<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 September 30, 1997
[ ] 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: (781) 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 November 1, 1997, 10,710,564 shares of Common Stock, $.01 par
value per share, were outstanding.
Page 1 of 16 pages
Exhibit Index Appears on Page 14
<PAGE> 2
BROOKTROUT TECHNOLOGY, INC.
FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1997
TABLE OF CONTENTS
Page
----
PART I FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets as of
September 30, 1997 and December 31, 1996 3
Condensed Consolidated Statements of Income for
the Three Months Ended September 30, 1997 and
September 30, 1996, and the Nine Months Ended
September 30, 1997 and September 30, 1996 4
Condensed Consolidated Statements of Cash Flows
for the Nine Months Ended September 30, 1997 and
September 30, 1996 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 September 30, 1997 and 1996 9
Nine Months Ended September 30, 1997 and 1996 10
Liquidity and Capital Resources 11
PART II OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 6. Exhibits 12
Signatures 13
Exhibit Index 14
<PAGE> 3
BROOKTROUT TECHNOLOGY, INC.
Condensed Consolidated Balance Sheets
(In thousands, except share data)
(Unaudited)
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
---- ----
<S> <C> <C>
ASSETS
Current assets:
Cash and equivalents ...................................... $23,313 $30,738
Marketable securities ..................................... 8,267 8,976
Accounts receivable (less allowance for doubtful
accounts of $1,270 in 1997 and $524 in 1996) ............ 10,673 7,107
Inventory ................................................. 8,690 5,504
Other current assets ...................................... 3,663 1,625
------- -------
TOTAL CURRENT ASSETS .................................... 54,606 53,950
------- -------
Equipment and furniture:
Computer equipment ........................................ 5,900 2,822
Furniture and office equipment ............................ 3,290 2,476
------- -------
Total ................................................... 9,190 5,298
Less accumulated depreciation and amortization .......... (2,553) (1,438)
------- -------
EQUIPMENT AND FURNITURE - NET ........................... 6,637 3,860
Investment and other assets ................................. 1,261 556
------- -------
TOTAL ............................................... $62,504 $58,366
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and other accruals ....................... $11,467 $ 8,342
Accrued compensation and commission ....................... 2,253 1,996
Accrued income taxes ...................................... -- 204
------- -------
TOTAL CURRENT LIABILITIES ............................... 13,720 10,542
Deferred rent ............................................... 209 232
Stockholders' equity:
Common stock, $.01 par value; authorized, 25,000,000
shares; issued and outstanding 10,709,101 shares in
1997 and 10,683,352 in 1996 ............................. 107 107
Additional paid-in capital ................................ 31,848 31,785
Unrealized gains (losses) on marketable securities ........ 11 (8)
Retained earnings ......................................... 16,609 15,708
------- -------
STOCKHOLDERS' EQUITY ...................................... 48,575 47,592
------- -------
TOTAL ..................................................... $62,504 $58,366
======= =======
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE> 4
BROOKTROUT TECHNOLOGY, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUE ............................................. $19,493 $15,874 $49,288 $40,619
------- ------- ------- -------
Cost and expenses:
Cost of product sold .............................. 8,804 7,148 21,869 17,953
Research and development .......................... 3,990 1,799 9,280 5,047
Selling, general and administrative ............... 5,679 3,558 14,192 9,796
Acquired research and development ................. -- -- 3,746 --
Acquisition related costs ......................... -- -- -- 1,236
------- ------- ------- -------
Total cost and expenses ....................... 18,473 12,505 49,087 34,032
------- ------- ------- -------
INCOME FROM OPERATIONS .............................. 1,020 3,369 201 6,587
Interest income, net ................................ 327 328 1,249 837
------- ------- ------- -------
Income before income tax provision .................. 1,347 3,697 1,450 7,424
Income tax provision ................................ 531 1,479 548 3,346
------- ------- ------- -------
NET INCOME .......................................... $ 816 $ 2,218 $ 902 $ 4,078
======= ======= ======= =======
NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE ... $ 0.07 $ 0.20 $ 0.08 $ 0.38
======= ======= ======= =======
Weighted average number of common and
common equivalent shares outstanding .............. 11,230 11,135 11,294 10,684
======= ======= ======= =======
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE> 5
BROOKTROUT TECHNOLOGY, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
-----------------------
1997 1996
-------- --------
<S> <C> <C>
ASH FLOWS FROM OPERATING ACTIVITIES:
Net income ........................................................ $ 902 $ 4,078
Adjustments to reconcile net income to cash provided
by operating activities:
Deferred income taxes ....................................... (3,618) (259)
Depreciation and amortization ............................... 1,115 387
Acquired research and development ........................... 3,746 --
Amortization of net premium (discount) on
marketable securities .................................... (37) 27
Increase (decrease) in cash, excluding the effects of an
acquisition, from:
Accounts receivable ................................... 214 (780)
Inventory ............................................. 267 (1,394)
Other current assets .................................. 1,381 (36)
Accounts payable and accrued expenses ................. 349 2,784
-------- -------
Cash provided by operating activities ............... 4,319 4,807
CASH FLOWS FROM INVESTING ACTIVITIES:
Expenditures for equipment and furniture .......................... (2,029) (2,652)
Acquisition of Netaccess (net of cash acquired) ................... (10,542) --
Purchases of marketable securities ................................ (6,808) (1,801)
Maturities and sales of marketable securities ..................... 7,572 2,386
-------- -------
Cash provided by (used in) investing activities ..... (11,807) (2,067)
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the sale of common stock ............................ 63 11,108
Distributions to stockholders ..................................... -- (12)
Repayment of long-term debt ....................................... -- (6)
-------- -------
Cash provided by financing activities ............... 63 11,090
-------- -------
INCREASE (DECREASE) IN CASH AND EQUIVALENTS .......................... (7,425) 13,830
CASH AND EQUIVALENTS, BEGINNING OF PERIOD ............................ 30,738 14,230
-------- -------
CASH AND EQUIVALENTS, END OF PERIOD .................................. $ 23,313 $28,060
======== =======
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE> 6
BROOKTROUT TECHNOLOGY, INC.
Notes to Condensed Consolidated Financial Statements
1. Basis of Presentation
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. They
should be read in conjunction with the audited consolidated financial statements
incorporated by reference in or included in the Company's 1996 Annual Report on
Form 10K.
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. Business Combination
On June 30, 1997, the Company acquired the assets and assumed certain
liabilities of Netaccess, Inc., a worldwide supplier of Primary Rate ISDN
network interface products and multiport modem products for open,
standards-based remote access and computer telephony systems. The purchase price
was $10.5 million, paid in cash, and the Company agreed to assume certain
liabilities aggregating $2 million.
The acquisition has been accounted for as a purchase, and accordingly,
the results of operations of Netaccess, Inc. have been included in the Company's
financial statements from the date of acquisition. The purchase price has been
allocated to the assets and other items acquired based upon their fair values.
The allocation reflected in these financial statements is preliminary and may
change upon completion of independent appraisals and other matters.
Based upon preliminary appraisals, the Company has recorded a charge of
$3.7 million ($2.3 million, net of tax benefits) representing the estimated
value of Netaccess' research and development efforts in process. Such efforts
had not yet reached technological feasibility and did not possess alternative
uses. Costs to complete the effort on these products is estimated to be $4.4
million, which will be expensed in the normal course of the Company's ongoing
product development program.
<PAGE> 7
3. 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, using the provisions of Accounting Principles
Board Opinion No. 15, "Earnings per Share." Dilutive common equivalent shares
represent shares issuable upon exercise of stock options, calculated using the
treasury stock method.
In March 1997, the Financial Accounting Standards Board released
Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings per
Share," which the Company will adopt in the fourth quarter of 1997. Had SFAS No.
128 been effective for the three months ended September 30, 1997 and 1996, and
for the nine months ended September 30, 1997 and 1996, reported earnings per
share on a pro forma basis would have been as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Basic ............... $0.08 $0.22 $0.08 $0.42
Diluted ............. $0.07 $0.20 $0.08 $0.38
</TABLE>
4. Inventory
Inventory is carried at the lower of cost (first-in, first-out basis) or
market and consisted of the following:
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
---- ----
<S> <C> <C>
Raw materials ............ $3,251,000 $3,740,000
Work in process .......... 2,769,000 1,104,000
Finished goods ........... 2,670,000 660,000
---------- ----------
Total ................. $8,690,000 $5,504,000
========== ==========
</TABLE>
5. Major Customers
One customer accounted for approximately 31% and 38% of net revenue for
the three months ended September 30, 1997 and 1996, respectively, and 32% and
31% for the nine months ended September 30, 1997 and 1996, respectively.
<PAGE> 8
6. 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 September 30, 1997 was
$8,256,000. Net unrealized holding gains were $11,300 at September 30, 1997.
7. Income Taxes
A reconciliation of the statutory federal rate to the effective rate is
as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Statutory tax rate 34% 34% 34% 34%
State taxes, net of
federal benefit 5 6 4 6
Other -- -- -- 5
-- -- -- --
Effective tax rate 39% 40% 38% 45%
== == == ==
</TABLE>
8. International Sales
International sales, principally exported from the United States,
accounted for approximately 17% and 16% of revenue for the three months ended
September 30, 1997 and 1996, respectively, and 19% and 18% for the nine months
ended September 30, 1997 and 1996, respectively.
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
RESULTS OF OPERATIONS
Three Months Ended September 30, 1997 and 1996
Revenue during the three months ended September 30, 1997 increased by
approximately 23% to $19,493,000, up from $15,874,000 during the three months
ended September 30, 1996. This growth was primarily attributable to an increase
in Primary Rate ISDN telephone network interface products due to the acquisition
of Netaccess, Inc. on June 30, 1997. In addition, there were increased shipments
of Show N Tel software development tools.
Cost of product sold was $8,804,000, or 45% of revenue, during the three
months ended September 30, 1997, compared to $7,148,000, or 45% of revenue, for
the same period in 1996, resulting in gross profit margins of approximately 55%
for both periods.
Research and development expense was $3,990,000, or 20% of revenue,
compared with $1,799,000, or 11% of revenue, for the three months ended
September 30, 1997 and 1996, respectively. The increase was primarily
attributable to development work being performed by Netaccess, Inc. related to
their next generation of products and also reflects the Company's continuing
development efforts for its TR Series product family, computer telephony
development tools, Brooktrout Open Systems Telephony Architecture (BOSTON),
network interface products and Brooktrout Interspeed, as well as fax and OEM
systems development. The Company intends to continue to commit significant
resources to product development.
Selling, general and administrative expense was $5,679,000 during the
three months ended September 30, 1997, compared with $3,558,000 during the same
period in 1996. This higher expense level resulted from increased staffing,
depreciation and rental expenses, primarily related to the acquisition of
Netaccess, Inc. As a percentage of revenue, selling, general and administrative
expense for the third quarter of 1997 was 29% of revenue, compared with 22% for
the third quarter of 1996.
For the three months ended September 30, 1997, interest and other income
was $327,000, compared with $328,000 for the same period in 1996.
The Company's effective tax rate was 39% in 1997 and 40% in 1996, based
on the Company's estimated effective tax rate for the full year.
<PAGE> 10
Nine Months Ended September 30, 1997 and 1996
Revenue during the nine months ended September 30, 1997 increased by
approximately 21% to $49,288,000, up from $40,619,000 during the nine months
ended September 30, 1996. The growth was attributable to an increase in Primary
Rate ISDN telephone network interface products for computer telephony systems
and increased shipments of OEM voice systems and TR Series products. The
increase in the sale of network interface products resulted primarily from the
acquisition of Netaccess, Inc. The Company's voice mail business increased due
to shipments of a new integrated voice mail system. Increased sales from the TR
Series products reflect the growth in the local area network/fax market segment
served by the Company.
Cost of product sold was $21,869,000, or 44% of revenue, during the nine
months ended September 30, 1997, compared to $17,953,000, or 44% of revenue, for
the same period in 1996, resulting in gross profit margins of approximately 56%
for both periods.
Research and development expense was $9,280,000, or 19% of revenue,
compared with $5,047,000, or 12% of revenue, for the nine months ended September
30, 1997 and 1996, respectively. The increase reflects the Company's continuing
development efforts for its TR Series product family, computer telephony
development tools, Brooktrout Open Systems Telephony Architecture (BOSTON),
network interface products and Brooktrout Interspeed, as well as fax and OEM
systems development. In addition, research and development expenses increased
following the acquisition of Netaccess, Inc.
Selling, general and administrative expense was $14,192,000 during the
nine months ended September 30, 1997, compared with $9,796,000 during the same
period in 1996. This higher expense level resulted from increased staffing, rent
and depreciation expenses, partly due to the acquisition of Netaccess, Inc. As a
percentage of revenue, selling, general and administrative expense for the first
nine months of 1997 was 29% of revenue, compared with 24% for the first nine
months of 1996.
On June 30, 1997, the Company acquired the assets and assumed certain
liabilities of Netaccess, Inc., a worldwide supplier of Primary Rate ISDN
network interface products and multiport modem products for open,
standards-based remote access and computer telephony systems. The purchase price
was $10.5 million, paid in cash, and the Company also agreed to assume certain
liabilities aggregating $2 million. Based upon preliminary appraisals, the
Company has recorded a charge of $3.7 million ($2.3 million, net of tax
benefits) representing the estimated value of Netaccess' research and
development efforts in-process.
For the nine months ended September 30, 1997, interest and other income
was $1,249,000, compared with $837,000 for the same period in 1996.
The Company's effective tax rate, adjusted for significant permanent or
other differences , was 38% and 45% for the nine months ended September 30, 1997
and 1996, respectively. For the full year 1997, the Company expects the
effective tax rate to approximate 39%.
<PAGE> 11
Liquidity and Capital Resources
For the nine months ended September 30, 1997, the Company funded its
operations principally through operating revenue. In August 1997, the Company
renewed its working capital line of credit. Under the renewed line of credit,
the Company may borrow up to $10,000,000 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 1998 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 September 30,
1997 there were no commitments outstanding on letters of credit; no borrowings
have been made during any period presented.
The Company's working capital decreased from $43.4 million at December
31, 1996 to $40.9 million at September 30, 1997. The decrease in working capital
was caused by the payment of $10.5 million in cash to acquire the assets of
Netaccess. This decrease was offset , in part, by an increase in working capital
of approximately $4.8 million, representing the working capital of Netaccess
acquired by the Company. Other increases in working capital represented
increases in cash, receivables and inventory consistent with the positive cash
flow from operations and the growth in the business experienced during the nine
months ended September 30, 1997.
During the first nine months of 1997, the Company invested approximately
$2 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.
Recent Accounting Pronouncements
In March 1997, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings per
Share," which will be effective during the fourth quarter of 1997. SFAS No. 128
will require the Company to restate all previously reported earnings per share
information to conform with the new pronouncement's requirements.
In June 1997, the FASB issued SFAS No. 131, "Disclosures about Segments
of an Enterprise and Related Information." This statement will be effective for
1998. SFAS No. 131 establishes standards for reporting information about
operating segments of the Company. This pronouncement would not have an impact
on reported net income or on the financial position of the Company.
<PAGE> 12
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
On October 4, 1996, Syntellect Technology Corp. ("Syntellect") filed a
Complaint against the Company in the United States District Court for the
Northern District of Texas, alleging infringement of certain patents held by
Syntellect relating to certain aspects of "automated attendant" technology.
Syntellect's Complaint does not identify the products of the Company which
allegedly infringe Syntellect's patents. The Complaint seeks injunctive relief,
damages in an unspecified amount, and multiple damages on account of alleged
willful infringement. A Motion to Dismiss the action, filed by the Company in
December 1996, was denied. On October 15, 1997, the Company filed a Motion for
Summary Judgment, which remains pending. The Company is reviewing the patents at
issue, and intends to defend the case vigorously.
Items 2. through 5.
None
Item 6. Exhibits
(a) Exhibits
11. Computation of earnings per share
<PAGE> 13
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: November 12, 1997 By:
--------------------------------------------
Eric R. Giler
President
(Principal Executive Officer)
Date: November 12, 1997 By:
--------------------------------------------
Robert C. Leahy
Vice President of Finance and Operations
and Treasurer
(Principal Financial and Accounting Officer)
<PAGE> 14
EXHIBIT INDEX
Sequentially
Exhibit Number Exhibit Numbered Page
11 Computation of Earnings Per Share
-For the three months ended 15
September 30, 1997 and 1996
-For the nine months ended 16
September 30, 1997 and 1996
27 Financial Data Schedule 17
<PAGE> 1
Exhibit 11
BROOKTROUT TECHNOLOGY, INC.
COMPUTATION OF INCOME PER COMMON SHARE
(In thousands, except per share data, unaudited)
<TABLE>
<CAPTION>
Three Months Ended
September 30,
1997 1996
---- ----
<S> <C> <C>
Primary Income Per Share:
Weighted average number of common and
common equivalent shares outstanding
Common Stock ............................................ 10,709 10,180
Common equivalent shares resulting from options ......... 521 955
------- -------
Total ............................................. 11,230 11,135
======= =======
Net income .................................................. $ 816 $ 2,218
======= =======
Net income per common share ................................. $ 0.07 $ 0.20
======= =======
Fully Diluted Income Per Share:
Weighted average number of common and
common equivalent shares outstanding
Common stock ............................................ 10,709 10,180
Common equivalent shares resulting from options ......... 714 1,174
------- -------
Total ............................................. 11,423 11,354
======= =======
Net income .................................................. $ 816 $ 2,218
======= =======
Net income per common share ................................. $ 0.07 $ 0.20
======= =======
</TABLE>
<PAGE> 2
Exhibit 11
BROOKTROUT TECHNOLOGY, INC.
COMPUTATION OF INCOME PER COMMON SHARE
(In thousands, except per share data, unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
1997 1996
------- -------
<S> <C> <C>
Primary Income Per Share:
Weighted average number of common and
common equivalent shares outstanding
Common Stock .............................................. 10,698 9,733
Common equivalent shares resulting from options ........... 596 951
------- -------
Total ............................................... 11,294 10,684
======= =======
Net income .................................................... $ 902 $ 4,078
======= =======
Net income per common share ................................... $ 0.08 $ 0.38
======= =======
Fully Diluted Income Per Share:
Weighted average number of common and
common equivalent shares outstanding
Common stock .............................................. 10,698 9,733
Common equivalent shares resulting from options ........... 614 1,065
------- -------
Total ............................................... 11,312 10,798
======= =======
Net income .................................................... $ 902 $ 4,078
======= =======
Net income per common share ................................... $ 0.08 $ 0.38
======= =======
</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 SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH BROOKTROUT TECHNOLOGY, INC.'S 10-Q FOR THE PERIOD ENDED
SEPTEMBER 30, 1997
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1
<CASH> 23,313
<SECURITIES> 8,267
<RECEIVABLES> 10,673
<ALLOWANCES> 1,270
<INVENTORY> 8,690
<CURRENT-ASSETS> 54,606
<PP&E> 9,190
<DEPRECIATION> 2,553
<TOTAL-ASSETS> 62,504
<CURRENT-LIABILITIES> 13,720
<BONDS> 0
0
0
<COMMON> 107
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 62,504
<SALES> 19,493
<TOTAL-REVENUES> 19,493
<CGS> 8,804
<TOTAL-COSTS> 8,804
<OTHER-EXPENSES> 9,669
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,347
<INCOME-TAX> 531
<INCOME-CONTINUING> 816
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 816
<EPS-PRIMARY> .07
<EPS-DILUTED> .07
</TABLE>
