<PAGE>
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 DECEMBER 31, 1996
or
[ ] Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
FOR THE TRANSITION PERIOD FROM ________ TO _________
COMMISSION FILE NUMBER 1-9125
-----------------------------
AMERICAN TECHNICAL CERAMICS CORP.
-----------------------------------------------------
(Exact name of Registrant as specified in its charter)
DELAWARE 11-2113382
- ------------------------------- -------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
17 STEPAR PLACE, HUNTINGTON STATION, NY 11746
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
516-547-5700
-------------------------------------
(Telephone number including area code)
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 January 24, 1997, the Registrant had outstanding 3,887,761 shares of
Common Stock, par value $.01 per share.
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AMERICAN TECHNICAL CERAMICS CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
DECEMBER 31, 1996 JUNE 30, 1996
----------------- -------------
(In thousands)
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash (including cash equivalents of approximately
$1,274 and $1,082 respectively) $3,256 $2,661
Investments 1,379 887
Accounts receivable, net 4,131 4,913
Inventories 8,809 8,758
Deferred income taxes 738 738
Other current assets 637 641
--------- ---------
Total current assets 18,950 18,598
--------- ---------
Property, plant and equipment, net of
depreciation and amortization of $15,973
and $15,047 respectively 14,016 14,152
Other assets, net 328 308
--------- ---------
$33,294 $33,058
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $852 $841
Accounts payable 964 1,128
Accrued expenses 2,059 2,215
Income taxes payable 581 857
--------- ---------
Total current liabilities 4,456 5,041
--------- ---------
LONG-TERM DEBT 3,211 3,642
DEFERRED INCOME TAXES 1,280 1,283
--------- ---------
Total liabilities 8,947 9,966
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock- par value $.01; authorized
20,000,000 shares; issued 4,067,979
and 4,067,501 shares,respectively 41 41
Capital in excess of par value 6,502 6,439
Retained earnings 18,303 17,251
--------- ---------
24,846 23,731
Unrealized gain on investments available for sale 5 12
Less: Treasury stock, at cost; 178,718 and 183,518
shares,respectively 595 572
Foreign currency translation adjustment (91) 79
--------- ---------
Total stockholders' equity 24,347 23,092
--------- ---------
$33,294 $33,058
========= =========
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
-1-
<PAGE>
AMERICAN TECHNICAL CERAMICS CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS
<TABLE>
<CAPTION>
FOR THE QUARTER FOR THE SIX,MONTHS
ENDED DECEMBER 31, ENDED DECEMBER 31,
------------------ ------------------
1996 1995 1996 1995
---- ---- ----- ----
(IN THOUSANDS EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C>
Net sales $ 8,637 $ 7,759 $ 16,926 $ 15,613
Cost of goods sold 5,262 5,639 11,114 10,856
-------- -------- -------- --------
Gross profit 3,375 2,120 5,812 4,757
-------- -------- -------- --------
Selling, general and administrative expenses 1,888 1,669 3,377 3,306
Research and development expenses 324 424 697 786
-------- -------- -------- --------
Operating expenses 2,212 2,093 4,074 4,092
-------- -------- -------- --------
Income from operations 1,163 27 1,738 665
-------- -------- -------- --------
Other expense (income):
Interest expense 95 103 199 220
Interest income (60) (42) (104) (120)
Other 10 (180) 4 (321)
-------- -------- -------- --------
45 (119) 99 (221)
-------- -------- -------- --------
Income before provision for income taxes 1,118 146 1,639 886
Provision for income taxes 401 48 587 282
-------- -------- -------- --------
Net income $ 717 $ 98 $ 1,052 $ 604
======== ======== ======== ========
Net income per common and common equivalent share $ 0.18 $ 0.03 $ 0.27 $ 0.16
======== ======== ======== ========
Weighted average common and common
equivalent shares outstanding 3,885 3,879 3,885 3,876
======== ======== ======== ========
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
-2-
<PAGE>
AMERICAN TECHNICAL CERAMICS CORP. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED DECEMBER 31,
1996 1995
----- ----
(IN THOUSANDS)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,052 $ 604
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 933 867
Loss on disposal of fixed assets 5 --
Stock award compensation expense 86 128
Gain on sale of investments -- (328)
Provison for doubtful accounts receivable and sales returns 25 --
Changes in operating assets and liabilities:
Accounts receivable, net 810 165
Inventories 14 (1,046)
Other assets (186) (144)
Accounts payable, and accrued expenses (335) (589)
Income taxes payable (163) (43)
------- -------
Net cash provided by (used in) operating activities 2,241 (386)
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (766) (1,784)
Purchase of investments (502) (84)
Proceeds from sale of investments -- 3,064
Proceeds from sale of fixed assets 3 --
------- -------
Net cash (used in) provided by investing activities (1,265) 1,196
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt (420) (413)
Payments to acquire treasury stock (49) --
Issuance of stock 3 --
------- -------
Net cash used in financing activities (466) (413)
------- -------
Effect of exchange rate changes on cash 85 (28)
------- -------
Net increase in cash and cash equivalents 595 369
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 2,661 1,813
------- -------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 3,256 $ 2,182
======= =======
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
-3-
<PAGE>
AMERICAN TECHNICAL CERAMICS CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(1) PRINCIPLES OF CONSOLIDATION:
The accompanying unaudited interim financial statements reflect all
adjustments (consisting of normal recurring accruals) which are, in the
opinion of management, necessary for a fair presentation of its consolidated
financial position and results of operations as of and for the quarter and six
months ended December 31, 1996 and 1995. These financial statements should be
read in conjunction with the summary of significant accounting policies and
notes to consolidated financial statements included in the Registrant's annual
report to stockholders for the year ended June 30, 1996. Results for the six
months ended December 31, 1996 are not necessarily indicative of results which
could be expected for the entire year.
(2) INVENTORIES:
Inventories included in the accompanying consolidated financial
statements consist of the following:
Dec. 31, June 30,
1996 1996
------------ -----------
(in thousands)
Raw materials $2,225 $1,642
Work-in-process 3,239 3,413
Finished goods 3,345 3,703
-------- --------
$8,809 $8,758
======== ========
(3) NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE:
Net income per common and common equivalent share has been computed based
upon the weighted average number of shares outstanding. Recognition has been
given to the assumed exercise, as of the beginning of each period or date of
issuance if later, of outstanding options except when their effect would be
antidilutive or immaterial.
- 4 -
<PAGE>
AMERICAN TECHNICAL CERAMICS CORP. AND SUBSIDIARIES
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with
the consolidated financial statements, related notes and other information
included in this Quarterly Report on Form 10-Q.
Statements in this Quarterly Report on Form 10-Q that are not historical
fact may constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. All such forward-looking
statements are subject to risks and uncertainties, including, but not limited
to, the impact of competitive products, product demand and market acceptance
risks, fluctuations in operating results and delays in development of highly
complex products. These risks could cause the Registrant's actual results for
fiscal year 1997 and beyond to differ materially from those expressed in any
forward-looking statement made by the Registrant.
RESULTS OF OPERATIONS
- ---------------------
Three Months Ended December 31, 1996
Compared with Three Months Ended December 31, 1995
- --------------------------------------------------
Net sales for the three months ended December 31, 1996 increased 11% to
$8,637,000 as compared to net sales of $7,759,000 for the comparable quarter
in the prior fiscal year. This increase was primarily the result of increased
sales across all of the Registrant's product lines, led by particularly strong
sales of certain higher margin products and continued increases in sales of
thin film products. Sales of these higher margin products tends to be somewhat
irregular. Accordingly, it is difficult to predict sales trends for these
products. However, the Registrant believes that sales of commercial capacitors
and thin film products should fuel the overall growth in sales in the
foreseeable future. Orders for all of the Registrant's products were strong in
the quarter ended December 31, 1996. The backlog of unfilled orders was
$7,356,000 at December 31, 1996 and $6,538,000 at June 30, 1996.
- 5 -
<PAGE>
AMERICAN TECHNICAL CERAMICS CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS, continued
- --------------------------------
Gross margin for the three months ended December 31, 1996 was 39.1% of
net sales as compared to 27.3% for the comparable quarter in the prior fiscal
year. The higher gross margin in the current quarter was attributable to
several factors, including the positive effect of a manufacturing cost
reduction program implemented in August 1996, the correction of process
difficulties encountered in the prior year quarter which enabled the
Registrant to significantly increase the output of chip elements from its
white room operation, and an increase in sales of more premium priced
products.
Total operating expenses for the three months ended December 31, 1996
increased 6% to $2,212,000 as compared to $2,093,000 in the comparable period
in the prior fiscal year. The increase in operating expenses was attributable
to slightly higher selling, general and administrative expenses. Executive
salaries were higher as a result of the addition of a Senior Vice President of
Operations and the effect of higher bonus accruals as a result of higher
pretax profits.
Net interest expense amounted to $35,000 in the current quarter as
compared to net interest expense of $61,000 in the comparable quarter in the
prior fiscal year. The decrease in net interest expense was primarily a result
of lower average outstanding borrowings at modestly lower interest rates.
Other expense amounted to $10,000 in the current quarter as compared to
other income of $180,000 in the comparable quarter in the prior fiscal year.
The other income in the prior fiscal year quarter resulted primarily from the
realized gains on the sale of certain investments.
The effective income tax rate was 35.9% of income before provision for
income taxes for the quarter ended December 31, 1996 as compared to 32.9% for
the comparable quarter in the prior fiscal year. The higher effective income
tax rate was the result of higher foreign tax credits available in the prior
fiscal year quarter.
As a result of the foregoing, net income amounted to $717,000, or
approximately $.18 per common and common equivalent share, for the three
months ended December 31, 1996 compared to net income of $98,000, or
approximately $.03 per common and common equivalent share, for the comparable
period in the prior fiscal year.
- 6 -
<PAGE>
AMERICAN TECHNICAL CERAMICS CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS, continued
- --------------------------------
Six Months Ended December 31, 1996
Compared with Six Months Ended December 31, 1995
- ------------------------------------------------
Net sales for the six months ended December 31, 1996 increased 8% to
$16,926,000 as compared to net sales of $15,613,000 for the comparable period
in the prior fiscal year. The increased sales were a result of higher sales of
all of the Registrant's products, with the most significant increases being in
sales of certain higher margin products and thin film products.
Gross margin for the six months ended December 31, 1996 was 34.3% of net
sales as compared to 30.5% for the comparable period in the prior fiscal year.
The higher gross margin for the current period was primarily the result of
improved production process performance and yields and the effects of various
cost reduction efforts undertaken in August 1996. Additionally, the Registrant
has made progress in resolving process difficulties associated with its
production of larger lower volume products.
Total operating expenses for the six months ended December 31, 1996
decreased less than 1% to $4,074,000 as compared to $4,092,000 in the
comparable period in the prior fiscal year. The slight decrease in operating
expenses is a result of recent cost control efforts offset in part by higher
bonus accruals as a result of higher pretax profits.
Net interest expense amounted to $95,000 in the current period as
compared to net interest expense of $100,000 in the comparable period in the
prior fiscal year period. The decrease in net interest expense was primarily a
result of lower average outstanding borrowings at modestly lower interest
rates and higher average balances of interest-earning cash and investments.
Other expense amounted to $4,000 for the six months ended December 31,
1996 as compared to other income of $321,000 in the comparable period in the
prior fiscal year. The other income in the prior fiscal year period resulted
primarily from realized gains on the sale of certain investments.
- 7 -
<PAGE>
AMERICAN TECHNICAL CERAMICS CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS, continued
- --------------------------------
The effective income tax rate was 35.8% of income before provision for
income taxes for the six months ended December 31, 1996 as compared to 31.8%
for the comparable period in the prior fiscal year. The higher effective
income tax rate was the result of higher foreign tax credits available in the
prior fiscal year period.
As a result of the foregoing, net income amounted to $1,052,000, or
approximately $.27 per common and common equivalent share, for the six months
ended December 31, 1996 compared to net income of $604,000, or approximately
$.16 per common and common equivalent share, for the comparable period in the
prior fiscal year.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
The Registrant's financial position at December 31, 1996 remains strong
as evidenced by working capital of $14,494,000 and stockholders' equity of
$24,347,000. The Registrant's current ratio at December 31, 1996 was 4.3:1 as
compared to a current ratio of 3.7:1 at June 30, 1996. The Registrant's quick
ratio at December 31, 1996 was 2.3:1 as compared to a quick ratio of 2.0:1 at
June 30, 1996.
Cash and investments increased by $1,087,000 to $4,635,000 at December
31, 1996 from $3,548,000 at June 30, 1996. Accounts receivable decreased by
$782,000 to $4,131,000 at December 31, 1996 from $4,913,000 at June 30, 1996.
The decrease in accounts receivable is attributable to somewhat lower sales
during the holiday season. Inventories increased by $51,000 to $8,809,000 at
December 31, 1996 from $8,758,000 at June 30, 1996. Accounts payable and
accrued expenses decreased by $320,000 to $3,023,000 at December 31, 1996 from
$3,343,000 at June 30, 1996. The decrease in accounts payable is attributable
to lower total purchases of capital equipment and for other operating purposes
in the months prior to December 31, 1996 as compared to the months preceding
June 30, 1996. The decrease in accrued expenses reflects primarily the payment
of pretax profit bonuses in September 1996. Income taxes paid in the six month
period ended December 31, 1996 were $863,000.
- 8 -
<PAGE>
AMERICAN TECHNICAL CERAMICS CORP. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES, continued
- ------------------------------------------
Capital expenditures for the six months ended December 31, 1996 totaled
$766,000 of which $692,000 was for machinery and equipment. In September 1996,
the Registrant entered into a $2,000,000 revolving line-of-credit with Barnett
Bank of Jacksonville, N.A. ("Barnett"). The line-of-credit is subject to
certain fees on the unused portion while the outstanding balance bears
interest at a rate equal to Barnett's prime rate minus one-half percent
(1/2%). Borrowings under the line-of-credit is subject to, among other things,
continued compliance with certain financial covenants, including maintenance
of asset and liability percentage ratios. There is currently no balance
outstanding under this line-of-credit. The Registrant intends to use cash on
hand and funds generated from operations to finance budgeted capital
expenditures of approximately $2.0 million in fiscal year 1997, primarily for
replacement of machinery and equipment and to meet other operating
requirements.
In June 1990, the Registrant announced a stock purchase program pursuant
to which it is authorized to purchase up to $1,000,000 of its Common Stock. As
of December 31, 1996, the Registrant has expended approximately $780,000 to
purchase an aggregate of 305,900 shares under this program.
PART II - OTHER INFORMATION
ITEMS 1. THROUGH 3. Not Applicable
ITEM 4. Submission of Matters to a Vote of Security Holders
Effective at the Annual Meeting of Stockholders of the Registrant held on
December 6, 1996, the number of directors constituting the entire board of
directors was decreased from six to five. Dr. James Biggers did not stand for
reelection. The following individuals, each of whom was elected as a director
of the Registrant at the last Annual Meeting of Stockholders, were reelected
as directors:
Victor Insetta
Rubin Blumkin
O. Julian Garrard III
Stuart P. Litt
Chester E. Spence
- 9 -
<PAGE>
ITEM 5. Not Applicable
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
3(a)(i) - Certificate of Incorporation of the Registrant. (1)
3(a)(ii) - Amendment to Certificate of Incorporation. (6)
3(b)(i) - By-laws of the Registrant. (1)
9(a)(i) - Restated Shareholders' Agreement, dated April 15, 1985, among
Victor Insetta, Joseph Mezey, Joseph Colandrea and the
Registrant. (1)
10(b)(i) - Lease Agreement between Victor Insetta and the Registrant for
premises at 15 Stepar Place, Huntington Station, N.Y. (1)
10(b)(ii) - Amendment to Lease Agreement, dated May 8, 1984, but effective
as of July 14, 1981, between Victor Insetta, d/b/a Stepar
Leasing Company, and the Registrant. (1)
10(b)(iii)- Amendment to Lease Agreement, dated June 15, 1987, but
effective as of May 1, 1987, between Victor Insetta, d/b/a
Stepar Leasing Company, and the Registrant. (2)
10(b)(iv) - Amendment to Lease Agreement, dated February 9, 1989, between
Victor Insetta, d/b/a Stepar Leasing Company, and the
Registrant. (3)
10(c)(i) - 1985 Employee Stock Sale Agreement between the Registrant and
various employees. (1)
10(c)(ii) - Form of Employee Stock Bonus Agreement, dated as of July 1,
1993, between the Registrant and various employees. (5)
10(c)(iii)- Form of Employee Stock Bonus Agreement, dated as of
April 19, 1994, between the Registrant and various
employees. (5)
10(c)(iv) - Form of Employee Stock Bonus Agreement, dated as of April 20,
1995, between the Registrant and various employees. (6)
10(e)(i) - Lease, effective as of October 1, 1980, between VPI Properties
Associates, d/b/a VPI Properties Associates, Ltd. and American
Technical Ceramics (Florida), Inc. (1)
10(e)(ii) - Amendment entered into on June 20, 1984 to Lease, effective
as of October 1, 1980, between VPI Properties Associates,
d/b/a VPI Properties Associates, Ltd. and American Technical
Ceramics (Florida), Inc. (1)
10(f) - Purchase Agreement, dated May 31, 1989, by and among Diane
LaFond Insetta and/or Victor D. Insetta, as custodians
for Danielle and Jonathan Insetta, and American Technical
Ceramics Corp., and amendment thereto, dated July 31, 1989.
(3)
10(g)(i) - Incentive Stock Option Plan of the Registrant. (1)
10(g)(ii) - Stock Appreciation Rights Plan of the Registrant. (1)
10(g)(iii)- Profit Bonus Plan, dated April 19, 1995, and effective for the
fiscal years beginning July 1, 1994. (6)
10(g)(iv) - Employment Agreement, dated April 3, 1985, between Victor
Insetta and the Registrant, as amended. (4)
- 10 -
<PAGE>
10(h) - Loan Agreement, dated September 27, 1994, between the
Registrant and Barnett Bank of Jacksonville, N.A. (5)
10(i) - Secured Commercial Note, dated as of February 17, 1995,
between the Registrant and European American Bank. (6)
10(j) - Secured Commercial Note, dated as of February 17, 1995,
between the Registrant and European American Bank. (6)
10(k) - Letters of Agreement, dated June 26, 1996 and August 22, 1996
between the Registrant and Stuart P. Litt. (7)
10(l) - Loan Agreement, dated September 25, 1996, between the
Registrant and Barnett Bank, N.A.
27 - Financial Data Schedule
- ------------------
1. Incorporated by reference to the Registrant's Registration Statement
on Form S-18.
2. Incorporated by reference to the Registrant's Annual Report on Form
10-K for the fiscal year ended June 30, 1987.
3. Incorporated by reference to the Registrant's Annual Report on Form
10-K for the fiscal year ended June 30, 1989.
4. Incorporated by reference to the Registrant's Annual Report on Form
10-K for the fiscal year ended June 30, 1993.
5. Incorporated by reference to the Registrant's Annual Report on Form
10-KSB for the fiscal year ended June 30, 1994.
6. Incorporated by reference to the Registrant's Annual Report on Form
10-KSB for the fiscal year ended June 30, 1995.
7. Incorporated by reference to the Registrant's Annual Report on Form
10-KSB for the fiscal year ended June 30, 1996.
(b) Reports on Form 8-K:
No reports on Form 8-K were filed by the Registrant during
the quarter ended December 31, 1996.
- 11 -
<PAGE>
AMERICAN TECHNICAL CERAMICS CORP. AND SUBSIDIARIES
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.
AMERICAN TECHNICAL CERAMICS CORP.
(Registrant)
DATE: January 31, 1997 BY: /s/ VICTOR INSETTA
------------------
Victor Insetta
President
(Chief Executive Officer)
DATE: January 31, 1997 BY: /s/ JAMES CONDON
----------------
James Condon
Controller
(Principal Financial Officer)
- 12 -
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 3,256
<SECURITIES> 1,379
<RECEIVABLES> 4,131<F1>
<ALLOWANCES> 0
<INVENTORY> 8,809
<CURRENT-ASSETS> 18,950
<PP&E> 29,989
<DEPRECIATION> 15,973
<TOTAL-ASSETS> 33,294
<CURRENT-LIABILITIES> 4,456
<BONDS> 3,211
0
0
<COMMON> 41
<OTHER-SE> 24,897
<TOTAL-LIABILITY-AND-EQUITY> 33,294
<SALES> 16,926
<TOTAL-REVENUES> 16,926
<CGS> 11,114
<TOTAL-COSTS> 15,188
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 199
<INCOME-PRETAX> 1,639
<INCOME-TAX> 587
<INCOME-CONTINUING> 1,052
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,052
<EPS-PRIMARY> 0.27
<EPS-DILUTED> 0.27
<FN>
<F1>note: receivables shown net of allowance of 345
</FN>
</TABLE>
