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 JUNE 30, 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 001-11473
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.
13,005,829 as of July 23, 1998
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The condensed consolidated 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 consolidated 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 consolidated financial statements be read
in conjunction with the financial statements and the notes thereto included in
the Stanford Telecommunications, Inc. 1998 Annual Report.
The results of operations for the first three months of fiscal year 1999 ended
June 30, 1998 are not necessarily indicative of results to be expected for the
entire year ending March 31, 1999.
<PAGE>
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share amounts)
Three Months
Ended June 30,
-----------------------
1998 1997
------- -------
Revenues $44,362 $35,331
Cost of revenues 34,919 26,430
------- -------
Gross profit 9,443 8,901
Expenses
Research and development 3,709 3,031
Marketing and administrative 4,712 4,251
------- -------
Total expenses 8,421 7,282
Operating income 1,022 1,619
Interest income 484 459
------- -------
Income before provision for income taxes 1,506 2,078
Provision for income taxes (467) (696)
------- -------
Net income $ 1,039 $ 1,382
======= =======
Earnings per share - basic and diluted $ 0.08 $ 0.11
======= =======
Weighted average number of common
and potential common shares outstanding:
Basic 12,976 12,841
======= =======
Diluted 13,171 13,073
======= =======
See accompanying notes
<PAGE>
<TABLE>
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amount)
<CAPTION>
ASSETS June 30, March 31,
1998 1998
----------- -------
<S> <C> <C>
Current assets: (Unaudited)
Cash and cash equivalents $ 13,085 $ 13,914
Short-term investments 21,574 19,493
Accounts receivable 21,969 26,958
Unbilled receivables 27,430 20,911
Inventories, net of related progress billings 14,071 14,276
Prepaid expenses and other 4,576 1,919
--------- --------
Total current assets 102,705 97,471
--------- --------
Property and equipment at cost:
Electronic test equipment 47,904 46,768
Furniture and fixtures 3,932 3,887
Leasehold improvements 4,103 3,996
--------- --------
55,939 54,651
Less: Accumulated depreciation and amortization (41,946) (40,516)
--------- --------
Net property and equipment 13,993 14,135
--------- --------
Other assets 586 535
--------- --------
$ 117,284 $ 112,141
========= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term obligations $ 39 $ 44
Accounts payable 10,936 10,739
Advance payments from customers 2,915 1,909
Accrued liabilities 9,354 8,218
Accrued income taxes 4,854 3,462
--------- --------
Total current liabilities 28,098 24,372
--------- --------
Long-term obligations, less current maturities 29 41
--------- --------
Other long-term liabilities 805 855
--------- --------
Shareholders' equity:
Common shares - par value $.01; 25,000 shares authorized
Outstanding - 13,002 shares at June 30, 1998 130 130
- 12,975 shares at March 31, 1998
Paid-in capital 42,799 42,359
Retained earnings 45,423 44,384
--------- --------
Total shareholders' equity 88,352 86,873
--------- --------
$ 117,284 $ 112,141
========= ========
<FN>
See accompanying notes.
</FN>
</TABLE>
<PAGE>
<TABLE>
STANFORD TELECOMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
<CAPTION>
Three Months Ended
June 30,
------------------
Cash flows from operating activities: 1998 1997
------ -----
<S> <C> <C>
Net income $ 1,039 $ 1,382
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization 1,527 1,365
Issuances of stock to employees under bonus and award plans 8 5
Change in provision for losses on receivables, contracts and inventories (185) 140
Loss on disposition of property and equipment 33 0
(Increase) decrease in assets:
Receivables billed and unbilled (1,324) 1,972
Inventories 184 (1,320)
Prepaid expenses and other assets (2,708) (568)
Increase (decrease) in liabilities:
Accounts payable, advance payments, and accrued expenses 2,339 (984)
Other long-term liabilities (50) (20)
Accrued and deferred income taxes 1,497 (617)
------- --------
Net cash provided by operating activities 2,360 1,355
------- --------
Cash flows from investing activities:
Proceeds from maturities (purchase) of short-term investments, net (2,081) (2,713)
Purchases of property and equipment (1,418) (1,455)
-------- --------
Net cash used in investing activities (3,499) (4,168)
-------- --------
Cash flows from financing activities:
Payments on capital lease obligations (17) (22)
Proceeds from transactions under stock plans 327 427
-------- --------
Net cash provided by financing activities 310 405
-------- --------
Net decrease in cash and cash equivalents (829) (2,408)
Cash and cash equivalents at beginning of period 13,914 8,235
-------- --------
Cash and cash equivalents at end of period $13,085 $ 5,827
======== ========
<FN>
See accompanying notes.
</FN>
</TABLE>
<PAGE>
STANFORD TELECOMMUNICATIONS, INC.
Notes to Condensed Consolidated Interim Financial Statements
(Unaudited)
June 30, 1998
1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principals
for interim financial information.
2. Fiscal Year
The Company's fiscal year ending March 31, 1999 is comprised of one 14-week
quarter (quarter ended June 30, 1998) and three 13-week quarters. Fiscal
year ended March 31, 1998 was comprised of four 13-week quarters.
3. 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 as follows (in thousands):
June 30, 1998 March 31, 1998
------------- --------------
Work-in-progress $ 10,704 $ 11,176
Finished goods 3,339 3,066
Allocated general and administrative costs 48 136
Less: progress billings (20) (102)
--------- ---------
$ 14,071 $ 14,276
========= =========
4. Earnings per share
Basic earnings per share is computed based on the weighted average number
of common shares outstanding. Diluted earnings per share is computed based
on the weighted average number of common shares outstanding plus dilutive
potential common shares calculated in accordance with the treasury stock
method. The Company's dilutive potential common shares are represented by
shares issuable through the exercise of stock options. For the first
quarter of fiscal 1999 and 1998 the dilutive potential common shares were
approximately 195,000 and 232,000 respectively. Options to purchase
approximately 455,000 and 260,000 weighted shares outstanding during the
first quarter of fiscal 1999 and 1998, respectively were excluded from the
computation of diluted earnings per share because the options' exercise
prices were greater than the average market price of the Company's common
stock during those periods. Basic and diluted earnings per share for the
Company are substantially the same. Accordingly they have been reported
together in the Statements of Income.
<PAGE>
TEM 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.
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 38% of total
revenues in fiscal year 1998. During the first three months of fiscal year 1999,
commercial revenues amounted to approximately 37% of the total revenues
reported. The Company includes in commercial revenues sales of standard or
off-the-shelf products to any customers, including government customers.
Over the past four years the Company has invested heavily in the development of
a family of products to deliver telephone and data services over wireless
broadband links. The high level of R&D expenses associated with the development
of the wireless broadband family impacted the earnings results for the Company's
base business over the past several years. In order to provide further detail as
to the level of revenues, cost of revenues, and operating expenses incurred by
the base business and the corresponding financial performance of the broadband
wireless business, the Company established a wholly owned subsidiary, Stanford
Wireless Broadband, Inc. in June 1998. In addition to providing financial
visibility, the establishment of the subsidiary allows the Company's wireless
broadband customers the benefit of working with a unique and separate entity
dedicated to the broadband family of products. The table shown below provides a
summary of the financial performance for the base business operations and
Stanford Wireless Broadband, Inc. for the three months ended June 30, 1998.
<PAGE>
BASE STANFORD
BUSINESS WIRELESS
OPERATIONS BROADBAND, INC.
---------- ---------------
Revenues from unaffiliated customers $34,810 $9,552
Cost of revenues 26,661 8,258
------- -------
Gross profit 8,149 1,294
Expenses
Research and development 990 2,719
Marketing and administrative 3,058 1,654
------- -------
Total expenses 4,048 4,373
------- -------
Operating income (loss) $ 4,101 $(3,079)
======= =======
For the first quarter of fiscal year 1999, the base business organization
achieved revenues and earnings from operations of $34.8 million and $4.1
million, respectively. The Company's newly formed subsidiary achieved revenues
of $9.6 million and recorded a $3.1 million loss from operations. The revenues
for the base business consisted of $28.0 million and $6.8 million of Government
and commercial revenues, respectively. First quarter fiscal year 1999 revenues
for the subsidiary consisted primarily of commercial contract manufacturing
revenues amounting to $8.1 million. The operating loss incurred by the
subsidiary during the first quarter of fiscal year 1999 was primarily the result
of the large investment in development and marketing of the wireless broadband
products.
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. 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. 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.
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
<PAGE>
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.
Quarterly Results
<TABLE>
The following table presents the Company's consolidated financial results by
quarter for fiscal 1998 and the first quarter of fiscal 1999. The Company's
fiscal year ending March 31, 1999 is comprised of one 14-week quarter
(quarter ended June 30, 1998) and three 13-week quarters. Fiscal year ended
March 31, 1998 was comprised of four 13-week quarters. 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 1998 Fiscal 1999
----------------------------------------- -----------
June 30 Sept. 30 Dec. 31 Mar. 31 June 30
------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Revenues $35,331 $36,838 $40,713 $40,378 $44,362
Cost of revenues 26,430 27,465 30,778 31,956 34,919
------- ------- ------- ------- -------
Gross profit 8,901 9,373 9,935 8,422 9,443
------- ------- ------- ------- -------
Expenses:
Research and development 3,031 3,868 3,814 2,934 3,709
Marketing and administrative 4,251 4,602 4,463 4,005 4,712
------- ------- ------- ------- -------
Total expenses 7,282 8,470 8,277 6,939 8,421
Operating income 1,619 903 1,658 1,483 1,022
Interest income 459 492 502 443 484
------- ------- ------- ------- -------
Income before provision for income taxes 2,078 1,395 2,160 1,926 1,506
Provision for income taxes (696) (467) (583) (597) (467)
------- ------- ------- ------- -------
Net income $ 1,382 $ 928 $ 1,577 $ 1,329 $ 1,039
======= ======= ======= ======= =======
Net income per share-Basic and diluted $ 0.11 $ 0.07 $ 0.12 $ 0.10 $ 0.08
======= ======= ======= ======= =======
Weighted average number of common
and potential common shares outstanding
Basic 12,841 12,888 12,927 12,953 12,976
======= ======= ======= ======= =======
Diluted 13,073 13,219 13,226 13,199 13,171
======= ======= ======= ======= =======
</TABLE>
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
<PAGE>
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 First Quarter Ended June 30, 1998 and 1997
Revenues. Revenues were $44.4 million and $35.3 million for the first quarter of
fiscal years 1999 and 1998, respectively, representing an increase of
approximately 26%. Government revenues during the first quarter of fiscal 1999,
which constitute the majority of the base business revenues, totaled $28.0
million, an increase of 30% from Government revenues of $21.6 million recorded
for the first quarter of fiscal year 1998. Commercial revenues associated with
the base business decreased during the first quarter of fiscal year 1999 to $6.8
million from $8.7 million recorded during the first quarter of fiscal year 1998.
The decrease was mainly attributable to a $1.8 million decrease in revenues from
the sale of commercial telecommunication chip and board level products. The
revenues for the Company's commercial electronic contract manufacturing business
which is included in the Company's newly formed subsidiary, Stanford Wireless
Broadband, Inc., totaled $8.1 million for the first quarter of fiscal year 1999,
an increase of 93% from contract manufacturing revenues of $4.2 million recorded
during the first quarter of fiscal year 1998. The Company does not expect
contract manufacturing revenues to continue to increase at that rate.
Cost of Revenues. Cost of revenues were $34.9 million and $26.4 million for the
first quarter of fiscal 1999 and 1998, respectively, representing a 32%
increase. The increase is attributable to a higher revenue base experienced
during the first quarter of fiscal 1999 compared to the first quarter of the
previous fiscal year. The decrease in the gross margin percentage from 25% in
the first quarter of fiscal year 1998 to 21% in the first quarter of fiscal year
1999 can be mainly attributed to an increase in lower margin commercial
electronic manufacturing revenues which are included in the Company's newly
formed subsidiary, Stanford Wireless Broadband, Inc., and a decrease in higher
margin fixed price contracts. Gross margins for the Company's base business and
newly formed subsidiary were 23% and 13%, respectively.
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 $3.7 million and $3.0 million during the first quarter of fiscal 1999 and
1998, respectively. Excluding bid and proposal expenses, the Company's research
and development expenses applied to the development of its products were $3.2
million and $2.4 million during the first quarter of fiscal 1999 and 1998,
respectively. Approximately $2.7 million of the research and development
expenses in fiscal 1999 were associated with the wireless broadband development
efforts being performed by the Company's new subsidiary, Stanford Wireless
Broadband, Inc. The Company expects fiscal year 1999 research and development
expenses to be approximately equal to that incurred during fiscal year 1998.
Marketing and Administrative. Marketing and administrative expenses were $4.7
million and $4.3 million for the first quarter of fiscal 1999 and 1998,
respectively. The increase is primarily due to an additional week of payroll
costs, increased marketing expenses in pursuit of commercial
<PAGE>
opportunities, and increased legal expenses associated with a patent
infringement case brought by the Company.
Operating Income. Operating income was $1.0 million and $1.6 million for the
first quarter of fiscal year 1999 and 1998, respectively. The decrease in
operating income during the first quarter of fiscal year 1999 compared to the
first quarter of fiscal year 1998 was significantly due to the increase in
research and development expenses associated with the wireless broadband
development effort and an increase in marketing and administrative expenses.
Interest Income. Interest income for the first quarter of fiscal 1999 remained
significantly unchanged at approximately $0.5 million.
Provision for Income Taxes. Provision for income taxes was $467 thousand and
$696 thousand for the first quarter of fiscal years 1999 and 1998, respectively.
This represents a provisional tax rate of 31.0% and 33.5% for the first quarter
of fiscal 1999 and 1998, respectively. The decrease in the effective tax rate
was primarily from increased Research and Development (R&D) tax credits and
other state income tax credits. The effective tax rate for all of fiscal year
1998 was 31%. The Company expects its provisional tax rate to remain at
approximately 31.0% throughout fiscal year 1999.
Bookings and Backlog
Funded bookings were $43.0 million and $45.3 million for the first quarter of
fiscal 1999 and 1998, respectively. The Company's backlog at the end of the
first quarter of fiscal 1999 was $92.2 million compared to $93.9 million at the
end of the first quarter of fiscal 1998.
Liquidity and Capital Resources
Working capital increased from $73.1 million to $74.6 million at March 31, 1998
and at June 30, 1998, respectively, due significantly to an increase in
receivables resulting from increased revenues.
During the first quarter ended June 30, 1998, $2.4 million of cash was provided
by operations, compared to $1.4 million during the first quarter ended June 30,
1997. This increase resulted primarily from advance payments from customers.
The Company has a bank credit commitment of $15.0 million, which it can utilize
to augment cash flow needs and to secure standby letters of credit. Available
borrowings under this line at June 30, 1998 were $15.0 million. Under this line
of credit the Company must maintain certain financial covenants. The Company was
in compliance with all covenants as of June 30, 1998. The credit agreement
expires on December 18, 1998. At June 30, 1998, the Company's long term
obligations (including current maturities) and other long-term liabilities
totaled approximately $0.9 million. At June 30, 1998, cash and cash equivalents
of $13.0 million were substantially held in money market accounts, and
short-term investments of $21.6 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 requirement for working capital, capital
expenditures and debt service for the next several fiscal quarters.
<PAGE>
Year 2000 Issues
The Company is in process of identifying anticipated costs, problems and
uncertainties associated with making both the Company's products as well as
internal-use software applications Year 2000 compliant. In general, the Company
plans to resolve Year 2000 issues associated with its own products either
through Company and/or customer paid upgrades. In the case of third party,
internal-use software, the Company is planning to obtain Year 2000 compliance
certifications from the suppliers and where necessary, replace or upgrade those
software packages which are not compliant. Although management does not expect
year 2000 issues to have a material impact on its business or future results of
operations, there can be no assurances that there will not be interruptions or
other limitations of system functionality or that the Company will not incur
significant costs to avoid such interruptions or limitations.
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On June 24, 1998 the Company held its annual meeting of stockholders. The
following directors were elected to serve for the ensuing year: No director
received less than 96% of the shares voted.
Michael Berberian
John W. Brownie
Dr. Val P. Peline
Leonard Schuchman
Dr. James J. Spilker, Jr.
Dr. C. J. Waylan
In addition, the stockholders approved an Amendment to the Employee Stock
Purchase Plan which increased the number of shares available for issue under the
Plan from 400,000 to 700,000. The shares were voted as follows:
For-11,046,780 Against-320,865 Abstain-49,758.
Finally, Arthur Andersen LLP was ratified as the Company's independent auditors
for the current fiscal year. The shares were voted as follows:
For-11,361,512 Against- 6,635 Abstain-39,656.
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)
August 7, 1998
<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> 3-MOS
<FISCAL-YEAR-END> MAR-01-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 13,085
<SECURITIES> 21,574
<RECEIVABLES> 49,399
<ALLOWANCES> 0
<INVENTORY> 14,071
<CURRENT-ASSETS> 102,705
<PP&E> 55,939
<DEPRECIATION> 41,946
<TOTAL-ASSETS> 117,284
<CURRENT-LIABILITIES> 28,098
<BONDS> 0
0
0
<COMMON> 130
<OTHER-SE> 88,222
<TOTAL-LIABILITY-AND-EQUITY> 117,284
<SALES> 44,362
<TOTAL-REVENUES> 44,362
<CGS> 34,919
<TOTAL-COSTS> 43,340
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,506
<INCOME-TAX> 467
<INCOME-CONTINUING> 1,039
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,039
<EPS-PRIMARY> 0.08
<EPS-DILUTED> 0.08
</TABLE>
