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 November 30, 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 0-15811
BRODERBUND SOFTWARE, INC.
(Exact name of registrant as specified in its charter)
Delaware 94-2768218
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
500 Redwood Blvd.
Novato, CA 94948-6121
(Address of principal executive offices)
Telephone Number (415) 382-4400
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 November 29, 1996 there were 20,698,509 shares of the Registrant's Common
Stock Outstanding.
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BRODERBUND SOFTWARE, INC.
Table of Contents
PART I. FINANCIAL INFORMATION Page
----
Item 1. Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets
At November 30, 1996 and August 31, 1996 ......... 3
Condensed Consolidated Statements of Income
Three Months Ended November 30, 1996 and 1995 .... 4
Condensed Consolidated Statements of Cash Flows
Three Months Ended November 30, 1996 and 1995 .... 5
Notes to Condensed Consolidated Financial Statements .... 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ............... 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K ........................ 13
Signature ................................................................. 14
2
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PART I - FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements
BRODERBUND SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
November 30, August 31,
1996 1996
-------- --------
ASSETS
Current assets:
Cash and short-term investments $149,103 $150,893
Accounts receivable, net 33,726 5,956
Inventories 3,327 3,140
Deferred income taxes 18,331 15,057
Other current assets 878 869
-------- --------
Total current assets 205,365 175,915
Equipment and improvements, net 5,573 7,014
Purchased technology and advances, net 12,007 13,090
Investments in affiliates 3,600 4,053
Other assets 457 360
-------- --------
$227,002 $200,432
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 11,479 $ 4,442
Accrued income taxes 18,498 8,966
Other accrued expenses 20,397 20,014
-------- --------
Total current liabilities 50,374 33,422
Deferred income taxes 1,140 1,462
-------- --------
Total liabilities 51,514 34,884
-------- --------
Stockholders' equity:
Common stock 31,966 31,383
Retained earnings 143,522 134,165
-------- --------
Total stockholders' equity 175,488 165,548
-------- --------
$227,002 $200,432
======== ========
See accompanying notes.
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BRODERBUND SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three months ended
November 30,
-----------------------
1996 1995
-------- --------
Net revenues $ 61,491 $ 70,961
Cost of revenues 22,177 24,920
-------- --------
Gross margin 39,314 46,041
Operating expenses:
Sales and marketing 14,154 10,792
Research and development 7,713 7,437
General and administrative 2,907 2,832
Amortization of purchased technology 1,022 --
-------- --------
Total operating expenses 25,796 21,061
-------- --------
Income from operations 13,518 24,980
Interest and dividend income, net 1,549 1,311
Equity in earnings (loss) of joint venture (603) 269
-------- --------
Income before income taxes 14,464 26,560
Provision for income taxes 5,569 10,624
-------- --------
Net income $ 8,895 $ 15,936
======== ========
Net income per share $ 0.42 $ 0.73
======== ========
Shares used in computation 21,109 21,687
======== ========
See accompanying notes.
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BRODERBUND SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
November 30,
----------------------
1996 1995
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 8,895 $ 15,936
Adjustments to reconcile net income to net cash
provided (used) by operating activities:
Equity in loss (earnings) of joint venture 603 (269)
Depreciation and amortization 1,044 781
Amortization of purchased technology 1,022 --
Deferred income taxes (3,596) (2,866)
Changes in operating assets and liabilities (11,111) (4,137)
--------- ---------
Net cash provided (used) by operating activities (3,143) 9,445
Cash flows from investing activities:
Investments in affiliates (150) --
Disposals (additions) to equipment and improvements 647 (1,422)
Other 73 (61)
--------- ---------
Net cash provided by (used in) investing activities 570 (1,483)
--------- ---------
Cash flows from financing activities:
Employee stock purchase plan 413 --
Exercise of stock options 115 585
Tax benefit of stock option exercises 55 843
--------- ---------
Net cash provided by financing activities 583 1,428
--------- ---------
Translation adjustment 200 (39)
--------- ---------
Net increase (decrease) in cash and short term investments (1,790) 9,351
Cash and short-term investments, beginning of period 150,893 126,547
--------- ---------
Cash and short-term investments, end of period $ 149,103 $ 135,898
========= =========
</TABLE>
See accompanying notes.
5
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BRODERBUND SOFTWARE, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. Basis of Presentation
The condensed consolidated financial statements for the three months ended
November 30, 1996 and 1995 are unaudited and reflect all adjustments, consisting
of normal recurring adjustments, which are, in the opinion of management,
necessary for a fair presentation of the results for the interim periods. These
condensed consolidated financial statements should be read in conjunction with
the consolidated financial statements and notes thereto included in the
Company's Annual Report (Form 10-K) for the year ended August 31, 1996. The
results of operations for the three months ended November 30, 1996 are not
necessarily indicative of the results for the entire fiscal year ending August
31, 1997.
Note 2. Recently Issued Accounting Principles
On October 23, 1995 the Financial Accounting Standards Board issued Statement
No. 123 (SFAS No. 123), "Accounting for Stock-Based Compensation" which will be
effective for the fiscal year ending August 31, 1997. SFAS No. 123 permits a
company to choose either a new fair value based method or the current Accounting
Principles Board Opinion No. 25 intrinsic value based method of accounting for
its stock-based compensation arrangements. The Company has elected to continue
to follow current practice but SFAS No. 123 requires pro forma disclosures of
net income and earnings per share computed as if the fair value based method had
been applied.
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Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
The following information should be read in conjunction with the consolidated
financial statements and the notes thereto and in conjunction with Management's
Discussion and Analysis of Financial Condition and Results of Operations in the
Company's Annual Report (Form 10-K) for the year ended August 31, 1996. This
Quarterly Report on Form 10-Q, and in particular Management's Discussion and
Analysis of Financial Condition and Results of Operations, contains forward
looking statements regarding future events or the future performance of the
Company that involve certain risks and uncertainties including those discussed
in "Factors Affecting Future Operating Results" below at pages 11 to 12, as well
as in the Company's 1996 Annual Report on Form 10-K, as filed with the
Securities and Exchange Commission ("S.E.C."). Actual events or the actual
future results of the Company may differ materially from any forward looking
statements due to such risks and uncertainties. The Company assumes no
obligation to update these forward looking statements to reflect actual results
or changes in factors or assumptions affecting such forward looking assumptions.
This analysis is provided pursuant to applicable S.E.C. regulations and is not
intended to serve as a basis for projections of future events.
RESULTS OF OPERATIONS.
The following table sets forth certain consolidated statement of income data as
a percentage of net revenues for the periods indicated:
Three months ended
November 30,
------------------
1996 1995
---- ----
Net revenues 100% 100%
Cost of revenues 36% 35%
--- ---
Gross margin 64% 65%
Operating expenses:
Sales and marketing 23% 15%
Research and development 12% 11%
General and administrative 5% 4%
Amortization of purchased technology 2% --
--- ---
Total operating expenses 42% 30%
--- ---
Income from operations 22% 35%
Nonoperating income 2% 2%
--- ---
Income before income taxes 24% 37%
Provision for income taxes 9% 15%
--- ---
Net income 15% 22%
=== ===
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NET REVENUES.
The Company derives revenue from products which are published by Broderbund
(published products) and products from other software publishers which are
distributed by Broderbund (affiliated label products). The Company sells its
products in North America through distributors and retailers, as well as
directly to consumers. The Company's international sales are derived from a
foreign subsidiary and licensing arrangements with foreign distributors.
Net revenues for the first quarter of fiscal 1997 were $61.5 million, a decrease
of 13% from the $71.0 million recorded in the first quarter of fiscal 1996. Net
revenues from the personal productivity and the education categories increased
22% and 9%, respectively, in the first quarter of fiscal 1997 compared to the
first quarter of fiscal 1996. However, net revenues from the entertainment
category and from affiliated label company products declined 51% and 44%,
respectively, in the first quarter of fiscal 1997 compared to the same period
last year.
The increase in revenues from the personal productivity category was primarily
due to increases in sales of Family Tree Maker(TM) and 3D Home Architect(R) and
from the inclusion of sales of Click Art(R) products as a result of the
Company's acquisition of T/Maker Company in August 1996. The increase in the
education category was primarily due to increases in sales of the recently
updated Where in the World is Carmen Sandiego?(R) and Where in the USA is Carmen
Sandiego?(R)
The decline in revenues from the entertainment category was primarily due to
lower sales of Myst(R) and In the 1st Degree(R), a product which was first
released in the comparable quarter last year. As a result, net revenues from the
entertainment category represented 13% of total net revenues in the first
quarter of fiscal 1997 compared to 23% for the same period last year.
Revenues from sales of affiliated label products declined as a percentage of
overall net revenues in the first quarter from 25% in fiscal 1996 to 16% in
1997. In the first quarter of fiscal 1996, several successful products were
released by affiliated label companies, including Ascendancy(TM) from The Logic
Factory and Silent Steel(TM) from Tsunami Media. Net revenues from the Living
Books joint venture between Broderbund and Random House declined in the first
quarter of fiscal 1997 compared to the same period last year due primarily to
the decline in sales of products which were released prior to August 31, 1995.
During the first quarter of fiscal 1997, the Company released a total of 10 new
products, three of which were published products including Where in the USA is
Carmen Sandiego? and Williams-Sonoma Guide to Good Cooking(TM). Seven of the new
products were from affiliated label companies including Green Eggs and Ham and
Stellaluna from Living Books, Live Pix(TM) from Live Picture, Inc., Real
Audio(TM) Player Plus from Progressive Networks and two titles from Headbone
Interactive. In the same period of the prior year, the Company released 12 new
products, three of which were published products, In the 1st Degree, Learn the
Art of Magic(TM) and Family Tree Maker 3.0 and nine of the new products were
affiliated label releases.
COST OF REVENUES.
Cost of revenues includes cost of goods sold, royalties paid to developers and
accrued technical support costs, which relate primarily to telephone support
provided to consumers shortly after they purchase software. The Company does not
capitalize software development costs as the impact on the financial statements
would be immaterial. In the first quarter of fiscal 1997, the Company's gross
margin was 64% compared to 65% in the first quarter of fiscal 1996. Although net
revenues from affiliated label company products, which carry a lower gross
margin, declined in the first quarter of fiscal 1997, the Company embarked on an
aggressive sales and marketing strategy by decreasing prices to increase unit
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volume and market share, the impact of which offset any increase in gross margin
which otherwise may have been realized. The Company currently expects its gross
margin to continue to be pressured by lower retail prices as compared to the
previous year.
SALES AND MARKETING.
Sales and marketing expenses increased 31% to $14.2 million in the first quarter
of fiscal 1997 from $10.8 million in the first quarter of fiscal 1996. The
increase was primarily due to the Company's increased emphasis an advertising,
promotions and other sales and marketing programs which resulted in additional
expenditures for marketing programs with the Company's channel partners. The
Company also incurred additional expenses in order to monitor its channel
partners' compliance with these programs and to track inventory levels at
individual retail outlets. The intense competition for high quality and adequate
levels of retail shelf space continues to increase as the number of software
products and consumer platforms increases. As a result, the Company believes
that it may incur increases in sales and marketing expenses in the future in an
effort to more clearly distinguish its products from its competitors' products
and to obtain adequate shelf space.
RESEARCH AND DEVELOPMENT.
Research and development expenses increased 4% to $7.7 million in the first
quarter of fiscal 1997 from $7.4 million in the first quarter of fiscal 1996.
The increase was primarily attributable to higher employee-related expenses from
increased headcount as well as expanded localization efforts to adapt products
for foreign markets, which were partially offset by lower bonus and profit
sharing provisions due to the decline in profitability. In addition, the Company
continues to invest in the development of CD-ROM based multimedia products which
have the capacity for expanded sound, animation and information content. The
development of products with more content increases research and development
costs. To partially offset this increase in content costs, the Company has
implemented proprietary development systems to reduce the number of programming
hours required to bring a product to market on multiple platforms.
GENERAL AND ADMINISTRATIVE.
General and administrative expenses increased 3% to $2.9 million in the first
quarter of fiscal 1997 from $2.8 million in the first quarter of fiscal 1996.
The increase was primarily attributable to higher employee-related expenses from
increased headcount. These expenses were partially offset by lower bonus and
profit sharing provisions due to the decline in profitability.
AMORTIZATION OF PURCHASED TECHNOLOGY.
The Company is amortizing the value of the technology purchased in the Company's
acquisition of T/Maker Company in August 1996 and assumed in connection with the
acquisition of Banner Blue Software, Inc. in April 1995 using the straight line
method over a period of three years.
NONOPERATING INCOME.
Nonoperating income includes equity in earnings of the Living Books joint
venture, interest and dividend income and other nonrecurring items. The Company
and Random House, Inc. are equal partners in a joint venture to publish Living
Books(R) products. Both Broderbund and Random House, Inc. are distributing
Living Books through their respective distribution channels under an affiliated
label arrangement. The Company reports its 50% share in earnings and losses of
the Living Books joint venture under the equity method of accounting. The
Company's share is based on the joint venture's
9
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most recent quarter-end results, which are reported on a calendar year basis.
The Company's share in the loss of the joint venture was $603,000 in the first
quarter of fiscal 1997 as compared with earnings of $269,000 in the first
quarter of fiscal 1996. The decline in earnings of the joint venture was
primarily due to the decline in net revenues of the joint venture. The Company
expects the profitability of the Living Books joint venture to be more variable
than that of the Company because of the effect that the timing of new product
releases has on Living Books' smaller revenue base.
Interest and dividend income increased to $1.5 million in the first quarter of
fiscal 1997 from $1.3 million in the first quarter of fiscal 1996. The increase
was primarily due to higher prevailing interest rates and increased invested
cash and short-term investments balances.
PROVISION FOR INCOME TAXES.
The Company's effective income tax rate decreased to 38.5% in the first quarter
of fiscal 1997 from 40.0% in the first quarter of fiscal 1996 principally as a
result of higher tax exempt interest and dividend income as a percentage of
income before income taxes.
NET INCOME.
Net income declined 44% to $8.9 million or $.42 per share in the first quarter
of fiscal 1997 from $15.9 million or $.73 per share in the first quarter of
fiscal 1996.
LIQUIDITY AND CAPITAL RESOURCES.
To date, the Company's primary source of liquidity has been cash generated from
operations. The Company's working capital increased $12.5 million during the
first quarter of fiscal 1997 to $155.0 million from $142.5 million at August 31,
1996. Cash and short-term investments decreased $1.8 million to $149.1 million
at November 30, 1996 from $150.9 million at the end of the prior fiscal year.
Accounts receivable, net of reserves, increased $27.7 million to $33.7 million
at the end of the first quarter from $6.0 million at August 31, 1996. Each year
the Company experiences a seasonal fluctuation due to higher revenues generated
by the holiday selling season, which increases the Company's receivables and
working capital in the first half of the fiscal year, and temporarily requires
some of the Company's available cash balances to fund operating activities. In
the second half of the fiscal year, the Company expects to collect a substantial
amount of the receivables generated during the first half of the fiscal year,
thereby increasing cash and decreasing outstanding receivables.
In addition to cash and short-term investments, the Company has $5.0 million
available under an unsecured line of credit agreement with no outstanding
borrowings. Borrowings under the line of credit bear interest at the bank's
prime rate. The line of credit is subject to renewal by the bank on January 31,
1997.
The Company uses its working capital to finance ongoing operations and to fund
the expansion and development of its product lines. In addition, the Company
evaluates from time to time acquisitions of products or companies that
complement the Company's business.
Management believes the existing cash and short-term investments balances and
cash generated from operations will be sufficient to meet the Company's
liquidity and capital needs for the coming year.
10
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FACTORS AFFECTING FUTURE OPERATING RESULTS.
Broderbund operates in a rapidly changing environment that is subject to
many risks and uncertainties. Some of the important risks and uncertainties
which may cause the Company's operating results to differ materially and/or
adversely are discussed below and in the Company's Annual Report and Form 10-K
for the 1996 fiscal year, both of which are on file with the S.E.C.
Fluctuations in Performance and Operating Results.
The Company has experienced, and expects to continue to experience,
significant fluctuations in operating results due to a variety of factors,
including but not limited to, the rate of growth of the consumer software
market, market acceptance of the Company's products or those of its competitors,
the timing of new product introductions, expenses relating to the development
and promotion of new product introductions, changes in pricing policies by the
Company or its competitors, projected and actual changes in platforms and
technologies, timely and successful adaptation to such platforms or
technologies, the accuracy of forecasts of consumer demand, product returns,
market seasonality, the timing of orders from major customers and order
cancellations, and changes or disruptions in the consumer software distribution
channels.
Although the Company's business has generally been highly seasonal, with
net revenues and operating income generally highest in the first fiscal quarter
during the calendar year-end holiday selling season, lower in the second fiscal
quarter, and lowest in the seasonally slow third and fourth fiscal quarters,
during fiscal 1997, the Company anticipates that its results may differ from
that seasonal pattern with results more heavily weighted to the second half of
the fiscal year when several new entertainment products are scheduled to be
released. The Company also believes that the market conditions which resulted in
the year-over-year decline in revenues and profitability experienced in the last
two quarters of fiscal 1996 will continue for at least the next fiscal quarter.
Without growth in net revenues in the next two quarters, the Company's
increasing operating expenses would cause net income to decline when compared to
the same period in the previous year.
Any significant shortfall in net revenues and earnings from the levels
expected by securities analysts and stockholders could result in a substantial
decline in the trading price of the Company's common stock. There can be no
assurance that the Company's stock price will remain at or near its current
level. Moreover, the Company's stock is subject to the volatility generally
associated with technology stocks and may also be affected by broader market
trends or the results reported by other market participants. For example, during
the most recently completed fiscal year, the price per share of the Company's
common stock ranged from $28.50 to $76.88 and in the first fiscal quarter of the
current fiscal year ranged from $22.38 to $30.63.
Industry and Competition.
Recent data indicates a slowdown in growth of end-user demand for consumer
software and hardware during 1996, including the 1996 holiday selling season,
and there can be no assurance that such demand will not continue to slow or to
decline. If such results persist, the Company's future growth in net revenues
could be adversely affected. In addition, the intense competition in the
consumer software business continues to accelerate as an increasing number of
companies, many of which have financial, managerial and technical resources
greater than those of the Company, offer products that compete directly with one
or more of the Company's products. As a result, an increasingly large number of
products are competing for limited shelf space. In response to increasing
product and price competition, the Company has reduced the price of some of its
products, including its best-selling series, The Print Shop(R), as well as Myst,
which places negative pressures on net revenues and gross margins. There can be
no assurance that product prices will not continue to decline as competition
increases, and if such conditions persist, the Company's net revenues and
profitability could be materially and adversely affected. Further, there can be
no assurance that sales of the Company's existing products will continue to
sustain market acceptance and to generate significant levels of revenue in
subsequent
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quarters or that a shortfall in revenue from any product could be replaced in a
timely manner. In addition, sales of products on older platforms and in certain
product lines have declined, and there can be no assurance that sales of these
products will not decline further or experience lower than expected sales
levels. Retailers of the Company's products typically have a limited amount of
shelf space and promotional resources for which there is intense competition.
For example, there are 16 products available from Living Books and it has become
increasing difficult to maintain shelf space in the retail channel for all of
these products. There can be no assurance that retailers will continue to
purchase all of these products or provide these products with adequate levels of
shelf space and promotional support. Because a significant portion of the
Company's expense levels are fixed and based on its expectations regarding
future revenues, operating results would be disproportionately adversely
affected by a decrease in sales or failure to meet the Company's sales
expectations. In addition, competition for creative talent, including
independent developers, has also intensified, and the attraction and retention
of key personnel has become increasingly difficult.
Products and Platforms.
The Company's future success will depend in large part on its ability to
develop and release new products on a timely basis and to achieve widespread
market acceptance for such products. There can be no assurance that expected new
product introductions will not experience material delays, that new products
introduced by the company will achieve any significant degree of market
acceptance, or that such acceptance will be sustained for any length of time. In
addition, because the Company expects that the cost of developing and
introducing new products will continue to increase, the financial risks
associated with new product development will increase as will the risks
associated with material delays in the introduction of such new products. The
substantial year-over-year decline in Myst revenues during the second half of
fiscal 1996 and first fiscal quarter of 1997 was not fully replaced, and there
can be no assurance that the shortfall from the continuing decline in Myst
revenues will be replaced in a timely manner or that introduction of the Myst
sequel product, Riven(TM), will occur in fiscal 1997 or that it will achieve
widespread market acceptance. In addition, the Company believes that electronic
or internet products and services will become an increasingly important platform
and distribution media. The Company's failure to timely and successfully adapt
to and utilize such technologies could materially and adversely affect its
competitive position and its fiscal results.
Distribution.
The distribution channels through which consumer software products are sold
have been characterized by intense competition and continuing uncertainties and
there can be no assurance that distributors and retailers will continue to
purchase the Company's products or provide the Company's products with adequate
levels of shelf space and promotional support. In addition, certain distributors
and retailers have experienced business difficulties and there can be no
assurance such difficulties for these or additional distributors and retailers
will not continue which could have an adverse effect on the operating results
and financial condition of the Company. The Company also permits distributors
and retailers to return products under certain circumstances, and the Company
believes that the rate of product returns will increase as competition in the
distribution channel increases and as mass merchants, office and warehouse
stores become an increasing percentage of the Company's sales. The Company
establishes allowances based on estimated future returns of product after
considering various factors, and accordingly, if the level of actual returns
exceed management's estimates, it could have a material adverse impact on the
Company's operating results. Further, there is increasing pressure from
distributors and retailers to obtain marketing and promotional funds and
discounts in connection with access to shelf space, in-store promotion and sale
of products which has an adverse impact on the Company's net revenues and
profitability, and there can be no assurance that these pressures will not
continue or increase.
12
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PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
13
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SIGNATURE
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.
BRODERBUND SOFTWARE, INC.
(Registrant)
Dated: January 14, 1997
By: /s/ Michael J. Shannahan
-----------------------------
Michael J. Shannahan
Vice President, Finance and
Chief Financial Officer
(Principal Financial Officer)
14
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INDEX OF EXHIBITS
Sequentially
Exhibit Numbered
Number Page
None
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-START> SEP-01-1996
<PERIOD-END> NOV-30-1996
<CASH> 149,103
<SECURITIES> 0
<RECEIVABLES> 66,502
<ALLOWANCES> (32,776)
<INVENTORY> 3,327
<CURRENT-ASSETS> 205,365
<PP&E> 17,018
<DEPRECIATION> 11,445
<TOTAL-ASSETS> 227,002
<CURRENT-LIABILITIES> 50,374
<BONDS> 0
0
0
<COMMON> 31,966
<OTHER-SE> 143,522
<TOTAL-LIABILITY-AND-EQUITY> 227,002
<SALES> 0
<TOTAL-REVENUES> 61,491
<CGS> 22,177
<TOTAL-COSTS> 25,796
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 14,464
<INCOME-TAX> 5,569
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,895
<EPS-PRIMARY> 0.42
<EPS-DILUTED> 0.42
</TABLE>
