FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended August 3, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________ to __________
Commission file number: 0-23574
PETCO ANIMAL SUPPLIES, INC.
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Delaware 33-0479906
9125 Rehco Road
San Diego, CA 92121
(619) 453-7845
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 ___
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date.
Title Date Outstanding
Common Stock, $.0001 Par Value September 13, 1996 16,317,878
PETCO Animal Supplies Inc.
Index
Part I Financial Information Page
Item 1. Consolidated Financial Statements
Consolidated Balance Sheets at February 3, 1996 and August 3, 1996 3
Consolidated Statements of Operations for the thirteen and twenty-six weeks
ended July 29, 1995 and August 3, 1996 4
Consolidated Statement of Stockholders' Equity for the twenty-six weeks
ended August 3, 1996 5
Consolidated Statements of Cash Flows for the twenty-six weeks ended
July 29, 1995 and August 3, 1996 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 8
Part II Other Information
Item 6. Exhibits and Reports on Form 8-K 11
Signatures 12
PETCO ANIMAL SUPPLIES, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands, except shares)
<TABLE>
<S> <C> <C>
February 3,1996 August 3,1996
ASSETS
Current assets:
Cash and cash equivalents $ 9,834 $ 52,232
Receivables 4,545 4,526
Inventories 45,363 54,699
Other current assets 718 993
Total current assets 60,460 112,450
Fixed assets, net 57,941 71,610
Goodwill 31,767 38,095
Deferred tax assets 10,521 12,777
Other assets 1,426 1,696
$ 162,115 $ 236,628
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 25,592 $ 22,035
Accrued expenses 12,520 14,610
Accrued salaries and employee benefits 5,186 5,061
Revolving credit facility _ _
Current portion of capital
lease and other obligations 2,748 3,941
Total current liabilities 46,046 45,647
Capital lease and other obligations,
excluding current portion 11,522 12,619
Accrued store closing costs 4,804 7,126
Deferred rent 3,463 2,010
Stockholders' equity:
Preferred stock, $.0001 par value,
2,000,000 shares authorized,
no shares issued and outstanding - -
Common stock, $.0001 par value,
100,000,000 shares authorized,
13,381,673 and 16,317,066 shares
issued and outstanding, respectively 1 2
Additional paid-in capital 131,407 210,485
Accumulated deficit (35,128) (41,261)
Total stockholders' equity 96,280 169,226
Commitments and contingencies
$ 162,115 $ 236,628
</TABLE>
See accompanying notes to consolidated financial statements
PETCO ANIMAL SUPPLIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share data)
<TABLE>
<S> <C> <C> <C> <C>
Thirteen weeks ended Twenty-six weeks ended
July 29,1995 August 3,1996 July 29,1995 August 3,1996
Net sales $ 63,301 $ 103,571 $ 122,512 $ 197,272
Cost of sales and occupancy costs 47,797 76,729 93,151 147,764
Gross profit 15,504 26,842 29,361 49,508
Selling, general, and
administrative expenses 13,219 22,509 25,531 42,787
Merger and nonrecurring charges -- 14,945 -- 14,945
Operating income (loss) 2,285 (10,612) 3,830 (8,224)
Interest income (expense) 302 258 79 (88)
Earnings (loss) before income taxes 2,587 (10,354) 3,909 (8,312)
Income taxes (benefits) 779 (3,304) 1,177 (2,395)
Net earnings (loss) $ 1,808 $ (7,050) $ 2,732 $ (5,917)
Net earnings (loss) per
common and common equivalent share $ 0.14 $ (0.43) $ 0.24 $ (0.40)
Weighted average number of common
and common equivalent shares
outstanding 13,125,074 16,224,355 11,443,860 14,874,304
</TABLE>
See accompanying notes to consolidated financial statements
PETCO ANIMAL SUPPLIES, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(unaudited, in thousands, except share data)
<TABLE>
<C> <C> <C> <C> <C> <C>
Common Stock
Shares Amount Additional Accumulated Total
Paid-in Capital Deficit Stockholders' Equity
Balances at
February 3, 1996 13,381,673 $ 1 $ 131,407 $ (35,128) $ 96,280
Sale of common stock 2,892,758 1 78,633 -- 78,634
Exercise of options 42,289 - 437 -- 437
Issuance of stock for services 515 - 13 -- 13
Retirement of stock (169) - (5) -- (5)
Distributions to shareholders -- - -- (216) (216)
Net loss -- - -- (5,917) (5,917)
Balances at August 3, 1996 16,317,066 $ 2 $ 210,485 $ (41,261) $ 169,226
</TABLE>
See accompanying notes to consolidated financial statements
PETCO ANIMAL SUPPLIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
<TABLE>
<S> <C>
Twenty-six Weeks Ended
July 29, 1995 August 3,1996
Cash flows from operating activities:
Net earnings $ 2,732 $ (5,917)
Depreciation and amortization 3,178 6,414
Deferred taxes -- (2,256)
Other 10 270
Changes in assets and liabilities:
Receivables (136) 19
Inventories (3,344) (9,336)
Other current assets (320) (275)
Accounts payable (4,224) (3,557)
Accrued expenses (39) 2,090
Accrued salaries and employee benefits (1,197) (125)
Accrued store closing costs (124) 2,322
Deferred rent 228 (1,453)
Net cash used in operating activities (3,236 (11,804)
Cash flows from investing activities:
Additions to fixed assets (13,936) (16,003)
Net cash invested in acquisitions of businesses (2,375) (7,788)
Net cash used in investing activities (16,311) (23,791)
Cash flows from financing activities:
Repayment of capital lease and other obligations (482) (870)
Proceeds from the issuance of common stock 46,859 79,079
Distributions to shareholders -- (216)
Net cash provided by financing activities 46,377 77,993
Net increase in cash and cash equivalents 26,830 42,398
Cash and cash equivalents at beginning of year 6,956 9,834
Cash and cash equivalents at end of period $ 33,786 $ 52,232
</TABLE>
See accompanying notes to financial statements
PETCO ANIMAL SUPPLIES, INC.
Notes to Consolidated Financial Statements
Note 1 - General
In the opinion of management of Petco Animal Supplies, Inc. ("the Company"),
the unaudited consolidated financial
statements contain all adjustments, consisting of normal recurring adjustments
, necessary to present the financial
position, results of operations and cash flows as of and for the periods ended
August 3, 1996. Because of the seasonal
nature of the Company's business, the results of operations for the thirteen
and twenty-six weeks ended July 29, 1995
and August 3, 1996, are not necessarily indicative of the results to be expe
cted for the full year. For further information,
refer to the consolidated financial statements and footnotes thereto for the
fiscal year ended February 3, 1996 included in
the Company's Form 10-K Annual Report (File No. 0-23574) filed with the
Securities and Exchange Commission on
April 27, 1996.
Note 2 - Acquisitions
In March 1996, the Company assumed lease obligations and purchased
all tangible personal property and inventory used
in connection with eight pet food and supply stores
located in Maryland and Virginia and operated under
the trade name P.T. Moran ("P.T. Moran").
In July 1996, the Company acquired all of the outstanding equity securities of
a retailer with eight pet food and supply
stores located in New York, New Jersey and
Connecticut and operated under the trade name Pet Nosh ("Pet Nosh") for
an aggregate consideration of 645,533 shares of common stock. The
transaction was accounted for as a pooling of
interests and, therefore, all prior period
financial statements presented have been restated to reflect this acquisition.
Prior to the acquisition, Pet Nosh used a December 31 fiscal year end
while the Company's fiscal year ends on the
Saturday nearest January 31. The restated
financial statements combine historical financial statements of the Company
for the fiscal year ended February 3, 1996,
with the historical financial statements of Pet Nosh for the fiscal year ended
December 31, 1995. Accordingly, the second quarter ended August 3, 1996
consists of thirteen weeks of operating
results of the Company and four months of operating results of Pet Nosh.
Distributions to shareholders reflected in the accompanying Consolidated
Statement of Stockholders' Equity are related
to activities of acquired businesses.
As a result of the acquisition of P.T. Moran, Pet
Nosh and leases for four former Herman's Sporting Goods locations,
the Company recorded merger and nonrecurring charges of $14.9
million during the thirteen weeks ended August 3,
1996. These charges included transaction costs,
costs attributable to lease cancellation and closure of duplicate or
inadequate facilities, facility conversion costs, cancellation of
certain contractual obligations and other integration costs.
Note 3 - Net Earnings (Loss) Per Share
Net earnings (loss) per common and common equivalent
share are computed by dividing net earnings (loss) by the
weighted average number of common and common equivalent
shares outstanding during the period.
For the thirteen and twenty-six weeks ended July 29, 1995 and
August 3, 1996, common share equivalents were not
included as their effects would not be materially dilutive.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
General
The Company currently utilizes both superstore and traditional store
formats and follows a strategy of converting and
expanding its store base from a traditional store format to a superstore
format. As a result of this strategy, the Company
has opened and acquired superstores, has expanded,
remodeled, and relocated traditional stores into superstores,
collectively referred to as conversions, and has closed
underperforming stores. At August 3, 1996, the Company
operated 274 stores, including 206 superstores, in
fifteen states and the District of Columbia. At July 29, 1995, the
Company operated 231 stores, of which 139 were superstores.
As a result of the Company's plan to open approximately
40 to 50 superstores this year, including conversions of
existing traditional stores into superstore formats, the
Company anticipates certain costs to increase as a percentage of
sales in the near term. In addition, the timing of new superstore
openings and related preopening expenses and the
amount of revenue contributed by new and existing
superstores may cause the Company's quarterly results of operations
to fluctuate. The Company expects continued downward pressure on
its gross profit as a percentage of sales from higher
occupancy costs in new stores and increased competitive
pressures in certain markets. This trend should be offset,
however, by increased sales from maturing stores and the
benefit of expanded merchandise assortments in existing
stores. Increased payroll, advertising and other store
level expenses as a percentage of sales in new stores should also
contribute to lower store operating margins. In addition, the
Company charges preopening costs associated with each
new superstore to earnings as incurred. Therefore,
the Company expects that the opening of a large number of new
superstores in a given quarter may adversely impact its
quarterly results of operations for that quarter.
In March 1996, the Company acquired eight P.T. Moran
stores and in July 1996 acquired eight Pet Nosh stores. The
Company is in the process of integrating the merchandise mix,
and operating and marketing philosophies into the
Company format of superstores. Although the Company
does not expect the results of the P.T. Moran and Pet Nosh
stores to be dilutive on its fiscal 1996 operating results,
there can be no assurances these stores can achieve their
anticipated profitability.
The Company's business is also subject to
some seasonal fluctuations. Historically, the Company has realized a higher
portion of its net sales during the month of December
and a lower portion of its net sales in other winter months and fall
than during the other months of the year.
Results of Operations
Second Quarter 1996 Compared to Second Quarter 1995
Net sales increased 63.7% to $103.6 million for
the thirteen weeks ended August 3, 1996, ("second quarter 1996") from
$63.3 million for the thirteen weeks ended July 29, 1995, ("second
quarter 1995"). The increase in net sales in second
quarter 1996 resulted primarily from the addition of
80 superstores, including the conversion of 26 traditional stores into
superstores, and partially offset by the closing of nine stores in
the past year, and a comparable store net sales increase
of 18.3%. The comparable store net sales increase was
attributable to maturing superstores, more effective marketing
efforts and expanded merchandise assortments in existing stores.
The net increase in the Company's store base
accounted for approximately $29.4 million, or
73.0% of the net sales increase, and $10.9 million, or 27.0% of the net
sales increase, was attributable to the increase in comparable
store net sales.
Gross profit, defined as net sales less cost of
sales including occupancy costs, increased $11.3 million or 72.9% to $26.8
million in second quarter 1996 from $15.5 million
in second quarter 1995. Gross profit as a percentage of net sales
increased to 25.9% in second quarter 1996 from 24.5% in second
quarter 1995 primarily due to lower distribution
expenses related to the more efficient operation
of the Company's central distribution facility during the current period.
Selling, general and administrative expenses
increased $9.3 million, or 70.5%, to $22.5 million in second quarter 1996
compared to $13.2 million in second quarter 1995. Selling, general
and administrative expenses increased primarily as
a result of higher personnel and related costs
associated with new store openings and acquisitions. As a percentage of
net sales, these expenses increased to 21.7% in second quarter 1996
from 20.9% in second quarter 1995 primarily due to
increased amortization of goodwill.
Merger and nonrecurring charges of $14.9
million were recorded in second quarter 1996 following the acquisition of
P.T. Moran, Pet Nosh and the former Herman's Sporting Goods locations.
Operating loss of $10.6 million was incurred
in second quarter 1996, reflecting the $14.9 million in merger and
nonrecurring charges, compared to operating income of $2.3 million
in second quarter 1995. Operating income,
excluding the merger and nonrecurring charges,
on a comparable basis, increased 87.0% to $4.3 million in second
quarter 1996 from $2.3 million in second quarter 1995 and increased
as a percentage of net sales to 4.2% in second
quarter 1996 from 3.6% in second quarter 1995.
Net interest income was $0.3 million in
both second quarter 1996 and second quarter 1995.
Income tax benefits were $3.3 million in second quarter 1996,
primarily due to the merger and nonrecurring charges,
compared to income taxes of $0.8 million in second quarter 1995.
Net loss of $7.0 million was incurred for second quarter 1996,
reflecting the merger and nonrecurring charges and
related income tax benefits, compared to net earnings of $1.8
million for the prior year quarter. Net earnings,
excluding merger and nonrecurring charges and
related income tax benefits, on a comparable basis, increased 50.0% to
$2.7 million, or $0.17 per share, for second quarter 1996 compared to
net earnings of $1.8 million, or $0.14 per share,
for second quarter 1995.
Twenty-six Weeks Ended August 3, 1996
Compared to Twenty-six Weeks Ended July 29, 1995
Net sales increased 61.1% to $197.3 million for the
twenty-six weeks ended August 3, 1996 from $122.5 million for the
twenty-six weeks ended July 29, 1995. The increase in net sales
resulted primarily from the addition of 80 superstores,
including the conversion of 26 traditional stores into superstores,
and partially offset by the closing of nine stores in the
past year, and a comparable store net sales increase of 18.3%.
The comparable store net sales increase was attributable
to maturing superstores, more effective marketing efforts and
expanded merchandise assortments in existing stores. The
net increase in the Company's store base accounted for
approximately $53.6 million, or 71.7% of the net sales increase,
and $21.2 million, or 28.3% of the net sales increase, was
attributable to the increase in comparable store net sales.
Gross profit increased $20.1 million or 68.4% to $49.5 million for the
twenty-six weeks ended August 3, 1996 from
$29.4 million for the same period last year.
Gross profit as a percentage of net sales increased to 25.1% for the twenty-
six weeks ended August 3, 1996 from 24.0% for the twenty-six weeks ended
July 29, 1995 primarily due to lower
distribution expenses related to the
more efficient operation of the Company's central distribution facility
during the
current period.
Selling, general and administrative expenses
increased $17.3 million, or 67.8%, to $42.8 million for the twenty-six
weeks ended August 3, 1996 compared to $25.5 million for the same period
last year. Selling, general and
administrative expenses increased primarily
as a result of higher personnel and related costs associated with new store
openings and acquisitions. As a percentage of net sales,
these expenses increased to 21.7% for the twenty-six weeks
ended August 3, 1996 from 20.8% for the twenty-six weeks
ended July 29, 1995 primarily due to increased amortization
of goodwill.
Merger and nonrecurring charges of $14.9 million were
recorded in the twenty-six weeks ended August 3, 1996
following the acquisition of P.T. Moran, Pet Nosh, and
the former Herman's Sporting Goods locations.
Operating loss of $8.2 million was incurred
in the twenty-six weeks ended August 3, 1996, reflecting the $14.9 million
in merger and nonrecurring charges, compared to
operating income of $3.8 million in the prior year. Operating income,
excluding the merger and nonrecurring charges, on a
comparable basis, increased 76.3% to $6.7 million for the twenty-
six weeks ended August 3, 1996 from $3.8 million for the
twenty-six weeks ended July 29, 1995 and increased as a
percentage of net sales to 3.4% for the twenty-six weeks
ended August 3, 1996 from 3.1% for the same period last year.
Net interest expense was $0.1 million for
the twenty-six weeks ended August 3, 1996 compared to net interest income of
$0.1 million for the same period last year.
Income tax benefits were $2.4 million in the twenty-six weeks
ended August 3, 1996, primarily due to the merger and
nonrecurring charges recorded in second quarter 1996,
compared to income taxes of $1.2 million in the prior year.
Net loss of $5.9 million was incurred for the
twenty-six weeks ended August 3, 1996, reflecting the merger and
nonrecurring charges and related income tax benefits, compared to
net earnings of $2.7 million for the same period of
the prior year. Net earnings, excluding merger and
nonrecurring charges and related tax benefits, on a comparable
basis, increased 40.7% to $3.8 million, or $0.26 per share, for
the twenty-six weeks ended August 3, 1996 compared to
net earnings of $2.7 million, or $0.24 per share, for the
twenty-six weeks ended July 29, 1995.
Liquidity and Capital Resources
The Company has financed its operations and expansion
program through internal cash flow, external borrowings and
the sale of equity securities. At August 3, 1996, total assets
were $236.6 million, of which $112.5 million were current
assets. Net cash used in operating activities was $11.8
million for the twenty-six weeks ended August 3, 1996 and $3.2
million for the same period of the prior year. The Company's
sales are substantially on a cash basis, therefore cash flow
generated from operating stores provides a source of liquidity
to the Company. The principal use of operating cash is
for the purchase of merchandise inventories. A portion of
the Company's inventory purchases is financed through
vendor credit terms.
The Company uses cash in investing activities to acquire stores,
purchase fixed assets for new and converted stores and,
to a lesser extent, to purchase warehouse and office fixtures,
equipment and computer hardware and software in support
of its distribution and administrative functions. During
the twenty-six weeks ended August 3, 1996 the Company
acquired two retailers of pet food and supplies and during
the twenty-six weeks ended July 29, 1995 the Company
acquired two retailers of pet food and supplies. Net
cash of $7.8 million and $2.4 million, respectively, was invested in
the acquisitions of these businesses. Cash used in investing activities
was $23.8 million for the twenty-six weeks ended
August 3, 1996 and $16.3 million for the same period
of the prior year.
The Company also finances some of its purchases of
equipment and fixtures through capital leases and other obligations.
Purchases of $3.1 million and $2.1 million of fixed assets were financed
in this manner during the twenty-six weeks
ended August 3, 1996 and July 29, 1995, respectively.
The Company believes that additional sources of capital lease
and other financing are available on a cost-effective basis and
plans to use them, as necessary, in connection with its
expansion program.
The Company's primary long-term capital requirement is funding for the
opening or acquisition of superstores and the
conversion of traditional stores into superstores.
During the twenty-six weeks ended August 3, 1996 and July 29, 1995,
net proceeds of $78.6 million and $46.9 million, respectively, were
obtained from public offerings of common stock to
provide funds for the Company's expansion program,
the acquisition of related businesses and for working capital
requirements.
The Company has a revolving credit facility with a commitment of up to
$25.0 million that expires June 2, 1997.
Borrowings under this facility are unsecured and bear interest,
at the Company's option, at either the bank's reference
rate or LIBOR plus 1.0%. The revolving credit facility
contains certain affirmative and negative covenants related to
working capital, net worth, leverage, profitability, capital
expenditures and payment of cash dividends.
As of February 3, 1996, the Company had available net operating
loss carryforwards of $8.5 million for federal income
tax purposes, which begin expiring in 2004, and $1.8 million for
California income tax purposes, which begin expiring
in 1996.
The Company anticipates that available cash and cash equivalents as well
as funds available under the revolving credit
facility, funds generated by operations, currently available vendor financing,
and capital lease and other financing will
be sufficient to finance its continued operations and planned
store openings for at the least the next twelve months.
Certain Cautionary Statements
Certain statements in this Quarterly Report on Form 10-Q
that are not historical fact constitute "forward-looking
statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results of the
Company to be materially different from historical results or
from any results expressed or implied by such forward-
looking statements. These factors are discussed under the caption
"Certain Cautionary Statements" in the Company's
Annual Report on Form 10-K for the year ended February 3, 1996.
Part II. Other Information
Item 4. Submission of Matters to a Vote of Security Holders
(a) The Company held its Annual Meeting of Stockholders on June 26, 1996.
(b) The matters voted upon at
the meeting and the votes cast with respect thereto were as follows:
1. Election of directors.
<TABLE>
<S> <C> <C>
Nominee for Director Votes Cast For Votes Cast Against Votes Withheld Abstentions Broker Non-Votes
Andrew G. Galef 11,205,794 228,182
</TABLE>
2. Proposal to amend the Company's Amended and Restated Certificate of
Incorporation to
increase the Company's authorized common stock from 20,000,000 shares
to 100,000,000 shares.
<TABLE>
<C> <C> <C>
Votes Cast For Votes Cast Against Votes Withheld Abstentions Broker Non-Votes
7,721,851 3,647,401 14,174
</TABLE>
3. Proposal to amend the 1994 Stock Option and Restricted Stock plan for
Executive and Key
Employees of the Company (the "Company Plan") to increase the number of shares
available for issuance under the
Company Plan.
<TABLE>
<C> <C> <C>
Votes Cast For Votes Cast Against Votes Withheld Abstentions Broker Non-Votes
7,256,892 3,473,774 15,639
</TABLE>
Item 6. Exhibits and Reports on Form 8-K
1. Exhibits
(a) 27.1 Financial Data Schedule (filed electronically only)
2. Reports on Form 8-K
(a) The Company filed no reports on Form 8-K during the thirteen weeks ended
August 3, 1996.
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.
PETCO ANIMAL SUPPLIES, INC.
By: /s/ James M. Myers
James M. Myers
Senior Vice President Finance
and Chief Accounting Officer
Date: September 16, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED
BALANCE SHEETS AND CONSOLIDATED STATEMENTS OFOPERATIONS AND IS QUALIFIED IN ITS
ENTIRITY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
Appendix A to Item 601(c) of Regulation S-K Commercial and Industrial Companies
Article 5 of Registration S-X (in thousands except per share data)
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> FEB-03-1997
<PERIOD-END> AUG-04-1996
<CASH> 52,232
<SECURITIES> 0
<RECEIVABLES> 4,526
<ALLOWANCES> 0
<INVENTORY> 54,699
<CURRENT-ASSETS> 112,450
<PP&E> 71,610
<DEPRECIATION> 0
<TOTAL-ASSETS> 236,628
<CURRENT-LIABILITIES> 45,647
<BONDS> 0
0
0
<COMMON> 2
<OTHER-SE> 169,224
<TOTAL-LIABILITY-AND-EQUITY> 236,628
<SALES> 103,571
<TOTAL-REVENUES> 103,571
<CGS> 76,729
<TOTAL-COSTS> 76,729
<OTHER-EXPENSES> 37,454
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (258)
<INCOME-PRETAX> (10,354)
<INCOME-TAX> (3,304)
<INCOME-CONTINUING> (7,050)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (7,050)
<EPS-PRIMARY> (0.43)
<EPS-DILUTED> (0.43)
</TABLE>
