<PAGE> 1
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.
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 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 OCTOBER 31,
1996: 24,519,908.
<PAGE> 2
- --------------------------------------------------------------------------------
FORM 10-Q
AUSPEX SYSTEMS, INC.
INDEX
PAGE
PART I. FINANCIAL INFORMATION NUMBER
ITEM 1.
Condensed Consolidated Balance Sheets 1
Condensed Consolidated Statements of Operations 2
Condensed Consolidated Statements of Cash Flows 3
Notes to Unaudited 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 10
ITEM 6. Exhibits and Reports on Form 8-K 10
SIGNATURES 10
EXHIBIT INDEX 11
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AUSPEX SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
SEPTEMBER 30, 1996 JUNE 30, 1996
- -----------------------------------------------------------------------------------------------
(IN THOUSANDS) (UNAUDITED)
<S> <C> <C>
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 26,293 $ 22,169
SHORT-TERM INVESTMENTS 28,074 28,349
TRADE RECEIVABLES, NET 37,157 37,848
INVENTORIES, NET 17,164 16,130
PREPAID EXPENSES AND OTHER 11,438 12,447
-------------------------------
TOTAL CURRENT ASSETS 120,126 116,943
PROPERTY AND EQUIPMENT, NET 15,178 15,577
OTHER ASSETS 3,136 3,324
-------------------------------
TOTAL ASSETS $138,440 $135,844
===============================
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
SEPTEMBER 30, 1996 JUNE 30, 1996
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
CURRENT LIABILITIES:
CURRENT PORTION OF CAPITAL LEASE OBLIGATIONS $ 57 $ 106
ACCOUNTS PAYABLE 5,541 6,165
ACCRUED LIABILITIES 10,086 12,712
INCOME TAX PAYABLE 96 440
DEFERRED REVENUE 7,765 6,578
-------------------------------
TOTAL CURRENT LIABILITIES 23,545 26,001
CAPITAL LEASE OBLIGATIONS 40 30
STOCKHOLDERS' EQUITY 114,855 109,813
-------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $138,440 $135,844
===============================
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Page 1
<PAGE> 4
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AUSPEX SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
SEPTEMBER 30, SEPTEMBER 30,
THREE MONTHS ENDED 1996 1995
- -----------------------------------------------------------------------------------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED) (UNAUDITED)
<S> <C> <C>
REVENUES:
PRODUCT REVENUE $38,469 $30,135
SERVICE REVENUE 4,543 3,401
--------------------------
TOTAL REVENUES 43,012 33,536
--------------------------
COST OF REVENUES:
COST OF PRODUCT REVENUE 16,019 13,227
COST OF SERVICE REVENUE 3,081 2,015
--------------------------
TOTAL COST OF REVENUES 19,100 15,242
--------------------------
GROSS PROFIT 23,912 18,294
--------------------------
OPERATING EXPENSES:
SELLING, GENERAL AND ADMINISTRATIVE 12,622 9,647
RESEARCH AND DEVELOPMENT 5,166 3,898
--------------------------
TOTAL OPERATING EXPENSES 17,788 13,545
--------------------------
INCOME FROM OPERATIONS 6,124 4,749
OTHER INCOME, NET 496 527
--------------------------
INCOME BEFORE PROVISION FOR INCOME TAXES 6,620 5,276
PROVISION FOR INCOME TAXES 2,350 1,741
--------------------------
NET INCOME $ 4,270 $ 3,535
==========================
NET INCOME PER SHARE $ 0.17 $ 0.14
==========================
WEIGHTED AVERAGE COMMON SHARES AND EQUIVALENTS 25,582 25,425
==========================
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Page 2
<PAGE> 5
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AUSPEX SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30, 1996 SEPTEMBER 30, 1995
- ----------------------------------------------------------------------------------------------------------------------------
(IN THOUSANDS) (UNAUDITED) (UNAUDITED)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES: $ 5,446 $ 1,280
----------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
PURCHASES OF HELD-TO-MATURITY SHORT-TERM INVESTMENTS -- (9,043)
PURCHASES OF AVAILABLE-FOR-SALE SHORT-TERM INVESTMENTS (12,068) (1,007)
PROCEEDS FROM MATURITIES OF HELD-TO-MATURITY SHORT-TERM INVESTMENTS -- 856
PROCEEDS FROM SALES OF HELD-TO-MATURITY SHORT-TERM INVESTMENTS -- 2,777
PROCEEDS FROM MATURITIES OF AVAILABLE-FOR-SALE SHORT-TERM INVESTMENTS 12,328 --
PURCHASES OF PROPERTY AND EQUIPMENT (2,416) (3,235)
(INCREASE) DECREASE IN OTHER ASSETS 85 (231)
----------------------------------
NET CASH USED IN INVESTING ACTIVITIES (2,071) (9,883)
----------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
PRINCIPAL PAYMENTS ON CAPITAL LEASE OBLIGATIONS (39) (149)
PROCEEDS FROM SALE OF COMMON STOCK, NET 783 344
----------------------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 744 195
----------------------------------
EFFECT OF EXCHANGE RATE CHANGES ON CASH 5 (49)
----------------------------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 4,124 (8,457)
----------------------------------
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 22,169 17,568
----------------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 26,293 $ 9,111
==================================
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Page 3
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AUSPEX SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
The accompanying interim consolidated financial statements and related
notes should be read in conjunction with the financial statements and related
notes included in the Company's 1996 Annual Report to Shareholders.
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. Additionally, the preparation of
financial statements in conformity with generally accepted accounting
principals requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reported
period. While management makes its best effort to achieve its estimates and
assumptions, actual results may differ materially.
The results of operations for the three months ended September 30, 1996
are not necessarily indicative of the results for the entire fiscal year ending
June 30, 1997. (See "Factors That May Affect Future Operating Performance" in
Management's Discussion and Analysis of Financial Condition and Results of
Operations.)
2. CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
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 which the Company intends to hold between three and
twelve months.
3. REVENUE RECOGNITION
Product revenue includes 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 OEMs, 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 revenue includes installation, maintenance and training, and is
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:
<TABLE>
<CAPTION>
(In thousands) September 30, June 30,
1996 1996
---- ----
<S> <C> <C>
Purchased materials $ 4,043 $ 4,366
Systems in process 6,831 7,082
Finished goods 6,290 4,682
------- -------
Total inventories $17,164 $16,130
======= =======
</TABLE>
Page 5
<PAGE> 8
AUSPEX SYSTEMS, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Total revenues for the first quarter of fiscal 1997 ended September
30, 1996 were $43.0 million, an increase of 28% over total revenues of $33.5
million in the first quarter of fiscal 1996.
Product revenues for the first quarter of fiscal 1997 were $38.5 million
or 89% of total revenues. Revenues from systems sales accounted for 48% of
product revenues during the first quarter of fiscal 1997 and the corresponding
period of the prior fiscal year, while revenues from upgrades and add-on
options comprised 52% of product revenues during the first quarter of fiscal
1997 and the corresponding period of the prior fiscal year. Service revenues
for the first quarter of fiscal 1997 were $4.5 million or 11% of total
revenues, as compared to 10% of total revenues during the first quarter of
fiscal 1996. Geographically, North America accounted for 62% and 64% of total
revenues in the first quarters of fiscal 1997 and 1996, respectively, the
Pacific Rim accounted for 24% and 27% in the first quarters of fiscal 1997 and
1996, respectively, and Europe accounted for 14% and 9% in the first quarters
of fiscal 1997 and 1996, respectively.
Gross margin was 56% of net revenues in the first quarter of fiscal
1997 as compared with 55% in the first quarter of fiscal 1996. Product gross
margin increased to 58% in the first quarter of fiscal 1997 from 56% in the
first quarter of fiscal 1996. The improvement in margin in the quarter was
attributable to increased production volumes, overall improved manufacturing and
service-related efficiencies. An additional factor was software revenue, which,
although not a significant component of total revenue for the first three months
of fiscal 1997, did have a favorable effect on gross margin.
Selling, general and administrative expenses during the first quarter
of fiscal 1997 totaled $12.6 million, an increase of 31% from $9.6 million in
the corresponding period of the prior fiscal year, and remained flat at 29% of
total revenues during the first quarter of fiscal 1997 and the corresponding
period of the prior fiscal year. This increase in absolute dollars related to
increased staffing in direct sales operations of the subsidiaries and
facilities costs to support the Company's growth.
Research and development expenses incurred during the first quarter
of fiscal 1997 were $5.2 million, an increase of 33% from $3.9 million in the
corresponding period of the prior fiscal year, and were 12% of total revenues
for the quarters ended September 30, 1997 and 1996. The increase in absolute
dollars was attributable primarily to increased hiring of employees and new
product development.
Income from operations for the first quarter of fiscal 1997 was $6.1
million, an increase of 29% from $4.7 million in the first quarter of fiscal
1996. Income from operations was 14% of total revenues for the quarters ended
September 30, 1997 and 1996.
The Company's tax rate for the first quarter of fiscal 1997 was 35.5%
as compared with 33% in the first quarter of fiscal 1996. The higher tax rate in
fiscal 1997 is a result of increased earnings.
LIQUIDITY AND CAPITAL RESOURCES
For the three months ended September 30, 1996, the Company's cash,
cash equivalents and short-term investments increased by $3.8 million to $54.4
million. The Company's working capital increased during the first three months
ended September 30, 1996 by $5.6 million to $96.6 million.
Page 6
<PAGE> 9
Based on its current operating plans, the Company believes that its
existing cash, cash equivalent and short-term investment 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 PERFORMANCE
The last paragraph under 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. The Company undertakes no
obligation to update such information.
POTENTIAL SIGNIFICANT FLUCTUATIONS IN QUARTERLY RESULTS
The Company's operating results may fluctuate significantly from
quarter to quarter due to a variety 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 in a particular quarter. 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 OEMs and on multiple system sales. In
addition, given the relatively high 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. Historically, the
Company has often recognized a substantial portion of its revenues in the last
month of the quarter, with these revenues frequently concentrated in the last
few days of a quarter. Because the Company's operating expenses are based on
anticipated revenue levels and a high percentage of the Company's expenses are
relatively fixed, a small variation in the timing of the recognition of specific
revenues could cause significant variations in operating results from quarter to
quarter.
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 Inc. 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. While the
Company believes that the price/performance characteristics of its products are
competitive, 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 or increases in unit volume would
negatively affect gross margins, which could in turn have a materially adverse
effect on the Company's business, financial condition and results of operations.
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 the capacity
of their current systems could adversely impact the Company's revenues and
results of operations. The Company's ability to maintain its competitive
position will depend upon, among other factors, its success in anticipating
industry trends, its investments in product research and development, its
development of new products with improved price/performance characteristics and
its effective management of the introduction of new products into targeted
markets.
Page 7
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DEPENDENCE ON KEY PERSONNEL
Competition for employees with highly technical, managerial and other
skills is intense 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 materially
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 now ships software products in addition to its line of
network file servers. The Company also expects to release enhancements and new
features for these products. 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 application environments.
Failure to discover product deficiencies or bugs could delay product
introductions, require design modifications to previously shipped products,
cause unfavorable publicity or negatively impact system shipments, any of which
could result in a materially adverse affect 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 materially adverse
effect on the Company's business, financial condition and results of operations.
DEPENDENCE ON ESTABLISHED STANDARDS
The rapid emergence of new or alternate standards such as NT which
replace or diminish the market acceptance of UNIX operating systems or the
Network File System, 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 the first three months of fiscal year 1997 and 1996, direct sales
of products and services to Intel Corporation ("Intel") represented
approximately 7% and 10%, 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
the first three months of fiscal year 1997 and 1996, sales to Fuji Xerox
Company, Ltd. ("Fuji Xerox"), the Company's exclusive private label OEM in
Japan, represented approximately 13% and 15%, respectively, of the Company's
revenues. Also for the first three months of fiscal year 1997 and 1996, sales to
Nissho Electronics ("Nissho"), the Company's distributor in Japan, represented
approximately 10% and 11%, respectively, of the Company's revenues. Fuji Xerox
and Nissho are not obligated to purchase any minimum quantities of products from
the Company. A significant reduction in product sales to Fuji Xerox or Nissho
would materially and adversely affect the Company's business, financial
condition and results of operations.
Page 8
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RISKS OF INTERNATIONAL SALES; EUROPEAN MARKET RISKS
During the first three months of fiscal year 1997 and 1996,
approximately 38% and 36%, 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 has also increased its sales, 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. In marketing its products to the European Economic
Community, the Company also must face the challenges created 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
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 six 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
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PART II. OTHER INFORMATION
ITEM 5. OTHER INFORMATION
Effective September 20, 1996, Raymond M. Villeneuve resigned as Vice
President of Marketing.
Effective October 4, 1996, the employment of Clive D. Foreman as Vice
President of Engineering terminated.
Effective October 21, 1996, Paul R. Gifford joined the Company as
its Vice President of Engineering. He was formerly Vice President of Engineering
of Tencor Instruments.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
a. Exhibits
27 Financial Data Schedule.
b. Report 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 /s/ Kent L. Robertson
-----------------------------------------------------
Kent L. Robertson
Vice President of Finance and Chief Financial Officer
(Principal Financial Officer)
Page 10
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AUSPEX SYSTEMS, INC.
EXHIBITS TO QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1996
<TABLE>
<CAPTION>
Sequentially
Exhibit # Description Numbered Page
- ---------- ----------- -------------
<S> <C> <C>
27 Financial Data Schedule 12
</TABLE>
Page 11
<TABLE> <S> <C>
<ARTICLE> 5
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1996
<PERIOD-END> SEP-30-1996
<EXCHANGE-RATE> 1
<CASH> 26,293
<SECURITIES> 28,074
<RECEIVABLES> 38,424
<ALLOWANCES> 1,267
<INVENTORY> 17,164
<CURRENT-ASSETS> 120,126
<PP&E> 49,168
<DEPRECIATION> 33,990
<TOTAL-ASSETS> 138,440
<CURRENT-LIABILITIES> 23,545
<BONDS> 40
0
0
<COMMON> 25
<OTHER-SE> 114,830
<TOTAL-LIABILITY-AND-EQUITY> 138,440
<SALES> 38,469
<TOTAL-REVENUES> 43,012
<CGS> 16,019
<TOTAL-COSTS> 19,100
<OTHER-EXPENSES> 17,778
<LOSS-PROVISION> 10
<INTEREST-EXPENSE> 5
<INCOME-PRETAX> 6,620
<INCOME-TAX> 2,350
<INCOME-CONTINUING> 4,270
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,270
<EPS-PRIMARY> .17
<EPS-DILUTED> 0
</TABLE>
