UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-QSB
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(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 1998
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________ to _________
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Commission File Number: 0-26462
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PERCON INCORPORATED
(Exact name of small business issuer as specified in its charter)
91-1486560
Washington (IRS Employer
(State of Incorporation) Identification No.)
1720 Willow Creek Circle, Suite 530
Eugene, OR 97402-9171
(Address of principal executive offices)
Registrant's telephone number, including area code (541) 344-1189
Not Applicable
(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 [ ]
------------
The number of shares of common stock outstanding
as of August 6, 1998: 4,013,181
1
<PAGE>
PERCON INCORPORATED and SUBSIDIARIES
FORM 10-QSB
June 30, 1998
INDEX
Page
PART I - FINANCIAL INFORMATION Reference
- --------------------------------------------------------------------------------
Item 1 - Financial Statements
Consolidated Balance Sheets as of
June 30, 1998 and December 31, 1997. 3
Consolidated Statements of Income for the
three months and six months ended June 30, 1998 and 1997. 4
Consolidated Statements of Cash Flows for the
six months ended June 30, 1998 and 1997. 5
Notes to Consolidated Financial Statements 6 - 7
Item 2 - Management's Discussion and Analysis or Plan of Operation 8 - 11
PART II - OTHER INFORMATION
Item 4 - Submission of Matters to a Vote of Security Holders 12
Item 5 - Other Information 13
Item 6 - Exhibits and Reports on Form 8-K 13
Signature 14
2
<PAGE>
<TABLE>
<CAPTION>
PERCON INCORPORATED
Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited) (Audited)
June 30, December 31,
1998 1997
------------- -------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 3,313 $ 1,884
Accounts receivable, net 5,986 6,199
Inventories 4,370 4,497
Prepaid expenses and other 648 501
Income Taxes Receivable 68
Deferred income tax asset 160 174
------------- -------------
Total current assets 14,545 13,255
Property and equipment, net 2,585 2,542
Goodwill and intangibles, net 1,391 1,557
------------- -------------
Total assets $ 18,521 $ 17,354
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 91 $ 89
Accounts payable 1,660 1,604
Accrued expenses 826 865
Deferred revenue 88 38
Income taxes payable 207
------------- -------------
Total current liabilities 2,665 2,803
Deferred income taxes 365 448
Long-term debt, less current portion 699 755
Other 28 24
------------- -------------
Total liabilities 3,757 4,030
------------- -------------
Shareholders' equity:
Common stock, no par value, 20,000,000 shares authorized,
4,007,971 and 3,976,061 shares issued and
outstanding, respectively 9,201 9,003
Preferred stock, 5,000,000 shares authorized,
none issued
Cumulative translation adjustment (329) (435)
Retained earnings 5,892 4,756
------------- -------------
Total shareholders' equity 14,764 13,324
------------- -------------
Total liabilities and shareholders' equity $ 18,521 $ 17,354
============= =============
See accompanying notes.
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
PERCON INCORPORATED
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales $ 7,093 $ 6,751 $ 14,151 $ 12,784
Cost of goods sold 3,794 3,260 7,404 6,097
------------ ------------ ------------ ------------
Gross profit 3,299 3,491 6,747 6,687
Operating Expenses:
Selling, marketing and customer service 1,418 1,108 2,643 2,181
General and administrative 765 614 1,439 1,189
Research and product development 459 507 860 1,006
------------ ------------ ------------ ------------
Operating income 657 1,262 1,805 2,311
Interest and other income (expense), net 20 (27) 22 (36)
------------ ------------ ------------ ------------
Income before taxes 677 1,235 1,827 2,275
Provision for income taxes 267 434 691 798
------------ ------------ ------------ ------------
Net income $ 410 $ 801 $ 1,136 $ 1,477
============ ============ ============ ============
Net income per share - Basic $ 0.10 $ 0.20 $ 0.28 $ 0.37
============ ============ ============ ============
Net income per share - Diluted $ 0.10 $ 0.20 $ 0.28 $ 0.36
============ ============ ============ ============
Weighted average shares outstanding - Basic 3,998 3,962 4,003 3,961
============ ============ ============ ============
Weighted average shares outstanding - Diluted 4,062 4,064 4,099 4,090
============ ============ ============ ============
See accompanying notes.
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
PERCON INCORPORATED
Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
Six Months Ended
June 30,
1998 1997
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net Income $ 1,136 $ 1,477
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization 597 549
Deferred income taxes (69) (28)
Change in operating assets and liabilities, net of effects
from acquisition of business:
Accounts receivable 1,509 (1,340)
Inventories 109 (729)
Prepaid expenses and other (104) 128
Accounts payable and accrued expenses (1,550) (671)
------------- -------------
Net cash provided by (used in) operating activities 1,628 (614)
------------- -------------
Cash flows from investing activities:
Equipment purchases (477) (365)
Purchase of technology (12) (46)
------------- -------------
Net cash used in investing activities (489) (411)
------------- -------------
Cash flows from financing activities:
Principal paid on long-term debt (46) (46)
Proceeds from stock issued 257 25
Tax benefit from exercise or early disposition
of certain stock options 77 0
------------- -------------
Net cash provided by (used in) financing activities 288 (21)
------------- -------------
Effect of exchange rate changes on cash 2 (19)
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Net increase (decrease) in cash and cash equivalents 1,429 (1,065)
Cash and cash equivalents at beginning of period 1,884 1,601
------------- -------------
Cash and cash equivalents at end of period $ 3,313 $ 536
============= =============
Supplemental disclosure:
Interest paid $ 39 $ 46
Taxes paid $ 1,016 $ 1,036
See accompanying notes.
</TABLE>
5
<PAGE>
PERCON INCORPORATED and SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles Of Consolidation
The consolidated financial statements include the accounts of Percon
Incorporated ("Percon" or the "Company") and its wholly owned subsidiaries. All
significant intercompany transactions and balances have been eliminated in
consolidation.
Basis Of Reporting
The accompanying interim consolidated financial statements have been prepared by
the Company and in the opinion of management contain all adjustments, consisting
only of normal recurring adjustments, necessary to present fairly the Company's
financial position as of June 30, 1998, the results of operations for the three
and six months ended June 30, 1998 and 1997, and cash flows for the six months
ended June 30, 1998 and 1997. It should be understood that accounting
measurements at interim dates inherently involve greater reliance on estimates
than at year end. The results of operations for the six months ended June
30,1998 are not necessarily indicative of the results to be expected for the
full year.
The accompanying interim financial statements should be read in conjunction with
the audited financial statements and notes thereto included in the Company's
annual report on Form 10-KSB for the year ended December 31, 1997.
New Accounting Pronouncements
In June 1997, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standards (SFAS) No. 130, "Reporting Comprehensive
Income." SFAS No. 130 establishes requirements for disclosure of comprehensive
income and becomes effective for the Company's year ending December 31, 1998.
Comprehensive income includes such items as foreign currency translation
adjustments and unrealized gains and losses on securities available-for-sale
that are currently included as a component of stockholder's equity. The
following table presents the unaudited pro forma comprehensive income amounts
under the new standard:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
(In thousands) June 30, June 30,
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net Income $ 410 $ 801 $ 1,136 $ 1,477
Other Comprehensive Income Net of Tax
Foreign Currency Translation Adjustment 121 (75) 65 (216)
---------- ---------- ---------- ----------
Comprehensive Income $ 531 $ 726 $ 1,201 $ 1,261
========== ========== ========== ==========
</TABLE>
In June 1997 FASB issued SFAS No. 131, "Disclosures About Segments of an
Enterprise and Related Information," which requires disclosure of information
and key revenue producing segments of an entity. The Company believes that SFAS
No. 131 will not affect financial reporting because the Company and its wholly
owned subsidiary's products, services, and customer base are fundamentally
similar in nature and disaggregation would not be an accurate indication as to
how the Company makes management decisions.
6
<PAGE>
PERCON INCORPORATED and SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, Continued
(Unaudited)
In February 1998 FASB issued SFAS No. 132, "Employers' Disclosures about
Pensions and Other Postretirement Benefits" which revises employers' disclosures
about pension and other postretirement benefit plans. Management believes they
are in compliance with the new standard.
Reclassifications
Certain prior-period amounts have been reclassified to conform with the June 30,
1998 presentation. Such reclassifications did not affect previously reported net
income or cash flows.
2. INVENTORIES
Inventories are stated at the lower of cost (methods which approximate the
first-in, first-out method) or market. Inventory costs include materials, labor,
and overhead and consist of the following:
(In thousands) June 30, 1998 December 31, 1997
------------- -----------------
Materials $ 2,400 $ 2,548
Finished goods 1,970 1,949
--------- ---------
$ 4,370 $ 4,497
========= =========
3. STOCK OPTIONS
During the first six months of 1998, the Company granted options to purchase an
aggregate of 89,000 shares of common stock at an average price of $11.61 per
share. The exercise prices are equal to the Company's market price on the date
of grant.
4. COMMITMENTS AND CONTINGENCIES
The Company leases certain facilities and land under non-cancelable operating
leases. The lease for the Company's headquarters expires in September 1998. In
December 1997, the Company signed a ten year non-cancelable lease for a new
headquarters facility, which contains a five year lease extension option. The
beginning of the new lease coincides with the termination of the existing lease.
The lease contains provisions for the Company to pay certain ongoing costs, such
as property taxes, insurance and support costs, which are not reflected in the
minimum lease payments totaling approximately $5.5 million. The Company expects
to sublease certain portions of the new facility as permitted under the lease
agreement.
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATION
(Unaudited)
Percon develops, manufactures and markets bar code reading products, including
radio frequency (RF) and batch portable data terminals, fixed station and
integrated decoders, hand-held laser scanners, and data management application
software, for the worldwide automatic identification and data collection (Auto
ID) market. The Company also markets bar code input devices manufactured by
others for use with the Company's fixed station decoders and portable data
terminals. The Company's products provide a rapid, accurate and efficient means
to collect, process, transmit and record data. The Company's products are used
in a variety of industries including education, retail, warehousing and
distribution, package delivery, manufacturing, healthcare and other
point-of-service applications.
The Company markets its products through a network of Auto ID distributors,
value added resellers (VARs) and systems integrators, which allows the Company's
products to reach small and mid-size end users cost effectively. In addition,
Percon markets its products to mid-size and large end users through its
strategic relationships as an original equipment manufacturer (OEM) with other
sales organizations. The Company also distributes its products internationally
primarily through VARs in Europe, Latin America and Asia.
The statements in this report concerning research and product development,
future staffing, the Year 2000 issue and working capital requirements constitute
forward-looking statements that are subject to risks and uncertainties. Factors
that could materially increase the Company's research and development expense
and affect the Company's planned development of new products include, but are
not limited to, competitive market pressures (including increased competition,
new product offerings by competitors and price pressures) and the availability
of appropriate resources, the availability of third party parts and supplies at
reasonable prices, changes in proposed product mix, and technological
difficulties and resource constraints encountered in developing new products, as
well as unfavorable business conditions and disruptions in the Auto ID industry
and general economy. Factors that could materially affect the Company's plans to
hire additional personnel include, but are not limited to, competition for such
personnel and the Company's ability to hire and retain qualified personnel.
Factors that could materially affect the Year 2000 issue include, but are not
limited to, unanticipated costs associated with any required modifications to
the Company's information systems, its ancillary systems and associated
software. Factors that could materially affect future working capital
requirements include, but are not limited to, the industry factors and general
business conditions noted above.
The following discussion and analysis should be read in conjunction with the
Consolidated Financial Statements and Notes to Consolidated Financial Statements
of the Company's annual report on Form 10-KSB for the year ended December 31,
1997.
Results of Operations
Comparison of the Three Months and Six Months Ended June 30, 1998 and 1997
Net Sales
Net sales for the three months ended June 30, 1998 increased $342,000 (5.1%) to
$7.1 million from $6.8 million for the three months ended June 30, 1997. Net
sales for the six months ended June 30, 1998 increased $1.4 million (10.7%) to
$14.2 million from $12.8 million for the six months ended June 30, 1997. These
increases were primarily due to increased sales volume of the Company's portable
products. International sales represented approximately 37% of net sales for the
three months ended June 30, 1998
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATION, Continued
(Unaudited)
and for the same period in 1997. International sales represented approximately
43% of net sales for the six months ended June 30, 1998 compared to 37% of net
sales for the same period in 1997.
Gross Profit
Gross profit for the three months ended June 30, 1998 decreased $192,000 (5.5%)
to $3.3 million from $3.5 million for the three months ended June 30, 1997,
representing 46.5% and 51.7% of net sales, respectively. Gross profit for the
six months ended June 30, 1998 increased $60,000 (.9%) for the six months ended
June 30, 1997, representing 47.7% and 52.3% of net sales, respectively. The
decrease in gross profit for the three months and six months ended June 30, 1998
was primarily due to the product mix change toward increased portable sales
which have lower gross margin than decoder and software products.
Selling, Marketing and Customer Service Expenses
Selling, marketing and customer service expenses for the three months ended June
30, 1998 increased $310,000 (28.0%) to $1.4 million from $1.1 million for the
three months ended June 30, 1997, representing 20.0% and 16.4% of net sales,
respectively. Selling, marketing and customer service expenses for the six
months ended June 30, 1998 increased $462,000 (21.2%) to $2.6 million from $2.2
million for the six months ended June 30, 1997, representing 18.7% and 17.1% of
net sales, respectively. These increases primarily resulted from increases in
sales and marketing personnel and activities to support growth in net sales.
General and Administrative Expenses
General and administrative expenses for the three months ended June 30, 1998
increased $151,000 (24.6%) to $765,000 from $614,000 for the three months ended
June 30, 1997, representing 10.8% and 9.1% of net sales, respectively. General
and administrative expenses for the six months ended June 30, 1998 increased
$250,000 (21.0%) to $1.4 million from $1.2 million for the six months ended June
30, 1997, representing 10.2% and 9.3% of net sales, respectively. These
increases were primarily due to increased building rental expense, legal fees
associated with reducing manufacturing staff in Europe and U.S. trademark
filings.
Research and Product Development Expenses
Research and product development expenses for the three months ended June 30,
1998 decreased $48,000 (9.5%) to $459,000 from $507,000 for the three months
ended June 30, 1997, representing 6.5% and 7.5% of net sales, respectively.
Research and product development expenses for the six months ended June 30, 1998
decreased $146,000 (14.5%) to $860,000 from $1.0 million for the six months
ended June 30, 1997, representing 6.1% and 7.9% of net sales, respectively. The
decreases were a result of reorganization within the engineering group. This
reorganization allowed the Company to focus additional resources on development
of new portable data terminal (PDT) products. These expenses are expected to
remain relatively stable for the remainder of the year.
9
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATION, Continued
(Unaudited)
Provision for Income Taxes
The provision for income taxes for the three months ended June 30, 1998 was
$267,000, which represents an effective tax rate of 39.4%. The provision for
income taxes for the six months ended June 30, 1998 was $691,000, which
represents an effective tax rate of 37.8%. Items which cause these rates to
differ from the U.S. federal statutory rate of 34% include state and
international taxes and benefits from domestic and foreign research credits and
the Company's foreign sales corporation. The provision for income taxes for the
three months ended June 30, 1997 was $434,000, which represents an effective tax
rate of 35.1%. The provision for income taxes for the six months ended June 30,
1997 was $798,000, which represents an effective tax rate of 35.1%. These
increases in the effective tax rate are primarily related to increased foreign
tax rates.
Year 2000 Compliance
The Company has completed a preliminary analysis of the impact of the Year 2000
issue on its information systems. At this stage, the Company believes its
enterprise management information system addresses the Year 2000 issues on all
core Company business systems. The Company has other ancillary systems, however,
that may require modification to address the Year 2000 issue. In place is a plan
to comprehensively evaluate the entire information infrastructure of the Company
by year end 1998. It is the goal of this plan to quantify and qualify the level
of actual exposure present, the associated costs, and the timeline needed for
complete inoculation. The Company has not thoroughly analyzed the impact of
other parties' computer system failures, but the objective evaluation of key
suppliers and customers is present in the existing evaluation plan yet to be
completed. The Company believes costs incurred in responding to other parties'
Year 2000 computer system failures, together with the cost of any required
modifications to the Company's ancillary systems, will not have a material
impact on the Company's business, results of operations or financial condition.
Liquidity and Capital Resources
The Company primarily financed its operations during the six months ended June
30, 1998 through cash from operations and current cash balances.
The Company's domestic line of credit permits it to borrow up to 80% of eligible
accounts receivable and 25% of eligible inventory (as defined by the banking
agreement) to a maximum of $1.0 million. Outstanding principal amounts
thereunder bear interest at the Bank's prime rate, which was 8.5% at June 30,
1998. No amounts were outstanding under the line of credit at June 30, 1998. The
Company also has line of credit and short-term borrowing arrangements with two
foreign banks that permit additional borrowing up to an aggregate of 1,300,000
French Francs (approximately $220,000 at June 30, 1998). These facilities bear
interest at the banks' current rates, which were 8.1% and 10.1%, respectively,
at June 30, 1998. No amounts were outstanding under either of these facilities
at June 30, 1998.
Net cash provided by operations was $1.6 million for the six months ended June
30, 1998 compared to cash used in operations of $614,000 for the six months
ended June 30, 1997. Significant changes for the six months ended June 30, 1998
included non-cash charges for amortization and depreciation along with decreases
in accounts receivable, accounts payable and accrued expenses.
10
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OR PLAN OF OPERATION, Continued
(Unaudited)
For the six months ended June 30, 1998, net cash used in investing activities
totaled $489,000 compared to $411,000 for the six months ended June 30, 1997.
The Company made capital expenditures of $477,000 for the six months ended June
30, 1998 compared to $365,000 for the six months ended June 30, 1997.
During the six months ended June 30, 1998, net cash provided by financing
activities totaled $288,000. Cash from financing activities was primarily
provided through proceeds from stock issued upon exercise of stock options and
tax benefits from disqualifying dispositions of incentive stock options. During
the six months ended June 30, 1997, net cash used in financing activities
totaled $21,000. Cash used in financing activities was primarily related to the
repayment of foreign long-term bank debt.
The Company's current cash balances, together with the borrowings available
under its line of credit agreements and cash generated from operations, are
expected to be sufficient to meet the Company's liquidity requirements for at
least the next 12 months. There is no assurance that additional financing will
be available if required or on terms deemed favorable by the Company.
11
<PAGE>
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
On May 22, 1998 at the Company's Annual Meeting, the holders of the Company's
outstanding Common Stock took the action described below. At May 22, 1998,
4,012,271 shares of Common Stock were outstanding and eligible to vote at the
Annual Meeting.
1. The shareholders elected each of Michael P. Coughlin, Andy J. Storment,
Arlen I. Prentice, Donald K. Skinner, and Dana E. Siebert to the Company's
Board of Directors, by the votes indicated below, to serve for the ensuing
year.
Michael P. Coughlin
-------------------
3,411,513 shares in favor
134,480 shares against or withheld
0 abstentions
0 broker non-votes
Andy J. Storment
----------------
3,412,543 shares in favor
133,450 shares against or withheld
0 abstentions
0 broker non-votes
Arlen I. Prentice
-----------------
3,413,543 shares in favor
132,450 shares against or withheld
0 abstentions
0 broker non-votes
Donald K. Skinner
-----------------
3,412,543 shares in favor
133,450 shares against or withheld
0 abstentions
0 broker non-votes
Dana E. Siebert
---------------
3,413,543 shares in favor
132,450 shares against or withheld
0 abstentions
0 broker non-votes
2. The shareholders approved, by the vote indicated below, an amendment to the
Company's 1995 Stock Incentive Plan (the "Plan") to increase the number of
authorized shares of Common Stock available under the Plan from 500,000
shares to 600,000 shares.
3,314,898 shares in favor
216,734 shares against or withheld
14,361 abstentions
0 broker non-votes
12
<PAGE>
Item 5. Other Information
In accordance with amendments adopted on May 21, 1998 to Rule 14a-4 under
the Securities Exchange Act of 1934, if notice of a shareholder proposal to be
raised at the annual meeting of shareholders is received at the principal
executive offices of the Company after February 27, 1999 (45 days prior to the
month and date in 1999 corresponding to the date on which the Company mailed its
proxy materials for the 1998 annual meeting), proxy voting on that proposal when
and if raised at the 1999 annual meeting will be subject to the discretionary
voting authority of the designated proxy holders. Any shareholder proposal to be
considered for inclusion in proxy materials for the Company's 1999 annual
meeting must be received at the principal executive offices of the Company no
later than December 14, 1998.
Item 6. Exhibits and Reports on Form 8-K
Exhibits
27.1 Financial Data Schedule
Reports on Form 8-K
None
13
<PAGE>
SIGNATURES
----------
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
PERCON INCORPORATED
by: /s/ JASON DAVIS
------------------------------
Jason Davis
Chief Financial Officer
(Principal Financial and Accounting Officer)
Dated: August 12, 1998
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated balance sheet of Percon Incorporated and Subsidiaries as of June 30
1998 and the related consolidated statements of income and cash flows for the
six months in the period ended June 30 1998 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 3,313
<SECURITIES> 0
<RECEIVABLES> 6,072
<ALLOWANCES> 86
<INVENTORY> 4,370
<CURRENT-ASSETS> 14,545
<PP&E> 4,604
<DEPRECIATION> (2,019)
<TOTAL-ASSETS> 18,521
<CURRENT-LIABILITIES> 2,665
<BONDS> 699
0
0
<COMMON> 9,201
<OTHER-SE> 5,563
<TOTAL-LIABILITY-AND-EQUITY> 18,521
<SALES> 14,151
<TOTAL-REVENUES> 14,151
<CGS> 7,404
<TOTAL-COSTS> 7,404
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 22
<INCOME-PRETAX> 1,827
<INCOME-TAX> 691
<INCOME-CONTINUING> 1,136
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,136
<EPS-PRIMARY> 0.28
<EPS-DILUTED> 0.28
</TABLE>
