<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
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 0-12541
SISCOM, INC.
---------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Colorado 84-0899779
- --------------------------------- ------------------------------
(State or other jurisdiction IRS Employer
of incorporation or organization) Identification Number
7464 Arapahoe Avenue, Suite B-17, Boulder, Colorado 80303
----------------------------------------------------------------------
(Address of Principal Offices) (Zip Code)
Registrant's telephone number, including area code: (303) 449-0442
---------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report.)
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. [X] Yes [ ] No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING
THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 of 15 (d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. [ ] Yes [ ] No
APPLICABLE ONLY TO CORPORATE ISSUERS:
As of May 15, 1998, 5,097,687 shares of Common Stock and 5,250,000 shares of
Preferred Stock of the Registrant were outstanding.
Transitional Small Business Disclosure Format (Check One):
[ ] Yes [X] No
<PAGE>
<PAGE>
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of March 31, 1998 (unaudited) and
June 30, 1997
Consolidated Statements of Operations (Unaudited) for the Three
Months Ended March 31, 1998 and 1997 and for the Nine Months
Ended March 31, 1998 and 1997.
Consolidated Statements of Cash Flows (Unaudited) for the Nine
Months Ended March 31, 1998 and 1997
Notes to Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
<PAGE>
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
--------------------
The interim unaudited financial statements have been prepared by SISCOM, Inc.
("SISCOM" or the "Company") and, in the opinion of management, reflect all
material adjustments which are necessary to a fair presentation of the
financial position, results of operations and cash flows for the interim
periods presented. Except as otherwise noted, such adjustments consisted only
of normal recurring items. Certain information and footnote disclosure made
in the Company's last annual report on Form 10-KSB have been condensed or
omitted for the interim statements. These statements should be read in
conjunction with the financial statements and notes thereto included in the
Company's Annual Report on Form 10-KSB for the year ended June 30, 1997. The
results of the interim periods are not necessarily indicative of results which
may be expected for any other interim period or for the full year.
Forward-Looking Statements
- --------------------------
In addition to historical information, this Quarterly Report contains
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, and are thus prospective. The forward-looking
statements contained herein are subject to certain risks and uncertainties
that could cause actual results to differ materially from those reflected in
the forward-looking statements. Factors that might cause such a difference
include, but are not limited to, competitive pressures, changing economic
conditions, those discussed in the Section entitled "Management's Discussion
and Analysis of Financial Condition and Results of Operations," and other
factors, some of which will be outside the control of the Company. Readers
are cautioned not to place undue reliance on these forward-looking statements,
which reflect management's analysis only as of the date hereof. The Company
undertakes no obligation to publicly revise these forward-looking statements
to reflect events or circumstances that arise after the date hereof. Readers
should refer to and carefully review the information in future documents the
Company files with the Securities and Exchange Commission.
<PAGE>
<PAGE>
SISCOM, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
As of As of
March 31, June 30,
1998 1997
------------- -------------
(Unaudited)
<S> <C> <C>
ASSETS
-------
CURRENT ASSETS:
Cash and cash equivalents $ 270,900 $ 171,300
Receivables:
Trade, less allowance for
doubtful accounts of $10,000 137,000 218,100
Inventory 61,900 27,900
Prepaid expenses and other 3,400 1,200
------------- -------------
Total current assets 473,200 418,500
PROPERTY AND EQUIPMENT:
Computer equipment 880,100 681,100
Office Equipment, Furniture and Other 60,500 59,300
Less accumulated depreciation (550,100) (448,000)
------------- -------------
Net property and equipment 390,500 292,400
SOFTWARE DEVELOPMENT COSTS (net of
accumulated amortization of $2,397,500
and $2,226,200) 432,000 358,900
OTHER ASSETS 3,600 3,600
------------- -------------
TOTAL ASSETS $ 1,299,300 $ 1,073,400
============= =============
(continued)
</TABLE>
See accompanying notes to these financial statements.
<PAGE>
<PAGE>
SISCOM, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
As of As of
March 31, June 30,
1998 1997
------------- -------------
(Unaudited)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
----------------------------------------
CURRENT LIABILITIES:
Accounts payable $ 62,600 $ 37,400
Accrued liabilities and other 38,600 42,600
Unearned revenue 114,400 181,000
------------- -------------
Total current liabilities 215,600 261,000
MINORITY INTEREST 1,700 2,200
STOCKHOLDERS' EQUITY:
Preferred stock, no par value;
100,000,000 shares authorized;
issued 5,250,000 shares 1,500,000 1,000,000
Common stock, no par value;
100,000,000 shares authorized:
issued 5,097,687 shares 1,938,900 1,938,900
Accumulated deficit (2,356,900) (2,128,700)
------------- -------------
Total stockholders' equity 1,082,000 810,200
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,299,300 $ 1,073,400
============= =============
</TABLE>
See accompanying notes to these financial statements.
<PAGE>
<PAGE>
SISCOM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
FOR THE THREE
MONTHS ENDED
MARCH 31,
------------------------------
1998 1997
------------- -------------
<S> <C> <C>
NET REVENUES:
Software and related services $ 118,400 $ 234,700
Hardware - 300
Other Revenue - -
------------- -------------
118,400 235,000
COSTS AND EXPENSES:
Costs of sales 111,500 89,600
Operating, general and administrative 182,200 196,800
Depreciation 36,900 18,900
Other expense (income) (4,900) (5,600)
Minority interest (200) (100)
------------- -------------
325,500 299,600
------------- -------------
NET INCOME (LOSS) $ (207,100) $ (64,600)
============= =============
NET INCOME (LOSS) PER COMMON SHARE
(basic and diluted) * $ (0.01)
============= =============
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 5,097,687 5,067,687
============= =============
* Less than $.01 per share.
</TABLE>
See accompanying notes to these financial statements.<PAGE>
<PAGE>
SISCOM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
FOR THE NINE
MONTHS ENDED
MARCH 31,
------------------------------
1998 1997
------------- -------------
<S> <C> <C>
NET REVENUES:
Software and related services $ 670,400 $ 637,500
Hardware 208,600 113,100
Other Revenue 83,200
------------- -------------
962,200 750,600
COSTS AND EXPENSES:
Costs of sales 605,700 340,400
Operating, general and administrative 488,100 418,900
Depreciation 102,000 45,300
Other expense (income) (4,900) (43,600)
Minority interest (500) (800)
------------- -------------
1,190,400 760,200
------------- -------------
NET INCOME (LOSS) $ (228,200) $ (9,600)
============= =============
NET INCOME (LOSS) PER COMMON SHARE * $ (0.00)
============= =============
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 5,097,687 5,067,687
============= =============
* Less than $.01 per share
</TABLE>
See accompanying notes to these financial statements.
<PAGE>
<PAGE>
SISCOM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
FOR THE NINE
MONTHS ENDED
MARCH 31,
------------------------------
1998 1997
------------- -------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (228,200) $ (9,600)
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and Amortization 273,400 185,400
Settlement of Judgement - (26,700)
Equipment for Services and
Discounts - 26,900
Minority Interest (500) (800)
Changes in operating assets
and liabilities:
Receivables 81,100 (172,000)
Inventories (34,000) (99,500)
Prepaid expenses and other (2,200) (22,300)
Accounts payable 25,200 (129,000)
Accrued liabilities and other (4,000) (127,600)
Unearned revenue (66,600) (28,600)
------------- -------------
Net cash provided by operating
activities 44,200 404,800
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (200,200) (172,800)
Capitalized software development
costs (244,400) (172,300)
------------- -------------
Net cash used in investing
activities (444,600) (345,100)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of preferred
stock 500,000 1,000,000
------------- -------------
Net cash provided by financing
activities 500,000 1,000,000
Net increase in cash 99,600 250,100
------------- -------------
CASH AND CASH EQUIVALENTS,
at beginning of period 171,300 89,000
CASH AND CASH EQUIVALENTS,
at end of period $ 270,900 $ 339,100
============= =============
</TABLE>
See accompanying notes to these financial statements.<PAGE>
<PAGE>
SISCOM, INC.
NOTES TO FINANCIAL STATEMENTS
(Information for the Period Subsequent
to June 30, 1997 is Unaudited)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES:
------------------------------------------
GENERAL - SISCOM, f/k/a Satellite Information Systems Company, was
incorporated in the State of Colorado on September 29, 1982. SISCOM
currently operates as a software development company that provides
computer based products and services to the electronic media and sports
industry. In 1995, the Company formed a new subsidiary, called Event
Marketing Systems International, Inc. ("EMSI"). Operations of EMSI were
insignificant in 1996 and 1997. The consolidated financial statements
include the accounts of SISCOM and EMSI. SISCOM and EMSI are
collectively referred to as the Company. All significant intercompany
accounts and transactions have been eliminated in consolidation.
UNAUDITED INFORMATION - The balance sheet as of March 31, 1998 and the
statements of operations for the three months and nine months ended March
31, 1998 and 1997 were taken from the Company's books and records without
audit. However, in the opinion of management, such information includes
all adjustments (consisting only of normal recurring accruals) which are
necessary to properly reflect the financial position of the Company as of
March 31, 1998 and the results of operations for the three months and
nine months ended March 31, 1998 and 1997. The results of operations for
the period ended March 31, 1998 will not necessarily be indicative of the
operating results for the full year.
UNEARNED REVENUE - Unearned revenue primarily represents payments
received on deferred maintenance contracts that has not been earned.
These amounts are amortized into revenue on a monthly basis, using the
straight-line method, over the life of the contract.
INCORPORATION BY REFERENCE - The Company has elected to incorporate by
reference the financial statement disclosures as included in its
previously filed Form 10-KSB. Reference should be made in reviewing this
10-QSB to the disclosures contained in the Company's Annual Report on
Form 10-KSB for the fiscal year ended June 30, 1997.
Certain disclosures related to the current period financial information
are included below.
2. STOCKHOLDERS EQUITY:
--------------------
During the current period ending March 31, 1998 the Company entered into
agreements with two investors, who purchased through a sale of Series A-1
convertible preferred stock, 625,000 shares each, for a total investment
of $500,000. The two new investors are subsidiaries of the current
holder of 4,000,000 shares of the Company's Series A Convertible
Preferred Stock. The new shares carry the same rights and preferences as
the previously issued Series A Convertible Preferred Stock, as disclosed
in the Company's Annual Report on Form 10-KSB for the fiscal year ended
June 30, 1997.
<PAGE>
<PAGE>
PART I.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
-----------------------------------------------------------------
The following discussion and analysis should be read in conjunction with the
Financial Statements and Notes thereto appearing elsewhere in this report.
RESULTS OF OPERATIONS - THREE MONTHS ENDED MARCH 31, 1998 COMPARED TO THE
THREE MONTHS ENDED MARCH 31, 1997 (UNAUDITED)
- --------------------------------------------------------------------------
During the quarter ended March 31, 1998, SISCOM generated revenue of $118,400
with a resulting net loss of $(207,100) as compared to revenue of $253,000
and a net loss of $(64,600) during the same quarter of the previous fiscal
year.
Revenue
- -------
The following table outlines the Company's revenue mix for the three months
ended March 31, 1998 and 1997 respectively.
<TABLE>
<CAPTION>
Three Months Ended March 31,
------------------------------------
1998 1997
---------------- ---------------
<S> <C> <C> <C> <C>
Product Sales
Software sales $ 22,000 19% $125,200 53%
Hardware sales - - 300 -
Software Services 96,400 81 109,500 47
---------- ----- --------- -----
Total Revenue $ 118,400 100% $235,000 100%
---------- ----- --------- -----
</TABLE>
Product sales include the sale of proprietary software and hardware to the
broadcast, cable and sports industries. The Company's principal product
offerings include NewsPro(-Registered Mark-), an electronic newsroom
management system and CDSS(-TM-), a statistical analysis system for
professional basketball. In addition to CDSS(-TM-), Video Logging and
Retrieval, NonLinear Video Editing, and MPEG Video are available for the
professional sports industry.
Software sales for the quarter ended March 31, 1998 decreased $103,200, from
the prior year quarter ended March 31, 1997.
SISCOM's hardware sales were not significant for the quarters ended March 31,
1998 and March 31, 1997. Gross margin on hardware has traditionally been
significantly less than the gross margin on software and services. Management
believes that future hardware provider relationships and sales will offer the
Company both access to leading technology and leverage to expand the sale of
the Company's software products and services. Although, the Company will
continue to provide hardware as a part the software sale to its customers, the
focus is to direct resources toward continued development and sales of its
higher margin software products.
Management believes that SISCOM has consciously served a niche market of
specialized customers. Historically, the Company has had to rely on revenues
from a few substantial installations to large customers such as the NBA. This
reliance has resulted from the Company's limited working capital rather than
any limitations in the scope of the potential markets and customers for the
Company's products. As the Company continues to identify, develop and market
new solutions for existing and new opportunities, management believes that the
Company's dependence on revenues from a few large customers will continue to
decrease.
Software services consists primarily of NewsPro(-Registered Mark-) maintenance
revenue. Software services revenue decreased from $109,500 for the quarter
ended March 31, 1997 to $96,400 for the quarter ended March 31, 1998. As the
Company continues to experience growth from its sales to the sports industry,
maintenance support revenue has decreased as a percentage of overall revenue.
The Company believes that the market potential for its proprietary software in
the sports industries has supported this strategic redirecting of resources.
NewsPro(-Registered Mark-) maintenance revenue remains an important component
of software services at 81% of total revenue for the current quarter.
Costs and Expenses
- ------------------
The following table outlines the cost of sales components for the three months
ended March 31, 1998 and March 31, 1997.
<TABLE>
<CAPTION>
Quarters Ended March 31,
----------------------------------
1998 1997
---------------- ---------------
<S> <C> <C> <C> <C>
Direct labor and materials $ 44,900 40% $ 31,500 35%
Software Amortization 52,800 48 57,900 65
Other cost of sales 13,800 12 200 -
---------- ----- --------- -----
Total Cost of Sales $ 111,500 100% $ 89,600 100%
---------- ----- --------- -----
</TABLE>
Cost of sales and services includes components for hardware sales, direct
labor and materials used in the manufacture of software, amortization of
capitalized software costs, and other expenses incurred in the generation of
revenue.
For the quarter ended March 31, 1998, the gross margin on sales was $6,900
compared with $145,400 for the same quarter of the prior fiscal year.
The cost of direct labor and materials includes employee hours spent contract
programming, where applicable, installation and supporting the Company's
products, as well as any materials and supplies directly used in the process.
The total cost of direct labor increased $13,400 or 42% between the quarters
ended March 31, 1998 and March 31, 1997.
There was a slight decrease in amortization of capitalizable costs of
approximately $5,000 between the quarters ended March 31, 1998 and 1997. The
net decrease is the result of some capitalized assets becoming fully amortized
since the prior fiscal year. Management anticipates continued emphasis on
software development as it responds to the ongoing requests of existing and
new customers across markets. Generally, the Company amortizes software
development costs straight line over three (3) years.
RESULTS OF OPERATIONS - NINE MONTHS ENDED MARCH 31, 1998 COMPARED TO THE NINE
MONTHS ENDED MARCH 31, 1997. (UNAUDITED)
- --------------------------------------------------------------------------
During the nine months ended March 31, 1998, SISCOM generated revenue of
$962,200 with a resulting net loss of $(228,200) as compared to revenue of
$750,600 and a net loss of $(9,600) during the same period of the previous
fiscal year.
Revenue
- -------
The following table outlines the Company's revenue mix for the nine months
ended March 31, 1998 and 1997 respectively.
<TABLE>
<CAPTION>
Nine Months Ended March 31,
------------------------------------
1998 1997
---------------- ---------------
<S> <C> <C> <C> <C>
Product Sales
Software sales $ 371,200 39% $309,800 41%
Hardware sales 208,600 22 113,100 15
Software Services 299,200 31 327,700 44
Other Revenue 83,200 9 - 0
---------- ----- --------- -----
Total Revenue $ 962,200 100% $750,600 100%
---------- ----- --------- -----
</TABLE>
For the nine months ended March 31, 1998 software revenue increased by $61,400
in comparison to the nine months ended March 31, 1997. This increase in
software revenue was the result of increased sales of the Company's principal
products, CDSS(-TM-) and live logging, along with video logging and retrieval
software to the sports industries, and specifically to NBA teams.
SISCOM's hardware sales increased $95,500 compared to the nine months ended
March 31, 1997. The increase is hardware sales was primarily a result of the
Company's ability to combine CDSS(-TM-) with its other software products
complemented with FAST hardware. With increased sales to NBA teams, this
current year's basketball season has provided the Company with the ability to
establish itself in the sports industry as a known technology provider within
the NBA.
Gross margins on hardware have traditionally been significantly less than the
gross margin on software and services. Management believes that certain
hardware provider relationships will offer the Company both access to leading
technology and leverage to expand the sale of the Company's software products
and services along with hardware components.
Maintenance revenue decreased by $28,500 in comparison with the same quarter
of the prior year. As the Company continues to experience growth from its
sales to the sports industry, maintenance support revenue has decreased as a
percentage of overall revenue. Although NewsPro(-Registered Mark-) maintenance
revenue remains a very important component of software sales, at 31% of total
revenue. The Company believes NewsPro(-Registered Mark-) maintenance revenue
will continue to decrease as a percentage of total software sales and service
revenue.
Costs and Expenses
- ------------------
The following table outlines the cost of sales components for the nine months
ended March 31, 1998 and March 31, 1997.
<TABLE>
<CAPTION>
Nine Months Ended March 31,
----------------------------------
1998 1997
---------------- ---------------
<S> <C> <C> <C> <C>
Hardware cost of sales $ 238,600 39% $ 80,900 24%
Direct labor and materials 148,500 25 111,800 33
Software Amortization 171,400 28 147,700 43
Other 47,200 8 - -
---------- ----- --------- -----
Total Cost of Sales $ 605,700 100% $340,400 100%
---------- ----- --------- -----
</TABLE>
For the period ended March 31, 1998 costs of sales and services was 63% of
total revenue compared with 45% for the same period in the prior year. Gross
margins were 37% and 55%, respectively. The gross margin decrease for the
current year is the result of the following: increased hardware costs,
increased direct labor costs, increased amortization costs due to an increase
in capitalized software and other costs.
The cost of direct labor and materials includes employee hours spent contract
programming, where applicable, installation and supporting the Company's
products as well as any materials and supplies directly used in the process.
The total cost of direct labor increased $36,700 between the periods ended
March 31, 1997 and 1998. This increase in direct labor between periods was
primarily due to the replacement of one support employee, and increased labor
costs.
LIQUIDITY AND CAPITAL RESOURCES - MARCH 31, 1998 (UNAUDITED) COMPARED TO JUNE
30, 1997
- ---------------------------------------------------------------------------
SISCOM's current working capital surplus, which represents current assets
minus current liabilities, increased during the nine months ended March 31,
1998 to $257,600 from $157,500 at year end.
The Company's primary uses of cash and working capital for the nine months
ended March 31, 1998 were additions to capitalized software of approximately
$244,000 and purchases of fixed assets and inventory of $200,200 and $34,000
respectively. This increase in capital assets included additions and upgrades
to the computer equipment used in software development and customer support.
Inventory additions represented purchases of equipment for work on existing
purchase orders and contracts.
Sources of working capital were proceeds from an issuance of preferred stock
(see footnotes to financial statements) in the amount of $500,000, and
increases in accounts receivable of $81,100 and accounts payable of $25,200.
Such increases in these accounts are typically the result of timing. Also
related to timing, is the decrease in unearned revenue of $66,600. This
change in unearned revenue is attributable to the timing of annual renewals on
maintenance contracts, or lack of renewals in this case, and the resulting
reserve for unearned revenue.
Management believes that inflation has not had a material impact on its
results of operations.
Subsequent Events
- -----------------
Management knows of no trends, or other demands, commitments, events or
uncertainties that will result in, or that are reasonably likely to result in,
a material impact on the Company's liquidity or capital resources or on the
income or expenses of the Company.<PAGE>
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Neither the Company nor any of its management in their capacities as
such is the subject of any pending material legal proceedings.
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of security holders during the
fiscal quarter ended March 31, 1998.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
Exhibits:
Exhibit 27 Financial Data Schedule
Reports on Form 8-K
None
<PAGE>
<PAGE>
SIGNATURES
In accordance with 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.
SISCOM, INC.
Date: May 19, 1998 By: /s/ Michael J. Ellis
------------ --------------------------------------
Michael J. Ellis, President, Chairman
and Chief Executive Officer
Date: May 19, 1998 By: /s/ Mark S. Boledovich
------------ --------------------------------------
Mark S. Boledovich, Acting Chief
Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED STATEMENT OF OPERATIONS FOUND ON
PAGES 3-5 OF THE COMPANY'S FORM 10-QSB FOR THE NINE MONTHS ENDED MARCH 31, 1998,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> MAR-31-1998
<CASH> 270,900
<SECURITIES> 0
<RECEIVABLES> 147,000
<ALLOWANCES> (10,000)
<INVENTORY> 61,900
<CURRENT-ASSETS> 473,200
<PP&E> 940,600
<DEPRECIATION> (550,100)
<TOTAL-ASSETS> 1,299,300
<CURRENT-LIABILITIES> 215,600
<BONDS> 0
0
1,500,000
<COMMON> 1,938,900
<OTHER-SE> (2,356,900)
<TOTAL-LIABILITY-AND-EQUITY> 1,299,300
<SALES> 879,000
<TOTAL-REVENUES> 962,200
<CGS> 605,700
<TOTAL-COSTS> 605,700
<OTHER-EXPENSES> 584,700
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (228,200)
<INCOME-TAX> 0
<INCOME-CONTINUING> (228,200)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (228,200)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
