FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED SEPTEMBER 30, 1997
COMMISSION FILE NUMBER 0-17508
TELESCAN, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 72-1121748
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5959 CORPORATE DRIVE, SUITE 2000, HOUSTON, TEXAS 77036
(Address of principal executive offices) (Zip Code)
(281) 588-9700
(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 and Exchange Act of 1934
during the preceding 12 months, and (2) has been subject to such filing
requirements for the past 90 days.
YES [X] NO [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
$.01 par value per share Common Stock: 10,797,806 as of November 12, 1997.
<PAGE>
TELESCAN, INC.
Report on Form 10-Q
Quarter Ended September 30, 1997
INDEX
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS ............................... 3
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS .................. 8
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS .................................... 12
ITEM 2. CHANGES IN SECURITIES ................................ 12
ITEM 3. DEFAULTS UPON SENIOR SECURITIES ..................... 12
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS .............................................. 12
ITEM 5. OTHER INFORMATION ................................... 12
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K .................... 12
SIGNATURES .................................................... 12
2
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
TELESCAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
SEPTEMBER 30, DECEMBER 31,
1997 1996
-------- --------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ........................ $ 1,031 $ 792
Accounts receivable, net ......................... 1,984 1,616
Receivables from affiliates ...................... 298 342
Prepaid expenses ................................. 390 369
Inventory ........................................ 95 107
Other current assets ............................. 242 218
-------- --------
TOTAL CURRENT ASSETS ......................... 4,040 3,444
Property and equipment, net ......................... 2,003 2,626
Software development costs, net ..................... 5,163 4,182
Software technology rights, net ..................... 192 246
Capitalized data costs, net ......................... 474 656
Other assets, net ................................... 264 312
-------- --------
TOTAL ASSETS ................................. $ 12,136 $ 11,466
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable ................................. $ 2,201 $ 1,987
Accrued liabilities .............................. 515 446
Current portion of long-term debt and capital
lease obligations .............................. 362 420
Amounts due to stockholders and affiliates ....... 36 137
-------- --------
TOTAL CURRENT LIABILITIES .................... 3,114 2,990
Long-term debt ...................................... 191 237
Capital lease obligations ........................... 131 251
Minority interest in subsidiary ..................... -- 24
CONTINGENCIES (NOTE 2) .............................. -- --
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value; 10,000,000 shares
authorized;
none issued .................................. -- --
Common stock; $.01 par value; 15,000,000 shares
authorized;
10,785,556 and 10,733,114 shares issued and
outstanding in
1997 and 1996, respectively .................. 107 107
Additional paid-in capital ....................... 17,546 17,385
Accumulated deficit .............................. (8,953) (9,528)
-------- --------
TOTAL STOCKHOLDERS' EQUITY ................... 8,700 7,964
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ... $ 12,136 $ 11,466
======== ========
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
TELESCAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------ ------------------
1997 1996 1997 1996
------- -------- ------- --------
Revenue:
Service ....................... $ 3,489 $ 2,618 $10,100 $ 8,006
Products ...................... 440 444 1,208 1,516
Contract revenue earned
from affiliates ............. 327 173 1,055 456
------- -------- ------- --------
Total revenue ............ 4,256 3,235 12,363 9,978
Costs and expenses:
Cost of service ............... 1,934 1,792 6,012 5,423
Cost of products .............. 141 282 550 862
Selling and marketing
expenses .................... 620 806 1,891 2,321
General and administrative
expenses .................... 1,237 1,345 3,606 3,905
Interest expense .............. 20 17 75 56
------- -------- ------- --------
Total costs and expenses ..... 3,952 4,242 12,134 12,567
Income (loss) before
minority interest ............... 304 (1,007) 229 (2,589)
Minority interest in loss of
subsidiary ...................... 88 123 346 232
------- -------- ------- --------
Net income (loss) ............. $ 392 $ (884) $ 575 $ (2,357)
======= ======== ======= ========
Net income (loss) per common share . $ 0.04 $ (0.08) $ 0.05 $ (0.22)
======= ======== ======= ========
Weighted average common and
common equivalent shares
outstanding ...................... 10,782 10,686 10,755 10,580
======= ======== ======= ========
The accompanying notes are an integral part of these financial
statements.
4
<PAGE>
TELESCAN, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
NINE MONTHS ENDED
SEPTEMBER 30,
---------------------
1997 1996
------- -------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) .................................... $ 575 $(2,357)
Adjustments to reconcile net loss to net cash
(used) provided by
operating activities:
Minority interest in loss of subsidiary ...... (346) (232)
Depreciation and amortization ................ 1,769 1,590
Provision for doubtful accounts .............. 43 42
Changes in current assets and liabilities
Receivables and advances ..................... (367) (245)
Other current assets ......................... (34) 211
Accounts payable ............................. 214 265
Other current liabilities .................... 69 403
------- -------
Net cash (used) provided by
operating activities .................. 1,923 (323)
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net additions to property and equipment ...... 10 (839)
Additions to software development costs ...... (1,847) (1,351)
Additions to capitalized data costs .......... -- (117)
Other ........................................ (5) (28)
------- -------
Net cash used by investing
activities ....................... (1,842) (2,335)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuances of common stock ...... 161 2,646
Payments on notes payable and capital lease .. (224) (243)
Capital contributions from minority
shareholder of
Knowledge Express ........................ 221 --
------- -------
Net cash provided by financing
activities ............................ 158 2,403
------- -------
Increase (decrease) in cash and cash equivalents ..... 239 (255)
Cash and cash equivalents
Beginning of period .......................... 792 1,796
======= =======
End of period ................................ $ 1,031 $ 1,541
======= =======
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
TELESCAN, INC. AND SUBSIDIARIES
SUPPLEMENTAL CASH FLOW INFORMATION
The effects of non-cash transactions are excluded from the statements of cash
flow. Supplemental disclosures of cash flow information are as follows:
NINE MONTHS ENDED
SEPTEMBER 30,
------------------
1997 1996
---- ----
Payable to minority shareholder of Knowledge
Express converted to equity ............................ 101 --
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
TELESCAN, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The condensed consolidated financial statements include the accounts of
Telescan, Inc., and its majority owned subsidiary ("Telescan" or the "Company").
All significant intercompany accounts and transactions have been eliminated in
consolidation.
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with Rule 10-01 of Regulation S-X for interim financial
statements required to be filed with the Securities and Exchange Commission and
do not include all information and footnotes required by generally accepted
accounting principles. However, in the opinion of management, the information
furnished reflects all adjustments, consisting of normal recurring adjustments,
which are necessary to make a fair presentation of financial position and
operating results for the interim periods.
Amounts in the September 30, 1996 condensed consolidated financial statements
have been reclassified whenever necessary to conform with the current period's
presentation.
The accompanying condensed consolidated financial statements should be read in
conjunction with the audited consolidated financial statements for the year
ended December 31, 1996. The results of operations for the nine month period
ended September 30, 1997, are not necessarily indicative of the results to be
expected for the full year.
2. CONTINGENCIES
In 1986, a stockholder of Telescan, Inc. (predecessor business to D.B.
Technology, Inc.) filed suit in the 269th District Court in Texas against the
Company, certain stockholders of the Company, and others. The suit sought to set
aside the 1986 merger of D.B. Technology and Telescan, Inc., money damages from
all defendants, and sums due under alleged promissory notes. The case went to
trial in October 1989 and judgment was rendered in favor of the defendants on a
directed verdict including an order for the plaintiff to pay certain court costs
and certain attorney's fees of Telescan, Inc. Subsequent to an appeal by the
stockholder in the Texas Court of Appeals 14th Judicial District, the appellate
court remanded the case to trial court. At the conclusion of presentation of
evidence, the case was submitted to the jury by means of questions in order to
determine issues of liability and damages. Based on a lack of evidence which
would impose liability upon Telescan, Inc., no questions were submitted which
asked the jury to determine whether or not the Company bears any liability to
any plaintiff. A hearing on pending matters, including entry of Judgment, was
held April 10, 1995. At the hearing the court ruled that plaintiffs take nothing
other than the payment, with interest, of $40,000 in promissory notes in favor
of plaintiff Investa, Inc. and Hoggett, which notes preceded the merger. The
defendants were awarded attorney's fees and court costs. The Judgment has been
entered. The plaintiffs appealed before the Texas Court of Appeals, 14th
Judicial District. On September 4, 1997, the appellate court upheld the judgment
of the trial court in favor of the defendants. Management does not believe that
any material adverse outcome is reasonably possible nor probable and thus, no
qualified disclosure as to a range of reasonable possible loss or accrual in the
financial statements of probable loss have been made.
7
<PAGE>
During November 1996, the Company and a publisher signed a written release
canceling their agreement to develop and operate an online service. As of
September 30, 1997, the Company had capitalized $500,000 in software development
and data costs related to its development effort under the agreement, which
began August 1, 1993. The Company has had discussions with other parties
interested in developing such an online system and currently believes that the
asset's net realizable value is not impaired.
In January 1997, the Company was named as a defendant in a legal action
regarding royalty payments. Management does not believe the outcome of this
matter will have a material adverse effect on the Company's consolidated
financial position, operating results or cash flows.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
OVERVIEW
Telescan is an industry leader in providing innovative solutions for online
technology, sophisticated data retrieval tools and Internet services. The
Company develops, markets, and operates major online networks and Internet sites
serving the financial, publishing, entertainment and technology transfer
industries. The Company's products and services, which are based upon its
proprietary online operating system and user software, allow its customers to
electronically access and analyze information through their personal computer
systems and/or over the Internet.
The Company's primary product lines are (1) the Telescan system of online and
Internet financial services and products provided directly to users as well as
under private label agreements with third parties. These services allow
sophisticated investors to obtain financial news and information, perform
fundamental and technical analyses and design personalized searches using
current and historical financial information on more than 220,000 equities,
indices and currencies; (2) numerous non-financial third party online and
Internet services which are developed and operated via alliances with third
parties in the publishing, entertainment, and space industries and Computer
Sports Network division ("CSN"), which offers online computer sports games to
golf and baseball enthusiasts; and (3) Knowledge Express Data Systems, L.C.
("KE"), an online database system for the commercialization and transfer of
technology which serves corporations, government agencies, universities, and
research institutions.
Revenue is generated in the form of online and Internet service fees, fees from
third parties, product sales, contract revenue and advertising. Total revenues
have increased in the first nine months of 1997 compared to the corresponding
period of 1996. In the first quarter of 1996, the Company's revenues included a
large Department of Energy contract. Despite the loss of the governmental
contract, which generated $450,000 in the first quarter of 1996, revenues have
increased primarily due to private label agreements and the growth of the
Company's Wall Street City (TRADE MARK) website.
The Company's online and Internet revenue is generated from individual
subscribers paying annual usage fees and monthly fees, combined with fees from
alliance parties providing private label versions of the
8
<PAGE>
Company's service. Product revenue is derived mainly from the sale of online
system software combined with upgrades and enhancements and related educational
and training products such as books and videotapes. The level of product sales
is influenced by new product releases for online services. During the third
quarter of 1997, the Company released TIP@Wallstreet(TRADEMARK), which uses an
enhanced Internet browser to access Internet information from the Company's Wall
Street City website.
Contract revenue represents services provided to Telebuild, L.C. ("Telebuild")
in which the Company has a 15.05% equity interest. Revenue is generated on a
profitable basis based on the services provided. At September 30, 1997 and 1996,
amounts due from Telebuild totaled $298,000 and $269,000 respectively.
Results for the nine months ended September 30, 1997 reflect the Company's
continuing efforts to grow market share in its existing online services, as well
as to pursue strategic partnership opportunities that will enable the Company to
broaden the usage of its proprietary technology platform and enter new segments
of the online and Internet services markets. During the third quarter of 1997,
the Company signed a letter of agreement to negotiate an exclusive license
granting rights to certain of its proprietary technology to a major financial
institution.
QUARTER ENDED SEPTEMBER 30, 1997 COMPARED TO QUARTER ENDED SEPTEMBER 30, 1996
Service revenue increased $871,000 or 33% for the quarter ended September 30,
1997 compared to the same time period in 1996. The increase was substantially
due to revenue derived under private label agreements, including fees paid under
the letter of agreement with a major financial institution. Revenues from
Telebuild, in which the Company has a 15.05% equity interest, increased from
$173,000 for the quarter ended September 30, 1996 to $327,000 for the quarter
ended September 30, 1997.
Cost of service increased $142,000 or 8% for the quarter ended September 30,
1997 compared to the quarter ended September 30, 1996. The increased cost was
primarily attributable to services provided for Telebuild. Higher amortization
costs of $67,000 were partially offset by decreases in other service costs. Cost
of products decreased between the comparable quarters due to a significant
reduction in seminar expenses. The Company has restructured its seminar program
in an effort to minimize unreimbursed costs.
With the service revenue increase of 33% and the cost of service increase of 8%,
gross margins on service and contract revenue rose to 49% for the quarter ended
September 30, 1997 from 36% for the same period in 1996.
Marketing expenses totaled $806,000 for the three months ended September 30,
1996 and $620,000 for the same time period in 1997, representing a decrease of
$186,000 or 23%. Reductions in sales promotion expenses accounted for $97,000 of
the decrease. Salary expense, net of amounts capitalized as development costs,
were lower by $27,000.
General and administrative expenses were $108,000 lower for the three months
ended September 30, 1997 as compared to 1996. Lower consulting and legal fees
contributed $67,000 and $55,000, respectively, to the decrease. These favorable
reductions were offset somewhat by higher equipment leasing expense of $74,000.
Depreciation expense was reduced by $20,000.
9
<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED WITH THE NINE MONTHS ENDED
SEPTEMBER 30, 1996
Service revenue for the nine months ended September 30, 1997 as compared to a
year earlier was up $2,094,000 or 26%. This increase is largely due to revenues
earned from private label agreements which began in late 1996 and the addition
of a new agreement during the third quarter of 1997. The Company's revenues were
further enhanced by a reduction in credit allowance expenses, which is a direct
charge against revenue. Product revenue was down $308,000 through September 30,
1997 as compared to the same period in 1996. During this time period in 1996 a
new product, ProSearch 5.0, was introduced. The Company's latest release,
TIP@Wallstreet, was not introduced until late in the third quarter of 1997.
Revenues from Telebuild, in which the Company has a 15.05% equity interest,
increased from $456,000 for the nine months ended September 30, 1996 to
$1,055,000 in the same period in 1997.
The cost of service was $589,000 higher for the nine months ended September 30,
1997 over the year earlier. The increased cost of service was primarily
attributable to services provided to Telebuild. Higher royalty and amortization
costs were partially offset by reduced customer service and communications
costs. The $312,000 decrease in product costs reflects lower revenue and $97,000
less in seminar expense.
Selling expenses decreased $430,000 or 19% from the nine months ended September
30, 1996 to the same period in 1997. Salary expense, net of amounts capitalized,
was reduced by $130,000. Sales promotion expense was lower by $91,000. Other
contributing factors include reduced communication expense, travel and
entertainment and commission expense.
General and administrative expenses were $299,000 less for the nine months
ending September 30, 1997 as compared to the same time period in 1996.
Consulting fees were reduced by $200,000 for the nine months ended September 30,
1997 was compared to the same period in 1996. Uncapitalized salary expense was
$144,000 less for this period in 1997 and legal fees were $108,000 lower. These
reductions were offset by higher equipment rental expense of $178,000.
10
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1997, the Company had cash and cash equivalents of $1,031,000,
representing an increase of $239,000 since December 31, 1996. Net cash provided
by operating activities was $1,923,000 for the nine months ended September 30,
1997, compared to cash used by operations of $323,000 for the nine months ended
September 30, 1996. This $2,246,000 increase in cash provided by operations
primarily reflects the $2,932,000 improvement in operating results.
The Company's primary capital needs are for (1) the continued investment in
technology through its software development activities, and (2) the purchase of
state-of-the-art computer equipment and software. During the nine months ended
September 30, 1997, the Company invested $1,847,000 in software development.
Equipment has been financed through operating leases and notes payable totaling
$110,000. The Company estimates that it may invest up to an additional $1
million in capital expenditures over the next twelve months. The Company
believes that existing cash on hand, cash generated from operations and
financing from operating leases will be adequate to fund its working capital and
other cash requirements over the next twelve months. Should additional funds be
required, Management believes it would be able to sell additional common stock.
There are no plans to sell additional shares at this time.
Aggregate revenue from the Company's financial services and related product
sales accounted for approximately 85% of the Company's total revenue for the
nine months ended September 30, 1997. A downturn in the equity markets could
cause a reduction in this revenue, which could have an adverse effect on the
Company's financial position and results of operations. However, the Company
believes that the effect of such adverse market conditions would be lessened by
its fixed rate billing structure and its private label agreements, which
generated revenues totaling $4,119,000 for the nine months ended September 30,
1997 as compared to $848,000 during the comparable period in 1996.
11
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
Not applicable.
ITEM 2. CHANGES IN SECURITIES.
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 5. OTHER INFORMATION.
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(A) Exhibits:
11* Statement regarding computation of earnings per share.
27* Financial Data Schedule.
- ------------
* Indicates documents filed herewith.
(B) Reports on Form 8-K:
None.
Pursuant to the requirements of the Securities Exchanges Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TELESCAN, INC.
By: /s/ RONALD WARREN
Ronald Warren
Chief Financial Officer a duly
authorized officer of the Registrant
Date: November 12, 1997
12
EXHIBIT 11
TELESCAN, INC. AND SUBSIDIARIES
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
PAGE 1 OF 2
DAYS WEIGHTED
SHARES OUTSTANDING SHARES
---------- ---------- ----------
QUARTER ENDED SEPTEMBER 30, 1997:
Balance June 30, 1997 ................ 10,765,211 92 10,765,211
Common stock issuances ............... 20,345 78.0 17,249
---------- ----------
Balance September 30, 1997 ........... 10,785,556 10,782,460
========== ==========
NINE MONTHS ENDED SEPTEMBER 30, 1997:
Balance December 31, 1996 ............ 10,733,114 273 10,733,114
Common stock issuances ............... 52,442 115.1 22,110
---------- ----------
Balance September 30, 1997 ........... 10,785,556 10,755,224
========== ==========
<PAGE>
TELESCAN, INC.
CALCULATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------- --------------------------
1997 1996 1997 1996
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
PRIMARY:
Weighted average number of
shares of common stock ......... 10,782,460 10,686,043 10,755,224 10,579,673
Assumed exercise of certain
stock options .................. 311,928 373,760 275,024 392,937
Assumed exercise of stock
warrants ....................... -- 89,335 -- 67,750
----------- ------------ ----------- ------------
11,094,388 11,149,138 11,030,248 11,040,360
=========== ============ =========== ============
Net income (loss) ................ $ 392,264 $ (883,378) $ 575,302 $ (2,356,389)
=========== ============ =========== ============
PRIMARY EARNINGS PER SHARE:
Net income (loss) ................ $ 0.04 $ (0.08) $ 0.05 $ (0.21)
=========== ============ =========== ============
FULLY-DILUTED:
Weighted average number of
shares of common stock ........ 10,782,460 10,686,043 10,755,224 10,579,673
Assumed exercise of certain
stock options ................. 358,471 394,032 358,471 392,937
Assumed exercise of stock warrants -- 95,526 -- 67,750
----------- ------------ ----------- ------------
11,140,931 11,175,601 11,113,695 11,040,360
=========== ============ =========== ============
Net income (loss) ................ $ 392,264 $ (883,378) $ 575,302 $ (2,356,389)
=========== ============ =========== ============
FULLY-DILUTED EARNINGS PER SHARE: $ 0.04 $ (0.08) $ 0.05 $ (0.21)
=========== ============ =========== ============
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 1,031
<SECURITIES> 0
<RECEIVABLES> 2,076
<ALLOWANCES> 92
<INVENTORY> 95
<CURRENT-ASSETS> 4,040
<PP&E> 5,084
<DEPRECIATION> 3,081
<TOTAL-ASSETS> 12,136
<CURRENT-LIABILITIES> 3,114
<BONDS> 0
0
0
<COMMON> 107
<OTHER-SE> 8,593
<TOTAL-LIABILITY-AND-EQUITY> 12,136
<SALES> 1,208
<TOTAL-REVENUES> 12,363
<CGS> 550
<TOTAL-COSTS> 8,453
<OTHER-EXPENSES> 3,606
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 75
<INCOME-PRETAX> 575
<INCOME-TAX> 0
<INCOME-CONTINUING> 575
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 575
<EPS-PRIMARY> 0.05
<EPS-DILUTED> 0.05
</TABLE>
