SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
[x] Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange
Act of 1934.
For the Period ended March 31, 1998.
OR
[ ] Transition Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934.
Commission File Number: 0-13143
INNOVEX, INC.
(Exact name of registrant as specified in its charter)
Minnesota 41-1223933
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1313 South Fifth Street, Hopkins, Minnesota 55343-9904
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (612) 938-4155
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 1, 1998, 14,711,304 shares of the registrant's common stock, $.04 par
value per share, were outstanding.
Exhibit Index, page 11
<PAGE>
PART 1: ITEM 1 FINANCIAL INFORMATION
INNOVEX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, September 30,
1998 1997
ASSETS (Unaudited) (Audited)
- ------ ------------ -----------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 17,584,048 $ 9,442,620
Short-term investments 30,108,253 28,440,000
Accounts receivable, less allowance for
doubtful accounts of $535,000 and $621,000 14,749,719 22,052,121
Inventories 7,491,262 7,252,596
Other current assets 4,031,271 4,161,938
------------ -----------
Total current assets 73,964,553 71,349,275
Property, plant and equipment, net of accumulated depreciation
of $14,099,000 and $12,202,000 29,915,107 23,748,632
Intangible assets, net of amortization of $3,378,000 and $3,099,000 1,896,566 1,849,381
Other assets 327,466 327,466
------------ -----------
$106,103,692 $97,274,754
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Current maturities of long-term debt $ 82,000 $ 104,000
Accounts payable 3,877,946 4,662,543
Accrued compensation 1,367,207 2,980,086
Income taxes payable 966,537 864,313
Other accrued liabilities 1,176,495 895,705
------------ -----------
Total current liabilities 7,470,185 9,506,647
Long-term debt 789,383 950,733
Stockholders' equity:
Common stock, $.04 par value; 30,000,000 shares authorized,
14,676,204 and 14,619,504 shares issued and outstanding 587,048 584,780
Capital in excess of par value 14,505,632 14,065,186
Retained earnings 82,751,444 72,167,408
------------ -----------
Total stockholders' equity 97,844,124 86,817,374
------------ -----------
$106,103,692 $97,274,754
============ ===========
</TABLE>
See accompanying notes.
<PAGE>
INNOVEX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
1998 1997
------------ ------------
Net sales $ 25,105,195 $ 38,388,938
Costs and expenses:
Cost of sales 16,253,643 20,807,085
Selling, general and administrative 2,069,023 2,624,004
Engineering 1,133,141 858,894
Net interest and other (income) expense (419,253) (267,414)
------------ ------------
Income before taxes 6,068,641 14,366,369
Provision for income taxes 1,807,000 4,310,000
------------ ------------
Net income $ 4,261,641 $ 10,056,369
============ ============
Net income per share:
Basic $ 0.29 $ 0.70
============ ============
Diluted $ 0.28 $ 0.66
============ ============
Weighted average shares outstanding:
Basic 14,660,885 14,349,185
============ ============
Diluted 15,155,784 15,222,364
============ ============
Six Months Ended March 31,
1998 1997
------------ ------------
Net sales $ 58,113,830 $ 67,700,825
Costs and expenses:
Cost of sales 36,155,636 38,011,325
Selling, general and administrative 3,990,807 5,027,129
Engineering 2,399,582 1,732,822
Net interest and other (income) expense (880,000) (492,166)
------------ ------------
Income before taxes 16,447,805 23,421,715
Provision for income taxes 4,912,000 7,027,000
------------ ------------
Net income $ 11,535,805 $ 16,394,715
============ ============
Net income per share:
Basic $ 0.79 $ 1.15
============ ============
Diluted $ 0.76 $ 1.08
============ ============
Weighted average shares outstanding:
Basic 14,646,603 14,302,943
============ ============
Diluted 15,171,997 15,125,297
============ ============
See accompanying notes.
<PAGE>
INNOVEX, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended March 31,
1998 1997
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 11,535,805 $ 16,394,715
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 3,268,841 2,250,451
Other non-cash charges (credits) 49,405 60,262
Changes in operating assets and liabilities:
Accounts receivable 7,302,402 (9,802,206)
Inventories (238,666) (1,360,365)
Other current assets 130,667 57,415
Accounts payable (784,597) 1,053,244
Other liabilities (1,332,089) 500,750
Income taxes payable 102,224 2,017,706
------------ ------------
Net cash provided by (used in) operating activities 20,033,992 11,171,972
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (9,558,978) (5,100,781)
Proceeds from sale of investment in limited partnership -- 884,000
Proceeds from sale of assets 27,071 50,583
Purchase of held-to-maturity securities (12,650,000) (11,140,000)
Maturities of held-to-maturity securities 10,981,747 6,540,000
------------ ------------
Net cash provided by (used in) investing activities (11,200,160) (8,766,198)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term debt (183,350) (52,308)
Proceeds from exercise of stock options 442,714 689,469
Dividends paid (951,768) (751,804)
------------ ------------
Net cash provided by (used in) financing activities (692,404) (114,643)
Increase (decrease) in cash and cash equivalents 8,141,428 2,291,131
Cash and cash equivalents at beginning of year 9,442,620 5,635,534
------------ ------------
Cash and cash equivalents at end of period $ 17,584,048 $ 7,926,665
============ ============
</TABLE>
SUPPLEMENTAL DISCLOSURES:
The Company considers all highly liquid investments with a maturity date of
three months or less when purchased to be "cash equivalents."
Cash paid for interest was $35,000 and $40,000 in 1998 and 1997, respectively.
Income tax payments were $4,810,000 and $5,246,000 in 1998 and 1997,
respectively.
See accompanying notes.
<PAGE>
INNOVEX INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - ACCOUNTING POLICIES
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with the instructions on Form 10-Q and do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. The unaudited condensed
consolidated financial statements include the accounts of Innovex, Inc. and its
subsidiaries (the "Company") after elimination of all significant intercompany
transactions and accounts. In the opinion of management, all adjustments
(consisting of normal recurring adjustments) necessary for a fair presentation
of operating results have been made. Operating results for interim periods are
not necessarily indicative of results which may be expected for the year as a
whole. For further information, refer to the consolidated financial statements
and footnotes included in the registrant's annual report on Form 10-K for the
year ended September 30, 1997.
NOTE 2 - NEW ACCOUNTING STANDARD
The Company adopted FASB Statement of Financial Accounting Standards No.
128, Earnings Per Share, which was effective for financial statements issued for
periods ending after December 15, 1997. The new standard eliminates primary and
fully diluted earnings per share and requires presentation of basic and diluted
earnings per share together with disclosure of how the per share amounts were
computed. All share and per share information for prior periods has been
adjusted to reflect the adoption of SFAS 128 effective October 1, 1997.
PART I: ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THE COMPANY
Innovex, Inc. and its subsidiaries (the Company) operate through four
divisions, Precision Products, Litchfield Precision Components, InnoMedica and
Iconovex. Each division has its own administrative, engineering, manufacturing
and marketing organizations.
The largest division, Precision Products, develops, engineers and
manufactures specialty precision electromagnetic products for original equipment
manufacturers ("OEM's"). Lead wire assemblies for the thin film disk drive
market are the Division's primary product. Lead wire assemblies are fine twisted
magnet wires that connect the back end electronics of a disk drive with the
inductive or magneto resistive thin film heads which read and write information
on the disk.
The Litchfield Precision Components Division (LPC) designs and
manufactures highly complex flexible circuitry and chemically machined
components. Approximately 30% of LPC's sales are medical product applications,
50% are computer and computer peripheral applications with the remaining 20%
being other applications. LPC is one of a limited number of companies in the
world able to produce flexible circuits with line and spacing tolerances of less
than 2 mils.
The Company also operates two other divisions, Iconovex and InnoMedica.
These divisions currently only produce a small portion of the Company's revenue.
Iconovex was established to market and further develop a technologically
advanced software product. The core software utilizes syntactical analysis to
recognize meanings and relationships among words and phrases in order to prepare
indexes and abstracts of electronically stored information. In October 1997,
Iconovex became the 51% owner of a joint venture with Solutions Corporation of
America. The new joint venture, Smart Solution, intends to target the corporate
intranet market by providing a product to organize, analyze, screen and index
email and to eventually perform the same function for corporate databases.
<PAGE>
InnoMedica provides contract development and manufacturing services
primarily to the medical device industry as well as pacing/defibrillation leads
and adapters for the implantable bradycardia and tachacardia industry.
Manufacture of these products utilizes silicone rubber molding, similar and
dissimilar metal laser welding, product fabrication and miniature product
assembly. Products may be either proprietary or made to customer specifications.
The Company has reached an agreement in principle to sell InnoMedica. It is
anticipated that a definitive agreement will be signed during May 1998. The
transaction is not expected to have a significant impact on the Company's
earnings.
RESULTS OF OPERATIONS
NET SALES
The Company's net sales from operations totaled $25,105,000 for the
quarter, down 35% from $38,389,000 reported in fiscal 1997. Sales of $58,114,000
for the six months ended March 31, 1998 decreased 14% from the prior year
period. The decreases were due to softness in the disk drive industry which
began in the quarter ending September 30, 1997. This softness appears to be
primarily due to an over supply of disk drives caused by the high levels of disk
drives produced during the March 1997 and June 1997 quarters and due to a
reduction in the number of disk drives kept in inventory by computer
manufacturers as they adopt a build to order business model. Also contributing
to the sales decrease was a reduction in the average number of heads per disk
drive. This reduction is the result of an increasing number of low cost disk
drives being sold and as a result of the conversion to magneto resistive (MR)
disk drive heads which increased the storage capacity per disk drive platter and
reduced the number of heads required to provide the same disk drive capacity.
The higher price obtained from the sale of MR lead wire assemblies which have a
higher value added content and sell for a higher price than the low end
inductive assemblies has partially offset the decreased number of lead wire
assemblies being sold.
LPC's sales continue to increase as a proportion of total sales, providing
over 21% of the Company's sales for the quarter and over 17% for the first six
months of fiscal 1998. The first phase of the new LPC automated high volume
production facility was completed during the quarter and contributed to the
increased volume of LPC sales. The total cost of facility and related equipment
through the first phase is approximately $15 million. The facility, which is
designed to produce large volumes of high technology flexible circuits for
various applications, is currently being utilized to produce the Head
Interconnect Flex (HIF) for the disk drive industry. The HIF product provides a
technologically advanced solution for the Company's customers which is believed
to be significantly more cost effective than any competing new technologies.
The largest portion of the Company's sales for the remainder of fiscal
1998 will continue to be generated by the Precision Products Division. Although
lead wire assembly unit volumes for the second quarter were lower than the first
quarter, unit volumes are expected to increase later in the fiscal year. An
increasing portion of the Company's sales will come from the LPC Division due to
the strong demand for LPC's high technology flexible circuit products including
the HIF. The Company expects that an increasing portion of the demand for disk
drive head interconnects will be met by products such as the HIF. The pending
sale of the InnoMedica Division will have a small impact on sales for the
remainder of the fiscal year.
GROSS MARGINS
The Company's consolidated gross profit as a percent of sales for the
quarter decreased to 35%, down from the 46% reported for the same period last
year. The gross margin percent for the first six months decreased to 38% from
the 44% reported last year. Gross margin percents decreased
<PAGE>
primarily due to the lower demand for lead wire assemblies reducing the leverage
of the Precision Products Division's fixed overhead costs. Also, pricing
pressures returned as a normal operating factor after being unusually low during
the first nine months of fiscal 1997 as a result of the heavy demand for lead
wire assemblies during that time. Gross margins were also impacted by the
increased level of fixed costs related to start up of the new LPC facility.
Gross margins for the existing lead wire assembly business will fluctuate during
the remainder of the fiscal year as a function of unit demand for disk drive
heads. LPC gross margins will improve as the production volume in the new
facility increases.
OPERATING EXPENSES
Operating expenses were 12.8% of sales for the current quarter, as
compared to 9.1% in the prior year's second quarter. Operating expenses for the
first six months of fiscal 1998 were 11.0%, up from 10.0% for the prior year's
first six months. The increase in operating expenses as a percent of sales for
the current year is primarily due to the decrease in sales. Total operating
expenses decreased due to a reduction in incentive based compensation more than
offsetting an increase in engineering spending. Engineering spending increased
as a result of new product development costs at both Precision Products and LPC
and due to costs related to the new facility at LPC. The level of operating
expenses is not expected to change significantly as a percent of sales for the
remainder of the fiscal year.
OPERATING PROFIT
Consolidated operating profit of $5,649,000 in the current quarter was
down 60% from the $14,099,000 profit for the prior year second quarter.
Consolidated operating profit for the first six months was $15,568,000 versus
$22,930,000 for the same period last year. This is primarily the result of the
decreased sales volume. The Precision Products Division's operating profit for
the remainder of the fiscal year will vary depending on changes in disk drive
industry unit volumes. Continued operating profit improvements are expected at
Litchfield Precision Components as the demand for high end flexible circuits
increases. The Iconovex Division is not expected to have a significant impact on
operating profit for the remainder of the fiscal year.
NET INCOME
Consolidated net income for the fiscal 1998 second quarter was $4,262,000
as compared to $10,056,000 for the prior year. Basic and diluted net income per
share were $0.29 and $0.28 as compared to $0.70 and $0.66 for the prior year
second quarter. Consolidated net income for the first six months of fiscal 1998
was $11,536,000 as compared to $16,395,000 for the prior year. Basic and diluted
net income per share were $0.79 and $0.76 as compared to $1.15 and $1.08 for the
same period last year.
LIQUIDITY AND CAPITAL RESOURCES
Cash and short-term investments increased to $47.7 million at March 31,
1998 from $37.9 million at September 30, 1997. This increase was primarily due
to income generated from operating activities.
Accounts receivable at March 31, 1998 decreased by $7,302,000 from
September 30, 1997 due to the decreased level of sales. Inventory increased by
$239,000 from September 30, 1997 to support the increased level of activity at
Litchfield Precision Components.
<PAGE>
Working capital totaled $66.5 million and $61.8 million at March 31, 1998
and September 30, 1997. The increase is primarily due to the decrease in
accounts payable and accrued compensation.
Since September 30, 1997, the Company has invested $9.6 million in capital
expenditures. These additions include a portion of the costs to construct and
equip an automated production facility at Litchfield Precision Components to
meet the expected demand for new high volume applications including the Head
Interconnect Flex (HIF) and chip packaging related products. The first phase of
this facility, which cost approximately $15 million, was completed during the
March 1998 quarter and provides a capacity of over 2 million units per week.
Over the next nine months, the capacity of this facility will be increased to 10
million units per week at an approximate cost of $7 million.
Management believes that internally generated funds will provide adequate
sources of capital for supporting projected growth in fiscal 1998.
FORWARD LOOKING STATEMENTS
Statements included in this Quarterly Report on Form 10-Q that are not
historical or current facts are "forward-looking statements" made pursuant to
the safe harbor provision of the Private Securities Litigation Reform Act of
1995 and are subject to certain risks and uncertainties that could cause actual
results to differ materially. Among these risks and uncertainties are (i) timely
availability and acceptance of new products, (ii) the impact of competitive
products and pricing, (iii) and a general downturn in the Company's principal
market. The Company disclaims any obligation subsequently to revise any forward
looking statements to reflect subsequent events or circumstances or the
occurrence of unanticipated events.
<PAGE>
PART II - OTHER INFORMATION
Responses to Items 1 through 3 and 5 are omitted since these items are either
inapplicable or the response thereto would be negative.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
a) The Annual Meeting of the shareholders of Innovex, Inc. was held on
January 22, 1998. There were 14,641,904 shares of common stock entitled to
vote at the meeting and a total of 13,339,648 shares were represented at
the meeting.
b) Seven directors were elected at the meeting to serve for one year or until
their successors are elected and qualified. Shares were voted as follows:
For Against
--- -------
Gerald M. Bestler 13,273,105 66,543
Mary E. Curtin 13,257,250 82,398
Willis K. Drake 13,270,705 68,943
Thomas W. Haley 13,276,250 63,398
William J. Miller 13,255,685 83,963
Michael C. Slagle 13,265,995 73,653
Bernt M. Tessem 13,274,385 65,263
c) Other matters voted on at the meeting:
Proposal #2. A proposal was made to approve the selection of the
Company's independent public accountants for the current fiscal
year. Shares were voted as follows:
For Against Abstain
--- ------- -------
13,218,263 57,782 63,603
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits
27.1 Financial Data Schedule
27.2 Fiscal 1996 Financial Data Schedules Restated to Adopt SFAS 128
27.3 Fiscal 1997 Financial Data Schedules Restated to Adopt SFAS 128
27.4 Fiscal 1995 Financial Data Schedule Restated to Adopt SFAS 128
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 thereunto duly authorized.
INNOVEX, INC.
Registrant
Date: May 15, 1998
By \s\ Thomas W. Haley
Thomas W. Haley
Chief Executive Officer
By \s\ Douglas W. Keller
Douglas W. Keller
Vice President, Finance
<PAGE>
INDEX TO EXHIBITS
Exhibits Page
27.1 Financial Data Schedule 12
27.2 Fiscal 1996 Financial Data Schedules Restated to Adopt SFAS 128 13
27.3 Fiscal 1997 Financial Data Schedules Restated to Adopt SFAS 128 14
27.4 Fiscal 1995 Financial Data Schedule Restated to Adopt SFAS 128 15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S FINANCIAL STATEMENTS INCLUDED IN THE 10-Q FOR THE QUARTER ENDED MARCH
31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> MAR-31-1998
<CASH> 17,584
<SECURITIES> 30,108
<RECEIVABLES> 15,285
<ALLOWANCES> 535
<INVENTORY> 7,491
<CURRENT-ASSETS> 73,965
<PP&E> 44,014
<DEPRECIATION> 14,099
<TOTAL-ASSETS> 106,104
<CURRENT-LIABILITIES> 7,470
<BONDS> 789
0
0
<COMMON> 587
<OTHER-SE> 97,257
<TOTAL-LIABILITY-AND-EQUITY> 106,104
<SALES> 58,114
<TOTAL-REVENUES> 58,114
<CGS> 36,156
<TOTAL-COSTS> 36,156
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 35
<INCOME-PRETAX> 16,448
<INCOME-TAX> 4,912
<INCOME-CONTINUING> 11,536
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,536
<EPS-PRIMARY> 0.79
<EPS-DILUTED> 0.76
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
PURSUANT TO ITEM 601c(2)(iii) OF REGULATION S-K, THESE SCHEDULES ARE RESTATED IN
ACCORDANCE WITH SFAS 128 AND CONTAIN SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE COMPANY'S FINANCIAL STATEMENTS INCLUDED IN THE 10-QS FOR THE QUARTERS
ENDED DECEMBER 31, 1995, MARCH 31, 1996 AND JUNE 30, 1996 AND THE 10-K FOR THE
YEAR ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS 9-MOS 12-MOS
<FISCAL-YEAR-END> SEP-30-1996 SEP-30-1996 SEP-30-1996 SEP-30-1996
<PERIOD-END> DEC-31-1995 MAR-31-1996 JUN-30-1996 SEP-30-1996
<CASH> 6,134 7,349 1,931 5,636
<SECURITIES> 18,105 17,765 15,455 16,140
<RECEIVABLES> 6,597 7,640 11,562 12,351
<ALLOWANCES> 273 280 329 317
<INVENTORY> 2,436 3,193 5,172 5,571
<CURRENT-ASSETS> 34,968 37,908 36,297 42,029
<PP&E> 14,175 14,865 20,272 21,475
<DEPRECIATION> 7,012 7,525 7,897 8,743
<TOTAL-ASSETS> 44,046 47,075 52,497 58,244
<CURRENT-LIABILITIES> 3,890 4,362 6,355 8,487
<BONDS> 1,146 1,119 1,109 1,063
0 0 0 0
0 0 0 0
<COMMON> 283 283 284 284
<OTHER-SE> 38,297 40,939 44,374 48,116
<TOTAL-LIABILITY-AND-EQUITY> 44,046 47,075 52,497 58,244
<SALES> 13,112 27,786 47,041 69,570
<TOTAL-REVENUES> 13,112 27,786 47,041 69,570
<CGS> 7,595 16,256 28,216 42,592
<TOTAL-COSTS> 7,595 16,256 28,216 42,592
<OTHER-EXPENSES> 0 0 0 0
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> 31 61 87 113
<INCOME-PRETAX> 3,930 8,154 13,242 18,742
<INCOME-TAX> 1,179 2,447 3,972 5,621
<INCOME-CONTINUING> 2,751 5,707 9,270 13,121
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 2,751 5,707 9,270 13,121
<EPS-PRIMARY> 0.19 0.40 0.65 0.93
<EPS-DILUTED> 0.19 0.39 0.64 0.91
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
PURSUANT TO ITEM 601c(2)(iii) OF REGULATION S-K, THESE SCHEDULES ARE RESTATED IN
ACCORDANCE WITH SFAS 128 AND CONTAIN SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE COMPANY'S FINANCIAL STATEMENTS INCLUDED IN THE 10-QS FOR THE QUARTERS
ENDED DECEMBER 31, 1996, MARCH 31, 1997 AND JUNE 30, 1997 AND THE 10-K FOR THE
YEAR ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS 9-MOS 12-MOS
<FISCAL-YEAR-END> SEP-30-1997 SEP-30-1997 SEP-30-1997 SEP-30-1997
<PERIOD-END> DEC-31-1996 MAR-31-1997 JUN-30-1997 SEP-30-1997
<CASH> 4,407 7,927 10,063 9,443
<SECURITIES> 19,540 20,740 26,870 28,440
<RECEIVABLES> 18,056 22,321 22,083 22,673
<ALLOWANCES> 342 484 601 621
<INVENTORY> 6,272 6,931 6,771 7,253
<CURRENT-ASSETS> 50,474 60,025 68,736 71,349
<PP&E> 23,034 26,240 30,493 35,951
<DEPRECIATION> 9,573 10,566 11,198 12,202
<TOTAL-ASSETS> 66,433 78,096 90,374 97,275
<CURRENT-LIABILITIES> 10,228 12,048 12,807 9,507
<BONDS> 1,038 1,011 985 951
0 0 0 0
0 0 0 0
<COMMON> 572 575 583 585
<OTHER-SE> 54,317 64,158 75,689 86,233
<TOTAL-LIABILITY-AND-EQUITY> 66,433 78,096 90,374 97,275
<SALES> 29,312 67,701 109,661 142,004
<TOTAL-REVENUES> 29,312 67,701 109,661 142,004
<CGS> 17,204 38,011 61,608 81,028
<TOTAL-COSTS> 17,204 38,011 61,608 81,028
<OTHER-EXPENSES> 0 0 0 0
<LOSS-PROVISION> 0 0 42 329
<INTEREST-EXPENSE> 25 49 74 96
<INCOME-PRETAX> 9,055 23,422 39,052 49,978
<INCOME-TAX> 2,717 7,027 11,715 14,884
<INCOME-CONTINUING> 6,338 16,395 27,337 35,094
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 6,338 16,395 27,337 35,094
<EPS-PRIMARY> 0.44 1.15 1.90 2.43
<EPS-DILUTED> 0.42 1.08 1.81 2.31
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
PURSUANT TO ITEM 601c(2)(iii) OF REGULATION S-K, THIS SCHEDULE IS RESTATED IN
ACCORDANCE WITH SFAS 128 AND CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE COMPANY'S FINANCIAL STATEMENTS INCLUDED IN THE 10-K FOR THE YEAR ENDED
SEPTEMBER 30, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> SEP-30-1995
<CASH> 7,384
<SECURITIES> 15,130
<RECEIVABLES> 5,787
<ALLOWANCES> 265
<INVENTORY> 2,191
<CURRENT-ASSETS> 32,231
<PP&E> 13,425
<DEPRECIATION> 6,357
<TOTAL-ASSETS> 41,283
<CURRENT-LIABILITIES> 3,869
<BONDS> 1,173
0
0
<COMMON> 282
<OTHER-SE> 35,747
<TOTAL-LIABILITY-AND-EQUITY> 41,283
<SALES> 50,194
<TOTAL-REVENUES> 50,194
<CGS> 28,631
<TOTAL-COSTS> 28,631
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 125
<INCOME-PRETAX> 14,818
<INCOME-TAX> 4,789
<INCOME-CONTINUING> 10,029
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,029
<EPS-PRIMARY> 0.73
<EPS-DILUTED> 0.70
</TABLE>
