SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number: 1-4389
THE PERKIN-ELMER CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
New York 06-0490270
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
761 Main Avenue,
Norwalk, Connecticut 06859-0001
(Address of Principal Executive Offices, Including Zip
Code)
(203) 762-1000
(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 ____
Number of shares outstanding of Common Stock, par value $1 per
share, as of February 7, 1997: 43,623,179
<PAGE>
THE PERKIN-ELMER CORPORATION
INDEX
Part I. Financial Information Page
Condensed Consolidated Statements of Operations for the
Three Months and Six Months Ended December 31, 1996 and 1995 1
Condensed Consolidated Statements of Financial Position at
December 31, 1996 and June 30, 1996 2
Condensed Consolidated Statements of Cash Flows for the
Six Months Ended December 31, 1996 and 1995 3
Notes to Unaudited Condensed Consolidated Financial Statements 4
Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
Part II. Other Information 11
<PAGE>
THE PERKIN-ELMER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(Dollar amounts in thousands except per share amounts)
<TABLE>
<CAPTION>
Three months ended Six months ended
December 31, December 31,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Net revenues $ 330,791 $ 294,088 $ 606,527 $ 558,449
Cost of sales 167,301 152,902 308,303 288,328
Gross margin 163,490 141,186 298,224 270,121
Selling, general and administrative 94,735 84,728 177,181 163,447
Research, development and engineering 27,566 25,927 51,421 51,104
Operating income 41,189 30,531 69,622 55,570
Gain on sale of investment 26,120 37,420
Interest expense 609 1,326 1,289 2,759
Interest income 1,499 919 2,587 1,557
Other expense, net 135 571 135 1,966
Income before income taxes 68,064 29,553 108,205 52,402
Provision for income taxes 17,124 6,797 24,887 12,052
Net income $ 50,940 $ 22,756 $ 83,318 $ 40,350
Net income per share $ 1.15 $ 0.53 $ 1.88 $ 0.94
Dividends per share $ 0.17 $ 0.17 $ 0.34 $ 0.34
</TABLE>
See accompanying Notes to Unaudited Condensed Consolidated Financial
Statements.
-1-
<PAGE>
THE PERKIN-ELMER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Dollar amounts in thousands)
At December 31, At June 30,
1996 1996
Assets (unaudited)
Current assets
Cash and cash equivalents $ 157,868 $ 95,361
Short-term investments 1,261 1,227
Accounts receivable, net 283,418 254,531
Inventories 215,378 207,297
Prepaid expenses and other current assets 83,541 82,360
Total current assets 741,466 640,776
Property, plant and equipment, net 157,290 148,008
Other long-term assets 99,591 152,540
Total assets $ 998,347 $ 941,324
Liabilities and Shareholders' Equity
Current liabilities
Loans payable $ 52,930 $ 51,075
Accounts payable 95,091 86,885
Accrued salaries and wages 36,289 39,607
Accrued taxes on income 69,678 57,097
Other accrued expenses 195,029 206,552
Total current liabilities 449,017 441,216
Long-term debt 890
Other long-term liabilities 174,870 175,776
Stock repurchase commitment 20,480
Shareholders' equity
Capital stock 45,600 45,600
Capital in excess of par value 164,694 186,058
Retained earnings 262,345 194,613
Foreign currency translation adjustments 6,075 446
Net unrealized gain on investment 23,245
Minimum pension liability adjustment (29,365) (29,365)
Treasury stock, at cost (95,369) (97,155)
Total shareholders' equity 353,980 323,442
Total liabilities and shareholders' equity $ 998,347 $ 941,324
See accompanying Notes to Unaudited Condensed Consolidated Financial
Statements.
-2-
<PAGE>
THE PERKIN-ELMER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(Dollar amounts in thousands)
<TABLE>
<CAPTION>
Six months ended December 31,
1996 1995
<C> <S> <S>
Operating Activities
Net income $ 83,318 $ 40,350
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 19,506 21,054
Restricted stock amortization 2,846
Deferred income taxes (3,633) (1,988)
Gains from the sale of assets (37,420)
Changes in operating assets and liabilities:
Increase in accounts receivable (31,192) (17,886)
Increase in inventories (8,997) (9,557)
Increase in prepaid expenses and other assets (99) (10,933)
Increase in accounts payable and other liabilities 7,282 6,114
Net cash provided by operating activities 31,611 27,154
Investing Activities
Additions to property, plant and equipment
(net of disposals of $1,204 and $1,484, respectively) (25,018) (13,263)
Proceeds from the collection of notes receivable 978 2,028
Proceeds from the sale of assets, net 65,239 4,986
Maturity of short-term investment 7,000
Net cash provided by investing activities 41,199 751
Financing Activities
Principal payments on long-term debt (892)
Net change in loans payable 4,865 6,133
Dividends declared (14,648) (14,363)
Purchases of common stock for treasury (15,851)
Equity put warrants 1,846
Stock issued for stock plans 11,847 8,580
Net cash (used) provided by financing activities (12,833) 350
Effect of exchange rate changes on cash 2,530 (265)
Net change in cash and cash equivalents 62,507 27,990
Cash and cash equivalents beginning of period 95,361 73,010
Cash and cash equivalents end of period $ 157,868 $ 101,000
</TABLE>
See accompanying Notes to Unaudited Condensed Consolidated Financial
Statements.
-3-
<PAGE>
THE PERKIN-ELMER CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The interim condensed consolidated financial statements should be
read in conjunction with the financial statements presented in The
Perkin-Elmer Corporation's (the Company's) 1996 Annual Report to
Shareholders. Significant accounting policies disclosed therein
have not changed.
The unaudited condensed consolidated financial statements reflect,
in the opinion of the Company's management, all adjustments which
are necessary for a fair statement of the results for the interim
periods. All such adjustments are of a normal recurring nature.
These results are, however, not necessarily indicative of the
results to be expected for a full year. The preparation of
financial statements in conformity with generally accepted
accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting periods.
Actual results could differ from those estimates. Certain amounts
in the condensed consolidated financial statements have been
reclassified for comparative purposes.
NOTE 2 - INVENTORIES
Inventories are stated at the lower of cost (on a first-in, first-
out basis) or market. Inventories included the following
components:
(Dollar amounts in millions) December 31, June 30,
1996 1996
Raw materials and supplies $ 30.0 $ 31.1
Work-in-process 21.8 19.8
Finished products 163.6 156.4
Total inventories $ 215.4 $ 207.3
NOTE 3 - INVESTMENTS
During the second quarter of fiscal 1997, the Company sold its
remaining equity interest in Etec Systems, Inc. (ETEC) for net cash
proceeds of $31.6 million. The Company recorded a before-tax gain
of $26.1 million, or $.42 per share after-tax. During the first
quarter of fiscal 1997, the Company had sold part of its equity
interest in ETEC for net cash proceeds of $14.2 million, resulting
in a before-tax gain of $11.3 million, or $.23 per share after-tax.
The ETEC investment was reported under other long-term assets. The
sale of this investment accounts for substantially all of the
decrease in the other long-term assets category.
-4-
<PAGE>
NOTE 4 - STOCK REPURCHASE COMMITMENT
In the first quarter of fiscal 1997, the Company sold in a private
placement 600,000 put warrants on shares of its common stock. Each
warrant obligates the Company to purchase the shares from the
holder, at a specified price, if the closing price of the common
stock is below the exercise price on the maturity date. The cash
proceeds from the sale of the put warrants were $1.8 million and
have been included in capital in excess of par value. During the
second quarter of fiscal 1997, 200,000 of the put warrants expired.
The remaining warrants outstanding at December 31, 1996 have a total
exercise price of $20.5 million and are reflected in the Company's
financial statements as a provisional liability with the offset as a
reduction of capital in excess of par value. The remaining warrants
mature in March and June of 1997.
NOTE 5 - DERIVATIVES
The Company manages exposure to fluctuations in foreign exchange
rates by creating offsetting positions through the use of derivative
financial instruments, primarily forward or purchased option foreign
exchange contracts. The Company does not use derivative financial
instruments for trading or speculative purposes, nor is the Company
a party to leveraged derivatives. Foreign exchange contracts are
accounted for as hedges of net investments, firm commitments and
foreign currency transactions. The gains and losses on the
instruments utilized to create the hedge offset the gains and losses
on the underlying exposures. At December 31, 1996, the total
carrying amount of the Company's outstanding foreign currency
contracts held was $161.8 million. The counterparties to these
contracts consist of a limited number of highly rated major
financial institutions and the Company does not expect to record any
losses as a result of counterparty default.
NOTE 6 - RESTRUCTURING
As part of continuing efforts to strengthen the analytical
instruments business, the Company identified a series of actions in
fiscal 1996 which included asset redeployment, reduction of
overhead, and improved operating efficiency. The charge for this
plan totaled $71.6 million and was recorded in the third quarter of
fiscal 1996. The charge included $37.8 million for worldwide
workforce reductions of approximately 390 positions in
manufacturing, sales and support, and administrative functions. The
charge also included $33.8 million for the reduction of excess
European manufacturing capacity, the consolidation of facilities in
Europe, and the write-down of certain tangible assets and the write-
off of certain intangible assets associated with the discontinuance
of various product lines. These changes are scheduled to be
substantially completed by June 1997. As of December 31, 1996,
severance and related payments of $11.4 million were paid to
approximately 275 employees separated under this plan. The Company
also incurred $9.6 million for costs associated with changes in the
European operations infrastructure and $5.0 million in asset write-
offs related to the discontinuance of various product lines. The
balance of the cost to complete the restructuring plan was $45.6
million at December 31, 1996. There have been no adjustments to
increase or decrease the liabilities originally provided for this
restructuring plan.
The Company recorded a $23.0 million before-tax charge in the fourth
quarter of fiscal 1995 for restructuring actions focused on reducing
costs within the analytical instruments business infrastructure.
The charge included $20.7 million for severance and related costs
for a workforce
-5-
<PAGE>
reduction of 227 employees and $2.3 million for
closure and facility consolidation expenses. As of December 31,
1996, the Company made severance and related payments of $16.9
million to the 227 employees separated under this plan and payments
of $1.9 million were made for closure and facility consolidation
costs, primarily related to the shutdown of the Company's Puerto
Rico manufacturing facility. All costs resulted in cash outlays and
the actions were implemented by the third quarter of fiscal 1996.
The restructuring reserve balance at December 31, 1996 of $4.2
million represents future severance and deferred payments. There
have been no adjustments made to increase or decrease the
liabilities originally accrued for this restructuring plan.
-6-
<PAGE>
THE PERKIN-ELMER CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following comments should be read in conjunction with
"Management's Discussion and Analysis" appearing on pages 27 - 32 of
the Company's 1996 Annual Report to Shareholders.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 1996
The Company reported net income of $50.9 million, or $1.15 per
share, for the second quarter of fiscal 1997 compared with $22.8
million, or $.53 per share, in the second quarter of fiscal 1996.
Net income for the current quarter included a before-tax gain of
$26.1 million, or $.42 per share after-tax, from the sale of the
Company's remaining equity interest in Etec Systems, Inc. (ETEC).
On a comparable basis, excluding the special gain, net income
increased 42% over the second quarter of fiscal 1996.
Total Company net revenues of $330.8 million for the second quarter
of fiscal 1997 increased 12.5% over the $294.1 million reported for
the second quarter of fiscal 1996. Net revenues in both the United
States and Europe increased 17% over the prior year, while revenues
in the Far East declined by 4%. Currency rate fluctuations
decreased revenues by approximately $8 million, or 2%, compared to
the prior year, as the U.S. dollar strengthened against the Japanese
Yen and certain European currencies. Net revenues in Europe and the
Far East would have increased by approximately 19% and 4%,
respectively, if exchange rates had remained constant.
On a business segment basis, net revenues for the Applied Biosystems
Division increased 28% to $162.2 million. This increase is net of
approximately $5 million in unfavorable currency translation. United
States and European revenues increased more than 30%, while revenues
in the Far East increased at a lesser rate due primarily to the
strengthening of the U.S. dollar against the Japanese Yen. The
division's increased revenues included a strong performance from the
sale of genetic analysis and liquid chromatography-mass spectrometry
(LC/MS) products.
Net revenues for the Analytical Instruments Division were $168.6
million, an increase of 1% over last year's $167.3 million, after
negative currency translation of approximately $3 million. This was
the first quarter since December 1995 in which the Analytical
Instruments Division reported a quarter to quarter revenue increase.
The increase resulted, in part, from the introduction of new
products in the atomic absorption and thermal analysis markets.
Gross margin as a percentage of net revenues was 49.4% in the second
quarter of fiscal 1997 compared with 48.0% in the second quarter of
fiscal 1996. Improved gross margin for the Analytical Instruments
Division was the primary contributor to the increase. Benefits from
the restructuring actions in Germany and North America accounted for
this improvement. Gross margins for the Applied Biosystems Division
were essentially unchanged from the prior year as the negative
translation effects of the strengthening dollar against the Japanese
Yen offset the margin improvement from higher unit volumes.
-7-
<PAGE>
Selling, general and administrative (SG&A) expenses were $94.7
million in the second quarter of fiscal 1997 compared to $84.7
million in the second quarter of fiscal 1996. A decline in SG&A
expenses for the Analytical Instruments Division was more than
offset by increased expenses in the Applied Biosystems Division and
a $2.8 million non-cash charge for compensation expense under the
Company's restricted stock program. As a percentage of net
revenues, SG&A expenses remained constant with the prior year at
29%. Research, development and engineering (R&D) expenses of $27.6
million increased 6.3% over the prior year. Increased spending in
the life science segment was partially offset by lower R&D expenses
in the analytical instruments segment. The lower expenses in the
Analytical Instruments Division reflected the restructuring actions
taken last fiscal year, particularly the reductions in excess
European capacity and North American sales and service operations.
Operating expenses in total, as a percentage of net revenues,
decreased from 37.6% in the second quarter of fiscal 1996 to 37.0%
in the current quarter.
As a result of lower average debt levels, interest expense in the
second quarter of fiscal 1997 decreased $.7 million compared to the
second quarter of fiscal 1996. Interest income was $.6 million
higher than the prior year as a result of maintaining higher cash
and cash equivalent balances.
The effective income tax rate for the second quarter of fiscal 1997
was 25.2%. Excluding the special gain, the effective income tax
rate was 23% in both fiscal 1997 and 1996.
RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
The Company reported net income of $83.3 million, or $1.88 per
share, for the first six months of fiscal 1997 compared with $40.4
million, or $.94 per share, in the first half of the prior year.
Net income included a before-tax gain of $37.4 million, or $.65 per
share after-tax, from the sale of the Company's equity interest in
ETEC. On a comparable basis, excluding the special gain, net income
increased 35% over the first six months of fiscal 1996.
Net revenues for the first six months of fiscal 1997 were $606.5
million, an increase of 8.6% over the $558.4 million reported in the
first half of fiscal 1996. The effects of currency rate movements
decreased net revenues by approximately $15 million in fiscal 1997,
as the U.S. dollar strengthened against the Japanese Yen and certain
European currencies. Excluding the effects of currency, net
revenues in all geographic markets increased over the prior year.
Revenues in the United States, Europe, and the Far East increased
14%, 13%, and 5%, respectively. The Company benefited from a strong
performance in the Applied Biosystems Division, driven by high
demand for genetic analysis and LC/MS products. Revenues for the
Applied Biosystems Division increased nearly 25% over the prior
year, partially offset by a 3.5% decline in Analytical Instruments
Division revenues.
Gross margin as a percentage of net revenues was 49.2% for the first
half of fiscal 1997 compared to 48.4% for the first six months of
fiscal 1996. Benefits realized from the Analytical Instruments
Division restructuring plan in both Europe and North America, and
higher unit volumes in the Applied Biosystems Division, more than
offset the negative effects of the stronger U.S. dollar,
particularly against the Japanese Yen.
SG&A expenses increased $13.7 million in the first half of fiscal
1997 compared to the same period in fiscal 1996. Fiscal 1997
expenses included a $2.8 million non-cash charge for compensation
expense under the Company's restricted stock program. In addition,
increased administrative and
-8-
<PAGE>
marketing expenses in the life sciences
segment more than offset a decline in SG&A expenses in the
analytical instruments segment. As a percentage of net revenues,
SG&A expenses remained constant with the prior year at 29%. R&D
expenses for the first half of fiscal 1997 were $51.4 million
compared to $51.1 million in the prior year. An increase in R&D
spending in the life science segment was almost entirely offset by
previously planned lower spending in the analytical instruments
segment. Total operating expenses were $228.6 million for the first
six months of fiscal 1997 compared with $214.6 million in the first
half of fiscal 1996. Total operating expenses, as a percentage of
net revenues, decreased to 37.7% in fiscal 1997 from 38.4% in fiscal
1996. Operating expense levels for the Analytical Instruments
Division reflect the cost saving actions undertaken with the fiscal
1996 restructuring program.
Interest expense was $1.3 million in the first six months of fiscal
1997 compared with $2.8 million in the first six months of fiscal
1996. The decrease was primarily the result of lower average
borrowing levels compared to the prior year. As a result of
maintaining higher cash and cash equivalents balances, interest
income increased $1.0 million over the prior year. Net other expense
in the first six months of fiscal 1997 was $.1 million compared to
$2.0 million in the first half of fiscal 1996.
The Company's effective income tax rate was 23% for the first six
months of fiscal 1997 and 1996.
FINANCIAL RESOURCES AND LIQUIDITY
At December 31, 1996, the Company's total cash position, including
cash equivalents, was $157.9 million compared with $95.4 million at
June 30, 1996, and $101.0 million at December 31, 1995. Net cash
provided by operations was $31.6 million for the first six months of
fiscal 1997 compared to $27.2 million for the same period in fiscal
1996. The increase was primarily due to higher income-related cash
flow, which more than offset an increase in accounts receivable.
Net cash provided by investing activities was $41.2 million for the
first six months of fiscal 1997 compared to $.8 million for the
first six months of fiscal 1996. Net capital expenditures were
$25.0 million in the first half of fiscal 1997 compared with $13.3
million in fiscal 1996. The increase was the result of higher
spending to improve the Company's information technology
infrastructure. The increase in capital expenditures was more than
offset by the proceeds received from the sale of the Company's
equity interest in ETEC and the sale of certain non-operating
assets.
Net cash used by financing activities was $12.8 million in the first
half of fiscal 1997 compared to $.4 million of cash provided by
financing activities in fiscal 1996. Cash generated from the sale
of put warrants (see Note 4), employee stock option plan exercises,
and increased short-term borrowings at the end of the second
quarter, was more than offset by the cash used for the payment of
shareholders' dividends and for the purchase of 300,000 shares of
common stock for treasury. There were no shares repurchased during
the first six months of fiscal 1996.
The implementation of the restructuring actions announced in the
third quarter of fiscal 1996 is proceeding as planned. The Company
has achieved approximately $10 million in before-tax income benefits
from the program in fiscal 1997.
-9-
<PAGE>
OUTLOOK
The underlying demand for life sciences products is expected to
continue its growth. Driven by strong demand in the expanding
applied markets, such as pharmaceutical research and DNA analysis,
the Applied Biosystems Division has grown steadily and its unit
growth is expected to continue throughout the fiscal year. However,
adverse currency effects on net revenues could continue if the
relationship of the U.S. dollar to certain currencies is maintained
at current levels, or if the U.S. dollar continues to strengthen
against other currencies.
Net revenues of the Analytical Instruments Division for the six
months ended December 31, 1996 were slightly lower than the prior
year's level. However, the cost reduction actions of the fiscal 1996
restructuring program are resulting in improved operating efficiency
and increased profit margins. The benefits of the program are
anticipated to accelerate during the second half of the fiscal year
with operating cost reductions of approximately $25 million expected
to be realized in fiscal 1997. The full benefits of the program are
expected to be realized in fiscal 1998 with operating cost benefits
of more than $40 million per annum and increased operating cashflow
of a similar amount.
"SAFE HARBOR" STATEMENT UNDER PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995
Certain statements contained in this report may be forward looking
and are subject to a variety of risks and uncertainties. Many
factors could cause actual results to differ materially from these
statements. These factors include, but are not limited to, (1)
complexity and uncertainty regarding the development of new high
technology products, (2) loss of market share through competition,
(3) introduction of competing products or technologies by other
companies, (4) pricing pressures from competitors and/or customers,
(5) changes in the life sciences or analytical instrument
industries, (6) changes in the pharmaceutical, environmental,
research or chemical markets, (7) variable government funding in key
geographical regions, (8) the Company's ability to protect
proprietary information and technology or to obtain necessary
licenses on commercially reasonable terms, (9) the loss of key
employees, (10) fluctuations in foreign currency exchange rates, and
(11) other factors which might be described from time to time in the
Company's filings with the Securities and Exchange Commission.
A significant portion of the Company's life science business
operations are located near major California earthquake faults. The
ultimate impact of earthquakes on the Company, significant suppliers
and the general infrastructure is unknown, but operating results
could be materially affected in the event of a major earthquake.
The Company maintains insurance to reduce its exposure to losses and
interruptions caused by earthquakes.
Although the Company believes it has the product offerings and
resources needed for continuing success, future revenue and margin
trends cannot be reliably predicted and may cause the Company to
adjust its operations. Factors external to the Company can result
in volatility of the Company's common stock price. Because of the
foregoing factors, recent trends should not be considered reliable
indicators of future stock prices or financial results.
-10-
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
10 (1). The Perkin-Elmer Corporation 1996 Stock Incentive
Plan (Incorporated by reference to Exhibit 99 to
the Company's Registration Statement on Form S-8
(No. 333-15189)).
11. Computation of Net Income Per Share.
27. Financial Data Schedule.
(b) Reports on Form 8-K.
No reports on Form 8-K were filed during the
quarter for which this report is being filed.
-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.
THE PERKIN-ELMER CORPORATION
By: /s/ Stephen O. Jaeger
Stephen O. Jaeger
Vice President, Chief
Financial
Officer and Treasurer
By: /s/ Ugo D. DeBlasi
Ugo D. DeBlasi
Corporate Controller (Chief
Accounting Officer)
Dated: February 13, 1997
-12-
<PAGE>
EXHIBIT INDEX
Exhibit No. Exhibit
11 Computation of Net Income Per Share
27 Financial Data Schedule
EXHIBIT 11
THE PERKIN-ELMER CORPORATION
COMPUTATION OF NET INCOME PER SHARE
(unaudited)
(Amounts in thousands except per share amounts)
<TABLE>
<CAPTION>
Three months ended Six months ended
December 31, December 31,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Weighted average number
of common shares 43,176 42,243 43,072 42,243
Common stock equivalents 1,205 769 1,205 769
Weighted average number of
common shares used in calculating
primary net income per share 44,381 43,012 44,277 43,012
Additional dilutive stock options 152 117 152 117
Shares used in calculating fully
diluted net income per share 44,533 43,129 44,429 43,129
Calculation of primary and fully
diluted net income per share:
Net income used in the
calculation of primary and
fully diluted net income per share $ 50,940 $ 22,756 $ 83,318 $ 40,350
Primary net income per share $ 1.15 $ 0.53 $ 1.88 $ 0.94
Fully diluted net income per share $ 1.14 $ 0.53 $ 1.88 $ 0.94
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE
SIX MONTHS ENDED DECEMBER 31, 1996 AND THE CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL POSITION AT DECEMBER 31, 1996 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> DEC-31-1996
<CASH> 157,868
<SECURITIES> 0
<RECEIVABLES> 290,245
<ALLOWANCES> (6,217)
<INVENTORY> 215,378
<CURRENT-ASSETS> 741,466
<PP&E> 391,845
<DEPRECIATION> (234,555)
<TOTAL-ASSETS> 998,347
<CURRENT-LIABILITIES> 449,017
<BONDS> 0
<COMMON> 45,600
0
0
<OTHER-SE> 308,380
<TOTAL-LIABILITY-AND-EQUITY> 998,347
<SALES> 606,527
<TOTAL-REVENUES> 606,527
<CGS> 308,303
<TOTAL-COSTS> 308,303
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 427
<INTEREST-EXPENSE> 1,289
<INCOME-PRETAX> 108,205
<INCOME-TAX> (24,887)
<INCOME-CONTINUING> 83,318
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 83,318
<EPS-PRIMARY> 1.88
<EPS-DILUTED> 1.88
</TABLE>
