UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------
Form 10-Q
---------------------
/X/ Quarter report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended March 31, 1998 or
/ / Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the period from __________ to ___________
Commission file number 0-5404
_____________________
HADRON, INC.
(Exact name of registrant as specified in its charter)
New York 11-2120726
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4900 Seminary Road, Suite 800
Alexandria, Virginia 22311
(Address of principal executive offices)
Registrant's Telephone number including area code
(703) 824-0400
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
___ ___
As of May 8, 1998, 1,686,684 shares of the Common Stock of the
registrant were outstanding.
<PAGE>
HADRON, INC.
TABLE OF CONTENTS
Part I Financial Information: Page No.
Item 1. Financial Statements
Consolidated Balance Sheets at 3
March 31, 1998 and June 30, 1997
Consolidated Statements 5
of Operations for the Three and Nine
Months Ended March 31, 1998 and 1997
Consolidated Statements of 6
Cash Flows for the Nine Months Ended
March 31, 1998 and 1997
Notes to Consolidated 7
Financial Statements
Item 2. Management's Discussion and Analysis 9
of Financial Condition and Results
of Operations
Part II Other Information:
Item 6. Exhibits and Reports on Form 8-K 13
SIGNATURES 14
<PAGE>
<TABLE>
HADRON, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1998 AND JUNE 30, 1997
<CAPTION>
MARCH 31, JUNE 30,
ASSETS 1998 1997
------------ -------------
(Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 32,100 $ 24,700
Accounts receivable, net 2,881,100 2,312,100
Note receivable 32,000 90,200
Prepaid expenses and other 19,500 20,600
------------ ------------
Total current assets 2,964,700 2,447,600
------------ ------------
Fixed assets 87,500 82,800
Note receivable 8,600
Investment in PEI and related notes receivable,
net of deferred income of $2,000,000 174,300 158,400
Other 9,300 14,500
------------ ------------
Total other assets 271,100 264,300
------------ ------------
Total assets $ 3,235,800 $ 2,711,900
============ ============
</TABLE>
See Notes to Consolidated Financial Statements
(Unaudited)
-3-
<PAGE>
<TABLE>
HADRON, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1998 AND JUNE 30, 1997
<CAPTION>
MARCH 31, JUNE 30,
LIABILITIES AND SHAREHOLDERS' DEFICIT 1998 1997
------------ ------------
(Unaudited)
<S> <C> <C>
Current liabilities
Accounts payable $ 855,000 $ 1,402,300
Note payable - line of credit 17,300
Other current liabilities 2,512,600 1,933,800
------------ ------------
Total current liabilities 3,367,600 3,353,400
------------ ------------
Notes payable - related party 120,000 120,000
Other 52,400 49,300
------------ ------------
Total long-term liabilities 172,400 169,300
------------ ------------
Commitments and contingencies
Total liabilities 3,540,000 3,522,700
------------ ------------
Shareholders' deficit:
Common stock $.02 par; authorized 20,000,000 shares;
issued and outstanding - 1,686,684 shares 33,800 33,800
Additional capital 9,302,800 9,302,800
Accumulated deficit (9,640,800) (10,147,400)
------------ ------------
Total shareholders' deficit (304,200) (810,800)
------------ ------------
Total liabilities and shareholders' deficit $ 3,235,800 $ 2,711,900
============ ============
</TABLE>
See Notes to Consolidated Financial Statements
(Unaudited)
-4-
<PAGE>
<TABLE>
HADRON, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 1998 AND 1997
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
--------- ---------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Revenues $ 5,411,600 $ 4,294,000 $ 15,476,700 $ 12,153,500
------------ ------------ ------------ ------------
Operating costs and expenses:
Costs of revenue 4,587,400 3,711,300 13,298,900 10,511,900
Development costs of HeaTreaT 231,800 431,300
Selling, general and administrative 573,200 379,500 1,580,300 1,166,400
------------ ------------ ------------ ------------
Total operating costs and expenses 5,160,600 4,322,600 14,879,200 12,109,600
------------ ------------ ------------ ------------
Operating income (loss) 251,000 (28,600) 597,500 43,900
------------ ------------ ------------ ------------
Other expense:
Interest expense, net (5,500) (10,800) (45,500) (29,600)
Other income (expense) 1,900 (5,900) (1,900) (17,700)
------------ ------------ ------------ ------------
Total other expense (3,600) (16,700) (47,400) (47,300)
------------ ------------ ------------ ------------
Income (loss) before income taxes 247,400 (45,300) 550,100 (3,400)
Provision for income taxes 15,000 12,000 43,500 29,000
------------ ------------ ------------ ------------
Net income (loss) $ 232,400 $ (57,300) $ 506,600 $ (32,400)
============ ============ ============ ============
Per share data:
Net income (loss) per share
Basic $ .14 $ (.03) $ .30 $ (.02)
============ ============ ============ ============
Diluted $ .08 $ (.03) $ .18 $ (.02)
============ ============ ============ ============
Weighted average number of shares
Basic 1,686,684 1,506,685 1,686,684 1,506,018
============ ============ ============ ============
Diluted 2,988,143 1,506,685 2,885,567 1,506,018
============ ============ ============ ============
</TABLE>
See Notes to Consolidated Financial Statements
(Unaudited)
-5-
<PAGE>
<TABLE>
HADRON, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 1998 AND 1997
<CAPTION>
Nine Months Ended
March 31,
--------
1998 1997
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $506,600 ($32,400)
------------ ------------
Adjustments to reconcile net income to net
cash provided (used) by operating activities:
Depreciation and amortization 23,800 57,600
Provision for doubtful accounts, net (75,600)
Other 700
Changes in operating assets and liabilities:
Accounts receivable (502,200) (21,500)
Prepaid expenses and other 1,100 19,600
Other assets 5,200 (10,800)
Accounts payable (547,300) (163,500)
Other current liabilities 578,800 13,400
Other long-term liabilities 3,100 3,000
------------ ------------
Total adjustments (437,500) (177,100)
------------ ------------
Net cash provided (used) by operating activities 69,100 (209,500)
------------ ------------
Cash flows from investing activities:
Property additions (28,500) (59,700)
Investment in PEI (15,900)
------------ ------------
Net cash used in investing activities (44,400) (59,700)
------------ ------------
Cash flows from financing activities:
Proceeds of borrowings on bank and other loans 779,400 296,600
Payments on bank and other loans (796,700) (25,000)
------------ ------------
Net cash provided (used) by financing activities (17,300) 271,600
------------ ------------
Net increase in cash and cash equivalents 7,400 2,400
Cash and cash equivalents at beginning of period 24,700 43,900
------------ ------------
Cash and cash equivalents at end of period $32,100 $46,300
============ ============
</TABLE>
See Notes to Consolidated Financial Statements
(Unaudited)
-6-
<PAGE>
HADRON, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. Basis of Presentation
The interim consolidated financial statements for Hadron, Inc.
(the "Company") are unaudited, but in the opinion of management
reflect all adjustments (consisting only of normal recurring
accruals) necessary for a fair presentation of results for such
periods. The results of operations for any interim period are not
necessarily indicative of results for the full year. The balance
sheet at June 30, 1997 has been derived from the audited financial
statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles
for complete financial statements. These consolidated financial
statements should be read in conjunction with the financial
statements and notes thereto included in the Company's Annual
Report on Form 10-K for the year ended June 30, 1997 ("1997 Form
10-K") filed with the Securities and Exchange Commission.
Certain reclassifications have been made to prior year amounts
to conform to current year classifications.
In February 1997, the Financial Accounting Standards Board
issued Statement No. 128, Earnings per Share, which has been
adopted as of December 31, 1997. The Company was required to
change the method currently used to compute earnings per share and
to restate all prior periods. Under the new requirements for
calculating basic earnings per share, the dilutive effect of stock
options has been excluded. In calculating diluted earnings per
share, the dilutive effect of options, warrants and convertible
debt is considered.
In June 1997, the Financial Accounting Standards Board issued
Statement No. 130, Comprehensive Income, and Statement No. 131,
Disclosures about Segments of an Enterprise and Related
Information, which are required to be adopted for fiscal years
beginning after December 15, 1997. Upon the effective date of each
of the new statements, the Company will make the necessary changes
to comply with the provisions of each statement and restate all
prior periods presented. The Company does not expect the adoption
of these statements to have a material impact on the Company's
financial condition or results of operations.
<PAGE>
2. Note Payable - Line of Credit
In June 1997, the Company entered into a Line of Credit
Agreement with Century National Bank pursuant to which Century
National Bank provided the Company with a $800,000 line of credit
facility through November 30, 1998, replacing a $300,000 facility
set to expire in December 1997. Borrowings under the facility are
personally guaranteed by Dr. Gilluly and his wife. The line of
credit bears interest, payable monthly, at the prime rate plus two
percent. There were no borrowings under the facility at March 31,
1998.
3. Notes Payable - Related Party
Certain members of the Company's management or Board of
Directors (the "Investors"), each agreed to invest $24,000 in the
Company in the form of five separate two-year promissory notes, the
principal of which is convertible at $.60 per share, at each of his
or her respective option, into restricted shares of the Company's
Common Stock. Such notes also provide that upon prepayment by the
Company of principal outstanding under the notes, the Company shall
issue to the note holder a warrant to acquire Common Stock at $.60
per share. The number of shares each warrant shall entitle the
holder thereof to acquire shall equal the principal prepaid giving
rise to the warrant divided by $.60. The notes payable - related
party bear interest, payable quarterly, at ten percent per annum.
4. Note Receivable
In December 1996, the Company obtained a $148,600 note
receivable from a commercial customer to satisfy an outstanding
accounts receivable. Principal and interest at 10% is due in
monthly installments of $8,000 with a final payment of $8,700 due
July 15, 1998. At March 31, 1998, the Company has received its
required monthly installments.
5. Concentration of Business
The Company provides a broad range of information technology
management services to businesses and federal government agencies.
Revenues from services performed under direct and indirect long-
term contracts and subcontracts with government defense and
intelligence agencies comprise the majority of the Company's
business. The majority of the Company's technical and professional
service business with governmental departments and agencies is
obtained through competitive procurement and through "follow-up"
services related to existing contracts. The Company maintains a
primary commitment to its direct and indirect government clients
and is also pursuing its program of business development targeted
toward commercial operations.
<PAGE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
COMPARISON OF THE THREE MONTHS ENDED MARCH 31, 1998
TO THE THREE MONTHS ENDED MARCH 31, 1997
Revenues for the three months ended March 31, 1998 were
approximately $5,412,000, a 26% increase from the prior year
quarter. The increase was primarily attributable to growth on
existing contracts with major government and commercial customers
of both EISI and SyCom.
Costs of revenue for the quarter ended March 31, 1998 were
approximately $4,587,000, an increase of approximately 16%. The
increase is due to the growth in EISI and SyCom contracts noted
above, partially offset by the elimination of the HeaTreaT
product development expenses of $232,000. Costs of revenue as a
percentage of revenues were approximately 85% and 92% for the
quarters ending March 31, 1998 and 1997, respectively. This 7%
decrease is primarily due to the elimination of the HeaTreaT
expenditures.
Selling, general and administrative expenses totaled
approximately $573,000 for the March 31, 1998 quarter, compared
with approximately $379,000 for the prior year period. The
increase is primarily due to the Company's addition of key
administrative personnel, coupled with the implementation of a
profit-based employee incentive program, partially offset by the
absence of HeaTreaT marketing costs of $81,000.
The Company had operating profit of $251,000 for the March
31, 1998 quarter, compared with a loss of approximately $29,000
for the prior year period. This substantial increase is
primarily attributable to the growth in EISI and SyCom, coupled
with the elimination of HeaTreaT expenses of $313,000.
Net income was $232,000, compared to a net loss of
approximately $57,000 in the prior year quarter. The increase
resulted primarily from the improved profitability of current
operations, coupled with the elimination of HeaTreaT product
costs.
<PAGE>
COMPARISON OF THE NINE MONTHS ENDED MARCH 31, 1998
TO THE NINE MONTHS ENDED MARCH 31, 1997
Revenues for the nine months ended March 31, 1998 were
approximately $15,477,000, a 27% increase from the prior year
period. The increase was primarily attributable to growth on
existing contracts with major government and commercial customers
of both EISI and SyCom.
Costs of revenue for the nine months ended March 31, 1998
were approximately $13,299,000, an increase of approximately 22%
from the prior year period. The increase is due to the growth in
EISI and SyCom contracts noted above, partially offset by the
elimination of the HeaTreaT product development expenses of
$431,000. Costs of revenue as a percentage of revenues were
approximately 86% and 90% for the periods ended March 31, 1998
and 1997, respectively. This 4% decrease is due to the
elimination of the HeaTreaT expenditures.
Selling, general and administrative expenses totaled
approximately $1,580,000 for the nine months ended March 31,
1998, compared with approximately $1,166,000 for the prior year
period. The increase is primarily due to the company's addition
of key administrative personnel, coupled with the implementation
of a profit-based employee incentive program, partially offset by
the absence of HeaTreaT marketing costs of $232,000.
The Company had an operating profit of $598,000 in the
current period, compared to an operating profit of $44,000 in the
corresponding prior period. This substantial increase is
primarily attributable to the growth in EISI and SyCom, coupled
with the elimination of HeaTreaT expenses of $663,000, partially
offset by the increased general and administrative expenses noted
above.
For the nine months ended March 31, 1998, net interest
expense increased approximately $16,000 from the prior year
period due to higher outstanding borrowings.
Net income was $507,000, compared to a net loss of
approximately $32,000 in the prior year period. The increase
resulted from the improved profitability of current operations,
coupled with the elimination of HeaTreaT product costs, partially
offset by additions in administrative personnel and employee
benefits.
<PAGE>
CAPITAL RESOURCES AND LIQUIDITY
The working capital deficit at March 31, 1998 decreased by
approximately $503,000 from June 30, 1997. Substantial growth in
existing contracts with EISI and SyCom, coupled with the
elimination of the HeaTreaT expenditures, enabled the Company to
utilize the retained profits to fund working capital
requirements.
The Company has a Line of Credit Agreement with Century
National Bank which provides the Company with an $800,000 line of
credit facility through November 30, 1998. The line of credit
provides additional working capital availability to fund the
Company's growth.
For the nine months ended March 31, 1998, the Company earned
net income of $507,000. The Company's ongoing operations are
expected to generate profits and cashflow which will be utilized
to reduce the working capital and shareholders' deficits. The
Company does not anticipate substantial capital expenditures in
the current fiscal year.
The Company's operations are highly labor driven and
profitability levels are largely determined by billable hours,
which fluctuate from quarter to quarter. The first and fourth
fiscal quarters are generally more profitable, primarily since
there are fewer holidays, two and one, respectively. In
contrast, second quarter profitability is adversely affected by
four holidays and a client's five-day holiday shutdown in
December. The third quarter results are impacted by three
holidays and higher employment taxes.
Except for the historical information contained herein, the
matters discussed in this 10-Q include forward-looking statements
that involve a number of risks and uncertainties. There are
certain important factors and risks that could cause results to
differ materially form those anticipated by the statements
contained herein. Such factors and risks include business
conditions and growth in the information services, engineering
services, software development and government contracting arenas
and in the economy in general; competitive factors, such as the
pressures toward consolidation of small government contracts into
larger contracts awarded to major, multi-national corporations;
the Company's ability to continue to recruit and retain highly
skilled technical, managerial and sales/marketing personnel; and
such other risks detailed from time to time in the Company's SEC
reports.
<PAGE>
Year 2000
The Year 2000 issue is the result of computer programs being
written using two digits rather than four to define the
applicable year, resulting in a possible system failure or
miscalculations causing disruptions of operations.
The Company has completed a internal review and assessment
of the impact of the Year 2000 issue upon its operating and
financial and accounting systems. At this time, the Company
believes that the Year 2000 issue will not pose significant
operational problems or costs.
Part II. Other Information
Items 1-5.
None.
Item 6. Exhibits and Reports.
(a) Exhibits
Exhibit No.
11 Earnings per share computation.
27.1 Financial Data Schedule.
27.2 Financial Data Schedule.
27.3 Financial Data Schedule.
(b) Reports on Form 8-K
None.
<PAGE>
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 there unto duly authorized.
Date: May 13, 1998 HADRON, INC.
(Registrant)
By:/S/ C.W. Gilluly By:/S/ Donald E. Ziegler
C. W. Gilluly Ed.D. Donald E. Ziegler
Chief Executive Officer Chief Financial Officer
and Chairman (Principal Financial
(Principal Executive Officer) Officer and Principal
Accounting Officer)
<PAGE>
<TABLE>
Exhibit 11
Hadron, Inc.
Earnings per Share Computation
Basic EPS:
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net income $232,400 ($57,300) $506,600 ($32,400)
------------ ------------ ------------ ------------
$232,400 ($57,300) $506,600 ($32,400)
============ ============ ============ ============
Weighted average shares:
Shares outstanding 1,686,684 1,506,685 1,686,684 1,506,018
------------ ------------ ------------ ------------
1,686,684 1,506,685 1,686,684 1,506,018
Earnings per share $232,400 = $.14 ($57,300) =($.03) $506,600 = $.30 ($32,400) =($.02)
------------ ------------ ------------ ------------
1,686,684 ======= 1,506,685 ======= 1,686,684 ======= 1,506,018 =======
</TABLE>
<TABLE>
Diluted EPS:
Three Months Ended Nine Months Ended
March 31, March 31,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net income $232,400 ($57,300) $506,600 ($32,400)
Add:
Interest expense
savings assuming
repayment of debt 3,000 n/a 9,000 n/a
------------ ------------ ------------ ------------
$235,400 ($57,300) $515,600 ($32,400)
============ ============ ============ ============
Weighted average shares:
Shares outstanding 1,686,684 1,506,685 1,686,684 1,506,018
CSE options 277,794 n/a 238,511 n/a
Convertible Debt 137,173 n/a 116,919 n/a
Warrants 886,492 n/a 843,453 n/a
------------ ------------ ------------ ------------
2,988,143 1,506,685 2,885,567 1,506,018
Earnings per share $235,400 =$ .08 ($57,300) =($.03) $515,600 =$ .18 ($32,400) =($.02)
------------ ------------ ------------ ------------
2,988,143 ======= 1,506,685 ======= 2,885,567 ======= 1,506,018 =======
</TABLE>
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains Hadron's summary financial information extracted
from the quarterly 10-Q's and is qualified in its entirety by reference to such
10-Q's.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS 9-MOS
<FISCAL-YEAR-END> JUN-30-1998 JUN-30-1998 JUN-30-1998
<PERIOD-START> JUL-01-1997 JUL-01-1997 JUL-01-1997
<PERIOD-END> SEP-30-1997 DEC-31-1997 MAR-31-1998
<CASH> 50 41 32
<SECURITIES> 0 0 0
<RECEIVABLES> 2,347 2,625 3,094
<ALLOWANCES> 185 213 213
<INVENTORY> 0 0 0
<CURRENT-ASSETS> 2,317 2,532 2,965
<PP&E> 475 487 492
<DEPRECIATION> 395 400 405
<TOTAL-ASSETS> 2,573 2,803 3,236
<CURRENT-LIABILITIES> 3,041 3,168 3,368
<BONDS> 0 0 0
0 0 0
0 0 0
<COMMON> 34 34 34
<OTHER-SE> (672) (570) (338)
<TOTAL-LIABILITY-AND-EQUITY> 2,573 2,803 3,236
<SALES> 4,895 10,065 15,477
<TOTAL-REVENUES> 4,895 10,065 15,477
<CGS> 4,189 8,711 13,299
<TOTAL-COSTS> 4,681 9,718 14,879
<OTHER-EXPENSES> 3 4 2
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 21 40 46
<INCOME-PRETAX> 190 303 550
<INCOME-TAX> 17 29 43
<INCOME-CONTINUING> 173 274 507
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> 173 274 507
<EPS-PRIMARY> .10 .16 .30
<EPS-DILUTED> .07 .10 .18
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains Hadron's restated summary financial information extracted
from the quarterly 10-Q's and is qualified in its entirety by reference to such
10-Q's.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS 9-MOS YEAR
<FISCAL-YEAR-END> JUN-30-1997 JUN-30-1997 JUN-30-1997 JUN-30-1997
<PERIOD-START> JUL-01-1996 JUL-01-1996 JUL-01-1996 JUL-01-1996
<PERIOD-END> SEP-30-1996 DEC-31-1996 MAR-31-1997 JUN-30-1997
<CASH> 55 45 46 25
<SECURITIES> 0 0 0 0
<RECEIVABLES> 3,030 3,100 3,028 2,471
<ALLOWANCES> 689 521 370 159
<INVENTORY> 0 0 0 0
<CURRENT-ASSETS> 2,490 2,719 2,817 2,448
<PP&E> 835 846 867 469
<DEPRECIATION> 729 749 764 386
<TOTAL-ASSETS> 2,600 2,922 2,967 2,712
<CURRENT-LIABILITIES> 3,159 3,225 3,349 3,353
<BONDS> 0 0 0 0
0 0 0 0
0 0 0 0
<COMMON> 30 30 30 34
<OTHER-SE> (885) (874) (931) (845)
<TOTAL-LIABILITY-AND-EQUITY> 2,600 2,922 2,967 2,712
<SALES> 3,774 7,860 12,154 16,988
<TOTAL-REVENUES> 3,774 7,860 12,154 16,988
<CGS> 3,320 7,000 10,943 14,651
<TOTAL-COSTS> 3,728 7,787 12,110 16,860
<OTHER-EXPENSES> 14 12 18 (14)
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> 10 19 29 85
<INCOME-PRETAX> 22 42 (3) 57
<INCOME-TAX> 8 17 29 44
<INCOME-CONTINUING> 14 25 (32) 13
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 14 25 (32) 13
<EPS-PRIMARY> .01 .01 (.02) .01
<EPS-DILUTED> .01 .01 (.02) .01
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains Hadron's restated summary financial information extracted
from the quarterly 10-Q's and is qualified in its entirety by reference to such
10-Q's.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS 9-MOS YEAR
<FISCAL-YEAR-END> JUN-30-1996 JUN-30-1996 JUN-30-1996 JUN-30-1996
<PERIOD-START> JUL-01-1995 JUL-01-1995 JUL-01-1995 JUL-01-1995
<PERIOD-END> SEP-30-1995 DEC-31-1995 MAR-31-1996 JUN-30-1996
<CASH> 335 561 140 34
<SECURITIES> 0 0 0 0
<RECEIVABLES> 3,139 2,492 2,914 3,329
<ALLOWANCES> 334 355 526 649
<INVENTORY> 0 0 0 0
<CURRENT-ASSETS> 3,294 2,936 2,560 2,770
<PP&E> 1,144 754 805 807
<DEPRECIATION> 1,265 656 691 710
<TOTAL-ASSETS> 3,550 3,073 2,689 2,874
<CURRENT-LIABILITIES> 4,158 3,699 3,289 3,424
<BONDS> 0 0 0 0
0 0 0 0
0 0 0 0
<COMMON> 30 30 30 30
<OTHER-SE> (1,031) (1,000) (950) (899)
<TOTAL-LIABILITY-AND-EQUITY> 3,550 3,073 2,689 2,874
<SALES> 5,759 10,460 14,489 18,306
<TOTAL-REVENUES> 5,759 10,460 14,489 18,306
<CGS> 5,001 9,353 12,620 15,937
<TOTAL-COSTS> 5,626 10,543 14,480 18,246
<OTHER-EXPENSES> 26 (273) (250) (266)
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> 58 110 123 132
<INCOME-PRETAX> 49 80 136 194
<INCOME-TAX> 18 18 24 32
<INCOME-CONTINUING> 31 62 112 162
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 31 62 112 162
<EPS-PRIMARY> .02 .04 .07 .11
<EPS-DILUTED> .02 .04 .07 .11
</TABLE>
