U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 1999
--------------
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from _______________ to __________________
Commission file number: 1-11032
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PROFESSIONAL DENTAL TECHNOLOGIES, INC.
--------------------------------------
(Exact name of small business issuer as
specified in its charter)
Nevada 71-0644350
- -------------------------------- ---------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
633 Lawrence Street, Batesville, Arkansas 72501
-----------------------------------------------
(Address of Principal Executive Offices)
(870) 698-2300
--------------
(Issuer's telephone number)
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
---- ----
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by court. Yes ___. No ___.
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common equity, as of June 1, 1999: 14,100,000
------------
<PAGE>
PROFESSIONAL DENTAL TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEET
APRIL 30 OCTOBER 31
1999 1998
(UNAUDITED)
- ------------------------------------------------ -----------
ASSETS (In thousands)
Current Assets:
Cash and Cash Equivalents $ 1,548 $ 1,735
Certificates of Deposit 209 98
Accounts Receivable:
Trade - Net of allowance for doubtful 2,523 2,444
accounts of $83,000
And $78,000 respectively
Affiliates 269 137
Inventory 2,550 3,216
Other Current Assets 461 683
--------- --------
Total Current Assets 7,560 8,313
Property and Equipment - Net 2,695 2,731
Other Assets - Net of Accumulated
Amortization 131 135
--------- --------
Total Assets $ 10,386 $ 11,179
========= ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Line of Credit $ 223 $ 865
Accounts Payable - Trade 1,065 1,045
Other Accrued Liabilities 1,114 1,579
Long-term Debt - Current Portion 461 461
Capital Lease Obligations -
Current Portion 209 209
--------- --------
Total Current Liabilities 3,072 4,159
Long-term Debt - Net of Current Portion 714 835
Capital Lease Obligations -
Net of Current Portion 266 366
--------- --------
Total Liabilities 4,052 5,360
Stockholders' Equity:
Common Stock $0.01 par value:
30,000,000 shares authorized;
14,100,000 shares issued and
outstanding 141 141
Additional Paid-in Capital 316 314
Retained Earnings 5,877 5,364
--------- --------
Total Stockholders' Equity 6,334 5,819
--------- --------
Total Liabilities and
Stockholders' Equity $ 10,386 $ 11,179
========= ========
See Notes to Financial Statements
2
<PAGE>
PROFESSIONAL DENTAL TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
FOR THE THREE AND SIX MONTH PERIODS ENDED APRIL 30, 1999 AND 1998
THREE MONTHS ENDED SIX MONTHS ENDED
APRIL 30 APRIL 30
- ---------------------------------------------- -------------------------
1999 1998 1999 1998
- ---------------------------------- ---- ---- ----
Sales $ 7,383 $ 7,065 $ 13,879 $ 13,517
Cost of Goods Sold 3,063 2,953 5,848 5,613
-------- -------- --------- --------
Gross Profit 4,320 4,112 8,031 7,904
Operating Expenses 3,659 3,648 7,094 7,132
-------- -------- --------- --------
Income
from Operations 661 464 937 772
Other Income (Expenses) ( 38) 472 ( 84) 416
-------- -------- --------- --------
Net Income
before Taxes 623 936 853 1,188
Provision for
Income Taxes ( 245) ( 360) ( 340) ( 456)
-------- -------- --------- --------
Net Income $ 378 $ 576 $ 513 $ 732
========= ========= ========= ========
Net Income per Share:
Basic $ .03 $ .04 $ .04 $ .05
========= ======== ========= ========
Diluted $ .03 $ .04 $ .04 $ .05
========= ======== ========= ========
Weighted average
shares outstanding:
Basic 14,148,000 14,121,000 14,148,000 14,121,000
========== ========== ========== ==========
Diluted 14,148,000 14,121,000 14,148,000 14,121,000
========== ========== ========== ==========
See Notes to Financial Statements
3
<PAGE>
PROFESSIONAL DENTAL TECHNOLOGIES, INC.
CONSOLIDATED STATEMENT OF CASH FLOW
(UNAUDITED)
FOR THE SIX MONTH PERIODS ENDED APRIL 30, 1999 AND 1998
1999 1998
- ------------------------------------------------------ ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 513 $ 732
Adjustments to reconcile net income
to net cash from operations:
Depreciation and Amortization 346 339
Deferred Compensation Expense 2 12
Decrease (increase) in:
Accounts Receivable (211) (376)
Inventory 666 (185)
Other Current Assets 222 (62)
Other Assets (601)
Increase (decrease) in:
Accounts Payable - Trade 19 (8)
Other Accrued Liabilities (465) 489
--------- ---------
Net Cash Provided by Operations 1,092 340
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Property and Equipment (307) (325)
Proceeds from Sale of Fixed Assets 1 11
Certificates of Deposit (111) ---
Investment in Joint Ventures --- ---
--------- ---------
Net Cash (used) for Investing
Activities (417) (314)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in Line of Credit (642) 452
Issuance of Long-term Debt --- 20
Payment of Capital Lease Obligations (120) (95)
Payment of Long-term Debt (100) (102)
--------- ---------
Net Cash (used) for Financing
Activities (862) 275
--------- ---------
Increase (decrease) in Cash (187) 301
Cash and Cash Equivalents -
Beginning of Period 1,735 1,267
--------- ---------
End of period $ 1,548 $ 1,568
========== =========
See Notes to Financial Statements
4
<PAGE>
PROFESSIONAL DENTAL TECHNOLOGIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIODS ENDED APRIL 30, 1999 AND 1998
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF ORGANIZATION - Professional Dental Technologies, Inc. is a group
of companies headquartered in Batesville, Arkansas engaged primarily in the
business of designing, manufacturing and marketing products and services
for dental professionals to be used in the diagnosis, treatment and
prevention of periodontal and other dental diseases.
PRINCIPLES OF CONSOLIDATION - The consolidated financial statements include
the accounts of Professional Dental Technologies, Inc. and its wholly-owned
subsidiaries: PDT Byte, Inc., Pro-Dentec FSC, Inc., Professional Dental
Hygienists, Inc., PDT Image, Inc., Professional Dental Manufacturing, Inc.,
Professional Dental Marketing, Inc., Professional Dental Printing, Inc.,
Professional Dental Probes, Inc., (inactive at January 31, 1999), and
Professional Dental Technologies Therapeutics, Inc. (collectively the
"Company"). All significant intercompany accounts and transactions have
been eliminated in consolidation.
ESTIMATES - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements, and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from
those estimates.
CASH AND CASH EQUIVALENTS - For the purpose of presentation in the
consolidated statements of cash flows, the Company considers all cash on
hand and on deposit with depository institutions with maturity at the time
acquired of three months or less to be cash and cash equivalents.
INVENTORY - Inventory is recorded at the lower of cost (determined on a
first-in, first-out basis) or market.
PROPERTY AND EQUIPMENT - Property and equipment is stated at cost less
accumulated depreciation. Depreciation is calculated using accelerated
methods and is expensed based on the estimated useful lives of the assets.
LONG-LIVED ASSETS - The Company adopted Financial Accounting Standards
Board ("FASB") Statement of Financial Accounting Standards ("SFAS") No.
121, ACCOUNTING FOR THE IMPAIRMENT OF LONG-LIVED ASSETS AND FOR LONG-LIVED
ASSETS TO BE DISPOSED OF in the year ended October 31, 1997. The Company
reviews long-lived assets and certain identifiable intangibles to be held
and used for impairment whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. The
adoption of SFAS No. 121 had no effect on the Company's consolidated
financial statements for the period ended April 30, 1999.
5
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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
INVESTMENTS IN AND ADVANCES TO AFFILIATES - The Company uses the equity
method to account for investments in affiliates, primarily joint ventures,
in which the Company has a 20% to 50% interest.
NET INCOME PER SHARE - The Company has adopted SFAS No. 128, Earnings per
Share, during the year ended October 31, 1997; accordingly, both Basic and
Diluted EPS were presented for the quarters ended April 30, 1999 and 1998.
Basic and diluted weighted average number of shares outstanding for the
quarters ended April 30, 1999 and 1998 were 14,148,000 and 14,121,000
shares, respectively. Common stock equivalents have less than a 3% dilutive
effect.
REVENUE RECOGNITION - Revenue is recognized at the time that product
ownership transfers to the customer, principally at the time of shipment.
Revenue from computer software maintenance agreements is deferred and
amortized over the term of the related agreements.
ACCRUED WARRANTY COSTS - The Company provides by a current charge to
income, an amount it estimates will be needed to cover future warranty
obligations for products sold during the year.
CONCENTRATION OF CREDIT RISK - Accounts receivable arise from the sale of
dental products to dental professionals located throughout the world but
principally in the United States. The Company extends credit to its
customers in the normal course of business. The Company performs ongoing
credit evaluations of its customers' financial condition and generally
requires no collateral from its customers. The Company's credit losses are
subject to general economic conditions of the dental industry.
INCOME TAXES - Income taxes are provided for the tax effects of
transactions reported in the financial statements and consist of taxes
currently due plus deferred taxes, if any. Deferred taxes represent the net
tax effects of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for
income tax purposes.
STOCK-BASED COMPENSATION - The Company has adopted SFAS No. 123, ACCOUNTING
FOR STOCK-BASED COMPENSATION during the year ended October 31, 1997. SFAS
No. 123 establishes accounting and reporting standards for companies who
have stock-based compensation plans. Those plans include all arrangements
by which employees and non-employees receive shares of stock or other
equity instruments of the company. SFAS No. 123 defines a fair value based
method of accounting for a stock option or similar equity instrument. Under
the fair value based method, compensation cost is measured at the grant
date based on the value of the award and is recognized over the service
period, which is usually the vesting period. Accounting Principles Board
("APB") Opinion 25, requires compensation cost for stock-based employee
compensation plans to be recognized based on the difference, if any,
between the quoted market price of the stock and the amount an employee
must pay to acquire the stock. SFAS No. 123 permits an entity in
determining its net income to continue to apply the accounting provisions
of APB Opinion 25 to its stock-based employee compensation arrangements. An
entity that continues to apply APB
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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Opinion 25 must comply with the disclosure requirements of SFAS 123. The
Company has elected to continue to apply the accounting provisions of APB
Opinion No. 25 and related interpretations to its employee stock options.
IMPACT OF NEW ACCOUNTING STANDARDS - In February 1997, the Financial
Accounting Standards Board ("FASB") issued Statement No. 128, EARNINGS PER
SHARE. SFAS No. 128 establishes standards for computing and presenting
earnings per share ("EPS"). The previous presentation of primary EPS is
replaced with a presentation of basic EPS. Dual presentation of basic and
diluted EPS is required on the face of the income statements, as well as a
reconciliation of the numerator and denominator of the basic EPS
computation to the numerator and denominator of the diluted EPS
computation. Basic EPS excludes dilution and is computed by dividing income
available to common stockholders by the weighted-average number of common
shares outstanding for the period. Diluted EPS is computed similarly to
fully diluted EPS pursuant to Accounting Principles Board Opinion No. 15.
The Company adopted SFAS No. 128 for the year ended October 31, 1998.
In June 1997, the FASB issued Statement No. 130, REPORTING COMPREHENSIVE
INCOME. SFAS 130 establishes standards for reporting and display of
comprehensive income and its components. SFAS requires that all items that
are required to be recognized under accounting standards as components of
comprehensive income be reported in a financial statement that is displayed
with the same prominence as other financial statements. The Company will be
required to classify items of other comprehensive income by their nature in
a financial statement and display the accumulated balance of other
comprehensive income separately from retained earnings and additional
paid-in capital in the stockholders' equity section of the balance sheet.
Also in June 1997, the FASB issued Statement No. 131, DISCLOSURES ABOUT
SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION, establishing standards
for the way public enterprises report information about operating segments
in interim financial reports issued to shareholders. It also establishes
standards for related disclosures about products and services, geographic
areas, and major customers. SFAS 130 and 131 are effective for fiscal years
beginning after December 15, 1997, with reclassification of earlier
periods. The adoption of SFAS 130 and 131 is not expected to have a
material effect on the Company's consolidated financial statements.
In February 1998, the FASB issued Statement No. 132, EMPLOYERS' DISCLOSURES
ABOUT PENSIONS AND OTHER POSTRETIREMENT BENEFITS, an amendment of FASB
Statements No. 87, 88 and 106. The Statement revises employers' disclosures
about pensions and other postretirement benefits. It does not change the
measurement or recognition of those plans. It standardizes the disclosure
requirements for pensions and other postretirement benefits to the extent
practicable, requires additional information on changes in the benefit
obligations and fair values of plan assets that will facilitate financial
analysis, and eliminates certain disclosures that are no longer as useful
as they were when FASB Statements No. 87, 88, and 106 were issued. The
Statement is effective for fiscal years beginning after December 15, 1997.
The adoption of SFAS 132 is not expected to have a material effect on the
Company's consolidated financial statements.
In June 1998, the FASB issued Statement No. 133, ACCOUNTING FOR DERIVATIVE
INSTRUMENTS AND HEDGING ACTIVITIES. This Statement establishes accounting
and reporting standards for derivative instruments, including certain
derivative instruments embedded in other contracts (collectively referred
to as derivatives), and for hedging activities. It requires that an entity
recognize all derivatives as either assets or liabilities in the balance
7
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sheet and measure those instruments at fair value. This statement is
effective for fiscal years beginning after June 15, 1999. The adoption of
SFAS No. 133 is not expected to have a material effect on the Company's
consolidated financial statements.
RECLASSIFICATIONS - Certain reclassifications have been made to the 1998
financial statements in order to conform with 1999 financial statement
presentation. These reclassifications had no effect on stockholders' equity
or net income, as previously reported.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FOR THE SIX MONTH PERIODS ENDED APRIL 30, 1999 AND 1998
-------------------------------------------------------
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included in
this Report and other such Company filings (collectively, "SEC filings")
under the Securities Act of 1933, as amended, and the Securities Exchange
Act of 1934, as amended (as well as information communicated orally or in
writing between the dates of such SEC filings) contains or may contain
information that is forward looking. Such forward-looking information
involves important risks and uncertainties that could significantly affect
expected results. The Company cautions investors that any such
forward-looking statements made by the Company are not guarantees of future
performance and that actual results may differ materially from those in the
forward-looking statements. The factors that could cause actual results to
differ materially from estimates contained in the Company's forward-looking
statements were detailed in the Company's 1998 Form 10-KSB filed with the
Securities and Exchange Commission.
RESULTS OF OPERATIONS. For the six month period ended April 30, 1999,
net sales were $13.9 million, an increase of approximately 2.8% compared to
$13.5 million for the same period in 1998. This result is attributable to
increases in sales of two of the Company's three major product lines,
ultrasonic scaler and accessories, and dental pharmaceutical products.
Sales of the Rota-dent and accessories were unchanged.
The Company's sales revenue during the six months ended April 30, 1999
and 1998 has been substantially attributable to sales of the Rota-dent and
accessories. During the first six months of 1999, revenue from such sales,
excluding foreign sales, amounted to $8.3 million, the same as in the 1998
six-month period. Revenue received during the first half of 1999 from the
sale of pharmaceutical and scaler products totaled $4.1 million, compared
to $3.8 million in the 1998 period. International sales were $1.0 million
in 1999, the same as in the 1998 period. The balance of the Company's
revenue in both years resulted from sales of computer software and from
sale of printed literature.
Cost of goods sold for the six months ended April 30, 1999 was $5.8
million or 42.1% of sales, compared to $5.6 million or 41.5% of sales for
the period ended April 30, 1998. The higher cost of goods sold percentage
in 1999 is due to the additional cost of providing four necks with each
Rota-dent unit, a change that was made in the second half of fiscal year
1998. Cost reductions sufficient to offset this increase are expected to be
8
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in place prior to the end of fiscal 1999, although cost of goods sold for
the full year 1999 is expected to be higher than in 1998.
Operating expenses were $7.0 million during the first six months of
1999 compared to $7.1 million during the first half of 1998. General and
administrative expenses decreased in 1999 resulting from higher legal costs
relating to the settlement of litigation and higher medical expenses, which
were experienced in the first six months of 1998.
Other income and expense, which primarily consists of the profit or
loss from non-consolidated affiliates, interest income/expense and
non-recurring income/expense relating to the settlement of lawsuits netted
to expense of $84,000 for the first six months of 1999, compared with an
income of $416,000 for the same period in 1998. Interest expense was lower
and losses in non-consolidated affiliates were lower in 1999 than in the
1998 period. The 1998 figure includes non-recurring income received in the
second quarter of that year, relating to the settlement of lawsuits.
As a result of the changes noted above, net income for the six month
period ended April 30, 1999 was $513,000 compared to $732,000 for the same
period in 1998. If the non-recurring amount relating to the settlement of
the lawsuits was to be disregarded, net income would have been $311,000 in
the 1998 period compared to $513,000 in the 1999 period.
FOR THE THREE MONTH PERIODS ENDED APRIL 30, 1999 AND 1998
---------------------------------------------------------
RESULTS OF OPERATIONS. For the three month period ended April 30, 1999,
net sales increased 2.8% to $7.4 million, compared to $7.2 million in the
1998 period. This result is largely attributable to increases in sales of
two of the Company's three major product lines, ultrasonic scaler and
accessories, and dental pharmaceutical products. Sales of the Rota-dent and
accessories were unchanged.
The Company's sales revenue during the three months ended April 30,
1999 and 1998 were principally attributable to the Rota-dent. Domestic
sales of the Rota-dent and accessories were $4.4 million in both the 1999
and 1998 second quarters. Sales of the scaler and pharmaceutical products
generated revenues of $2.1 million in the second quarter of 1999, compared
to $1.9 million in the 1998 period. Sales of all other categories
(computers, literature and international sales) accounted for the balance
of revenue in each quarter.
Cost of goods sold for the three months ended April 30, 1999 was $3.1
million, or 41.5% of sales, essentially flat compared to $3.0 million or
41.8% of sales in 1998.
Operating expense was $3.7 million in the second quarter of 1999,
essentially flat compared to $3.6 million in the 1998 period.
Other income and expense, consisting primarily of the profit or loss
from non-consolidated affiliates, interest income/expense and non-recurring
income/expense relating to the settlement of lawsuits, netted to expense of
$38,000 for the second quarter of 1999, compared with an income of $472,000
for the same period in 1998. Interest expenses in 1999 were lower than in
the 1998 period, losses in the non-consolidated affiliates were lower, and
there was no lawsuit settlement in the 1999 period, which accounted for the
profit in 1998.
9
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As a result of the changes noted above, net income for the quarter
ended April 30, 1999 was $378,000 compared to $576,000 for the same period
in 1998. If the non-recurring amount relating to the settlement of lawsuits
was to be disregarded, net income would have been $155,000 in 1998 compared
to $378,000 in 1999.
CAPITAL RESOURCES AND LIQUIDITY. On April 30, 1999 the Company's total
assets were $10.4 million, compared to $11.1 million at October 31, 1998.
The decrease in assets results primarily from an inventory-reduction
program the Company began in October 1998. Total liabilities were $4.1
million, a decrease of $1.3 million compared to year end liabilities of
$5.4 million. This results primarily from decreases in the draw on the line
of credit and decreased accrued liabilities. Stockholders' Equity increased
by $0.5 million, to $6.3 million, as a result of earnings since October 31,
1998.
For the six month period ended April 30, 1999, net cash provided from
operations was $1.1 million compared to $0.3 million for the same period in
1998.
The Company has established reserves for potential warranty claims on
its primary products, and such claims have historically been within
management's expectation.
The Company defines liquidity as the ability to generate adequate
amounts of cash to meet the its needs. The Company has historically relied
primarily on cash provided from operations to meet its working capital
needs, and anticipates this will continue in the near term. However, the
Company currently has a revolving line of credit with NBD Bank under which
it can draw up to $3 million, subject to the availability of collateral.
This line of credit is primarily secured by receivables and inventory, and
may be used to finance the additional working capital requirements of the
Company. The Company also has other sources of credit with which it can
finance the purchase of fixed assets. The Company believes these sources of
credit combined with cash flow from operations will be sufficient to meet
its foreseeable cash requirements.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company knows of no material litigation involving the Company or
any of its officers or directors.
ITEM 2. CHANGES IN SECURITIES
NONE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The annual meeting of shareholders was held on March 23, 1999. The only
matter submitted to a vote was the re-election of Directors. All
Directors stood for re-election. Over 75% of outstanding shares were
voted, and all Directors were re-elected by at least 99% of the shares
voted.
10
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ITEM 5. OTHER INFORMATION
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A Form 8-K was filed by the Company on April 19, 1999, reporting the
issuance of a press release on that same date that announced the Company's
intent to go private and the filing of a Transaction Statement on Form
13E-3.
11
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
PROFESSIONAL DENTAL
TECHNOLOGIES, INC.
-----------------------------------
(Registrant)
6/9/99 /s/ Frank H. Newton, III
- ----------------------------- -----------------------------------
Date Frank H. Newton, III
Chief Operating Officer
6/9/99 /s/ Richard L. Land
- ----------------------------- -----------------------------------
Date Richard L. Land
Vice President & Controller
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-START> NOV-01-1998
<PERIOD-END> APR-30-1999
<CASH> 1,757
<SECURITIES> 0
<RECEIVABLES> 2606
<ALLOWANCES> 83
<INVENTORY> 2,550
<CURRENT-ASSETS> 7,560
<PP&E> 5,824
<DEPRECIATION> 3,129
<TOTAL-ASSETS> 10,386
<CURRENT-LIABILITIES> 3,072
<BONDS> 0
0
0
<COMMON> 141
<OTHER-SE> 6,193
<TOTAL-LIABILITY-AND-EQUITY> 10,386
<SALES> 13,879
<TOTAL-REVENUES> 13,879
<CGS> 5,848
<TOTAL-COSTS> 7,094
<OTHER-EXPENSES> (8)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 92
<INCOME-PRETAX> 853
<INCOME-TAX> 340
<INCOME-CONTINUING> 513
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 513
<EPS-BASIC> .05
<EPS-DILUTED> .05
</TABLE>
