<PAGE>
===============================================================================
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------
FORM 10-Q
------------------
(MARK ONE)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934.
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1997
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 0-21918
FLIR SYSTEMS, INC.
(Exact name of Registrant as specified in its charter)
OREGON 93-0708501
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
16505 S.W. 72ND AVENUE, PORTLAND, OREGON 97224
(Address of principal executive offices) (Zip Code)
(503) 684-3731
(Registrant's telephone number, including area code)
------------------
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
At June 30, 1997, there were 5,507,774 shares of the Registrant's common stock,
$0.01, par value, outstanding.
<PAGE>
FLIR SYSTEMS, INC.
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statement of Operations -- Three Months
and Six Months Ended June 30, 1997 and 1996 ............... 3
Consolidated Balance Sheet -- June 30, 1997 and
December 31, 1996 ......................................... 4
Consolidated Statement of Cash Flows --
Six Months Ended June 30, 1997 and 1996 ................... 5
Notes to the Consolidated Financial Statements ............ 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ....................... 8
PART II. OTHER INFORMATION
Item 2. Changes in Securities ..................................... 11
Item 4. Submission of Matters to a Vote of Shareholders ........... 11
Item 6. Exhibits and Reports on Form 8-K .......................... 12
Signatures ................................................ 12
2
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ---------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues:
Government ............................. $ 10,976 $ 9,991 $ 19,379 $ 16,470
Commercial ............................. 8,963 5,138 16,381 9,895
------------ ------------ ------------ ------------
Total revenues ..................... 19,939 15,129 35,760 26,365
Cost of goods sold ......................... 8,995 7,386 16,524 12,630
Research and development ................... 2,569 2,166 5,345 4,283
Selling and other operating costs .......... 5,872 4,039 10,959 7,775
------------ ------------ ------------ --------------
17,436 13,591 32,828 24,688
Earnings from operations ........... 2,503 1,538 2,932 1,677
Interest income ............................ 14 -- 20 29
Interest expense and other ................. (560) (129) (872) (225)
------------ ------------ ------------ ------------
Earnings before income taxes ....... 1,957 1,409 2,080 1,481
Provision for income taxes ................. 507 303 539 319
------------ ------------ ------------ ------------
Net earnings ............................... $ 1,450 $ 1,106 $ 1,541 $ 1,162
============ ============ ============ ============
Net earnings per share ..................... $ 0.25 $ 0.20 $ 0.27 $ 0.21
============== ============== ============ ============
Weighted average number of common
Shares and equivalents outstanding ........ 5,842 5,603 5,795 5,559
============== ============== ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements
3
<PAGE>
FLIR SYSTEMS, INC.
CONSOLIDATED BALANCE SHEET
(in thousands, except share amounts)
<TABLE>
<CAPTION>
ASSETS
June 30, December 31,
1997 1996
---------- ------------
(unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents.......................................... $ 1,428 $ 775
Accounts receivable ............................................... 35,641 28,311
Inventories ....................................................... 33,854 33,513
Prepaid expenses .................................................. 1,318 1,551
------- -------
Total current assets .......................................... 72,241 64,150
Property and equipment ................................................ 8,904 7,137
Software development costs ............................................ 1,008 799
Deferred income taxes ................................................. 2,200 2,200
Other assets .......................................................... 817 818
------- -------
$85,170 $75,104
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable ..................................................... $13,143 $ 6,365
Accounts payable .................................................. 7,652 7,628
Accounts payable to related parties ............................... 703 128
Accrued payroll and other liabilities ............................. 2,936 3,389
Accrued income taxes .............................................. 1,383 1,073
Current portion of long-term debt ................................. 1,398 1,377
-------- -------
Total current liabilities ..................................... 27,215 19,960
Long-term debt ........................................................ 5,501 5,173
Commitments and contingencies ......................................... -- --
Shareholders' equity:
Preferred stock, $0.01 par value, 10,000,000 shares authorized;
no shares issued at June 30, 1997, and December 31, 1996....... -- --
Common stock, $0.01 par value, 30,000,000 shares authorized,
5,507,774 and 5,387,483 shares issued at June 30, 1997,
and December 31, 1996, respectively ............................. 55 54
Additional paid-in capital ........................................ 42,646 41,833
Retained earnings ................................................. 9,798 8,257
Cumulative foreign translation adjustment ......................... (45) (173)
------- -------
Total shareholders' equity .................................... 52,454 49,971
------- -------
$85,170 $75,104
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements
4
<PAGE>
FLIR SYSTEMS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30,
-------------------------
1997 1996
------- -------
<S> <C> <C>
Cash used by operations:
Net earnings ....................................................... $ 1,541 $ 1,162
Adjustments to reconcile net earnings to net cash used by operating
activities:
Depreciation ................................................... 1,176 936
Amortization ................................................... 302 209
Disposals and write-offs of property and equipment ............. 35 244
Changes in certain assets and liabilities:
Increase in accounts receivable ................................ (7,330) (755)
Increase in inventories ........................................ (341) (2,879)
Decrease (increase) in prepaid expenses ........................ 233 (142)
Decrease (increase) in other assets ............................ 1 (98)
Increase (increase) in accounts payable ........................ 24 (940)
Increase in accounts payable to related parties ................ 575 131
Decrease in accrued payroll and other liabilities .............. (453) (1,625)
Increase (decrease) in accrued income taxes .................... 310 (168)
------- -------
Cash used by operating activities .................................. (3,927) (3,925)
------- -------
Cash used by investing activities:
Additions to property and equipment ................................ (3,072) (2,505)
Software development costs ......................................... (417) (287)
------- -------
Cash used by investing activities .................................. (3,489) (2,792)
------- -------
Cash provided by financing activities:
Net increase in notes payable ...................................... 6,778 742
Proceeds from long term debt ....................................... 995 5,000
Repayment of long term debt including current portion .............. (646) (336)
Proceeds from exercise of stock options ............................ 814 374
------- -------
Cash provided by financing activities .............................. 7,941 5,780
------- -------
Effect of exchange rate changes on cash ................................ 128 --
------- -------
Net increase (decrease) in cash and cash equivalents ................... 653 (937)
Cash and cash equivalents, beginning of period ......................... 775 1,154
------- -------
Cash and cash equivalents, end of period ............................... $ 1,428 $ 217
======= =======
</TABLE>
The accompanying notes are an integral part of these financial statements
5
<PAGE>
FLIR SYSTEMS, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
NOTE 1 -- BASIS OF PRESENTATION:
The accompanying consolidated financial statements are unaudited and have been
prepared by the Company pursuant to the rules and regulations of the Securities
and Exchange Commission. In the opinion of management, these statements have
been prepared on the same basis as the audited consolidated financial statements
and include all adjustments, consisting of only normal recurring adjustments,
necessary for a fair presentation of the consolidated financial position and
results of operations for the interim periods. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations. These consolidated financial statements
should be read in conjunction with the Company's audited financial statements
and the notes thereto for the year ended December 31, 1996.
The accompanying financial statements include the accounts of FLIR Systems, Inc.
and its subsidiaries. All intercompany accounts and transactions have been
eliminated. The results of the interim period are not necessarily indicative of
the results for the entire year.
Certain reclassifications have been made to the prior year's data to conform
with the current year's presentation. These reclassifications had no impact on
previously reported results of operations or shareholders' equity.
NOTE 2 -- REVENUE RECOGNITION:
Revenue is recognized when products are shipped or when services are performed,
except for certain long-term contracts which are recorded on the
percentage-of-completion method. The percentage-of-completion method is used for
research and development contracts and for production contracts which require
significant amounts of initial engineering and development costs. The
percentage-of-completion is determined by relating the actual costs incurred to
date to total costs to complete the respective contract.
NOTE 3 -- NET EARNINGS PER SHARE:
Net earnings per share are based on the weighted average number of shares of
common stock and common stock equivalents outstanding during the periods,
computed using the treasury stock method for stock options. The Company will
adopt Statement of Financial Accounting Standards No. 128, "Earnings Per Share"
in 1997. The effect of the adoption of such pronouncement is expected to be
immaterial to the financial statements taken as whole.
6
<PAGE>
NOTE 4 -- INVENTORIES:
Inventories consist of the following (in thousands):
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
------- ------------
<S> <C> <C>
Materials .................................................... $23,570 $23,855
Work-in-progress ............................................. 10,385 8,171
Finished goods ............................................... 585 1,494
------- -------
34,540 33,520
Less - progress payments received from customers ............. (686) (7)
------- -------
$33,854 $33,513
======= =======
</TABLE>
NOTE 5 -- CHANGES IN SHAREHOLDERS' EQUITY:
Changes in Shareholders' Equity consist of the following (in thousands):
<TABLE>
<CAPTION>
Cumulative
Additional Foreign
Preferred Common Paid-in Retained Translation
Stock Stock Capital Earnings Adjustment Total
--------- ------- ---------- -------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1996......... $ -- $54 $41,833 $8,257 $(173) $49,971
Common stock options exercised..... -- 1 813 -- -- 814
Net earnings for six month period.. -- -- -- 1,541 -- 1,541
Foreign translation adjustment..... -- -- -- -- 128 128
------- --- ------- ------ ----- -------
Balance, June 30, 1997 ............ $ -- $55 $42,646 $9,798 $ (45) $52,454
======= ====== ======= ====== ===== =======
</TABLE>
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS:
Overall. Net earnings for the three months ended June 30, 1997
--------
increased 31.1%, from $1.1 million, or $0.20 per share, in the second quarter of
1996 to $1.5 million, or $0.25 per share, in the second quarter of 1997. For the
six months ended June 30, 1997, net earnings increased 32.6%, from $1.2 million,
or $0.21 per share, in the first half of 1996 to $1.5 million, or $0.27 per
share, in the first half of 1997. Earnings from operations for the three months
ended June 30, 1997 increased 62.7%, from $1.5 million in the second quarter of
1996 to $2.5 million in the second quarter of 1997. Earnings from operations for
the six months ended June 30, 1997 increased 74.8%, from $1.7 million in the
first half of 1996 to $2.9 million in the first half on 1997. The increase in
net earnings did not increase at the same rate as earnings from operations
primarily due to an increase in interest expense and an increase in the
effective tax rate for the first six months of 1997.
Revenues. The Company's revenues for the three months ended June 30,
---------
1997 increased 31.8%, from $15.1 million in the second quarter of 1996 to $19.9
million in the second quarter of 1997. Revenues from the sale of the Company's
commercial imaging systems continued their strong growth pattern, increasing
74.4% from $5.1 million in the second quarter of 1996 to $9.0 million in the
second quarter of 1997. The improvement was principally attributable to
increased revenues from sales of the Company's aerial broadcast systems for the
broadcast and entertainment markets and to the continued increase in the
deliveries of the Prism DS as the Company continues to see improvements in
production yields. Revenues from the sale of systems to government customers
increased 9.9% to $11.0 million in the second quarter of 1997 compared with
$10.0 million in the second quarter of 1996, primarily due to increased
deliveries of SAFIRE systems to international customers.
Revenues for the six months ended June 30, 1997, increased 35.6%, from $26.4
million in the first half of 1996 to $35.8 million in the first half of 1997.
Revenues from the sale of the Company's commercial imaging systems for the six
months ended June 30, 1997, increased 65.5% from the comparable period in 1996,
from $9.9 million in 1996 to $16.4 million in 1997. The improvement was
principally attributable to the inclusion of a full six months of revenues from
sales of the Company's aerial broadcast systems for the broadcast and
entertainment markets which were introduced in the second quarter of 1996 and
the increased deliveries of the Prism DS as a result of production improvements.
Revenues from the sale of systems to governmental customers for the six months
ended June 30, 1997, totaled $19.4 million, an increase of 17.7% from the $16.5
million in revenues generated in the first half of 1996. This growth is
primarily due to the increased sales of the SAFIRE thermal imaging system
including increased international sales which typically have a higher selling
price.
As a percentage of total revenue, revenues from the sale of commercial imaging
systems for the second quarter of 1997 increased to 45.0%, as compared to 34.0%
in the second quarter of 1996. For the six months ended June 30, 1997 revenues
from the sale of commercial imaging systems increased to 45.8%, as compared to
37.5% for the first six months of 1996. These increases indicate that sales of
the Company's commercial imaging systems continue to comprise a larger
percentage of the Company's total revenue.
8
<PAGE>
Revenue from sales outside the United States increased significantly as a
percentage of total revenue from approximately 30.1% to approximately 50.4% for
the quarters ended June 30, 1996 and 1997, respectively. The increase in the
percentage of international sales was primarily due to increased deliveries on
existing international contracts and increased market penetration of the
Company's commercial products in Europe. For the first half of 1997, revenue
from sales outside the United States constituted 43.3% of total revenue, as
compared to 34.5% for the first half of 1996. While the percentage of revenue
from international sales will continue to fluctuate from quarter to quarter due
to the timing of shipments under existing international and domestic government
contracts, management anticipates that revenues from international sales as a
percentage of total revenues will continue to comprise a significant percentage
of revenues.
Gross Profit. As a percentage of revenue, gross profit increased from
-------------
51.2% in the second quarter of 1996 to 54.9% in the second quarter of 1997 and
increased slightly from 52.1% to 53.8% for the six month periods ended June 30,
1996 and 1997, respectively. These increases in gross profit as a percentage of
revenue are principally attributable to the increased proportion of higher
margin international sales and decreased shipments to instrumentalities of the
U.S. Government which typically have lower margins than those of other customers
in the government market and aggregated $8.3 million in the first half of 1997
compared to $10.2 in the first half of 1996. Gross profit percentages are
affected by a variety of factors, including the mix of domestic and
international sales, the more competitive nature of the commercial imaging
market, and the impact of competitive bids for significant government contracts.
Research and development. Research and development expense for the
-------------------------
quarter increased 18.6%, from $2.2 million for the second quarter of 1996 to
$2.6 million for the second quarter of 1997, and increased 24.8% for the six
months ended June 30, 1997, from $4.3 million in the first half of 1996 to $5.3
million in the first half of 1997. As a percentage of revenue, research and
development expense decreased from 14.3% to 12.9% for the three months ended
June 30, 1996 and 1997, respectively, and decreased from 16.2% to 14.9% for the
six months ended June 30, 1996 and 1997, respectively. The overall level of
research and development expense reflects the Company's continuing emphasis on
product development and new product introduction. The overall decrease as a
percentage of revenue reflects the fact that a relatively large percentage of
research and development expense is fixed in nature. While the Company expects
the absolute dollar amount of research and development expense to increase as
the year progresses, research and development expense as a percentage of total
revenue should decline as revenues increase.
Selling and other operating costs. Selling and other operating costs
----------------------------------
for the quarter increased 45.4%, from $4.0 million for the second quarter of
1996 to $5.9 million for the second quarter of 1997, and increased 41.0% for the
six months ended June 30, 1997, from $7.8 million in the first half of 1996 to
$11.0 million in the first half of 1997. As a percentage of revenue, selling and
other operating costs increased from 26.7% to 29.4% for the three months ended
June 30, 1996 and 1997, respectively, and increased slightly from 29.5% to 30.6%
for the six months ended June 30, 1996 and 1997, respectively. The increases in
absolute dollar terms were primarily due to costs associated with the increase
in international revenues, particularly commissions, for the quarter and to
increased sales and marketing personnel as the Company continues to expand and
strengthen the direct sales and marketing staff at both FSI and Optimas. These
efforts have directly resulted in increased sales of commercial products.
9
<PAGE>
Income taxes. The provision for income taxes for the three and six
-------------
months ended June 30, 1997 resulted in an effective tax rate of 25.9% compared
to 21.5% for the second quarter and the first half of 1996. The increase in the
effective tax rate is primarily due to the fact that the Company has utilized
all of its internally generated net operating loss carryforwards. The effective
tax rate remains substantially below statutory rates due to utilization of a
portion of the Company's acquired net operating loss carryforwards, utilization
of various tax credits, and benefits from the favorable tax treatment of
international revenue.
LIQUIDITY AND CAPITAL RESOURCES
At June 30, 1997, the Company had short term borrowings net of cash on hand of
$11.7 million compared to $11.1 million at March 31, 1997 and with $5.6 million
at December 31, 1996. The increased use of cash during the six months ended June
30, 1997, was principally attributable to increased working capital needs,
primarily increased accounts receivable levels.
At June 30, 1997, the Company had inventory on hand of $33.9 million compared to
$33.5 million at December 31,1996. Consistent with the prior quarter, the
efforts to reduce inventory levels for existing product lines were partially
offset by the increase in inventory needed to support deliveries of the
Company's new product lines, including the SeekIR(TM), the Tracer(TM), the
UltraMedia(TM) and the UltraMedia RS(TM). Further, because of the extremely long
lead times for many of the most expensive components, it is necessary to have
inventory on hand to meet the required delivery schedule.
At June 30, 1997, the Company had accounts receivable in the amount of $35.6
million compared to $28.3 million at December 31, 1996. The increase in the
level of accounts receivable is primarily due to the significant level of
shipments in the last month of the quarter primarily to international customers
and domestic governmental customers.
The Company has available a $14.0 million line of credit which bears interest at
the prime rate. At June 30, 1997, the Company had a $13.1 million balance
outstanding on this line.
The increased use of cash by operating activities is consistent with prior years
and is primarily due to the increase in accounts receivable discussed above. The
Company is in final negotiations to increase its available line of credit from
$14.0 million to $25.0 million. While use of the credit facility will vary
significantly and is heavily dependent upon the timing of collections of
significant receivables, the Company believes that its existing cash and
available credit facilities will be sufficient to meet its cash requirements for
the foreseeable future.
10
<PAGE>
FORWARD-LOOKING STATEMENTS
This Management's Discussion and Analysis of Financial Condition and Results of
Operations contain forward-looking statements within the meaning of the
Securities Litigation Reform Act of 1995 that are based on current expectations,
estimates and projections about the Company's business, management's beliefs and
assumptions made by management. Words such as "expect," "anticipates,"
"intends," "plans," "believes," "sees," "estimates" and variations of such words
and similar expressions are intended to identify such forward-looking
statements. These statements are not guarantees of future performance and
involve risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from what is
expressed or forecasted in such forward-looking statements due to numerous
factors, including, but not limited to, those discussed in this Management's
Discussion and Analysis of Financial Condition and Results of Operations, as
well as those discussed from time to time in the Company's Securities and
Exchange Commission fillings and reports. In addition, such statements could be
affected by general industry and market conditions and growth rates, and general
domestic and international economic conditions.
PART II. OTHER INFORMATION
ITEM 2. CHANGES IN SECURITIES
During the quarter, the Company sold securities without registration under the
Securities Act of 1933, as amended (the "Securities Act") upon the exercise of
certain stock options granted under the Company's 1984 Stock Incentive Plan. An
aggregate of 4,900 shares of Common Stock were issued at exercise prices ranging
from $1.625 to $5.225. These transactions were effected in reliance upon the
exemption from registration under the Securities Act provided by Rule 701
promulgated by the Securities and Exchange Commission pursuant to authority
granted under Section 3 (b) of the Securities Act.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS
The Company's annual shareholders' meeting was held on Friday, May 2, 1997, at
which the following actions were taken by a vote of the shareholders:
1. The following persons were re-elected to the Board of Directors by
the votes and for the terms indicated:
<TABLE>
<CAPTION>
Vote
-----------------------------------
Withhold Term
Director For Authority Ending
----------------------- ---------- --------- ------
<S> <C> <C> <C>
George Porter 4,229,912 17,293 2000
Ronald L. Turner 4,230,662 16,543 2000
</TABLE>
2. By a vote of 4,223,629 to 4,535 (with 9,041 abstentions and 1,185,758
Broker Non-Votes), the Company's selection of Price Waterhouse LLP as
the Company's independent auditors for the year ending December 31,
1997 was ratified.
11
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
11.0 Computation of Net Income Per Share
27.1 Financial Data Schedule
(b) No reports on Form 8-K were filed during the three months ended
June 30, 1997.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FLIR SYSTEMS, INC
Date August 14, 1997 /s/ J. Mark Samper
---------------------------- ----------------------------
J. Mark Samper
Vice President of Finance and
Chief Financial Officer
(Principal Accounting and Financial
Officer and Duly Authorized Officer)
12
<PAGE>
EXHIBIT 11.0
FLIR SYSTEMS, INC.
COMPUTATION OF NET EARNINGS PER SHARE
(In thousands except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
1997 1996 1997 1996
------ ------ ------ ------
<S> <C> <C> <C> <C>
Net earnings............. $1,450 $1,106 $1,541 $1,162
====== ====== ====== ======
Weighted average number
of common shares
outstanding............. 5,489 5,325 5,456 5,312
Assumed exercise of stock
options net of share
assumed reacquired under
the treasury stock
method.................. 353 278 339 247
------ ------ ------ ------
5,842 5,603 5,795 5,559
====== ====== ====== ======
Earnings per share....... $ 0.25 $ 0.20 $ 0.27 $ 0.21
====== ====== ====== ======
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 1,428
<SECURITIES> 0
<RECEIVABLES> 37,306
<ALLOWANCES> 1,665
<INVENTORY> 33,854
<CURRENT-ASSETS> 72,241
<PP&E> 16,688
<DEPRECIATION> 7,784
<TOTAL-ASSETS> 85,170
<CURRENT-LIABILITIES> 27,215
<BONDS> 5,501
0
0
<COMMON> 55
<OTHER-SE> 52,399
<TOTAL-LIABILITY-AND-EQUITY> 85,170
<SALES> 35,760
<TOTAL-REVENUES> 35,760
<CGS> 16,524
<TOTAL-COSTS> 16,524
<OTHER-EXPENSES> 16,304
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 852
<INCOME-PRETAX> 2,080
<INCOME-TAX> 539
<INCOME-CONTINUING> 1,541
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,541
<EPS-PRIMARY> .27
<EPS-DILUTED> .27
</TABLE>
