<PAGE>
================================================================================
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 28, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER 0-18238
TEXAS MICRO INC.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 04-2738973
(State or other jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
5959 CORPORATE DRIVE, HOUSTON, TEXAS 77036
(Address of Principal Executive Offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 713-541-8200
-----------
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 (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 [ ]
As of May 3, 1999, 13,485,525 shares of the registrant's Common Stock, $.40
par value, were outstanding.
================================================================================
<PAGE>
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS TEXAS MICRO INC. AND SUBSIDIARIES
March 28, June 30,
1999 1998
ASSETS (unaudited)
----------- --------
(in thousands)
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 5,767 $ 7,568
Accounts receivable, net of allowance for doubtful accounts
of $856 at March 28, 1999 and $888 at June 30, 1998 14,155 11,508
Inventories 11,760 8,291
Other current assets 1,699 1,825
-------- --------
Total current assets 33,381 29,192
-------- --------
Equipment and improvements, at cost:
Computer equipment 3,761 3,379
Machinery and equipment 4,462 4,270
Furniture and fixtures 1,043 1,011
Leasehold improvements 1,866 968
Construction in progress 2,319 519
-------- --------
13,451 10,147
Less - Accumulated depreciation and amortization 7,360 6,549
-------- --------
6,091 3,598
-------- --------
Other assets 268 66
-------- --------
Total Assets $ 39,740 $ 32,856
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 5,961 $ 3,886
Accrued expenses 7,389 5,783
-------- --------
Total current liabilities 13,350 9,669
-------- --------
Commitments and contingencies
Stockholders' Equity:
Preferred stock, $.40 par value:
Authorized--12,500 shares at March 28, 1999 and June 30, 1998
Issued--none - -
Common stock, $.40 par value:
Authorized--35,000 shares at March 28, 1999 and June 30, 1998
Issued--15,643 shares at March 28, 1999 and June 30, 1998 6,257 6,257
Additional paid-in capital 80,314 80,314
Accumulated deficit (54,374) (57,468)
Unrealized loss on securities available for sale (450) (325)
Treasury stock, at cost, 2,157 shares at March 28, 1999 and
2,250 shares at June 30, 1998 (5,177) (5,400)
Cumulative translation adjustment (180) (191)
-------- --------
Total stockholders' equity 26,390 23,187
-------- --------
Total Liabilities and Stockholders' Equity $ 39,740 $ 32,856
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
2
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS TEXAS MICRO INC. AND SUBSIDIARIES
(unaudited)
For the three months ended, For the nine months ended,
March 28, March 29, March 28, March 29,
1999 1998 1999 1998
------- ------- ------- -------
(in thousands, except per share data)
<S> <C> <C> <C> <C>
Revenues
Product $20,803 $16,146 $61,920 $50,689
Service and other 336 561 1,598 986
------- ------- ------- -------
Total revenues 21,139 16,707 63,518 51,675
Cost of revenues
Product 13,307 11,563 40,493 35,765
Service and other 267 - 768 -
------- ------- ------- -------
Total cost of revenues 13,574 11,563 41,261 35,765
Gross profit 7,565 5,144 22,257 15,910
Research and development expenses 2,029 1,859 6,608 5,717
Selling, general and administrative expenses 4,377 3,472 12,794 10,948
------- ------- ------- -------
Total operating expenses 6,406 5,331 19,402 16,665
Income (loss) from operations 1,159 (187) 2,855 (755)
Interest income 86 85 263 245
Other income (expense) 86 250 289 288
------- ------- ------- -------
Income (loss) before provision for income
taxes 1,331 148 3,407 (222)
Provision for income taxes 126 35 322 82
------- ------- ------- -------
Net income (loss) $ 1,205 $ 113 $ 3,085 $ (304)
======= ======= ======= =======
Basic income (loss) per share $0.09 $ 0.01 $ 0.23 $ (0.02)
======= ======= ======= =======
Diluted income (loss) per share $0.09 $ 0.01 $ 0.22 $ (0.02)
======= ======= ======= =======
Average common shares outstanding 13,452 13,536 13,432 13,517
======= ======= ======= =======
Average common shares assuming dilution 14,014 13,872 13,745 13,517
======= ======= ======= =======
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
3
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS TEXAS MICRO INC. AND SUBSIDIARIES
(unaudited)
For the nine months ended,
March 28, March 29,
1999 1998
---------- ---------
(in thousands)
<S> <C> <C>
Cash Flows From Operating Activities:
Net income (loss) $3,085 ($304)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities--
Depreciation 1,190 1,086
Amortization 62 80
Provisions for inventories 956 340
Provisions for bad debts 172 54
Changes in assets and liabilities:
Accounts receivable (2,868) (2,134)
Inventories (4,437) (219)
Other current assets (3) (282)
Accounts payable 2,082 (1,068)
Accrued expenses 1,612 306
------- -------
Net cash provided by (used in) operating activities 1,851 (2,141)
------- -------
Cash Flows From Investing Activities:
Purchase of equipment and improvements (3,682) (1,027)
Proceeds from sale of SES business unit - 1,240
Increase (decrease) in other assets (264) 5
Net cash provided by (used in) investing activities ------- -------
(3,946) 218
------- -------
Cash Flows From Financing Activities:
Proceeds from issuance of common stock 232 157
Purchase of treasury stock - (101)
------- -------
Net cash provided by financing activities 232 56
------- -------
Effect of exchange rates on cash 62 (44)
------- -------
Net Decrease in Cash and Cash Equivalents (1,801) (1,911)
Cash and Cash Equivalents, beginning of period 7,568 8,386
------- -------
Cash and Cash Equivalents, end of period $ 5,767 $ 6,475
======= =======
Supplemental Disclosure of Cash Flow Information:
Cash paid for income taxes $104 $63
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE>
Notes to Consolidated Financial Statements
Texas Micro Inc. and Subsidiaries
(unaudited)
NOTE 1 - BASIS OF PRESENTATION
- ------
Texas Micro Inc. (the "Company") is a provider of differentiated Intel-based
computer systems and single board computers ("SBC's") for the communications and
industrial automation markets. The Company operates in one segment, computer
systems.
The financial statements included herein have been prepared by the Company
pursuant to the rules and regulations of the Securities and Exchange Commission
(the "Commission"). Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations. It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto included in the
Company's latest audited financial statements, which are contained in the
Company's Annual Report on Form 10-K for the year ended June 30, 1998, filed
with the Commission on September 14, 1998.
This information includes all adjustments (consisting of normal, recurring
adjustments) which the Company considers necessary for a fair presentation of
such information. The results of operations for the three and nine months ended
March 28, 1999 are not necessarily indicative of results to be expected for the
entire year.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make certain estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
NOTE 2 - INVENTORIES
- ------
Inventories including materials, labor and manufacturing overhead consisted of
the following:
<TABLE>
<CAPTION>
(in thousands)
March 28, June 30,
1999 1998
-------- --------
<S> <C> <C>
Raw materials $ 7,360 $ 5,682
Work-in-progress 2,836 1,899
Finished goods 1,564 710
-------- --------
$11,760 $ 8,291
-------- --------
</TABLE>
NOTE 3 - NET INCOME (LOSS) PER SHARE
- ------
Basic income (loss) per share is based on the weighted average number of common
shares outstanding during the period, while diluted income (loss) per share is
computed to reflect the potential dilution of common stock under the Company's
stock option plans. For loss periods, weighted average common share equivalents
are excluded from the calculation as their effect would be antidilutive.
NOTE 4 - COMPREHENSIVE INCOME
- ------
The Company adopted Statement of Financial Accounting Standards ("SFAS") No.
130, "Reporting Comprehensive Income" during the first quarter of fiscal 1999.
SFAS No. 130 establishes new rules for the reporting and presentation of
comprehensive income and its components. The Company's comprehensive income is
comprised of net income, foreign currency translation adjustments and unrealized
losses on marketable securities held as available-for-sale investments.
Comprehensive income (loss) was $1,132,000 and $2,981,000 for the three and
nine-month periods ending March 28, 1999 compared to $59,000 and ($408,000) for
the three and nine-month periods ending March 29, 1998.
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The Company is a provider of differentiated Intel-based computer systems and
single board computers ("SBCs") for the communications and industrial automation
markets. The Company operates in one segment, computer systems.
RESULTS OF OPERATIONS
REVENUES
- --------
The Company's revenues for the third quarter of fiscal 1999, which ended March
28, 1999, of $21,139,000 increased 27% from $16,707,000 for the third quarter of
fiscal 1998. During the third quarter of 1999, units shipped increased 43% and
the average unit selling price declined 10% as compared with the third quarter
of 1998. Service and other revenue decreased from $561,000 in the third quarter
of fiscal 1998 to $336,000 in the third quarter of fiscal 1999. The service and
other revenue recognized in the third quarter of fiscal 1998 is comprised solely
of license revenue, while the service and other revenue recognized in the third
quarter of fiscal 1999 is solely service revenue. Sales to the top five
customers represented 41% of total revenues for the third quarter of fiscal 1999
and 27% for the third quarter of fiscal 1998. The Company had one customer that
represented 18% of total revenues for the quarter ended March 28, 1999.
The Company's revenues for the first nine months of fiscal 1999 of $63,518,000
increased 23% from $51,675,000 for the first nine months of fiscal 1998. During
the first nine months of 1999, units shipped increased 35% and the average unit
selling price declined 9% as compared with the first nine months of 1998. Sales
to the top five customers represented 43% of total revenues for the first nine
months of fiscal 1999 compared to 23% of total revenues for the same period a
year ago.
Product revenues for both the three and nine months ended March 28, 1999 are
higher than the comparable periods a year ago as a result of new design wins,
the introduction of new products and a ramp up in products sold to existing
strategic customer accounts.
Sales outside the United States for the third quarter of fiscal 1999 increased
to $6,578,000 or 31% of total revenues, from $4,865,000, or 29% of total
revenues for the third quarter of fiscal 1998. For the nine months ended March
28, 1999, sales outside the United States comprised $19,882,000, or 31% of total
revenues, as compared to $15,562,000, or 30%, for the comparable period a year
ago.
GROSS MARGIN
- ------------
Gross margin of 36% for the third quarter of fiscal 1999 reflected an increase
of 5 percentage points from 31% in the third quarter of fiscal 1998. This
increase is primarily attributable to economies of scale generated by the growth
in production volume and efficiencies gained in manufacturing partially offset
by a decrease in license revenue recorded.
Gross margin of 35% for the first nine months of fiscal 1999 reflected an
increase of 4 percentage points from 31% for the first nine months of fiscal
1998. This increase is attributable to economies of scale generated by the
growth in product revenues and efficiencies gained in manufacturing. Offsetting
the increase in product margin, the Company recognized $830,000 in gross margin
related to service and other sales revenues during the first nine months of
fiscal 1999 compared to $986,000 for the same period in fiscal 1998.
The Company provides its customers with systems and SBCs requiring long product
life cycles. Gross margins are generally lower during the start up phase of the
product life cycle and have the potential to improve as volume increases. In
order to achieve its gross margin targets, while providing its customers with
competitive pricing, the Company continuously monitors its costs and makes
appropriate pricing revisions, which usually result in lower prices to its
customers. Continued fluctuations in future margin levels may result from the
timing of large design wins and component cost reductions, product mix, and the
level of production efficiencies.
6
<PAGE>
RESEARCH AND DEVELOPMENT EXPENSES
- ---------------------------------
The Company's research and development expenses of $2,029,000 for the third
quarter of fiscal 1999 increased 9% from $1,859,000 for the third quarter of
fiscal 1998. As a percent of revenues, research and development expenses
decreased to 10% for the third quarter of fiscal 1999 from 11% for the third
quarter of fiscal 1998.
For the first nine months of fiscal 1999, research and development expenses
increased to $6,608,000 or 16% from $5,717,000 for the first nine months of
fiscal 1998. As a percent of revenues, research and development expenses
decreased to 10% for the first nine months of 1999 from 11% for the first nine
months of 1998.
The increase in research and development expense for the three and nine month
periods ending March 28, 1999 over the same periods in the prior year is due to
continued investment in new product development, primarily in the Calvin and
CompactPCI products, enhancements to existing products and new customer design
wins. In addition, the Company continues its research and development
activities on highly available Intel-based servers.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
- --------------------------------------------
Selling, general and administrative expenses increased 26% to $4,377,000, or 21%
of revenues, for the third quarter of fiscal 1999 from $3,472,000, or 21% of
revenues, for the third quarter of fiscal 1998. The increase in expenses are
primarily due to an increase in enterprise wide computer system implementation
related costs and higher employment costs.
Selling, general and administrative expenses increased 17% to $12,794,000, or
20% of revenues, for the first nine months of fiscal 1999 from $10,948,000, or
21% of revenues, for the first nine months of fiscal 1998. The increase in
expenses compared to the same periods in the prior fiscal year is primarily due
to an increase in enterprise wide computer system implementation related costs,
bad debt write-offs and higher employment costs.
OPERATING INCOME (LOSS)
- -----------------------
The Company reported income from operations of $1,159,000 for the third quarter
of fiscal 1999, compared to a loss from operations of $187,000 for the third
quarter of fiscal 1998. The increase in income from operations resulted from
the increase in revenues and a higher gross margin percentage. For the first
nine months of fiscal 1999 the Company reported operating income of $2,855,000,
compared to a loss from operations of $755,000 for the prior year period. The
improved results are primarily attributed to the increase in revenues and gross
margin while minimizing the increase in operating expenses.
INTEREST AND OTHER INCOME
- -------------------------
The Company generated interest income of $86,000 and $263,000 during the three
and nine months ended March 28, 1999, as compared to $85,000 and $245,000 for
the comparable periods a year ago. Other income was $86,000 and $289,000 during
the three and nine months ended March 28, 1999, as compared to $250,000 and
$288,000 for the comparable periods a year ago. In the third quarter of fiscal
1998, the Company recorded a gain related to the sale of SES assets and a gain
related to the sale of General Automation, Inc. common stock.
INCOME TAXES
- ------------
The Company recorded provisions for income taxes, primarily for alternative
minimum, foreign and state income taxes, of $126,000 and $322,000 for the three
and nine months ended March 28, 1999 compared to $35,000 and $82,000 for the
three and nine months ended March 29, 1998.
LIQUIDITY AND CAPITAL RESOURCES
At March 28, 1999, the Company had cash and cash equivalents of $5,767,000 and
working capital of $20,031,000. This compared to cash and cash equivalents of
$7,568,000 and working capital of $19,523,000 at June 30, 1998.
7
<PAGE>
Cash provided by operations was $1,851,000 for the nine months ended March 28,
1999. Cash provided by operating activities resulted primarily from net income
and increases in accounts payable and accrued expenses associated with the
Company's growth partially offset by increases in accounts receivable and
inventories.
The Company's capital expenditures during the nine months ended March 28, 1999
increased by $2,655,000 as compared to the same period a year ago, primarily due
to expenditures for a new enterprise wide computer system and manufacturing
equipment. Capital expenditures for the remaining portion of fiscal 1999 are
expected to continue at the trend experienced in the first nine months of fiscal
1999.
The Company believes that its present cash flow and cash balances are adequate
for its operating needs and capital expenditures through fiscal 1999.
In June 1997, the FASB issued SFAS No. 131, "Disclosure about Segments of an
Enterprise and Related Information". The Company intends to adopt this standard
in the fourth quarter of fiscal year 1999. SFAS No. 131 establishes standards
for reporting information about operating segments in annual financial
statements and requires selected information about operating segments in interim
financial reports issued to stockholders. It also establishes standards for
related disclosures about products and services, geographic areas and major
customers. This Statement supersedes SFAS No. 14, "Financial Reporting for
Segments of a Business Enterprise", but retains the requirement to report
information about major customers. SFAS No. 131 is not expected to have a
material impact on the Company's consolidated financial statements.
YEAR 2000 COMPLIANCE
Many computer systems and imbedded chips may experience problems handling dates
beyond the year 1999. Therefore, some devices containing imbedded chips and
computer hardware and software will need to be modified prior to the Year 2000
in order to remain functional. In response to these Year 2000 issues, the
Company has assigned a project team to assess the readiness of its internal
business processes, non-financial software and imbedded chip systems, products
sold to customers and external noncompliance by customers and suppliers for
handling the Year 2000. The Company has created a website at www.texasmicro.com
containing additional information about the Year 2000 issue and the Company's
compliance program.
INTERNAL BUSINESS PROCESSES. During fiscal 1999, as part of a business
modernization program intended to reduce cycle time and improve profitability,
the Company purchased an enterprise wide computer system, which the software
vendor has indicated, is Year 2000 compliant. The total estimated hardware,
software and installation cost for this new system is approximately $3 million
of which approximately $2.2 million has been spent to date. The Company is
currently in the implementation phase for this system with full implementation
to be completed by September 1999. Based on this schedule, the Company expects
to be in full compliance with its internal financial systems before the Year
2000. However, if due to unforeseen circumstances, the implementation is not
completed on a timely basis, the Year 2000 could have a material impact on the
operations of the Company. Contingency plans have been established in a few
areas where the Company believes there is some risk that the system will not be
implemented before Year 2000. Those plans include adapting or replacing some of
the Company's currently existing systems to make them Year 2000 compliant. The
cost of making those adaptations are not expected to be material and will be
expensed in the period incurred.
INTERNAL NON-FINANCIAL SOFTWARE AND IMBEDDED CHIP TECHNOLOGY. The Company is in
the assessment phase with regard to non-financial software and imbedded chip
systems and is currently assessing the impact of the Year 2000 on its non-
financial systems such as manufacturing equipment, security equipment, etc.,
with completion of the Year 2000 assessment scheduled for September 1999. The
Company does not, at this time, have sufficient data to estimate the cost of
achieving Year 2000 compliance for its major non-financial systems and as such,
the costs of achieving Year 2000 compliance could have a material impact on the
operations of the Company. Since the Company is in the assessment phase, the
Company does not currently have a formal contingency plan in place for its
internal non-financial software and imbedded chip systems. A Year 2000 failure
with respect to certain Company non-financial systems such as manufacturing
equipment could have a material adverse affect on the Company's financial
condition and results of operations.
8
<PAGE>
PRODUCTS SOLD TO CUSTOMERS. The Company believes that it has substantially
identified and resolved all potential Year 2000 problems with hardware products
which it currently develops and markets. However, management also believes that
it is not possible to determine with complete certainty that all Year 2000
problems affecting the Company's hardware products have been identified or
corrected due to the complexity of these products and the fact that these
products interact with other third party vendor products and operate with
software or in systems which are not under the Company's control.
EXTERNAL NONCOMPLIANCE BY CUSTOMERS AND SUPPLIERS. The Company is also
contacting critical suppliers of products and services to determine that the
suppliers' and service providers' operations and the products and services they
provide are Year 2000 capable or to monitor their progress toward Year 2000
capability. To the extent that responses to Year 2000 readiness are
unsatisfactory, the Company intends to change suppliers or service providers to
those who have demonstrated Year 2000 readiness. No assurances can be given
that the Company will be successful in finding such alternative suppliers and
service providers. In the event that any of the Company's significant suppliers
do not successfully and timely achieve Year 2000 compliance, and the Company is
unable to replace them with alternate suppliers, the Company's business or
operations could be adversely affected.
The Company does not currently have any formal information concerning the Year
2000 compliance status of its customers but has received indications that many
of its customers are working on Year 2000 compliance. In the event that any of
the Company's significant customers do not successfully and timely achieve Year
2000 compliance, the Company's business or operations could be adversely
affected through a delay by the customer in placing orders with the Company or
delays in payments due the Company.
CERTAIN FACTORS THAT MAY AFFECT FUTURE RESULTS
Statements in this Quarterly Report on Form 10-Q that relate to future results
or events are based on the Company's current expectations. There are many
factors that affect the Company's business and the results of its operations and
may cause the actual results to differ materially from those expected, projected
or contained in forward-looking statements. These factors include technological
changes and the ability of the Company to develop new products; the customer
demand and market acceptance of the Company's products; the ability of the
Company to manage its inventory levels to minimize excess inventory, declining
inventory values and obsolescence; the risks and uncertainties relating to the
Company's foreign operations including foreign currency fluctuations and
intellectual property risk and risks associated with the Year 2000 issue. For a
discussion of these and other factors affecting the Company's business, see
"ITEM 1. BUSINESS -- Certain Factors That May Affect Future Results" in the
Company's Annual Report on Form 10-K for the fiscal year ended June 30, 1998 and
the preceding section, "Year 2000 Compliance."
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is from time to time a party to various lawsuits arising in the
ordinary course of business. The Company knows of no pending litigation which
is reasonably likely to have a material adverse impact on its financial
condition or its results of operations.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits
27 Financial Data Schedule
b) Reports on Form 8-K
None.
9
<PAGE>
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.
TEXAS MICRO INC.
Date: May 7, 1999 By: /s/ J. Michael Stewart
----------------------
J. Michael Stewart
President and Chief Executive Officer
Date: May 7, 1999 By: /s/ Kermit R. Sumrall
---------------------
Kermit R. Sumrall
Secretary and Acting Chief Financial
Officer
Date: May 7, 1999 By: /s/ Michael L. Baudler
----------------------
Michael L. Baudler
Controller
10
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<CIK> 0000724621
<NAME> TEXAS MICRO INC.
<MULTIPLIER> 1,000
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> DEC-28-1998
<PERIOD-END> MAR-28-1999
<EXCHANGE-RATE> 1
<CASH> 5,767
<SECURITIES> 0
<RECEIVABLES> 15,011
<ALLOWANCES> 856
<INVENTORY> 11,760
<CURRENT-ASSETS> 33,381
<PP&E> 13,451
<DEPRECIATION> 7,360
<TOTAL-ASSETS> 39,740
<CURRENT-LIABILITIES> 13,350
<BONDS> 0
0
0
<COMMON> 6,257
<OTHER-SE> 20,133
<TOTAL-LIABILITY-AND-EQUITY> 39,740
<SALES> 61,920
<TOTAL-REVENUES> 63,518
<CGS> 40,493
<TOTAL-COSTS> 41,261
<OTHER-EXPENSES> 19,402
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,407
<INCOME-TAX> 322
<INCOME-CONTINUING> 3,085
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,085
<EPS-PRIMARY> 0.23
<EPS-DILUTED> 0.22
</TABLE>
