<PAGE> 1
FORM 10-QSB
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended March 26, 1995.
Commission File Number 2-73737-W
---------
ESSEX CORPORATION
(Exact name of small business issuer as specified in its
charter)
Virginia 54-0846569
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
9150 Guilford Road, Columbia, Maryland 21046-1891
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (301) 953-7797
- ------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report.)
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 past 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
---- ----
State the number of shares outstanding of each of the issuer's class
of Common Stock as of the latest practicable date.
OUTSTANDING
CLASS AT MARCH 26, 1995
----- -----------------
Common Stock, par value $0.10 per share 2,348,973
<PAGE> 2
ESSEX CORPORATION
-----------------
PART I - FINANCIAL INFORMATION
------------------------------
ITEM 1. FINANCIAL STATEMENTS
The interim financial statements are unaudited but, in the opinion
of management, reflect all adjustments for a fair presentation of
results for such period. The results of operations for any interim
period are not necessarily indicative of results for the full year.
These financial statements should be read in conjunction with the
financial statements and notes thereto contained in the Company's
Annual Report on Form 10-KSB/A No. 1 for the fiscal year ended
December 25, 1994.
<PAGE> 3
<TABLE>
ESSEX CORPORATION
-----------------
BALANCE SHEETS
--------------
<CAPTION>
March 26, December 25,
1995 1994
------------ ------------
(unaudited) (audited)
<S> <C> <C>
ASSETS
------
Current Assets
- --------------
Cash $ 241,519 $ 502,800
Accounts receivable, net 1,701,855 1,213,536
Refundable income taxes -- 18,600
Prepayments and other current assets 169,435 88,097
------------ ------------
2,112,809 1,823,033
------------ ------------
Property and Equipment
- ----------------------
Land 195,175 195,175
Buildings and improvements 1,531,274 1,530,763
Production and special equipment 1,613,062 1,538,440
Furniture and equipment 1,488,134 1,457,665
------------ ------------
4,827,645 4,722,043
Less - accumulated depreciation
and amortization (3,095,090) (3,032,187)
------------ ------------
1,732,555 1,689,856
------------ ------------
Other Assets
- ------------
Goodwill 249,160 264,113
Patents, net 166,030 168,558
Deferred stock offering costs -- 191,194
Other 71,796 71,877
------------ ------------
486,986 695,742
------------ ------------
TOTAL ASSETS $ 4,332,350 $ 4,208,631
- ------------ ============ ============
<FN>
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE> 4
<TABLE>
ESSEX CORPORATION
-----------------
BALANCE SHEETS
--------------
<CAPTION>
March 26, December 25,
1995 1994
------------ ------------
(unaudited) (audited)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities
- -------------------
Current portion of long-term debt $ 80,001 $ 80,001
Accounts payable 803,325 752,487
Accrued wages and vacation 383,059 471,345
Current portion of accrued
lease settlement 405,000 405,000
Other accrued expenses 596,505 522,918
------------ ------------
2,267,890 2,231,751
Long-term Debt 293,321 313,322
- --------------
Accrued lease settlement,
net of current portion 305,000 335,000
- ------------------------- ------------ ------------
Total Liabilities 2,866,211 2,880,073
------------ ------------
Commitments and Contingencies (Note 4)
- --------------------------------------
Stockholders' Equity
- --------------------
Common stock, $0.10 par value;
10 million shares authorized; 2,348,973
and 1,823,973 issued and outstanding for
1995 and 1994, respectively 234,897 182,397
Contributions in excess of par value 3,735,161 3,332,352
Retained deficit (2,503,919) (2,186,191)
1,466,139 1,328,558
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 4,332,350 $ 4,208,631
- --------------------- ------------ ------------
<FN>
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE> 5
<TABLE>
ESSEX CORPORATION
-----------------
STATEMENTS OF OPERATIONS
FOR THE THIRTEEN WEEK PERIODS
ENDED MARCH 26, 1995 AND MARCH 27, 1994
---------------------------------------
<CAPTION>
1995 1994
-------------- --------------
(unaudited) (unaudited)
<S> <C> <C>
REVENUES $ 3,027,225 $ 3,826,827
- -------- -------------- --------------
COSTS AND EXPENSES
- ------------------
Direct Costs:
Direct labor and related expenses 1,486,484 1,575,965
Other direct costs 502,709 1,011,521
-------------- --------------
Total Direct Costs 1,989,193 2,587,486
-------------- --------------
Indirect Expenses:
Operating expenses 931,572 1,073,113
Depreciation and amortization 80,689 102,090
-------------- --------------
Total Indirect Expenses 1,012,261 1,175,203
ImSyn (trade mark) prototype 204,601 --
Lawsuit prosecution expenses 93,767 --
Internal stock offering expenses 21,722 --
-------------- --------------
Operating Income (Loss) (294,319) 64,138
Interest expense 23,409 55,655
INCOME (LOSS) BEFORE INCOME TAXES (317,728) 8,483
- ---------------------------------
Provision for income taxes -- 3,000
-------------- --------------
NET INCOME (LOSS) $ (317,728) $ 5,483
- ----------------- ============== ==============
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING 2,060,511 1,816,405
- -------------------------- ============== ==============
NET INCOME (LOSS) PER SHARE $ (0.15) $ 0.00
- --------------------------- ============== ==============
<FN>
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE> 6
<TABLE>
ESSEX CORPORATION
-----------------
STATEMENTS OF CASH FLOWS
FOR THE THIRTY-NINE WEEK PERIODS
ENDED MARCH 26, 1995 AND MARCH 27, 1994
---------------------------------------
<CAPTION>
1995 1994
----------- -----------
(unaudited) (unaudited)
<S> <C> <C>
Cash Flows From Operating Activities:
- ------------------------------------
Net Income (Loss) $ (317,728) $ 5,483
Adjustments to reconcile Net Income (Loss)
To Net Cash Provided By (Used In) Operating Activities:
Depreciation and amortization 80,688 102,090
Gain on sale of assets (69) (1,398)
Change in Assets and Liabilities
Accounts receivable (488,319) (298,193)
Refundable income taxes 18,600 214,921
Prepayments and other assets (81,561) 49,676
Accounts payable 50,838 68,536
Accrued lease settlement (30,000) --
Other liabilities (14,699) (38,037)
----------- -----------
Net Cash Provided By (Used In)
Operating Activities (782,250) 103,078
----------- -----------
Cash Flows From Investing Activities:
- ------------------------------------
Purchases of property and equipment (105,602) (29,718)
Proceeds from sale of fixed assets 69 1,398
----------- -----------
Net Cash Used In Investing Activities (105,533) (28,320)
Cash Flows From Financing Activities:
- ------------------------------------
Repayment of short-term borrowings, net -- (305,000)
Repayment of long-term debt (20,001) (20,001)
Sale of common stock, net of stock
offering costs 646,503 --
----------- -----------
Net Cash Provided By (Used In)
Financing Activities 626,502 (325,001)
----------- -----------
Cash and Cash Equivalents
- -------------------------
Net decrease (261,281) (250,243)
Balance - beginning of period 502,800 330,770
----------- -----------
Balance - end of period $ 241,519 $ 80,527
=========== ===========
<FN>
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE 7>
ESSEX CORPORATION
-----------------
NOTES TO INTERIM FINANCIAL INFORMATION
NOTE 1: Fiscal Year
Essex Corporation (the "Company") is on a 52/53-week fiscal year
ending the last Sunday in December. 1995 will be a 53-week fiscal
year.
NOTE 2: Income (Loss) Per Share
Income (loss) per share has been calculated by dividing net income
(loss) by the weighted average number of shares outstanding during
each period.
NOTE 3: Accounts Receivable Financing
The Company has a Purchase and Assignment Agreement (Agreement)
regarding its accounts receivable with Capitol Resource Funding,
Inc. (Capitol). Under the Agreement, Capitol may purchase certain of
the Company's accounts receivable subject to full recourse against
the Company in the case of nonpayment by the customers. The Company
generally receives 80% of the invoice amount at the time of purchase
and the remaining 20% when the invoice is paid. The Company is
charged an interest fee on the funded amount at an annualized rate
of 20%, payable at the time each invoice is paid.
At March 26, 1995 and December 25, 1994, the gross amount of open
accounts receivable purchased by Capitol was $744,000 and
$1,049,000, respectively. Funds received were $595,000 and
$839,000, respectively. The unpaid holdback amounts of $149,000 and
$210,000 are included in the accounts receivable balances at March
26, 1995 and December 25, 1994. Any unpaid interest fees have been
provided for in the accompanying statements of operations. As
further collateral and consideration for entering into this
Agreement, the Company has granted to Capitol a present security
interest in all accounts receivable, contract rights, general
intangibles and inventory, subject to the previously secured
interests of other parties.
NOTE 4: Commitments and Contingencies
Lease Settlement
- ----------------
The Company was in a legal dispute with the landlord of its former
corporation headquarters and Information Systems Division facility.
Effective July 1994, the parties entered into a Settlement Agreement
("Agreement"). Under the Agreement, the Company agreed to make
deferred rent cash payments of $250,000; contingent rent payments up
to $550,000 from future earnings and/or proceeds from common stock
sales or asset sales; an additional contingent payment up to
$250,000 from any net proceeds awarded from settlement of an
outstanding lawsuit; and issued an option to purchase up to 125,000
shares of the Company's stock at an exercise price of $2 per share.
The landlord released the Company from outstanding and future rent
or other obligations arising from the leases.
Starting July 1994, the Company began to make the deferred cash rent
payments over 25 months at $10,000 per month. As additional rent,
the Company is obligated to make contingent cash payments of 25% of
future earnings (as defined) or 10-15% of the net proceeds from the
sale of common stock or operating assets, the total of such payments
not to exceed $550,000. Also, the Company has agreed to pay 20% not
to exceed $250,000 from the net award or settlement from a currently
pending litigation. The period for computation of such contingent
payments ends December 2004. Amounts due, if any, are to be paid
quarterly. Through March 26, 1995, contingent amounts totalling
$35,000 have been earned and this amount was paid in April 1995.
The Company issued an option for the landlord to purchase up to
125,000 shares of the Company's unregistered common stock at an
option price of $2 per share. The option is exercisable through
December 31, 2004 and has certain registration rights upon exercise
of the option. Prior to 1995, the Company expensed
<PAGE 8>
ESSEX CORPORATION
-----------------
$800,000 toward amounts potentially due under this Agreement and
recognized a $35,000 expense for the estimated value of the option.
The $710,000 accrual as of March 26, 1995 represents the remaining
$160,000 to be paid over 16 months and $550,000 as management's best
estimate of the amounts which are probable to be paid over the ten
year period toward the contingent consideration.
Legal Proceeding
- ----------------
The Company filed suit in April 1994 against a corporate third party
(the "Defendant") in a civil action which is presently pending in
the Federal District Court in Albuquerque, New Mexico. The
Company's charges include allegations of intentional and improper
interference with prospective contractual relations, unfair
competition and civil conspiracy. The Company is claiming $25
million in compensatory damages and $75 million in punitive damages.
The suit is currently in the discovery phase.
The Defendant has filed a counterclaim against the Company for
misappropriation of trade secrets. The counterclaim seeks
unspecified compensatory and punitive damages and reasonable
attorney fees and costs. The Defendant has been unable to identify
any alleged damages with respect to its counterclaim. The Company
has denied the allegations raised in the counterclaim and intends to
defend vigorously against the counterclaim. Although the outcome of
this counterclaim cannot be predicted, Management believes, based on
its review of this counterclaim and discussions with counsel, that
the resolution of this counterclaim should not have a material
impact on the Company's financial position or future results of
operations.
NOTE 5: Stock Offering
In late 1994, the Company filed a registration statement with the
Securities and Exchange Commission (SEC). The registration
statement covered a Rights Offering first to existing shareholders
and option holders and then further public sale to other interested
parties (the Offering). The record date for such Offering was
September 20, 1994. Through the Offering, the Company is proposing
to raise approximately $2.5 million (before expenses) for 25,000
Units consisting of 1,750,000 newly issued shares of common stock
and warrants to obtain an additional 625,000 new shares at a later
date and for an additional cost. The registration statement was
declared effective by the SEC on December 1, 1994. Proceeds from
the Offering are to be used for general business purposes, including
principally completing development of commercial products. A
portion of the proceeds would be used to partially satisfy the
contingent obligation to the landlord.
Through April 18, 1995, the Company sold 7,500 Units for $750,000
and has received the proceeds. The Company is continuing its
efforts to sell the balance of the Offering. On March 15, 1995, the
Company filed a post-effective amendment to its Registration
Statement with the SEC on this matter. The Company has entered into
a Placement Agency Agreement with a registered broker/dealer who has
agreed to assist the Company in selling the balance of the Offering
on a best efforts basis. In addition to cash compensation, under
the compensation terms in connection with such best efforts
assistance, the broker/dealer may receive warrants for up to 175,000
shares of common stock. The warrants would be exercisable through
December 1, 1999 at a price of $2.30 per share, subject to
adjustment under anti-dilution provisions of the Warrant Agreement.
The warrant holders would have certain registration rights for these
shares of common stock.
<PAGE> 9
ESSEX CORPORATION
-----------------
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Essex Corporation is a diversified, technology-based company
providing quality products and professional services to government
and industry. Essex specializes in Human-Centered Systems
Engineering* and Optoelectronic Engineering. The Company allocates
its operations to the following business units.
. Systems Effectiveness Division (SED)
. Space and Defense Division (SDD)
. Information Systems Division (ISD)
. Commercial Products
The discussion that follows speaks to the changes, where
significant, that occurred in the business operations of the
Company.
STATUS
- ------
The Company has raised $750,000 of its ongoing $2.5 million Stock
Offering by the end of the first quarter of 1995. These funds have
improved liquidity and temporarily reduced costly borrowings. The
main usage of the net proceeds of the Offering is for completion of
development of the ImSyn (trade mark) optoelectronic processor. In
anticipation of the success of the Stock Offering, the Company began
modest efforts on development of its ImSyn (trade mark) processor
prototype in late 1994. In the first quarter of 1995, the Company
began full fledged work on such development. In accordance with
generally accepted accounting principles governing such development
expenses, costs of approximately $200,000 have been recognized in
the Company's 1995 First Quarter statement of operations as current
period expenses. The Company expects that such development expenses
will be significant during the second quarter of 1995. ImSyn (trade
mark) prototype development is scheduled for completion early in the
third quarter of 1995.
Revenue volumes increased in fiscal 1994 over 1993 primarily due to
the restoration of the Department of Energy, Transportations
Safeguards contract. As 1995 began, the Company continued to have
a relatively high backlog. At the end of 1994, the total backlog
was approximately $25.5 million. Since the end of 1994, the Company
has won or added approximately $7.0 million in new business, and its
total backlog was $29.5 million ($7.5 million funded and $22.0
million unfunded) at the end of March 1995. Funded backlog
generally consists of the sum of all contract amounts for which
funding has been approved and contracts signed, less the value of
work performed under such contracts. Unfunded backlog generally is
the amount of work on contracts which has not yet been funded (such
as for option years, follow-on work or open purchase orders). Of
the $29.5 million in total backlog as of March 1995, approximately
$10.6 million is scheduled for completion before the end of 1995 and
$18.9 million in the period 1996-1999. The costs of completing such
contracts in backlog are estimated to be 92-94% of such backlog and
generally result in gross profit margins of 6-8% before such costs
as interest expense, amortization of intangibles, volume variance
and income taxes. However, there can be no assurances that revenues
from this backlog or the gross margins therefrom will ultimately be
realized. The mix of contracts in the total backlog is
approximately $22.0 million (75%) in cost-plus-fee type contracts
and $7.5 million (25%) in fixed-price type contracts. Costs are
charged to contracts as incurred as the Company is generally
providing labor-based services and therefore does not normally
accumulate or stock inventory. On both types of contracts, the
Company utilizes for revenue accounting the percentage-of-completion
method plus a proportionate amount for fee earned. Anticipated
losses, if any, are recognized as soon as they become known.
<PAGE> 10
ESSEX CORPORATION
-----------------
While high contract backlog and proposal activity are positive
indicators, the Company has experienced net losses in each of the
past 5 fiscal years. The Company must demonstrate the ability to
complete such contract backlog within budget cost constraints, both
for direct and indirect operating costs. Although the high backlog
supports a continuation of the 1994 revenue levels into 1995, such
revenue levels will be lower during the first half of 1995 compared
to 1994. The Company is devoting significant labor effort to ImSyn
(trade mark) prototype development and this will lower revenue
levels on some customer work during the first half of 1995.
A. REVENUE
-------
The Company's revenues for the first thirteen weeks of 1995 totaled
$3,027,000, which were $800,000 or 21% lower than the $3,827,000
reported during the same period in 1994. The decrease was primarily
attributable to lower 1995 first quarter revenues of $450,000 (40%)
in ISD. The ImSyn (trade mark) prototype development is being
staffed primarily by ISD personnel and this has lowered revenue
levels on some customer work.
B. INCOME
------
The Company is reporting a net loss in the first thirteen weeks of
1995 of $318,000 or $0.15 per share as compared to breakeven results
for the same period in 1994 ($5,000 or $0.00 per share).
While total direct costs have remained fairly proportional as a
percentage of revenues (66% in the first thirteen weeks of 1995 and
68% for the same period in 1994), there has been an increase in
direct labor and related expenses as a percentage of revenues (49%
in 1995 and 41% in 1994) and a significant decrease in other direct
costs as such costs declined as a percentage of revenues from 27% in
1994 to 17% in 1995. The decrease in other direct costs as a
percentage of revenue is primarily due to the completion or lower
usage on certain contracts where outside subcontractors and
consultants were used. Also, material purchases on new contract
work are scheduled for later in 1995 whereas there was a higher
degree of such purchases in the first quarter of 1994.
Excluding expenses, for ImSyn (trade mark) prototype development
($204,000); lawsuit prosecution ($94,000); and internal costs
related to the stock offering ($22,000); totalling $320,000; the
Company would have had an operating profit of $2,000 in the first
quarter of 1995 as compared to $5,000 for the first quarter of 1994.
Although revenue levels decreased, the Company was still able to
cover variable expenses such as business development and fixed
expenses such as facility costs.
In 1995, the Company's interest costs decreased sharply due to the
temporary use of the proceeds from the stock offering to reduce
costly borrowings. Total interest costs were $23,000 in the first
quarter of 1995 compared to $56,000 in the first quarter of 1994.
The Company recognized the remaining tax benefit amount recoverable
from the carryback of net operating losses in 1993. The Company is
in a net operating loss (NOL) carryforward position. No benefit
from income taxes has been recognized for 1995.
<PAGE> 11
ESSEX CORPORATION
-----------------
C. FINANCIAL CONDITION - LIQUIDITY AND CAPITAL RESOURCES
-----------------------------------------------------
The Company evaluates its liquidity position using various factors.
The following represents some of the more important factors:
<TABLE>
<CAPTION>
SELECTED FINANCIAL DATA ($ Thousands)
AS OF
-----------------------------------------------------
March 26, December 25, March 27,
1995 1994 1994
------------ ------------ ------------
<S> <C> <C> <C>
Total Assets $ 4,332 $ 4,209 $ 4,370
Working Capital $ (155) $ (409) $ (338)
Current Ratio 0.93:1 0.82:1 0.85:1
Current and Long-Term
Debt and Bank Debt $ 373 $ 393 $ 498
Stockholders' Equity $ 1,466 $ 1,329 $ 1,749
</TABLE>
The Company experienced an improvement in its working capital
dollars and ratio due to receipt of the proceeds of $750,000 from
the Stock Offering.
The Company experienced a 1995 first quarter loss of $318,000. This
first quarter loss was primarily attributable to expenditures in
connection with development of the ImSyn (trade mark) prototype.
Such expenditures are expected to be funded from the proceeds of the
Stock Offering. The development expenditures are expected to be
significant in the second quarter of 1995.
Under the settlement agreement reached with the landlord, certain
payments are to be spread over future periods or are triggered only
by other future cash inflows. There is a $160,000 remaining balance
on the original deferred rent payment of $250,000 and this balance
is payable over the next 16 months. The Company expects that the
results of operations from its total contracts backlog of
approximately $29.5 million will generate sufficient positive cash
flow over the remaining period of this obligation to make the
required payments. The Company believes that there is a
sufficiently long payment period over which to generate the cash
flows necessary to meet the required payment schedule. The
contingent portions of the landlord settlement obligation, of which
$550,000 has been recorded and expensed prior to 1995, are not
payable until future earnings (as defined), operating asset sales,
equity capital funding or a favorable lawsuit settlement occur.
When such future events transpire, only a portion of the cash flows
or proceeds generated are payable. Accordingly, a portion of the
lease settlement costs are classified as a non-current liability.
The Company has a Purchase and Assignment Agreement (Agreement)
regarding its accounts receivable with Capitol Resource Funding,
Inc. (Capitol). Under the Agreement, Capitol may purchase certain
of the Company's accounts receivable subject to full recourse
against the Company in the case of nonpayment by the customers. The
Company generally receives 80% of the invoice amount at the time of
purchase and the remaining 20% when the invoice is paid. The
Company is charged an interest fee on the funded amount at an
annualized rate of 20%, payable at the time each invoice is paid.
<PAGE> 12
ESSEX CORPORATION
-----------------
The 20% annualized interest cost is a high cost for working capital
funds. The Company's Agreement with Capitol has provided necessary
working capital funds since September 1993. This high cost of
funds, however, has caused interest expense to remain at a
relatively high level in 1995 with regard to the amounts financed
and will continue to do so in future periods until alternative lower
cost financing is secured. There can be no assurance that the
Company will be able to secure such lower cost financing.
The Company has no plans at present to make significant capital
expenditures. The Company may sell certain assets which are
underutilized or not part of its mainstream operations as it did
with the temporary contract staffing operations in 1992; there are,
however, no definitive arrangements for any such sale. The Company
believes that its anticipated needs for working capital will be
adequately met by the combination of its projected cash flow from
its 1995 operations, proceeds from the ongoing Stock Offering,
receipts from any asset sales and utilization of available credit
from its secured asset lending agreement.
The Company is unable to gauge at this time the degree of success
for the sale of the remaining $1,750,000 for Units consisting of
common stock and warrants in the Stock Offering. The Company has
received sufficient proceeds to date to complete the basic
development of the ImSyn (trade mark) prototype. Additional
proceeds would be used for manufacturing and sales/marketing and
other efforts. Further, a portion (up to $205,000) of this new
capital financing would be payable to the former landlord under the
terms of the lease settlement agreement. See Note 5 of Notes to
Interim Financial Statements for further information.
The Imsyn) processor is an important factor for future operations.
Should the Company be unable to receive additional proceeds from the
Offering, then the Company would seek alternative funding sources
for enhanced development for Imsyn). Such funding sources could
come from the Company's current U.S. Government customers, such as
the Department of Defense or Federal Highway Administration or
potential commercial customers who would be users of such Imsyn)
processors. However, such alternative sources would likely result
in a slower paced development and expenditure of funds in the
manufacturing and sales/marketing areas.
<PAGE> 13
ESSEX CORPORATION
-----------------
PART II - OTHER INFORMATION
---------------------------
Item 6. Exhibits and Report on Form 8-K.
(a) Exhibits - None
(b) Reports on Form 8-K - None
SIGNATURE
In accordance with the requirements of the Securities Exchange Act
of 1934, the Registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
ESSEX CORPORATION
(Registrant)
Date: 18 April 1995 Joseph R. Kurry, Jr.
-----------------------------------------
Joseph R. Kurry, Jr.
Vice President, Treasurer and Chief Financial Officer
(Mr. Kurry is the Principal Financial and Accounting Officer and has
been duly authorized to sign on behalf of the Registrant.)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<FISCAL-YEAR-END> Dec-25-1994
<PERIOD-START> Dec-26-1994
<PERIOD-END> Mar-26-1995
<PERIOD-TYPE> 3-MOS
<CASH> 242
<SECURITIES> 0
<RECEIVABLES> 1496
<ALLOWANCES> (206)
<INVENTORY> 0
<CURRENT-ASSETS> 2113
<PP&E> 4828
<DEPRECIATION> (3095)
<TOTAL-ASSETS> 4332
<CURRENT-LIABILITIES> 2268
<BONDS> 293
0
0
<COMMON> 235
<OTHER-SE> 1231
<TOTAL-LIABILITY-AND-EQUITY> 4332
<SALES> 3027
<TOTAL-REVENUES> 3027
<CGS> 1989
<TOTAL-COSTS> 1989
<OTHER-EXPENSES> 1332
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 23
<INCOME-PRETAX> (318)
<INCOME-TAX> 0
<INCOME-CONTINUING> (318)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (318)
<EPS-PRIMARY> (.15)
<EPS-DILUTED> (.15)
</TABLE>
