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 EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
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 Number 000-05083
SAUCONY, INC.
(Exact name of registrant as specified in its charter)
Massachusetts 04-1465840
(State or other jurisdiction of (I.R.S. employer identification number)
incorporation or organization)
13 Centennial Drive, Peabody, MA 01960
(Address of principal executive offices)
978-532-9000
(Registrant's telephone number (including area code)
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 [ ]
Class Outstanding as of May 9, 2000
Class A Common Stock-$.33 1/3 Par Value 2,618,827
Class B Common Stock-$.33 1/3 Par Value 3,612,769
---------
6,231,596
SAUCONY, INC. AND SUBSIDIARIES
INDEX
Page
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of March 31, 2000
and December 31, 1999...............................................3
Condensed Consolidated Statements of Income for the
thirteen weeks ended March 31, 2000 and April 2, 1999 ..............4
Condensed Consolidated Statements of Cash Flows for the
thirteen weeks ended March 31, 2000 and April 2, 1999...............5
Notes to Condensed Consolidated Financial Statements --
March 31, 2000....................................................6-8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations....................................9-12
Item 3. Quantitative and Qualitative Disclosures about Market Risk.........12
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K...................................13
Signature...................................................................14
PART I. FINANCIAL INFORMATION
<TABLE>
SAUCONY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
(Amounts in thousands)
ASSETS
<CAPTION>
March 31, December 31,
2000 1999
---- ----
<S> <C> <C>
Current assets:
Cash and cash equivalents....................................................$ 2,115 $ 3,515
Accounts receivable.......................................................... 38,753 23,968
Inventories.................................................................. 33,641 35,270
Prepaid expenses and other current assets.................................... 3,427 3,727
--------- ----------
Total current assets....................................................... 77,936 66,480
--------- ----------
Property, plant and equipment, net.............................................. 8,060 8,279
--------- ----------
Other assets.................................................................... 2,427 2,422
--------- ----------
Total assets....................................................................$ 88,423 $ 77,181
========= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable................................................................$ 13,005 $ 1,928
Current maturities of long-term debt......................................... 379 375
Accounts and letters of credit payable....................................... 4,680 5,897
Accrued expenses and other current liabilities............................... 7,152 7,203
--------- ----------
Total current liabilities.................................................. 25,216 15,403
--------- ----------
Long-term obligations:
Long-term debt and capital lease obligations................................. 186 292
Deferred income taxes........................................................ 2,051 2,045
Other long-term obligations.................................................. 175 171
--------- ----------
Total long-term obligations................................................ 2,412 2,508
--------- ----------
Minority interest in consolidated subsidiaries.................................. 330 308
--------- ----------
Stockholders' equity:
Common stock, $.33 1/3 par value............................................. 2,242 2,222
Additional paid in capital................................................... 17,088 16,815
Retained earnings............................................................ 45,887 42,679
Accumulated other comprehensive income....................................... (703) (564)
---------- -----------
64,514 61,152
Less: Common stock held in treasury, at cost............................... (3,763) (2,179)
Notes receivable..................................................... (276) 0
Unearned compensation................................................ (10) (11)
---------- -----------
Total stockholders' equity........................................ 60,465 58,962
--------- ----------
Total liabilities and stockholders' equity......................................$ 88,423 $ 77,181
========= ==========
See notes to condensed consolidated financial statements
</TABLE>
<TABLE>
SAUCONY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THIRTEEN WEEKS ENDED MARCH 31, 2000 AND APRIL 2, 1999
(Unaudited)
(Amounts in thousands, except per share data)
<CAPTION>
Thirteen Weeks Thirteen Weeks
Ended Ended
March 31, 2000 April 2, 1999
-------------- -------------
<S> <C> <C>
Net sales.......................................................................$ 46,416 $ 42,406
Other revenue .................................................................. 139 208
--------- ----------
Total revenue .................................................................. 46,555 42,614
--------- ----------
Costs and expenses
Cost of sales................................................................ 29,070 26,985
Selling expenses............................................................. 7,081 5,433
General and administrative expenses.......................................... 4,784 4,308
--------- ----------
Total costs and expenses................................................... 40,935 36,726
--------- ----------
Operating income................................................................ 5,620 5,888
Non-operating income (expense)
Interest, net................................................................ (132) (146)
Foreign currency............................................................. (47) 26
Other........................................................................ 87 24
--------- ----------
Income before income taxes and minority interest................................ 5,528 5,792
Provision for income taxes...................................................... 2,297 2,430
Minority interest in income of consolidated subsidiaries........................ 23 29
--------- ----------
Net income......................................................................$ 3,208 $ 3,333
========= ==========
Per share amounts:
Earnings per common share - basic...............................................$ 0.51 $ 0.54
========= ==========
Earnings per common share - diluted.............................................$ 0.50 $ 0.52
========= ==========
Weighted average common shares.................................................. 6,266 6,229
========= ==========
Weighted average common shares and
equivalents outstanding...................................................... 6,443 6,363
========= ==========
Cash dividends per share of common stock........................................ 0 0
========= ==========
See notes to condensed consolidated financial statements
</TABLE>
<TABLE>
SAUCONY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THIRTEEN WEEKS ENDED MARCH 31, 2000 AND APRIL 2, 1999
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(in thousands)
(unaudited)
<CAPTION>
March 31, April 2,
2000 1999
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income.................................................................$ 3,208 $ 3,333
-------- ---------
Adjustments to reconcile net income to net cash
provided (used) by operating activities:
Depreciation and amortization.............................................. 510 462
Provision for bad debts and discounts...................................... 1,532 2,146
Deferred income tax expense (benefit)...................................... 427 (617)
Other...................................................................... 29 33
Changes in operating assets and liabilities, net of effect of foreign
currency adjustments:
Decrease (increase) in assets:
Accounts receivable.................................................... (16,468) (16,268)
Inventories............................................................ 1,388 2,377
Prepaid expenses and other current assets.............................. 78 24
Increase (decrease) in liabilities:
Accounts payable....................................................... (1,160) (2,170)
Accrued expenses....................................................... (227) 2,951
--------- ---------
Total adjustments............................................................ (13,891) (11,062)
--------- ----------
Net cash used by operating activities........................................... (10,683) (7,729)
--------- ----------
Cash flows from investing activities:
Purchases of property, plant and equipment................................... (239) (330)
Increase in deferred charges, deposits and other............................. 18 (10)
Marketable securities - realized and unrealized gain......................... (84) (8)
--------- ----------
Net cash used by investing activities........................................... (305) (348)
--------- ----------
Cash flows from financing activities:
Net short-term borrowings.................................................... 11,164 4,210
Repayment of long-term debt and capital lease obligations.................... (103) (121)
Common stock repurchased..................................................... (1,584) --
Issuances of common stock, including options................................. 17 2
-------- ---------
Net cash provided by financing activities....................................... 9,494 4,091
Effect of exchange rate changes on cash and cash equivalents.................... 94 89
-------- ---------
Net decrease in cash and cash equivalents....................................... (1,400) (3,897)
Cash and equivalents at beginning of period..................................... 3,515 5,495
-------- ---------
Cash and equivalents at end of period...........................................$ 2,115 $ 1,598
======== =========
Supplemental disclosure of cash flow information: Cash paid during the period
for:
Income taxes, net of refunds...............................................$ 2,065 $ 837
======== =========
Interest...................................................................$ 160 $ 135
======== =========
Non-cash investing and financing activities:
Property purchased under capital leases...................................... -- $ 114
======== =========
See notes to condensed consolidated financial statements
</TABLE>
SAUCONY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2000
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with the instructions to Form 10-Q and, therefore, do not
include all information and footnotes necessary for a fair presentation of
financial position, results of operations and cash flows in conformity with
generally accepted accounting principles. In the opinion of management, all
adjustments (consisting solely of normal recurring adjustments) necessary for a
fair presentation have been included. These interim consolidated financial
statements should be read in conjunction with the audited consolidated financial
statements and the notes, thereto, included in the Company's Annual Report on
Form 10-K, as filed with the Securities and Exchange Commission, for the year
ended December 31, 1999. Operating results for thirteen weeks ended March 31,
2000, are not necessarily indicative of the results for the entire year.
NOTE 2 - RECLASSIFICATION
Certain items in prior years' Consolidated Financial Statements have been
reclassified to conform to the 2000 presentation.
NOTE 3 - INVENTORIES
Inventories at March 31, 2000 and December 31, 1999 consisted of the following
(in thousands):
March 31, December 31,
2000 1999
---- ----
Finished goods.................$ 28,339 $ 30,067
Work in progress............... 680 920
Raw materials.................. 4,622 4,283
----------- -----------
$ 33,641 $ 35,270
=========== ===========
NOTE 4 - EARNINGS PER SHARE
<TABLE>
<CAPTION>
(Unaudited)
(in thousands, except per share amounts)
Thirteen Weeks Ended Thirteen Weeks Ended
March 31, 2000 April 2, 1999
Earnings Earnings Earnings Earnings
per per per per
Common Common Common Common
Share - Share - Share - Share -
Basic Diluted Basic Diluted
<S> <C> <C> <C> <C>
Net income...........................................$ 3,208 $ 3,208 $ 3,333 $ 3,333
========== ========= ========== ==========
Weighted average shares outstanding.................. 6,266 6,266 6,229 6,229
Effect of dilutive securities:
Stock options..................................... 0 177 0 134
---------- --------- ---------- ----------
Weighted average common shares and
equivalents outstanding........................... 6,266 6,443 6,229 6,363
========== ========= ========== ==========
Earnings per share...................................$ 0.51 $ 0.50 $ 0.54 $ 0.52
========== ========= ========= ==========
</TABLE>
NOTE 5 - STATEMENT OF COMPREHENSIVE INCOME
<TABLE>
<CAPTION>
(in thousands)
Thirteen Weeks Thirteen Weeks
Ended Ended
March 31, 2000 April 2, 1999
-------------- -------------
<S> <C> <C>
Net income......................................................................$ 3,208 $ 3,333
Other comprehensive loss:
Foreign currency translation adjustment...................................... (139) (186)
Income tax benefit related to other comprehensive loss....................... (53) (137)
--------- ---------
Other comprehensive loss, net of tax............................................ (86) (49)
--------- ---------
Comprehensive income............................................................$ 3,122 $ 3,284
======== ========
</TABLE>
NOTE 6 - OPERATING SEGMENT DATA
The Company's operating segments are organized based on the nature of products
and consist of the Saucony Segment and Other Products Segment. The determination
of the reportable segments for the thirteen weeks ended March 31, 2000 and April
2, 1999, as well as the basis of measurement of segment profit or loss, is
consistent with the segment reporting disclosed in the Company's Annual Report
on Form 10-K for the fiscal year ended December 31, 1999.
<TABLE>
<CAPTION>
(in thousands)
Thirteen Weeks Thirteen Weeks
Ended Ended
March 31, 2000 April 2, 1999
-------------- -------------
<S> <C> <C>
Revenue:
Saucony..................................................$ 42,135 $ 37,827
Other products............................................ 4,420 4,787
----------- -----------
Total revenue........................................$ 46,555 $ 42,614
=========== ===========
Income (loss) before income taxes and minority interest:
Saucony...................................................$ 6,296 $ 6,065
Other products............................................ (768) (273)
------------ ------------
Total................................................$ 5,528 $ 5,792
=========== ===========
</TABLE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Dollar amounts throughout this Item 2 are in thousands, except per share
amounts.
HIGHLIGHTS
Thirteen Weeks Ended March 31, 2000 Compared to
Thirteen Weeks Ended April 2, 1999
Percent Change
Increase (Decrease)
Net sales................................................ 9.5%
Gross profit.............................................12.5
Selling, general and administrative......................21.8
$ Change
Operating income.......................................($ 268)
Income before tax...................................... (264)
Net income............................................. (125)
Percent of Net Sales
2000 1999
---- ----
Gross profit.................................. 37.4% 36.4%
Selling, general and administrative........... 25.6 23.0
Operating income.............................. 12.1 13.9
Income before tax............................. 11.9 13.7
Net income.................................... 6.9 7.9
The following table sets forth the approximate contribution to net sales (in
dollars and as a percentage of consolidated net sales) attributable to our
Saucony product line and our other product lines for the thirteen weeks ended
March 31, 2000 and April 2, 1999:
Thirteen Weeks Ended March 31, 2000 and April 2, 1999
2000 1999
-------------------------- --------------------
Saucony..............$ 42,001 90.5% $ 37,675 88.8%
Other................ 4,415 9.5% 4,731 11.2%
--------- ------- --------- --------
Total................$ 46,416 100.0% $ 42,406 100.0%
========= ======= ========= ========
THIRTEEN WEEKS ENDED MARCH 31, 2000 COMPARED TO THIRTEEN WEEKS ENDED APRIL 2,
1999
CONSOLIDATED NET SALES
Net sales increased 9% to $46,416 in the thirteen weeks ended March 31, 2000
from $42,406 in the thirteen weeks ended April 2, 1999. At constant currency
exchange rates, the net sales increase for the thirteen weeks ended March 31,
2000 would have been 10%.
On a geographic basis, domestic net sales increased $3,546, or 10%, to $40,462
in the thirteen weeks ended March 31, 2000 from $36,916 in the thirteen weeks
ended April 2, 1999. International net sales increased $464, or 9%, to $5,954 in
the thirteen weeks ended March 31, 2000 from $5,490 in the thirteen weeks ended
April 2, 1999.
SAUCONY BRAND SEGMENT
Worldwide net sales of Saucony-branded footwear and apparel increased 11% to
$42,001 in the thirteen weeks ended March 31, 2000 from $37,675 in the thirteen
weeks ended April 2, 1999, primarily due to 13% unit volume growth in the
footwear category. Overall average selling prices declined 1% in the thirteen
weeks ended March 31, 2000 due to a higher proportion of more moderately priced
Originals in our domestic product mix.
On a geographic basis, domestic net sales increased $3,882, or 12%, to $36,525
in the thirteen weeks ended March 31, 2000 from $32,643 in the thirteen weeks
ended April 2, 1999 due primarily to a 12% increase in footwear unit volumes.
Average per pair wholesale sell prices remained consistent in the thirteen weeks
ended March 31, 2000 as compared to the thirteen weeks ended April 2, 1999.
Originals unit volume accounted for 58% of domestic unit volume in the thirteen
weeks ended March 31, 2000 compared to 44% of domestic unit volume in the
thirteen weeks ended April 2, 1999.
International net sales increased $444, or 9%, to $5,476 in the thirteen weeks
ended March 31, 2000 from $5,032 in the thirteen weeks ended April 2, 1999 due
primarily to increased footwear unit volume shipments at our Western Europe
subsidiaries and increased distributor footwear unit volume.
OTHER PRODUCTS SEGMENT
Net sales of Other Products decreased $316, or 7%, to $4,415 in the thirteen
weeks ended March 31, 2000 from $4,731 in the thirteen weeks ended April 2,
1999, due primarily to lower unit volume at our cycling division and, to a
lesser extent, lower unit volume of Hind-branded apparel, offset in part by
increased sales at our factory outlet division stores due to the addition of two
factory outlet stores.
COST AND EXPENSES
Our gross profit increased 12% to $17,346 in the thirteen weeks ended March 31,
2000 from $15,421 in the thirteen weeks ended April 2, 1999 due to higher
domestic unit volumes. Gross margin improved 1.0% to 37.4% in the thirteen weeks
ended March 31, 2000 from 36.4% in the thirteen weeks ended April 2, 1999 due to
a change in our product mix and lower levels of product returns.
Selling, general and administrative expenses increased in absolute dollars and
as a percent of net sales to $11,865, or 25.6% of net sales, in the thirteen
weeks ended March 31, 2000 from $9,741, or 23.0% of net sales, in the thirteen
weeks ended April 2, 1999. The increase in selling, general and administrative
expenses was due to planned increases in television and print media, increased
athlete and event sponsorship, increased variable selling expenses,
administrative staffing increases and increased professional fees, offset in
part by lower provisions for doubtful accounts. Selling expenses as a percent of
net sales increased to 15.3% in the thirteen weeks ended March 31, 2000 from
12.8% in the thirteen weeks ended April 2, 1999, while general and
administrative expenses increased to 10.3% of net sales in the thirteen weeks
ended March 31, 2000 from 10.2% in the thirteen weeks ended April 2, 1999.
Net interest expense decreased 10% to $132 in the thirteen weeks ended March 31,
2000 from $146 in the thirteen weeks ended April 2, 1999 due to lower average
debt levels in the thirteen weeks ended March 31, 2000.
INCOME BEFORE TAX AND MINORITY INTEREST
Thirteen Weeks Ended
March 31, April 2,
2000 1999
---- ----
Segment
Saucony Brand.............................$ 6,296 $ 6,065
Other Products............................ (768) (273)
---------- ---------
Total.....................................$ 5,528 $ 5,792
========= ========
Consolidated income before tax decreased to $5,528 in the thirteen weeks ended
March 31, 2000 from $5,792 in the thirteen weeks ended April 2, 1999 due
primarily to increased losses incurred at our cycling division due to lower
sales volume, lower production utilization and a high level of administrative
overhead.
INCOME TAXES
The provision for income taxes decreased to $2,297 in the thirteen weeks ended
March 31, 2000 from $2,430 in the thirteen weeks ended April 2, 1999, due
primarily to decreased domestic pre-tax income. The effective tax rate decreased
to 41.6% in the thirteen weeks ended March 31, 2000 from 42.0% in the thirteen
weeks ended April 2, 1999 due primarily to a shift in the composition of
domestic and foreign pre-tax earnings.
NET INCOME
Net income decreased to $3,208 in the thirteen weeks ended March 31, 2000 from
$3,333 in the thirteen weeks ended April 2, 1999. Diluted earnings per share
decreased to $0.50 in the thirteen weeks ended March 31, 2000 compared to $0.52
in the thirteen weeks ended April 2, 1999. Weighted average common shares and
equivalent shares used to calculate diluted earnings per share were 6,443 and
6,363, respectively, in the thirteen weeks ended March 31, 2000 and April 2,
1999.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2000, our cash and cash equivalents totaled $2,115, a decrease
of $1,400 from December 31, 1999. The decrease is due primarily to an increase
in accounts receivable of $14,936, net of the provision for bad debt and
discounts, offset by a decrease in inventory of $1,388 and an increase in
borrowings against our domestic and foreign credit facilities of $11,164. The
increase in accounts receivable is due to increased net sales of our Saucony
footwear products in the thirteen weeks ended March 31, 2000. Our days sales
outstanding for accounts receivable increased to 76 days in the thirteen weeks
ended March 31, 2000 from 72 days in the thirteen weeks ended April 2, 1999.
Inventories decreased $1,388 in the thirteen weeks ended March 31, 2000 due to
management of domestic inventory levels. Our inventory turns ratio decreased to
3.4 turns in the thirteen weeks ended March 31, 2000 from 3.6 turns in the
thirteen weeks ended April 2, 1999. The number of days sales in inventory
increased 9% to 105 days in the thirteen weeks ended March 31, 2000 from 96 days
in the thirteen weeks ended April 2, 1999 due to future shipment requirements.
For the thirteen weeks ended March 31, 2000, we used $10,683 of net cash from
operating activities, expended $239 to acquire capital assets, borrowed $11,164
from our credit facilities, expended $103 to reduce long-term debt and $1,584 to
repurchase shares of our Common Stock.
Principal factors (other than net income, accounts receivable, provision for bad
debts and discounts and inventory) affecting the operating cash flows in the
thirteen weeks ended March 31, 2000 included a decrease of $1,160 in accounts
payable (due to lower inventory levels) and a decrease of $227 in accrued
expenses (due primarily to the payment of fiscal 1999 incentive compensation).
OVERALL LIQUIDITY
Our liquidity is contingent upon a number of factors, principally our future
operating results. Management believes that our current cash and cash
equivalents, credit facilities and internally generated funds are adequate to
meet our working capital requirements and to fund our capital investment needs
and debt service payments.
INFLATION AND CURRENCY RISK
The effect of inflation on our results of operations over the past three years
has been minimal. The impact of currency fluctuation on our purchase of
inventory from foreign suppliers has been non-existent as the transactions were
denominated in U.S. dollars. We are, however, subject to currency fluctuation
risk with respect to the operating results of our foreign subsidiaries and
certain foreign currency denominated payables. We have entered into forward
foreign exchange contracts to minimize certain transaction currency risk.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
We have performed an analysis to assess the potential effect of reasonably
possible near-term changes in inflation and foreign currency exchange rates. The
effect of inflation on our results of operations over the past three years has
been minimal. The impact of currency fluctuation on the purchase of inventory by
us from foreign suppliers has been non-existent as all the transactions were
denominated in U.S. dollars. However, we are subject to currency fluctuation
risk with respect to the operating results of our foreign subsidiaries and
certain foreign currency denominated payables. We have entered into certain
forward foreign exchange contracts to minimize the transaction currency risk.
PART II. OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K
a. Exhibits
27 - Financial Data Schedule
99.1 - Certain Factors That May Affect Future Results,
incorporated herein by reference to pages 19-21 of the Company's
Annual Report on Form 10-K for the period ended December 31, 1999.
Such Form 10-K shall not be deemed to be filed herewith except to
the extent that portions thereof are expressly incorporated by
reference herein.
b. Reports on Form 8-K
None.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Saucony, Inc.
Date: May 15, 2000 By: /s/ Michael Umana
---------------------
Michael Umana
Vice President, Finance
Chief Financial Officer
(Duly authorized officer and
principal financial officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial
information extracted from Saucony, Inc's.
Form 10-Q for the period ended March 31,
2000 and is qualified in entirety by
reference to such 10-Q.
</LEGEND>
<CIK> 0000049401
<NAME> Saucony, Inc.
<MULTIPLIER> 1000
<CURRENCY> US Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Jan-5-2001
<PERIOD-START> Jan-01-2000
<PERIOD-END> Mar-31-2000
<EXCHANGE-RATE> 1
<CASH> 2115
<SECURITIES> 0
<RECEIVABLES> 38753
<ALLOWANCES> 1471
<INVENTORY> 33641
<CURRENT-ASSETS> 77936
<PP&E> 19486
<DEPRECIATION> 11426
<TOTAL-ASSETS> 88423
<CURRENT-LIABILITIES> 25216
<BONDS> 186
0
0
<COMMON> 2242
<OTHER-SE> 58223
<TOTAL-LIABILITY-AND-EQUITY> 88423
<SALES> 46416
<TOTAL-REVENUES> 46555
<CGS> 29070
<TOTAL-COSTS> 29070
<OTHER-EXPENSES> 11865
<LOSS-PROVISION> 251
<INTEREST-EXPENSE> 132
<INCOME-PRETAX> 5528
<INCOME-TAX> 2297
<INCOME-CONTINUING> 3208
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3208
<EPS-BASIC> 0.51
<EPS-DILUTED> 0.50
</TABLE>
