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 June 29, 1996 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: 0-15627
SEQUENT COMPUTER SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Oregon 93-0826369
(State or other jurisdiction (I.R.S. Employer
of organization or incorporation) Identification Number)
15450 S.W. Koll Parkway
Beaverton, Oregon 97006-6063
(Address of principal executive offices, including zip code)
(503) 626-5700
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such report), 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.
33,623,358 common shares were issued and outstanding as of July 31, 1996.
SEQUENT COMPUTER SYSTEMS, INC.
PART I. FINANCIAL INFORMATION
Page No.
Item 1. Consolidated Financial Statements
Consolidated Balance Sheets - June 29, 1996
and December 30, 1995 3
Consolidated Statements of Operations - Three
months and six months ended June 29, 1996 and
July 1, 1995 4
Consolidated Statements of Changes In Shareholders'
Equity - January 1, 1994 through June 29, 1996 5
Consolidated Statements of Cash Flows - Six months
ended June 29, 1996 and July 1, 1995 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 11 - Statement regarding computation of
earnings per share.
(b) No reports on Form 8-K were filed by the Company
during the fiscal quarter ended June 29, 1996.
SEQUENT COMPUTER SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - Unaudited
(in thousands, except per share amounts)
June 29, 1996 Dec. 30, 1995
ASSETS
Current assets:
Cash and cash equivalents $ 62,289 $ 61,939
Restricted deposits 28,234 39,642
Receivables, net 135,275 178,322
Inventories 74,615 60,853
Prepaid royalties and other 25,305 13,464
Total current assets 325,718 354,220
Property and equipment, net 114,287 98,165
Capitalized software costs, net 51,829 45,381
Intangible assets and other, net 19,446 6,157
Total assets $ 511,280 $ 503,923
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Notes payable $ 28,234 $ 41,146
Accounts payable and other 63,549 60,095
Accrued payroll 16,589 11,723
Unearned revenue 26,668 21,466
Income taxes payable 5,258 4,981
Current obligations under
capital leases and debt 1,714 60
Total current liabilities 142,012 139,471
Other accrued expenses 2,638 2,158
Long-term obligations under capital
leases and debt 7,668 9,106
Total liabilities 152,318 150,735
Shareholders' equity:
Common stock, $.01 par,
33,618 and 33,221 shares outstanding 336 332
Paid-in capital 305,249 302,186
Retained earnings 56,849 52,945
Foreign currency translation adjustment (3,472) (2,275)
Total shareholders' equity 358,962 353,188
Total liabilities and shareholders'
equity $ 511,280 $ 503,923
See notes to consolidated financial statements.
<TABLE>
SEQUENT COMPUTER SYSTEMS, INC. AND SUBSIDIARIES
SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS - Unaudited
(in thousands, except per share amounts)
<CAPTION>
Three Months Ended Six Months Ended
June 29, 1996 July 1, 1995 June 29, 1996 July 1, 1995
<S> <C> <C> <C> <C>
Revenue:
Product revenue $ 99,549 $ 104,548 $ 180,658 $ 186,529
Service revenue 43,038 34,659 82,674 68,777
Total revenue 142,587 139,207 263,332 255,306
Costs and expenses:
Cost of products sold 47,494 48,500 86,147 87,430
Cost of service revenue 33,890 25,625 64,501 50,105
Research and development 12,265 10,329 24,527 19,745
Selling, general and admin. 44,422 39,183 82,667 73,290
Total costs and expenses 138,071 123,637 257,842 230,570
Operating income 4,516 15,570 5,490 24,736
Interest, net 214 271 427 344
Other, net (201) (170) (564) (900)
Income before provision
for income taxes 4,529 15,671 5,353 24,180
Provision for income taxes 1,223 4,661 1,449 7,217
Net income $ 3,306 $ 11,010 $ 3,904 $ 16,963
Net income per share $ 0.10 $ 0.33 $ 0.12 $ 0.51
Weighted average number
of common and common
equivalent shares outstanding 34,165 33,067 33,891 33,075
See notes to consolidated financial statements.
SEQUENT COMPUTER SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - Unaudited
(in thousands)
<CAPTION>
Foreign
Retained Currency
Preferred Stock Common Stock Paid-in Earnings Trans-
Shares Amount Shares Amount Capital (Deficit) lation Total
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance, Dec. 31, 1994 -- $ -- 31,360 $ 314 $ 278,145 $ 17,872 $ (5,136) $ 291,195
Common shares issued -- -- 1,798 18 18,298 -- 18,316
Tax benefit of option exercises -- -- -- -- 4,743 -- -- 4,743
Conversion of debentures -- -- 63 -- 1,000 -- -- 1,000
Net income -- -- -- -- -- 35,073 -- 35,073
Foreign currency
translation adjustment -- -- -- -- -- -- 2,861 2,861
Balance, Dec. 30, 1995 -- $ -- 33,221 $ 332 $ 302,186 $ 52,945 $(2,275) $ 353,188
Common shares issued -- -- 233 3 2,468 2,471
Tax benefit of option exercises -- -- -- -- 46 -- -- 46
Net income -- -- -- -- -- 598 -- 598
Foreign currency
translation adjustment -- -- -- -- -- -- (1,194) (1,194)
Balance, March 30, 1996 -- -- 33,454 $ 335 $ 304,700 $ 53,543 $(3,469) $ 355,109
Common shares issued -- -- 164 1 526 527
Tax benefit of option exercises -- -- -- -- 23 -- -- 23
Net income -- -- -- -- -- 3,306 -- 3,306
Foreign currency
translation adjustment -- -- -- -- -- -- (3) (3)
Balance, June 29, 1996 -- -- 33,618 $ 336 $ 305,249 $ 56,849 $(3,472) $ 358,962
See notes to consolidated financial statements.
</TABLE>
SEQUENT COMPUTER SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS - Unaudited
(in thousands)
Six Months Ended
June 29, 1996 July 1, 1995
Operating activities:
Net income $ 3,904 $ 16,963
Reconciliation of net income to net cash
provided by operating activities -
Depreciation and amortization 30,108 25,237
Changes in assets and liabilities -
Receivables, net 43,047 (14,999)
Inventories (13,762) (2,917)
Prepaid expenses (11,840) (6,136)
Accounts payable and other (323) 1,175
Accrued payroll 4,866 (603)
Unearned revenue 5,202 5,787
Income taxes payable 277 2,088
Deferred income taxes (21) --
Other, net 4,277 1,106
Net cash provided by
operating activities 65,735 27,701
Investing activities:
Restricted deposits 11,408 22,586
Purchases of property and equipment, net (36,309) (24,740)
Capitalized software costs (16,178) (11,077)
Intangibles and other assets (13,479) (63)
Foreign currency translation (1,197) 2,207
Net cash used for investing activities (55,755) (11,087)
Financing activities:
Notes payable, net (12,912) (22,586)
Proceeds (payments) under capital
lease obligations 216 (534)
Long-term debt, net -- 216
Stock issuance proceeds, net 3,066 7,457
Net cash (used) provided by
financing activities (9,630) (15,447)
Net increase in cash and cash equivalents 350 1,167
Cash and cash equivalents at beginning of period 61,939 46,291
Cash and cash equivalents at end of period $ 62,289 $ 47,458
See notes to consolidated financial statements.
SEQUENT COMPUTER SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 29, 1996
Basis of Presentation
The accompanying consolidated financial statements are unaudited and have been
prepared by the Company pursuant to the rules and regulations of the
Securities and Exchange Commission and in the opinion of management include
all adjustments, consisting only of normal recurring adjustments, necessary
for a fair statement of the results for the interim periods. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and regulations. These
consolidated financial statements should be read in conjunction with the
audited financial statements and notes thereto included in the Company's annual
report and Form 10-K for the fiscal year ended December 30, 1995.
The Company's fiscal year is based on a 52-53 week calendar ending the Saturday
closest to December 31. The accompanying consolidated financial statements
include the accounts of Sequent Computer Systems, Inc. and its wholly owned
subsidiaries (the Company or Sequent). All significant intercompany accounts
and transactions have been eliminated. The results for interim periods are
not necessarily indicative of the results for the entire year.
Accounts Receivable
At June 29, 1996, accounts receivable in the accompanying consolidated balance
sheet is net of $17 million received by the Company under its two year
agreement to sell its domestic accounts receivables.
Inventories
Inventories consist of the following:
(in thousands)
June 29, Dec. 30,
1996 1995
Raw Materials $ 16,951 $ 9,385
Work in Process 2,668 1,736
Finished Goods 54,996 49,732
$ 74,615 $ 60,853
Property and Equipment
Property and equipment consist of the following:
(in thousands)
June 29, Dec. 30,
1996 1995
Land $ 5,037 $ 5,037
Operational Equipment 156,593 134,897
Furniture and Office Equipment 74,349 67,010
Leasehold Improvements 17,510 15,974
253,489 222,918
Less Accum. Depr. & Amort. 139,202 124,753
$ 114,287 $ 98,165
Research and Development
Amortization of capitalized software costs, generally based on a three-year
life, was $4.8 million and $9.6 million for the three month and six month
periods ended June 29, 1996, respectively. Amortization for the same periods in
1995 was $4.0 million and $7.6 million, respectively.
Notes Payable
The Company has an unsecured line of credit agreement with a group of banks
which provides short-term borrowings of up to $50 million. The line of
credit agreement extends through May 30, 1997. No borrowings were
outstanding at June 29, 1996.
The Company has a short-term borrowing agreement with a foreign bank as a hedge
to cover certain foreign currency exposures. At June 29, 1996, maximum
borrowings allowed under the agreement were approximately $54.9 million.
Borrowings under the agreement are denominated in various foreign currencies.
Proceeds from the borrowings are converted into U.S. dollars and placed in a
term deposit account with the foreign bank. Amounts outstanding were $28.2
million at June 29, 1996.
In addition to the above borrowing agreements, the Company maintains certain
other miscellaneous borrowing arrangements with a foreign bank. No
borrowings were outstanding at June 29, 1996.
Income Taxes
The Company accounts for income taxes in accordance with Statement of
Financial Accounting Standards No. 109, "Accounting For Income Taxes" (FAS
109). The effective tax rate differs from the statutory tax rate principally
due to tax benefits from the Company's foreign sales corporation and tax
benefits related to the utilization of net operating loss carryforwards.
Earnings Per Share
See Exhibit 11 for the computation of average shares outstanding and earnings
per share.
Significant Customers
The Company had no single customer that represented greater than 10% of total
revenue for the quarters ending June 29, 1996 or July 1, 1995.
Geographic Segment Information
Export and foreign revenue was $66.4 million (46% of total revenue) for the
three months ended June 29, 1996 and $130.4 million (49% of total revenue)
for the first six months of 1996. Export and foreign revenue was $78.5
million and $136.5 million (56% and 53% of total revenue, respectively) for
the corresponding periods in 1995. The Company's United States operations
generated operating income of $4.5 million for the three months ended June 29,
1996 and $5.8 million for the first six months of 1996. Foreign operations
generated "break-even" results for the quarter ended June 29, 1996, compared
to net operating losses of $.3 million for the first six months of 1996.
Comparable periods in 1995 included operating income of $3.1 million and
$800,000 for the three months ended July 1, 1995 and first six months of
1995, respectively.
Forward Looking Statements
Information included in Management's Discussion and Analysis of Financial
Conditions and Results of Operations regarding product development schedules
and planned expenditure levels constitute forward-looking statements that
involve a number of risks and uncertainties. In addition, from time to time the
Company and its employees may issue other forward-looking statements. The
following factors are among the factors that could cause actual results to
differ materially from the forward-looking statements: business conditions and
growth in the electronics industry and general economies, both domestic and
international; lower than expected customer orders, delays in receipt of
orders or cancellation of orders; the Company's ability to expand its sales
force and achieve expected results from a larger sales force; the successful
development of new technologies including NUMA-Q product technologies, the
timely introduction of new products scheduled during the year and demand for
and acceptance of new products by the Company's customers; competitive
factors, including increased competition, new product offerings by
competitors and price pressures; the availability of third party parts and
supplies at reasonable prices; changes in product mix and the mix between
product and service revenue; significant quarterly performance fluctuations
due to the receipt of a significant portion of customer orders and product
shipments in the last month of each quarter; and product shipment
interruptions due to manufacturing problems.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
June 29, 1996
GENERAL
Total revenue was $142.6 million in the second quarter of 1996 compared to
$139.2 million in the second quarter of 1995. Total revenue was $263.3
million in the first six months of 1996 compared to $255.3 million in the first
six months of 1995. Net income was $3.3 million in the second quarter of 1996
compared to $11.0 million in the first quarter of 1995. Net income was $3.9
million for the first six months of 1996 compared to $17.0 million in the
first six months of 1995. Factors contributing to the decrease in net income
for both periods in 1996 compared to 1995 include the substantial investments
made by the Company to expand its sales channels and develop its NUMA-Q
product technology. Service revenue, which increased as a percentage of total
revenue, also contributed to the overall decline in net income.
<TABLE>
REVENUE
(dollars in millions)
<CAPTION>
Three Months Ended Six Months Ended
June 29, % July 1, June 29, % July 1,
1996 Chg 1995 1996 Chg 1995
<S> <C> <C> <C> <C> <C> <C>
End-user product revenue $ 98.2 (5)% $ 103.0 $ 174.3 (4)% $ 182.0
Service and other revenue 43.0 24% 34.7 82.8 20% 68.6
Total end-user revenue 141.2 3% 137.7 257.1 3% 250.8
OEM product revenue 1.4 (7)% 1.5 6.3 40% 4.5
Total revenue $ 142.6 2% $ 139.2 $ 263.4 3% $ 255.3
Export and Foreign Revenue $ 66.4 (15)% $ 78.5 $ 130.4 (4)% $ 136.5
</TABLE>
During 1995 and 1996, the Company's service revenue continued to increase in
dollar amount and as a percentage of total revenue primarily due to the
growing customer base and associated customer service/maintenance contracts,
as well as the Company's emphasis on professional services consulting. Total
service revenue for the Company's European operations increased approximately
25% and 32% for the second quarter and first six months of 1996,
respectively, over the corresponding periods of 1995. Total service revenue
increases for the Company's United States operations for the same periods
were approximately 25% and 32% for the second quarter and first six months of
1996, respectively.
Export and foreign revenue was 46% of total revenue for the three months ended
June 29, 1996 and 50% of total revenue for the first six months of 1996
compared to 56% and 53% for the corresponding periods in 1995. Factors
contributing to the decrease in export and foreign revenue as a percentage of
total revenue in 1996 included decreases in European revenue, specifically in
the UK, resulting in part from a recent tightening in the European economy.
These revenue decreases experienced in the UK contributed to the overall slight
decrease in end-user product revenue for both the second quarter and the
first six months of 1996 as compared to the corresponding periods of 1995.
The decrease in European end-user product revenue was partially offset by
significant increases in the Company's United States (North America)
operations.
COST OF SALES
(dollars in millions)
Three Months Ended Six Months Ended
June 29, July 1, June 29, July 1,
1996 1995 1996 1995
Cost of products sold $ 47.4 $ 48.5 $ 86.1 $ 87.4
As a percentage of
product revenue 48% 46% 48% 47%
Cost of service revenue $ 33.9 $ 25.6 $ 64.5 $ 50.1
As a percentage of
service revenue 79% 74% 78% 73%
The factors influencing gross margins in a given period include unit volumes
(which affect economies of scale), product configuration mix, changes in
component and manufacturing costs, product pricing and the mix between
product and service revenue. Total cost of sales as a percentage of total
revenue increased both in 1996 and 1995 primarily due to product mix with
lower margin service increasing as a percentage of total revenue. Consistent
with its 1996 plan, the Company has continued to invest in growing its
professional services business which has contributed to the increase of cost
of service as a percentage of service revenue. The Company increased its
professional services headcount by approximately 31% since the beginning of
the year.
<TABLE>
RESEARCH AND DEVELOPMENT
(dollars in millions)
<CAPTION>
Three Months Ended Six Months Ended
June 29, % July 1, June 29, % July 1,
1996 Chg 1995 1996 Chg 1995
<S> <C> <C> <C> <C> <C> <C>
Research and Development $ 12.3 19% $ 10.3 $ 24.5 24% $ 19.7
As a percentage of
total revenue 9% 7% 9% 8%
Software costs capitalized $ 8.5 57% $ 5.4 $ 16.2 47% $ 11.0
</TABLE>
The Company has continued to invest significantly in new product development in
addition to ongoing enhancements to existing products. Research and
development costs as a percentage of total revenue were approximately 8% for
1995, 1994 and 1993, increasing to 9% in the second quarter and first six months
of 1996. Consistent with its expectations and plans for 1996, management
made significant investments during the first six months of 1996 in order to
deliver its next-generation (NUMA-Q) products into the market by the end of
1996.
Software costs capitalized continued to increase in the second quarter of 1996
primarily as a result of the Company's emphasis on software developments for
its NUMA-Q product line.
<TABLE>
SELLING, GENERAL AND ADMINISTRATIVE
(dollars in millions)
<CAPTION>
Three Months Ended Six Months Ended
June 29, % July 1, June 29, % July 1,
1996 Chg 1995 1996 Chg 1995
<S> <C> <C> <C> <C> <C> <C>
Selling, general and admin. $ 44.4 13% $ 39.2 $ 82.6 13% $ 73.3
As a percentage of
total revenue 31% 28% 31% 29%
</TABLE>
Consistent with its plans for 1996, the Company's selling, general and
administrative costs have continued to increase both in dollars and as a
percentage of revenue in the second quarter and first six months of 1996 over
the corresponding periods in 1995. The Company has made substantial
investments to strengthen its worldwide sales force and to strategically
position itself for the delivery of the NUMA-Q product line beginning in late
1996. Since the beginning of the year, the Company has increased its total
headcount by 14%, including a 35% increase in major sales account executives
worldwide.
INTEREST AND OTHER, NET
(dollars in millions)
Three Months Ended Six Months Ended
June 29, July 1, June 29, July 1,
1996 1995 1996 1995
Interest, net $ 0.2 $ 0.3 $ 0.4 $ 0.3
Other, net (0.2) (0.2) (0.6) (0.9)
Provisions for income taxes 1.2 4.7 1.4 7.2
Interest income in the second quarter and first six months of 1996 and 1995 was
primarily generated from restricted deposits held at foreign and domestic
banks, short-term investments and cash and cash equivalents. Interest
expense for the same periods includes costs related to Convertible Debentures,
foreign currency hedging loans and capital lease obligations.
Other expense consists primarily of net gains and losses on sale of assets and
discount on sale of receivables.
The provision for income taxes includes benefits related to the Company's
foreign sales corporation and the utilization of available domestic and
foreign tax attributes carried forward from prior years. The effective tax
rate for the second quarter and first six months of 1996 was 27%, compared to
30% for the corresponding periods in 1995 and the overall annual 1995
effective tax rate of 26%.
LIQUIDITY AND CAPITAL RESOURCES
Working capital was $183.7 million at June 29, 1996 compared to $214.7 million
at December 30, 1995. The Company's current ratio at June 29, 1996 and
December 30, 1995 was 2.3:1 and 2.5:1, respectively.
For the first six months of 1996, cash and cash equivalents increased $.3
million. The Company continues to invest in property and equipment ($36.3
million, net), and capitalized software ($16.2 million). Other uses of
funds were increases in intangibles and other assets ($13.5 million), increases
in inventories ($13.8 million), net payments on notes payable ($12.9 million)
and increases in prepaid expenses ($11.8 million). Primary sources of funds
were decreases in net accounts receivables ($43.0 million), depreciation and
amortization ($30.1 million), increases in unearned revenue ($5.2 million),
increases in accrued payroll and other accrued liabilities ($9.2 million),
and stock issuance proceeds from employee stock purchases and stock option
plans ($3.1 million).
The Company has a $20 million receivable sales facility with a group of banks.
At June 29, 1996 accounts receivable in the accompanying consolidated balance
sheet is net of $17 million received by the Company under this agreement to
sell its domestic accounts receivable.
The Company continues to maintain a $50 million revolving line of credit
agreement. The line is unsecured and extends through May 31, 1997. The line
contains certain financial covenants and prohibits the Company from
paying dividends without the lenders' consent. No borrowings were
outstanding under the line of credit as of June 29, 1996.
The Company maintains a short-term borrowing agreement with a foreign bank to
cover foreign currency exposures. Maximum borrowings allowed under the
foreign bank agreement were $54.9 million, of which $28.2 million was
outstanding at June 29, 1996 (based on currency exchange rates on such date).
In addition to the above borrowing agreements, the Company maintains
miscellaneous borrowing arrangements with a foreign bank. No borrowings were
outstanding under the line of credit as of June 29, 1996.
Management expects that current funds, funds from operations, and the bank
lines of credit will provide adequate resources to meet the Company's
anticipated cash requirements during 1996 resulting from its operations and
planned investments in its sales force and NUMA-Q product technology.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SEQUENT COMPUTER SYSTEMS, INC.
/s/ ROBERT S. GREGG
Robert S. Gregg
Sr. Vice President of Finance and
Chief Financial Officer
Date: August 13, 1996
EXHIBIT INDEX
Sequential
Exhibit No. Description Page No.
11 Statement regarding computation
of earnings per share 15
SEQUENT COMPUTER SYSTEMS, INC. AND SUBSIDIARIES
STATEMENT SHOWING CALCULATION OF AVERAGE
COMMON SHARES OUTSTANDING AND EARNINGS
PER AVERAGE COMMON SHARE
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 29, 1996 June 29, 1996
Weighted average number
of common shares outstanding 33,511 33,404
Application of the "treasury
stock" method to the stock option
and employee stock purchase plans 655 486
Weighted average of common stock
equivalent shares attributable
to convertible debentures 575 575
Total common and common
equivalent shares, assuming
full dilution 34,741 34,465
Net income $ 3,306 $ 3,904
Add:
Interest on convertible debentures,
net of applicable income taxes 119 238
Net income, assuming full dilution $ 3,425 $ 4,142
Net income per common share,
assuming full dilution (A) $ 0.10 $ 0.12
(A) In accordance with generally accepted accounting principles, fully-diluted
earnings per share may not exceed primary earnings per share.
The computation of primary net income per common share is not included as
the computation can be clearly determined from the material contained in
this report.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-04-1997
<PERIOD-END> JUN-29-1996
<CASH> 90,523,000
<SECURITIES> 0
<RECEIVABLES> 138,081,000
<ALLOWANCES> 2,806,000
<INVENTORY> 74,615,000
<CURRENT-ASSETS> 325,718,000
<PP&E> 253,489,000
<DEPRECIATION> 139,202,000
<TOTAL-ASSETS> 511,280,000
<CURRENT-LIABILITIES> 142,012,000
<BONDS> 7,668,000
<COMMON> 336,000
0
0
<OTHER-SE> 358,626,000
<TOTAL-LIABILITY-AND-EQUITY> 511,280,000
<SALES> 180,658,000
<TOTAL-REVENUES> 263,332,000
<CGS> 86,147,000
<TOTAL-COSTS> 150,648,000
<OTHER-EXPENSES> 107,194,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,204,000
<INCOME-PRETAX> 0
<INCOME-TAX> 1,449,000
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,904,000
<EPS-PRIMARY> 0.12
<EPS-DILUTED> 0.12
</TABLE>
