<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
April 30, 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: 0-15827
SHARPER IMAGE CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 94-2493558
(State of Incorporation) (I.R.S. Employer Identification No.)
650 DAVIS STREET, SAN FRANCISCO, CALIFORNIA 94111
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (415) 445-6000
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 / /
Indicate the number of shares outstanding of each of the issuer's
classes of Common Stock, as of the latest practicable date.
Common Stock, $0.01 par value, 8,244,700 shares as of June 8, 1995
1
<PAGE>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
SHARPER IMAGE CORPORATION
BALANCE SHEETS
<CAPTION>
April 30, April 30,
1995 January 31, 1994
Dollars in thousands, except per share amounts (Unaudited) 1995 (Unaudited)
___________ ___________ ___________
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 12,610 $ 18,193 $ 6,631
Accounts receivable, net 5,007 3,234 3,227
Merchandise inventories 27,108 23,555 25,993
Deferred catalog costs 5,823 3,022 3,070
Prepaid expenses and other 3,107 2,097 3,154
________ ________ _______
TOTAL CURRENT ASSETS 53,655 50,101 42,075
Property and Equipment, Net 12,952 12,694 12,945
Deferred Taxes and Other Assets 947 1,241 1,399
________ ________ ________
TOTAL ASSETS $ 67,554 $ 64,036 $ 56,419
======== ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 27,718 $ 21,083 $ 19,774
Deferred revenue 4,173 3,612 3,098
Income taxes payable - 2,246 -
Current portion of notes payable 152 149 155
________ ________ ________
TOTAL CURRENT LIABILITIES 32,043 27,090 23,027
Notes Payable 799 838 951
Other Liabilities 3,321 3,316 3,558
________ ________ ________
TOTAL LIABILITIES 36,163 31,244 27,536
________ ________ ________
STOCKHOLDERS' EQUITY:
Preferred stock, $0.01 par value:
Authorized 3,000,000 shares:
Issued and outstanding, none - - -
Common stock, $0.01 par value: Authorized
25,000,000 shares: Issued and outstanding,
8,217,380, 8,283,140 and 8,284,120 shares 83 83 83
Additional paid-in capital 9,564 10,032 10,797
Retained earnings 21,744 22,677 18,003
________ ________ ________
TOTAL STOCKHOLDERS' EQUITY 31,391 32,792 28,883
________ ________ ________
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 67,554 $ 64,036 $ 56,419
======== ======== ========
</TABLE>
2
<PAGE>
<TABLE>
SHARPER IMAGE CORPORATION
STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Ended
Dollars in thousands, except per share amounts April 30,
(Unaudited) __________________
1995 1994
____ ____
<S> <C> <C>
REVENUES:
Sales $ 43,128 $ 34,413
Less: returns and allowances 5,815 4,110
_________ _________
NET SALES 37,313 30,303
List rental 280 321
Licensing 103 92
_________ _________
37,696 30,716
_________ _________
COST AND EXPENSES:
Cost of products 19,166 16,167
Buying and occupancy 4,903 4,771
Advertising and promotion 5,604 2,769
General, selling, and administrative 9,791 8,567
_________ _________
39,464 32,274
_________ _________
OTHER INCOME (EXPENSE):
Interest income (expense)- net 216 (69)
Other- net (3) (25)
_________ _________
213 (94)
_________ _________
LOSS BEFORE INCOME TAX CREDIT (1,555) (1,652)
Income Tax Credit (622) (661)
_________ _________
NET LOSS $ (933) $ (991)
========= =========
NET LOSS PER SHARE $ (0.11) $ (0.12)
========= =========
Weighted Average Number of Shares 8,250,157 8,283,977
</TABLE>
3
<PAGE>
<TABLE>
SHARPER IMAGE CORPORATION
STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Ended
Dollars in thousands (Unaudited) April 30,
____________________
1995 1994
____ ____
<S> <C> <C>
CASH WAS PROVIDED BY (USED FOR) OPERATING ACTIVITIES:
Net loss $ (933) $ (991)
Adjustments to reconcile net loss to net cash
provided by (used for) operations:
Depreciation and amortization 823 789
Deferred rent expense 21 15
Deferred income taxes (622) (661)
Changes in operating assets and liabilities:
Merchandise inventories (3,553) (633)
Accounts receivable (1,773) 588
Deferred catalog costs, prepaid expenses and other (2,895) (1,408)
Accounts payable and accrued expenses 6,635 3,644
Deferred revenue and other liabilities (1,701) (1,300)
_________ _________
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES (3,998) 43
_________ _________
CASH WAS PROVIDED BY (USED FOR) INVESTING ACTIVITIES:
Property and equipment expenditures (1,081) (234)
_________ _________
CASH USED FOR INVESTING ACTIVITIES (1,081) (234)
_________ _________
CASH WAS PROVIDED BY (USED FOR) FINANCING ACTIVITIES:
Issuance of common stock for stock options 19 5
Repurchase of common stock (487) -
Principal payments on notes payable (36) (49)
_________ _________
CASH USED FOR FINANCING ACTIVITIES (504) (44)
_________ _________
NET DECREASE IN CASH AND EQUIVALENTS (5,583) (235)
_________ _________
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 18,193 6,866
_________ _________
CASH AND EQUIVALENTS AT END OF PERIOD $ 12,610 $ 6,631
========= =========
SUPPLEMENTAL DISCLOSURE OF CASH PAID FOR:
Interest $ 34 $ 40
Income Taxes $ 1,845 $ 936
</TABLE>
4
<PAGE>
SHARPER IMAGE CORPORATION
NOTES TO FINANCIAL STATEMENTS
Three-month periods ended April 30, 1995 and 1994
(Unaudited)
NOTE A- Financial Statements
The balance sheets at April 30, 1995 and 1994, and the statements
of operations and cash flows for the three-month periods ended
April 30, 1995 and 1994 have been prepared by the Company, without
audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present
fairly the financial position, results of operations and cash flows
at April 30, 1995 and 1994, and for all periods presented, have
been made. The Company's business is seasonal in nature and the
results of operations for the interim periods presented are not
necessarily indicative of the results for the full fiscal year.
The balance sheet at January 31, 1995, presented herein, has been
derived from the audited balance sheet of the Company.
Certain information and footnote disclosures normally included in
annual financial statements prepared in accordance with generally
accepted accounting principles have been omitted from these interim
financial statements. It is suggested that these financial
statements be read in conjunction with the financial statements and
notes thereto included in the Company's 1994 Annual Report.
NOTE B- Short-Term Borrowings and Notes Payable
In September 1994, the Company entered into a five-year revolving
secured credit facility with The CIT Group/Business Credit, Inc.,
a New York corporation. The credit facility allows the Company to
borrow and issue letters of credit up to $20,000,000 based upon
inventory levels. The credit facility is secured by the Company's
inventory, accounts receivable, general intangibles and certain
other assets. Borrowings under the credit facility bear interest
at either prime plus 0.75% per annum, or at LIBOR plus 2.75% per
annum. The credit facility contains certain financial covenants
pertaining to fixed charge coverage ratio, leverage ratio, working
capital and net worth. The credit facility has limitations on
operating leases, other borrowings, dividend payments and stock
repurchases.
At April 30, 1995, there were no borrowings outstanding under the
credit facility. No borrowings were made under the credit
facility during the first quarter. Letters of credit commitments
at April 30, 1995 were $888,000.
Notes payable included two mortgage loans collateralized by certain
property and equipment. The first note bears interest at a fixed
rate of 8%, provides for monthly payments of principal and interest
in the amount of $3,640, and matures in October 2003. The other
note bears interest at a variable rate equal to the rate on 30-day
commercial paper plus 3.82%, provides for monthly payments of
principal and interest in the amount of $14,320, and matures in
January 2000.
5
<PAGE>
NOTE C- Commitments and Contingencies
The Company is party to various legal proceedings arising from
normal business activities. Management believes that the
resolution of these matters will not have a material effect on the
Company's financial condition.
NOTE D- Reclassifications
Certain reclassifications have been made to prior years' financial
statements in order to conform with current year classifications.
REVIEW BY INDEPENDENT ACCOUNTANTS
The financial statements at April 30, 1995 and 1994 and for the
three-month periods then ended have been reviewed by the Company's
independent accountants, Deloitte & Touche LLP, whose report
covering their review of the financial statements is presented
herein.
6
<PAGE>
Deloitte & Touche LLP
Independent Accountants' Report
7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS
The following table is derived from the Company's Statements of
Operations and shows the results of operations for the periods
indicated as a percentage of total revenues.
Percentage of Total Revenues
____________________________
Three Months Ended
April 30,
_______________________
1995 1994
____ ____
Revenues:
Net store sales 70.8% 74.5%
Net catalog sales 28.2 24.2
List rental 0.7 1.0
Licensing 0.3 0.3
_____ _____
Total Revenues 100.0% 100.0%
Costs and Expenses:
Cost of products 50.8 52.6
Buying and occupancy 13.0 15.6
Advertising and promotion 14.9 9.0
General, selling
and administrative 26.0 27.9
Other income (expense) 0.6 (0.3)
____ ____
Loss Before Income Tax Credit (4.1) (5.4)
Income Tax Credit (1.6) (2.2)
____ ____
Net Loss (2.5)% (3.2)%
==== ====
8
<PAGE>
Revenues
Net sales for the three-month period ended April 30, 1995,
increased $7,010,000, or 23.1% over the comparable period of the
prior year. Returns and allowances for the three-month period
ended April 30, 1995, were 13.5% of sales, as compared with 11.9%
of sales for the comparable prior year period. For the three-month
period ended April 30, 1995, as compared with the same period last
year, net store sales increased $3,801,000, or 16.6%, comparable
store sales increased 14.9%, while net catalog sales increased
$3,209,000, or 43.2%.
The increases in net store sales and comparable store sales for the
three-month period ended April 30, 1995 as compared with the same
prior year period reflected a 7.2% increase in total store
transactions, and an increase in average revenue per transaction
from $98 to $106 for the three-month period. The increase in net
catalog sales for the three-month period ended April 30, 1995 as
compared with the same prior year period reflected a 37.8% increase
in total catalog orders with the average revenue per order
remaining at $126. The Company believes that the increases in net
store sales, comparable store sales and net catalog sales primarily
reflected the strong demand for the Company's merchandise
assortment, particularly the Company's proprietary products, the
significant increase in advertising and promotion expenses due to
the increase in the number of catalogs and catalog pages
circulated, and to sales related to the test mailings of the
"Sharper Image SPA" catalogs.
Cost of Products
Cost of products for the three-month period ended April 30, 1995
increased $2,999,000, or 18.6%, from the comparable prior year
period. The increase primarily reflected the increase in cost of
products related to the increases in net sales. The gross margin
rate for the three-month period ended April 30, 1995 was 48.5%, or
2.1 percentage points higher than the gross margin rate of 46.4%
for the same period of the prior year. The higher gross margin
rates for the three-month period as compared with the prior year
period primarily reflected the positive impact of the Company's
strategy of emphasizing and expanding its line of proprietary,
private label and exclusive products.
Advertising and Promotion Expenses
Advertising and promotion expenses for the three-month period ended
April 30, 1995 increased $2,835,000, or 102.4%, from the comparable
prior year period. The increase in advertising and promotion
expenses were primarily due to an increase in net catalog costs as
a result of an increase of 71% in the number of catalog pages
circulated and an increase of 13% in the number of catalogs
circulated for The Sharper Image catalog, and the cost associated
with the test mailings of the "Sharper Image SPA" catalogs. The
increase can also be attributed to the increase in paper and
postage costs, which is having a significant impact on the general
mail order industry, and an increase in In-Flight and other
magazine advertisements specifically promoting the Company's
proprietary and exclusive products. The Company's plan is to
significantly increase advertising and promotion expenses for the
current year as compared with the prior year.
The Company continually evaluates its advertising strategy to
maximize the effectiveness of advertising.
9
<PAGE>
General, Selling and Administrative Expenses
General, selling and administrative (G S & A) expenses for the
three-month period ended April 30, 1995 increased $1,224,000, or
14.3%, from the comparable prior year period. The increase was
primarily attributable to the increases in overall selling expenses
related to the increase in net sales. The increase in G S & A
expenses also included increases in personnel costs to support the
higher sales volume and an increase in net delivery expense related
to the increase in mail order sales. The Company offers overnight
delivery to mail order customers at no extra charge. Total G S &
A expenses as a percentage of total revenues was 26.0% as compared
to 27.9% for the same period of the prior year, reflecting the
Company's effort to tightly control expenses.
Liquidity and Capital Resources
The Company met its short-term liquidity needs and its capital
requirements in the three-month period ended April 30, 1995 with
available cash. During the three-month period ended April 30,
1995, the Company's cash decreased by $5,583,000 to $12,610,000,
and the Company did not draw on the credit facility.
In September 1994, the Company entered into a five-year revolving
secured credit facility with The CIT Group/Business Credit, Inc.,
a New York corporation. The credit facility allows the Company to
borrow and issue letters of credit up to $20,000,000 based upon
inventory levels. The credit facility is secured by the Company's
inventory, accounts receivable, general intangibles and certain
other assets. Borrowings under the credit facility bear interest
at either prime plus 0.75% per annum, or LIBOR plus 2.75% per
annum. The credit facility contains certain financial covenants
pertaining to fixed charge coverage ratio, leverage ratio, working
capital and net worth. The credit facility has limitations on
operating leases, other borrowings, dividend payments and stock
repurchases.
At April 30, 1995, there were no borrowings outstanding under the
credit facility. No borrowings were made under the credit facility
during the first quarter. Letters of credit commitments at
April 30, 1995 were $888,000.
Notes payable included two mortgage loans collateralized by certain
property and equipment. The first note bears interest at a fixed
rate of 8%, provides for monthly payments of principal and interest
in the amount of $3,640, and matures in October 2003. The other
note bears interest at a variable rate equal to the rate on 30-day
commercial paper plus 3.82%, provides for monthly payments of
principal and interest in the amount of $14,320, and matures in
January 2000.
The Company's net merchandise inventory at April 30, 1995 was
approximately 4% higher than that of April 30, 1994, while
supporting an increase of 23.1% in net sales. This reflects the
beneficial effects of lower costs related to proprietary and
private label products and Company's automated replenishment
system.
The Company opened a new store in White Plains, New York, in March
1995. The Company is currently planning to open seven to eleven
new stores and expand the distribution center during the current
fiscal year. Total capital expenditures for new and existing
stores, corporate headquarters, and the distribution center for the
current fiscal year are estimated at $7,500,000. These capital
expenditures will be financed with available cash, cash from
operations, trade credit, and the revolving credit facility.
10
<PAGE>
PART II
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
10.1 - Amended and Restated Stock Option Plan.
(Incorporated by reference to Registration Statement on Form S-8
filed on December 11, 1992 (Registration 33-12755).)
10.2 - Cash or Deferred Profit Sharing Plan, as
amended. (Incorporated by reference to Exhibit 10.2 to
Registration Statement on Form S-1 (Registration No. 33-12755).)
10.3 - Form of Stock Purchase Agreement dated
July 26, 1985 relating to shares of Common Stock purchase pursuant
to exercise of employee stock options. (Incorporated by reference
to Exhibit 10.3 to Registration Statement on Form S-1 (Registration
No. 33-12755).)
10.4 - Form of Stock Purchase Agreement dated
December 13, 1985 relating to shares of Common Stock purchase pursuant
to exercise of employee stock options. (Incorporated by reference to
Exhibit 10.4 to Registration Statement on Form S-1 (Registration
No. 33-12755).)
10.5 - Form of Stock Purchase Agreement dated
November 10, 1986 relating to shares of Common Stock purchase
pursuant to exercise of employee stock options. (Incorporated
by reference to Exhibit 10.5 to Registration Statement on Form S-1
(Registration No. 33-12755).)
10.6 - Form of Director Indemnification Agreement.
(Incorporated by reference to Exhibit 10.42 to Registration
Statement on Form S-1 (Registration No. 33-12755).)
10.7 - Cash or Deferred Profit Sharing Plan Amendment
No. 3. (Incorporated by reference to Exhibit 10.15 to Form 10-K for
the fiscal year ended January 31, 1988.)
10.8- Cash or Deferred Profit Sharing Plan Amendment
No. 4. (Incorporated by reference to Exhibit 10.16 to Form 10-K for the
fiscal year ended January 31, 1988.)
10.9- Form of Stock Option Agreement for Directors
under the Company's Amended and Restated Stock Option Plan.
(Incorporated by reference to Exhibit 10.17 to Form 10-K for the
fiscal year ended January 31, 1988.)
11
<PAGE>
10.10- Financing Agreement dated September 21, 1995,
among the Company and The CIT Group/Business Credit Inc.
(Incorporated by reference to Exhibit 10.12 to Form 10-Q for the
quarter ended October 31, 1994.)
10.11- Real Estate Installment Note and Mortgage dated
October 4, 1994 among the Company and Lee Thalheimer, Trustee for
the Alan Thalheimer Trust. (Incorporated by reference to Exhibit
10.20 to the Form 10-K for the fiscal year ended January 31, 1995.)
10.12- The Sharper Image 401-K Savings Plan.
(Incorporated by reference to Exhibit 10.21 to Registration
Statement on Form S-8 (Registration No. 33-80504) dated June 21,
1994.)
10.13- Form of Plan Amendment to the Company's Amended
and Restated Stock Option Plan dated October 7, 1994. (Incorporated
by reference to Exhibit 10.22 to Form 10-K for the fiscal year
ended January 31, 1995.)
10.14- Form of Stock Option Agreement under the
Company's 1994 Non-Employee Directors Stock Option Plan dated
October 7, 1994. (Incorporated by reference to Exhibit 10.23 to
Form 10-K for the fiscal year ended January 31, 1995.)
10.15- Form of Chief Executive Officer Compensation
Plan dated February 3, 1995. (Incorporated by reference to Exhibit
10.24 to the Form 10-K for the fiscal year ended January 31, 1995.)
11.0 - Statement Re: Computation of Earnings Per Share
15.0 - Letter Re: Unaudited Interim Financial
Information
27.0 - Financial Data Schedule
(b)Reports on Form 8-K
The Company has not filed any reports on Form 8-K for the
three months ended April 30, 1995.
12
<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.
SHARPER IMAGE CORPORATION
Date: June 14, 1995 by: CRAIG P. WOMACK
_______________________
Craig P. Womack
President
Chief Operating Officer
by: TRACY Y. WAN
_______________________
Tracy Y. Wan
Senior Vice President
Chief Financial Officer
EXHIBIT 11
SHARPER IMAGE CORPORATION
STATEMENTS RE: COMPUTATION OF EARNINGS PER SHARE
Three Months Ended
April 30,
____________________
Dollars in thousands, except per share amounts 1995 1994
____ ____
Net Loss $ (933) $ (991)
Average shares of common stock
outstanding during the period 8,250,157 8,283,977
Add:
Incremental shares from assumed
exercise of stock options (Primary)
* *
_________ _________
8,250,157 8,283,977
========= =========
Primary loss per share $ (0.11) $ (0.12)
Average shares of common stock
outstanding during the period 8,250,157 8,283,977
Add:
Incremental shares from assumed
exercise of stock options (Fully-diluted)
* *
_________ _________
8,250,157 8,283,977
========= =========
Fully-diluted loss per share $ (0.11) $ (0.12)
========= =========
* Incremental shares from assumed exercise of stock options are
antidilutive for primary and fully diluted loss per share, and
therefore not presented.
EXHIBIT 15.1
[DELOITTE & TOUCHE LLP LETTERHEAD]
INDEPENDENT ACCOUNTANTS' REPORT
Board of Directors
Sharper Image Corporation
San Francisco, California
We have reviewed the accompanying condensed balance sheets of Sharper
Image Corporation as of April 30, 1995 and 1994, and the related
condensed statements of operations and cash flows for the three-month
periods then ended. These financial statements are the
responsibility of the Company's management.
We conducted our reviews in accordance with standards established by
the American Institute of Certified Public Accountants. A review of
interim financial information consists principally of applying
analytical procedures to financial data and making inquiries of
persons responsible for financial and accounting matters. It is
substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications
that should be made to the accompanying condensed financial
statements for them to be in conformity with generally accepted
accounting principles.
We have previously audited, in accordance with generally accepted
auditing standards, the balance sheet of Sharper Image Corporation as
of January 31, 1995, and the related statements of operations,
stockholders' equity and cash flows for the year then ended (not
presented herein); and in our report dated March 31, 1995, we
expressed an unqualified opinion on those financial statements. In
our opinion, the information set forth in the accompanying condensed
balance sheet as of January 31, 1995 is fairly stated, in all
material respects, in relation to the balance sheet from which it has
been derived.
DELOITTE & TOUCHE
May 17, 1995
<PAGE>
[DELOITTE & TOUCHE LLP LETTERHEAD]
EXHIBIT 15.2
Board of Directors
Sharper Image Corporation
San Francisco, California
We have made a review, in accordance with standards established by
the American Institute of Certified Public Accountants, of the
unaudited interim financial information of Sharper Image Corporation
for the periods ended April 30, 1995 and 1994, as indicated in our
report dated May 17, 1995; because we did not perform an audit, we
expressed no opinion on that information.
We are aware that our report referred to above, which is included in
your Quarterly Report on Form 10-Q for the quarter ended April 30,
1995, is incorporated by reference in Registration Statement No. 33-
12755 and Registration Statement No. 33-80504 on Forms S-8 of Sharper
Image Corporation.
We also are aware that the aforementioned report, pursuant to Rule
436(c) under the Securities Act of 1933, is not considered a part of
the Registration Statement prepared or certified by an accountant or
a report prepared or certified by an accountant within the meaning of
Sections 7 and 11 of that Act.
DELOITTE & TOUCHE LLP
May 17, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000811696
<NAME> THE SHARPER IMAGE
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-31-1996
<PERIOD-START> FEB-01-1995
<PERIOD-END> APR-30-1995
<EXCHANGE-RATE> 1
<CASH> 12,610
<SECURITIES> 0
<RECEIVABLES> 5,007
<ALLOWANCES> 0
<INVENTORY> 27,108
<CURRENT-ASSETS> 53,655
<PP&E> 40,992
<DEPRECIATION> (28,040)
<TOTAL-ASSETS> 67,554
<CURRENT-LIABILITIES> 32,043
<BONDS> 0
<COMMON> 83
0
0
<OTHER-SE> 31,308
<TOTAL-LIABILITY-AND-EQUITY> 67,554
<SALES> 43,128
<TOTAL-REVENUES> 37,696
<CGS> 19,166
<TOTAL-COSTS> 39,464
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (216)
<INCOME-PRETAX> (1,555)
<INCOME-TAX> (622)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (933)
<EPS-PRIMARY> (0.11)
<EPS-DILUTED> 0
</TABLE>
