<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE
ACT OF 1934.
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
Commission file number: 0-21432
AUSPEX SYSTEMS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 93-0963760
(STATE OF INCORPORATION) (I.R.S. EMPLOYER
IDENTIFICATION NO.)
5200 GREAT AMERICA PARKWAY
SANTA CLARA, CA 95054
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER: (408) 986-2000
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
---
NUMBER OF SHARES OF COMMON STOCK, $.001 PAR VALUE, OUTSTANDING AS OF
MARCH 31, 1996: 23,968,093.
<PAGE> 2
- ---------------------------------------------------------------------------
FORM 10-Q
AUSPEX SYSTEMS, INC.
INDEX
<TABLE>
<CAPTION>
PAGE
PART I. FINANCIAL INFORMATION NUMBER
<S> <C>
ITEM 1. Financial Statements 1
Condensed Consolidated Balance Sheets 1
Condensed Consolidated Statements of Operations 2
Condensed Consolidated Statements of Cash Flows 3
Notes to Condensed Consolidated Financial Statements 4-5
ITEM 2. Management's Discussion and Analysis of Financial 6-9
Condition and Results of Operations
PART II. OTHER INFORMATION
ITEM 5. Other information 10
ITEM 6. Exhibits and Reports on Form 8-K 10
SIGNATURES 10
</TABLE>
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AUSPEX SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
MARCH 31, 1996 JUNE 30, 1995
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
(IN THOUSANDS) (UNAUDITED)
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 13,649 $ 17,568
SHORT-TERM INVESTMENTS 33,106 27,028
TRADE RECEIVABLES, NET 32,491 27,553
INVENTORIES 17,984 17,144
PREPAID EXPENSES AND OTHER 5,822 4,273
------------------------------
TOTAL CURRENT ASSETS 103,052 93,566
PROPERTY AND EQUIPMENT, NET 13,389 9,057
OTHER ASSETS 3,923 3,903
------------------------------
TOTAL ASSETS $120,364 $106,526
==============================
</TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
MARCH 31, 1996 JUNE 30, 1995
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
CURRENT LIABILITIES:
CURRENT PORTION OF CAPITAL LEASE OBLIGATIONS $ 232 $ 384
ACCOUNTS PAYABLE 5,416 7,413
ACCRUED LIABILITIES 9,930 7,369
INCOME TAX PAYABLE 1,767 5,209
DEFERRED REVENUE 6,074 5,293
------------------------------
TOTAL CURRENT LIABILITIES 23,419 25,668
CAPITAL LEASE OBLIGATIONS 21 159
STOCKHOLDERS' EQUITY 96,924 80,699
------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $120,364 $106,526
==============================
</TABLE>
Page 1
<PAGE> 4
AUSPEX SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
----------------------------- ---------------------------
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1996 1995 1996 1995
- -------------------------------------------------------------------------------------- ----------------------------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
REVENUES :
PRODUCT REVENUES $39,516 $27,009 $103,810 $72,050
SERVICE REVENUES 3,817 3,021 11,062 8,293
------------------------ -------------------------
TOTAL REVENUES 43,333 30,030 114,872 80,343
------------------------ -------------------------
COST OF REVENUES :
COST OF PRODUCT REVENUES 16,337 12,509 44,080 32,573
COST OF SERVICE REVENUES 2,794 1,817 7,130 4,785
------------------------ -------------------------
TOTAL COST OF REVENUES 19,131 14,326 51,210 37,358
------------------------ -------------------------
GROSS PROFIT 24,202 15,704 63,662 42,985
------------------------ -------------------------
OPERATING EXPENSES :
SELLING, GENERAL & ADMINISTRATIVE 11,922 8,408 31,800 23,532
RESEARCH AND DEVELOPMENT 4,610 3,767 12,827 10,697
------------------------ -------------------------
TOTAL OPERATING EXPENSES 16,532 12,175 44,627 34,229
------------------------ -------------------------
INCOME FROM OPERATIONS 7,670 3,529 19,035 8,756
OTHER INCOME, NET 376 795 1,283 1,523
------------------------ -------------------------
INCOME BEFORE PROVISION FOR INCOME TAXES 8,046 4,324 20,318 10,279
PROVISION FOR INCOME TAXES 2,655 951 6,705 2,261
------------------------ -------------------------
NET INCOME $ 5,391 $ 3,373 $ 13,613 $ 8,018
======================== =========================
NET INCOME PER SHARE $ 0.21 $ 0.14 $ 0.53 $ 0.33
======================== =========================
WEIGHTED AVERAGE COMMON SHARES AND EQUIVALENTS 25,868 24,674 25,584 24,250
======================== =========================
</TABLE>
Page 2
<PAGE> 5
AUSPEX SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
MARCH 31, MARCH 31,
NINE MONTHS ENDED 1996 1995
- ------------------------------------------------------------------------------------------
(IN THOUSANDS) (UNAUDITED) (UNAUDITED)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES: $ 10,695 $ 5,261
---------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
(INCREASE) DECREASE IN SHORT-TERM INVESTMENTS (6,078) 627
PURCHASE OF PROPERTY AND EQUIPMENT (10,838) (5,601)
INCREASE IN OTHER ASSETS (20) (387)
---------------------------
NET CASH USED FOR INVESTING ACTIVITIES (16,936) (5,361)
---------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
PRINCIPAL PAYMENTS ON CAPITAL LEASE OBLIGATIONS (291) (592)
PROCEEDS FROM SALE OF COMMON STOCK, NET 2,775 743
---------------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 2,484 151
---------------------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH (162) (4)
---------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,919) 47
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 17,568 17,965
---------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 13,649 $ 18,012
===========================
</TABLE>
Page 3
<PAGE> 6
AUSPEX SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying condensed consolidated financial statements reflect,
in the opinion of management, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position as of
the dates and results of operations for the periods indicated.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to the Securities and
Exchange Commission rules and regulations. Management of Auspex believes the
information included in the following report on Form 10-Q, when read in
conjunction with the financial statements and related notes included in the
Company's 1995 Annual Report to Shareholders, not to be misleading.
The results of operations for the three months ended March 31, 1996,
are not necessarily indicative of results for the entire fiscal year ending June
30, 1996. (See "Factors That May Affect Future Operating Performance" in
Management's Discussion and Analysis of Financial Condition and Results of
Operations.)
2. CASH AND CASH EQUIVALENTS
Substantially all cash equivalents consist of investments in
certificates of deposit, money market deposits, and municipal bonds with initial
maturities of three months or less. Substantially all short-term investments
consist of municipal bonds, corporate debt securities, mortgage-backed
securities, and debt securities issued by the U.S. Treasury which the Company
intends to hold for between three and twelve months.
3. REVENUE RECOGNITION
Product revenues include hardware sales and software license fees.
Revenues from system sales to end users are generally recognized when the
equipment has been shipped, installed and accepted by the end user. Revenues
from system sales to distributors, integrators and OEM's, as well as product
upgrades, are generally recognized when the equipment has been shipped. Revenues
earned under software license agreements with end users are generally recognized
when the software has been shipped and there are no significant obligations
remaining.
Service revenues include installation, maintenance, and training and
are recognized ratably over the contractual period or as the services are
provided.
4. NET INCOME PER SHARE
Net income per share is computed using the weighted average number of
shares of common stock, and dilutive common equivalent shares from stock options
using the treasury stock method. Fully diluted net income per share is
substantially the same as primary net income per share.
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5. INVENTORIES
Inventories are stated at the lower of cost (first-in, first-out)
or market, and include material, labor, and manufacturing overhead costs.
Finished goods inventories include systems shipped to customers and awaiting
acceptance. Inventories consist of the following in thousands:
<TABLE>
<CAPTION>
March 31, June 30,
1996 1995
---- ----
<S> <C> <C>
Purchased materials $ 3,899 $ 7,089
Systems in process 4,984 6,530
Finished goods 9,101 3,525
------- -------
Total inventories $17,984 $17,144
======= =======
</TABLE>
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AUSPEX SYSTEMS, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Net revenues for the third quarter of fiscal 1996 ended March 31, 1996
were $43.3 million, an increase of 44% over net revenues of $30.0 million for
the third quarter of fiscal 1995. For the first nine months of fiscal 1996,
revenues were $103.8 million, an increase of 43% over $80.3 million for the
first nine months of fiscal 1995.
Product revenues for the quarter were $39.5 million or 91% of total
revenues. Revenues from systems sales during the quarter ended March 31, 1996
accounted for 56% of product revenues as compared to 43% in the same period last
year, while revenues from upgrades and add-on options comprised 41% of product
revenues versus 57% for the same period a year ago. Software revenues earned
under license agreements were insignificant in the quarter ended March 31, 1996.
The increase in systems sales is primarily due to the introduction of a new
family of products late in the quarter ended December 31, 1995 and a related
increase in direct sales personnel hired in the same period. Service revenues
for the quarter ended March 31, 1996 were 9% of the total revenues, as compared
to 10% in the same period last year.
Gross margin was 56% of net revenues in the third quarter of fiscal
1996 as compared with 52% in the third quarter of fiscal 1995. For the nine
months ended March 31, 1996 and 1995, gross margin was 55% and 54%,
respectively. The increase in gross margin was primarily due to lower material
costs and improved manufacturing efficiencies. Software revenue, although not a
significant component of total revenue for the nine months ended March 31, 1996,
also contributed slightly to the improvement in gross margin.
Selling, general and administrative expenses during the third quarter
of fiscal 1996 totaled $11.9 million, an increase of 42% from $8.4 million in
the corresponding period of the prior fiscal year, and comprised 28% of net
revenues in both periods. For the nine months ended March 31, 1996, selling,
general and administrative expenses totaled $31.8 million, an increase of 35%
from $23.5 million in the corresponding nine month period of the prior fiscal
year, and comprised 28% and 29% of net revenues, respectively. The increase in
absolute dollars reflects the addition of new employees in the North American
direct sales operations and higher expenses relating to higher sales volume.
Although there has been a steady investment in the infrastructure of the
Company, total selling, general and administrative expenses, as a percentage of
revenue, remained at 28% for the quarter ended March 31, 1996 and represented a
decreased of 1% for the nine months ended March 31, 1996 compared to the same
period last year.
Research and development expenses incurred during the third quarter of
fiscal 1996 were $4.6 million, an increase of 22% from $3.8 million in the
corresponding period of the prior fiscal year, which comprised 11% and 13% of
net revenues, respectively. For the nine months ended March 31 1996, research
and development expenses totaled $12.8 million, an increase of 20% from $10.7
million in the corresponding nine month period of the prior fiscal year, and
comprised 11% and 13% of net revenues, respectively. The increase in absolute
dollars was attributable to the addition of new employees and other new product
development expenses. The decrease in these expenses as a percentage of revenues
was related to higher revenue levels.
Operating margin for the third quarter of fiscal 1996 was $7.7 million,
an increase of 117% over operating margin of $3.5 million in the third quarter
of fiscal 1995. These amounts comprised 18% and 12% of net revenues for the
quarter ended March 31, 1996 and 1995, respectively. The improved profitability
was due to accelerated revenue growth, controlled spending and improved gross
margin.
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<PAGE> 9
The Company's tax rate for the first nine months of fiscal 1996 was 33%
as compared to 22% for fiscal 1995. The lower tax rate in fiscal 1995 reflected
the utilization of tax loss carry forwards including research and development
tax credits which were exhausted by the end of fiscal 1995.
LIQUIDITY AND CAPITAL RESOURCES
For the nine months ended March 31, 1996, the Company's cash, cash
equivalents and short-term investments increased by $2.2 million to $46.7
million. The Company's working capital increased during the nine months ended
March 31, 1996 by $11.7 million.
Based on its current operating plans, the Company believes that its
existing cash and investment balances and cash flow from operations will be
sufficient to meet its working capital and capital expenditure requirements at
least through the next 12 months.
FACTORS THAT MAY AFFECT FUTURE OPERATING RESULTS
The second paragraph of the section entitled "Liquidity and Capital
Resources" contains a forward looking statement. The Company may also make oral
forward looking statements from time to time. Actual results may differ
materially from those projected in any such forward looking statements due to a
number of factors, including those set forth below.
POTENTIAL SIGNIFICANT FLUCTUATIONS IN QUARTERLY RESULTS
The Company's operating results may fluctuate significantly from
quarter to quarter due to a combination of factors. These factors include the
timing of orders, the timing of new product introductions by the Company or its
competitors, and the mix of distribution channels through which the Company's
products are sold. The Company generally realizes higher gross margins on sales
of systems to end users and on single system sales than on systems sold through
distributors and OEM's and on multiple system sales. In addition, given the
relatively large sales price of most of the Company's systems, the loss or delay
in a given quarter of a relatively limited number of systems sales could
adversely affect the Company's revenues. Because the Company recognizes revenue
from sales to end users upon customer acceptance, timing of the installation of
the Company's products may also increase potential fluctuations in the Company's
quarterly results of operations.
INTENSELY COMPETITIVE MARKET
The market for the Company's products is intensely competitive. The
Company experiences substantial competition, principally from Sun Microsystems,
Hewlett-Packard Company, IBM and Digital Equipment Corporation, among others.
In addition, newer, smaller companies such as Network Appliance Corporation
have introduced products at the low end of the Company's target markets. Most
of the Company's competitors are better known and have substantially greater
financial, technological, production and marketing resources than the Company.
Price competition in the markets for the Company's products is intense. Any
material reduction in the price of the Company's products without corresponding
decreases in manufacturing costs and increases in unit volume would negatively
affect gross margins which could in turn have a material adverse effect upon
the Company's business, financial condition and results of operations. For
example, Sun Microsystems recently announced a new line of competing products
and the Company believes that such new Sun Microsystems products will create
pricing pressures on certain of the Company's products in future quarters
which could have a material adverse effect on the Company's gross margin. The
Company also derives a significant portion of its revenues from sales of
product upgrades to its installed base, including disk and tape drives and
additional processors. Increased competition for the Company's products that
results in lower product sales could also adversely impact the Company's
upgrades sales. In addition, decisions by customers not to increase capacity to
their current systems could adversely impact the
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<PAGE> 10
Company's revenues and results of operations. The Company's ability to maintain
its competitive position will depend, among other factors, upon its success in
anticipating industry trends, investing in product research and development,
developing new products with improved price/performance characteristics and
effectively managing the introduction of new products into targeted markets.
DEPENDENCE ON KEY PERSONNEL
Competition for employees with highly technical, management and other
skills is intense in the industry in the computer industry and is particularly
intense in the San Francisco Bay Area. The Company's failure to retain the
services of key personnel or to attract additional qualified employees could
have a material adverse effect on the Company's business, financial condition
and results of operations.
SOFTWARE PRODUCT RISKS
With the release of its ServerGuard(TM) and DataGuard(TM) software
products, the Company has begun shipping software products in addition to its
line of network file servers. The Company also expects to release periodically
enhancements and new features for these products from time to time. Although the
Company performs extensive testing prior to releasing software products, such
products may contain undetected errors or bugs when first released. These may
not be discovered until the product has been used by customers in different
applications. Failure to discover product deficiencies or bugs could delay
product introductions, require design modifications to previously shipped
products or cause unfavorably publicity, negatively impact system shipments, any
of which could result in a material adverse effect on the Company's business,
financial condition and results of operations.
NEW PRODUCTS
New product introductions by the Company or its competitors carry the
risk that customers will delay or cancel orders for existing products pending
shipment of the new products. The Company's strategy is to continue to introduce
new products and upgrades to existing products on an ongoing basis. Any delays
in the launch or availability of new products could have a material adverse
effect on the Company business, financial condition and results of operations.
DEPENDENCE ON ESTABLISHED STANDARDS
The rapid emergences of new or alternate standards which replace or
diminish the market acceptance of UNIX operating systems or the Network File
System (NFS"), on which the Company's products are currently based, could
materially adversely affect the Company's results of operations unless the
Company is able to incorporate any such standards in the Company's products in a
timely manner.
DEPENDENCE ON CERTAIN CUSTOMERS/DISTRIBUTORS
For fiscal year 1995 and the first nine months of fiscal year 1996,
direct sales of products and services to Intel Corporation ("Intel") represented
approximately 15% and 11%, respectively, of the Company's revenues. In addition
to direct purchases from the Company, Intel or its affiliates have from time to
time made significant purchases of the Company's products through channels. For
fiscal year 1995 and the first nine months of fiscal year 1996, sales to Fuji
Xerox Company, Ltd. (Fuji Xerox),the Company's exclusive private label OEM in
Japan, represented approximately 9% and 15%, respectively, of the Company's
revenues. Also for fiscal year 1995 and the first nine months of fiscal year
1996, sales to Nissho Electronics ("Nissho"), the Company's distributor in
Japan, represented approximately 7% and 10%, respectively, of the Company's
revenues. Intel, Fuji Xerox and Nissho are not obligated to purchase any minimum
level of products from the Company. A significant reduction in product sales to
Intel, Fuji Xerox or Nissho would materially and adversely affect the Company's
business, financial condition and results of operations.
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RISKS OF INTERNATIONAL SALES; EUROPEAN MARKET RISKS
During fiscal year 1995 and the first nine months of fiscal year 1996,
approximately 26% and 35%, respectively, of the Company's total revenues were
derived from markets outside of North America, primarily in Japan. The Company
expects that sales to the Pacific Rim will continue to represent a significant
portion of its business. The Company also increased its sales and support and
marketing efforts in Europe. There can be no assurance that the Company's
European operations will be successful. The Company's international business may
be affected by changes in demand resulting from localized economic and market
conditions. In addition, the Company's international business may be affected by
fluctuations in currency exchange rates and currency restrictions as well as by
risks such as trade restrictions, increases in tariff and freight rates and
difficulties in obtaining necessary export licenses and meeting appropriate
local regulatory standards. For example, the Company has had to modify its
products in minor respects in Japan to comply with local electromagnetic
emissions standards, and must also comply with corresponding European Economic
Community standards, and must also comply with corresponding European Economic
Community standards. In marketing its products to the European Economic
Community, the Company also must face the challenges posed by a fragmented
market complicated by local distribution channels and local cultural
considerations. For international sales, the Company has largely relied on
distributors, most of whom are entitled to carry products of the Company's
competitors.
INTELLECTUAL PROPERTY AND PROPRIETARY RIGHTS; PENDING LITIGATION
The Company currently relies on a combination of patent, copyright,
trademark and trade secret laws and contractual provisions to protect its
proprietary rights in its hardware and software products. The Company currently
holds 6 U.S. patents and has filed applications for additional patents. The
Company has also filed applications for counterpart patents in foreign
countries, including Japan. There can be no assurance that the Company's present
or future competitors will not independently develop technologies that are
substantially equivalent or superior to the Company's technology. Further, there
can be no assurance that the Company's patent applications will result in issued
patents, or that the Company's issued patents will be upheld if challenged.
Additionally, there can be no assurance that third parties will not assert
intellectual property infringement claims against the Company in the future with
respect to current or future projects or that any such assertions may not
require the Company to refrain from the sale of its products, enter into royalty
arrangements or undertake costly litigation.
The Company's adherence to industry standards with respect to its
products limits the Company's opportunities to provide proprietary features
which may be protected. In addition, the laws of various countries in which the
Company's products may be sold may not protect the Company's products and
intellectual property rights to the same extent as the laws of the United
States.
Page 9
<PAGE> 12
PART II. OTHER INFORMATION
ITEM 5. OTHER INFORMATION
Effective July 1, 1996, Laurence B. Boucher will step down as Chairman
of the Board but will remain a member of the Board of Directors.
Effective April 30, 1996, Kent L. Robertson joined the Company as its
Vice President of Finance and Chief Financial Officer. He was formerly Executive
Vice President, Chief Financial Officer and Secretary of Genus, Inc.,
Effective April 10, 1996, Mike B. Stevens was appointed as Vice
President of North American Sales. Mike Stevens was previously the Western
Director of North American Sales for the Company.
Effective April 10, 1996, Terry A. Dyckman joined the Company as its
Vice President of Human Resources. He was formerly Sr. Director of Human
Resources at Apple Computer.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
a. Exhibits
Not applicable
b. Reports on Form 8-K
No report on Form 8-K was filed during the current period
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.
AUSPEX SYSTEMS, INC.
Date May 9, 1996
------------------- ------------------------------------------
Kent L. Robertson
Vice President of Finance and Chief
Financial Officer
(Principal Financial & Accounting Officer)
Page 10
<TABLE> <S> <C>
<ARTICLE> 5
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1
<CASH> 13,649
<SECURITIES> 33,106
<RECEIVABLES> 33,904
<ALLOWANCES> (1,413)
<INVENTORY> 17,984
<CURRENT-ASSETS> 103,052
<PP&E> 42,489
<DEPRECIATION> (29,600)
<TOTAL-ASSETS> 120,364
<CURRENT-LIABILITIES> 23,419
<BONDS> 21
0
0
<COMMON> 24
<OTHER-SE> 96,900
<TOTAL-LIABILITY-AND-EQUITY> 120,364
<SALES> 39,516
<TOTAL-REVENUES> 43,333
<CGS> 16,337
<TOTAL-COSTS> 19,131
<OTHER-EXPENSES> 16,033
<LOSS-PROVISION> 67
<INTEREST-EXPENSE> 56
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<INCOME-TAX> 2,655
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<DISCONTINUED> 0
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