<PAGE> 1
U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________________
FORM 10-QSB
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
[ X ] SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 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 0-13801
_______
QUALITY SYSTEMS, INC.
_________________________________________________________________
(Exact name of small business issuer as specified in its charter)
California 95-2888568
_______________________________ ___________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
17822 East 17th Street, Tustin, California 92680
__________________________________________ __________
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (714) 731-7171
______________
NOT APPLICABLE
________________________________________________________________
(Former name, former address and former fiscal year, if changed,
since last year)
Indicate by check mark whether the issuer (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports); and (2) has
been subject to such filing requirements for the past 90 days.
Yes XX No
_____ _____
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
4,638,491 shares of Common Stock, $.01 par value,
as of February 12, 1996
Page 1 of 16
<PAGE> 2
PART I FINANCIAL INFORMATION
------ ---------------------
Item 1. Financial Statements
-----------------------------
QUALITY SYSTEMS, INC.
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
December 31, March 31,
1995 1995
------------- -----------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 6,396,800 $ 6,085,300
Short-term investments 1,265,200 1,237,200
Accounts receivable, net 4,364,900 2,996,500
Inventories 724,600 782,900
Deferred tax asset - 199,000
Prepaid income taxes 93,600 -
Other current assets 61,800 74,300
------------- -----------
Total current assets 12,906,900 11,375,200
Equipment and improvements, net 466,900 535,300
Capitalized software costs, net 579,500 501,300
Investment, Clinitec International, Inc. 985,800 -
Cash surrender value of life insurance 316,200 185,100
Deferred offering costs 68,400 -
Other assets 61,900 70,900
------------- -----------
Total assets $ 15,385,600 $12,667,800
============= ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 942,900 $ 597,400
Accrued payroll and related expenses 492,900 427,100
Accrued expenses 474,600 492,400
Deferred service revenue 1,030,300 951,500
Deferred compensation 316,200 185,100
Estimated costs to complete system
installations 336,800 216,500
Deferred tax liability 10,900 -
Income taxes payable - 473,400
----------- -----------
Total current liabilities 3,604,600 3,343,400
Deferred tax liability 100,100 136,800
----------- -----------
Total liabilities 3,704,700 3,480,200
----------- -----------
Shareholders' equity:
Common stock, $.01 par value,
20,000,000 shares authorized, 4,638,491
and 4,535,866 shares issued and
outstanding respectively 46,400 45,400
Additional paid-in capital 6,763,600 5,977,600
Unrealized loss on available-for-sale
securities, net of tax benefit of
$35,400 and $63,300 respectively (46,400) (83,000)
Retained earnings 4,917,300 3,247,600
----------- -----------
Total shareholders' equity 11,680,900 9,187,600
----------- -----------
Total liabilities and shareholders'
equity $15,385,600 $12,667,800
=========== ===========
</TABLE>
The accompanying notes are an integral part of the financial
statements.
<PAGE> 3
QUALITY SYSTEMS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
--------------------- ---------------------
December 31, December 31,
1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net revenues:
Sales of computer
systems, upgrades
and supplies $2,514,200 $1,165,800 $7,161,600 $3,895,300
Maintenance and other
services 1,819,100 1,588,900 5,159,400 4,726,400
---------- ---------- ---------- ----------
4,333,300 2,754,700 12,321,000 8,621,700
Cost of products and
services 2,080,500 1,389,900 5,865,400 4,498,100
---------- ---------- ---------- ----------
Gross profit 2,252,800 1,364,800 6,455,600 4,123,600
---------- ---------- ---------- ----------
Operating expenses:
Selling, general and
administrative 919,400 901,600 2,846,800 2,581,400
Research and development 464,300 393,200 1,120,500 1,109,600
---------- ---------- ---------- ----------
1,383,700 1,294,800 3,967,300 3,691,000
---------- ---------- ---------- ----------
Earnings from operations 869,100 70,000 2,488,300 432,600
Interest and investment
income 135,000 129,100 339,300 249,800
Equity in loss of Clinitec
International, Inc. (23,300) - (41,000) -
---------- ---------- ---------- ----------
Earnings before income
tax provision 980,800 199,100 2,786,600 682,400
Income tax provision 376,100 60,300 1,116,900 158,100
---------- ---------- ---------- ----------
Net earnings $ 604,700 $ 138,800 $1,669,700 $ 524,300
========== ========== ========== ==========
Earnings per share:
Primary $ .13 $ .03 $ .35 $ .11
Fully diluted $ .13 $ .03 $ .35 $ .11
======= ======= ======= =======
Equivalent number of
shares outstanding:
Primary 4,725,007 4,628,550 4,708,996 4,640,509
Fully diluted 4,728,314 4,628,550 4,724,448 4,640,509
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of the financial
statements.
<PAGE> 4
QUALITY SYSTEMS, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
--------------------------
December 31
1995 1994
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $1,669,700 $ 524,300
Adjustments to reconcile net
earnings to net cash provided
by (used in) operating activities:
Depreciation and amortization
of equipment and improvements 161,400 166,400
Amortization of capitalized
software costs 203,000 145,200
Realized (gains) losses from sales
of short-term investments 8,600 (28,200)
Unrealized gains on trading securities (54,700) (92,500)
Equity in loss of Clinitec
International, Inc. 41,000 -
Gain on sales of fixed assets (8,300) -
Deferred income taxes 173,200 (91,300)
Changes in:
Accounts receivable (1,368,400) (60,500)
Inventories 58,300 4,300
Other current assets 12,500 1,500
Accounts payable 345,500 (196,400)
Accrued expenses 48,000 30,500
Deferred service revenue 78,800 72,200
Estimated costs to complete
system installations 120,300 (145,300)
Income taxes payable, and taxes
related to equity accounts 33,000 249,400
------------ ------------
Net cash provided by operating activities 1,521,900 579,600
------------ ------------
Cash flows from investing activities:
Proceeds from sales of short-term
investments 1,092,400 10,343,800
Purchases of short-term investments (1,009,700) (8,500,600)
Net additions to equipment and
improvements, net (101,400) (71,100)
Additions to capitalized software
costs (281,200) (136,100)
Proceeds from sales of fixed assets 16,700 -
Investment in Clinitec (1,026,800) -
Increase in deferred offering costs (68,400) -
Change in other assets 9,000 31,500
------------ ------------
Net cash provided by (used in) investing
activities: (1,369,400) 1,667,500
------------ ------------
Cash flows from financing activities:
Proceeds from exercise of
stock options 159,000 44,200
----------- -----------
Net increase (decrease) in cash and
cash equivalents 311,500 2,291,300
Cash and cash equivalents, beginning of
period 6,085,300 1,092,900
----------- -----------
Cash and cash equivalents, end of period $6,396,800 $3,384,200
=========== ===========
</TABLE>
Supplemental information - During the nine months ended December 31,
1995 and 1994 the Company made income tax payments of $910,700 and
$9,900 respectively.
The accompanying notes are an integral part of the financial
statements.
<PAGE> 5
QUALITY SYSTEMS, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 1995 and 1994
NOTE 1 - BASIS OF PRESENTATION
------ ---------------------
The accompanying unaudited condensed financial statements have
been prepared in accordance with the requirements of Form 10-QSB and,
therefore, do not include all information and footnotes which would be
presented were such financial statements prepared in accordance with
generally accepted accounting principles, and should be read in
conjunction with the audited financial statements presented in the
Company's Annual Report for the fiscal year ended March 31, 1995. In
the opinion of management, the accompanying financial statements
reflect all adjustments which are necessary for a fair presentation of
the results of operations for the interim periods presented. The
results of operations for such interim periods are not necessarily
indicative of results of operations to be expected for the full year.
NOTE 2 - EARNINGS PER SHARE
------ ------------------
Earnings per share for the nine months ended December 31, 1995
and December 31, 1994 was computed based on the weighted average
number of shares actually outstanding, plus the shares that would be
outstanding, using the treasury stock method, assuming the exercise of
all outstanding options which were considered to be common stock
equivalents.
NOTE 3 - RELATED PARTY TRANSACTION
------ -------------------------
The Company sold a computer system for $334,600 to Heart
Institute of Nevada during the quarter ended December 31, 1995. John
Bowers, M.D., the Founder and Chief Executive Officer of Heart
Institute of Nevada is a member of Quality Systems, Inc. Board of
Directors. The Company's gross profit on the sale is comparable to
the gross profit on sales of similar computer systems.
NOTE 4 - NEW ACCOUNTING PRONOUNCEMENT
------ ----------------------------
The Financial Accounting Standards Board has recently issued
Financial Accounting Standards No. 123, "Accounting for Stock-based
Compensation", which requires the determination and disclosure of
compensation costs implicit in stock option grants. The Company is
required to adopt this standard beginning in fiscal 1997. The Company
does not plan to implement this standard until that time and has not
been able to quantify the effect of this standard.
<PAGE> 6
Item 2. Management's Discussion and Analysis of Financial Condition
------- -----------------------------------------------------------
and Results of Operations
-------------------------
General
-------
Since fiscal 1993, approximately one-half of the Company's
revenues have been derived from sales of computer systems, upgrades
and supplies, with the balance derived from systems maintenance
agreements and other support services. On sales of its systems,
upgrades and supplies, the Company recognizes revenues upon shipment
of products. Revenues attributable to the Company's software products
included with the systems are also recognized upon shipment, unless
the Company's installation obligations after shipment are significant,
in which case revenues are recognized on a percentage of completion
basis. Revenues from systems maintenance are typically recognized
ratably over the life of the contract. In the last five years, more
than 90% of the Company's clients have elected to purchase the
Company's maintenance and support services.
During the past five years, the Company's systems sales have been
impacted by a number of factors which have had the effect of reducing
systems sales and systems upgrade sales while at the same time
increasing the relative profitability of these sales. Historically,
the costs for the hardware components used in the Company's systems
have consistently declined while the performance and capacity of such
components have continually increased. Consistent with the
marketplace, the Company has adjusted its systems pricing to its
clients to reflect these decreased hardware costs. In addition, the
Company increasingly encounters prospective clients that already own,
or desire to acquire from third parties, significant quantities of
hardware which may be utilized with the Company's software. In such
instances, the sales generated from such clients are lower than they
otherwise would be.
As of result of these market changes, the Company has
increasingly focused its efforts on the sale of its software user
licenses and services, resulting in higher margins. Aiding these
efforts has been the continuing increase in the capacity of the
hardware components which the Company markets. The Company has had a
growing market for the sale of additional software user licenses to
its existing clients as such clients can often add more software user
capacity to their system with minimal or no change to their current
central processing unit. Such clients frequently also purchase
hardware peripherals from the Company for use with the newly purchased
software user licenses.
The first nine months of fiscal 1996 have seen a marked increase
in the Company's system revenues. The Company attributes this
increase to the dynamic changes currently occurring in the health care
industry and to growing acceptance of the Company's products and
services. Health care providers, faced with economic pressures to
reduce costs and increase productivity, are increasingly aligning with
HMOs, hospitals and other health care organizations as well as
consolidating with other health care providers into larger, more
<PAGE> 7
efficient business entities. This trend results in an increase in the
number of large and complex health care organizations that are
potential clients for the Company's sophisticated systems. In
addition, the continued growth of these organizations after they
become clients of the Company presents the potential for the Company
to increase sales of upgrades and additional software user licenses.
The Company's ability to address the complex software requirements of
such newly forming or growing business entities, in particular in the
area of managed care, is a key to success in this changing health care
delivery environment.
The sales cycle for the Company's systems typically ranges from
three to 12 months from initial contact to contract execution. The
installation cycle is typically two to three months from contract
execution to completion of installation. Because a significant
percentage of the Company's expenses are relatively fixed, a variation
in the timing of systems sales and installations can cause significant
variations in operating results from quarter to quarter.
The Company's products are generally shipped as orders are
received and accordingly, the Company has historically operated with
little backlog. As a result, sales in any quarter are dependent on
orders booked and shipped in that quarter and are not predictable with
any degree of certainty. As a result, the company believes that
interim period-to-period comparisons of its results of operations are
not necessarily meaningful and should not be relied upon as
indications of future performance.
The Company's research and development expenses consist primarily
of personnel and equipment costs required to conduct the Company's
product development effort. The Company believes that significant
investments in research and development are required to remain
competitive. As a consequence, in recent years, the Company has
increased the amount of its expenditures on research and development,
mainly through the employment of additional development personnel.
Development costs incurred in the research and development of new
software products and enhancements to existing software products are
expensed as incurred until technological feasibility has been
established. After technological feasibility is established, any
additional development costs are capitalized and amortized over
periods ranging from three to five years.
Historical results of operations, percentage margin fluctuations
and any trends that may be inferred from the discussion below are not
necessarily indicative of the operating results for any future period.
<PAGE> 8
Results of Operations
---------------------
The following table sets forth for the periods indicated, the
percentage of net revenues represented by each item in the Company's
statement of operations.
<TABLE>
<CAPTION>
Three Months Nine Months
Ended Ended
December 31, December 31,
------------ ------------
1995 1994 1995 1994
----- ----- ----- -----
<S> <C> <C> <C> <C>
Net revenues:
Sales of computer systems,
upgrades and supplies.............. 58.0% 42.3% 58.1% 45.2%
Maintenance and other services...... 42.0 57.7 41.9 54.8
----- ----- ----- -----
100.0 100.0 100.0 100.0
Cost of products and services ........ 48.0 50.5 47.6 52.2
----- ----- ----- -----
Gross profit ......................... 52.0 49.5 52.4 47.8
Operating expenses:
Selling, general and administrative. 21.2 32.7 23.1 29.9
Research and development............ 10.7 14.3 9.1 12.9
----- ----- ----- -----
Total operating expenses.............. 31.9 47.0 32.2 42.8
----- ----- ----- -----
Earnings from operations.............. 20.1 2.5 20.2 5.0
Interest and investment income........ 3.1 4.7 2.7 2.9
Equity in loss of Clinitec............ (.6) - (.3) -
----- ----- ----- -----
Earnings before income tax provision.. 22.6 7.2 22.6 7.9
Income tax provision.................. 8.7 2.2 9.0 1.8
----- ----- ----- -----
Net earnings.......................... 13.9% 5.0% 13.6% 6.1%
===== ===== ===== =====
</TABLE>
For the Three-Month Periods Ended December 31, 1995 and 1994.
-------------------------------------------------------------
Net Revenues. Net revenues for the three months ended December 31,
1995 increased 57.3% to $4.3 million from $2.8 million for the three
months ended December 31, 1994. This increase was due primarily to
sales of computer systems, upgrades, including software user licenses,
and supplies, which grew 115.7% to $2.5 million from $1.2 million.
This growth resulted from an increase in the number of systems sold
and from increased sales of upgrades. Net revenues from maintenance
and other services grew 14.5% to $1.8 million from $1.6 million. This
growth resulted from a larger client base for recurring revenues and
increased time and material billings for additional services.
Cost of Products and Services. Cost of products and services for the
three months ended December 31, 1995 increased 49.7% to $2.1 million
from $1.4 million for the three months ended December 31, 1994. This
increase was due to the increase in systems sold and net revenues. As
a percentage of net revenues, cost of products and services decreased
to 48.0% from 50.5%. This decrease was due to an increase in the
proportion of revenue from lower cost items.
<PAGE> 9
Selling, General and Administrative Expenses. Selling, general and
administrative expenses for the three months ended December 31, 1995
increased 2.0% to $919,400 from $901,600 for the three months ended
December 31, 1994. This increase was due to an increase in selling
expenses. This increase was more than offset by increased sales
during the same period, resulting in a decrease in selling, general
and administrative expenses, as a percentage of net revenues, to 21.2%
from 32.7%.
Research and Development Expenses. Research and development expenses
for the three months ended December 31, 1995 increased 18.1% to
$464,300 from $393,200 for the three months ended December 31, 1994.
This increase was attributable to enhancements and additions to the
Company's systems.
Interest and Investment Income. Interest and investment income for
the three months ended December 31, 1995 increased 4.6% to $135,000
from $129,100 from the three months ended December 31, 1994. This
increase was due to an increase in funds available for investment.
Income Tax Provision. Income tax provision for the three months ended
December 31, 1995 increased 523.7% to $376,100 from $60,300 for the
three months ended December 31, 1994. This increase was due to
increased earnings before income tax provision and an increase in
effective tax rates. The effective tax rates for the respective
periods were 38.3% and 30.3%. The lower than normal tax rate for the
three months ended December 31, 1994 was due to utilization of a
deferred tax valuation allowance related to net operating loss
carryforwards.
For the Nine Month Periods Ended December 31, 1995 and 1994.
------------------------------------------------------------
Net Revenues. Net revenues for the nine months ended December 31,
1995 increased 42.9% to $12.3 million from $8.6 million for the nine
month ended December 31, 1994. This increase was due primarily to
sales of computer systems, upgrades, including software user licenses,
and supplies, which grew 83.9% to $7.2 million from $3.9 million. This
growth resulted from an increase in the number of larger systems and
increased sales of upgrades. Net revenues from maintenance and other
services grew 9.2% to $5.2 million from $4.7 million. This growth
resulted from a larger client base for recurring revenues and
increased time and material billings for additional services.
Cost of Products and Services. Cost of products and services for the
nine months ended December 31, 1995 increased 30.4% to $5.9 from $4.5
million for the nine months ended December 31, 1994. This increase
was due primarily to the increase in systems sold and in net revenues.
As a percentage of net revenues, cost of products and service
decreased to 47.6% form 52.2%. This decrease was due to and increase
in the proportion of revenues from lower cost items.
Selling, General and Administrative. Selling, general and
administrative expenses for the nine months ended December 31, 1995
increased 10.3% to $2.8 from $2.6 million for the nine months ended
December 31, 1994. This increase was attributable to increases in
sales and administrative personnel. These increases were more than
<PAGE> 10
offset by increased sales during the same period, resulting in a
decrease in selling, general and administrative expenses, as a
percentage of net revenues, to 23.1% from 29.9%.
Research and Development. Research and development expenses for the
nine months ended December 31, 1995 remained unchanged at $1.1 million
compared to the nine months ended December 31, 1994. This lower than
normal increase resulted from a higher proportion of capitalized
software. Total research and development expenditures and capitalized
software increased to $1.2 million from $1.1 million. The Company
anticipates increased expenditures in capitalized software in
connection with developing an alternate version of certain of its
products for the client/server environment to take advantage of new
more powerful technologies and to allow for a more seamless
integration of the Company's and Clinitec's NextGen applications.
Interest and Investment Income. Interest and investment income for
the nine months ended December 31, 1995 increased 35.8% to $339,300
from $249,800 for the nine months ended December 31, 1994. Current
period investment results represent an annualized yield of
approximately 6% on the Company's combined balances for cash and cash
equivalents and short-term investments. Interest and investment
income for the nine months ended December 31, 1994 included prior year
first quarter realized losses of $81,000 from sales of short-term
investments and first quarter unrealized losses of $10,000 from
trading securities.
Income Tax Provision. Income tax provision for the nine months ended
December 31, 1995 increased 606.5% to $1,116,900 from $158,100 for the
nine months ended December 31, 1994. This increase was due to
increased earnings before income tax provision and an increase in
effective tax rates. The effective tax rates for the respective
periods were 40.1% and 23.2%. The rate for the prior period was lower
due to utilization of a deferred tax valuation allowance related to
net operating loss carryforwards.
Liquidity and Capital Resources.
--------------------------------
Since inception, the Company has financed its operations primarily
through cash generated from operations. Net cash provided by
operating activities was $1.5 million for the nine months ended
December 31, 1995 and consisted principally of net earnings. An
increase in accounts receivable of $1.4 million, resulting from
increased net revenues, was offset by depreciation and amortization of
$364,400 and changes in other working capital items. Net cash
provided from operating activities was $579,600 for the nine months
ended December 31, 1994 and consisted principally of net earnings of
$524,300 and depreciation and amortization of $311,600, offset by a
$196,400 reduction in accounts payable.
Net cash used in investing activities was $1.4 million for the nine
months ended December 31, 1995 and consisted of a $1 million purchase
of a 25% equity interest in Clinitec International, Inc. and additions
to equipment and improvements and capitalized software. Net cash
provided by investing activities was $1.7 million for the nine
<PAGE> 11
months ended December 31, 1995 and consisted principally of changes in
short-term investments offset by additions to equipment and
improvements and capitalized software.
At December 31, 1995, the Company had cash and cash equivalents of
$6.4 million and short-term investments of $1.3 million. Short-term
investments include debt securities issued by foreign governments of
$311,000 and an investment in a hedge fund which trades in special
situations securities of $530,000. The Company does not believe these
investments have significant principal risk; however, there can be no
assurance that the market for these securities will not change,
causing a loss of principal.
<PAGE> 12
PART II. OTHER INFORMATION
-------- ------------------
Item 6. Exhibits and Reports on Form 8-K
-----------------------------------------
(a) Exhibits:
---------
The Exhibits listed on the accompanying Index to Exhibits
on page 16 are file as part of this report.
(b) Reports on Form 8-K: None
--------------------
<PAGE> 13
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.
QUALITY SYSTEMS, INC.
<TABLE>
<S> <C>
Date February 12, 1996 By /s/ Sheldon Razin
----------------- ----------------------------------
Sheldon Razin
President and Chairman
of the Board of Directors;
Principal Executive Officer
Date February 12, 1996 By /s/ Irma G. Carmona
---------------- ----------------------------------
Irma G. Carmona
Corporate Controller;
Principal Accounting Officer
</TABLE>
<PAGE> 14
INDEX TO EXHIBITS
Sequential
Page
Exhibit No.
------- ----------
11.0 Earnings per share computation, is filed herewith 15
27.0 Financial Data Schedule, is filed herewith. 16
<PAGE> 15
EXHIBIT 11.0
------------
Earnings per share for the nine months ended December 31, 1995
and December 31, 1994 was computed based on the weighted average
number of shares actually outstanding, plus the shares that would be
outstanding, using the treasury stock method, assuming the exercise of
all outstanding options which were considered to be common stock
equivalents. Primary and fully diluted net earnings per share amounts
are based on weighted average number of shares outstanding of
4,708,969 and 4,724,448 for December 31, 1995 respectively and
4,640,509 for both primary and fully diluted net earnings per share
for December 31, 1994.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> DEC-31-1995
<CASH> 6,396,800
<SECURITIES> 1,265,200
<RECEIVABLES> 4,364,900
<ALLOWANCES> 0
<INVENTORY> 724,600
<CURRENT-ASSETS> 12,906,900
<PP&E> 466,900
<DEPRECIATION> 0
<TOTAL-ASSETS> 15,385,600
<CURRENT-LIABILITIES> 3,604,600
<BONDS> 0
<COMMON> 46,400
0
0
<OTHER-SE> 11,634,500
<TOTAL-LIABILITY-AND-EQUITY> 15,385,600
<SALES> 7,161,600
<TOTAL-REVENUES> 12,321,000
<CGS> 0
<TOTAL-COSTS> 5,865,400
<OTHER-EXPENSES> 3,967,300
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,786,600
<INCOME-TAX> 1,116,900
<INCOME-CONTINUING> 1,669,700
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,669,700
<EPS-PRIMARY> .35
<EPS-DILUTED> .35
</TABLE>
