UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 1997
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 0-12459
Biosynergy, Inc.
(Exact name of registrant as specified in its charter)
Illinois 36-2880990
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1940 East Devon Avenue, Elk Grove Village, Illinois 60007
(Address of principal executive offices) (Zip
Code)
Registrant's telephone number, including area code (847) 956-0471
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 common stock as of the close
of the period covered by this report: 13,806,511
Page 1 of the 18 pages contained in the sequential numbering
system.
PART 1 - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Board of Directors and Shareholders
Biosynergy, Inc.
Elk Grove Village, Illinois
The accompanying Balance Sheet of BIOSYNERGY, INC. as at
October 31, 1997 and the related Statements of Operations,
Shareholders' Equity (Deficit) and Statements of Cash Flows for
the three and six month periods ended October 31, 1997 and 1996
were not audited; however, the financial statements for the three
and six month periods ending October 31, 1997 and 1996 reflect
all adjustments (consisting only of normal reoccurring
adjustments) which are, in the opinion of management, necessary
to provide a fair statement of the results of operations for the
interim periods presented.
The financial statements for the fiscal year ended April 30,
1997, were not audited due to the Company's lack of available
cash to pay for such audit; however, the financial statements for
the fiscal year ending April 30, 1997 reflect all adjustments
(consisting only of normal reoccurring adjustments) which are, in
opinion of management, necessary to provide a fair statement of
the results of operations for the period presented.
BIOSYNERGY, INC.
December 9, 1997
BIOSYNERGY, INC.
BALANCE SHEET
ASSETS
October 31, 1997 April 30,1997
Unaudited Unaudited
CURRENT ASSETS
Cash 28,541
12,420
Accounts Receivable, Trade, Net of
Allowance for Uncollectible Accounts
of $500 at October 31, 1997 and $500 at
April 30, 1997 78,126
61,030
Inventories (Notes 1 and 4) 44,192
45,956
Prepaid Expenses 4,067
2,268
Total Current Assets 154,926
121,674
DUE FROM AFFILIATE (Note 3) 301,413
291,795
PROPERTY AND EQUIPMENT
Equipment 161,320 161,320
Leasehold Improvements 12,216
12,216
173,536
173,536
Less: Accumulated Depreciation and
Amortization ( 163,828) (
163,010)
9,708 10,526
OTHER ASSETS
Patents, Net of Accumulated
Amortization (Note 1) 23,593 25,533
Deposits 6,012 6,051
Investment in Affiliated Company (Note 3) - -
29,605
31,584
495,652
455,579
--------- -------
- ---
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable 9,068 12,873
Accrued Executive Compensation 49,855 67,856
Other Accrued Compensation 3,425
2,137
Accrued Payroll Taxes 193
791
Deferred Rent 1,767 1,751
Other Accrued Expenses 2,186 1,736
Total Current Liabilities 66,494
87,144
COMMITMENTS AND CONTINGENCIES (Note 7) - -
SHAREHOLDERS' EQUITY (Note 5)
Common Stock, No Par Value; 20,000,000 Shares
Authorized, Issued: 13,806,511 Shares
at October 31, 1997 and at April 30, 1997 632,663
632,663
Additional paid-in capital 100
100
Accumulated Deficit (203,605)
(264,328)
429,158
368,435
495,652 455,579
----------- ----------
The accompanying notes are an integral part of the financial
statements.
BIOSYNERGY, INC.
STATEMENT OF OPERATIONS
Unaudited
Three Months Ended
Six Months Ended
October 31,
October 31,
1997 1996 1997 1996
REVENUES
Sales 131,513 132,439 273,874
265,036
Interest Income - 34
- 34
Computer Rentals and Services 150 150
300 300
Other Income 630
1,910 1,431 5,896
132,293 134,533
275,605 271,266
COST AND EXPENSES
Cost of Sales and Other
Operating Charges 50,644 44,720
97,557 90,022
Research and Development 9,663 8,376
18,134 15,473
Marketing 12,012 12,693
24,281 27,289
General and Administrative 36,633 37,904
74,668 72,012
Interest Expense 121
149 242 303
109,073 103,842
214,882 205,099
NET INCOME (LOSS) BEFORE INCOME
TAXES AND EXTRAORDINARY
ITEMS 23,220 30,691
60,723 66,167
INCOME TAXES 3,483 4,534
10,181 11,426
INCOME (LOSS) BEFORE
EXTRAORDINARY ITEMS 19,737 26,157
50,542 54,741
EXTRAORDINARY ITEMS
Reduction of Income Taxes
arising from utilization of ------------ -------------
-------------- --------------
NET INCOME (LOSS) PER
COMMON SHARE (Note 6):
Before Extraordinary Items .0014 .0019
.0037 .0040
Extraordinary Items .0002
.0003 .0007 .0008
NET INCOME (LOSS) .0016 .0022
.0044 .0048
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
(Note 6) 13,806,511 13,806,511
13,806,511 13,806,511
--------------- -----------------
- --------------- -----------------
The accompanying notes are an integral part of the financial statements.
BIOSYNERGY, INC.
STATEMENT OF SHAREHOLDERS' EQUITY
SIX MONTHS ENDED OCTOBER 31, 1997
Unaudited
Additional
Common Stock Paid-in
Shares Amount Capital Deficit
Total
Balance, May 1,
1997 13,806,511 632,663 100
(264,328) 368,435
Net Profit (Loss) - - - 60,723
60,723
Sale of Common Stock - - - -
-
Balance, October 31,
1997 13,806,511 632,663 100 (203,605)
429,158
The accompanying notes are an integral part of the financial statements.
BIOSYNERGY, INC.
STATEMENTS OF CASH FLOWS
Unaudited
SIX MONTHS ENDED JULY
31,
1997
1996
OPERATING ACTIVITIES:
Net Income (Loss) 60,723 66,167
Adjustments to Reconcile Net Cash Used for
Operating Activities:
Depreciation and Amortization 2,758
2,354
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (17,096) (
21,010)
(Increase) Decrease in Inventories 1,764
474
(Increase) Decrease in Prepaid Expenses ( 1,799) (
307)
Increase (Decrease) in Accounts Payable
and Accrued Expenses (20,650) (
30,949)
Net Cash Provided (Used) by Operating
Activities 25,700
16,729
INVESTING ACTIVITIES:
(Increase) Decrease in Due From Affiliate
(Note 3) ( 9,618) ( 10,079)
(Increase) Decrease in Due From Affiliate
Short Term Note (Note 3) - ( 2,000)
(Increase) Decrease in Deposits 39
19
Net Cash Provided (Used) by Investing
Activities ( 9,579)
( 12,060)
FINANCING ACTIVITIES:
Net Cash Provided (Used) by Financing
Activities -
-
Increase (Decrease) in Cash and Cash
Equivalents 16,121
4,669
Cash and Cash Equivalents at Beginning
of Period 12,420
9,733
Cash and Cash Equivalents at End of Period 28,541
14,402 ----
- -------- ------------
The accompanying notes are an integral part of the financial statements.
BIOSYNERGY, INC.
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies:
Inventories-Inventories are valued at the lower of cost or
market using the FIFO (first-in, first-out) method.
Equipment and Leasehold Improvements-Equipment and Leasehold
improvements are stated at cost. Depreciation and
amortization are computed primarily on the straight-line
method over the estimated useful lives of the respective
assets. Repairs and maintenance are charged to expense as
incurred; renewals and betterments which significantly
extend the useful lives of existing property and equipment
are capitalized. Significant leasehold improvements are
capitalized and amortized over the term of the lease.
Research and Development, and Patents-Research and
development expenditures are charged to operations as
incurred. The cost of obtaining patents, primarily legal
fees, are capitalized and amortized over seventeen years on
the straight-line method.
2. Company Organization and Description:
The Company was incorporated under the laws of the State of
Illinois on February 9, 1976. It is primarily engaged in
the development and marketing of medical, consumer and
industrial thermometric and thermographic products that
utilize cholesteric liquid crystals.
3. Related Party Transactions:
The Company and its affiliates are related through common
stock ownership as follows as of October 31, 1997:
S T O C K O F A F F I L I A T E S
F.K. Suzuki
Stevia Biosynergy International Medlab
Stock Owner Company Inc. Inc. Inc.
Stevia Company, Inc. - 13.8% - -
Biosynergy, Inc. .4% - - -
F.K. Suzuki
International, Inc. 55.8% 18.8% - 100.0%
Fred K. Suzuki, - - 35.6% -
Officer and Director
Lauane C. Addis, .1% .1% 32.7% -
Officer and Director
James F. Schembri, - 12.9% - -
Director
Upon the completion of the Company's public offering on July 7, 1983,
the Company issued 2,000,000 shares of its no par value common stock
in exchange for 1,058,181 shares of common stock of Stevia Company,
Inc. The common stock of Stevia Company, Inc. had no book value at
the time of the exchange and, as a consequence, the Company recorded
the exchange at zero dollar value. The Company owned 130,403 shares
of Stevia Company, Inc. Common Stock at October 31, 1997. Although
the Common Stock of Stevia Company, Inc. can be traded in
BIOSYNERGY, INC.
NOTES TO FINANCIAL STATEMENTS
the over-the-counter market, there is no established public trading
market for such common stock due to limited and sporadic trades.
Stevia Company, Inc. Common Stock had an estimated market price of
less than $.01 as of October 31, 1997.
Common offices are shared with Stevia Company, Inc. Intercompany
charges for shared expenses are made by whichever company incurs such
charges. Such intercompany charges, together with funds advanced in
prior years, have resulted in the following balances due from Stevia
Company, Inc.:
October 31, 1997 - $288,491
April 30, 1997 - $278,874
At April 30, 1997 and October 31, 1997, the financial condition of
Stevia Company, Inc. was such that it is unlikely to be able to repay
the Company during the current year without liquidating a portion of
its assets.
The following balances were due from F.K. Suzuki International, Inc.
at the dates indicated based on the allocation of common expenses
offset by advances received from time to time:
October 31, 1997 - $12,921
April 30, 1997 - $12,921
At April 30, 1997 and October 31, 1997, the financial condition of
F.K. Suzuki International, Inc. was such that it is unlikely to be
able to repay the Company during the current year without liquidating
a portion of its assets.
See also Note 5.
4. Inventories:
Components of inventories are as follows:
October 31, 1997 April 30, 1997
Raw Materials $ 29,970 $ 30,583
Work-in process 10,299 10,257
Finished Goods 3,923 5,116
$ 44,192 $ 45,956
---------- ------------
5. Common Stock:
Effective January 31, 1990, the Company entered into an agreement with
its President, Fred K. Suzuki, pursuant to which the Company granted
an option to convert all or a portion of his accrued but unpaid
compensation into shares of the Company's no par value common stock at
a conversion rate of $.05 per share. The option is conditioned upon
the Company having sufficient liquid assets to pay all employee taxes
due at the time of the conversion. The option may be exercised until
Mr. Suzuki is no longer owed accrued but unpaid salary. The accrued
but unpaid salary arose as a result of Mr. Suzuki agreeing to defer
his salary when the Company was not financially able to pay salaries
on a regular basis. The option contains anti-dilutive provisions in
the event of corporate capital reorganizations. An aggregate of
310,000 shares of the Company's common stock were subject to Mr.
Suzuki's option at October 31, 1997.
On August 1, 1993, the Company entered into a Stock Option Agreement
with Fred K. Suzuki, President, granting Mr. Suzuki an option to
purchase 3,000,000 shares of the Company's common stock at an option
price of $0.025 per share. This Stock Option Agreement was granted to
Mr. Suzuki in consideration of his loaning money to the Company on an
unsecured basis from time to time. The option contains anti-dilutive
provisions in the event of corporate capital reorganizations. As of
October 31, 1997, no portion of this option has been exercised.
The Company's common stock is traded in the over-the-counter market.
However, there is no established public trading market for such common
stock due to limited and sporadic trades. The Company's common stock
is not listed on a recognized market or stock exchange.
6. Income (Loss) Per Share:
Net income or (loss) per common share is computed using the weighted
average number of common shares outstanding during the period, after
giving effect to stock splits. Fully diluted earnings per share,
assuming exercise of outstanding options, is not presented since
exercise of the options would be anti-dilutive.
7. Lease Commitments:
In 1996, the Company entered into a new lease agreement for its
current facilities which expires January 31, 2001. The base rent
under the lease, of which 15% is allocated to Stevia Company, Inc.,
escalates over the life of the lease. Total rent payments for each
fiscal year are as follows:
Year ending April 30 Total Base Rent
1996 $11,000
1997 $66,733
1998 $68,200
1999 $68,567
2000 $69,300
2001 $51,975
Also included in the lease agreement are escalation clauses for the
lessor's increases in property taxes and other operating expenses.
The lease can be extended for an additional five year term.
8. Income Taxes:
At April 30, 1997, net operating loss carryforwards were available and
expire, if not used, as follows:
BIOSYNERGY, INC.
NOTES TO FINANCIAL STATEMENTS
Year Ending Net Operating
April 30, Losses
1998 $ 193,062
1999 677,671
2000 455,166
2001 449,142
2002 132,470
2003 85,822
2004 41,176
2006 160
2007 28,253
$ 2,062,922
The Company adopted Statement of Financial Accounting Standards (SFAS)
No. 109, "Accounting for Income Taxes" for the fiscal year ending
April 30, 1994 as required by SFAS No. 109. The effect, if any, of
adopting Statement No. 109 on pre-tax income from continuing
operations is not material. The Company has elected not to
retroactively adopt the provisions allowed in SFAS No. 109; however,
all provisions of the document have been applied since the beginning
of fiscal year 1994.
9. Major Customers:
Shipments to one customer accounted for approximately 33.72% of sales
during the 2nd Quarter of Fiscal 1998 and 32.32% of sales during the
six month period ending October 31, 1997. The outstanding receivable
from this customer was $27,454 at October 31, 1997.
10. Management's Plans:
Management of the Company recognizes the Company's ability to continue
as a going concern is subject to continued sales performance and the
ability of the Company to raise money, when needed. Therefore,
management intends to continue expanding the Company's marketing
efforts and to seek out financing opportunities, if necessary.
Item 2. MANAGEMENT ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
SALES/REVENUES
For the three month period ending October 31, 1997 ("2nd Quarter"), the net
sales decreased .69% or $926, and increased 3.33% or $8,838 during the six
month period ending October 31, 1997, as compared to net sales for the
comparative periods ending in 1996. This overall increase in sales is the
result of increased sales of a variety of the Company's products rather
than any single product. As of October 31, 1997, the Company had $1,118.30
in product back orders.
In addition to the above, the Company realized $300 of income as a result
of leasing a portion of its computer time to Stevia Company, Inc., an
affiliate, and $1,431 of miscellaneous income for the six month period
ending October 31, 1997.
INCOME/LOSS
The Company realized a net profit of $23,220 during the 2nd Quarter as
compared to a net profit of $30,691 for the comparative quarter of the
prior year. The company also realized a net profit of $60,723 for the six
month period ending October 31, 1997 as compared to a net profit of $66,167
during the same period in 1996. The decrease in net profit is due to a
decrease in sales during the 2nd Quarter and an increase in cost of sales
and operating charges and research and development expenses described
below.
As of April 30, 1997, the Company has incurred net operating losses
aggregating $2,062,922. As a result of net operating loss carryovers, no
income taxes were due for Fiscal 1997 and will unlikely be due for Fiscal
1998. See "FINANCIAL STATEMENTS" for the effect of the net operating loss
carryforwards on the Company's income tax position. The Tax Reform Act of
1986 will not alter the Company's net operating loss carryforward position,
and the net operating loss carryforwards will be available and expire, if
not used, as set forth in Footnote 8 of the "FINANCIAL STATEMENTS."
EXPENSES
GENERAL
The operating expenses incurred by the Company during the 2nd Quarter
increased overall by 5.04%, or $5,231, and increased by 4.77%, or $9,783
for the six month period ending October 31, 1997. These fluctuations were
not material to the operations of the Company. An explanation of each
category of expenses is included to assist the reader in reviewing the
operations of the Company during the periods indicated.
COST OF SALES AND OTHER OPERATING CHARGES
The cost of sales and other operating charges during the 2nd Quarter
increased by $5,924 and increased by $7,535 during the six month period
ending October 31, 1997 as compared to the same periods in 1996. As a
percentage of sales, the cost of sales and other operating charges were
38.51% during the 2nd Quarter and 33.77% for the same quarter ending in
1996, compared to 33.96% in 1996, and 35.62% during the six month period
ending October 31, 1997. The increase in cost of sales and operating
charges was due to the write-off of one production lot of product because
it was not within specifications. Otherwise, the cost of sales and
operating charges, as a percentage of sales, has not materially changed
during the last year, and is not expected to materially change in the
foreseeable future.
RESEARCH AND DEVELOPMENT
Research and development costs increased $1,287 or 15.36% during the 2nd
Quarter, as compared to the same quarter in 1996. These costs increased by
$2,661 or 17.19% during the six month period ending October 31, 1997 as
compared to the same period in 1996. These increased costs reflect non-
reoccurring expenses related to research for new technology applications,
but do not reflect changes in the Company's development policies. The
Company intends to continue to direct research and development to the
improvement of its current product line and to those new products which are
natural expansions of the current product line. The Company may also
increase its research and development activities to fulfill research and
development contracts for the development of products specifically designed
or a customer, which will generally be offset by research revenues.
MARKETING
Marketing costs for the 2nd Quarter decreased by $681 or 5.36%, as compared
to the quarter ending October 31, 1996, and decreased $3,008 or 11.02%
during the six month period ending October 31, 1997 as compared to the same
period in 1996. The additional expenses incurred by the Company during the
comparative periods in 1996 were related to the Company's participation in
several trade shows and reprinting certain product information brochures.
The Company intends to expend its marketing budget as resources become
available.
GENERAL AND ADMINISTRATIVE
General and administrative costs decreased by $1,271, or 3.35%, during the
2nd Quarter and increased by $2,656 or 3.68% during the six month period
ending October 31, 1997, as compared to the same periods in 1996. These
changes are not indicative of any trend, but only representative of normal
fluctuations in general and administrative expenses.
ASSETS/LIABILITIES
GENERAL
Since April 30, 1997, the Company's assets and liabilities have not
materially changed. The Company has experienced an increase in current
assets and a decrease in liabilities due to improved cash flow.
DUE FROM AFFILIATES
The Company was owed $288,491 by Stevia Company, Inc. ("Stevia"), an
affiliate, and $12,921 by F.K. Suzuki International, Inc. ("FKSI"), an
affiliate, at October 31, 1997. These affiliates owed $278,874 and $12,921
at April 30, 1997, respectively. These accounts primarily represent common
expenses which are charged by one company to the other for reimbursement.
These expenses include rent, salaries and benefits for common employees,
insurance and legal fees. These expenses are reviewed from time to time to
determine if reallocation is appropriate. See "FINANCIAL STATEMENTS."
These expenses are incurred in the ordinary course of business. As a
result of the increase in amounts due from affiliates, the Company has
reduced its own liquid resources. The Company intends to reverse this
trend by restricting the advances to and common expenses incurred on behalf
of Stevia and FSKI until these affiliates are in a position to reimburse
the Company.
CURRENT ASSETS/CURRENT LIABILITY RATIO
The ratio of current assets to current liabilities, 2.33 to 1, has improved
compared to 1.40 to 1 at April 30, 1997. Management believes the Company's
current asset/current liability ratio will be adequate for the Company's
current and foreseeable future operating needs provided sales remain at the
present level or improve.
WORKING CAPITAL/LIQUIDITY
During the six month period ending October 31, 1997, the Company
experienced an increase in working capital of $53,902. This is due to the
continuing profits of the Company during the six month period ending
October 31, 1997 and the use of the cash flow from operations to reduce
liabilities.
Management of the Company recognizes the Company's ability to continue as a
going concern is subject to maintaining and improving sales, profitable
operations, collection of accounts receivable, and the ability of the
Company to obtain capital, when needed, of which there is no assurance.
The Company intends to continue expanding its marketing efforts in thement
will seek out financing opportunities, including selling its common stock
to private investors. The Company does not have a working line of credit,
and there can be no assurance, nor is it anticipated, that the Company will
be able to obtain a working line of credit on acceptable terms in the near
future. The Company has not been refused goods or services from any of its
vendors.
Except for its operating working capital needs, the Company has no material
contingencies for which it must provide.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8K.
(a) The following exhibits are filed as a part of this report:
(3) Articles of Incorporation and By-laws (i)
(10) Material Contracts
(a) Deferred Compensation Option Agreement, dated January 31,
1990, between the Company and Fred K. Suzuki (ii)
(b) Stock Option Agreement, dated August 1, 1993, between the
Company and Fred K. Suzuki (iii)
(15) Letter dated December 9, 1997, regarding interim financial
information. (iv)
(27) Financial Data Schedule - P. E-1
(b) No Current Reports on Form 8K were filed during the period covered by
this Report.
(i) Incorporated by reference to a Registration Statement filed on
Form S-18 with the Securities and Exchange Commission, 1933 Act
Registration Number 2-38015C, under the Securities Act of 1933,
as amended, and Incorporated by reference, with regard to Amended
By-Laws, to the Company's Annual Report on Form 10K for fiscal
year ending April 30, 1986 filed with the Securities and Exchange
Commission.
(ii) Incorporated by reference to the Company's Annual Report on Form
10K for fiscal year ending April 30, 1990 filed with the
Securities and Exchange Commission.
(iii) Incorporated by reference to the Company's Annual Report on Form
10K for fiscal year ending April 30, 1994 filed with the
Securities and Exchange Commission.
(iv) This exhibit is included in this report as a part of the
Financial Statements, and is incorporated by reference herein.
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.
Biosynergy, Inc.
Date
Fred K. Suzuki
President, Chairman of the Board,
Chief Accounting Officer
and Treasurer
Date
Lauane C. Addis
Secretary, Corporate Counsel and
Director
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.
Biosynergy, Inc.
Date December 9, 1997 /s/ FRED K. SUZUKI /s/
Fred K. Suzuki
President, Chairman of the Board,
Chief Accounting Officer and
Treasurer
Date December 9, 1997 /s/ LAUANE C. ADDIS /s/
Lauane C. Addis
Secretary, Corporate Counsel and
Director
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10Q
Quarterly Report Pursuant to Section 13 or 15 (d)
of
THE SECURITIES AND EXCHANGE ACT OF 1934
For the period ending October 31, 1997
Commission File Number: 0-12459
BIOSYNERGY, INC.
(Exact name of registrant as specified in charter)
1940 East Devon Avenue
Elk Grove Village, IL 60007
(847) 956-0471
Address and telephone number of registrant's principal executive office or
principal place of business)
EXHIBITS
BIOSYNERGY, INC.
EXHIBIT INDEX
Page Number
Pursuant to
Sequential
Exhibit Numbering
Number Exhibit System
27 Financial Data Schedule E-1
BIOSYNERGY, INC.
[ARTICLE] 5
[LEGEND]
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
FINANCIAL STATEMENTS OF THE REGISTRANT FOR THE THREE MONTH PERIOD AND SIX
MONTH PERIOD ENDING OCTOBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
[LEGEND]
[/LEGEND]
<TABLE>
<S> <C>
[PERIOD-TYPE] 3-MOS 6-MOS
[FISCAL-YEAR-END] APR-30-1998 APR-30-1998
[PERIOD-END] JUL-31-1997 OCT-31-1998
[CASH] 28,541 28,541
[SECURITIES] 0 0
[RECEIVABLES] 78,126 78,126
[ALLOWANCES] 500 500
[INVENTORY] 44,192 44,192
[CURRENT-ASSETS] 154,926 154,926
[PP&E] 173,536 173,536
[DEPRECIATION] ( 163,828) (163,828)
[TOTAL-ASSETS] 495,652 495,652
[CURRENT-LIABILITIES] 66,494 66,494
[BONDS] 0 0
[COMMON] 632,663 632,663
[PREFERRED-MANDATORY] 0 0
[PREFERRED] 0 0
[OTHER-SE] ( 203,605) (203,605)
[TOTAL-LIABILITY-AND-EQUITY] 495,652 495,652
[SALES] 131,513 273,874
[TOTAL-REVENUES] 132,293 275,605
[CGS] 50,644 97,557
[TOTAL-COSTS] 50,644 97,557
[OTHER-EXPENSES] 21,675 42,415
[LOSS-PROVISION] 0 0
[INTEREST-EXPENSE] 121 242
[INCOME-PRETAX] 23,220 60,723
[INCOME-TAX] 3,483 10,181
[INCOME-CONTINUING] 0 0
[DISCONTINUED] 0 -INCOME>
23,220 60,723
[EPS-PRIMARY] .002 .004
[EPS-DILUTED] .002 .004
</TABLE>
E-1
