<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934.
For the Quarterly period ended March 31, 2000.
[ ] 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 0-12728
INTEGRAL VISION, INC.
(Exact name of registrant as specified in its charter)
Michigan 38-2191935
(State or other jurisdiction of (I.R.S. Employee
incorporation or organization) Identification Number)
38700 Grand River Avenue, 48335
Farmington Hills, Michigan
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (248) 471-2660
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 the filing
requirements for the past 90 days.
YES x NO
----- -----
The number of shares outstanding of the registrant's Common Stock, no par value,
stated value $.20 per share, as of April 30, 2000 was 9,024,901.
1
<PAGE> 2
PART I
FINANCIAL INFORMATION
CONSOLIDATED BALANCE SHEETS
INTEGRAL VISION, INC. AND SUBSIDIARY
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
(Unaudited)
-------------- ------------
(in thousands)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 284 $ 391
Accounts receivable, less allowance of $756,000
($820,000 in 1999) 2,390 3,883
Inventories 2,330 1,995
Costs and estimated earnings in excess of billings on
incomplete contracts 165 284
Current maturities of note receivable from sale of
Welding Controls division 3,036 1,716
Other current assets 274 309
-------- --------
TOTAL CURRENT ASSETS 8,479 8,578
PROPERTY, PLANT AND EQUIPMENT
Land and land improvements 363 363
Building and building improvements 3,738 3,740
Production and engineering equipment 2,668 2,669
Furniture and fixtures 877 872
Vehicles 143 145
Computer equipment 2,765 2,762
-------- --------
10,554 10,551
Less accumulated depreciation (6,501) (6,289)
-------- --------
4,053 4,262
OTHER ASSETS
Capitalized computer software development costs, less
accumulated amortization 4,119 4,327
Patents, less accumulated amortization 244 259
Note receivable from sale of Welding Controls division,
less unamortized discount and current maturities -- 1,563
Other 62 69
-------- --------
4,425 6,218
-------- --------
$ 16,957 $ 19,058
======== ========
</TABLE>
See notes to consolidated financial statements.
2
<PAGE> 3
CONSOLIDATED BALANCE SHEETS - CONTINUED
INTEGRAL VISION, INC. AND SUBSIDIARY
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
(Unaudited)
------------------------------------------
(in thousands)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 824 $ 1,546
Employee compensation 301 300
Accrued and other liabilities 679 887
Current maturities of long term debt 38 35
------------------- ---------------------
TOTAL CURRENT LIABILITIES 1,842 2,768
LONG-TERM DEBT, less current maturities 1,952 1,965
STOCKHOLDERS' EQUITY
Common stock, without par value, stated value $.20
per share; 15,000,000 shares authorized; 9,024,901
shares issued and outstanding 1,805 1,805
Additional paid-in capital 31,187 31,187
Retained-earnings deficit (19,182) (18,103)
Notes receivable from officers (627) (602)
Accumulated translation adjustment (20) 38
------------------- ---------------------
Total Stockholders' Equity 13,163 14,325
------------------- ---------------------
$16,957 $19,058
=================== =====================
</TABLE>
See notes to consolidated financial statements.
3
<PAGE> 4
CONSOLIDATED STATEMENTS OF OPERATIONS
INTEGRAL VISION, INC. AND SUBSIDIARY
<TABLE>
<CAPTION>
Three Months Ended March 31,
2000 1999
(Restated)
---------------------------------------
(Unaudited)
(In thousands, except per share data)
<S> <C> <C>
Net revenues $ 1,964 $ 1,698
Direct cost of sales 1,385 2,003
------------------ ------------------
Gross margin 579 (305)
Other costs and expenses:
Marketing 574 569
General and administrative 444 327
Engineering and development:
Expenditures 908 1,180
Allocated to capitalized software and direct
cost of sales (228) (339)
------------------ ------------------
Net engineering and development expenses 680 841
------------------ ------------------
Total costs and expenses 1,698 1,737
------------------ ------------------
Operating loss (1,119) (2,042)
Interest income 86
Interest expense (46) (245)
------------------ ------------------
Loss from continuing operations before income taxes (1,079) (2,287)
Provision (credit) for income taxes - -
------------------ ------------------
Loss from continuing operations (1,079) (2,287)
Income from discontinued Welding Controls operations - 894
------------------ ------------------
Net loss $ (1,079) $ (1,393)
================== ==================
Basic and diluted earnings per share:
Continuing operations $ (.12) $ (.25)
Discontinued operations - .10
------------------ ------------------
Net loss $ (.12) $ (.15)
================== ==================
Weighted average number of shares of common stock and
common stock equivalents, where applicable 9,025 9,025
================== ==================
</TABLE>
See notes to consolidated financial statements.
4
<PAGE> 5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
INTEGRAL VISION, INC. AND SUBSIDIARY
<TABLE>
<CAPTION>
Three Months Ended March 31,
2000 1999
(restated)
---------------------------------------
(Unaudited)
(in thousands)
<S> <C> <C>
OPERATING ACTIVITIES
Net loss $ (1,079) $ (1,393)
Income from discontinued operations (894)
----------------- -----------------
Loss from continuing operations (1,079) (2,287)
Adjustments to reconcile net loss from continuing operations to
net cash used in operating activities:
Depreciation and amortization 687 595
Changes in operating assets and liabilities of
continuing operations:
Accounts receivable 1,493 1,183
Inventories (335) (233)
Prepaid and other 124 (249)
Accounts payable and other current liabilities (930) 170
----------------- -----------------
NET CASH USED IN OPERATING ACTIVITIES (40) (821)
INVESTING ACTIVITIES
Payment received on note receivable 243
Increase in property and equipment (25) (323)
Investment in capitalized software (213) (279)
Other (4) 62
----------------- -----------------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 1 (540)
FINANCING ACTIVITIES
Repayments of mortgage note payable (10)
Proceeds from draws on revolving line of credit 1,154
----------------- -----------------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (10) 1,154
----------------- -----------------
EFFECT OF EXCHANGE RATE CHANGES (58) (12)
----------------- -----------------
DECREASE IN CASH (107) (219)
CASH AT BEGINNING OF PERIOD 391 566
----------------- -----------------
CASH AT END OF PERIOD $ 284 $ 347
================= =================
</TABLE>
See notes to consolidated financial statements.
5
<PAGE> 6
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
INTEGRAL VISION, INC. AND SUBSIDIARY
MARCH 31, 2000
(Unaudited)
Note A - Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-Q
and Article 10 of Regulation S-X. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. 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 month period ended March 31, 2000 are not necessarily indicative
of the results that may be expected for the year ended December 31, 2000.
For further information, refer to the consolidated financial statements and
notes thereto included in Integral Vision's Annual Report on Form 10-K for
the year ended December 31, 1999.
Note B - Sale of the Welding Division
On June 30, 1999, the Company completed an agreement to sell substantially
all the assets of its Welding Controls division for $25.7 million, net of
costs of the sale, for cash, the assumption of certain liabilities, and a
subordinated note. The interest bearing portion of the note, approximately
$1.9 million, carries an interest rate approximating prime plus 1% and
requires quarterly payments beginning on February 15, 2000, with a February
15, 2001 maturity date. The non-interest bearing portion of the note, $1.5
million, was discounted using an imputed interest rate of 9% and matures on
February 15, 2001. Additionally, in connection with the sale, Integral
Vision entered into an agreement to provide certain services to the
purchaser for a fee totaling $1.5 million, all of which was paid in cash.
These services included use of the Company's personnel, facilities and
software.
During the quarter ended December 31, 1999, the Company resolved certain
post closing adjustments with the purchaser of the former Welding Controls
division, which produced the additional gain of $2.1 million, recognized in
the quarter. Part of the resolution with the purchaser included an
agreement to pay amounts that previously had been contingent on shipments
to a certain customer. This accounted for approximately $1.5 million of
this additional gain recorded.
The results of operations for this segment have been reported separately as
discontinued operations in the Consolidated Statements of Operations for
the prior period presented.
<TABLE>
<CAPTION>
March 31,
1999
----------------
(unaudited)
(in thousands)
<S> <C>
Net revenues $ 7,128
Costs and expenses 6,234
----------------
Net income from discontinued
operations $ 894
================
</TABLE>
6
<PAGE> 7
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
INTEGRAL VISION, INC. AND SUBSIDIARY
Note C - Comprehensive Income
The components of comprehensive income (loss) for the three months ended
March 31, 2000 and 1999 are as follows:
<TABLE>
<CAPTION>
Three Months Ended
March 31,
2000 1999
--------------- -- -----------------
(unaudited)
(in thousands)
<S> <C> <C>
Net loss $ (1,079) $ (1,393)
Translation adjustments (58) (12)
--------------- -----------------
$ (1,137) $ (1,405)
=============== =================
</TABLE>
The components of accumulated comprehensive income (loss) at March 31, 2000
and December 31, 1999 are as follows:
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
(unaudited)
--------------- ---------------------
(in thousands)
<S> <C> <C>
Accumulated translation adjustments $ (20) $ 38
</TABLE>
Note D - Inventories
Inventories are stated at the lower of first-in, first-out cost or market,
and the major classes of inventories at the dates indicated were as
follows:
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
(Unaudited)
--------------------- ---------------------
(in thousands)
<S> <C> <C>
Raw materials $ 1,995 $1,502
Work-in-process 202 218
Finished goods 133 275
--------------------- ---------------------
$ 2,330 $1,995
===================== =====================
</TABLE>
Note E - Costs and Estimated Earnings in Excess of Billings on Incomplete
Contracts
Revenues on long-term contracts are recognized using the percentage of
completion method. The effects of changes to estimated total contract costs
are recognized in the period determined and losses, if any, are recognized
fully when identified. Costs incurred and earnings recognized in excess of
amounts billed are classified under current assets as costs and estimated
earnings in excess of billings on incomplete contracts. Long-term contracts
include a relatively high percentage of engineering costs and are generally
less than one year in duration.
7
<PAGE> 8
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
INTEGRAL VISION, INC. AND SUBSIDIARY
Note E - Costs and Estimated Earnings in Excess of Billings on Incomplete
Contracts - Continued
Activity on long-term contracts is summarized as follows:
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
(unaudited)
----------------- ---------------------
(in thousands)
<S> <C> <C>
Contract costs to date $ 72 $ 500
Estimated contract earnings 208 863
----------------- ---------------------
280 1,363
Less billings to date 115 1,079
----------------- ---------------------
Costs and estimated earnings in excess of billings on
incomplete contracts $ 165 $ 284
================= =====================
</TABLE>
Note F - Earnings per Share
The following table sets forth the computation of basic and diluted earnings
per share:
<TABLE>
<CAPTION>
Three Months Ended March 31,
2000 1999
--------------------------------------------
(unaudited)
(in thousands, except per share data)
<S> <C> <C>
NUMERATOR FOR BASIC AND DILUTED EARNINGS PER
SHARE - INCOME (LOSS) AVAILABLE TO COMMON
STOCKHOLDERS
Loss from continuing operations $ (1,079) $ (2,287)
Income from discontinued Welding operations 894
------------------ ----------------------
Net loss $ (1,079) $ (1,393)
*there was no effect of dilutive securities see below
DENOMINATOR FOR BASIC AND DILUTED EARNINGS PER
SHARE - WEIGHTED AVERAGE SHARES 9,025 9,025
*there was no effect of dilutive securities see below
BASIC AND DILUTED EARNINGS PER SHARE:
Continuing operations $ (.12) $ (.25)
Discontinued Welding operations .10
------------------ ----------------------
Net loss $ (.12) $ (.15)
================== ======================
</TABLE>
Warrants and options outstanding were not included in the computation of
diluted earnings per share because the inclusion of these options would
have an antidilutive effect. For additional disclosures regarding stock
options and warrants see Note G.
8
<PAGE> 9
Note G - Stock Options and Warrants
At March 31, 2000, there were options outstanding to purchase 1,030,200
shares of common stock at prices ranging from $1.07 to $9.25 per share and
warrants outstanding to purchase 1,400,000 shares at $6.86 per share.
Note H - Operations by Geographic Area
The following presents information by geographic area:
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
(unaudited)
----------------- --------------------
(in thousands)
<S> <C> <C>
Identifiable assets:
United States $ 18,197 $ 21,556
United Kingdom 2,595 1,337
Eliminations (3,835) (3,835)
----------------- --------------------
$ 16,957 $ 19,058
================= ====================
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended
March 31,
2000 1999
------------------ -------------------
(unaudited)
(in thousands)
<S> <C> <C>
Net revenues from unaffiliated customers:
United States $ 841 $ 1,377
United Kingdom 1,123 321
------------------ -------------------
$ 1,964 $ 1,698
================== ===================
Earnings (loss) from continuing operations before
income taxes:
United States $(1,262) $(1,861)
United Kingdom 183 (426)
================== ===================
$(1,079) $(2,287)
================== ===================
Depreciation and amortization expense:
United States $ 587 $ 502
United Kingdom 100 93
------------------ -------------------
$ 687 $ 595
================== ===================
Capital expenditures:
United States $ 25 $ 320
United Kingdom - 3
------------------ -------------------
$ 25 $ 323
================== ===================
Net revenues by geographic area:
North America* $ 681 $ 1,089
Europe 1,106 325
Asia 177 284
------------------ -------------------
$ 1,964 $ 1,698
================== ===================
</TABLE>
* Countries that are considered individually material (more than 10% of net
revenues) all others are included in North America and in total are
considered immaterial.
9
<PAGE> 10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
INTEGRAL VISION, INC. AND SUBSIDIARY
MARCH 31, 2000
RESULTS OF OPERATIONS
Net revenues from continuing operations increased $266,000 to $2.0 million in
the first quarter of 2000 from $1.7 million in the first quarter of 1999. The
increase resulted primarily from increased sales of the Company's liquid crystal
inspection (LCI) and disc identification/print inspection (CDiD/CDiP) products.
Costs of goods sold decreased as a percentage of sales to 70.5% in the first
quarter of 2000 compared to 118% in the first quarter of 1999. The gross margin
in 1999 was negative primarily due to the fact that the sales volume was not
sufficient to cover the fixed charges, depreciation and amortization, included
in direct cost of sales. In 2000, the gross margin was positively affected by an
increase in sales volume and a change in product mix. This was primarily
attributable to the fact that sales of the Company's liquid crystal inspection
(LCI) and disc identification/print inspection (CDiD/CDiP) products represented
a higher percentage of total sales and generally have a higher contribution
margin than the Company's disc scanner products, which represented the highest
percentage of total sales in the first quarter of 1999.
Marketing costs were comparable between the periods as the Company continued
marketing on a basis similar to the past. Relationships with distribution and
marketing partners are not expected to dramatically affect this expense
category.
The general and administrative amounts reported in 2000 were 35.8% higher than
the amounts reported in 1999 primarily due to the fact that a portion of the G&A
was allocated to the Welding Controls division in 1999. The actual expenditures
in this category decreased in 2000 compared to 1999.
Engineering and development expenses have decreased in the 2000 quarter
following reductions in resources allocated to this function compared to 1999.
The completion of several development projects was the primary reason for the
resource reduction.
On June 30, 1999, the Company completed an agreement to sell substantially all
the assets of its Welding Controls division for $25.7 million, net of costs of
the sale, for cash, the assumption of certain liabilities, and a subordinated
note. The interest bearing portion of the note, approximately $1.9 million,
carries an interest rate approximating prime plus 1% and requires quarterly
payments beginning on February 15, 2000, with a February 15, 2001 maturity date.
The non-interest bearing portion of the note, $1.5 million, was discounted using
an imputed interest rate of 9% and matures on February 15, 2001. Additionally,
in connection with the sale, Integral Vision entered into an agreement to
provide certain services to the purchaser for a fee totaling $1.5 million, all
of which was paid in cash. These services included use of the Company's
personnel, facilities and software.
During the quarter ended December 31, 1999, the Company resolved certain post
closing adjustments with the purchaser of the former Welding Controls division,
which produced the additional gain of $2.1 million, recognized in the quarter.
Part of the
10
<PAGE> 11
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS - CONTINUED
INTEGRAL VISION, INC. AND SUBSIDIARY
resolution with the purchaser included an agreement to pay amounts that
previously had been contingent on shipments to a certain customer. This
accounted for approximately $1.5 million of this additional gain recorded.
LIQUIDITY AND CAPITAL RESOURCES
Operating activities used $40,000 in cash for the quarter. The operating loss,
an increase in inventories, and a reduction in accounts payable were the primary
uses of the cash. A reduction in accounts receivable partially offset the cash
used in operating activities.
Investing activities included the receipt of the first payment due on the note
receivable that resulted from the sale of the welding controls division which
was partially offset by investments in software development.
It is expected that the Company's current resources, including the receipt of
payments on the outstanding note receivable and cash provided by operating
activities, will be sufficient to support our cash flow needs over the next
twelve months.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKS
The Company is exposed to market risk stemming from changes in foreign exchange
rates, interest rates and prices of inventory purchased for assembly into
finished products. Changes in these factors could cause fluctuations in earnings
and cash flows. In the normal course of business, exposure to interest rates is
managed by fixing the interest rates on the Company's long term debt whenever
possible. The Company does not generally enter into long-term purchase contracts
but instead purchases inventory to fill specific sales contracts thereby
minimizing risks with respect to inventory price fluctuations.
Foreign Exchange Rates - The Company's location outside the US is in the United
Kingdom. This is a sales office with net non-current assets that are not
significant. On a consolidated basis the Company denominates sales in the
following currencies:
- Japanese Yen
- Pound Sterling
- French Francs
- Euros
In Management's opinion, as the currencies of Western Europe and the UK are
generally stable; there is no significant exposure to losses due to currency
fluctuations. However, because the Yen has not been stable over the past several
years, the Company does enter into forward sales contracts equal to the future
amount of the Yen to be received at the time the order is accepted. These
hedging transactions are on an order by order basis and at no time are they
speculative in nature. At March 31, 2000, the Company had no open positions.
11
<PAGE> 12
PART II
OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit
Number Description of Document
3.1 Articles of Incorporation, as amended (filed as Exhibit 3.1 to
the registrant's Form 10-K for the year ended December 31, 1995,
SEC file 0-12728, and incorporated herein by reference).
3.2 Bylaws of the Registrant, as amended (filed as Exhibit 3.2 to the
registrant's Form 10-K for the year ended December 31, 1994, SEC
file 0-12728, and incorporated herein by reference).
4.1 Note and Warrant Purchase Agreement (filed as Exhibit 4.1 to the
registrants Form 8-K dated July 15, 1997, SEC file 0-12728, and
incorporated herein by reference).
4.3 Form of Integral Vision, Inc. Common Stock Purchase Warrant
Certificate (filed as Exhibit 4.3 to registrants Form 8-K dated
July 15, 1997, SEC file 0-12728, and incorporated herein by
reference).
10.1 Incentive Stock Option Plan of the Registrant as amended (filed
as Exhibit 10.4 to the registrant's Form S-1 Registration
Statement effective July 2, 1985, SEC File 2-98085, and
incorporated herein by reference).
10.2 Second Incentive Stock Option Plan (filed as Exhibit 10.2 to the
registrant's Form 10-K for the year ended December 31, 1992, SEC
File 0-12728, and incorporated herein by reference).
10.3 Amendment to Integral Vision, Inc. Incentive Stock Option Plan
dated May 10, 1993 (filed as Exhibit 10.3 to the registrant's
Form 10-K for the year ended December 31, 1993, SEC File 0-12728,
and incorporated herein by reference).
10.4 Non-qualified Stock Option Plan (filed as Exhibit 10.3 to the
registrant's Form 10-K for the year ended December 31, 1992, SEC
File 0-12728, and incorporated herein by reference).
10.5 Integral Vision, Inc. 1999 Employee Stock Option Plan (filed as
Exhibit 10.5 to the registrant's Form 10-Q for the quarter ended
June 30, 1999, and incorporated herein by reference).
12
<PAGE> 13
PART II
OTHER INFORMATION (CONTINUED)
10.16* Patent License Agreement dated October 4, 1995 by and between
Integral Vision, Inc. and Square D Company (filed as Exhibit
10.24 to the registrant's Form 10-Q for the quarter ended
September 30, 1995, SEC File 0-12728, and incorporated herein by
reference).
10.32 Asset Sale Purchase Agreement between Medar, Inc. and Weltronic
(filed as exhibit to the registrants Preliminary Schedule 14A -
Rule 14A-101 dated May 6, 1999 and incorporated herein by
reference.)
10.33 Post Closing Adjustment and Settlement Agreement between Integral
Vision, Inc. and Weltronic/Technitron, Inc. (filed as exhibit
10.33 to the registrant's Form 10-K for the year ended December
31, 1999, SEC file 0-12728, and incorporated herein by
reference).
27* Financial Data Schedule
(b) There were no reports on Form 8-K filed in the quarter ended
March 31, 2000.
*Filed herewith
13
<PAGE> 14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INTEGRAL VISION, INC.
Date: May 12, 2000 /S/ CHARLES J. DRAKE
------------------- --------------------------------
Charles J. Drake, President &
Chairman of the Board (Principal
Executive Officer)
Date: May 12, 2000 /S/ VINCENT SHUNSKY
------------------- --------------------------------
Vincent Shunsky, Acting Chief
Financial Officer, Treasurer and
Director (Principal Financial and
Accounting Officer)
14
<PAGE> 15
Exhibit Index
-------------
<TABLE>
<CAPTION>
Exhibit No. Description
- ----------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 2000, AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS AND NOTES THERETO.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 284
<SECURITIES> 0
<RECEIVABLES> 3,146
<ALLOWANCES> 756
<INVENTORY> 1,995
<CURRENT-ASSETS> 8,479
<PP&E> 10,554
<DEPRECIATION> 6,501
<TOTAL-ASSETS> 16,957
<CURRENT-LIABILITIES> 1,842
<BONDS> 1,952
0
0
<COMMON> 1,805
<OTHER-SE> 11,358
<TOTAL-LIABILITY-AND-EQUITY> 16,957
<SALES> 1,964
<TOTAL-REVENUES> 1,964
<CGS> 1,385
<TOTAL-COSTS> 3,083
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 46
<INCOME-PRETAX> (1,079)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,079)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,079)
<EPS-BASIC> (0.12)
<EPS-DILUTED> (0.12)
</TABLE>
