<PAGE>
UNITED STATES
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 April 3, 1999
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
--------------
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, 1999
----- --------------------------------
Common Stock, par value $ .01 12,414,374
<PAGE>
KOPIN CORPORATION
INDEX
-----
Page No.
-------
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets at
April 3, 1999 and December 31, 1998 3
Consolidated Statements of Operations and
Comprehensive Income (Loss) for the Three
months ended April 3, 1999 and March 28, 1998 4
Consolidated Statements of Stockholders' Equity
for the Three months ended April 3, 1999 and
March 28, 1998 5
Consolidated Statements of Cash Flows for the
Three months ended April 3, 1999 and
March 28, 1998 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
Item 3. Quantitative and Qualitative Disclosures About
Market Risk 10
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 12
2
<PAGE>
KOPIN CORPORATION
CONSOLIDATED BALANCE SHEETS
(unaudited)
<TABLE>
<CAPTION>
April 3, 1999 December 31, 1998
---------------------- ----------------------
<S> <C> <C>
Assets
Current assets:
Cash and equivalents $ 25,227,455 $ 30,807,335
Marketable securities, at fair value 7,606,249 6,000,883
Accounts receivable, net of allowance of $150,000
Billed 4,555,780 2,743,211
Unbilled 1,606,354 910,787
Inventory 3,855,643 3,337,178
Prepaid expenses and other current assets 1,028,005 743,069
------------ ------------
Total current assets 43,879,486 44,542,463
Equipment and improvements:
Equipment 25,108,716 24,953,456
Leasehold improvements 808,884 808,884
Furniture and fixtures 426,084 426,084
Equipment under construction 3,116,888 25,131
------------ ------------
29,460,572 26,213,555
Accumulated depreciation and amortization 17,705,983 16,867,698
------------ ------------
11,754,589 9,345,857
Other assets 5,956,940 6,173,153
Intangible assets 1,803,227 1,844,148
------------ ------------
Total assets $ 63,394,242 $ 61,905,621
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 3,761,954 $ 1,728,596
Accrued payroll and expenses 300,116 541,732
Other accrued liabilities 657,310 913,908
Current portion of long-term obligations 2,036,031 1,999,494
------------ ------------
Total current liabilities 6,755,411 5,183,730
Long-term obligations, less current portion 3,574,992 4,209,474
Minority interest 635,395 665,994
Commitments and contingencies
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, 12,408,297 shares in 1999 and 12,268,561 shares in 1998 124,083 122,686
Additional paid-in capital 109,379,609 108,954,779
Deferred compensation (151,300) (165,055)
Accumulated other comprehensive income 356,984 420,812
Deficit (57,280,932) (57,486,799)
------------ ------------
Total stockholders' equity 52,428,444 51,846,423
------------ ------------
Total liabilities and stockholders' equity $ 63,394,242 $ 61,905,621
============ ============
</TABLE>
See notes to consolidated financial statements.
3
<PAGE>
KOPIN CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
-------------------
April 3, 1999 March 28, 1998
--------------- ---------------
<S> <C> <C>
Revenues:
Product revenues $ 5,984,932 $ 4,660,684
Research and development revenues 744,664 805,863
----------- -----------
6,729,596 5,466,547
Expenses:
Cost of product revenues 3,930,174 2,723,238
Research and development 1,999,144 2,550,005
Selling, general and administrative 922,930 991,695
Other 87,900 91,899
----------- -----------
6,940,148 6,356,837
----------- -----------
Loss from operations (210,552) (890,290)
Other income and expense:
Interest and other income 534,516 379,235
Interest expense (118,264) (99,970)
----------- -----------
Income (loss) before minority interest 205,700 (611,025)
Minority interest in loss of subsidiary 167 -
----------- -----------
Net income (loss) $ 205,867 ($ 611,025)
=========== ===========
Net income (loss) per share - Basic $.02 ($ .05)
=========== ===========
Net income (loss) per share - Diluted $.02 ($ .05)
=========== ===========
Weighted average number of common
shares outstanding - Basic 12,388,153 11,660,684
=========== ===========
Weighted average number of common
shares outstanding - Diluted 13,139,379 11,660,684
=========== ===========
</TABLE>
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
-------------------
April 3, 1999 March 28, 1998
--------------- ---------------
<S> <C> <C>
Net income (loss) $205,867 $ (611,025)
Foreign currency translation adjustments (56,516) -
Unrealized gain (loss) on marketable securities, (7,312) 2,811
net -------- ----------
Comprehensive income (loss) $142,039 $ (608,214)
======== ==========
</TABLE>
See notes to consolidated financial statements.
4
<PAGE>
KOPIN CORPORATION
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Three months ended April 3, 1999 and March 28, 1998
(unaudited)
<TABLE>
<CAPTION>
Common Stock Additional Accumulated Other
----------------- Paid-in Deferred Comprehensive
Shares Amount Capital Compensation Income (Loss) Deficit Total
---------- --------- ------------ ------------ ----------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1997 11,122,143 $111,221 $ 90,514,233 $(231,955) $(6,001) $(54,518,912) $35,868,586
Issuance of common stock, net of
issuance costs of $1,829,000 1,000,000 10,000 17,161,418 -- -- -- 17,171,418
Exercise of stock options 24,517 246 239,900 -- -- -- 240,146
Amortization of compensation
relating to grant of stock -- -- -- 16,725 -- -- 16,725
options
Net unrealized gain on marketable
securities -- -- -- -- 2,811 -- 2,811
Net loss for the three month
period ended March 28, 1998 -- -- -- -- -- (611,025) (611,025)
---------- --------- ------------ ------------ ----------------- ------------- -----------
Balance, March 28, 1998 12,146,660 $121,467 $107,915,551 $(215,230) $(3,190) $(55,129,937) $52,688,661
========== ========= ============ ============ ================= ============= ===========
Balance, December 31, 1998 12,268,561 $122,686 $108,954,779 $(165,055) $420,812 $(57,486,799) $51,846,423
Exercise of stock options 139,736 1,397 424,830 -- -- -- 426,227
Amortization of compensation
relating to grant of stock -- -- -- 13,755 -- -- 13,755
options
Net unrealized loss on marketable
securities -- -- -- -- (7,312) -- (7,312)
Foreign currency translation
adjustments -- -- -- -- (56,516) -- (56,516)
Net income for the three month
period ended April 3, 1999 -- -- -- -- -- 205,867 205,867
---------- --------- ------------ ------------ ----------------- ------------- -----------
Balance, April 3, 1999 12,408,297 $124,083 $109,379,609 $(151,300) $356,984 $(57,280,932) $52,428,444
========== ========= ============ ============ ================= ============= ===========
</TABLE>
See notes to consolidated financial statements.
5
<PAGE>
KOPIN CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
-----------------
April 3, March 28,
1999 1998
-------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 205,867 $ (611,025)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization 937,631 997,668
Amortization of compensation relating to grant
of stock options 13,755 16,725
Decrease in deferred rent - (165,166)
Minority interest in loss of subsidiary (167) -
Changes in assets and liabilities:
Accounts receivable (2,525,556) (716,424)
Inventory (527,364) (63,642)
Prepaid expenses and other current assets (287,433) 189,084
Intangible assets (46,979) (100,003)
Accounts payable and accrued expenses 1,539,976 487,687
----------- -----------
Net cash provided by (used in) operating activities (690,270) 34,904
----------- -----------
Cash flows from investing activities:
Marketable securities (1,612,678) 2,613,757
Other assets 215,963 (2,516,809)
Capital expenditures (3,302,792) (579,176)
----------- -----------
Net cash used in investing activities (4,699,507) (482,228)
----------- -----------
Cash flows from financing activities:
Net proceeds from issuance of common stock - 17,171,418
Principal payment on notes payable - (450,000)
Proceeds from long-term obligations - 5,000,000
Principal payment on long-term obligations (597,945) (382,475)
Proceeds from exercise of stock options 426,227 240,146
----------- -----------
Net cash provided by (used in) financing activities (171,718) 21,579,089
----------- -----------
Effect of exchange rate changes on cash (18,385) -
----------- -----------
Net increase (decrease) in cash and equivalents (5,579,880) 21,131,765
Cash and equivalents, beginning of period 30,807,335 14,425,400
----------- -----------
Cash and equivalents, end of period $25,227,455 $35,557,165
=========== ===========
Supplementary information -Interest paid in cash $ 122,596 $ 68,277
</TABLE>
See notes to consolidated financial statements.
6
<PAGE>
KOPIN CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
---------------------
The consolidated financial statements for the three month periods ended April 3,
1999 and March 28, 1998 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 consolidated financial statements should be read in conjunction
with the consolidated 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, 1998.
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, its
wholly owned subsidiary and Kowon Technology Co., Ltd., a majority owned (65%)
subsidiary located in Korea. All intercompany transactions and balances have
been eliminated.
2. FOREIGN CURRENCY TRANSLATION
----------------------------
Assets and liabilities of non-U.S. operations are translated into U.S. dollars
at period end exchange rates, and revenues and expenses at rates prevailing
during the quarter. Resulting translation adjustments are accumulated as part of
other comprehensive income and aggregate $357,976 of unrealized gain at April 3,
1999. Transaction gains or losses are recognized in income or loss currently.
3. NET INCOME (LOSS) PER SHARE
---------------------------
Basic net income (loss) per share is computed using the weighted average number
of shares of common stock outstanding during the period. Diluted net income
(loss) per share is computed using the weighted average number of common shares
and common share equivalents outstanding during the period using the treasury
method. Common share equivalents have not been included in any periods in which
the effect would be anti-dilutive.
4. LONG-TERM OBLIGATIONS
---------------------
In March 1998, the Company entered into a $5,000,000 secured term note which
requires the Company to make quarterly principal payments of $250,000 plus
interest at a floating rate based upon LIBOR. This term note is secured by the
Company's accounts receivable.
5. STOCKHOLDERS' EQUITY
--------------------
In February 1998, the Company completed a public offering of 2,000,000 shares of
common stock at a price of $19.00 per share. Of the total shares sold, 1,000,000
shares were sold by the Company and the other 1,000,000 shares were sold by a
shareholder. Net proceeds to the Company totaled approximately $17,171,000.
6. RECENT PRONOUNCEMENTS
---------------------
The Financial Accounting Standards Board ("FASB") has issued Statement of
Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative
Instruments and Hedging Activities", which is effective for fiscal years
commencing after June 15, 1999. SFAS No. 133 requires fair value accounting for
all stand-alone derivatives and many derivatives embedded in other financial
instruments and contracts. The impact of SFAS No. 133 on the Company has not yet
been determined.
7
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
-----------------------------------------------------------------------
OF OPERATIONS
-------------
Kopin is a leading developer and manufacturer of advanced semiconductor
materials and small form factor displays. The Company was incorporated in 1984
to further develop and commercialize certain semiconductor expertise developed
at MIT. The Company's primary revenue source since 1995 has been from sales of
its gallium arsenide products. In 1998, the Company commenced sales of
CyberDisplay products. The Company has been unprofitable annually since
inception and, at April 3, 1999, the Company had an accumulated deficit of
$57,280,932.
Results of Operations
Revenues. The Company's total revenues increased $1,263,049 or 23%
to $6,729,596 for the three months ended April 3, 1999 compared to $5,466,547
for the three months ended March 28, 1998. The Company's product revenues were
$5,984,932 for the three months ended April 3, 1999 compared to $4,660,684 for
the same period in 1998, an increase of $1,324,248, or 28%. Product revenue
growth was attributable to gallium arsenide products which increased 34% to
$5,898,424 in 1999 compared to $4,386,000 in 1998. The increase in sales of the
Company's gallium arsenide products principally resulted from an increase in
sales of device wafers. Research and development revenues decreased $61,199 to
$744,664 for the three months ended April 3, 1999 compared to $805,863 for the
same period in 1998 primarily as a result of a decrease in revenues from
contracts with agencies of the federal government. The Company believes that
research and development revenues will continue to decline as a percentage of
total revenues for the near future.
Cost of Product Revenues. Cost of product revenues, which is comprised of
materials, labor and manufacturing overhead related to the Company's products,
was $3,930,174 for the three months ended April 3, 1999 compared to $2,723,238
for the three months ended March 28, 1998. The increase in cost of product
revenues as a percentage of product revenues in 1999 was primarily due to
manufacturing inefficiencies caused by reduced production volumes of
Cyberdisplay products and increased production staffing. Cost of product
revenues as a percentage of sales is dependent upon the product sales mix of
gallium arsenide products versus Cyberdisplay products. (See "Liquidity and
Capital Resources")
Research and Development. Research and development expenses (R&D) are
incurred under development programs for display devices and products and device
wafers either in support of internal development programs or programs funded by
agencies of the federal government. R&D includes costs for staffing, purchases
of materials and laboratory supplies, and overhead. Funded R&D was $899,759 for
the three months ended April 3, 1999 compared to $1,056,134 for the three months
ended March 28, 1998, a decrease of $156,375, associated with reduced
subcontractor expenses caused by the expiration of multi-year contracts with
agencies of the federal government. Internal R&D was $1,099,385 for the three
months ended April 3, 1999 compared to $1,493,871 during the corresponding
period in 1998, a decrease of $394,486. The decrease in internal R&D was
primarily the result of a reduction in internal development programs as the
Company transitions into production.
Selling, General and Administrative. Selling, general and administrative
expenses (S,G&A) consist of the expenses incurred by the Company's sales and
marketing personnel and related expenses, and administrative and general
corporate expenses. S,G&A was $922,930 for the three months ended April 3, 1999
compared to $991,695 during the corresponding period in 1998, a decrease of
$68,765. The decrease in S,G&A in 1999 was primarily due to cost containment
strategies partially offset by an increase in headcount in the sales and
marketing staff.
Other. Other expenses related to the amortization of patents and licenses
were $87,900 for the three months ended April 3, 1999 compared to $91,899 during
the corresponding period in 1998.
Other Income, Net. Other income, net was $416,252 for the three months
ended April 3, 1999 compared to $279,265 during the corresponding period in
1998. The increase was due to increased interest income, $439,242 during the
three months ended April 3, 1999 compared to $379,235 for the corresponding
period in 1998, earned on higher average cash balances in 1999 due to an equity
placement and secured term note financing which together totaled $22,171,000 in
the first quarter of 1998. Other income increased to $95,274 as a result of
gains on sale of equipment during the quarter. Interest expense increased to
$118,264 in 1999 compared to $99,970 in 1998 due to this additional debt
financing obtained by the Company.
8
<PAGE>
Liquidity and Capital Resources
The Company has financed its operations primarily through public and
private placements of its equity securities, research and development contract
revenues, and sales of its gallium arsenide and display products. The Company
believes its available cash resources will support its operations and capital
needs for at least the next twelve months.
As of April 3, 1999, the Company had cash and equivalents and marketable
securities of $32,833,704 and working capital of $37,124,075 compared to
$36,808,218 and $39,358,733, respectively, as of December 31, 1998. The decrease
in cash and equivalents and marketable securities was primarily due to cash used
in operations of $690,270, capital expenditures of $3,302,792, and principal
payments on long-term obligations of $597,945, offset by proceeds from the
exercise of stock options of $426,227. The increase in capital expenditures is
primarily for the Company's expansion program to increase manufacturing capacity
for the Company's gallium arsenide products.
The Company periodically enters into various long-term debt arrangements to
finance equipment purchases and other activities. As of April 3, 1999, debt
obligations totaled $5,611,023, of which $2,036,031 is payable in the next
twelve months.
The markets the CyberDisplay product is targeted at are large sales volume
consumer electronic and wireless communication applications. The Company
believed that in order to obtain customers in these markets, it was necessary to
make significant investments in equipment and infrastructure prior to obtaining
sales orders for the CyberDisplay product. In addition, the Company has spent
approximately $5,000,000 and $7,000,000 annually in 1998 and 1997, respectively,
to develop and improve CyberDisplay products. The Company believes that it will
be necessary to continue to make significant investments in equipment and
development in order to produce the current CyberDisplay product and higher
resolution displays. As a result of the current cost structure of the
CyberDisplay product line, the ability of the CyberDisplay product line to
achieve profitability is dependent upon achieving significant sales volumes and
reasonable gross profit margins. The Company has not yet produced the
CyberDisplay product at volumes necessary to achieve profitability. Accordingly,
there can be no assurances that the Company will obtain sufficient sales
volumes, or if sufficient sales volumes are achieved, produce the CyberDisplay
at a gross margin which will allow the product line to generate a profit.
The Company leases a 74,000 square foot manufacturing facility. This
facility, which includes 10,000 square feet of environmentally controlled clean
rooms, is used primarily for the Company's production of display products. This
facility is occupied under a lease that expires in October 2000, with renewable
options for up to four additional years at the Company's election. The Company
will make lease payments of approximately $1.0 million per year over the
remaining term of the lease.
The Company expects to expend approximately $10,000,000 on capital
expenditures over the next twelve months, primarily for the acquisition of
equipment relating to the production of the Company's gallium arsenide products
and the manufacturing, packaging and testing of CyberDisplay products.
Recent Accounting Pronouncements
The Financial Accounting Standards Board ("FASB") has issued Statement of
Financial Accounting Standards ("SFAS") No. 133, "Accounting for Derivative
Instruments and Hedging Activities", which is effective for fiscal years
commencing after June 15, 1999. SFAS No. 133 requires fair value accounting for
all stand-alone derivatives and many derivatives embedded in other financial
instruments and contracts. The impact of SFAS No. 133 on the Company has not yet
been determined.
Year 2000
The Company has developed plans to address issues related to the impact
on its systems from the "Year 2000 Problem". Financial and operational systems
are being assessed and plans have been implemented to address systems
modification requirements.
The Company, utilizing both internal and external resources to address the
Year 2000 issue, expects to substantially complete this project by the third
quarter of calendar 1999. The current estimate of total project cost is
approximately
9
<PAGE>
$700,000, which includes the cost of purchasing certain equipment and software,
including financial accounting software, which will be capitalized in accordance
with normal policy. The cost of equipment and software account for approximately
30 percent of the total estimated project cost while internal resources,
primarily salary costs, are 30 percent of the cost and external resources are
the remaining 40 percent. Approximately 40 percent of the total project cost has
been spent through April 3, 1999, with the remaining amount to be spent in 1999.
The plan costs will be paid from cash flow generated from operations. The Year
2000 project will not result in the delay in implementation of any previously
planned information technology projects.
The Company's products, which are Year 2000 compliant, require high quality
raw materials in order to achieve historical manufacturing yields and
performance. The Company requires suppliers to meet stringent quality standards
before the Company will accept their product. The Company is continually
performing an assessment of its key suppliers' Year 2000 readiness and their
plans for becoming Year 2000 compliant. Although the Company has multiple
suppliers for each raw material, failure by one or more key suppliers to achieve
Year 2000 readiness could impact the Company's ability to produce product at
historical levels. In addition, certain critical raw material suppliers allocate
capacity to the Company. Accordingly, there can be no assurance that if one or
more suppliers are unable to meet their commitments to the Company, the
remaining suppliers will be able to make-up the shortfall. Development of
contingency plans is in progress and will be developed in detail in 1999. There
can be no assurance, however, that the Company will adequately address the Year
2000 problem, that any contingency plans implemented by the Company would be
adequate to meet the Company's needs without materially impacting its
operations, that any such plan would be successful or that the Company's results
of operations and financial condition would not be materially and adversely
affected by the delays and inefficiencies in conducting operations in an
alternative manner.
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 integrated circuit and materials
industries, 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
CyberDisplay imaging devices and device wafers, loss of significant customers,
acceptance of the Company's products, continuation of strategic relationships,
changes in foreign currency exchange rates, and the risk factors and cautionary
statements listed from time to time in the Company's periodic reports and
registration statements 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, 1998.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
----------------------------------------------------------
The Company invests its excess cash in high quality government and
corporate financial instruments which bear minimal risk. The Company believes
that the effect, if any, of reasonably possible near-term changes in interest
rates on the Company's financial position, results of operations, and cash flows
should not be material. The Company sells its products to customers worldwide.
The Company maintains a reserve for potential credit losses and such losses have
been minimal. The Company is exposed to changes in foreign currency exchange
primarily through its translation of its foreign subsidiary's financial
position, results of operations, and cash flows.
10
<PAGE>
PART II. OTHER INFORMATION
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 17, 1999 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 17, 1999 By: /s/ Richard A. Sneider
__________________________
Richard A. Sneider
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-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> APR-03-1999
<CASH> 25,227,455
<SECURITIES> 7,606,249
<RECEIVABLES> 6,162,134
<ALLOWANCES> 0
<INVENTORY> 3,855,643
<CURRENT-ASSETS> 43,879,486
<PP&E> 29,460,572
<DEPRECIATION> 17,705,983
<TOTAL-ASSETS> 63,394,242
<CURRENT-LIABILITIES> 6,755,411
<BONDS> 3,574,992
0
0
<COMMON> 124,083
<OTHER-SE> 52,304,361
<TOTAL-LIABILITY-AND-EQUITY> 63,394,242
<SALES> 5,984,932
<TOTAL-REVENUES> 6,729,596
<CGS> 3,930,174
<TOTAL-COSTS> 5,929,318
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 118,264
<INCOME-PRETAX> 205,867
<INCOME-TAX> 0
<INCOME-CONTINUING> 205,867
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 205,867
<EPS-PRIMARY> .02
<EPS-DILUTED> .02
</TABLE>
