<PAGE> 1
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 June 30, 1996
/ / TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- --- EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File No. 0-20698
BROOKTROUT TECHNOLOGY, INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Massachusetts 04-2814792
------------- ----------
(State or other (I.R.S. employer
jurisdiction of identification
incorporation or number)
organization)
410 First Avenue
Needham, Massachusetts 02194
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip code)
Registrant's telephone number
including area code: (617) 449-4100
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 August 1, 1996, 9,820,865 shares of Common Stock, $.01 par value
per share, were outstanding.
Page 1 of 18 pages
Exhibit Index Appears on Page 16
<PAGE> 2
BROOKTROUT TECHNOLOGY, INC.
FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 1996
TABLE OF CONTENTS
Page
----
PART I FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets as of
June 30, 1996 and December 31, 1995 3
Condensed Consolidated Statements of Income for
the Three Months Ended June 30, 1996 and
June 30, 1995, and the Six Months ended
June 30, 1996 and June 30, 1995 4
Condensed Consolidated Statements of Cash Flows
for the Six Months Ended June 30, 1996
and June 30, 1995 5
Notes to Condensed Consolidated Financial
Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Three Months Ended June 30, 1996 and 1995 9
Six Months Ended June 30, 1996 and 1995 10
Liquidity and Capital Resources 12
PART II OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security
Holders 13
Item 6. Exhibits 14
Signatures 15
Exhibit Index 16
<PAGE> 3
BROOKTROUT TECHNOLOGY, INC.
<TABLE>
Condensed Consolidated Balance Sheets
(In thousands, except share data)
<CAPTION>
June 30, December 31,
1996 1995
-------- ------------
<S> <C> <C>
ASSETS
Current assets:
Cash and equivalents .......................................... $16,683 $14,230
Marketable securities ......................................... 7,262 7,924
Accounts receivable (less allowance for doubtful
accounts of $483 in 1996 and $449 in 1995) .................. 6,116 6,097
Inventory ..................................................... 5,836 3,878
Deferred tax assets ........................................... 628 454
Prepaid expenses .............................................. 361 366
------- -------
TOTAL CURRENT ASSETS ........................................ 36,886 32,949
------- -------
Equipment and furniture:
Computer equipment ............................................ 2,010 1,346
Furniture and office equipment ................................ 2,020 539
------- -------
Total ....................................................... 4,030 1,885
Less accumulated depreciation and amortization .............. (1,059) (852)
------- -------
EQUIPMENT AND FURNITURE - NET ............................... 2,971 1,033
Investment and other assets ..................................... 596 599
------- -------
TOTAL ................................................... $40,453 $34,581
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit ................................................ $ 50
Current portion of long-term debt ............................. 6
Accounts payable .............................................. $ 9,364 5,110
Customer deposits ............................................. 549 376
Accrued warranty costs ........................................ 353 336
Accrued compensation and commission ........................... 1,500 1,185
Accrued income taxes .......................................... 197 1,063
------- -------
TOTAL CURRENT LIABILITIES ................................... 11,963 8,126
------- -------
Deferred rent ................................................... 109 10
Stockholders' equity:
Common stock, $.01 par value; authorized, 25,000,000
shares; issued and outstanding 9,819,965 shares in
1996 and 9,683,116 in 1995 .................................. 98 97
Additional paid-in capital .................................... 17,030 16,884
Unrealized gains (losses) on marketable securities ............ (10) 49
Retained earnings ............................................. 11,263 9,415
------- -------
STOCKHOLDERS' EQUITY .......................................... 28,381 26,445
------- -------
TOTAL ......................................................... $40,453 $34,581
======= =======
</TABLE>
See notes to condensed consolidated financial statements.
3
<PAGE> 4
BROOKTROUT TECHNOLOGY, INC.
<TABLE>
Condensed Consolidated Statements of Income
(In thousands, except per share data)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- -----------------------
1996 1995 1996 1995
------- ------ ------- -------
<S> <C> <C> <C> <C>
REVENUE .................................................. $13,445 $8,963 $24,745 $16,130
Cost and expenses:
Cost of product sold ................................... 5,708 4,258 10,805 7,752
Research and development ............................... 1,692 1,150 3,248 2,150
Selling, general and administrative .................... 3,254 2,139 6,238 3,946
Acquisition related charges ............................ 1,236 0 1,236 0
------- ------ ------- -------
Total cost and expenses ............................ 11,890 7,547 21,527 13,848
------- ------ ------- -------
INCOME FROM OPERATIONS ................................... 1,555 1,416 3,218 2,282
Interest income, net ..................................... 246 204 509 419
------- ------ ------- -------
Income before income tax provision ....................... 1,801 1,620 3,727 2,701
Income tax provision ..................................... 1,107 653 1,867 1,102
------- ------ ------- -------
NET INCOME ............................................... $ 694 $ 967 $ 1,860 $ 1,599
======= ====== ======= =======
NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE ........ $ 0.07 $ 0.10 $ 0.18 $ 0.16
======= ====== ======= =======
Weighted average number of common and
common equivalent shares outstanding ................... 10,362 9,984 10,458 9,927
======= ====== ======= =======
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE> 5
BROOKTROUT TECHNOLOGY, INC.
<TABLE>
Condensed Consolidated Statements of Cash Flows
(In thousands)
<CAPTION>
Six Months Ended
June 30,
------------------
1996 1995
------- -------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income .......................................... $ 1,860 $ 1,599
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization .................. 214 311
Amortization of net premium on
marketable securities ......................... 18 16
Deferred income taxes .......................... (174) (30)
Increase (decrease) in cash from:
Accounts receivable ....................... 19 (1,640)
Inventory.................................. (1,958) (1,435)
Other prepaid expenses..................... 5 44
Accounts payable and accrued expenses ..... 3,906 1,346
------- -------
Cash provided by
operating activities ................. 3,890 211
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for equipment and furniture ............ (2,145) (308)
Purchases of marketable securities .................. (1,801) (4,719)
Maturities and sales of marketable securities ....... 2,386 6,854
------- -------
Cash provided by (used in)
investing activities ................. (1,560) 1,827
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the sale of common stock .............. 141 56
Distributions to stockholders ....................... (12) (2)
Repayment of long-term debt ......................... (6) (12)
------- -------
Cash provided by
financing activities ................. 123 42
------- -------
INCREASE IN CASH AND EQUIVALENTS ......................... 2,453 2,080
CASH AND EQUIVALENTS, BEGINNING OF PERIOD ................ 14,230 10,435
------- -------
CASH AND EQUIVALENTS, END OF PERIOD ...................... $16,683 $12,515
======= =======
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE> 6
BROOKTROUT TECHNOLOGY, INC.
Notes to Condensed Consolidated Financial Statements - Unaudited
1. Basis of presentation
On May 29, 1996, Brooktrout Technology, Inc. (the "Company") acquired
Technically Speaking, Inc. ("TSI") which was accounted for as a
pooling-of-interests. All financial data of the Company, including the Company's
previously issued financial statements for the periods presented in this Form
10-Q, have been restated to include the historical financial information of TSI
in accordance with generally accepted accounting principles and pursuant to
Regulation S-X.
The accompanying unaudited condensed consolidated financial statements
have been prepared by the Company pursuant to the rules and regulations of the
Securities and Exchange Commission regarding interim financial reporting.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles and should be read in conjunction
with the audited consolidated financial statements incorporated by reference in
the Company's 1995 Annual Report on Form 10K and 10K/A.
In the opinion of management, the accompanying unaudited condensed
consolidated financial statements have been prepared on the same basis as the
audited consolidated financial statements and include all adjustments,
consisting only of normal recurring adjustments, necessary for a fair
presentation of the interim periods presented.
The operating results for the interim periods presented are not
necessarily indicative of the results which could be expected for the full year.
2. Net income per share
Net income per common and per common equivalent share are computed using
the weighted average number of common and dilutive common equivalent shares
outstanding during the period. Dilutive common equivalent shares represent
shares issuable upon exercise of stock options, calculated using the treasury
stock method. Weighted average shares outstanding and per share amounts have
been restated to reflect three-for-two stock splits on February 27, 1996 and
June 20, 1996.
6
<PAGE> 7
3. Inventory
<TABLE>
Inventory is carried at the lower of cost (first-in, first-out basis) or
market and consisted of the following:
<CAPTION>
June 30, December 31,
-------- ------------
1996 1995
---- ----
<S> <C> <C>
Raw materials $4,597,000 $2,979,000
Work in process 567,000 605,000
Finished goods 672,000 294,000
---------- ----------
Total $5,836,000 $3,878,000
========== ==========
</TABLE>
4. Major Customers
One customer accounted for approximately 28% and 45% of net revenue for
the three months ended June 30, 1996 and 1995, respectively, and 27% and 46% for
the six months ended June 30, 1996 and 1995, respectively.
5. Marketable Securities
Marketable securities consist mainly of U.S. government securities
purchased with remaining maturities in excess of three months.
The amortized cost of these securities at June 30, 1996 was $7,272,000.
Net unrealized holding losses of $10,000 were comprised of unrealized gains of
$10,000 and unrealized losses of $20,000 at June 30, 1996.
6. Income Taxes
<TABLE>
The provision for income taxes, computed using the estimated effective
rate for the year adjusted for significant permanent or other differences
occurring within a quarter, is approximately as follows:
<CAPTION>
Quarter Ended Six Months
June 30, Ended June 30,
------------- --------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Federal $ 613,000 $500,000 $1,257,000 $ 841,000
State 107,000 153,000 223,000 261,000
Non-deductible portion
of merger costs 386,000 386,000
Other 1,000 1,000
---------- -------- ---------- ----------
Income tax provision $1,107,000 $653,000 $1,867,000 $1,102,000
========== ======== ========== ==========
</TABLE>
7
<PAGE> 8
<TABLE>
A reconciliation of the statutory federal rate to the effective rate is as
follows:
<CAPTION>
Quarter Ended Six Months
June 30, Ended June 30,
------------- --------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Statutory tax rate 34% 34% 34% 34%
State taxes,
net of federal benefit 6 6 6 6
Non-deductible portion 10
of merger costs 22
Other 1
-- -- -- --
Effective tax rate 62% 40% 50% 41%
== == == ==
</TABLE>
7. International Sales
International sales, principally exports from the United States, accounted
for approximately 20% for the three months ended June 30, 1996 and less than 10%
for the three months ended June 30, 1995. International sales were approximately
19% and 10% for the six months ended June 30, 1996 and 1995, respectively.
8. Business Combinations
On May 29, 1996, the Company acquired TSI by issuing approximately 713,000
shares of its common stock in exchange for all the outstanding stock of TSI. TSI
is the developer of Show N Tel, a leading application development tool for
enterprise computer telephony applications. The acquisition was accounted for as
a pooling-of-interests. All financial data of the Company has been restated to
include the historical financial information of TSI. No significant adjustments
were required to conform the accounting policies of the Company and TSI.
In connection with the acquisition, the Company recorded charges related
to the merger with TSI totaling $1.2 million in the second quarter of fiscal
1996.
8
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
RESULTS OF OPERATIONS
Three Months Ended June 30, 1996 and 1995
Revenue during the three months ended June 30, 1996 increased by
approximately 50% to $13,445,000, up from $8,963,000 during the three months
ended June 30, 1995. This growth was primarily attributable to increased
shipments of TR Series products combined with increased revenues from TSI
software licensing. Increased sales reflect the growth of the principal market
segments served by the Company's products, especially the manufacture and sale
of fax products for use on local area networks and the manufacture and sale of
fax and OEM systems.
Cost of product sold was $5,708,000, or 42% of revenue, during the three
months ended June 30, 1996, compared to $4,258,000, or 48% of revenue, for the
same period in 1995. Gross profit percentage was approximately 58% and 52% for
the three months ended June 30, 1996 and 1995, respectively. The increase in
gross profit percentage is the result of a much higher proportion of TR Series
product shipments, which carry a comparatively higher gross margin than OEM
systems, coupled with decreases in product costs on OEM systems. In addition,
there was a higher proportion of software revenue relating to Show N Tel
products which has a relatively low cost of product sold.
Research and development expense was $1,692,000, or 13% of revenue,
compared with $1,150,000, or 13% of revenue, for the three months ended June 30,
1996 and 1995, respectively. The dollar increase in 1996 reflects the Company's
continuing development efforts for its TR Series product family and computer
telephony development tools, as well as fax and OEM systems development. The
Company intends to continue to commit significant resources to product
development and expects that research and development expenditures will be
approximately 13% to 15% of revenue for the foreseeable future.
Selling, general and administrative expense was $3,254,000 during the
three months ended June 30, 1996, compared with $2,139,000 during the same
period in 1995. This higher expense level resulted from increased staffing,
promotional activities and facility expenses. As a percentage of revenue,
selling, general and administrative expense for the second quarter of 1996 was
24% of revenue, compared with 24% for the second quarter of 1995.
During the quarter ended June 30, 1996, the Company incurred approximately
$1.2 million in costs related to the acquisition of and merger with Technically
Speaking, Inc. This acquisition has been accounted for as a
pooling-of-interests, and accordingly, costs incurred in connection with
consummating
9
<PAGE> 10
the transaction have been expensed. These costs related to professional fees for
legal and accounting advice, investment banking fees, and certain costs related
to the integration of the operations of the two companies.
For the three months ended June 30, 1996, interest and other income was
$246,000, compared with $205,000 for the same period in 1995.
The Company's effective tax rate, adjusted for significant permanent or
other differences occurring within a quarter, was 62% for the second quarter of
1996, based on the Company's estimated effective tax rate for the full year, and
40% for the second quarter of 1995.
Six Months Ended June 30, 1996 and 1995
Revenue during the six months ended June 30, 1996 increased by
approximately 53% to $24,745,000, up from $16,130,000 during the six months
ended June 30,1995. This revenue increase was attributable to increased TR
Series products coupled with increased revenues from TSI software licenses.
Increased sales reflect the growth of the principal market segments served by
the Company's products, especially the manufacture and sale of fax products for
use on local area networks and the manufacture and sale of fax and OEM systems.
Cost of product sold was $10,805,000, or 44% of revenue, during the six
months ended June 30, 1996, compared to $7,752,000, or 48% of revenue in 1995.
Gross profit percentage was 56% and 52% for the six months ended June 30, 1996
and 1995, respectively. The increase in gross profit percentage is the result of
a much higher proportion of TR Series product shipments, which carry a
comparatively higher gross margin than OEM systems, coupled with decreases in
product costs on OEM systems. In addition, there was a higher proportion of
software revenue relating to Show N Tel products which has a relatively low cost
of product sold.
Research and development expense was $3,248,000, or 13% of revenue,
compared with $2,150,000, or 13% of revenue, for the six months ended June 30,
1996 and 1995, respectively. The dollar increase in 1996 reflects the Company's
continuing development efforts for its TR Series product family and computer
telephony development tools, as well as fax and OEM systems development. As a
result of the increase in the Company's revenue base, however, the percentage
remained comparable.
Selling, general and administrative expenses was $6,238,000 during the six
months ended June 30, 1996, compared with $3,946,000 during the same period in
1995. This higher expense level resulted from increased staffing, promotional
activity and facility expenses. As a percentage, selling, general and
administrative expense in 1996 was 25% of revenue, compared with 24% for 1995.
10
<PAGE> 11
During the six months ended June 30, 1996, the Company incurred
approximately $1.2 million in costs related to the acquisition of and merger
with Technically Speaking, Inc. These costs related to professional fees for
legal and accounting advice, investment banking fees, and certain costs related
to the integration of the operations of the two companies.
For the six months ended June 30, 1996, interest and other income was
$509,000, compared with $419,000 for the same period in 1995.
The Company's effective tax rate, adjusted for significant permanent or
other differences, was 50% and 41% for the six months ended June 30, 1996 and
1995, respectively.
11
<PAGE> 12
Liquidity and Capital Resources
For the six months ended June 30, 1996, the Company funded its operations
principally through operating revenue. In July 1996, the Company renewed its
working capital line of credit. Under the renewed line of credit, the Company
may borrow up to $7,500,000 on an unsecured basis, all of which may be used for
issuance of letters of credit, subject to compliance with certain covenants. The
line of credit will expire in July 1997 and at that time any outstanding
balances would be payable in full. Any amounts borrowed under the line would be
subject to interest at the bank's prime rate. At June 30, 1996 there were no
commitments outstanding on letters of credit; no borrowings have been made
during any period presented.
The Company's working capital increased from $24.8 million at December 31,
1995 to $24.9 million at June 30, 1996. The increase was attributable, in part,
to higher cash and investments, accounts receivable, inventory, deferred tax
asset, and prepaid expense balances which were partially offset by higher
accounts payable, customer deposit, accrued warranty cost, and accrued
compensation and commission balances. The Company's aggregate cash, cash
equivalents and marketable securities position increased primarily as a result
of increases in accounts payable and accrued expenses and maturities and sales
of marketable securities, which were partially offset by expenditures for
equipment and furniture, increases in inventory and purchases of marketable
securities.
During the first six months of 1996, the Company invested approximately
$2.1 million in capital equipment. The Company currently has no material
commitments for additional capital expenditures.
The Company anticipates that cash flows from operations, together with
current cash and marketable securities balances and funds available under the
Company's line of credit, will be sufficient to meet the Company's working
capital and capital equipment expenditure requirements for the foreseeable
future.
12
<PAGE> 13
Part II. OTHER INFORMATION
Items 1 through 3.
None
Item 4. Submission of Matters to a Vote of Security Holders
On May 29, 1996, the Company held its 1996 Annual Meeting of Stockholders
(the "Annual Meeting"). At the Annual Meeting, stockholders of the Company were
asked to consider proposals (the "Proposals") (i) to elect two Class I Directors
of the Company, each to serve for a three-year term until the 1999 annual
meeting of stockholders and until their respective successors are duly elected
and qualified, (ii) to consider and act upon a proposal to adopt an amendment to
the Company's Articles of Organization increasing the number of authorized
shares of the Company's common stock, $.01 par value per shares, (iii) to
consider and act upon a proposal to approve an amendment to the Company's 1992
Stock Incentive Plan (the "1992 Plan") to increase the number of shares of the
Company's Common Stock subject to issuance under the 1992 Plan, and (iv) to
consider and act upon a proposal to ratify and approve the selection of Deloitte
& Touche LLP as the Company's independent auditors for the fiscal year ending
December 31, 1996.
With regard to the election of Directors, David L. Chapman and David W.
Duehren were nominated to serve as Class I Directors of the Company until the
1999 annual meeting; the other Directors of the Company whose terms of office as
directors continued after the Annual Meeting are as follows: Patrick T. Hynes
(Class II Director), W. Brooke Tunstall (Class II Director), Eric R. Giler
(Class III Director) and Robert G. Barrett (Class III Director).
With respect to the Proposals, the stockholders of the Company voted at
the Annual Meeting as hereinafter described. By a vote of 5,031,002 votes of
Common Stock in favor of David L. Chapman and 5,031,752 votes of Common Stock in
favor of David W. Duehren, in excess of a majority of the eligible votes, with
297,584 votes and 296,834 votes against each of Messrs. Chapman and Duehren,
respectively, each of David L. Chapman and David W. Duehren was elected as a
Class I Director of the Company.
With regard to the adoption of an amendment to the Company's Articles of
Organization increasing the number of authorized shares of the Company's common
stock, $.01 par value per shares, 4,362,363 votes of Common Stock in favor of
the increase in authorized shares, in excess of a majority of the eligible
votes, with 829,809 votes against the increase, 130,947 votes abstaining and
5,467 broker non-votes were submitted.
The amendment to the 1992 Plan to increase the number of shares on the
Company's Common Stock received 2,710,399 votes in favor, in excess of a
majority of the eligible votes, with
13
<PAGE> 14
1,118,582 against the amendment, 143,437 votes abstaining from the Stock
Incentive amendment and 1,356,168 broker non-votes.
The stockholders of the Company ratified and approved the selection of
Deloitte & Touche LLP as the Company's independent auditors for the current
fiscal year by a vote of 5,187,078 votes in favor, in excess of a majority of
eligible votes, with 14,215 votes against and 127,293 votes abstaining.
Item 5.
None
Item 6. Exhibits
(a) Exhibits
11. Computation of earnings per share
14
<PAGE> 15
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.
BROOKTROUT TECHNOLOGY, INC.
Date: August 12, 1996 By: /s/ Eric R. Giler
-----------------------------------------
Eric R. Giler
President
(Principal Executive Officer)
Date: August 12, 1996 By: /s/ Robert C. Leahy
-----------------------------------------
Robert C. Leahy
Vice President of Finance and
Operations and Treasurer
(Principal Financial and
Accounting Officer)
15
<PAGE> 16
<TABLE>
EXHIBIT INDEX
<CAPTION>
Sequentially
Exhibit Number Exhibit Numbered Page
<S> <C> <C>
11 Computation of Earnings
Per Share
-For the three months ended 17
June 30, 1996 and 1995
-For the six months ended 18
June 30, 1996 and 1995
</TABLE>
16
<PAGE> 1
Exhibit 11
BROOKTROUT TECHNOLOGY, INC.
<TABLE>
COMPUTATION OF INCOME PER COMMON SHARE
(In thousands, except per share data, unaudited)
<CAPTION>
Three Months Ended
June 30,
------------------
1996 1995
------- ------
<S> <C> <C>
Primary Income Per Share:
Weighted average number of common and
common equivalent shares outstanding:
Common stock 9,317 9,654
Common equivalent shares resulting
from options 1,045 330
------- ------
Total 10,362 9,984
======= ======
Net income $ 694 $ 967
======= ======
Net income per common share $ 0.07 $ 0.10
======= ======
Fully Diluted Income Per Share:
Weighted average number of common and
common equivalent shares outstanding:
Common stock 9,317 9,654
Common equivalent shares resulting
from options 1,054 289
------- ------
Total 10,371 9,943
======= ======
Net income $ 694 $ 967
======= ======
Net income per common shares $ 0.07 $ 0.10
======= ======
</TABLE>
<PAGE> 2
Exhibit 11
BROOKTROUT TECHNOLOGY, INC.
<TABLE>
COMPUTATION OF INCOME PER COMMON SHARE
(In thousands, except per share data, unaudited)
<CAPTION>
Six Months Ended
June 30,
----------------
1996 1995
------- ------
<S> <C> <C>
Primary Income Per Share:
Weighted average number of common and
common equivalent shares outstanding:
Common stock 9,509 9,641
Common equivalent shares resulting
from options 949 286
------- ------
Total 10,458 9,927
======= ======
Net income $ 1,860 $1,599
======= ======
Net income per common share $ 0.18 $ 0.16
======= ======
Fully Diluted Income Per Share:
Weighted average number of common and
common equivalent shares outstanding:
Common stock 9,509 9,642
Common equivalent shares resulting
from options 1,011 350
------- ------
Total 10,520 9,992
======= ======
Net income $ 1,860 $1,599
======= ======
Net income per common shares $ 0.18 $ 0.16
======= ======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
BROOKTROUT TECHNOLOGY, INC'S CONDENSED CONSOLIDATED BALANCE SHEET AND
STATEMENTS OF INCOME FOR THE PERIOD ENDED JUNE 30, 1996 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH BROOKTROUT TECHNOLOGY, INC'S 10-Q FOR
THE PERIOD ENDED JUNE 30, 1996.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> APR-01-1996
<PERIOD-END> JUN-30-1996
<EXCHANGE-RATE> 1
<CASH> 16,683
<SECURITIES> 7,262
<RECEIVABLES> 6,599
<ALLOWANCES> 483
<INVENTORY> 5,836
<CURRENT-ASSETS> 36,886
<PP&E> 4,030
<DEPRECIATION> 1,059
<TOTAL-ASSETS> 40,453
<CURRENT-LIABILITIES> 11,963
<BONDS> 0
<COMMON> 98
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 40,453
<SALES> 13,445
<TOTAL-REVENUES> 13,445
<CGS> 5,708
<TOTAL-COSTS> 5,708
<OTHER-EXPENSES> 4,490
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,801
<INCOME-TAX> 1,107
<INCOME-CONTINUING> 694
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 694
<EPS-PRIMARY> .07
<EPS-DILUTED> .07
</TABLE>
