<PAGE> 1
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, 1999, 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 NO. 0-10235
GENTEX CORPORATION
(Exact name of registrant as specified in its charter)
MICHIGAN 38-2030505
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
600 N. CENTENNIAL, ZEELAND, MICHIGAN 49464
(Address of principal executive offices) (Zip Code)
(616) 772-1800
(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 (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes x No
---------- ----------
APPLICABLE ONLY TO 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 Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes No
---------- ----------
APPLICABLE ONLY TO CORPORATE USERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Shares Outstanding
Class at July 13, 1999
----- ------------------
Common Stock, $0.06 Par Value 73,208,195
Exhibit Index located at page 10
Page 1 of 11
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AT JUNE 30, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
ASSETS
------
June 30, 1999 December 31, 1998
------------- -----------------
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 92,501,739 $ 50,027,747
Short term investments 24,915,820 24,034,876
Accounts receivable, net 31,741,019 30,256,795
Inventories 8,039,228 8,726,420
Prepaid expenses and other 3,942,780 2,311,581
------------- -------------
Total current assets 161,140,586 115,357,419
PLANT AND EQUIPMENT - NET 64,346,277 59,359,885
OTHER ASSETS
Long-term investments 79,041,317 78,744,138
Patents and other assets, net 1,789,230 1,428,116
------------- -------------
Total other assets 80,830,547 80,172,254
------------- -------------
Total assets $ 306,317,410 $ 254,889,558
============= =============
<CAPTION>
LIABILITIES AND SHAREHOLDERS' INVESTMENT
----------------------------------------
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable $ 12,448,206 $ 7,602,933
Accrued liabilities 7,204,132 7,243,957
------------- -------------
Total current liabilities 19,652,338 14,846,890
DEFERRED INCOME TAXES 3,875,540 3,034,450
SHAREHOLDERS' INVESTMENT
Common stock 4,392,492 4,335,535
Additional paid-in capital 76,765,312 64,876,098
Other shareholders' equity 201,631,728 167,796,585
------------- -------------
Total shareholders' investment 282,789,532 237,008,218
------------- -------------
Total liabilities and
shareholders' investment $ 306,317,410 $ 254,889,558
============= =============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
-2-
<PAGE> 3
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
----------------------------- -----------------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
NET SALES $66,889,149 $51,371,749 $132,507,339 $108,351,151
COST OF GOODS SOLD 37,552,621 31,569,068 74,177,330 65,909,577
----------------------------- -----------------------------------
Gross profit 29,336,528 19,802,681 58,330,009 42,441,574
OPERATING EXPENSES:
Research and development 3,543,158 2,711,514 6,834,485 5,290,743
Selling, general
& administrative 3,634,323 3,055,195 7,048,531 6,091,208
----------------------------- -----------------------------------
Total operating expenses 7,177,481 5,766,709 13,883,016 11,381,951
----------------------------- -----------------------------------
Income from operations 22,159,047 14,035,972 44,446,993 31,059,623
OTHER INCOME (EXPENSE)
Interest and dividend income 1,825,062 1,355,061 3,469,541 2,601,248
Other, net 666,622 616,485 1,490,882 921,930
----------------------------- -----------------------------------
Total other income 2,491,684 1,971,546 4,960,423 3,523,178
----------------------------- -----------------------------------
Income before provision
for federal income taxes 24,650,731 16,007,518 49,407,416 34,582,801
PROVISION FOR FEDERAL INCOME TAXES 8,114,000 5,243,000 16,161,000 11,317,000
----------------------------- -----------------------------------
NET INCOME $16,536,731 $10,764,518 $33,246,416 $23,265,801
============================= ===================================
Earnings Per Share
Basic $ 0.23 $ 0.15 $ 0.46 $ 0.33
Diluted $ 0.22 $ 0.15 $ 0.44 $ 0.32
Weighted Average Shares:
Basic 72,993,935 71,560,230 72,694,625 71,332,350
Diluted 75,301,775 73,807,749 75,018,638 73,584,918
</TABLE>
See accompanying notes to condensed consolidated financial statements.
-3-
<PAGE> 4
GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
----------------- -----------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $33,246,416 $ 23,265,801
Adjustments to reconcile net income to net
cash provided by operating activities-
Depreciation and amortization 4,583,822 4,147,632
(Gain) Loss on disposal of equipment (15,613) 30,162
Deferred income taxes (22,428) (220,748)
Amortization of deferred compensation 362,850 266,089
Change in assets and liabilities:
Accounts receivable, net (1,484,224) 3,191,578
Inventories 687,192 403,126
Prepaid expenses and other (1,250,175) (101,005)
Accounts payable 4,845,273 606,654
Accrued liabilities (39,825) 100,397
----------------- -----------------
Net cash provided by
operating activities 40,913,288 31,689,686
----------------- -----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
(Increase) Decrease in short-term investments (880,944) (8,274,402)
Plant and equipment additions (9,577,502) (19,144,246)
Proceeds from sale of plant and equipment 51,375 550
(Increase) Decrease in long-term investments 1,081,375 (2,299,752)
(Increase) Decrease in other assets (414,226) (106,307)
----------------- -----------------
Net cash used for
investing activities (9,739,922) (29,824,157)
----------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock and tax benefit of
stock plan transactions 11,300,626 8,066,018
----------------- -----------------
Net cash provided by
financing activities 11,300,626 8,066,018
----------------- -----------------
NET INCREASE IN CASH AND
CASH EQUIVALENTS 42,473,992 9,931,547
CASH AND CASH EQUIVALENTS,
beginning of period 50,027,747 26,768,647
----------------- -----------------
CASH AND CASH EQUIVALENTS,
end of period $92,501,739 $ 36,700,194
================= =================
</TABLE>
See accompanying notes to condensed consolidated financial statements
-4-
<PAGE> 5
GENTEX CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(1) The condensed consolidated financial statements included herein have been
prepared by the Registrant, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. 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, although the
Registrant believes that the disclosures are adequate to make the
information presented not misleading. It is suggested that these condensed
consolidated financial statements be read in conjunction with the financial
statements and notes thereto included in the Registrant's 1998 annual
report on Form 10-K.
(2) In the opinion of management, the accompanying unaudited condensed
consolidated financial statements contain all adjustments, consisting of
only a normal and recurring nature, necessary to present fairly the
financial position of the Registrant as of June 30, 1999, and December 31,
1998, and the results of operations and cash flows for the interim periods
presented.
(3) Inventories consisted of the following at the respective quarter ends:
<TABLE>
<CAPTION>
June 30, 1999 December 31, 1998
------------- -----------------
<S> <C> <C>
Raw materials $3,899,357 $ 4,301,060
Work-in-process 926,466 926,466
Finished goods 3,213,405 3,498,894
---------- -----------
$8,039,228 $ 8,726,420
========== ===========
</TABLE>
(4) Comprehensive income reflects the change in equity of a business enterprise
during a period from transactions and other events and circumstances from
non-owner sources. For Gentex, comprehensive income represents net income
adjusted for items such as unrealized gains and losses on certain
investments and foreign currency translation adjustments. Comprehensive
income was approximately as follows:
<TABLE>
<CAPTION>
June 30, 1999 June 30, 1998
------------- -------------
<S> <C> <C>
Quarter Ended $18,449,477 $10,477,031
Six Months Ended 34,117,839 24,447,795
</TABLE>
(5) The Company currently manufactures electro-optic products, including
automatic-dimming rearview mirrors for the automotive industry and fire
protection products for the commercial building industry:
<TABLE>
<CAPTION>
Quarter Ended June 30, Six Months Ended June 30
---------------------------------- -------------------------------
Revenue: 1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Automotive Products $61,575,636 $46,240,125 $122,205,203 $ 98,317,627
Fire Protection Products 5,313,513 5,131,624 10,302,136 10,033,524
----------- ----------- ------------ ------------
Total $66,889,149 $51,371,749 $132,507,339 $108,351,151
=========== =========== ============ ============
Operating Income:
Automotive Products $21,280,828 $13,150,882 $ 42,771,716 $ 29,364,944
Fire Protection Products 878,219 885,090 1,675,277 1,694,679
----------- ----------- ------------- -------------
Total $22,159,047 $14,035,972 $ 44,446,993 $ 31,059,623
=========== =========== ============= =============
</TABLE>
(6) All earnings per share amounts and weighted daily average of shares of
common stock outstanding have been restated, to reflect the two-for-one
stock split effected in the form of a 100 percent common stock dividend
issued to shareholders on June 19, 1998.
-5-
<PAGE> 6
GENTEX CORPORATION AND SUBSIDIARIES
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
RESULTS OF OPERATIONS:
SECOND QUARTER 1999 VERSUS SECOND QUARTER 1998
Net Sales. Net sales for the second quarter of 1999 increased by
approximately $15,517,400, or 30%, when compared with the second
quarter last year. Net sales of the Company's automotive mirrors
increased by 33% as automatic mirror unit shipments increased by 34%
from approximately 1,118,000 in the second quarter of 1998 to 1,493,000
in the current quarter. This increase reflected increased penetration
on 1999 model year vehicles for interior and exterior electrochromic
Night Vision Safety(TM) (NVS(R)) Mirrors and reduced shipments in June
1998 for General Motors due to two strikes at its component plants and
the subsequent shutdown of the majority of its vehicle assembly plants.
Shipments to customers in North America increased by 41%, primarily due
to increased mirror shipments for light trucks and sport/utility
vehicles, the impact of the two strikes at General Motors in the prior
year, and higher industry production levels. Mirror unit shipments to
automotive customers outside North America increased by 17% compared
with the second quarter in 1998, primarily due to increased exterior
mirror sub-assembly shipments for certain European and Asian
automakers. Net sales of the Company's fire protection products
increased 3%, primarily due to higher sales of certain of the Company's
audible and visual signals.
Cost of Goods Sold. As a percentage of net sales, cost of goods
sold decreased from 61% in the second quarter of 1998 to 56% for
the comparable period in 1999. This decreased percentage primarily
reflected improved glass yields due to the Company's new in-house
coater and processes, and increased sales volume spread over fixed
overhead expenses.
Operating Expenses. Research and development expenses increased
approximately $832,000, but remained at 5% of net sales, when
compared with the same quarter last year, primarily reflecting
additional staffing, engineering and testing for new product
development, including mirrors with additional electronic
features. Selling, general and administrative expenses increased
approximately $579,000, but decreased from 6% to 5% of net sales,
when compared with the second quarter of 1998. This increased
expense primarily reflected increased staffing to support current
and future overseas sales growth, and the establishment in
mid-1998 of a sales and engineering office in Japan and a
warehouse distribution operation in Germany.
Other Income - Net. Other income increased by approximately
$520,000 when compared with the second quarter of 1998, primarily
due to higher investable fund balances.
SIX MONTHS ENDED JUNE 30, 1999, VERSUS SIX MONTHS ENDED JUNE 30, 1998
Net Sales. Net sales for the six months ended June 30, 1999, increased
by approximately $24,156,000, or 22%, when compared with the same
period last year. Automatic mirror unit shipments increased from
approximately 2,386,000 in the first six months of 1998 to 2,983,000 in
the first six months of 1999. This increase reflected increased
penetration on domestic and foreign 1999 model year vehicles for
interior and exterior electrochromic Night Vision Safety(TM) (NVS(R))
Mirrors and reduced shipments in June 1998 due to two strikes at
General Motors' component plants. Shipments to customers in North
America increased by 30%, primarily due to increased mirror shipments
for light trucks and sport/utility vehicles, higher industry production
levels, and the impact of two strikes at General Motors in the prior
year. Mirror unit shipments to automotive customers outside North
America increased by 14% compared with the first six months in 1998,
primarily due to increased exterior mirror sub-assemblies for certain
European and Asian automakers. Net sales of the Company's fire
protection products increased 3%, primarily due to higher sales of
certain of the Company's audible and visual signals.
Cost of Goods Sold. As a percentage of net sales, cost of goods
sold decreased from 61% in the first six months of 1998 to 56% for
the comparable period in 1999. This decreased percentage primarily
reflected improved glass yields due to the Company's new in-house
coater and processes, and increased sales volume spread over fixed
overhead expenses.
-6-
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
RESULTS OF OPERATIONS:
SIX MONTHS ENDED JUNE 30, 1999 VERSUS SIX MONTHS ENDED JUNE 30,
1998 (CONT.)
Operating Expenses. For the six months ended June 30, 1999, research
and development expenses increased approximately $1,544,000, but
remained at 5% of net sales, when compared with the same quarter last
year, pri-marily reflecting additional staffing, engineering and
testing for new product development, including mirrors with additional
electronic features. Selling, general and administrative expenses
increased approximately $957,000, but decreased from 6% to 5% of net
sales, when compared with the first six months of 1998. This increased
expense primarily reflected increased staffing to support current and
future overseas sales growth, and the establishment in mid-1998 of a
sales and engineering office in Japan and a warehouse distribution
operation in Germany.
Other Income - Net. Other income for the six months ended June 30,
1999, increased by approximately $1,437,000 as compared to the
first six months of 1998, primarily due to higher investable fund
balances and realized gains on the sale of equity investments.
FINANCIAL CONDITION:
Management considers the Company's working capital and long-term
investments totaling approximately $220,530,000 at June 30, 1999,
together with internally generated cash flow and an unsecured
$5,000,000 line of credit from a bank, to be sufficient to cover
anticipated cash needs for the foreseeable future.
TRENDS AND DEVELOPMENTS:
In addition to price reductions over the life of its long-term
agreements, the Company continues to experience pricing pressures
from its automotive customers, which have affected, and which will
continue to affect, its margins to the extent that the Company is
unable to offset the price reductions with productivity
improvements, engineering and purchasing cost reductions, and
increases in unit sales volume. In addition, the Company continues
to experience some pressure for select raw material cost increases.
The Company currently supplies NVS(R) Mirrors to DaimlerChrysler
AG, Ford Motor Company and General Motors Corporation under
long-term agreements. The long-term supply agreement with
DaimlerChrysler AG runs through the 2003 Model Year. The term of
the Ford contract is through December 1999, while the GM contract
runs through the 2002 Model Year for inside mirrors.
YEAR 2000 READINESS DISCLOSURE:
The Company has developed a plan to address its computer systems'
compliance with the Year 2000. All internal remediation activities
have been completed, and the Company completed all internal
acceptance testing during the second quarter. The Company is in the
process of ascertaining the status of its suppliers' Year 2000
compliance efforts, and plans to complete contingency plans during
the third quarter for any key suppliers that will not be compliant
on a timely basis. The Company currently believes that the cost of
addressing the Year 2000 issue will not be material to the
Company's business, operations or financial condition.
While the Company believes all necessary work will be completed,
there can be no guarantee that all systems will be in compliance by
the year 2000 or that the systems of other companies on which the
Company relies will be converted in a timely manner. Such failure
to complete the necessary work by the year 2000 could cause delays
in the Company's ability to produce or ship its products, process
transactions, or otherwise conduct business in its markets,
resulting in material financial risk.
Statements in this Quarterly Report on Form 10-Q which express
"belief", "anticipation" or "expectation" as well as other
statements which are not historical fact, are forward-looking
statements and involve risks and uncertainties described under the
headings "Management's Discussion and Analysis of Results of
Operations and Financial Condition," "Trends and Developments" and
"Year 2000 Readiness Disclosure" that could cause actual results to
differ materially from those projected. All forward-looking
statements in this Report are based on information available to the
Company on the date hereof, and the Company assumes no obligation
to update any such forward-looking statements.
-7-
<PAGE> 8
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) See Exhibit Index on Page 10.
(b) No reports on Form 8-K were filed during the three
months ended June 30, 1999.
-8-
<PAGE> 9
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GENTEX CORPORATION
Date: 07/30/99 /s/ Fred T. Bauer
--------------------- ----------------------------------
Fred T. Bauer
Chairman and Chief
Executive Officer
Date: 07/30/99 /s/ Enoch C. Jen
--------------------- ----------------------------------
Enoch C. Jen
Vice President - Finance,
Principal Financial and
Accounting Officer
-9-
<PAGE> 10
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION PAGE
- ----------- ----------- ----
<S> <C> <C>
3(a)(1) Registrant's Articles of Incorporation were filed in 1981 as Exhibit
2(a) to a Registration Statement on Form S-18 (Registration No.
2-74226C), an Amendment to those Articles was filed as Exhibit 3 to
Registrant's Report on Form 10-Q in August of 1985, an additional
Amendment to those Articles was filed as Exhibit 3(a)(i) to
Registrant's Report on Form 10-Q in August of 1987, an additional
Amendment to those Articles was filed as Exhibit 3(a)(2) to
Registrant's Report on Form 10-K dated March 10, 1992, an Amendment
to Articles of Incorporation, adopted on May 9, 1996, was filed as
Exhibit 3(a)(2) to Registrant's Report on Form 10-Q dated July 31,
1996, and an Amendment to Articles of Incorporation, adopted on May
21, 1998, was filed as Exhibit 3(a)(2) to Registrant's Report on
Form 10-Q dated July 30, 1998, all of which are hereby incorporated
herein be reference.
3(b)(1) Registrant's Bylaws as amended and restated August 18, 1995, were
filed as Exhibit 3(b) to Registrant's Report on Form 10-Q dated
November 1, 1995, and the same is incorporated herein by reference.
3(b)(2) First Amendment to Bylaws, adopted on August 25, 1997, was filed as
Exhibit 3(c) to Registrant's Report on Form 10-Q dated October 31,
1997, and the same is hereby incorporated herein by reference.
4(a) A specimen form of certificate for the Registrant's common stock,
par value $.06 per share, was filed as part of a Registration
Statement on Form S-18 (Registration No. 2-74226C) as Exhibit 3(a),
as amended by Amendment No. 3 to such Registration Statement, and
the same is hereby incorporated herein by reference.
4(b) Shareholder Protection Rights Agreement, dated as of August 26,
1991, including as Exhibit A the form of Certificate of Adoption of
Resolution Establishing Series of Shares of Junior Participating
Preferred Stock of the Company, and as Exhibit B the form of Rights
Certificate and of Election to Exercise, was filed as Exhibit 4(b)
to Registrant's Report on Form 8-K on August 20, 1991, and the same
is hereby incorporated herein by reference.
4(b)(1) First Amendment to Shareholder Protection Rights Agreement,
effective April 1, 1994, was filed as Exhibit 4(b)(1) to
Registrant's Report on Form 10-Q on April 29, 1994, and the same is
hereby incorporated herein by reference.
4(b)(2) Second Amendment to Shareholder Protection Rights Agreement,
effective November 8, 1996, was filed as Exhibit 4(b)(2) to
Registrant's Report on Form 10-K, dated March 7, 1997, and the same
is hereby incorporated herein by reference.
4(b)(3) Third Amendment to Shareholder Protection Rights Agreement,
effective March 12, 1999, was filed as Exhibit 4(b)(3) to
Registrant's Report on Form 10-Q, dated April 30, 1999, and the same
is hereby incorporated herein by reference.
10(a)(1) A Lease dated August 15, 1981, was filed as part of a Registration
Statement (Registration Number 2-74226C) as Exhibit 9(a)(1), and the
same is hereby incorporated herein by reference.
</TABLE>
-10-
<PAGE> 11
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION PAGE
- ----------- ----------- ----
<S> <C> <C>
10(a)(2) A First Amendment to Lease dated June 28, 1985, was filed as Exhibit
10(m) to Registrant's Report on Form 10-K dated March 18, 1986, and
the same is hereby incorporated herein by reference.
*10(b)(1) Gentex Corporation Qualified Stock Option Plan (as amended and
restated, effective August 25, 1997) was filed as Exhibit 10(b)(1)
to Registrant's Report on Form 10-Q, and the same is hereby
incorporated herein by reference.
*10(b)(2) Gentex Corporation 1987 Incentive Stock Option Plan (as amended
through May 24, 1989) was filed as Exhibit 10(g)(3) to Registrant's
Report on Form 10-K dated March 1, 1990, and the same is hereby
incorporated herein by reference.
*10(b)(3) Gentex Corporation Restricted Stock Plan was filed as Exhibit
10(b)(3) to Registrant's Report on Form 10-K dated March 10, 1992,
and the same is hereby incorporated herein by reference.
*10(b)(4) Gentex Corporation Non-Employee Director Stock Option Plan (as
amended and restated, effective March 7, 1997), was filed as Exhibit
10(b)(4) to Registrant's Report on Form 10-K dated March 7, 1997,
and the same is incorporated herein by reference.
10(e) The form of Indemnity Agreement between Registrant and each of the
Registrant's directors was filed as a part of a Registration
Statement on Form S-2 (Registration No. 33-30353) as Exhibit 10(k)
and the same is hereby incorporated herein by reference.
27 Financial Data Schedule
</TABLE>
------------------------------
*Indicates a compensatory plan or arrangement.
-11-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 92,501,739
<SECURITIES> 24,915,820
<RECEIVABLES> 31,741,019
<ALLOWANCES> 0
<INVENTORY> 8,039,228
<CURRENT-ASSETS> 161,140,586
<PP&E> 96,776,816
<DEPRECIATION> (32,430,539)
<TOTAL-ASSETS> 306,317,410
<CURRENT-LIABILITIES> 19,652,338
<BONDS> 0
0
0
<COMMON> 4,392,492
<OTHER-SE> 278,397,040
<TOTAL-LIABILITY-AND-EQUITY> 306,317,410
<SALES> 132,507,339
<TOTAL-REVENUES> 132,507,339
<CGS> 74,177,330
<TOTAL-COSTS> 74,177,330
<OTHER-EXPENSES> (4,960,423)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 49,407,416
<INCOME-TAX> 16,161,000
<INCOME-CONTINUING> 33,246,416
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 33,246,416
<EPS-BASIC> 0.46
<EPS-DILUTED> 0.44
</TABLE>
