<PAGE>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-Q
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(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
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 000-18908
IN FOCUS SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
OREGON 93-0932102
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
27700B SW PARKWAY AVENUE, WILSONVILLE, OREGON 97070
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 503-685-8888
--------------------------
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
--- ---
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
COMMON STOCK WITHOUT PAR VALUE 22,289,013
(Class) (Outstanding at April 22, 1999)
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<PAGE>
IN FOCUS SYSTEMS, INC.
FORM 10-Q
INDEX
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION PAGE
----
<S> <C>
Item 1. Financial Statements
Consolidated Balance Sheets - March 31, 1999 and
December 31, 1998 2
Consolidated Statements of Operations - Three Months Ended
March 31, 1999 and 1998 3
Consolidated Statements of Cash Flows - Three Months Ended
March 31, 1999 and 1998 4
Notes to Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 6
Item 3. Quantitative and Qualitative Disclosures About Market Risk 10
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 11
Signatures 12
</TABLE>
1
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
IN FOCUS SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
---------- -----------
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents $ 37,775 $ 26,786
Marketable securities - held to maturity 8,211 11,805
Accounts receivable, net of allowances of
$8,196 and $7,094 82,213 78,698
Inventories, net 37,123 31,279
Income taxes receivable 760 1,125
Deferred income taxes 2,531 2,531
Other current assets 4,140 3,593
-------- --------
Total Current Assets 172,753 155,817
Marketable securities - held to maturity 2,082 -
Property and equipment, net of accumulated
depreciation of $32,835 and $30,444 12,206 13,056
Deferred income taxes 1,352 1,352
Other assets, net 1,751 1,706
-------- --------
Total Assets $190,144 $171,931
-------- --------
-------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 40,766 $ 27,657
Payroll and related benefits payable 2,665 2,179
Accrued warranty 2,461 2,161
Other current liabilities 5,725 4,333
-------- --------
Total Current Liabilities 51,617 36,330
Shareholders' Equity:
Common stock, 50,000,000 shares authorized;
shares issued and outstanding: 22,279,403
and 22,218,729 53,947 53,895
Additional paid-in capital 12,389 12,359
Retained earnings 72,191 69,347
-------- --------
Total Shareholders' Equity 138,527 135,601
-------- --------
Total Liabilities and Shareholders' Equity $190,144 $171,931
-------- --------
-------- --------
</TABLE>
The accompanying notes are an integral part of these balance sheets.
2
<PAGE>
IN FOCUS SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share amounts)
<TABLE>
<CAPTION>
Three months ended March 31,
---------------------------
1999 1998
-------- --------
<S> <C> <C>
Revenue $ 86,450 $ 70,474
Cost of sales 65,558 56,368
-------- --------
Gross profit 20,892 14,106
Operating expenses:
Marketing and sales 10,328 11,202
Engineering 4,968 5,940
General and administrative 1,981 2,160
-------- --------
17,277 19,302
-------- --------
Income (loss) from operations 3,615 (5,196)
Other income (expense):
Interest income 429 311
Other, net (89) 41
-------- --------
340 352
-------- --------
Income (loss) before (provision for) benefit
from income taxes 3,955 (4,844)
(Provision for) benefit from income taxes (1,111) 1,448
-------- --------
Net income (loss) 2,844 (3,396)
-------- --------
-------- --------
Basic net income (loss) per share $ 0.13 $ (0.15)
-------- --------
-------- --------
Diluted net income (loss) per share $ 0.12 $ (0.15)
-------- --------
-------- --------
</TABLE>
The accompanying notes are an integral part of these statements.
3
<PAGE>
IN FOCUS SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
<TABLE>
<CAPTION>
Three months ended March 31,
---------------------------
1999 1998
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 2,844 $ (3,396)
Adjustments to reconcile net income (loss) to net cash
flows provided by (used in) operating activities:
Depreciation and amortization 2,423 2,672
Gain on sale of equipment (8) -
Other non-cash (income) expense (12) (18)
(Increase) decrease in:
Accounts receivable, net (3,515) 11,600
Inventories, net (5,844) (18,398)
Income taxes receivable 365 (2,393)
Other current assets (547) (375)
Increase (decrease) in:
Accounts payable 13,109 (1,344)
Payroll and related benefits payable 486 (1,450)
Accrued warranty and other current liabilities 1,692 276
-------- --------
Net cash provided by (used in) operating activities 10,993 (12,826)
Cash flows from investing activities:
Purchase of marketable securities-held to maturity (2,488) (7,806)
Maturity of marketable securities-held to maturity 4,000 1,500
Payments for purchase of property and equipment (1,492) (2,257)
Other assets, net (95) (1,019)
-------- --------
Net cash used in investing activities (75) (9,582)
Cash flows from financing activities:
Proceeds from sale of common stock 52 1,944
Income tax benefit of non-qualified stock option
exercises and disqualifying dispositions 19 1,042
-------- --------
Net cash provided by financing activities 71 2,986
Increase (decrease) in cash and cash equivalents 10,989 (19,422)
Cash and cash equivalents:
Beginning of period 26,786 37,950
-------- --------
End of period $ 37,775 $ 18,528
-------- --------
-------- --------
</TABLE>
The accompanying notes are an integral part of these statements.
4
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IN FOCUS SYSTEMS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
NOTE 1. BASIS OF PRESENTATION
The financial information included herein for the three-month periods ended
March 31, 1999 and 1998 is unaudited; however, such information reflects all
adjustments consisting only of normal recurring adjustments which are, in the
opinion of management, necessary for a fair presentation of the financial
position, results of operations and cash flows for the interim periods. The
financial information as of December 31, 1998 is derived from In Focus Systems,
Inc.'s 1998 Annual Report on Form 10-K. The interim consolidated financial
statements should be read in conjunction with the consolidated financial
statements and the notes thereto included in In Focus' 1998 Annual Report on
Form 10-K.
The results of operations for the interim periods presented are not necessarily
indicative of the results to be expected for the full year.
NOTE 2. INVENTORIES
Inventories are valued at the lower of cost (using average costs, which
approximates the first in, first-out (FIFO) method), or market, and include
materials, labor and manufacturing overhead.
<TABLE>
<CAPTION>
MARCH 31, 1999 DECEMBER 31, 1998
-------------- -----------------
<S> <C> <C>
Raw materials and components $ 8,488 $6,118
Work-in-process 2,243 1,649
Finished goods 26,392 23,512
-------- --------
$ 37,123 $ 31,279
-------- --------
-------- --------
</TABLE>
NOTE 3. SUPPLEMENTAL CASH FLOW INFORMATION
Supplemental disclosure of cash flow information is as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
----------------------------
1999 1998
------ ------
<S> <C> <C>
Cash paid during the period for income taxes $ 683 $ 154
</TABLE>
NOTE 4. EARNINGS PER SHARE
Following is a reconciliation of basic earnings per share ("EPS") and diluted
EPS:
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31, 1999 1998
- ------------------------------ ------------------------------------------ --------------------------------------------
Per Per
Share Share
Income Shares Amount Loss Shares Amount
------------------------------------------ --------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BASIC EPS
Income (loss) available to
Common Shareholders $ 2,844 22,277 $ 0.13 $(3,396) 22,041 $ (0.15)
-------- --------
-------- --------
DILUTED EPS
Effect of dilutive stock
options -- 760 -- --
------------------------ -------------------------
Income (loss) available
to Common Shareholders $ 2,844 23,037 $ 0.12 $(3,396) 22,041 $ (0.15)
-------- --------
-------- --------
</TABLE>
Potentially dilutive securities that are not included in the diluted EPS
calculations because they would be antidilutive include 1,057 and 1,115 shares,
respectively, issuable pursuant to stock options, for the three month periods
ended March 31, 1999 and 1998, respectively.
5
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
FORWARD LOOKING STATEMENTS
Statements in this Form 10-Q which In Focus considers to be forward-looking are
denoted with an *, and the following cautionary language applies to all such
statements, as well as any other statements in this Form 10-Q which the reader
may consider to be forward-looking in nature. Investors are cautioned that all
forward-looking statements involve risks and uncertainties and several factors
could cause actual results to differ materially from those in the
forward-looking statements. In Focus, from time to time, may make
forward-looking statements relating to the following:
- anticipated gross margins;
- availability of products manufactured on behalf of the Company;
- backlog;
- new product introductions; and
- future capital expenditures.
The following factors, among others, could cause actual results to differ from
those indicated in the forward-looking statements:
- in regard to gross margins, uncertainties associated with market
acceptance of and demand for In Focus' products, impact of competitive
products and their pricing and dependence on third party suppliers;
- in regard to product availability and backlog, uncertainties associated
with manufacturing capabilities and dependence on third party
suppliers;
- in regard to new product introductions, uncertainties associated with
the development of technology and the establishment of full
manufacturing capabilities, dependence on third party suppliers and
intellectual property rights; and
- in regard to future capital expenditures, uncertainties associated with
new product introductions.
RESULTS OF OPERATIONS
Revenue increased to $86.5 million in the first quarter of 1999 compared to
$70.5 million in the first quarter of 1998. The increase in revenue is primarily
attributable to record unit sales, with a 41 percent increase in units sold
compared to the first quarter of 1998. Unit sales also increased 5 percent
compared to the fourth quarter of 1998. Demand was particularly strong for In
Focus' new line of personal projectors, which were introduced during the first
quarter of 1999. Prices declined at an expected, typical industry rate of 5 to
10 percent during the first quarter of 1999. In Focus end-of-lifed the LP225,
LP425 and the LP725 during the first quarter of 1999.
Three new seven pound personal projectors, all utilizing Texas Instruments'
Digital Light Processing technology, began shipping in the first quarter of
1999:
1. the LP400, with 700 lumens and a suggested list price of $3,429;
2. the LP425Z, a full-featured 900 lumen SVGA projector with a suggested
list price of $5,999; and
3. the LP435Z, a full-featured 1,000 lumen XGA projector with a suggested
list price of $6,999.
6
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The personal platform continued to be the top selling platform in the industry.
Two new conference room projectors began shipping in the first quarter of 1999:
1. the LP750, an 800 lumen XGA projector that is the quietest projector in
the industry; and
2. the LP1200, a 1200 lumen XGA projector that is suitable for both
conference room and fixed installation use because of its advanced
feature set which includes dual source display.
In Focus also began shipping the LS700, its first entry into the home theatre
market with exceptional video quality at a competitive price, and the LP740B, a
1,500 lumen SXGA projector that addresses the needs of those requiring very high
resolution and brightness for medical and engineering applications, in the first
quarter of 1999.
Also in the first quarter of 1999, In Focus signed an OEM agreement with Kodak
for personal digital projectors which should begin shipping in the second
quarter of 1999*.
During the first quarter of 1999, International sales represented 45 percent of
total revenue, including 9 percent from Asia Pacific countries, compared to 57
percent and 13 percent, respectively, in the first quarter of 1998. The
international percentage in the first quarter of 1998 was unusually high due to
lower than normal domestic sales in that quarter.
Because there are multiple competitive products for In Focus' resellers to
choose from, In Focus does not operate with a large backlog. Instead, In Focus'
customers generally order products for immediate delivery and the Company must
respond to competitive prices and ship the product quickly or risk losing the
order. However, as a result of orders from customers on credit hold and orders
for newly introduced products, at March 31, 1999, In Focus had backlog of
approximately $15.8 million, compared to approximately $24.0 million at March
31, 1998 and $15.2 million at December 31, 1998. Given current supply and demand
estimates, it is anticipated that a majority of the current backlog will turn
over by the end of the second quarter of 1999*. There is minimal seasonal
influence relating to In Focus' order backlog. The stated backlog is not
necessarily indicative of sales for any future period nor is a backlog any
assurance that In Focus will realize a profit from filling the orders.
In Focus achieved gross margins of 24.2 percent in the first quarter of 1999
compared to 20.0 percent in the first quarter of 1998 and 22.4 percent in the
fourth quarter of 1998. This was the fourth consecutive quarter of margin
improvement for In Focus. The increases in the gross margin percentage are
primarily a result of the volume shipment of new products that have higher gross
margins than mature products, cost savings associated with the in-house
manufacturing of the image engines for the personal projectors and overall price
decreases at the anticipated rate of 5 to 10 percent. Price decreases in the
first quarter of 1998 were significantly higher and occurred more rapidly than
anticipated.
Marketing and sales expense decreased to $10.3 million (11.9 percent of revenue)
in the first quarter of 1999 compared to $11.2 million (15.6 percent of revenue)
in the first quarter of 1998. The decrease is primarily a result of decreased
headcount relative to the first quarter of 1998.
7
<PAGE>
Engineering expense decreased to $5.0 million (5.7 percent of revenue) in the
first quarter of 1999 from $5.9 million (8.4 percent of revenue) in the first
quarter of 1998. The decrease is primarily a result of decreased headcount
relative to the first quarter of 1998.
General and administrative expense decreased to $2.0 million (2.3 percent of
revenue) in the first quarter of 1999 from $2.2 million (3.1 percent of revenue)
in the first quarter of 1998. The decrease is primarily a result of decreased
headcount relative to the first quarter of 1998.
Income from operations increased to $3.6 million (4.2 percent of revenue) in the
first quarter of 1999 compared to a loss from operations of $5.2 million in the
first quarter of 1998, as a result of increased sales and gross margins and
decreased operating expenses as indicated above.
Income taxes are based on an estimated rate of 28.1 percent compared to a
benefit of 29.9 percent in the first quarter of 1998 and a benefit of 72.6
percent for the year ended December 31, 1998. The decrease from the first
quarter of 1998 and from the year ended December 31, 1998, is primarily a result
of larger benefits related to the Company's foreign sales corporation and
research and development activities in relation to the amount of income or loss.
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 1999 working capital was $121.1 million, including $37.8 million of
cash and cash equivalents and $8.2 million of marketable securities. In the
first quarter of 1999, working capital increased by $1.6 million and the current
ratio decreased to 3.3:1 at March 31, 1999 compared to 4.3:1 at December 31,
1998.
Cash and cash equivalents increased $11.0 million primarily due to cash provided
by operations of $11.0 million and the net maturity of $1.5 million of
marketable securities, offset by $1.5 million used for the purchase of property
and equipment.
Accounts receivable increased $3.5 million to $82.2 million at March 31, 1999
compared to $78.7 million at December 31, 1998 primarily as a result of a
greater volume of products shipping in the last two months of the quarter due to
new product introductions and a more back-end loaded component supply than the
fourth quarter of 1998. As a result, day's sales outstanding increased to 86
days at March 31, 1999 compared to 80 days at December 31, 1998. At March 31,
1999, 72 percent of In Focus' accounts receivable were current, 14 percent were
30 days or less past due and 14 percent were beyond 30 days past due. Of the
beyond 30 days past due, one customer, which is currently in bankruptcy
proceedings, represents $1.2 million, or 9.4 percent of the beyond 30 days past
due amount. In Focus believes it is adequately reserved for this and other
potential bad debts*.
Inventories increased $5.8 million to $37.1 million at March 31, 1999 from $31.3
million at December 31, 1998 primarily due to an increase in raw materials
inventory to support the ramp-up of new product shipments and an increase in
finished goods inventory to meet customer requirements early in the second
quarter of 1999. As a result of the above, annualized inventory turns were
approximately 7.7 times for the quarter ended March 31,
8
<PAGE>
1999 compared to approximately 8.5 times for the fourth quarter of 1998 on an
annualized basis.
Accounts payable increased $13.1 million to $40.8 million at March 31, 1999
compared to $27.7 million at December 31, 1998 primarily as a result of
significant component purchases late in the quarter.
The $1.5 million of purchases of property, plant and equipment were primarily
for new product tooling, engineering design and test equipment and information
systems infrastructure. Total expenditures for property and equipment in 1999
are expected to total approximately $8.2 million, primarily for new product
tooling, engineering equipment and information systems infrastructure*.
YEAR 2000
PRODUCTS
In Focus has determined that all past and current products ("Products"),
including LitePro and LP projectors, PanelBook, PowerView, SmartView and PC
Viewer projection panels, and LiteShow II and LiteShow Pro presentation players,
are Year 2000-compliant. However, with respect to the LiteShow Pro presentation
player, In Focus does not make any representation as to Microsoft Windows
software installed thereon. In the fourth quarter of 1998, In Focus made
additional modifications to its systems based upon new recommendations provided
by its technology vendors.
INFORMATION SYSTEMS
In Focus utilizes a packaged application strategy for all critical information
systems functions. By the third quarter of 1998 all enterprise information
system components were current with all Year 2000 updates and changes required
by the manufacturers. This includes enterprise software, operating systems,
networking components, application and data servers, PC hardware, and core
office automation software.
Various component tests have been conducted to verify full Year 2000 operational
compliance. This process uncovered additional year 2000 issues that have been
resolved jointly with In Focus' technology vendors. Additionally, In Focus'
vendors are revising their updates and recommendations as other companies report
issues to them. We expect this process to be ongoing as more companies conduct
their testing and provide feedback to the technology vendors.
In addition to the information system component testing, In Focus has conducted
a system wide test, to include all components from the desktop to the data
center, to ensure that all of the compliant components can function properly as
a whole. This full integration test was completed in March 1999. The focus of
these tests was to ensure that In Focus' business processes run end-to-end with
no Year 2000 errors or issues. Errors were found and corrected during this
testing process. At the conclusion of testing in March, there were no
outstanding year 2000 issues in the software. In Focus will continue to perform
testing and communicate regularly with its technology vendors to keep abreast of
any year 2000 developments.
9
<PAGE>
In Focus' packaged application strategy has allowed it to keep its technology on
maintenance contracts with its suppliers. Year 2000 upgrades to these
technologies are covered under the maintenance contracts and represent no
additional spending. Application upgrade and technology retirement intervals are
not accelerated as a result of the Year 2000 issue. The packaged application
strategy, maintenance contracts, upgrade and technology retirement intervals
have been in place for the past four years. At this time, we foresee no material
incremental spending for the Year 2000 issue*.
Like all U.S. businesses, In Focus will be at risk from external infrastructure
failures that could arise from Year 2000 failures. It is not clear that
electrical power, telephone and computer networks, for example, will be fully
functional across the nation in the Year 2000. Investigation and assessment of
infrastructures, like the nations power grid, is beyond the scope and resources
of In Focus. Investors should use their own awareness of the issues in the
nations' infrastructure to make ongoing infrastructure risk assessments and
their potential impact to a company's performance.
SUPPLIER BASE
In Focus has begun a year 2000 supplier audit program. It has contacted all of
its critical suppliers to inform them of its year 2000 expectations, and a
request has been made for each vendor's compliance program. The supplier audit
program is in its early stages and does not have a return rate useful for
projecting the overall impact on In Focus from its supplier base at this time.
It should be noted that there have been predictions of failures of key
components in the transportation infrastructure due to the year 2000 problem. It
is possible that there could be delays in rail, over-the-road and air shipments
due to failure in transportation control systems. Investigation and validation
of the world's transportation infrastructure is beyond the scope and the
resources of In Focus. Investors should use their own awareness of the issues in
the transportation infrastructure to make ongoing infrastructure risk
assessments and their potential impact to a company's performance.
In Focus is developing a contingency plan in regard to its internal systems,
supplier issues and other more global infrastructure issues that will be
completed upon receiving confirmations from its critical suppliers and
customers.
NEW ACCOUNTING PRONOUNCEMENT
In June 1998, the FASB issued Statement of Financial Accounting Standards No.
133, "Accounting for Derivative Instruments and Hedging Activities ("SFAS 133").
SFAS 133 establishes accounting and reporting standards for all derivative
instruments. SFAS 133 is effective for fiscal years beginning after June 15,
1999. The Company does not have any derivative instruments and, accordingly, the
adoption of SFAS 133 will have no impact on the Company's financial position or
results of operations.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
None.
10
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PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
The exhibits filed as a part of this report are listed below and this list is
intended to constitute the exhibit index.
Exhibit No.
-----------
27 Financial Data Schedule
(b) Reports on Form 8-K
There were no reports on Form 8-K filed during the quarter ended March 31, 1999.
11
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: April 28, 1999 IN FOCUS SYSTEMS, INC.
By: /s/ JOHN V. HARKER
---------------------------------------
John V. Harker
Chairman of the Board, President,
Chief Executive Officer, Chief Financial
Officer and Secretary
(Duly authorized Principal Executive
Officer and Principal Financial and
Accounting Officer)
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 37,775
<SECURITIES> 10,293
<RECEIVABLES> 90,409
<ALLOWANCES> 8,196
<INVENTORY> 37,123
<CURRENT-ASSETS> 172,753
<PP&E> 45,041
<DEPRECIATION> 32,835
<TOTAL-ASSETS> 190,144
<CURRENT-LIABILITIES> 51,617
<BONDS> 0
0
0
<COMMON> 53,947
<OTHER-SE> 84,580
<TOTAL-LIABILITY-AND-EQUITY> 190,144
<SALES> 86,450
<TOTAL-REVENUES> 86,450
<CGS> 65,558
<TOTAL-COSTS> 65,558
<OTHER-EXPENSES> 17,277
<LOSS-PROVISION> 805
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 3,955
<INCOME-TAX> 1,111
<INCOME-CONTINUING> 2,844
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,844
<EPS-PRIMARY> 0.13
<EPS-DILUTED> 0.12
</TABLE>
