<PAGE>
UNITED STATES 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 ACT OF 1934
For the quarterly period ended August 3l, l995
----------------------------------
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- ----- SECURITIES ACT OF 1934
For the transition period from to
---------------- ----------------
Commission File Number 2-74238-B
---------
LOJACK CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Massachusetts 04-2664794
- --------------------------------------------------------------------------------
(State or other jurisdiction of I.R.S. Employer
incorporation or organization) Identification Number
333 Elm Street Dedham, Massachusetts 02026
- --------------------------------------------------------------------------------
(Address of principal executive offices) (ZIP Code)
6l7-326-4700
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (l) has filed all reports required
to be filed by Section l3 or l5(d) of the Securities Exchange Act of l934 during
the preceding l2 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 ISSUERS INVOLVED
IN BANKRUPTCY PROCEEDINGS DURING
THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections l2, l3 or l5(d) of the Securities
Exchange Act of l934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes No
---- ----
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's class of
common stock, as of the lastest practicable date.
21,624,466 at October 4, 1995
-----------------------------
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
INDEX
Part I. Financial Information Page
----
Item l. Financial Statements:
Consolidated Balance Sheets:
August 3l, l995 and February 28,
l995............................................... 1
Consolidated Statements of Operations:
Three Months Ended August 3l, l995 and 1994
Six Months Ended August 3l, l995 and l994.......... 2
Consolidated Statements of Cash Flows:
Six Months Ended August 3l, l995 and l994.......... 4
Notes to Consolidated Financial
Statements......................................... 6
Item 2.
Management's Discussion and Analysis of Results
of Operations and Financial Condition................ 8
Part II. Other Information.................................... 11
Item 4. Submission of Matters to a Vote of
Security Holders
Item 6(a) Exhibits and Reports on Form 8-K
Signatures........................................... 12
Exhibit 11........................................... 13
Exhibit 27........................................... l4
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
August 31, February 28,
1995 1995
---------- ------------
(Unaudited)
<S> <C> <C>
CURRENT ASSETS:
Cash and equivalents.......................$26,069,975 $21,665,908
Accounts receivable-net.................... 5,985,466 4,258,555
Inventories................................ l,86l,634 l,845,753
Prepaid expenses and other assets.......... 89,276 63,97l
----------- -----------
Total current assets................... 34,006,35l 27,834,l87
PROPERTY AND EQUIPMENT - NET.................. 8,455,446 8,440,427
OTHER ASSETS-NET.............................. 383,ll8 420,202
----------- -----------
Total..................................$42,844,9l5 $36,694,8l6
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of
capital lease obligations ................$ 605,882 $ 65l,854
Accounts payable........................... 3,623,979 2,548,8ll
Accrued compensation ...................... 504,407 709,069
Current portion of deferred revenue........ 533,210 437,778
Deposits in escrow......................... 770,85l 7l8,668
Accrued and other liabilities.............. 7l3,492 800,260
----------- -----------
Total current liabilities............. 6,75l,82l 5,866,440
----------- -----------
DEFERRED REVENUE.............................. l,494,453 l,l64,4ll
LONG-TERM DEBT:
Capital lease obligations.................. l,026,397 799,246
l0% convertible subordinated
debentures................................ l00,000
----------- -----------
Total long-term debt.................. l,026,397 899,246
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock - $.0l par value;
authorized, 35,000,000 shares;
issued, 21,570,416 and
21,242,6l0 shares at August 3l, l995
and February 28, l995, respectively...... 2l5,705 212,527
Additional paid-in capital................. 53,984,680 53,046,4l6
Deficit....................................(20,628,l4l) (24,494,224)
----------- -----------
Total stockholders' equity................. 33,572,244 28,764,7l9
----------- -----------
Total.................................$42,844,9l5 $36,694,8l6
=========== ===========
</TABLE>
See notes to consolidated financial statements.
-1-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended
------------------
August 3l, August 3l,
1995 1994
----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C>
Revenues...................................$13,490,835 $l0,059,9ll
Cost of Goods Sold......................... 6,l28,867 5,l63,l46
----------- -----------
Gross Margin............................... 7,36l,968 4,896,765
----------- -----------
Costs and Expenses:
System costs and research and
development............................ 249,664 l37,lll
Sales & Marketing....................... 3,l06,200 2,369,574
General and administrative.............. 1,45l,874 l,234,264
Depreciation and amortization........... 490,265 59l,627
----------- -----------
Total................................ 5,298,003 4,332,576
----------- -----------
Operating Income .......................... 2,063,965 564,l89
----------- -----------
Other Income (Expense):
Interest Income.......................... 375,204 204,l64
Interest (Expense) ...................... (54,6l3) (65,4l3)
Other Income ............................ 42,742 l6,359
----------- -----------
Total................................. 363,333 l55,ll0
----------- -----------
Income before Provision for Income
Taxes .................................... 2,427,298 7l9,299
Provision for Income Taxes................. l82,000 46,500
----------- -----------
Net Income ................................$ 2,245,298 $ 672,799
Cumulative undeclared preferred
dividends for the period.................. (121,438)
----------- -----------
Net Income Applicable to
Common Stockholders.......................$ 2,245,298 $ 55l,36l
=========== ===========
Earnings per Common Share
and Common Share Equivalent............... $0.10 $0.03
===== =====
</TABLE>
See notes to consolidated financial statements.
-2-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Six Months Ended
----------------
August 3l, August 3l,
1995 l994
----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C>
Revenues...................................$25,323,573 $l8,996,633
Cost of Goods Sold......................... 11,76l,890 9,927,28l
----------- -----------
Gross Margin............................... l3,56l,683 9,069,352
----------- -----------
Costs and Expenses:
System costs and research and
development............................ 574,007 263,456
Sales & Marketing....................... 5,758,945 4,544,l67
General and administrative.............. 2,726,627 2,28l,340
Depreciation and amortization........... 963,25l l,ll7,667
----------- -----------
Total................................ 10,022,830 8,206,630
----------- -----------
Operating Income .......................... 3,538,853 862,722
----------- -----------
Other Income (Expense):
Interest Income ......................... 693,607 309,l30
Interest (Expense) ...................... ( 87,239) (260,014)
Other Income............................. 62,862 49,562
----------- -----------
Total.................................. 669,230 98,678
----------- -----------
Income before Provision for Income
Taxes .................................... 4,208,083 96l,400
Provision for Income Taxes................. 342,000 60,455
----------- -----------
Net Income ..... .......................... 3,866,083 900,945
Cumulative undeclared preferred
dividends for the period.................. (425,563)
----------- -----------
Net Income Applicable to
Common Stockholders.......................$ 3,866,083 $ 475,382
=========== ===========
Earnings per Common Share
and Common Share Equivalent:.............. $0.17 $0.03
===== =====
</TABLE>
See notes to consolidated financial statements.
-3-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Six Months Ended
----------------
August 31, August 31,
l995 l994
----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ...............................$ 3,866,083 $ 900,945
----------- -----------
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization.......... l,362,179 l,357,636
Increase (decrease) in cash from
changes in assets and liabilities:
Accounts receivable-net............ (l,726,9ll) (l,432,255)
Inventories........................ (l5,88l) 84,803
Prepaid expenses and other assets.. (25,305) l4,336
Other assets....................... 5,639 (9,602)
Accounts payable................... l,075,l68 (73l,845)
Accrued and other
liabilities. .................... 186,227 583,852
----------- -----------
Total adjustments................ 86l,ll6 (l33,075)
----------- -----------
Net cash provided by
operating activities............$ 4,727,199 $ 767,870
----------- -----------
</TABLE>
-4-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
<TABLE>
<CAPTION>
Six Months Ended
----------------
August 31, August 31,
l995 l994
----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for property and
equipment - net........................$ (682,844) $(1,459,309)
----------- -----------
Net cash used for investing
activities....................... (682,844) (1,459,309)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock................ 841,442 l3,448,090
Repayment of debt....................... (48l,730) (325,843)
Preferred dividends paid................ (3,821,626)
Other................................... (l0,486)
----------- -----------
Net cash provided by
financing activities............. 359,7l2 9,290,l35
----------- -----------
INCREASE IN CASH AND
EQUIVALENTS.............................. 4,404,067 8,598,696
BEGINNING CASH AND EQUIVALENTS............ 21,665,908 8,4l6,528
----------- -----------
ENDING CASH AND EQUIVALENTS...............$26,069,975 $l7,0l5,224
=========== ===========
</TABLE>
See notes to consolidated financial statements.
-5-
<PAGE>
LOJACK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The accompanying consolidated financial statements and notes
do not include all of the disclosures made in the Company's
Annual Report to Stockholders, which should be read in
conjunction with these statements. Certain fiscal 1995 amounts
have been reclassified to conform with the fiscal
1996 presentation. In the opinion of the Company, the
statements include all adjustments necessary for a fair
presentation of the quarterly results and any and all such
adjustments were of a normal recurring nature.
2. The results of operations for the three and six months ended
August 3l, l995 and l994 are not necessarily indicative of the
results to be expected for the full year.
3. Supplemental cash flow information:
Cash paid for interest for the six months ended August 3l,
l995 and l994 was $86,000 and $589,000, respectively. Cash
paid for income taxes for the six months ended August 3l, l995
and l994 were $354,000 and $28,000, respectively. For the six
months ended August 3l, l995 and l994 the Company incurred
capital lease obligations totaling $663,000 and $877,000
respectively, under lease agreements for new vehicles and
equipment.
4. Earnings per share
Earnings per share has been computed by dividing net earnings,
after reduction for preferred stock dividends (when
applicable), by the weighted average number of common shares
and equivalents outstanding. Common share equivalents included
in the computation represent shares issuable upon assumed
exercise of stock options and stock purchase warrants (when
applicable), which would have a dilutive effect in periods
where there are earnings.
The number of common shares and equivalents for computing
primary earnings per share for the three months ended August
3l, l995 and l994 were 23,336,988 and 2l,389,l5l,
respectively. For the six months ended August 3l, l995 and
l994 the number of common shares and equivalents used in
computing primary earnings per share were 23,l07,826 and
18,834,966, respectively. Fully diluted and primary earnings
per share were the same for the three and six months ended
August 3l, l995 and l994.
-6-
<PAGE>
5. Income Taxes
The Company has available a net operating loss carryforward of
$l9,200,000 at August 3l, l995. FASB l09 provides that a
deferred tax asset should be realized if it is "more likely
then not" that the Company will realize the tax benefit of
such carryforwards. The Company is presently evaluating its
current tax provision in light of this criteria and, if
appropriate, may reduce its provision in future quarters as
the result of recording such a deferred asset.
-7-
<PAGE>
Managements Discussion and Analysis of
Results of Operations and Financial Condition
August 31, 1995
Revenues increased by $3,431,000 and $6,327,000, or 34% and 33%, to
$13,491,000 and $25,324,000 for the three and six months ended
August 31, 1995, respectively, from $10,060,000 and $18,997,000 for
the same periods a year earlier. This increase can be attributed
primarily to increased revenues from the sales of LoJack Units and
related products of $3,029,000 and $6,022,000 for the three and six
months ended August 31, 1995 from the Company's existing domestic
markets as compared with the same periods a year earlier and to a
lesser extent revenues related to the expansion markets of
Connecticut (March,1995) and San Diego and Orange Counties in
California (June, 1995) ("the expansion markets"). Revenues
generated from international licensing agreements increased
$402,000 and $305,000, respectively, for the three and six months
ended August 31, 1995 as compared to the same periods a year
earlier. The increases in international revenues were generated
from both product sales and licensing fee revenue.
Cost of goods sold as a percentage of revenues decreased to 45% and
46%, respectively, for the three and six months ended August 31,
1995 from 51% and 52% of related revenues for the same periods a
year earlier. Domestically, cost of goods sold decreased to 46%
and 47% of related revenues for the three and six months ended
August 31, 1995, respectively, from 52% for the same periods a year
earlier. This decrease is primarily the result of a decrease in the
manufactured cost of a LoJack Unit as well as increased operating
efficiencies realized from economies of scale. Cost of goods sold
related to revenues derived from international licensing agreements
increased to 44% for the three months ended August 31, 1995 from
35% a year earlier and decreased to 36% for the six months ended
August 31, 1995 from 53% for the same period a year earlier. These
ratios fluctuate widely from quarter to quarter based upon the
revenue mix of product sales and licensing fees.
Systems costs and research and development increased by $113,000
and $311,000 to $250,000 and $574,000 for the three and six months
ended August 31, 1995, respectively, from $137,000 and $263,000,
respectively, for the same periods a year earlier. These increases
are the result of increased systems maintenance and operating costs
related to the expansion of the LoJack System to new markets during
the prior fiscal year as well as increased research and development
efforts related to improvements to the LoJack Systems.
Overall, sales and marketing expenses as a percentage of revenues
decreased to 23% for the three and six months ended August 31, 1995
from 24% for the same periods a year earlier.
-8-
<PAGE>
Sales and marketing expense increased by $737,000 and $1,215,000
to $3,106,000 and $5,759,000 for the three and six months ended
August 31, 1995 from $2,370,000 and $4,544,000 for the same periods
a year earlier. These increases were primarily related to
advertising and promotional expenses related to the expansion
markets as well as increased support expenses and payroll expenses
related to the increased revenues in existing domestic markets.
Overall, general and administrative expenses as a percentage of
revenues decreased to 11% for the three and six months ended August
31, 1995 from 12% for the same periods a year earlier.
General and administrative expenses increased by $218,000 and
$445,000 to $1,452,000 and $2,727,000 for the three and six months
ended August 31,1995, respectively, from $1,234,000 and $2,281,000
for the same periods a year earlier. These increases are primarily
the result of increased payroll costs and support service expenses
related to the increased level of business during these fiscal
periods as compared with the prior year, as well as expenses
relating to entering into international license agreements.
Depreciation and amortization decreased by $101,000 and $154,000 to
$490,000 and $963,000 for the three and six months ended August 31,
1995, respectively, from $592,000 and $1,118,000 for the same
periods a year earlier. These decreases are the result of a
significant amount of property and equipment becoming fully
depreciated during fiscal 1996 offset partially by an increase in
depreciation expense on property additions related to expansion
markets in fiscal 1995 and 1996.
Interest and other income increased by $197,000 and $398,000 for
the three and six months ended August 31, 1995, respectively, as
compared with the same periods a year earlier primarily as the
result of the increase in cash available for investment as well as
an increase in interest rates earned on investments during the
periods.
Interest expense decreased by $11,000 and $173,000 for the three
and six months ended August 31, 1995, respectively, primarily as
the result of the absence in the periods ending August 31, 1995 of
interest expense related to a third-party guarantee under a former
line of credit.
Provision for income taxes increased by $136,000 and $282,000 for
the three and six months ended August 31, 1995 as compared with the
same periods a year earlier as the result of the increase in the
Company's taxable income during the fiscal periods.
-9-
<PAGE>
As a result of the foregoing net income increased by $1,572,000 and
$2,965,000 to $2,245,000 and $3,866,000 for the three and six
months ended August 31, 1995, respectively, from $673,000 and
$901,000 for the same periods a year earlier.
LIQUIDITY AND CAPITAL RESOURCES
As of August 31, 1995, the Company had working capital of
$27,255,000 and an unused line of credit of $4,500,000.
The Company is currently in negotiations with respect to expansion
of the LoJack System to several other jurisdictions. Capital
expenditures budgeted for the remainder of the fiscal year,
including expenditures budgeted for those possible expansions total
approximately $1,900,000. For the six months ended August 31, 1995
the Company recognized cash provided by operations of $4,727,000,
compared to $768,000 for the same period last year. This increase
is the result of both increased revenues and improved gross margins
on revenues primarily dervied from the Company's domestic markets.
The Company believes that its operations, both domestic as well as
international licensing activities, will continue to be sufficient
to fund its operations and planned domestic expansions for the
forseeable future.
The Company plans on increasing its level of inventory over the
next six months by approximately $l,000,000 to $l,500,000 to both
bring the level of inventory for domestic markets up to a 60-day
supply as well as to provide for anticipated orders from
international licensees. The Company will monitor inventory levels
on a continual basis and adjust future purchasing decisions as
required.
The Company continues to investigate possible investment
opportunities utilizing current resources including, but not
limited to, possible acquisitions of, or investments in other
companies in the security industry, or repurchase of common shares
of the Company. To date, the Company has taken no formal action in
this regard.
-10-
<PAGE>
PART II - OTHER INFORMATION
Item 1. Not Applicable.
Item 2. Not Applicable.
Item 3. Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
The Annual Meeting of Stockholders of the company was held
on July l9, l995.
Stockholders acted affirmatively to elect nominees for
directors proposed by management.
Votes "For" Votes "Withheld"
----------- ----------------
C. Michael Daley l8,566,363 l4l,632
James A. Daley l8,568,263 l39,732
Harold W. Shad, III l8,568,423 l39,572
Lee T. Sprague l8,569,093 138,902
Robert J. Murray l8,568,463 139,532
Larry C. Renfro l8,56l,294 l46,70l
The Stockholders voted to ratify adoption by the Board of
Directors of the Corporation of amendments to the Restated
and Amended Stock incentive Plan of the Corporation,
increasing by l,000,000 the number of shares of Common
Stock authorized for issuance under the Plan to employees
who are eligible to receive Senior Management Options and
to permit the issuance of Senior Management Options either
as Incentive Stock Options under the Internal Revenue Code
or as Nonqualified Stock Options. A total of l6,287,544
shares were cast in favor of the proposal, 2,l89,038 votes
were cast against, and there were 23l,4l3 withheld or
abstaining.
Item 5. Not Applicable
Item 6. Exhibits and Reports on Form 8-K.
a. ll. Statement Regarding Computation of Per Share Earnings.
27. Financial Data Schedule
b. No reports on Form 8-K were filed during the quarter for
which this report is filed.
-11-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of l934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
LOJACK CORPORATION
October 10, l995 /s/ C. Michael Daley
- -------------------------- -----------------------------
Date C. Michael Daley
President and Treasurer
(Chief Executive Officer)
October 10, l995 /s/ Joseph F. Abely
- -------------------------- -----------------------------
Date Joseph F. Abely
Senior Vice President and
Chief Financial Officer
(Principal Financial and
Accounting Officer)
-12-
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
<TABLE>
<CAPTION>
Three Months Ended
------------------
August 3l, August 3l,
1995 1994
---- ----
<S> <C> <C>
Primary:
Earnings:
Net income $2,245,298 $ 672,799
Deduct preferred dividends (l2l,438)
---------- ---------
Income applicable to common
stock $2,245,298 $ 55l,36l
========== ==========
Shares:
Weighted average number of common
shares outstanding 21,43l,l29 l9,978,478
Assumed exercise of options
and warrants l,905,859 l,4l0,673
---------- ----------
Weighted average number of common
shares for primary calculation 23,336,988 21,389,l5l
========== ==========
Primary earnings
per share: $0.10 $0.03
===== =====
</TABLE>
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
(Continued)
<TABLE>
<CAPTION>
Three Months Ended
------------------
August 3l, August 3l,
1995 1994
---- ----
<S> <C> <C>
Assuming full dilution:
Earnings:
Net income item $2,245,298 $ 672,799
Deduct preferred dividends (l2l,438)
---------- -----------
Income applicable to common
stock $2,245,298 $ 55l,36l
========== ===========
Shares:
Weighted average number of common
shares outstanding 21,43l,l29 l9,978,478
Assumed exercise of options and
warrants 2,040,488 l,4l0,673
---------- ----------
Weighted average number of common
shares assuming full dilution 23,47l,6l7 2l,389,l5l
========== ==========
Fully diluted earnings per share: $0.10 $0.03
===== =====
</TABLE>
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
(Continued)
<TABLE>
<CAPTION>
Six Months Ended
----------------
August 3l, August 3l,
1995 1994
---- ----
<S> <C> <C>
Primary:
Earnings:
Net income $3,866,083 $ 900,945
Deduct preferred dividends (425,563)
---------- ---------
Income applicable to common
stock $3,866,083 $ 475,382
========== =========
Shares:
Weighted average number of common
shares outstanding 21,357,653 l8,l29,629
Assumed exercise of options
and warrants l,750,l73 705,337
---------- ---------
Weighted average number of common
shares for primary calculation 23,107,826 l8,834,966
========== ==========
Primary earnings per share: $0.17 $0.03
===== =====
</TABLE>
<PAGE>
STATEMENT REGARDING COMPUTATION OF
PER SHARE EARNINGS
EXHIBIT 11
(Continued)
<TABLE>
<CAPTION>
Six Months Ended
----------------
August 3l, August 3l,
1995 1994
---- ----
<S> <C> <C>
Assuming full dilution:
Earnings:
Net income $3,866,083 $ 900,945
Deduct preferred dividends (425,563)
---------- ----------
Income applicable to common
stock $3,866,083 $ 475,382
========== ==========
Shares:
Weighted average number of common
shares outstanding 21,357,653 l8,l29,629
Assumed exercise of options
and warrants 2,088,483 705,337
---------- ----------
Weighted average number of common
shares for primary calculation 23,446,l36 l8,834,966
========== ==========
Fully diluted earnings per share: $0.17 $0.03
===== =====
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> FEB-28-1996 FEB-28-1996
<PERIOD-START> JUN-01-1995 MAR-01-1995
<PERIOD-END> AUG-31-1995 AUG-31-1995
<CASH> 26,069,975 26,069,975
<SECURITIES> 0 0
<RECEIVABLES> 6,227,592 6,227,592
<ALLOWANCES> 242,126 242,126
<INVENTORY> 1,861,634 1,861,634
<CURRENT-ASSETS> 34,006,351 34,006,351
<PP&E> 19,631,713 19,631,713
<DEPRECIATION> 11,176,267 11,176,267
<TOTAL-ASSETS> 42,844,915 42,844,915
<CURRENT-LIABILITIES> 6,751,821 6,751,821
<BONDS> 0 0
<COMMON> 215,075 215,075
0 0
0 0
<OTHER-SE> 33,356,539 33,356,539
<TOTAL-LIABILITY-AND-EQUITY> 42,844,915 42,844,915
<SALES> 13,340,835 24,886,240
<TOTAL-REVENUES> 13,490,835 25,323,573
<CGS> 6,128,867 11,761,890
<TOTAL-COSTS> 6,128,867 11,761,890
<OTHER-EXPENSES> 5,298,003 10,022,830
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 54,613 87,239
<INCOME-PRETAX> 2,427,298 4,208,083
<INCOME-TAX> 182,000 342,000
<INCOME-CONTINUING> 2,245,298 3,866,083
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 2,245,298 3,866,083
<EPS-PRIMARY> .10 .17
<EPS-DILUTED> .00 .00
</TABLE>
