<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 April 4, 1999
----------------
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
May 7, 1999: 28,779,776.
-----------
<PAGE> 2
DALLAS SEMICONDUCTOR CORPORATION
INDEX TO FORM 10-Q
PART I. FINANCIAL INFORMATION
<TABLE>
<CAPTION>
ITEM 1. FINANCIAL STATEMENTS PAGE NO.
--------
<S> <C>
Condensed Consolidated Statements of Income (Unaudited)
Three months ended April 4, 1999 and March 29, 1998 ................. 3
Condensed Consolidated Balance Sheets
April 4, 1999 (Unaudited) and January 3, 1999 ....................... 4
Condensed Consolidated Statements of Cash Flows (Unaudited)
Three months ended April 4, 1999 and March 29, 1998 ................. 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. THROUGH 4. .................................................. 10
ITEM 5. OTHER INFORMATION ....................................... 10 - 12
ITEM 6. .............................................................. 12
SIGNATURE ............................................................ 13
EXHIBIT 27. ART. 5 FDS 1ST QUARTER 10-Q ............................... 14
</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
ended
--------------------
(In thousands, except Apr. 4, Mar. 29,
per share amounts) 1999 1998
- --------------------- ------- --------
<S> <C> <C>
Net sales $88,560 $87,448
Operating costs and expenses:
Cost of sales 42,401 41,498
Research and development 11,653 12,567
Selling, general and administrative 14,092 14,649
------- -------
Total costs and expenses 68,146 68,714
------- -------
Operating income 20,414 18,734
Interest income, net 1,650 1,137
------- -------
Income before income taxes 22,064 19,871
Provision for income taxes 6,884 6,359
------- -------
Net income $15,180 $13,512
======= =======
Net income per share, basic $ 0.53 $ 0.49
Net income per share, diluted $ 0.50 $ 0.45
------- -------
Shares used to calculate
net income per share:
Basic 28,385 27,825
Diluted 30,381 30,010
------- -------
Dividends declared per share $ 0.05 $ 0.04
------- -------
</TABLE>
See accompanying notes.
3
<PAGE> 4
DALLAS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
Apr. 4, Jan. 3,
(Dollars in thousands, except per share amounts) 1999 1999
- ------------------------------------------------ --------- ---------
(Unaudited)
<S> <C> <C>
Assets
Current assets:
Cash and short-term investments $ 136,398 $ 127,996
Accounts receivable, net 53,892 45,933
Inventories 73,703 72,390
Deferred tax assets 11,536 10,691
Other current assets 7,417 7,349
--------- ---------
Total current assets 282,946 264,359
Property, plant and equipment, at cost:
Land 8,770 8,770
Building and improvements 74,583 74,890
Machinery and equipment 326,997 313,300
--------- ---------
410,350 396,960
Less accumulated depreciation (217,864) (205,826)
--------- ---------
Property, plant and equipment, net 192,486 191,134
Other assets 7,003 5,545
--------- ---------
$ 482,435 $ 461,038
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 20,425 $ 15,435
Accrued salaries and benefits 10,415 9,395
Accrued taxes other than income 2,281 4,030
Other accrued liabilities 11,994 12,613
Income taxes payable 7,785 4,813
--------- ---------
Total current liabilities 52,900 46,286
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:
28,619,889 shares at April 4, 1999, and
28,333,261 shares at January 3, 1999 572 567
Additional paid-in capital 123,691 119,553
Retained earnings 310,646 296,889
Treasury stock, shares at cost:
195,425 shares at April 4, 1999
and 108,425 at January 3, 1999 (5,374) (2,257)
--------- ---------
Total stockholders' equity 429,535 414,752
--------- ---------
$ 482,435 $ 461,038
========= =========
</TABLE>
See accompanying notes.
4
<PAGE> 5
DALLAS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
------------------------
Apr. 4, Mar. 29,
(Thousands) 1999 1998
- ----------- --------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 15,180 $ 13,512
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation 12,038 10,296
Net change in working capital accounts (1,299) (2,242)
--------- ---------
Net cash provided by operating activities 25,919 21,566
--------- ---------
Cash flows from investing activities:
Additions to property, plant and equipment (13,390) (30,422)
Increase in other assets (1,458) (507)
--------- ---------
Net cash used in investing activities (14,848) (30,929)
--------- ---------
Cash flows from financing activities:
Proceeds from issuance of stock
upon exercise of stock options 1,871 4,493
Purchase of treasury stock (3,117) --
Dividends paid to shareholders (1,423) (1,114)
--------- ---------
Net cash (used in) provided by financing activities (2,669) 3,379
--------- ---------
Net change in cash and short-term investments 8,402 (5,984)
Cash and short-term investments at
beginning of period 127,996 114,608
--------- ---------
Cash and short-term investments at end of period $ 136,398 $ 108,624
========= =========
Cash payments for income taxes $ 2,485 $ 782
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 $ 2,272 $ 4,380
Disposition of assets $ -- $ 85
</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 January 3,
1999. 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 April
4, 1999 and January 3, 1999, 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 January 3, 1999. Results of operations
for the three month period ended April 4, 1999 are not necessarily indicative of
results to be expected for the full year.
2. INVENTORIES (In thousands)
<TABLE>
<CAPTION>
Apr. 4, Jan. 3,
1999 1999
------- -------
<S> <C> <C>
Raw materials $ 7,119 $ 7,181
Work-in-process 51,243 49,883
Finished goods 15,341 15,326
------- -------
$73,703 $72,390
======= =======
</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 benefit of $845,000 for the first quarter
of 1999 and a deferred tax expense of $258,000 for the first quarter of 1998.
The Company's effective tax rate decreased to 31.2% in the first quarter of 1999
from 32.0% in the first quarter of 1998. This decrease was due to 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 first quarter of 1999 were $88,560,000, an increase of 1% over
the first quarter of 1998. The Company's revenue by product category is shown in
the table below.
NET SALES
(In millions)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
Change
Product Categories Q198 Q298 Q398 Q498 Q199 Q199-Q198
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Communications $20.5 $21.1 $23.1 $22.6 $23.6 15%
Timekeeping 16.9 13.2 13.2 15.2 15.2 (10)%
System Extension 13.2 14.8 12.7 11.6 14.7 11%
Automatic Information 12.4 12.0 11.7 12.6 12.0 (4)%
Others 8.0 7.1 7.4 8.6 8.7 11%
Microcontrollers 6.8 7.3 6.4 5.9 7.7 13%
Nonvolatile RAM 9.6 11.5 8.6 8.5 6.7 (30)%
- -------------------------------------------------------------------------------------------
Company Total $87.4 $87.0 $83.1 $85.0 $88.6 1%
- -------------------------------------------------------------------------------------------
</TABLE>
Gross margins decreased for the first three months of 1999 to 52.1% from 52.5%
during the same period in 1998. The gross margin decrease was due to lower
production volumes resulting in higher wafer costs, offset by increased
efficiencies in factory operations.
Research and development ("R&D") expenses for the first quarter of 1999
decreased 7% from the first quarter of 1998. The decrease resulted primarily
from a decrease in headcount and the associated costs. R&D expenses as a percent
of sales decreased to 13.2% in the first quarter of 1999 from 14.4% for the same
period in 1998 primarily due to lower R&D expenditures.
Selling, general, and administrative ("SG&A") expenses for the first quarter of
1999 decreased 4% compared with the first quarter of 1998. The decrease was due
primarily to a reduction in outside services offset by higher personnel costs.
SG&A expenses as a percent of net sales decreased to 15.9% for the first quarter
of 1999 from 16.8% for the first quarter of 1998 primarily due to reduced
expenses.
7
<PAGE> 8
DALLAS SEMICONDUCTOR CORPORATION
RESULTS OF OPERATIONS (CONTINUED)
Operating income increased 9% for the first quarter of 1999 compared to the
first quarter of 1998. Relatively stable sales and gross profit, combined with
lower operating expenses, produced higher operating income. Operating income as
a percent of sales increased to 23.1% for the first quarter of 1999 from 21.4%
for the first quarter of 1998.
Net interest income for the first quarter of 1999 increased by $513,000 or 45%
over the first quarter of 1998. The increase in net interest income is due
primarily to gains on the sales of investments and higher average cash balances.
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.
The provision for income taxes includes estimated federal and state income taxes
at statutory rates and a deferred tax benefit of $845,000 for the first quarter
of 1999 and a deferred tax expense of $258,000 for the first quarter of 1998.
The Company's effective tax rate decreased to 31.2% in the first quarter of 1999
from 32.0% in the first quarter of 1998. This decrease was due to changes in
anticipated differences between income for financial statement purposes and
taxable income for the periods.
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.
FINANCIAL CONDITION
Cash and short-term investments were $136.4 million at the end of the first
quarter of 1999, compared with $128.0 million at the end of fiscal year 1998.
The increase in cash and short-term investments was primarily the result of net
cash provided by operations during the first three months of 1999 of $25.9
million offset by investments in property, plant and equipment of $13.4 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.
8
<PAGE> 9
DALLAS SEMICONDUCTOR CORPORATION
FINANCIAL CONDITION (CONTINUED)
Capital additions were $13.4 million in the first quarter of 1999, compared to
$30.4 million for the same period of 1998. Capital expenditures for the first
quarter of 1999 related primarily to wafer fabrication and test equipment. Total
capital expenditures for 1999 are estimated to be approximately $55 million and
will be used primarily for wafer fabrication, manufacturing and test equipment,
and computer hardware and software. Included in estimated capital expenditures
for fiscal 1999 is approximately $2 million relating to equipment and facilities
for Dallas Semiconductor Philippines, Inc. (DSPI), a wholly owned subsidiary
formed in March 1999. Primarily, DSPI will provide technical support to, and
coordinate Philippine based subcontractors for, integrated circuit assembly,
testing and module assembly for certain products.
As amended in 1998, the Board of Directors authorized the purchase from
time-to-time, depending on market conditions, of up to 1,000,000 shares of the
Company's common stock. As of April 4, 1999, a total of 319,800 shares, totaling
$7,202,000 have been purchased under this stock repurchase program.
On March 1, 1999, a $0.05 dividend was paid on each outstanding share of common
stock, to shareholders of record on February 15, 1999. On April 20, 1999, a
$0.05 dividend was declared on each outstanding share of common stock, payable
on June 1, 1999, to shareholders of record on May 14, 1999.
9
<PAGE> 10
DALLAS SEMICONDUCTOR CORPORATION
PART II. OTHER INFORMATION
ITEMS 1.- 4.
ITEM 5. OTHER INFORMATION
YEAR 2000 READINESS DISCLOSURE
In response to the "Year 2000 Information and Readiness Disclosure Act"
signed into law October 19, 1998, and the statement issued by the
Securities and Exchange Commission regarding "Disclosure of Year 2000
Issues and Consequences by Public Companies, Investment Advisers,
Investment Companies, and Municipal Security Holders" in August 1998, the
Company is making the following Year 2000 Readiness Disclosure:
The Company has undertaken an assessment of all mission critical systems,
including information systems as well as production and manufacturing
systems, which could be significantly affected by Year 2000 issues. The
Company has initiated various Year 2000 remediation projects, some of which
include the use of software purchased from third parties. Some of this
third party provided software was modified by the Company to be compatible
with its internal systems. The Company has already begun testing and
implementing these remediation projects and is substantially complete as of
April 4, 1999. Similarly, certain hardware, primarily used in production
and manufacturing systems, is being replaced in a systematic manner.
Replacement of this hardware was originally scheduled due to anticipated
obsolescence and is expected to be substantially complete by June 30, 1999.
As of April 4, 1999, the Company has incurred approximately $150,000 in
Year 2000 remediation costs and expects to incur approximately $50,000 in
remaining costs to ensure functionality for Year 2000 issues. The Company
has not specifically set aside funds to cover the remaining Year 2000
costs, but has adequate resources to cover these needs as they arise.
None of the Company's systems interface directly with its third party
vendors. Also, the Company does not currently utilize electronic data
interchange (EDI) with any date sensitivity. In addition, the Company is
formally communicating by mailing letters to all of its significant third
party vendors (both domestic and international), requesting certifications
and test results to confirm their Year 2000 compliance. Where responses are
not obtained by letter, the Company is in the process of or will follow up
to obtain this information in an effort to limit the extent to which the
Company may be vulnerable to the failure of third parties to remediate
their own Year 2000 issues. The Company also intends to mitigate this risk
by ceasing to do business with such companies as soon as feasible after it
becomes aware of any significant problems. The Company has two principal
product lines containing products that are date sensitive, Timekeeping and
Microcontrollers.
Timekeeping Products (Clocks) made by the Company fall into two categories:
o Clocks that are Year 2000 compatible
o Clocks that are Year 2000 compliant
10
<PAGE> 11
DALLAS SEMICONDUCTOR CORPORATION
Clocks that are Year 2000 compatible have a two-digit year counter. They
will maintain the correct time, date of the month, day of the week, month
and two-digit year with correct leap year compensation up to year 2099. The
two-digit year counter does not provide the century information; therefore
software intervention is required to determine if the century value is 19
or 20.
The following Clocks are Year 2000 compatible, requiring software
intervention to calculate the century: DS1202, DS1215, DS1216, DS1243,
DS1244, DS1248, DS1251, DS1283, DS1284, DS1285, DS1286, DS1287, DS12885,
DS12887, DS12887A, DS12B887, DS1302, DS1305, DS1306, DS1307, DS1308,
DS1315, DS1384, DS1385, DS1386, DS1387, DS1395, DS1397, DS14285, DS14287,
DS1485, DS1486, DS1488, DS1495, DS1497, DS1543, DS1544, DS1546, DS1547,
DS1615, DS1642, DS1643, DS1644, DS1646, DS1647, DS1670, and DS1673.
The Clocks that are Year 2000 compliant have a four-digit year counter. The
fully compliant clocks will maintain the correct time, date of the month,
day of the week, month and four-digit year with correct leap year
compensation up to year 2099.
The following Clocks are fully Year 2000 compliant: DS12C887, DS1501,
DS1511, DS1553, DS1554, DS1546, DS1557, DS1585, DS1587, DS1589, DS1685,
DS1687, DS1688, DS1689, DS1691, DS1693, Ds17285, DS17287, DS1742, DS1743,
DS1744, DS1746, DS1747, DS17485, DS17487, DS17885, and DS17887.
Microcontroller Products use one of three real-time clock circuits and fall
into one of two categories, compatible or compliant, as described above.
DS 1215-based Soft Microcontroller Modules: DS5000T and DS2250T.
The DS1215 is Year 2000 compatible, as it stores the year as a
two-digit value. The two-digit year counter does not provide the
century information; therefore software intervention is required to
determine if the century value is 19 or 20.
DS1283-based Soft Microcontroller Modules: DS2251T and DS22522T.
The DS1283 is Year 2000 compatible, as it stores the year as a
two-digit value. The two-digit year counter does not provide the
century information; therefore software intervention is required to
determine if the century value is 19 or 20.
DS87C530 High Speed Microcontroller with Real Time Clock.
The Clock in the DS87C530 incorporates a 16 bit day counter, rather
than a traditional day/month/year calendar, for maximum flexibility. As
a result, the device can be totally Year 2000 compatible via
application software.
The following are other Dallas Semiconductor products that are date
sensitive:
The DS2404, DS1994, and DS1427, members of the Company's Automatic
Identification product category, contain simple binary counters and
require software intervention to interpret this raw data to be Year
2000 compliant.
The DS1629, a member of the Company's System Extension product
category, incorporates a DS1307 real-time clock that has a two-digit
year counter. The two-digit year counter does not provide the century
information; therefore, software intervention is required to determine
if the century value is 19 or 20.
11
<PAGE> 12
DALLAS SEMICONDUCTOR CORPORATION
All of the Company's products require the utilization of software programs
for the products to be of use to the end user. The Company does not
recommend or provide software for use in conjunction with any application
for the products it manufactures, including software solutions to Year 2000
issues. However, to the extent practicable, purchasers of our Year 2000
compatible products (which require software intervention) have been put on
notice, via data books and web page postings, of the need for such software
intervention prior to purchasing such products and further have been made
aware of available Year 2000 alternatives (compliant products not requiring
software intervention) manufactured by the Company. Although the Company
does not believe it has any liability related to Year 2000 compatible
products (those which require software intervention), there is a risk of
litigation associated with the manufacture and sale of these products.
Management of the Company believes it has an effective program in place to
resolve Year 2000 issues and expects that all critical remediation projects
will be completed on schedule. As a result of its focus on ensuring that
the remediation projects are on schedule, the Company has not developed a
contingency plan to address alternative solutions in the event the Company
is unable to successfully make its critical systems Year 2000 compliant.
However, the Company continually evaluates its status towards completion to
determine whether such a plan is necessary. At this point, the Company is
on schedule and no contingency plan is deemed necessary. Additionally, the
Company has no means of ensuring that third parties, including those based
outside of the United States, will be Year 2000 compliant and the effect of
non-compliance by third parties is not determinable. In a worst case
scenario, these unknown third party variables could have a material adverse
effect on the Company's ability to produce its products and conduct its
business. This worst case scenario, however, is a risk of any company
engaging in world-wide business into the next millennium. To date, the
Company is not aware of any third party with a Year 2000 issue that would
materially impact the Company's results of operations, liquidity, or
capital resources. In addition, the Company is not currently aware of any
claims of breach of contract or warranty, potential product return issues
or impairment of assets relating to Year 2000 noncompliance that would
materially impact the Company's results of operations, liquidity, or
capital resources.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit 27.1 - 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.
12
<PAGE> 13
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: May 18, 1999
----------------
13
<PAGE> 14
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
- ----------- -----------
<S> <C>
27.1 - Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-02-2000
<PERIOD-END> APR-04-1999
<CASH> 136,398
<SECURITIES> 0
<RECEIVABLES> 53,892
<ALLOWANCES> 0
<INVENTORY> 73,703
<CURRENT-ASSETS> 282,946
<PP&E> 410,350
<DEPRECIATION> 217,864
<TOTAL-ASSETS> 482,435
<CURRENT-LIABILITIES> 52,900
<BONDS> 0
0
0
<COMMON> 572
<OTHER-SE> 429,535
<TOTAL-LIABILITY-AND-EQUITY> 482,435
<SALES> 88,560
<TOTAL-REVENUES> 88,560
<CGS> 42,401
<TOTAL-COSTS> 68,146
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 22,064
<INCOME-TAX> 6,884
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,180
<EPS-PRIMARY> .53
<EPS-DILUTED> .50
</TABLE>
