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 December 31, 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 No. 0-9613
NUCLEAR RESEARCH CORPORATION
(Exact name of Registrant as specified in its charter)
Pennsylvania 1343870
(State or other jurisdiction (I.R.S. Employer
of organization) Identification No.)
125 Titus Avenue, Warrington, Pennsylvania 18976
(Address of Principal Executive Offices) (Zip Code)
(215) 343-5900
(Registrant's telephone number, including area code)
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
As of February 14, 1996, the Registrant had 28,175 shares of its common
stock outstanding.
<PAGE>
INDEX
Number Page
PART I. Financial Information.
Item 1. Consolidated Financial Statements.
Consolidated Balance Sheets - December 31, 1995
and June 30, 1995.......................................3
Consolidated Statements of Operations - Three
Months Ended December 31, 1995 and 1994.................5
Consolidated Statements of Operations - Six
Months Ended December 31, 1995 and 1994.................6
Consolidated Statements of Shareholders' Equity -
Six Months Ended December 31, 1995 and the
Year Ended June 30, 1995................................7
Consolidated Statements of Cash Flows - Six
Months Ended December 31, 1995 and 1994.................8
Notes to Consolidated Financial Statements.................9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations....................12
PART II. Other Information.
Item 1. Legal Proceedings.........................................15
Item 2. Change in Securities......................................15
Item 3. Defaults Upon Senior Securities...........................15
Item 4. Submission of Matters to a Vote of Security
Holders................................................15
Item 5. Other Information.........................................15
Item 6. Exhibits and Reports on Form 8-K..........................15
-2-
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. NUCLEAR RESEARCH CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
December 31, 1995 June 30, 1995
<S> <C> <C>
CURRENT ASSETS
Cash $ 90,072 $ 66,905
Accounts receivable 3,228,143 4,126,320
Costs and estimated
earnings in excess
of billings
on uncompleted contracts
(Note 5) 2,702,063 1,733,552
Inventory (Note 3) 3,539,733 3,509,290
Prepaid expenses and
other current assets 574,260 165,715
----------- -----------
Total Current Assets 10,134,271 9,601,782
PROPERTY, PLANT AND EQUIPMENT
(net of accumulated depreciation
and amortization of $2,609,547
at December 31, 1995 and $2,440,061
at June 30, 1995) 1,746,292 1,405,459
OTHER ASSETS
Intangible assets (net of
accumulated amortization of
$9,448 at December 31,
1995) (Note 2) 404,512 --
Patents (net of accumulated
amortization of $67,137
at December 31, 1995 and
$60,987 at June 30, 1995) 146,543 136,476
Organization costs (net
of accumulated amortization
of $3,734 at December 31,
1995) 33,608 --
Other 29,151 24,951
----------- -----------
Total Other Assets 613,814 161,427
----------- -----------
TOTAL ASSETS $12,494,377 $11,168,668
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements
-3-
<PAGE>
NUCLEAR RESEARCH CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
LIABILITIES AND SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
December 31, 1995 June 30, 1995
<S> <C> <C>
CURRENT LIABILITIES
Short-term borrowings $ 2,625,000 $ 1,850,000
Current portion of
long-term debt 483,808 364,041
Accounts payable 1,526,530 1,554,882
Accrued expenses 612,591 466,015
Accrued payroll and
payroll taxes 239,754 274,803
Taxes payable on income 11,188 457,055
------------ ------------
Total Current Liabilities 5,498,871 4,966,796
LONG-TERM DEBT 351,419 379,131
DEFERRED INCOME TAXES 28,504 28,504
MINORITY INTEREST IN EQUITY OF
CONSOLIDATED SUBSIDIARY 244,856 --
COMMITMENTS AND CONTINGENCY
(Note 6)
SHAREHOLDERS' EQUITY
Common Stock
Stated value $5 per share, with
60,000 shares authorized, 31,873
shares issued and 28,175 shares
outstanding 159,365 159,365
Additional paid in
capital 517,010 517,010
Retained Earnings 5,756,705 5,180,215
Less: treasury stock,
3,698 shares at cost (62,353) (62,353)
------------ ------------
Total Shareholders' Equity 6,370,727 5,794,237
------------ ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 12,494,377 $ 11,168,668
============ ============
</TABLE>
See Notes to Consolidated Financial Statements
-4-
<PAGE>
NUCLEAR RESEARCH CORPORATION & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
December 31,
1995 1994
<S> <C> <C>
NET SALES $6,132,531 $5,516,227
COST OF SALES 4,689,591 4,441,964
---------- ----------
GROSS PROFIT 1,442,940 1,074,263
SELLING AND ADMINISTRATIVE
EXPENSES 760,642 531,963
RESEARCH AND DEVELOPMENT
EXPENSES 296,996 314,004
INTEREST EXPENSE 76,766 78,860
---------- ----------
INCOME FROM OPERATIONS 308,536 149,436
OTHER INCOME 4,336 3,073
---------- ----------
INCOME BEFORE MINORITY INTEREST 312,872 152,509
MINORITY INTEREST IN LOSS OF
CONSOLIDATED SUBSIDIARY 117,631 --
---------- ----------
INCOME BEFORE INCOME TAXES 430,503 152,509
LESS: TAXES ON INCOME 166,614 67,979
---------- ----------
NET INCOME $ 263,889 $ 84,530
========== ==========
PRIMARY EARNINGS PER SHARE $ 7.71 $ 2.64
========== ==========
WEIGHTED AVERAGE COMMON SHARES 34,236 31,980
========== ==========
</TABLE>
See Notes to Consolidated Financial Statements
-5-
<PAGE>
NUCLEAR RESEARCH CORPORATION & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
December 31,
1995 1994
<S> <C> <C>
NET SALES $12,343,174 $ 9,683,454
COST OF SALES 9,591,873 7,746,479
----------- -----------
GROSS PROFIT 2,751,301 1,936,975
SELLING AND ADMINISTRATIVE
EXPENSES 1,320,681 990,921
RESEARCH AND DEVELOPMENT
EXPENSES 488,701 522,016
INTEREST EXPENSE 150,414 130,811
----------- -----------
INCOME FROM OPERATIONS 791,505 293,227
OTHER INCOME 7,126 5,762
----------- -----------
INCOME BEFORE MINORITY INTEREST 798,631 298,989
MINORITY INTEREST IN LOSS
OF CONSOLIDATED SUBSIDIARY 156,798 --
----------- -----------
INCOME BEFORE INCOME TAXES 955,429 298,989
LESS: TAXES ON INCOME 378,939 118,038
----------- -----------
NET INCOME 576,490 $ 180,951
=========== ===========
PRIMARY EARNINGS PER SHARE $ 16.84 $ 5.66
=========== ===========
WEIGHTED AVERAGE COMMON SHARES 34,236 31,980
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements
-6-
<PAGE>
NUCLEAR RESEARCH CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED DECEMBER 31, 1995 AND YEAR ENDED JUNE 30, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
Common Stock Additional Total
Paid In Retained Shareholders'
Shares Amount Capital Earnings Treasury Stock Equity
<S> <C> <C> <C> <C> <C> <C>
Balance at 28,175 $ 159,365 $ 517,010 $3,901,739 $ (62,353) $4,515,761
June 30, 1994
Net Income for
the year ended
June 30, 1995 -- -- -- 1,278,476 -- 1,278,476
---------- ---------- ---------- ---------- ---------- ----------
Balance at
June 30, 1995 28,175 159,365 517,010 5,180,215 (62,353) 5,794,237
Net income for
the six months
ended December
31, 1995 -- -- -- 576,490 -- 576,490
---------- ---------- ---------- ---------- ---------- ----------
Balance at
December 31, 1995 28,175 $ 159,365 $ 517,010 $5,756,705 $ (62,353) $6,370,727
========== ========== ========== ========== ========== ==========
</TABLE>
See Notes to Consolidated Financial Statements
-7-
<PAGE>
NUCLEAR RESEARCH CORPORATION & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
(UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
December 31,
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 576,490 $ 180,951
Adjustments to reconcile net
income to net cash provided by
(used by) operating activities:
Depreciation and amortization 188,858 171,611
Minority interest in loss of
consolidated subsidiary (156,798) --
(Increase) Decrease in:
Accounts receivable 898,177 211,100
Costs and estimated
earnings in excess
of billings on
uncompleted contracts (968,511) (519,486)
Other receivable -- 695,335
Inventory (30,443) (66,185)
Prepaid expenses and other
current assets (408,545) (271,040)
Prepaid taxes on income -- (49,961)
Increase (decrease) in:
Accounts payable, accrued
expenses and payroll taxes 83,175 371,364
Taxes payable - on income (445,867) (106,251)
--------- ---------
NET CASH PROVIDED BY (USED BY) OPERATING
ACTIVITIES (263,464) 617,438
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (526,536) (137,418)
Increase in organization costs (37,342) --
--------- ---------
NET CASH USED BY INVESTING ACTIVITIES (563,878) (137,418)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Net Proceeds (payments) on line of credit 775,000 (450,000)
Net Proceeds (payments) on long-term debt 92,055 (173,366)
Distributions (12,346) --
Increase (decrease) in other assets (4,200) 1,021
--------- ---------
NET CASH PROVIDED BY (USED BY)
FINANCING ACTIVITIES 850,509 (622,345)
--------- ---------
NET INCREASE (DECREASE) IN CASH 23,167 (142,325)
--------- ---------
CASH - beginning 66,905 163,273
--------- ---------
CASH - ending $ 90,072 $ 20,948
========= =========
SUPPLEMENTARY INFORMATION REGARDING
NON-CASH INVESTING ACTIVITIES
Acquisition of intangible assets $ 414,000 --
========= =========
</TABLE>
See Notes to Consolidated Financial Statements
-8-
<PAGE>
NUCLEAR RESEARCH CORPORATION & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1995 and December 31, 1994
Note 1. The Consolidated Financial Statements of Nuclear Research Corporation
have been prepared in accordance with the rules and regulations of the
Securities and Exchange Commission ("SEC"). In the opinion of management, the
accompanying Consolidated Financial Statements contain all adjustments
(consisting of only normal recurring adjustments) necessary to present fairly
the consolidated financial position as of December 31, 1995 and June 30, 1995
and the consolidated results of operations and cash flows for the three months
and six months ended December 31, 1995 and 1994. Certain information and
footnote disclosures prepared in accordance with generally accepted accounting
principles have either been condensed or omitted pursuant to SEC rules and
regulations. These financial statements should be read in conjunction with the
financial statements and the notes included in the Company's latest Annual
Report on Form 10-K.
The consolidated results of operations for the six months ended December 31,
1995 and 1994 are not necessarily indicative of the results for the full year.
Note 2. Principles of Consolidation.
The Consolidated Financial Statements include the accounts of Nuclear Research
Corporation, NRC Acquisition Corporation and Northeast Nuclear, Ltd.,
wholly-owned subsidiaries hereafter referred to collectively as the "Company."
Also included in the Consolidated Financial Statements are the accounts of
Measurement Dynamics LLC ("MDLLC").
In July, 1995 the Company entered into an operating agreement to form MDLLC, a
New Jersey limited liability company, the purpose of which is to develop,
manufacture, produce and sell temperature measurement devices and other related
products or services. Pursuant to the operating agreement, the Company
contributed property, in the form of cash, inventory and other business assets
having a fair market value of $300,000, in exchange for 42% of MDLLC. The
Company will produce temperature measurement devices to be sold by MDLLC under a
manufacturing agreement and will provide administrative services to MDLLC.
In connection with the formation of MDLLC, the Company recorded an intangible
asset of $414,000 which represents certain rights, proprietary information and
intellectual property contributed by the minority interest in MDLLC. The
intangible asset is being amortized over it's estimated useful life of twenty
years.
All significant inter-company accounts and transactions have been eliminated in
consolidation.
-9-
<PAGE>
NUCLEAR RESEARCH CORPORATION & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note 3. Inventory.
(UNAUDITED)
December 31, June 30,
1995 1995
Inventory consists of:
Work-In-Process
United States Government
contracts $3,710,629 $4,748,683
Commercial contracts 702,949 496,603
Purchased and manufactured
parts 516,753 637,739
---------- ----------
$4,930,331 $5,883,025
Less: Progress payments
on United States Government
contracts 1,390,598 2,373,735
---------- ----------
Total $3,539,733 $3,509,290
========== ==========
The Company uses the last-in, first-out (LIFO) method to determine its material
inventory costs. The following information will facilitate comparison with
operating results of companies using the FIFO method. If the Company's inventory
had been determined using the FIFO method at December 31, 1995, reported
inventories would have been $954,268 higher and reported net income would have
decreased by $48,110 ($1.41 per share). The pro forma effect relating to the use
of the FIFO method would have resulted in the following balances for the
statement of operations presentation for the three months ended December 31,
1995:
Gross Profit $2,676,696
Income from Operations $ 716,900
==========
Net Income $ 528,380
==========
Note 4. Other Receivable.
On March 15, 1993, a portion of the roof collapsed at the Company's Dover, New
Jersey division resulting in the disruption of production at this facility. The
property, inventory and business interruption losses resulting from the partial
roof collapse were insured. The other receivable represents the final settlement
as of June 30, 1994 of the Company's insurance claim related to the partial roof
collapse. The claim was paid in the quarterly period ended September 30, 1994.
-10-
<PAGE>
NUCLEAR RESEARCH CORPORATION & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note 5. Costs and Estimated Earnings in Excess of Billings on
Uncompleted Contracts.
The Company recognizes revenues on several fixed-price contracts using the
percentage-of-completion method, measured by the percentage of cost incurred to
date compared to the estimated total cost for the contracts. That method is used
because management considers total cost to be the best available measure of
progress on the contracts. Because of inherent uncertainties in estimating
costs, it is at least reasonably possible that the estimates used will change
within the near term.
Contract costs include all direct material, direct labor and indirect costs
related to contract performance. Provisions for estimated losses on the
uncompleted contracts are made in the period in which such losses are
determined. Changes in estimated job profitability resulting from job
performance, job conditions, claims, change orders, and settlements, are
accounted for in the period in which the changes occur.
The asset, "Costs and estimated earnings in excess of billings on uncompleted
contracts" represents revenues recognized in excess of amounts billed.
Costs, estimated earnings, and billings on uncompleted contracts are summarized
as follows:
Costs incurred and estimated
earnings on uncompleted
contracts $3,401,810
Billings to date 699,747
----------
$2,702,063
==========
Included in accompanying balance sheet under the following
caption:
Costs and estimated earnings
in excess of billings on
uncompleted contracts $2,702,063
==========
-11-
<PAGE>
NUCLEAR RESEARCH CORPORATION & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note 6. Commitments and Contingency.
In September 1995, the Company was notified that MDLLC, Mark A. Sitcoske and a
company controlled by Mr. Sitcoske, Measurement Dynamics, Inc., had been named
co-defendants in a suit filed by Hanna Manufacturing, Inc. ("Hanna"), a Rhode
Island Company that previously employed Mr. Sitcoske. The suit alleges that the
defendants acted in violation of an existing employment and non-compete
agreement between Hanna and Mr. Sitcoske and seeks to enjoin and obtain damages;
however, Hanna has not yet sought a hearing to obtain injunctive relief.
Although the matter is in its early stages, management expects that the
resolution of this matter will have no material impact on the Company.
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
Liquidity and Capital Resources
During the six months ended December 31, 1995, a decrease in accounts
receivable of $898,177 was the principal factor which affected the cash provided
by operating activities. The reduction in accounts receivable occurred due to
the Company's ability to collect year-end receivables (typically the highest
during the year). Increases in costs and estimated earnings in excess of billing
on uncompleted contracts of $968,511 and prepaid expenses and other current
assets of $408,545 combined with a decrease in taxes payable on income of
$445,867 were the principal factors offsetting cash provided by operating
activities for the six months ended December 31, 1995.
The costs and estimated earnings in excess of billings on uncompleted
contracts resulted from the Company using the percentage-of-completion method
of income recognition for several multi-year contracts. Additionally, during the
six months ended December 31, 1995, the Company had capital expenditures of
$526,536 to purchase manufacturing and computer equipment, to make building
improvements and to make certain expenditures associated with patents. Cash in
the amount of $37,342 was also expended for organization costs associated with
MDLLC. Cash provided by financing activities for the six months ended December
31, 1995 increased by $850,509 as a result of borrowings on the line of credit
of $775,000 and borrowings on long term debt of $92,055, partially offset by
cash distributions associated with MDLLC of $12,346.
-12-
<PAGE>
The Company's backlog of orders as of January 31, 1996 was $15,410,000
compared to $29,399,000 as of January 31, 1995. The decrease in the backlog as
of January 31, 1996 as compared to January 31, 1995 is largely attributed to the
resumption of the Company's ability to operate at normal shipping levels as
compared to prior years when the partial roof collapse at the Company's Dover
Division facility prevented the Company from maintaining normal shipping levels.
The Company believes that funds from operations and amounts available under
its credit facilities will be sufficient to satisfy the Company's cash
requirements for the foreseeable future.
Results of Operations
Sales for the three months ended December 31, 1995 were $6,132,531, an
increase of $666,304 compared to sales of $5,516,227 for the three months ended
December 31, 1994. The increase in sales is primarily attributable to increased
shipments to the United States Government. The increase in sales for the three
months ended December 31, 1995 represents a percentage increase of 11.17% as
compared to the three months ended December 31, 1994.
Income from operations increased to $308,536 for the three months ended
December 31, 1995 from $149,436 for the three months ended December 31, 1994,
due to a more favorable product mix and a higher sales volume. Gross profit as a
percentage of sales increased to 23.53% for the three months ended December 31,
1995 compared to 19.47% for the three months ended December 31, 1994.
Selling and administrative expenses increased $228,679 to $760,642 for the
three months ended December 31, 1995. The increase was primarily due to costs
associated with MDLLC. As a percentage of sales, selling and administrative
expense increased to 12.40% for the three months ended December 31, 1995 as
compared to 9.64% for the three months ended December 31, 1994.
Research and development expenses decreased $17,008 to $296,996 for the
three months ended December 31, 1995 as compared to $314,004 for the three
months ended December 31, 1994. The decrease can be accounted for by a reduction
in customer-sponsored research. As a percentage of sales, research and
development expenses decreased to 4.84% for the three months ended December 31,
1995 as compared to 5.69% for the three months ended December 31, 1994.
Interest expense decreased to $76,766 for the three months ended December
31, 1995 as compared to $78,860 for the three months ended December 31, 1994.
Sales for the six months ended December 31, 1995 increased $2,659,720 to
$12,343,174 as compared to $9,683,454 for the six months ended December 31,
1994. The increase in sales can be accounted for primarily by increased
shipments to the United States Government. Additionally, as a result of more
aggressive marketing abroad, foreign sales increased to $2,310,015 for the six
months ended December 31, 1995 as compared to $1,456,160 for the six months
ended December 31, 1994.
-13-
<PAGE>
Income from operations increased to $791,505 for the six months ended
December 31, 1995 as compared to $293,227 for the six months ended December 31,
1994, due to a more favorable product mix and increased shipments. Gross profit
as a percentage of sales increased to 22.29% for the six months ended December
31, 1995 as compared to 20.00% for the six months ended December 31, 1994.
Selling and administrative expenses increased $329,760 to $1,320,681 for
the six months ended December 31, 1995. The increase was due primarily to costs
associated with MDLLC. As a percentage of sales, selling and administrative
expenses increased to 10.70% for the six months ended December 31, 1995 as
compared to 10.23% for the six months ended December 31, 1994.
Research and development expenses decreased $33,315 to $488,701 for the six
months ended December 31, 1995 as compared to $522,016 for the six months ended
December 31, 1994. The decrease can be accounted for by a reduction in
customer-sponsored research. As a percentage of sales, research and development
expenses decreased to 3.95% for the six months ended December 31, 1995 as
compared to 5.39% for the six months ended December 31, 1994.
Interest expense increased to $150,414 for the six months ended December
31, 1995 as compared to $130,811 for the six months ended December 31, 1994. The
increase can be accounted for by costs associated with letters of credit for a
multi-year contract.
-14-
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
In September 1995, management was notified that MDLLC, Mark A. Sitcoske and
a company controlled by Mr. Sitcoske, Measurement Dynamics, Inc., had been named
as co-defendants in a suit filed on September 7, 1995 in the Superior Court of
the State of Rhode Island by Hanna Manufacturing, Inc. ("Hanna"), a Rhode Island
company that previously employed Mr. Sitcoske. The suit alleges that the
defendants acted in violation of an existing employment and non-compete
agreement between Hanna and Mr. Sitcoske and seeks to enjoin and obtain damages;
however, Hanna has not yet sought a hearing to obtain injunctive relief.
Although the matter is still in its early stages, management expects that the
resolution of this matter will have no material impact on the Company.
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.
The Company held its 1995 Annual Meeting of Shareholders on December 11,
1995. At the meeting, Earl M. Pollock, Dorothy S. Pollock and Charles H.
Sulzberger were elected to the Company's Board of Directors; Shareholders cast
22,717 votes for the election of each director; 3 votes were withheld with
respect to the election of each director.
Item 5. Other Information.
Not Applicable.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
27. Financial Data Schedules
(b) Reports on Form 8-K.
No reports on Form 8-K were filed during the quarter ended
December 31, 1995.
-15-
<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.
NUCLEAR RESEARCH CORPORATION
By: /s/ Earl M. Pollock
Earl M. Pollock
President
By: /s/ Mark S. Pollock
Mark S. Pollock
Treasurer
Dated: February 14, 1996
-16-
<PAGE>
Exhibit Index
Exhibit Method of Filing
27. Financial Data Schedules . . . . . . . . . Filed Herewith
Electronically
-17-
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000073296
<NAME> NUCLEAR RESEARCH CORPORATION
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> DEC-31-1995
<CASH> 90,072
<SECURITIES> 0
<RECEIVABLES> 5,930,206
<ALLOWANCES> 0
<INVENTORY> 3,539,733
<CURRENT-ASSETS> 10,134,271
<PP&E> 4,355,839
<DEPRECIATION> (2,609,547)
<TOTAL-ASSETS> 12,494,377
<CURRENT-LIABILITIES> 5,498,871
<BONDS> 0
0
0
<COMMON> 159,365
<OTHER-SE> 6,211,362
<TOTAL-LIABILITY-AND-EQUITY> 12,494,377
<SALES> 12,343,174
<TOTAL-REVENUES> 12,343,174
<CGS> 9,591,873
<TOTAL-COSTS> 10,080,574
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 150,414
<INCOME-PRETAX> 955,429
<INCOME-TAX> 378,939
<INCOME-CONTINUING> 576,490
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 576,490
<EPS-PRIMARY> 16.84
<EPS-DILUTED> 16.84
</TABLE>
