<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
----------------------------------
WASHINGTON, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from_________________ to ________________
Commission File Number 0-20215
MICROTOUCH SYSTEMS, INC.
(Exact name of Registrant as specified in its Charter)
<TABLE>
<CAPTION>
<S> <C>
Massachusetts 04-2802971
- - ------------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
300 Griffin Park, Methuen, MA 01844
- - ----------------------------- -----
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number: 508-659-9000
- - ------------------------------ ------------
</TABLE>
Indicate by check mark whether the Registrant (1) has filed all reports 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 last 90 days.
Yes X No
------------- ------------
Indicate the number of shares outstanding of each of the Registrant's classes of
common stock as of the latest practical date.
As of July 24, 1996 there were outstanding: 7,695,741 shares of common stock of
the Registrant.
Total number of pages: 13
1
<PAGE>
MICROTOUCH SYSTEMS, INC. AND SUBSIDIARIES
INDEX
PART I FINANCIAL INFORMATION PAGE NO.
Item 1. Financial Statements
Consolidated Balance Sheets - June 30, 1996
and December 31, 1995 3
Consolidated Statements of Operations - Three and six
Months Ended June 30, 1996 and 1995 4
Consolidated Statement of Stockholders' Equity -
Six Months Ended June 30, 1996 5
Consolidated Statements of Cash Flows - Six
Months Ended June 30, 1996 and 1995 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders 11
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 12
Exhibit Index 13
2
<PAGE>
MICROTOUCH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN 000S EXCEPT SHARE DATA)
June 30, December 31,
1996 1995
---- ----
(Unaudited)
ASSETS
------
<TABLE>
<CAPTION>
Current assets:
<S> <C> <C>
Cash and cash equivalents.......................... $ 8,362 $ 5,706
Marketable securities.............................. 27,311 31,507
Accounts receivable, net of allowances of $3,340
at June 30, 1996 and $2,669 at December 31, 1995.. 14,430 12,759
Inventories........................................ 14,290 11,535
Deferred income taxes.............................. 4,943 5,311
Prepaid expenses and other current assets.......... 1,597 1,056
------ ------
Total current assets............................. 70,933 67,874
Property and equipment, net........................... 5,672 5,214
Other assets.......................................... 2,788 2,889
------ ------
$ 79,393 $ 75,977
====== ======
</TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Current liabilities:
<S> <C> <C>
Accounts payable................................... $ 7,122 $ 6,026
Accrued expenses................................... 7,004 6,476
------ ------
Total current liabilities........................ 14,126 12,502
Stockholders' equity
Preferred stock, $.01 par value per share--
500,000 shares authorized, none issued
and outstanding at June 30, 1996 and
December 31, 1995................................ --- ---
Common stock, $.01 par value per share--
authorized - 20,000,000 at June 30, 1996 and
December 31, 1995; 8,220,623 issued at June 30,
1996 and December 31, 1995....................... 82 82
Additional paid-in capital......................... 59,200 58,984
Treasury stock at cost -- 477,168 and 508,634
shares at June 30, 1996 and December 31, 1995.... (7,008) (7,513)
Nissha litigation costs............................ (1,737) (1,019)
Cumulative translation adjustment.................. (905) (648)
Net unrealized gain on securities available
for sale......................................... 76 142
Retained earnings.................................. 15,559 13,447
------ ------
Total stockholders' equity....................... 65,267 63,475
------ ------
$ 79,393 $ 75,977
====== ======
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
3
<PAGE>
MICROTOUCH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(AMOUNTS IN 000'S EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
-------------------- -------------------
1996 1995 1996 1995
------- ------- ------ ------
<S> <C> <C> <C> <C>
Net sales............................... $ 22,891 $ 20,723 $ 43,946 $ 39,528
Cost of sales........................... 14,268 13,042 27,397 24,374
--------- -------- -------- --------
Gross profit............................ 8,623 7,681 16,549 15,154
Operating expenses:
Research and development.............. 1,797 1,189 3,309 2,262
Sales and marketing................... 3,485 2,778 6,759 5,250
General and administrative............ 1,425 1,247 2,789 2,481
Amortization of intangible assets..... 112 83 223 171
Write-off of purchased technology and
related assets -- 1,985 -- 1,985
Purchased research and development and
related costs -- 3,000 -- 3,000
--------- -------- -------- --------
Total operating expenses........... 6,819 10,282 13,080 15,149
--------- -------- -------- --------
Operating income/(loss)................. 1,804 (2,601) 3,469 5
Other income............................ 476 408 778 1,238
--------- -------- -------- --------
Income/(loss) before provision/
(benefit) for income taxes............. 2,280 (2,193) 4,247 1,243
Provision/(benefit) for income taxes.... 832 (825) 1,550 467
--------- --------- -------- --------
Net income/(loss)....................... $ 1,448 $ (1,368) $ 2,697 $ 776
========= ======== ======== ========
Earnings/(loss) per share:
Primary.............................. $ 0.18 $ (0.17) $ 0.33 $ 0.09
Fully diluted........................ $ 0.18 $ (0.17) $ 0.33 $ 0.09
Weighted average common and common
equivalent shares:
Primary.............................. 8,122 8,192 8,071 8,693
Fully diluted........................ 8,122 8,192 8,104 8,693
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
4
<PAGE>
<TABLE>
<CAPTION>
MICROTOUCH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30,1996
(AMOUNTS IN 000S EXCEPT SHARE DATA)
Common Stock Additional Nissha Cumulative
---------------------- Paid-in Litigation Translation
Shares Amount Capital Costs Adjustment
----------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Balance December 31, 1995 8,220,623 $82 $58,984 $(1,019) $(648)
Exercise of stock options
Employee stock purchase plan
Compensation expense related
to common stock options 27
Effect of exchange rate changes (257)
Tax benefit related to exercise
of stock options and
disqualifying dispositions 189
Unrealized loss on securities
available for sale, net of tax
Nissha litigation costs (718)
Purchase of treasury stock
Net income
----------- ---------- ---------- ---------- -----------
Balance June 30, 1996 8,220,623 $82 $59,200 $(1,737) $(905)
=========== ========== ========== ========== ===========
<CAPTION>
Net Unrealized
Gain(Loss) On
Securities Treasury Stock Total
Available Retained ------------------ Stockholders'
for Sale Earnings Shares Amount Equity
--------- -------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
Balance December 31, 1995 $142 $13,447 (508,634) $(7,513) $63,475
Exercise of stock options (585) 55,693 818 233
Employee stock purchase plan 11,773 173 173
Compensation expense related
to common stock options 27
Effect of exchange rate changes (257)
Tax benefit related to exercise
of stock options and
disqualifying dispositions 189
Unrealized loss on securities
available for sale, net of tax (66) (66)
Nissha litigation costs (718)
Purchase of treasury stock (36,000) (486) (486)
Net income 2,697 2,697
--------- ------- ------- ------- ----------
Balance June 30, 1996 $ 76 $15,559 (477,168) $(7,008) $65,267
========= ======= ======= ======= ==========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
5
<PAGE>
MICROTOUCH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(AMOUNTS IN 000S)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
-------------------
1996 1995
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income $ 2,697 $ 776
Adjustments to reconcile net income to net cash provided
by (used in) operating activities--
Depreciation and amortization 827 815
Deferred income taxes 368 (2,120)
Compensation expense related to common stock
options 27 15
Write-off of purchased technology and related assets ---- 1,985
Purchased research and development and related costs ---- 3,000
(Increase) decrease in assets--
Accounts receivable (1,671) (3,791)
Inventories (2,755) 2,785
Prepaid expenses and other assets (578) (2,437)
Increase (decrease) in liabilities--
Accounts payable 1,096 (466)
Accrued expenses 528 (150)
------- -------
Net cash provided by operating activities 539 412
Cash flows provided by/(used in) investing activities:
Purchase of property and equipment, net (1,062) (853)
Sale and maturity of marketable securities 10,057 2,500
Purchase of marketable securities (6,012) (32,548)
Investments and acquisition of businesses, net of cash
acquired --- (401)
------- -------
Net cash provided by (used in) investing activities 2,983 (31,302)
Cash flows provided by financing activities:
Exercise of stock options and employee stock purchase
plan 406 302
Cost incurred related to the Nissha litigation (718)
Purchase of treasury stock (486)
Tax benefit from exercise of stock options and
disqualifying dispositions 189 471
------- -------
Net cash provided by (used in) financing activities (609) 773
Effect of exchange rates on cash (257) 483
------- -------
Net increase (decrease) in cash 2,656 (29,634)
Cash, beginning of period 5,706 43,613
------- -------
Cash, end of period $ 8,362 $ 13,979
======= =======
Supplemental disclosures of cash flow information:
Interest paid $ 32 $ 28
Income taxes paid $ 1,176 $ 2,475
======= =======
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
6
<PAGE>
MICROTOUCH SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1996
(1) Nature of Business
------------------
MicroTouch Systems, Inc. develops, manufactures and sells touch sensitive
input systems, including touch-sensitive screens, digitizers for pen computers
and kiosk enclosures.
(2) Consolidated Financial Statements
---------------------------------
The accompanying consolidated financial statements include the accounts of
MicroTouch Systems, Inc. and its wholly-owned subsidiaries (together, the
"Company"). All significant intercompany accounts, transactions and profits
have been eliminated.
(3) Interim Consolidated Financial Statements
-----------------------------------------
The accompanying consolidated financial statements as of June 30, 1996 and
for the three-and six-month periods ended June 30, 1996 and 1995 include the
accounts of the Company, and have not been audited by independent public
accountants; however, these statements, prepared in accordance with generally
accepted accounting principles, reflect, in the opinion of management, all
adjustments (consisting only of normal recurring accruals) necessary to present
fairly the financial position as of June 30, 1996, and the results of operations
for the three-month and six-month periods ended June 30, 1996 and 1995. The
results of operations for the three-month and six-month periods ended June 30,
1996 are not necessarily indicative of the results to be expected for the entire
year.
These consolidated financial statements do not include all disclosures
associated with annual consolidated financial statements and, accordingly,
should be read in conjunction with the footnotes contained in the Company's
Annual Report on Form 10-K for the year ended December 31, 1995.
(4) Earnings Per Share
------------------
Earnings per share data are computed using the weighted average number of
shares of common and dilutive common equivalent shares outstanding during the
year. Dilutive common equivalent shares consist of stock options and are
calculated using the treasury stock method.
7
<PAGE>
MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS:
The following table sets forth, for the fiscal periods indicated, the percentage
of net sales represented by certain items in MicroTouch's statements of
operations:
<TABLE>
<CAPTION>
PERCENTAGE OF TOTAL REVENUE
------------------------------
THREE MONTHS SIX MONTHS
ENDED JUNE 30, ENDED JUNE 30,
------------------------------
1996 1995 1996 1995
------ ------ ----- ------
<S> <C> <C> <C> <C>
Net Sales 100.0% 100.0% 100.0 100.0%
Cost of Sales 62.3 62.9 62.3 61.7
------ ------ ----- ------
Gross Profit 37.7 37.1 37.7 38.3
Operating Expenses:
Research & Development 7.9 5.7 7.6 5.7
Sales & Marketing 15.2 13.4 15.4 13.3
General & Administrative 6.2 6.0 6.3 6.3
Amortization of Intangible Assets .5 .4 .5 .4
Write-off of Purchased Technology and
Related Assets -- 9.6 --- 5.0
Purchased Research and Development
and Related Costs -- 14.5 --- 7.6
------ ------ ----- ------
Total Operating Expenses 29.8 49.6 29.8 38.3
------ ------ ----- ------
Operating Income/(Loss) 7.9 (12.5) 7.9 --
Other Income 2.1 2.0 1.8 3.1
------ ------ ----- ------
Income Before Provision/(Benefit) for
Income Tax 10.0 (10.5) 9.7 3.1
Net Income/(Loss) 6.3 (6.6) 6.1 2.0
</TABLE>
NET SALES Net sales in the quarter ended June 30, 1996 increased over the
corresponding period of 1995 by $2,168,000 or 10.5% to $22,891,000. For the
six-month period ended June 30, 1996, sales increased $4,418,000 or 11.2% to
$43,946,000. The increase in both the three-and six-month periods reflected
increases in international touchscreen sales, domestic sales in the gaming
market and kiosk sales.
GROSS PROFIT Gross profit for the three-and six-month periods ended June 30,
1996 was $8,623,000 and $16,549,000 respectively, and represents increases of
12.3% and 9.2% over the corresponding periods of 1995. As a percentage of net
sales, gross profit increased from 37.1% in the second quarter of 1995 to 37.7%
in the second quarter of 1996. The increase in second quarter gross margins
primarily reflects improved operating leverage in the kiosk business resulting
from increased revenue. For the six-month period ended June 30,1996, gross
profit, as a percentage of net sales, decreased to 37.7% from 38.3% in the same
period in 1995. This decrease resulted from a higher mix of lower margin
monitor revenue in the 1996 period.
8
<PAGE>
RESEARCH AND DEVELOPMENT Research and development expenses for the quarter
ended June 30, 1996 increased over the corresponding period of 1995 by $608,000
or 51.1%. As a percentage of net sales, research and development expenses
increased from 5.7% in the second quarter of 1995 to 7.9% in the second quarter
of 1996. For the six-month period ended June 30, 1996, research and development
spending increased $1,047,000 or 46.3% over the same period in 1995. The
increase in research and development expenses resulted primarily from new
product development related to the Company's recently announced Business
Products Division, as well as continuing development of the resistive membrane
technology, and the ThruGlass and TouchPen product lines. The Company expects
that research and development expenses may increase in the future on an absolute
spending basis.
SALES AND MARKETING Sales and marketing expenses in the quarter ended June 30,
1996 increased over the corresponding period of 1995 by $707,000 or 25.4%, to
$3,485,000. As a percentage of net sales, sales and marketing expenses
increased from 13.4% in the second quarter of 1995 to 15.2% in the second
quarter of 1996. For the six-month period ended June 30, 1996, sales and
marketing expenses increased by $1,509,000 or 28.7% to $6,759,000. As a
percentage of net sales, sales and marketing expenses increased from 13.3% in
the first six months of 1995 to 15.4% in the first six months of 1996. The
increase in sales and marketing expenses resulted primarily from the sales and
marketing costs associated with the launch of a new Internet kiosk product
(Prospector), the resistive membrane technology business acquired in 1995 and
the expenses resulting from the opening of two new international sales offices
in France and Germany.
GENERAL AND ADMINISTRATIVE General and administrative expenses for the quarter
ended June 30, 1996 increased from the corresponding period of 1995 by $178,000
or 14.3% to $1,425,000. For the six-month period ended June 30, 1996, general
and administrative expenses increased over the corresponding period of 1995 by
$308,000 or 12.4% to $2,789,000. As a percentage of net sales, general and
administrative expenses held constant at 6.3% for both the six-month periods
ended June 30, 1996 and 1995. The increase in spending reflects costs associated
with the expanding domestic and international operations.
AMORTIZATION OF INTANGIBLE ASSETS For the quarter ended June 30, 1996,
operating expenses included $112,000 of amortization relating to various
acquisitions and purchases of technologies, as compared to $83,000 for the
quarter ended June 30, 1995. For the six-month period ended June 30, 1996,
amortization expense was $223,000 as compared to $171,000 for the comparable
period of 1995.
WRITE-OFF OF PURCHASED TECHNOLOGY AND RELATED ASSETS During the second quarter
of 1995, the Company, as a result of an extensive technology review and a
strategic decision to focus on product development in the resistive technology
area rather than the TouchMate technology, recorded a one-time pretax charge of
$1,985,000. This charge included the write-off of the TouchMate technology and
the write down of related inventory to net realizable value.
CHARGE FOR PURCHASED RESEARCH AND DEVELOPMENT AND RELATED COSTS During the
second quarter of 1995, the Company expensed $3,000,000 of costs associated with
in-process research and development projects which were part of the acquisition
of Touch Technology.
OPERATING INCOME Operating income in the quarter ended June 30, 1996 of
$1,804,000 represented an increase of $4,405,000 over the loss recorded in the
second quarter of 1995, which included $4,985,000 of non-recurring charges as a
result of costs associated with the acquisition of the resistive membrane
technology business and the write-down of obsolete technology and inventories to
net realizable value as described above. For the six-month period ended June
30, 1996, operating income of $3,469,000 reflects an increase of $3,464,000 over
the comparable period of 1995, also reflecting these non-recurring charges.
9
<PAGE>
OTHER INCOME Other income in the quarter ended June 30, 1996 increased from
that of the corresponding period of 1995 by $68,000 or 16.7% to $476,000. Other
income in the second quarter of 1996 included $116,000 in foreign currency
exchange gains, primarily attributable to fluctuation in the British Pound
Sterling. Foreign currency exchange losses in the second quarter of 1995 were
$162,000. Interest income, net of interest expenses, on the investment of the
Company's cash and investment portfolio for the second quarter of 1996 was
$308,000, compared to $570,000 for the second quarter of 1995, reflecting
declining short-term interest rates and a decrease in the investment portfolio
used to support working capital requirements and repurchases of the Company's
common stock. For the six-month period ended June 30, 1996, other income
reflects a decrease from the comparable period of 1995 by $460,000 or 37.2% to
$778,000 due primarily to decreased interest income as described above.
PROVISION FOR INCOME TAXES The Company's effective tax rate for both the three-
and six-month periods ended June 30, 1996 was 36.5% as compared to 37.6% for the
comparable periods of 1995. The effective tax rates in all periods differed
from the federal statutory rate of 34% primarily as a result of the provision
for state income taxes and the inability of the Company to record a tax benefit
from certain foreign operating loss carryforwards, partially offset by the
benefit related to the Company's foreign sales corporation and tax-exempt
interest income.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 1996, the Company had net working capital of $56,807,000,
including approximately $35,673,000 in cash, cash equivalents and marketable
securities. The Company reported a net cash generated by operating activities
of $539,000 for the six months ended June 30, 1996. Additionally, the Company
maintains a $3,000,000 bank line of credit. As of June 30, 1996, the Company
had no borrowings under its bank line of credit.
In September, 1995, the Board of Directors of the Company authorized a one-year
repurchase program of the Company's common stock, not to exceed $10 million.
Through June 30, 1996 the Company repurchased 552,000 shares at an aggregate
cost of $8,119,000. These shares have been and will be used for the Company's
stock option plan, employee stock purchase plan and for other corporate
purposes, including possible acquisitions.
Pending operating needs, the Company has invested its cash in investment grade,
short-term, interest bearing securities and preferred stock. The Company
believes that these cash investments, together with anticipated cash flows from
operations pursuant to its current operating plan, will be sufficient to meet
the Company's working capital and capital expenditure requirements, at least
through 1997. While the Company regularly evaluates acquisition candidates,
conducts preliminary discussions regarding acquisitions and intends to pursue
acquisition opportunities available to it, there can be no assurance that any
such acquisition will be made.
The discussion contained in this section, as well as elsewhere in this Form 10-
Q, may contain forward-looking statements based on the current expectations of
the Company's management. Such statements are subject to certain risks and
uncertainties which could cause actual results to differ materially from those
projected. Readers are cautioned not to place undue reliance on these forward-
looking statements which speak only as of the date hereof. The Company
undertakes no obligation to publicly release any revisions to these forward-
looking statements which may be necessary to reflect events or circumstances
occurring after the date hereof or to reflect the occurrence of unanticipated
events.
10
<PAGE>
PART II OTHER INFORMATION
ITEM 4. Submission of matters to a vote of security holders.
At the Annual Meeting of Stockholders held on June 13, 1996, the Company's
stockholders voted as follows:
<TABLE>
<CAPTION>
a) To reelect Messrs. D. Westervelt Davis and Frank Manning to the Board of Directors for
respective three-year terms.
The terms of Messrs. James D. Logan, Ronald Fisher and J. Edward Stewart, III as directors
continued after the meeting.
<S> <C> <C>
Total Vote for Total Vote Withheld
Each Nominee For Each Nominee
-------------- -------------------
D. Westervelt Davis 6,890,217 57,288
Frank Manning 6,894,708 52,797
b) To approve Arthur Andersen LLP as independent auditors of the Company for the year ending
December 31, 1996.
Total Vote for the Proposal 6,900,001
Total Vote Against the Proposal 27,253
Abstentions 20,251
</TABLE>
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.
MicroTouch Systems, Inc.
Dated: August 9, 1996 BY:/s/Geoffrey P. Clear
--------------------
Geoffrey P. Clear
Vice President -
Finance & Administration,
Chief Financial Officer &
Treasurer
12
<PAGE>
EXHIBIT INDEX
-------------
Exhibit
- - -------
27 Financial Data Schedule
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1996
<PERIOD-START> APR-01-1996 JAN-01-1996
<PERIOD-END> JUN-30-1996 JUN-30-1996
<CASH> 8,362 0
<SECURITIES> 27,311 0
<RECEIVABLES> 17,770 0
<ALLOWANCES> 3,340 0
<INVENTORY> 14,290 0
<CURRENT-ASSETS> 70,933 0
<PP&E> 9,961 0
<DEPRECIATION> 4,289 0
<TOTAL-ASSETS> 79,393 0
<CURRENT-LIABILITIES> 14,126 0
<BONDS> 0 0
0 0
0 0
<COMMON> 82 0
<OTHER-SE> 65,185 0
<TOTAL-LIABILITY-AND-EQUITY> 79,393 0
<SALES> 22,891 43,946
<TOTAL-REVENUES> 22,891 43,946
<CGS> 14,268 27,397
<TOTAL-COSTS> 14,268 27,397
<OTHER-EXPENSES> 6,252 12,120
<LOSS-PROVISION> 75 150
<INTEREST-EXPENSE> 16 32
<INCOME-PRETAX> 2,280 4,247
<INCOME-TAX> 832 1,550
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1,448 2,697
<EPS-PRIMARY> 0.18 0.33
<EPS-DILUTED> 0.18 0.33
</TABLE>
