<PAGE> 1
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED DECEMBER 31, 1995 COMMISSION FILE NUMBER 0-18708
MICROGRAFX, INC.
(Exact name of registrant as specified in its charter)
TEXAS 75-1952080
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1303 ARAPAHO 75081
RICHARDSON, TEXAS (Zip Code)
(Address of principal executive offices)
(214) 234-1769
(Registrant's telephone number)
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 .
----- -----
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
<TABLE>
<CAPTION>
Outstanding at
Class February 6, 1996
----- ----------------
<S> <C>
Common Stock 8,953,751
</TABLE>
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<PAGE> 2
MICROGRAFX, INC.
FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 1995
INDEX
<TABLE>
<CAPTION>
Page No.
--------
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets - 3
December 31, 1995 and June 30, 1995
Condensed Consolidated Statements of Income for the 4
Three and Six Months Ended December 31, 1995 and 1994
Condensed Consolidated Statements of Cash Flows for the 5
Three and Six Months Ended December 31, 1995 and 1994
Notes to Condensed Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial 8
Condition and Results of Operations
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders 12
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 13
</TABLE>
2
<PAGE> 3
MICROGRAFX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
<TABLE>
<CAPTION>
DECEMBER 31, 1995 JUNE 30, 1995
----------------- -------------
(unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $12,002 $11,180
Short-term investments 5,314 5,312
Accounts receivable, less allowances of $3,525 and $1,928 11,025 8,786
Inventories 1,400 1,204
Other current assets 2,699 1,803
------- -------
Total current assets 32,440 28,285
Property and equipment, net 3,558 4,374
Capitalized software development costs, net 3,459 3,453
Acquired product rights, net 1,787 1,302
Other assets 234 604
------- -------
Total assets $41,478 $38,018
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,967 $ 5,485
Accrued compensation and benefits 1,298 1,356
Accrued liabilities and other 3,863 3,311
Income taxes payable 1,730 710
------- -------
Total current liabilities 11,858 10,862
Noncurrent deferred income taxes and other 907 903
Shareholders' equity:
Preferred stock, voting, $.10 par value, 10,000 shares
authorized, none issued and outstanding - -
Common stock, $.01 par value,
20,000 shares authorized; 9,470 and 9,338 shares
issued; 8,928 and 8,836 shares outstanding 95 93
Additional capital 22,131 21,334
Retained earnings 9,732 7,272
Cumulative translation adjustment (645) (279)
Less - treasury stock (542 and 502 shares), at cost (2,600) (2,167)
------- -------
Total shareholders' equity 28,713 26,253
------- -------
Total liabilities and shareholders' equity $41,478 $38,018
======= =======
</TABLE>
See accompanying notes.
3
<PAGE> 4
MICROGRAFX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994
---------- ---------- --------- -----------
<S> <C> <C> <C> <C>
Net revenues $ 20,341 $ 17,157 $ 35,391 $ 31,368
Cost of revenues 4,672 4,157 8,256 7,847
---------- ---------- --------- -----------
Gross profit 15,669 13,000 27,135 23,521
Operating expenses:
Sales and marketing 9,157 8,960 16,564 16,581
General and administrative 1,859 1,822 3,689 3,683
Research and development 1,767 1,075 3,144 2,097
---------- ---------- --------- -----------
Total operating expenses 12,783 11,857 23,397 22,361
---------- ---------- --------- -----------
Income from operations 2,886 1,143 3,738 1,160
Interest income, net (180) (140) (360) (291)
Other expense, net 180 9 584 22
---------- ---------- --------- -----------
Total non operating (income) expense - (131) 224 (269)
---------- ---------- --------- -----------
Income before income taxes 2,886 1,274 3,514 1,429
Income taxes 866 382 1,054 435
---------- ---------- --------- -----------
Net income $ 2,020 $ 892 $ 2,460 $ 994
========== ========== ========= ===========
Income per share $ 0.22 $ 0.10 $ 0.27 $ 0.11
========== ========== ========= ===========
Shares used in computing
income per share 9,203 8,763 9,162 8,771
========== ========== ========= ===========
</TABLE>
See accompanying notes.
4
<PAGE> 5
MICROGRAFX, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
DECEMBER 31,
1995 1994
----------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 2,460 $ 994
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 4,114 4,018
Deferred income taxes and other (596) 599
Changes in assets and liabilities:
Increase in accounts receivable (2,239) (3,475)
(Increase) decrease in inventories (196) 659
Increase (decrease) in payables, accruals and other 701 (882)
----------- ---------
Total adjustments 1,784 919
----------- ---------
Net cash provided by operating activities 4,244 1,913
----------- ---------
Cash flows from investing activities:
Purchases of (proceeds from) short-term investments, net 2 2,482
Capitalization of software development costs and
purchases of acquired product rights (3,048) (2,320)
Purchases of property and equipment (745) (789)
Other 4 24
----------- ---------
Net cash used in investing activities (3,787) (603)
----------- ---------
Cash flows from financing activities:
Payments of notes payable, net - (691)
Proceeds from employee stock programs 718 318
Tax benefits realized from stock transactions 80 -
Purchases of treasury stock and other (433) (529)
----------- ---------
Net cash provided by financing activities 365 (902)
----------- ---------
Net increase in cash and cash equivalents 822 408
Cash and cash equivalents, beginning of period 11,180 10,802
----------- ---------
Cash and cash equivalents, end of period $ 12,002 $ 11,210
=========== ==========
Supplemental disclosures of cash flow information:
Cash paid for --
Interest $ 6 $ 27
Income taxes 75 3
</TABLE>
See accompanying notes.
5
<PAGE> 6
MICROGRAFX, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
In the opinion of management, the accompanying condensed consolidated
financial statements contain all the adjustments, which are normal and
recurring in nature, necessary to present fairly, in all material
respects, the financial position of Micrografx, Inc. ("Micrografx" or
"the Company") as of December 31, 1995 and June 30, 1995, and the results
of its operations and its cash flows for the periods presented. The
accompanying financial statements and notes thereto should be read in
conjunction with the Company's audited financial statements for the year
ended June 30, 1995, included in the 1995 Annual Report to Shareholders.
The results of operations for the period ended December 31, 1995 are not
necessarily indicative of results to be expected for the year ending
June 30, 1996.
2. INVENTORIES
Inventories consist of the following (in thousands):
<TABLE>
<CAPTION>
December 31, 1995 June 30, 1995
----------------- -------------
<S> <C> <C>
Raw materials $ 1,044 $ 749
Finished goods 356 455
----------- ---------
$ 1,400 $ 1,204
=========== =========
</TABLE>
3. DEBT
The Company's $6 million line of credit, which expired December 31, 1995,
was renewed effective January 1, 1996. The renewed line of credit
remains secured by certain receivables and fixed assets and contains
financial covenants, including limitations on minimum tangible net worth,
net liquid assets and quick ratio, as defined. The revolving line of
credit is due on demand on January 5, 1997 and bears interest at the
bank's prime rate (8.5% at December 31, 1995). At December 31, 1995 and
June 30, 1995, no borrowings under the line of credit were outstanding.
4. COMMITMENTS AND CONTINGENCIES
Forward Contracts
The Company periodically enters into foreign exchange contracts to hedge
against certain exposure to changes in foreign currency exchange rates.
This exposure results from the Company's foreign operations that are
denominated in currencies other than the U.S. dollar. The Company
revalues foreign exchange contracts at each balance sheet date, which
approximates fair value, and records the exchange differences as an
unrealized gain or loss. This gain or loss is included in other (income)
expenses, net. As of December 31, 1995, the Company had no forward
exchange contracts outstanding.
6
<PAGE> 7
MICROGRAFX, INC.
5. COMMON STOCK REPURCHASE
On May 10, 1994, the board of directors authorized the purchase of up to
one million shares of Micrografx common stock on the open market over a
five year period as market conditions warrant. The purpose of the
program is to fund existing employee stock benefit programs and will be
funded by normal working capital. No shares were purchased during the
quarter ended December 31, 1995. As of December 31, 1995, the Company
had repurchased approximately 275,000 shares at an average price of $6.81
per share under the repurchase program.
6. INCOME PER SHARE
Income per share (in thousands) for all periods presented is based on the
weighted average common and dilutive equivalent shares outstanding using
the treasury stock method.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
1995 1994 1995 1994
----- ----- ----- -----
<S> <C> <C> <C> <C>
Weighted average common stock
outstanding during the period 8,877 8,742 8,875 8,750
Common stock equivalents of employee
stock programs 326 21 287 21
----- ----- ----- -----
Shares used in primary income per
share calculation 9,203 8,763 9,162 8,771
===== ===== ===== =====
</TABLE>
Fully diluted income per share was not materially different from primary
income per share for all periods presented.
7
<PAGE> 8
MICROGRAFX, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
For the three months ended December 31, 1995, the Company reported net revenues
of $20.3 million and net income of $2.0 million, or $0.22 per share, compared
to net income of $0.9 million, or $0.10 per share, on net revenues of $17.2
million, for the three months ended December 31, 1994. The Company reported
net revenues of $35.4 million and net income of $2.5 million, or $0.27 per
share, for the six months ended December 31, 1995. This compares to net
revenues of $31.4 million and net income of $1.0 million, or $0.11 per share,
for the six months ended December 31, 1994.
Revenues by customer category for the three and six months ended December 31,
1995 and 1994 are shown below (in thousands). The Business category includes
the ABC Graphics Suite(TM), Micrografx Designer(TM), Picture Publisher(R),
Designer Power Pack, ABC FlowCharter(R), ABC ToolKit(TM) and ABC
SnapGraphics(TM). The Consumer category includes Crayola(TM) Amazing Art
Adventure(TM), Crayola(TM) Art Studio(TM), Crayola(TM)Art Studio(TM)2,
Crayola(TM)Art(TM), Hallmark Connections(TM) Card Studio(TM), Windows Draw(R)
and PhotoMagic(R). Legacy products include Micrografx Charisma(TM), Windows
OrgChart(R), Graphics Works(R) and revenues from clipart libraries and support
services.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
1995 1994 1995 1994
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Business 13,736 14,139 25,870 26,034
Consumer 6,041 2,407 8,844 4,261
Legacy 564 611 677 1,073
----------- ---------- ---------- ----------
Total $ 20,341 $ 17,157 $ 35,391 $ 31,368
=========== ========== ========== ==========
</TABLE>
The mix of the Company's revenues from business products has recently been
significantly impacted by the release of Windows(TM) 95 by Microsoft
Corporation in August 1995 and the Company's release of the ABC Graphics Suite
in September 1995. The ABC Graphics Suite is designed specifically for the
Windows 95 and Windows NT operating systems and includes new versions of the
Company's traditional business products: ABC FlowCharter, Designer and Picture
Publisher. Revenues from the Company's business products designed for the
Windows 3.1 operating system, the predecessor to Windows 95, declined as
customers began to transition to Windows 95 applications. During the quarter
ended December 31, 1995, revenue from the ABC Graphics Suite represented 33% of
the Company's business products revenues. As international versions of the ABC
Graphics Suite are released in additional languages, the transition from the
Company's Windows 3.1 business products to the ABC Graphics Suite is expected
to accelerate, and the Company's business products revenues will become
substantially dependent upon sales of ABC Graphics Suite.
The revenue growth in the Company's consumer products was primarily attributed
to the release of the initial version of the Hallmark Connections(TM) Card
Studio(TM) in August 1995. In addition, revenue from Windows Draw and the
products licensed under the Crayola(R) brand name grew 47% and 50% year over
year, respectively, for the quarters ended December 31, 1995 and 1994.
8
<PAGE> 9
MICROGRAFX, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Revenues by geographical region for the three and six months ended December 31,
1995 and 1994 were as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Americas 48% 39% 46% 42%
Europe 38% 49% 37% 45%
Pacific Rim 14% 12% 17% 13%
---- ---- ---- ----
Total 100% 100% 100% 100%
==== ==== ==== ====
</TABLE>
Revenue growth during the quarter was greatest in Japan and the United States,
which grew 55% and 47%, respectively, over the same quarter in fiscal 1995.
Revenue in the U.S. was positively impacted by the release of the ABC Graphics
Suite and the Company's consumer product offerings. During the quarter ended
December 31, 1995, these new products were only available in English for the
entire three months. As these products are localized into additional
languages, the Company expects that a greater percentage of its revenues will
come from other territories.
Cost of revenues for the three months ended December 31, 1995 was $4.7 million,
or 23% of net revenues, compared to $4.2 million, or 24% of net revenues, for
the three months ended December 31, 1995. Cost of revenues for the six months
ended December 31, 1995 was $8.3 million, or 23% of net revenues, compared to
$7.8 million, or 25% of net revenues, for the six months ended December 31,
1995. The improvement in cost of revenues for the three and six months ended
December 31, 1995 is attributable to a product mix that includes more OEM and
license revenues, which have lower cost of revenues than full product versions.
This improvement was offset in part by increased external royalties related to
new product offerings.
Sales and marketing expenses for the three months ended December 31, 1995 were
$9.1 million, or 45% of revenues, compared to $9.0 million, or 52% of revenues
for the same period in the previous year. For the six months ended December
31, 1995, sales and marketing expenses were $16.6 million or 47% of net
revenues, compared to $16.6 million or 53% of net revenues for the six months
ended December 31, 1994. The decrease in sales and marketing expense as a
percentage of revenue reflects the efficiencies gained by marketing fewer
products as a result of their combination into suite offerings.
General and administrative expenses were $1.9 million, or 9% of net revenues,
for the three months ended December 31, 1995, compared to $1.8 million, or 10%
of net revenues, for the three months ended December 31, 1994. For the six
months ended December 31, 1995, general and administrative expenses were $3.7
million, or 10% of net revenues, compared to $3.7 million, or 12% of net
revenues for the same period in the prior year.
9
<PAGE> 10
MICROGRAFX, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Net research and development expenses for the three months ended December 31,
1995 were $1.8 million, or 9% of net revenues, compared to $1.1 million, or 7%
of net revenues, for the quarter ended December 31, 1994. Net research and
development costs for the six months ended December 31, 1995 were $3.1 million,
or 9% of net revenues, compared to $2.1 million, or 7% of net revenues, for the
six months ended December 31, 1994. Gross research and development expenses,
before capitalization, for the three months ended December 31, 1995 were $2.4
million, or 12% of net revenues, compared to $1.8 million, or 10% of net
revenues for the quarter ended December 31, 1994. For the six months ended
December 31, 1995, gross research and development costs were $4.6 million or
13% of net revenues compared to $3.6 million or 11% of net revenues for the six
months ended December 31, 1994. The increase in research and development
expense is due to the concurrent development of new products that were released
during the six months ended December 31, 1995.
For the three months ended December 31, 1995, interest income of $0.2 million
was offset by other expense, consisting primarily of foreign exchange losses.
Non operating income was $0.1 million for the three months ended December 31,
1994. For the six months ended December 31, 1995, non operating expense was
$0.2 million compared to non operating income of $0.3 million for the six
months ended December 31, 1994.
FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS
The Company's product offerings in fiscal 1995 included Crayola Amazing Art
Adventure and Crayola Art Studio, which embody copyrights, trademarks, trade
names and other proprietary designs and characters that are the property (the
"Licensed Intellectual Property") of Binney & Smith Properties, Inc. (the
"Licensor") pursuant to a license agreement between the Company and the
Licensor (the "License Agreement"). For the three months ended December 31,
1995, the Company generated $0.2 million of net revenues from the sale of these
products. The License Agreement expired on December 31, 1995, and the Company
is required to cease using the Licensed Intellectual Property in connection
with these products by March 31, 1996.
In August 1995, the Company released Crayola Art, a new product specifically
designed for original equipment manufacturers, and in October 1995, the Company
released another product, Crayola Art Studio 2. Revenues from the sale of
these products were $1.7 million for the three months ended December 31, 1995.
The Company believes that it is entitled to a license agreement from the
Licensor for these new products. However, to date, the Licensor has not
provided the Company with such license agreement for these products. As a
result, the Company initiated litigation in February 1996 against Hallmark
Cards, Inc. and Binney & Smith asserting various claims of relief, including
monetary damages and a declaration that the Company is entitled to a license to
sell Crayola Art and Crayola Art Studio 2. Until this matter is resolved, the
Company anticipates continuing to sell these products. There is no assurance
that a new license agreement will be obtained or that the outcome of this
dispute will not have a material adverse effect upon the Company's future
results of operations.
10
<PAGE> 11
MICROGRAFX, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
At December 31, 1995, the Company's principal sources of liquidity consisted of
cash and cash equivalents of $12.0 million, short-term investments of $5.3
million, and a $6.0 million line of credit. No borrowings were outstanding
under the line of credit as of December 31, 1995.
As discussed in Notes to Condensed Consolidated Financial Statements, the
Company renewed its line of credit agreement effective January 1, 1996. The
renewed line of credit remains secured by certain receivables and fixed assets
and contains financial covenants, including limitations on minimum tangible net
worth, net liquid assets and quick ratio, as defined. The revolving line of
credit is due on demand on January 5, 1997 and bears interest at the bank's
prime rate (8.5% at December 31, 1995).
For the six months ended December 31, 1995 cash provided by operating and
financing activities exceeded cash used in investing activities, resulting in
an increase of $0.8 million in cash and cash equivalents. Operating activities
provided $4.2 million in cash during the six months ended December 31, 1995,
consisting primarily of net income of $2.5 million and depreciation and
amortization of $4.1 million, offset by an increase in accounts receivable of
$2.2 million. Investing activities used $3.8 million in cash during the six
months ended December 31, 1995 primarily due to capitalized software
development costs and purchases of acquired product rights of $3.0 million.
Financing activities provided $0.4 million in cash during the six months ended
December 31, 1995, consisting primarily of proceeds from employee stock
programs.
The Company believes that cash flow from operations, existing cash, and
existing and future borrowing arrangements will be sufficient to meet the
Company's capital expenditures, debt repayments, and any other working capital
requirements in the short term (the next 12 months). The Company believes that
thereafter its liquidity requirements will be met with cash flow from
operations and existing cash and short-term investment balances.
The Company notes that each of the above forward-looking statements are subject
to change based on various important factors including, without limitation,
competitive actions in the market place. Further information on potential
factors which could affect the Company's financial results are included in the
Company's 1995 Annual Report to Shareholders.
11
<PAGE> 12
MICROGRAFX, INC.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Company's Annual Meeting of Shareholders was held on November 9, 1995.
Proxy statements for the meeting were solicited pursuant to Regulations 14A
under the Securities Exchange Act of 1934. At the meeting, the following
matters were submitted to the shareholders for a vote:
(a) The six existing directors were elected to hold office until the
next annual election of directors by shareholders or until their
respective successors are elected and qualified;
(b) The Micrografx, Inc. 1995 Director Stock Option Plan was approved
by a vote of 3,536,442 shares in favor, 1,219,353 shares against,
22,681 shares abstaining, and 1,678,466 non votes;
(c) The amendment to the Micrografx, Inc. Employee Stock Purchase Plan
was approved by a vote of 3,986,672 shares in favor, 523,434 shares
against, 12,808 shares abstaining, and 1,934,028 non votes; and
(d) The appointment of Arthur Andersen LLP as independent public
accountants for Micrografx, Inc. was approved by a vote of
6,420,390 shares in favor, 21,690 shares against, 14,862 shares
abstaining, and 1 non vote.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K - none.
12
<PAGE> 13
MICROGRAFX, INC.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MICROGRAFX, INC.
Date: February 12, 1996 By /s/ J. Paul Grayson
------------------------------------
J. Paul Grayson
Chairman of the Board of Directors
and Chief Executive Officer
Date: February 12, 1996 By /s/ Gregory A. Peters
------------------------------------
Gregory A. Peters
Chief Financial Officer
and Treasurer
13
<PAGE> 14
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 9,719
<SECURITIES> 5,193
<RECEIVABLES> 11,640
<ALLOWANCES> (2,261)
<INVENTORY> 1,089
<CURRENT-ASSETS> 27,487
<PP&E> 13,724
<DEPRECIATION> (9,636)
<TOTAL-ASSETS> 37,017
<CURRENT-LIABILITIES> 9,549
<BONDS> 0
<COMMON> 94
0
0
<OTHER-SE> 26,364
<TOTAL-LIABILITY-AND-EQUITY> 37,017
<SALES> 15,050
<TOTAL-REVENUES> 15,050
<CGS> 3,584
<TOTAL-COSTS> 3,584
<OTHER-EXPENSES> 10,614
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5
<INCOME-PRETAX> 628
<INCOME-TAX> 188
<INCOME-CONTINUING> 440
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 440
<EPS-PRIMARY> .05
<EPS-DILUTED> .05
</TABLE>
