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 period ended March 31, 1999
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 0-16230
STRUCTURAL DYNAMICS RESEARCH CORPORATION
(Exact name of registrant as specified in its charter)
Ohio 31-0733928
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2000 Eastman Drive, Milford, Ohio 45150
(Address of principal executive offices)
(Zip Code)
(513) 576-2400
(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 reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
As of April 30, 1999 there were 35,721,782 shares of the
Registrant's Common Stock without par value issued and
outstanding.
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
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STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Statement of Operations
(Unaudited)
(in thousands, except per share data)
<CAPTION>
Three Months Ended
March 31,
1999 1998
<S> <C> <C>
Revenue:
Software licenses $ 45,842 $41,401
Software maintenance and services 62,287 49,711
Total revenue 108,129 91,112
Cost of revenue:
Cost of licenses 8,664 7,500
Cost of maintenance and services 33,546 26,987
Total cost of revenue 42,210 34,487
Gross profit 65,919 56,625
Operating expenses:
Selling and marketing 30,850 25,470
Research and development 15,699 16,054
General and administrative 4,927 4,074
Total operating expenses 51,476 45,598
Operating income 14,443 11,027
Other income, net 1,461 3,646
Income before income taxes 15,904 14,673
Income tax expense 5,885 4,345
Net income $10,019 $10,328
Net income per share:
Basic $ .28 $ .29
Diluted .27 .28
Comprehensive income $ 8,129 $10,169
See accompanying notes to consolidated financial statements.
</TABLE>
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<TABLE>
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheet
(in thousands)
<CAPTION>
March 31, December 31,
1999 1998
(unaudited)
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $142,655 $100,581
Marketable securities 13,513 11,787
Trade accounts receivable, net 84,638 92,169
Other accounts receivable 5,726 8,956
Prepaid expenses and other current
assets 12,339 12,102
258,871 225,595
Marketable securities 9,792 9,937
Property and equipment, at cost:
Computer and other equipment 65,161 63,943
Office furniture and equipment 18,798 18,929
Leasehold improvements 7,815 7,819
91,774 90,691
Less accumulated depreciation and
amortization 67,389 65,017
Net property and equipment 24,385 25,674
Marketable software costs, net 38,312 36,237
Goodwill and other intangibles 32,015 32,886
Other assets 8,983 10,425
Total assets $372,358 $340,754
See accompanying notes to consolidated financial statements.
</TABLE>
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<TABLE>
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheet
(in thousands, except per share data)
<CAPTION>
March 31, December 31,
1999 1998
(unaudited)
<S> <C> <C>
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 14,644 $ 14,840
Accrued expenses 47,395 49,371
Accrued income taxes 8,504 7,242
Deferred revenue 68,871 45,655
Total current liabilities 139,414 117,108
Other long-term liabilities 8,010 7,872
Shareholders' equity:
Common stock, stated value $.0069
per share
Authorized 100,000 shares; outstanding
shares-35,597 and 36,039 net of 2,380
and 1,514 shares in treasury 247 246
Capital in excess of stated value 115,529 114,499
Retained earnings 112,826 102,807
Accumulated other comprehensive
income:
Foreign currency translation
adjustment (3,675) (1,843)
Unrealized holding gain on
investments 7 65
Accumulated other
comprehensive income (3,668) (1,778)
Total shareholders' equity 224,934 215,774
Total liabilities and
shareholders' equity $372,358 $340,754
</TABLE>
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<TABLE>
STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statement of Cash Flows
(Unaudited)
(in thousands)
<CAPTION>
Three Months Ended March 31,
1999 1998
<S> <C> <C>
Cash flows from operating activities:
Net Income 10,019 10,328
Adjustments to reconcile net income
to net cash flows
from operating activities:
Amortization of computer
software cost 3,540 4,475
Depreciation 3,026 2,637
Amortization of acquired intangibles 1,255 201
Loss on sale of equipment 24 -
Changes in assets and liabilities
from operating activities:
Accounts receivable 10,761 4,270
Prepaid expenses and other assets 1,236 (4,429)
Accounts payable and accrued expenses (1,490) (3,164)
Deferred revenue 23,216 7,760
Other long-term liabilities 138 (352)
Income taxes 1,262 1,480
Net cash provided by operating activities 52,987 23,206
Cash flows from investing activities:
Sales (purchases) of marketable
securities, net (1,639) 972
Additions to property and equipment, net (1,761) (2,856)
Additions to marketable software costs (5,615) (3,049)
Net cash used in investing activities (9,015) (4,933)
Cash flows from financing activities:
Purchase of common stock (1,750) -
Stock issued under employee benefit plans 1,684 4,210
Repayment of long term debt - (894)
Net cash provided by (used in) financing
Activities (66) 3,316
Effect of exchange rate changes on cash (1,832) (227)
Increase in cash and cash equivalents 42,074 21,362
Cash and cash equivalents:
Beginning of period 100,581 81,056
End of period $142,655 $102,418
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
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STRUCTURAL DYNAMICS RESEARCH CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
(in thousands except per share data)
(1) Basis of Presentation
The accompanying unaudited consolidated financial statements have
been prepared by the Company pursuant to the rules and
regulations of the Securities and Exchange Commission. As
permitted by the rules of the Securities and Exchange Commission
applicable to quarterly reports on Form 10-Q, these notes are
condensed and do not contain all disclosures required by
generally accepted accounting principles. In the opinion of
management, these financial statements contain all adjustments
(consisting of only normal recurring adjustments, unless
otherwise noted) necessary to present fairly the Company's
financial position, results of operations and cash flows as of
the dates and for the periods indicated. These financial
statements should be read in conjunction with the Consolidated
Financial Statements and related notes included in the Company's
Annual Report on Form 10-K for the year ended December 31, 1998.
(2) Earnings Per Share
Basic earnings per common share and dilutive earnings per share
are computed using the weighted average number of common and
dilutive common equivalent shares outstanding during the period,
respectively. Dilutive common equivalent shares are calculated
using the treasury stock method and consist of dilutive stock
option grants.
The reconciliations of amounts used for the basic and diluted
earnings per share calculations are as follows for the three
months ended March 31:
Income Shares Per-Share
(Numerator) (Denominator) Amount
1999
Basic net income per share 10,019 35,568 .28
Effect of stock options -- 1,980
Diluted net income per share 10,019 37,548 .27
1998
Basic net income per share 10,328 35,839 .29
Effect of stock options -- 1,591
Diluted net income per share 10,328 37,430 .28
Options to purchase 1,823 and 1,360 shares of common stock at
March 31, 1999 and 1998 respectively, were not included in the
computation of dilutive earnings per share because the options'
exercise price was greater than the average market price of
common shares.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
(in thousands)
Structural Dynamics Research Corporation is a leading supplier of
enterprise product development solutions. Its mechanical design
automation ("MDA") software, product data management ("PDM")
software and related services are employed by manufacturers
worldwide to streamline their entire product development process,
reduce cost and manage product information. The Company markets
MDA software primarily under the brand name I-DEAS(TM) and PDM
software under the brand name Metaphase(TM).
Certain statements in this Form 10-Q are forward looking
statements that involve risks and uncertainties, including the
timely availability and acceptance of new products, the impact of
competitive products and pricing, the management of growth, and
the other risks detailed from time to time in the Company's
Securities and Exchange Commission reports. The Company's
results could differ from those results described herein.
Forward looking information should be evaluated in the context of
these and other factors, some of which are described in more
detail in "Factors That May Affect Future Results".
Revenue
The Company's consolidated net revenue increased 19% to $108,129
for the three months ended March 31, 1998, as compared to $91,112
for the three months ended March 31, 1998. Revenue growth was
lead by sales of maintenance, services and Metaphase licenses.
Metaphase license revenue was $10,291, and grew 76% during the
three months ended March 31, 1999 compared to the same period
last year. Total revenues from Metaphase products grew 36% and
accounted for 23% of consolidated net revenues for the quarter
ended March 31, 1999, compared to 20% during the corresponding
period in 1998. I-DEAS services and maintenance revenue growth
was strong in all major geographic regions, growing 28% during
the quarter ended March 31, 1999 to $47,333 compared to the same
period in 1998. Software maintenance and services revenue
continued to grow due to a larger customer base and overall
increases in I-DEAS and Metaphase implementation projects
resulting from license sales.
I-DEAS license revenue was approximately $35,550 for the three
month periods ended March 31, 1999 and 1998. Strong sales of I-
DEAS licenses in Europe during 1999 were offset by expected
declines of license sales to the Ford Motor Company ("Ford") and
lower sales in Asia-Pacific. Compared to 1998, growth of I-DEAS
license revenue was 5% in 1999 exclusive of the Company's
business with Ford.
For the three month periods ended March 31, 1999 and 1998,
revenue in North America accounted for 44% and 44%, Europe 37%
and 31%, and Asia-Pacific 19% and 25%, respectively, of
consolidated net revenues. European revenue growth was
fueled by strong I-DEAS sales in 1999. The Asia-Pacific revenue
comparison represents a decline in 1999 because 1998 included a
significant I-DEAS license order from a major Japanese
distributor. The Company expects the international market to
continue to account for a significant portion of total future
revenue.
Expenses
Cost of revenue consists principally of the staff and related
costs associated with fee based services and support for software
maintenance contracts; amortization of acquired intangibles and
capitalized software construction costs; royalty fees paid to
third parties under licensing agreements and the cost of
distributing software products. Cost of revenue increased 22% to
$42,210 for the three months ended March 31, 1999 compared to
$34,487 for the three months ended March 31, 1998. Cost of
revenue represented 39% of revenue for the three months ended
March 31, 1999, compared to 38% for the corresponding period in
1998.
The cost of licenses, as a percentage of license revenue was 19%
for the three months ended March 31, 1999, compared to 18% for
the same period of 1998. The percentage increase was due to
increased amortization of goodwill and acquired intangibles, as
well as a higher level of royalty fees. The cost of services and
maintenance for the three month periods ended March 31, 1999 and
1998, as a percentage of the related revenue, was 54%.
Selling and marketing expenses consist of the costs associated
with the world-wide sales and marketing staff, advertising and
product localization. These expenses increased 21% to $30,850
for the three months ended March 31, 1999 compared to $25,470 for
the corresponding period in 1998. The increase reflects
increased commissions and other expenses associated with the
higher level of revenue generated by the Company and corresponds
to a larger sales and sales support staff compared to the first
quarter of 1998. Selling and marketing expenses represented 29%
of revenue for the three months ended March 31, 1999 compared to
28% for the 1998 period.
Research and development expenses consist primarily of salaries,
benefits, computer equipment and facilities cost associated with
the product development staff. It excludes costs which are
capitalized in accordance with Statement of Financial Accounting
Standards No. 86. Research and development expenses decreased 2%
to $15,699 for the three months ended March 31, 1999 as compared
to $16,054 for the three months ended March 31, 1998. The
decrease of expense reflects higher capitalized cost during 1999
compared to 1998. In the quarter ended March 31, 1999, the
Company capitalized $5,615 of software development cost, while in
the corresponding 1998 period, only $2,924 of cost were
capitalized. Higher capitalization occurred in 1999 due to the
timing of coding work related to I-DEAS Master Series 7 which is
scheduled for release in June 1999. Total software development
cost, including research expenses and capitalized amounts,
increased 12% to $21,314 for the three months ended March 31,
1999 compared to $18,978 for the corresponding 1998 quarter. The
increase is primarily due to a 10% increase in the number of
product development personnel. The amount of capitalized
software development cost and accordingly, research and
development expense, may vary among periods depending on the
stage of development being performed on future product releases.
General and administrative expenses consist of costs associated
with the executive finance, legal, human resource and corporate
administrative staffs. These expenses increased 21% to $4,927
for the three months ended March 31, 1999 compared to $4,074 for
the three months ended March 31, 1998. General and
administrative expenses primarily increased in conjunction with
higher staffing levels to support the overall business growth and
represented 5% of revenue for the three months ended March 31,
1998 and 1999.
Other Income
For the three months ended March 31, 1999, other income was
$1,461 and primarily reflects interest income from cash
equivalents and marketable securities. For the three months
ended March 31, 1998 other income was $3,646. In addition to
investment interest income, other income in 1998 included $1,390
received from an insurance settlement and $670 of interest income
received on a federal income tax refund.
Taxes
In recent years, a substantial portion of deferred tax benefits
relating to temporary differences was offset by a valuation
allowance because of doubt regarding the ultimate realization of
the benefits. This caused the effective tax rate to differ from
the expected statutory rate. The factors, which necessitated the
establishment of a complete valuation allowance are not expected
to be entirely present in the future. In 1998, the Company began
a process to reduce the valuation allowance over approximately a
three year time frame based on current facts and forecasted
circumstances. The increase in the effective tax rate to 37%
through March 31, 1999 from 30% for the same period last year is
primarily due to a non-recurring, one-time tax benefit relating
to a refund received in 1998 from the Internal Revenue Service in
settlement of their audit of years prior to 1994.
Comprehensive Income
The differences between net income and comprehensive income were
primarily due to unrealized gains and losses from the translation
of foreign subsidiaries' balance sheets into U.S. dollars.
Larger net foreign currency translation losses occurred in 1999
compared to 1998 because the U.S. dollar strengthened against the
foreign currencies of the subsidiaries.
Liquidity and Capital Resources
During the three months ended March 31, 1999, the Company
generated $52,987 of cash from operating activities, including
large customer prepayments for maintenance services. The Company
purchased 100 shares of its own stock for $1,750 under a stock
repurchase program during the quarter. At March 31, 1999, the
Company had cash and investments of $165,960 as compared to
$122,305 at December 31, 1998. The Company's net working capital
was $119,457 at March 31, 1999. The Company does not have any
long term debt or current commitments for material capital
expenditures. The Company may use portions of its cash and
investments to purchase additional shares of its own stock or to
acquire technology complementary to its product offerings. The
existing sources of liquidity and funds anticipated to be
generated from operations are expected to provide adequate cash
to fund the Company's projected needs for the foreseeable future.
Factors That May Affect Future Results
Market Growth
The Company derives most of its revenues from selling software
products and services to the high-end users of the product design
markets. Market growth, and the Company's ability to match
resource levels with market growth rates, will directly impact
its future operating results. The Company invests resources in
product development, selling, marketing and customer service
opportunities with the expectation of revenue growth and
incremental earnings. The Company's operating expense levels are
planned, in part, on forecasted revenue growth, and expense
levels are generally committed in advance. Since expenses are
relatively fixed in the near term, future operating results will
be impacted by the Company's ability to convert invested outlays
into expected revenue growth at profitable margins.
If market growth rates for MDA or PDM are less than forecasted,
the Company's license revenue growth, as well as maintenance and
services revenue growth, are likely to be less than expected.
High-end MDA market growth could slow due to preferences among
new users for lower priced, mid-range products or a strong
capacity within the installed base of seats already sold.
Competition
The product development software industry is highly competitive.
Companies compete based on functionality, integration,
scalability, customer support, market timing, price and other
factors. Some competitors have focused their efforts to develop
software native to the Microsoft Windows platform. While the
Company's software products are available for a variety of vendor
platforms, including Windows, they currently do not provide user
interfaces or linking functionality native to Windows
applications. Customer preferences for the Company's products,
including platform choices, cannot be assured. The Company's
success is dependent on its ability to continue to develop,
enhance and market new products to meet its customers'
sophisticated needs within competitive pricing structures and in
a timely manner. Consequently, the Company relies on highly
skilled technical, sales and other key employees who are
competitively recruited within the software industry.
Additionally, the Company relies, to a lesser degree, on third
parties for development. Failure to attract and retain key
personnel and maintain important third party relationships, could
have an adverse impact on future operating results. Also, the
entire industry may experience pricing and margin pressure which
could adversely affect the Company's operating results. The
Company's success also depends, in part, on its ability to
protect the intellectual property rights of its products and
brand names.
Product Distribution
Besides its own sales force, the Company relies on distributors,
representatives and value-added resellers to sell a significant
portion of its products. The loss of a major customer or a
reduction in orders from a major customer, distributor,
representative or value-added reseller could have a significant
impact on the results of operations in any particular quarter.
Historically, a significant portion of the Company's revenue is
generated from shipments in the last month of a quarter. In
addition, higher volumes of orders have been experienced in the
fourth quarter. The concentration of orders makes projections of
quarterly financial results difficult. If customers delay their
orders or a disruption in the Company's distribution occurs,
quarterly results of operations in any particular quarter may be
negatively impacted. The Company usually ships software licenses
within one to two weeks after receipt of a customer order.
Typically, orders exist at the end of a quarter, which have not
been shipped; however, the value of such orders is not indicative
of revenue results for any future period, or material to
operating trends.
International Business
A significant portion of the Company's revenues is from
international markets. As a result, the Company's financial
results could be impacted by weakened general economic
conditions, differing technological advances or preferences,
volatile foreign exchange rates and government trade restrictions
in any country in which the Company does business. The Company
has invested sizable resources in the Asia Pacific region,
particularly in Japan and South Korea. Economic instability in
this region could lead to an adverse impact on the Company's
operation results and financial position.
Year 2000
The Year 2000 causes uncertainties about whether computer systems
and other equipment with date sensitive hardware or software will
appropriately recognize and process dates beyond 1999. The
failure of software programs, computer hardware and equipment in
this regard could result in business interruptions and adversely
affect the Company's operating results. The Company has taken
measures to address its exposure to these potential date-related
failures. The Company's major exposures to date-related failures
include product liability for the software tools which it
markets. The Company's primary software offerings, (I-DEAS
Master Series and Metaphase Enterprise), store dates in a full,
four-digit format. The Company has conducted extensive testing
of these software offerings, including integrated third party
functionality, for Year 2000 compliance ("compliance"). Based on
testing to date, I-DEAS Master Series 5, Metaphase Enterprise 2.3
and their respective subsequent releases, properly recognize and
process dates beyond 1999 when the underlying operating system of
the host machine provides full date information to the software.
The Company has tested, and will continue to test, its code for
new products and enhancements to ensure compliance in future
software releases. Potential causes of failure will continue to
be rectified in a timely manner. Compliance of product versions
prior to I-DEAS Master Series 5 and Metaphase Enterprise 2.3 is
not completely known; however, if there are issues of non-
compliance, current customers of such products can upgrade to
achieve Year 2000 compliance. While the software products were
developed to be compliant, customizations and modifications to
the products are the responsibilities of the customer and may not
necessarily be compliant. To date, the Company is not aware of
any customer customizations or modifications which result in
significant date-related failures of otherwise compliant
software.
The Company relies on third parties for telecommunications,
electricity, banking, shipping and other essential business
operations. Additionally, its information systems depend on
computer hardware, software, and other equipment also supplied by
third parties. To reduce the uncertainty caused by third party
reliance, and mitigate the consequences of the Year 2000, the
Company has adopted a Year 2000 conversion approach with five
basic phases: Awareness, Assessment, Renovation, Validation, and
Implementation. The approach is being applied throughout the
Company and is in differing phases among areas of exposure. The
Company is in the process of identifying the critical suppliers
of services and systems and assessing which, if any, areas pose
significant risks of business interruption. So far, no
significant deficiencies have been identified. The Company's
enterprise management information system, SAP R/3, is Year 2000
compliant based on representations from its supplier, SAP AG.
At this time, the Company expects the conversion to Year 2000
compliance to be completed in 1999. The total cost of any
modifications necessary to achieve compliance is not expected to
be material to operating results. The Company's policy, in
accordance with generally accepted accounting procedures, is to
expense as incurred the cost of maintenance and modification to
existing systems, and to capitalize the cost of any new software
or hardware and amortize that cost over the estimated useful
lives of the assets.
While the Company has taken measures to reduce the risk of date-
related failures, it cannot eliminate the potential for business
interruption or product failure due to third party non-
compliance. Additionally, Year 2000 interruptions in the
Company's customer base could reduce or delay sales. With respect
to contingency plans, the Company is formulating contingency
plans for the most likely worst case scenarios.
Euro Conversion
On January 1, 1999, eleven of the fifteen member countries of the
European Union (the "participating countries") established fixed
conversion rates between their existing sovereign currencies (the
"legacy currencies") and the euro currency, adopting the euro as
their common legal currency on that date. The legacy currencies
are scheduled to remain legal tender in the participating
countries as denominations of the euro until January 1, 2002.
During this transition period, public and private parties may pay
for goods and services using either the euro or the participating
country's legacy currency on a "no compulsion, no prohibition"
basis whereby recipients must accept euro or the legacy currency
as offered by the payor. A currency translation process known as
triangulation dictates how legacy currencies are converted to the
euro and other legacy currencies. Beginning January 1, 2002, the
participating countries will issue new euro-denominated bills and
coins and replace the legacy currencies as legal tender in cash
transactions by July 1, 2002.
Because the Company conducts a significant portion of its
business in Europe, including subsidiaries in five euro
participating countries, its business and operations will be
affected by the euro conversion. Management expects the
conversion to increase cross-border competition for its products
within Europe, to a minor extent, due to easier price
transparency for customers. While management expects the total
unit price of product and taxes charged to European customers to
converge over time, the impact on the total revenues and the mix
of revenues among its European subsidiaries in the near term is
uncertain. Additionally, increased cross-border competition
could effect the Company's labor cost and eventually its
allocation of resources within Europe.
Stock Market Volatility
The trading price of the Company's stock, like other software and
technology stocks, is subject to significant volatility. If
revenues or earnings fail to meet securities analysts'
expectations, there could be an immediate and significant adverse
impact on the trading price of the Company's stock. In addition,
the Company's stock price may be affected by broader market
factors that may be unrelated to the Company's performance.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits
27 Financial data schedule for the period ended March 31,
1999, filed herewith.
b) No report on Form 8-K was filed during the first quarter of
1999.
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.
STRUCTURAL DYNAMICS RESEARCH CORPORATION
Date: May 10, 1999 By: /s/ Jeffrey J. Vorholt
Jeffrey J. Vorholt,
Vice President,
Chief Financial Officer and Treasurer
* Pursuant to the last sentence of
General Instruction G to Form 10-Q,
Mr. Jeffrey J. Vorholt has executed
this Quarterly Report on Form 10-Q
both on behalf of the registrant and
in his capacity as its principal
financial and accounting officer.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 142,655
<SECURITIES> 23,305
<RECEIVABLES> 90,364
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 258,871
<PP&E> 91,774
<DEPRECIATION> 24,385
<TOTAL-ASSETS> 372,358
<CURRENT-LIABILITIES> 139,414
<BONDS> 0
0
0
<COMMON> 247
<OTHER-SE> 224,687
<TOTAL-LIABILITY-AND-EQUITY> 372,358
<SALES> 108,129
<TOTAL-REVENUES> 108,129
<CGS> 42,210
<TOTAL-COSTS> 51,476
<OTHER-EXPENSES> (1,461)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 15,904
<INCOME-TAX> 5,885
<INCOME-CONTINUING> 10,019
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,019
<EPS-PRIMARY> .28
<EPS-DILUTED> .27
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