<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: February 29, 1996
-----------------
[ ] 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 of (I.R.S. Employer
organization or incorporation) Identification Number)
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 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 7,868,515 shares
- -------------------------------------- ----------------------------------
Class Outstanding at March 31,1996
<PAGE>
Page 2 of 13
DATA TRANSLATION, INC. AND SUBSIDIARIES
INDEX
-----
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
Financial Information:
Consolidated Balance Sheets as of
February 29, 1996 and November 30, 1995...................................... 3
Consolidated Statements of Operations for the
Three Months Ended February 29, 1996 and February 28, 1995 .................. 4
Consolidated Statements of Stockholders' Equity
For the Fiscal Year Ended November 30, 1995
and the Three Months Ended February 29, 1996 ............................... 5
Consolidated Statements of Cash Flows for the Three Months
Ended February 29, 1996 and February 28, 1995 ............................... 6
Notes to Consolidated Financial Statements .................................... 7-9
Management's Discussion and Analysis of
Financial Condition and Results of Operations ............................... 10-11
Part II - Other Information ..................................................... 12
Signatures ...................................................................... 13
</TABLE>
<PAGE>
Page 3 of 13
DATA TRANSLATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
February 29, November 30,
1996 1995
-------------- ---------------
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 11,730,000 $ 28,602,000
Marketable securities (Note 2) 26,177,000 6,559,000
Accounts receivable, net of reserves of
$500,000 in 1996 and $505,000 in 1995 16,334,000 15,057,000
Inventories 7,077,000 5,532,000
Prepaid expenses 1,656,000 1,060,000
Prepaid income taxes 88,000 60,000
-------------- ---------------
Total current assets 63,062,000 56,870,000
Equipment and Leasehold Improvements, net 4,495,000 3,897,000
Other Assets - net 221,000 217,000
-------------- ---------------
Total Assets $ 67,778,000 $ 60,984,000
============== ===============
Current Liabilities:
Accounts payable $ 6,765,000 $ 5,133,000
Due to related party 273,000 -
Borrowings from bank 906,000 696,000
Accrued expenses 7,288,000 7,233,000
Deferred revenue 844,000 1,010,000
-------------- ---------------
Total current liabilities 16,076,000 14,072,000
Deferred Income Taxes 3,000 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 -
7,863,795 in 1996 and 8,491,208 in 1995 79,000 85,000
Capital in excess of par value 38,868,000 37,062,000
Retained earnings 12,815,000 11,665,000
Cumulative translation adjustment 47,000 (5,000)
Treasury stock, at cost, 869,096
shares in 1995 - (1,843,000)
Unrealized holding loss on available for
sale securities (110,000) (55,000)
-------------- ---------------
Total stockholders' equity 51,699,000 46,909,000
-------------- ---------------
Total Liabilities and Stockholders' Equity $ 67,778,000 $ 60,984,000
============== ===============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
Page 4 of 13
DATA TRANSLATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended
February 29, February 28,
1996 1995
------------- -------------
<S> <C> <C>
Net sales:
Digital media $ 10,690,000 $ 5,207,000
Data acquisition and imaging 5,694,000 5,775,000
Networking distribution 7,392,000 3,855,000
------------- -------------
Total net sales 23,776,000 14,837,000
Cost of sales 12,818,000 7,711,000
------------- -------------
Gross profit 10,958,000 7,126,000
Research and development expenses 2,211,000 1,683,000
Selling and marketing expenses 5,602,000 3,936,000
General and administrative expenses 1,849,000 916,000
------------- -------------
Operating income 1,296,000 591,000
Interest income 526,000 143,000
Interest expense (36,000) (8,000)
Other expense, net (153,000) (5,000)
------------- -------------
Income before tax provision 1,633,000 721,000
Tax provision 483,000 14,000
------------- -------------
Net income $ 1,150,000 $ 707,000
============= =============
Net income per common and
common equivalent share $ 0.14 $ 0.11
============= =============
Weighted average number of common
and common equivalent shares outstanding 8,406,000 6,422,000
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
Page 5 of 13
DATA TRANSLATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Common Stock
$.01 Par Value
-------------------
Unrealized
Holding Loss
Capital in Cumulative on Available Total
Issued Excess of Retained Translation Treasury for Sale Stockholders'
Shares Amount Par Value Earnings Adjustment Stock Securities Equity
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance, November 30, 1994 6,765,472 $68,000 $8,739,000 $6,894,000 $64,000 ($4,781,000) - $10,984,000
Proceeds from stock plans 325,736 3,000 1,166,000 - - - - 1,169,000
Public sale of treasury stock, net
of issuance costs of $375,000 - - 5,864,000 - - 2,938,000 - 8,802,000
Public sale of common stock, net
of issuance costs of $400,000 1,400,000 14,000 21,293,000 - - - - 21,307,000
Translation adjustment - - - - (69,000) - - (69,000)
Net income - - - 4,771,000 - - - 4,771,000
Reserve for unrealized
investment losses - - - - - - (55,000) (55,000)
-------------------------------------------------------------------------------------------------
Balance, November 30, 1995 8,491,208 $85,000 $37,062,000 $11,665,000 ($5,000) ($1,843,000) ($55,000) $46,909,000
Proceeds from stock plans 18,183 1,000 169,000 - - - - 170,000
Retirement of treasury stock (869,096) (9,000) (1,834,000) - - 1,843,000 - -
Public sale of common stock 223,500 2,000 3,471,000 - - - - 3,473,000
Translation adjustment - - - - 52,000 - - 52,000
Net income - - - 1,150,000 - - - 1,150,000
Reserve for unrealized
investment losses - - - - - - (55,000) (55,000)
-------------------------------------------------------------------------------------------------
Balance, February 29, 1996 7,863,795 $79,000 $38,868,000 $12,815,000 $47,000 - ($110,000) $51,699,000
=================================================================================================
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
Page 6 of 13
DATA TRANSLATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended:
February 29, February 28,
1996 1995
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,150,000 $ 707,000
Adjustments to reconcile net income to
net cash used in operating activities-
Depreciation and amortization 436,000 418,000
Loss (gain) on sale of equipment 1,000 (2,000)
Loss on sale of marketable securities 1,000 -
Change in assets and liabilities-
Accounts receivable (1,277,000) (630,000)
Inventories (1,545,000) (1,478,000)
Prepaid expenses (596,000) (363,000)
Prepaid income taxes (28,000) -
Accounts payable 1,632,000 757,000
Due to related party 273,000 (273,000)
Accrued expenses 55,000 320,000
Deferred revenue (166,000) 90,000
------------- -------------
Net cash used in operating activities $ (64,000) $ (454,000)
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment and leasehold improvements (1,037,000) (340,000)
Proceeds from sale of equipment - 5,000
Increase in other assets (4,000) (45,000)
Purchases of marketable securities (24,665,000) (7,345,000)
Proceeds from sales of marketable securities 4,991,000 8,000
------------- -------------
Net cash used in investing activities $ (20,715,000) $ (7,717,000)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings from bank 210,000 -
Proceeds from stock plans 170,000 256,000
Net proceeds from public sale of treasury stock - 8,802,000
Net proceeds from public sale of common stock 3,473,000 -
------------- -------------
Net cash provided by financing activities $ 3,853,000 $ 9,058,000
------------- -------------
EXCHANGE RATE EFFECTS 54,000 38,000
------------- -------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ (16,872,000) $ 925,000
CASH AND CASH EQUIVALENTS, beginning of period 28,602,000 1,592,000
------------- -------------
CASH AND CASH EQUIVALENTS, end of period $ 11,730,000 $ 2,517,000
============= =============
OTHER TRANSACTIONS NOT PROVIDING (USING) CASH
Decrease in value of marketable securities 55,000 77,000
Increase in unrealized holding loss on
available for sale securities (55,000) (77,000)
------------- -------------
$ - $ -
============= =============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes $ - $ 1,000
============= =============
Cash paid for interest $ 36,000 $ 8,000
============= =============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE>
Page 7 of 13
DATA TRANSLATION, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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. These consolidated condensed
financial statements should 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 1995 Annual
Report on Form 10-K, filed with the Securities and Exchange Commission on
February 26, 1996.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
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 February 29, 1996, consist of the
following:
<TABLE>
<CAPTION>
Maturity Market Value
---------------------------------
<S> <C> <C>
Investments available for sale:
U.S. Treasury Bills 1 - 5 years $ 8,198,000
U.S. Agency Bonds 1 - 5 years 551,000
U.S. Agency Bonds 6 - 10 years 306,000
----------
Total U.S. Agency Bonds 857,000
Utility Bonds 1 - 5 years 99,000
Utility Bonds 6 - 10 years 202,000
----------
Total Utility Bonds 301,000
Municipal Bonds less than 1 year 1,000,000
Municipal Bonds 1 - 5 years 2,004,000
Municipal Bonds 10+ years 2,502,000
----------
Total Municipal Bonds 5,506,000
Corporate Obligations 1 - 5 years 4,562,000
Corporate Obligations 5 - 10 years 3,766,000
Corporate Obligations 10+ years 2,987,000
----------
Total Corporate Obligations 11,315,000
----------
Total investments available for sale $ 26,177,000
----------
</TABLE>
Marketable securities had a cost of $26,287,000 and $6,614,000 at
February 29, 1996 and November 30, 1995, respectively, and a market value of
$26,177,000 and $6,559,000, respectively. To reduce the carrying amount of the
portfolio to market value, a valuation allowance has been reflected as a
separate component of stockholders' equity pursuant to the provisions of
Statement of Financial Accounting Standard No. 115.
<PAGE>
Page 8 of 13
DATA TRANSLATION, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. Inventories
Inventories are stated at the lower of first-in, first-out (FIFO) cost
or market and consist of the following:
<TABLE>
<CAPTION>
February 29, November 30,
1996 1995
---- ----
<S> <C> <C>
Raw material $ 1,824,000 $ 1,763,000
Work-in-process 576,000 383,000
Finished goods 4,677,000 3,386,000
--------- ---------
$ 7,077,000 $ 5,532,000
--------- ---------
</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 and marketing plan.
4. Net Income Per Common Share
Net income per common share is determined by dividing net income by
the weighted average number of common and common equivalent shares outstanding
during each period. Common equivalent shares have been calculated in accordance
with the treasury stock method and are included for all periods where their
effect is dilutive. Fully diluted net income per share has not been separately
presented, as the amounts would not be materially different from net income per
share.
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. In July, 1995 the Company filed an Answer and
Counterclaim denying any infringement and asserting that the patent is invalid.
Discovery by the parties is currently underway. The Company intends to
vigorously defend the lawsuit. In addition, Avid Technology, Inc. is seeking
reissuance of the patent for claims broader than in the existing patent. These
proceedings also remain pending. On April 5, 1996, the Company asserted by
motion for leave to file a supplemental counterclaim in the lawsuit against Avid
Technology, Inc. for infringement of a newly-issued Data Translation patent
relating to the Company's Media 100 digital video system. The Company contends
that the products infringing this newly issued patent include the recently-
released versions of Avid's Media Composer 900, 1000, 4000 and 8000 products, as
shipped or upgraded with the Avid Broadcast Video Board. There can be no
assurance that the Company will prevail in the litigation, or that any of the
effects of the litigation of the claims asserted against it, whether or not
successful, will not be material.
From time to time the Company is involved in other disputes and/or
litigation encountered in its normal course of business. The Company does not
believe that the ultimate impact of the resolution of such other 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 $195,000 and
$190,000 as of February 29, 1996 and November 30, 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 $30,000 and $25,000 for the
three months ended February 29, 1996 and February 28, 1995, respectively.
<PAGE>
Page 9 of 13
DATA TRANSLATION, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
7. Income Taxes
Based on the anticipated taxable income for fiscal 1996, the Company
has provided for income taxes using an effective tax rate of approximately 30%
taking into consideration full utilization of its remaining net operating loss
carryforwards and tax credits. During fiscal 1995, substantially all of the
potential tax provision resulting from profitable operations in the Company's
domestic operations were offset by net operating loss carryforwards.
8. Recapitalization
On June 28, 1995, the Board of Directors approved a 2 for 1 stock
split effected in the form of a dividend for all shareholders of record as of
July 17, 1995 which became effective on July 31, 1995. All share and per share
data included in these financial statements have been retroactively restated to
reflect the stock split.
<PAGE>
Page 10 of 13
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 Ended
February 29, February 28,
1996 1995
---- ----
<S> <C> <C>
Net sales:
Digital media......................................... 45.0% 35.1%
Data acquisition and imaging.......................... 23.9 38.9
Networking distribution............................... 31.1 26.0
------ ------
Total net sales..................................... 100.0 100.0
Gross margin........................................... 46.1 48.0
Research and development expenses...................... 9.3 11.3
Selling and marketing expenses......................... 23.6 26.5
General and administrative expenses.................... 7.8 6.2
------ ------
Income from operations................................. 5.4 4.0
Interest income and other, net......................... 1.4 0.9
Provision for income taxes............................. 2.0 0.1
------ ------
Net income............................................. 4.8% 4.8%
------ ------
</TABLE>
Comparison of First Fiscal Quarter of 1996 to First Fiscal Quarter of 1995:
Total net sales for the fiscal quarter ended February 29, 1996 were
$23,776,000, an increase of 60.3% or $8,939,000 from the same period a year
ago. The increase was primarily a result of higher net sales from the Company's
digital media product, Media 100(R), which increased 105.3% to $10,690,000 and
accounted for 45.0% of the Company's total net sales compared to $5,207,000 or
35.1% in the same period a year ago. Networking distribution sales increased
$3,573,000 or 91.8% from the comparable quarter in 1995 to $7,392,000 or 31.1%
of the Company's total net sales. Net sales from the Company's data acquisition
and imaging products declined slightly to $5,694,000 or 23.9% of the Company's
total net sales compared to $5,775,000 or 38.9% for the comparable quarter in
fiscal 1995.
Gross margin for the fiscal quarter ended February 29, 1996 was 46.1%,
compared to 48.0% in the comparable quarter of the prior year. The decrease in
gross margin was primarily a result of lower gross margins on networking
distribution sales as compared to the previous year and, to a lesser extent,
the increase in networking distribution sales as a percentage of total net
sales as the margins on networking distribution sales are much lower than the
Company's own manufactured product sales.
Income from operations for the first fiscal quarter of 1996 was $1,296,000,
compared to $591,000 in the comparable quarter of the prior year. The operating
income reflects the higher net sales, partially offset by an increase in
operating expenses of $3,127,000. Selling and marketing expenses increased by
$1,666,000 largely due to the additional cost associated with the increased
sales and promotion of the digital media products, but decreased as a
percentage of total net sales to 23.6% from 26.5% in the comparable period.
General and administrative expenses increased to $1,849,000, or 7.8% of total
net sales up from $916,000, or 6.2% of total net sales in the comparable
quarter. The increase was primarily due to higher fees for professional
services which includes legal fees associated with the defense of the pending
patent lawsuit, consultation for its proxy statement and other corporate
matters, as well as higher personnel levels. Research and development expenses
were $2,211,000, or 9.3% of total net sales compared to $1,683,000, or 11.3% of
total net sales in the first quarter of fiscal 1995. The increase in research
and development expenses was a result of the Company's continued investment in
product development.
<PAGE>
Page 11 of 13
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(CONTINUED)
Comparison of First Fiscal Quarter of 1996 to First Fiscal Quarter of 1995
(continued):
Interest income for the fiscal quarter ended February 29, 1996 was $526,000
compared to $143,000 in the comparable quarter reflecting an increase in cash
balances including cash equivalents and marketable securities on hand during
the quarter.
An effective tax rate of approximately 30% provided $483,000 for the first
fiscal quarter of 1996 compared to a tax provision of $14,000 in the comparable
period of fiscal 1995. The higher effective tax rate in fiscal 1996 is due to
decreases in net operating loss carryforwards available to be used against
taxable income. Any potential tax provision resulting from operating income by
the Company's domestic operations during the first quarter of 1995 was offset
by net operating loss carryforwards.
Net income for the fiscal quarter ended February 29, 1996 was $1,150,000 or
$0.14 per share, compared to $707,000 or $0.11 per share for the same period in
1995.
Liquidity and Capital Resources
During the first three months of fiscal 1996, the Company increased its
working capital to $46,986,000 from $42,798,000 on November 30, 1995. The
increase in working capital was primarily a result of $3,473,000 of cash
provided from an over-allotment option exercised by the Company's underwriters
as part of the most recent public stock offering. Included in working capital
on February 29, 1996 was $11,730,000 of cash and cash equivalents as well as
$26,177,000 of marketable securities as described in Note 2 to these
Consolidated Financial Statements. Net cash used by operations was $64,000
reflecting net income of $1,150,000, offset by higher working capital
requirements for the Company's growing operations.
As of February 29, 1996, the Company's United Kingdom subsidiary, Data
Translation Networking Limited, had a bank overdraft facility of approximately
$1,985,000 of which $906,000 was outstanding. The facility is secured by the
subsidiary's accounts receivable balance and guaranteed by the Company.
Although Management believes the Company's capital needs for 1996 will be
met through its credit facilities and cash flow from operations, the Company may
need to raise additional capital from equity and/or debt sources in order to
finance its anticipated growth and capital requirements beyond 1996, and there
can be no assurance that the Company will be able to raise beyond such capital
on favorable terms or at all.
<PAGE>
Page 12 of 13
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. In July, 1995 the Company filed an Answer and
Counterclaim denying any infringement and asserting that the patent is invalid.
Discovery by the parties is currently underway. The Company intends to
vigorously defend the lawsuit. In addition, Avid Technology, Inc. is seeking
reissuance of the patent for claims broader than in the existing patent. These
proceedings also remain pending. On April 5, 1996, the Company asserted by
motion for leave to file a supplemental counterclaim in the lawsuit against Avid
Technology, Inc. for infringement of a newly-issued Data Translation patent
relating to the Company's Media 100 digital video system. The Company contends
that the products infringing this newly issued patent include the recently-
released versions of Avid's Media Composer 900, 1000, 4000 and 8000 products, as
shipped or upgraded with the Avid Broadcast Video Board. There can be no
assurance that the Company will prevail in the litigation, or that any of the
effects of the litigation of the claims asserted against it, whether or not
successful, will not be material.
From time to time, the Company is involved in other disputes and/or
litigation encountered in its normal course of business. The Company does not
believe that the ultimate impact of the resolution of such other outstanding
matters will have a material effect on the Company's financial condition or
results of operations.
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 13 of 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.
Data Translation, Inc.
Date: April 12, 1996 By: /s/ Peter J. Rice
------------------------
Peter J. Rice
Vice President & Treasurer
(Chief Financial Officer)
Date: April 12, 1996 By: /s/ Gary B. Godin
------------------------
Gary B. Godin
Chief Accounting Officer and
Corporate Controller
<PAGE>
Exhibits
Exhibits
Number Description Page
-------- ----------------------- ----
27 Financial Data Schedule
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> FEB-29-1996
<CASH> 11,730,000
<SECURITIES> 26,177,000
<RECEIVABLES> 16,334,000
<ALLOWANCES> 500,000
<INVENTORY> 7,077,000
<CURRENT-ASSETS> 63,062,000
<PP&E> 23,180,000
<DEPRECIATION> 18,685,000
<TOTAL-ASSETS> 67,778,000
<CURRENT-LIABILITIES> 16,076,000
<BONDS> 0
79,000
0
<COMMON> 0
<OTHER-SE> 51,620,000
<TOTAL-LIABILITY-AND-EQUITY> 67,778,000
<SALES> 23,776,000
<TOTAL-REVENUES> 23,776,000
<CGS> 12,818,000
<TOTAL-COSTS> 12,818,000
<OTHER-EXPENSES> 9,662,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 36,000
<INCOME-PRETAX> 1,633,000
<INCOME-TAX> 483,000
<INCOME-CONTINUING> 1,150,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,150,000
<EPS-PRIMARY> .14
<EPS-DILUTED> .14
</TABLE>
