SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 27, 1996
[ ] 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. 0-5258
IEH CORPORATION
(Exact name of registrant as specified in its charter)
New York 1365549348
- ------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
140 58th Street, Suite 8E, Brooklyn, New York 11220
---------------------------------------------------
(Address of principal executive office)
Registrant's telephone number, including area code: (718) 492-4440
---------------
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year,
if changed since last report.
Check whether the Issuer: (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 [ ]
2,303,502 shares of Common Shares, par value $.50 per share, were
outstanding as of February 7, 1997.
<PAGE>
IEH CORPORATION
CONTENTS
PART 1 - FINANCIAL INFORMATION:
ITEM 1 - FINANCIAL STATEMENTS
Balance Sheets
December 27, 1996 (Unaudited)
and March 29, 1996
Statement of Operations
(Unaudited) for the nine months
ended December 27, 1996 and
December 31, 1995
Statement of Cash Flows (Unaudited)
for the nine months ended
December 27, 1996 and December 31, 1995
Notes to Financial Statements
(Unaudited)
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
PART II - OTHER INFORMATION
<PAGE>
<TABLE>
<CAPTION>
IEH CORPORATION
BALANCE SHEETS
As of December 27, 1996 and March 29, 1996
December 27, March 29,
1996 1996
---------- ----------
(Unaudited) (Note 1)
ASSETS
<S> <C> <C>
CURRENT ASSETS:
Cash .............................................. $ 212,955 $ 3,416
Accounts receivable, less allowance for
doubtful accounts of $10,062 at Dec 27, 1996
and March 29, 1996 ............................... 814,065 861,103
Inventories (Note 2 ) ............................. 1,157,900 1,016,272
Prepaid expenses and other current assets(Note 3) . 71,478 54,000
Other receivables ................................. 25,619 61,410
---------- ----------
Total current assets ........................... 2,282,017 1,996,201
---------- ----------
PROPERTY, PLANT AND EQUIPMENT, less accumulated
depreciation and amortization of $4,195,599 at
December 27, 1996 and $3,967,899 at March 29, 1996 1,472,067 1,537,973
---------- ----------
OTHER ASSETS:
Prepaid pension cost (Note 6) ..................... 43,949 43,949
Other assets ...................................... 47,842 48,510
---------- ----------
91,791 92,459
---------- ----------
Total assets ................................... $3,845,875 $3,626,633
========== ==========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IEH CORPORATION
BALANCE SHEETS
As of December 27,1996 and March 29, 1996
December 27, March 29,
1996 1996
----------- -----------
(Unaudited) (Note 1)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts receivable financing .................................... $ 653,107 $ 643,380
Notes payable, current portion ................................... 2,535 4,542
Loan payable, current portion (Note 5) ........................... 45,031 43,528
Accrued corporate income taxes ................................... 35,692 29,064
Union pension and health and welfare,current portion(Note 6) ..... 120,000 120,000
Accounts payable ................................................. 1,274,054 1,097,924
Other current liabilities (Note 4) ............................... 87,133 155,775
----------- -----------
Total current liabilities ..................................... 2,217,546 2,094,213
----------- -----------
LONG-TERM LIABILITIES:
Pension plan payable (Note 6) .................................... 582,455 516,966
Loan payable, less current portion (Note 5) ...................... 255,524 278,680
Union pension and health and welfare, less current portion(Note 6) 218,491 283,101
----------- -----------
1,056,470 1,078,747
----------- -----------
Total liabilities ............................................. 3,274,016 3,172,960
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock, $.50 par value:
10,000,000 shares authorized;
2,303,502 shares issued and outstanding .......................... 1,151,751 1,151,751
Capital in excess of par value ................................... 1,615,874 1,615,874
Retained earnings(Deficit) ....................................... (2,195,766) (2,313,952)
Total stockholders' equity .................................... 571,859 453,673
----------- -----------
Total liabilities and stockholders' equity .................... $ 3,845,875 $ 3,626,633
=========== ===========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IEH CORPORATION
STATEMENT OF OPERATIONS
(Unaudited)
Nine Months Ended Three Months Ended
----------------------------- ----------------------------
December 27, December 31, December 27, December 31,
1996 1995 1996 1995
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
REVENUES,net sales ... $ 3,603,908 $ 2,907,035 $ 1,291,804 $ 1,036,549
----------- ----------- ----------- -----------
COSTS AND EXPENSES:
Cost of products sold 2,559,287 2,240,467 915,661 759,504
Selling, general and
administrative .... 563,460 500,664 190,371 165,343
Interest ............ 114,623 111,297 40,285 41,304
Depreciation and
amortization ...... 230,100 199,350 76,800 66,450
----------- ----------- ----------- -----------
3,467,470 3,051,778 1,223,117 1,032,601
----------- ----------- ----------- -----------
OPERATING INCOME(LOSS) 136,438 (144,743) 68,687 3,948
----------- ----------- ----------- -----------
OTHER INCOME ......... 1,084 306 457 --
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE
INCOME TAXES ........ 137,522 (144,437) 69,144 3,948
----------- ----------- ----------- -----------
PROVISION FOR
INCOME TAXES ........ 19,336 18,900 6,300 6,300
----------- ----------- ----------- -----------
NET INCOME (LOSS) .... $ 118,186 $ ( 163,337) $ 62,844 $ (2,352)
=========== =========== =========== ===========
NET INCOME (LOSS) PER
COMMON SHARE ........ $ .05 $ (.07) $ .027 $ (.001)
=========== =========== =========== ===========
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING
(in thousands) ...... 2,304 2,304 2,304 2,304
=========== =========== =========== ===========
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IEH CORPORATION
STATEMENTS OF CASH FLOWS
Increase (Decrease) in Cash
(Unaudited)
Nine Months Ended
---------------------------
December 27, December 31,
1996 1995
--------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income(loss) ........................................ $ 118,186 $(163,337)
--------- ---------
Adjustments to reconcile net income(loss)
to net cash used in operating activities:
Depreciation and amortization ......................... 230,100 199,350
Changes in assets and liabilities:
(Increase) decrease in accounts receivable ............ 47,038 29,174
(Increase) decrease in inventories .................... (141,628) 26,812
(Increase) decrease in prepaid expenses
and other current assets ........................... (17,478) 754
(Increase) decrease in other receivables .............. 35,791 (53,962)
(Increase) decrease in other assets ................... 668 750
(Decrease) increase in accounts payable ............... 176,130 176,780
(Decrease) increase in other current liabilities ...... (68,642) (63,477)
Increase in accrued corporate income taxes payable .... 6,628 16,714
Increase in due to union pension and health and welfare (64,610) (13,863)
(Decrease) increase in pension plan payable ........... 65,489 (707)
--------- ---------
Total adjustments ............................ 269,486 318,325
--------- ---------
NET CASH USED IN OPERATING ACTIVITIES ..................... 387,672 154,988
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment .............. (164,200) (147,372)
--------- ---------
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES .................................. (164,200) (147,372)
--------- ---------
See accompanying notes to financial statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
IEH CORPORATION
STATEMENTS OF CASH FLOWS (CONTINUED)
Increase (Decrease) in Cash
(Unaudited)
Nine Months Ended
---------------------------
December 27, December 31,
1996 1995
--------- ---------
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable ................. $ (2,007) $ (16,224)
Proceeds from accounts receivable financing ......... 9,727 46,849
Principal payments on accounts receivable financing . -- --
Principal payments on loan payable .................. (21,653) (31,337)
--------- ---------
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES .............................. (13,933) (712)
--------- ---------
INCREASE (DECREASE) IN CASH .......................... 209,539 6,904
CASH, beginning of period ............................ 3,416 300
CASH, end of period .................................. $ 212,955 $ 7,204
========= =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION, cash paid during the three months for:
Interest ......................................... $ 114,623 $ 111,297
========= =========
Income Taxes ..................................... $ 19,336 $ 18,900
========= =========
See accompanying notes to financial statements
</TABLE>
<PAGE>
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 1- FINANCIAL STATEMENTS:
The accompanying financial statements of IEH Corporation("The
Company") for the nine months ended December 27, 1996 and
December 31, 1995 have been prepared in accordance with the
instructions to Form 10-QSB and do not include all of the
information and footnotes required by generally accepted
accounting principles. The financial statements have been
prepared by management from the books and records of the
Company and reflect, in the opinion of management, all
adjustments (consisting of normal recurring accruals)
necessary for a fair
presentation of the financial position, results of operations,
and cash flows of the Company. These statements should be read
in conjunction with the financial statements and notes thereto
included in the Company's annual report Form 10- KSB for the
fiscal year ended March 29, 1996. The balance sheet at March
29, 1996 has been taken from the audited financial statements
of that date.
Note 2- INVENTORIES:
Inventories are comprised of the following:
<TABLE>
<CAPTION>
December 27, March 29,
1996 1996
--------- -----------
(Unaudited)
<S> <C> <C>
Raw materials $ 692,227 $ 607,593
Work in process 129,100 113,309
Finished goods 336,573 295,370
--------- -----------
$1,157,900 $ 1,016,272
========== ===========
</TABLE>
Inventories are priced at the lower of cost (first-in, first
-out method) or market. During the current fiscal year, the
Company established a reserve for obsolescence to reflect net
realizable value. The balance of this reserve as of December
27, 1996 was $36,000.
Inventories at Decmber 27, 1996 are recorded net of this
reserve.
<PAGE>
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 3- PREPAID EXPENSES AND OTHER CURRENT ASSETS:
Prepaid expenses and other current assets are comprised of the
following:
<TABLE>
<CAPTION>
December 27, March 29,
1996 1996
(Unaudited)
<S> <C> <C>
Prepaid insurance $ 67,029 $ 54,000
Other current assets 4,449 -
-------- --------
$ 71,478 $ 54,000
======== ========
</TABLE>
Note 4- OTHER CURRENT LIABILITIES:
Other current liabilities are comprised of the following:
<TABLE>
<CAPTION>
December 27, March 29,
1996 1996
(Unaudited)
<S> <C> <C>
Payroll and vacation accruals $ 32,318 $ 5,590
Sales commissions 10,063 6,074
Pension plan payable - 65,389
Other 44,752 78,722
--------- --------
$ 87,133 $155,775
========= ========
</TABLE>
Note 5- LOAN PAYABLE:
On July 22, 1992, the Company obtained a loan of $435,000 from
the New York State Urban Development Corporation, ("UDC")
collateralized by machinery and equipment. The loan is payable
over ten years, with interest rates progressively increasing
from 4% to 7%.
The balance remaining at Decmber 27, 1996 was $300,555.
<PAGE>
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 5- LOAN PAYABLE (continued):
Aggregate future principal payments are as follows:
<TABLE>
<CAPTION>
<S> <C>
Fiscal Year Ending March:
1997 $ 10,771
1998 45,710
1999 48,529
2000 50,694
Thereafter 144,851
----------
$ 300,555
</TABLE>
As of December 27, 1996, the Company had failed to meet one of
the financial covenants of the loan agreement; namely that the
"Company shall be obligated to maintain a tangible net worth
of not less than $1,300,000 and the Company shall be obligated
to maintain a ratio of current assets to current liabilities
of 1.1 to 1.0. The Company reported tangible net worth of
$571,859. The ratio of current assets to current liabilities
at December 27, 1996 was 1.03 to 1.
The Company had previously received a waiver of this covenant
from the UDC through the period ending July 8, 1993 and had
subsequently received an additional waiver of this covenant
through the period ending March 31, 1994.
There are no assurances that the Company will receive any
additional waivers of this covenant. Should the Company not
receive any additional waivers, then it will be deemed to be
in default of this loan obligation to the UDC and the entire
loan plus interest will become due and payable.
<PAGE>
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 6- COMMITMENTS:
The Company has, with the United Auto Workers of America,
Local 259, a collective bargaining multi-employer pension
plan. Contributions are made in accordance with a negotiated
labor contract and are based on the number of covered
employees employed per month. With the passage of the
Multi-Employer Pension Amendments Act of 1980 ("The Act"), the
Company may become subject to liabilities in excess of
contributions made under the collective bargaining agreement.
Generally, these liabilities are contingent upon the
termination, withdrawal, or partial withdrawal from the Plan.
The Company has not taken any action to terminate, withdraw or
partially withdraw from the Plan nor does it intend to do so
in the future. Under the Act, liabilities would be based upon
the Company's proportional share of the Plan's unfunded vested
benefits which is currently not available. The amount of
accumulated benefits and net assets of such Plan also is not
currently available to the Company. Total contributions
charged to operations under this pension plan were $30,234 for
the nine months ended December 27, 1996.
In December, 1993, the Company and Local 259 entered into a
verbal agreement whereby the Company would satisfy this debt
by the following payment schedule:
The sum of $10,000 will be paid by the Company each
month in satisfaction of the current arrears until
this total debt has been paid. Under this agreement,
the projected payment schedule for arrears will
satisfy the total debt in 49 months.
Additionally, both parties have agreed that current
obligatory funding by the Company will be made on a
timely current basis.
Effective February 1, 1995, the Company withdrew from the
union's health and welfare plan,and offered and provided its
employees an alternative health insurance plan.
As of December 27,1996, the Company reported arrears with
respect to its past contributions to the union's health and
welfare plan and contributions to the pension plan. The amount
due the health and welfare plan was $144,889 and the amount
due the pension plan was $193,602, for a total of $338,491.
The total amount due of $338,491 is reported on the
accompanying balance sheet in two components; $120,000
reported as a current liability and $218,491 as a long-term
liability.
<PAGE>
IEH CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 6- COMMITMENTS (continued):
On June 30, 1995, the Company applied to the Pension Benefit
Guaranty Corporation ("PBGC") to have the PBGC assume all of
the Company's responsibilities and liabilities under its
Salaries Pension Plan. On April 26, 1996, the PBGC determined
that the Salaried Pension Plan did not have sufficient assets
available to pay benefits which were and are currently due
under the terms of the Plan. The PBGC further determined that
pursuant to the provisions of the Employment Retirement Income
Security Act of 1974, as amended ("ERISA") that the Plan must
be terminated in order to protect the interests of the Plan's
participants. Accordingly, the PBGC intends to proceed
pursuant to ERISA to have the Plan terminated and the PBGC
appointed as statutory trustee, and to have July 31, 1995
established as the Plan's termination date.
Note 7- CONTINGENCIES:
In 1979, the Company entered into an agreement with Brevetron
S.A. for the manufacture and sale of certain electrical
connectors. The agreement was a so-called "hybrid" agreement
involving a license under both patent rights and know-how. The
license was non-exclusive, and in fact the Company encountered
licensed competition in the United States in the sale of these
products known as the "Hypertac" socket. The last of these
patents expired in 1992. The Company, however, had continued
to pay licensing fees to Brevetron S.A. and thru the year
ended March 31, 1995 had recorded a licensing fee liability of
$75,417. For the six months ended September 30, 1995, the
Company had recorded an additional $31,783 in license fees.
Upon having outside counsel conduct a review of the agreement,
the Company has advised Brevetron that it believes that there
is no legal obligation for the Company to pay any further
licensing fees. It is the opinion of counsel that the
agreement has been unenforceable since January 7, 1992, the
date of expiration of the latest patent. Accordingly, the
Company had reversed the accrual of license fees of $31,783
that were recorded in the period ending September 30, 1995.
The remaining liability of $75,417 representing the amount of
licensing fees recorded as a liability as of March 31, 1995
was reversed as of March 29, 1996.
Note 8- CHANGES IN STOCKHOLDERS' EQUITY:
Retained earnings increased by $118,186 which represents the
net income for the nine months ended December 27, 1996.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations
The following table sets forth for the periods indicated, percentages for
certain items reflected in the financial data as such items bear to the revenues
of the Company:
<TABLE>
<CAPTION>
Nine Months Ended
-----------------------------
December 27, December 31,
1996 1995
-------- --------
<S> <C> <C>
Operating Revenues .......................... $ 3,604 $ 2,907
(in thousands)
Operating Expenses:
(As a percentage of
Operating Revenues)
Cost of Products Sold ...................... 71.0% 77.1%
Selling, General and Administrative ........ 15.6% 17.2%
Interest expense ........................... 3.2% 3.8%
Depreciation and amortization .............. 6.4% 6.9%
-------- --------
Total Costs and Expenses ........... 96.2% 105.0%
-------- --------
Operating income (loss) ..................... 3.8% (5.0%)
======== ========
Other Income (Expense)
Other Non-operating Income ................ -- --
Income (Loss) Before Income taxes ........... 3.8% (5.0%)
Income taxes ................................ .5% .6%
Net Income (Loss) ........................... 3.3% (5.6%)
</TABLE>
Comparative Analysis:
Operating revenues for the nine months ended December 27, 1996 amounted
to $3,603,908, reflecting a 24% increase versus comparative nine months
operating revenues of $2,907,035 for the nine months ended December 31, 1995.
The increase in revenues is a direct result of management's efforts to redirect
its dependence on governmental and military sales to commercial electronic
sales.
<PAGE>
Comparative Analysis (continued)
Cost of products sold amounted to $2,559,287 for the nine months ended
December 27, 1996 or 71% of operating revenues. This reflected a 14.2% increase
in the cost of products sold from $2,240,467 or 77.1% of operating revenues for
the nine months ended December 31, 1995. This increase is primarily due to
increased sales generated by the Company. Cost of sales decreased as a
percentage f revenues due t management's efforts to better control costs.
Selling, general and administrative expenses were $563,460 or 15.6% of
revenues compared to $500,664 or 17.2% of revenues for the comparable nine month
period ending December 31, 1995. This reflected an increase of 12.5% and
reflects the variable impact of increased sales.
Interest expense was $114,623 for the nine months ended December 27,
1996 or 3.2% of operating revenues. For the comparable period ended December 31,
1995, interest expense was $111,297 or 3.8% of operating revenues. The increase
of 3.3% reflects the interest burden on a loan of $435,000 obtained in Fiscal
1993 from the New York State Urban Development Corporation as well as increased
interest rates in fiscal 1994 as compared to the prior year.
Depreciation and amortization of $230,100 or 6.4% of operating revenues
was reported for the nine months ended December 27, 1996. This reflects an
increase of 15.4% from the comparable nine month period ended December 31, 1995
of $199,350 or 6.9% of operating revenues. The increase is as a result of
increased purchases of equipment during the nine months ended December 27, 1996.
The Company reported income before income taxes of $118,186 for the
nine months ended December 27, 1996, representing income per common share of
$.05 as compared to a loss of $163,337 or $.07 per common share for the nine
months ended December 31, 1995. The resultant increased net income can be
attributed to an increase of 24% in operating revenues over the comparable nine
months ended December 31, 1995.
<PAGE>
Item 2- Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations:
The following table sets forth for the periods indicated, sales
revenues and percentages for certain items in the financial data as
such items bear to the revenues of the Company:
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------
December 27, December 31,
1996 1995
-------- --------
<S> <C> <C>
Revenues, net sales(in thousands) .......... $ 1,291 $ 1,036
-------- --------
Costs and Expenses:
(as a percentage of revenues)
Cost of products sold ..................... 70.9% 73.3%
Selling,general and administrative ........ 14.8% 16.0%
Interest expense .......................... 3.1% 4.0%
Depreciation and amortization ............. 5.9% 6.3%
-------- --------
Total costs and expenses .......... 94.7% 99.6%
-------- --------
Operating income (loss) ................... 5.3% .4%
-------- --------
Other income .............................. -- --
-------- --------
Income (loss) before income taxes ......... 5.3% .4%
-------- --------
Provision for income taxes ................ (.5%) (.6%)
-------- --------
Net income (loss) ......................... 4.8% (.2%)
======== ========
</TABLE>
Comparative Analysis:
Operating revenues for the three month period ending December 27, 1996 amounted
to $1,291,804 reflecting a 24.6% increase versus the prior three month period
ending December 31, 1995 of $1,036,549. The increase in revenues in this
comparative period reflects the Company's efforts to redirect its sales focus to
commercial electronic sales.
<PAGE>
Comparative Analysis (continued)
Cost of products sold amounted to $915,661 for the three months ended December
27,1996 or 70.9% of revenues. This reflected an increase of 20.6% in the cost of
products sold from $759,504 or 73.3% of revenues from the comparative three
month period ended December 31,1995. This increase is primarily due to the
increase in revenue and resultant costs associated with production.
Selling, general and administrative expenses were $190,371 or 14.8% of revenues,
compared to $165,343 or 16.0% of revenues for the comparative three month period
ending December 31, 1995. This increase of 15.1% was attributed to the variable
impact of increased revenues.
Interest expense was $40,285 or 3.1% of revenues as compared to $41,304 or 4.0%
of revenues for the prior three month period ending December 31,1995. The
decrease in interest expense of.2% reflects the lower rates prevailing in the
current three month period as compared to the prior period.
Depreciation and amortization of $76,800 or 5.9% was reported for the three
months ended December 27,1996 as compared to $66,450 or 6.3% of revenues for the
prior three month period ending December 31,1995. This expense as a percentage
of revenues increased as a result of an increase in the acquisition of machinery
and equipment during the three month period ended December 31, 1995.
The Company reported net income of $62,844 for the three month period ended
December 27, 1996, representing net income of $.027 per common share as compared
to a net loss of $.001 per common share for the three months ended December
31,1995. This comparative increase for the current three month period is due to
an overall increase in revenues during this period.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27. Financial Data Schedule
(b) Reports on Form 8-K during Quarter
None
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
has duly cause this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
IEH CORPORATION
(Registrant)
February 7, 1997 /s/Michael Offerman
- ---------------- ----------------------------
Michael Offerman
President
February 7, 1997 /s/Robert Knoth
- ---------------- ----------------------------
Robert Knoth
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary information extracted from the Balance Sheet,
Statement of Operations, Statement of Cash Flows and Notes thereto incorporated
in Part I, Item 1, of this Form 10-QSB and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-28-1997
<PERIOD-END> DEC-27-1996
<CASH> 212,955
<SECURITIES> 0
<RECEIVABLES> 814,065
<ALLOWANCES> 0
<INVENTORY> 1,157,900
<CURRENT-ASSETS> 2,282,017
<PP&E> 5,667,666
<DEPRECIATION> 4,195,599
<TOTAL-ASSETS> 3,845,875
<CURRENT-LIABILITIES> 2,217,546
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 571,859
<TOTAL-LIABILITY-AND-EQUITY> 3,845,875
<SALES> 3,603,908
<TOTAL-REVENUES> 0
<CGS> 2,559,287
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 793,560
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 114,623
<INCOME-PRETAX> 137,522
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 118,186
<EPS-PRIMARY> .05
<EPS-DILUTED> .05
</TABLE>
