<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 For the quarterly period ended June 28, 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 1-10464
-------
DALLAS SEMICONDUCTOR CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 75-1935715
-------- ----------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
4401 SOUTH BELTWOOD PARKWAY, DALLAS, TEXAS 75244-3292
-----------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (972) 371-4000
--------------
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
------- --------
Number of shares outstanding of the registrant's Common Stock as of
August 2, 1998: 27,988,529.
-----------
<PAGE> 2
DALLAS SEMICONDUCTOR CORPORATION
INDEX TO FORM 10-Q
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS PAGE NO.
--------
<S> <C> <C>
Condensed Consolidated Statements of Income (Unaudited)
Three months and six months ended June 28, 1998 and June 29, 1997 ... 3
Condensed Consolidated Balance Sheets
June 28, 1998 (Unaudited) and December 28, 1997 ..................... 4
Condensed Consolidated Statements of Cash Flows (Unaudited)
Six months ended June 28, 1998 and June 29, 1997 .................... 5
Notes to Condensed Consolidated Financial Statements ................. 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS............... 7 - 9
PART II. OTHER INFORMATION
ITEMS 1. - 3. ........................................................ 10
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS..... 10
ITEMS 5. AND 6. ...................................................... 10
SIGNATURE ............................................................ 11
INDEX TO EXHIBITS .................................................... 12
EXHIBITS 27.1 - 27.9 ................................................13-21
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DALLAS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
Three months Six months
ended ended
----------------- ------------------
(In thousands, except Jun. 28, Jun. 29, Jun. 28, Jun. 29,
per share amounts) 1998 1997 1998 1997
- ------------------------------------ ------- ------- -------- --------
<S> <C> <C> <C> <C>
Net sales $87,029 $91,040 $174,477 $179,744
Operating costs and expenses:
Cost of sales 41,338 44,627 82,836 89,394
Research and development 11,791 11,471 24,358 22,373
Selling, general and administrative 14,586 13,451 29,235 26,184
------- ------- -------- --------
Total costs and expenses 67,715 69,549 136,429 137,951
------- ------- -------- --------
Operating income 19,314 21,491 38,048 41,793
Interest income, net 1,297 1,125 2,434 2,039
------- ------- -------- --------
Income before income taxes 20,611 22,616 40,482 43,832
Provision for income taxes 6,596 7,294 12,955 14,136
------- ------- -------- --------
Net income $14,015 $15,322 $ 27,527 $ 29,696
======= ======= ======== ========
Net income per share, basic $ 0.50 $ 0.56 $ 0.99 $ 1.10
Net income per share, diluted $ 0.47 $ 0.52 $ 0.92 $ 1.02
------- ------- -------- --------
Shares used to calculate
net income per share:
Basic 27,967 27,193 27,896 27,007
Diluted 29,839 29,482 29,924 29,120
------- ------- -------- --------
Dividends declared per share $ 0.04 $ 0.035 $ 0.08 $ 0.07
------- ------- -------- --------
</TABLE>
See accompanying notes.
3
<PAGE> 4
DALLAS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
Jun. 28, Dec. 28,
(In thousands, except share amounts) 1998 1997
- ---------------------------------------- --------- ---------
(Unaudited)
<S> <C> <C>
Assets
Current assets:
Cash and short-term investments $ 111,007 $ 114,608
Accounts receivable, net 49,602 62,337
Inventories 66,576 59,131
Deferred tax assets 9,177 9,689
Other current assets 7,224 4,475
--------- ---------
Total current assets 243,586 250,240
Property, plant and equipment, at cost:
Land 8,757 8,757
Building and improvements 60,587 52,067
Machinery and equipment 302,918 269,767
--------- ---------
372,262 330,591
Less accumulated depreciation (187,159) (168,836)
--------- ---------
Property, plant and equipment, net 185,103 161,755
Other assets 5,574 5,147
--------- ---------
$ 434,263 $ 417,142
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 17,221 $ 29,711
Accrued salaries and benefits 11,555 19,979
Accrued taxes other than income 2,771 3,678
Other accrued liabilities 11,155 10,345
Income taxes payable 5,898 2,372
--------- ---------
Total current liabilities 48,600 66,085
Stockholders' equity:
Preferred stock, $0.10 par value;
5,000,000 shares authorized; no shares
issued and outstanding -- --
Common stock, $0.02 par value; 40,000,000
shares authorized; issued:
28,064,843 shares at June 28, 1998, and
27,639,784 shares at December 28, 1997 561 553
Additional paid-in capital 115,465 106,161
Retained earnings 271,255 245,961
Treasury stock, shares at cost:
91,525 shares at June 28, 1998
and December 28, 1997 (1,618) (1,618)
--------- ---------
Total stockholders' equity 385,663 351,057
--------- ---------
$ 434,263 $ 417,142
========= =========
</TABLE>
See accompanying notes.
4
<PAGE> 5
DALLAS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
--------------------
Jun. 28, Jun.29,
(In thousands) 1998 1997
- -------------------------------------------- -------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 27,527 $ 29,696
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation 21,176 17,042
Net change in working capital accounts (9,870) (5,916)
-------- --------
Net cash provided by operating activities 38,833 40,822
-------- --------
Cash flows from investing activities:
Additions to property, plant and equipment (44,524) (18,168)
Increase in other assets (427) (437)
-------- --------
Net cash used in investing activities (44,951) (18,605)
-------- --------
Cash flows from financing activities:
Proceeds from issuance of stock
upon exercise of stock options 4,750 7,431
Dividend paid to shareholders (2,233) (1,895)
-------- --------
Net cash provided by financing activities 2,517 5,536
-------- --------
Net change in cash and short-term investments (3,601) 27,753
Cash and short-term investments
at beginning of period 114,608 70,274
-------- --------
Cash and short-term investments at end of period $111,007 $ 98,027
======== ========
Cash payments for income taxes $ 4,355 $ 14,594
Supplementary schedule of non-cash financing activities:
Reduction of income tax payable and increase
in paid-in capital resulting from the tax
benefit of stock option exercises $ 4,562 $ 4,954
Disposition of assets $ 85 $ 542
</TABLE>
See accompanying notes.
5
<PAGE> 6
DALLAS SEMICONDUCTOR CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. INTERIM ACCOUNTING POLICY
The accompanying condensed consolidated financial statements have not been
audited by independent auditors, except for the balance sheet as of December 28,
1997. In the opinion of the Company's management, the accompanying financial
statements reflect all adjustments (consisting only of normal recurring
accruals) necessary to present fairly the Company's financial position at June
28, 1998 and December 28, 1997, and results of operations and cash flows for the
periods presented.
Certain footnote information has been condensed or omitted from these financial
statements. Therefore, these financial statements should be read in conjunction
with the financial statements and related notes included in the Company's Annual
Report on Form 10-K for the year ended December 28, 1997. Results of operations
for the three and six month periods ended June 28, 1998 are not necessarily
indicative of results to be expected for the full year.
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards (SFAS) No. 131, "Disclosures about Segments of an
Enterprise and Related Information." SFAS 131 establishes standards for
reporting information about operating segments in interim and annual financial
statements, however SFAS 131 need not be applied to interim financial statements
in the initial year of its application. SFAS 131 is effective for fiscal years
beginning after December 15, 1997. As the Company operates predominantly in one
industry segment, management believes its existing disclosures regarding
segments complies with the standards established by SFAS 131.
2. INVENTORIES (In thousands)
<TABLE>
<CAPTION>
Jun. 28, Dec. 28,
1998 1997
-------- ---------
<S> <C> <C>
Raw materials $ 8,803 $ 8,761
Work-in-process 38,653 31,187
Finished goods 19,120 19,183
-------- ---------
$ 66,576 $ 59,131
======== =========
</TABLE>
Inventories are stated at the lower of standard cost, which approximates actual
cost (first-in, first-out), or market.
3. INCOME TAXES
The provision for income taxes includes estimated federal and state income taxes
at statutory rates and a deferred tax expense for the three and six month
periods ended June 28, 1998 of $254,000 and $512,000, respectively. The
Company's effective tax rate decreased to 32.0% in the second quarter and first
six months of 1998 from 32.3% for the same periods in 1997. This decrease was a
result of changes in anticipated differences between income for financial
statement purposes and taxable income for the periods.
6
<PAGE> 7
DALLAS SEMICONDUCTOR CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
This report contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Actual results could differ materially from those projected in the
forward-looking statements as a result of the factors set forth elsewhere in
this report. Although the Company believes that the expectations reflected in
such forward-looking statements are based on reasonable assumptions, there can
be no assurance that such expectations will be achieved.
RESULTS OF OPERATIONS
Net sales for the second quarter of 1998 were $87,029,000, a decrease of 4% over
the second quarter of 1997. The Company's revenue by product category is shown
in the table below.
<TABLE>
<CAPTION>
NET SALES
(In millions)
- ------------------------------------------------------------------------------
Change
Product Categories Q297 Q397 Q497 Q198 Q298 Q298 - Q297
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Communications $20.0 $20.7 $21.9 $20.5 $21.1 6%
System Extension 14.6 16.2 16.2 13.2 14.8 1%
Automatic Information 8.6 10.5 12.7 12.4 12.0 40%
Nonvolatile RAM 13.0 10.4 10.5 9.6 11.5 -12%
Commercial Timekeeping 14.0 12.9 13.9 13.7 9.9 -29%
Microcontrollers 6.2 9.6 7.1 6.8 7.3 18%
Others 9.5 7.7 8.6 8.0 7.1 -26%
Computer Timekeeping 5.1 5.1 4.5 3.2 3.3 -34%
- ------------------------------------------------------------------------------
Company Total $91.0 $93.1 $95.4 $87.4 $87.0 -4%
- ------------------------------------------------------------------------------
</TABLE>
Gross margins increased in the second quarter of 1998 to 53% from 51% in the
second quarter of 1997. Gross margins increased for the first six months of 1998
to 53% from 50% during the same period in 1997. The gross margin increase for
both periods was caused primarily by increased efficiency in factory operations
and a sales-mix shift toward higher margin products.
Research and development ("R&D") expenses for the second quarter of 1998
increased 3% from the second quarter of 1997. R&D expenses increased 9% for the
first six months of 1998 over the same period in 1997. The increase resulted
primarily from increased personnel costs due to increased headcount. R&D
expenses as a percent of sales increased to 14% from 13% for the second quarter
of 1998 and 1997, respectively. R&D expenses as a percent of sales increased to
14% for the first six months of 1998 from 12% during the same period in 1997 due
to lower sales volume and higher R&D expenditures.
Selling, general, and administrative ("SG&A") expenses increased 8% and 12%,
respectively for the three and six month periods ended June 28, 1998 over the
same periods ended June 29, 1997. The increase in SG&A expenses resulted
primarily from increases in personnel costs due to increased headcount. SG&A
expenses as a percent of net sales increased to 17% for the three and six month
periods of 1998 from 15% for the three and six month periods of 1997 due to
lower sales volume and higher SG&A expenditures.
7
<PAGE> 8
DALLAS SEMICONDUCTOR CORPORATION
RESULTS OF OPERATIONS (CONTINUED)
Operating income decreased 10% and 9% for the second quarter of 1998 and the
first six months of 1998 over the same periods in 1997, respectively. The
decrease for both periods was due primarily to higher operating expenses and
lower sales volumes. Operating income as a percent of sales decreased to 22%
from 23% for the first six months of 1998 and 1997, respectively.
Net interest income for the second quarter of 1998 increased by $172,000 or 15%
over the second quarter of 1997. Net interest income increased by $395,000 or
19% for the first six months of 1998 over the same period in 1997. Changes in
net interest income are due primarily to changes in the average cash balances
for the three and six month periods. Changes in interest rates will continue to
effect net interest income as well as any substantial change in the Company's
cash and short-term investments or any substantial change in borrowings.
The provision for income taxes includes estimated federal and state income taxes
at statutory rates and a deferred tax expense for the three and six month
periods ended June 28, 1998 of $254,000 and $512,000, respectively. The
Company's effective tax rate decreased to 32.0% in the second quarter and first
six months of 1998 from 32.3% for the same periods in 1997. This decrease was a
result of changes in anticipated differences between income for financial
statement purposes and taxable income for the periods.
The Company has undertaken a preliminary evaluation of its mission critical
systems and believes that any cost that may arise to ensure functionality in the
year 2000 would be immaterial. In addition, the Company is formally
communicating with all of its significant suppliers to limit the extent to which
the Company may be vulnerable to the failure of third parties' to remediate
their own year 2000 issues. There can be no assurance that the systems of other
companies on which the Company relies will be converted and would not have an
adverse effect on the Company's performance.
A number of uncertainties exist that may influence the Company's future
operating results, including general economic conditions, changes in conditions
affecting original equipment manufacturers, competition, alternative
technologies, the Company's success in developing new products and process
technologies, accelerated declines in the average selling price of the Company's
existing products, changes in customer order patterns, market acceptance of the
Company's new products, distributor and sales representative performance, the
ability of the Company to continue diversifying its product line, accelerated
growth of inventory leading to excess inventory and salability and/or
obsolescence write-downs, excess production capacity, manufacturing performance,
subcontractor performance, availability and price fluctuations of raw materials,
and other factors. Any of these uncertainties could cause a severe near-term
impact on the Company's order growth, net sales growth, or results of
operations.
8
<PAGE> 9
DALLAS SEMICONDUCTOR CORPORATION
FINANCIAL CONDITION
Cash and short-term investments were $111.0 million at the end of the second
quarter of 1998, compared with $114.6 million at the end of fiscal year 1997.
The decrease in cash and short-term investments was primarily the result of net
cash provided from operations during the first six months of 1998 of $38.8
million being offset by investments in property, plant and equipment of $44.5
million. The Company continues to invest in financial instruments having
maturities in excess of one year in order to obtain yields higher than those
available in the short-term market.
Capital additions were $14 million in the second quarter of 1998, compared to $9
million for the same period of 1997. Capital expenditures for the second quarter
of 1998 related primarily to wafer fabrication and test equipment. Capital
expenditures for 1998 are estimated to total approximately $75 million and will
be used primarily for wafer fabrication, manufacturing and test equipment, and
computer hardware and software.
In 1994 the board of directors authorized the purchase from time-to-time,
depending on market conditions, of up to 500,000 shares of the Company's common
stock. As of June 28, 1998, a total of 215,900 shares, totaling $3,446,000 have
been purchased pursuant to this stock repurchase program.
On June 1, 1998, a $0.04 dividend was paid on each outstanding share of common
stock, to shareholders of record on May 15, 1998. On July 21, 1998, a $0.04
dividend was declared on each outstanding share of common stock, payable on
September 1, 1998, to shareholders of record on August 14, 1998.
The Company had no long-term debt at the end of the second quarter of 1998 or at
the end of fiscal year 1997.
9
<PAGE> 10
DALLAS SEMICONDUCTOR CORPORATION
PART II. OTHER INFORMATION
ITEMS 1.- 3.
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
(a) The Company's annual meeting of stockholders was held on April 21,
1998.
(b) (c) (d) The following items were presented to the stockholders with the
following results.
<TABLE>
<CAPTION>
Election of Directors: Votes
Votes For Withheld
---------- --------
<S> <C> <C>
C.V. Prothro 24,927,807 212,234
Chao C. Mai 24,928,892 211,149
Michael L. Bolan 24,929,607 210,434
Richard L. King 24,927,917 212,124
M.D. Sampels 24,928,452 211,589
Carmelo J. Santoro 24,931,302 208,739
E.R. Zumwalt, Jr. 24,829,966 310,075
</TABLE>
<TABLE>
<CAPTION>
Votes Broker
Votes For Against Abstentions Non-Votes
---------- --------- ----------- ---------
<S> <C> <C> <C> <C>
Selection of
Ernst & Young LLP as
independent auditors for
the 1998 fiscal year 25,111,653 15,377 13,011 --
</TABLE>
ITEM 5. OTHER INFORMATION
Not Applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBIT 27 - FINANCIAL DATA SCHEDULE
(b) Reports on Form 8-K
No Reports on Form 8-K were filed during the period for which this
report is filed.
10
<PAGE> 11
DALLAS SEMICONDUCTOR CORPORATION
SIGNATURE
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.
DALLAS SEMICONDUCTOR CORPORATION
By: /s/ Alan P. Hale
---------------------------
Alan P. Hale
Vice President, Finance
Date: August 11, 1998
---------------------------
11
<PAGE> 12
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
27.1 Financial Data Schedule
27.2 Restated Financial Data Schedule
For 3rd Quarter 1997
27.3 Restated Financial Data Schedule
For 2nd Quarter 1997
27.4 Restated Financial Data Schedule
For 1st Quarter 1997
27.5 Restated Financial Data Schedule
For 3rd Quarter 1996
27.6 Restated Financial Data Schedule
For 2nd Quarter 1996
27.7 Restated Financial Data Schedule
For 1st Quarter 1996
27.8 Restated Financial Data Schedule
For Fiscal Year 1996
27.9 Restated Financial Data Schedule
For Fiscal Year 1995
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-03-1999
<PERIOD-END> JUN-28-1998
<CASH> 111,007
<SECURITIES> 0
<RECEIVABLES> 49,602
<ALLOWANCES> 0
<INVENTORY> 66,576
<CURRENT-ASSETS> 243,586
<PP&E> 372,262
<DEPRECIATION> 187,159
<TOTAL-ASSETS> 434,263
<CURRENT-LIABILITIES> 48,600
<BONDS> 0
0
0
<COMMON> 561
<OTHER-SE> 385,663
<TOTAL-LIABILITY-AND-EQUITY> 434,263
<SALES> 87,029
<TOTAL-REVENUES> 87,029
<CGS> 41,338
<TOTAL-COSTS> 67,715
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 20,611
<INCOME-TAX> 6,596
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 14,015
<EPS-PRIMARY> .50
<EPS-DILUTED> .47
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-28-1997
<PERIOD-END> SEP-28-1997
<CASH> 110,974
<SECURITIES> 0
<RECEIVABLES> 55,178
<ALLOWANCES> 0
<INVENTORY> 57,247
<CURRENT-ASSETS> 234,121
<PP&E> 301,565
<DEPRECIATION> 160,581
<TOTAL-ASSETS> 380,342
<CURRENT-LIABILITIES> 50,528
<BONDS> 0
0
0
<COMMON> 548
<OTHER-SE> 329,814
<TOTAL-LIABILITY-AND-EQUITY> 380,342
<SALES> 93,069
<TOTAL-REVENUES> 93,069
<CGS> 44,710
<TOTAL-COSTS> 69,758
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 24,598
<INCOME-TAX> 7,687
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 16,911
<EPS-PRIMARY> .62
<EPS-DILUTED> .57
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-28-1997
<PERIOD-END> JUN-29-1997
<CASH> 98,027
<SECURITIES> 0
<RECEIVABLES> 47,658
<ALLOWANCES> 0
<INVENTORY> 55,098
<CURRENT-ASSETS> 209,972
<PP&E> 291,730
<DEPRECIATION> 151,705
<TOTAL-ASSETS> 355,435
<CURRENT-LIABILITIES> 42,511
<BONDS> 0
0
0
<COMMON> 548
<OTHER-SE> 312,924
<TOTAL-LIABILITY-AND-EQUITY> 355,435
<SALES> 91,040
<TOTAL-REVENUES> 91,040
<CGS> 44,627
<TOTAL-COSTS> 69,549
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 22,616
<INCOME-TAX> 7,294
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,322
<EPS-PRIMARY> .56
<EPS-DILUTED> .52
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-28-1997
<PERIOD-END> MAR-30-1997
<CASH> 91,345
<SECURITIES> 0
<RECEIVABLES> 46,772
<ALLOWANCES> 0
<INVENTORY> 51,658
<CURRENT-ASSETS> 196,881
<PP&E> 282,872
<DEPRECIATION> 143,087
<TOTAL-ASSETS> 341,949
<CURRENT-LIABILITIES> 51,534
<BONDS> 0
0
0
<COMMON> 539
<OTHER-SE> 290,415
<TOTAL-LIABILITY-AND-EQUITY> 341,949
<SALES> 88,704
<TOTAL-REVENUES> 88,704
<CGS> 44,767
<TOTAL-COSTS> 68,402
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 21,216
<INCOME-TAX> 6,842
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 14,374
<EPS-PRIMARY> .54
<EPS-DILUTED> .50
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-29-1996
<PERIOD-END> SEP-29-1996
<CASH> 58,966
<SECURITIES> 0
<RECEIVABLES> 46,157
<ALLOWANCES> 0
<INVENTORY> 51,791
<CURRENT-ASSETS> 161,207
<PP&E> 260,189
<DEPRECIATION> 127,195
<TOTAL-ASSETS> 299,231
<CURRENT-LIABILITIES> 37,084
<BONDS> 0
0
0
<COMMON> 532
<OTHER-SE> 262,147
<TOTAL-LIABILITY-AND-EQUITY> 299,231
<SALES> 72,023
<TOTAL-REVENUES> 72,023
<CGS> 41,490
<TOTAL-COSTS> 61,082
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 11,649
<INCOME-TAX> 3,844
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,805
<EPS-PRIMARY> .29
<EPS-DILUTED> .28
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-29-1996
<PERIOD-END> JUN-30-1996
<CASH> 56,666
<SECURITIES> 0
<RECEIVABLES> 39,911
<ALLOWANCES> 0
<INVENTORY> 57,069
<CURRENT-ASSETS> 158,826
<PP&E> 247,715
<DEPRECIATION> 119,878
<TOTAL-ASSETS> 291,781
<CURRENT-LIABILITIES> 37,280
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