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 June 30, 1999
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 000-19182
Nord Pacific Limited
(Exact name of registrant as specified in its charter)
New Brunswick, Canada Not Applicable
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
40 Wellington Row, Suite 2100, Scotia Plaza
Saint John, New Brunswick, Canada E2L 4S3
(Address of principal executive officers) (Zip Code)
Registrant's telephone number, including area code (506) 633-3800
Indicated 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 twelve 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
The number of shares of Common Stock outstanding as of August 16, 1999
was 12,925,203.
<PAGE>
NORD PACIFIC LIMITED
INDEX
Page
Number
PART I. FINANCIAL INFORMATION:
ITEM 1. Condensed Consolidated Financial Statements:
Balance Sheets - June 30, 1999
and December 31, 1998 (Unaudited) 3-4
Statements of Operations - Three
Months ended June 30, 1999
And 1998 (Unaudited) 5
Statements of Operations - Six
Months ended June 30, 1999
and 1998 (Unaudited) 6
Statements of Cash Flows - Six
Months ended June 30, 1999 and
1998 (Unaudited) 7
Notes to Condensed Consolidated Financial
Statements (Unaudited) 8-10
ITEM 2. Management's Discussion and Analysis
of Financial Condition and Results of
Operations 11-12
ITEM 3. Quantitative and Qualitative Disclosures About
Market Risk 13
PART II. OTHER INFORMATION:
ITEM 1-3. Not Applicable
ITEM 4. Submission of Matters to a Vote of Securities
Holders 14
ITEM 5. Not Applicable
ITEM 6. Exhibits and Reports on Form 8-K 14
2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. Condensed Consolidated Financial Statements
<TABLE>
NORD PACIFIC LIMITED
BALANCE SHEETS
ASSETS
(Unaudited)
(In Thousands of U.S. Dollars)
<CAPTION>
June 30, December 31,
1999 1998
-------- ----------
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 1,079 $ 1,416
Accounts receivable:
Trade 858 1,384
Other including joint venture partner 120 402
Inventories:
Copper 97 191
Supplies 156 166
Prepaid expenses 61 87
-------- --------
TOTAL CURRENT ASSETS 2,371 3,646
DEFERRED COSTS ASSOCIATED WITH ORE UNDER
LEACH, net of accumulated amortization
of $19,018 in 1999 and $16,192 in 1998 9,620 9,413
PROPERTY, PLANT AND EQUIPMENT - at cost,
less accumulated depreciation of $7,597 in 1999
and $6,904 in 1998 2,922 3,605
DEFERRED EXPLORATION AND DEVELOPMENT COSTS
Girilambone, net of accumulated amortization of $3,669
in 1999 and $2,917 in 1998 2,808 3,527
Exploration and development prospects 19,864 19,141
OTHER ASSETS 42 71
-------- --------
$37,627 $39,403
======== ========
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
3
</TABLE>
<PAGE>
<TABLE>
NORD PACIFIC LIMITED
BALANCE SHEETS (Continued)
LIABILITIES AND
SHAREHOLDERS' EQUITY
(Unaudited)
(In Thousands of U.S. Dollars)
<CAPTION>
June 30, December 31,
1999 1998
--------- ------------
<S> <C> <C>
CURRENT LIABILITIES:
Accounts payable:
Trade $ 1,793 $ 1,715
Affiliates 450 594
Accrued expenses 274 484
Advances from copper cathode sales 395 -
Current maturities of long-term debt 3,400 600
Payable on foreign currency contracts 1,019 1,556
--------- ---------
TOTAL CURRENT LIABILITIES 7,331 4,949
LONG-TERM LIABILITIES:
Long-term debt -- 2,400
Payable on foreign currency contracts 222 1,144
Deferred income tax liability 5,300 5,300
Retirement benefits 301 271
--------- ---------
TOTAL LONG-TERM LIABILITIES 5,823 9,115
SHAREHOLDERS' EQUITY:
Common shares 47,375 47,375
Accumulated deficit (23,700) (22,834)
Foreign currency translation adjustment 798 798
--------- ---------
TOTAL SHAREHOLDERS' EQUITY 24,473 25,339
--------- ---------
$ 37,627 $ 39,403
========= =========
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
4
</TABLE>
<PAGE>
<TABLE>
NORD PACIFIC LIMITED
STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands of U.S. Dollars, except per share amounts)
<CAPTION>
Three Months Ended
June 30,
1999 1998
---------- ---------
<S> <C> <C>
SALES $ 2,704 $ 3,392
COSTS AND EXPENSES:
Cost of sales 3,236 2,576
Abandoned projects -- 95
General and administrative 642 755
---------- ---------
TOTAL COSTS AND EXPENSES 3,878 3,426
---------- ---------
OPERATING LOSS (1,174) (34)
OTHER INCOME (EXPENSE):
Interest and other income 22 53
Interest and debt issuance costs (58) (59)
Foreign currency forward exchange contract gains (losses) 746 (985)
Foreign currency transaction gain (losses) (88) 70
---------- ---------
TOTAL OTHER INCOME (EXPENSE) 622 (921)
---------- ---------
NET LOSS $ (552) $ (955)
========== =========
BASIC LOSS PER SHARE $ (.04) $ (.07)
========== =========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 12,925 12,925
========== =========
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
5
</TABLE>
<PAGE>
<TABLE>
NORD PACIFIC LIMITED
STATEMENTS OF OPERATIONS
(Unaudited)
(In Thousands of U.S. Dollars, except per share amounts)
<CAPTION>
Six Months Ended
June 30,
1999 1998
---------- ---------
<S> <C> <C>
SALES $ 5,623 $ 6,644
COSTS AND EXPENSES:
Cost of sales 6,098 5,104
Abandoned projects - 95
General and administrative 1,203 1,439
---------- ---------
TOTAL COSTS AND EXPENSES 7,301 6,638
---------- ---------
OPERATING LOSS (1,678) 6
OTHER INCOME (EXPENSE):
Interest and other income 51 135
Interest and debt issuance costs (125) (120)
Foreign currency forward exchange contract gains (losses) 1,168 (830)
Foreign currency transaction losses (282) (259)
---------- ---------
TOTAL OTHER INCOME (EXPENSE) 812 (1,074)
---------- ---------
NET LOSS $ (866) $ (1,068)
=========== =========
BASIC LOSS PER SHARE $ (.07) $ (.08)
=========== =========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 12,925 12,627
=========== =========
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
6
</TABLE>
<PAGE>
<TABLE>
NORD PACIFIC LIMITED
STATEMENTS OF CASH FLOWS
(Unaudited)
(In Thousands of U.S. Dollars)
<CAPTION>
Six Months Ended
June 30,
1999 1998
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings $ (866) $ (1,068)
Depreciation and amortization 4,300 3,593
Abandoned and impaired properties -- 62
Compensation relating to stock options -- 62
Unrealized foreign currency forward exchange
contracts (gain) losses (1,459) 675
Provision for retirement benefits 30 17
Changes in non-cash working capital 662 (703)
----------- -----------
Net cash provided by operating activities 2,667 2,638
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Deferred exploration and development costs (756) (4,348)
Deferred costs associated with ore under leach (3,032) (2,047)
Capital expenditures net of disposals (11) (26)
----------- -----------
Net cash used in investing activities (3,799) (6,421)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Addition to long-term debt 400 --
Advances from copper cathode sales 395
Payments of long-term debt -- (1,383)
Issuance of common shares for cash -- 2,700
Costs associated with issuance of common shares -- (4)
----------- -----------
Net cash provided by financing activities 795 1,313
----------- -----------
DECREASE IN CASH AND CASH EQUIVALENTS (337) (2,470)
CASH AND CASH EQUIVALENTS - beginning of period 1,416 3,351
----------- -----------
CASH AND CASH EQUIVALENTS - end of period $ 1,079 $ 881
=========== ===========
CASH PAID FOR INTEREST $ 125 $ 120
=========== ===========
SEE NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
7
</TABLE>
<PAGE>
NORD PACIFIC LIMITED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
QUARTERS ENDED JUNE 30, 1999 AND 1998
A. FINANCIAL STATEMENTS OF NORD PACIFIC LIMITED (the "Company")
In the opinion of management, these unaudited interim financial
statements reflect all adjustments of a normal and recurring nature
which are necessary to present fairly the financial position and
results of operations for the interim periods presented. The results
shown for the second quarter of 1999 are not necessarily indicative of
the results that may be expected for the entire year.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been omitted. It is suggested that these
financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's Annual Report
on Form 10-K for the year ended December 31, 1998.
In June 1998, the Company's shareholders approved the discontinuance
of the Company from Bermuda and approved its continuance into the
Province of New Brunswick, Canada, effective September 30, 1998. As a
Canadian Company, the Company is required to report its financial
statements in accordance with generally accepted accounting principles
in Canada. These principles differ in certain respects from those in
the United States as described in Note D.
Certain reclassifications have been made in the 1998 financial
statements to conform to the classification used in 1999. These
reclassifications had no effect on results of operations or
shareholders' equity as previously reported.
B. GIRILAMBONE
The Company is a 40% joint venturer in the Girilambone Copper Property
and a 50% joint venturer in the Girilambone North Copper Property
(collectively "Girilambone") in Australia. All costs incurred during
mine development have been capitalized and are being amortized using
the units of production method over the estimated reserves. Following
is summarized combined balance sheet information for Girilambone:
June 30, December 31,
1999 1998
-------- ------------
(In Thousands of
U.S. Dollars)
Current assets $ 3,579 $ 3,132
Deferred costs associated with ore under leach, net 19,520 19,290
Property, plant and equipment, net 5,846 7,356
Deferred exploration and development costs, net 19,027 19,685
------- ---------
Total assets 47,973 49,463
Current liabilities (3,225) (4,071)
------- ---------
Partners' equity $44,748 $45,392
======= ========
8
<PAGE>
June 30, December 31,
1999 1998
---------- ------------
(In Thousands of U.S. Dollars)
Company's share of equity $16,200 $16,916
Less: Eliminations (1,371) (1,454)
-------- --------
Net assets recorded by Company $14,829 $15,462
Debt incurred related to Girilambone is the separate
responsibility of each venturer and is not included in the
joint ventures' financial statements. Copper production is
distributed to each venturer based on its respective
ownership interest. Sale of copper is the responsibility of
each venturer. Cost and expense information related to the
operations of the mine is as follows:
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
1999 1998 1999 1998
------- ---------- --------- -------
(In Thousands of (In Thousands of
U. S. Dollars) U.S. Dollars)
Cost of copper sales $ 6,744 $6,192 $12,950 $12,303
General and administrative
expense $ 99 $ 88 $ 202 $ 186
C. NORD RESOURCES CORPORATION
Nord Resources Corporation ("Resources") owns approximately 28.5% of
the outstanding common stock of the Company. In January 1998, under
the term of a cost sharing agreement, the Company began sharing office
space, administrative personnel and expenses with Resources on a 50/50
basis
D. DIFFERENCE BETWEEN CANADIAN AND U.S. GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES
The consolidated financial statements have been prepared in accordance
with accounting principles generally accepted in Canada ("Canadian
GAAP"), which differ in certain respects from those principles and
practices that the Company would have followed had its consolidated
financial statements been prepared in accordance with accounting
principles generally accepted in the United States ("U.S. GAAP").
Canadian accounting principles provide for the deferral of exploration
expenditures until such time as the property is put into production or
the property is abandoned or disposed of through sale, or when it is
no longer considered to be commercially viable. For U.S. GAAP
purposes, the Company has elected to expense all exploration costs
until such time as the Company establishes, generally by completing a
detailed feasability study, that a commercially mineable deposit
exists.
Statement of Financial Accounting Standards No. 130, Reporting
Comprehensive Income, requires that a company classify items of other
comprehensive income by their nature in a financial statement and
display the accumulated balance of other comprehensive income
separately from retained earnings and additional paid-in capital in
9
<PAGE>
the equity section of the balance sheet. Under U.S. GAAP, the
accumulated other comprehensive income at both June 30., 1999 and
December 31, 1998, is $798,000, representing cumulative foreign
currency translation adjustments. Since there was no change in this
amount in 1999 or 1998 comprehensive income under U.S. GAAP is equal
to the net loss under U.S. GAAP for those periods presented below.
Other differences between Canadian GAAP and U.S. GAAP as they relate
to these financial statements are not significant.
The application of U.S. GAAP would have had the following effect on
the Company's balance sheets:
June 30, December 31,
1999 1998
(In thousands) (In thousands)
Canadian U.S. Canadian U.S.
GAAP GAAP GAAP GAAP
Deferred exploration and
Development costs $ 19,864 $ 12,472 $ 19,141 $ 12,167
======== ======== ======== ========
Deferred tax liability $ 5,300 $ 3,498 $ 5,300 $ 3,498
======== ======== ======== ========
Shareholders' equity $ 24,473 $ 20,167 $ 25,339 $ 20,167
======== ======== ======== ========
The application of U.S. GAAP would have had the following effect on
the Company's statements of operations:
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
(In thousands) (In thousands)
Net loss - Canadian GAAP $552 $ 955 $ 866 $1,068
Accounting for exploration 188 308 418 872
Costs
----- ------ ------ ------
Net loss - U.S. GAAP $740 $1,263 $1,284 $1,940
==== ====== ====== ======
10
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Safe Harbor Statement under the Private Securities Litigation Act of
1995. The statements contained in this report which are not
historical fact are "forward looking statements" that involve various
important risks, uncertainties and other factors which could cause the
Company's actual results for 1999 and beyond to differ materially from
those expressed in such forward looking statements. These factors
include, without limitation, the risks and factors set forth below as
well as other risks previously disclosed in the Company's annual
report on Form 10-K.
Liquidity and Capital Resources
Cash provided by operations totaled $2,667,000 for the six months
ended June 30, 1999, compared to $2,638,000 for the same period in
1998. Cash used in investing activities included capital expenditures
for property and equipment and exploration and development costs.
Cash expenditures of $3,799,000 for the six months ended June 30, 1999
relate primarily to costs incurred at Girilambone. Cash expenditures
of $6,421,000 for the six months ended June 30, 1998 relate to
Girilambone and to the Company's Ramu Project.
Cash provided by financing activities of $795,000 for the six months
ended June 30, 1999 consists of borrowings under long-term bank
financing agreements of $400,000 and an advance on copper cathode
sales of $395,000. Reductions in other long-term liabilities primarily
relate to reductions in amounts payable under foreign currency
contracts.
Results of Operations
The Company recorded a net loss of $552,000 and $866,000 for the three
and six months ended June 30, 1999, respectively, compared to a net
loss of $955,000 and $1,068,000 for the same period in 1998. The
Company recorded an operating loss of $1,174,000 and $1,678,000 for
the three and six months ended June 30, 1999, respectively, compared
to operating loss of $34,000 and operating earnings of $6,000 for the
same period in 1998 due primarily to lower copper prices.
The Company's share of copper sold in the three and six months ended
June 30, 1999 totaled 3,657,000 and 7,670,000 pounds, respectively
compared to 3,901,000 and 7,752,000 pounds sold in the same period in
1998. Due primarily to the drop in copper prices, copper revenue,
including settlement of copper hedging contracts, decreased $1,021,000
for the six months ended June 30, 1999. During the six months ended
June 30, 1999, the Company received a net price of $0.66 per pound of
copper sold compared to $0.80 received for the same period in 1998.
The copper hedging programs established by the Company resulted in an
increase in sales of $597,000 for the six months ended June 30,1999
compared to $456,000 for the same period in 1998. Including the
impact of these hedging programs, the Company realized a net average
sales price per pound of $0.73 in the six months ended June 30, 1999
compared to $0.86 per pound for the same period in 1998.
Cost of sales per pound of copper increased to $0.80 per pound for the
six months ended June 30, 1999 compared to $0.66 per pound for the
same period in 1998 due primarily to increased depreciation, depletion
and amortization ("DD&A") of deferred leach costs. Cost of sales as a
percentage of sales increased to110% during the six months ended June
30, 1999 compared to 77% for the same period in 1998 primarily as a
result of lower sales revenues due to the drop in the price of copper
and to increased DD&A.
11
<PAGE>
General and administrative costs decreased $113,000 and $236,000 for
the three and the six months ended June 30, 1999, respectively,
compared to the same period in 1998 due primarily to reductions in
public relations costs, professional fees, office expenses and
increases in Australian administrative overhead reimbursement from its
Australian joint venture partners.
Interest income decreased for the three and the six months periods
ended June 30, 1999 compared to same period 1998 due to less funds
available for investment. Fluctuations in gains and losses in the
foreign currency exchange contracts and in foreign currency
transactions are primarily a result of changes in the relative
strength of the Australian dollar compared to the U.S. dollar. The
Company recorded a gain of $1,168,000 on forward currency exchange
contracts for the six months ended June 30, 1999 compared to a
$830,000 loss for the same period in 1998 and a loss on foreign
currency transactions of $282,000 for the six months ended June 30,
1999 compared to a $259,000 loss for the same period in 1998.
Other
On May 3, 1999 the Company received notification from the National
Association of Securities Dealers that the Company's common shares had
been delisted from the National Association of Securities Dealers
Automated Quotation System. The shares were delisted effective as of
the close of business on May 3, 1999 for failure to maintain a closing
bid price of at least $1.00 in accordance with Marketplace Rule
4450(a)(5) under Maintenance Standard 1. The Company's shares
continue to be traded on the Toronto Stock Exchange and are traded on
the OTC Bulletin Board.
12
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is exposed to market risk, including the effects of
adverse changes in commodity prices, foreign currency exchange rates
and interest rates as discussed below.
Commodity Price Risk
The Company sells copper produced from its Girilambone mine in
Australia. As a result, the Company's financial results are affected
when the price of copper fluctuates. In order to protect the selling
price of a portion of the production from the mine, the Company has
entered into swap agreements covering approximately 75% of the
Company's share of production from the mine for 1999 and approximately
25% of the Company's share of production from the mine for 2000.
Under the terms of the swap agreements, the Company receives the
difference between a fixed price of copper and the current market
price of copper at the date of settlement if the current market price
is lower. If the current market price is higher, the Company pays the
difference. As of June 30, 1999 the Company had entered into swap
agreements covering a total of 7,716,000 pounds of copper at a fixed
price of $0.75 per pound for 1999 and a total of 3,968,000 pounds of
copper at a fixed price of $0.80 per pound for 2000. Swaps covering
992,000 pounds are scheduled to settle each month during 1999 and
331,000 pounds are scheduled to settle each month during 2000. Since
the swap agreements are designated as hedges of anticipated copper
sales, any gains or losses realized upon settlement of the swaps are
included in sales when the hedged production is sold.
Foreign Currency Risk
Substantial portions of the operating costs of the Girilambone mine
are incurred in Australian dollars. Since the functional currency of
the Company's Australian operations is the US dollar, the Company is
exposed to changes in the exchange rate between the US dollar and the
Australian dollar. The Company has entered into foreign currency
forward exchange contracts, which are designed to protect against the
effect of exchange rate fluctuations on a portion of the operating
costs of Girilambone. Outstanding contracts at June 30, 1999 have a
total notional amount of US$12,196,000 at an average exchange rate of
A$1.00 to US $.742. Notional amounts of US$750,000 are scheduled to
settle monthly. Since these contracts relate to the foreign currency
exchange risk of anticipated transactions, under current accounting
standards, realized and unrealized gains or losses on these contracts
are included currently in the results of operation. As of June 30,
1999, cumulative unrealized losses of $1,241,000 have been recognized
in the income statement and recorded as a liability.
Interest Rate Risk
The Company has long term-debt outstanding of $3,400,000 at June 30,
1999. Under the terms of the debt agreement, the maximum available
can be increased to $3,600,000 after January 1, 1999. The loan bears
interest at the Singapore Interbank Offered Rate (SIBOR) plus 1 1/2%.
Principal payments are payable quarterly beginning in September, 1999
at the greater of 50% of available cash flow, as defined, for the
quarter ending on the relevant payment date or the amount required to
reduce the amount outstanding to $3,400,000 at September 30, 1999,
$2,400,000 at December 31, 1999, $1,100,000 at March 31, 2000 and to
zero on June 30, 2000. Since the interest rate on the loan
outstanding is variable and is reset periodically, the Company is
exposed interest rate risk.
13
<PAGE>
PART II. OTHER INFORMATION
ITEM 1-3. NOT APPLICABLE
ITEM 4. SUBMISSION OF MATERS TO A VOTE OF SECURITY HOLDERS
The Annual General Meeting of the stockholders was
held on July 8, 1999. The following matters were acted
upon and passed at the meeting:
1. Election of eight Directors
2. Ratify the appointment of independent auditors and
authorize the Board to set their compensation
VOTE TABULATION
Votes For Votes Against Votes Abstained
1. Directors
Edgar F. Cruft 10,881,878 72,906 --
W. Pierce Carson 10,881,878 72,906 --
Michel J. Drew 10,881,878 72,906 --
Ray W. Jenner 10,881,878 72,906 --
Terence H. Lang 10,881,878 72,906 --
Leonard Lichter 10,881,878 72,906 --
Lucile Lansing 10,881,878 72,906 --
John B. Roberts 10,881,878 72,906 --
2. Ratify Auditors 10,898,307 12,954 43,523
ITEM 5. NOT APPLICABLE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) No Reports on Form 8-K were filed during the six
months ended June 30, 1999.
(b) EXHIBIT 27. FINANCIAL DATA SCHEDULE - filed
herewith as part of this Report on Form 10-Q.
14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Security Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
NORD PACIFIC LIMITED
August 16, 1999
By:/s/ Ray W. Jenner
Ray W. Jenner
Vice President Finance
and Authorized Officer
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
Nord Pacific Corporation Form 10-Q for the six months ended June 30, 1999.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 1,079
<SECURITIES> 0
<RECEIVABLES> 978
<ALLOWANCES> 0
<INVENTORY> 253
<CURRENT-ASSETS> 2,371
<PP&E> 10,519
<DEPRECIATION> 7,597
<TOTAL-ASSETS> 37,627
<CURRENT-LIABILITIES> 7,331
<BONDS> 0
0
0
<COMMON> 47,375
<OTHER-SE> (22,902)
<TOTAL-LIABILITY-AND-EQUITY> 37,627
<SALES> 5,623
<TOTAL-REVENUES> 5,623
<CGS> 7,301
<TOTAL-COSTS> 2,347
<OTHER-EXPENSES> (937)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 125
<INCOME-PRETAX> (866)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (866)
<EPS-BASIC> (0.07)
<EPS-DILUTED> (0.07)
</TABLE>
