<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
----------------------------------
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
[_] 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: 978-659-9000
- ------------------------------ ------------
</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 April 30, 1998 there were outstanding: 7,826,296 shares of common stock of
the Registrant.
Total number of pages: 12
<PAGE>
MICROTOUCH SYSTEMS, INC. AND SUBSIDIARIES
INDEX
PAGE NO.
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - March 31, 1998
and December 31, 1997 3
Consolidated Statements of Operations - Three
Months Ended March 31, 1998 and 1997 4
Consolidated Statement of Stockholders' Equity -
Three Months Ended March 31, 1998 5
Consolidated Statements of Cash Flows - Three
Months Ended March 31, 1998 and 1997 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
PART II OTHER INFORMATION
Item 1. Legal Proceedings 11
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 12
2
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MICROTOUCH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN 000S EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
-------- --------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents...................................... $ 5,900 $ 9,477
Marketable securities.......................................... 25,808 25,274
Accounts receivable, net of allowances of $5,291 at March 31,
1998 and $5,169 at December 31, 1997.......................... 21,178 17,348
Inventories.................................................... 18,486 9,075
Deferred income taxes.......................................... 5,777 6,869
Prepaid expenses and other current assets...................... 1,076 1,111
-------- --------
Total current assets........................................ 78,225 9,154
Property and equipment, net....................................... 14,194 3,308
Other assets...................................................... 2,798 2,375
-------- --------
$ 95,217 $ 94,837
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable............................................... $ 6,294 $ 5,849
Accrued expenses................................................ 9,876 10,040
-------- --------
Total current liabilities................................ 16,170 15,889
Commitments and contingencies
Stockholders' equity
Preferred stock, $.01 par value per share--
500,000 shares authorized, none issued and outstanding
at March 31, 1998 and December 31, 1997................... -- --
Common stock, $.01 par value per share--authorized -
20,000,000 at March 31, 1998 and December 31, 1997;
8,220,623 issued at March 31, 1998 and December 31,
1997...................................................... 82 82
Additional paid-in capital...................................... 62,139 61,963
Treasury stock at cost 414,549 and 220,049 shares at March
31, 1998 and December 31, 1997............................... (6,271) (3,333)
Other comprehensive income (loss)............................... (416) (1,007)
Retained earnings............................................... 23,513 21,243
-------- --------
Total stockholders' equity.............................. 79,047 78,948
-------- --------
$ 95,217 $ 94,837
======== ========
</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
MARCH 31,
---------------------------------
1998 1997
------------ -------------
<S> <C> <C>
Net sales.................................................. $ 35,727 $ 30,076
Cost of sales.............................................. 22,834 18,728
------------ -------------
Gross profit............................................. 12,893 11,348
Operating expenses:
Research and development................................. 2,314 1,827
Sales and marketing...................................... 5,142 4,690
General and administrative............................... 2,273 1,876
Amortization of intangible assets........................ 134 119
------------ -------------
Total operating expenses.............................. 9,863 8,512
------------ -------------
Operating income......................................... 3,030 2,836
Other income............................................... 308 378
------------ -------------
Income before provision for income taxes................... 3,338 3,214
Provision for income taxes................................. 1,068 1,157
------------ -------------
Net income................................................. $ 2,270 $ 2,057
============ =============
Earnings per share:
Basic.................................................... $ 0.29 $ 0.26
Diluted.................................................. $ 0.28 $ 0.25
Weighted average common shares and dilutive potential
common shares outstanding:
Basic.................................................... 7,866 7,815
Diluted.................................................. 8,132 8,250
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
4
<PAGE>
MICROTOUCH SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31,1998
(AMOUNTS IN 000S EXCEPT SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
Common Stock Additional Other
----------------------- Paid-in Comprehensive Retained
Shares Amount Capital Income (Loss) Earnings
--------- ---------- ----------- ------------- ---------
<S> <C> <C> <C> <C> <C>
Balance December 31, 1997 8,220,623 $ 82 $ 61,963 $ (1,007) $ 21,243
Exercise of stock options
Compensation expense related
to common stock options 176
Effect of exchange rate changes 597
Unrealized loss on securities
available for sale, net of tax (6)
Purchase of treasury stock
Net income 2,270
--------- --------- ---------- ----------- ---------
Balance March 31, 1998 8,220,623 $ 82 $ 62,139 $ (416) $ 23,513
========= ========= ========== =========== =========
<CAPTION>
Treasury Stock Total
--------------------- Stockholders
Shares Amount Equity
-------- ----------- -------------
<S> <C> <C> <C>
Balance December 31, 1997 (220,049) $(3,333) $78,948
Exercise of stock options 500 3 3
Compensation expense related
to common stock options 176
Effect of exchange rate changes 597
Unrealized loss on securities
available for sale, net of tax (6)
Purchase of treasury stock (195,000) (2,941) (2,941)
Net income 2,270
--------- ----------- -------------
Balance March 31, 1998 (414,549) $(6,271) $79,047
========= =========== =============
</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>
THREE MONTHS ENDED
MARCH 31,
----------------------------
1998 1997
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 2,270 $ 2,057
Adjustments to reconcile net income to net cash provided by
(used in) operating activities--
Depreciation and amortization 1,056 675
Deferred income taxes 1,092 (15)
Compensation expense related to common stock
options 176 8
(Increase) decrease in assets--
Accounts receivable (3,830) (3,474)
Inventories 589 (3,606)
Prepaid expenses and other assets (521) (590)
Increase (decrease) in liabilities--
Accounts payable 445 2,726
Accrued expenses (164) (754)
Net cash provided by (used in) operating activities 1,113 (2,973)
Cash flows provided by(used in) investing activities:
Purchase of property and equipment, net (1,759) (1,852)
Sale and maturity of marketable securities 3,825 6,647
Purchase of marketable securities (4,415) (3,525)
----------- -----------
Net cash provided by(used in) investing activities (2,349) 1,270
Cash flows provided by financing activities:
Exercise of stock options 3 971
Purchase of treasury stock (2,941) ---
Tax benefit from exercise of stock options and
Disqualifying dispositions --- 970
----------- -----------
Net cash provided by (used in) financing activities (2,938) 1,941
Effect of exchange rates on cash 597 (298)
----------- -----------
Net (decrease) in cash (3,577) (60)
Cash, beginning of period 9,477 9,818
Cash, end of period $ 5,900 $ 9,75
----------- -----------
Supplemental disclosures of cash flow information:
Interest paid $ 6 $ 91
=========== ===========
Income taxes paid $ 20 $ 548
=========== ===========
</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
MARCH 31, 1998
(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, as well as electronic digital PC-based
whiteboards.
(2) Consolidated Financial Statements
---------------------------------
The accompanying consolidated financial statements include the
accounts of MicroTouch Systems, Inc. and its wholly-owned subsidiaries (the
Company). All significant intercompany accounts, transactions and profits have
been eliminated.
(3) Interim Consolidated Financial Statements
-----------------------------------------
The accompanying consolidated financial statements as of March 31,
1998 and for the three- month periods ended March 31, 1998 and 1997 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 march 31, 1998, and the results of
operations and cash flows for the three-month periods ended March 31, 1998 and
1997. The results of operations for the three-month period ended March 31, 1998
are not necessarily indicative of the results to be expected for any other
interim period or 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, 1997.
(4) Earnings Per Share
------------------
Basic earnings per share data are computed using the weighted average
number of common shares outstanding during the year. Diluted earnings per share
are computed using the weighted average number of common shares outstanding
during the year and dilutive potential common shares. Dilutive potential common
shares consist of stock options and are calculated using the treasury stock
method.
Effective January 1, 1997 the Company adopted the provisions of
Statement of Financial Accounting Standards (SFAS) No. 128, Earnings Per Share.
The calculation of basic and diluted earnings per share is as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1998 1997
----------- -----------
<S> <C> <C>
BASIC EARNINGS PER SHARE
Net Income: $2,270,000 $2,057,000
----------- -----------
Weighted Average Common Shares
Outstanding: 7,866,000 7,815,000
----------- -----------
Basic Earnings Per Share $0.29 $0.26
=========== ===========
DILUTED EARNINGS PER SHARE
Net Income: $2,270,000 $2,057,000
----------- -----------
Weighted Average Common Shares
Outstanding: 7,866,000 7,815,000
Weighted Average Number of Dilutive
Potential Common Shares: 266,000 435,000
----------- -----------
Weighted Average Number of Shares
Outstanding as Adjusted: 8,132,000 8,250,000
----------- -----------
Diluted Earnings Per Share $0.28 $0.25
============ ===========
</TABLE>
(5) Recent Accounting Pronouncements
--------------------------------
Effective January 1, 1998 the Company adopted the provisions of SFAS No. 130,
Reporting Comprehensive Income, which establishes standards for the reporting
and display of comprehensive income and its components in the financial
statements. Comprehensive income includes all changes in a company's equity
including, among other things, foreign currency translation adjustments and
unrealized gains and losses on marketable securities classified as available-
for-sale. Because cumulative translation adjustments are considered a component
of permanently invested unremitted earnings of subsidiaries outside of the
United States, no taxes are provided on such amounts. The Company's
comprehensive income for the three months ended March 31, 1998 and 1997 were
as follows ( in thousands):
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
------------------------------
1998 1997
----------- -----------
<S> <C> <C>
Net Income $ 2,270 $ 2,057
Currency translation adjustment 597 (298)
Unrealized gain ( loss ) on marketable securities,
net of tax (6) (32)
----------- -----------
Comprehensive Income $ 2,861 $ 1,727
=========== ===========
</TABLE>
7
<PAGE>
The accumulated balances for the components of Other comprehensive Income are:
<TABLE>
<CAPTION>
Unrealized Accumulated
Foreign (Loss) Other
Currency On Marketable Comprehensive
Translation Securities Income
--------------------- --------------------- --------------------
<S> <C> <C> <C>
Balance December 31, 1996 $ (533) $ 105 $ (428)
Change in Period (298) (32) (330)
--------- --------- ---------
Balance March 31, 1997 (831) 73 (758)
========= ========= =========
Balance December 31, 1997 (1,091) 84 (1,007)
Change in Period 597 (6) (591)
--------- --------- ---------
Balance March 31, 1998 $ (494) $ 78 $ (416)
========= ========= =========
</TABLE>
For the year ended December 31, 1998 the Company will adopt the provisions of
SFAS No. 131, Disclosures about Segments of an Enterprise and Related
Information. SFAS No. 131 establishes standards for the way that public business
enterprises report information about operating segments in annual financial
statements and requires that those enterprises report selected information about
operating segments in interim financial reports issued to shareholders. It also
establishes standards for related disclosures about products and services,
geographic areas, and major customers. Financial statement disclosures for prior
periods are required to be restated. Touch input devices are the sole reportable
segment in the Company's financial statements based on the Company's business at
the present time. The adoption of SFAS No. 131 will not have a material impact
on the Company's consolidated results of operations, financial position or cash
flows.
8
<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
QUARTER ENDED MARCH 31,
--------------------------------
1998 1997
---- ----
<S> <C> <C>
Net Sales 100.0% 100.0%
Cost of Sales 63.9 62.3
--------- ---------
Gross Profit 36.1 37.7
Operating Expenses:
Research & Development 6.5 6.1
Sales & Marketing 14.4 15.6
General & Administrative 6.3 6.2
Amortization of Intangible Assets 0.4 0.4
--------- ---------
Total Operating Expenses 27.6 28.3
Operating Income 8.5 9.4
Other Income 0.8 1.3
Income Before Provision for Income Tax 9.3 10.7
Net Income 6.4% 6.8%
</TABLE>
NET SALES Net sales in the quarter ended March 31, 1998 increased over the
corresponding period of 1997 by $5,651,000 or 19%. The increase in net sales
was largely due to the expansion of the Company's distribution channels
throughout Europe in all geographic markets and applications and to increased
sales volume of its electronic whiteboard Ibid. International sales accounted
for 52% of net sales for the period, representing an increase from 37% in the
first quarter of 1997, again primarily due to increased sales volume in Europe.
The effects of foreign exchange rate fluctuations did not have a significant
impact on the Company's operating results during the period.
GROSS PROFIT Gross profit in the quarter ended March 31, 1998 increased from
the corresponding period of 1997 by $1,545,000 or 14% to $12,893,000. As a
percentage of net sales, gross profit decreased from 37.7% in the first quarter
of 1997 to 36.1% in the first quarter of 1998. While the gross profits in the
Company's touchscreen business was consistent with prior periods, the overall
gross profit percent decline reflects relatively lower margins in the Company's
Business Products Division, as well as decreased margins in the Factura kiosk
business where a decline in quarterly sales revenue led to reduced operating
leverage as compared to past quarters.
RESEARCH AND DEVELOPMENT Research and development expenses for the quarter
ended March 31, 1998 increased over the corresponding period of 1997 by $487,000
or 27%. As a percentage of net sales, research and development expenses
increased from 6.1% in the first quarter of 1997 to 6.5% in the first quarter of
1998. The increase in research and development expenses resulted primarily from
continued development projects focused on core touchscreen technologies.
SALES AND MARKETING Sales and marketing expenses in the quarter ended March 31,
1998 increased over the corresponding period of 1997 by $452,000 or 10%, to
$5,142,000. The increase in sales and
9
<PAGE>
marketing expenses resulted primarily from a general increase in spending levels
to support sales growth, including commissions on increased sales levels and
increased marketing programs designed to generate opportunities and expand
market share in the Company's core touchscreen business.
GENERAL AND ADMINISTRATIVE General and administrative expenses in the quarter
ended March 31, 1998 increased from the corresponding period of 1997 by $397,000
or 21% to $2,273,000. As a percentage of net sales, general and administrative
expense increased slightly from 6.2% for the first quarter of 1997 to 6.3% for
the first quarter of 1998. The increased spending primarily reflects the
ongoing administrative expenses associated with expanding the infrastructure to
support continued growth.
AMORTIZATION OF INTANGIBLE ASSETS For the quarter ended March 31, 1998,
operating expenses included $134,000 of amortization relating to various
acquisitions and purchases of technologies, as compared to $119,000 for the
quarter ended March 31, 1997.
OPERATING INCOME Operating income in the quarter ended March 31, 1998 increased
from the corresponding period of 1997 by $194,000 or 7% to $3,030,000. As a
percentage of net sales, operating income decreased from 9.4% in the first
quarter of 1997 to 8.5% for the first quarter of 1998. The decrease in operating
income is primarily the result of the gross margin percent decrease discussed
above partially offset by increased operating leverage from operating expenses.
International operating income in the quarter ended March 31, 1998 increased
significantly over the same period last year.
OTHER INCOME Other income in the quarter ended March 31, 1998 decreased from
the corresponding period of 1997 by $70,000 or 19% to $308,000. This decrease
was primarily due to a foreign currency loss of $56,000 as compared to a $41,000
gain in 1997. Interest income, net of interest expenses, on the Company's cash
and investment portfolio for the first quarter of 1998 was $364,000 compared to
$319,000 for the first quarter of 1997, reflecting an increase in investment
yields and an increase in the average investment balance of the Company's bond
portfolio.
PROVISION FOR INCOME TAXES The Company's effective tax rates were 32.0% and
36.0%, in the first quarter of 1998 and 1997, respectively. The decrease in the
effective rate is due to the Company's ability to generate operating profits in
its international businesses. The effective tax rates in both periods differed
from the federal statutory rate of 34% primarily as a result of the provision
for state income taxes offset by the benefit related to the Company's foreign
sales corporation and tax exempt interest income.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 1998, the Company had net working capital of $62,055,000,
including approximately $31,708,000 in cash, cash equivalents and marketable
securities. The Company reported net cash provided by operations of $1,113,000
for the quarter ended March 31, 1998. The use of cash was required to support
the expanding touchscreen business. During the quarter the Company purchased
200,000 shares of treasury stock at a cost of approximately $3 million.
Additionally, the Company maintains bank lines of credit totaling $3,250,000. As
of March 31, 1998, the Company had no borrowings under its bank lines of credit.
In December, 1997 the Board of Directors of the Company authorized a repurchase
program of the Company's common stock, not to exceed $5 million. Under the
program the Company has repurchased approximately 220,000 shares at an aggregate
cost of $3.3 million. These shares have been and will be used for the Company's
stock option plan, employee stock purchase plan and for other corporate
purposes, possibly including acquisitions.
During the current quarter the Company invested $1,759,000 in capital
expenditures. Major capital expenditures included investment in the Company's
touchscreen manufacturing operations and computer information systems to support
the infrastructure of its expanding worldwide operations.
10
<PAGE>
Pending operational needs, the Company has invested its cash in investment
grade, interest-bearing securities. 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 1999. 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 or if any such acquisition is completed, that cash
consideration will be offered by the Company.
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 the result of any revisions to
these forward-looking statements which may be made to reflect events or
circumstances occurring after the date hereof or to reflect the occurrence of
unanticipated events.
READINESS FOR YEAR 2000
The Company has taken actions to understand the nature and extent of the work
required to make its systems, products and infrastructure Year 2000 compliant.
The Company continues to evaluate the estimated costs associated with this work
as actual information becomes available. Based on available information, the
Company believes that it will be able to manage its total Year 2000 transition
without any material adverse effect on its business operations, products,
operating results or financial condition.
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) 27. Financial Data Schedule. Filed herewith.
(b) 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: May 14, 1998
BY: /s/Geoffrey P. Clear
--------------------------------
Geoffrey P. Clear
Vice President -
Finance & Administration,
Chief Financial Officer &
Treasurer
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 5,900
<SECURITIES> 25,808
<RECEIVABLES> 26,469
<ALLOWANCES> 5,291
<INVENTORY> 18,486
<CURRENT-ASSETS> 78,225
<PP&E> 22,272
<DEPRECIATION> 8,078
<TOTAL-ASSETS> 95,287
<CURRENT-LIABILITIES> 16,170
<BONDS> 0
0
0
<COMMON> 82
<OTHER-SE> 78,965
<TOTAL-LIABILITY-AND-EQUITY> 95,217
<SALES> 35,727
<TOTAL-REVENUES> 35,727
<CGS> 22,834
<TOTAL-COSTS> 22,834
<OTHER-EXPENSES> 9,524
<LOSS-PROVISION> 25
<INTEREST-EXPENSE> 6
<INCOME-PRETAX> 3,338
<INCOME-TAX> 1,068
<INCOME-CONTINUING> 2,270
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,270
<EPS-PRIMARY> .29
<EPS-DILUTED> .28
</TABLE>
