UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________to__________________
Commission file number 0-12734
Stanford Telecommunications, Inc.
---------------------------------
(Exact name of registrant as specified in its charter)
Delaware 94-2207636
-------- ----------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
1221 Crossman Avenue, Sunnyvale, CA 94089
-----------------------------------------
(Address of principal executives offices)
(Zip Code)
408/745-0818
------------
(Registrant's telephone number, including area code)
------------
(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.
Yes_X_ No___
APPLICABLE ONLY TO CORPORATE USERS:
Indicate the number of outstanding shares of each of the issuer's classes
of common stock, as of the latest practical date.
12,928,721 as of October 31, 1997
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED FINANCIAL STATEMENTS
(Unaudited)
The condensed financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the Securities
and Exchange 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, although the Company believes the disclosures which are made are
adequate to make the information presented not misleading. Further, the
condensed financial statements have been prepared in all material respects in
conformity with the standards of accounting measurement set forth in Accounting
Principles Board Opinion No. 28 and reflect, in the opinion of management, all
adjustments (which include only normal recurring adjustments) necessary to
present fairly the financial position and results of operations as of and for
the periods indicated.
It is suggested that these condensed financial statements be read in conjunction
with the financial statements and the notes thereto included in the Stanford
Telecommunications, Inc. 1997 Annual Report.
The results of operations for the first six months of fiscal year 1998 ended
September 30, 1997 are not necessarily indicative of results to be expected for
the entire year ending March 31, 1998.
<PAGE>
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share amount)
Three Months Ended Six Months Ended
September 30, September 30,
------------- -------------
1997 1996 1997 1996
---- ---- ---- ----
Revenues $ 36,838 $ 41,058 $ 72,169 $ 81,901
Cost of revenues 27,465 30,889 53,894 62,883
-------- -------- -------- --------
Gross profit 9,373 10,169 18,275 19,018
Expenses
Research and development 3,868 3,444 6,899 5,673
Marketing and administrative 4,602 4,105 8,854 8,127
-------- -------- -------- --------
Total expenses 8,470 7,549 15,753 13,800
Operating income 903 2,620 2,522 5,218
Interest income, net 492 298 951 582
-------- -------- -------- --------
Income before income taxes 1,395 2,918 3,473 5,800
Provision for income taxes (467) (1,007) (1,164) (2,001)
-------- -------- -------- --------
Net income $ 928 $ 1,911 $ 2,309 $ 3,799
======== ======== ======== ========
Weighted average common 13,219 13,098 13,153 13,072
shares and equivalents
Net income per share $ 0.07 $ 0.15 $ 0.18 $ 0.29
======== ======== ======== ========
See accompanying notes
<PAGE>
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED BALANCE SHEETS
(in thousands, except per share amount)
ASSETS September 30, March 31,
1997 1997
---- ----
Current assets: (Unaudited)
Cash and cash equivalents $ 12,349 $ 8,235
Short-term investments 22,964 25,074
Accounts receivable 23,247 25,856
Unbilled receivables 20,823 19,754
Inventories 8,951 6,011
Prepaid expenses 4,421 4,201
--------- ---------
Total current assets 92,755 89,131
--------- ---------
Property and equipment at cost:
Electronic test equipment 44,458 42,797
Furniture and fixtures 3,770 3,613
Leasehold improvements 3,853 3,722
--------- ---------
52,081 50,132
Less: Accumulated depreciation and amortization (38,215) (36,019)
--------- ---------
Net property and equipment 13,866 14,113
--------- ---------
Other assets 316 274
--------- ---------
$ 106,937 $ 103,518
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term obligations $ 72 $ 88
Accounts payable 8,004 5,902
Advance payments from customers 1,131 1,581
Accrued liabilities 9,996 10,601
Accrued and current deferred income taxes 3,796 4,549
--------- ---------
Total current liabilities 22,999 22,721
--------- ---------
Long-term obligations, less current maturities 8 30
--------- ---------
Other long-term liabilities 864 910
--------- ---------
Deferred income taxes 108 151
--------- ---------
Shareholders' equity:
Common shares- par value $.01; 25,000 shares authorized
Outstanding - 12,921 shares at September 30, 1997 129 128
- 12,833 shares at March 31, 1997
Paid-in capital 41,352 40,410
Retained earnings 41,477 39,168
--------- ---------
Total shareholders' equity 82,958 79,706
--------- ---------
$ 106,937 $ 103,518
========= =========
See accompanying notes.
<PAGE>
<TABLE>
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
<CAPTION>
Six Months Ended
September 30,
--------------------
Cash flows from operating activities: 1997 1996
-------- --------
<S> <C> <C>
Net income $ 2,309 $ 3,799
Adjustments to reconcilenetincome to net cash provided
by operating activities:
Depreciation and amortization 2,820 2,511
Issuances of stock to employees under bonus and award plans 5 56
Change in provision for losses on receivables, contracts (978) 1,378
and inventories
Loss on disposition of property and equipment 1 3
(Increase) decrease in assets:
Receivables billed and unbilled 1,829 (3,246)
Inventories (2,209) 6,774
Prepaid expenses and other assets (262) 223
Increase (decrease) in liabilities:
Accounts payable, advance payments, and accrued expenses 1,005 (740)
Other long-term liabilities (46) (38)
Accrued and deferred income taxes (796) (253)
-------- --------
Net cash provided by operating activities 3,678 10,467
-------- --------
Cash flows used in investing activities:
Proceeds from maturities (purchase) of short-term investments 2,110 (2,855)
Purchase of property and equipment (2,574) (3,654)
-------- --------
Net cash used in investing activities (464) (6,509)
-------- --------
Cash flows from financing activities:
Payments on capital lease obligations (38) (37)
Proceeds from transactions under stock plans 938 1,112
-------- --------
Net cash provided by financing activities 900 1,075
-------- --------
Net increase in cash and cash equivalents 4,114 5,033
Cash and cash equivalents at beginning of period 8,235 4,409
-------- --------
Cash and cash equivalents at end of period $ 12,349 $ 9,442
======== ========
<FN>
See accompanying notes.
</FN>
</TABLE>
<PAGE>
STANFORD TELECOMMUNICATIONS, INC.
Notes to Condensed Financial Statements
(Unaudited)
September 30, 1997
1. Net income per share
Net income per share is computed using the weighted average number of shares
of common stock and common stock equivalents outstanding during the periods.
Common stock equivalents consist of the dilutive effect of outstanding
options to purchase common stock. Fully diluted net income per share is
substantially the same as reported net income per share.
In February 1997, the Statement of Financial Accounting Standards No. 128.
"Earnings per Share" (SFAS 128) was issued and is effective for periods
ending after December 15, 1997. SFAS No. 128 requires companies to compute
earnings per share under two different methods, basic and diluted, and to
disclose the methodology used for the calculation. The company does not
believe that this pronouncement has a significant effect on previously stated
earnings per share.
2. Inventories
Inventories are stated at the lower of cost (first-in, first-out) or market.
Cost includes materials, labor and related indirect expenses. General and
administrative costs are only included in inventory for government contracts,
as such costs are reimbursed by the government.
The components of inventory are (in thousands):
September 30,1997 March 31, 1997
----------------- --------------
Work-in-progress $6,838 $3,721
Finished goods 2,118 2,318
Allocated general and administrative costs 72 118
Less: progress billings (77) (146)
------ ------
$8,951 $6,011
====== ======
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Overview
Since the Company's inception in 1973, revenues have been generated primarily
from sales to agencies of the U.S. Government, including the DoD, the U.S. Air
Force, Army and Navy, NASA and the FAA, or their prime contractors. Such
revenues are generated from many contracts including programs requiring
multi-year hardware and software development and limited production of products
and systems. The Company's contracts often require the design, production,
operation and maintenance of sophisticated equipment and systems and provision
of system integration services in the digital telecommunications and satellite
communications fields. A substantial portion of the digital telecommunications
and satellite communications research and development performed by the Company
since its inception has been funded by its customers and recorded as revenues by
the Company. Accordingly, the cost of performing this customer-funded research
and development is included in "Cost of Revenues" in the Company's financial
statements. The Company's government contracts are generally cost-reimbursement
plus profit or fixed-price contracts. The Company generally recognizes revenues
from its long-term government contracts on a percentage-of-completion basis, or
a unit shipped basis for production contracts.
Commencing in the late 1980's, the Company began to pursue commercial
opportunities utilizing its digital telecommunications technology developed and
enhanced by the Company since its inception. Commercial revenues have risen from
less than 6% of total revenues in fiscal year 1989 to approximately 41% of total
revenues in fiscal year 1997. During fiscal year 1997, commercial revenues which
amounted to approximately $68.5 million included: (i) contract manufacturing
revenues from the Company's electronics assembly business ($34.0 million); (ii)
sales of ASICs, circuit boards and subsystems to the telecommunications industry
($17.0 million); and (iii) other commercial systems and product business ($17.5
million). During the first six months of fiscal 1998, commercial revenues
amounted to approximately $27.3 million or approximately 38% of total revenues
reported. The Company includes in commercial revenues sales of standard or
off-the-shelf products to any customers, including government customers.
The Company's operating results have from time to time been adversely affected
by non-recoverable cost overruns on certain fixed-price contracts, primarily
fixed-price development contracts which have included significant software and
hardware development. The Company has instituted additional management controls
to more closely monitor its bidding process and costs incurred on fixed-price
development contracts, however, no assurance can be given that the Company will
not incur losses on future fixed-price contracts or additional losses on
existing contracts. The Company believes that development contracts are an
important element in maintaining its technological leadership position in
digital telecommunications. The Company plans to selectively bid on programs
where it would be the sole provider or its technology leadership provides a
competitive advantage. In addition, in order to position itself in the
commercial marketplace, the Company may selectively enter into contracts with
customers to deliver products where the Company will be funding a portion of the
development costs. As a result, the Company may incur losses on certain
fixed-price contracts. Such losses will be charged against results of operations
in the period when they first become known, typically near the initiation of the
contract and may have a material adverse effect on the Company's results of
operations.
<PAGE>
Cautionary Statements
In the interest of providing the Company's shareholders and potential investors
with certain Company information, including management's assessment of the
Company's future potential, certain statements set forth herein (a) contain or
are based on projections of revenue, income, earnings per share and other
financial items or (b) relate to management's future plans, expectations, and
objectives or to the Company's future economic performance. Such statements are
"forward-looking statements" within the meaning of Section 27A(i) of the
Securities Act of 1933, as amended, and in Section 21E(i) of the Securities
Exchange Act of 1934, as amended.
Although any forward-looking statements contained herein or otherwise expressed
by or on behalf of the Company are to the knowledge and in the judgment of the
officers and directors of the Company, expected to prove true and to come to
pass, management is not able to predict the future with absolute certainty.
Accordingly, shareholders and potential investors are hereby cautioned that
certain events or circumstances could cause actual results to differ materially
from those projected or predicted herein. In addition, the forward-looking
statements herein are based on management's knowledge and judgment as of the
date hereof, and the Company does not intend to update any forward-looking
statements to reflect events occurring or circumstances existing hereafter.
For further information on the foregoing, reference is made to the Company's
Securities and Exchange Commission report on Form 10-K.
<TABLE>
Quarterly Results
The following table presents the Company's financial results by quarter for
fiscal 1997 and the first two quarters of fiscal 1998. These quarterly financial
results are unaudited. In the opinion of management, however, they have been
prepared on the same basis as the audited financial information and include all
adjustments necessary for a fair presentation of the information set forth
therein. The operating results for any quarter are not necessarily indicative of
the results that may be expected for any future period.
Quarter Ended
Statement of Operations Data
(in thousands, except per share data)
<CAPTION>
Fiscal 1997 Fiscal 1998
---------------------------------------- -------------------
June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues $ 40,843 $ 41,058 $ 42,028 $ 43,073 $ 35,331 $ 36,838
Cost of revenues 31,993 30,889 32,305 32,245 26,430 27,465
-------- -------- -------- -------- -------- --------
Gross profit 8,850 10,169 9,723 10,828 8,901 9,373
-------- -------- -------- -------- -------- --------
Expenses:
Research and development 2,229 3,444 2,903 3,292 3,031 3,868
Marketing and administrative 4,022 4,105 4,170 4,511 4,251 4,602
-------- -------- -------- -------- -------- --------
Total expenses 6,251 7,549 7,073 7,803 7,282 8,470
Operating income 2,599 2,620 2,650 3,025 1,619 903
Interest income, net 284 298 342 412 459 492
-------- -------- -------- -------- -------- --------
Income before provision for
income taxes 2,883 2,918 2,992 3,437 2,078 1,395
Provision for income taxes (995) (1,007) (1,032) (1,185) (696) (467)
-------- -------- -------- -------- -------- --------
Net income $ 1,888 $ 1,911 $ 1,960 $ 2,252 $ 1,382 $ 928
======== ======== ======== ======== ======== ========
Net income per share $ 0.14 $ 0.15 $ 0.15 $ 0.17 $ 0.11 $ 0.07
======== ======== ======== ======== ======== ========
Weighted average common
shares and equivalents 13,048 13,098 13,042 13,040 13,073 13,219
</TABLE>
<PAGE>
The Company's revenues and results of operations are subject to fluctuation from
period to period. Factors that could cause the Company's revenues and operating
results to vary from period to period include: underestimating costs on
fixed-price contracts, particularly for software and hardware development,
timing, bidding activity and delivery of significant contracts and orders,
termination of contracts, mix of products and systems sold, and services
provided, reduced levels of operation during the holidays which occur primarily
in the Company's third fiscal quarter, disruptions in delivery of components or
subsystems, regulatory developments, and general economic conditions. Research
and development expenses include both research and development costs as well as
bid and proposal expenses. Bid and proposal expenses vary significantly from
period to period based on the number of proposals being prepared at any time.
These requests for proposals are not received evenly during the year or in any
predictable pattern.
Comparison of the Second Quarter Ended September 30, 1997 and 1996
Revenues. Revenues for the second quarter of fiscal 1998 decreased by 10% to
$36.8 million from the second quarter of the previous fiscal year. Government
revenues during the second quarter of fiscal year 1998 totaled $23.1 million, an
increase of 11% from Government revenues of $20.9 million recorded during the
second quarter of fiscal year 1997. Commercial revenues during the second
quarter of fiscal year 1998 totaled $13.7 million, a decrease of 32% from
commercial revenues of $20.1 million recorded during the second quarter of
fiscal year 1997. The decrease can be primarily attributable to a decline in the
Company's commercial contract manufacturing service and the reduced level of
sales of commercial telecommunications chip and board level products. During the
second quarter of fiscal year 1998 revenues from commercial contract
manufacturing services totaled $7.2 million, down by $3.1 million from $10.3
million for the second quarter of fiscal year 1997. Revenues from the sale of
commercial telecommunications chip and board level products totaled $2.9 million
for the second quarter of fiscal year 1998 compared to $5.0 million for the
second quarter of the previous fiscal year. Other commercial revenues decreased
by $1.2 million from the second quarter of fiscal year 1997 to fiscal year 1998.
Cost of Revenues. Cost of revenues were $27.5 million and $30.9 million for the
second quarter of fiscal 1998 and 1997, respectively, representing an 11%
decrease. The decrease during the second quarter of fiscal 1998 was the result
of the recognition of costs on a lower revenue base.
Research and Development. During recent quarters, the Company has focused its
available research and development funds on the development of commercial
products. Research and development expenses, including bid and proposal expenses
were $3.9 million and $3.4 million during the second quarter of fiscal 1998 and
1997, respectively. Excluding bid and proposal expenses, the Company's research
and development expenses applied to the development of products such as wireless
broadband communications and cable high speed modems were $3.2 million and $2.7
million during the second quarter of fiscal 1998 and 1997, respectively. Bid and
proposal expenses are largely the initial advanced technology development
efforts directed toward a specific product or technical task for which the
Company must show technical viability.
Marketing and Administrative. Marketing and Administrative expenses were $4.6
million and $4.1 million for the second quarter of fiscal 1998 and 1997,
respectively. This increase is primarily a result of personnel additions to its
technical marketing staff, increased marketing expenses in pursuit of commercial
opportunities, and increased legal expenses primarily associated with a patent
infringement case brought by the Company in December 1996.
Operating Income. Operating income was $.9 million and $2.6 million for the
second quarter of fiscal 1998 and 1997, respectively. The decrease in operating
income during the second quarter of fiscal 1998 compared to second quarter of
fiscal 1997 was primarily attributable to a decrease in the revenue base,
increased research and development, and increased marketing and administrative
expenses.
<PAGE>
Interest Income. Interest income for the second quarter of fiscal 1998 was $492
thousand versus $298 thousand for the second quarter of the previous fiscal
year. The increase in interest income is primarily a result of the Company
increasing its net cash provided by operating activities and investing that cash
in short-term investments.
Provision for Income Taxes. Provision for income taxes was $.5 million and $1.0
million for the second quarter of fiscal years 1998 and 1997, respectively. This
represents a provisional tax rate of 33.5% and 34.5% for the second quarter of
fiscal 1998 and 1997, respectively.
Comparison of Six Months Ended September 30, 1997 and 1996
Revenues. Revenues were $72.2 million and $81.9 million for the six months ended
September 30, 1997 and 1996, respectively, representing a decrease of 12%.
Government revenues during the second quarter of fiscal year 1998 totaled $44.9
million, an increase of 5% from Government revenues of $42.6 million recorded
during the first six months of fiscal year 1997. Commercial revenues during the
first half of fiscal 1998 totaled $27.3 million, a decrease of 31% from
commercial revenues of $39.3 million recorded during the first six months of
fiscal 1997. The decrease can be mainly attributable to a decline in the
Company's commercial contract manufacturing services and the reduced level of
sales of commercial telecommunication chip and board level products. During the
first six months of fiscal 1998, revenues from the Company's commercial contract
manufacturing services totaled $11.4 million down from $21.6 million recorded
for the first half of fiscal 1997. Revenues from the sale of commercial
telecommunication chip and board level products totaled $6.7 million for the
first six months of fiscal 1998, down from $9.5 million achieved during the
first half of the previous fiscal year.
Cost of Revenues. Cost of revenues were $53.9 million and $62.9 million for the
first half of fiscal 1998 and 1997, respectively, representing a decrease of
14%. The decrease during the first six months of fiscal 1998 was a result of the
recognition of costs on a lower revenue base.
Research and Development. Research and development expenses, including bid and
proposal expenses were $6.9 million and $5.7 million for the first half of
fiscal 1998 and 1997, respectively, representing an increase of 22%. Excluding
bid and proposal expenses, the Company's research and development expenses
applied to the development of products such as wireless broadband communications
and cable high speed modems were $5.6 million and $4.5 million for the first six
months of fiscal 1998 and 1997, respectively.
Marketing and Administrative. Marketing and administrative expenses were $8.9
million and $8.1 million for the first six months of fiscal 1998 and 1997,
respectively, representing an increase of 9%. This increase is primarily a
result of personnel additions to its technical marketing staff, increased
marketing expenses in pursuit of commercial opportunities, and increased legal
expenses.
Operating Income. Operating income was $2.5 million and $5.2 million for the
first half of fiscal 1998 and 1997, respectively. The decrease in operating
income during the first half of fiscal 1998 was primarily attributable to a
decrease in revenue base, increased research and development, and increased
marketing and administrative expenses.
Interest Income. Interest income for the first half of fiscal 1998 was $951
thousand versus $582 thousand for the first half of the previous fiscal year.
The increase in interest income is primarily a result of the Company increasing
its net cash provided by operating activities and investing that cash in
interest bearing short-term investments.
Provision for Income Taxes. Provision for income taxes was $1.2 million and $2.0
million for the first six months of fiscal 1998 and 1997, respectively. This
represents a provisional tax rate of 33.5% and 34.5% for the first half of
fiscal 1998 and 1997, respectively.
<PAGE>
Booking and Backlog
Funded bookings were $40.2 million and $38.2 million for the second quarter of
fiscal 1998 and 1997, respectively, and $85.5 million and $79.3 million for the
six months ended September 30, 1997 and 1996, respectively. Bookings were
derived from both the Company's commercial operations as well as its government
business sectors. At the end of the second quarter of fiscal 1998 and 1997,
backlog stood at $97.3 million and $79.8 million, respectively.
Liquidity and Capital Resources
Working capital increased from $59.8 million to $69.8 million at September 30,
1996 and 1997, respectively, and increased by $3.4 million from the end of
fiscal 1997.
Net cash provided by operating activities for the first six months of fiscal
1998 ended September 30, 1997 was $3.7 million. During the first two quarters of
fiscal 1998, the Company realized net income of $2.3 million, increased its
inventories by $2.2 million and decreased its billed and unbilled receivables by
$1.8 million. Net cash provided by operating activities for the first six months
of fiscal 1997 ended September 30, 1996 was $10.5 million. During the first half
of fiscal 1997, the Company realized net income of $3.8 million, decreased its
inventories by $6.8 million, and increased its billed and unbilled receivables
by $3.2 million.
The Company utilized its cash for the purchase of property and equipment
totaling $2.6 million and $3.7 million during the first half of fiscal 1998 and
1997, respectively. The Company has a bank credit commitment of $15.0 million
which it can utilize to augment cash flow need and to secure standby letters of
credit. Available borrowings under this line at September 30, 1997 were $15.0
million. Under this line of credit the Company must maintain certain financial
covenants, including a covenant prohibiting the Company from incurring a
quarterly loss in any two consecutive quarters. The Company was in compliance
with all covenants throughout the first six months of fiscal 1998. The credit
agreement expires on December 5, 1997. At September 30, 1997, the Company's
long-term obligations (including current maturities) and other long-term
liabilities totaled approximately $.9 million. At September 30, 1997, cash and
cash equivalents of $12.3 million were substantially held in money market
accounts, and short term investments of $23.0 million were held in U.S. treasury
instruments with maturities not exceeding 365 days.
The Company believes that its current cash position, funds generated from
operations and funds available from its existing bank credit agreement, will be
adequate to meet the Company's requirements for working capital, capital
expenditures and debt service for the next several fiscal quarters.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
No current Reports on Form 8-K were filed with the Securities and Exchange
Commission during the period covered by this Form 10-Q.
<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.
Stanford Telecommunications, Inc.
(Registrant)
/s/ Jerome F. Klajbor
- --------------------------------------------
Jerome F. Klajbor
Vice-President and Chief Financial Officer
(Principal Financial and Accounting Officer)
November 7, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENT OF INCOME AND THE CONSOLIDATED BALANCE SHEET AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 12,349
<SECURITIES> 22,964
<RECEIVABLES> 44,070
<ALLOWANCES> 0
<INVENTORY> 8,951
<CURRENT-ASSETS> 92,755
<PP&E> 52,081
<DEPRECIATION> 38,215
<TOTAL-ASSETS> 106,937
<CURRENT-LIABILITIES> 22,999
<BONDS> 0
0
0
<COMMON> 129
<OTHER-SE> 82,829
<TOTAL-LIABILITY-AND-EQUITY> 106,937
<SALES> 72,169
<TOTAL-REVENUES> 72,169
<CGS> 53,894
<TOTAL-COSTS> 69,647
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,473
<INCOME-TAX> 1,164
<INCOME-CONTINUING> 2,309
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,309
<EPS-PRIMARY> 0.18
<EPS-DILUTED> 0.18
</TABLE>
