FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended February 28, 1998 Commission File No. 0-8765
----------------- ------
BIOMERICA, INC.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 95-2645573
- -------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1533 Monrovia Avenue, Newport Beach, California 92663
- -------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: (714) 645-2111
- -------------------------------------------------------------------------------
(Not applicable)
- -------------------------------------------------------------------------------
(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
------ -------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 3,979,802 shares of common
Stock as of April 14, 1998.
<PAGE>
BIOMERICA, INC.
INDEX
PART I Financial Statements:
Statements of Operations - Nine Months and Three Months
Ended February 28, 1998 and February 28, 1997 ........................2
Balance Sheet - February 28, 1998 ...............................3 & 4
Statements of Cash Flows
Nine Months Ended February 28, 1998 and February 28, 1997 ............5
Statements of Changes in Shareholders' Equity -
Nine Months Ended February 28, 1998 ..................................6
Notes to Financial Statements .................................7, 8 & 9
Management's Discussion and Analysis of Financial Condition
and Selected Financial Data ....................................10 & 11
PART II Other Information ...................................................12
Signatures ..........................................................12
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION
SUMMARIZED FINANCIAL INFORMATION
BIOMERICA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
<CAPTION>
Nine Months Ended Three Months Ended
February February
1998 1997 1998 1997
-------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
Net Sales................................... $ 6,942,738 $ 6,856,378 $ 2,085,773 $ 2,303,353
Cost of sales ............................. 4,077,144 4,015,712 1,207,059 1,419,736
--------------- --------------- ------------- --------------
Gross profit .............................. 2,865,594 2,840,666 878,714 883,617
--------------- --------------- ------------- --------------
Operating Expenses:
Selling, general and administrative ....... 2,324,073 2,266,394 740,359 715,307
Research and development .................. 417,824 196,952 142,658 71,957
--------------- --------------- -------------- --------------
2,741,897 2,463,346 883,017 787,264
--------------- --------------- -------------- --------------
Other Expense (income):
Interest expense .......................... 23,412 45,227 6,338 13,348
Other (income), net ....................... (117,828) (46,774) (26,002) (21,195)
--------------- ---------------- -------------- --------------
Income before minority
interest in net profits of consoli-
dated subsidiaries and income taxes ....... 218,113 378,867 15,361 104,200
Minority interest in net (profits) losses
of consolidated subsidiaries .............. (6,101) (19,250) 14,541 6,685
--------------- ---------------- -------------- --------------
Income before taxes ....................... 212,012 359,617 29,902 110,885
Income taxes .............................. 20,537 28,875 4,147 11,028
--------------- --------------- -------------- --------------
NET INCOME ............................... $ 191,475 $ 330,742 $ 25,755 $ 99,857
=============== =============== ============== ==============
Net income per share -
assuming dilution ......................... $ .05 $ .09 $ .01 $ .03
=============== =============== ============== ==============
Weighted average number of
shares outstanding:
Basic .................................. 3,936,060 3,587,721 3,978,902 3,718,886
=============== =============== ============= ==============
Diluted ................................ 4,043,847 3,802,915 4,051,866 3,909,809
=============== =============== ============= ==============
<FN>
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
BIOMERICA, INC.
CONSOLIDATED BALANCE SHEET
<CAPTION>
February 28,
1998
---------------
<S> <C>
Assets
Current Assets
Cash and cash equivalents .............................................$ 1,792,651
Available for-sale securities ......................................... 406,366
Accounts receivable, less allowance for doubtful accounts ............. 1,808,265
Inventory ............................................................. 2,397,052
Notes receivable ...................................................... 26,585
Prepaid expenses and other ............................................ 100,408
---------------
Total Current Assets ................................................. 6,531,327
Inventory, non-current................................................... 27,000
Land held for investment................................................. 46,000
Property and Equipment, less accumulated depreciation and amortization... 514,304
Intangible assets, net of accumulated amortization....................... 434,941
Other Assets............................................................. 4,596
---------------
$ 7,558,168
===============
<FN>
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
BIOMERICA, INC.
CONSOLIDATED BALANCE SHEET
<CAPTION>
February 28,
1998
----------------
<S> <C>
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable and accrued liabilities ........................... $ 867,073
Accrued compensation ............................................... 455,531
Line of credit ..................................................... 200,000
-----------------
Total Current Liabilities ....................................... 1,522,604
Minority interest..................................................... 2,274,115
Shareholders' Equity
Shareholder loan ................................................... (71,000)
Common stock ....................................................... 318,544
Additional paid-in-capital ......................................... 12,503,132
Unrealized holding gain on available for sale securities ........... 92,857
Accumulated deficit ................................................ (9,082,084)
-----------------
Total Shareholders' Equity............................................ 3,761,449
-----------------
Total Liabilities and Equity.......................................... $ 7,558,168
=================
<FN>
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
BIOMERICA, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
NINE MONTHS ENDED FEBRUARY 28, 1998 AND 1997
<CAPTION>
1998 1997
------------- ------------
<S> <C> <C>
Cash flows from operating activities:
Net income.........................................................$ 191,475 $ 330,742
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization ................................... 184,433 187,800
Realized (gain) loss on sale of marketable securities ........... (53,447) 6,759
Minority interest in net profits of consolidated subsidiaries ... 10,087 19,250
Common Stock options issued for services rendered ............... 6,240 0
Changes in current assets and liabilities:
Accounts Receivable ........................................... (352,618) (103,483)
Inventories ................................................... 42,997 (228,142)
Prepaid expenses and other current assets ..................... 28,751 41,015
Accounts payable and other accrued liabilities ................ 200,880 128,926
Accrued compensation .......................................... (12,257) 28,150
------------- -------------
Net cash provided by operating activities.......................... 246,541 411,017
------------- -------------
Net cash flows provided by (used in) investing activities:
Purchases of property and equipment ............................. (94,279) (95,078)
Sales of marketable securities, net ............................. 156,389 25,946
Other assets .................................................... 11,178 10,272
Purchases of intangible assets .................................. (4,060) (450)
Note receivable ................................................. (17,000) 20,000
------------- -------------
Net cash used in investing activities.............................. 52,228 (39,310)
------------- ------------
Cash flows from financing activities:
Issuance of stock ............................................... 0 55,000
(Costs incurred) proceeds from sale of stock .................... (4,675) 978,022
Net payments under line of credit agreement ..................... 0 (2,000)
Principal payments on note payable to bank ...................... (200,000) (180,000)
Payments of long-term debt and capital lease obligations ........ (15,848) (16,005)
Exercise of stock options ....................................... 8,254 56,930
------------- -------------
Net cash (used in) provided by financing activities................ (212,269) 891,947
------------- -------------
Net increase in cash and cash equivalents.......................... 86,500 1,263,654
------------- -------------
Cash at beginning of year.......................................... 1,706,151 622,828
------------ -------------
Cash at end of Nine Months.........................................$ 1,792,651 $ 1,886,482
============= =============
<FN>
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE>
<TABLE>
BIOMERICA, INC.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED FEBRUARY 28, 1998
<CAPTION>
Unrealized
Gain on
Common Stock Additional Available- Retained
--------------------------
Number of Paid-In For-Sale Shareholder Earnings
Shares Amount Capital Securities Loan (Deficit) Total
----------- ------------ ------------ ------------ ------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at
May 31, 1997 3,465,819 $ 311,184 $12,429,673 $ 97,924 $ (9,273,559) $ 3,565,222
Offering costs (4,675) (4,675)
Change in unrealized
gain on available
for sale securities (5,067) (5,067)
Non-employee stock
options (SFAS 123) 6,240 6,240
Exercise of employee
stock options 90,000 7,360 71,894 79,254
Shareholder loan (71,000) (71,000)
Net income 191,475 191,475
----------- ------------ ------------ ------------- ------------ --------------- -------------
Balance at
February 28, 1998 3,979,802 $ 318,544 $12,503,132 $ 92,857 $ (71,000) $ (9,082,084) $ 3,761,449
=========== ============ ============ ============= ============ ============== =============
<FN>
Note: The authorized capital stock consists of 10,000,000 shares of common stock, par value $.08 per share.
The accompanying notes are an integral part of these statements.
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS
February 28, 1998
(1) Reference is made to Note 1 of the Notes to Financial Statements contained
in the Company's Annual Report on Form 10-KSB for the fiscal year ended May
31, 1997, for a summary of significant accounting policies utilized by the
Company.
(2) The information set forth in these statements is unaudited and may be
subject to normal year-end adjustments. The information reflects all
adjustments which, in the opinion of management, are necessary to present a
fair statement of results of operations of Biomerica, Inc., for the periods
indicated. It does not include all information and footnotes necessary for
a fair presentation of financial position, results of operations, and cash
flow in conformity with generally accepted accounting principles.
(3) Results of operations for the interim periods covered by this Report may not
necessarily be indicative of results of operations for the full fiscal year.
(4) Reference is made to Notes 2 & 3 of the Notes to Financial Statements
contained in the Company's Annual Report on Form 10-KSB for the fiscal year
ended May 31, 1997, for a description of the investments in affiliates and
consolidated subsidiaries.
(5) Reference is made to Note 5, 6, 11 and 12 of the Notes to Financial
Statements contained in the Company's Annual Report on Form 10-KSB for the
fiscal year ended May 31, 1997, for information on commitments and
litigation.
(6) Aggregate market value of available-for-sale securities exceeded aggregate
cost by approximately $92,857 at February 28, 1998.
(7) Earnings Per Share
------------------
In February 1997, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards (SFAS) No. 128, Earnings Per
Share ("EPS"). SFAS No. 128 requires dual presentation of basic EPS and
diluted EPS on the face of all income statements issued after December 15,
1997 for all entities with complex capital structures. Basic EPS is
computed as net income divided by the weighted average number of common
shares outstanding for the period. Diluted EPS reflects the potential
dilution that could occur from common shares issuable through stock options,
warrants and other convertible securities. All periods presented have been
restated to adopt the provisions of SFAS No. 128.
The following table illustrates the required disclosure of the
reconciliation of the numerators and denominators of the basic and diluted
EPS computations.
<PAGE>
<TABLE>
<CAPTION>
For the Nine Months Ended February 28, 1998
---------------------------------------------------
Income Shares Per Share
(Numerator) (Denominator) Amount
--------------- -------------- --------------
<S> <C> <C> <C>
Basic EPS -
Income available to common
shareholders ......................... $ 191,475 3,936,060 $ 0.05
==============
Effect of dilutive securities - Options.. - 101,787
--------------- --------------
Diluted EPS -
Income available to common share-
holders plus assumed conversions ..... $ 191,475 4,043,847 $ 0.05
=============== ============== ==============
<CAPTION>
For the Nine Months Ended February 28, 1997
---------------------------------------------------
Income Shares Per Share
(Numerator) (Denominator) Amount
--------------- -------------- --------------
<S> <C> <C> <C>
Basic EPS -
Income available to common
shareholders ......................... $ 330,742 3,587,721 $ 0.09
==============
Effect of dilutive securities - Options.. - 215,194
--------------- --------------
Diluted EPS -
Income available to common share-
holders plus assumed conversions ..... $ 330,742 3,802,915 $ 0.09
=============== ============== ==============
<CAPTION>
For the Three Months Ended February 28, 1998
--------------------------------------------------
Income Shares Per Share
(Numerator) (Denominator) Amount
--------------- -------------- --------------
<S> <C> <C> <C>
Basic EPS -
Income available to common
shareholders ......................... $ 25,755 3,978,902 $ 0.01
==============
Effect of dilutive securities - Options.. - 72,964
--------------- --------------
Diluted EPS -
Income available to common share-
holders plus assumed conversions ..... $ 25,755 4,051,866 $ 0.01
=============== ============== ==============
<PAGE>
<CAPTION>
For the Three Months Ended February 28, 1997
--------------------------------------------------
Income Shares Per Share
(Numerator) (Denominator) Amount
--------------- -------------- --------------
<S> <C> <C> <C>
Basic EPS -
Income available to common
shareholders ......................... $ 99,857 3,718,886 $ 0.03
==============
Effect of dilutive securities - Options.. - 190,923
--------------- --------------
Diluted EPS -
Income available to common share-
holders plus assumed conversions ..... $ 99,857 3,909,809 $ 0.03
=============== ============== ==============
</TABLE>
(8) New Disclosure Standards
------------------------
In June 1997, SFAS No. 130 ("SFAS 130"), "Comprehensive Income" was issued
which is effective for fiscal years beginning after December 15, 1997 and
requires reclassification of earlier financial statements for comparative
purposes. SFAS 130 requires that changes in the amounts of certain items,
including foreign currency translation adjustments and gains and losses on
certain securities, be shown in the financial statements. SFAS 130 does not
require a specific format for the financial statement in which comprehensive
income is reported, but does require that an amount representing total
comprehensive income be reported in that statement. The Company does not
expect that the implementation of SFAS 130 will have a material effect upon
the Company's financial statements. The effect of adopting SFAS 130 has not
yet been determined by the Company.
In June 1997, SFAS No. 131 ("SFAS 131"), "Disclosures about Segments of an
Enterprise and Related Information" was issued. This statement will change
the way public companies report information about segments of their business
in their annual financial statements and requires them to report selected
segment information in their quarterly reports issued to shareholders. It
also requires entity-wide disclosures about the product, services an entity
provides, the material countries in which it holds assets and reports
revenues, and its major customers. SFAS 131 is effective for fiscal years
beginning after December 15, 1997. The Company does not expect that the
implementation of SFAS 131 will have a material effect upon the Company's
financial statements. The effect of adopting SFAS 131 has not yet been
determined by management of the Company.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND SELECTED FINANCIAL DATA
Except for historical information contained herein, the statements in this
discussion and analysis are forward-looking statements that are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform act of
1995. Forward-looking statements involve known and unknown risks and
uncertainties which may cause the Company's actual results in future periods to
differ materially from forecasted results. These risks and uncertainties
include, among other things, the continued demand for the Company's products,
availability of raw materials and the state of the economy. These and other
risks are described in the Company's Annual Report on From 10-KSB and in the
Company's other fillings with the Securities and Exchange Commission.
RESULTS OF OPERATIONS
Consolidated net sales for Biomerica were $6,942,738 for the nine months ended
February 28, 1998 as compared to $6,856,378 for the same period in the previous
year. This represents an increase of $86,360 (1%). For the quarter then ended,
sales were $2,085,773 as compared to $2,303,353 in the previous year. This
represents a decrease of $217,580 (9%). Lancer Orthodontics (Lancer) had
decreased sales of $326,538 for the nine months and a decrease of $252,550 for
the quarter compared to the previous year. The decrease in sales at Lancer is
attributable to the current trend towards product discounting. Lancer continues
to search for and add new distributors, private label customers, and sales
representatives. Lancer remains very active in investigating new products that
will contribute strategically to its overall product line.
Cost of sales increased for the nine months by $61,432 (2%) and decreased by
$212,672 (15%) for the quarter. Lancer had reduced cost of sales as a
percentage of sales of 1.1% for the nine months and of 5.7% for the quarter due
to improved manufacturing efficiencies. This was offset by an increase of cost
of goods as a percentage of sales of 3.6% for the nine months at Biomerica and
3.7% for the three months over the prior periods. This was due to lower selling
prices on several products.
Selling, general and administrative expenses increased for the nine months by
$57,679 (3%) and increased for the three months by $25,052 (3.5%). The
increase was primarily due to increased expenses at Biomerica in the marketing
area which was offset by a decrease at Lancer due to lower administrative
salaries and commissions. Allergy Immuno Technologies had higher costs due to
higher administrative wages.
Research and development for the nine months increased from $196,952 to
$417,824 or $220,872 (112%) and for the three months from $71,957 to $142,658,
or $70,701 (98%). For the nine months, Lancer had increased product develop-
ment of $64,485 and for the three months of $28,808 due to increased R&D
wages. Biomerica also had increased expenses of $168,320 for the nine months and
$43,058 for the quarter. Increases at Biomerica were attributable to costs due
to the increased effort to ready new products in the areas of cancer detection,
gastrointestinal diseases and thyroid diseases for release into the marketplace.
Interest expense decreased by $21,815 (48.2%) for the nine months and by
$7,010 (52.5%) for the three months due to reduced debt and interest rates at
Lancer.
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
As of February 28, 1998, the Company had cash and available-for-sale
securities in the amount of $1,792,651. Biomerica is currently able to meet its
costs of operations, development and expansion through both collection of trade
accounts receivable and its working capital position. Lancer is currently able
to meet its costs of operations through collection of trade accounts receivable,
its working capital position and its line of credit. At February 28, 1998, all
unpaid principal and accrued interest on Lancer's note payable to a bank was
paid. The note required monthly payments of $18,889, plus interest at prime
plus 1% (9.5% at February 28, 1998). Lancer also has a $500,000 line of credit
with the bank. The unused portion at February 28, 1998 was $157,698. Lancer
may draw upon its line of credit to fund future equipment purchases.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS. Inapplicable.
Item 2. CHANGES IN SECURITIES. Inapplicable.
Item 3. DEFAULTS UPON SENIOR SECURITIES. Inapplicable.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Inapplicable.
Item 5. OTHER INFORMATION. Inapplicable.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K. None.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has fully caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 14, 1998
BIOMERICA, INC.
By: /S/ Zackary S. Irani
------------------------
Zackary S. Irani, President
and Chief Executive Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-START> JUN-01-1997
<PERIOD-END> FEB-28-1998
<CASH> 1,792,651
<SECURITIES> 406,366
<RECEIVABLES> 1,945,675
<ALLOWANCES> (137,410)
<INVENTORY> 2,397,052
<CURRENT-ASSETS> 6,531,327
<PP&E> 3,202,980
<DEPRECIATION> (2,688,676)
<TOTAL-ASSETS> 7,558,168
<CURRENT-LIABILITIES> 1,522,604
<BONDS> 0
0
0
<COMMON> 318,544
<OTHER-SE> 3,442,905
<TOTAL-LIABILITY-AND-EQUITY> 7,558,168
<SALES> 6,942,738
<TOTAL-REVENUES> 6,942,738
<CGS> 4,077,144
<TOTAL-COSTS> 6,819,041
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 23,412
<INCOME-PRETAX> 212,012
<INCOME-TAX> 20,537
<INCOME-CONTINUING> 191,475
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 191,475
<EPS-PRIMARY> .05
<EPS-DILUTED> .05
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<S> <C> <C> <C>
<PERIOD-TYPE> YEAR 3-MOS 6-MOS
<FISCAL-YEAR-END> MAY-31-1997 MAY-31-1998 MAY-31-1998
<PERIOD-START> JUN-01-1996 JUN-01-1997 JUN-01-1997
<PERIOD-END> MAY-31-1997 AUG-31-1997 NOV-30-1997
<CASH> 1,706,151 1,810,699 1,809,140
<SECURITIES> 514,377 447,327 389,064
<RECEIVABLES> 1,593,057 1,608,258 1,976,366
<ALLOWANCES> (137,410) (137,410) (137,410)
<INVENTORY> 2,440,049 2,572,788 2,469,968
<CURRENT-ASSETS> 6,254,968 7,515,008 6,669,145
<PP&E> 3,108,699 3,091,518 3,190,074
<DEPRECIATION> (2,560,145) (2,622,499) (2,685,268)
<TOTAL-ASSETS> 7,379,079 7,515,008 7,701,927
<CURRENT-LIABILITIES> 1,549,829 1,533,270 1,708,351
<BONDS> 0 0 0
0 0 0
0 0 0
<COMMON> 311,184 311,744 318,544
<OTHER-SE> 3,251,038 3,403,201 3,389,202
<TOTAL-LIABILITY-AND-EQUITY> 7,379,079 7,515,008 7,701,927
<SALES> 9,243,510 2,304,027 4,856,966
<TOTAL-REVENUES> 9,243,510 2,304,027 4,856,966
<CGS> 5,377,607 1,349,701 2,870,085
<TOTAL-COSTS> 8,610,244 2,189,481 4,728,965
<OTHER-EXPENSES> 0 0 0
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 58,659 9,473 17,074
<INCOME-PRETAX> 489,875 151,664 182,111
<INCOME-TAX> 43,030 14,378 16,390
<INCOME-CONTINUING> 446,845 137,286 165,721
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> 446,845 137,286 165,721
<EPS-PRIMARY> .12 .04 .04
<EPS-DILUTED> .12 .03 .04
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<S> <C> <C> <C> <C>
<PERIOD-TYPE> YEAR 3-MOS 6-MOS 9-MOS
<FISCAL-YEAR-END> MAY-31-1996 MAY-31-1996 MAY-31-1996 MAY-31-1996
<PERIOD-START> JUN-01-1995 JUN-01-1996 JUN-01-1996 JUN-01-1996
<PERIOD-END> MAY-31-1996 AUG-31-1996 NOV-30-1996 FEB-28-1997
<CASH> 622,828 964,345 911,419 1,886,482
<SECURITIES> 355,598 385,039 273,768 343,112
<RECEIVABLES> 1,940,317 1,791,620 1,827,144 2,043,800
<ALLOWANCES> (152,265) (152,265) (152,265) (152,265)
<INVENTORY> 2,035,551 2,163,144 2,271,619 2,263,693
<CURRENT-ASSETS> 4,934,838 5,252,080 5,258,053 6,456,616
<PP&E> 3,163,517 3,187,799 3,227,244 3,259,494
<DEPRECIATION> (2,699,271) (2,739,650) (2,786,745) (2,832,324)
<TOTAL-ASSETS> 6,066,546 6,339,839 6,318,644 7,485,779
<CURRENT-LIABILITIES> 1,687,190 1,810,663 1,918,480 1,915,481
<BONDS> 278,653 197,518 0 0
0 0 0 0
0 0 0 0
<COMMON> 277,266 281,646 283,926 310,632
<OTHER-SE> 1,718,947 1,921,706 1,972,322 3,126,493
<TOTAL-LIABILITY-AND-EQUITY> 6,066,546 6,339,839 6,318,644 7,485,779
<SALES> 9,480,658 2,273,387 4,553,025 6,856,378
<TOTAL-REVENUES> 9,480,658 2,273,387 4,553,025 6,856,378
<CGS> 5,429,627 1,314,388 2,595,976 4,015,712
<TOTAL-COSTS> 8,738,581 2,127,888 4,272,075 6,479,058
<OTHER-EXPENSES> 0 0 0 0
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> 104,113 16,803 31,879 45,227
<INCOME-PRETAX> 445,464 136,533 248,732 359,617
<INCOME-TAX> 12,737 13,865 17,847 28,875
<INCOME-CONTINUING> 432,727 122,668 230,885 330,742
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 432,727 122,668 230,885 330,742
<EPS-PRIMARY> .13 .04 .07 .10
<EPS-DILUTED> .12 .03 .06 .09
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> MAY-31-1995
<PERIOD-START> JUN-01-1994
<PERIOD-END> MAY-31-1995
<CASH> 694,564
<SECURITIES> 338,851
<RECEIVABLES> 1,756,478
<ALLOWANCES> (173,201)
<INVENTORY> 1,763,379
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<PP&E> 3,030,028
<DEPRECIATION> (2,513,139)
<TOTAL-ASSETS> 5,784,496
<CURRENT-LIABILITIES> 1,630,550
<BONDS> 853,000
0
0
<COMMON> 274,506
<OTHER-SE> 1,167,873
<TOTAL-LIABILITY-AND-EQUITY> 5,784,496
<SALES> 9,161,758
<TOTAL-REVENUES> 9,161,758
<CGS> 5,213,335
<TOTAL-COSTS> 8,842,243
<OTHER-EXPENSES> 0
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<INTEREST-EXPENSE> 171,178
<INCOME-PRETAX> 90,098
<INCOME-TAX> 2,400
<INCOME-CONTINUING> 88,498
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 88,498
<EPS-PRIMARY> .03
<EPS-DILUTED> .03
</TABLE>
