UNITED STATES
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 September 30, 1997
[ ] 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: 0-22089
BRUNSWICK TECHNOLOGIES, INC.
Maine 01-402052
- ------------------------------- -----------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
43 Bibber Parkway, Brunswick, ME 04011
- --------------------------------------- -----------------------------------
(Address of principal executive offices) (Zip Code)
207-729-7792
---------------------------------------------------
(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. [x] Yes [ ] No
The registrant had 4,730,365 shares of Common Stock, $0.0001 par value,
outstanding as of October 31,
1997.
BRUNSWICK TECHNOLOGIES, INC.
INDEX
Page No.
--------
PART I. Financial information.
Item 1. Financial Statements
Consolidated balance sheets as of December 31, 1996
and September 30, 1997. 3-4
Consolidated statements of income for the three months
ended September 30, 1996 and 1997. 5
Consolidated statements of income for the nine months
ended September 30, 1996 and 1997. 6
Consolidated statements of cash flows for the nine months
ended September 30, 1996 and 1997. 7
Notes to consolidated financial statements. 8-10
Report of Independent Accountants. 11
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations. 12
PART II. Other Information.
Item 2. Changes in Securities and Use of Proceeds. 13
Item 6. Exhibits and Reports on Form 8-K. 13
Signatures 14
-2-
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
BRUNSWICK TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
ASSETS
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
1996 1997
--------------- -----------
(UNAUDITED)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 355 $ 7,364
Accounts receivable, net of allowance for doubtful accounts
of $38 in 1996 and $46 in 1997 2,619 2,867
Inventories 3,263 3,258
Refundable income taxes 21 --
Deferred income taxes 167 225
Other current assets 300 464
------------- -------------
Total current assets 6,725 14,178
------------- -------------
Property, plant and equipment:
Land and building 800 937
Furniture and fixtures 356 473
Leasehold improvements 74 81
Machinery and equipment 5,115 6,511
Vehicles 68 76
Machinery under construction 1,041 --
------------- -------------
7,454 8,078
Less accumulated depreciation (1,453) (1,868)
-------------- --------------
Net property, plant and equipment 6,001 6,210
------------- -------------
Deferred charges 513 --
Other assets, net 86 113
Goodwill, net 5,309 5,106
------------- -------------
$ 18,634 $ 25,607
============= =============
</TABLE>
The accompanying notes are an integral
part of the financial statements.
-3-
BRUNSWICK TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
1996 1997
--------------- -----------
(UNAUDITED)
<S> <C> <C>
Current Liabilities:
Bank Overdraft $ 301 $ --
Note payable to bank 1,180 --
Current installments of long-term debt 298 100
Due to stockholder 1,045 225
Accounts payable - trade 1,785 720
Accrued expenses 705 579
Income taxes payable -- 244
------------- -------------
Total current liabilities 5,314 1,868
------------- -------------
Long-term debt, excluding current installments 8,853 3,968
Deferred income taxes 122 505
Commitments
Convertible preferred stock (liquidation preferences of
$6,641 in 1996) 6,589 --
Stockholders' equity (deficit):
Preferred stock $10 par value, 1,000,000 shares authorized,
None outstanding -- --
Common stock, $0.0001 par value, 20,000,000 shares authorized
301,624 outstanding in 1996 and 4,730,365 outstanding in 1997 -- 1
Additional paid in capital 464 20,850
Treasury stock, 3,300 shares at cost (5) (5)
Accumulated deficit (2,703) (1,580)
-------------- --------------
Total stockholders' equity (deficit) (2,244) 19,266
-------------- -------------
$ 18,634 $ 25,607
============= =============
</TABLE>
The accompanying notes are an integral
part of the financial statements.
-4-
BRUNSWICK TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30,
------------------------------------------
1996 1997
---- ----
(UNAUDITED)
<S> <C> <C>
Net Sales $ 4,246 $ 7,603
Cost of goods sold (raw material purchased from a stockholder
amounted to $2,091 and $2,226 in 1996 and 1997, respectively) 3,381 5,682
--------------- -------------
Gross profit 865 1,921
Selling, general and administrative expenses 715 1,219
Research and development expenses 102 152
Moving costs 5 --
--------------- -------------
Operating income 43 550
Other income (expense):
Interest income -- 95
Interest expense (45) (93)
Miscellaneous, net 106 124
--------------- -------------
61 126
--------------- -------------
Income before income tax 104 676
Income tax expense 38 230
--------------- -------------
Net income 66 446
Preferred stock dividend (113) --
Accretion of preferred stock redemption value (27) --
---------------- -------------
Net income attributable to common stock $ 74 $ 446
=============== =============
Earnings per common share (pro forma in 1996) $ .02 $ .09
=============== =============
Weighted average common shares outstanding (pro forma in 1996) 3,492 5,189
=============== =============
</TABLE>
The accompanying notes are an integral
part of the financial statements.
-5-
BRUNSWICK TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
--------------------------------------------
1996 1997
---- ----
(UNAUDITED)
<S> <C> <C>
Net Sales $ 13,423 $ 23,008
Cost of goods sold (raw material purchased from a stockholder
amounted to $5,033 and $4,217 in 1996 and 1997, respectively) 10,365 17,002
--------------- -------------
Gross profit 3,058 6,006
Selling, general and administrative expenses 2,039 3,819
Research and development expenses 402 418
Moving costs 100 --
--------------- -------------
Operating income 517 1,769
Other income (expense):
Interest income -- 226
Interest expense (101) (325)
Miscellaneous, net 199 179
--------------- -------------
98 80
--------------- -------------
Income before income tax 615 1,849
Income tax expense 222 670
--------------- -------------
Net income 393 1,179
Preferred stock dividend (338) (48)
Accretion of preferred stock redemption value (66) (8)
---------------- --------------
Net income attributable to common stock $ (11) $ 1,123
================ =============
Earnings per common share (pro forma in 1996 and 1997) $ .11 $ .25
=============== =============
Weighted average common shares outstanding (pro forma in 1996) 3,492 4,819
=============== =============
</TABLE>
The accompanying notes are an integral
part of the financial statements.
-6-
BRUNSWICK TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
-------------------------------------------
1996 1997
---- ----
(UNAUDITED)
<S> <C> <C>
Cash flows from operating activities:
Net income $ 393 $ 1,179
Adjustments to reconcile net income to net cash (used in)
provided by operating activities:
Depreciation and amortization 369 594
Deferred taxes 113 325
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 1,052 (248)
Decrease (Increase) in inventories (1,120) 5
Decrease in refundable income taxes 16 21
(Increase) in other current assets
and other assets (48) (167)
(Decrease) in due to stockholder (479) (820)
(Decrease) in accounts payable and
accrued expenses 238 (1,191)
(Decrease) Increase in income taxes payable (17) 244
---------------- -------------
Net cash (used in) provided by operating activities 517 (58)
--------------- --------------
Cash flow from investing activities:
Purchases of property, plant and equipment (801) (624)
---------------- --------------
Net cash used in investing activities (801) (624)
---------------- --------------
Cash flows from financing activities:
Deferred charges (337) --
Bank overdraft (217) (301)
Proceeds from (net repayments of) line of credit 602 (1,180)
Issuance of common stock, net of offering costs -- 14,262
Proceeds from (repayment of) long-term debt 325 (5,083)
Other (4) (7)
---------------- --------------
Net cash provided by financing activities 369 7,691
--------------- -------------
Net increase in cash 85 7,009
Cash at beginning of period 118 355
--------------- -------------
Cash at end of period $ 203 $ 7,364
=============== =============
</TABLE>
Non-cash items:
In February 1997, convertible preferred stock and accrued dividends were
converted into common stock (see Note 2 of Notes to Financial Statements.
The accompanying notes are an integral
part of the financial statements.
-7-
BRUNSWICK TECHNOLOGIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. CONSOLIDATED FINANCIAL STATEMENTS:
The consolidated financial statements included herein have
been prepared by the Company, without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission. 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, although the Company believes that the disclosures are
adequate to make the information presented not misleading. In the
opinion of management, the amounts shown reflect all adjustments
necessary to present fairly the financial position and results of
operations for the periods presented. All such adjustments are of a
normal recurring nature. The year-end consolidated balance sheet was
derived from audited financial statements, but does not include all
disclosures required by generally accepted accounting principles. It is
suggested that the financial statements be read in conjunction with the
financial statements and notes thereto included in the Company's latest
annual report.
The consolidated financial statements include the accounts of
Brunswick Technologies, Inc. (BTI) and Advanced Textiles, Inc. (ATI),
its wholly owned subsidiary. The accounts of ATI are included from
October 30, 1996, the date of acquisition. Therefore, the September 30,
1996 financial statements included herein exclude the accounts of ATI.
All intercompany transactions have been eliminated.
Earnings per share has been presented on a pro forma basis for
1996 and for the nine months ended September 30, 1997 after giving
effect to the conversion of the preferred stock outstanding prior to
their conversion into common stock on February 10, 1997, as well as to
the 33 for 1 stock split of common stock on February 5, 1997, in
connection with the Company's initial public offering (see Note 2 to
Notes to Consolidated Financial Statements). The following table
represents information necessary to calculate earnings per share:
<TABLE>
<CAPTION>
3 months ended 9 months ended
September 30 September 30
------------ ------------
1996 1997 1996 1997
---- ---- ---- ----
(in thousands, except per share amounts)
<S> <C> <C> <C> <C>
Net income $ 66 $ 446 $ 393 $1,179
====== ====== ====== ======
Earnings per common share (pro forma in 1996
and for the nine months ended September 30, 1997) $ .02 $ .09 $ .11 $ .25
====== ====== ====== ======
Common shares outstanding:
Weighted average common shares 296 4,643 296 4,213
Common share equivalents 647 546 647 606
Conversion of preferred stock 2,337 -- 2,337 --
Preferred stock dividend 211 -- 211 --
Directors' stock grants 1 -- 1 --
------ ------ ------ ------
Weighted average shares outstanding (pro forma in 1996
and for the nine months ended September 30, 1997) 3,492 5,189 3,492 4,819
====== ====== ====== ======
</TABLE>
-8-
BRUNSWICK TECHNOLOGIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. INITIAL PUBLIC OFFERING
On February 10, 1997, the Company completed its initial public
offering of common stock. The sale to the public totaled 2,675,000
shares, with 1,700,000 new shares being sold by the Company and 975,000
shares being sold from the holdings of an existing shareholder. The
offering price was $9.50 per share with proceeds to the Company, after
offering expenses, of approximately $13.7 million. From the proceeds,
the Company was obligated to pay $3,648,250 of the convertible
subordinated note plus accrued interest thereon. With the remaining
proceeds, the Company also paid off the balance of its bank debt of
approximately $2.9 million. Deferred charges of $512,679 at December
31, 1996, and other transactional expenses (together aggregating
approximately $1.3 million) were offset against stockholders' equity
upon completion of the offering.
Pursuant to the terms of the preferred stock, the outstanding
shares of preferred stock were automatically converted to common stock
on the consummation of the Company's initial public offering. As a
result, 70,824 shares of preferred stock were converted to 2,337,192
shares of common stock. In addition, on August 14, 1996, the Board of
Directors approved the issuance of common stock in lieu of cash payment
of the cumulative preferred dividend. This resulted in an additional
211,088 shares of common stock being issued to holders of preferred
stock as of the offering. In addition, the Board approved the grant of
stock to new Directors totaling 1,000 shares, which were issued at the
closing of the offering.
3. INVENTORIES
Inventories consist of the following components:
December 31, September 30,
1996 1997
---- ----
(unaudited)
(in thousands)
Raw materials $ 576 $ 610
Work-in-process 653 628
Finished goods 2,034 2,020
----------- ----------
$ 3,263 $ 3,258
========== =========
4. NEW ACCOUNTING PRONOUNCEMENTS
During February 1997, the Financial Accounting Standards Board
("FASB") issued Statement of Financial Accounting Standards ("SFAS")
No. 128, "Earnings per Share", which will require a change in how the
Company calculates earnings per share. This statement is effective for
financial statements issued for periods ending after December 15, 1997,
with earlier application not permitted. The statement requires dual
presentation of basic and diluted earnings per share on the
consolidated statements of income. Had the earnings per share
calculation been applied on a basis consistent with the provisions of
SFAS No. 128 and Securities and Exchange Commission regulations, basic
earnings per share would have been $.02 and $.10 per share for the
three months ended September 30, 1996 and 1997, respectively and $.14
and $.28 per share for the nine months then ended respectively. Diluted
earnings per share would have been equivalent to the amounts reported
in the statements of income.
In June 30, 1997, FASB issued SFAS No. 130, "Reporting
Comprehensive Income," which will require separate reporting of changes
to stockholders equity, and SFAS No. 131, "Disclosures about Segments
of an Enterprise and Related Information," which revises existing
guidelines for financial reporting for the Company's operations. Both
statements are effective for financial statements issued after December
15, 1997, except interim reporting under SFAS No. 131 is not required
until the Company's first quarter of 1998. The Company has determined
that the requirements of these statements will not have a material
effect on the Company's existing financial reporting.
-9-
BRUNSWICK TECHNOLOGIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
5. PREPAYMENT OF CONVERTIBLE NOTE
On November 7, 1997 the Company called for prepayment of the
$3,648,250, 9.5% convertible promissory note held by Burlington
Industries, Inc. The note was issued in partial payment of the October
30, 1996 purchase of Advanced Textiles, Inc. Also on November 7, 1997,
Burlington Industries, under the terms of the note, elected to convert
into common stock $1,500,000 of the note at an exercise price of $9.50
per share which is the equivalent of 157,894 common shares. Burlington
Industries, under the terms of the note, has 10 days or until November
17 to decide whether to convert the remainder of the note ($2,148,250)
into common stock. If such conversion were to be elected, it would
result in an additional 226,131 shares being issued to Burlington.
-10-
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
Brunswick Technologies, Inc.
We have reviewed the accompanying consolidated balance sheet of
Brunswick Technologies, Inc. and subsidiary as of September 30, 1997, and the
related consolidated statements of income for the three month and nine month
periods ended September 30, 1997 and the related consolidated statement of cash
flows for the nine month period then ended. These financial statements are the
responsibility of the Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion. We previously audited and
expressed an unqualified opinion on the Company's consolidated financial
statements for the year ended December 31, 1996 (not presented herein). In our
opinion, the information set forth in the accompanying balance sheet as of
December 31, 1996, is fairly stated in all material respects, in relation to the
statement of financial position from which it has been derived.
Based on our review, we are not aware of any material modifications
that should be made to the accompanying consolidated financial statements for
them to be in conformity with generally accepted accounting principles.
/s/ Coopers & Lybrand L.L.P.
Portland, Maine
October 27, 1997
-11-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
GENERAL
As a result of the October 30, 1996, purchase of Advanced Textiles,
Inc. ("ATI") from Burlington Industries (see Note 1 of Notes to Consolidated
Financial Statements), the operations of ATI are included in the Consolidated
Statements of Income for the three months and the nine months ended September
30, 1997 and the Consolidated Statements of Cash Flows for the nine months ended
September 30, 1997 and the net assets of ATI are included in the September 30,
1997 and December 31, 1996 Consolidated Balance Sheets.
RESULTS OF OPERATIONS
Third quarter 1997 versus third quarter 1996
Net sales increased by $3,356,957 or 79% in 1997. Pounds sold were
5,079,084 in 1997 (3,489,768 exclusive of ATI) versus 3,096,429 in 1996. Average
selling price per pound sold in 1997 was $1.50 against $1.37 in 1996. The
increase in average prices for the 1997 quarter was due to the operations of the
ATI division. The increase in sales volumes was partially due to the ATI
division (1,589,316 pounds) and partially due to increased sales in the
Brunswick, Maine division (393,339 pounds).
Costs of goods sold was 74.7% of net sales in 1997 against 79.6% in
1996. The reduction was due primarily to the addition of the operations of the
ATI division whose products, in general, have higher gross margins.
Gross margin was 25% of net sales in 1997 versus 20% for the 1996
period. The increase is due primarily to the addition of the ATI operations
whose products, in general, have higher gross margins.
Operating expenses increased $549,000 primarily as a result of $476,000
of operating expenses attributable to ATI (including goodwill amortization of
$66,876).
Non-operating income amounted to $126,000 in 1997. This amount was
composed of $94,779 in interest income, $36,585 in cash discounts, $67,515 of
interest capitalized on the construction of a new machine completed in
September, and $28,237 from reimbursement under the Company's federal grant.
These amounts were reduced by $93,470 in interest expense on amounts owed to
Burlington Industries from the purchase of the ATI division. In 1996
non-operating income amounted to $61,000 which was a combination of $118,000 in
reimbursement under the federal grant offset by $45,000 in interest expense.
Nine months 1997 versus nine months 1996
Net sales increased by $9,584,586 or 71.4% in 1997. Pounds sold were
15,235,169 in 1997 versus 9,613,163 in the corresponding 1996 period.
Gross margin was 26.0% of net sales in 1997 versus 22.8% for the 1996
period. The increase is due primarily to the addition of the ATI operations
whose products, in general, have higher gross margins.
Operating expenses increased $1,696,070 in 1997, primarily as a result
of $1,580,819 of operating expense attributable to the ATI operation (including
goodwill amortization of $199,512).
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash flow activities for the nine months are reflected in
the Statements of Cash Flows. The Company's liquidity and capital resources were
favorably impacted by its initial public offering on February 10, 1997, when it
sold 1,700,000 shares at a price of $9.50 per share to the public. After selling
commissions and other expenses net proceeds to the Company amounted to $13.7
million. With a portion of this amount, the Company paid $3,648,250 of the
amount due Burlington Industries plus interest of $94,954, as well as bank debt
amounting to $2,892,960. The Company's funds in excess of that required for
normal operating activities are invested in short-term, high-grade governmental
and corporate obligations.
Refer to Note 5 of Notes to Consolidated Financial Statements for
information with respect to the convertible subordinated note.
-12-
PART II
OTHER INFORMATION
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.
Pursuant to outstanding common stock purchase warrants, the Company
sold shares of its common stock to the parties listed below at $1.51 per share
in the amounts and on the dates indicated. The sales were made pursuant to
Section 4(2) of the Securities Act of 1933, as amended (the "Act") in private
transactions.
Number of Shares Purchaser Date of Purchase
---------------- --------- ----------------
6,898 Daniel A. Zilkha June 24, 1997
164,051 North Atlantic Venture Fund July 15, 1997
7,139 Dodge D. Morgan August 11, 1997.
On November 7, 1997 the Company called for prepayment of the
$3,648,250, 9.5% convertible promissory note held by Burlington Industries, Inc.
The note was issued in partial payment of the October 30, 1996 purchase of
Advanced Textiles, Inc. Also on November 7, 1997, Burlington Industries, under
the terms of the note, elected to convert into common stock $1,500,000 of the
note at an exercise price of $9.50 per share which is the equivalent of 157,894
common shares. The sale pursuant to such conversion was made pursuant to Rule
506 of Regulation D under the Act. The sale involved one accredited investor and
did not involve general solicitation or advertising.
On February 10, 1997, the Company completed its initial public offering
of common stock. The sale to the public totaled 2,675,000 shares, with 1,700,000
new shares being sold by the Company and 975,000 shares being sold from the
holdings of an existing shareholder. The offering price was $9.50 per share with
proceeds to the Company, after offering expenses, of approximately $13.7
million. From the proceeds, the Company was obligated to pay $3,648,250 of the
convertible subordinated note held by Burlington Industries, plus accrued
interest thereon of $94,954. From the proceeds, the Company also paid off the
balance of its bank debt of approximately $2,892,960 million. Deferred charges
of $512,679 at December 31, 1996, and other transactional expenses (together
aggregating approximately $1.3 million) were offset against stockholders' equity
upon completion of the offering. For the nine month period ended September 30,
1997, the Company has expended $624,000 of the proceeds in purchases of
property, plant and equipment and $58,000 of the proceeds for working capital.
The balance of the proceeds of the initial public offering that have not been
expended to date are invested in short-term, high-grade governmental and
corporate obligations.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibit 27. Financial data schedule.
(b) Exhibit 15. Letter of Coopers & Lybrand L.L.P. regarding
incorporation by reference to a certain
Form S-8 of the registrant.
(c) No reports on Form 8-K were filed during the quarter ended September 30,
1997.
-13-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Brunswick Technologies, Inc.
By:/s/John P. O'Sullivan
------------------------
John P. O'Sullivan
Chief Financial Officer and Treasurer
(Principal financial and accounting officer)
Date: November 13, 1997
EXHIBIT 15
LETTER OF INDEPENDENT ACCOUNTANT
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Re: Brunswick Technologies, Inc.
Registration on Form S-8
We are aware that our report dated October 27, 1997, on our review of interim
financial information of Brunswick Technologies, Inc., and subsidiary as of
September 30, 1997 and for the three month and nine month periods ended
September 30, 1997, and included in this Form 10-Q is incorporated by reference
in the Company's registration statement on Form S-8 (Number 333-36921). Pursuant
to Rule 436(c) under the Securities Act of 1933, this report should not be
considered a part of the Registration Statement prepared or certified by us
within the meaning of Sections 7 and 11 of that Act.
/s/Coopers & Lybrand L.L.P.
Portland, Maine
November 13, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
Brunswick Technologies, Inc.'s consolidated financial statements as of and for
the nine months ended September 30, 1997 and is qualified in its entirety by
reference to such financial statements. Amounts rounded to thousands (except for
per share amounts).
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 7,364
<SECURITIES> 0
<RECEIVABLES> 2,913
<ALLOWANCES> 46
<INVENTORY> 3,258
<CURRENT-ASSETS> 14,178
<PP&E> 8,078
<DEPRECIATION> 1,868
<TOTAL-ASSETS> 25,607
<CURRENT-LIABILITIES> 1,868
<BONDS> 0
0
0
<COMMON> 20,850
<OTHER-SE> (5)
<TOTAL-LIABILITY-AND-EQUITY> 25,607
<SALES> 23,008
<TOTAL-REVENUES> 23,008
<CGS> 17,002
<TOTAL-COSTS> 4,237
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 325
<INCOME-PRETAX> 1,849
<INCOME-TAX> 670
<INCOME-CONTINUING> 1,179
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,179
<EPS-PRIMARY> .25
<EPS-DILUTED> .25
</TABLE>
