<PAGE>
================================================================================
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 March 31, 1998
----------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________________ to ___________________
Commission file number 0-14991
---------
LIFE TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C>
DELAWARE 34-0431300
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
9800 MEDICAL CENTER DRIVE, ROCKVILLE, MD 20850
(Address of principal executive offices) (Zip Code)
</TABLE>
--------------------------------
Registrant's telephone number, including area code: (301) 610-8000
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
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at April 30, 1998
----- -----------------------------
Common Stock, par value $.01 per share 23,572,006 shares
================================================================================
<PAGE>
PART I
------
FINANCIAL INFORMATION
---------------------
Item 1. Financial Statements
--------------------
CONSOLIDATED STATEMENT OF INCOME
(amounts in thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended
March 31
--------------------
1998 1997
--------- ---------
<S> <C> <C>
Revenues:
Net sales $88,355 $80,168
Net royalties 437 344
------- -------
88,792 80,512
Operating expenses:
Cost of sales 41,076 36,116
Marketing and administrative 29,035 26,759
Research and development 5,192 5,176
------- -------
Total operating expenses 75,303 68,051
------- -------
Operating income 13,489 12,461
Other income (expense):
Investment income 147 89
Interest expense (11) (9)
------- -------
Total other income 136 80
------- -------
Income before income taxes 13,625 12,541
Income taxes 4,769 4,515
------- -------
Income before minority interests 8,856 8,026
Minority interests (231) (188)
------- -------
Net income $ 8,625 $ 7,838
======= =======
Earnings per share:
Basic $ 0.37 $ 0.34
Diluted $ 0.36 $ 0.33
Average shares outstanding
Basic 23,447 22,984
Diluted 24,029 23,794
Dividends declared per share $ 0.05 $ 0.04
</TABLE>
Amounts are unaudited.
2
<PAGE>
Part I - Financial Statements (continued)
CONSOLIDATED BALANCE SHEET
(amounts in thousands, except per share data)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
---------- ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 18,337 $ 19,076
Accounts receivable, net 65,625 58,096
Inventories:
Materials and supplies 11,291 12,082
In process and finished 58,951 57,614
LIFO reserve (1,563) (1,633)
-------- --------
Total inventory 68,679 68,063
Prepaid expenses 5,948 4,485
Current deferred tax assets 5,711 5,738
-------- --------
Total current assets 164,300 155,458
Property, plant, and equipment 156,028 151,369
Less accumulated depreciation (53,313) (51,271)
-------- --------
Total property, plant, and equipment 102,715 100,098
Investments and other assets 12,136 12,353
Excess of cost over net assets of
businesses acquired, net 11,970 12,365
-------- --------
Total assets $291,121 $280,274
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 1,795 $ 2,976
Accounts payable 23,804 21,420
Income taxes 10,246 7,237
Accrued liabilities and expenses 21,341 22,898
-------- --------
Total current liabilities 57,186 54,531
Long-term debt - 4,564
Pension liabilities 6,424 5,768
Deferred income taxes 3,716 3,695
Minority interests 3,207 2,992
Stockholders' equity:
Common stock 236 234
Additional paid-in capital 58,420 54,503
Retained earnings 169,135 161,689
Accumulated other comprehensive income (7,203) (7,702)
-------- --------
Total stockholders' equity 220,588 208,724
-------- --------
Total liabilities and
stockholders' equity $291,121 $280,274
======== ========
</TABLE>
Amounts as of March 31, 1998 are unaudited.
3
<PAGE>
Part I - Financial Statements (continued)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(amounts in thousands)
<TABLE>
<CAPTION>
Three months ended
March 31
-------------------
1998 1997
-------- --------
<S> <C> <C>
CASH INFLOWS (OUTFLOWS)
Operations:
Net income $ 8,625 $ 7,838
Non-cash items:
Depreciation and amortization 3,465 2,862
Other (192) (46)
Changes in assets and liabilities (2,347) (6,545)
-------- --------
9,551 4,109
Investments:
Capital expenditures (10,114) (6,410)
Acquisitions (1,047) (828)
-------- --------
(11,161) (7,238)
Financing:
Dividends paid (1,168) (918)
Proceeds from exercise of stock options 2,775 615
Short-term borrowings (net) (1,136) (284)
Long-term loan repayments (23) (286)
-------- --------
448 (873)
Effect of exchange rate changes on cash 423 (532)
-------- --------
Decrease in cash and cash equivalents (739) (4,534)
Cash and cash equivalents at beginning of period 19,076 15,326
-------- --------
Cash and cash equivalents at end of period $ 18,337 $ 10,792
======== ========
</TABLE>
Amounts are unaudited.
STATEMENT OF COMPREHENSIVE INCOME
(amounts in thousands)
<TABLE>
<CAPTION>
Three months ended
March 31
-------------------
1998 1997
-------- --------
<S> <C> <C>
Net income $ 8,625 $ 7,838
Other comprehensive income
Currency translation effects 499 (4,472)
-------- --------
Comprehensive income $ 9,124 $ 3,366
======== ========
</TABLE>
Amounts are unaudited.
4
<PAGE>
Notes To Financial Statements:
- -----------------------------
Basic earnings per common share have been computed by dividing net income by the
weighted-average number of common shares outstanding during the period. Diluted
earnings per common share have been computed by dividing net income by the
weighted-average number of common shares outstanding plus an assumed increase in
common shares outstanding for dilutive securities.
The following table reconciles the weighted average number of common shares
outstanding during each period for basic earnings per share with the comparable
amount for diluted earnings per share.
<TABLE>
<CAPTION>
Three months ended March 31,
-------------------------------------------------------------
(amounts in thousands) 1998 1997
=============================================================
<S> <C> <C>
Weighted average shares outstanding-basic 23,447 22,984
Stock options 582 810
-------------------------------------------------------------
Weighted average shares outstanding-diluted 24,029 23,794
=============================================================
</TABLE>
As of March 31, 1998, the Company has adopted SFAS No. 130, Reporting
Comprehensive Income, which requires additional disclosures with respect to
certain changes in assets and liabilities that previously were not required to
be reported as results of operations for the period.
U.S. and international withholding taxes have not been provided on undistributed
earnings of foreign subsidiaries. The Company remits only those earnings which
are considered to be in excess of the reasonably anticipated working capital
needs of the foreign subsidiaries, with the balance considered to be permanently
reinvested in the operations of such subsidiaries. It is impractical to
estimate the total tax liability, if any, until such a distribution is made.
The following are included as components of Accumulated Other Comprehensive
Income.
<TABLE>
<CAPTION>
(amounts in thousands) Foreign currency translation
=============================================================
<S> <C>
Beginning balance (7,702)
Current period change 499
-------------------------------------------------------------
Ending balance (7,203)
=============================================================
</TABLE>
Included in capital expenditures as of March 31, 1998 is $4,635 for the exercise
of an option to purchase land under a capital lease.
In the opinion of the Company's management, the unaudited financial statements
reflect all adjustments (which consist of normal recurring adjustments)
necessary to present a fair statement of the results for the interim periods.
The results for the three-month period ended March 31, 1998 are not necessarily
indicative of the results for the year ending December 31, 1998.
Certain amounts for the 1997 year period have been reclassified to conform to
and be consistent with the 1998 presentation.
The financial data included herein have been reviewed by the Company's
independent public accountants, Coopers & Lybrand L.L.P., and their report is
attached.
5
<PAGE>
Part I - (continued)
Item 2. Management's Discussion and Analysis of Financial
-------------------------------------------------
Condition and Results of Operations
-----------------------------------
Any statements in this quarterly report concerning the Company's business
outlook or future economic performance; anticipated profitability, revenues,
expenses or other financial items; together with other statements that are not
historical facts, are "forward-looking statements" as that term is defined under
the Federal Securities Laws. Forward-looking statements are subject to risks,
uncertainties and other factors which could cause actual results to differ
materially from those stated in such statements. Such risks, uncertainties and
factors include, but are not limited to, changes in government funding for life
sciences research, changes in pricing or availability of fetal bovine serum,
changes in currency exchange rates, changes and delays in new product
introduction, customer acceptance of new products, changes in government
regulations, changes in pricing or other actions by competitors and general
economic conditions, as well as other risks detailed in the Company's filings
with the Securities and Exchange Commission.
RESULTS OF OPERATIONS
Revenues were $88.8 million in the first quarter of 1998, an increase of 10%
compared with revenues of $80.5 million in the first quarter of 1997. Net
income of $8.6 million in the first quarter of 1998 represented a 10% increase
over net income of $7.8 million reported in the comparable period of 1997.
Diluted earnings per share of $0.36 in the first quarter of 1998 were 9% greater
than diluted earnings per share of $0.33 in the first quarter of 1997.
In the first quarter of 1998 sales of products other than fetal bovine serum
(FBS) increased by $10.5 million, or 15%, when compared with the first quarter
of 1997 and excluding the effect of changes due to different currency exchange
rates. FBS net sales increased $0.6 million, or 6%, on a currency comparable
basis as unit sales increased 8%. FBS sales represented 11% of net sales in the
first quarter of 1998 compared with 12% of net sales in the comparable period of
1997. Net sales in the first quarter of 1998 were $2.9 million, or 4%, lower
than they would have been at the exchange rates in effect in the first quarter
of 1997.
Gross margins were 53.5% of net sales in the first quarter of 1998 compared with
54.9% of net sales in the first quarter of 1997. The decrease in gross margins
as a percentage of net sales was principally attributable to currency exchange
rate changes from the first quarter of 1997 to the first quarter of 1998. A
significant portion of the Company's materials and products are acquired or
manufactured in U.S. dollars or British pounds sterling. These currencies have
appreciated in value relative to some of the currencies in which the ultimate
sale to the Company's customer occurs, principally the Continental European and
Asian currencies. FBS gross margins improved in the first quarter of 1998
compared with the first quarter of 1997 as unit costs decreased at a greater
rate than unit selling prices.
6
<PAGE>
Marketing and administrative expenses were 32.9% of net sales in the first
quarter of 1998 and 33.4% of net sales in the comparable period of 1997. Income
taxes were 35% of income before taxes in the first quarter of 1998 compared with
36% of income before taxes in the first quarter of 1997. The effective income
tax rate was lower in the 1998 period principally due to greater benefits from
tax credits recognized in the 1998 period as well as the realization of more
taxable income in countries with lower tax rates. Income attributed to minority
interest holding increased due to higher income in the first quarter of 1998 at
consolidated entities less than 100% owned.
LIQUIDITY AND CAPITAL RESOURCES
Operating activities provided $9.6 million in cash during the first three months
of 1998. Net income after adjustments for depreciation and amortization was the
principal source of cash from operations in 1998. Working capital increases
were the principal use of cash from operations.
The Company paid $10.1 million for capital expenditures in the first three
months of 1998. Capital expenditures included $4.6 million for the exercise of
an option to purchase land under a capital lease. The Company also paid $1.0
million in deferred purchase payments related to the 1996 acquisition of Custom
Primers Inc.
Cash used for financing activities included a $1.2 million dividend payment paid
in the first three months of 1998. The Company paid $1.2 million to reduce
outstanding loans to several banks and reduce the principal balance on a capital
lease. The Company received $2.8 million from the exercise of stock options.
The Company is in the process of replacing its core financial, order
entry/distribution, and manufacturing systems at its major locations worldwide.
The Company has been advised by the software vendor that the release/version of
the software being implemented by the Company is Year 2000 compliant. The
Company is also conducting a review of other internal and external systems which
may require modification or upgrade to be made Year 2000 compliant. The Company
is in the process of working with its customers and suppliers to identify,
modify or upgrade its existing systems which are not currently Year 2000
compliant. The Company believes that the cost of completing the modifications
necessary to become Year 2000 compliant will not be material. There can be no
assurance, however, that the Company will be able to identify all aspects of its
business that are subject to Year 2000 problems, or identify Year 2000 problems
of customers or suppliers that affect the Company's business. There also can be
no assurance that the Company's software vendors are correct in their assertions
that the software is Year 2000 compliant or that the Company's estimate of the
cost of systems preparation for Year 2000 compliance will prove ultimately to be
accurate.
Capital expenditures in 1998 are expected to range from $20-25 million. The
Company is contemplating additional facility upgrades and expansions of $5-15
million with the balance of expected 1998 capital expenditures for new and
replacement machinery, equipment and management information systems. In April
1998, the stockholders of the Company approved a stock repurchase program of up
7
<PAGE>
to one million shares of the Company's Common Stock from time to time over the
next 24 months in the open market or in privately negotiated transactions.
The Company is actively evaluating licensing possibilities, as well as
acquisition candidates which complement the Company's core cell and molecular
biology and cell culture product lines. The Company believes it will be able to
generate sufficient cash from its operations and its existing credit facility to
meet all its anticipated cash requirements in 1998 apart from any significant
business acquisition which may occur and which may be financed using cash from
operations, debt, equity, or other sources.
NEW ACCOUNTING PRONOUNCEMENT
The Financial Accounting Standards Board has issued, SFAS No. 131, Disclosures
about Segments of an Enterprise and Related Information, which became effective
for reporting periods beginning after December 15, 1997. Interim reporting is
not required under SFAS No. 131 prior to adoption. SFAS No. 131, Disclosures
about Segments of an Enterprise and Related Information, requires financial and
descriptive information with respect to "operating segments" of an entity based
on the way management disaggregates the entity for making internal operating
decisions. The Company will begin making the disclosures required by SFAS No.
131 with financial statements for the period ending December 31, 1998. There
will be no financial impact from the adoption of SFAS No. 131. SFAS No. 131 has
a disclosure impact, as there will be further disclosures, as results are
disaggregated.
Item 3. Quantitative and Qualitative Disclosures About Market Risks
-----------------------------------------------------------
- not applicable.
8
<PAGE>
PART II - OTHER INFORMATION
------- -----------------
Item 1. Legal Proceedings - Not applicable.
-----------------
Item 2. Changes in Securities - Not applicable.
---------------------
Item 3. Defaults Upon Senior Securities - Not applicable.
-------------------------------
Item 4. Submission of Matters to a Vote of Security Holders - Not applicable.
---------------------------------------------------
Item 5. Other Information - Not applicable.
-----------------
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits:
3(A). Certificate of Amendment of the Certificate of Incorporation
of Life Technologies, Inc. dated April 14, 1998.
15. Letter re unaudited interim financial information.
27. Financial data schedule
(b) Reports on Form 8-K.
There were no reports on Form 8-K filed for the three months ended
March 31, 1998.
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.
LIFE TECHNOLOGIES, INC.
Date: May 6, 1998 By: /s/ Joseph C. Stokes, Jr.
-----------------------------
Joseph C. Stokes, Jr.
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer
and Authorized Signatory)
By: /s/ C. Eric Winzer
-----------------------------
C. Eric Winzer
Controller
(Principal Accounting
Officer)
10
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors
Life Technologies, Inc.
We have reviewed the accompanying consolidated balance sheet of Life
Technologies, Inc. and its subsidiaries as of March 31, 1998 and the related
consolidated statements of income and comprehensive income for the three-month
periods ended March 31, 1998, and 1997, and the related condensed consolidated
statement of cash flows for the three-month periods then ended. These financial
statements are the responsibility of the Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying consolidated financial statements referred to above
for them to be in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of December 31, 1997 and the
related consolidated statements of income, stockholders' equity and cash flows
for the year then ended (not presented herein), and in our report dated January
23, 1998 we expressed an unqualified opinion on those consolidated financial
statements.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
McLean, Virginia
April 9, 1998
11
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Page
----
<S> <C> <C>
Exhibit 3(A) Certificate of Amendment of the Certificate of 13
Incorporation of Life Technologies, Inc. dated
April 14, 1998.
Exhibit 15 Letter re unaudited interim financial information 16
Exhibit 27 Financial data schedule 18
</TABLE>
12
<PAGE>
EXHIBIT 3(A)
------------
CERTIFICATE OF AMENDMENT OF THE CERTIFICATE OF INCORPORATION
------------------------------------------------------------
OF LIFE TECHNOLOGIES, INC. DATED APRIL 14, 1998
-----------------------------------------------
13
<PAGE>
EXHIBIT 3(A)
CERTIFICATE OF AMENDMENT OF
THE CERTIFICATE OF INCORPORATION OF
LIFE TECHNOLOGIES, INC.
LIFE TECHNOLOGIES, INC., a corporation organized and existing under
and by virtue of the General Corporation Law of the State of Delaware (the
"Corporation"), DOES HEREBY CERTIFY:
FIRST: That at a meeting of the Board of Directors of the Corporation
held on February 10, 1998, the Board of Directors of the Corporation duly
adopted a resolution setting forth a proposed amendment to Article EIGHTH of the
Certificate of Incorporation, as amended, of the Corporation (the
"Certificate"), declaring said amendment to be advisable and directing that the
proposed amendment be placed before the stockholders of the Corporation for
consideration thereof. The resolution setting forth the proposed amendment is
as follows:
RESOLVED, that Article EIGHTH, subsection (3)(ii), of the
Certificate be amended to read in its entirety in the form
attached hereto as Attachment A;
SECOND: That thereafter, pursuant to resolution of the Board of
Directors of the Corporation, the annual meeting of stockholders of the
Corporation was duly called and held, at which meeting the necessary number of
stockholders as required by statute and by the Certificate voted in favor of and
approved said amendment to the Certificate.
THIRD: That said amendment was duly adopted in accordance with the
provisions of Section 242 of the General Corporation Law of the State of
Delaware.
IN WITNESS WHEREOF, LIFE TECHNOLOGIES, INC. has caused this
certificate to be signed by its President and attested by its Secretary, who
hereby affirm, under penalties of perjury, that this certificate is the act and
deed of the Corporation and that the facts stated herein are true.
Date: April 14, 1998 /s/ J. Stark Thompson
-----------------------------------
J. Stark Thompson
President
ATTEST:
/s/ Joseph C. Stokes, Jr
- ------------------------
Joseph C. Stokes, Jr.
Secretary
14
<PAGE>
EXHIBIT 3(A) - PAGE TWO
ATTACHMENT A
(ii) The term "Business Combination with a Related Person" shall mean
(a) the consolidation or merger of the Corporation or any Subsidiary with or
into any "Related Person" (as hereinafter defined) or any other corporation
(whether or not itself a Related Person) which is, or after such merger or
consolidation would be, an Affiliate (as hereinafter defined) of a Related
Person, (b) any sale, lease, exchange, mortgage, pledge, transfer or other
disposition (in one or a series of transactions) to or with any Related Person
or any Affiliate of a Related Person of any Substantial Part of the assets or
business of the Corporation or any Subsidiary, (c) any sale, lease, exchange,
mortgage, pledge, transfer or other disposition, of all or any Substantial Part
of the assets of a Related Person or an Affiliate of a Related Person to the
Corporation or a Subsidiary, (d) the issuance or transfer by the Corporation or
a Subsidiary (in one transaction or a series of transactions) of any securities
of the Corporation or any Subsidiary to any Related Person or any Affiliate of
any Related Person, except the issuance of shares of Common Stock of the
Corporation to The Dexter Corporation pursuant to the terms of a Merger
Agreement, dated September 1, 1983, between the Corporation and Bethesda
Research Laboratories, Inc., (e) any reclassification of securities (including
any reverse stock split), or recapitalization of the Corporation, or any merger
or consolidation of the Corporation with any of its Subsidiaries or any other
transaction (whether or not with or into or otherwise involving a Related
Person), which has the effect, directly or indirectly, of increasing the
proportionate share of the outstanding shares of any class of equity or
convertible securities of the Corporation or any Subsidiary which is directly or
indirectly owned by any Related Person or any Affiliate of any Related Person,
except as a result of immaterial changes due to fractional share adjustments or
as a result of any purchase or redemption of any shares of stock by the
Corporation, (f) a Combination or Majority Share Acquisition involving a Related
Person in which the Corporation is the Acquiring Corporation and its Common
Stock is issued or transferred in connection with such Combination or Majority
Share Acquisition, and (g) any agreement, contract or other arrangement
providing for any of the transactions described in this definition of Business
Combination with a Related Person.
15
<PAGE>
EXHIBIT 15
----------
LETTER RE UNAUDITED INTERIM FINANCIAL INFORMATION
-------------------------------------------------
16
<PAGE>
Exhibit 15
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
We are aware that our report dated April 9, 1998 on our review of interim
financial information of Life Technologies, Inc. (the Company) for the three-
month periods ended March 31, 1998 and 1997, included in this Form 10-Q is
incorporated by reference in the Company's registration statements on Form S-8,
Registration No. 333-28607, Registration No. 333-03773, Registration
No. 33-59741, Registration No. 33-21807 and Registration No. 33-956, and the
Company's registration statement on Form S-3, Registration No. 33-29536.
Pursuant to Rule 436(c) under the Securities Act of 1933, this report should not
be considered a part of the registration statements prepared or certified by us
within the meaning of Section 7 and 11 of that Act.
/s/ Coopers & Lybrand L.L.P.
COOPERS & LYBRAND L.L.P.
McLean, Virginia
May 5, 1998
17
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Balance
Sheet and Income Statement and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 18,337
<SECURITIES> 0
<RECEIVABLES> 67,157
<ALLOWANCES> 1,532
<INVENTORY> 68,679
<CURRENT-ASSETS> 164,300
<PP&E> 156,028
<DEPRECIATION> 53,313
<TOTAL-ASSETS> 291,121
<CURRENT-LIABILITIES> 57,186
<BONDS> 0
0
0
<COMMON> 236
<OTHER-SE> 220,352
<TOTAL-LIABILITY-AND-EQUITY> 291,121
<SALES> 88,355
<TOTAL-REVENUES> 88,792
<CGS> 41,076
<TOTAL-COSTS> 41,076
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 11
<INCOME-PRETAX> 13,625
<INCOME-TAX> 4,769
<INCOME-CONTINUING> 8,625
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,625
<EPS-PRIMARY> 0.37
<EPS-DILUTED> 0.36
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Balance
Sheet and Income Statement and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997 DEC-31-1997
<PERIOD-END> MAR-31-1997 JUN-30-1997 SEP-30-1997
<CASH> 10,792 19,139 22,090
<SECURITIES> 0 0 0
<RECEIVABLES> 58,311 63,988 62,562
<ALLOWANCES> 1,442 1,548 1,566
<INVENTORY> 65,208 63,503 66,846
<CURRENT-ASSETS> 142,485 154,325 159,086
<PP&E> 137,142 141,949 147,662
<DEPRECIATION> 47,331 47,296 49,103
<TOTAL-ASSETS> 256,695 272,935 281,321
<CURRENT-LIABILITIES> 55,065 59,735 61,871
<BONDS> 0 4,612 4,590
0 0 0
0 0 0
<COMMON> 230 232 233
<OTHER-SE> 185,973 196,867 202,313
<TOTAL-LIABILITY-AND-EQUITY> 256,695 272,935 281,321
<SALES> 80,168 164,724 247,967
<TOTAL-REVENUES> 80,512 165,531 249,204
<CGS> 36,116 75,185 113,311
<TOTAL-COSTS> 36,116 75,185 113,311
<OTHER-EXPENSES> 0 0 0
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 9 32 48
<INCOME-PRETAX> 12,541 25,823 38,362
<INCOME-TAX> 4,515 8,296 13,810
<INCOME-CONTINUING> 7,838 16,176 24,049
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> 7,838 16,176 24,049
<EPS-PRIMARY> 0.34 0.70 1.04
<EPS-DILUTED> 0.33 0.68 1.01
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Balance
Sheet and Income Statement and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1996 DEC-31-1996
<PERIOD-END> MAR-31-1996 JUN-30-1996 SEP-30-1996
<CASH> 16,598 23,270 22,282
<SECURITIES> 0 0 0
<RECEIVABLES> 56,621 58,070 56,869
<ALLOWANCES> 1,213 1,373 1,490
<INVENTORY> 62,273 60,092 59,766
<CURRENT-ASSETS> 144,159 148,556 145,988
<PP&E> 95,481 104,070 118,019
<DEPRECIATION> 39,750 41,428 43,315
<TOTAL-ASSETS> 221,161 233,409 244,591
<CURRENT-LIABILITIES> 50,819 55,186 59,432
<BONDS> 0 1,101 1,086
0 0 0
0 0 0
<COMMON> 152 153 229
<OTHER-SE> 159,327 166,369 173,550
<TOTAL-LIABILITY-AND-EQUITY> 221,161 233,409 244,591
<SALES> 76,630 154,060 231,124
<TOTAL-REVENUES> 76,630 154,194 231,683
<CGS> 35,817 72,559 109,857
<TOTAL-COSTS> 35,817 72,559 109,857
<OTHER-EXPENSES> 0 0 0
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 42 84 89
<INCOME-PRETAX> 10,992 24,521 35,303
<INCOME-TAX> 3,957 8,827 12,709
<INCOME-CONTINUING> 6,682 14,977 21,608
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> 6,682 14,977 21,608
<EPS-PRIMARY> 0.29 0.65 0.94
<EPS-DILUTED> 0.29 0.64 0.92
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Balance
Sheet and Income Statement and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1995
<PERIOD-END> DEC-31-1996 DEC-31-1995
<CASH> 15,326 23,201
<SECURITIES> 0 0
<RECEIVABLES> 56,034 49,947
<ALLOWANCES> 1,468 1,225
<INVENTORY> 62,320 60,845
<CURRENT-ASSETS> 140,497 142,022
<PP&E> 134,303 89,690
<DEPRECIATION> 45,936 37,829
<TOTAL-ASSETS> 253,931 208,744
<CURRENT-LIABILITIES> 56,301 45,261
<BONDS> 4,668 1,451
0 0
0 0
<COMMON> 230 152
<OTHER-SE> 182,689 153,925
<TOTAL-LIABILITY-AND-EQUITY> 253,931 208,744
<SALES> 309,455 272,232
<TOTAL-REVENUES> 310,339 272,299
<CGS> 147,018 135,784
<TOTAL-COSTS> 147,018 135,784
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 89 76
<INCOME-PRETAX> 46,720 34,943
<INCOME-TAX> 16,819 12,160
<INCOME-CONTINUING> 28,700 22,277
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 28,700 22,277
<EPS-PRIMARY> 1.25 0.99
<EPS-DILUTED> 1.22 0.97
</TABLE>
