- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 10 - Q/A
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
for the quarterly period ended March 31, 1996 or
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934.
Commission File Number 0-19084
SIERRA SEMICONDUCTOR
CORPORATION
(Exact name of registrant as specified in its charter)
A California Corporation - I.R.S. NO. 94-2925073
2075 NORTH CAPITOL AVENUE
SAN JOSE, CALIFORNIA 95132
Telephone (408) 263-9300
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 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
----------- ----------
Common shares outstanding at March 31, 1996 - 26,963,897
(after giving effect to two-for-one stock split effected on October 5, 1995)
- --------------------------------------------------------------------------------
1
<PAGE>
INDEX
Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
- Consolidated condensed balance sheets 3
- Consolidated condensed statements of income 4
- Consolidated condensed statements of cash flows 5
- Notes to consolidated condensed financial statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8 - K 14
2
<PAGE>
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements
SIERRA SEMICONDUCTOR CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
March 31, December 31,
1996 1995
---------- ------------
ASSETS:
Current assets:
Cash and cash equivalents $ 27,568 $ 41,933
Short-term investments 4,038 4,004
Accounts receivable, net 42,569 39,320
Inventories 22,846 14,843
Prepaid expenses and other current assets 2,583 9,813
--------- ---------
Total current assets 99,604 109,913
Property and equipment, at cost 51,373 49,375
Accumulated depreciation and amortization (28,723) (26,671)
--------- ---------
22,650 22,704
Goodwill and other intangible assets, net 13,461 13,856
Investments and other assets 8,127 5,147
Deposits for wafer fabrication capacity 42,240 33,240
--------- ---------
$ 186,082 $ 184,860
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 25,931 $ 22,866
Accrued liabilities 11,071 8,494
Accrued income tax 7,904 7,737
Short-term debt and current portion of
oblications under capital leases and
long-term debt 19,039 33,979
Net liabilities of discontinued operations 5,100 4,096
--------- ---------
Total current liabilities 69,045 77,172
Deferred income taxes 2,147 2,179
Noncurrent obligations under capital leases
and long term debt 9,020 8,979
Special shares of PMC convertible into Sierra
common stock 14,295 15,530
Shareholders' equity:
Common stock, no par value 121,476 119,758
Accumulated deficit (29,900) (38,726)
--------- ---------
91,576 81,032
Less shareholders' notes receivable (1) (32)
--------- ---------
Total shareholders' equity 91,575 81,000
--------- ---------
$ 186,082 $ 184,860
========= =========
See notes to consolidated condensed financial statements.
3
<PAGE>
SIERRA SEMICONDUCTOR CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In thousands, except for per share amounts)
Three Months Ended
March 31, March 31,
1996 1995
--------- ------------
Net revenues $ 64,396 $ 36,939
Cost of revenues 34,107 18,849
-------- --------
Gross profit 30,289 18,090
Other costs and expenses:
Research and development 8,406 5,372
Marketing, general and administrative 8,665 6,993
-------- --------
Income from operations 13,218 5,725
Interest income (expense), net 360 43
-------- --------
Income before provision for income taxes 13,578 5,768
Provision for income taxes 4,752 1,364
-------- --------
Net income from continuing operations 8,826 4,404
Loss from discontinued operatiosn - (304)
-------- --------
Net income $ 8,826 $ 4,100
======== ========
Net income per share $ 0.29 $ 0.15
======== ========
Shares used in calculation of net income per share 30,790 27,374
======== ========
See notes to consolidated condensed financial statements.
4
<PAGE>
SIERRA SEMICONDUCTOR CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
Increase (decrease) in cash and cash equivalents
(in thousands)
Three Months Ended
March 31, March 31,
1996 1995
-----------------------
Cash flows from operating activities:
Net income $ 8,826 $ 4,100
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 2,777 1,935
Changes in assets and liabilities
Accounts receivable (3,249) (1,041)
Inventories (8,003) (2,626)
Prepaid expenses and other (1,733) (468)
Accounts payable and accrued expenses 5,778 3,944
Net assets/liabilities associated with
discontinued operations 1,004 (1,057)
-------- --------
Net cash provided by operating activities 5,400 4,787
Cash flows from investing activities:
Proceeds from maturities of short-term investments 9,984 -
Purchases of short-term investments and fixed
income securities (10,018) -
Investments in other companies (3,000) -
Decrease in investments and other - 150
Additions to plant and equipment (1,454) (1,924)
-------- --------
Net cash (used in) investing activities (4,488) (1,774)
Cash flows from financing activities:
Proceeds from issuance of notes payable and
long-term debt 252 69
Proceeds from issuance of common stock 483 769
Proceeds from payments of notes receivable 31 21
Principal payments under capital lease obligations (378) (261)
Repayment of notes payable and long-term debt (15,665) (456)
-------- --------
Net cash provided by (used in) financing
activities (15,277) 142
-------- --------
Net increase (decrease) in cash and cash equivalents (14,365) 3,155
Cash and cash equivalents, beginning of the period 41,933 12,622
-------- --------
Cash and cash equivalents, end of the period $ 27,568 $ 15,777
======== ========
See notes to consolidated condensed financial statements.
5
<PAGE>
SIERRA SEMICONDUCTOR CORPORATION
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. The accompanying financials statements have been prepared pursuant to the
rules and regulations of the Securities and Exchange Commission and reflect all
adjustments which are, in the opinion of the management, necessary for a fair
presentation for the periods reported. Certain information and footnote
disclosures normally included in annual financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to those rules or regulations. The interim financial statements
are unaudited, but reflect all adjustments (consisting only of normal recurring
adjustments) which are, in the opinion of management, necessary to present a
fair statement of results for the interim periods presented.
These financial statements should be read in conjunction with the
financial statements and the notes thereto incorporated by reference in the
Company's Annual Report on Form 10-K for the year ended December 31, 1995.
The results of operations for the three months ended March 31, 1996 are
not necessarily indicative of results to be expected in future periods.
2. In the fourth quarter of 1995, the Company approved a plan to sell or
discontinue the operations of Prometheus Products, Inc. (Prometheus). The
Company purchased Prometheus in the third quarter of 1994, and has operated it
as a separate business unit. Accordingly, Prometheus is being treated for
reporting purposes as a discontinued operation, and the Company's statements of
continuing operations for fiscal 1994 and 1995 have been restated to remove
Prometheus' previously reported operating results.
The Company also recorded a charge in the quarter ended December 31,
1995 for the disposal of Prometheus of $17,906,000. This discontinued operations
charge includes the write-down of assets and the accrual of additional
liabilities of Prometheus, as well as a provision for estimated future losses
that may be incurred. Prometheus' operating results for the first quarter ended
March 31, 1996 have been recorded against this provision.
3. The components of inventories are as follows (in thousands):
March 31, Dec 31,
1996 1995
---- ----
Work-in-progress $ 6,885 $ 6,604
Finished goods 15,961 8,239
------- -------
$22,846 $14,843
======= =======
4. Net income (loss) per share is computed using the weighted average number
of common and dilutive common equivalent shares outstanding during the
period. Dilutive common equivalent shares consist of warrants and stock options
(using the treasury stock method). Fully diluted earnings per share have
not been presented because the amounts do not differ materially from primary
earnings per share. For purposes of computing net income per share, the shares
6
<PAGE>
reserved for issuance in exchange for the PMC Special Shares outstanding are
considered in the weighted average number of common shares outstanding.
5. The Company announced a two-for-one stock split of its Common Stock on
September 7, 1995. The distribution of the additional stock was October 5, 1995,
based on shareholders of record on September 21, 1995. All share and per share
amounts in these consolidated condensed financial statements have been adjusted
to reflect the stock split.
7
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
First Quarters of 1996 and 1995
Net Revenues
First First
Quarter Quarter
1996 Change 1995
---- ------ ----
Net revenues ($000,000) $64.4 74% $36.9
The increase in net revenues was due to significant growth in revenue of
PMC-Sierra, Inc. ("PMC") plus an increase in revenue from the communications
product groups, especially in the V.34 (28,800 bps) product. The Company
experienced a decrease in V.32 bis (14,400 bps) product unit shipments, and a
decrease in the multimedia product group.
Gross Profit
First First
Quarter Quarter
1996 Change 1995
---- ------ ----
Gross profit ($000,000) $30.3 67% $18.1
Percentage of net revenues 47% 49%
Gross profit increased as a result of increased revenues during this period.
Gross profit as a percentage of net revenues declined as a result of a
combination of changes in average selling prices of products, and reserves
established for products which are anticipated to being sold at lower ASPs
("Average Selling Prices") in the future. The Company may continue to experience
flat or declining gross profits as a percentage of net revenues in the future to
the extent that a decline in ASPs, particularly a decline in ASPs for modems
based on the V.32 bis standard is not offset by a reduction in production costs
or by sales of new products with higher gross margin. Such a decline may have a
material adverse effect on the Company's results of operations in the future.
Operating Expenses ($000,000)
First First
Quarter Quarter
1996 Change 1995
---- ------ ----
Research and development $8.4 56% $5.4
Percentage of net revenues 13% 15%
Marketing, general & administrative $8.7 24% $7.0
Percentage of net revenues 13% 19%
8
<PAGE>
Research and development expenses increased at the Company's PMC-Sierra, Inc.
("PMC") subsidiary as well as other product groups. As a percentage of sales,
research and development expenses declined due to the increase in sales
exceeding the growth in research and development spending. The Company expects
research and development spending to remain at present levels or slightly
increase in absolute dollars in the future.
Marketing, general and administrative expenses increased as a result of
increases in marketing, sales and administrative personnel at PMC as well as
other product groups. As a percentage of net revenues these expenses decreased
due to sales growth exceeding the growth in marketing, general and
administrative expenses. As a percentage of net revenues these expenses are
expected to remain at approximately the same level, or slightly increase in
absolute dollars in the future.
Interest Income (Expense), Net
First First
Quarter Quarter
1996 Change 1995
---- ------ ----
Interest income (expense) ($000,000) $0.36 737% $0.04
Percentage of net revenues 0.6% 0.1%
Interest income increased due to higher cash balances available to invest and
earn interest. Interest expense remained at approximately the same absolute
dollar level. Interest expense currently relates primarily to the Company's
financing arrangements for capital and, to a lesser extent, for working capital
financing.
Income taxes have been provided for at an estimated annual tax rate of
approximately 35% in 1996 vs. 24% in 1995. This increase results primarily from
net operating loss and credit carryforwards having been available in 1995, and
substantially all such tax benefits have now been utilized.
Factors Affecting Future Results
Fluctuation in Operating Results. The Company's quarterly and annual operating
results may vary due to a number of factors, including, among others, the timing
of new product introductions, decreased demand or average selling prices for
products, market acceptance of products, demand for products of the Company's
customers, the introduction of products or technologies by the Company's
competitors, competitive pressure on product pricing, the Company's and its
customers' inventory levels of the Company's products, product availability from
outside foundries, variations in manufacturing yields for the Company's
products, expenditures for new product and process development, the acquisition
of wafer fabrication capacity, and the acquisition of businesses, products or
technologies. At various times in the past, the Company's foundry suppliers have
experienced lower than anticipated yields that have adversely affected
production and, consequently, the Company's operating results. There can be no
assurance that the Company's existing or future foundry suppliers will not
9
<PAGE>
experience irregularities which could have an adverse effect on the Company's
operating results. The Company from time to time may order in advance of
anticipated customer demand from its foundries in response to anticipated long
lead times to obtain inventory and materials, which might result in excess
inventory levels if expected orders fail to materialize or other factors render
the Company's product or its customer's products less marketable. The Company is
dependent on sales of graphics products to Apple Computer, which represented
less than 10% of net revenues in the first quarter of 1996, down from 17% in the
fourth quarter of 1995. Any delay or cancellation of existing orders, or any
decline in projected future orders, by the Company's customers could have a
material adverse effect on the Company's operating results. The Company's
operating results also are affected by the state and direction of the
electronics industry and the economy in the United States and other markets the
Company serves. The occurrence of any of the foregoing or other factors could
have a material adverse effect on the Company's operating results.
Historically, ASPs (average selling prices) in the semiconductor industry have
decreased over the life of a particular product. The willingness of prospective
customers to design the Company's products into their products depends to a
significant extent upon the ability of the Company to price its products at a
level that is cost effective for such customers. The markets for most of the
applications for the Company's products are characterized by intense price
competition. As the markets for the Company's modem products mature and
competition increases, the Company anticipates that ASPs on such products will
continue to decline, particularly as product technologies mature. ASPs on
existing products can decline dramatically when the PC industry transitions to
new product standards. If the Company is unable to reduce its costs sufficiently
to offset declines in ASPs or is unable to introduce new higher performance
products with higher ASPs, the Company's operating results would be materially
and adversely affected. Any yield or other production problems, shortages of
supply that increase the Company's manufacturing costs, or failure to reduce
manufacturing costs, would have a material adverse effect on the Company's
operating results.
Access to Wafer Fabrication Capacity. The Company does not own or operate a
wafer fabrication facility, and all of its semiconductor device requirements are
supplied by outside foundries. Substantially all of the Company's semiconductor
products are currently manufactured by third party foundry suppliers. The
Company's foundry suppliers fabricate products for other companies and produce
products of their own design. The Company's' reliance on independent foundries
involves a number of risks, including the absence of adequate capacity, the
unavailability of or interruptions in access to certain process technologies and
reduced control over delivery schedules, manufacturing yields and costs. In the
event that these foundries are unable or unwilling to continue to manufacture
the Company's products in required volumes, the Company will have to identify
and qualify acceptable additional or alternative foundries. This qualification
process could take six months or longer. No assurance can be given that any such
source would become available to the Company or that any such source would be in
a position to satisfy the Company's production requirements in a timely basis,
if at all. Any significant interruption in the supply of semiconductors to the
Company would result in the allocation of products to customer, which in turn
could have a material adverse effect on the Company's operating results.
10
<PAGE>
The Company has considered and will continue to consider various possible
transactions in order to obtain an adequate supply of wafers, especially wafers
manufactured using advanced process technologies. These transactions may include
equity investments in or loans to independent wafer fabrication companies in
exchange for access to production capacity, non-refundable deposits or advances
on subsequent deliveries, capital equipment purchases or leases on behalf of the
foundries, the formation of joint ventures to own and operate foundries, or the
usage of "take or pay" contracts that commit the Company to purchase specified
quantities of wafers over extended periods. The Company is evaluating
transactions with its existing and potential new foundry suppliers. The Company
believes that it will be required to commit substantial capital in return for
access to wafer production capacity, and the inability of the Company to timely
and cost effectively secure such capacity would have a material adverse effect
on the Company's operating results. Also, if the industry shifts to an
oversupply position, some Company assets may be impaired which could have a
material adverse effect on the Company's opearating results.
All of the Company's semiconductor products are assembled by sub-assemblers in
Asia. Shortages of raw materials or disruptions in the provision of services by
the Company's assembly houses or other circumstances that would require the
Company to seek additional or alternative sources of supply or assembly could
lead to supply constraints or delays in the delivery of the Company's products.
Such constraints or delays may result in the loss of customers or other adverse
effects on the Company's operating results. The Company's reliance on
independent assembly houses involves a number of other risks, including reduced
control over delivery schedules, quality assurances and costs and the possible
discontinuance of such contractors' assembly processes. Any supply or other
problems resulting from such risks would have a material adverse effect on the
Company's operating results.
Cyclical Nature of the Personal Computer Industry. The Company produces a number
of semiconductor products for the personal computer industry, including
communications and multimedia devices. The personal computer semiconductor
industry has historically been characterized by wide fluctuations in product
supply and demand. From time to time, the industry has also experienced
significant downturns, often in connection with, for in anticipation of,
declines in general economic conditions. These downturns, which in some cases
have lasted for more than a year, have been characterized by diminished product
demand, production over-capacity and anticipated accelerated erosion of ASPs.
Because the sales of the Company's user interface products, particularly in
Company's modem products, are significantly dependent on sales of PCs, any
decrease in demand for PCs, or any erosion of the ASP for PCs, would have a
material adverse effect on the Company's operating results.
Technological Change. The markets for the Company's products are characterized
by evolving industry standards and rapid technological change and
product obsolescence. Technological change may be particularly pronounced
in the developing market for semiconductor devices used in multimedia
personal computers in which the Company competes and in the market for
communications semiconductor devices used in high-speed networks. The Company's
future success will be highly dependent upon the timely completion and
introduction of new products at competitive price and performance levels.
The success of new products depends on a number of factors, including
proper definition of such products, successful and timely completion of
11
<PAGE>
product development and introduction to market, correct judgment with respect to
product demand, market acceptance of the Company's and its customers'
fabrication yields by the Company's independent foundries and the continued
ability of the Company to offer new products at competitive prices. Many of
these factors are outside the control of the Company. There can be no assurance
that the Company will be able to identify new product opportunities
successfully, develop and bring to market new products, achieve design wins or
be able to respond effectively to new technological changes or product
announcements by others. A failure in any of these areas would materially and
adversely affect the Company's operating results.
Products for telecommunications and data communications applications are based
on industry standards that are continually evolving. The modem marketplace is
experiencing a rapid transition from the popular V.32 standard, which operates
at 14,400 bps, to the V.34 standard, which operates at 28,800 bps. Sales of V.32
modems are declining industry-wide. Future transitions in customer preferences
could quickly obsolete other Sierra products. The Company is also developing
products for the Asynchronous Transfer Mode ("ATM") telecommunications and
networking market, which is in an early stage of development. The emergence and
adoption of new industry standards that compete with ATM or maintenance by the
industry of existing standards in lieu of new standards could render the
Company's ATM products unmarketable or obsolete. The Company's development
efforts are focused on ATM and related products that operate at faster speeds
and at higher layers of protocol processing. A material portion of the Company's
revenues and a substantial portion of the Company's profits are derived from
sales of ATM, T1/E1, DST/E3 and SONET/SDH, based products. There can be no
assurance that a significant market for the Company's ATM-based
telecommunications products will emerge or, if it does emerge, that the Company
will be able to develop and market these or other ATM-related products in a
timely and commercially viable manner. The adoption or maintenance by the
industry of high speed transmission standards other than ATM or the inability of
the Company to develop and market its ATM-related products would have a material
adverse effect on the Company's operating results.
Many of the Company's products under development are complex semiconductor
devices that require extensive design and testing before prototypes can be
manufactured. The integration of a number of functions in a single chip or in a
chipset requires the use of advanced semiconductor manufacturing techniques.
This can result in chip redesigns if the initial design does not permit
acceptable manufacturing yields. The Company's telecommunications products are
designed for customers who in many instances have not yet fully defined their
hardware products. Design delays or redesigns by these customers could in turn
delay completion or require redesign of the semiconductor devices needed for the
final hardware product. In this regard, many of the relevant standards and
protocols for ATM-based products have not been widely adopted or ratified by the
relevant standard-setting bodies. Redesigns or design delays often are required
for both the hardware manufacturer's products and the Company's chipsets as
industry and customer standards, protocols or design specifications are
determined. Any resulting delay in the production of the Company's products
could have a material adverse effect on the Company's operating results.
Due to the foregoing and other factors, past results, such
as those described in this report, may not be indicative of future
results. In addition, the securities of many high-technology
12
<PAGE>
companies have historically been subject to extreme price and volume
fluctuations. The Company may be subject to these same fluctuations which may
adversely affect the market price of the Company's common stock.
Liquidity and Capital Resources
The Company's cash and cash equivalents and short term investments decreased
from $45.9 million on December 31, 1995 to $31.6 million on March 31, 1996.
During the quarter, the Company paid $16.0 million to reduce debt and capital
lease obligations, principally related to a foundry agreement for future
production capacity. Other cash consuming activities were an increase in
deposits for wafer capacity of $9.0 million, increase of net inventories of $8.0
million, increases in accounts receivable balances of $3.2 million, equity
investment in a foundry source of $3.0 million, and a $1.5 million net increase
in capital assets. These were offset by net income of $8.8 million, proceeds of
$7.0 million from the sale of SiTel-Sierra B.V. in the fourth quarter of 1995,
increase of $5.8 million in accounts payable and accrued expenses, $2.8 million
in non-cash depreciation and amortization expenses, and $1.0 million change in
net liabilities of discontinued operations (Prometheus).
As of March 31, 1996, the Company's principal sources of liquidity included cash
and cash equivalents and short term investments of $31.6 million, and
approximately $8.0 million available under its bank line of credit. The current
line of credit agreement expires on July 1, 1996. The Company believes that
existing sources of liquidity and anticipated funds from operations will satisfy
the Company's projected working capital expenditure requirements through fiscal
1996. Capital expenditures for fiscal 1996 are anticipated to be approximately
$15 million.
The Company's future capital requirements will depend on many factors,
including, among others, the extent to which the Company pursues additional
wafer fabrication capacity from existing foundry suppliers or new suppliers,
product development, and acquisitions or complementary businesses, products or
technologies. To the extent that existing resources and the funds generated by
future earnings are insufficient to fund the Company's operations and its
investments to secure wafer fabrication capacity, the Company may need to raise
additional funds through public or private debt or equity financings. If
additional funds are raised through the issuance of equity securities, the
percentage ownership of current shareholders will be reduced and such equity
securities may have rights, preferences or privileges senior to those of the
holders of the Company's Common Stock. No assurance can be given that additional
financing will be available or that, if available, it can be obtained on terms
favorable to the Company and its shareholders. If adequate funds are not
available, the Company may be required to delay, limit or eliminate some or all
of its proposed operations. The failure to obtain financing would also hinder
the Company's ability to make continued investments in capital equipment and
access wafer fabrication capacity and other facilities which could have a
material adverse effect on the Company's operating results.
13
<PAGE>
PART II - OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits -
o 11.1
(b) No report on Form 8-K was filed during the quarter ended March 31,
1996
14
SIERRA SEMICONDUCTOR CORPORATION
CALCULATION OF EARNINGS PER SHARE
(In thousands, except for per share amounts)
Three Months Ending
March 31,
-------------------------
1996 1995
---- ----
Income from continuing operations $ 8,826 $ 4,404
Loss from discontinued operations - (304)
-------- --------
Net income 8,826 4,100
Adjustments to net income:
Accretion of convertible, redeemable
preferred stock - (1)
-------- --------
Adjusted income $ 8,826 $ 4,099
======== ========
Weighted average common shares outstanding 29,231 26,000
Common stock options 1,559 1,374
Shares used in calculation of net income per share 30,790 27,374
Income from continuing operations per share $ 0.29 $ 0.16
Loss from discontiued operations per share $ - $ (0.01)
-------- --------
Net income per share $ 0.29 $ 0.15
======== ========
15
<PAGE>
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.
SIERRA SEMICONDUCTOR CORPORATION
(Registrant)
Date: /s/ James V. Diller
--------------------- ---------------------------------------------
James V. Diller
Chairman and Chief Executive Officer
Date: /s/ Glenn C. Jones
--------------------- ---------------------------------------------
Glenn C. Jones
Senior Vice President, Finance
Chief Financial Officer (Principal Accounting
Officer)
16
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<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-29-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 27,568
<SECURITIES> 4,038
<RECEIVABLES> 42,569
<ALLOWANCES> 0
<INVENTORY> 22,846
<CURRENT-ASSETS> 99,604
<PP&E> 51,373
<DEPRECIATION> (28,723)
<TOTAL-ASSETS> 186,082
<CURRENT-LIABILITIES> 69,045
<BONDS> 0
<COMMON> 121,476
0
0
<OTHER-SE> (22,901)
<TOTAL-LIABILITY-AND-EQUITY> 186,082
<SALES> 0
<TOTAL-REVENUES> 64,396
<CGS> 34,107
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 17,071
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 13,578
<INCOME-TAX> 4,752
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<DISCONTINUED> 0
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<NET-INCOME> 8,826
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