**This conforming paper format document is being submitted pursuant to rule
901(d) of regulation S-T.
SECURITIES AND EXCHANGE COMMISSION Total Pages- 16
WASHINGTON, D.C. 20549 Exhibit Index- 11
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 September 30, 1994
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 0-12042
BIOGEN, INC.
(Exact name of registrant as specified in its charter)
Massachusetts 04-3002117
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
14 Cambridge Center, Cambridge, MA 02142
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (617) 679-2000
Former name, former address and former fiscal year, if changed since
last report: Not Applicable
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
Number of shares outstanding of each of the issuer's classes of common
stock, as of November 3, 1994:
Common Stock, par value $0.01 33,097,951
(Title of each class) (Number of Shares)
<PAGE>
B I O G E N , I N C . Page 2
INDEX
Page No.
PART I - FINANCIAL INFORMATION
Condensed Consolidated Balance Sheets -
September 30, 1994 and December 31, 1993. . . . . . . . . . . . .3
Condensed Consolidated Statements of Income -
Three months and nine months ended September 30, 1994 and 1993. .4
Condensed Consolidated Statements of Cash Flows -
Nine months ended September 30, 1994 and 1993 . . . . . . . . . .5
Notes to Condensed Consolidated Financial Statements. . . . . . . .6
Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . . . . . . .7
Report of Independent Accountants . . . . . . . . . . . . . . . . 10
PART II - OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . 11
* * * * * * * * * * * * * * * * * *
Note concerning trademarks: Certain names mentioned in this report are
trademarks owned by Biogen, Inc. or its
affiliates or licensees. Hirulog(TM) is a
trademark of Biogen, Inc.
<PAGE>
BIOGEN, INC. AND SUBSIDIARIES Page 3
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Sep.30,1994 Dec. 31,1993
(unaudited)
ASSETS
Current assets
Cash and cash equivalents. . . . . . . . . $ 65,510 $ 74,546
Marketable securities. . . . . . . . . . . 226,628 195,805
Accounts receivable. . . . . . . . . . . . 9,870 31,695
Other. . . . . . . . . . . . . . . . . . . 7,830 7,378
-------- --------
Total current assets . . . . . . . . . . . 309,838 309,424
-------- --------
Property and equipment
Total cost . . . . . . . . . . . . . . . . 89,590 64,111
Less accumulated depreciation. . . . . . . 29,699 25,611
-------- --------
Property and equipment, net. . . . . . . . 59,891 38,500
-------- --------
Other assets
Patents, net . . . . . . . . . . . . . . . 7,582 7,164
Other. . . . . . . . . . . . . . . . . . . 1,949 1,862
-------- --------
Total other assets . . . . . . . . . . . . 9,531 9,026
-------- --------
$379,260 $356,950
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable . . . . . . . . . . . . . $ 4,995 $ 2,916
Other current liabilities. . . . . . . . . 53,534 28,860
-------- --------
Total current liabilities. . . . . . . . . 58,529 31,776
-------- --------
Shareholders' equity
Common stock . . . . . . . . . . . . . . . 331 323
Additional paid-in capital . . . . . . . . 363,384 353,247
Deficit. . . . . . . . . . . . . . . . . . (43,043) (28,462)
Accumulated translation adjustment . . . . 59 66
-------- --------
Total shareholders' equity . . . . . . . . 320,731 325,174
-------- --------
$379,260 $356,950
======== ========
See Notes to Condensed Consolidated Financial Statements.
<PAGE>
BIOGEN, INC. AND SUBSIDIARIES Page 4
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
Three Months Nine Months
Ended Sep. 30, Ended Sep. 30,
1994 1993 1994 1993
REVENUES
Royalties and product sales. . . $ 27,733 $33,942 $101,693 $101,196
Interest . . . . . . . . . . . . 4,079 3,363 11,678 9,384
-------- ------- -------- --------
Total revenues . . . . . . . . . 31,812 37,305 113,371 110,580
-------- ------- -------- --------
EXPENSES
Cost of sales. . . . . . . . . . 2,200 2,841 6,817 9,281
Research and development . . . . 22,864 18,755 72,466 50,860
General and administrative . . . 5,558 4,229 17,128 13,033
Other. . . . . . . . . . . . . . 27,411 (125) 29,461 7,307
--------- ------- -------- --------
Total expenses. . . . . . . . . . 58,033 25,700 125,872 80,481
-------- ------- -------- --------
INCOME (LOSS) BEFORE INCOME TAXES (26,221) 11,605 (12,501) 30,099
Income taxes. . . . . . . . . . . 200 330 2,080 1,920
-------- ------- -------- --------
NET INCOME (LOSS) . . . . . . . . $(26,421) $11,275 $(14,581) $ 28,179
======== ======= ======== ========
NET INCOME (LOSS) PER SHARE . . . $ (0.80) $ 0.33 $ (0.45) $ 0.82
======== ======= ======== ========
Average shares outstanding. . . . 33,021 34,337 32,660 34,548
======== ======= ======== ========
See Notes to Condensed Consolidated Financial Statements.
<PAGE>
BIOGEN, INC. AND SUBSIDIARIES Page 5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Nine Months Ended
September 30,
1994 1993
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss). . . . . . . . . . . . . . . $(14,581) $28,179
Adjustments to reconcile net income to net
cash provided from operating activities:
Depreciation and amortization . . . . . . . . 5,694 5,042
Write-off of investment in joint venture. . . -- 1,803
Other . . . . . . . . . . . . . . . . . . . . 2,274 (618)
Changes in:
Accounts receivable . . . . . . . . . . . . 21,825 281
Other current assets. . . . . . . . . . . . (452) 417
Other assets. . . . . . . . . . . . . . . . (87) 215
Accounts payable and
other current liabilities. . . . . . . . . 26,753 4,118
-------- -------
Net cash provided from operating activities. . 41,426 39,437
-------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable securities, net. . . . (37,683) (45,835)
Acquisitions of property and equipment . . . . (25,480) (6,657)
Additions to patents . . . . . . . . . . . . . (2,024) (2,080)
-------- -------
Net cash used by investing activities. . . . . (65,187) (54,572)
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock . . . . . . . . . . . 14,725 4,124
-------- -------
Net cash provided from financing activities. . 14,725 4,124
-------- -------
NET DECREASE IN CASH AND CASH EQUIVALENTS . . . (9,036) (11,011)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD. . . . . . . . . . . . . . 74,546 85,863
-------- -------
CASH AND CASH EQUIVALENTS,
END OF PERIOD. . . . . . . . . . . . . . . . . $ 65,510 $74,852
======== =======
See Notes to Condensed Consolidated Financial Statements.
<PAGE>
BIOGEN, INC. AND SUBSIDIARIES Page 6
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. In the opinion of management, the accompanying unaudited condensed
consolidated financial statements include all adjustments, consisting
of normal recurring accruals, necessary to present fairly the
financial position, results of operations and cash flows of the
Company. The Company's accounting policies are described in the Notes
to Consolidated Financial Statements in the Company's 1993 Annual
Report. Interim results are not necessarily indicative of the
operating results for the full year.
2. During the first quarter of 1994, the Company entered into an
agreement with a bank to sell certain foreign based accounts
receivable, with recourse, up to $14 million per quarter. The selling
price is partially determined by foreign exchange rates at the end of
each quarter.
3. During the second and third quarters of 1994, the Company received
$10.4 million from the exercise of 517,900 common stock warrants
issued in connection with the research and development arrangement
with Biogen Medical Products Limited Partnership ("BMPLP"). Each
BMPLP warrant entitled the holder to purchase one share of the
Company's common stock and was exercisable at $20 per share. The
BMPLP warrants expired on June 30, 1994, with the settlement period
extending through July 8, 1994.
4. During the third quarter of 1994, the Company incurred a pre-tax
charge to other expenses of $25 million as a result of its decision to
discontinue its major activities associated with Hirulog(TM)
development. The charge relates entirely to third-party expenses
associated with the manufacturing of drug supplies and wind-down of
clinical trial activities.
5. As of January 1, 1994, the Company adopted Statement of Financial
Accounting Standards No. 115, Accounting for Certain Investments in
Debt and Equity Securities. Under this standard, the Company is
required to classify its marketable securities (all of which are debt
securities) into one or more of the following categories: held-to-
maturity, trading or available-for-sale. All of the Company's
marketable securities are classified as available-for-sale. Under
this statement, these securities are recorded at fair market value and
unrealized gains and losses are recorded as part of shareholders'
equity. Following is a summary of marketable securities as of
September 30, 1994:
Fair Unrealized Amortized
(dollars in thousands) Value Gains Losses Cost
U.S. Government securities $198,219 $ 33 $3,150 $201,336
(average maturity of 18 months)
Corporate debt securities 68,738 - 1,465 70,203
(average maturity of 18 months)
Proceeds from maturities and other sales of securities, which were
reinvested, for the quarter and nine months ended September 30, 1994
were $135.0 million and $594.2 million, respectively. Gross realized
gains and losses on these sales were not significant.<PAGE>
BIOGEN, INC. AND SUBSIDIARIES Page 7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Operations
For the third quarter ended September 30, 1994, the Company reported a net
loss of $26.4 million or $0.80 per share as compared to net income of $11.3
million or $0.33 per share in the third quarter of 1993. For the nine
months ended September 30, 1994, the Company had a net loss of $14.6
million or $0.45 per share as compared to net income of $28.2 million or
$0.82 per share for the comparable period of 1993.
Total revenues for the third quarter of 1994 were $31.8 million, as
compared to $37.3 million in the comparable quarter of 1993. For the
current nine-month period, total revenues were $113.4 million as compared
to $110.6 million in 1993. Revenues from royalties and product sales for
the current quarter were lower than the third quarter of 1993 due mostly to
a decrease in royalties received from Schering-Plough Corporation
("Schering-Plough"), the Company's licensee for alpha interferon.
Royalties from alpha interferon sales declined in the current quarter as
compared to the third quarter in 1993, due primarily to lower sales in
Japan, which were driven by a 17 percent government-mandated decrease in
the price of alpha interferon, effective on April 1, 1994, together with a
softer overall market for the product in that country. Royalties and
product sales for the current nine-month period were approximately the same
level as the 1993 period. The decrease in royalties received from
Schering-Plough in the current nine month period was offset by royalties
received from Eli Lilly and Co. ("Lilly"). During the first quarter of
1994, the Company signed a licensing agreement with Lilly covering certain
patent rights for gene expression methods. Under this agreement, Lilly
paid the Company approximately $10 million in royalties that related to
sales occurring before 1994. In the near term, the Company expects overall
sales of licensee products to continue at current levels or increase
slightly although royalty income may fluctuate depending on changes in
sales volumes for specific products. However, there are numerous health
care reform initiatives currently underway in the United States and other
major pharmaceutical markets and it is not yet clear what effect, if any,
these initiatives or other developments may have on product sales by the
Company's licensees. In addition, these sales levels may fluctuate from
quarter to quarter due to the timing and extent of major events such as new
indication approvals or licensing arrangements.
Interest income for the current quarter and nine-month period increased
from the comparable 1993 amounts due primarily to higher interest rates and
levels of invested funds.
Total expenses for the third quarter of 1994 were $58.0 million as compared
to $25.7. million in the 1993 quarter. Research and development expense
increased $4.1 million, primarily due to increased regulatory work,
development costs and clinical expenses of Hirulog (TM) thrombin inhibitor
and recombinant beta interferon. On July 26, 1994, the Company announced
the results of its Phase III trial of recombinant beta interferon in
patients with active relapsing and relapsing remitting multiple sclerosis.
The Company intends to seek licensure for this product in the United States
and market approval in Europe in the first half of 1995. On October 31,
1994, the Company announced the completion of preliminary analysis of the
results of its Phase III trial for Hirulog (TM) thrombin inhibitor in
Page 8
angioplasty and that the drug did not achieve its primary efficacy
endpoint. As a result, the Company has decided to discontinue its major
activities associated with Hirulog (TM) development. The Company currently
does not intend to develop and market Hirulog (TM) independently but will
seek a marketing partner for the drug. The Company currently expects that,
as a result of its decision regarding Hirulog (TM), research and
development expense will decline in the near term as compared to the third
quarter of 1994. General and administrative expenses increased by $1.3
million due mostly to higher costs related to market development efforts,
legal and personnel related costs. Other expenses increased by $27.5
million and includes a pre-tax charge of $25 million as a result of the
Company's decision to discontinue its major activities associated with
Hirulog (TM) development. The charge relates entirely to third-party
expenses associated with the manufacturing of drug supplies and wind-down
of clinical trial activities. Other expenses also increased due to the
impact of foreign exchange losses associated with the sale of certain
accounts receivable, as well as losses on sales of marketable securities.
For the nine-month period ended September 30, 1994, total expenses were
$125.9 million as compared to $80.5 million in 1993. Research and
development expenses increased $21.6 million, primarily due to increased
regulatory work, development costs and clinical expenses of Hirulog (TM)
thrombin inhibitor and recombinant beta interferon. General and
administrative expenses increased $4.1 million due mostly to higher costs
related to market development efforts, legal and personnel related costs.
Other expenses increased $22.2 million and includes the pre-tax charge of
$25 million for discontinuing major Hirulog (TM) development activities.
The 1994 amount also includes losses from the sale of certain marketable
securities and impacts of foreign exchange associated with the sale of
certain accounts receivable, while the 1993 amount includes higher charges
related to the Genentech, Inc./Schering-Plough patent settlement relating
to the production of recombinant alpha interferon by Schering-Plough and
the wind-down of the Company's fifty percent owned European joint venture.
Income tax expense for the 1994 and 1993 periods were substantially less
than the amount computed at U.S. federal statutory rates because of the
utilization of net operating loss carryforwards.
Financial Condition
At September 30, 1994, cash, cash equivalents and marketable securities
amounted to $292.1 million, a $21.7 million increase from the $270.4
million on hand at the end of 1993. Working capital decreased $26.3
million to $251.3 million. Net cash provided from operating activities for
the nine months ended September 30, 1994 was $41.4 million while the
Company's common stock option and purchase plans provided $4.3 million.
The Company also received $10.4 million during the second and third
quarters of 1994 from the exercise of 517,900 common stock warrants issued
in connection with the research and development arrangement with Biogen
Medical Products Limited Partnership ("BMPLP"). Each BMPLP warrant
entitled the holder to purchase one share of the Company's common stock and
was exercisable at $20 per share. The BMPLP warrants expired on June 30,
1994 with the settlement period extending through July 8, 1994. Outflows
of cash included investments in property and equipment and patents of $27.5
million. The decrease in accounts receivable is primarily attributed to an
agreement the Company entered into with a bank in the first quarter of 1994
to sell certain foreign based accounts receivable and a lower level of
royalties.
Page 9
The Company is the general partner of BMPLP. BMPLP was formed for the
development of commercial products based on gamma interferon and
interleukin-2. The Company agreed to extend the term of the development
contract with BMPLP until December 31, 1994. The Company has not incurred
any significant costs with respect to BMPLP in 1994 and does not intend to
incur any significant costs, but has the option to provide additional
funding up to $9.2 million.
During the fourth quarter of 1993, the Company commenced construction of a
150,000 square foot building in Cambridge, Massachusetts to house research
laboratories and offices. The anticipated cost of construction, including
land, is approximately $40 million. As of September 30, 1994, the Company
had commitments totaling approximately $5 million on this project. Upon
completion of the building in 1995, the Company has the option, subject to
certain conditions, to obtain a secured term loan with a bank for up to $25
million for a period of up to ten years.
As of November 11, 1994, a total of five class action lawsuits were
initiated against the Company and several of its directors and officers in
the United States District Court for the District of Massachusetts. The
lawsuits generally allege that the Company and the named directors and
officers violated federal securities laws in connection with the Company's
public disclosures, including disclosures relating to its Hirulog (TM)
thrombin inhibitor. The plaintiffs seek damages in unspecified amounts.
The Company believes that the financial resources available to it,
including its current working capital and its existing and anticipated
contractual relationships, may be sufficient to finance its planned
operations and capital expenditures for the near term. However, the
Company expects that it may have additional funding needs, the extent of
which will depend upon the level of royalties and product sales, the
outcome of clinical trial programs, the receipt and timing of required
regulatory approvals for products, the results of research and development
efforts and business expansion opportunities. Accordingly, from time to
time, the Company may obtain funding through various means which could
include collaborative agreements, lease financings, sales of equity or debt
securities and other financing arrangements.
<PAGE>
Page 10
With respect to the unaudited condensed consolidated financial information
of Biogen, Inc. and its subsidiaries at September 30, 1994 and for the
three month and nine month periods ended September 30, 1994 and 1993, Price
Waterhouse LLP reported that they have applied limited procedures in
accordance with professional standards for a review of such information.
However, their separate report dated October 27, 1994 appearing herein,
states that they did not audit and they do not express an opinion on that
unaudited condensed consolidated financial information. Price Waterhouse
LLP has not carried out any significant or additional audit tests beyond
those which would have been necessary if their report had not been
included. Accordingly, the degree of reliance on their report on such
information should be restricted in light of the limited nature of the
review procedures applied. Price Waterhouse LLP is not subject to the
liability provisions of Section 11 of the Securities Act of 1933 for their
report on the unaudited condensed consolidated financial information
because that report is not a "report" or a "part" of the registration
statement prepared or certified by Price Waterhouse LLP within the meaning
of sections 7 and 11 of the Act.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of Biogen, Inc.
We have reviewed the accompanying condensed consolidated balance sheet of
Biogen, Inc. and its subsidiaries as of September 30, 1994, and the related
condensed consolidated statements of income for the three month and nine
month periods ended September 30, 1994 and 1993 and of cash flows for the
nine month periods ended September 30, 1994 and 1993. This financial
information is the responsibility of the Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted in accordance with generally accepted audit
standards, the objective of which is the expression of an opinion regarding
the financial statements taken as a whole. Accordingly, we do not express
such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the accompanying condensed consolidated financial
information for it to be in conformity with generally accepted accounting
principles.
We previously audited in accordance with generally accepted auditing
standards, the consolidated balance sheet as of December 31, 1993, and the
related consolidated statements of income, of cash flows and of
shareholders' equity for the year then ended (not presented herein), and in
our report dated January 20, 1994 we expressed an unqualified opinion on
those consolidated financial statements. In our opinion, the information
set forth in the accompanying condensed consolidated balance sheet as of
December 31, 1993, is fairly stated in all material respects in relation to
the consolidated balance sheet from which it has been derived.
/s/ Price Waterhouse LLP
- - - ------------------------
Boston, Massachusetts
October 27, 1994<PAGE>
PART II - OTHER INFORMATION Page 11
Item 1 - Legal Proceedings
As of November 11, 1994, a total of five class action lawsuits were
initiated against the Company and several of its directors and
officers in the United States District Court for the District of
Massachusetts. The lawsuits generally allege that the Company and the
named directors and officers violated federal securities laws in
connection with the Company's public disclosures, including
disclosures relating to its Hirulog (TM) thrombin inhibitor. The
plaintiffs seek damages in unspecified amounts.
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits
No. 11 Computation of Earnings per Share.
No. 15 Letter from Price Waterhouse LLP.
(b) There were no reports on Form 8-K filed for the quarter ended
September 30, 1994.
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.
BIOGEN, INC.
Dated: November 14, 1994 /s/Timothy M. Kish
----------------------------------
Timothy M. Kish
Vice President-Finance and
Chief Financial Officer
<PAGE>
EXHIBITS Page 12
Index to Exhibits.
No. 11 Computation of Earnings per Share.
No. 15 Letter from Price Waterhouse LLP.
EXHIBIT 11
<PAGE>
EXHIBIT 11
BIOGEN, INC. and SUBSIDIARIES
Computation of Earnings Per Share
(unaudited)
(in thousands, except per share amounts)
Three Months Nine Months
Ended Sep. 30, Ended Sep 30,
1994 1993 1994 1993
Primary earnings per share
Weighted average number of
shares outstanding . . . . . . . 33,021 31,983 32,660 31,893
Shares deemed outstanding from
the assumed exercise of stock
options and warrants . . . . . . - - 2,354 - - 2,655
-------- -------- -------- --------
Total . . . . . . . . . . . . . . 33,021 34,337 32,660 34,548
======== ======== ======== ========
Net income (loss) . . . . . . . . $(26,421) $ 11,275 $(14,581) $ 28,179
======== ======== ======== ========
Primary earnings (loss) per
share of common stock. . . . . . $ (0.80) $ 0.33 $ (0.45) $ 0.82
======== ======== ======== ========
Fully diluted earnings per share (a)
Weighted average number of
shares outstanding . . . . . . . 33,021 31,983 32,660 31,893
Shares deemed outstanding from
the assumed exercise of stock
options and warrants . . . . . . - - 3,090 - - 3,090
-------- -------- -------- --------
Total . . . . . . . . . . . . . . 33,021 35,073 32,660 34,983
======== ======== ======== ========
Net income (loss) . . . . . . . . $(26,421) $ 11,275 $(14,581) $ 28,179
======== ======== ======== ========
Fully diluted earnings (loss)
per share of common stock. . . . $ (0.80) $ 0.32 $ (0.45) $ 0.81
======== ======== ======== ========
(a) This calculation is submitted in accordance with Regulation S-K item
601 (b) (11) although not required by Footnote 2 to Paragraph 14 of
APB Opinion No. 15 because it results in dilution of less than 3%.
EXHIBIT 15
<PAGE>
EXHIBIT 15
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Dear Sirs:
We are aware that our report dated October 27, 1994 (issued pursuant to the
provisions of Statement on Auditing Standards No. 71) on the unaudited
condensed consolidated balance sheet of Biogen, Inc. and subsidiaries at
September 30, 1994, and the related condensed consolidated statements of
income for the three month and nine month periods then ended and of cash
flows for the nine month period then ended, is incorporated by reference in
the Prospectuses constituting part of its Registration Statements on Form
S-3, as amended (Nos. 33-14741, 33-14743, 33-20183 and 33-51639) and in the
Registration Statements on Form S-8, as amended (Nos. 2-87550, 2-96157, 33-
9827, 33-14742, 33-37312, 33-22378 and 33-41077 and as filed on September
21, 1993). We are also aware of our responsibilities under the Securities
Act of 1933.
Yours very truly,
/s/ Price Waterhouse LLP
- - - ------------------------
Boston, Massachusetts
November 10, 1994
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> SEP-30-1994
<CASH> 65,510
<SECURITIES> 226,628
<RECEIVABLES> 9,870
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 309,838
<PP&E> 89,590
<DEPRECIATION> 29,699
<TOTAL-ASSETS> 379,260
<CURRENT-LIABILITIES> 58,529
<BONDS> 0
<COMMON> 331
0
0
<OTHER-SE> 320,341
<TOTAL-LIABILITY-AND-EQUITY> 379,260
<SALES> 101,693
<TOTAL-REVENUES> 113,371
<CGS> 6,817
<TOTAL-COSTS> 96,411
<OTHER-EXPENSES> 29,461
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (12,501)
<INCOME-TAX> 2,080
<INCOME-CONTINUING> (14,581)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (14,581)
<EPS-PRIMARY> (0.45)
<EPS-DILUTED> (0.45)
</TABLE>
