<PAGE>
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 November 26, 1995
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: 1-6453
NATIONAL SEMICONDUCTOR CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 95-2095071
(State of incorporation) (I.R.S. Employer Identification Number)
2900 Semiconductor Drive, P.O. Box 58090
Santa Clara, California 95052-8090
(Address of principal executive offices)
Registrant's telephone number, including area code: (408) 721-5000
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 .
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Title of Each Class Outstanding at November 26,1995.
------------------- --------------------------------
Common stock, par value $0.50 per share 122,808,091
<PAGE> 1
NATIONAL SEMICONDUCTOR CORPORATION
INDEX
Part I. Financial Information Page No.
--------
Condensed Consolidated Statements of Operations
(Unaudited) for the Three Months and Six Months
Ended November 26, 1995 and November 27, 1994 3
Condensed Consolidated Balance Sheets (Unaudited)
as of November 26, 1995 and May 28, 1995 4
Condensed Consolidated Statements of Cash Flows
(Unaudited) for the Six Months Ended
November 26, 1995 and November 27, 1994 5
Notes to Condensed Consolidated Financial
Statements (Unaudited) 6
Management's Discussion and Analysis of Results
of Operations and Financial Condition 8
Part II. Other Information
Legal Proceedings 11
Submission of Matters to a Vote of Security Holders 11
Exhibits and Reports on Form 8-K 12
Signature 13
<PAGE> 2
PART I. FINANCIAL INFORMATION
NATIONAL SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(in millions, except per share amounts)
Three Months Ended Six Months Ended
------------------ --------------------
Nov. 26, Nov. 27, Nov. 26, Nov. 27,
1995 1994 1995 1994
-------- ------- -------- --------
Net sales $ 711.6 $ 584.4 $1,410.4 $1,138.2
Operating costs and expenses:
Cost of sales 398.6 332.7 796.3 653.3
Research and development 88.7 67.0 173.6 132.9
Selling, general and
administrative 128.8 108.5 258.0 211.4
------- ------ -------- -------
Total operating costs
and expenses 616.1 508.2 1,227.9 997.6
------- ------ -------- -------
Operating income 95.5 76.2 182.5 140.6
Interest income, net 2.7 3.5 5.8 8.0
Other income, net 8.0 4.0 16.0 8.8
------- ------- -------- -------
Income before income
taxes 106.2 83.7 204.3 157.4
Income taxes 26.4 16.7 51.0 31.4
------- ------ -------- -------
Net income $ 79.8 $ 67.0 $ 153.3 $ 126.0
======= ====== ======== =======
Earnings per share:
Primary $ .61 $ .51 $ 1.16 $ .96
Fully diluted $ .57 $ .49 $ 1.10 $ .91
Weighted average shares:
Primary 126.9 125.0 127.2 125.7
Fully diluted 143.1 137.2 141.4 137.9
Income used in primary
earnings per share
(reflecting preferred
dividends) $ 77.0 $ 64.2 $ 147.7 $ 120.4
Income used in fully diluted
earnings per share
(reflecting adjustment
for interest on
convertible debt) $ 81.9 $ 67.0 $ 155.4 $ 126.0
See accompanying Notes to Condensed Consolidated Financial Statements
<PAGE> 3
NATIONAL SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions)
Nov. 26, May 28,
1995 1995
ASSETS -------- --------
Current assets:
Cash and cash equivalents $ 497.9 $ 420.3
Short-term marketable investments 59.8 47.1
Receivables, net 354.3 318.0
Inventories 303.6 263.0
Deferred tax assets 79.0 77.4
Other current assets 87.7 52.5
------- -------
Total current assets 1,382.3 1,178.3
Property, plant and equipment 2,359.3 2,147.6
Less accumulated depreciation 1,225.5 1,185.2
------- -------
Net property, plant and equipment 1,133.8 962.4
Long-term marketable investments 20.2 20.2
Other assets 76.8 74.8
------- -------
Total assets $2,613.1 $2,235.7
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short term borrowings and current
portion of long-term debt $ 23.4 $ 23.6
Accounts payable 217.5 272.0
Accrued expenses 227.6 230.7
Income taxes 183.9 159.6
------- -------
Total current liabilities 652.4 685.9
Long-term debt 363.3 82.5
Deferred income taxes 20.0 20.1
Other non-current liabilities 42.3 40.5
------- -------
Total liabilities 1,078.0 829.0
------- -------
Commitments and contingencies
Shareholders' equity:
Convertible preferred stock 0.2 0.2
Common stock 61.7 63.1
Additional paid-in capital 919.8 992.3
Retained earnings 558.2 411.0
Treasury stock, at cost (4.8) (59.9)
------- -------
Total shareholders' equity 1,535.1 1,406.7
------- -------
Total liabilities and shareholders' equity $2,613.1 $2,235.7
======== ========
See accompanying Notes to Condensed Consolidated Financial Statements
<PAGE> 4
NATIONAL SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(in millions)
Six Months Ended
--------------------
Nov. 26, Nov. 27,
1995 1994
------- -------
Cash flows from operating activities:
Net income $ 153.3 $ 126.0
Adjustments to reconcile net income
with net cash provided by operations:
Depreciation and amortization 108.8 84.3
Gain on sale of investments (5.2) (4.3)
Tax benefit associated with stock options 12.0 17.8
Other, net 2.0 3.4
Changes in certain assets and liabilities, net:
Receivables (36.3) (1.8)
Inventories (40.6) (14.8)
Other current assets (35.2) (8.0)
Accounts payable and accrued expenses (53.3) (67.2)
Current and deferred income taxes 23.2 (28.9)
Other non-current liabilities 1.8 1.0
-------- --------
Net cash provided by operating activities 130.5 107.5
-------- --------
Cash flows from investing activities:
Purchases of property, plant and equipment (277.3) (159.1)
Proceeds from the sales and maturities of
marketable investments 305.2 450.2
Purchases of marketable investments (318.1) (416.3)
Proceeds from sale of investments 7.8 4.9
Purchases of investments and other, net (10.4) (10.6)
-------- --------
Net cash used by investing activities (292.8) (130.9)
-------- --------
Cash flows from financing activities:
Proceeds from issuance of convertible subordinated
notes, less issuance costs 253.3 -
Proceeds from the issuance of debt 42.0 23.2
Repayment of debt (14.7) (10.5)
Issuance of common stock, net 22.3 2.2
Purchase of treasury stock (57.4) (42.4)
Payment of preferred dividends (5.6) (5.6)
-------- --------
Net cash provided by (used by) financing
activities: 239.9 (33.1)
-------- --------
Net change in cash and cash equivalents 77.6 (56.5)
Cash and cash equivalents at beginning of period 420.3 398.1
-------- --------
Cash and cash equivalents at end of period $ 497.9 $ 341.6
======== ========
See accompanying Notes to Condensed Consolidated Financial Statements
<PAGE> 5
Note 1. Summary of Significant Accounting Policies
In the opinion of management, the accompanying condensed consolidated
financial statements contain all adjustments necessary to present fairly
the financial position and results of operations of National
Semiconductor Corporation and its subsidiaries ("National" or the
"Company"). Interim results of operations are not necessarily
indicative of the results to be expected for the full year. This report
should be read in conjunction with the consolidated financial statements
and notes thereto included in the annual report on Form 10-K for fiscal
year ended May 28, 1995.
Property, plant and equipment: Property, plant and equipment are
recorded at cost. Effective May 29, 1995, the Company prospectively
changed its method of accounting for depreciation from the 150 percent
declining balance method to the straight-line method for machinery and
equipment placed in service on or after that date. The change was
adopted because it conforms with predominant industry practice and it is
expected to result in a more appropriate distribution of the cost of the
new machinery and equipment over its estimated useful life. The effect
of the change was not material to the Company's consolidated financial
statements for the second quarter and the first six months of fiscal
1996. Assets placed in service prior to 1996 and assets other than
machinery and equipment continue to be depreciated using prior years'
depreciation methods consisting of both straight-line and declining
balance methods over estimated useful lives, or in the case of property
under capital lease and leasehold improvements, over the lesser of the
estimated useful life or lease term.
Note 2. Components of Inventories
The components of inventories were:
(in millions) Nov. 26, May 28,
1995 1995
------- -------
Raw materials $ 36.6 $ 33.9
Work in process 185.5 165.9
Finished goods 81.5 63.2
----- ------
Total inventories $ 303.6 $ 263.0
======= =======
Note 3. Other income, net
The Company reclassified certain non-operating items that were
previously reported as selling, general and administrative expenses as
other income, net. The reclassifications had no impact on previously
reported net income.
Components of other income, Three Months Ended Six Months Ended
net, were: ------------------ ------------------
(in millions) Nov. 26, Nov. 27, Nov. 26, Nov. 27,
1995 1994 1995 1994
-------- -------- -------- --------
Net intellectual property income $ 8.0 $ 4.7 $ 10.8 $ 9.5
Gain on sale of investments, net - 4.3 5.2 4.3
Other - (5.0) - (5.0)
------- ------- ------- -------
Total other income, net $ 8.0 $ 4.0 $ 16.0 $ 8.8
======= ======= ======= =======
<PAGE> 6
Note 4. Debt Financing
In September 1995, the Company completed a private placement of
convertible subordinated notes in the total amount of $258.8 million to
certain qualified investors and overseas persons. Interest is payable
semi-annually beginning April 1, 1996 at an annual rate of 6.5 percent.
The notes, which mature in 2002, are not redeemable by the Company prior
to October 3, 1998. Thereafter, the notes are redeemable at the option
of the Company, initially at 103.714 percent of face value and at
decreasing prices thereafter to 100 percent at maturity, plus accrued
interest. The notes are convertible, at any time, into shares of the
Company's common stock at an initial conversion price of $42.78 per
share and are subordinated to senior indebtedness of the Company. The
notes have not been and will not be registered under the Securities Act
of 1993 and may not be offered or sold within the United States absent
registration or exemption from such registration requirements.
Note 5. Preferred Stock Redemption
In November 1995, the Company called for the redemption on December 1,
1995 of all outstanding shares of its $32.50 Convertible Preferred
shares. As a result of the redemption, on December 1, 1995 each
Convertible Preferred share was automatically converted into 35.273
shares of the Company's common stock for a total of 12.2 million shares
of common stock. This transaction will be reflected in the Company's
financial statements for the third fiscal quarter ending February 25, 1996.
Note 6. Statement of Cash Flows Information
(in millions)
Six Months Ended
------------------
Nov. 26, Nov. 27,
1995 1994
-------- --------
Supplemental disclosure of cash flow
information:
Cash paid for:
Interest $ 4.6 $ 1.5
Interest on tax settlements 11.3 26.3
Income taxes 14.2 43.4
Supplemental schedule of non-cash investing
and financing activities:
Issuance of stock for employee benefit plans $ 4.3 $ 4.0
Tax benefit for employee stock option plans 12.0 17.8
Retirement of treasury stock 112.5 -
Unrealized gain (loss) on available-for-sale
securities (0.5) 0.2
<PAGE> 7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
Sales Net sales of $711.6 million and $1,410.4 million for the second
quarter and first six months of fiscal 1996 increased by 21.8 percent
and 23.9 percent, respectively, over the comparable periods of fiscal
1995, led by an increase in sales for analog and mixed signal products
of 27.2 percent and 30.9 percent, respectively, for the same periods.
The Company's focus on analog and mixed signal market opportunities
continues to drive the growth in sales, as analog and mixed signal
products grew to 58.3 percent and 58.8 percent of total sales for the
second quarter and first six months of fiscal 1996 from 55.8 percent and
55.7 percent of total sales, respectively, for the comparable periods of
fiscal 1995. This shift toward analog and mixed signal products is
reflected in the lower growth rate for bipolar and CMOS logic and memory
product sales of 11.0 percent and 12.9 percent for the second quarter
and first six months of fiscal 1996 compared to the comparable periods
of fiscal 1995. Sales of these products represent 20.6 percent and 20.7
percent of total sales for the second quarter and first six months of
fiscal 1996, down from 22.6 percent and 22.7 percent, respectively, for
the comparable periods of fiscal 1995. Sales for the remaining product
lines decreased to 21.1 percent and 20.5 percent of total sales for the
second quarter and first six months of fiscal 1996 from 21.6 percent for
each of the comparable periods of fiscal 1995.
Gross Margin Gross margin rose to 44.0 percent and 43.5 percent for
the second quarter and first six months of fiscal 1996, from 43.1
percent and 42.6 percent, respectively, for the comparable periods of
fiscal 1995. The improvement is attributable to the continued shift in
product portfolio towards higher margin analog and mixed signal
products, which provide gross margins in excess of 50 percent, as well
as the Company's strategy to maintain the market for older logic products
and de-emphasize the merchant market for EPROM memory products.
Research and Development Research and development expenses increased
overall by 32.4 percent and 30.6 percent for the second quarter and
first six months of fiscal 1996 over the comparable period of fiscal
1995 and as a percent of sales increased to 12.5 percent and 12.3
percent for the second quarter and first six months of fiscal 1996 from
11.5 percent and 11.7 percent, respectively, for the comparable periods
of fiscal 1995. The increase is attributable to the Company's continued
investment in the development of new analog mixed signal products, as
well as submicron CMOS process technology.
Selling, General, and Administrative The overall increase in
selling, general, and administrative ("SG&A") expenses of 18.7 percent
and 22.0 percent for the second quarter and first six months of fiscal
1996 over the comparable periods of fiscal 1995 was attributable to
increases in sales support costs and marketing activities proportional
to increased sales and increases in contributions to employee
compensation and benefit plans, including the employee retirement and
savings program and the success sharing incentive plan, reflecting the
<PAGE> 8
Company's increased profitability. SG&A expenses decreased slightly as
a percent of sales to 18.1 percent and 18.3 percent for the second
quarter and first six months of fiscal 1996 from 18.6 percent for each
of the comparable periods of fiscal 1995. The decrease reflects the
results of a number of cost management programs the Company implemented
during the second quarter to maintain cost growth rate below sales
growth rate.
Interest Income and Interest Expense Interest income increased $2.7
million and $3.3 million, to $7.8 million and $13.6 million,
respectively, for the second quarter and first six months of fiscal 1996
compared to the comparable periods of fiscal 1995. Interest expense
increased to $5.2 million and $7.8 million from $1.5 million and $2.3
million, respectively, for the comparable periods of fiscal 1995. While
the increase in interest income was the result of higher average
earnings rates on higher cash balances, it was offset by a greater
increase in interest expense associated with the $258.8 million convertible
subordinated notes issued by the Company in a private placement which was
completed in September 1995, as well as increased borrowing levels related to
the Company's continued investment in plant and equipment.
Other Income, net Other income was $8.0 million and $16.0 million
for the second quarter and first six months of fiscal 1996, compared to
$4.0 million and $8.8 million, respectively, for the comparable periods
of fiscal 1995. Included in other income for the second quarter and
first six months of fiscal 1996, is net intellectual property income of
$8.0 million and $10.8 million, respectively. Other income for the
first six months of fiscal 1996 also includes $5.2 million of realized
gains from sale of investments, net of losses. This compares to net
intellectual property income of $4.7 million and $9.5 million,
respectively, for the comparable periods of fiscal 1995, plus $4.3
million of realized gains from sale of investments, net of losses,
offset by a one-time royalty charge of $5.0 million in the second
quarter of fiscal 1995.
Income Taxes The effective tax rate for fiscal 1996 is approximately
25 percent compared to 20 percent for fiscal year 1995. The increase in
the annual effective tax rate primarily relates to the exhaustion of
certain net operating loss and tax credit carry forwards.
Financial Condition During the first six months of fiscal 1996, cash
and cash equivalents increased $77.6 million compared to a $56.5 million
decrease for the first six months of fiscal 1995. The increase was
primarily the result of the $130.5 million generated from cash flows
from operations compared to $107.5 million for the same period of fiscal
1995, together with proceeds of $253.3 million, net of issuance costs,
from the private placement of convertible subordinated notes offset by
the Company's continued investment in property, plant and equipment of
$277.3 million, an increase of $118.2 million over capital expenditures
for the same period of fiscal 1995.
<PAGE> 9
Management foresees significant increased cash outlays for plant and
equipment to continue throughout fiscal 1996. Existing cash and
investment balances, together with existing lines of credit, are
considered to be sufficient in the immediate future to finance these
capital investments.
Outlook Despite continued improvement in the financial results,
future trends for revenue and profitability continue to be difficult to
predict. Risks and uncertainties facing the Company include business
conditions and the rate of growth in the personal computer and
communications industries and the general economy, competitive factors
and price pressures, market acceptance and timing of new products, and
international economic conditions. The Company believes gross margins
as a percentage of sales will experience modest improvement through
fiscal 1996 as new capacity comes on line and demand continues for its
higher margin analog and mixed signal products. The Company has experienced
a general decline in the rate of growth in orders since the end of
fiscal 1995. Unless the rate of growth in orders increases, there can
be no assurance that the Company will continue to sustain the same rate
of revenue growth it experienced during the first half of fiscal 1996.
Operating expenses as a percentage of sales are expected to remain at
existing levels. National continues to pursue opportunities to leverage
its intellectual property; however, the timing and amount of future
licensing income cannot be forecast with certainty at this time. In
addition, the Company continues to pursue opportunities to develop joint
venture partnerships or potential acquisitions which enhance its product
portfolio in analog and mixed signal products. Similarly, the Company
continues to critically evaluate product lines and divisions where short
or long term prospects do not coincide with its overall strategic
direction. In these cases, the Company will consider dispositions of
assets or business entities as appropriate.
During the quarter, the Company signed an agreement to sell the assets
of its wholly owned subsidiary, DynaCraft, Inc. (DCI). The sale is
expected to close during the third quarter of fiscal 1996, pending
necessary governmental approvals. Prior to signing this agreement, the
Company announced the transfer of the Santa Clara manufacturing
operations of DCI to Penang, Malaysia. In connection with the transfer,
the Company recorded a non-recurring charge to cost of sales in the
second quarter of fiscal 1996, primarily representing severance
expenses. This charge, which was immaterial to the Company's financial
position or results of operations, was fully offset by a non-recurring credit
to costs of sales arising from the sale of the Company's adapter card segment
of its local area network business. The combined effect of these two
transactions had no impact on the Company's gross margin or net income for
the second quarter and the first six months of fiscal 1996. The Company does
not expect any gain or loss resulting from the disposition of the DCI assets
to have a material effect on its financial position or results of operations.
<PAGE> 10
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
- --------------------------
Reference is made to Item 3, Legal Proceedings, in the Company's Annual Report
on Form 10-K for the year ended May 28, 1995 and Item 1, Legal Proceedings in
the Company's Quarterly Report on 10-Q for the quarter ended August 27, 1995,
which information is incorporated herein by reference.
Item 4. Submission of Matters to a Vote of Security Holders
- ------------------------------------------------------------
(a) The Registrant's Annual Meeting was held on September 29, 1995.
(b) The following directors were elected at the Meeting:
AUTHORITY
DIRECTOR FOR WITHHELD
----------------- ----------- ---------
Gilbert F. Amelio 113,359,584 694,389
Gary P. Arnold 111,309,372 744,601
Robert Beshar 110,930,593 1,123,380
Modesto A. Maidique 111,467,017 586,956
Edward R. McCracken 111,473,493 580,480
J. Tracy O'Rourke 111,462,503 591,470
Charles E. Sporck 111,261,712 792,261
Donald E. Weeden 111,279,909 774,064
(c) No other matters were considered at the meeting.
<PAGE> 11
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Exhibits
--------
3.1 Second Restated Certificate of Incorporation of the Company as
amended (incorporated by reference from the Exhibits to the
Company's Registration Statement on Form S-3 Registration No.
33-52775, which became effective March 22, 1994); Certificate of
Amendment of Certificate of Incorporation dated September 30, 1994
(incorporated by reference from the Exhibits to the Company's 10-K
for the fiscal year ended May 28, 1995).
3.2 By Laws for the Company (incorporated by reference from the Exhibits
to the Company's 10-K for the fiscal year ended May 28, 1995).
4.1 Rights Agreement (incorporated by reference from the Exhibits to the
Company's Registration Form 8-A filed August 10, 1988). First
Amendment to the Rights Agreement (incorporated by reference from
the Exhibits to the Amendment No. 1 to the Company's Registration
Statement on Form 8-A filed December 11, 1995).
4.2 Form of Common Stock Certificate (incorporated by reference from the
Exhibits to the Company's Registration Statement on Form S-3
Registration No. 33-48935, which became effective October 5, 1992).
11.0 Additional Fully Diluted Calculation of Earnings Per Share
27.0 Financial Data Schedule
(b) Reports on Form 8-K
-------------------
Report on Form 8-K reporting the Company's commencement of a
private placement offering to certain qualified investors and
overseas persons of up to $225 million in convertible subordinated
notes due 2002, plus an additional $33.75 million of notes to cover
over-allotments was filed on September 18, 1995. The date of the
reported event was September 18, 1995. No financial statements
were filed with the Form 8-K.
<PAGE> 12
SIGNATURE
- ---------
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.
NATIONAL SEMICONDUCTOR CORPORATION
Date: January 5, 1996 /s/ Richard D. Crowley
----------------------------------
Richard D. Crowley
Vice President and Controller
Signing on behalf of the registrant
and as principal accounting officer
<PAGE> 13
NATIONAL SEMICONDUCTOR CORPORATION Exhibit 11.0
ADDITIONAL FULLY DILUTED CALCULATION OF EARNINGS PER SHARE
(in millions, except per share amounts)
Three Months Ended Six Months Ended
------------------ --------------------
Nov. 26, Nov. 27, Nov. 26, Nov. 27,
1995 1994 1995 1994
-------- -------- -------- --------
Net income used in fully
diluted earnings per share
(reflecting adjustment for
interest on convertible
subordinated notes) $ 81.9 $ 67.0 $ 155.4 $ 126.0
======== ======== ======== ========
Number of shares:
Weighted average common
shares outstanding 123.1 121.2 123.1 121.6
Weighted average common
equivalent shares, net of
tax benefit 3.8 3.8 4.1 4.1
-------- ------- -------- --------
Weighted average common and
common equivalent shares 126.9 125.0 127.2 125.7
Shares issuable from
assumed conversion
of preferred shares 12.2 12.2 12.2 12.2
Shares issuable from
assumed conversion
of convertible
subordinated notes 4.0 - 2.0 -
-------- ------- -------- --------
Additional weighted average
common equivalent shares
assuming full dilution 143.1 137.2 141.4 137.9
======== ======== ======== ========
Income per share
assuming full dilution $ .57 $ .49 $ 1.10 $ .91
======== ======== ======== ========
<PAGE> 14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Accounts receivable balances are shown net of allowances consistent with
the balance sheet presentation. Interest expense accounts are shown net
consistent with the income statement presentation.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> MAY-26-1996 MAY-26-1996
<PERIOD-END> NOV-26-1995 NOV-26-1995
<CASH> 498 498
<SECURITIES> 60 60
<RECEIVABLES> 354 354
<ALLOWANCES> 0 0
<INVENTORY> 304 304
<CURRENT-ASSETS> 1382 1382
<PP&E> 2359 2359
<DEPRECIATION> 1226 1226
<TOTAL-ASSETS> 2613 2613
<CURRENT-LIABILITIES> 652 652
<BONDS> 363 363
0 0
0 0
<COMMON> 62 62
<OTHER-SE> 1473 1473
<TOTAL-LIABILITY-AND-EQUITY> 2613 2613
<SALES> 712 1410
<TOTAL-REVENUES> 712 1410
<CGS> 399 796
<TOTAL-COSTS> 399 796
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> (3) (6)
<INCOME-PRETAX> 106 204
<INCOME-TAX> 26 51
<INCOME-CONTINUING> 80 153
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 80 153
<EPS-PRIMARY> 0.61 1.16
<EPS-DILUTED> 0.57 1.10
</TABLE>
