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 March 31, 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 0-17272
__________________
TECHNE CORPORATION
(Exact name of registrant as specified in its charter)
MINNESOTA 41-1427402
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
614 MCKINLEY PLACE N.E. (612) 379-8854
MINNEAPOLIS, MN 55413 (Registrant's telephone
(Address of principal number including area code)
executive offices) (Zip 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 ( )
At May 1, 1998, 19,032,483 shares of the Company's Common Stock (par value
$.01) were outstanding.
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
TECHNE CORPORATION & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
3/31/98 6/30/97
----------- -----------
<S> <C> <C>
ASSETS
Cash and cash equivalents $12,139,591 $ 8,598,367
Short-term investments 24,331,524 16,153,890
Accounts receivable (net) 10,237,674 9,114,447
Inventories 3,886,927 4,087,161
Deferred income taxes 1,439,000 1,322,000
Other current assets 529,087 521,493
----------- ----------
Total current assets 52,563,803 39,797,358
Deferred income taxes 1,769,000 1,703,000
Fixed assets (net) 11,806,483 11,252,741
Intangible assets (net) 303,515 365,311
Other assets 478,900 803,300
----------- -----------
TOTAL ASSETS $66,921,701 $53,921,710
=========== ===========
LIABILITIES & EQUITY
Trade accounts payable $ 2,394,128 $ 1,609,362
Salary and related accruals 2,015,023 1,790,035
Other payables 842,440 498,873
Income taxes payable 1,395,586 1,000,096
----------- -----------
Total current liabilities 6,647,177 4,898,366
Deferred rent 1,476,900 942,300
Common stock, par value $.01 per
share; authorized 50,000,000;
issued and outstanding
19,026,233 and 18,875,456,
respectively 190,262 188,755
Additional paid-in capital 13,524,588 12,653,449
Retained earnings 44,581,134 34,808,768
Accumulated foreign currency
translation adjustments 501,640 430,072
----------- -----------
Total stockholders' equity 58,797,624 48,081,044
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $66,921,701 $53,921,710
=========== ===========
</TABLE>
See notes to unaudited Consolidated Financial Statements.
TECHNE CORPORATION & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
QUARTER ENDED NINE MONTHS ENDED
------------------------ ------------------------
3/31/98 3/31/97 3/31/98 3/31/97
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
SALES $17,698,472 $16,251,827 $48,708,472 $44,688,099
Cost of sales 5,490,966 4,979,754 14,922,728 14,329,596
----------- ----------- ----------- -----------
Gross margin 12,207,506 11,272,073 33,785,744 30,358,503
Operating expenses
(income):
Selling, general and
administrative 3,748,958 4,114,790 11,602,557 11,089,559
Research and development 2,725,251 2,940,709 7,706,757 8,770,804
Amortization expense 9,662 58,877 61,796 176,631
Interest expense - 731 - 29,255
Interest income (314,023) (188,936) (844,390) (511,408)
----------- ----------- ----------- -----------
6,169,848 6,926,171 18,526,720 19,554,841
----------- ----------- ----------- -----------
Earnings before
income taxes 6,037,658 4,345,902 15,259,024 10,803,662
Income taxes 2,015,000 1,394,000 4,846,000 3,399,000
----------- ----------- ----------- -----------
NET EARNINGS $ 4,022,658 $ 2,951,902 $10,413,024 $ 7,404,662
=========== =========== =========== ===========
BASIC EARNINGS PER SHARE $ 0.21 $ 0.16 $ 0.55 $ 0.39
DILUTED EARNINGS PER SHARE $ 0.20 $ 0.15 $ 0.53 $ 0.38
</TABLE>
See notes to unaudited Consolidated Financial Statements.
TECHNE CORPORATION & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
-------------------------
3/31/98 3/31/97
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $10,413,024 $ 7,404,662
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization 1,699,813 1,683,709
Deferred income taxes (181,000) (363,000)
Deferred rent 534,600 305,550
Tax benefit from exercise of options 127,000 -
Other 205,900 126,705
Change in current assets and current
liabilities:
(Increase) decrease in:
Accounts receivable (1,152,283) (596,832)
Inventories 192,467 (298,033)
Other current assets (7,503) (82,138)
Increase (decrease) in:
Trade account/other payables 1,131,345 (353,579)
Salary and related accruals 225,532 (431,358)
Income taxes payable 392,725 (165,457)
----------- -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 13,581,620 7,230,229
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of short-term investments (20,145,831) (11,324,586)
Proceeds from sale of short-term investments 11,968,197 8,945,000
Additions to fixed assets (2,443,887) (3,876,338)
Proceeds from sale of fixed assets 246,503 -
Increase in other long term assets (150,000) (250,000)
----------- -----------
NET CASH USED BY INVESTING ACTIVITIES (10,525,018) (6,505,924)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock 653,488 115,096
Repurchase of common stock (280,000) (2,976,452)
----------- -----------
NET CASH PROVIDED (USED) BY FINANCING
ACTIVITIES 373,488 (2,861,356)
EFFECT OF EXCHANGE RATE CHANGES ON CASH 111,134 106,272
----------- -----------
NET CHANGE IN CASH AND EQUIVALENTS 3,541,224 (2,030,779)
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 8,598,367 7,422,084
----------- -----------
CASH AND EQUIVALENTS AT END OF PERIOD $12,139,591 $ 5,391,305
=========== ===========
</TABLE>
See notes to unaudited Consolidated Financial Statements.
TECHNE CORPORATION & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
A. BASIS OF PRESENTATION:
The unaudited Consolidated Financial Statements have been prepared in
accordance with generally accepted accounting principles and with
instructions to Form 10-Q and Article 10 of Regulation S-X. The
accompanying unaudited Consolidated Financial Statements reflect all
adjustments which are, in the opinion of management, necessary to a fair
presentation of the results for the interim periods presented. All such
adjustments are of a normal recurring nature.
A summary of significant accounting policies followed by the Company is
detailed in the Annual Report to Shareholders for Fiscal 1997. The Company
follows these policies in preparation of the interim Financial Statements.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that the
Consolidated Financial Statements be read in conjunction with the Company's
Consolidated Financial Statements and Notes thereto for the fiscal year
ended June 30, 1997 included in the Company's Annual Report to Shareholders
for Fiscal 1997.
Certain Consolidated Balance Sheet captions appearing in this interim
report are as follows:
<TABLE>
<CAPTION>
3/31/98 6/30/97
----------- -----------
<S> <C> <C>
ACCOUNTS RECEIVABLE
Accounts receivable $10,283,674 $ 9,166,447
Less reserve for bad debts 46,000 52,000
----------- -----------
NET ACCOUNTS RECEIVABLE $10,237,674 $ 9,114,447
=========== ===========
INVENTORIES
Raw materials $ 2,221,142 $ 2,105,836
Work in process - 89,100
Supplies 129,525 121,483
Finished goods 1,536,260 1,770,742
----------- -----------
TOTAL INVENTORIES $ 3,886,927 $ 4,087,161
=========== ===========
FIXED ASSETS
Laboratory equipment $ 9,653,781 $ 9,513,329
Office equipment 2,849,483 2,671,947
Leasehold improvements 10,244,340 9,063,354
----------- -----------
22,747,604 21,248,630
Less accumulated depreciation
and amortization 10,941,121 9,995,889
----------- -----------
NET FIXED ASSETS $11,806,483 $11,252,741
=========== ===========
INTANGIBLE ASSETS
Customer list $ 1,010,000 $ 1,010,000
Technology licensing agreements 500,000 500,000
Goodwill 1,225,547 1,225,547
----------- -----------
2,735,547 2,735,547
Less accumulated amortization 2,432,032 2,370,236
----------- -----------
NET INTANGIBLE ASSETS $ 303,515 $ 365,311
=========== ===========
</TABLE>
In June 1997, the Financial Accounting Standards Board issued SFAS No. 131,
"Disclosures about Segments of an Enterprise and Related Information,"
which will be effective for the Company beginning July 1, 1998. SFAS No.
131 redefines how operating segments are determined and requires disclosure
of certain financial and descriptive information about a company's
operating segments. The Company believes that this statement will not have
a material impact on results reported in its consolidated financial statements.
In June 1997, the Financial Accounting Standards Board issued SFAS No. 130,
"Reporting Comprehensive Income," which will be effective for the Company
beginning July 1, 1998. SFAS No. 130 requires the disclosure of
comprehensive income and its components in the Company's financial
statements. The Company anticipates the effect of SFAS No. 130 will result
in disclosure of unearned compensation on stock options and foreign
currency translation adjustments on the face of the comprehensive income
statement.
B. STOCK SPLIT:
On October 23, 1997, the Company declared a two-for-one stock split in the
form of a 100% stock dividend payable to shareholders of record on November
10, 1997. The payment date for the stock split was November 17, 1997. All
earnings per share and share amounts included in these financial statements
have been restated to reflect the stock split.
C. EARNINGS PER SHARE:
Effective for the quarter ended December 31, 1997, the Company adopted
Statement of Financial Accounting Standards No. 128 (SFAS 128), "Earnings
Per Share". All prior period earnings per share amounts have been restated
to conform to the new standard.
Shares used in the earnings per share computations are as follows:
<TABLE>
<CAPTION>
QUARTER ENDED NINE MONTHS ENDED
---------------------- ----------------------
3/31/98 3/31/97 3/31/98 3/31/97
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Weighted average common shares
outstanding--basic 19,005,562 18,888,756 18,923,525 18,934,536
Dilutive effect of stock
options and warrants 637,260 550,182 668,917 550,286
---------- ---------- ---------- ----------
Average common shares
outstanding--diluted 19,642,822 19,438,938 19,592,442 19,484,822
========== ========== ========== ==========
</TABLE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Operations Quarter and Nine Months Ended March 31, 1998
vs. Quarter and Nine Months Ended March 31, 1997
Techne Corporation (Techne) has two operating subsidiaries: Research and
Diagnostic Systems, Inc. (R&D Systems) located in Minneapolis, Minnesota and
R&D Systems Europe Ltd. (R&D Europe) located in Abingdon, England. R&D Systems
has two divisions: Biotechnology and Hematology. The Biotechnology Division
manufactures purified cytokines (proteins), antibodies and assay kits which
are sold primarily to biomedical researchers and clinical research
laboratories. The Hematology Division develops and manufactures whole blood
hematology controls and calibrators which are sold to hospital and clinical
laboratories to check the performance of their hematology instruments to assure
the accuracy of hematology test results. R&D Europe sells R&D Systems'
biotechnology products in Europe, both directly and through a sales subsidiary
in Germany. The Company has a foreign sales corporation, Techne Export Inc.
In November 1997 and January 1998, Techne purchased $1 million of preferred
stock of ChemoCentryx, Inc. (CCX), respectively, representing approximately
28% of issued and outstanding voting shares. In addition, Techne is
obligated to purchase a projected $3 million of preferred stock over the
next two years upon CCX's achievement of certain milestones. After
purchase of the additional preferred shares, Techne will own approximately
49% of the issued and outstanding voting shares (assuming no investment by
other parties). Techne has consolidated CCX into its financial statements
due to the limited amount of cash consideration provided by the holders of
the common shares of CCX. CCX is a new technology and drug development
company working in the area of chemokines. Chemokines are cytokines which
regulate the trafficking patterns of leukocytes, the effector cells of the
human immune system. In conjunction with the equity investment and joint
research efforts, Techne obtains exclusive worldwide research and
diagnostic marketing rights to chemokine proteins, antibodies and receptors
discovered or developed by CCX or R&D Systems.
Net Sales
Net sales for the quarter ended March 31, 1998 were $17,698,472, an
increase of $1,446,645 (9%) from the quarter ended March 31, 1997. Sales
for the nine months ended March 31, 1998 increased $4,020,373 (9%) from
$44,688,099 to $48,708,472. R&D Systems sales increased $1,694,851 (15%)
and $4,885,888 (16%) for the quarter and nine months ended March 31, 1998,
respectively. R&D Europe sales decreased $248,206 (5%) and $865,515 (6%)
for the quarter and nine months ended March 31, 1998, respectively. The
decrease in R&D Europe sales was not unexpected due to the discontinuance
of the molecular biology product line. R&D Europe sales of continuing
product lines increased 25% from the third quarter and first nine months of
last year.
The increase in consolidated sales for the quarter and nine months was due,
in part, to increased sales of R&D Systems' cytokines and antibodies.
Sales of cytokines and antibodies by R&D Systems and R&D Europe for the
quarter and nine months ended March 31, 1998 were $6,672,281 and
$17,519,404 compared to $5,033,963 and $13,586,958 for the quarter and nine
months ended March 31, 1997.
In addition, sales of hematology products increased $183,432 and $1,023,817
for the quarter and nine months ended March 31, 1998, due largely to
increased sales to an OEM customer and the addition of two OEM customers in
fiscal 1998.
Gross Margins
Gross margins, as a percentage of sales, were slightly less for the third
quarter, but increased from the first nine months of the prior year.
Margins for the third quarter of fiscal 1998 were 69.0% compared to 69.4%
for the same quarter in fiscal 1997. Margins for the nine months ended
March 31, 1998 were 69.4% compared to 67.9% for the same period in fiscal
1997.
R&D Europe gross margins decreased from 53.0% to 42.8% for the quarter and
from 52.9% to 47.8% for the nine months ended March 31, 1998 as a result of
changes in product mix and exchange rates. Hematology Division gross
margins decreased from 46.1% to 44.4% for the quarter, but increased from
42.7% to 45.1% for the nine months ended March 31, 1998. Biotechnology
Division gross margins increased from 71.5% to 72.5% for the quarter and
from 70.6% to 72.2% for the nine months ended March 31, 1998 as a result of
changes in product mix.
Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased $365,832 (9%) from
the third quarter of fiscal 1997 to the third quarter of fiscal 1998.
These expenses increased $512,998 (5%) for the first nine months of fiscal
1998. Included in third quarter fiscal 1997 selling, general and
administrative expenses was approximately $450,000 related to R&D Europe
restructuring charges. The majority of the increase for the nine months
was due to additional occupancy costs at R&D Systems, plus increased
advertising and promotion costs by R&D Systems. These increased costs were
partially offset by decreased personnel costs at R&D Europe as a result of
the restructuring in the third quarter of fiscal 1997.
Research and Development Expenses
Research and development expenses decreased $215,458 (7%) and $1,064,047
(12%) for the quarter and nine months ended March 31, 1998, respectively.
R&D Europe research and development expenses decreased $699,080 and
$2,037,186 for the quarter and nine months, respectively, as a result of a
decrease in payments under the Joint Biological Research Agreement with
British Bio-technology Group, plc. and a decrease in personnel as a result
of the restructuring and the transfer of the majority of research and
development activities to R&D Systems. R&D Systems' research and
development expenses increased $252,576 and $742,093 for the quarter and
nine months ended March 31, 1998, respectively. The increase related to
products currently under development, many of which have been or will be
released in fiscal 1998. Products currently under development include both
biotechnology and hematology products.
Net Earnings
Earnings before income taxes increased $1,691,756 from $4,345,902 in the
third quarter of fiscal 1997 to $6,037,658 in the third quarter of fiscal
1998. Earnings before taxes for the nine months increased $4,455,362 from
$10,803,662 to $15,259,024. The increase in earnings before income taxes
was due mainly to an increase in Biotechnology Division earnings of
$885,088 and $2,451,034 and an increase in Hematology Division earnings of
$119,561 and $651,072 for the quarter and nine months ended March 31, 1998,
as a result of increased sales and gross margins. In addition R&D Europe's
earnings before taxes increased $877,774 and $1,792,066 for the quarter and
nine months as a result of a decrease in sales and gross margin offset by
decreased selling, general and administrative and research and development
expenses.
Income taxes for the quarter and nine months ended March 31, 1998 were
provided at a rate of approximately 33% and 32% of consolidated pretax
earnings compared to 32% and 31% for the prior year. U.S. federal taxes
have been reduced by the credit for research and development expenditures
and the benefit of the foreign sales corporation. Foreign income taxes
have been provided at rates which approximate the tax rates in the United
Kingdom and Germany.
Liquidity and Capital Resources
At March 31, 1998, cash and cash equivalents and short-term investments
were $36,471,115 compared to $24,752,257 at June 30, 1997. The Company has
been accumulating cash and short-term investments for future expansion
purposes. The Company believes it can meet its future cash, working capital
and capital addition requirements through currently available funds, cash
generated from operations and maturities of short-term investments. The
Company has an unsecured line of credit of $750,000. The interest rate on
the line of credit is at prime. There were no borrowings on the line in the
prior or current fiscal years.
Cash Flows From Operating Activities
The Company generated cash of $13,581,620 from operating activities in the
first nine months of fiscal 1998 compared to $7,230,229 for the first nine
months of fiscal 1997. The increase was mainly the result of increased net
earnings and increased current liabilities.
Cash Flows From Investing Activities
During the nine months ended March 31, 1998 and 1997, the Company increased
short-term investments $8,177,634 and $2,379,586, respectively. The
Company's investment policy is to place excess cash in short-term tax-
exempt bonds. The objective of this policy is to obtain the highest
possible return with the lowest risk, while keeping the funds accessible.
Capital additions were $2,443,887 for the first nine months of fiscal 1998,
compared to $3,876,338 for the first nine months of fiscal 1997. Included
in the fiscal 1998 and 1997 additions were $1,180,110 and $2,825,226 for
leasehold improvements related to expansion and remodeling of facilities by
R&D Systems. The remaining additions in fiscal 1998 and 1997 were for
laboratory and computer equipment. Total expenditures for capital
additions planned for the remainder of fiscal 1998 are expected to cost
approximately $.6 million and are expected to be financed through currently
available funds and cash generated from operating activities.
Cash Flows From Financing Activities
Cash of $653,488 and $115,096 was received during the nine months ended
March 31, 1998 and 1997, respectively, for the exercise of options for
73,791 and 17,000 shares of common stock. During the first nine months of
fiscal 1998, options for 55,835 shares of common stock were exercised by
the surrender of 20,624 shares of the Company's common stock with a fair
market value of $360,194. During the first nine months of fiscal 1998, a
warrant for 61,775 shares of common stock was exercised in a cashless
transaction.
During the first nine months of fiscal 1998 and 1997, the Company purchased
and retired 20,000 and 234,600 shares, respectively, of Company common
stock at market values of $280,000 and $2,976,452. In May 1995, the
Company announced a plan to purchase and retire up to $5,000,000 of its
common stock. Through May 1, 1998, 437,000 shares have been purchased at a
market value of $4,812,164. Subject to market conditions and share price,
the Company has extended its stock repurchase program and plans to purchase
and retire up to an additional $5,000,000 of common stock.
During the first nine months of fiscal 1998, the Company granted stock
options with a fair value of $200,500 to a consultant for services to be
rendered to the Company, pursuant to the Company's 1988 Nonqualified Stock
Option Plan. During the first nine months of fiscal 1998, the Company
canceled all non-vested stock options granted to consultants. The total
fair value, at the dates of grant, of the options canceled was $469,000.
The Company has never paid cash dividends and has no plans to do so in
fiscal 1998.
ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
Not applicable.
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
No change.
ITEM 2 - CHANGES IN SECURITIES
On January 5, 1998, the Company issued 61,775 shares of Common Stock
to British Bio-technology plc in connection with the cashless exercise
of a warrant initially issued in July 1993 to purchase 100,000 shares
at an exercise price of $6.8805 per share. The issuance of such
securities was deemed to be exempt from registration under the
Securities Act of 1933 by virtue of Sections 3(a)(9) and 4(2) thereof.
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4 - SUBMISSION OF MATTERS TO VOTE OF SHAREHOLDERS
None.
ITEM 5 - OTHER INFORMATION
Forward Looking Information and Cautionary Statements: Statements in
this filing, and elsewhere, which look forward in time involve risks
and uncertainties which may affect the actual results of operations.
The following important factors, among others, have affected and, in
the future, could affect the Company's actual results: the
introduction and acceptance of new biotechnology and hematology
products, the levels and particular directions of research into
cytokines by the Company's customers, the impact of the growing number
of producers of cytokine research products and related price
competition, the retention of hematology OEM and proficiency survey
business, the Company's expansion of marketing efforts in Europe, and
the costs and results of research and product development efforts of
the Company and of companies in which the Company has invested or with
which it has formed strategic relationships.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
A. EXHIBITS
See exhibit index immediately following signature page.
B. REPORTS ON FORM 8-K
None
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.
TECHNE CORPORATION
(Company)
Date: May 14, 1998 Thomas E. Oland
----------------------------------
Thomas E. Oland
President, Chief Executive and
Financial Officer
EXHIBIT INDEX
TO
FORM 10-Q
TECHNE CORPORATION
<TABLE>
<CAPTION>
Exhibit # Description Restated
---------- ------------------ --------
<S> <C> <C>
27.1 Financial Data Schedule--
March 31, 1998 NO
27.2 Financial Data Schedule--
June 30, 1997, March 31, 1997,
December 31, 1996, September
30, 1996 YES
27.3 Financial Data Schedule--
June 30, 1996, March 31,
1996, June 30, 1995 YES
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> MAR-31-1998
<CASH> 12,139,591
<SECURITIES> 24,331,524
<RECEIVABLES> 10,283,674
<ALLOWANCES> 46,000
<INVENTORY> 3,886,927
<CURRENT-ASSETS> 52,563,803
<PP&E> 22,747,604
<DEPRECIATION> 10,941,121
<TOTAL-ASSETS> 66,921,701
<CURRENT-LIABILITIES> 6,647,177
<BONDS> 0
0
0
<COMMON> 190,262
<OTHER-SE> 58,607,362
<TOTAL-LIABILITY-AND-EQUITY> 66,921,701
<SALES> 48,708,472
<TOTAL-REVENUES> 48,708,472
<CGS> 14,922,728
<TOTAL-COSTS> 14,922,728
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 15,259,024
<INCOME-TAX> 4,846,000
<INCOME-CONTINUING> 10,413,024
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,413,024
<EPS-PRIMARY> .55
<EPS-DILUTED> .53
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C> <C> <C>
<PERIOD-TYPE> YEAR 9-MOS 6-MOS 3-MOS
<FISCAL-YEAR-END> JUN-30-1997 JUN-30-1997 JUN-30-1997 JUN-30-1997
<PERIOD-END> JUN-30-1997 MAR-31-1997 DEC-31-1996 SEP-30-1996
<CASH> 8,598,367 5,391,305 6,953,881 5,615,788
<SECURITIES> 16,153,890 14,207,037 12,862,451 12,307,451
<RECEIVABLES> 9,166,447 9,117,432 7,606,049 8,140,408
<ALLOWANCES> 52,000 51,000 52,000 51,000
<INVENTORY> 4,087,161 4,001,990 4,101,966 3,720,477
<CURRENT-ASSETS> 39,797,358 34,757,903 33,496,918 31,781,632
<PP&E> 21,248,630 20,986,390 20,643,995 19,167,935
<DEPRECIATION> 9,995,889 9,529,901 9,069,573 8,436,254
<TOTAL-ASSETS> 53,921,710 48,638,980 47,596,405 45,092,855
<CURRENT-LIABILITIES> 4,898,366 4,155,050 5,063,172 4,969,552
<BONDS> 0 0 0 0
0 0 0 0
0 0 0 0
<COMMON> 188,755 188,215 188,985 189,235
<OTHER-SE> 47,892,289 43,499,965 41,695,048 39,364,368
<TOTAL-LIABILITY-AND-EQUITY> 53,921,710 48,638,980 47,596,405 45,092,855
<SALES> 60,923,750 44,688,099 28,436,272 14,026,978
<TOTAL-REVENUES> 60,923,750 44,688,099 28,436,272 14,026,978
<CGS> 19,094,827 14,329,596 9,349,842 4,778,130
<TOTAL-COSTS> 19,094,827 14,329,596 9,349,842 4,778,130
<OTHER-EXPENSES> 0 0 0 0
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> 29,357 29,255 28,524 28,083
<INCOME-PRETAX> 15,987,662 10,803,662 6,457,760 3,120,269
<INCOME-TAX> 5,106,000 3,399,000 2,005,000 945,000
<INCOME-CONTINUING> 10,881,662 7,404,662 4,452,760 2,175,269
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 10,881,662 7,404,662 4,452,760 2,175,269
<EPS-PRIMARY> .58 .39 .23 .11
<EPS-DILUTED> .56 .38 .23 .11
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<S> <C> <C> <C>
<PERIOD-TYPE> YEAR 9-MOS YEAR
<FISCAL-YEAR-END> JUN-30-1996 JUN-30-1996 JUN-30-1995
<PERIOD-END> JUN-30-1996 MAR-31-1996 JUN-30-1995
<CASH> 7,422,084 5,732,203 5,317,493
<SECURITIES> 11,827,451 10,846,290 10,627,730
<RECEIVABLES> 8,492,531 8,612,399 7,528,783
<ALLOWANCES> 113,000 124,000 143,000
<INVENTORY> 3,653,117 3,329,907 3,265,840
<CURRENT-ASSETS> 33,289,007 30,004,817 27,805,919
<PP&E> 16,994,973 16,100,228 10,668,253
<DEPRECIATION> 7,949,706 7,421,536 6,339,824
<TOTAL-ASSETS> 44,393,293 40,336,005 34,062,275
<CURRENT-LIABILITIES> 5,029,022 4,420,841 4,118,980
<BONDS> 0 0 0
0 0 0
0 0 0
<COMMON> 190,391 189,040 187,507
<OTHER-SE> 38,683,680 32,242,974 29,332,588
<TOTAL-LIABILITY-AND-EQUITY> 44,393,293 35,432,014 34,062,275
<SALES> 54,589,054 40,022,138 47,716,166
<TOTAL-REVENUES> 54,589,054 40,022,138 47,716,166
<CGS> 18,998,931 14,315,169 18,463,547
<TOTAL-COSTS> 18,998,931 14,315,169 18,463,547
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<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 2,242 717 8,641
<INCOME-PRETAX> 12,591,870 8,677,831 9,648,042
<INCOME-TAX> 3,954,000 2,694,000 2,942,000
<INCOME-CONTINUING> 8,637,870 5,983,831 6,706,042
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<CHANGES> 0 0 0
<NET-INCOME> 8,637,870 5,983,831 6,706,042
<EPS-PRIMARY> .46 .32 .36
<EPS-DILUTED> .44 .31 .35
</TABLE>
