<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 March 31, 1997
Commission file number: 0-21432
AUSPEX SYSTEMS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
<TABLE>
<S> <C>
DELAWARE 93-0963760
(STATE OF INCORPORATION) (I.R.S. EMPLOYER
IDENTIFICATION NO.)
</TABLE>
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
APRIL 30, 1997: 24,838,585.
<PAGE> 2
- --------------------------------------------------------------------------------
FORM 10-Q
AUSPEX SYSTEMS, INC.
INDEX
<TABLE>
<CAPTION>
PAGE
PART I. FINANCIAL INFORMATION NUMBER
<S> <C>
ITEM 1.
Condensed Consolidated Balance Sheets 1
Condensed Consolidated Statements of Operations 2
Condensed Consolidated Statements of Cash Flows 3
Notes to Unaudited Condensed Consolidated Financial Statements 4-5
ITEM 2. Management's Discussion and Analysis of Financial 6-10
Condition and Results of Operations
PART II. OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 11
EXHIBIT INDEX 12
</TABLE>
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
AUSPEX SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
MARCH 31, 1997 JUNE 30, 1996
-------------- -------------
(IN THOUSANDS) (UNAUDITED)
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 32,737 $ 22,169
Short-term investments 40,031 28,349
Trade receivables, net 36,288 37,848
Inventories, net 22,756 16,130
Prepaid expenses and other 11,312 12,447
-------- --------
Total current assets 143,124 116,943
Property and Equipment, net 17,585 15,577
Other Assets 2,837 3,324
-------- --------
Total assets $163,546 $135,844
======== ========
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
MARCH 31, 1997 JUNE 30, 1996
-------------- -------------
<S> <C> <C>
CURRENT LIABILITIES:
Capital lease obligations $ 108 $ 136
Accounts payable 9,119 6,165
Accrued liabilities 11,039 12,712
Income taxes payable 4,562 440
Deferred revenue 10,508 6,578
-------- --------
Total current liabilities 35,336 26,031
Stockholders' Equity 128,210 109,813
-------- --------
Total liabilities and stockholders' equity $163,546 $135,844
======== ========
</TABLE>
See notes to condensed consolidated financial statements
Page 1
<PAGE> 4
AUSPEX SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
----------------------- ---------------------------
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
1997 1996 1997 1996
---- ---- ---- ----
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
REVENUES:
Product revenue $50,463 $39,516 $133,417 $103,810
Service revenue 5,139 3,817 14,279 11,062
------- ------- -------- --------
Total revenues 55,602 43,333 147,696 114,872
------- ------- -------- --------
Cost of Revenues:
Cost of product revenue 21,513 16,337 56,621 44,080
Cost of service revenue 3,631 2,794 10,060 7,130
------- ------- -------- --------
Total cost of revenues 25,144 19,131 66,681 51,210
------- ------- -------- --------
Gross profit 30,458 24,202 81,015 63,662
------- ------- -------- --------
Operating Expenses:
Selling, general and administrative 14,412 11,922 40,505 31,800
Research and development 6,388 4,610 17,911 12,827
------- ------- -------- --------
Total operating expenses 20,800 16,532 58,416 44,627
------- ------- -------- --------
Income from operations 9,658 7,670 22,599 19,035
Other Income, net 399 376 1,681 1,283
------- ------- -------- --------
Income before provision for income taxes 10,057 8,046 24,280 20,318
Provision for Income Taxes 3,570 2,655 8,619 6,705
------- ------- -------- --------
Net Income $ 6,487 $ 5,391 $ 15,661 $ 13,613
======= ======= ======== ========
Net Income per Share $ 0.25 $ 0.21 $ 0.61 $ 0.53
======= ======= ======== ========
Weighted Average Common Shares and Equivalents 25,867 25,868 25,713 25,584
======= ======= ======== ========
</TABLE>
See notes to condensed consolidated financial statements
Page 2
<PAGE> 5
AUSPEX SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
MARCH 31, MARCH 31,
NINE MONTHS ENDED 1997 1996
--------- ---------
(IN THOUSANDS) (UNAUDITED) (UNAUDITED)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 15,661 $ 13,613
-------- --------
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 9,066 6,506
Changes in assets and liabilities:
(Increase) decrease in trade receivables 1,560 (4,938)
Increase in inventories (6,626) (840)
(Increase) decrease in prepaid expenses and other 1,135 (1,549)
Increase (decrease) in accounts payable 2,954 (1,997)
Increase (decrease) in accrued liabilities (1,673) 2,561
Increase (decrease) in income taxes payable 4,122 (3,442)
Increase in deferred revenue 3,930 781
-------- --------
Net cash provided by operating activities 30,129 10,695
-------- --------
Cash Flows from Investing Activities:
Purchases of held-to-maturity short-term investments -- (18,278)
Purchases of available-for-sale short-term investments (36,287) (1,007)
Proceeds from maturities of held-to-maturity short-term investments -- 10,430
Proceeds from sales of held-to-maturity short-term investments -- 2,777
Proceeds from sales/maturities of available-for-sale short-term investments 24,574 --
Purchases of property and equipment (10,666) (10,838)
(Increase) decrease in other assets 178 (20)
-------- --------
Net cash used in investing activities (22,201) (16,936)
-------- --------
Cash Flows from Financing Activities:
Principal payments on capital lease obligations (127) (291)
Proceeds from sale of common stock, net 2,925 2,775
-------- --------
Net cash provided by financing activities 2,798 2,484
-------- --------
Effect of Exchange Rate Changes on Cash (158) (162)
-------- --------
Net Increase (Decrease) in Cash and Cash Equivalents 10,568 (3,919)
Cash and Cash Equivalents, Beginning of Period 22,169 17,568
-------- --------
Cash and Cash Equivalents, End of Period $ 32,737 $ 13,649
======== ========
</TABLE>
See notes to condensed consolidated financial statements
Page 3
<PAGE> 6
AUSPEX SYSTEMS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED 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, actual results could
differ from the estimates.
The results of operations for the nine months ended March 31, 1997
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.
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<PAGE> 7
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.
In February 1997, the Financial Accounting Standards Board issued
Statement on Financial Accounting Standards No. 128 (SFAS 128), "Earnings per
Share," which is required to be adopted by the Company in its second quarter of
fiscal 1998. At that time, the Company will be required to change the method
currently used to compute earnings per share and to restate all prior periods.
Under the new requirements for calculating earnings per share, primary earnings
per share will be replaced with basic earnings per share and fully diluted
earnings will be replaced with diluted earnings per share. Under basic earnings
per share, the dilutive effect of stock options will be excluded. Under SFAS
128, basic earnings per share for the third quarter ended March 31, 1997 and
1996 would have been $0.26 and $0.23 per share, respectively, and for the nine
months ended March 31, 1997 and 1996 would have been $0.64 and $0.58 per share,
respectively. Diluted earnings per share is substantially the same as the
reported primary earnings per share.
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) March 31, June 30,
1997 1996
-------- -------
<S> <C> <C>
Purchased materials $ 7,995 $ 4,366
Systems in process 10,373 7,082
Finished goods 4,388 4,682
------- -------
Total inventories $22,756 $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 third quarter of fiscal 1997 ended March 31,
1997 were $55.6 million, an increase of 28% over total revenues of $43.3 million
for the third quarter of fiscal 1996. Total revenues for the nine months of
fiscal 1997 were $147.7 million, an increase of 29% over $114.9 million for the
nine months of fiscal 1996.
Product revenues for the third quarter of fiscal 1997 were
$50.5 million or 91% of total revenues. Revenues from systems sales accounted
for 49% of product revenues during the third quarter of fiscal 1997 and 56% for
the third quarter of fiscal 1996, while revenues from upgrades, add-on options
and software license agreements comprised 51% of product revenues during the
third quarter of fiscal 1997 and 44% for the third quarter of fiscal 1996.
Service revenues for the third quarter of fiscal 1997 were $5.1 million or 9% of
total revenues, the same percentage as in the third quarter of fiscal 1996.
Geographically, North America accounted for 76% and 63% of total revenues in the
third quarters of fiscal 1997 and 1996, respectively, the Pacific Rim accounted
for 14% and 27% in the third quarters of fiscal 1997 and 1996, respectively, and
Europe accounted for 10% in the third quarters of fiscal 1997 and 1996,
respectively. The increased revenues in North America primarily relate to a
significant order from an existing customer. The decrease in revenues from the
Pacific Rim during the third quarter of fiscal 1997 was attributable to weakness
in the Japanese economy, the continuing effects of a reorganization of a major
OEM partner, and a delay in the introduction of Auspex's model NS7000/700
NetServer by that partner in Japan. The Company expects that softness in the
Pacific Rim will continue in the fourth quarter of fiscal 1997.
Gross margin was 55% of total revenues in the third quarter of
fiscal 1997 as compared with 56% in the third quarter of fiscal 1996. For the
nine months ended March 31, 1997 and 1996, gross margin was 55% for each period.
Selling, general and administrative expenses during the third
quarter of fiscal 1997 totaled $14.4 million, an increase of 21% from $11.9
million in the corresponding period of the prior fiscal year, and comprised 26%
and 28% of total revenues, respectively. For the nine months ended March 31,
1997, selling, general and administrative expenses totaled $40.5 million, an
increase of 27% from $31.8 million in the corresponding nine month period of the
prior fiscal year. In the first nine months of fiscal 1997 and 1996, selling,
general and administrative expenses comprised 27% and 28% of total revenues,
respectively. The decrease in these expenses as a percentage of revenues was
primarily due to the controlling of spending costs.
Research and development expenses incurred during the third quarter
of fiscal 1997 were $6.4 million, an increase of 39% from $4.6 million in the
corresponding period of the prior fiscal year, and were 11% of total revenues
for the quarters ended March 31, 1997 and 1996. For the nine months ended March
31, 1997, research and development costs totaled $17.9 million, an increase of
40% from $12.8 million for the nine months ended March 31, 1996, and comprised
12% and 11% of total revenues for the first nine months of fiscal 1997 and 1996,
respectively. The increase in absolute dollars was attributable primarily to the
addition of employees and related project costs supporting the Company's new
product development efforts. With the continuation of research and development
efforts, the Company expects that these efforts will result in an increase in
research and development costs both in absolute dollars and as a percentage of
revenues in the fourth quarter of fiscal 1997.
Page 6
<PAGE> 9
Income from operations for the third quarter of fiscal 1997 was
$9.7 million, an increase of 26% from $7.7 million in the third quarter of
fiscal 1996. Income from operations was 17% and 18% of total revenues for the
quarters ended March 31, 1997 and 1996, respectively. Income from operations for
the nine months ended March 31, 1997 totaled $22.6 million, an increase of 19%
from $19.0 million for the nine months ended March 31, 1996.
The Company's tax rate for the third quarter of fiscal 1997 was 35.5% as
compared with 33% in the third quarter of fiscal 1996. The higher tax rate in
fiscal 1997 primarily relates to increased earnings, which reduces the impact of
research and development and other tax credits on the effective tax rate.
LIQUIDITY AND CAPITAL RESOURCES
For the nine months ended March 31, 1997, the Company's cash, cash
equivalents and short-term investments increased by $22.3 million to $72.8
million. The Company's working capital increased during the nine months ended
March 31, 1997 by $16.9 million to $107.8 million.
Based on its current operating plans, the Company believes that its
existing cash, cash equivalents and short-term investments 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 second and fifth paragraphs under the section entitled "Results
of Operations" and the last paragraph under the section entitled "Liquidity and
Capital Resources" contains forward-looking statements. 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 than on systems sold through
distributors and OEMs. In addition, given the Company's focus on highly
configured enterprise class 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 any given quarter. Because the Company's
operating expenses are based on anticipated revenue levels and because a high
percentage of the Company's expenses are relatively fixed, a small variation in
the timing of the recognition of revenues could cause significant variations in
operating results from quarter to quarter.
Page 7
<PAGE> 10
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, and Silicon Graphics, Inc. Also, EMC Corporation has
recently introduced products to provide network attached storage. In addition,
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.
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 DriveGuard(TM) and FastBackup(TM) software
products along with current software products, ServerGuard(TM) and
DataGuard(TM), 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 new products. The Company's strategy is to continue to
introduce new products and upgrades to existing products on an ongoing basis.
There can be no assurance that the Company will not experience difficulties that
delay or prevent the successful development, introduction or marketing of these
products and enhancements or that these new products and enhancements will
adequately address market requirements and achieve market acceptance. 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.
Page 8
<PAGE> 11
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 nine months ended March 31, 1997 and 1996, direct sales of
products and services to Intel Corporation ("Intel") represented approximately
10% and 11%, respectively, of the Company's revenues, and direct sales to
America Online ("AOL") represented approximately 19% and 5%, respectively, of
the Company's revenues. For the first nine 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 7% and 15%, respectively,
of the Company's revenues. Also for the nine months ended March 31, 1997 and
1996, sales to Nissho Electronics ("Nissho"), the Company's distributor in
Japan, represented approximately 7% and 10%, 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 Intel, AOL, Fuji Xerox or Nissho could adversely affect the Company's
business, financial condition and results of operations.
RISKS OF INTERNATIONAL SALES; EUROPEAN MARKET RISKS
During the nine months ended March 31, 1997 and 1996, approximately
28% and 35%, respectively, of the Company's total revenues were derived from
markets outside of North America, including Japan, where the Company is
dependent on Fuji Xerox and Nissho (see "Dependence on Certain
Customers/Distributors" above). 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 continue to be profitable. 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 and OEMs, 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
Page 9
<PAGE> 12
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 10
<PAGE> 13
PART II. OTHER INFORMATION
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, as amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.
AUSPEX SYSTEMS, INC.
Date May 13, 1997 /s/ Kent L. Robertson
----------------- ---------------------------------------------
Kent L. Robertson
Vice President of Finance and Chief Financial
Officer (Principal Financial Officer)
Page 11
<PAGE> 14
AUSPEX SYSTEMS, INC.
EXHIBITS TO QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
Sequentially
Exhibit # Description Numbered Page
- --------- ----------- -------------
<S> <C> <C>
27 Financial Data Schedule 13
</TABLE>
Page 12
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-01-1997
<CASH> 32,737
<SECURITIES> 40,031
<RECEIVABLES> 37,701
<ALLOWANCES> 1,413
<INVENTORY> 22,756
<CURRENT-ASSETS> 11,312
<PP&E> 57,343
<DEPRECIATION> 39,758
<TOTAL-ASSETS> 163,546
<CURRENT-LIABILITIES> 35,336
<BONDS> 0
0
0
<COMMON> 25
<OTHER-SE> 128,185
<TOTAL-LIABILITY-AND-EQUITY> 163,546
<SALES> 50,463
<TOTAL-REVENUES> 55,602
<CGS> 21,513
<TOTAL-COSTS> 25,144
<OTHER-EXPENSES> 20,800
<LOSS-PROVISION> 60
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 10,057
<INCOME-TAX> 3,570
<INCOME-CONTINUING> 6,487
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,487
<EPS-PRIMARY> .25
<EPS-DILUTED> 0
</TABLE>
