UNITED STATES
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 September 27, 1997
or
Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Commission File Number 0-11438
BURR-BROWN CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 86-0445468
(State of Incorporation) (IRS Employer I.D. No.)
6730 South Tucson Boulevard
Tucson, Arizona 85706
(Address of principle executive offices)
(520) 746-1111
(Registrant's telephone number)
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, not including shares held in treasury, as of
the close of the period covered by this report.
Common Stock, $0.01 par value 24,156,000 Shares
BURR-BROWN CORPORATION AND SUBSIDIARIES
INDEX
PART I. FINANCIAL INFORMATION
Page #
Item 1 Financial Statements (Unaudited)
Consolidated Statements of Income, Three and
Nine Months Ended September 27, 1997, and
September 28, 1996 3
Consolidated Balance Sheets, September 27, 1997,
and December 31, 1996 4
Consolidated Statements of Cash Flows, Nine
Months Ended September 27, 1997, and
September 28, 1996 5
Notes to Consolidated Financial Statements 6
Item 2 Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
PART II. OTHER INFORMATION
Item 6 Exhibits and Reports on Form 8-K
(a) Exhibit 11: Computation of Consolidated
Earnings Per Share 10
(b) Reports on Form 8-K: The Company did not
file any reports on Form 8-K during the quarter
ended September 27, 1997
SIGNATURES
Signature Page 11
<TABLE>
<CAPTION>
PART I. FINANCIAL
INFORMATION
BURR-BROWN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands except per share amounts)
Three Months Nine Months Ended
Ended
<S> <C> <C> <C> <C>
Sep. 27, Sep. 28, Sep. 27, Sep. 28,
1997 1996 1997 1996
Net Revenue $65,928 $50,109 $183,205 $169,464
% increase (decrease) in 32% (29%) 8% (15%)
revenue over prior year
Cost of Goods Sold 32,669 25,017 91,306 83,941
Gross Margin 33,259 25,092 91,899 85,523
% of revenue 50% 50% 50% 50%
Expenses:
Research & Development 9,248 6,452 24,419 21,088
% of revenue 14% 13% 13% 12%
Sales, Marketing, General 12,761 12,137 37,378 41,027
and Administrative
% of revenue 19% 24% 20% 24%
Total Operating Expenses 22,009 18,589 61,797 62,115
% of revenue 33% 37% 34% 37%
Income from Operations 11,250 6,503 30,102 23,408
% of revenue 17% 13% 16% 14%
Interest Expense 108 132 323 502
(Gain) from Sale of - (500) - (7,180)
Subsidiary
Other (Income) Expense (1,078) (590) (2,897) (2,660)
Income Before Income Taxes 12,220 7,461 32,676 32,746
% of revenue 19% 15% 18% 19%
Provision for Income Taxes 3,666 1,761 9,803 8,841
Effective Tax Rate 30% 24% 30% 27%
Net Income $8,554 $5,700 $22,873 $23,905
% of revenue 13% 11% 12% 14%
Earnings per Common Share $0.34 $0.23 (1) $0.90 $0.95 (1)
Shares used in per common 25,468 24,753 (1) 25,334 25,067 (1)
share calculation
<FN>
(1) Common share information was adjusted to reflect a 3 for 2 stock split
effective April, 1997.
See Notes to Consolidated
Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
BURR-BROWN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands of dollars)
Sep. 27, Dec. 31,
1997 1996
<S> <C> <C>
ASSETS (Unaudited)
Current Assets
Cash and Cash Equivalents $43,654 $38,433
Short-Term Investments - 14,407
Trade Receivables 57,999 39,546
Inventories 45,951 49,570
Deferred Income Taxes 7,743 6,705
Other 12,577 4,867
Total Current Assets 167,924 153,528
Long-Term 41,060 36,537
Investments
Land, Buildings, and Equipment
Land 3,067 3,427
Buildings and Improvements 26,218 25,344
Equipment 142,030 122,726
171,315 151,497
Less Accumulated Depreciation (92,313) (83,967)
79,002 67,530
Other Assets 2,733 3,993
$290,719 $261,588
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Liabilities
Notes Payable $13,102 $14,533
Accounts Payable 23,084 17,641
Accrued Expenses 4,934 3,568
Accrued Employee Compensation and Payroll Taxes 7,858 8,194
Deferred Profit from Distributors 7,243 7,462
Income Taxes Payable 6,342 3,129
Current Portion of Long-Term Debt 757 1,087
Total Current Liabilities 63,320 55,614
Long-Term Debt 1,521 1,830
Deferred Gain - 1,122
Deferred 1,848 1,709
Income Taxes
Other Long-Term Liabilities 693 1,907
Stockholders' Equity
Preferred Stock - -
Common Stock 253 166
Additional Paid-In Capital 93,147 90,326
Retained Earnings 140,132 117,467
Equity Adjustment From Foreign Currency
Translation 1,596 2,881
Unrealized Loss on Investments (288) -
Treasury Stock (11,503) (11,434)
223,337 199,406
$290,719 $261,588
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
BURR-BROWN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASHFLOWS
(Unaudited)
(In Thousands of dollars)
<TABLE>
<CAPTION>
Nine Months Ended
Sep. 27, Sep. 28,
1997 1996
<S> <C> <C>
OPERATING ACTIVITIES:
Net Income $ 22,873 $ 23,905
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation and Amortization 10,121 9,974
Amortization of Deferred Gain (1,122) (1,122)
Provision for Inventory Reserves 1,279 1,632
Benefit from Deferred Income Taxes (698) (2,380)
Increase (Decrease) in Deferred Profit from (219) 428
Distributors
Gain from Sale of Subsidiary - (7,180)
Other 70 (69)
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Trade Receivables (20,261) 7,798
(Increase) Decrease in Inventories 1,543 (5,890)
(Increase) Decrease in Other Assets (6,770) (4,158)
Increase (Decrease) in Accounts Payable 5,797 (362)
Increase (Decrease) in Accrued Expenses and 3,600 (6,233)
Other Liabilities
Net Cash Provided by Operating Activities 16,213 16,343
INVESTING ACTIVITIES:
Purchases of Investments (31,867) (19,186)
Maturities of Investments 41,267 38,880
Purchases of Land, Buildings, and Equipment (21,559) (19,970)
Proceeds from Sale of Equipment 40 388
Proceeds from Sale of Subsidiary - 12,804
Net Cash Provided by (Used in) Investing
Activities (12,119) 12,916
FINANCING ACTIVITIES:
Proceeds from Short-Term and Long-Term
Borrowings - 4,713
Payments on Short-Term and Long-Term Borrowings (1,677) (788)
Proceeds from (Payments for) Capital Stock
Activity, Net 2,631 (9,330)
Net Cash Provided by (Used in) Financing
Activities 954 (5,405)
Effect of Exchange Rate Changes 173 (63)
Increase in Cash and Cash Equivalents 5,221 23,791
Cash and Cash Equivalents at Beginning of Year 38,433 42,477
Cash and Cash Equivalents at End of Nine Months $ 43,654 $ 66,268
<FN>
See Notes to Consolidated Financial Statements.
</TABLE>
BURR-BROWN CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(In thousands except per share amounts)
1. BASIS OF PRESENTATION
The consolidated financial statements included herein have been
prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. 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 such rules and
regulations. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three
months and nine months ended September 27, 1997, are not necessarily
indicative of the results to be expected for the year ending December
31, 1997. For further information, refer to the consolidated financial
statements and footnotes thereto included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1996, filed with
the Securities and Exchange Commission.
In February, 1997, the Financial Accounting Standards Board issued
Statement No. 128, Earnings per Share, which is required to be adopted
on December 31, 1997. At that time, the Company will be required to
change the method currently used to compute earnings per share and to
restate all prior periods. Under the new requirements for calculating
primary earnings per share, the dilutive effect of stock options will
be excluded. The impact is expected to result in an increase in
primary earnings per share in both the third quarters ended September
27, 1997, and September 28, 1996 of $0.01 per share, and an increase in
primary earnings per share in the first nine months ended September 27,
1997, and September 28, 1996, of $0.05 and $0.04 per share,
respectively. The impact of Statement 128 on the calculation of fully
diluted earnings per share for these periods is not expected to be
material.
2. INVENTORIES
<TABLE>
<CAPTION>
Inventories consist of the following:
Sep. Dec.
27, 31,
1997 1996
<S> <C> <C>
Raw Material $8,810 $10,960
Work-in-Process 21,483 20,227
Finished Goods 15,658 18,383
$45,951 $49,570
</TABLE>
3. TAX RATE
The effective tax rate for 1997 is estimated to be 30%. The Company's
effective tax rate is lower than the U.S. statutory rate due to
expected benefits from tax exempt investment income, a foreign sales
corporation, and tax credits.
4. STOCK SPLIT
On March 4, 1997, the Company's Board of Directors declared a three for
two stock distribution to stockholders of record on March 18, 1997,
payable in April, 1997. Fractional shares were paid in cash to those
stockholders whose shares on the record date were not evenly divisible
by two.
5. CONTINGENCIES
Subsequent to March 29, 1997, the Company settled a patent infringement
case that had been outstanding at December 31, 1996. The plaintiff had
alleged that Burr-Brown had infringed upon its Small Computer System
Interface (SCSI) terminator patents. The terms of the settlement
agreement, which are confidential, are not expected to materially
impact the Company's financial condition, results of operations, or
cash flows
BURR-BROWN CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
The following discussion and analysis may contain forward-looking
statements that involve risks and uncertainties. Factors that might
cause actual results to differ from those currently anticipated
include, but are not limited to, those discussed under "Factors
Affecting Future Results."
RESULTS OF OPERATIONS
Net income for the third quarter of 1997 was $8.6 million or $.34 per
share. This compares to net income of $7.7 million or $.31 per share
for the preceding quarter and to net income of $5.7 million or $.23 per
share for the year ago quarter. Net income for the first nine months
of 1997 was $22.9 million or $.90 per share. This compares to $23.9
million or $.95 per share for the same period in 1996. The first nine
months' net income of 1996 is comprised of income from recurring
operations of $18.7 million or $.74 per share and a non-recurring gain
of $5.2 million or $.21 per share relating to the sale of Power
Convertibles Corporation (PCC), a subsidiary sold in the first quarter
of 1996. Excluding this gain, compared to the first nine months of
1996, net income increased by 22.6%.
Third quarter new order bookings were up significantly from the third
quarter of 1996. For the first nine months of 1997, new order bookings
have increased substantially from the same period last year.
Revenue for the third quarter of $65.9 million was up 31.6% from the
same quarter last year and up 5.5% sequentially. Revenue in
all regions was up significantly over last year. Sequentially, all regions
were up except Europe which was impacted by the summer quarter
seasonality. Although all product lines experienced growth, those
selling into the communications and digital audio and video markets
were especially strong. Revenue for the first nine months of 1997 was
$183.2 million. Net of 1996 PCC activity, this was $16.7 million or
10% greater than 1996 revenue for the same period.
Third quarter gross margin improved to 50.4% of sales from 50.0% in the
prior quarter, reflecting a higher level of internal factory
utilization and increased operating leverage from higher total sales.
Mix continues to shift toward higher volume products with lower average
selling prices without having an adverse effect on aggregate gross
margin. Factory yields remained steady at record levels. Year-to-date
gross margin at 50.2% of sales was slightly lower than the same period
last year, primarily the result of product mix changes and lower level
of factory utilization. Modest gross margin expansion is expected in
the near term. Gross margin improvements are expected to accelerate as
revenue growth accelerates.
Operating expenses declined, as a percentage of sales from the
preceding quarter, to 33.4% from 33.6% although increasing in absolute
terms. Research and Development (R&D) expenses increased to $9.2
million or 14.0% of revenue as new product introduction efforts gained
momentum. R&D expenses for the first nine months of 1997 were 13.3% of
revenue as compared to 12.4% for the same period last year. This
increase reflects management's strategy to increase R&D investment as a
primary driver of future revenue growth. The Company's model ratio for
R&D is 14% of revenue and the Company expects to be near that level for the
remainder of the current year in order to support a record number of
new product introductions during 1997 and to continue development of
next generation proprietary wafer fab processes.
Sales, Marketing and General & Administrative (SMG&A) expenses declined
to 19.4% of revenue from 20.9% in the preceding quarter and from 24.2% in
the same quarter of last year. SMG&A expense actually declined in
absolute dollars during the quarter. Much of this was the result of
consolidation of selling, logistics and administration activity in
Europe. For the first nine months of 1997, SMG&A expenses were $3.6
million or 8.9% lower than those of the comparable period of 1996. For
the same periods, SMG&A expense declined from 24.2% of revenue to 20.4%
of revenue. To continue to lower SMG&A expenses, the Company is continuing
to consolidate all administrative, logistics and inventory functions in
three regional service centers worldwide. The adoption of a common
worldwide information system is also expected to reduce administrative
costs. An increase in the proportion of large order opportunities inherent
in an application specific standard products strategy is expected to reduce
the overall cost of selling.
Operating income at 17.1% of revenue was up from 16.4% in the second
quarter of 1997 and from 13.0% in the third quarter of last year. On
an absolute dollar basis, this improvement is primarily due to
increased operating leverage brought about by revenue growth and by
operating expense control. As compared to third quarter of last year,
operating income improved by 73.0% while devoting 43.3% more resources
to new product development activities. The Company plans to improve
profit performance through continued gross margin expansion, by continued
constraint on SMG&A expenses and by revenue growth. Revenue growth is
expected to be driven by R&D investments, increased penetration of
traditional markets such as industrial process control and test and
instrumentation, and expanded participation in new, emerging markets
such as communications, digital audio and video, and computing and
multimedia.
Despite the strengthening of the dollar throughout the quarter, dollar
pricing, price indexing, and natural and financial hedges minimized the
impact of foreign exchange rate changes on the quarter's financial
performance.
The 1997 tax rate continues to be 30%. This is up from the 25.5% tax
rate of 1996 due to the absence of any one-time favorable tax events
similar to those which occurred last year. Although it is expected
that this rate will hold for all of 1997, this rate will be reviewed
during the fourth quarter as 1996 filings are concluded. Long term
expectations are that the tax rate will trend toward the federal
statutory rate of 35% over the next few years.
Net income for the quarter was $8.6 million or 13.0% of sales, up from
$7.7 million or 12.4% of sales last quarter and up from $5.7 million or
11.4% of sales in the third quarter of last year. Sequentially, net
income was up 10.4% on a revenue increase of 5.5%. As compared to same
quarter last year, net income was up 50.1% on a revenue increase of
31.6%. The Company's long term operating model for profit after tax is
15%.
FOREIGN OPERATIONS
International markets constitute a majority source of the Company's
revenues. The resulting transactions have exchange rate fluctuation
risk associated with them. Exchange rate risk is reduced through the
natural hedges afforded by the Company's foreign operations, dollar-
based or dollar-indexed sales transactions whenever possible and by the
purchase of forward foreign exchange and option contracts to hedge its
foreign currency net accounts receivable due from the international
subsidiaries. In addition, the Company has entered into forward
contracts and option contracts against anticipated foreign exchange
cash flows. These contracts are in three primary currencies: Japanese
Yen, British Pounds and German Marks. Exchange rate fluctuations can
also affect the Company's reported revenue to the extent that the
international subsidiaries' sales are in non-indexed foreign currencies
but reported in the consolidated financial statements in U.S. dollars
using a weighted average exchange rate. When compared to the first
nine months of 1996, the effect of foreign exchange rate changes had
approximately a 5% unfavorable impact on 1997 year to date revenue.
Hedging activity resulted in a much smaller unfavorable impact on net
income.
FACTORS AFFECTING FUTURE RESULTS
The foregoing plans are subject to a number of risks and uncertainties,
including the following: Factors that could materially and adversely
affect net revenue, gross margin, and profitability include the volume
and timing of orders, changes in product mix, market acceptance of the
Company's and its customers' products, competitive pricing pressures,
fluctuations in foreign currency exchange rates, new product
introductions, and fluctuations in manufacturing yields. Average
selling prices typically decrease over the life of particular products.
If the Company is unable to introduce new products with higher average
selling prices or reduce manufacturing costs to offset decreases in the
prices of its existing products, the Company's operating results will
be adversely affected. In addition, the Company is limited in its
ability to reduce costs quickly in response to any revenue shortfalls.
To meet anticipated future demand and to utilize a broader range of
fabrication processes, the Company intends to increase its
manufacturing capacity. Given the complexity and expense of designing
and constructing a significant expansion of a semiconductor fabrication
plant, during the construction of the additions, the Company's
manufacturing yields could be materially and adversely impacted. The
Company is subject to several risks associated with its international
operations; including unexpected changes in regulatory requirements,
delays resulting from difficulty in obtaining export licenses for
certain technology, foreign exchange fluctuations, tariffs and other
barriers and restrictions, and the burdens of complying with a variety
of foreign laws. The semiconductor industry is intensely competitive.
Many of the Company's competitors have substantially greater financial,
technical, marketing, distribution, and other resources than the
Company. In the event of a downturn in the market for analog circuits,
companies that have broader product lines may be in a stronger
competitive position than the Company. Other risks potentially
affecting future operating results are set forth in the Company's
filings with the Securities and Exchange Commission.
FINANCIAL CONDITION
The Company's financial position remains very sound. Cash, cash
equivalents and investments at $84.7 million increased $8.2 million on
the quarter primarily driven by operating results and a decline in
inventory.
Inventories declined by $4.5 million during the quarter. Inventory to
quarterly sales ratio declined to 69.7% from 80.7% in the prior quarter.
The Company is continuing to see the benefits of an inventory reduction
program which includes cost and cycle time reductions, increased use of
the distribution channel, consolidation of inventories in regional service
centers and improvements in manufacturing planning. Management's
expectation for the remainder of the year is for inventory to remain
relatively flat in absolute terms and further decline as a percent of
sales. Currently, annual inventory turns are nearing 3, up from 2 at
this time last year. The Company's near-term objective is to improve
this to more than 3 turns.
Sequentially, accounts receivable increased by 10.0% on a revenue
increase of 5.5%. Days sales outstanding increased to 80 days from 77
days. The slow summer quarter adversely affected shipment linearity,
especially in international markets. Expectations are that accounts
receivable will increase with revenue in the fourth quarter but days
sales outstanding are expected to decline.
Capital expenditures were approximately $9.4 million in the third
quarter, bringing the total to $21.6 million year to date.
Modernization and standardization of manufacturing equipment was a
significant driver to capital spending as was next generation
technology development and development of information systems. In
addition, the Company purchased the residual value of wafer fabrication
and test assets previously held under operating leases. Plans call for
a total of about $24 million to be invested in 1997.
Debt increased from the preceding quarter by $1.4 million. As of
September 27, 1997, total debt was $15.4 million, of which $2.3 million
was term debt. Most of this debt represents interest rate arbitrage in
Japan. In addition to term debt, credit facilities of approximately
$50.2 million with both domestic and international banks were available
to the Company of which approximately $13.1 million or 26% was
utilized. The current ratio decreased slightly from 2.76 at year end to
2.65 at September 27, 1997. Total debt declined by $2.1 million or
11.9% from 1996 year end. Accounts payable increased by $7.0 million
during the third quarter, reflecting increased purchases of capital
items and foundry wafers. From 1996 year end, accounts payable
increased by $5.5 million.
Stockholders' equity increased by $8.7 million or 4.1% on the quarter and
$23.9 million or 12% from year end.
Given both the current cash position and available credit facilities,
Management believes the Company has sufficient capital resources
available to meet its requirements for the foreseeable future.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibit 11
BURR-BROWN CORPORATION AND SUBSIDIARIES
COMPUTATION OF CONSOLIDATED EARNINGS PER SHARE
(Unaudited)
<TABLE>
<CAPTION>
Earnings per share are computed using the weighed average number
of shares outstanding plus incremental shares issuable upon
exercise of outstanding options under the treasury stock method.
Three Months Ended Nine Months Ended
Sep. 27, Sep. 28, Sep. 27, Sep. 28,
1997 1996 (1) 1997 1996 (1)
<S> <C> <C> <C> <C>
INCOME:
Net Income $8,554,000 $5,700,000 $22,873,000 $23,905,000
PRIMARY EARNINGS PER
SHARE:
Weighted Average 24,111,000 23,854,000 23,987,000 24,071,000
Number of Shares
Outstanding
Net Effect of Dilutive
Stock Options Based on
the Treasury Stock
Method Using the Average
Market Price of Common
Stock 1,357,000 899,000 1,347,000 996,000
Common Stock and Common
Stock Equivalents 25,468,000 24,753,000 25,334,000 25,067,000
Primary Earnings Per
Share $0.34 $0.23 $0.90 $0.95
FULLY DILUTED EARNINGS PER SHARE:
Weighted Average 24,111,000 23,854,000 23,987,000 24,071,000
Number of Shares
Outstanding
Net Effect of Dilutive
Stock Options Based on
the Treasury Stock
Method Using the End
of Period
Market Price of
Common Stock, if
Higher Than
Average 1,357,000 943,000 1,398,000 996,000
Common Stock and
Common Stock
Equivalents 25,468,000 24,797,000 25,385,000 25,067,000
Fully Diluted Earnings
Per Share $0.34 $0.23 $0.90 $0.95
<FN>
(1) Common share information was adjusted to reflect a 3 for 2 stock split
effective April, 1997.
</TABLE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
and Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
BURR-BROWN CORPORATION
Registrant
By: J. SCOTT BLOUIN
J. Scott Blouin
Chief Financial Officer
Principal Accounting Officer
Date: November 7, 1997
<TABLE> <S> <C>
<ARTICLE>5
<LEGEND>
YEAR-TO-DATE CONSOLIDATED STATEMENT OF INCOME, CONSOLIDATED
BALANCE SHEETS, AND CONSOLIDATED STATEMENTS OF CASH FLOWS
FOUND ON PAGES 3,4,5 RESPECTIVELY, ON THE COMPANY'S FORM 10-Q
FOR THE CURRENT PERIOD ENDED AND THE PREVIOUS PERIOD ENDED,
ARE LISTED BELOW IN TABULAR FORMAT AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997
<PERIOD-END> JUN-28-1997 SEP-27-1997
<CASH> 32,523 43,654
<SECURITIES> 43,960 41,060
<RECEIVABLES> 53,704 58,936
<ALLOWANCES> 961 937
<INVENTORY> 56,617 50,176
<CURRENT-ASSETS> 155,698 167,924
<PP&E> 163,604 171,315
<DEPRECIATION> 89,987 92,313
<TOTAL-ASSETS> 273,150 290,719
<CURRENT-LIABILITIES> 53,897 63,320
<BONDS> 0 0
0 0
0 0
<COMMON> 252 253
<OTHER-SE> 214,383 223,084
<TOTAL-LIABILITY-AND-EQUITY> 273,150 290,719
<SALES> 117,277 183,205
<TOTAL-REVENUES> 117,277 183,205
<CGS> 58,637 91,306
<TOTAL-COSTS> 58,637 91,306
<OTHER-EXPENSES> 15,733 24,500
<LOSS-PROVISION> 19 19
<INTEREST-EXPENSE> 215 323
<INCOME-PRETAX> 20,456 32,676
<INCOME-TAX> 6,137 9,803
<INCOME-CONTINUING> 14,319 22,873
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 14,319 22,873
<EPS-PRIMARY> 0.57 0.90
<EPS-DILUTED> 0.57 0.90
