Page 4
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1999
Transition Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to
Commission file number 0-16152
Metrisa, Inc.
(Exact Name of Small Business Issuer as
Specified in Its Charter)
Delaware 04-2891557
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
25 Wiggins Avenue, Bedford, Massachusetts 01730-2323
(Address of Principal Executive Offices)
(781) 275-3300
(Issuers Telephone Number, Including Area Code)
Check whether the issuer: (1) filed all reports required to be
filed by Section 13 or 15(d) of the Exchange Act during the past
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 No
As of June 30, 1999, 1,020,174 shares of Common Stock were
outstanding.
Transitional Small Business Disclosure Format:
Yes No
FORM 10-QSB
QUARTERLY REPORT
TABLE OF CONTENTS
Facing Page_________________________________________________ 1
Table of Contents___________________________________________ 2
PART I. FINANCIAL INFORMATION (*)
Item 1. Condensed Consolidated Financial Statements
Balance Sheets_______________________________ 3
Statements of Operations_____________________ 5
Statements of Cash Flows_____________________ 7
Notes to Condensed Consolidated
Financial Statements______________ 8
Item 2. Management's Discussion and Analysis of
Financial Condition And Results of Operations_____ 11
PART II. OTHER INFORMATION
Item 1. Legal Proceedings_________________________________ 15
Item 2. Changes in Securities_____________________________ 15
Item 3. Defaults upon Senior Securities___________________ 15
Item 4. Submissions of Matters to a
Vote of Security Holders_______________________ 15
Item 5. Other Information_________________________________ 15
Item 6. Exhibits and Reports on Form 8-K__________________ 15
SIGNATURES___________________________________________________ 16
(*) The financial information at September 30, 1998 has been
taken from the audited financial statements at that date. All
other financial statements are unaudited.
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
METRISA, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
(Unaudited)
June 30, September 30,
1999 1998
(*)
CURRENT ASSETS:
Cash and cash equivalents $1,273,919 $ 2,469,053
Accounts receivable, less allowance
for doubtful accounts of $78,500
at June 30, 1999 and
September 30, 1998 2,184,819 1,926,602
Inventories 1,374,753 1,370,460
Other current assets 101,136 93,029
TOTAL CURRENT ASSETS 4,934,627 5,859,144
Equipment and Fixtures - net 407,296 377,783
Other Assets - net 1,819,787 1,970,981
TOTAL ASSETS $7,161,710 $8,207,908
The accompanying notes are an integral part of these financial
statements.
(*)Balance sheet at September 30, 1998 has been taken from the
audited financial statements at that date. All other financial
statements are unaudited.
METRISA, INC.
CONSOLIDATED BALANCE SHEETS - Continued
LIABILITIES AND STOCKHOLDERS' EQUITY
(Unaudited)
June 30, September 30,
1999 1998
(*)
CURRENT LIABILITIES:
Notes payable to bank $ 488,938 $ 213,059
Accounts payable 1,634,620 1,312,773
Accrued expenses and other 276,836 508,319
Current portion of long-term debt 534,753 561,441
TOTAL CURRENT LIABILITIES 2,935,147 2,595,592
Long- term debt,
less current portion 2,033,528 2,833,777
Commitments
STOCKHOLDERS' EQUITY:
Common stock, $.50 par value, 4,000,000 shares
authorized; 1,020,174 and 1,022,911 shares
issued and outstanding at June 30, 1999
and September 30, 1998,
respectively 510,087 511,456
Additional paid-in capital 1,983,079 2,455,069
Retained earnings
(accumulated deficit) (300,131) 242,276
------------ ----------
2,193,035 3,208,801
Less: Treasury stock (at cost) -- (430,262)
TOTAL STOCKHOLDERS' EQUITY 2,193,035 2,778,539
TOTAL LIABILITIES AND
STOCKHOLDERS'EQUITY $7,161,710 $8,207,908
The accompanying notes are an integral part of these financial
statements.
(*)Balance sheet at September 30, 1998 has been taken from the
audited financial statements at that date. All other financial
statements are unaudited.
METRISA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three-Month Period Ended June 30,
1999 1998
NET REVENUES $2,186,430 $2,141,178
COST OF SALES 946,778 990,772
GROSS PROFIT 1,239,652 1,150,406
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 964,674 867,806
RESEARCH AND DEVELOPMENT 157,320 168,577
TOTAL OPERATING EXPENSES 1,121,994 1,036,383
INCOME FROM OPERATIONS 117,658 114,023
INTEREST EXPENSE - net 83,456 15,781
INCOME BEFORE INCOME TAX
AND MINORITY INTEREST 34,202 98,242
INCOME TAXES (18,263) --
INCOME BEFORE MINORITY INTEREST 52,465 98,242
MINORITY INTEREST IN NET INCOME OF
CONSOLIDATED SUBSIDIARY -- --
NET INCOME $52,465 $98,242
NET INCOME PER COMMON SHARE:
BASIC $0.05 $0.10
DILUTED 0.05 0.10
SHARES OUTSTANDING:
BASIC 1,020,174 1,022,822
DILUTED 1,115,552 1,022,822
The accompanying notes are an integral part of these financial
statements.
METRISA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Nine-Month Period Ended June 30,
1999 1998
NET REVENUES $5,773,489 $5,679,760
COST OF SALES 2,688,548 2,646,932
GROSS PROFIT 3,084,941 3,032,828
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 2,874,485 2,576,275
RESEARCH AND DEVELOPMENT 489,484 506,740
TOTAL OPERATING EXPENSES 3,363,969 3,083,015
LOSS FROM OPERATIONS (279,028) (50,187)
INTEREST EXPENSE - net 256,602 75,288
LOSS BEFORE INCOME TAX AND
MINORITY INTEREST (535,630) (125,475)
INCOME TAXES 6,777 --
LOSS BEFORE MINORITY INTEREST ($542,407) (125,475)
MINORITY INTEREST IN NET INCOME OF
CONSOLIDATED SUBSIDIARY -- 17,345
NET LOSS ( $542,407) ( $142,820)
NET LOSS PER COMMON SHARE:
BASIC AND DILUTED ($0.53) ($0.14)
SHARES OUTSTANDING-BASIC AND
DILUTED 1,020,174 1,022,822
The accompanying notes are an integral part of these financial
statements.
METRISA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine-Month Period Ended June
30,
1999 1998
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (542,407) $ (142,820)
Adjustments to reconcile net loss to net
cash provided by (used for) operating activities:
Depreciation and amortization 269,384 209,966
Minority interest -- --
Changes in operating assets and liabilities:
Accounts receivable (258,217) 91,779
Notes receivable -- --
Inventories (4,293) 257,816
Other current assets (8,107) (38,622)
Accounts payable
and accrued expenses 90,364 (784,675)
Net cash used
for operating activities (453,276) (406,556)
CASH FLOWS FROM INVESTING ACTIVITIES:
Equipment and fixtures additions (156,792) (67,158)
Increase in other assets 9,089 (49,842)
Cash Paid for Micromet Acquisition -- (150,000)
Net cash used for --------- ---------
investing activities (147,703) (267,000)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of Common Stock 180 15,785
Increase in bank line of credit 275,879 100,000
Purchase of Treasury Stock (43,277) (42,128)
Payment of note payable
for Micromet Acquisition (208,166) --
Principal payments
of long-term debt (618,771) 107,999
Net cash used --------- -------
for financing activities (594,155) 181,656
_________ _______
Net decrease in cash
and cash equivalents (1,195,134) (491,900)
Cash and cash equivalents,
beginning of period 2,469,053 935,717
----------- ---------
Cash and cash equivalents,
end of period $1,273,919 $ 443,817
The accompanying notes are an integral part of these financial
statements.
METRISA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note A - Basis of Presentation
The accompanying consolidated financial statements have been
prepared in accordance with generally accepted accounting
principles. They include the accounts of Tytronics (defined
below), and subsidiaries for the period ended April 30, 1998 and
the accounts of Metrisa, Inc. including the effects of the
Reorganization (defined below) from the closing date (May 1, 1998)
forward.
On May 1, 1998, the Company (formerly Holometrix, Inc.)
completed a reorganization ("Reorganization") pursuant to which
Tytronics Incorporated ("Tytronics"), the majority owner of the
Company, and National Metal Refining Company ("Nametre"), the
majority owned subsidiary of the Company, were merged into the
wholly-owned subsidiary of the Company, Holometrix Acquisition
Corp., which was followed by the merger of Holometrix Acquisition
Corp. into the Company. As part of this Reorganization, Holometrix
changed its name to Metrisa, Inc., and effected a 50:1 reverse
stock split of its issued and outstanding capital stock. On
February 13, 1998, Tytronics acquired the assets of Micromet
Instruments Inc. ("Micromet"), and thus Micromet was also merged
into Holometrix Acquisition Corp., but as part of Tytronics.
Although Metrisa is the surviving corporation, because the
shareholders of Tytronics obtained a majority of voting rights in
Metrisa, Tytronics is deemed to be the acquiring entity for
accounting purposes. Accordingly, the Reorganization has been
accounted for as a recapitalization of Tytronics and the
acquisition by Tytronics of the minority interests of Metrisa
(formerly Holometrix) and Nametre under the purchase method of
accounting in accordance with Accounting Principles Board Opinion
No. 16, "Business Combinations." The accompanying financial
statements reflect at the closing date, the acquisition by
Tytronics of the minority interest of Metrisa and Nametre based on
an independent valuation of Tytronics, Nametre, and Metrisa by an
independent investment banker.
A 50:1 reverse stock split was also effected in May 1998 in
connection with the Company's Reorganization and resulting re-
capitalization. In addition, the Company's Certificate of
Incorporation was amended to change its authorized common stock and
par value to 2,000,000 shares with a $.50 par value. At the Annual
Meeting held on March 4, 1999, the authorized shares of common
stock were increased to 4,000,000 shares. All net income per share
information and common stock information presented in the
accompanying consolidated financial statements and notes to the
financial statements have been retroactively restated to reflect
the stock split and re-capitalization.
The results of operations for the interim period reported are
not necessarily indicative of those that may be expected for the
full year. The accompanying financial information is unaudited;
however, in the opinion of management, all adjustments (consisting
solely of normal recurring adjustments) necessary to a fair
presentation of the operating results of the period have been
included. The interim financial statements should be read in
conjunction with the audited financial statements and notes thereto
for the year ended and as of September 30, 1998 included in the
Company's Annual Report on Form 10-KSB. Certain amounts reported
in prior years have been reclassified to be consistent with the
current year presentation.
Note B - Inventory
Inventory consisted of the following at:
June 30, 1999 September 30, 1998
Raw materials $ 931,830 $858,241
Work-in-process 227,319 263,213
Finished Goods 215,604 249,006
---------- ---------
$ 1,374,753 $1,370,460
Note C - Net Income/Loss Per Share
In the first quarter of fiscal 1998, the Company adopted
Statement of Financial Accounting Standards No. 128 ("SFAS 128"),
"Earnings Per Share". SFAS 128 requires the presentation of both
basic and diluted earnings per share and replaces the previously
required standards for computing and presenting earnings per share.
Outstanding options and warrants are included in the computation of
diluted earnings per share using the treasury stock method when
their effect is dilutive. For the three month period presented,
except for 143,738 of warrants for common shares issued to Sirrom
Capital Corporation (now Finova), the exercise price of all other
options and warrants was greater than the average market price of
the Company's common stock. Net income (loss) per share amounts
for all periods have been presented and where appropriate restated
to conform to the requirements of SFAS 128. The following is a
reconciliation of the denominator (number of shares) used in the
computation of income (loss) per share. The numerator (net income
or loss) is the same for the basic and diluted computations.
Three Month Period Ended June 30,
1999 1998
Basic shares 1,020,174 1,022,822
Effect of
dilutive securities 95,378 -
--------- ---------
Dilutive shares 1,115,552 1,022,822
Nine Month Period Ended June 30,
1999 1998
Basic shares 1,020,174 1,022,822
Effect of
dilutive securities -- --
--------- ---------
Dilutive shares 1,020,174 1,022,822
The following table summarizes securities that were outstanding
as of June 30, 1999 and 1998, but not included in the calculation
of diluted income (loss) per share because such shares are
antidilutive:
Three Month Period and Nine Month Period Ended
June 30,
1999 1998
Options 172,880 121,384
Warrants 539,340 377,447
Note D - Supplemental Disclosure of Cash Flow Information
In February 1998, Tytronics acquired substantially all of the
assets of Micromet Instruments, Inc., with a payment of cash of
$150,000 and a note payable of $208,000. Information related to
this transaction is as follows:
Net Assets Acquired $358,000
Less Note Payable $208,000
Cash Paid for $150,000
Acquisition
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Three-Month Period Ended June 30,1999 as Compared With the Three-
Month Period Ended June 30,1998
- -------------------------------
Net Revenues in the third quarter of fiscal 1999 totaled
$2,186,430 as compared to $2,141,178 in the comparable quarter of
1998, an increase of $45,252. This increase was a result of
increased sales in the Tytronics division of $39,000, an increase
of $14,000 in the Nametre division, offset by a decrease of $8,000
in the Holometrix-Micromet division.
Cost of sales decreased by $43,994 or 4% from $990,772 (46% of
sales) in the third quarter of 1998, to $946,778 (44% of sales) in
the same period for fiscal 1999. This decrease in cost of sales is
attributed primarily to the increase in higher margin sales in the
Holometrix-Micromet division, coupled with efficiencies in
manufacturing and ongoing cost reductions across all divisions.
Selling, general and administrative expenses increased by
$96,868, or 11%, from $867,806 (41% of sales) to $964,674 (44% of
sales). This increase was the result of a combination of increased
selling and marketing support efforts, increased general and
administrative costs resulting from the amortization of expenses
related to the Reorganization completed in April, 1998, and finance
cost amortization related to the $2,000,000 subordinated debt
financing in September 1998.
Research and development decreased $11,257 from $168,577 (8% of
sales) to $157,320 (7% of sales). This decrease is as a result of
cost reductions achieved due to the engineering efficiencies
realized from the consolidation of Micromet.
Interest Expense was $83,456 in the third quarter of 1999,
compared with $15,781 in the comparable period of fiscal 1998.
This increase is primarily due to the interest on the $2,000,000
subordinated debt financing in September 1998.
Net Income decreased by $45,777 from $98,242 in the third
quarter of 1998 to $52,465 in the third quarter of 1999. This
decrease in net income is due primarily to the increased interest
expense incurred as a result of the $2,000,000 subordinated debt
financing in September 1998, offset by a reversal of overpaid
income taxes.
Nine-Month Period Ended June 30,1999 as Compared With the Nine-
Month period Ended June 30,1998
- -------------------------------
Net Revenues in the nine months of fiscal 1999 increased by
$93,729 to $5,773,489, from $5,679,760 in the comparable period of
1998. This 2% increase was primarily a result of a $510,000
increase in Tytronics sales, $82,000 increase in Holometrix-
Micromet sales, offset by a $498,000 decrease in Nametre sales
primarily due to the decline in Nametre's Asian sales.
Cost of sales increased by $41,616, or 2%, from $2,646,932 (47% of
sales) in the first nine months of 1998, to $2,688,548 (also 47% of
sales) in the same period of fiscal 1999. This increase in cost of
sales is attributed primarily to the increase in revenues.
Selling, general and administrative expenses increased by
$298,210, or 12%, from $2,576,275 (45% of sales) to $2,874,485 (50%
of sales) due to increased selling and marketing support efforts,
the inclusion of Micromet's selling and marketing costs for the
full period, increased general and administrative costs resulting
from the amortization of expenses related to the Reorganization of
the Company in April 1998, and the amortization of financing costs
related to the $2,000,000 subordinated debt financing in September
1998.
Research and development decreased by $17,256 from $506,740 (9%
of sales) to $489,484 (also 9% of sales). The decrease was a
result of cost reductions achieved due to the efficiencies realized
from the consolidation of Micromet.
Interest Expense was $256,602 for the first nine months of 1999,
compared with $75,288 in the comparable period of fiscal 1998. The
increase of $181,314 is due primarily to the $2,000,000
subordinated debt financing in September 1998.
Net Loss was $542,407 in the first nine months of fiscal 1999,
compared with a net loss of $142,820 in the comparable period of
fiscal 1998. The increase in net loss is due primarily to the
inclusion of Micromet's expenses for the full period, the
amortization of Reorganization and financing costs, and interest
expense incurred as a result of the $2,000,000 subordinated debt
financing in September 1998, offset by an increase in gross profit
of $52,113 and the gain of $34,653 that resulted from forgiven
interest on debenture debt to former stockholders of the Nametre
division.
LIQUIDITY AND CAPITAL RESOURCES
Total Assets decreased by $1,046,198 (13%) in the first nine
months of fiscal 1999, from $8,207,908 at September 30,1998 to
$7,161,710 at June 30,1999. Cash decreased by $1,195,134,
primarily due to the completion of the payment of debt associated
with the acquisition of Micromet, payment of expenses and interest
associated with the funding of the $2,000,000 subordinated debt
financing, the expenses associated with the Reorganization, and
payment of debt to former stockholders and others. Due to
decreased collection activity, accounts receivable increased by
$258,217 in the first nine months of fiscal 1999. Inventories
increased by $4,293, other current assets increased by $8,107 and
equipment and fixtures increased by $29,513, due to increased
purchases of $156,792 offset by $127,279 of depreciation. Other
assets decreased by $151,194, mainly due to amortization.
Total Liabilities decreased by $460,694 in the first nine months
of fiscal 1999, primarily due to a decrease of $826,937 in long
term debt, offset by an increase of $275,879 in notes payable to
bank, an increase in accounts payable of $321,847 and a decrease of
$231,483 in accrued expenses.
Accrued expenses decreased by $231,483 from $508,319 at
September 30,1998 to $276,836 at June 30,1999, primarily because of
payment of taxes. Total long-term debt decreased by $826,937 from
$3,395,218 at September 30, 1998 to $2,568,281 at June 30,1999.
This is due to the retirement of $208,166 debt associated with the
Micromet acquisition, $113,713 debt to former stockholders,
$229,179 to other long-term obligations, plus a reclassification
and transfer of $275,879 to notes payable to bank.
Cash flows were negative in the first nine months of fiscal
1999, amounting to $1,195,134 as compared to a negative $491,900 in
the comparable period of fiscal 1998. Operating cash flows were
also negative at $453,276, compared to $406,556 for the same period
in fiscal 1998. Operating cash flows approximated the sum of the
net loss of $542,407 less depreciation and amortization of
$269,384, with increases in accounts receivable of $258,217,
inventory of $4,293 and other current assets of $8,107, offset by
increases in accounts payable and accrued expenses of $90,364.
As of June 30, 1999, the Company had an outstanding order
backlog for product and services of approximately $853,000 as
compared to a backlog of $692,000 as of June 30,1998. The Company
believes that all except $135,000 of the current backlog will be
realized in fiscal 1999.
Notes Payable Line of Credit
The Company is party to a Silicon Valley Bank combined line of
credit and term loan of $1,750,000, secured by substantially all
assets of the Company. Advances under this line cannot exceed 75%
of the Company's eligible accounts receivable plus 15% of
inventory, as defined. All outstanding amounts are payable on
demand and advances are contingent upon maintaining certain
covenants relative to profitability, liquidity and tangible net
worth. As of June 30, 1999, the Company was in compliance with all
covenants and ratios of this line of credit, and the term loan was
fully repaid.
As of September 29, 1998, the Company was party to a $2,000,000
subordinated debt financing agreement with Sirrom Capital
Corporation (now Finova), secured by substantially all of the
assets of the Company, but subordinated to the Silicon Valley Bank
financing. This loan is due in full September 30, 2003, with
interest-only payments for the first two years.
Effect of Reorganization and Other Company Initiatives
The Company expects to continue to invest in enhanced sales
and marketing efforts, new product development, and the development
of strategic relationships, including licensing, acquisitions,
mergers, or OEM agreements. Management believes that operating
capital and the line of credit from Silicon Valley Bank, and the
$2,000,000 subordinated debt financing from Sirrom Capital
Corporation (now Finova), will provide sufficient capital to
maintain stable Company operations throughout fiscal 1999. As of
May 1, 1998, the Company completed the Reorganization previously
discussed, pursuant to which Tytronics, Micromet and Nametre were
merged into the wholly-owned subsidiary of the Company, Holometrix
Acquisition Corp., which was followed by the merger of Holometrix
Acquisition Corp. into the Company. As part of the Reorganization,
Holometrix changed its name to Metrisa, Inc., and effected a 50:1
reverse stock split of its issued and outstanding capital stock.
Management believes that the Reorganization will result in
increased efficiencies for the Company and provide for more stable
Company operations. However, there can be no assurance that
additional or adequate profitability and operating funds will be
generated as a result of revenue increases or the Reorganization,
or that strategic relationships will materialize, or that
additional funding, if required, can be obtained on acceptable
terms.
Year 2000 ("Y2K")
The Company is aware of the issues related to the approach of
the Year 2000 and has assessed and investigated what steps must be
taken to ensure that its critical systems and equipment will
function appropriately after the turn of the century. The
assessments included a review of what systems and equipment need to
be changed or replaced in order to function correctly.
With the exception of remediation and implementation
consequences not known to the Company at this time, the Company
believes that all systems should be fully implemented by the end of
the fourth quarter of fiscal 1999.
As part of the Company's assessment of Y2K issues,
consideration was given to the possible impact upon the Company
from using purchased software, suppliers and outside service
providers. The Company's efforts with regard to Y2K issues are
dependent in part upon information received from such suppliers and
vendors upon which the Company has reasonably relied. While it is
not possible for the Company to predict all future outcomes and
eventualities, the Company is not aware, at this time, of any Y2K
non-compliant situations with regard to any of its purchased
software or its use of suppliers and outside service providers.
The Company estimates that it will spend approximately $100,000
to fully implement its Y2K compliance program. All Y2K costs have
been and will continue to be funded from operations.
The Company has evaluated its instruments and associated
software and has found them generally to be Y2K compliant, since
most of the software does not rely on any date-related information
for its normal operation.
The Company has formulated a contingency plan to deal with Y2K
issues. However, due to the complexity and widespread nature of
such issues, the contingency planning process of necessity must be
an ongoing one requiring possible further modification as more
information becomes known regarding (1) the Company's own systems
and facilities, and (2) the status and changes therein of the Y2K
compliance efforts of outside suppliers and vendors. As
significant Y2K uncertainties remain outside the control of the
Company, at this time the Company is unable to determine a most
reasonably likely worst case scenario.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
The Company was not involved in any material legal proceedings
as of the date of this report.
Item 2. Changes in Securities
Not applicable.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
Not applicable.
Item 5. Other Information
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Financial Data Schedule.
(b) Reports on Form 8-K
Not applicable.
SIGNATURE
Pursuant to the requirements of the Exchange Act, the Registrant
has caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Metrisa, Inc.
By: /s/ John E. Wolfe
John E. Wolfe
President and Chief Financial Officer
Date: August 12, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM 10-QSB
JUNE 30, 1999, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> JUN-30-1999
<CASH> 1,273,919
<SECURITIES> 0
<RECEIVABLES> 2,263,319
<ALLOWANCES> (78,500)
<INVENTORY> 1,374,753
<CURRENT-ASSETS> 4,934,627
<PP&E> 1,381,316
<DEPRECIATION> (974,020)
<TOTAL-ASSETS> 7,161,710
<CURRENT-LIABILITIES> 2,935,147
<BONDS> 2,033,528
0
0
<COMMON> 510,087
<OTHER-SE> 1,682,948
<TOTAL-LIABILITY-AND-EQUITY> 7,161,710
<SALES> 5,773,489
<TOTAL-REVENUES> 5,773,489
<CGS> 2,688,548
<TOTAL-COSTS> 2,688,548
<OTHER-EXPENSES> 3,363,969
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 256,602
<INCOME-PRETAX> (535,630)
<INCOME-TAX> 6,777
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (542,407)
<EPS-BASIC> (0.53)
<EPS-DILUTED> (0.53)
</TABLE>
