SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
EXCEL TECHNOLOGY, INC.
(Exact name of Registrant as specified in its Charter)
For the quarter ended September 30, 1999 Commission File Number 0-19306
Delaware 11-2780242
(State or other jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
41 Research Way (631) 784-6100
E. Setauket NY 11733 (Registrant's Telephone Number)
(Address of Principal
Executive Offices)
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 [ ]
The number of shares of the Registrant's common stock outstanding as of
November 5, 1999
was: 11,909,243.
CONTENTS
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements: Page
.................................
Balance Sheets as of September 30, 1999 (unaudited)
and December 31, 1998 3
Statements of Earnings (unaudited) for the
Three Months Ended September 30, 1999 and 1998 4
Statements of Earnings (unaudited) for the Nine Months
Ended September 30, 1999 and 1998 5
Statements of Cash Flows (unaudited) for the Nine Months
Ended September 30, 1999 and 1998 6
Notes to Financial Statements (unaudited) 7
Item 2. Management's Discussion and Analysis of Financial
.................................................
Condition and Results of Operations 9
...................................
Item 3. Quantitative and Qualitative Disclosures About Market Risk 12
..........................................................
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 13
.................
Item 2. Changes in Securities and Use of Proceeds 13
.........................................
Item 3. Defaults upon Senior Securities 13
...............................
Item 4. Submission of Matters to a Vote of Security-Holders 13
...................................................
Item 5. Other Information 13
.................
Item 6. Exhibits and Reports on Form 8-K 13
................................
Index to Exhibits 15
(a) Exhibits - (11) Computation of net earnings per share 16
(27) Financial Data Schedule
(b) Reports on Form 8-K - None
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements:
CONSOLIDATED BALANCE SHEETS
Sept. 30, 1999 Dec. 31, 1998
.............. .............
(Unaudited)
Assets
.......
Current assets:
Cash and cash equivalents $ 7,852,450 $ 5,839,339
Accounts receivable, less allowance
for doubtful accounts of $434,000
and $426,000 in 1999 and 1998,
respectively 18,486,344 13,383,865
Inventories 14,363,714 15,672,576
Deferred income taxes 873,100 873,100
Other current assets 582,294 449,787
............. .............
Total current assets 42,157,902 36,218,667
............. .............
Property, plant and equipment, net 10,932,505 10,874,881
Other assets 357,786 497,664
Deferred income taxes 1,371,000 1,371,000
Excess of cost over fair value of net
assets of businesses acquired, net of
accumulated amortization of $3,484,847
and $2,572,637 in 1999 and 1998,
respectively 21,618,742 22,330,952
............. .............
Total assets $ 76,437,935 $ 71,293,164
............. .............
............. .............
Liabilities and Stockholders' Equity
....................................
Current liabilities:
Notes payable $ 39,888 $ 105,304
Accounts payable 3,155,436 3,612,934
Accrued expenses and other current
liabilities 7,943,582 6,922,971
............. .............
Total current liabilities 11,138,906 10,641,209
............. .............
Long-term debt 0 3,500,000
Stockholders' equity:
Preferred stock, par value $.001 per
share; 2,000,000 shares authorized,
none issued 0 0
Common stock, par value $.001 per share;
20,000,000 shares authorized,
11,893,573 and 11,810,349 issued in
1999 and 1998, respectively 11,894 11,810
Additional paid-in capital 49,607,424 49,116,700
Retained earnings 22,929,600 14,641,834
Treasury stock, 789,463 and 757,763
shares in 1999 and 1998, respectively (6,913,803) (6,565,794)
Accumulated other comprehensive loss (336,086) (52,595)
............. .............
Total stockholders' equity 65,299,029 57,151,955
............. .............
Total liabilities and
stockholders' equity $ 76,437,935 $ 71,293,164
............. .............
............. .............
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended
September 30
.............................
1999 1998
............. .............
Net sales and services $ 23,546,481 $ 17,512,016
Cost of sales and services 11,795,346 8,880,054
............. .............
Gross profit 11,751,135 8,631,962
Operating expenses:
Selling and marketing 2,894,980 2,423,757
General and administrative 1,863,880 1,468,915
Research and development 1,807,940 1,552,216
Amortization of excess cost over
fair value of net assets of
businesses acquired 304,070 234,426
............. .............
Earnings from operations 4,880,265 2,952,648
Non-operating expenses (income):
Interest expense 9,010 68,940
Interest income (92,627) (169,513)
Other expense (income), net 16,695 (14,778)
............. .............
Earnings before provision for income taxes 4,947,187 3,067,999
Provision for income taxes 1,632,572 1,073,800
............. .............
Net earnings $ 3,314,615 $ 1,994,199
............. .............
............. .............
Earnings per share:
Basic earnings per common share $0.30 $0.18
..... .....
..... .....
Weighted average common shares outstanding 11,103,210 11,152,000
............. .............
............. .............
Diluted earnings per common share $0.29 $0.18
..... .....
..... .....
Weighted average common shares and
common share equivalents 11,616,334 11,253,000
............. .............
............. .............
CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
Nine Months Ended
September 30
.............................
1999 1998
............. .............
Net sales and services $ 65,042,786 $ 46,186,661
Cost of sales and services 32,731,676 23,519,433
............. .............
Gross profit 32,311,110 22,667,228
Operating expenses:
Selling and marketing 8,687,831 6,995,574
General and administrative 4,928,705 3,896,394
Research and development 5,470,135 3,818,633
Amortization of excess cost over
fair value of net assets of businesses
acquired 912,210 419,278
............. .............
Earnings from operations 12,312,229 7,537,349
Non-operating expenses (income):
Interest expense 42,738 76,843
Interest income (199,833) (655,107)
Other expense (income), net 99,524 (30,011)
............. .............
Earnings before provision for income taxes 12,369,800 8,145,624
Provision for income taxes 4,082,034 2,863,611
............. .............
Net earnings $ 8,287,766 $ 5,282,013
............. .............
............. .............
Earnings per share:
Basic earnings per common share $0.75 $0.47
..... .....
..... .....
Weighted average common shares outstanding 11,086,726 11,238,000
............. .............
............. .............
Diluted earnings per common share $0.72 $0.46
..... .....
..... .....
Weighted average common shares and
common share equivalents 11,551,335 11,437,000
............. .............
............. .............
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30
.............................
1999 1998
............. .............
Cash flows from operating activities:
Net earnings $ 8,287,766 $ 5,282,013
Adjustments to reconcile net earnings
to net cash provided by operating
activities:
Depreciation and amortization 2,190,462 1,452,484
Provision for bad debts 32,999 12,473
Changes in operating assets and
liabilities, net of effects of
acquisitions:
Increase in accounts receivable (5,135,478) (61,261)
Decrease in inventories 1,308,862 65,491
(Increase) decrease in other
current assets (132,507) 94,889
Decrease in other assets 139,878 3,393
Decrease in accounts payable (457,498) (579,297)
Increase in accrued expenses and
other current liabilities 1,020,611 1,174,520
............. .............
Net cash provided by operating
activities 7,255,095 7,444,705
............. .............
Cash flows from investing activities:
Cash paid for acquisition - Synrad 0 (21,728,055)
Purchases of property, plant and equipment (1,535,876) (5,036,262)
Redemption of investments, net 0 13,967,881
............. .............
Net cash used in investing
activities (1,535,876) (12,796,436)
............. .............
Cash flows from financing activities:
Purchase of treasury stock (348,009) (2,421,403)
Proceeds from exercise of common stock
options and warrants 490,808 262,500
Payments of notes payable (65,416) (278,154)
(Payments of) proceeds from long-term
debt and revolving credit line (3,500,000) 6,500,000
............. .............
Net cash (used in) provided by
financing activities (3,422,617) 4,062,943
............. .............
Effect of exchange rate changes on assets
and liabilities including cash and cash
equivalents (283,491) 279,475
............. .............
Net increase (decrease) in cash and cash
equivalents 2,013,111 (1,009,313)
Cash and cash equivalents,
beginning of period 5,839,339 6,331,159
............. .............
Cash and cash equivalents, end of period $ 7,852,450 $ 5,321,846
............. .............
............. .............
Supplemental disclosure of cash flow
information:
Cash paid for:
Interest $ 75,919 $ 21,243
Income taxes $ 3,954,309 $ 1,516,526
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
A. CONSOLIDATED FINANCIAL STATEMENTS:
.................................
The consolidated balance sheet as of September 30, 1999, the
consolidated statements of earnings for the three months and nine months
ended September 30, 1999 and September 30, 1998, and the consolidated
statements of cash flows for the nine months ended September 30, 1999 and
September 30, 1998 have been prepared by the Company and are unaudited.
In the opinion of management, all adjustments (which included only normal
recurring adjustments) have been made which are necessary to present
fairly the financial position, results of operations and cash flows at
September 30, 1999 and for all periods presented.
For information concerning the Company's significant accounting
policies, reference is made to the Company's Annual Report on Form 10-K
for the year ended December 31, 1998. While the Company believes that
the disclosures presented are adequate to make the information contained
herein not misleading, it is suggested that these statements be read in
conjunction with the consolidated financial statements and notes included
in the Form 10-K. Results of operations for the period ended September
30, 1999 are not necessarily indicative of the operating results to be
expected for the full year.
B. INVENTORIES
...........
Inventories are recorded at the lower of average cost or market.
Average cost approximates actual cost on a first-in first-out basis.
Inventories consist of the following:
September 30, 1999 December 31, 1998
.................. .................
Raw Materials $ 7,082,664 $ 7,555,877
Work in Process 5,302,472 6,294,045
Finished Goods 1,631,151 1,260,475
Consigned Inventory 347,427 562,179
........... ...........
$14,363,714 $15,672,576
........... ...........
........... ...........
C. LONG-TERM DEBT
..............
On July 23, 1998, the Company entered into a credit facility with The
Bank of New York (the "Bank") that provides the Company with a $15
million revolving line of credit for acquisitions or working capital
requirements. The term of this agreement is for five years, maturing on
July 22, 2003. This credit facility allows for interest to be calculated
utilizing an Alternative Base Rate ("ABR") or a LIBOR rate plus a premium
ranging from 0.50% to 2.25%. The ABR is the higher rate of either the
prime rate or the Federal Funds Rate plus 0.50%. This credit facility
contains certain financial covenants, including the prohibition of the
payment of dividends, and requires payment of interest on a quarterly
basis. During the quarter ended March 31, 1999, the Company prepaid all
of its outstanding long-term debt of $3,500,000. As of September 30,
1999 the Company had no borrowings and had all of its $15 million
available on its line of credit.
D. ACQUISITIONS
............
On August 14, 1998, the Company acquired substantially all of the
assets and properties of Synrad Inc. ("Synrad"), a company engaged in the
business of developing, manufacturing and marketing sealed CO2 lasers and
related accessories, for $21.7 million in cash, which includes
transaction costs and the repayment of certain of Synrad's outstanding
debt. In addition, the Company assumed certain liabilities including
trade payables, accrued expenses and other specified liabilities. The
Company funded the acquisition of Synrad by utilizing its own cash and by
borrowing $6.5 million on its credit facility all of which was repaid as
of March 31, 1999. (See Note C). The acquisition was accounted for as a
purchase. The acquired assets and liabilities have been recorded at
their estimated fair values at the date of acquisition. The total cost
of the acquisition was $21.7 million of which $4.8 million was allocated
to identifiable net tangible assets. The remaining balance of $16.9
million represents the excess of the purchase price over the fair value
of the net assets acquired, which is being amortized on a straight line
basis over 20 years. During 1999, the Company recorded an adjustment to
the initial allocation of the purchase price which resulted in a $200
thousand increase to the cost in excess of fair value of assets acquired.
The following unaudited pro forma consolidated results of operations
assume the acquisition of Synrad had been made at the beginning of the
period ended September 30, 1998 and reflects the historical results of
operations of the purchased business adjusted for the increased interest
expense as a result of the borrowings, reduced interest income,
amortization expense and income tax expense.
Pro Forma
Nine Months Ended
September 30, 1998
..................
Net sales and services $ 62,225,411
Net earnings $ 5,328,370
Basic earnings per common share $ 0.47
Diluted earnings per common share $ 0.47
The pro forma results of operations are not necessarily indicative
of the actual results of operations that would have occurred had the
purchase been made at the beginning of the period.
E. COMPREHENSIVE INCOME
....................
Comprehensive income is comprised of net income and foreign currency
translation adjustments, amounting in the aggregate to $8,004,275 and
$5,561,488 for the nine months ended September 30, 1999 and 1998,
respectively.
Item 2. Management's Discussion and Analysis of Financial Condition and
...............................................................
Results of Operations
.....................
Results of Operations
.....................
Net sales and services for the quarter ended September 30, 1999
increased $6.0 million or 34.5% to $23.5 million from $17.5 million for
the comparable period in the prior year. For the nine months ended
September 30, 1999, net sales and services were $65.0 million, an
increase of $18.8 million or 40.8% from $46.2 million in the nine months
ended September 30, 1998. The increase is primarily attributable to the
effect of having Synrad for the full quarter ended September 30, 1999
versus only two months during the quarter ended September 30, 1998. Most
of the operating divisions experienced increases in net sales and
services during the quarter and nine month periods ended September 30,
1999.
Gross margins as a percentage of sales increased to 49.9% for the
quarter ended September 30, 1999 as compared to 49.3% in the same period
in the prior year. For the nine months ended September 30, 1999, gross
margins as a percentage of sales increased to 49.7% from 49.0% for the
nine months ended September 30, 1998. The decrease in cost as a
percentage of sales is primarily due to the product mix and the increase
in sales volume during the periods in comparison.
Selling and marketing expenses increased to $2.9 million in the
quarter ended September 30, 1999 from $2.4 million in the quarter ended
September 30, 1998. Selling and marketing expense as a percentage of
sales decreased to 12.3% for the quarter ended September 30,1999 from
13.8% for the comparable period in the prior year. For the nine months
ended September 30, 1999, selling and marketing expenses increased to
$8.7 million from $7.0 million in 1998. Selling and marketing expenses
as a percentage of sales for the nine months were 13.4% in 1999 and 15.1%
in 1998. The increase in selling and marketing expenses is primarily
attributable to the increased variable costs associated with the
increased sales volume. The decrease in selling and marketing expenses
as a percentage of sales is primarily attributable to the acquisition of
Synrad which has lower variable selling expenses.
General and administrative expenses increased $395 thousand or 26.9%
from $1.5 million in the quarter ended September 30, 1998 to $1.9 million
in the current period. For the nine months September 30, 1999, general
and administrative expense increased $1.0 million to $4.9 million from
$3.9 million in 1998. The increase is primarily associated with having
Synrad for the full quarter ended September 30, 1999 compared to only two
months of the quarter ended September 30, 1998. In addition, bonus
expenses, which are tied to profits, increased as profits were higher for
both the three and nine months ended September 30, 1999.
Research and development costs for the quarter ended September 30,
1999 increased $256 thousand or 16.5% to $1.8 million from $1.6 million
in the quarter ended September 30, 1998. For the nine months ended
September 30, 1999, research and development expenses increased $1.7
million or 43.2% to $5.5 million from $3.8 million in 1998. The increase
is primarily attributable to the full effect of Synrad.
Interest expense was $9 thousand and $69 thousand for the quarters
ended September 30, 1999 and 1998, respectively. For the nine months
ended September 30, 1999, interest expense was $43 thousand versus $77
thousand for the nine months ended September 30, 1998. The decrease of
$34 thousand for the nine month period is due to the prepayment of long-
term bank debt during the quarter ended March 31, 1999.
Interest income decreased to $93 thousand in the quarter ended
September 30, 1999, from $170 thousand in the same period of 1998, a
decrease of $77 thousand. For the nine months ended September 30, 1999
and 1998, interest income was $200 thousand and $655 thousand,
respectively. The decreases are primarily due to a decrease in the
average investment balances resulting from the utilization of cash and
investments for the acquisition of Synrad.
Other income/expense resulted in a net expense of $17 thousand for
the quarter ended September 30, 1999 as compared to income of $15
thousand for the quarter ended September 30, 1998. Other income/expense
for the nine months ended September 30, 1999 and 1998, respectively, was
expense of $100 thousand and income of $30 thousand. This increase in
expense is primarily due to foreign currency transaction losses incurred
by the Company's German subsidiary.
Liquidity and Capital Resources
...............................
Working capital at September 30, 1999 was $31.0 million compared to
$25.6 million at December 31, 1998. The increase is primarily
attributable to the current year net income and the proceeds from the
exercise of common stock options offset by the payment of the $3.5
million loan; property, plant and equipment expenditures of $1.5 million
and the purchase of treasury stock of $348 thousand.
The Company anticipates spending approximately $2.0 million for
capital expenditures in 1999 of which approximately $1.5 million was
spent during the nine months ended September 30, 1999. The Company had
capital expenditures of approximately $5.4 million for the year ended
December 31, 1998, which included the purchase of two new buildings.
The Company had no outstanding long-term debt and $15 million
available on its line of credit as of September 30, 1999, as described in
note C to the consolidated financial statements.
The Company estimates that its current resources and anticipated cash
flow from operations will be sufficient to meet the Company's cash
requirements for at least the next 12 months.
Year 2000 Compliance
....................
In 1997, the Company commenced a Year 2000 date conversion project to
address necessary changes, testing and implementation with respect to its
internal computer systems. Project completion is scheduled for November
30, 1999. To date, the cost of this project has not been material to the
Company's results of operations and liquidity and the Company does not
anticipate that the cost of completing the project will be material to
its results of operations or liquidity in 1999. Management anticipates
that the Company's Year 2000 date conversion project as it relates to the
Company's internal systems will be completed on a timely basis.
The Company believes its applicable current products are Year 2000
compliant.
The Company is currently seeking information regarding Year 2000 comp
liance from vendors, customers and manufacturers associated with the
Company. Upon completion of the Company's Year 2000 project which is
scheduled for November 30, 1999, the Company will consider the need to
develop contingency plans to address the failure of timely conversion of
its and/or third-party systems with respect to the Year 2000 issue.
However, given the reliance on third-party information as it relates to
their compliance programs and the difficulty of determining potential
errors on the part of the external service suppliers, no assurance can be
given that the Company's information systems or operations will not be
affected by mistakes, if any, of third parties or third-party failures to
complete the Year 2000 project on a timely basis. There can be no
assurance that the systems of other companies on which the Company's
systems rely will be timely converted or that any such failure to convert
by another company would not have an adverse effect on the Company's
systems.
The cost of the Company's Year 2000 project and the date on which the
Company believes it will complete the necessary modifications are based
on the Company's estimates, which were derived utilizing numerous
assumptions of future events, including the continued availability of
resources, third party modification plans and other factors. The Company
presently believes that the Year 2000 issue will not pose significant
operational problems for its internal information systems and products.
However, if the anticipated modifications and conversions are not
completed on a timely basis, or if the systems of other companies on
which the Company's systems and operations rely are not converted on a
timely basis, the Year 2000 issue could have an adverse effect on the
Company's operations.
Inflation
.........
In the opinion of management, inflation has not had a material effect
on the operations of the Company.
Forward-Looking Statements
..........................
The information set forth in this Report (and other reports issued by
the Company and its officers from time to time) contain certain
statements concerning the Company's future results, future performance,
intentions, objectives, plans and expectations that are or may be deemed
to be "forward-looking statements". Such statements are made in reliance
upon safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. The Company's actual results may differ significantly from
the results discussed in the forward-looking statements. Such forward-
looking statements are subject to a number of known and unknown risks and
uncertainties that, in addition to generic economic and business
conditions could cause the Company's actual results, performance, and
achievements to differ materially from those described or implied in the
forward-looking statements. Factors that could cause or contribute to
such differences include, but are not limited to those discussed in
"Management's Discussion and Analysis of Financial Condition and Results
of Operations".
Item 3. Quantitative and Qualitative Disclosures About Market Risk
..........................................................
Not applicable.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
.................
For information concerning Legal Proceedings, reference is made
to Item 3, Legal Proceedings, in the Company's Annual Report on Form 10-K
for the year ended December 31, 1998.
Item 2. Changes in Securities and Use of Proceeds
.........................................
None.
Item 3. Defaults upon Senior Securities
...............................
None.
Item 4. Submission of Matters to a Vote of Security-Holders
...................................................
None.
Item 5. Other Information
.................
None.
Item 6. Exhibits and Reports on Form 8-K
................................
(a) Exhibits - (11) Computation of net earnings per share
(27) Financial Data Schedule
(b) Reports on Form 8-K - None
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.
DATED: November 8, 1999
EXCEL TECHNOLOGY, INC.
By: /s/ J. Donald Hill
......................................
J. Donald Hill, Chairman of the Board,
Chief Executive Officer
By: /s/ Antoine Dominic
....................................
Antoine Dominic, President,
Chief Operating Officer
and Principal Accounting Officer
INDEX TO EXHIBITS
Exhibit Number:
11 Computation of Net Earnings per Share
27 Financial Data Schedule
EXHIBIT 11 (Unaudited)
COMPUTATION OF NET EARNINGS PER SHARE
BASIC DILUTED
Three Months Ended Three Months Ended
September 30, September 30,
....................... ......................
1999 1998 1999 1998
........... .......... .......... ..........
Net earnings $ 3,314,615 1,994,199 3,314,615 1,994,199
........... .......... .......... ..........
........... .......... .......... ..........
Weighted average common
shares outstanding 11,103,210 11,152,000 11,103,210 11,152,000
Weighted average common
share equivalents:
Options and warrants 0 0 513,124 101,000
........... .......... .......... ..........
Weighted average common
shares and common share
equivalents 11,103,210 11,152,000 11,616,334 11,253,000
........... .......... .......... ..........
........... .......... .......... ..........
Net earnings per share $0.30 $0.18 $0.29 $0.18
..... ..... ..... .....
..... ..... ..... .....
BASIC DILUTED
Nine Months Ended Nine Months Ended
September 30, September 30,
....................... ......................
1999 1998 1999 1998
........... .......... .......... ..........
Net earnings $ 8,287,766 5,282,013 8,287,766 5,282,013
........... .......... .......... ..........
........... .......... .......... ..........
Weighted average common
shares outstanding 11,086,726 11,238,000 11,086,726 11,238,000
Weighted average common
share equivalents:
Options and warrants 0 0 464,609 199,000
........... .......... .......... ..........
Weighted average common
shares and common share
equivalents 11,086,726 11,238,000 11,551,335 11,437,000
........... .......... .......... ..........
........... .......... .......... ..........
Net earnings per share $0.75 $0.47 $0.72 $0.46
..... ..... ..... .....
..... ..... ..... .....
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1999 DEC-31-1999
<PERIOD-END> SEP-30-1999 SEP-30-1999
<CASH> 7,852,450 7,852,450
<SECURITIES> 0 0
<RECEIVABLES> 18,486,344 18,486,344
<ALLOWANCES> 434,000 434,000
<INVENTORY> 14,363,714 14,363,714
<CURRENT-ASSETS> 42,157,902 42,157,902
<PP&E> 10,932,505 10,932,505
<DEPRECIATION> 0 0
<TOTAL-ASSETS> 76,437,935 76,437,935
<CURRENT-LIABILITIES> 11,138,906 11,138,906
<BONDS> 0 0
0 0
0 0
<COMMON> 11,894 11,894
<OTHER-SE> 65,287,135 65,287,135
<TOTAL-LIABILITY-AND-EQUITY> 76,437,935 76,437,935
<SALES> 23,546,481 65,042,786
<TOTAL-REVENUES> 23,546,481 65,042,786
<CGS> 11,795,346 32,731,676
<TOTAL-COSTS> 11,795,346 32,731,676
<OTHER-EXPENSES> 6,794,938 19,898,572
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 9,010 42,738
<INCOME-PRETAX> 4,947,187 12,369,800
<INCOME-TAX> 1,632,572 4,082,034
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 3,314,615 8,287,766
<EPS-BASIC> 0.30 0.75
<EPS-DILUTED> 0.29 0.72
</TABLE>
