<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10Q-SB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For Quarter Ended November 30, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____ to _____
Commission File No. 0-12240
BIO-LOGIC SYSTEMS CORP.
(Exact name of small business issuer as specified in its charter)
Delaware 36-3025678
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
One Bio-logic Plaza, Mundelein, Illinois 60060
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code (847-949-5200)
(Former address, if changed since last report): not applicable
Check whether the issuer (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 issuer was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.
YES X NO
--- ---
State the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at January 10, 1997
Common Stock $.01 par value 3,943,209
Traditional Small Business Disclosure Format
Yes X No
--- ---
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TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
Page
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
Condensed Consolidated Balance Sheets at November 30, 1996
and February 29, 1996 3
Condensed Consolidated Statements of Operations and
Retained Earnings for the three and nine months ended
November 30, 1996 and 1995 4
Condensed Consolidated Statements of Cash Flows for
the nine months ended November 30, 1996 and 1995 5
Notes to Condensed Consolidated Financial Statements 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS 9
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 12
SIGNATURES
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PART 1. FINANCIAL INFORMATION
ITEM 1 FINANCIAL STATEMENTS
CONDENSED CONSOLIDATED BALANCE SHEETS
NOVEMBER 30, FEBRUARY 29,
1996 1996
------------- -------------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 699,422 $ 3,249,071
Marketable securities 1,300,000 1,711,760
Accounts receivable, less allowance
for doubtful accounts of
$129,680 at November 30, 1996
and $128,243 at February 29, 1996 3,807,981 3,197,495
Inventories 3,088,947 2,887,528
Prepaid expenses 124,223 129,044
Deferred income taxes 239,609 239,609
------------ ------------
Total current assets 9,260,182 11,414,507
PROPERTY, PLANT AND EQUIPMENT - Net 1,838,912 1,863,811
MARKETABLE SECURITIES 1,501,584
OTHER ASSETS 1,135,477 1,101,668
------------ ------------
TOTAL ASSETS $13,736,155 $14,379,986
------------ ------------
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt $ 124,265 $ 118,236
Accounts payable 617,727 544,346
Accrued salaries & payroll taxes 566,049 500,412
Accrued interest & other expenses 269,640 380,205
Accrued income taxes 78,125 213,735
Deferred revenue 302,154 228,658
------------ ------------
Total current liabilities 1,957,960 1,985,592
LONG-TERM DEBT -
Less current maturities 595,423 689,877
COMMITMENTS
DEFERRED INCOME TAXES 307,206 307,206
------------ ------------
Total liabilities 2,860,589 2,982,675
------------ ------------
SHAREHOLDERS' EQUITY:
Capital stock, $.01 par value.
authorized 10,000,000 shares,
issued and outstanding 4,229,319
shares at,November 30, 1996 and
4,229,119 at February 29, 1996 42,294 42,291
Additional paid-in capital 5,478,464 5,477,516
Retained Earnings 6,237,513 5,877,504
------------ ------------
Total shareholders' equity 11,758,271 11,397,311
Less treasury stock, at cost: 286,310 shares (882,705)
------------ ------------
Shareholders equity - net 10,875,566 11,397,311
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $13,736,155 $14,379,986
------------ ------------
------------ ------------
The accompanying notes are an integral part of these statements.
3
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
(UNAUDITED)
Three Months Ended Nine Months Ended
November 30, November 30,
------------------------------------------------------
1996 1995 1996 1995
---------- ---------- ----------- -----------
NET SALES $4,321,251 $4,008,417 $10,740,897 $11,120,166
COST OF SALES 1,462,115 1,390,843 3,707,826 3,816,175
---------- ---------- ----------- -----------
Gross Profit 2,859,136 2,617,574 7,033,071 7,303,991
---------- ---------- ----------- -----------
OPERATING EXPENSES:
Selling, general &
administrative 1,835,130 1,895,315 5,237,513 5,130,310
Research & development 558,588 393,563 1,391,931 1,139,845
---------- ---------- ----------- -----------
Total operating expenses 2,393,718 2,288,878 6,629,444 6,270,155
---------- ---------- ----------- -----------
OPERATING INCOME 465,418 328,696 403,627 1,033,836
OTHER INCOME (EXPENSE):
Interest income 52,140 46,251 167,019 137,046
Interest expense (12,190) (12,708) (40,201) (46,447)
Miscellaneous 1,778 358 2,522 (1,864)
---------- ---------- ----------- -----------
TOTAL OTHER INCOME 41,728 33,901 129,340 88,735
INCOME BEFORE INCOME TAXES 507,146 362,597 532,967 1,122,571
PROVISION FOR INCOME TAXES 148,500 117,200 172,958 359,300
---------- ---------- ----------- -----------
NET INCOME $ 358,646 $ 245,397 $ 360,009 $ 763,271
---------- ---------- ----------- -----------
---------- ---------- ----------- -----------
RETAINED EARNINGS,
BEGINNING OF PERIOD 5,878,867 5,503,287 5,877,504 4,985,413
---------- ---------- ----------- -----------
RETAINED EARNINGS,
END OF PERIOD $6,237,513 $5,748,684 $6,237,513 $5,748,684
---------- ---------- ----------- -----------
---------- ---------- ----------- -----------
EARNINGS PER SHARE:
Primary and Fully
Diluted $0.09 $0.06 $0.09 $0.18
---------- ---------- ----------- -----------
---------- ---------- ----------- -----------
The accompanying notes are an integral part of these statements.
4
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
November 30,
--------------------------
1996 1995
------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 360,009 $ 763,271
Adjustments to reconcile net income to
net cash flows from (used in)
operating activities:
Depreciation and amortization 271,789 264,216
Provision for bad debts 83,000 21,000
Provision for inventory valuation 222,975 160,390
Deferred income taxes
(Increases) decreases in assets:
Accounts receivable (693,486) (454,784)
Inventories (424,394) (225,177)
Prepaid expenses 4,821 31,066
Increases (decreases) in liabilities:
Accounts payable and overdrafts 73,381 (219,183)
Accrued liabilities and
deferred revenue 28,568 (27,542)
Accrued income taxes (135,610) 45,961
---------- ----------
Net cash flows from (used in)
operating activities (208,947) 359,218
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (151,338) (104,528)
Other assets (129,361) (356,902)
Purchases of marketable securities
held to maturity (1,501,584)
Proceeds from maturities of investments 411,760 398,527
---------- ----------
Net cash flows used in
investing activities (1,370,523) (62,903)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options 951 133,292
Purchase of treasury stock (882,705)
Payments of long-term debt (88,425) (82,751)
---------- ----------
Net cash flows from (used in)
financing activities (970,179) 50,541
---------- ----------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (2,549,649) 346,856
CASH AND CASH EQUIVALENTS -
Beginning of period 3,249,071 1,187,388
---------- ----------
CASH AND CASH EQUIVALENTS - End of period $ 699,422 $1,534,244
---------- ----------
---------- ----------
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS:
Cash paid during the period for:
Interest $ 44,398 $ 50,119
---------- ----------
---------- ----------
Income Taxes $ 300,780 $ 313,339
---------- ----------
---------- ----------
The accompanying notes are an integral part of these statements.
5
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. The information furnished in this report reflects all adjustments which
are, in the opinion of management, necessary to a fair statement of the
results for the interim periods. The results of operations for the three
and nine months ended November 30, 1996 are not necessarily indicative of
the results to be expected for the full year.
2. INVENTORIES
Inventories, consisting principally of components, parts and supplies, are
stated at the lower of cost, determined by the first-in, first-out method
or market.
3. NET INCOME PER SHARE
Primary earnings per share are based on the weighted average number of
common and dilutive common equivalent shares outstanding during each
quarter. The weighted average shares for computing primary earnings per
share were 4,028,336 and 4,375,436 for the quarters ended November 30, 1996
and November 30, 1995, respectively, and 4,189,846 and 4,334,203 for the
nine months ended November 30, 1996 and 1995, respectively.
Fully diluted earnings per share are based on the weighted average number
of common and dilutive common equivalent shares calculated at quarter-end
market prices. The weighted average shares for computing fully diluted
earnings per share were 4,028,336 and 4,380,583 for the quarters ended
November 30, 1996, and 1995, respectively, and 4,189,846 and 4,356,609 for
the nine months ended November 30, 1996 and 1995.
4. ACCOUNTING FOR INCOME TAXES
The Company follows Statement of Financial Accounting Standards (SFAS) No.
109, "Accounting for Income Taxes," which requires an asset and liability
approach of accounting for income taxes. Deferred tax assets and
liabilities are computed annually for differences between financial
statement basis and tax basis of assets, liabilities and available general
business tax credit carry-forwards. A valuation allowance is established
when necessary to reduce deferred tax assets to the amount expected to be
realized.
5. MARKETABLE SECURITIES
Effective March 1, 1994, the Company adopted Statement of Financial
Accounting Standards No.115, "Accounting for Certain Investments in Debt
and Equity Securities" (SFAS No. 115.)
As required by SFAS 115, securities are classified into three categories:
trading, held-to-maturity, and available for sale. Debt securities that
the Company has the positive intent and ability to hold to maturity are
classified as held-to-maturity debt securities. The Company's entire
portfolio of debt securities has been classified as held-to-maturity and
are stated at cost, with premiums amortized and discounts accredited using
the simple-interest method.
6
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INVESTMENT SECURITIES HELD-TO-MATURITY
The amortized cost, unrealized gains, unrealized losses and estimated fair
values of investment securities are summarized as follows:
Gross Gross Estimated
Unrealized Unrealized Fair
Amortized cost Gain Losses Value
-------------- ---------- ---------- -----------
NOVEMBER 30, 1996
US Government securities $2,801,584 $10,131 $0 $2,811,715
NOVEMBER 30, 1995
US Government securities $2,956,573 $ 551 $0 $2,957,124
At November 30, 1996, the maturities of marketable securities held-to-maturity
are as follows:
Estimated Fair
Term to Maturity Amortized Cost Value
-------------- ----------------
Due one year or less $1,300,000 $1,300,000
Due after one year through
five years 1,501,584 1,511,715
-------------- ----------------
Total $2,801,584 $2,811,715
-------------- ----------------
-------------- ----------------
6. ACCOUNTING FOR FINANCIAL DERIVATIVES
The Company adopted Statement of Financial Accounting Standards (SFAS) No.
119, "Disclosure About Derivative Financial Instruments and Fair Value of
Financial Instruments," effective March 1, 1996. This standard requires
disclosures about derivative financial instruments-futures, forward, swap
and option contracts, and other financial instruments with similar
characteristics. The impact of adopting SFAS No. 119 upon the Company was
not material.
7. ACCOUNTING FOR THE IMPAIRMENT OF LONG LIVED ASSETS
The Company adopted Statement of Financial Accounting Standards (SFAS) No.
121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to be Disposed Of," effective March 1, 1996. This standard requires
that carrying values of long-lived assets and certain identifiable,
intangible assets be evaluated based on the future (undiscounted and
without interest charges) cash flows expected to be realized from the use
of the asset and its eventual disposition. If the sum of the expected
future cash flows from an asset is less than the carrying value an
impairment loss must be recognized. There is no material impact of
adopting SFAS No. 121 upon the Company's financial position or results of
operations.
7
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8. ACCOUNTING FOR STOCK-BASED COMPENSATION
Statement of Financial Accounting Standards (SFAS) No. 123, "Accounting for
Stock-Based Compensation," was issued and became effective March 1, 1996
upon the Company's financial statements. As permitted by the statement,
the Company continues to measure employee compensation cost for stock
option plans in accordance with Accounting Principles Board Opinion No. 25,
"Accounting for Stock Issued to Employees."
9. STOCK REPURCHASE
On May 16, 1996 the Board of Directors of the Company authorized the
repurchase, from time to time, of shares of the Company's common stock. As
of November 30, 1996, the Company purchased an aggregate of 286,310 shares
of its common stock at a total cost of $882,705.
8
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Except for the description of historical facts contained herein, this Form
10Q-SB contains certain forward looking statements that involve risks and
uncertainties as detailed herein and from time to time in the Company's filings
with the Securities and Exchange Commission and elsewhere. Such statements are
based on management's current expectations and are subject to a number of
factors and uncertainties which could cause actual results to differ materially
from those described in the forward-looking statements. These factors include,
among others, the Company's fluctuations in sales and operating results, risks
associated with international operations and regulatory, competitive and
contractual risks.
LIQUIDITY AND CAPITAL RESOURCES
As of November 30, 1996 the Company had working capital of $7,302,222
including $1,999,422 in cash, cash equivalents and short-term investments. In
addition, as of November 30, 1996, the Company had long-term investments of
$1,501,584 in US Government Treasury Notes. The Company believes its capital
and liquidity requirements for the foreseeable future will be satisfied by
available and internally generated funds. To the extent the Company's capital
and liquidity requirements are not satisfied internally, the Company may utilize
a $1,000,000 unsecured bank line of credit, all of which is currently available.
Borrowings under this line will bear interest at the bank's prime rate.
Cash flow for the nine months ended November 30, 1996 decreased by
$2,549,649 and net cash flow from operations decreased by $208,947. The
Company repurchased its stock for an aggregate of $882,705 reducing cash flow
from financing activities, while sales in the quarter ended November 30, 1996
increased accounts receivable by $693,486 and decreased cash flows from
operating activities. Finally, increased purchases of inventory of $424,394
in anticipation of future sales resulted in reduced cash flows from operating
activities.
RESULTS OF OPERATIONS
Net sales for the three month period ended November 30, 1996 ("1996 three
months") increased by approximately 8% to $4,321,251 from $4,008,417 in the
three month period ended November 30, 1995 ("1995 three months"), while net
sales for the nine month period ended November 30, 1996 ("1996 nine months")
decreased by 3% to $10,740,897 compared to $11,120,166 in the nine month period
ended November 30, 1995 ("1995 nine months.") Domestic sales for both the 1996
three and nine months decreased by 5% to $3,141,103 and $8,038,149,
respectively, compared to $3,308,546 and $8,497,486 for the 1995 three and nine
months, respectively. Foreign sales of $1,180,148 and $2,702,748 contributed
27% and 25% of net sales for the 1996 three and nine months, respectively, a
increase of 69% and 3% from $699,871 and $2,622,680 for the 1995 three and nine
months, respectively. The Company's decrease in net sales for the 1996 nine
months compared to the 1995 nine months was due in part to the sales
reorganization that began in fiscal year ended February 29, 1996. Net sales of
the Ceegraph -TM-, SleepScan -TM-, and Explorer -TM- product lines were all
9
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negatively impacted in the short run from this reorganization, primarily
during the first quarter of the 1996 nine months. Increased Ceegraph -TM- and
Navigator -Registered Trademark- sales in the quarter ended November 30, 1996
partially offset the negative results from the first quarter.
Cost of sales as a percentage of net sales decreased to 34% for the 1996
three months from 35% for the 1995 three months and increased to 35% for
the 1996 nine months from 34% for the 1995 nine months. This slight increase
in cost of sales as a percentage of net sales in the 1996 nine month period
was the partial result of sales of lower margin products and similar levels
of fixed manufacturing costs allocated over lower net sales.
Selling, general and administrative expenses decreased by 3% to
$1,835,130 for the 1996 three months from $1,895,315 during the 1995 three
months. and increased by 2% to $5,237,513 for the 1996 nine months from
$5,130,310 during the 1995 nine months. Selling, general and administrative
expenses as a percentage of net sales decreased to 42% for the 1996 three
months from 47% for the 1995 three months and increased to 49% for the 1996
nine months from 46% for the 1995 nine months. This increase in the nine
month period reflects additional employee and travel costs relating to the
Company's expanded sales efforts, plus increases in marketing expenses for
product promotions and exhibitions.
Research and development costs increased by 42% and 22% to $558,588 and
$1,391,931 for the 1996 three and nine months, respectively, from $393,563 and
$1,139,845 for the 1995 three and nine months, respectively. As a percentage of
net sales, total research and development costs increased to 13% for both the
1996 three and nine months compared to 10% for both the 1995 three and nine
months. The increase in costs were partially due to increases in the number of
employees and higher individual salaries. offset by the capitalization of
certain research and development costs aligned with specific identifiable future
products. The capitalization of these future products amounted to approximately
$0 and $144,400 for 1996 three and nine months, respectively, compared to
$83,400 and $218,400 for the 1995 three and nine months, respectively.
The Company's operating income increased by 42% to $465,418 for 1996
three months compared to $328,696 for the 1995 three months. In contrast,
the Company's operating income decreased by 61% to $403,627 for the 1996 nine
months compared to $1,033,836 for 1995 nine months. This decrease in
operating income for the 1996 nine months is due to lower net sales, higher
selling, general and administrative expenses and increased research and
development costs.
Net interest income increased to $39,950 and $126,818 for 1996 three and
nine months, respectively, compared to $33,543 and $90,599 for 1995 three and
nine months, respectively. This increase reflects higher investment returns on
marketable securities and lower interest expense on long term debt.
The Company had income tax of $148,500 and $172,958 or 29% and 32% of
net income before taxes for the 1996 three and nine months, respectively,
compared to $117,200 and $359,300 or 32% of net income before taxes for both
the 1995 three and nine months, respectively. The Company's income tax rate
differ from the federal statutory rate of 35% due to the differences between
financial statement basis and tax basis of assets, liabilities and available
general business tax credit carry-forwards.
10
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The Company had net income of $358,646 and $360,009 or $.09 per share for
both the 1996 three and nine months, respectively, compared to net income of
$245,397 and $763,271 or $0.06 and $0.18 per share for the 1995 three and nine
months, respectively. The Company attributes the lower earnings in the nine
month period to lower net sales, higher selling, general and administrative
expenses, and increased research and development costs as previously discussed.
11
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ITEM 6. EXHIBITS AND REPORTS ON 8-K
(a) Exhibits
3.1 Certificate of Incorporation, Certificate of Amendment to
Certificate of Incorporation, Agreement of Merger and Certificate
of Merger and By-Laws (1)
3.2 Certificate of Amendment to Certificate of Incorporation (7)
10.1 Lease between the Company and Harris Trust & Savings Bank dated
August 9, 1983 (2)
10.2 Technology License Agreement between the Company and Neurographic
Technologies dated August 13, 1984 (3)
10.3 Real Estate Sale Contract between the Company and First National
Bank of Lake Forest, as Trustee, dated December 23, 1985 (4)
10.4 Loan Agreement between the Company and Village of Mundelein,
Illinois dated as of December 1, 1985 (4)
10.5 Mortgage and Security Agreement between the Company and Village of
Mundelein, Illinois dated as of December 1, 1985 (4)
10.6 Bond Purchase Agreement between the Company and First American Bank
of Dundee dated as of December 1, 1985 (4)
10.75 Agreement among Gabriel Raviv, Gil Raviv, Charles Z. Weingarten and
the Company (5)
10.8 Employment Agreement between the Company and Gabriel Raviv (5)
10.9 Employment Agreement between the Company and Gil Raviv (5)
10.10 Form of Export Property Sale, Commission and Lease Agreement
between the Company and Bio-logic International Corporation (6)
10.11 Agreement and General Release between the Company and Gil Raviv (9)
10.12 Letter dated May 2, 1994 from First American Bank to the Company
(10)
10.13 Letter of Intent dated June 30, 1994 by and among the Company,
Luther Medical Products, Inc. and Neuro Diagnostics, Inc. (11)
10.14 Asset Purchase Agreement dated as of July 1, 1994 by and among the
Company, NDI Acquisition Corp., Luther Medical Products, Inc. and
Neuro Diagnostics, Inc. (12)
21. Subsidiaries of the Company (8)
27. Financial Data Schedule
12
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_________________________
(1) Incorporated by reference from the Company's Registration Statement on Form
S-18 filed on August 7, 1981 (File No. 2-73587-C).
(2) Incorporated by reference from the Company's Report on Form 10-Q for the
quarter ended August 31, 1983.
(3) Incorporated by reference from the Company's Annual Report on Form 10-K for
the year ended February 28, 1985.
(4) Incorporated by reference from the Company's Report on Form 10-Q for the
quarter ended November 30, 1985.
(5) Incorporated by reference from the Company's Registration Statement on Form
S-1 (File No. 33-5471).
(6) Incorporated by reference from the Company's Report on Form 10-Q for the
quarter ended May 31, 1986.
(7) Incorporated by reference from the Company's Annual Report on Form 10-K for
the Fiscal Year ended February 28, 1987.
(8) Incorporated by reference from the Company's Annual Report on Form 10-K for
the Fiscal Year ended February 28, 1990.
(9) Incorporated by reference from the Company's Annual Report on Form 10-K for
the Fiscal Year ended February 28, 1993.
(10) Incorporated by reference from the Company's Annual Report on Form 10-K for
the Fiscal Year ended February 28, 1994.
(11) Incorporated by reference from the Company's Report on Form 10-Q for the
quarter ended May 31, 1994.
(12) Incorporated by reference from the Company's Report on Form 10-Q for the
quarter ended August 31, 1994.
(13) Incorporated by reference from the Company's Annual Report on Form 10K-SB
for the Fiscal Year ended February 28, 1996.
(b) The Registrant did not file any reports on Form 8-K during the three months
ended November 30, 1996
13
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Signatures
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.
Date: January 10, 1997 By: /s/ Gabriel Raviv
--------------------------
Gabriel Raviv, President
Date: January 10, 1997 By: /s/ William K. Roenitz,
--------------------------
William K. Roenitz,
Controller and Treasurer
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> FEB-28-1997
<PERIOD-END> NOV-20-1996
<CASH> 699,422
<SECURITIES> 2,801,584
<RECEIVABLES> 3,807,981
<ALLOWANCES> 129,680
<INVENTORY> 3,088,947
<CURRENT-ASSETS> 9,260,182
<PP&E> 4,442,680
<DEPRECIATION> 2,603,768
<TOTAL-ASSETS> 13,736,155
<CURRENT-LIABILITIES> 1,957,960
<BONDS> 719,688
0
0
<COMMON> 42,294
<OTHER-SE> 10,833,272
<TOTAL-LIABILITY-AND-EQUITY> 13,736,155
<SALES> 10,740,987
<TOTAL-REVENUES> 10,740,987
<CGS> 3,707,826
<TOTAL-COSTS> 3,707,826
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 83,000
<INTEREST-EXPENSE> 38,013
<INCOME-PRETAX> 532,967
<INCOME-TAX> 172,958
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 360,009
<EPS-PRIMARY> 0.09
<EPS-DILUTED> 0.09
</TABLE>
