<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND
- --- EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED: DECEMBER 31, 1999
- --- TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______________ TO
_______________ .
Commission File Number: 0-10004
---------------------------
NAPCO SECURITY SYSTEMS, INC.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
DELAWARE 11-2277818
- ------------------------------- ------------------------------------
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
333 Bayview Avenue
Amityville, New York 11701
- ------------------------------ ---------------
(Zip Code)
(516) 842-9400
---------------------------------------------------
(Registrant's telephone number including area code)
NONE
---------------------------------------------------
(Former name, former address and former fiscal year
if changed from 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 and Exchange Act
of 1934 during the preceding 12 months (or 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
------ ------
Number of shares outstanding of each of the issuer's classes of common stock
as of: DECEMBER 31, 1999
COMMON STOCK, $.01 PAR VALUE PER SHARE 3,495,351
<PAGE> 2
NAPCO SECURITY SYSTEMS, INC. AND SUBSIDIARIES
INDEX
DECEMBER 31, 1999
<TABLE>
<CAPTION>
Page
----
<S> <C>
PART I: FINANCIAL INFORMATION (unaudited)
Condensed Consolidated Balance Sheets,
December 31, 1999 and June 30, 1999 3
Condensed Consolidated Statements of Income for the Three
Months Ended December 31, 1999 and 1998 4
Condensed Consolidated Statements of Income for the Six
Months Ended December 31, 1999 and 1998 5
Condensed Consolidated Statements of Cash Flows for the Six
Months Ended December 31, 1999 and 1998 6
Notes to Condensed Consolidated Financial Statements 7
Management's Discussion and Analysis of Financial Condition and
Results of Operations 9
PART II: OTHER INFORMATION 11
SIGNATURE PAGE 12
INDEX TO EXHIBITS 13
</TABLE>
- 2 -
<PAGE> 3
NAPCO SECURITY SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
<TABLE>
<CAPTION>
December 31, June 30,
ASSETS 1999 1999
------ ----------------- ------------------
Current Assets: (in thousands, except share data)
<S> <C> <C>
Cash and cash equivalents $ 1,643 $ 2,230
Accounts receivable, less allowance for doubtful accounts:
December 31, 1999 $ 886
June 30, 1999 $ 887 12,994 16,446
Inventories, net (Note 2) 23,895 21,495
Prepaid expenses and other current assets 1,041 809
Deferred income taxes, net 716 716
----------------- ------------------
Total current assets 40,289 41,696
Property, Plant and Equipment, net of accumulated depreciation
and amortization (Note 3):
December 31, 1999 $ 12,958
June 30, 1999 $ 12,316 11,110 11,280
Goodwill, net 2,432 2,485
Other Assets 312 326
----------------- ------------------
$ 54,143 $ 55,787
================= ==================
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities:
Current portion of long-term debt $ 1,047 $ 1,433
Accounts payable 3,611 3,651
Accrued and other current liabilities 1,228 1,582
Accrued taxes - 110
----------------- ------------------
Total current liabilities 5,886 6,776
Long-Term Debt 16,723 17,241
Deferred Income Taxes 442 442
----------------- ------------------
Total liabilities 23,051 24,459
Stockholders' Equity:
Common stock, par value $.01 per share; 21,000,000 shares authorized;
5,913,802 and 5,908,602 shares issued, respectively;
3,495,351 and 3,490,151 shares outstanding, respectively 59 59
Additional paid-in capital 766 751
Retained earnings 34,716 34,967
Less: Treasury stock, at cost (2,418,451 shares) (4,449) (4,449)
----------------- ------------------
Total stockholders' equity 31,092 31,328
----------------- ------------------
$ 54,143 $ 55,787
================= ==================
</TABLE>
See accompanying notes to Condensed consolidated Financial Statements.
-3-
<PAGE> 4
NAPCO SECURITY SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
<TABLE>
<CAPTION>
Three Months Ended
December 31,
-----------------------------------------
1999 1998
----------------- ----------------
(in thousands, except share and per share data)
<S> <C> <C>
Net Sales $ 12,214 $ 10,860
Cost of Sales 9,171 8,259
----------- -----------
Gross profit 3,043 2,601
Selling, General and Administrative Expenses 2,541 2,495
----------- -----------
Operating income 502 106
----------- -----------
Interest Expense, net 333 352
Other (Income) Expense, net (2) 18
----------- -----------
331 370
----------- -----------
Income (loss) before provision (benefit) for income taxes 171 (264)
Provision (benefit) for Income Taxes 26 (396)
----------- -----------
Net income $ 145 $ 132
=========== ===========
Earnings Per Share (Note 5): Basic $ 0.04 $ 0.04
=========== ===========
Diluted $ 0.04 $ 0.04
=========== ===========
Weighted Average Number of Shares Outstanding (Note 5): Basic 3,495,351 3,490,151
=========== ===========
Diluted 3,505,482 3,589,231
=========== ===========
</TABLE>
See accompanying notes to Condensed consolidated Financial Statements.
-4-
<PAGE> 5
NAPCO SECURITY SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
<TABLE>
<CAPTION>
Six Months Ended
December 31,
-----------------------------------------
1999 1998
----------------- ------------------
(in thousands, except share and per share data)
<S> <C> <C>
Net Sales $ 22,663 $ 21,950
Cost of Sales 17,029 16,641
----------- -----------
Gross profit 5,634 5,309
Selling, General and Administrative Expenses 5,260 4,723
----------- -----------
Operating income 374 586
----------- -----------
Interest Expense, net 654 720
Other Expense, net 30 23
----------- -----------
684 743
----------- -----------
Income (loss) before (benefit) for income taxes (310) (157)
(Benefit) for Income Taxes (59) (561)
----------- -----------
Net income $ (251) $ 404
=========== ===========
Earnings Per Share (Note 5): Basic $ (0.07) $ 0.12
=========== ===========
Diluted $ (0.07) $ 0.11
=========== ===========
Weighted Average Number of Shares Outstanding (Note 5): Basic 3,493,618 3,489,901
=========== ===========
Diluted 3,493,618 3,667,169
=========== ===========
</TABLE>
See accompanying notes to Condensed consolidated Financial Statements.
-5-
<PAGE> 6
NAPCO SECURITY SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
<TABLE>
<CAPTION>
Six Months Ended
December 31,
---------------------------
1999 1998
------- -------
(in thousands)
<S> <C> <C>
Net Cash Provided by Operating Activities $ 789 $ 1,104
------- -------
Cash Flows from Investing Activities:
Purchases of property, plant and equipment (472) (492)
------- -------
Net cash used in investing activities (472) (492)
------- -------
Cash Flows from Financing Activities:
Proceeds from long-term debt borrowings - -
Principal payments on long-term debt (904) (700)
------- -------
Net cash used in financing activities (904) (700)
------- -------
Net (Decrease) in Cash and Cash Equivalents (587) (88)
Cash and Cash Equivalents at Beginning of Period 2,230 1,989
------- -------
Cash and Cash Equivalents at End of Period $ 1,643 $ 1,901
======= =======
Cash Paid During the Period for:
Interest $ 725 $ 657
======= =======
Income taxes $ 129 $ 246
======= =======
</TABLE>
See accompanying notes to Condensed consolidated Financial Statements.
-6-
<PAGE> 7
NAPCO SECURITY SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1.) Summary of Significant Accounting Policies and Other Disclosures
The information for the six months ended December 31, 1999 and 1998 is
unaudited, but in the opinion of the Company, all adjustments (consisting
only of normal recurring adjustments) considered necessary for a fair
presentation of the results of operations for such periods have been
included. The results of operations for the periods may not necessarily
reflect the annual results of the Company.
The Company has adopted all recently effective accounting standards which
have an impact on its condensed financial statements.
2.) Inventories
<TABLE>
<CAPTION>
Inventories consist of: December 31, June 30,
1999 1999
----------------- ------------------
(in thousands)
<S> <C> <C>
Component parts $ 11,220 $ 10,093
Work-in-process 5,507 4,954
Finished products 7,168 6,448
----------------- ------------------
$ 23,895 $ 21,495
================= ==================
</TABLE>
3.) Property, Plant and Equipment
<TABLE>
<CAPTION>
Property, Plant and Equipment consists of: December 31, June 30,
1999 1999
------------------ ------------------
(in thousands)
<S> <C> <C>
Land $ 904 $ 904
Building 8,911 8,911
Molds and dies 3,323 3,180
Furniture and fixtures 1,017 964
Machinery and equipment 9,857 9,581
Building improvements 56 56
------------------ ------------------
24,068 23,596
Less: Accumulated depreciation and amortization 12,958 12,316
------------------ ------------------
$ 11,110 $ 11,280
================== ==================
</TABLE>
4.) Income Taxes
In August 1995, the Internal Revenue Service ("IRS") informed the Company
that it had completed the audit of the Company's Federal tax returns for
fiscal years 1986 through 1993. The IRS had issued a report to the Company
proposing adjustments that would result in taxes due of approximately $4.3
million excluding interest charges. The primary adjustments presented by
the IRS related to intercompany pricing and royalty charges, DISC earnings
and charitable contributions. The Company disagreed with the IRS and began
the process of vigorously appealing this assessment using all remedies and
procedural actions available under the law. The Company had provided a
reserve to reflect its estimate of the ultimate resolution of this matter,
so that the outcome of this matter would not have a material adverse
effect on the Company's consolidated financial statements.
During fiscal 1998, the Company continued to discuss the assessment with
the IRS Appeals Office and in July 1998 received a revised audit report,
which was subject to final government administrative approval, and which
reduced the original assessment for the years covered by the IRS audit.
The Company accepted the revised audit report and the final government
approval was pending as of June 30, 1998. Accordingly, the Company
determined that $900,000 of previously recorded reserves should be
reversed through the 1998 income tax provision to reflect the expected
final settlement with respect to the IRS audit.
In fiscal 1999, the Company received the final government approval on the
IRS audit related to fiscal years 1986 through 1993. In addition, the IRS
completed its audits of fiscal years 1994 through 1997. As a result of the
favorable outcome from the audits, the Company reversed an additional
$1,896,000 of previously recorded reserves through the income tax
provision in fiscal 1999.
-7-
<PAGE> 8
NAPCO SECURITY SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
5.) Net Income (Loss) Per Common Share
Effective December 31, 1997, the Company adopted Statement of Financial
Accounting standards ("SFAS") No. 128, "Earnings per share". In accordance
with SFAS No. 128, net income per common share amounts ("basic EPS") were
computed by dividing net income by the weighted average number of common
shares outstanding for the period. Net income per common share amounts,
assuming dilution ("diluted EPS"), were computed by reflecting the
potential dilution from the exercise of stock options. SFAS No. 128
requires the presentation of both basic EPS and diluted EPS on the face of
the income statement. Net income per share amounts for the same prior-year
periods have been restated to conform to the provisions of SFAS No. 128.
A reconciliation between the numerators and denominators of the basic and
diluted EPS computations for net income is as follows:
<TABLE>
<CAPTION>
Three Months Ended
December 31, 1999
(in thousands, except per share data)
-------------------------------------------------------
Net Income Shares Per Share
(numerator) (denominator) Amounts
----------- ------------- -------
<S> <C> <C> <C>
Net income $145 - -
----
Basic EPS
---------
Net income attributable to
common stock $145 3,495 $0.04
----
Effect of dilutive securities
-----------------------------
Options - 10 0.00
---- ---- ----
Diluted EPS
-----------
Net income attributable to
common stock and assumed
option exercises $145 3,505 $0.04
---- ===== =====
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
December 31, 1999
(in thousands, except per share data)
-------------------------------------------------------
Net Income Shares Per Share
(numerator) (denominator) Amounts
----------- ------------- -------
<S> <C> <C> <C>
Net income $(251) - -
------
Basic EPS
---------
Net income attributable to
common stock $(251) 3,494 $(0.07)
------
Effect of dilutive securities
-----------------------------
Options - - 0.00
---- ---- ----
Diluted EPS
-----------
Net income attributable to
common stock and assumed
option exercises $(251) 3,494 $(0.07)
------ ===== =====
</TABLE>
Options to purchase 93,440 shares of common stock in the three and six months
ended December 31, 1999 were not included in the computation of diluted EPS
because the exercise prices exceeded the average market price of the common
shares for this period. Options to purchase 13,206 shares in the six months were
not included in the computation of diluted EPS because they are anti-dilutive.
These options were still outstanding at the end of the period.
-8-
<PAGE> 9
NAPCO SECURITY SYSTEMS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations
Sales for the six months ended December 31, 1999 increased by 3% to $22,663,000
as compared to $21,950,000 for the same period a year ago. For the quarter ended
December 31, 1999 net sales increased by 12% to $12,214,000 from $10,860,000 for
the same period in fiscal 1999. The increase in net sales for the three and six
months ended December 31, 1999 was primarily attributable to the increase in
sales volume of the Company's security panel and motion detector product lines
and in the Company's line of locking devices as well as the return to normal
levels of sales to one of the Company's customers after their acquisition of
another company in fiscal 1999. In anticipation of this acquisition, this
customer had reduced its purchases of the Company's products during the first
two quarters of fiscal 1999.
The Company's gross margin for the six months ended December 31, 1999 increased
by $325,000 to $5,634,000 or 24.9% of sales as compared to $5,309,000 or 24.2%
of sales for the same period a year ago. Gross margin for the three months ended
December 31, 1999 was $3,043,000 or 24.9% of sales as compared to $2,601,000 or
24.0% of sales for the same period a year ago. These increases were primarily
due to the increased sales as discussed above as well as increased efficiencies
in the procurement of component parts.
Selling, general and administrative expenses for the six months ended December
31, 1999 increased by $537,000 to $5,260,000 as compared to $4,723,000 a year
ago. For the three months ended December 31, 1999 selling, general and
administrative expenses remained relatively constant at $2,541,000 as compared
to $2,495,000 for the same period a year ago. The increase in the six months
primarily related to the Company's increased selling and marketing efforts in
the first quarter of fiscal 2000 relating to the rollout of its new products.
Interest and other expense for the six months ended December 31, 1999 decreased
by $59,000 to $684,000 from $743,000 for the same period a year ago. For the
three months ended December 31, 1999 interest and other expenses decreased by
$39,000 to $331,000 from $370,000 for the same period in fiscal 1999. These
decreases were primarily due to the Company's continuing reduction in its
outstanding debt.
Provision for income taxes for the six months ended December 31, 1999 was a
benefit of $59,000 as compared to a benefit of $561,000 for the same period a
year ago. For the three months ended December 31, 1999 provision for income
taxes was $26,000 as compared to a benefit of $396,000 for the same period a
year ago. These increases were primarily due to the favorable effect in fiscal
1999 of the reversal of previously recorded reserves no longer required with
respect to IRS audits of fiscal years 1986 through 1997.
Net income decreased by $655,000 to a loss of $251,000 or $.07 per share for the
six months ended December 31, 1999 as compared to net income of $404,000 or $.11
per share for the same period a year ago. For the three months ended December
31, 1999 net income remained relatively constant at $145,000 or $.04 per share
as compared to $132,000 or $.04 per share for the same period in fiscal 1999.
However, compared to the three and six months ended December 31, 1999, net
income in the same periods a year ago included a significant benefit for income
taxes as discussed above. These changes in net income were also primarily due
to the other items discussed above.
Liquidity and Capital Resources
During the six months ended December 31, 1999 the Company utilized all of its
cash generated from operations and a portion of its cash on hand to reduce its
outstanding borrowings, purchase property and equipment and additional inventory
as discussed below. The Company reduced its outstanding debt to $17,770,000 at
December 31, 1999 from $18,674,000 at June 30, 1999 while cash and cash
equivalents decreased to $1,643,000 from $2,230,000 over the same period.
Accounts Receivable at December 31, 1999 decreased $3,452,000 to $12,994,000 as
compared to $16,446,000 at June 30, 1999. This decrease is primarily the result
of the higher sales volume during the quarter ended June 30, 1999 as compared to
the quarter ended December 31, 1999.
-9-
<PAGE> 10
NAPCO SECURITY SYSTEMS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
Inventory at December 31, 1999 increased by $2,400,000 to $23,895,000 as
compared to $21,495,000 at June 30, 1999. This increase was primarily the result
of the Company increasing production of certain of its existing products as well
as preparing for the rollout of several new products during the fiscal year.
In May of 1998 the Company repurchased 889,576 shares of Napco common stock for
$5.00 per share from one of its co-founders. $2.5 million was paid at closing
with the balance of the purchase price to be paid over a four (4) year period.
The portion of the purchase price paid at closing was financed by the Company's
primary bank and is to be repaid over a five (5) year period.
The Company's bank debt consists of a $16,000,000 secured revolving credit
agreement and a $3,000,000 line of credit to be used in connection with
commercial and standby letters of credit. The revolving credit agreement was
amended to expire in May 2001 and any outstanding borrowings are to be repaid on
or before that time.
On April 26, 1993 the Company's foreign subsidiary entered into a 99 year lease
of approximately four acres of land in the Dominican Republic, at an annual cost
of approximately $272,000. The foreign subsidiary relocated its operations to
this site at the end of fiscal 1995.
As of December 31, 1999 the Company had no material commitments for capital
expenditures.
Year 2000 Date Conversion
To date, the Company has not experienced any failures or disruptions in its
internal operating systems, in its products or in the services provided by its
vendors and suppliers. It is possible that the Company's computerized systems
could be affected in the future by the Year 2000 issue. The Company has not
incurred any significant expenses relating to the Year 2000 issue.
Forward-looking Statements
This quarterly report, other than historical financial information, contains
forward-looking statements, as defined in the Private Securities Litigation
Reform Act of 1995, that involve a number of risks and uncertainties. Important
factors that could cause actual results to differ materially from those
indicated by such forward-looking statements are set forth in Item 1 of the
Company's annual report on Form 10-K for the year ended June 30, 1999. These
include risks and uncertainties relating to competition and technological
change, intellectual property rights, capital spending, international
operations, and the Company's acquisition strategies.
Quantitative and Qualitative Disclosures About Market Risk
The Company's principle financial instrument is long-term debt (consisting of a
revolving credit and term loan facility) that provides for interest at a spread
above the prime rate. The Company is affected by market risk exposure primarily
through the effect of changes in interest rates on amounts payable by the
Company under this credit facility. A significant rise in the prime rate could
materially adversely affect the Company's business, financial condition and
results of operations. At December 31, 1999 an aggregate amount of approximately
$15,000,000 was outstanding under this credit facility with a weighted average
interest rate of 6.8%. If principal amounts outstanding under this facility
remained at this quarter-end level for an entire year and the prime rate
increased or decreased, respectively, by 1.25% the Company would pay or save,
respectively, an additional $187,500 in interest in that year. The Company does
not utilize derivative financial instruments to hedge against changes in
interest rates or for any other purpose. Where appropriate, the Company requires
that letters of credit be provided on foreign sales. In addition, a significant
number of transactions by the Company are denominated in U.S. dollars. As such,
the Company has shifted foreign currency exposure onto its foreign customers. As
a result, if exchange rates move against foreign customers, the Company could
experience difficulty collecting unsecured accounts receivable, the cancellation
of existing orders or the loss of future orders. The foregoing could materially
adversely affect the Company's business, financial condition and results of
operations.
-10-
<PAGE> 11
PART II: OTHER INFORMATION
Item 1 Legal Proceedings
In August 1995, the Internal Revenue Service ("IRS") informed the
Company that it had completed the audit of the Company's Federal tax
returns for fiscal years 1986 through 1993. The IRS had issued a report
to the Company proposing adjustments that would result in taxes due of
approximately $4.3 million excluding interest charges. The primary
adjustments presented by the IRS related to intercompany pricing and
royalty charges, DISC earnings and charitable contributions. The Company
disagreed with the IRS and began the process of vigorously appealing
this assessment using all remedies and procedural actions available
under the law. The Company had provided a reserve to reflect its
estimate of the ultimate resolution of this matter, so that the outcome
of this matter would not have a material adverse effect on the Company's
consolidated financial statements.
During fiscal 1998, the Company continued to discuss the assessment with
the IRS Appeals Office and in July 1998 received a revised audit report,
which was subject to final government administrative approval, and which
reduced the original assessment for the years covered by the IRS audit.
The Company accepted the revised audit report and the final government
approval was pending as of June 30, 1998. Accordingly, the Company
determined that $900,000 of previously recorded reserves should be
reversed through the 1998 income tax provision to reflect the expected
final settlement with respect to the IRS audit.
In fiscal 1999, the Company received the final government approval on
the IRS audit related to fiscal years 1986 through 1993. In addition,
the IRS completed its audits of fiscal years 1994 through 1997. As a
result of the favorable outcome from the audits, the Company reversed an
additional $1,896,000 of previously recorded reserves through the income
tax provision in fiscal 1999.
Item 2 Changes in Securities
None
Item 3 Defaults Upon Senior Securities
None
Item 4 Submission of Matters to a Vote of Security Holders
(a) The annual meeting of the stockholders of the Company (the
"Annual Meeting") was held on December 9, 1999.
(b) At the Annual Meeting, Andrew J. Wilder was re-elected as
director through 2002.
Item 5 Other Information
None
Item 6 Exhibits and Reports on Form 8-K
(a) Exhibits
22 Financial Data Schedule
(b) No reports on Form 8-K have been filed during the Company's
fiscal quarter ended December 31, 1999.
-11-
<PAGE> 12
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.
February 11, 2000
NAPCO SECURITY SYSTEMS, INC.
(Registrant)
By: /s/ Richard Soloway
-----------------------
Richard Soloway
Chairman of the Board of Directors,
President and Secretary
(Principal Executive Officer)
By: /s/ Kevin S. Buchel
-----------------------
Kevin S. Buchel
Senior Vice President of Operations
and Finance and Treasurer
(Principal Financial and Accounting
Officer)
-12-
<PAGE> 13
INDEX TO EXHIBITS
Exhibits
22 Financial Data Schedule
-13-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> DEC-31-1999
<CASH> 1,643
<SECURITIES> 0
<RECEIVABLES> 12,994
<ALLOWANCES> 886
<INVENTORY> 23,895
<CURRENT-ASSETS> 40,212
<PP&E> 24,068
<DEPRECIATION> 12,958
<TOTAL-ASSETS> 54,143
<CURRENT-LIABILITIES> 5,886
<BONDS> 0
0
0
<COMMON> 59
<OTHER-SE> 31,033
<TOTAL-LIABILITY-AND-EQUITY> 54,143
<SALES> 22,663
<TOTAL-REVENUES> 22,663
<CGS> 17,029
<TOTAL-COSTS> 17,029
<OTHER-EXPENSES> 5,260
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 684
<INCOME-PRETAX> (310)
<INCOME-TAX> (59)
<INCOME-CONTINUING> (251)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (251)
<EPS-BASIC> (0.07)
<EPS-DILUTED> (0.07)
</TABLE>
