United States
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
[ X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the thirteen-week period ended: March 27, 1998
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: 0-10726
C-COR ELECTRONICS, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania 24-0811591
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
60 Decibel Road, State College, PA 16801
(Address of principal executive offices) (Zip Code)
(814) 238-2461
(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
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $.10 Par Value - 9,658,069 shares as of May 05, 1998.
<PAGE>
INDEX
C-COR ELECTRONICS, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited).
Condensed consolidated balance sheets -- June 27, 1997, and
March 27, 1998.
Condensed consolidated statements of operations -- thirteen weeks
ended March 27, 1998, and March 28, 1997; thirty-nine weeks
ended March 27, 1998, and March 28, 1997.
Condensed consolidated statements of cash flows -- thirty-nine
weeks ended March 27, 1998, and March 28, 1997.
Notes to condensed consolidated financial statements --
March 27, 1998.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 6. Exhibits and Reports on Form 8-K.
<PAGE>
<TABLE>
Item 1. Financial Statements
<CAPTION>
C-COR ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
March 27, June 27,
ASSETS 1998 1997
----------- ----------
(Unaudited) (Note)
(000's omitted)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 425 $ 452
Marketable securities 351 359
Accounts receivable 20,935 19,299
----------- ----------
21,711 20,110
----------- ----------
Inventories:
Raw materials 15,410 14,358
Work-in-process 2,457 3,346
Finished goods 3,253 1,436
----------- ----------
Total inventories 21,120 19,140
----------- ----------
Deferred taxes 3,278 2,616
Other current assets 1,559 1,893
----------- ----------
TOTAL CURRENT ASSETS 47,668 43,759
----------- ----------
PROPERTY, PLANT, AND EQUIPMENT, NET 27,983 25,060
INTANGIBLE ASSETS AND OTHER LONG-TERM ASSETS, NET 2,376 785
Net noncurrent assets of discontinued operations 0 1,515
----------- ----------
TOTAL ASSETS $ 78,027 $ 71,119
=========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 18,854 $ 15,461
Line-of-credit 1,677 3,466
Current portion of long-term debt 849 834
Net current liabilities of discontinued operations 933 1,253
----------- ----------
TOTAL CURRENT LIABILITIES 22,313 21,014
----------- ----------
LONG-TERM DEBT, less current portion 5,728 6,367
DEFERRED TAXES 1,377 1,311
OTHER LONG-TERM LIABILITIES 1,021 749
----------- ----------
TOTAL LIABILITIES 30,439 29,441
----------- ----------
SHAREHOLDERS' EQUITY
Common Stock, $.10 par; authorized shares
24,000,000; issued shares of 9,656,428 on 03/27/98,
and 9,633,435 on 06/27/97. 966 963
Additional paid-in capital 20,145 19,963
Retained earnings 32,339 26,632
Translation adjustment (87) (101)
Net unrealized loss on marketable securities (10) (14)
Treasury Stock (5,765) (5,765)
----------- ----------
TOTAL SHAREHOLDERS' EQUITY 47,588 41,678
----------- ----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $ 78,027 $ 71,119
=========== ==========
<FN>
Note: The balance sheet at June 27, 1997, has been derived from audited
financial statements at that date.
See notes to condensed consolidated financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
C-COR ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<CAPTION>
Thirteen Weeks Ended Thirty-Nine Weeks Ended
March 27, March 28, March 27, March 28,
1998 1997 1998 1997
----------- ----------- ----------- -----------
(000's omitted, except per share data)
<S> <C> <C> <C> <C>
NET SALES $ 40,248 $ 32,801 $ 114,498 $ 95,346
----------- ----------- ----------- -----------
COSTS AND EXPENSES:
Cost of sales 31,574 26,367 89,171 75,733
Selling, general and administrative
expenses 3,948 3,992 11,275 11,225
Research and product development costs 1,877 1,477 5,340 4,258
Interest expense 115 59 268 175
Investment income (7) (31) (19) (96)
Foreign exchange loss (gain) (33) (10) 111 (37)
Other expense (income) (15) (105) 273 (60)
----------- ----------- ----------- -----------
37,459 31,749 106,419 91,198
----------- ----------- ----------- -----------
INCOME FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 2,789 1,052 8,079 4,148
INCOME TAX EXPENSE (BENEFIT) 912 (294) 2,735 706
----------- ----------- ----------- -----------
INCOME FROM CONTINUING OPERATIONS 1,877 1,346 5,344 3,442
DISCONTINUED OPERATIONS:
Loss from operations of discontinued
business segment, net of applicable
income tax benefit 0 (1,182) 0 (2,184)
Gain on disposal of discontinued
business segment, less applicable
income tax expense 363 0 363 0
----------- ----------- ----------- -----------
NET INCOME $ 2,240 $ 164 $ 5,707 $ 1,258
=========== =========== =========== ===========
NET INCOME (LOSS) PER SHARE - (BASIC):
Continuing operations $ 0.20 $ 0.14 $ 0.58 $ 0.36
Discontinued operations 0.04 (0.12) 0.04 (0.23)
----------- ----------- ----------- -----------
NET INCOME PER SHARE $ 0.24 $ 0.02 $ 0.62 $ 0.13
=========== =========== =========== ===========
NET INCOME (LOSS) PER SHARE - (ASSUMING DILUTION):
Continuing operations $ 0.20 $ 0.14 $ 0.57 $ 0.35
Discontinued operations 0.04 (0.12) 0.04 (0.22)
----------- ----------- ----------- -----------
NET INCOME PER SHARE $ 0.24 $ 0.02 $ 0.61 $ 0.13
=========== =========== =========== ===========
<FN>
See notes to condensed consolidated financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
C-COR ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Thirty-Nine Weeks Ended
March 27, March 28,
1998 1997
----------- -----------
(000's omitted)
<S> <C> <C>
OPERATING ACTIVITIES
Net Income $ 5,707 $ 1,258
Adjustments to reconcile net income to net cash
and cash equivalents provided by operating
activities:
Depreciation and amortization 4,682 3,924
Gain on disposal of discontinued operations,
net of tax expense (363) -
Provision for deferred retirement salary plan 272 249
Loss on sales of property, plant and equipment - 25
Changes in operating assets and liabilities:
Accounts receivable (1,636) 3,762
Inventories (1,980) (2,374)
Other assets (1,257) (189)
Accounts payable 941 1,631
Accrued liabilities 2,452 (1,624)
Deferred income taxes (599) 331
Discontinued operations - working capital changes
and noncash charges 1,536 (506)
NET CASH AND CASH EQUIVALENTS PROVIDED BY ----------- -----------
OPERATING ACTIVITIES 9,755 6,487
----------- -----------
INVESTING ACTIVITIES
Purchase of property, plant and equipment (7,591) (4,408)
Purchase of marketable securities - (200)
Proceeds from sale of marketable securities 15 205
Proceeds from sales of property, plant, and equipment - 12
Investing activities of discontinued operations 22 (648)
NET CASH AND CASH EQUIVALENTS ----------- -----------
USED IN INVESTING ACTIVITIES (7,554) (5,039)
----------- -----------
FINANCING ACTIVITIES
Payment of debt and capital lease obligations (624) (624)
Proceeds from line-of-credit 44,961 4,240
Payment of line-of-credit (46,750) (2,579)
Tax benefit deriving from exercise and
sale of stock option shares - 71
Issue common stock to employee stock purchase plan 40 78
Proceeds from exercise of stock options 145 148
Purchase of treasury stock - (3,062)
NET CASH AND CASH EQUIVALENTS USED IN ----------- -----------
FINANCING ACTIVITIES (2,228) (1,728)
----------- -----------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (27) (280)
Cash and cash equivalents at beginning of period 452 1,474
----------- -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 425 $ 1,194
=========== ===========
<FN>
See notes to condensed consolidated financial statements.
</FN>
</TABLE>
<PAGE>
C-COR ELECTRONICS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying, unaudited, condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information, and in the opinion of management, contain all
adjustments (consisting only of normal, recurring adjustments) necessary to
fairly present the Company's financial position as of March 27, 1998, and the
results of its operations for the thirteen-week and thirty-nine-week periods
then ended. Operating results for the thirteen-week and thirty-nine-week periods
are not necessarily indicative of the results that may be expected for the year
ending June 26, 1998. For further information, refer to financial statements and
footnotes thereto included in the Company's annual report on Form 10-K for the
year ended June 27, 1997.
2. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
<TABLE>
Accounts payable and accrued liabilities consist of:
<CAPTION>
March 27, June 27,
1998 1997
---------------- ----------------
(000's omitted)
<S> <C> <C>
Accounts payable $ 9,577 $ 8,636
Accrued incentive plan expense 1,195 0
Accrued vacation expense 1,414 1,358
Accrued salary expense 1,421 569
Accrued payroll and sales tax expense 822 555
Accrued warranty expense 2,304 2,185
Accrued workers compensation
self-insurance expense 1,582 1,162
Accrued other 539 996
---------------- ----------------
$18,854 $15,461
================ ================
</TABLE>
<PAGE>
===============================================================================
Item 2. Management's Discussion and Analysis of Financial Conditions and Results
of Operations
General
The following discussion addresses the financial condition of the Company as of
March 27, 1998, and the results of operations for the thirteen-week and
thirty-nine-week periods ended March 27, 1998, compared with the corresponding
periods of the prior year. This discussion should be read in conjunction with
the Management's Discussion and Analysis section for the fiscal year ended June
27, 1997, included in the Company's Annual Report on Form 10-K.
Disclosure Regarding Forward-Looking Statements
Some of the information presented in this report constitutes forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995, including, without limitation, statements concerning the continuation of
increased domestic spending for network upgrades, the continuation of
competitive pricing pressures, anticipated new product development initiatives,
and the continued availability of capital resources. Although the Company
believes its expectations are based on reasonable assumptions within the bounds
of its knowledge of its business and operations, there can be no assurance that
actual results will not differ materially from its expectations. Factors which
could cause actual results to differ from expectations include the timing of
orders received from customers, the gain or loss of significant customers,
changes in the mix of products sold, new product development activities, changes
in the cost and availability of parts and supplies, fluctuations in warranty
costs, economic conditions affecting domestic and international markets,
regulatory changes affecting the telecommunications industry, in general, and
the Company's operations, in particular, competition and changes in domestic and
international demand for the Company's products, and other factors which may
impact operations and manufacturing. For additional information concerning these
and other important factors which may cause the Company's actual results to
differ materially from expectations and underlying assumptions, please refer to
the Company's reports filed on Form 10-K and other reports filed with the
Securities and Exchange Commission.
Results of Operations
Net sales for the thirteen-week period ended March 27, 1998, were $40,248,000,
an increase of 23% from the prior year's sales of $32,801,000 for the
corresponding period. Net sales for the thirty-nine-week period ended March 27,
1998, were $114,498,000, an increase of 20% from sales of $95,346,000 for the
corresponding period of the prior year. The increases in sales for the quarter
and year-to-date periods were primarily attributable to increased demand for RF
and AM FO distribution products by domestic and international customers in the
cable television (CATV) industry.
Domestic sales, as a percentage of total consolidated sales, were 83% for the
thirteen-week period ended March 27, 1998, and 75% for the thirty-nine week
period ended March 27, 1998. This compares to 82% and 79% for the corresponding
periods of the prior year. Sales to domestic customers increased 23% during the
quarter ended March 27, 1998, and 14% for the period year-to-date, compared to
the corresponding periods of the prior year. The Company believes that many
domestic CATV operators have continued to increase their capital spending, and
as a result, the Company has experienced increased demand for hybrid/fiber coax
(HFC) distribution equipment. The Company believes the increased capital
spending has been driven by customer demands for improved services, affecting
not only voice and video requirements, but also demand for high-speed data
transmission. This increased demand by CATV operators for improved services has
translated into an increased need for higher bandwidth products in order to
support these services. In the domestic CATV market, certain CATV operators are
beginning upgrade activities, while others are in various stages of completion.
As a result, demand patterns can vary depending on the distinct requirements for
each customer.
International sales, as a percentage of total consolidated sales, were 17% for
the thirteen-week period ended March 27, 1998, and 25% for the thirty-nine-week
period ended March 27, 1998. This compares to 18% and 21% for the corresponding
periods of the prior year. Sales to international customers increased 19% during
the quarter ended March 27, 1998, and 43% for the period year-to-date, compared
to the corresponding periods of the prior year. The increase for the quarter
resulted primarily from increased demand in Canada, Europe and Latin America.
The increase, year-to-date, derives primarily from increased demand in Canada,
Asia, and Europe. Order levels from international customers, primarily in Asia
and Canada, declined during the quarter ending March 27, 1998, relative to the
Company's expectations. The Company continues to monitor its business activities
in the Asian market and the effect that current economic conditions may have on
present and future order trends. The international markets continue to represent
distinct markets for CATV equipment, and, in general, demand can be highly
variable.
The Company's backlog of sales orders at March 27, 1998, was approximately $27.2
million, down from approximately $36.8 million at the end of the previous
quarter ended December 27, 1997. The Company booked approximately $30.6 million
of new sales orders during the quarter ended March 27, 1998, compared to $36.1
million of new sales orders booked during the second quarter of the current
fiscal year. Lower order rates can be attributed primarily to weakness in the
international markets during the quarter, primarily in Asia and Canada. In
addition, the Company believes recent trends indicate that order patterns have
changed, from longer blanket orders, to shorter lead-time orders.
Gross profit percentage for the thirteen-week period ended March 27, 1998, was
21.6% versus 19.6% for the corresponding period of the prior year. Gross profit
percentage for the thirty-nine-week period ended March 27, 1998, was 22.1%
versus 20.6% for the corresponding period the prior year. The increase in the
gross profit margin for the quarter and year-to-date periods is primarily a
result of changes in customer and product mix, and efficiencies resulting from
higher production volumes. Although pricing pressures continue, the Company has
undertaken initiatives to lower manufacturing costs by improving manufacturing
processes in order to enhance efficiency and productivity, and redesigning
products to enhance manufacturability and reduce material costs. The Company has
begun manufacturing the power supply component of its RF amplifier products in
Tijuana, Mexico. The Company continues to ramp up production at this new
manufacturing facility, and anticipates the complete transfer of production
of this component by the end of its current fiscal year.
Selling, general and administrative expenses for the thirteen-week period ended
March 27, 1998, were $3,948,000, compared to $3,992,000 for the same period of
the prior year. Selling, general and administrative expenses for the
thirty-nine-week period ended March 27, 1998, were $11,275,000, compared to
$11,225,000 for the same period of the prior year. Selling, general and
administrative expenses declined as a percentage of net sales for the quarter
and year-to-date periods, compared to the same periods the prior year,
reflecting the Company's continued efforts to control expenditures.
Research and product development costs for the thirteen-week period ended March
27, 1998, were $1,877,000, an increase of 27% over the prior year's total of
$1,477,000 for the corresponding period. Research and product development costs
for the thirty-nine-week period ended March 27, 1998, were $5,340,000, an
increase of 25% over the prior year's total of $4,258,000 for the same period.
The increase for the quarter and year-to-date periods is primarily a result of
higher personnel costs and additional expenditures for AM fiber optics and
network management product development. The Company recently announced
Navicor(TM), an entire family of modular AM fiber optic nodes and optical lid
upgrades, as well as CNM(TM) System 2, a new generation of its Cable Network
Management (CNM) platform. Both products are currently in development.
Anticipated new product development initiatives are expected to increase
research and product development expenses in future periods.
Interest expense for the thirteen-week period ended March 27, 1998, was
$115,000, an increase of 95% over the prior year's total of $59,000 for the same
period. Interest expense for the thirty-nine-week period ended March 27, 1998,
was $268,000, an increase of 53% over the prior year's total of $175,000 for the
same period. The increase for the quarter and year-to-date periods is primarily
a result of higher borrowings on the Company's line-of-credit to support higher
production levels.
The effective income tax rate for the thirteen-week period ended March 27, 1998,
was 32.7%. This compares to an effective income tax benefit rate of 27.9% for
the corresponding period the prior year. The effective income tax rate for the
thirty-nine-week period ended March 27, 1998, was 33.8%. This compares to an
effective income tax rate of 17.0% for the corresponding period the prior year.
The higher effective tax rates for the current quarter and year-to-date periods,
compared to the same periods the prior year, is a result of a tax benefit of
approximately $593,000 that was recorded during the third quarter of the prior
fiscal year. The tax benefit resulted from reassessment of the Company's foreign
sales transactions for the prior three years and optimization of the tax
benefits derived from its Foreign Sales Corporation (FSC).
Income from continuing operations for the thirteen-week period ended March 27,
1998, was $1,877,000 or $0.20 per share on a diluted basis, versus $1,346,000 or
$0.14 per share on a diluted basis for the same period of the prior year. Income
from continuing operations for the thirty-nine-week period ended March 27, 1998,
was $5,344,000 or $0.57 per share on a diluted basis, versus $3,442,000 or $0.35
per share on a diluted basis for the same period of the prior year.
Results of Discontinued Operations
On July 10, 1997, the Company announced the discontinuation of its digital fiber
optic business segment located in Fremont, California, in a phase-down process
expected to span nine months. Anticipated wind-down costs were recorded as a
loss on disposal of the discontinued segment in the results of discontinued
operations for the Company's prior fiscal year ended June 27, 1997. The Company
substantially completed the wind-down of this operation as of the quarter ended
March 27, 1998. A gain on disposal of the discontinued business segment of
$363,000, net of applicable tax expense of $188,000, was recorded during the
thirteen-week period ended March 27, 1998, equating to $0.04 per share on a
diluted basis for the current quarter and year-to-date periods. The gain
represents an adjustment of the estimated loss on the disposal of the business
segment, previously reported in the fourth quarter of the Company's fiscal year
1997. The gain derived primarily from lower than anticipated operating costs
from the measurement date to the disposal date, and higher than anticipated
proceeds associated with the disposal of assets, primarily inventory. Losses
recorded from operations of the discontinued business segment for the quarter
and year-to-date periods of the prior fiscal year, were ($1,182,000), net of
applicable tax benefit of ($578,000), or ($0.12) per share on a diluted basis
and ($2,184,000), net of applicable tax benefit of ($1,060,000), or ($0.22) per
share on a diluted basis, respectively.
Liquidity and Capital Resources
The Company's current ratio at March 27, 1998, was 2.1, as compared to 2.1 at
June 27, 1997. The Company's cash and cash equivalents decreased $27,000 during
the first 9 months of fiscal year 1998. Net cash provided by operating
activities generated $9,755,000, after working capital changes of $1,536,000,
related to discontinued operations.
The Company's working capital increased $2,610,000 since June 27, 1997.
Inventory levels increased from $19,140,000 to $21,120,000, due to purchase
requirements to meet current and anticipated volume levels. Accounts payable and
accrued liabilities increased from $15,461,000 at June 27, 1997, to $18,854,000
as of March 27, 1998, due primarily to increased accounts payable resulting from
higher inventory purchases and expense accrued under the Company's profit
incentive plan.
Cash used in investing activities totaled $7,554,000 as of March 27, 1998,
compared to $5,039,000 for the corresponding period the prior year. Investing
activities consisted primarily of purchases and replacement of property, plant
and equipment.
Cash used in financing activities totaled $2,228,000 as of March 27, 1998,
compared to $1,728,000 for the corresponding period the prior year. Financing
activities consisted primarily of borrowings and payments on the Company's
line-of-credit.
On September 4, 1997, the Company announced a stock repurchase program to
repurchase up to 500,000 shares of C-COR common stock. The shares may be
purchased from time to time in the open market through block or privately
negotiated transactions, or otherwise. The Company intends to use its currently
available capital resources to fund the purchases. The repurchased stock is
expected to be held by the Company as treasury stock to be used to meet the
Company's obligations under its present and future stock option plans and for
other corporate purposes. As of March 27, 1998, no shares had been repurchased
under this stock repurchase program.
The Company maintains a line-of-credit with a bank pursuant to which it may
borrow the lesser of $23,000,000 or a percentage of eligible accounts receivable
and inventory. Borrowings under the line-of-credit are secured by accounts
receivable and inventory. The line-of-credit is committed through October 30,
1998, at which time the Company anticipates renewal. The Company had borrowings
on the line-of-credit as of March 27, 1998, of $1,677,000. This compares to an
outstanding balance of $3,466,000 at the end of the Company's fiscal year ended
June 27, 1997. Based upon the Company's analysis of eligible accounts receivable
and inventory, an additional $19,022,000 was available under the line-of-credit
at March 27, 1998.
Management believes that operating cash flow, as well as the line-of-credit,
will be adequate to provide for all cash requirements for the foreseeable
future, subject to requirements that additional growth or strategic development
might dictate.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
As previously reported in the Company's Annual Report on Form 10-K for the
fiscal year ended June 27, 1997, on or about March 31, 1995, certain
shareholders of the Company filed a complaint in the United States District
Court for the Eastern District of Pennsylvania against the Company and its Chief
Executive Officer alleging violation of Section 10(b) and 20(a) of the
Securities Exchange Act of 1934 and common law. On September 27, 1997, a
tentative settlement was reached with respect to this litigation. On April 20,
1998, the court preliminarily approved the settlement and scheduled a final
hearing to approve the settlement to be held on July 7, 1998. The settlement
amount was recorded in the financial statements during the first quarter of the
Company's current fiscal year.
Item 6. Exhibits and Reports on Form 8-K.
The following exhibits are included herein:
(11) Statement re: computation of earnings per share
(27) Financial Data Schedule
Reports on Form 8-K filed during the reporting period:
None
Reports on Form 8-K filed subsequent to the reporting period:
On March 30, 1998, the Registrant filed a Form 8-K with the Securities and
Exchange Commission reporting that Scott C. Chandler had resigned as the
Registrant's President and Chief Executive Officer and as a Director of C-COR
Electronics, Inc.
<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.
C-COR ELECTRONICS, INC.
(Registrant)
Date: May 11, 1998 /s/ CHRIS A. MILLER
----------------------- --------------------------
C.P.A., Vice President-Finance
Secretary and Treasurer
(Principal Financial Officer)
Date: May 11, 1998 /s/ JOSEPH E. ZAVACKY
----------------------- ---------------------------
Controller and Assistant Secretary
(Principal Accounting Officer)
<TABLE>
<CAPTION>
Thirteen Weeks Ended Thirty-nine Weeks Ended
March 27, March 28, March 27, March 28,
1998 1997 1998 1997
------------ ------------ ------------ ------------
(000's omitted, except per share data)
<S> <C> <C> <C> <C>
Basic:
Weighted average shares outstanding 9,154 9,548 9,147 9,590
------------ ------------ ------------ ------------
Total 9,154 9,548 9,147 9,590
Income from continuing operations $ 1,877 $ 1,346 $ 5,344 $ 3,442
Gain (loss) from discontinued
operations 363 (1,182) 363 (2,184)
------------ ------------ ------------ ------------
Net income $ 2,240 $ 164 $ 5,707 $ 1,258
------------ ------------ ------------ ------------
Net income (loss) per share
Continuing operations $ 0.20 $ 0.14 $ 0.58 $ 0.36
Discontinued operations 0.04 (0.12) 0.04 (0.23)
------------ ------------ ------------ ------------
Net income per share $ 0.24 $ 0.02 $ 0.62 $ 0.13
------------ ------------ ------------ ------------
Diluted:
Weighted average shares outstanding 9,154 9,548 9,147 9,590
Weighted average common stock
equivalents 266 158 244 157
------------ ------------ ------------ ------------
Total 9,420 9,706 9,391 9,747
Income from continuing operations $ 1,877 $ 1,346 $ 5,344 $ 3,442
Gain (loss) from discontinued
operations 363 (1,182) 363 (2,184)
------------ ------------ ------------ ------------
Net income $ 2,240 $ 164 $ 5,707 $ 1,258
------------ ------------ ------------ ------------
Net income (loss) per share
Continuing operations $ 0.20 $ 0.14 $ 0.57 $ 0.35
Discontinued operations 0.04 (0.12) 0.04 (0.22)
------------ ------------ ------------ ------------
Net income per share $ 0.24 $ 0.02 $ 0.61 $ 0.13
------------ ------------ ------------ ------------
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-26-1998
<PERIOD-START> JUN-28-1997
<PERIOD-END> MAR-27-1998
<CASH> 425
<SECURITIES> 351
<RECEIVABLES> 21,558
<ALLOWANCES> 623
<INVENTORY> 21,120
<CURRENT-ASSETS> 47,668
<PP&E> 54,323
<DEPRECIATION> 26,340
<TOTAL-ASSETS> 78,027
<CURRENT-LIABILITIES> 22,313
<BONDS> 0
0
0
<COMMON> 966
<OTHER-SE> 46,622
<TOTAL-LIABILITY-AND-EQUITY> 78,027
<SALES> 40,248
<TOTAL-REVENUES> 40,248
<CGS> 31,574
<TOTAL-COSTS> 5,825
<OTHER-EXPENSES> (55)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 115
<INCOME-PRETAX> 2,789
<INCOME-TAX> 912
<INCOME-CONTINUING> 1,877
<DISCONTINUED> (363)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,240
<EPS-PRIMARY> .24
<EPS-DILUTED> .24
</TABLE>
