<PAGE>
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
United States
Securities and Exchange Commission
Washington, DC 20549
Form 10-QSB
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934. For the period ended September 30, 1998.
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: 0-18880
ATRIX INTERNATIONAL, INC.
- --------------------------------------------------------------------------------
(Exact Name of registrant as specified in its charter)
Minnesota 41-1591075
- --------------------------------------------------------------------------------
(State or Other Jurisdiction of (IRS Employer Identification No.)
Incorporation or Organization)
14301 Ewing Avenue South, Burnsville, MN 55306
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(612) 894-6154
(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 September 30, 1998 the following securities of the registrant were
outstanding: 1,413,449 shares of Common Stock, $.04 per value per share.
<PAGE>
PART I.
ITEM 1. FINANCIAL STATEMENTS
This report includes the financial position of Atrix International, Inc.,
("Atrix" or the "Company") as of September 30, 1998 and June 30, 1998, the
results of operations for the three months ended September 30, 1998 and 1997,
and the cash flows for the three months ended September 30, 1998 and 1997.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
NET SALES. Sales for the first quarter ended September 30, 1998 totaled
$1,146,687 compared with $1,048,977 for the same period a year ago.
The following table shows the Company's revenues for the periods indicated by
product line, total manufactured products and total distributed products.
Three Months Ended
September 30,
1998 1997
---------- ----------
Product Line
Vacuums and Supplies $ 457,038 $ 488,119
ESD Equipment 32,115 31,939
Circuit Board Cases 33,669 8,872
Special Assemblies 30,526 33,783
---------- ----------
Total Manufacturing 553,348 562,713
Loose Tools 409,190 279,586
Tool Kits 62,861 83,579
Instrumentation 23,139 58,281
---------- ----------
Total Distribution 495,190 421,446
R3 Copy Control Products 96,464 56,994
M1 1,685 7,824
---------- ----------
Total Revenue $1,146,687 $1,048,977
Manufacturing sales for the three months ended September 30, 1998 were $553,348
as compared to $562,713 for the same period in 1997. The primary reason for the
decrease in revenues was the lower shipments of asbestos vacuums and filters as
customers in that industry, reduced inventory levels. Increased sales of circuit
board cases largely offset this decline.
Distribution sales for the three months ended September 30, 1998 were $495,190
as compared to $421,446 for the same period in 1997. The increase for the three
months was primarily due to an increase in sales of miscellaneous tool items to
Unisys Corporation.
R3 Copy Control product sales for the three months ended September 30, 1998 were
$96,464 as compared to $56,994 for the same period in 1997. The primary reason
for the increase for the three month period is increased sales to Pitney Bowes,
a major R3 Copy Control customer. Sales to Pitney Bowes had decreased in fiscal
1998, as Pitney Bowes reduced inventory levels for a variety of products. Sales
to Pitney Bowes are expected to continue at normal levels in future quarters.
FORM 10-QSB SEPTEMBER 30, 1998 PAGE 2
<PAGE>
Looking forward, the Company believes that revenues from manufactured vacuum
products, and the R3 Copy Control system will improve. In March of 1998, the
Company shipped its initial order of 48 R3 Copy Control units to the U. S.
Department of Agriculture, equipped with automated proximity card input. This
account has the potential to reach 650+ units over the coming two year period.
Acceptance of the Omega series vacuum line has been very strong, with agreements
being reached with sixteen domestic and seven international distributors to
stock the vacuum line. In addition, numerous other prospects are currently
evaluating these products. The Company is beginning to market its A-Trax
Production Monitoring System (M1), which is a new remote metering and monitoring
system for the injection molding industry. It was developed as a retro fit
system permitting injection molding plants to install the units on existing
molding machines for plant monitoring, metering, reporting and scheduling
capabilities. The Company believes that the A-Trax Production Monitoring
System's competitive pricing, will provide a platform for Atrix to expand into
the $40 million annual plastics monitoring market. The Company believes that
distribution sales which were strong in the first quarter, will likely continue
strong for the remainder of the fiscal year.
The Company notes that except for historical financial statements, the above and
other forward looking statements are subject to certain risks. For this purpose,
any statements contained in this report that are not statements of historical
fact may be deemed to be forward looking statements. Without limiting the
foregoing, words such as "may," "will," "expect," "believe," "anticipate,"
"estimate," or continue," or comparable terminology, are intended to identify
forward looking statements. These statements by their nature involve substantial
risks and uncertainties, and actual results may differ materially depending on a
variety of factors including, market acceptance of the Company's new products,
changes in production costs, loss of a major customer, an economic downturn, an
unplanned expense, or other events.
GROSS PROFIT
The gross profit margin as a percentage of sales was 32.0% and 31.5% for the
three month periods ended September 30, 1998, and 1997, respectively. The
increase in gross profit margin is due mainly to the Company's product mix,
including the increased sales of R3 Copy Control products.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses remained flat for the three months
ended September 30, 1998 and 1997, totaling $375,285 and $375,688 respectively
in 1998 and 1997. Total selling expenses for the quarter ended September 30,
1998 were $129,627 as compared to $103,949 for the same period in 1997.
Increased contract labor costs were the primary reason for the increase, as the
Company increased efforts to market both the R3 and M1 products. The Company
expects selling expenses to be slightly lower in future periods, due to a recent
reorganization of the sales department. Total general and administrative
expenses for the quarter ended September 30, 1998 were $245,658 compared to
$271,739 for the same period in 1997. The primary reason for the decrease in the
general and administrative expenses of $26,081 is a decrease in labor costs as
the Company selectively fills open positions, and also a decrease in research
and development costs, as labor related to software development is being
capitalized this fiscal year. The Company expects general and administrative
expenses to remain at a comparable level in future periods. Selling, general and
administrative expenses represented 32.7% and 35.8% of sales for the quarters
ending September 30, 1998 and 1997, respectively. Expenses as a percentage of
sales decreased due to the increase of $97,710 in sales from the quarter ended
September 30, 1998.
NET INCOME/(LOSS)
The Company generated a net income for the quarter ended September 30, 1998 of
$10,887 compared to a net loss of $41,071 for the quarter ended September 30,
1997. The changes were due to the factors discussed above.
FORM 10-QSB SEPTEMBER 30, 1998 PAGE 3
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash and marketable securities at September 30, 1998 was
$1,395,090 compared to $1,484,758 at June 30, 1998. Working capital increased to
$1,793,491 at September 30, 1998 from $1,791,067 at June 30, 1998. The decrease
in the Company's cash position was due primarily to the decrease in accounts
payable, while working capital remained largely unchanged.
The Company maintains a line of credit with Riverside Bank. As of September 30,
1998, the borrowing base under the line of credit was the lesser of (a)
$1,000,000 or (b) the sum of (i) 75% of eligible accounts receivable and (ii)
50% of eligible inventory. The Company is also required to maintain tangible net
worth of $1,900,000 and a liabilities to tangible net worth ratio of less than
1.5. The line of credit is secured by the Company's assets. The interest rate is
at prime. The Company is required to pay accrued interest on a monthly basis. As
of September 30, 1998, the outstanding balance on the line of credit was
$775,000 and the remaining borrowing availability was $165,832.
The Company did not have any material commitments for capital expenditures
outstanding as of September 30, 1998. The Company's plan of operations currently
does not call for raising additional capital. The Company plans to finance its
operations for the remainder of fiscal year ending June 30, 1999 with working
capital and bank borrowings. The Company expects to generate cash from
operations for the remainder of fiscal 1999 by increases in sales, gross margin
improvement and controlled operating expenses.
YEAR 2000 COMPLIANCE
As the end of the century draws near, there is concern that Year 2000 technology
problems may wreak havoc on global economies and materially effect the operating
results of companies. Atrix is taking the necessary steps to insure that this
potential problem does not adversely affect its operating results in the future.
In this regard, management is currently implementing a comprehensive plan to
insure its Year 2000 readiness.
(a) Company's State of Readiness
Atrix is currently in the process of evaluating its information technology
infrastructure for Year 2000 compliance. The Company's internal accounting
system, as well as other significant software packages the Company uses,
including Windows 95 and Office 97, are Year 2000 ready. The software
utilized for managing the factory and the software used for payroll input,
need one additional upgrade to be Year 2000 ready. These upgrades are
presently in-house, but need to be installed. The new release of the
Company's Wintrax III product, which is in Beta testing, is also Year 2000
ready. Additional tests are being made on internal personal computers,
phone system, and alarm system to verify readiness.
(b) Costs Associated with Year 2000 Issues
Thus far, the majority of the work on insuring Year 2000 compatibility has
been performed by the Company's employees, which has limited the cost spent
to date. As a result, the Company has not incurred any material expense to
date, nor does it intend to incur any material costs on this project.
FORM 10-QSB SEPTEMBER 30, 1998 PAGE 4
<PAGE>
(c) Risks Associated with Year 2000 Issues
Atrix currently has limited information concerning the Year 2000 compliance
status of its key suppliers and customers. The Company plans to verify
third-party compliance, primarily through the use of questionnaires. In the
event that any of the Company's key suppliers or customers do not
successfully and timely achieve Year 2000 compliance, the Company's
business or operations could be adversely affected.
(d) Contingency Plans
Because the complete assessment of Year 2000 issues is incomplete, the
Company has not yet developed contingency plans for this issue. Management
expects the assessment and any related necessary contingency plans will be
complete by the end of the second quarter of calendar 1999.
FORM 10-QSB SEPTEMBER 30, 1998 PAGE 5
<PAGE>
ATRIX INTERNATIONAL, INC.
BALANCE SHEET
<TABLE>
<CAPTION>
ASSETS September 30, 1998 June 30, 1998
------------------ -------------
Current Assets: (unaudited)
<S> <C> <C>
Cash and cash equivalents $ 1,395,090 $ 1,195,079
Marketable securities, at cost 289,679
Accounts receivable less allowance for doubtful accounts
(of $27,000 at both dates) 714,544 706,010
Inventories 800,038 802,138
Prepaid expenses 63,515 117,230
----------- -----------
Total Current Assets 2,973,187 3,110,136
----------- -----------
Deferred Income Taxes 124,000 124,000
Property and equipment, net 286,618 277,915
Intangible assets, net 72,769 73,362
Capitalized software development costs, net 226,156 230,166
----------- -----------
TOTAL ASSETS $ 3,682,730 $ 3,815,579
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 327,508 $ 449,038
Notes payable - bank 775,000 775,000
Current maturities of long-term debt 11,021 23,645
Accrued liabilities 66,167 71,386
----------- -----------
Total current liabilities 1,179,696 1,319,069
Notes payable - long term 86,440 90,803
----------- -----------
Total Liabilities 1,266,136 1,409,872
Shareholders' Equity:
Preferred stock, $.04 par value
12,500,000 shares authorized,
1,413,449 shares issued and outstanding,
at both dates
Common stock, $.04 par value,
12,500,000 shares authorized, 1,413,449
shares issued and outstanding, at both dates 56,536 56,536
Additional paid-in capital 3,276,969 3,276,969
Accumulated deficit (916,911) (927,798)
----------- -----------
Total shareholders' equity 2,416,594 2,405,707
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,682,730 $ 3,815,579
=========== ===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
FORM 10-QSB SEPTEMBER 30, 1998 PAGE 6
<PAGE>
ATRIX INTERNATIONAL, INC.
STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended
September 30,
1998 1997
----------- -----------
Net sales $ 1,146,687 $ 1,048,977
Cost of sales 780,131 718,998
----------- -----------
Gross profit 366,556 329,979
Selling, general and
administrative expenses 375,285 375,688
----------- -----------
Income/(loss) from operations (8,729) (45,709)
Interest income/(expense) net 9,616 7,323
Other income 10,000
----------- -----------
Income/(loss) before taxes 10,887 (38,386)
Income tax expense 2,685
----------- -----------
Net Income/(loss) $ 10,887 $ (41,071)
=========== ===========
Net income/(loss) per share - Basic
and Diluted $ .01 $ (.03)
Weighted average number
of common shares outstanding 1,413,449 1,413,449
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
FORM 10-QSB SEPTEMBER 30, 1998 PAGE 7
<PAGE>
ATRIX INTERNATIONAL, INC.
STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended September 30,
1998 1997
----------- -----------
<S> <C> <C>
Cash flows from operating activities:
Net income/(loss) $ 10,887 $ (41,071)
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 41,588 42,899
Change in current assets and liabilities:
Accounts receivable (8,534) (27,072)
Inventories 2,100 (24,509)
Prepaid expenses 53,715 (12,700)
Accounts payable (121,529) (121,650)
Accrued liabilities (5,219) (14,430)
----------- -----------
Net cash used by operating activities (26,992) (198,533)
Cash flows from investing activities:
Purchase of equipment, leasehold
improvements and other assets, net (33,986) (3,900)
(Purchases)/ sales of marketable securities, net 289,679 117,672
Additions intangible assets (11,702) 0
----------- -----------
Net cash provided/(used) by investing activities 243,991 113,772
Cash flows from financing activities:
Proceeds (repayments) from notes payable - bank, net 0 (10,000)
Repayments of notes payable - Porous Media (16,988) (14,473)
Repayments of capital lease obligations 0 (989)
----------- -----------
Net cash (used)/ provided by financing activities (16,988) (25,462)
Net increase/(decrease) in cash 200,011 (110,223)
Cash - beginning of the period 1,195,079 1,386,514
----------- -----------
Cash - end of the period $ 1,395,090 $ 1,276,291
=========== ===========
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
FORM 10-QSB SEPTEMBER 30, 1998 PAGE 8
<PAGE>
ATRIX INTERNATIONAL, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1. CORPORATE ORGANIZATION
Atrix International, Inc. (the Company) designs and manufactures toner vacuums,
vacuum filters and circuit board transport cases. The Company also designs the
hardware and software for R3 Remote Metering and Copy Control products. In
addition, Atrix distributes tools, meters, electrostatic discharge (ESD) and
static control products and assembles tool kits for the telecommunication,
office machine and computer industries.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying financial statements, which are unaudited except for the
balance sheet as of June 30, 1998, have been prepared in accordance with
instructions to Form 10-QSB and do not include all the information and notes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for fair presentation have been
included. These financial statements should be read in conjunction with the
financial statements and accompanying notes included in the Company's Annual
Report on Form 10-KSB, for the year ended June 30, 1998 filed with the
Securities and Exchange Commission.
REVERSE STOCK SPLIT
On December 11, 1997, the Company announced a one-for-four reverse stock split,
effective December 16, 1997, for shareholders of record as of December 15, 1997.
The reverse split reduced the number of outstanding common shares in the Company
from 5,653,644 to 1,413,449 and raised the stock price above the $1.00 bid
requirement for NASDAQ SmallCap Market listed companies. Subsequent to the
reverse split, the Company exceeded all the requirements for continued listing:
net tangible assets, public float, market value of public float, number of
market makers, round of shareholders and corporate governance requirements. The
effect of the reverse stock split has been reflected for all periods presented.
NET INCOME (LOSS) PER SHARE
In February, 1997, the Financial Accounting Standards Board issued Statement No.
128, "Earnings Per Share" (SFAS No. 128), SFAS No. 128 applies to entities with
publicly held common stock and is effective for financial statements issued for
periods ending after December 15, 1997. Under SFAS No. 128 the presentation of
primary earnings per share is replaced with a presentation of basic earnings per
share. SFAS No. 128 requires dual presentation of basic and diluted earnings per
share for entities with complex capital structures. Basic earnings per share
includes no dilution and is computed by dividing net income (loss) available to
common stockholders by the weighted average number of common shares outstanding
for the period (1,413,449 for all periods presented in this report on Form
10-QSB). Diluted earnings per share reflects the potential dilution of
securities that could share in the earnings of an entity, similar to fully
diluted earnings per share. The Company has adopted SFAS No. 128 in the quarter
ended December 31, 1997, and all net income (loss) per share data presented
complies with this statement. There is no difference between basic and diluted
earnings per share data as presented, as the impact from stock options is either
anti-dilutive for the fiscal 1998 period due to net losses, or there was no
additional dilution from stock options for the fiscal 1999 period, due to stock
option exercise prices exceeding the average common stock price for the periods.
FORM 10-QSB SEPTEMBER 30, 1998 PAGE 9
<PAGE>
NOTE 3. INVENTORIES
Inventories are comprised of the following at:
September 30, 1998 June 30, 1998
------------------ -------------
Raw Materials $364,079 $336,649
Finished goods 435,959 465,489
-------- --------
Total $800,038 $802,138
NOTE 4. INCOME TAXES
The Company has available net operating loss and tax credit carryforwards for
income tax purposes of $1,340,975 on June 30, 1998. These carryforwards expire
in the years ending June 30, 2003 through 2008. Utilization of the net operating
loss and tax credit carryforwards may be subject to certain limitations under
Section 382 of the Internal Revenue Code. A valuation allowance exists for a
portion of the net tax benefit associated with all carryforwards and temporary
differences at June 30, 1998 as their realization is not presently more likely
than not.
INVENTORY OF DEFERRED ITEMS AND NOL CARRYFORWARD
The composition of the net deferred tax is as follows:
September 30, 1998 June 30, 1998
------------------ -------------
Loss Carryforwards $498,891 $503,659
Research & Development
Credits 83,688 83,688
Inventory 33,718 33,718
Bad Debts 11,767 11,767
Fixed Assets 68,666 70,649
Software Development Costs (212,579) (211,377)
Other 0 0
-------- --------
484,151 492,104
Less: Valuation Allowance (360,151) (368,104)
-------- --------
$124,000 $124,000
======== ========
FORM 10-QSB SEPTEMBER 30, 1998 PAGE 10
<PAGE>
SIGNATURES
Pursuant to the requirement of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ATRIX INTERNATIONAL, INC.
Date: November 12, 1998 /S/ Steven D. Riedel
-----------------------------------
Steven D. Riedel
Chief Executive Officer
(Principal Executive Officer)
/S/ Dean L. Gerber
-----------------------------------
Dean L. Gerber
Chief Financial Officer
(Principal Financial and Accounting
Officer)
FORM 10-QSB SEPTEMBER 30, 1998 PAGE 11
<PAGE>
ATRIX INTERNATIONAL, INC.
EXHIBIT INDEX TO ANNUAL REPORT
ON FORM 10-QSB
FOR THE QUARTER ENDED SEPTEMBER 30, 1998
ITEM NO. ITEM METHOD OF FILING
- -------- ---- ----------------
27.1 Financial Data Schedule for the
quarter ended September 30, 1998 Filed herewith
27.2 Amended Financial Data
Schedule for the quarter ended
September 30, 1997 Filed herewith
FORM 10-QSB SEPTEMBER 30, 1998 PAGE 12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-QSB
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 1,395,090
<SECURITIES> 0
<RECEIVABLES> 714,544<F1>
<ALLOWANCES> 0
<INVENTORY> 800,038
<CURRENT-ASSETS> 2,973,187
<PP&E> 286,618<F2>
<DEPRECIATION> 0
<TOTAL-ASSETS> 3,682,730
<CURRENT-LIABILITIES> 1,179,696
<BONDS> 0
0
0
<COMMON> 56,536
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 3,682,730
<SALES> 1,146,687
<TOTAL-REVENUES> 1,146,687
<CGS> 780,131
<TOTAL-COSTS> 780,131
<OTHER-EXPENSES> 375,285
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9,616<F3>
<INCOME-PRETAX> 10,887
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,887
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
<FN>
<F1>Net of allowance for doubtful accounts.
<F2>Net of accumulated depreciation.
<F3>Interest expense is net with interest income.
The Board of Directors approved a one-for-four reverse split of the Company's
Common Stock, effective for shareholders of record as of December 15, 1997.
Prior financial data schedules have not been restated to reflect the reverse
stock split.
</FN>
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-QSB
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 1,276,291
<SECURITIES> 211,385
<RECEIVABLES> 570,163<F1>
<ALLOWANCES> 0
<INVENTORY> 943,002
<CURRENT-ASSETS> 3,107,856
<PP&E> 352,473<F2>
<DEPRECIATION> 0
<TOTAL-ASSETS> 3,882,111
<CURRENT-LIABILITIES> 1,357,461
<BONDS> 0
0
0
<COMMON> 56,536
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 3,882,111
<SALES> 1,048,977
<TOTAL-REVENUES> 1,048,977
<CGS> 718,998
<TOTAL-COSTS> 718,998
<OTHER-EXPENSES> 375,688
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (7,323)<F3>
<INCOME-PRETAX> (38,386)
<INCOME-TAX> 2,685
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (41,071)
<EPS-PRIMARY> (.03)
<EPS-DILUTED> (.03)
<FN>
<F1>Net of allowance for doubtful accounts.
<F2>Net of accumulated depreciation.
<F3>Interest expense is net with interest income.
The Board of Directors approved a one-for-four reverse split of the Company's
Common Stock, effective for shareholders of record as of December 15, 1997.
Prior financial data schedules have not been restated to reflect the reverse
stock split.
</FN>
</TABLE>
