<PAGE> 1
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, 1995, 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: 0-13459
DH Technology, Inc.
(Exact name of registrant as specified in its charter)
California 94-2917470
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
15070 Avenue of Science, San Diego, California 92128
(Address of principal executive office)
Registrant's telephone number, including area code:
(619) 451-3485
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 XXX No____
As of September 30, 1995 there were 8,265,778
shares of the registrant's Common Stock outstanding.
<PAGE> 2
DH TECHNOLOGY, INC. AND SUBSIDIARIES
INDEX
<TABLE>
<S> <C>
PART I. FINANCIAL INFORMATION PAGE NO.
Condensed Consolidated Balance Sheets 1
September 30, 1995, and December 31, 1994
Condensed Consolidated Statements of Income 2
Three months and nine months ended
September 30, 1995, and September 30, 1994
Condensed Consolidated Statements of Cash Flows 3
Nine months ended September 30, 1995, and
September 30, 1994
Notes to Condensed Consolidated Financial Statements 4
Management's Discussion and Analysis of 5
Financial Conditions and Results of Operations
PART II. OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K 10
SIGNATURES 11
EXHIBITS INDEX 12
</TABLE>
<PAGE> 3
PART 1 - FINANCIAL INFORMATION
DH TECHNOLOGY, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1995 1994
(Unaudited)
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $28,032 $19,587
Short-term investment securities 2,435 4,300
held to maturity
Accounts receivable, net 13,831 12,435
Inventories 12,780 11,386
Prepaid expenses and other 1,747 1,721
current assets
------- -------
Total current assets 58,825 49,429
------- -------
Fixed assets 17,712 16,779
Less accumulated depreciation
and amortization 11,344 10,008
------- -------
6,368 6,771
Intangibles 13,470 14,549
Other assets 1,223 557
------- -------
Total assets $79,886 $71,306
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $5,706 $4,557
Current portion of long-term 1,069 1,363
debt
Accrued payroll 2,146 2,148
Accrued expenses 2,329 1,928
Income taxes payable 1,121 1,356
Deferred revenue 928 886
------- -------
Total current liabilities 13,299 12,238
Non-current portion of long-term
debt 1,960 2,992
Deferred tax liability 228 228
------- -------
Total liabilities 15,488 15,458
------- -------
Shareholders'equity:
Preferred shares, no par value
Authorized: 1,000,000 shares,
none issued -- --
Common shares:
Common stock, authorized:
28,500,000 shares; issued and
outstanding: 8,265,778 shares
in 1995 and 8,059,094 shares
in 1994 11,758 10,740
Foreign currency translation
adjustment (242) (255)
Retained earnings 52,882 45,363
------- -------
Total shareholders' equity 64,398 55,848
------- -------
Total liabilities and
shareholders' equity $79,886 $71,306
======= =======
</TABLE>
The accompanying notes are an integral part of these
condensed consolidated financial statements.
Page 1
<PAGE> 4
DH TECHNOLOGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(September 30, 1995 and 1994)
(In thousands, except per share data)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
September 30 September 30
(Unaudited) (Unaudited)
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Net Sales $25,278 $20,342 $72,850 55,272
Cost of net sales 16,438 12,730 46,729 34,595
------- ------- ------- -------
Gross margin 8,840 7,612 26,121 20,677
Operating expenses:
Selling, general 3,677 3,475 11,648 9,071
and administrative
Research and development 1,354 1,168 3,598 3,401
------- ------- ------- -------
Total operating expenses 5,031 4,643 15,246 12,472
Income from operations 3,808 2,969 10,875 8,205
Interest income 398 221 956 635
Interest expense 90 75 223 118
------- ------- ------- -------
Income before income taxes 4,116 3,115 11,608 8,722
Income taxes 1,460 1,025 4,090 2,838
------- ------- ------- -------
Net income $2,656 $2,090 $7,519 $5,884
Net income per share $.32 $.26 $.91 $.73
Weighted average number of
shares outstanding
Per share (primary and
fully diluted): 8,341 8,129 8,266 8,060
</TABLE>
The accompanying notes are an integral part of these condensed
consolidated financial statements.
Page 2
<PAGE> 5
DH TECHNOLOGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30
(Unaudited)
-----------------
1995 1994
------ ------
<S> <C> <C>
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS FROM:
Operating activities:
Net income $7,519 $5,884
Adjustments to reconcile net income to net
cash provided by operations:
Depreciation and amortization 2,747 1,739
Provision for loss on accounts receivable 52 94
Undepreciated value of asset disposals 47 4
Changes in assets and liabilities
excluding effect of acquisitions (1,513) (3,489)
------- -------
Net cash provided by operating activities 8,852 4,232
Investing activities:
Net decrease in short-term investment
securities held to maturity $1,865 3,220
Payment for acquisition, net of cash acquired 0 (12,568)
Capital expenditures (1,969) (2,149)
Proceeds from sale of fixed assets 0 26
------- -------
Net cash used in investing activities (104) (11,471)
Financing activities:
Principal repayments on long-term debt (1,325) (1,385)
Exercise of stock options 1,018 388
------- -------
Net cash used in financing activities (307) (997)
Effect of exchange rate changes on cash 4 313
Net increase (decrease) in cash and cash equivalents 8,445 (7,923)
Cash and cash equivalents at beginning of period 19,587 23,161
------- -------
Cash and cash equivalents at end of period $28,032 $15,238
======= =======
Interest paid on debt $172 $71
Income taxes paid $3,352 $2,490
Supplementary disclosure of noncash investing
activity:
Fair market value of assets acquired -- $15,824
Cash paid -- $12,696
------- -------
Long-term debt incurred -- $3,128
======= =======
</TABLE>
The accompanying notes are an integral part of these
condensed consolidated financial statements
Page 3
<PAGE> 6
DH TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
(September 30, 1995 - Unaudited)
Note 1: Basis of Presentation
The accompanying condensed consolidated financial
statements have been prepared in accordance with
S.E.C. requirements for interim financial
statements. Therefore, they do not include all
disclosures that would be presented in the
Company's Annual Report on Form
10-K. The financial statements should be read in
conjunction with the financial statements
contained in the Company's Annual Report on Form
10-K for the year ended December 31, 1994.
The information furnished reflects all adjustments
(consisting only of normal recurring adjustments)
which are, in the opinion of management, necessary
for a fair presentation of financial position,
results of operations, and changes in cash
position for the interim period. The results of
operations for the periods presented are not
necessarily indicative of results to be expected
for the full year.
The Board of Directors authorized a three-for-two
common stock split effective September 22, 1995.
All share and per share data have been
retroactively restated to give effect to the stock
split.
Note 2: Inventories
The composition of inventories at September 30,
1995, and December 31, 1994, were as follows:
<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Raw Materials $7,100,000 $5,712,000
Work in Process 1,660,000 1,528,000
Finished Goods 4,020,000 4,146,000
----------- -----------
Totals $12,780,000 $11,389,000
=========== ===========
</TABLE>
Note 3: Operations subject to Purchase and Sale Agreements
On February 28, 1994, DH Technology, Inc. acquired
all of the outstanding stock of Stadia Colorado
Corp. (Stadia) pursuant to a stock purchase
agreement for $6.5 million in cash ($5.5 million
paid at closing, $500,000 paid on March 1, 1995,
and an additional payment of $500,000 on March 1,
1996). This business is being operated as a
subsidiary of DH Technology, Inc. under the name
Stadia Colorado Corp. Stadia, located in Golden,
Colorado, supplies labeling and marking solutions
to a variety of customers in ten western states.
On August 31, 1994, DH Technology, Inc. acquired
all of the outstanding stock of Cognitive
Solutions, Inc. (Cognitive) and certain technology
rights pursuant to a stock purchase agreement for
$10 million in cash ($7.2 million paid at closing,
$248,000 paid 70 days after close, and additional
payments of $500,000 each due in 1996 through
1999). Also, the Company is required to make
additional payments, not to exceed an aggregate of
$3 million, to the former shareholder of Cognitive
based upon post-acquisition net sales of a
specified Cognitive product line. At the end of
each calendar year, the company will calculate the
amount of the additional payment as defined in the
stock purchase agreement. Each payment will be
treated as additional acquisition cost, and will
be recorded as additional goodwill, amortized
straight-line over the remaining life of the
asset. This business is being operated as a
subsidiary of DH Technology, Inc. under the name
Cognitive Solutions, Inc. and is located in Paso
Robles, California. Cognitive designs,
manufactures, and markets thermal bar code
printers and complementary label media for use in
automatic data collection systems.
Page 4
<PAGE> 7
The Stadia and Cognitive acquisitions were
accounted for using the purchase method;
accordingly, the assets and liabilities of the
acquired companies have been recorded at their
estimated fair values at the dates of acquisition.
In conjunction with the acquisitions of Stadia and
Cognitive, the excess of purchase price over the
estimated fair values of the net assets acquired
has been recorded as goodwill of $4,062,000 and
$5,590,000, respectively, which is being amortized
over 25 years using the straight-line method. The
consolidated statements of income include the
operations of Stadia from February 28, 1994, and
Cognitive from August 31, 1994.
Note 4: Subsequent Event
On October 30, 1995 the Company acquired certain
assets and liabilities of Mos Magnetics, a privately
held company in San Diego, California, for $752,000
cash. Mos Magnetics designs, manufactures,
and markets magnetic read and write heads and modules
for credit card and debit card readers, check readers,
and airline ticket readers. The Company is required to
make additional payments, not to exceed an aggregate of
$1.3 million, to Mos Magnetics based upon post-acquisition
net sales by the company of a specific Mos product line.
At the end of each calendar year, the company will calculate
the amount of the additional payment as defined in the asset
purchase agreement. Each payment will be treated as
additional acquisition cost, and will be recorded as
additional goodwill, amortized straight-line over the
remaining life of the asset.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be
read in conjunction with DH Technology, Inc.'s
condensed consolidated financial statements and
the notes related thereto included herein.
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1995, COMPARED TO
THREE MONTHS ENDED SEPTEMBER 30, 1994
Net sales of $25.3 million for the quarter ended
September 30, 1995, increased 24.3% over net sales
of $20.3 million for the same period last year.
The inclusion of Cognitive's results for the entire
1995 quarter and increased unit shipments of transaction
printers accounted for the increased sales in approximately
equal amounts.
Cost of net sales increased to 65.0% of net sales
for the third quarter of 1995 compared to 62.6% of
net sales for the third quarter of 1994. The following
three factors contributed to the increased costs in
approximately equal amounts. The first was the inclusion
of results for Cognitive for the entire current quarter.
Cognitive's product lines have slightly lower margins
than the historical average for the Company. The second
factor was the timing of new product roll-outs and higher
component and expediting costs caused by integrated circuit
shortages. The third factor contributing to the increase
was the shipment of a sizable order for low end transaction
printers with gross margins considerably lower than the
historical average for the company.
Selling, general, and administrative expenses decreased
to 14.5% of net sales in the third quarter of 1995 compared
to 17.1% in the same period in 1994 due to consolidated
revenue increasing at a faster rate than consolidated
selling, general, and administrative expenses. These
expenses increased in absolute dollars to $3.7 million
in the third quarter of 1995 from $3.5 million in the
third quarter of 1994. This increase was primarily
attributable to the inclusion of results for Cognitive
for the entire third quarter of 1995.
Page 5
<PAGE> 8
Research and development expenses decreased to
5.4% of net sales in the third quarter of 1995
compared to 5.7% in the same period last year due
to consolidated revenues increasing at a faster
rate than consolidated research and development
expenses. Total dollars expended for research and
development increased to $1.4 million in the third
quarter of 1995 from $1.2 million in the same
period last year. The Company believes that the
continued timely development of new products and
enhancements to its existing products are
essential to maintaining the Company's competitive
position. Accordingly, the Company anticipates
that such expenses will continue to increase in absolute
dollars.
Income from operations as a percentage of net
sales increased to 15.1% for the quarter ended
September 30, 1995, compared to 14.6% for the same
period in 1994 primarily due to lower selling,
general, and administrative expenses as a
percentage of revenue as discussed above.
Interest income increased to $398,000 in the third
quarter of 1995 compared to $221,000 in the third
quarter of 1994 as a result of higher cash
balances and higher interest rates in the third
quarter of 1995.
Interest expense increased to $90,000 for the
quarter ended September 30, 1995, from $75,000 for
the same period in 1994 due to interest expense
associated with debt incurred as a result of the
Cognitive acquisition.
Income taxes as a percentage of income before
income taxes increased to 35.5% for the third
quarter of 1995 from 32.9% for the same 1994
period, partially due to nondeductible goodwill
amortization resulting from the Cognitive
acquisition. The remainder of the increase was
due to a higher level of income, which increased
the Company's effective tax rate. For this reason,
the Company also expects a further increase in its
effective tax rate in the fourth quarter of 1995.
The Company's results of operations may be
affected in the future by a variety of factors
including, but not limited to, changes in product
mix, competitive pressures on prices, fluctuations
in manufacturing yields, product cost increases,
acquisitions of new businesses with different cost
and expense structures, the timing of product
introductions and market demand for new products,
operating expenses, and the cancellation or
rescheduling of orders by the Company's customers.
In addition, the Company's results could be
affected by general economic conditions and
technology changes in the markets in which it
competes.
NINE MONTHS ENDED SEPTEMBER 30, 1995, COMPARED TO
NINE MONTHS ENDED SEPTEMBER 30, 1994
Net sales of $72.9 million for the nine-month
period ended September 30, 1995, increased 31.8%
over net sales of $55.3 million for the same
period last year. Approximately half of this increase
was attributable to the inclusion of Cognitive's
results for the entire 1995 period. Other factors
included increased shipments of the Company's products,
and the inclusion of a full nine month's results in 1995
for Stadia.
Cost of net sales increased to 64.1% of net sales
for the first nine months of 1995 compared to
62.6% of net sales for the same period in 1994.
Three factors contributed approximately equally to
the increase. The first was the inclusion of results
for Cognitive for the entire year of 1995. Cognitive's
product lines have slightly lower margins than the
historical average for the Company. The second factor
was the timing of new product roll-outs and higher
component and expediting costs caused by integrated
circuit shortages. The third factor contributing to
the increase was the shipment of a sizable order for
low end transaction printers with gross margins
considerably lower than the historical average for
the Company.
Page 6
<PAGE> 9
Selling, general, and administrative expenses
decreased to 16.0% of net sales for the nine-month
period ended September 30, 1995, compared to 16.4%
in the same period in 1994. These expenses
increased in absolute dollars to $11.6 million in
the nine-month period ended September 30, 1995
from $9.1 million in the same period last year.
This increase was primarily attributable to the
inclusion of results for Cognitive for the entire
1995 period.
Research and development expenses decreased to
4.9% of net sales in the nine month period ended
September 30, 1995 compared to 6.2% in the same
period last year due to consolidated revenues
increasing at a faster rate than consolidated
research and development expenses. Total dollars
expended for research and development increased to
$3.6 million in the first nine months of 1995 from
$3.4 million in the same period last year. The
Company believes that the continued timely
development of new products and enhancements to
its existing products are essential to maintaining
the Company's competitive position. Accordingly,
the Company anticipates that such expenses will
continue to increase in absolute dollars.
Income from operations as a percentage of net
sales remained relatively unchanged at 14.9% for
the first nine months of both 1994 and 1995.
Interest income increased to $956,000 in the first
nine months of 1995 compared to $635,000 in the
same period in 1994 as a result of higher cash
balances and higher interest rates during 1995.
Interest expense increased to $223,000 for the
nine months ended September 30, 1995, from
$118,000 for the same period in 1994 due to
interest expense associated with debt incurred as
a result of the Stadia and Cognitive acquisitions.
Income taxes as a percentage of income before
income taxes increased to 35.2% for the first nine
months of 1995 from 32.5% for the same 1994
period. This is due in part to nondeductible
goodwill amortization resulting from the Stadia
and Cognitive acquisitions. Additionally, the
effective tax rate increased in the third quarter
of 1995, and will again to increase in the fourth
quarter, due to a higher level of taxable income.
The Company's results of operations may be
affected in the future by a variety of factors
including, but not limited to, changes in product
mix, competitive pressures on prices, fluctuations
in manufacturing yields, product cost increases,
acquisitions of new businesses with different cost
and expense structures, the timing of product
introductions and market demand for new products,
operating expenses, and the cancellation or
rescheduling of orders by the Company's customers.
In addition, the Company's results could be affected
by general economic conditions and technology changes
in the markets in which it competes.
FINANCIAL CONDITION, LIQUIDITY, AND CAPITAL RESOURCES
The Company's primary source of liquidity has been
cash flow generated from operations. Cash, cash
equivalents, and short-term investment securities
held to maturity totaled approximately $30.5
million on September 30, 1995, compared to $23.9
million on December 31, 1994.
OPERATING ACTIVITIES
For the nine-month period ended September 30,
1995, the Company generated approximately $8.9
million in net cash from operating activities
primarily as a result of approximately $7.5
million in net income and $2.7 million in
depreciation and amortization, offset by an
increase in net operating assets and liabilities
of $1.5 million. Since December 31, 1994,
accounts receivable increased $1.4 million due
primarily to increased unit shipments.
Page 7
<PAGE> 10
INVESTING ACTIVITIES
Excluding short-term investment securities held to
maturity, the Company's principal investing
activities to date have been the purchase of
property and equipment for product development and
production. As of September 30, 1995, the Company
had no material commitments for capital
expenditures; however, the Company will continue
to invest in property and equipment as needed.
Additionally, on February 28, 1994, the Company
acquired Stadia Colorado Corp. in exchange for
$6.5 million cash ($5.5 million paid at closing,
$500,000 paid on March 1, 1995, and an additional
payment of $500,000 due in 1996). Likewise, on
August 31, 1994, the Company acquired 100% of the
outstanding stock of Cognitive and certain
technology rights in exchange for $10 million in
cash ($7.2 million paid at closing, $248,000 paid
70 days after close, and additional payments of
$500,000 each due in 1996 through 1999). Also,
the Company is required to make additional
payments, not to exceed an aggregate of $3
million, to the former shareholder of Cognitive
based upon post-acquisition net sales of a
specified Cognitive product line. (See Note 3 of
notes to condensed consolidated financial
statements included herein).
Subsequent to the end of the third quarter, on
October 30, 1995, the Company acquired certain
assets and liabilities of Mos Magnetics, a
privately held company in San Diego, California,
for $752,000 cash. Mos Magnetics designs,
manufactures, and markets magnetic read
and write heads and modules for credit card and
debit card readers, check readers, and airline
ticket readers. (See Note 4 of notes to condensed
consolidated financial statements included herein).
The Company continues to evaluate potential
acquisitions of businesses that would complement
the Company's existing businesses and product
lines, and any such acquisitions could require the
use of the Company's cash resources and/or
additional borrowings.
FINANCING ACTIVITIES
The Company's major financing activities to date
have been the principal repayments on long-term
debt. As of September 30, 1995, the Company had
$3.0 million in debt outstanding of which the
current portion was approximately $1.1 million.
This long-term debt includes approximately
$500,000 payable to the former owners of Stadia in
one installment due in 1996 and $2 million
payable to the former owner of Cognitive in annual
installments of $500,000 each due in 1996 through
1999. Long-term debt decreased approximately $1.3
million due primarily to principal repayments on
long-term debt associated with the Stadia and
Cognitive acquisitions.
The Company expects that current cash balances and
cash generated internally will adequately fund the
Company's anticipated cash needs at least through
the next twelve months. In addition, on August 15,
1995, the Company renewed a $6.5 million line of credit
agreement originally signed on August 15, 1994. The
line of credit includes a subfeature to issue standby
and/or commercial letters of credit not to exceed $1.5
million. Borrowings under the line bear interest
at a rate per annum equal to the prime rate in
effect from time to time. As of September 30,
1995, no draws had been made against this line of
credit.
Page 8
<PAGE> 11
Item 6 - Exhibits and reports on Form 8-K
(a) Exhibits:
Exhibit 11 Computation of Net Income Per Share.
Exhibit 27 Financial Data Schedule.
(b) Reports on Form 8-K
No report on Form 8-K was filed during the quarter ended
September 30, 1995.
Page 9
<PAGE> 12
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.
November 10, 1995 /s/Janet W. Shanks
- --------------- -----------------------------
Date Janet W. Shanks, Corporate Controller
(Chief Accounting Officer)
Page 10
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DH TECHNOLOGY, INC.
EXHIBITS TO QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
SEQUENTIALLY
EXHIBIT DESCRIPTION NUMBERED PAGE
- ------- ---------- -------------
<S> <C> <C>
11 Computation of Net Income Per Share 12
27 Financial Data Schedule 13
Page 11
</TABLE>
<PAGE> 1
EXHIBIT 11
DH TECHNOLOGY, INC. AND
SUBSIDIARIES
Computation of Net Income Per Share
(In thousands, except per share data)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
------------------ -----------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Primary and fully diluted:*
Average shares outstanding 7,830 7,707 7,785 7,697
Net effect of dilutive stock
options and warrants based on
the treasury stock method using
average market price 511 422 481 365
----- ----- ----- -----
Average common and common
equivalent shares outstanding 8,341 8,129 8,266 8,060
Net Income $2,656 $2,090 $7,518 $5,884
Per share (primary and fully diluted)
Net income per share $.32 $.26 $.91 $.73
</TABLE>
* There is no significant difference between primary and fully diluted
earnings per share.
Page 12
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD TYPE> 9-MOS
<FISCAL-YEAR-END> Dec-31-1995
<PERIOD-END> Sep-30-1995
<CASH> 28,032
<SECURITIES> 2,435
<RECEIVABLES> 14,936
<ALLOWANCES> (1,105)
<INVENTORY> 12,780
<CURRENT-ASSETS> 58,825
<PP&E> 17,712
<DEPRECIATION> (11,344)
<TOTAL-ASSETS> 79,886
<CURRENT-LIABILITIES> 13,299
<BONDS> 1,960
<COMMON> 11,758
0
0
<OTHER-SE> 52,640
<TOTAL-LIABILITY-AND-EQUITY> 79,886
<SALES> 25,278
<TOTAL-REVENUES> 25,278
<CGS> 16,438
<TOTAL-COSTS> 16,438
<OTHER-EXPENSES> 5,031
<LOSS-PROVISION> 52
<INTEREST-EXPENSE> 90
<INCOME-PRETAX> 4,116
<INCOME-TAX> 1,460
<INCOME-CONTINUING> 2,656
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,656
<EPS-PRIMARY> 0.32
<EPS-DILUTED> 0.32
Page 13
</TABLE>
