<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For The Quarterly Period Ended: May 31, 1995
-----------------
[ ] 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: 0-14779
-------
DATA TRANSLATION, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Massachusetts 04-2532613
-------------------------------- -------------------------------------
(State or other jurisdiction (I.R.S. Employer Identification Number)
of organization or incorporation)
100 Locke Drive
Marlborough, Massachusetts
------------------------------------------------------------
(Address of principal executive offices)
01752
----------------------------------------------------------
(Zip code)
(508) 481-3700
----------------------------------------------------
(Registrant's telephone number, including area code)
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.
Common Stock, par value $.01 per share 3,018,277 shares
-------------------------------------- ---------------------------------
Class Outstanding at June 30, 1995
<PAGE>
Page 2 of 14
DATA TRANSLATION, INC. AND SUBSIDIARIES
INDEX
-----
Page No.
Financial Information: --------
Consolidated Balance Sheets as of
November 30, 1994 and May 31, 1995 ..................... 3
Consolidated Statements of Operations for the
Three and Six Months Ended May 31, 1994 and 1995 ....... 4
Consolidated Statements of Stockholders' Equity
For the Fiscal Year Ended November 30, 1994
and the Six Months Ended May 31, 1995 ................ 5
Consolidated Statements of Cash Flows for the
Six Months Ended May 31, 1994 and 1995 ................. 6
Notes to Consolidated Financial Statements ............... 7-9
Management's Discussion and Analysis of
Financial Condition and Results of Operations .......... 10-12
Part II - Other Information ................................ 13
Signatures ................................................. 14
<PAGE>
Page 3 of 14
DATA TRANSLATION, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
November 30, May 31,
1994 1995
------------ ------------
(unaudited)
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 1,592,000 $ 5,777,000
Marketable securities (Note 2) 2,487,000 6,569,000
Accounts receivable, net of reserves of
$435,000 in 1994 and $462,000 in 1995 9,045,000 10,718,000
Inventories 2,759,000 5,566,000
Prepaid expenses 647,000 1,225,000
Prepaid income taxes 61,000 65,000
------------ ------------
Total current assets 16,591,000 29,920,000
Equipment and Leasehold Improvements, net 2,367,000 2,896,000
Other Assets - net 241,000 246,000
------------ ------------
Total Assets $ 19,199,000 $ 33,062,000
============ ============
Current Liabilities:
Accounts payable $ 3,745,000 $ 3,923,000
Due to related party 546,000 -
Accrued expenses 3,922,000 7,191,000
------------ ------------
Total current liabilities 8,213,000 11,114,000
Deferred Income Taxes 2,000 3,000
Stockholders' Equity:
Preferred Stock, $.01 par value,
Authorized - 1,000,000 shares, none issued - -
Common Stock, $.01 par value,
Authorized - 10,000,000 shares, issued -
3,383,000 in 1994 and 3,450,000 in 1995 34,000 35,000
Capital in excess of par value 8,773,000 15,071,000
Retained earnings 6,894,000 8,632,000
Cumulative translation adjustment 64,000 102,000
Less treasury stock, at cost, 1,127,000
shares in 1994 and 435,000 shares in 1995 (4,781,000) (1,843,000)
Reserve for unrealized investment losses - (52,000)
------------ ------------
Total stockholders' equity 10,984,000 21,945,000
Total Liabilities and Stockholders Equity $ 19,199,000 $ 33,062,000
============ ============
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
<PAGE>
Page 4 of 14
DATA TRANSLATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended May 31, Six Months Ended May 31,
1994 1995 1994 1995
----------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Net sales:
Digital Media $ 2,840,000 $ 6,979,000 $ 4,463,000 $ 12,186,000
Data acquisition and imaging 5,601,000 5,001,000 11,545,000 10,776,000
Networking distribution 3,770,000 5,396,000 7,156,000 9,251,000
----------- ------------ ------------ -------------
Total net sales 12,211,000 17,376,000 23,164,000 32,213,000
Cost of sales 6,543,000 9,035,000 12,434,000 16,746,000
----------- ------------ ------------ -------------
Gross profit 5,668,000 8,341,000 10,730,000 15,467,000
Research and development expenses 1,793,000 1,844,000 3,490,000 3,527,000
Selling and marketing expenses 3,040,000 4,666,000 5,851,000 8,602,000
General and administrative expenses 852,000 958,000 1,657,000 1,874,000
----------- ------------ ------------ -------------
Operating income (loss) (17,000) 873,000 (268,000) 1,464,000
Interest income 49,000 217,000 84,000 359,000
Interest expense (3,000) - (4,000) (8,000)
Other income (expense) (9,000) 3,000 (36,000) (2,000)
----------- ------------ ------------ -------------
Income (loss) before provision
for income taxes 20,000 1,093,000 (224,000) 1,813,000
Tax provision 60,000 62,000 72,000 75,000
----------- ------------ ------------ -------------
Net income (loss) $ (40,000) $ 1,031,000 $ (296,000) $ 1,738,000
=========== ============ ============ =============
Net income (loss) per common share ($0.02) $0.31 ($0.14) $0.53
=========== ============ ============ =============
Weighted average number of common
shares outstanding 2,186,000 3,343,000 2,174,000 3,274,000
</TABLE>
The accompanying notes are an integral part of these unaudited
consolidated financial statements.
<PAGE>
Page 5 of 14
DATA TRANSLATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited)
<TABLE>
<CAPTION>
Common Stock
$.01 Par Value
--------------------------------
Reserve for
Capital in Cumulative unrealized Total
Issued Excess of Retained Translation Treasury investment Stockholders'
Shares Amount Par Value Earnings Adjustment Stock losses Equity
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance November 30, 1993 3,282,000 $33,000 $8,322,000 $6,574,000 ($102,000) ($4,781,000) - $10,046,000
Proceeds from stock plans 124,000 1,000 762,000 - - - - 763,000
Effect of stock-for-stock
exercise (23,000) - (311,000) - - - - (311,000)
Translation adjustment - - - - 166,000 - - 166,000
Net income - - - 320,000 - - - 320,000
-----------------------------------------------------------------------------------------------------
Balance November 30, 1994 3,383,000 $34,000 $8,773,000 $6,894,000 $64,000 ($4,781,000) - $10,984,000
Proceeds from stock plans 67,000 1,000 434,000 - - - - 435,000
Public sale of treasury
stock, net of issuance
costs of $375,000 - - 5,864,000 - - 2,938,000 - 8,802,000
Translation adjustment - - - - 38,000 - 38,000
Net income - - - 1,738,000 - - 1,738,000
Reserve for unrealized
investment losses - - - - - - (52,000) (52,000)
-----------------------------------------------------------------------------------------------------
Balance May 31, 1995 3,450,000 $35,000 $15,071,000 $8,632,000 $102,000 ($1,843,000) ($52,000) $21,945,000
=====================================================================================================
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
<PAGE>
Page 6 of 14
DATA TRANSLATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
Six Months Ended:
May 31, May 31,
1994 1995
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (296,000) $ 1,738,000
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating
activities-
Depreciation and amortization 843,000 846,000
Gain on sale of equipment - 2,000
Loss on sale of marketable securities 2,000 34,000
Change in assets and liabilities-
Accounts receivable (1,241,000) (1,673,000)
Inventories (622,000) (2,807,000)
Prepaid expenses (302,000) (578,000)
Prepaid income taxes 159,000 (4,000)
Accounts payable 506,000 178,000
Due to related party - (546,000)
Accrued expenses 598,000 3,269,000
---------- ----------
Net cash provided by (used in)
operating activities $ (353,000) $ 459,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment and leasehold
improvments (386,000) (1,295,000)
Proceeds from sale of equipment 1,000 5,000
Increase in other assets (75,000) (75,000)
Purchases of marketable securities (695,000) (7,898,000)
Proceeds from sales of marketable
securities 771,000 3,730,000
---------- ----------
Net cash used in investing activities $ (384,000) $(5,533,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from stock plans 249,000 435,000
Net proceeds from public sale of
treasury stock - 8,802,000
---------- ----------
Net cash provided by financing
activities $ 249,000 $ 9,237,000
EXCHANGE RATE EFFECTS 77,000 22,000
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS $ (411,000) $ 4,185,000
CASH AND CASH EQUIVALENTS, beginning of period 1,528,000 1,592,000
CASH AND CASH EQUIVALENTS, end of period $ 1,117,000 $ 5,777,000
========== ==========
OTHER TRANSACTIONS NOT PROVIDING (USING) CASH
Decrease in marketable securities - 52,000
Increase in reserve for unrealized
investment loss - (52,000)
========== ==========
$ - $ -
========== ==========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes $ 3,000 $ 21,000
========== ==========
Cash paid for interest $ 1,000 $ 8,000
========== ==========
</TABLE>
The accompanying notes are an integral part of these
consolidated financial statements.
<PAGE>
Page 7 of 14
DATA TRANSLATION, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. Basis of Presentation
In the opinion of management, these unaudited consolidated
financial statements and disclosures reflect all adjustments necessary
for fair presentation. The results of operations for the interim periods
are not necessarily indicative of the results to be expected for the
full year.
Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to the
rules and regulations of the Securities and Exchange Commission. It is
suggested that these consolidated condensed financial statements be
read in conjunction with the consolidated financial statements and the
notes thereto included in the Company's latest audited financial
statements, which are contained in the Company's 1994 Annual Report
on Form 10-K, filed with the Securities and Exchange Commission on
February 28, 1995.
2. Cash Equivalents and Marketable Securities
Cash equivalents are carried at cost which approximates
market value and have maturities of less than three months. Cash
equivalents include money market accounts and U.S. Treasury bills.
Marketable securities held as of May 31, 1995, consist of
the following:
(TABLE)
(CAPTION)
Maturity Market Value
---------------------------------
(S) (C) (C)
Investments held to maturity:
U.S. Treasury Bills less than 1 year $4,126,000
Investments available for sale:
U.S. Treasury Notes 1 - 5 years 1,292,000
U.S. Agency Bonds 1 - 5 years 546,000
U.S. Agency Bonds 6 - 10 years 287,000
--------
Total U.S. Agency Bonds 833,000
Utility Bonds 1 - 5 years 296,000
U.S. Agency Passthroughs 6 - 10 years 10,000
Corporate Obligations 10+ years 12,000
--------
Total Investments Available for Sale $2,443,000
=========
Marketable securities had a cost of $2,600,000 and $6,621,000
at November 30, 1994 and February 28, 1995, respectively, and a market
value of $2,487,000 and $6,569,000, respectively. To reduce the carrying
amount of the portfolio to market value, a valuation allowance in the
amount of $113,000 and $52,000 for November 30, 1994 and May 31, 1995
was established with a corresponding charge to net income on November
30, 1994 and as a separate component of shareholders' equity on May 31,
1995 due to the Company's adoption of the provisions of Statement of
Financial Accounting Standard (SFAS) No. 115, "Accounting of Certain
Investments in Debt and Equity Securities" as of December 1, 1994.
<PAGE>
Page 8 of 14
DATA TRANSLATION, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
3. Inventories
Inventories are stated at the lower of first-in, first-out
(FIFO) cost or market and consist of the following:
(TABLE)
(CAPTION)
November 30, May 31,
1994 1995
----------- -----------
(S) (C) (C)
Raw materials $ 617,000 $ 1,546,000
Work-in-process 434,000 825,000
Finished goods 1,708,000 3,195,000
--------- ---------
$ 2,759,000 $ 5,566,000
========= =========
(/TABLE)
Work-in-process and finished goods inventories include material,
labor and manufacturing overhead. Management performs periodic
reviews of inventory and disposes of items not required by their
manufacturing plan.
4. Net Income (Loss) Per Common Share
Net income (loss) per common share is based upon dividing net
income (loss) by the weighted average number of common shares out-
standing during each period. Common equivalent shares have been
included for any period where their effect is dilutive. Fully diluted
net income (loss) per common share has not been separately presented,
as the amounts would not be materially different from the amounts
presented.
5. Contingencies
On June 7, 1995, a lawsuit was filed against the Company by Avid
Technology, Inc., in the United States District Court for the District
of Massachusetts. The complaint generally alleges patent infringement by
the Company arising from the manufacture, sale, and use of the Company's
Media 100 product. The complaint includes requests for injunctive
relief, treble damages, interest, costs, and fees. The Company intends
to vigorously defend the lawsuit.
From time to time the Company is involved in disputes and/or
litigation encountered in its normal course of business. The Company
does not believe that the ultimate impact of the resolution of any
outstanding matters will have a material effect on the Company's
financial condition or results of operations.
6. Capitalized Software Development Costs
The Company capitalizes certain computer software development
costs. Such costs, net of accumulated amortization, were approximately
$215,000 and $220,000 as of November 30, 1994 and May 31, 1995,
respectively and are included in other assets. These costs are
amortized on a straight-line basis over two years which approximates
the life of the product. Amortization expense, included in cost of
goods sold, was approximately $45,000 for the three months ended
May 31, 1994 and 1995, respectively. During the six months ended
May 31, 1994 and 1995, amortization expense was $90,000 and $70,000,
respectively.
<PAGE>
Page 9 of 14
DATA TRANSLATION, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
7. Income Taxes
In February 1992, the Financial Accounting Standards Board
issued SFAS No. 109, "Accounting for Income Taxes." The Company
adopted the provisions of SFAS No. 109 on December 1, 1993. There was
no effect on net income of adopting the provisions of SFAS No. 109.
The tax provision of $75,000 for the first six months of
fiscal 1995 compares to a tax provision of $72,000 in fiscal 1994.
Any potential tax provision resulting from operating income by the
Company's domestic operations has been offset by net operating loss
carryforwards.
The components of the net deferred tax amount recognized in
the accompanying balance sheets are:
<TABLE>
<CAPTION>
November 30, May 31,
1994 1995
------------ -------------
<S> <C> <C>
Deferred tax assets $ 3,563,000 $ 2,995,000
Deferred tax liabilities (271,000) (275,000)
Valuation allowance (3,294,000) (2,723,000)
---------- ----------
$ (2,000) $ (3,000)
========== ==========
</TABLE>
The approximate tax effect of each type of temporary difference
and carryforward before allocation of the valuation allowance is:
<TABLE>
<S> <C> <C>
Net operating losses $ 1,638,000 $ 856,000
Other temporary differences 989,000 1,099,000
Alternative minimum tax credits 50,000 50,000
General business credits 615,000 715,000
---------- ----------
$ 3,292,000 $ 2,720,000
========== ==========
</TABLE>
The tax credit and net operating loss carryforwards expire
at various dates through 2008. Due to the uncertainty surrounding
the timing of realizing the benefits of its favorable tax attributes
in future tax returns, the Company has placed a valuation allowance
against its otherwise recognizable net deferred tax assets.
The United States Tax Reform Act of 1986 contains provisions
which may limit the net operating loss and tax credit carryforwards
available to be used in any given year in the event of significant
changes in ownership, as defined.
<PAGE>
Page 10 of 14
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The following table shows certain consolidated statement
of operations data as a percentage of total net sales.
<TABLE>
<CAPTION>
Three Months Six Months
Ended Ended
May 31, May 31,
---------------- ---------------
1994 1995 1994 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales:
Digital media............... 23.3% 40.2% 19.3% 37.8%
Data acquisition and imaging 45.9 28.8 49.8 33.5
Networking distribution..... 30.8 31.0 30.9 28.7
----- ----- ----- -----
Total net sales................. 100.0 100.0 100.0 100.0
Gross margin.................... 46.4 48.0 46.3 48.0
Research and development........ 14.7 10.6 15.1 11.0
Selling and marketing........... 24.9 26.9 25.3 26.7
General and administrative...... 6.9 5.5 7.1 5.8
----- ----- ----- -----
Income (loss) from operations... (0.1) 5.0 (1.2) 4.5
Other income, net............... 0.3 1.3 0.2 1.1
Provision for taxes............. 0.5 0.4 0.3 0.2
----- ----- ----- -----
Net income (loss)............... (0.3) 5.9 (1.3) 5.4
===== ===== ===== =====
</TABLE>
Comparison of Second Fiscal Quarter of 1995 to
Second Fiscal Quarter of 1994:
Total net sales for the fiscal quarter ended May 31, 1995 were
$17,376,000, which was an increase of 42.3% or $5,165,000 from the same
period a year ago. This increase was primarily a result of higher net
sales from the Company's digital media product, Media 100(R), which
accounted for $6,979,000 or 40.2% of the Company's total net sales
compared to $2,840,000 or 23.3% in the same period a year ago. This
marks the eighth consecutive quarter of increased sales from Media 100
and includes initial shipments to Grass Valley Group which is selling
Media 100 as part of an integrated system. Networking distribution sales
increased $1,626,000 or 43.1% from the comparable quarter in 1994 to
$5,396,000 or 31.0% of the Company's total net sales. The increase in
networking products represents improved performance as well as a steady
growth in demand. Net sales from the Company's data acquisition and
imaging products were down 10.7% or $600,000 compared to the second
quarter of fiscal 1994 which reflects a shift in sales toward new, lower
priced hardware products.
While total net sales increased 42.3%, cost of sales increased
by 38.1% increasing the gross margin to 48.0% of total net sales
compared to 46.4% in the comparable quarter of the prior year. The
increase in gross margin was primarily a result of higher gross margins
on the Company's own manufactured product sales due to the higher
utilization of the Company's manufacturing capacity as well as a
favorable product mix.
<PAGE>
Page 11 of 14
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(CONTINUED)
Comparison of Second Fiscal Quarter of 1995 to
Second Fiscal Quarter of 1994 (continued):
The income from operations for the second fiscal quarter of 1995
was $873,000, compared to a loss of $17,000 in the comparable quarter of
the prior year. The operating income reflects the higher net sales and
gross margins as mentioned above, offset by an increase in operating
expenses of $1,783,000. Selling and marketing expenses increased by
$1,626,000 largely due to the additional costs associated with the sales
and promotion of Media 100. General and administrative expenses, as well
as, research and development expenses were up slightly from the
comparable quarter.
The tax provision of $62,000 for the second fiscal quarter of
1995 compares to a tax provision of $60,000 in fiscal 1994 which was
largely due to the taxable operations in the United Kingdom. Any
potential tax provision resulting from operating income by the Company's
domestic operations has been offset by net operating loss carryforwards.
Net income for the fiscal quarter ended May 31, 1995 was
$1,031,000 compared to a net loss of $40,000 for the same period in
1994. Net income for the period in 1995 included $217,000 of interest
income earned from the proceeds of the earlier public offering. As a
result, net income per share was $0.31 compared to a net loss per share
of $0.02 for the second quarter of 1994.
Comparison of First Half of Fiscal 1995 to
First Half of Fiscal 1994:
Net sales for the six month period ended May 31, 1995 were
$32,213,000, which was an increase of 39.1% or $9,049,000 for the same
period a year ago. The increase was primarily a result of higher net
sales from Media 100 which has accounted for $12,186,000 or 37.8% of the
Company's total net sales compared to $4,463,000 or 19.3% in the same
period a year ago. During the first six months of fiscal 1995,
networking distribution sales have increased $2,095,000 or 29.3% from
the comparable period in fiscal 1994. The increases in net sales have
been offset by lower data acquisition and imaging net sales of $769,000
or 6.7% from the first six months of fiscal 1994 reflecting a shift in
sales toward new, lower priced hardware products.
Gross margins for the first six months of fiscal 1995 were 48.0%
compared to 46.3% in the comparable period of a year ago. This increase
reflects higher margins on the Company's own manufactured products as
mentioned previously. To a lesser extent, networking product sales
constituted a lesser percentage of the Company's total net sales,
thereby increasing gross margins since the networking products carry a
significantly lower gross margin than the Company's own manufactured
products.
<PAGE>
Page 12 of 14
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(CONTINUED)
Comparison of First Half of Fiscal 1995 to
First Half of Fiscal 1994 (continued):
Income from operations for the first half of fiscal 1995 was
$1,464,000 compared to a loss on operations of $268,000 in the same
period of a year ago. The operating income reflects the higher net sales
and gross margins, partially offset by higher operating expenses of
$3,005,000. Selling and marketing expenses increased by $2,751,000
reflecting the additional costs associated with the sales and promotion
of Media 100.
The tax provision of $75,000 for the first six months of fiscal
1995 compares to a $72,000 tax provision for the same period of a year
ago. These tax provisions are a result of profitable operations in the
United Kingdom. Any potential tax provision resulting from profitable
operations in the Company's domestic operations has been offset by net
operating loss carryforwards.
Net income for the first half of fiscal 1995 was $1,738,000
compared to a net loss of $296,000 for the same period in 1994. Net
income for the period in 1995 included $274,000 of interest income
earned from the proceeds of the earlier public offering. As a result,
net income per share was $0.52 compared to a net loss per share of $0.14
in the first half of 1994.
Liquidity and Capital Resources:
During the first six months of fiscal 1995, the Company's cash
and cash equivalents balance increased by $4,185,000. This increase was
primarily a result of a public stock offering generating net proceeds of
approximately $8,802,000. The net proceeds were invested in U.S.
Treasury bills with maturities ranging from three months to less than
one year. Operations provided $459,000 reflecting the net income of
$1,738,000 offset by higher working capital requirements for the
Company's growing operations.
At the end of May, the Company had available an unused line of
credit in the United Kingdom equivalent to approximately $600,000.
The Company plans to fund and support a business plan which
includes continuing investment in research and development for both the
digital media and other product areas. The Company believes that the net
proceeds from its recent stock offering, together with cash generated
from future operations, will be sufficient to meet the Company's cash
requirements for the foreseeable future.
<PAGE>
Page 13 of 14
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
On June 7, 1995, a lawsuit was filed against the Company by Avid
Technology, Inc., in the United States District Court for the District
of Massachusetts. The complaint generally alleges patent infringement
by the Company arising from the manufacture, sale, and use of the
Company's Media 100 product. The complaint includes requests for
injunctive relief, treble damages, interest, costs, and fees. The
Company intends to vigorously defend the lawsuit.
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
The Company held a special meeting in lieu of annual meeting of
shareholders on April 19, 1995, at which the shareholders re-elected
the incumbent Directors by the number of shares of Common Stock voted
as noted below:
Proposal
--------
Nominees for the office of Director:
<TABLE>
<CAPTION>
Number of Shares
----------------
Voted For Withheld
--------- --------
<S> <C> <C>
a) Alfred A. Molinari, Jr. 2,739,666 2,323
b) R. Bradford Malt 2,739,466 2,523
c) Paul J. Severino 2,740,051 1,938
</TABLE>
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
a) Exhibits
Exhibit
Number Description
------- ------------------------
27 Financial Data Schedule
b) Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter
for which this report is filed.
<PAGE>
Page 14 of 14
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.
Data Translation, Inc.
Date: July 14, 1995 By: /s/ Ellen W. Harpin
--------------------------------
Ellen W. Harpin
Vice President & Treasurer
(Principal Financial Officer)
Date: July 14, 1995 By: /s/ Gary B. Godin
--------------------------------
Gary B. Godin
Chief Accounting Officer &
Corporate Controller
<PAGE>
Exhibits
Exhibits
Number Description Page
-------- --------------------------- ----
27 Financial Data Schedule
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-START> DEC-01-1994
<PERIOD-END> MAY-31-1995
<CASH> 5,777,000
<SECURITIES> 6,569,000
<RECEIVABLES> 10,718,000
<ALLOWANCES> 462,000
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0
0
<OTHER-SE> 21,910,000
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<EPS-PRIMARY> .53
<EPS-DILUTED> .53
</TABLE>
