UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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 March 29, 1998
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: 0-26126
-------
SEROLOGICALS CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Delaware 58-2142225
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
780 Park North Blvd.
Suite 110
Clarkston, Georgia 30021
(Address of principal (Zip Code)
executive offices)
(404) 296-5595
(Registrant's 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
--- ---
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date:
Class Outstanding at May 8, 1998
Common Stock, $.01 par value per share 15,864,254
INDEX
SEROLOGICALS CORPORATION AND SUBSIDIARIES
PART I.
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets -
December 28, 1997 and March 29, 1998. . . . . . . . . . . . . . 3
Condensed Consolidated Statements of Income -
For the quarters ended March 30, 1997 and March 29, 1998. . . . 4
Condensed Consolidated Statements of Cash Flows -
For the quarters ended March 30, 1997 and March 29, 1998. . . . 5
Notes to Condensed Consolidated Financial Statements . . . . . . .6-8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . . . . . . . 9-12
PART II.
Item 6. Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . 13
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Page 2
PART I.
Item 1. Financial Statements
SEROLOGICALS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 28, March 29,
1997 1998
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $31,812 $25,335
Trade accounts receivable, net 9,991 16,814
Inventories 10,154 9,675
Other current assets 865 3,345
-------- --------
Total current assets 52,822 55,169
-------- --------
PROPERTY AND EQUIPMENT, net 13,682 14,315
-------- --------
OTHER ASSETS:
Goodwill, net 51,006 51,148
Other, net 5,982 6,011
-------- --------
Total other assets 56,988 57,159
-------- --------
$123,492 $126,643
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt and
capital lease obligations $2,352 $2,353
Accounts payable 3,654 2,410
Accrued liabilities 8,493 9,624
Deferred revenue 898 111
-------- --------
Total current liabilities 15,397 14,498
-------- --------
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS,
less current maturities 4,446 3,090
-------- --------
OTHER LIABILITIES 364 105
-------- --------
STOCKHOLDERS' EQUITY:
Common stock 157 158
Additional paid-in capital 75,536 77,493
Retained earnings 27,370 31,199
Accumulated other comprehensive income 222 100
-------- --------
Total stockholders' equity 103,285 108,950
-------- --------
$123,492 $126,643
======== ========
The accompanying notes are an integral part of these condensed consolidated
balance sheets.
Page 3
SEROLOGICALS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share amounts)
(Unaudited)
Quarter Ended
-------------
March 30, March 29,
1997 1998
-------- --------
Net sales $19,903 $29,434
Costs and expenses:
Cost of sales 12,078 19,139
Selling, general and administrative expenses 2,940 3,507
Product development expenses 555 334
Other expense, net 481 686
Interest income, net (159) (273)
------ ------
Income before income taxes 4,008 6,041
Provision for income taxes 1,482 2,212
------ ------
Net income $2,526 $3,829
====== ======
Net income per common share
Basic $0.18 $0.24
====== ======
Diluted $0.17 $0.23
====== ======
Weighted average shares
Basic 14,125,963 15,725,503
========== ==========
Diluted 15,081,047 17,110,728
========== ==========
The accompanying notes are an integral part of these condensed consolidated
financial statements.
Page 4
SEROLOGICALS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Quarter Ended
March 30, March 29,
1997 1998
-------- --------
Operating activities:
Net income $2,526 $3,829
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization 1,033 1,233
Deferred income tax provision (benefit) 77 (263)
Changes in operating assets and liabilities,
net of acquisitions of businesses
Trade accounts receivable, net (1,906) (6,397)
Inventories (1,040) 455
Other current assets 326 (216)
Accounts payable (476) (1,224)
Accrued expenses 527 1,780
Deferred revenue 116 (786)
------- -------
Total adjustments (1,343) (5,418)
------- -------
Net cash provided by (used in)
operating activities 1,183 (1,589)
------- -------
Investing activities:
Purchases of property and equipment (506) (1,338)
Acquisitions of businesses, net of cash acquired (10,282) (1,444)
Other (15) (2,398)
------- -------
Net cash used in investing activities (10,803) (5,180)
------- -------
Financing activities:
Payments on long-term debt and capital
lease obligations (13) (22)
Proceeds from employee stock plans 33 314
------- -------
Net cash provided by financing activities 20 292
------- -------
Net decrease in cash and cash equivalents (9,600) (6,477)
Cash and cash equivalents, beginning of period 21,232 31,812
------- -------
Cash and cash equivalents, end of period $11,632 $25,335
======= ========
Supplemental Disclosures:
Interest Paid $76 $68
Taxes Paid $1,080 $674
The accompanying notes are an integral part of these condensed consolidated
financial statements.
Page 5
SEROLOGICALS CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 29, 1998
(UNAUDITED)
1. ORGANIZATION AND BASIS OF PRESENTATION
Organization
Serologicals Corporation (the "Company") is a leading worldwide provider
of specialty human antibody-based products and services to major healthcare
companies. The Company's services, including donor recruitment, donor
management and clinical testing services, enable the Company to provide value-
added, antibody-based products that are used as the active ingredients in
therapeutic and diagnostic pharmaceutical products. As of May 8, 1998, the
Company operated 64 sites, 16 of which are donor centers specializing in the
collection of specialty antibodies, 47 of which are donor centers which
primarily collect IVIG antibodies from which a number of products are produced
and one of which is a clinical trial site dedicated to the management and
performance of clinical trials for the pharmaceutical industry. The Company
is also engaged in the development, manufacturing and sale of monoclonal
antibodies at its facilities in the United Kingdom.
Basis of Presentation
The accompanying unaudited condensed consolidated financial statements
include the accounts of the Company and its subsidiaries. All significant
intercompany accounts and transactions have been eliminated in consolidation.
The accompanying statements have been prepared in accordance with generally
accepted accounting principles for interim financial information and the
instructions to Form 10-Q. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, the
accompanying unaudited condensed consolidated financial statements reflect
all adjustments, which are of a normal recurring nature, to present fairly
the Company's financial position, results of operations and cash flows at
the dates and for the periods presented. Interim results of operations are
not necessarily indicative of results to be expected for a 12-month period.
The interim financial statements should be read in conjunction with the
audited consolidated financial statements as of December 28, 1997 and the
notes thereto included in the Company's Annual Report on Form 10-K for the
year ended December 28, 1997.
Earnings Per Share
As of December 28, 1997, the Company adopted Statement of Financial
Accounting Standards ("SFAS") No. 128, "Earnings per Share" ("SFAS No. 128"),
which requires a dual presentation of basic earnings per share and diluted
earnings per share on the face of the consolidated statements of income. As
a result, earnings per share for the quarter ended March 30, 1997 has been
restated to comply with the provisions of SFAS No. 128. SFAS No. 128 replaces
the traditional presentations of primary earnings per share and fully diluted
earnings per share with basic earnings per share and diluted earnings per
share,respectively. Basic earnings per share excludes the dilutive effect of
stock options, warrants, convertible indebtedness and similar instruments while
diluted earnings per share is computed similarly to fully diluted earnings
per share. The impact of adopting SFAS No. 128 was an increase to basic
earnings per share of $0.01 over the previously reported primary earnings
per share for the quarter ended March 30, 1997. Reported diluted earnings
per share is the same as the Company's previously reported primary earnings
per share.
Page 6
The following table sets forth a reconciliation of basic earnings per
share to diluted earnings per share (in thousands, except earnings per share
("EPS") amounts):
1997 1998
-------------------------- -------------------------
Income Shares EPS Income Shares EPS
-------------------------- -------------------------
Basic EPS $2,526 14,126 $ 0.18 $3,829 15,726 $ 0.24
Dilutives:
Stock options/ warrants -- 901 -- 1,052
Convertible notes 42 54 45 333
------------------------- -------------------------
Diluted EPS $2,568 15,081 $ 0.17 $3,874 17,111 $ 0.23
========================= =========================
Revenue Recognition and Deferred Revenue
The Company records revenue when title and the full risk of ownership
are transferred to the customer, which generally occurs when products are
shipped. On occasion and at the request of its customers, the Company may
enter into "bill and hold" arrangements whereby the earnings process is
complete but the customer has elected to not take physical delivery of the
product due to storage or other constraints. Such transactions are generally
recognized as revenue when the arrangement is at the request of the customer,
is represented by a fixed, written commitment and includes a fixed schedule
for the delivery of the product, among other criteria. Furthermore, the
Company may also receive advance payments from customers for future delivery of
products that do not meet the criteria of "bill and hold" sales. The revenue
related to these advance payments is deferred and generally recognized when the
products are shipped.
Comprehensive Income
As of December 29, 1997, the Company adopted SFAS No. 130, "Reporting
Comprehensive Income" ("SFAS No. 130"). SFAS No. 130 establishes new rules for
the reporting of "comprehensive income", which is the total of net income and
all other non-owner changes in stockholders' equity. During the first quarter
of 1997 and 1998, total comprehensive income amounted to $2,437,000 and
$3,707,000, respectively, which, in addition to net income, includes
unrealized gains and losses on available-for-sale securities and foreign
currency translation adjustments. The adoption of SFAS No. 130 had no effect on
the Company's net income. Prior year amounts have been reclassified to conform
to the requirements of SFAS No. 130.
2. ACQUISITIONS
On March 27, 1998, the Company acquired substantially all of the assets
of Therapeutics, Inc., which operated a site in New Jersey engaged in the
performance of clinical trials for pharmaceutical companies. Subsequent to
quarter-end, on March 30, 1998, the Company acquired substantially all of
the assets of Allied Plasma Products, Inc., which operated four non-specialty
donor centers in Ohio and Indiana. Both of these acquisitions were accounted
for as purchases in accordance with APB No. 16, and accordingly, the purchase
prices have been preliminarily allocated to the net tangible and identifiable
intangible assets acquired based on their estimated fair values as of the
acquisition dates. The excess of the cost over the estimated fair values of
the net tangible and identifiable intangible assets acquired has been
preliminarily allocated to goodwill.
Page 7
3. LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS
Long-term debt and capital lease obligations at December 28, 1997 and
March 29, 1998 consisted of the following (in thousands):
December 28, March 29,
1997 1998
----------- ---------
$4.0 million convertible subordinated note
payable, interest at 4.5% payable quarterly
commencing July 1, 1997; maturing on
March 7, 2002 $4,000 $2,667
$2.55 million convertible subordinated note
payable, interest payable quarterly at 4.0%;
principal payable on September 23, 2000 2,550 2,550
Capital lease obligations at varying interest
rates and terms, maturing through 2001 141 126
Other notes at varying interest rates and terms
maturing through December 1998 107 100
------ ------
6,798 5,443
Less current maturities 2,352 2,353
------ ------
$4,446 $3,090
====== ======
During the first quarter of 1998 and pursuant to the terms of the related
note agreement, the holder of a convertible promissory note in the original
principal amount of $4.0 million opted to convert $1.33 million principal
amount of the note into approximately 71,000 shares of the Company's common
stock.
4. RECENT ACCOUNTING PRONOUNCEMENTS
In July 1997, the FASB issued Statement of Financial Accounting Standards
No. 131, "Disclosures About Segments of an Enterprise and Related Information"
("SFAS No. 131"). SFAS No. 131, which supersedes SFAS Nos. 14, 18, 24 and 30,
establishes new standards for segment reporting, using the "management
approach," in which reportable segments are based on the same criteria on which
management disaggregates a business for making operating decisions and
assessing performance. The Company is in the process of evaluating SFAS No. 131
and its impact and will adopt the standard for its full 1998 fiscal year.
5. SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES
The following non-cash investing and financing transactions were entered into
during the quarters ended March 30, 1997 and March 29, 1998 (in thousands):
Quarter Ended
-----------------------
March 30, March 29,
1997 1998
--------- ---------
Issuance of promissory note as acquisition
Consideration $4,000 --
Conversion of promissory note into common
Stock -- $1,333
Page 8
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Forward Looking Statements
This Quarterly Report on Form 10-Q contains certain "forward looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995, which generally can be identified by the use of terms such as
"may," "expect," "anticipate," "intend," "estimate," "believe," "continue"
or similar variations or the negative thereof. These forward looking
statements include, without limitation, statements regarding the impact to
the Company and its customers, and the duration of such impact, of changing
regulatory and industry standards, including the impact of the delay in the
validation of a customer's laboratory testing facility; the level of capital
expenditures during 1998; and the sufficiency of capital and liquidity to
fund operations, capital expenditures and the Company's acquisition strategy.
These forward looking statements are subject to certain risks and
uncertainties, such as changes in the economy or market conditions, changes
in government policy or regulations and other factors discussed in Part I of
the Company's Annual Report on Form 10-K for the year ended December 28, 1997,
which could cause actual results to differ materially.
Recent Developments
Increasing regulatory scrutiny continues to be a significant factor
shaping the industry, resulting in more detailed and frequent FDA inspections
of the Company's and its customers' operations, a potentially greater number
of observations, deficiency notices and warning letters per inspection, and
more product recalls and temporary or permanent closures of facilities. One
factor contributing to this trend is the FDA's implementation of a new approach
to inspections of donor centers and manufacturing facilities, including the
Company's customers', entitled "Team Biologics". Under this new approach,
substantially all such inspections are performed by highly trained field
investigators who focus more extensively on the FDA's current good
manufacturing practices (cGMP) and the Quality Assurance guidelines
adopted by the FDA in This approach was first applied to the plasma
fractionation industry and subsequently to other biologic product areas,
including the Company's operations. Several large fractionators, including
certain of the Company's customers, have been affected in varying degrees,
from complete shutdowns of manufacturing facilities to operating under a
consent decree to bring their facilities into compliance. Furthermore,
certain manufacturers are currently experiencing a longer than anticipated
FDA approval process of new, relocated or expanded manufacturing and testing
facilities. Specifically, the Company's largest customer has experienced
significant delays in the validation, or approval, of its relocated laboratory
testing facility. To mitigate the impact of this delay, the Company has in
certain instances been able to transfer the mandatory viral marker testing
to its own, recently expanded, laboratory, but in certain instances has been
required to arrange testing services from other qualified third party sources.
The Company believes that any adverse impact it has experienced or may
continue to experience as a result of the factors described above, including
decreased production of IVIG antibodies and delayed or reduced shipments
thereof, will be short-term in nature. However, there can be no assurance
that any future impact related to these factors will not have a material
adverse effect on the Company or its operations.
Results of Operations
The following discussion and analysis of the Company's financial
condition and results of operations should be read in conjunction with
the Condensed Consolidated Financial Statements and Notes thereto.
Page 9
The following table sets forth certain operating data of the Company as a
percentage of net sales for the quarters indicated below:
Quarter Ended
--------------------
March 30, March 29,
1997 1998
-------- --------
Net sales 100.0% 100.0%
Gross profit 39.3 35.0
Selling, general and administrative expenses 14.8 11.9
Product development 2.8 1.1
Net income 12.7 13.0
Quarters Ended March 30, 1997 and March 29, 1998
Net sales increased 47.9%, or $9.5 million, from $19.9 in 1997 to $29.4
million in 1998. Of the increase, approximately $5.2 million related to the
full-quarter effect of acquisitions completed during 1997. The remainder of
the increase, or approximately $4.3 million, resulted from increased sales
of specialty antibodies, most significantly anti-D, and, to a lesser extent,
antibodies for hepatitis and respiratory syncytial virus (RSV), offset in part
by a decrease in sales of non-specialty IVIG antibodies at donor centers
owned during both full quarters. The increase in sales of anti-D antibodies
was due primarily to increased production and to a lesser extent, price
increases, and also included a carryover of certain shipments from the fourth
quarter of 1997. The decrease in sales of IVIG antibodies was primarily a
result of reduced production associated with the delays a major customer is
experiencing in validating and obtaining FDA approval of its relocated
laboratory testing facility.
During the first quarter of 1998, therapeutic and diagnostic antibodies
represented approximately 83% and 17% of net sales, respectively, versus 79%
and 21%, respectively, in the first quarter of 1997.
Gross profit increased 31.6%, or $2.5 million, from $7.8 million in the
first quarter of 1997 to $10.3 million during 1998. The majority of the
increase, or approximately $1.6 million, was primarily attributable to
additional sales of anti-D antibodies, offset in part by lower margins on
non-specialty, IVIG antibodies. The remainder of the increase, or
approximately $870,000, related to acquisitions completed during 1997.
Gross profit as a percentage of net sales ("gross margin") decreased from
39.3% in 1997 to 35.0% in 1998, primarily as a result of nonrecurring
expenses incurred in training donor center and other personnel on new
customer and laboratory protocols and the resulting underabsorption of
fixed overhead costs due to lower production volume during such time.
This expense was incurred primarily as a result of transitioning certain
donor centers to new customers or new laboratory testing facilities,
including the Company's, primarily as a result of the continued delay
in the validation of a major customer's laboratory. Gross margins were
also affected by a decrease in relatively higher margin diagnostic antibodies
as a percentage of total net sales.
Selling, general and administrative expenses increased 19.3%, or
$567,000, from $2.9 million in the first quarter of 1997 to $3.5 million
in 1998. The increase was primarily attributable to a larger regulatory,
information systems and general corporate infrastructure needed to support
the Company's acquisitions and internal growth. However, selling, general
and administrative expenses, as a percentage of net sales, decreased from
14.8% to 11.9% as the Company continued to effectively leverage its
corporate infrastructure relative to increased production and the
acquisitions completed during 1997.
Product development expenses decreased $221,000, or 39.8%, from
$555,000 in 1997 to $334,000 in 1998, due primarily to a reduction in
expenditures relating to the development of a therapeutic monoclonal
anti-D product, offset by certain expenditures incurred in the Company's
Page 10
development of clinical trial site management services. As a result,
product development expenses as a percentage of net sales decreased from
2.8% in 1997 to 1.1%
in 1998.
Other expense, which consists primarily of amortization expense,
increased $205,000, or 42.6%, from $481,000 in 1997 to $686,000 in 1998,
substantially all due to the amortization of goodwill and other intangible
assets resulting from acquisitions completed during 1997.
Interest income, net increased 71.7%, or $114,000, from $159,000 in
1997 to $273,000 in 1998, due primarily to higher cash balances and lower
debt outstanding in the first quarter of 1998 versus the comparable period
a year earlier.
Liquidity and Capital Resources
The following table sets forth certain indicators of financial
condition and liquidity of the Company as of December 28, 1997 and
March 29, 1998:
December 28, March 29,
1997 1998
----------- ---------
Cash and cash equivalents $31,812 $25,335
Working capital 37,425 40,671
Total long-term debt and capital lease
Obligations 6,798 5,443
Stockholders' equity 103,285 108,950
Total debt to equity ratio 6.6% 5.0%
The Company has three principal sources of near-term liquidity:
(i) existing cash and cash equivalents; (ii) cash generated by operations,
and (iii) borrowing capacity under the Revolver (as defined below). Management
believes the Company's liquidity and capital resources are sufficient to meet
its working capital, capital expenditure and other anticipated cash
requirements over the next twelve months and will be available for use in
its acquisition strategy. However, the Company anticipates that future
acquisition and growth opportunities may require supplementary funding,
including the issuance of equity or debt securities.
Net cash used in operating activities in 1998 was $1.6 million as
compared to net cash provided by operating activities of $1.2 million
in the prior year, or a decrease of $2.8 million. This decrease was
primarily attributable to an increased investment in working capital of
approximately $3.9 million over the prior year and an increased deferred
tax benefit of $340,000 offset by increased net income of $1.3 million and
$200,000 of additional non-cash depreciation and amortization expense.
The increased investment in working capital was in large part due to a
larger increase in accounts receivable of $4.5 million, resulting from
both increased sales volume and the timing of sales, a significant amount
of which occurred in the last month of the quarter, as well as the timing
of the receipt of payments from large customers. Days revenue in accounts
receivable did not increase materially at March 29, 1998 as compared to
March 30, 1997.
Net cash used in investing activities during the first quarter of 1998
was $5.2 million as compared to $10.8 in 1997. Investing activities in 1997
primarily consisted of the acquisition of Nations Biologics, Inc. and its
affiliates and capital expenditures. Investing activities in 1998 consisted
primarily of the acquisition of Therapeutics, Inc. and capital expenditures.
Capital expenditures relate primarily to the Company's facilities,
related equipment and information systems. The level of capital expenditures
is expected to increase during the remainder of 1998 as the Company continues
the expansion and upgrading of its information systems. The Company expects
that capital expenditures for the remainder of the year will be financed
primarily with cash on hand and cash provided by operations.
The Company had no significant cash financing activities during the
first quarter of 1998 or 1997.
Page 11
Total long-term debt and capital lease obligations were $5.4 million at
March 29, 1998, a decrease of approximately $1.4 million from December 28,
1997. This decrease was primarily due to the conversion of a $1.3 million
principal portion of a $4.0 million promissory note into the Company's common
stock.
The Company has a revolving credit facility with a bank (the "Revolver"),
which provides for total borrowing capacity of $35 million, $30 million of
which may be used for acquisitions. There were no amounts outstanding under
the Revolver at March 29, 1998.
Page 12
PART II.
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits:
Exhibit 27: Financial Data Schedule
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.
SEROLOGICALS CORPORATION
(Registrant)
Date: May 13, 1998 By: /s/ Russell H. Plumb//
----------------------
Russell H. Plumb
Vice President/Chief Financial
Officer (Principal Financial and
Accounting Officer)
Page 13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary information extracted from the consolidated
financial statements of Serologicals Corporation for the quarter ended March 29,
1998, as set forth in its Form 10-Q for such quarter and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-27-1998
<PERIOD-START> DEC-29-1997
<PERIOD-END> MAR-29-1998
<CASH> $ 25,335
<SECURITIES> 0
<RECEIVABLES> 16,814
<ALLOWANCES> 0
<INVENTORY> 9,675
<CURRENT-ASSETS> 55,169
<PP&E> 14,315
<DEPRECIATION> 0
<TOTAL-ASSETS> $126,643
<CURRENT-LIABILITIES> 14,498
<BONDS> 0
0
0
<COMMON> 158
<OTHER-SE> 108,692
<TOTAL-LIABILITY-AND-EQUITY> $126,643
<SALES> $29,434
<TOTAL-REVENUES> 29,434
<CGS> 19,139
<TOTAL-COSTS> 19,139
<OTHER-EXPENSES> 4,527
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (273)
<INCOME-PRETAX> 6,041
<INCOME-TAX> 2,212
<INCOME-CONTINUING> $3,829
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> $3,829
<EPS-PRIMARY> $0.24
<EPS-DILUTED> $0.23
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