<PAGE> 1
================================================================================
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 APRIL 2, 1995
OR
[ ] 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 1-9632
AMRE, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 75-2041737
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
8585 N. STEMMONS FREEWAY, SOUTH TOWER 75247
DALLAS, TEXAS (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code (214) 658-6300
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
----- -----
As of May 5, 1995, there were 12,849,822 shares of the registrant's
stock, $.01 par value, outstanding.
================================================================================
<PAGE> 2
INDEX
PART I. FINANCIAL INFORMATION
<TABLE>
<CAPTION>
PAGE NO.
--------
<S> <C> <C>
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED):
Consolidated Balance Sheet - April 2, 1995 and December 31, 1994 . . . . . . . . . . . . . . . 1
Consolidated Statement of Operations - Quarterly periods ended April 2, 1995
and March 27, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Consolidated Statement of Cash Flows - Quarterly periods ended April 2, 1995
and March 27, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statement of Changes in Stockholders' Equity - Quarterly period
ended April 2, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . 5
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
</TABLE>
_____________
Note: Items 2 through 5 of Part II are omitted because they are not
applicable.
<PAGE> 3
ITEM 1. FINANCIAL STATEMENTS
AMRE, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
ASSETS
<TABLE>
<CAPTION>
APRIL 2, DECEMBER 31,
1995 1994
-------------- ------------
<S> <C> <C>
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . $ 7,327 $ 7,927
Marketable securities, including restricted securities of
$1,250 and $1,250 . . . . . . . . . . . . . . . . . . . . . . . . 12,676 19,370
Accounts receivable:
Trade, net of allowance for doubtful accounts of $832 and $1,098 8,100 6,792
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 502 612
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 2,976 575
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,854 5,538
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . 1,767 1,767
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . 5,381 4,698
-------------- ------------
Total current assets . . . . . . . . . . . . . . . . . . . . 44,583 47,279
Property, plant and equipment, net . . . . . . . . . . . . . . . . . 5,907 6,251
Goodwill, less accumulated amortization of $1,665 and $1,597 . . . . 9,240 9,308
Notes receivable - related parties . . . . . . . . . . . . . . . . . 4,217 4,217
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,689 1,772
-------------- ------------
$ 65,636 $ 68,827
============== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,571 $ 18,645
Wages, commissions and bonuses . . . . . . . . . . . . . . . . . . 5,362 4,098
Accrued workers' compensation . . . . . . . . . . . . . . . . . . . 1,731 2,021
Other accrued liabilities . . . . . . . . . . . . . . . . . . . . . 10,843 10,653
-------------- ------------
Total current liabilities . . . . . . . . . . . . . . . . . . 36,507 35,417
-------------- ------------
Commitments and contingencies
Stockholders' equity:
Preferred stock - $.10 par value, 1,000,000 shares
authorized; none outstanding . . . . . . . . . . . . . . . . . . -- --
Common stock - $.01 par value, 20,000,000 shares
authorized, 14,072,020 shares issued; 12,849,822
and 12,849,822 shares outstanding . . . . . . . . . . . . . . . . 141 141
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . 22,400 22,400
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . 16,889 21,170
-------------- ------------
39,430 43,711
Less: Treasury stock, at cost 1,222,198 and 1,222,198 shares . . . (10,301) (10,301)
-------------- ------------
Total stockholders' equity . . . . . . . . . . . . . . . . . 29,129 33,410
-------------- ------------
$ 65,636 $ 68,827
============== ============
</TABLE>
See accompanying Notes to Consolidated Financial Statements and
Management's Discussion and Analysis of Financial Condition and Results of
Operations.
1
<PAGE> 4
0 AMRE, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
QUARTER ENDED
--------------------------------------
APRIL 2, 1995 MARCH 27, 1994
-------------- ---------------
<S> <C> <C>
Contract revenues . . . . . . . . . . . . . . . . . . . . . . . . . $ 60,885 $ 52,125
Contract costs . . . . . . . . . . . . . . . . . . . . . . . . . . 20,525 16,884
-------------- ---------------
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,360 35,241
-------------- ---------------
Branch operating expenses . . . . . . . . . . . . . . . . . . . . . 4,795 4,478
Marketing expenses . . . . . . . . . . . . . . . . . . . . . . . . 17,958 15,547
Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . 12,047 9,893
Sears license fees . . . . . . . . . . . . . . . . . . . . . . . . 7,274 6,031
General and administrative expenses . . . . . . . . . . . . . . . . 4,981 4,524
-------------- ---------------
47,055 40,473
-------------- ---------------
Operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . (6,695) (5,232)
Investment income . . . . . . . . . . . . . . . . . . . . . . . . . 287 272
Other income (expense) . . . . . . . . . . . . . . . . . . . . . . 74 69
-------------- ---------------
Loss before income taxes . . . . . . . . . . . . . . . . . . . . . (6,334) (4,891)
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,439) (1,907)
-------------- ---------------
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (3,895) $ (2,984)
============== ===============
Net loss per share . . . . . . . . . . . . . . . . . . . . . . . . $ (.29) $ (.23)
============== ===============
Cash dividends declared per share . . . . . . . . . . . . . . . . . $ .03 $ .03
============== ===============
Weighted average shares outstanding . . . . . . . . . . . . . . . . 13,306 12,851
============== ===============
</TABLE>
See accompanying Notes to Consolidated Financial Statements and
Management's Discussion and Analysis of Financial Condition and Results of
Operations.
2
<PAGE> 5
AMRE, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
QUARTER ENDED
--------------------------------------
APRIL 2, 1995 MARCH 27, 1994
------------- --------------
<S> <C> <C>
CASH FLOWS FROM OPERATIONS:
Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (3,895) $ (2,984)
------------ ------------
Adjustments to reconcile net loss to net cash
used in operations:
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . (2,439) (1,907)
Depreciation and amortization . . . . . . . . . . . . . . . . . 727 815
Provision for doubtful accounts . . . . . . . . . . . . . . . . (137) 197
Other non-cash items . . . . . . . . . . . . . . . . . . . . . 32 26
Cash receipts of (payments for) income taxes . . . . . . . . . -- 2
Changes in assets and liabilities:
Accounts receivable and other . . . . . . . . . . . . . . . . (1,061) 1,160
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . (316) 115
Prepaid expenses and other assets . . . . . . . . . . . . . . (600) (924)
Accounts payable . . . . . . . . . . . . . . . . . . . . . . (74) 701
Other liabilities . . . . . . . . . . . . . . . . . . . . . . 1,202 (326)
------------ ------------
Total adjustments . . . . . . . . . . . . . . . . . . . . . . . . (2,666) (141)
------------ ------------
Net cash used in operations . . . . . . . . . . . . . . . . . . . (6,561) (3,125)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of marketable securities . . . . . . . . . . . . . . . . . 16,465 7,491
Purchase of marketable securities . . . . . . . . . . . . . . . (9,804) (290)
Capital expenditures . . . . . . . . . . . . . . . . . . . . . (314) (189)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- 20
------------ ------------
Net cash provided by investing activities . . . . . . . . . . . . 6,347 7,032
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . (386) (386)
------------ ------------
Net cash used in financing activities . . . . . . . . . . . . . . (386) (386)
------------ ------------
Net change in cash and cash equivalents . . . . . . . . . . . . . (600) 3,521
Cash and cash equivalents at beginning of period . . . . . . . . 7,927 1,333
------------ ------------
Cash and cash equivalents at end of period . . . . . . . . . . . $ 7,327 $ 4,854
============ ============
</TABLE>
See accompanying Notes to Consolidated Financial Statements and
Management's Discussion and Analysis of Financial Condition and Results of
Operations.
3
<PAGE> 6
AMRE, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
COMMON STOCK ADDITIONAL TREASURY STOCK
----------------------- PAID-IN RETAINED -----------------------
SHARES AMOUNT CAPITAL EARNINGS SHARES AMOUNT
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1994 . . . . 14,072 $ 141 $ 22,400 $ 21,170 (1,222) $(10,301)
Dividends . . . . . . . . . . . . -- -- -- (386) -- --
Net loss . . . . . . . . . . . . -- -- -- (3,895) -- --
--------- --------- --------- -------- --------- ---------
Balance, April 2, 1995 . . . . . . 14,072 $ 141 $ 22,400 $ 16,889 (1,222) $(10,301)
======== ======== ======== ======== ======== ========
</TABLE>
4
<PAGE> 7
AMRE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
APRIL 2, 1995
NOTE 1 - UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Basis of presentation - The accompanying interim consolidated financial
statements of AMRE, Inc. (the "Company") as of April 2, 1995 and for the
quarterly periods ended April 2, 1995 and March 27, 1994 are unaudited;
however, in the opinion of management, these interim statements include all
adjustments, consisting only of normal recurring adjustments, necessary for a
fair presentation of the financial position, results of operations and cash
flows. These financial statements should be read in conjunction with the
consolidated financial statements and related notes included in the Company's
December 31, 1994 Annual Report on Form 10-K.
Reclassifications - Reclassifications have been made to the prior period
statements to conform to the current presentation.
Fiscal period - The Company's quarterly periods end on the Sunday nearest
to the last day in the calendar quarter except at year end which is December
31.
NOTE 2 - COMMITMENTS AND CONTINGENCIES
The Company is a party to certain legal proceedings arising in the ordinary
course of business, none of which is believed to be material to the financial
position of the Company.
The Company has a credit agreement with a bank under which it has a standby
letter of credit in the amount of approximately $1.2 million issued in
connection with the Company's workers' compensation and general liability
insurance plans. The Company has set aside, in a restricted collateral
account, marketable securities equivalent to the amount of the standby letter
of credit.
The Company has agreements with financial institutions which make financing
available to the Company's customers. The customer executes a Revolving Credit
Agreement with the lender and the lender pays the Company on completion of the
installation. The Company assumes some recourse liability or credit risk in
certain of these transactions, in addition to normal representations and
warranties regarding material and workmanship, if customer defaults exceed
specified levels. The Company has provided a reserve for estimated losses on
these agreements.
NOTE 3 - DIVIDENDS DECLARED
On March 6, 1995, the Company declared a cash dividend of $.03 per share,
payable on April 28, 1995, to stockholders of record on March 24, 1995.
5
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The Company is engaged, under a license from Sears Roebuck and Co.
("Sears"), in direct marketing, sales and installation of siding and related
exterior home improvement products, kitchen cabinet refacing and custom
countertops, replacement windows, and in certain of its territories, exterior
coating. The business of the Company is characterized by the need to
continuously generate prospective customer leads, and in this respect,
marketing and selling expenses constitute a substantial portion of the overall
expense of the Company.
To assist in understanding the Company's operating results, the following
table indicates the percentage relationship of various income and expense items
included in the Statement of Operations for the quarterly periods ended April
2, 1995 and March 27, 1994.
<TABLE>
<CAPTION>
PERCENTAGE OF CONTRACT REVENUES
QUARTERS ENDED
------------------------------
APRIL 2, MARCH 27,
1995 1994
-------- ---------
<S> <C> <C>
Contract revenues . . . . . . . . . . . 100.0% 100.0%
Contract costs . . . . . . . . . . . . 33.7 32.4
----- -----
Gross profit . . . . . . . . . . . . . 66.3 67.6
----- -----
Branch operating expenses . . . . . . . 7.9 8.6
Marketing expenses . . . . . . . . . . 29.5 29.8
Selling expenses . . . . . . . . . . . 19.8 19.0
Sears license fees . . . . . . . . . . 11.9 11.5
General and administrative expenses . . 8.2 8.7
----- -----
Loss from operations . . . . . . . . . (11.0) (10.0)
Other income and expense, net . . . . . .6 .6
----- -----
Loss before income taxes . . . . . . . (10.4) (9.4)
Income taxes . . . . . . . . . . . . . (4.0) (3.7)
----- -----
Net loss . . . . . . . . . . . . . . . (6.4)% (5.7)%
===== =====
</TABLE>
RESULTS OF OPERATIONS
QUARTER ENDED APRIL 2, 1995 COMPARED WITH THE QUARTER ENDED MARCH 27, 1994
The Company historically experiences its lowest contract revenues in the
first quarter when winter weather conditions prevail. While contract revenues
increased approximately 17% in the first quarter of 1995 as compared to the
first quarter of 1994, the current period loss from operations was $6,695,000
as compared to $5,232,000. The increased operating loss was due to lower sales
closing rates coupled with a decline in gross margin and higher fixed costs.
6
<PAGE> 9
The Company generated approximately 16% more appointments than in the first
quarter a year ago, however, the dollar amount of sales orders increased only
11% due to lower sales closing rates and an imbalance between lead flows and
sales staffing levels in several key markets. Production backlog at the end of
the quarter was slightly higher than at the end of the first quarter last year.
Consolidated contract revenues increased $8,760,000 to $60,885,000 as
compared to $52,125,000 in the first quarter of the prior year. The increase
in revenue is due to a higher number of appointments in all three of the
Company's major product lines, as well as an improved installation rate (the
rate at which sales orders are converted to installed revenue) reflecting
milder weather conditions as well as reduced installation cycle times and
improved installation staffing levels.
Siding and related exterior home improvement product contract revenues
increased approximately 13% from $27,820,000 in the first quarter of 1994 to
$31,436,000 in 1995. The number of installations for these products increased
7%, and average selling price, which is affected not only by price levels, but
by the mix and size of jobs installed, increased 6%.
Contract revenues from kitchen cabinet refacing increased approximately 2%
from $15,267,000 in 1994 to $15,622,000 in 1995. While the number and dollar
amount of sales orders increased in the 1995 period as compared to the prior
year, units installed declined approximately 6%. However, average selling
price, which is affected not only by price levels but by the mix and size of
jobs installed, increased approximately 8% over the prior year first quarter.
Contract revenues from replacement windows increased to $11,910,000 from
$5,838,000 in the prior period. The number of installations increased
approximately 64% reflecting the continued growth of this product line as well
as a higher installation rate.
Gross profit margin as a percentage of contract revenues decreased from
67.6% to 66.3%. The decline in gross profit margin was principally due to
increased installation cost in the windows product line and higher service
costs in all product lines.
Branch operating expenses, which are primarily fixed in nature, decreased
from 8.6% of contract revenues in 1994 to 7.9% of revenues in 1995. Branch
operating expenses in dollar terms increased approximately $317,000 largely due
to higher headcount as compared to the prior year.
The Company increased its marketing expenditures in 1995 and generated
approximately 16% more appointments than in the same period last year. The
marketing cost per appointment, however, was relatively unchanged from the
prior year period, partially due to an imbalance between lead flows and sales
staffing levels in several key markets. Marketing expense as a percent of
revenue declined from 29.8% in the prior year period to 29.2% in 1995
principally due the improvement in the installation rate during the period.
Selling expenses increased to 19.8% of contract revenues as compared to
19.0% in the prior year period. Sales compensation declined from 12.5% to
11.9%. Other selling expenses, primarily composed of insurance costs, sales
managers salaries and training, recruiting and travel, increased to 7.9% of
contract revenues from 6.5% in the prior year period. The increase is
principally due to additional management staffing and increased travel
expenses.
General and administrative expenses decreased from 8.7% to 8.2% of contract
revenues, however, increased approximately $457,000 in dollar terms in 1995.
The increase was principally due to a separation agreement between the Company
and its former President and Chief Executive Officer, partially offset by a
decrease in bad debt expense.
7
<PAGE> 10
LIQUIDITY AND CAPITAL RESOURCES
The Company finances its liquidity needs with internally generated funds.
Net cash used in operations was $6,561,000, approximately the same as the loss
from operations. Cash and marketable securities totaled $20,003,000 at April
2, 1995. Cash and marketable securities on hand, together with cash provided
from future operations are expected to be sufficient to satisfy the Company's
working capital and other funding requirements.
The Company has a standby letter of credit with a bank in the amount of
approximately $1.2 million issued in connection with the Company's workers'
compensation and general liability insurance plans. The Company has set aside
in a restricted collateral account, marketable securities equivalent to the
amount of the letter of credit.
8
<PAGE> 11
SEASONALITY
The Company has found that customers are typically reluctant to commence
home improvement projects during the December holiday season. In addition,
installation of siding and related exterior home improvement products and
window products may be delayed due to poor weather conditions prevalent during
the winter months. Therefore, contract revenues and net income have
historically been lowest during the first quarter.
The following table sets forth, on an unaudited basis, the Company's
quarterly financial information:
<TABLE>
<CAPTION>
QUARTER ENDED
------------------------------------------------------------------
March 27, June 26, September 25, DECEMBER 31,
--------- -------- ------------ ------------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<S> <C> <C> <C> <C>
YEAR ENDED DECEMBER 31, 1994
Contract revenues . . . . . . . . . . . . . . $ 52,125 $ 77,589 $ 80,744 $ 75,472
Gross profit . . . . . . . . . . . . . . . . 35,241 53,493 54,441 49,655
Operating income (loss) . . . . . . . . . . . (5,232) 1,100 2,669 2,500
Net income (loss) . . . . . . . . . . . . . . $ (2,984) $ 912 $ 1,857 $ 1,674
Net income (loss) per share . . . . . . . . . $ (.23) $ .07 $ .14 $ .13
</TABLE>
<TABLE>
<CAPTION>
April 2,
----------
<S> <C>
YEAR ENDED DECEMBER 31, 1995
Contract revenues . . . . . . . . . . . . . . $ 60,885
Gross profit . . . . . . . . . . . . . . . . 40,360
Operating loss . . . . . . . . . . . . . . . (6,695)
Net loss . . . . . . . . . . . . . . . . . . $ (3,895)
Net loss per share . . . . . . . . . . . . . $ (.29)
</TABLE>
___________________
9
<PAGE> 12
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Reference is made to Note 3 of Notes to Consolidated Financial Statements
herein for a discussion of legal proceedings.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
NUMBER AND DESCRIPTION OF EXHIBIT
11. Calculations of weighted average common shares outstanding for the
quarterly periods ended April 2, 1995.
27. Financial Data Schedule.
__________________________
(b) Reports on Form 8-K: No current reports on Form 8-K were filed by the
Company during the quarter ended April 2, 1995.
10
<PAGE> 13
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.
AMRE, Inc.
DATE: May 11, 1995 /s/ John S. Vanecko
----------------------------------
John S. Vanecko
Vice President and Chief Financial Officer
(Principal financial officer and
duly authorized officer of registrant)
11
<PAGE> 14
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
----------- -----------
11. Calculations of weighted average common shares outstanding
for the quarterly periods ended April 2, 1995.
27. Financial Data Schedule.
<PAGE> 1
EXHIBIT 11
AMRE, INC.
COMPUTATION OF WEIGHTED AVERAGE SHARES OUTSTANDING
(IN THOUSANDS)
<TABLE>
<CAPTION>
QUARTERLY PERIODS ENDED
------------------------
APRIL 2, MARCH 27,
1995 1994
------- ---------
<S> <C> <C>
Common Stock outstanding . . . . . . . . . . . . 12,850 12,850
Common Stock equivalents . . . . . . . . . . . . 456 1
------- -------
Weighted average number of shares
outstanding . . . . . . . . . . . . . . . . . 13,306 12,851
======= =======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> APR-02-1995
<CASH> 7,327
<SECURITIES> 12,676
<RECEIVABLES> 11,578
<ALLOWANCES> 832
<INVENTORY> 5,854
<CURRENT-ASSETS> 44,583
<PP&E> 18,936
<DEPRECIATION> 13,029
<TOTAL-ASSETS> 65,636
<CURRENT-LIABILITIES> 36,507
<BONDS> 0
<COMMON> 141
0
0
<OTHER-SE> 28,988
<TOTAL-LIABILITY-AND-EQUITY> 65,636
<SALES> 60,885
<TOTAL-REVENUES> 60,885
<CGS> 20,525
<TOTAL-COSTS> 47,192
<OTHER-EXPENSES> 0
<LOSS-PROVISION> (137)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (6,334)
<INCOME-TAX> (2,439)
<INCOME-CONTINUING> (3,895)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,895)
<EPS-PRIMARY> (0.29)
<EPS-DILUTED> (0.29)
</TABLE>
