Page 13
<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 27, 1995
Commission file number 0-12611
AULT INCORPORATED
MINNESOTA____________ 41-0842932
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization)
Identification No.)
7300 Boone Avenue North
Minneapolis, Minnesota 55428-1028
(Address of principal executive offices)
Registrant's telephone number: (612) 493-1900
Indicate by check mark whether 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,
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, as of the latest practicable date.
Outstanding at
Class of Common Stock August 27, 1995
No par value 2,084,276 shares
Total pages - - - - 15
Exhibits Index on Page - - - - 12
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
AULT INCORPORATED & SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in Thousands, Except Amounts Per Share)
<TABLE>
<CAPTION>
UNAUDITED
FIRST QUARTER ENDED
AUGUST AUGUST
27, 1995 28, 1994
<S> <C> <C>
NET SALES $6,881 $5,711
COST OF GOODS SOLD 5,151 4,288
GROSS PROFITS 1,730 1,423
OPERATING EXPENSES
MARKETING 626 534
DESIGN ENGINEERING 338 288
GENERAL & ADMINISTRATIVE 523 465
1,487 1,287
OPERATING INCOME (LOSS) 243 136
NON-OPERATING INCOME (EXPENSE)
INTEREST & OTHER INCOME 30 10
INTEREST & OTHER EXPENSE (211) (102)
INCOME (LOSS) BEFORE INCOME 62 44
TAXES
INCOME TAXES (NOTE 2)
NET INCOME (LOSS) $62 $44
NET INCOME (LOSS) PER SHARE $0.03 $0.02
WEIGHTED NUMBER OF SHARES & COMMON
EQUIVALENT SHARES OUTSTANDING 2,159,896 2,062,526
</TABLE>
See NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
AULT INCORPORATED & SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
<TABLE>
<CAPTION>
AUGUST MAY 28,
27, 1995 1994
(UNAUDITED)
ASSETS:
CURRENT ASSETS <C> <C>
<S> <C> <C>
CASH & CASH EQUIVALENTS (NOTE 3) $65 $319
TRADE RECEIVABLES LESS
ALLOWANCE FOR DOUBTFUL
ACCOUNTS OF $25,000 AT
AUGUST 27, 1995, AD $38,000
AT MAY 28, 1995 4,920 5,381
INVENTORIES:
FINISHED GOODS 1,021 1,313
WORK IN PROCESS 498 530
RAW MATERIAL 4,473 4,158
TOTAL INVENTORIES 5,992 6,001
OTHER CURRENT ASSETS (NOTE 4) 469 485
TOTAL CURRENT ASSETS 11,446 12,186
OTHER ASSETS 258 241
EQUIPMENT AND LEASEHOLD
IMPROVEMENTS, AT COST
LAND 808 826
BUILDING 690 732
MACHINERY AND EQUIPMENT 4,892 4,843
OFFICE FURNITURE 561 554
E.D.P. EQUIPMENT 961 961
LEASEHOLD IMPROVEMENTS 685 687
8,597 8,603
LESS ACCUMULATED DEPRECIATION 5,712 5,601
NET EQUIPMENT AND LEASEHOLD
IMPROVEMENTS 2,885 3,002
TOTAL ASSETS $14,589 $15,429
</TABLE>
See NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
AULT INCORPORATED & SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
<TABLE>
<CAPTION>
AUGUST MAY 28,
27, 1995 1994
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS'
EQUITY:
<S> <C> <C>
CURRENT LIABILITIES:
NOTE PAYABLE TO BANK $3,722 $3,570
CURRENT MATURITIES OF LONG-TERM
DEBT (NOTE 5) 239 334
ACCOUNTS PAYABLE 3,686 4,578
ACCRUED EXPENSES:
COMPENSATION (NOTE 6) 655 660
OTHER 133 102
TOTAL CURRENT LIABILITIES 8,435 9,244
LONG-TERM DEBT, LESS CURRENT
MATURITIES INCLUDED ABOVE (NOTE 5) 1,164 1,221
DEFERRED RENT EXPENSE (NOTE 7) 188 193
DEFERRED COMPENSATION (NOTE 8) 269 287
STOCKHOLDERS' EQUITY:
PREFERRED SHARES, NO PAR VALUE,
AUTHORIZED, 1,000,000 SHARES;
NONE ISSUED.
COMMON SHARES, NO PAR VALUE;
AUTHORIZED 5,000,000 SHARES;
SHARES OUTSTANDING: AUGUST 27,
1995; 2,084,276, MAY 28, 1994;
2,062,526 SHARES 6,898 6,897
DEDUCT NOTES RECEIVABLE ARISING
FROM SALE OF COMMON STOCK (108) (108)
FOREIGN CURRENCY TRANSLATION
ADJUSTMENTS (NOTE 9) (126) (111)
RETAINED EARNINGS (DEFICIT) (2,131) (2,194)
TOTAL 4,533 4,484
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $14,589 $15,429
</TABLE>
See NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
AULT INCORPORATED & SUBSIDIARY
CONSOLIDATED CASH FLOWS
(Dollars in Thousands)
<TABLE>
<CAPTION>
(UNAUDITED)
THREE MONTHS ENDED
AUGUST AUGUST
27, 1995 28, 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
NET PROFIT $62 $44
ADJUSTMENTS TO RECONCILE NET
INCOME TO NET CASH PROVIDED BY
OPERATING ACTIVITIES:
DEPRECIATION 129 132
PROVISION FOR DOUBTFUL
ACCOUNTS (13) 1
PROVISION FOR INVENTORY
ALLOWANCE 26
DEFERRED RENT (5) (2)
CHANGES IN ASSETS AND
LIABILITIES:
(INCREASE) DECREASE IN:
TRADE RECEIVABLES 474 (186)
INVENTORIES 9 (197)
OTHER CURRENT ASSETS: (10) (56)
(INCREASE) DECREASE IN:
ACCOUNTS PAYABLE (892) 284
ACCRUED EXPENSES 9 22
NET CASH PROVIDED BY (USED
IN) OPERATING ACTIVITIES (211) 42
CASH FLOWS FROM INVESTING
ACTIVITIES:
PURCHASE OF EQUIPMENT (56) (25)
DECREASE IN OTHER ASSETS 27
NET CASH USED IN INVESTING
ACTIVITIES (29) (25)
CASH FLOWS FROM FINANCING
ACTIVITIES:
NET BORROWINGS ON REVOLVING
CREDIT AGREEMENT 152 21
PROCEEDS FROM ISSUANCE OF
COMMON STOCK 1
PRINCIPAL PAYMENTS ON LONG-TERM
BORROWINGS, INCLUDING CAPITAL
LEASE OBLIGATIONS (152) (35)
NET CASH PROVIDED BY (USED IN)
IN) FINANCING ACTIVITIES 1 (14)
EFFECT OF FOREIGN CURRENCY
EXCHANGE RATE CHANGES ON CASH (15) (2)
INCREASE (DECREASE) IN CASH (254) 1
CASH: BEGINNING 319 134
ENDING $65 $135
</TABLE>
See NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<PAGE>
AULT INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR FIRST QUARTER ENDING AUGUST 27, 1995
NOTE 1
In the opinion of management, the accompanying unaudited
financial statements contain all adjustments (which consist only
of normal recurring adjustments) necessary to present fairly Ault
Incorporated's consolidated financial position as of August 27,
1995, and August 28, 1994, and changes in financial position for
the three months then ended. The consolidated financial
statements include the operations of the parent company, Ault
Incorporated (US Operation), and its wholly owned subsidiary,
Ault Korea Corporation.
NOTE 2
No income taxes were accrued for the period. Taxes that were
calculated on profits of the US operation were offset by the
utilization of tax credit carryforwards. Ault Korea Corporation
reported a loss for the period, and, therefore, had no accrued
income taxes.
NOTE 3
For the purpose of reporting cash and cash flows, the Company
considers all highly liquid debt instruments purchased with a
maturity of three months or less to be cash equivalents.
NOTE 4
Other current assets for both periods are principally customs
duty and value-added taxes, and amounts receivable for customized
tooling charges. The customs duty and value-added taxes are paid
by Ault Korea Corporation to the Korean authority on products
that are manufactured for exportation. The taxes are refundable
when the subsidiary submits to the Korean Government the
appropriate claim and proof of exportation.
NOTE 5
Long-term debt, including current maturities, consists of
capitalized lease obligations and mortgage on the Korean
facility. Capitalized leases amounting to $234,000 are due in
various monthly installments maturing through fiscal 1998. The
mortgage amounts to $1,170,000, at 8.6% rate of interest of which
approximately $160,000 of principal interest is payable every
six months through the year 2000.
NOTE 6
Compensation consists principally of amounts accrued for sales
representatives commissions, and provision for employee future
paid time off. Sales commissions are accrued for at the time
that sales are invoiced and personal time off accrued for in
accordance with the Company's personnel policy.
<PAGE>
AULT INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR FIRST QUARTER ENDING AUGUST 27, 1995, (contd)
NOTE 7
The lease on the Company's Minneapolis plant and office
facilities includes scheduled base rent increases over the term
of the lease, which runs for ten years. The total amount of the
base rent payment is being charged to expense on the straight-
line method over the term of the lease. The difference between
the payments and the expense is recorded as deferred rent.
NOTE 8
Deferred compensation is a provision by Ault Korea Corporation,
in accordance with requirement by the Korean authority, for the
compensation of each current employee when his employment with
the subsidiary terminates.
NOTE 9
The Korean Won is considered the functional currency of the
Korean subsidiary. Accordingly, the effect of translating the
subsidiary's statements into US dollars is recorded as a separate
component of shareholders' equity.
<PAGE>
ITEM 2 - MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND
RESULTS OF OPERATIONS
Results of Operations
Net sales were $6,881,000 for the first quarter of fiscal 1996,
up by 20% from net sales of $5,711,000 for the first quarter of
fiscal 1995. The improvement for this quarter is due principally
to three factors. First, the telecommunications/data
communications market served by the Company began to rebound in
fiscal 1994 and continued to show strength through this quarter.
Driven worldwide by leading technologies in communications and
transmission of data, it is anticipated that this strong market
condition will prevail through fiscal 1996. This enhanced market
situation is providing greater opportunities for sale of the
Company's products to OEMs manufacturing items such as point of
sale equipment, telephones, and local area network systems.
Second, several new products that were developed in past
quarters, through emphasis on design engineering, have begun to
produce significant revenues. The Company's strategies for
fiscal 1996 require continued emphasis on new product
development. To this end, three new custom products were
introduced during this first quarter to support applications of
one major customer in the telecommunications market and two major
customers in the higher margin medical market. Lastly, continued
emphasis on subcontracting in South East Asian countries, and
greater utilization of its Korean facility have enabled the
Company to better compete for price sensitive orders and to
fulfill the broader needs of its OEM customers. The lower sales
for the first quarter of fiscal 1995 were due to softer but
generally improving market conditions prevailing at that time.
The Company's order backlog at August 27, 1995, was $10.3
million, up 12% from $9.2 million at August 28, 1994. The
Company is presently anticipating stronger sales during the
second quarter, compared to its quarter just ended, because of
its large order backlog, prevailing market condition, and its
engineering and manufacturing strategies. Excluding anything
unforeseen that would impair supporting conditions, it is also
anticipated that sales for all of fiscal 1996 will improve
compared to sales attained in fiscal 1995.
Gross profits for the first quarter of fiscal 1996 are $1,720,000
or 25.1% of net sales, compared to $1,423,000 or 24.9% for the
first quarter of fiscal 1995. The modest increase in gross
profits for this quarter is due principally to two factors.
First, during the first quarter of fiscal 1995, the Korean
subsidiary experienced productivity problems associated with
preparing the facility for greater manufacturing. Those problems
were substantially resolved in fiscal 1995. Also brought under
control in fiscal 1995 were shipment costs expended to expedite
greater deliveries of vendor material, a problem that existed
during the first quarter of that year. Additionally, the Korean
subsidiary no longer has rental expense since the subsidiary
purchased that facility during the fourth quarter of fiscal 1995.
These factors have enabled the Company to improve gross profits.
Second, the proportion of total revenue derived from US
manufacturing declined during this quarter, compared to the first
quarter of fiscal 1995, due to pricing pressures adverse to local
manufacturing and its related gross profits. Domestic
manufactured products sold in smaller order quantities have had
greater margins than similar products that are manufactured
offshore and sold in higher volumes. These factors had an
unfavorable impact on the Company's total margins. The Company's
strategies for fiscal 1996 are directed at increasing the revenue
and gross margins from US manufactured products.
<PAGE>
Although products that were manufactured by the Korean subsidiary
contributed a very significant portion of total sales, conversion
of the Won to US dollars has had no significant impact on gross
profits because the conversion rates have been relatively stable.
Operating expenses for the first quarter were $1,487,000 or 21.6%
of net sales, compared to $1,287,000 which equaled 22.5% of net
sales for the first quarter of fiscal 1995. The increase in
total cost for this quarter is principally due to commissions
paid to sales representatives on the increased sales, employment
of contract engineering and expenditures for training and
education.
The Company had operating profits of $243,000 and $136,000 for
the first quarter of fiscal 1996 and fiscal 1995, respectively.
Non-operating income of $30,000 for fiscal 1996 and $10,000 for
fiscal 1995 represented principally interest earned on short-term
investments and currency exchange rate gain from importation of
raw material by the Korean subsidiary. Non-operating expenses of
$211,000 in 1996 and $102,000 in 1995 are principally interest
expenses of the Company. Of the additional amount of $109,000
paid in fiscal 1996, approximately $36,000 was paid by Ault Korea
Corporation for interest incurred on the facility's mortgage.
The balance of $73,000 substantially relates to additional
interest paid by the Company's US operation due to greater
utilization of its credit facility at higher rates of interest
compared to fiscal 1995.
The Company reported net profits of $62,000 and $44,000 amounting
to $.04 and $.03 per share for the first quarter of fiscal 1996
and fiscal 1995, respectively. It is anticipated that net
profits for the second quarter of fiscal 1996 will also improve
compared to performance for the second quarter of fiscal 1995.
Additionally, it is anticipated that net profits for all of
fiscal 1996 will improve, compared to fiscal 1995, if expected
improvements in sales as discussed above are realized.
Liquidity and Capital Resources
The Company's strategies for fiscal 1996 require utilization only
of its current resources to exploit prevailing market conditions
for growth in revenues and to realize other objectives targeted
for attainment in fiscal 1996. Those resources, of which credit
facilities and cash flows from operations are principal components,
will require levels of careful management to attain the desired
results. Expenditures for investing activities that are
commensurate with these strategies are also a compelling factor.
At the end of the quarter, the Company had cash totaling $65,000,
down from $319,000 at May 28, 1995, because of cash flow
activities in operations, in investing and in financing.
Operating activities used $211,000 of cash during the quarter,
which was comprised principally of net profit and related
adjustments, changes in inventories, in trade receivables and in
trade indebtedness. Profits and adjustments provided $199,000 of
cash. It is anticipated that provision of cash from this source
will further improve in fiscal 1996, because of expected levels
of profitability. Reduction in trade receivables provided
$474,000 of cash. The reduction occurred because of collections
on the higher revenues for the last quarter of fiscal 1995,
compared to revenues for this quarter. Trade receivables are
anticipated to grow during the remaining quarters of fiscal 1996,
and, therefore are not expected to make any further contributions
to cash. Inventories remained relatively unchanged during the
quarter, but are expected to increase during remaining quarters
to support manufacturing requirements and the increasing requests
by significant customers to maintain finished product inventories
to support emergency requirements. Reduction in trade payables
used $892,000 of cash during the quarter, afforded principally
<PAGE
through cash provided by profits, reduction in trade receivables,
and utilization of a small portion of the credit facility which
was expanded during the fourth quarter of fiscal 1995. Trade
payables had increased during the fourth quarter commensurate
with material purchases to support greater shipments during that
quarter. Payments during this first quarter were made with the
objective of managing trade payable to a more current basis.
Generally, trade payables are managed according to amounts of
cash provided by operations.
Investing activities used $29,000 of cash during this quarter, of
which decrease in other assets which provided $27,000, and the
purchase of equipment and tooling using $56,000 of cash were the
principal items. This level of equipment purchase is in line
with planned purchases for each of the remaining three quarters.
Certain portion of equipment and tooling requirements will be
supported through leasing arrangements.
Principal financing activities during the quarter were in
connection with the credit facility and payment of long-term
obligations. Payments on long-term borrowings used $152,000 of
cash during the quarter, of which $34,000 was towards payments on
capital leases. A modest increase in lease payments is
anticipated for the remaining quarters commensurate with expected
new contracts. The balance of $118,000 was for mortgage payments
on the Korean facility. See NOTE 5 under NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS. Future quarterly payments to maturity of
the mortgage will approximate $80,000. Borrowings against the
Company's revolving credit facility increased by $152,000 during
the quarter.
At the end of fiscal 1995, the Company's revolving credit
facility with its bank amounted to $4,500,000. At August 26,
1995, $400,000 of the credit facility was being utilized to
provide a standby letter of credit to Korea Exchange Bank in
Korea. This letter of credit guarantees payment of domestic
letters of credit that are issued by Korea Exchange Bank to
material vendors on the subsidiary's behalf, and provides
security for overdrafts allowed by that bank on the subsidiary's
bank accounts. No claims have been presented against this
document. The balance of $4,100,000 provided working capital to
the US operation at a rate of interest that is 4.0% above the
bank's base rate. At August 26, 1995, utilization amounted to
$3,722,000 up from $3,570,000 when the year began. The Company
is currently concluding agreement with the bank which will change
this credit facility effective as of September 30, 1995. The new
arrangement will increase the credit facility to $6,000,000 and
extend the contract term by two years to May 31, 1998. The rate
of interest will be 2.0% over the bank's base rate, down from the
current 4.0%.
During September, Ault Korea Corporation also completed agreement
with Korea Exchange Bank wherein that bank will allow the
subsidiary up to $800,000 of credit for local letters of credit
and overdrafts. This credit facility is collateralized by the
$400,000 standby letter of credit, mentioned above, and certain
types of inventories.
The effect of foreign currency exchange rate changes on the
translation of the Korean financial statement from Korea won to
US dollars resulted in net asset value decrease of $15,000 during
the quarter. All of the Company's sales contracts are in US
dollars, and therefore, the Company assumes no currency exchange
risks on these contracts. Ault Korea, in addition to shipments
to the US, sells only in the Korea local market at this time;
consequently, the Company assumes no currency exchange risks.
Neither Ault Korea nor Ault US currently has any significant
amounts of raw material importation that would expose the Company
to any significant currency exchange risk. However, management
plans to monitor the situation and to take action on minimizing
currency exchange risks on contracts as appropriate.
<PAGE>
The Company's working capital increased during the quarter from
$2,942,000 at May 29, 1995, to $3,011,000 at August 27, 1995.
Long-term debt, including current maturities decreased from
$1,555,000 to $1,403,000 over the same period.
The Company believes that cash flows from anticipated profits and
careful management of other operating activities together with
its two credit facilities will be sufficient to support
strategies through fiscal 1996. Additional sources of funds
would be needed, however, to pursue any business opportunity in
fiscal 1996 outside of the ordinary course of business.
<PAGE>
AULT INCORPORATED
PART II. OTHER INFORMATION
ITEMS 1-5 Not Applicable
EXHIBIT INDEX
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
Exhibits
11 Computation of Per Share Earnings filed herewith
at page 14
27 Financial Data Schedules filed electronically at
page 15
(a) None
(b) Reports on Form 8-K. There were no reports on
Form 8-K filed for the quarter ended August 27,
1995.
<PAGE>
SIGNATURES
Pursuant to the requirements 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.
AULT INCORPORATED
(REGISTRANT)
<TABLE>
<S> <C> <C>
DATED: 10/10/95 /s/ Frederick M. Green
Frederick M. Green, President
Chief Executive Officer and
Chairman
DATED: 10/10/95 /s/ Carlos S. Montague
Carlos S. Montague, Vice President
Chief Financial Officer and
Controller
</TABLE>
Page 14
<PAGE>
EXHIBIT II
AULT INCORPORATED & SUBSIDIARY
CALCULATIONS OF CONSOLIDATED EARNINGS PER SHARE
(In Thousands of Dollars, Except Per Share Data)
<TABLE>
<CAPTION>
(UNAUDITED)
THREE MONTHS ENDED
AUGUST 27, AUGUST 28,
1995 1994
<S> <C> <C>
PRIMARY EARNINGS PER COMMON SHARE:
NET INCOME (LOSS) $62 $44
AVERAGE SHARES OF COMMON STOCK AND
EQUIVALENT OUTSTANDING
COMMON SHARES BEGINNING OF PERIOD 2,083,776 2,062,526
COMMON STOCK FROM EXERCISE OF
OPTIONS, WEIGHTED 333
ADDITIONAL OUTSTANDING COMMON
STOCK FROM FULLY DILUTIVE OPTIONS, 75,787
WEIGHTED*
USED TO COMPUTE PRIMARY EARNINGS
PER SHARE 2,159,896 2,062,526
PRIMARY EARNINGS PER SHARE $0.03 $0.02
<FN>
* Common stock equivalent for exercisable unexercised options
amounting to 37,500 shares in fiscal 1996, and 137,151
shares in fiscal 1995 have an antidilutive effect on the
earnings per share because of the higher option prices
compared to the market value. These shares, therefore, have
been excluded from the calculation of the per share
earnings.
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED STATEMENTS OF OPERATIONS FOUND
ON PAGES 2 THRU 4 OF THE COMPANY'S FORM 10-Q FOR FIRST QUARTER ENDED 08-27-95,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERRENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-02-1996
<PERIOD-START> MAY-29-1995
<PERIOD-END> AUG-27-1995
<CASH> 65
<SECURITIES> 0
<RECEIVABLES> 4,920
<ALLOWANCES> 25
<INVENTORY> 5,992
<CURRENT-ASSETS> 11,446
<PP&E> 8,597
<DEPRECIATION> 5,712
<TOTAL-ASSETS> 14,589
<CURRENT-LIABILITIES> 8,435
<BONDS> 0
<COMMON> 6,898
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 14,589
<SALES> 6,881
<TOTAL-REVENUES> 6,881
<CGS> 5,151
<TOTAL-COSTS> 5,151
<OTHER-EXPENSES> 1,487
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 211
<INCOME-PRETAX> 62
<INCOME-TAX> 0
<INCOME-CONTINUING> 62
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 62
<EPS-PRIMARY> .03
<EPS-DILUTED> .03
</TABLE>
