<PAGE> 1
FORM 10-Q
---------
SECURITIES AND EXCHANGE COMMISSION
----------------------------------
WASHINGTON, D.C. 20549
----------------------
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- ----- SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD
ENDED DECEMBER 31, 1998.
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- ----- SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD
FROM ________________ TO ________________.
Commission File No. 0-13375
LSI Industries Inc.
State of Incorporation - Ohio IRS Employer I.D. No. 31-0888951
10000 Alliance Road
Cincinnati, Ohio 45242
(513) 793-3200
Indicate by checkmark 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, and (2) has been subject to such filing requirements
for the past 90 days.
YES X NO
----- -----
Common Shares, no par value. Shares outstanding at January 27, 1999: 10,055,035
<PAGE> 2
LSI INDUSTRIES INC.
-------------------
FORM 10-Q
---------
FOR THE QUARTER ENDED DECEMBER 31, 1998
---------------------------------------
INDEX
-----
Begins on
Page
----
PART I. Financial Information
ITEM 1. Financial Statements
--------------------
Consolidated Income Statements....................... 3
Consolidated Balance Sheets.......................... 4
Consolidated Statements of Cash Flows................ 5
Notes to Financial Statements........................ 6
ITEM 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations...................................... 9
PART II. Other Information
ITEM 4. Submission of Matters to a Vote of Securityholders...12
ITEM 6. Exhibits and Reports on Form 8-K.....................12
Signatures .....................................................13
Page 2
<PAGE> 3
PART I. FINANCIAL INFORMATION
-----------------------------
ITEM 1. FINANCIAL STATEMENTS
- ------- --------------------
LSI INDUSTRIES INC.
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31 December 31
-------------------- --------------------
(in thousands, except per 1998 1997 1998 1997
share data; unaudited) ---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $56,059 $47,754 $109,473 $91,711
Cost of products sold 36,300 30,634 71,480 59,072
------- ------- -------- -------
Gross profit 19,759 17,120 37,993 32,639
Selling and administrative expenses 12,360 11,253 24,333 21,982
------- ------- -------- -------
Operating income 7,399 5,867 13,660 10,657
Interest expense -- 26 54 52
Interest (income) (138) (21) (266) (32)
Other expense 20 5 52 20
------- ------- -------- -------
Income before income taxes 7,517 5,857 13,820 10,617
Income tax expense 2,849 2,177 5,240 3,962
------- ------- -------- -------
Net income $ 4,668 $ 3,680 $ 8,580 $ 6,655
======= ======= ======== =======
Earnings per common share
Basic $.48 $.39 $.89 $.70
==== ==== ==== ====
Diluted $.47 $.38 $.87 $.68
==== ==== ==== ====
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
financial statements.
Page 3
<PAGE> 4
LSI INDUSTRIES INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
(In thousands, except share amounts) December 31, June 30,
1998 1998
---- ----
<S> <C> <C>
ASSETS
- ------
Current Assets
Cash and cash equivalents $ 13,748 $ 9,338
Accounts receivable 32,217 33,184
Inventories 25,769 24,958
Other current assets 2,442 2,068
-------- --------
Total current assets 74,176 69,548
Property, plant and equipment, net 26,941 27,735
Goodwill and other assets, net 12,750 13,033
-------- --------
$113,867 $110,316
======== ========
LIABILITIES & SHAREHOLDERS' EQUITY
- ----------------------------------
Current Liabilities
Current maturities of long-term debt $ 138 $ 190
Accounts payable 12,848 13,689
Accrued expenses 12,617 15,432
-------- --------
Total current liabilities 25,603 29,311
Long-Term Debt 1,005 1,005
Other Long-Term Liabilities 1,291 1,343
Shareholders' Equity
Preferred shares, without par value;
Authorized 1,000,000 shares; none issued -- --
Common shares, without par value;
Authorized 30,000,000 shares;
Outstanding 9,692,767 and 9,634,608
shares, respectively 35,962 35,368
Retained earnings 50,006 43,289
-------- --------
Total shareholders' equity 85,968 78,657
-------- --------
$113,867 $110,316
======== ========
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
financial statements.
Page 4
<PAGE> 5
LSI INDUSTRIES INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
(In thousands) Six Months Ended
December 31
----------------------
1998 1997
---- ----
<S> <C> <C>
Cash Flows from Operating Activities
Net income $ 8,580 $ 6,655
Non-cash items included in income
Depreciation and amortization 2,207 1,977
Deferred income taxes 60 60
Loss on disposition of fixed assets 52 20
Changes in operating assets and liabilities
Accounts receivable 967 (1,888)
Inventories (811) (2,622)
Accounts payable and other (4,022) (314)
Change in liability for discontinued operations (8) (7)
------- -------
Net cash flows from operating activities 7,025 3,881
------- -------
Cash Flows from Investing Activities
Purchase of property, plant and equipment (1,294) (2,292)
Proceeds from sale of fixed assets -- 11
------- -------
Net cash flows from investing activities (1,294) (2,281)
------- -------
Cash Flows from Financing Activities
Payment of long-term debt (52) (60)
Cash dividends paid (1,863) (1,551)
Purchase of treasury shares (206) (57)
Proceeds from issuance of common shares 800 86
------- -------
Net cash flows from financing activities (1,321) (1,582)
------- -------
Increase in cash and cash equivalents 4,410 18
Cash and cash equivalents at beginning of year 9,338 2,612
------- -------
Cash and cash equivalents at end of period $13,748 $ 2,630
======= =======
Supplemental Cash Flow Information
Interest paid $ 56 $ 60
Income taxes paid $ 5,400 $ 3,626
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
financial statements.
Page 5
<PAGE> 6
LSI INDUSTRIES INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
NOTE 1: INTERIM FINANCIAL STATEMENTS
The interim financial statements are unaudited and are prepared in
accordance with rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally included
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules
and regulations. In the opinion of Management, the interim financial
statements include all normal adjustments and disclosures necessary to
present fairly the Company's financial position as of December 31, 1998,
and the results of its operations and its cash flows for the periods ended
December 31, 1998 and 1997. These statements should be read in conjunction
with the financial statements and footnotes included in the fiscal 1998
annual report.
NOTE 2: RECENT PRONOUNCEMENTS
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133 (SFAS No. 133), "Accounting for
Derivative Instruments and Hedging Activities," which establishes standards
for reporting and disclosure of derivative and hedging instruments. SFAS
No. 133 is effective for all fiscal quarters of all fiscal years beginning
after June 15, 1999. The Company will not be affected by this new standard
because the Company has no derivative or hedging financial instruments.
NOTE 3: COMPREHENSIVE INCOME
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 130 (SFAS No. 130), "Reporting
Comprehensive Income," which established standards for reporting and
display of comprehensive income and its components (revenues, expenses,
gains, and losses) in a full set of general-purpose financial statements.
The Company adopted SFAS No. 130 in the quarter ended September 30, 1998.
For the periods disclosed, periods ending December 31, 1998 and 1997,
comprehensive income is equal to the net income reported.
NOTE 4: EARNINGS PER COMMON SHARE
In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 128 (SFAS No. 128), "Earnings Per
Share," which requires the presentation of basic and diluted earnings per
share on the face of the income statement for all entities with complex
capital structures and requires a reconciliation of both the numerator and
denominator of the basic and dilutive earnings per share computations. The
Company adopted SFAS No. 128 effective with the second quarter of fiscal
year 1998. All prior period earnings per share have been restated for the
new disclosure.
Page 6
<PAGE> 7
NOTE 4: EARNINGS PER COMMON SHARE (continued)
The following table presents the amounts used to compute earnings per
common share and the effect of dilutive potential common shares on net
income and weighted average shares outstanding:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31 December 31
----------------- ----------------
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
BASIC EARNINGS PER SHARE
- ------------------------
Net income $4,668 $3,680 $8,580 $6,655
====== ====== ====== ======
Weighted average shares
outstanding during the period,
net of treasury shares 9,682 9,542 9,670 9,533
====== ====== ====== ======
Basic earnings per share $ .48 $ .39 $ .89 $ .70
====== ====== ====== ======
DILUTED EARNINGS PER SHARE
- --------------------------
Net income $4,668 $3,680 $8,580 $6,655
====== ====== ====== ======
Weighted average shares
outstanding during the period,
net of treasury shares 9,682 9,542 9,670 9,533
Effect of dilutive securities:
Impact of common shares to
be issued under stock option
plans and a deferred compensation
plan (A) (B) 191 222 194 202
------ ------ ------ ------
Weighted average shares outstanding 9,873 9,764 9,864 9,735
====== ====== ====== ======
Diluted earnings per share $ .47 $ .38 $ .87 $ .68
====== ====== ====== ======
</TABLE>
(A) Calculated using the "Treasury Stock" method as if dilutive
securities were exercised and the funds were used to purchase Common
Shares at the average market price during the period.
(B) Options to purchase 6,799 common shares and 500 common shares during
the quarters ended December 31, 1998 and 1997, respectively, and
3,399 common shares and 14,716 common shares during the six month
periods ended December 31, 1998 and 1997, respectively, were not
included in the computation of diluted earnings per share because the
exercise price was greater than the average fair market value of the
common shares.
Page 7
<PAGE> 8
NOTE 5: INVENTORIES
Inventories consist of the following (in thousands):
December 31, 1998 June 30, 1998
----------------- -------------
Raw Materials $12,748 $12,192
Work-in-Process and
Finished Goods 13,021 12,766
------- -------
$25,769 $24,958
======= =======
NOTE 6: CASH DIVIDENDS
The Company paid cash dividends of $1,863,000 and $1,551,000 in the six
month periods ended December 31, 1998 and 1997, respectively. In January
1999, the Company's Board of Directors declared a $.0675 per share regular
quarterly cash dividend ($678,000) payable on February 16, 1999 to
shareholders of record February 9, 1999.
NOTE 7: SHAREHOLDERS' EQUITY
The Company has a non-qualified Deferred Compensation Plan with all Plan
investments in common shares of the Company. As of December 31, 1998 a
total of 44,660 common shares at a cost of $672,891 were held in the Plan,
and, accordingly, have been recorded as treasury shares.
NOTE 8: SUBSEQUENT EVENT
The Company acquired the outstanding common and preferred stock of both
Mid-West Chandelier Company and Fairfax Lighting Co. on January 1, 1999.
Total purchase price for the two companies was approximately $16 million
($12 million for Mid-West and $4 million for Fairfax) consisting of $8
million in cash and 357,143 common shares of LSI Industries. In addition, a
contingent "earn-out" having a maximum value of $1 million in cash and $1
million in stock could be earned during the three years subsequent to the
merger providing certain minimum earnings thresholds are exceeded. The new
subsidiary, LSI MidWest Lighting Inc., will continue to operate in Kansas
City, Kansas as a manufacturer of a broad line of fluorescent lighting
fixtures for the retail and commercial markets. The acquisition will be
accounted for as a purchase, effective on the date of acquisition.
Page 8
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
- ----------------------------------------------------------
CONDITION AND RESULTS OF OPERATIONS
-----------------------------------
NET SALES BY BUSINESS SEGMENT
(In thousands, unaudited)
Three Months Ended Six Months Ended
December 31 December 31
-------------------- -------------------
1998 1997 1998 1997
---- ---- ---- ----
Image Group $40,628 $35,034 $ 78,584 $66,833
Commercial / Industrial
Lighting Group 15,431 12,720 30,889 24,878
------- ------- -------- -------
$56,059 $47,754 $109,473 $91,711
======= ======= ======== =======
RESULTS OF OPERATIONS
- ---------------------
THREE MONTHS ENDED DECEMBER 31, 1998 COMPARED WITH THREE MONTHS ENDED DECEMBER
31, 1997
Net sales of $56,059,000 in the second quarter of fiscal 1999 increased
17% over fiscal 1998 second quarter net sales of $47,754,000. Commercial /
Industrial Lighting Group net sales increased 21% and Image Group net sales
increased 16% in the second quarter of fiscal 1999 as compared to the prior
year. The increase in the Commercial / Industrial Lighting Group net sales
resulted from growth in substantially all markets and from inclusion of the
results of LSI Marcole (acquired February 1998; approximately 1% of sales in FY
1999). The increase in Image Group sales is attributed to growth in
substantially all markets and products, particularly petroleum lighting,
graphics, and quick service restaurant. Net sales of the Image Group to the
petroleum / convenience store market represented 45% and 47% of net sales in the
second quarter of fiscal 1999 and fiscal 1998, respectively. While sales prices
were increased, inflation did not have a significant impact on sales in 1999 as
competitive pricing pressures held price increases to a minimum.
Gross profit of $19,759,000 increased 15% over last year's second
quarter gross profit of $17,120,000, and decreased as a percentage of net sales
to 35.2% in fiscal year 1999 as compared to 35.9% in the prior year. The
increase in amount of gross profit is due primarily to the 17% increase in net
sales. The decrease in gross profit percentage is primarily related to lower
margins in the graphics product lines in the Image Group and to the lower gross
margin of the acquired business of LSI Marcole. Selling and administrative
expenses increased to $12,360,000 from $11,253,000 primarily as a result of
increased sales volume. As a percentage of net sales, selling and administrative
expenses were at 22.0% in the second quarter of fiscal 1999 as compared to 23.6%
in the prior year.
The Company reported net interest income of $138,000 in the second
quarter of fiscal 1999 as compared to net interest expense of $5,000 in fiscal
1998 reflective of an increased amount short-term cash investments. The
Company's effective tax rate increased to 37.9% in the second quarter of fiscal
1999 as compared to 37.2% in fiscal 1998 primarily due to increased provision of
state and local income tax.
Page 9
<PAGE> 10
Net income of $4,668,000 increased 27% over $3,680,000 in the second
quarter of fiscal 1998. The increased net income resulted from increased gross
profit on higher net sales, and from the reporting of a larger amount of net
interest income in fiscal 1999 as compared to 1998, partially offset by
increased operating expenses and income taxes. Diluted earnings per share
earnings of $0.47 increased 24% in the second quarter of fiscal 1999 from $0.38
per share in fiscal 1998. The weighted average common shares outstanding for
purposes of computing diluted earnings per share increased 1% in the second
quarter of fiscal 1999 to 9,873,000 shares from 9,764,000 shares in 1998
primarily as a result of stock options.
Certain recently issued accounting pronouncements will affect the
Company's future financial statements and/or disclosures. See Note 2 to these
financial statements for additional discussion.
SIX MONTHS ENDED DECEMBER 31, 1998 COMPARED WITH SIX MONTHS ENDED DECEMBER 31,
1997
Net sales of $109,473,000 in the first half of fiscal 1999 increased
19% over fiscal 1998 first half net sales of $91,711,000. Commercial /
Industrial Lighting Group net sales increased 24% and Image Group net sales
increased 18% in the first half of fiscal 1999 as compared to the prior year.
The increase in the Commercial / Industrial Lighting Group net sales resulted
from growth in substantially all markets and from inclusion of the results of
LSI Marcole (acquired February 1998; approximately 2% of sales in FY 1999). The
increase in Image Group sales is attributed to growth in substantially all
markets and products, particularly petroleum lighting, graphics, and quick
service restaurant. Net sales of the Image Group to the petroleum / convenience
store market represented 46% and 47% of net sales in the first half of fiscal
1999 and fiscal 1998, respectively. While sales prices were increased, inflation
did not have a significant impact on sales in 1999 as competitive pricing
pressures held price increases to a minimum.
Gross profit of $37,993,000 increased 16% over last year's first half
gross profit of $32,639,000, and decreased as a percentage of net sales to 34.7%
in fiscal year 1999 as compared to 35.6% in the prior year. The increase in
amount of gross profit is due primarily to the 19% increase in net sales. The
decrease in gross profit percentage is primarily related to slightly lower
margins in the graphics product lines in the Image Group and to the lower gross
margin of the acquired business of LSI Marcole. Selling and administrative
expenses increased to $24,333,000 from $21,982,000 primarily as a result of
increased sales volume. As a percentage of net sales, selling and administrative
expenses were at 22.2% in the second quarter of fiscal 1999 as compared to 24.0%
in the prior year.
The Company reported net interest income of $212,000 in the first half
of fiscal 1999 as compared to net interest expense of $20,000 in fiscal 1998
reflective of an increased amount short-term cash investments. The Company's
effective tax rate increased to 37.9% in the first half of fiscal 1999 as
compared to 37.3% in fiscal 1998 primarily due to increased provision of state
and local income tax.
Net income of $8,580,000 increased 29% over $6,655,000 in the first
half of fiscal 1998. The increased net income resulted from increased gross
profit on higher net sales, and from the reporting of a larger amount of net
interest income in fiscal 1999 as compared to 1998,
Page 10
<PAGE> 11
partially offset by increased operating expenses and income taxes. Diluted
earnings per share earnings of $0.87 increased 28% in the first half of fiscal
1999 from $0.68 per share in fiscal 1998. The weighted average common shares
outstanding for purposes of computing diluted earnings per share increased 1% in
the first half of fiscal 1999 to 9,864,000 shares from 9,735,000 shares in 1998
primarily as a result of stock options.
LIQUIDITY AND CAPITAL RESOURCES
At December 31, 1998 the Company had working capital of $48.6 million,
compared to $40.2 million at June 30, 1998. The ratio of current assets to
current liabilities increased to 2.90 to 1 from 2.37 to 1. The increased working
capital is primarily attributed to increased cash and inventories, and decreased
accrued expenses and accounts payable, partially offset by decreased accounts
receivable.
The Company generated $7.0 million of cash from operating activities in
the first half of fiscal 1999 as compared to $3.9 million fiscal 1998. The
Company generated more cash in the first half of fiscal 1999 primarily due to
increased net income, reduction of accounts receivable, and a lesser increase in
inventories, partially offset by significantly greater decreases in accounts
payable and accrued expenses. As of December 31, 1998, the Company's days sales
outstanding were at approximately 55 days, consistent with the June 30, 1998 DSO
statistic. Accrued expenses decreased significantly reflective of first half
payments related to the Company's compensation and retirement plans, and
accounts payable decreased in line with the flow of inventory replenishment.
In addition to cash generated from operations, the Company's primary
source of liquidity continues to be its lines of credit. The Company has two
revolving lines of credit totaling $24 million, all of which was available as of
January 25, 1999. These lines of credit are unsecured and expire in the third
quarter of fiscal 1999. The Company is currently in renewal negotiations and
expects to establish lines of credit under favorable terms and borrowing rates.
The Company believes that the total of available lines of credit plus cash flows
from operating activities is adequate for the Company's fiscal 1999 operational
and capital expenditure needs. The Company is in compliance with all of its loan
covenants. Capital expenditures of $1.3 million in the first half of fiscal 1999
compare to $2.3 million in the prior year. Capital expenditures totaling
approximately $7 million are planned for fiscal 1999, exclusive of business
acquisitions.
As discussed in Note 8 to the financial statements, the Company
completed the acquisition of two companies effective January 1, 1999. Total
purchase price for the two companies was approximately $16 million, consisting
of $8 million in cash and 357,143 common shares of LSI Industries. The
acquisition provides for a contingent "earn-out" having a maximum value of $1
million in cash and $1 million in stock which could be earned during the three
years subsequent to the merger providing certain minimum earnings thresholds are
exceeded. An additional approximate $1 million was used immediately following
the acquisition to reduce acquired liabilities. The Company continues to invest
excess cash in high-grade short-term cash investments, although at lesser
amounts following the acquisition.
In January 1999, the Board of Directors declared a regular quarterly
cash dividend of $.0675 per share ($678,000) to be paid February 16, 1999 to
shareholders of record on February 9, 1999.
Page 11
<PAGE> 12
The Company has completed its review of its business systems, office
support systems, and its facilities and equipment with respect to year 2000
programming deficiencies. No systems or equipment critical to operation of the
business have been identified as having a year 2000 deficiency. The review has
extended to major suppliers and customers, and this element of the review is
expected to be completed by September 30, 1999. The Company does not anticipate
material costs to be incurred to modify or replace any affected systems. The
Company anticipates completion of this process prior to September 30, 1999. The
Company has not to date developed any contingency plans related to its major
suppliers. Such plans will depend upon the responses from major suppliers in the
event any of them should fail to become year 2000 compliant.
The Company continues to seek opportunities to invest in new products
and markets, and in acquisitions which fit its strategic growth plans in the
lighting and graphics markets. The Company believes that adequate financing for
any such investments or acquisitions will be available through future borrowings
or through the issuance of common or preferred shares in payment for acquired
businesses.
PART II. OTHER INFORMATION
--------------------------
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITYHOLDERS
- -----------------------------------------------------------
At the Company's Annual Meeting of Shareholders held November 12, 1998,
the following actions were taken by shareholders:
4.1 All persons nominated as Class B Directors were elected with the
votes for each person being:
----------------------------------------------------------------------
Shares - Withheld
Name Shares For Authority
----------------------------------------------------------------------
Allen L. Davis 8,810,957 9,747
----------------------------------------------------------------------
James P. Sferra 8,805,942 14,762
----------------------------------------------------------------------
4.2 The selection of Arthur Andersen LLP as independent public
accountants for fiscal year 1999 was ratified by the following vote:
- --------------------------------------------------------------------------------
Shares For Shares Against Shares Abstained Broker Non-Votes
- --------------------------------------------------------------------------------
8,806,877 6,087 7,740 None
- --------------------------------------------------------------------------------
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -----------------------------------------
a) Exhibits
27 Financial Data Schedule
Page 12
<PAGE> 13
b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter
for which this Report is filed.
[All other items required in Part II have been omitted
because they are not applicable or are not required.]
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.
LSI Industries Inc.
-------------------
BY: /s/ ROBERT J. READY
-------------------------------------
Robert J. Ready
President and Chief Executive Officer
(Principal Executive Officer)
BY: /s/ RONALD S. STOWELL
-------------------------------------
Ronald S. Stowell
Vice President, Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
January 28, 1999
Page 13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
FOR THE PERIOD ENDED DECEMBER 31, 1998, AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000763532
<NAME> LSI INDUSTIRIES INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 13,748
<SECURITIES> 0
<RECEIVABLES> 33,095
<ALLOWANCES> (878)
<INVENTORY> 25,769
<CURRENT-ASSETS> 2,442
<PP&E> 44,797
<DEPRECIATION> (17,856)
<TOTAL-ASSETS> 113,867
<CURRENT-LIABILITIES> 25,603
<BONDS> 2,296
0
0
<COMMON> 35,962
<OTHER-SE> 50,006
<TOTAL-LIABILITY-AND-EQUITY> 113,867
<SALES> 109,473
<TOTAL-REVENUES> 109,473
<CGS> 71,480
<TOTAL-COSTS> 24,333
<OTHER-EXPENSES> 52
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (212)
<INCOME-PRETAX> 13,820
<INCOME-TAX> 5,240
<INCOME-CONTINUING> 8,580
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,580
<EPS-PRIMARY> 0.89
<EPS-DILUTED> 0.87
</TABLE>
