<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT of 1934
For Quarter Ended October 31, 1996 Commission File Number 0-10761
LTX CORPORATION
(Exact name of registrant as specified in its charter)
MASSACHUSETTS 04-2594045
- ------------------------------ -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
LTX PARK AT UNIVERSITY AVENUE, WESTWOOD, MASSACHUSETTS 02090
------------------------------------------------------------
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code (617) 461-1000
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
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at November 26, 1996
- --------------------------------------- --------------------------------
Common Stock, par value $0.05 per share 35,092,903
<PAGE> 2
LTX CORPORATION
Index
Page Number
Part I. FINANCIAL INFORMATION
Consolidated Balance Sheet 1
October 31, 1996 and July 31, 1996
Consolidated Statement of Operations
Three months ended October 31, 1996
and October 31, 1995 2
Consolidated Statement of Cash Flows
Three months ended October 31, 1996
and October 31, 1995 3
Notes to Consolidated Financial Statements 4 - 5
Management's Discussion and Analysis of
Financial Condition and Results of Operations 6 - 10
Part II. OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K 11
SIGNATURES 12
<PAGE> 3
LTX CORPORATION
<TABLE>
CONSOLIDATED BALANCE SHEET
(Unaudited)
(In thousands)
<CAPTION>
OCTOBER 31, JULY 31,
1996 1996
----------- --------
<S> <C> <C>
ASSETS
Current assets:
Cash and equivalents $ 53,897 $ 66,069
Short-term investments 6,943 9,941
Accounts receivable, net 41,948 46,201
Inventories 58,047 66,496
Other current assets 4,494 5,239
-------- --------
Total current assets 165,329 193,946
Property and equipment, net 38,701 37,880
Other assets 3,476 3,493
-------- --------
$207,506 $235,319
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and current portion of
long-term liabilities $ 12,570 $ 12,395
Accounts payable 15,882 28,451
Accrued expenses and restructuring charges 12,975 9,052
Unearned service revenues and customer advances 6,087 6,429
-------- --------
Total current liabilities 47,514 56,327
-------- --------
Long-term liabilities, less current portion 17,578 16,645
Convertible subordinated debentures 7,308 7,308
Stockholders' equity:
Common stock, $0.05 par value 1,801 1,800
Additional paid-in capital 191,469 191,455
Accumulated deficit (56,013) (37,211)
Less - treasury stock (2,151) (1,005)
-------- --------
Total stockholders' equity 135,106 155,039
-------- --------
$207,506 $235,319
======== ========
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
- 1 -
<PAGE> 4
LTX CORPORATION
<TABLE>
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share amounts)
<CAPTION>
THREE MONTHS
ENDED
OCTOBER 31,
--------------------
1996 1995
-------- -------
<S> <C> <C>
Net sales $ 44,666 $62,158
Cost of sales 31,347 38,728
Inventory provision for product line restructuring 9,250 --
-------- -------
Gross margin 4,069 23,430
Engineering and product development expenses 6,109 5,342
Selling, general and administrative expenses 10,135 10,978
Product line restructuring costs 6,750 --
-------- -------
Income (loss) from operations (18,925) 7,110
Interest (income) expense, net (123) 350
-------- -------
Income (loss) before income taxes (18,802) 6,760
Provision for income taxes -- 214
-------- -------
Net income (loss) $(18,802) $ 6,546
======== =======
Fully diluted net income (loss) per share $ (0.53) $ 0.19
Weighted average shares 35,715 34,165
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
- 2 -
<PAGE> 5
LTX CORPORATION
<TABLE>
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(In thousands)
<CAPTION>
THREE MONTHS
ENDED
OCTOBER 31,
-------------------------
1996 1995
-------- -------
<S> <C> <C>
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income (loss) $(18,802) $ 6,546
Add (deduct) non-cash items:
Depreciation and amortization 2,711 2,677
Exchange (gain) loss (19) (478)
(Increase) decrease in:
Accounts receivable 3,815 584
Inventories 8,449 (4,940)
Other current assets 728 (110)
Other assets 17 (83)
Increase (decrease) in:
Accounts payable (12,515) (358)
Accrued expenses and restructuring charges 3,990 (692)
Unearned service revenues and advances (342) (686)
-------- -------
Net cash provided by (used in) operating activities (11,968) 2,460
-------- -------
CASH USED IN INVESTING ACTIVITIES:
Expenditures for property and equipment, net (3,532) (3,660)
Maturities of held-to-maturity securities, net 2,998 --
-------- -------
Net cash used in investing activities (534) (3,660)
-------- -------
CASH PROVIDED BY FINANCING ACTIVITIES:
Proceeds from stock purchase and option plans 15 350
Increase (decrease) in bank debt (52) 659
Payments of long-term debt (164) (116)
Sale of Common Stock -- 55,811
Purchase of treasury stock (1,146) --
Proceeds from lease financing 1,888 --
-------- -------
Net cash provided by financing activities 541 56,704
-------- -------
Effect of exchange rate changes on cash (211) (318)
-------- -------
Net increase (decrease) in cash and equivalents (12,172) 55,186
Cash and equivalents at beginning of period 66,069 29,183
-------- -------
Cash and equivalents at end of period $ 53,897 $84,369
======== =======
Supplemental Cash Flow Disclosures
Cash paid during the period for:
Interest $ 427 $ 470
Income taxes $ 1,533 $ 180
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
- 3 -
<PAGE> 6
LTX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1 . The Company
-----------
LTX Corporation ("the Company") designs, manufactures, and markets
automatic test equipment for the semiconductor industry that is used
to test mixed signal, digital, linear and discrete semiconductor
components. Headquartered in Westwood, Massachusetts, the Company
has development and manufacturing facilities in Westwood,
Massachusetts and San Jose, California and worldwide sales and
service facilities to support its customer base.
2 . Summary of Significant Accounting Policies
------------------------------------------
BASIS OF PRESENTATION
The accompanying financial statements have been prepared by the
Company, without audit, and reflect all adjustments which, in the
opinion of management, are necessary for a fair statement of the
results of the interim periods presented. The preparation of
financial statements in conformity with generally accepted
accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets and
liabilities and disclosures of contingent assets and liabilities as
of the date of the financial statements and the reported amounts of
income and expenses during the reporting periods. Certain
information and footnote disclosures normally included in the annual
financial statements which are prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
Accordingly, although the Company believes that the disclosures are
adequate to make the information presented not misleading, the
financial statements should be read in conjunction with the
footnotes contained in the Company's Annual Report on Form 10-K.
REVENUE RECOGNITION
Revenues from product sales and related warranty costs are
recognized at the time of shipment. Service revenues are recognized
over the applicable contractual periods or as services are
performed. Revenues form engineering contracts are recognized over
the contract period on a percentage of completion basis.
NET INCOME (LOSS) PER SHARE
Fully diluted net income per share is based on the weighted average
number of shares of common stock and common stock equivalents
outstanding. Common stock equivalents include shares issuable under
stock option plans and warrants to purchase shares. None of the
Company's Convertible Subordinated Debentures are common stock
equivalents. Fully diluted net loss per share is based on the
weighted average number of shares of common stock outstanding only,
as the inclusion of common stock equivalents would be anti-dilutive.
<TABLE>
INVENTORIES
Inventories are stated at the lower of cost (first-in, first-out) or
market and include material, labor and manufacturing overhead.
Inventories consisted of the following at:
<CAPTION>
OCTOBER 31, JULY 31,
1996 1996
----------- --------
(In thousands)
<S> <C> <C>
Raw materials $11,975 $17,752
Work-in-process 31,049 34,261
Finished goods 15,023 14,483
------- -------
$58,047 $66,496
======= =======
</TABLE>
- 4 -
<PAGE> 7
LTX CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Unaudited)
3 . Recent Accounting Pronouncements
--------------------------------
The Company adopted Statement of Financial Accounting Standards No.
121, "Accounting for the Impairment of Long-lived Assets and for
Long-lived Assets to Be Disposed Of" (FAS 121) effective August 1,
1996. The application of this new statement did not have a material
effect on the results of operations or financial condition of the
Company.
In December 1995, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 123, "Accounting for
Stock-Based Compensation" (FAS 123) which is effective for the
Company's fiscal year ended July 31, 1997. FAS 123 requires employee
stock-based compensation to be either recorded or disclosed at its
fair value. The Company will continue to account for employee
stock-based compensation under Accounting Principles Board Opinion
No. 25 and will not adopt the new accounting standard for employee
stock-based compensation under FAS 123, but will include the
additional required disclosures in the fiscal year ended July 31,
1997 consolidated financial statments.
<TABLE>
4 . Interest Expense and Income
---------------------------
Interest expense and income were as follows:
<CAPTION>
Three Months
Ended
October 31,
--------------------
1996 1995
--------------------
(In thousands)
<S> <C> <C>
Expense $ 695 $ 662
Income (818) (312)
----- -----
Interest expense, net $(123) $ 350
===== =====
</TABLE>
- 5 -
<PAGE> 8
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
<TABLE>
The following table sets forth for the periods indicated the principal items
included in the Consolidated Statement of Operations as a percentage of total
net sales.
<CAPTION>
PERCENTAGE OF NET SALES PERCENTAGE
THREE MONTHS INCREASE/(DECREASE)
ENDED THREE MONTHS
OCTOBER 31 1996
----------------------- OVER
1996 1995 1995
------ ------ ------------------
<S> <C> <C> <C>
Net sales 100.0% 100.0% (28.1)%
Cost of sales 70.2 62.3 (19.1)
Inventory provision for product line
restructuring 20.7 -- N/M
----- -----
Gross margin 9.1 37.7 (82.6)
Engineering and product
development expenses 13.7 8.6 14.4
Selling, general and
administrative expenses 22.7 17.7 (7.7)
Product line restructuring costs 15.1 -- N/M
----- -----
Income (loss) from operations (42.4) 11.4 N/M
Interest (income) expense, net (0.3) 0.6 N/M
----- -----
Income (loss) before income taxes (42.1) 10.8 N/M
Provision for income taxes -- 0.3 N/M
----- -----
Net income (loss) (42.1)% 10.5% N/M
===== =====
<FN>
N/M - Not meaningful
</TABLE>
- 6 -
<PAGE> 9
Results of Operations:
- ---------------------
Three Months Ended October 31, 1996 Compared
to the Three Months Ended October 31, 1995
Net sales for the three months ended October 31, 1996 were $44.7 million as
compared to $62.2 million in the same quarter in the prior year, a decrease of
28.1%. Shipments of the Company's Digital products were down most significantly
in the current fiscal quarter as compared with the same quarter in the prior
year. Weak seminconductor equipment industry conditions, which decreased the
Company's level of business in the fourth quarter ended July 31, 1996, continued
during the first quarter of the current fiscal year. Although the level of
orders received in the first fiscal quarter were slightly higher than the
preceding quarter ended July 31, 1996, they were below the level of shipments
for the quarter.
Excluding the inventory provision for product line restructuring, the gross
profit margin was 29.8% of net sales in the three months ended October 31, 1996
as compared to 37.7% in the same quarter in the prior year. Although the Company
took steps to significantly reduce its production capacity during the quarter,
the gross profit margin was adversely affected by the relationship of fixed
manufacturing costs to the much lower level of shipments. In addition, fixed
costs associated with the Company's applications assistance and warranty support
organizations also had an adverse affect on the gross profit margin as a
percentage of net sales.
On September 23, 1996, the Company announced a management change and appointed
Roger Blethen, who had been one of the Company's two Presidents, its sole Chief
Executive Officer. During October, the Company redirected its Digital product
strategy to focus on functionally complex VLSI devices such as multimedia
circuits, microcontrollers with embedded memory and "Systems-on-a-Chip". This
new direction will emphasize sales of the recently introduced Delta/STE test
system and future product development. Systems for this market will make use of
the functional capabilities of the Company's Delta and Synchro product
technologies. As a result of this new strategy, the Company restructured its
Digital Products Division management team and took an inventory provision of
$9.3 million for non-strategic products and additional charges of $6.7 million
for cancelled non-strategic development projects and related equipment, future
costs resulting from the change in product strategy and severance costs related
to a workforce reduction. During the first quarter, the Company eliminated 180
positions, primarily in its manufacturing operations.
Engineering and product development expenses were $6.1 million, or 13.7% of
net sales, in the three months ended October 31, 1996, as compared to $5.3
million, or 8.6% of net sales, in the same quarter in the prior year. The
increase in engineering and product development expenses reflects additional
resources applied to product development programs for the Company's Synchro and
Delta product lines
Selling, general and administrative expenses were $10.1 million, or 22.7% of
net sales, in the three months ended October 31, 1996, as compared to $11.0
million, or 17.7% of net sales, in the same quarter of the prior year. The
decrease in selling, general and administrative expenses reflects lower variable
compensation for sales commissions, as well as the absence of employee profit
sharing and management bonuses in the current quarter. In addition, lower travel
costs and a reduction in other discretionary spending contributed to the decline
in selling, general and adminstrative expenses.
Net interest income was $0.1 million in the three months ended October 31,
1996 as compared to net interest expense of $0.4 million in the same period in
the prior year. The increase in interest income in the three months ended
October 31, 1996 was a result of income generated by the proceeds from the sale
of 5.25 million shares of the Company's common stock in October 1995.
- 7 -
<PAGE> 10
There was no tax provision in the three months ended October 31, 1996 due to
the loss. In the three months ended October 31, 1995, the tax provision of $0.2
million reflected certain state and foreign tax provisions.
The Company had a net loss for the three months ended October 31, 1996 of $2.8
million, excluding inventory and product line restructuring provisions, or $0.08
net loss per share, as compared to net income of $6.5 million, or $0.19 net
income per share, in the same period of the prior year. Including the inventory
provision of $9.3 million and the product line restructuring provision of $6.7
million, the total net loss for the three months ended October 31, 1996 was
$18.8 million, or $0.53 net loss per share.
Management believes that the current weak semiconductor equipment industry
conditions will continue for the near term. These conditions will continue to
adversely affect the Company's results of operations. The Company has reduced
its workforce by 180 positions since July 31, 1996 and has taken additional
steps to reduce discretionary spending and limit capital expenditures in fiscal
1997. In addition, the Company has redirected its digital product line strategy
and has taken steps to consolidate its manufacturing operations.
Liquidity and Capital Resources:
- -------------------------------
Cash and short-term investments, combined, were $60.8 million at October 31,
1996 as compared to $76.0 million at July 31, 1996. During the three months
ended October 31, 1996, the Company used $12.0 million in cash for operating
activities and $3.5 million in cash in expenditures for propery and equipment.
The $12.0 million of net cash used in operating activities was largely a
result of the reduction in accounts payable during the quarter. Accounts payable
were $15.9 million at October 31, 1996 as compared to $28.5 million at July 31,
1996. Accounts receivable of $42.0 million at October 31, 1996 was $4.2 million
lower than July 31, 1996, although sales were $22.6 million lower in the first
quarter of the current fiscal year as compared to the three months ended July
31, 1996. The Company's reliance on a higher level of book/ship business in the
current quarter reduced its ability to ship evenly and, consequently, receivable
collections were significantly lower. The decline in inventories from $66.5
million at July 31, 1996 to $58.0 million at October 31, 1996, primarily relates
to the inventory provision for product line restructuring of $9.3 million. The
increase in accrued expenses and restructuring charges largely relates to the
$6.7 million charge for product line restructuring. Cash outlays relating to the
product line restructuring charge were $0.5 million in the three months ended
October 31, 1997.
Additions for property and equipment were $3.5 million for the three months
ended October 31, 1996 and exceeded depreciation charges of $2.7 million.
Additions in the period included initial expenditures for a new management
information system, which was funded through lease financing.
The Company's Japanese subsidiary had bank borrowings of $7.8 million at
October 31, 1996 as compared to $8.3 million at July 31, 1996. There were no
borrowings outstanding under the Company's domestic bank line at October 31,
1996 or July 31, 1996.
The Company purchased 0.3 million shares of its common stock, for $1.2
million, during the three months ended October 31, 1996 under its stock
repurchase program that was announced in June 1996.
Management believes that the Company has sufficient cash resources to meet its
remaining fiscal 1997 requirements. These resources include cash and short-term
investments of $60.8 million at October 31, 1996 together with future cash flows
from operations.
- 8 -
<PAGE> 11
Forward-looking Statements
- --------------------------
The Company in this report makes, and may from time to time elsewhere make,
disclosures which contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such disclosures in this
report include, without limitation, the Company's belief, under "Liquidity and
Capital Resources", as to the adequacy of its cash resources. Such
forward-looking statements involve risks and uncertainties including, but not
limited to, the following important factors that could cause actual results to
differ materially from those in the forward-looking statement:
Cyclicality of Semiconductor Industry
- -------------------------------------
The Company's business is largely dependent upon the capital expenditures of
semiconductor manufacturers. The semiconductor industry is highly cyclical and
has historically experienced, and is currently experiencing, recurring periods
of oversupply, which often have had a severely detrimental effect on such
industry's demand for test equipment and could cause cancellations,
reschedulings or reductions of customer orders. No assurance can be given that
the Company's business and results of operations will not be materially
adversely affected if the current weak market conditions continue for a
prolonged period or if weak market conditions or changes in any particular
market segments of the semiconductor industry occur in the future, especially if
all of the market segments in which the Company participates experience
downturns at the same time.
Fluctuations in Sales and Operating Results
- -------------------------------------------
Given the relatively large selling prices of the Company's test systems, sales
of a limited number of test systems account for a substantial portion of sales
in any particular fiscal quarter and a small number of transactions could
therefore have a significant impact on sales and gross margins for that fiscal
quarter. The Company's sales and operating results have fluctuated and could in
the future fluctuate significantly from period to period, including from one
quarterly period to another, due to a combination of factors, including the
cyclical demand of the semiconductor industry, order cancellations or
reschedulings by customers, the large selling prices of the Company's test
systems (which typically result in a long selling process), competitive pricing
pressures and the mix between and configuration of digital and linear/mixed
signal and discrete component test systems sold in a particular period. The
impact of these and other factors on the Company's sales and operating results
in any future period cannot be forecast with accuracy. In addition, the need for
continued investment in research and development, for capital equipment
requirements and for extensive worldwide customer support capability results in
significant fixed costs which would be difficult to reduce in the event that the
Company does not meet its sales objectives.
Importance of New Product Introductions
- ---------------------------------------
The semiconductor test equipment ("STE") market is subject to rapid
technological change and new product introductions, as well as advancing
industry standards. The development of increasingly complex semiconductors and
the utilization of semiconductors in a broader spectrum of products has driven
the need for more advanced test systems to test such devices at an acceptable
cost. The Company's ability to remain competitive in the digital, linear and
mixed signal integrated circuit ("IC") and discrete component markets will
depend upon its ability to successfully enhance existing test systems and
develop new generations of test systems and to introduce these new products on a
timely and cost-effective basis. The Company also has to manufacture its
products in volume at a competitive price and on a timely basis to enable
customers to integrate them into their operations as they begin to produce their
next generation of semiconductors. The Company's failure to have a competitive
test system available when required by a semiconductor manufacturer would make
it substantially more difficult for the Company to sell test systems to that
- 9 -
<PAGE> 12
manufacturer for a number of years. The Company has in the past experienced
delays in introducing certain of its products and enhancements, and there can be
no assurance that it will not encounter technical or other difficulties that
could in the future delay the introduction of new products or enhancements. If
new products have reliability or functionality problems, then reduced, cancelled
or rescheduled orders, higher manufacturing costs, delays in collecting accounts
receivable and additional warranty expense may result, which could reduce gross
margins on new product sales and otherwise materially affect the Company's
business and results of operations. The Company's newly introduced Delta/STE is
subject to the risks associated with new product introductions, including the
risk that reliability or functionality problems could increase expenses and
reduce gross margins on new product sales. Furthermore, announcements by the
Company or its competitors of new products could cause customers to defer or
forego purchases of the Company's existing products, which would also adversely
affect the Company's business and results of operations. There can be no
assurance that the Company will be successful in the introduction and volume
manufacture of its new products, that such introduction will coincide with the
development by semiconductor manufacturers of their next generation
semiconductors or that such products will satisfy customer needs or achieve
market acceptance. The failure to do so could materially adversely affect the
Company's business and results of operations.
Acquisitions
- ------------
The Company from time to time may acquire technologies, product lines or
businesses that are complementary to those of the Company. There can be no
assurance that the Company will be able to successfully negotiate finance or
integrate such acquired technologies, product lines or businesses. Furthermore,
the integration of an acquired company or business may cause a diversion of
management time and resources. There can be no assurance that a given
acquisition, if consummated, would not materially adversely affect the Company.
Proprietary Rights
- ------------------
The Company's future success depends in part upon its proprietary technology.
Although the Company attempts to protect its proprietary technology through a
combination of contract provisions, trade secrets, copyrights and patents, it
believes that its future success depends more upon its engineering,
manufacturing, marketing and service skills. There can be no assurance that the
steps taken by the Company to protect its proprietary rights will be adequate to
prevent misappropriation of its technology or the independent development by
others of similar technology. Although there are no pending actions against the
Company regarding any patents, no assurance can be given that infringement
claims by third parties will not have a material adverse effect on the Company's
business and results of operations.
- 10 -
<PAGE> 13
PART II -- OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule
(b) There were no reports on Form 8-K filed during the three months
ended October 31, 1996.
- 11 -
<PAGE> 14
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.
<TABLE>
<S> <C>
LTX Corporation
Date: December 5, 1996 By: /s/ Roger W. Blethen
----------------------- -----------------------------------------------
Roger W. Blethen
Chief Executive Officer and President
Date: December 5, 1996 By: /s/ John J. Arcari
----------------------- -----------------------------------------------
John J. Arcari
Treasurer
Chief Financial Officer
(Principal Financial Officer)
Date: December 5, 1996 By: /s/ Glenn W. Meloni
----------------------- -----------------------------------------------
Glenn W. Meloni
Controller
(Principal Accounting Officer)
</TABLE>
- 12 -
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-START> AUG-01-1996
<PERIOD-END> OCT-31-1996
<EXCHANGE-RATE> 1
<CASH> 55,897
<SECURITIES> 6,943
<RECEIVABLES> 42,648
<ALLOWANCES> 700
<INVENTORY> 58,047
<CURRENT-ASSETS> 165,329
<PP&E> 101,162
<DEPRECIATION> 62,461
<TOTAL-ASSETS> 207,506
<CURRENT-LIABILITIES> 47,514
<BONDS> 24,886
<COMMON> 1,801
0
0
<OTHER-SE> 191,469
<TOTAL-LIABILITY-AND-EQUITY> 207,506
<SALES> 38,006
<TOTAL-REVENUES> 44,666
<CGS> 27,847
<TOTAL-COSTS> 31,347
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 695
<INCOME-PRETAX> (18,802)
<INCOME-TAX> 0
<INCOME-CONTINUING> (18,802)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (18,802)
<EPS-PRIMARY> (0.53)
<EPS-DILUTED> (0.53)
</TABLE>
