<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR l5(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 29, 1997
Commission file number 0-19882
KOPIN CORPORATION
-----------------
(Exact name of registrant as specified in its charter)
DELAWARE 04-2833935
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
695 MYLES STANDISH BLVD.,TAUNTON, MA 02780-1042
- ------------------------------------ ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (508) 824-6696
--------------
Not Applicable
--------------
Former name, former address, and former fiscal year,
if changed since last report
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or l5(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
--- --
Applicable only to corporate issuers:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding as of April 30, 1997
----- --------------------------------
Common Stock, par value $ .01 10,949,176
<PAGE>
KOPIN CORPORATION
INDEX
-----
<TABLE>
<CAPTION>
Page No.
-------
<S> <C>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets at 3
March 29, 1997 and December 31, 1996
Consolidated Statements of Operations for the 4
Three months ended March 29, 1997 and March 30, 1996
Consolidated Statements of Stockholders' Equity for the 5
Three months ended March 29, 1997 and March 30, 1996
Consolidated Statements of Cash Flows for the 6
Three months ended March 29, 1997 and March 30, 1996
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial Condition 8
and Results of Operations
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 12
</TABLE>
2
<PAGE>
KOPIN CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
March 29, 1997 December 31, 1996
-------------- -----------------
<S> <C> <C>
ASSETS
- ------
Current assets:
Cash and equivalents $15,900,155 $ 16,511,291
Marketable securities 7,386,314 10,560,815
Accounts receivable, net of
allowance of $140,400 and $137,400:
Billed 2,782,776 3,650,075
Unbilled 2,271,285 2,933,863
Inventory 2,577,696 3,073,643
Prepaid expenses and
other current assets 905,455 1,257,781
----------- -----------
Total current assets 31,823,681 37,987,468
Equipment and improvements:
Equipment 21,740,922 20,862,918
Leasehold improvements 772,717 772,717
Furniture and fixtures 330,590 361,483
Equipment under
construction 859,253 636,255
----------- -----------
23,703,482 22,633,373
Accumulated depreciation
and amortization 12,519,514 11,731,828
----------- -----------
11,183,968 10,901,545
Other assets 3,082,688 2,962,149
Intangible assets 1,868,682 1,894,392
----------- -----------
Total assets $47,959,019 $ 53,745,554
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
- -------------------------------------
Current liabilities:
Note payable $ 500,000 $ 500,000
Accounts payable 4,170,319 6,945,053
Accrued payroll
and expenses 1,161,077 1,427,305
Unearned revenue 57,483 80,484
Current portion of
long-term obligations 1,523,161 1,347,636
----------- ----------
Total current liabilities 7,412,040 10,300,478
Deferred rent 327,166 381,166
Long-term obligations,
less current portion 1,937,672 2,793,061
Stockholders' equity:
Preferred stock, par
value $.01 per share:
Authorized, 3,000 shares;
none issued and
outstanding
Common stock, par value
$.01 per share:
Authorized, 20,000,000
shares;
issued 10,940,988 shares
in 1997 and 10,931,408
shares in 1996 109,410 109,314
Additional paid-in capital 88,698,985 88,605,451
Deferred compensation (209,526) (227,706)
Marketable securities
valuation 46,033 44,933
Accumulated (50,362,761) (48,261,143)
deficit ----------- ------------
Total stockholders'
equity 38,282,141 40,270,849
----------- ------------
Total liabilities and
stockholders' equity $47,959,019 $ 53,745,554
=========== ============
</TABLE>
See notes to consolidated financial statements.
3
<PAGE>
KOPIN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
------------------------------
March 29 March 30
1997 1996
------------- -------------
<S> <C> <C>
Revenue:
Product sales $ 2,882,077 $ 3,043,766
Research and development 831,936 1,729,472
Interest and other income 314,897 560,396
------------- -------------
4,028,910 5,333,634
------------- -------------
Costs and expenses:
Cost of sales 2,111,365 2,707,918
Research and development 2,803,978 4,710,969
General, administrative and selling 1,086,044 1,943,656
Interest 53,529 124,209
Other 75,612 134,769
Non-recurring charge - 4,990,412
------------- -------------
6,130,528 14,611,933
------------- -------------
Loss before minority interest (2,101,618) (9,278,299)
Minority interest in loss of subsidiary - 557,246
------------- -------------
Net loss ($ 2,101,618) ($ 8,721,053)
============= =============
Net loss per share ($ .19) ($ .80)
============= =============
Weighted average number of common shares
outstanding 10,940,988 10,915,858
============= =============
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
KOPIN CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
THREE MONTHS ENDED MARCH 29, 1997 AND MARCH 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
Additional
Common Stock Paid-in Deferred Securities
Shares Amount Capital Compensation Valuation Deficit Total
---------- -------- ----------- ------------- ---------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1995 10,915,019 $109,150 $88,355,145 ($94,482) $137,183 ($26,664,779) $61,842,217
Exercise of stock options 3,663 37 6,838 -- -- -- 6,875
Amortization of compensation
relating to grant of stock options -- -- -- 11,694 -- -- 11,694
Net unrealized gain on marketable
securities -- -- -- -- 67,012 -- 67,012
Net loss for the three month
period ended March 30, 1996 -- -- -- -- -- (8,721,053) (8,721,053)
---------- -------- ----------- ------------ ---------- ------------ -----------
Balance, March 30, 1996 10,918,682 $109,187 $88,361,983 ($ 82,788) $204,195 ($35,385,832) $53,206,745
========== ======== =========== ============ ========== ============ ===========
Balance, December 31, 1996 10,931,408 $109,314 $88,605,451 ($227,706) $ 44,933 ($48,261,143) $40,270,849
Exercise of stock options 9,580 96 93,534 -- -- -- 93,630
Amortization of compensation
relating to grant of stock options -- -- -- 18,180 -- -- 18,180
Net unrealized gain on marketable
securities -- -- -- -- 1,100 -- 1,100
Net loss for the three month
period ended March 29, 1997 -- -- -- -- -- (2,101,618) (2,101,618)
---------- -------- ----------- ------------ ---------- ------------ -----------
Balance, March 29, 1997 10,940,988 $109,410 $88,698,985 ($ 209,526) $ 46,033 ($50,362,761) $38,282,141
========== ======== =========== ============ ========== ============ ===========
</TABLE>
See notes to consolidated financial statements.
5
<PAGE>
KOPIN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
------------------------------
March 29 March 30
1997 1996
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net loss ($ 2,101,618) ($ 8,721,053)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Depreciation and amortization 863,298 902,809
Amortization of compensation
relating to grant
of stock options 18,180 11,694
Non-recurring charge - 4,990,412
Decrease in unearned revenue (23,001) (23,001)
Increase (decrease) in accrued rent (54,000) 8,500
Minority interest in loss of
subsidiary - (557,246)
Changes in assets and liabilities:
Accounts receivable 1,002,215 (1,410,746)
Inventory 135,272 (1,206,753)
Prepaid expenses and other
current assets 352,326 (71,550)
Intangible assets (58,951) (1,388,889)
Accounts payable and accrued
expenses (2,311,353) 1,634,534
Net cash used in operating ------------- -------------
activities (2,177,632) (5,831,289)
------------- -------------
Cash flows from investing activities:
Marketable securities 3,175,601 999,819
Other assets (120,539) (79,382)
Capital expenditures (1,247,246) (938,532)
------------- -------------
Net cash provided by (used in)
investing activities 1,807,816 (18,095)
------------- -------------
Cash flows from financing activities:
Net proceeds from issuance of
subsidiary
preferred stock - 1,800,000
Proceeds from notes payable - 500,000
Proceeds from long-term obligations - 1,285,862
Principal payment on long-term (334,950) (169,291)
obligations
Proceeds from exercise of stock 93,630 6,875
options ------------- -------------
Net cash provided by (used in) (241,320) 3,423,446
financing activities ------------- -------------
Net decrease in cash and equivalents (611,136) (2,425,938)
Cash and equivalents, beginning of 16,511,291 24,718,023
period ------------- -------------
Cash and equivalents, end of period $ 15,900,155 $ 22,292,085
============= =============
Non-cash investing and financing
transactions:
Marketable securities valuation $ 1,100 $ 67,012
Supplementary information -Interest
paid in cash $ 53,529 $ 103,401
</TABLE>
See notes to consolidated financial statements.
6
<PAGE>
KOPIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
---------------------
The financial statements for the three month periods ended March 29, 1997 and
March 30, 1996 are unaudited and include all adjustments which, in the opinion
of management, are necessary to present fairly the results of operations for the
periods then ended. All such adjustments are of a normal recurring nature. These
financial statements should be read in conjunction with the financial statements
and notes thereto included in the Company's Annual Report on Form 10-K filed
with the Securities and Exchange Commission (File No. 0-19882) for the year
ended December 31, 1996.
The results of the Company's operations for any interim period are not
necessarily indicative of the results of the Company's operations for any other
interim period or for a full fiscal year.
The consolidated financial statements include the accounts of the Company and
its wholly-owned and majority-owned subsidiaries. All intercompany transactions
and balances have been eliminated.
2. NET LOSS PER SHARE
------------------
Net loss per share is computed using the weighted average number of common
shares outstanding during the period. Common share equivalents have not been
included because the effect would be anti-dilutive.
In March 1997, the Financial Accounting Standards Board released Statement of
Financial Accounting Standards (SFAS) No.128, "Earnings Per Share," which the
Company will adopt in the fourth quarter of 1997. The adoption is not expected
to have an impact on the Company's reported loss per share for the quarters
ended March 29, 1997 and March 30, 1996.
3. INVESTMENT IN FORTE TECHNOLOGIES, INC.
--------------------------------------
During 1994, 1995 and 1996, the Company made a series of equity investments in
Forte Technologies, Inc. In May 1995, the Company obtained a controlling
interest in Forte and consolidated the financial statements of Forte with those
of the Company from that date through December 31, 1996. As a result of
declining sales and results of operations at Forte, the Company recorded in the
fourth quarter of 1996 a write-down of Forte's assets to their estimated net
realizable value and its remaining investment in Forte totaling $3,900,000. In
March 1997, Forte filed a voluntary petition seeking reorganization under
Chapter 11 of the U.S. Bankruptcy Code, and is in default in the payment of
principal and interest to its senior lender under certain secured loans in the
aggregate principal amount of $838,000. These loans have been guaranteed by the
Company, and are included in the Company's consolidated balance sheet as of
March 29, 1997. As a result of its Chapter 11 filing, Forte's financial
statements are no longer consolidated with those of the Company.
4. NON-RECURRING CHARGE
--------------------
On January 1, 1996 , the Company adopted SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed Of ." This
Statement establishes accounting standards for the carrying value of long-lived
and certain identifiable intangible assets. In January 1996, the Company
incurred a non-recurring charge of $4,990,412 which included a write-down
associated with the initial adoption of SFAS No.121, the expensing of purchased
technology, and the write-off of certain previously deferred expenses.
7
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
Kopin Corporation and its subsidiaries ("the Company") are engaged in the
development, manufacture and sale of flat panel display devices and
products, and custom Wafer-Engineered electronic materials for commercial
and consumer markets, and the performance of related research and
development under contracts. To date, the Company's revenue has been
derived primarily from development contracts with commercial companies and
agencies of the federal government, as well as from sales of its custom
Wafer-Engineered materials and flat panel display devices and products.
RESULTS OF OPERATIONS
The Company's research and development and product sale revenue
was $3,714,013 for the three months ended March 29, 1997, a decrease of
22.2% from $4,773,238 during the corresponding period in 1996. Research
and development revenue decreased to $831,936 for the three months ended
March 29, 1997, from $1,729,472 during the corresponding period in 1996, a
decrease of 51.9%. The change in 1997 research and development revenue was
primarily attributable to a decrease in contract revenue from agencies of
the federal government. The Company's product sales decreased 5.3% to
$2,882,077 for the three months ended March 29, 1997, from $3,043,766
during the corresponding period in 1996. The decline in product sales was
primarily because the financial results of Forte Technologies, Inc. are no
longer included with those of the Company in the 1997 period following the
Company's write-off of its investment in Forte at the end of 1996 and
Forte's subsequent filing of a voluntary petition under Chapter 11 of the
U.S. Bankruptcy Code. Forte had product sales of $1,399,694 in the first
quarter of 1996. The exclusion of Forte product sales in the three months
ended March 29, 1997 was substantially offset by a $1,238,005, or 75.3%
increase in sales of the Company's Wafer-Engineered materials and display
products. The increase in unit sales of the Company's Wafer-Engineered
materials is primarily due to the increase in use of these materials in
various wireless telecommunications products.
Interest and other income was $314,897 for the three months ended
March 29, 1997 compared to $560,396 during the corresponding period in
1996. The decrease in 1997 was primarily due to lower cash balances during
the period in comparison to available balances in 1996.
The Company's total operating expenses were $6,130,528 for the
three months ended March 29, 1997, a decrease of $8,481,405, or 58.0% from
$14,611,933 during the corresponding period in 1996. Of this decrease,
$4,990,412 related to a non-recurring charge in the 1996 period for the
write-down of certain intangible and long-lived assets in connection with
the Company's adoption of the provisions of Statement of Financial
Accounting Standards No. 121, the expensing of purchased technology, and
the write-off of certain previously deferred expenses. In addition,
research and development charges of $500,000 for subcontractor development
work were expensed. An additional $2,572,000 of the decrease is related to
expenses incurred in the three months ended March 30, 1996 by Forte
Technologies. The remainder of the decrease was primarily due to decreased
costs incurred for research and development programs funded by agencies of
the federal government. Cost of sales, which is comprised of materials,
labor and manufacturing overhead, was $2,111,365 for the three months
ended March 29, 1997, or 73.3% of product sales, compared to $2,707,918,
or 89.0% of product sales during the corresponding period in 1996. The
higher cost of sales percentage in 1996 was primarily due to the inclusion
in the 1996 financial results of shipments of head-mounted systems by
Forte Technologies. Reducing cost of sales as a percentage of sales for
the Company's products is generally dependent on achieving manufacturing
economies of scale in order to manufacture at a lower cost per unit basis.
Research and development expenses include expenses incurred in
support of internal development programs and programs funded by agencies
of the federal government, including development programs for electronic
imaging devices and display products, Wafer-Engineered materials and head-
mounted display systems, circuit design costs, staffing, purchases of
materials and laboratory supplies, and fabrication and packaging of the
Company's SMART SLIDE imaging devices. Total research and development
expenses for the three months ended March 29, 1997, were $2,803,978
compared to $4,710,969 during the corresponding period in 1996, a decrease
of 40.5%. The decrease in research and development expenses in 1997 was
primarily due to a reduction in research and development expenses incurred
in support of programs funded by agencies of the federal government as
well as the inclusion of $214,844 of such expenses incurred by Forte
Technologies during the corresponding period in 1996.
8
<PAGE>
General, administrative and selling expenses consist of the
expenses incurred by the Company's business development and sales
personnel, marketing expenses, and administrative and general corporate
expenses. General, administrative and selling expenses were $1,086,044 for
the three months ended March 29, 1997, a decrease of 44.1% from $1,943,656
during the corresponding period in 1996. The decrease in general,
administrative and selling expenses in 1997 was primarily due to the
inclusion of costs of $868,903 incurred by Forte Technologies in the three
months ended March 30, 1996. In addition, general and administrative
expenses include non-cash charges for compensation expense of $18,180 for
the three months ended March 29, 1997, relating to the issuance of certain
stock options. The Company expects to incur increased general,
administrative and selling expenses in the future as it commercializes its
imaging devices and display products and Wafer-Engineered materials.
On January 1, 1996 , the Company adopted SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets and Long-Lived Assets
to be Disposed Of ." This Statement establishes accounting standards for
the carrying value of long-lived and certain identifiable intangible
assets. In January 1996, the Company incurred a non-recurring charge of
$4,990,412 which included a write-down associated with the initial
adoption of SFAS No.121, the expensing of purchased technology, and the
write-off of certain previously deferred expenses.
In March 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings Per
Share," which will be effective during the fourth quarter of 1997. The new
pronouncement's requirements will not impact the Company's previously
reported loss per share.
LIQUIDITY AND CAPITAL RESOURCES
The Company has financed its operations primarily though private
placements of its equity securities, the initial public offering of its
common stock in April 1992, another public offering in March 1993,
research and development revenue, and sales of its custom Wafer-Engineered
materials and flat panel display devices and products. The Company has an
unused line of credit of $500,000 at March 29, 1997. The Company
periodically enters into loan agreements to finance equipment purchases
and other activities. As of March 29, 1997, sales of equity securities
have raised approximately $92,500,000, including $13,300,000 of net
proceeds from the Company's initial public offering, $26,500,000 of net
proceeds from the Company's March 1993 public offering, $3,300,000 from a
private stock sale in November 1992, $4,375,000 from the exercise of a
625,000 share stock warrant in December 1993, and $30,437,000 from private
stock sales in the fourth quarter of 1995.
As of March 29, 1997, the Company had cash and equivalents and
marketable securities of $23,286,469 and working capital of $24,411,641
compared to $27,072,106 and $27,686,990 as of December 31, 1996. The
decrease in cash and equivalents and marketable securities is primarily
due to $2,177,632 of cash used in operations, and capital expenditures of
$1,247,246. The Company also has approximately $1,645,000 of marketable
securities held in escrow as equipment financing collateral which is
shown in other assets.
Revenue from long-term contracts is recognized on the percentage-
of-completion method of accounting as work is performed, based upon the
ratio that incurred costs or hours bear to estimated total completion
costs or hours. Amounts received under long-term contracts are recognized
as revenue is earned, and amounts earned on contracts in progress in
excess of billings are classified as unbilled receivables. Unbilled
receivables are billed based on dates stipulated in the related agreement
or in periodic installments based upon the Company's invoicing cycle.
The Company periodically enters into various long-term debt
arrangements to finance equipment purchases and other activities. As of
March 29, 1997, long-term debt obligations totaled $3,460,833, of which
$1,523,161 is payable in 1997.
In October 1993, the Company entered into a five-year lease for a
74,000 square foot manufacturing facility. This facility, which includes
7,000 square feet of environmentally controlled clean rooms, is used
primarily for the Company's production of electronic imaging devices. The
Company will make lease payments of approximately $4.0 million over the
five-year term. In addition, the Company has exercised an option to
extend the lease an additional year at a cost of $1,000,000.
9
<PAGE>
The Company expects to expend approximately $8,000,000 on capital
expenditures over the next 36 months. Of this amount, approximately
$6,000,000 is expected to be used for expansion of manufacturing equipment
required for development and manufacturing of electronic imaging devices
and display products and Wafer-Engineered materials, and the balance is
expected to be used for the acquisition of laboratory and testing
equipment and general facility upgrades. The Company expects to use
approximately $2,000,000 in the remainder of 1997, $3,000,000 in 1998, and
$3,000,000 in 1999 for capital equipment and expansion of the Company's
manufacturing capabilities.
The Company expects to incur significant additional research and
development and other costs, including costs related to the continued
development and commercialization of its electronic imaging devices and
display products. The Company's future capital requirements will depend on
many factors, including the establishment of collaborative arrangements,
the cost of manufacturing facilities, commercialization activities and
arrangements, continued scientific progress in its imaging device and
display product development programs, the magnitude of these programs, the
costs involved in filing, prosecuting and enforcing patent claims, and
competing technological and market developments. From time to time, the
Company may also make equity investments in other companies engaged in
certain aspects of the flat panel display and electronics industries as
part of its business strategy.
The Company believes that its present cash and equivalents and
marketable securities will be adequate to finance its anticipated
operating and capital requirements and to meet liquidity needs through at
least fiscal 1998.
FUTURE OPERATING RESULTS
Certain of the statements contained in this Form 10-Q, including
Management's Discussion and Analysis of Financial Condition and Results of
Operations, are forward-looking statements that involve risks and
uncertainties. In addition to the risks and uncertainties set forth in
this Form 10-Q, other factors that could cause actual results to differ
materially include the following: general economic and business conditions
and growth in the flat panel display industry and the gallium arsenide
materials industry, the impact of competitive products and pricing,
availability of third party components, availability of integrated circuit
fabrication facilities, cost and yields associated with production of the
Company's SMART SLIDE imaging devices, loss of significant customers, and
the risk factors listed from time to time in the Company's periodic
reports filed with the Securities and Exchange Commission, including but
not limited to the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 1996.
10
<PAGE>
PART II. OTHER INFORMATION
Item 3. DEFAULTS UPON SENIOR SECURITIES
(a)The Company's majority owned subsidiary, Forte Technologies, Inc., which
has filed a voluntary petition seeking reorganization under Chapter 11 of the
U.S. Bankruptcy Code in March 1997, is in default in the payment of principal
and interest to Forte's senior lender under certain secured loans in the
aggregate principal amount of $838,000. The total arrearage under these loans is
approximately $60,000 as of the date of this report. These loans have been
guaranteed by the Company, and are included in the Company's consolidated
balance sheet as of March 29, 1997. Forte also is in default in the payment of
interest under certain secured convertible debentures in the aggregate principal
amount of $1,912,000. The Company, which is the holder of $1,538,000 of such
convertible debentures,wrote off the value of these loans as of December 31,
1996.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K
None
11
<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.
KOPIN CORPORATION
(Registrant)
Date: May 9, 1997 By: /s/ John C.C. Fan
----------------------------------------
John C.C. Fan
President, Chief Executive Officer and
Chairman of the Board of Directors
(Principal Executive Officer)
Date: May 9, 1997 By: /s/ Paul J.Mitchell
----------------------------------------
Paul J. Mitchell
Treasurer and Chief Financial Officer
(Principal Financial and Accounting Officer)
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-29-1997
<CASH> 15,900,155
<SECURITIES> 7,386,314
<RECEIVABLES> 5,054,061
<ALLOWANCES> 0
<INVENTORY> 2,577,696
<CURRENT-ASSETS> 31,823,681
<PP&E> 23,703,482
<DEPRECIATION> 12,519,514
<TOTAL-ASSETS> 47,959,019
<CURRENT-LIABILITIES> 7,412,040
<BONDS> 1,937,672
0
0
<COMMON> 109,410
<OTHER-SE> 38,172,731
<TOTAL-LIABILITY-AND-EQUITY> 47,959,019
<SALES> 2,882,077
<TOTAL-REVENUES> 4,028,910
<CGS> 2,111,365
<TOTAL-COSTS> 4,915,343
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 18,000
<INTEREST-EXPENSE> 53,529
<INCOME-PRETAX> (2,101,618)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,101,618)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,101,618)
<EPS-PRIMARY> (.19)
<EPS-DILUTED> (.19)
</TABLE>
