved in comparison
to the quarter ended December 31, 1998 and increased compared to the first and
second quarters of the current fiscal year, the volume was not sufficient and
a loss from operations of $336,000 was sustained for that period and increased
the loss from operations to $1,245,000 for the nine month period
ended December 31, 1999 compared to a loss from operations of $640,000 for
the nine months ended December 31, 1998.
Interest income of $40,000 for the quarter and $124,000 for the nine month
period ending December 31, 1999 came primarily from money market and Treasury
Bill investments. This amount is less than the amount of $181,000 for the
first nine months ended December 31, 1998 as cash has been used in the
Company's operations.
<PAGE>
Interest expense for the quarter ended December 31, 1999 was $15,000 and
totaled $42,000 for the nine months of fiscal 2000 compared to $58,000 for the
same period one year ago. The decrease was due to the scheduled payment of
long term debt and included in the amount for the nine months ended December
31, 1998 was a payment to the Internal Revenue Service of
approximately $8,000.
Other income derived primarily from rental of equipment totaled $23,000 for
the first nine months ended December 31, 1999, a slight decrease from the
amount of $26,000 for the same period one year ago.
Total other income, net of $33,000 for the quarter and $105,000 for the nine
month period of fiscal 2000 reduced the loss to a net loss before tax benefit
to $303,000 (quarter) and $1,140,000 (year to date). Federal income tax
benefits reduced these losses to $210,000 for the quarter and $799,000 for the
first nine months ended December 31, 1999 respectively. The loss per share of
stock outstanding equals .05 cents for the quarter and .20 cents for the first
three quarters of fiscal 2000. The comparable amounts for the one year period
were net losses of $377,000 or .09 cents per share for the quarter and
$320,000 or .08 cents per share for the first three quarters ended December
31, 1998.
Cash and cash equivalents including investments in U.S. Treasury Bills totaled
$2,889,000 as of December 31, 1999, a reduction of $459,000 compared to March
31, 1999 as cash was used in ongoing operations for the Company.
Accounts receivable, net of reserve for doubtful accounts increased from
$603,000 as of March 31, 1999 to $958,000 as of December 31, 1999 due to the
increase in shipments for the period, especially in the month of December
1999.
Inventories decreased from $3,523,000 as of March 31, 1999 to $3,134,000 as
of December 31, 1999 due to the same increase in sales volume. Accounts
payable increased by $44,000 for the same period as inventory replacements
were purchased.
Prepaid expenses, which include prepaid taxes of $348,000 as of December 31,
1999 decreased $232,000 compared to March 31, 1999. Approximately $367,000 of
a tax refund received during this nine month period was partially offset by
tax benefits accrued for the same time period. Prepaid expense, which includes
deposits on shows decreased approximately $20,000 on December 31, 1999
compared to March 31, 1999 as the payments were expensed.
Deferred taxes increased from $132,000 as of March 31, 1999 to $141,000 as of
December 31, 1999 in recognition of timing differences between current and
future tax liabilities.
Current portion of long term debt was reduced from $119,000 as of the
beginning of fiscal 2000 to $90,000 as of December 31, 1999 in recognition of
the reduction of long term debt including the current portion from $768,000 as
of March 31, 1999 to $722,000 as of December 31, 1999, the latter including an
additional borrowing of $21,000 as a new vehicle was financed.
The Registrant has a $2,000,000 line of credit available from its primary
lending institution. The Company believes its working capital, coupled with
cash flows from operations will be sufficient to fund anticipated working
capital requirements for fiscal 2000.
<PAGE>
Net property, plant and equipment totaled $584,000 as of December 31, 1999, a
reduction of $147,000 from March 31,1999 as depreciation expense of $196,000
exceeded capital additions of $49,000.
Accrued expenses, which totaled $298,000 as of March 31, 1999, decreased
$37,000 due primarily to changes in salary and salaried related accruals.
Deposits from customers totaled $70,000 as of December 31, 1999 or a decrease
of $7,000 from March 31, 1999 as the increased shipments reduced these
deposits.
Other assets equaled $510,000 as of December 31, 1999 and consists primarily
of the Registrant's investment in two limited liability corporations (LLC's)
that are involved in high speed Internet service. Also included in this
category is a note receivable plus interest in the amount of $113,000 from
a principal of the aforementioned investments.
The Registrant is cognizant of the recent increase of both the trading
activity and the trading price of the Company's stock (Nasdaq: ECIN). The
Company believes this has occurred because of investors interest in the
expansion of Broadband Wireless Access (BWA) for data and, in the
future, telephony, for which the Company manufactures Radio Frequency (RF)
products as components for complete wireless systems in the MMDS (2.5GHz)
spectrum.
The Company has now entered into the fourth quarter of Year 2000 with minimal
software issues. Minor issues that have occurred have been successfully
resolved.
The backlog of unsold orders totaled $752,000 as of December 31, 1999 compared
to $239,000 as of the beginning of the current fiscal year and $1,172,000 as
of December 31, 1998. Management is confident that the currency and economic
problems in the export market have abated and that new products in the
domestic market will increase sales for the fourth quarter of 2000 and
fiscal 2001.
Employment as of December 31, 1999 was 45 employees, including 2 part times
employees which is the same amount as of March 31, 1999 but less than the 66
total employees as of December 31,
1998. It is anticipated that employees will be added as orders improve.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
Any statements contained in this report which are not historical facts are
forward looking statements; and, therefore, many important factors could cause
actual results to differ materially from those in the forward looking
statements. Such factors include, but are not limited to, changes
(legislative, regulatory and otherwise) in the MMDS or LPTV industry, demand
for the Company's products (both domestically and internationally), the
development of competitive products, competitive pricing, the timing of
foreign shipments, market acceptance of new product introductions (including,
but not limited to, the Company's digital, high speed Internet, telephony and
HDTV products), technological changes, economic conditions, litigation
and other factors, risks and uncertainties identified in the Company's
Securities and Exchange Commission filings. Copies of the Company's most
recent 10-KSB and this 10-QSB are available upon request.
<PAGE> PART II. OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS
There is no information relevant to the Registrant which must be disclosed
under this item.
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 thereto duly authorized.
EMCEE BROADCAST PRODUCTS, INC.
Date: February 10, 2000 /s/ JAMES L. DeSTEFANO
------------------------
JAMES L. DeSTEFANO
President/CEO
Date: February 10, 2000 /s/ ALLAN J. HARDING
-------------------------
ALLAN J. HARDING
Vice President-Finance
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000032312
<NAME> EMCEE BROADCAST PRODUCTS,INC.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-START> APR-01-1999
<PERIOD-END> DEC-31-1999
<CASH> 1,120,810
<SECURITIES> 1,768,269
<RECEIVABLES> 1,018,283
<ALLOWANCES> 60,000
<INVENTORY> 3,133,814
<CURRENT-ASSETS> 7,550,365
<PP&E> 2,785,635
<DEPRECIATION> 2,201,493
<TOTAL-ASSETS> 8,645,436
<CURRENT-LIABILITIES> 753,277
<BONDS> 0
<COMMON> 73,084
0
0
<OTHER-SE> 7,187,509
<TOTAL-LIABILITY-AND-EQUITY> 8,645,436
<SALES> 2,935,002
<TOTAL-REVENUES> 2,935,002
<CGS> 2,432,048
<TOTAL-COSTS> 4,179,974
<OTHER-EXPENSES> (104,826)
<LOSS-PROVISION> 26,986
<INTEREST-EXPENSE> 41,959
<INCOME-PRETAX> (1,140,146)
<INCOME-TAX> (341,100)
<INCOME-CONTINUING> (799,046)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (799,046)
<EPS-BASIC> (.20)
<EPS-DILUTED> (.20)
</TABLE>
