UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 1999
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 0-6715
ANALOGIC CORPORATION
(Exact name of registrant as specified in its charter)
Massachusetts 04-2454372
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
8 Centennial Drive, Peabody, Massachusetts 01960
(Address of principal executive offices) (Zip Code)
(978) 977-3000
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report.)
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
The number of shares of Common Stock outstanding at January 31, 1999 was
12,683,354.
<PAGE>2
ANALOGIC CORPORATION AND SUBSIDIARIES
INDEX
Page
No.
Part I Financial Information
Consolidated Condensed Balance Sheets
January 31, 1999 and July 31, 1998 3
Consolidated Condensed Statements of Income
Three and Six Months Ended January 31, 1999 and 1998 4
Consolidated Condensed Statements of Cash Flows
Six Months Ended January 31, 1999 and 1998 5
Notes to Consolidated Condensed Financial Statements 6 - 7
Management's Discussion and Analysis of Financial
Condition and Results of Operations 8 - 11
Part II Other Information 12 - 13
Index to Exhibits 12
<PAGE>3
PART I FINANCIAL INFORMATION
ANALOGIC CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(000 omitted)
<TABLE>
<CAPTION>
January 31, July 31,*
1999 1998
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 30,088 $ 27,644
Marketable securities, at market 97,334 94,156
Accounts and notes receivable, net 56,046 54,393
Inventories 54,822 54,916
Prepaid expenses and other current assets 5,917 6,305
Total current assets 244,207 237,414
Property, plant and equipment, net 56,272 54,577
Investments in and advances to affiliated
companies 6,745 6,372
Other assets, including unamortized software
costs (1999, $3,619; 1998, $3,689) 4,742 4,594
</TABLE>
$311,966 $302,957
<PAGE>4
PART I FINANCIAL INFORMATION
ANALOGIC CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(000 omitted)
<TABLE>
<CAPTION>
January 31, July 31,*
1999 1998
(Unaudited)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Mortgage and other notes payable $ 353 $ 2,950
Obligations under capital leases 595 560
Accounts payable, trade 13,759 11,617
Accrued employee compensation and benefits 10,654 12,441
Accrued expenses 6,259 7,808
Accrued income taxes 2,011 1,320
Accrued dividends payable 888
Total current liabilities 34,519 36,696
Long-term debt:
Mortgage notes payable 5,730 5,983
Obligations under capital leases 1,415 1,721
Deferred income taxes 3,200 3,144
Minority interest in subsidiaries 4,174 3,828
Excess of acquired net assets over cost, net
of accumulated amortization 273 330
Stockholders' equity:
Common stock, $.05 par 693 693
Capital in excess of par value 23,923 23,567
Retained earnings 250,004 241,329
Unrealized holding gains and losses 2,849 1,656
Cumulative translation adjustments (671) (1,373)
Treasury stock, at cost (13,087) (13,515)
Unearned compensation (1,056) (1,102)
Total Stockholders' Equity 262,655 251,255
$311,966 $302,957
* See note 2 of notes to consolidated condensed financial statements for
further information.
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>5
ANALOGIC CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
(000 omitted, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
January 31, January 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Revenues:
Product and service, net $65,167 $63,463 $123,006 $117,986
Engineering and licensing 3,613 4,260 7,201 8,423
Other operating revenue 2,412 2,475 6,032 6,210
Interest and dividend income 1,497 1,450 3,616 2,958
Total revenues 72,689 71,648 139,855 135,577
Costs and expenses:
Cost of sales:
Product and service 37,414 36,439 71,314 68,340
Engineering and licensing 3,370 3,088 6,391 7,453
Other operating expenses 1,338 1,410 2,973 3,135
General and administrative 5,343 5,151 10,402 10,057
Selling 6,617 6,497 12,884 12,492
Research and product development 9,977 9,267 18,970 17,014
Interest expense 90 120 205 228
(Gain) Loss on foreign exchange 65 (53) 149 (121)
Amortization of excess of
acquired net assets over cost (28) (117) (56) (278)
Amortization of excess of cost
over acquired net assets (21)
Total cost of sales and expenses 64,186 61,781 123,232 118,320
Income from operations 8,503 9,867 16,623 17,257
Gain on sale of marketable
securities 997
Equity in net loss
of unconsolidated affiliates (1,128) (686) (2,216) (1,661)
Impairment of investment (400)
Income before income taxes
and minority interest 7,375 9,181 14,407 16,193
Provision for income taxes 1,559 3,148 3,739 5,518
Minority interest in net income
of consolidated subsidiary 251 352 346 360
Net income $ 5,565 $ 5,681 $ 10,322 $ 10,315
Earnings per common share:
Basic $ 0.44 $ 0.45 $ 0.82 $ 0.82
Diluted $ 0.44 $ 0.45 $ 0.81 $ 0.81
Dividends declared per common share $ 0.07 $ 0.06 $ 0.13 $ 0.11
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>6
ANALOGIC CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(000 omitted)
<TABLE>
<CAPTION>
Six Months Ended
January 31,
1999 1998
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $10,322 $10,315
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 4,849 4,217
Amortization of capitalized software 1,004 1,196
Amortization of excess of acquired net
assets over cost (56) (278)
Minority interest in net profit of
consolidated subsidiary 346 360
Compensation from stock grants 302 246
Gain on sale of equipment (23) (4)
Gain on sale of marketable securities (997)
Excess of equity in net losses of
unconsolidated affiliates 2,216 1,661
Impairment of investment 400
Changes in operating assets and liabilities
Decrease (increase) in assets:
Accounts and notes receivable (1,653) (373)
Inventories 94 (7,247)
Prepaid expenses and other current assets 141 (74)
Other assets (106) (18)
Increase (decrease) in liabilities:
Accounts payable, trade 2,142 1,265
Accrued expenses and other current liabilities (3,349) (1,123)
Accrued and deferred income taxes 993 (517)
Accrued dividends payable 888 756
TOTAL ADJUSTMENTS 7,788 (530)
NET CASH PROVIDED BY OPERATING ACTIVITIES 18,110 9,785
</TABLE>
<PAGE>7
ANALOGIC CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(000 omitted)
<TABLE>
<CAPTION>
Six Months Ended
January 31,
1999 1998
<S> <C> <C>
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment (6,560) (6,331)
Capitalized software (934) (789)
Purchases of marketable securities (3,730) (14,980)
Maturities of marketable securities 1,745 15,295
Proceeds from sale of property, plant and equipment 39 153
Proceeds from sales of marketable securities 997
Investments in and advances to affiliated companies (2,700) (1,240)
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (12,140) (6,895)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on debt and capital lease obligations (3,121) (487)
Issuance of common stock pursuant to stock options
and employee stock purchase plan 540 220
Dividends declared to shareholders (1,647) (1,385)
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (4,228) (1,652)
EFFECT OF EXCHANGE RATE CHANGES ON CASH (702) (123)
NET INCREASE IN CASH AND CASH EQUIVALENTS 2,444 1,115
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 27,644 24,954
CASH AND CASH EQUIVALENTS, END OF PERIOD $30,088 $26,069
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>8
ANALOGIC CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. In the opinion of management, the accompanying unaudited consolidated
condensed financial statements contain all adjustments (consisting
solely of normal recurring adjustments) necessary to fairly present
Analogic Corporation's financial position as of January 31, 1999 and
July 31, 1998, the results of its operations for the three and six
months ended January 31, 1999 and 1998 and statement of cash flows for
the six months then ended. The results of the operations for the three
and six months ended January 31, 1999 are not necessarily indicative of
the results to be expected for the fiscal year ending July 31, 1999.
The accounting policies followed by the Company are set forth in Note 1
to the Company's financial statements in its Annual Report on Form 10-K
for the fiscal year ended July 31, 1998.
2. Financial statements, with the exception of the July 31, 1998 balance
sheet, are unaudited and have not been examined by independent certified
public accountants. The consolidated balance sheet as of July 31, 1998
contains data derived from audited financial statements.
3. The inventories as of January 31, 1999 were not based on a physical or
perpetual inventory but were calculated on the basis of an estimated
percentage of material used during the period. The components of
inventory are estimated as follows:
<TABLE>
<CAPTION>
January 31, July 31,
1999 1998
<S> <C> <C>
Raw materials $24,060,000 $25,226,000
Work-in-process 20,200,000 18,845,000
Finished goods 10,562,000 10,845,000
$54,822,000 $54,916,000
</TABLE>
4. Notes payables decreased by $2,597,000 during the six months ended
January 31, 1999 primarily due to repayment of borrowing against a line
of credit by Camtronics.
5. Total interest expense, amounted to $281,000 of which $76,000 was
capitalized during the six months ended January 31, 1999. Interest paid
amounted to $205,000 and $228,000 during the six months ended January
31, 1999 and 1998, respectively.
6. Income taxes paid during the six months ended January 31, 1999 and 1998
amounted to $3,943,000 and $5,277,000, respectively.
7. The Company declared a dividend of $.07 per common share on January 22,
1999, payable on February 19, 1999 to shareholders of record on February
5, 1999 and $.06 per common share on October 8, 1998, payable on
November 6, 1998 to shareholders of record on October 23, 1998.
8. The Company has adopted SFAS No. 130, "Reporting Comprehensive Income,"
which requires that all components of comprehensive income and total
comprehensive income be reported and that changes be shown in a
financial statement displayed with the same prominence as other
financial statements. The Company has elected to disclose this
information in its Statement of Stockholders' Equity. The following
table presents the calculation of comprehensive income and its
components for the three and six months ended January 31, 1999 and 1998.
<PAGE>9
ANALOGIC CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
8. (Continued)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
January 31, January 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net Income $5,565,000 $5,681,000 $10,322,000 $10,315,000
Other Comprehensive Income
(Loss) Net of Tax:
Unrealized holding
gains and losses 230,000 296,000 852,000 237,000
Foreign currency
translation adjustment (482,000) (575,000) 424,000 (77,000)
Total Comprehensive Income $5,313,000 $5,402,000 $11,598,000 $10,475,000
</TABLE>
9. Basic earnings per common share was calculated by dividing net income by
the weighted average number of common shares outstanding during the
period. Diluted earnings per share was calculated by dividing net
income by the sum of weighted average number of common shares
outstanding plus all additional common shares that would have been
outstanding if potentially dilutive common shares had been issued. The
following table indicates the number of shares utilized in the earnings
per shares calculations for the three and six months ending January 31,
1999 and 1998, respectively.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
January 31, January 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net Income $5,565,000 $5,681,000 $10,322,000 $10,315,000
Common Shares outstanding-
basic 12,676,258 12,598,478 12,665,183 12,598,339
Effect of dilutive
securities:
Stock Options 114,969 161,659 118,956 171,887
Common Shares outstanding-
diluted 12,791,227 12,760,137 12,784,139 12,770,226
Earnings per Common Share:
Basic $ 0.44 $ 0.45 $ 0.82 $ 0.82
Diluted $ 0.44 $ 0.45 $ 0.81 $ 0.81
</TABLE>
<PAGE>10
ANALOGIC CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
The Company's balance sheet reflects a current ratio of 7.1 to 1 at January
31, 1999 compared to 6.5 to 1 at July 31, 1998. Cash, cash equivalents and
marketable securities, along with accounts and notes receivable, constitute
approximately 75% of current assets at January 31, 1999. Liquidity is
sustained principally through funds provided from operations, with short-term
time deposits and marketable securities available to provide additional
sources of cash. The Company places its cash investments in high credit
quality financial instruments and, by policy, limits the amount of credit
exposure to any one financial institution. Management does not anticipate
any difficulties in financing operations at anticipated levels. The
Company's debt to equity ratio was 0.19 to 1 at January 31, 1999 and 0.21 to
1 at July 31, 1998.
Capital expenditures totaled approximately $6,560,000 during the six months
ended January 31, 1999, compared to $6,331,000 during the six months ended
January 31, 1998.
RESULTS OF OPERATIONS
Six Months Fiscal 1999 (01/31/99) vs. Six Months Fiscal 1998 (01/31/98)
Product, service, engineering and licensing revenues for the six months ended
January 31, 1999 were $130,207,000 as compared to $126,409,000 for the same
period last year, an increase of 3%. The increase of $3,798,000 was due to
increased sales of Medical Technology Products of $8,494,000 (primarily due
to sales of Cardiology Diagnostic Imaging Products), partially offset by a
decrease in Signal Processing Technology Products of $1,887,000, and a
decrease in Industrial Technology Products of $2,809,000 (primarily due to
lower demand of the Company's high frequency ATE boards). Product revenues
were adversely affected by the softness of the Asian and South American
markets. Other operating revenue of $6,032,000 and $6,210,000 represents
revenue from the Hotel operation for the six months ending January 31, 1999
and 1998, respectively.
Interest and dividend income increased $658,000, primarily due to interest
earned from the City of Peabody on real estate tax abatement.
The percentage of total cost of sales to total net sales for the six months
of fiscal 1999 and fiscal 1998 were unchanged at 60%. Operating costs
associated with the Hotel during the six months of fiscal 1999 and 1998 were
$2,973,000 and $3,135,000, respectively.
General and administrative and selling expenses increased $737,000, primarily
due to increased staffing, partially offset by a real estate tax abatement of
approximately $170,000. Research and product development expenses increased
$1,956,000 primarily due to the Company's expanding engineering efforts
applicable to developing complex imaging systems, and partially offset by a
benefit of real estate tax abatement of approximately $300,000.
Computer software costs of $934,000 and $789,000 were capitalized in the
first six months of fiscal 1999 and 1998, respectively. Amortization of
capitalized software amounted to $1,004,000 and $1,196,000 in the first six
months of fiscal 1999 and 1998, respectively.
<PAGE>11
ANALOGIC CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Six Months Fiscal 1999 (01/31/99) vs. Six Months Fiscal 1998 (01/31/98)
(continued)
A loss on foreign exchange of $149,000 was realized during the first six
months of fiscal year 1999 versus a gain of $121,000 for the same period last
year. Most of the foreign exchange gains or losses have been incurred by our
Danish subsidiary, B-K Medical.
Minority interest in the net income of the Company's consolidated subsidiary,
Camtronics, for the six months ended January 31, 1999 amounted to $346,000
compared to $360,000 for the six months ended January 31, 1998.
During the first six months of fiscal 1999, the Company's investment in
Analogic Scientific was decreased by $180,000, and by $575,000 in the first
six months of fiscal 1998, reflecting the Company's share of Analogic
Scientific's equity.
The Company's share of losses of a privately held company amounted to
$2,148,000 and $1,514,000 during the fist six months of fiscal 1999 and 1998.
During the first six months of fiscal 1999 and 1998, the Company's investment
in another privately held Company was increased by $112,000 and $428,000,
respectively, reflecting the Company's share of its equity.
The Company recorded a reserve of $400,000 reflecting a partial impairment of
its 19% investment in another privately held company, during the first six
months of fiscal 1998. No adjustment was required for the first six months
of fiscal 1999.
During the first six months of fiscal 1998, the Company sold 140,560 common
shares of a publicly traded company, resulting in a gain of $997,000.
Income from operations for the first six months of fiscal 1999 was adversely
affected by the softness in the Asian and South American markets, the
additional expenses associated with new engineering and production start up
programs, and the additional costs the company has sustained during this
period on making its systems Year 2000 compliant.
The effective tax rate for the first six months of fiscal 1999 and fiscal
1998 was 26% versus 34%, respectively. The decrease was primarily due to the
tax benefit applicable to equity in losses of unconsolidated subsidiaries and
the reversal of an overaccrual of prior years tax provision.
Net income for the six months ended January 31, 1999 was $10,322,000, or
$0.81 per diluted share, as compared to net income of $10,315,000, or $0.81
per diluted share, for the six month period ended January 31, 1998.
Year 2000
The Year 2000 Issue is the result of computer programs being written using
two digits rather than four digits to define the application year. Computer
programs that have time-sensitive software may recognize a date using "00" as
the year 1900 rather than the year 2000. If the Company's internal systems
do not correctly recognize date information when the year changes to 2000,
there could be an adverse impact on the Company's operations.
<PAGE>12
ANALOGIC CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Year 2000
(continued)
The Company has undertaken considerable effort to assess the actions and
resources that will be required to make its systems Year 2000 compliant. The
Company, utilizing both internal and external resources to upgrade its
computer hardware and software systems, commenced implementation and now is
configuring and testing the Year 2000 software to meet its business needs.
The Company has also identified and is in the process of implementing changes
to other equipment in order to make them Year 2000 compliant.
The Company is also assessing the possible effects of the Year 2000 issues on
its significant vendors and customers, which could in turn affect the
Company's operations. The Company has not yet been able to determine,
however, whether any of its suppliers or service providers will need to make
any such software modifications or replacements or whether the failure to
make such software corrections will have an adverse effect on the Company's
operations or financial condition.
The Company currently estimates that Year 2000 costs for this current fiscal
year and next will range from $4.0 million to $6.0 million. The estimated
costs are based on management's best projections, yet there can be no
guarantee that those forecasts will be achieved and actual results could
differ materially from those anticipated. The cost of the project will be
funded through operating cash flows.
RESULTS OF OPERATIONS
Second Quarter Fiscal 1999 (01/31/99) vs. Second Quarter Fiscal 1998
(01/31/98)
Product, service, engineering and licensing revenues for the three months
ended January 31, 1999 were $68,780,000 as compared to $67,723,000 for the
same period last year, an increase of 2%. The increase of $1,057,000 was due
to increased sales of Medical Technology Products of $3,557,000, (primarily
due to sales of Cardiology Diagnostic Imaging Products), a decrease in Signal
Processing Technology Products of $1,354,000, and a decrease in Industrial
Technology Products of $1,146,000 (primarily due to lower demand of the
Company's high frequency ATE boards). Product revenues were adversely
affected by the softness in the Asian and South American markets. Other
operating revenue of $2,412,000 and $2,475,000 represents revenue from the
Hotel operation for the three months ending January 31, 1999 and 1998,
respectively.
The percentage of total cost of sales to total net sales for the second
quarter of fiscal 1999 and fiscal 1998 were 59% and 58%, respectively.
Operating costs associated with the Hotel during the second quarter of fiscal
1999 and 1998 were $1,338,000 and $1,410,000, respectively.
General and administrative and selling expenses increased $312,000 primarily
due to increased staffing. Research and product development expenses
increased $710,000 primarily due to the Company's expanding engineering
efforts applicable to developing complex imaging systems.
<PAGE>13
ANALOGIC CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Second Quarter Fiscal 1999 (01/31/99) vs. Second Quarter Fiscal 1998
(01/31/98)
(continued)
Computer software costs of $502,000 and $403,000 were capitalized in the
second quarter of fiscal 1999 and 1998, respectively. Amortization of
capitalized software amounted to $495,000 and $591,000 in the second quarter
of fiscal 1999 and 1998, respectively.
A loss on foreign exchange of $65,000 was realized during the second quarter
of fiscal year 1999 versus a gain of $53,000 for the same period last year.
Most of the foreign exchange gains or losses have been incurred by our Danish
subsidiary, B-K Medical.
Minority interest in the net income of the Company's consolidated subsidiary,
Camtronics, for the second quarter ended January 31, 1999 amounted to
$251,000 compared to $352,000 for the second quarter ended January 31, 1998.
The Company's share of losses of a privately held company amounted to
$1,153,000 and $975,000 during the second quarter of fiscal 1999 and 1998.
During the second quarter of fiscal 1999, the Company's investment in another
privately held company was increased by $25,000, compared to $289,000 for the
second quarter of fiscal 1998, reflecting the Company's share of its equity.
Income from operations for the second quarter of fiscal 1999 was adversely
affected by the softness in the Asian and South American markets, the
additional expenses associated with new engineering and production start up
programs, and the additional costs the company has sustained during this
period on making its systems Year 2000 compliant.
The effective tax rate for the second quarter of fiscal 1999 and fiscal 1998
was 21% versus 34%, for the same period last year. The decrease was
primarily due to the reversal of an overaccrual of prior years tax provision,
and to the tax benefit applicable to equity in losses of unconsolidated
subsidiaries.
Net income for the quarter ended January 31, 1999 was $5,565,000, or $0.44
per diluted share, as compared to net income of $5,681,000, or $0.45 per
share for the same period last year.
<PAGE>14
ANALOGIC CORPORATION AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) During the quarter ended January 31, 1999, the Company did not file any
reports on Form 8-K.
<PAGE>15
ANALOGIC CORPORATION AND SUBSIDIARIES
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.
ANALOGIC CORPORATION
Registrant
Date March 8, 1999 /s/ Bernard M. Gordon
Bernard M. Gordon
Chairman of the Board
Chief Executive Officer
Date March 8, 1999 /s/ John A. Tarello
John A. Tarello
Senior Vice President
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S BALANCE SHEETS AND CONSOLIDATED STATEMENTS OF INCOME AND IS
QUALIFIED IN ITS ENTIRETY TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1999
<PERIOD-START> NOV-01-1998
<PERIOD-END> JAN-31-1999
<EXCHANGE-RATE> 1
<CASH> 30088
<SECURITIES> 97334
<RECEIVABLES> 57242
<ALLOWANCES> 1196
<INVENTORY> 54822
<CURRENT-ASSETS> 244207
<PP&E> 156278
<DEPRECIATION> 100006
<TOTAL-ASSETS> 244207
<CURRENT-LIABILITIES> 34519
<BONDS> 0
0
0
<COMMON> 693
<OTHER-SE> 261962
<TOTAL-LIABILITY-AND-EQUITY> 311966
<SALES> 130207
<TOTAL-REVENUES> 139855
<CGS> 77705
<TOTAL-COSTS> 80678
<OTHER-EXPENSES> 42349
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 205
<INCOME-PRETAX> 14407
<INCOME-TAX> 3739
<INCOME-CONTINUING> 10322
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10322
<EPS-PRIMARY> 0.82
<EPS-DILUTED> 0.81
</TABLE>
