<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
____________
For Quarter Ended July 28, 1996 Commission File Number 1-6395
------------- ------
SEMTECH CORPORATION
---------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 95-2119684
------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
652 Mitchell Road, Newbury Park, California 91320
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (805) 498-2111
--------------------
N/A
- -------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report.)
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 has required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days
Yes X No
----- -----
Number of shares of Common Stock,
$ .01 par value, outstanding at July 28, 1996: 6,046,585.
---------
<PAGE>
PART I - FINANCIAL INFORMATION
------------------------------
Item 1. Financial Statements
--------------------
The consolidated condensed financial statements included herein have been
prepared by the Company, without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although the Company believes that the
disclosures are adequate to make the information presented not misleading. It
is suggested that these condensed financial statements be read in conjunction
with the consolidated financial statements and the notes thereto included in the
Company's latest Annual Report on Form 10-K.
In the opinion of the Company, these unaudited statements contain all
adjustments (consisting only of normal recurring adjustments) necessary to
present fairly the financial position of Semtech Corporation and subsidiaries as
of July 28, 1996, and the results of their operations and the changes in their
cash flow for the three and six months then ended.
-2-
<PAGE>
SEMTECH CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT FOR PER SHARE FIGURES)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
------------------- --------------------
JULY 28, JULY 30, JULY 28, JULY 30,
1996 1995 1996 1995
-------- -------- --------- --------
<S> <C> <C> <C> <C>
NET SALES $13,424 $14,674 $28,901 $27,454
Cost of sales 8,117 8,569 17,112 16,468
------- ------- ------- -------
Gross profit 5,307 6,105 11,789 10,986
Operating expenses 3,451 3,422 7,144 6,430
------- ------- ------- -------
Operating income 1,856 2,683 4,645 4,556
Interest and other(income)expense 1 2 (14) 11
------- ------- ------- -------
Income before taxes 1,855 2,681 4,659 4,545
Provision for taxes 612 865 1,533 1,466
------- ------- ------- -------
NET INCOME $ 1,243 $ 1,816 $ 3,126 $ 3,079
======= ======= ======= =======
NET INCOME PER SHARE:
Primary $ 0.20 $ 0.29 $ 0.50 $ 0.50
======= ======= ======= =======
Fully diluted $ 0.20 $ 0.29 $ 0.50 $ 0.49
======= ======= ======= =======
</TABLE>
-3-
<PAGE>
SEMTECH CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
JULY 28, JANUARY 28,
1996 1996
-------- -----------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 5,599 $ 6,034
Temporary investments 412 411
Receivables, net 7,763 7,987
Inventories 11,812 9,986
Income taxes refundable 88 72
Deferred income taxes 473 465
Other current assets 489 521
------- -------
TOTAL CURRENT ASSETS 26,636 25,476
------- -------
PROPERTY, PLANT AND EQUIPMENT, NET 7,349 6,748
OTHER ASSETS 182 134
DEFERRED INCOME TAXES 516 327
------- -------
TOTAL ASSETS $34,683 $32,685
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 662 $ 404
Accounts payable 2,915 4,060
Accrued liabilities 1,877 2,407
Other current liabilities 319 319
Income taxes payable 438 405
------- -------
TOTAL CURRENT LIABILITIES 6,211 7,595
------- -------
LONG-TERM DEBT, LESS CURRENT MATURITIES 1,357 1,024
OTHER LONG-TERM LIABILITIES 492 797
SHAREHOLDERS' EQUITY:
Common Stock, $0.01 par value, 15,000,000
authorized 76 75
Additional paid-in capital 10,727 10,520
Retained earnings 16,148 13,022
Cumulative translation adjustment (328) (348)
------- -------
TOTAL SHAREHOLDERS' EQUITY 26,623 23,269
------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $34,683 $32,685
======= =======
</TABLE>
-4-
<PAGE>
SEMTECH CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
------------------------
JULY 28, JULY 30,
1996 1995
---------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES -
Net income $ 3,126 $ 3,079
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 876 615
Tax benefit from stock option transactions 137 635
Changes in assets and liabilities:
Receivables 224 (2,215)
Inventories (1,826) (510)
Other assets 48 (157)
Accounts payable and accrued liabilities (1,675) 1,159
Income tax refundable (16) (9)
Income tax payable 33 774
Other liabilities (149) (3)
Deferred income taxes (141) (187)
------- -------
NET CASH PROVIDED BY OPERATING ACTIVITIES 637 3,181
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES -
Temporary cash investments (1) 410
Additions to property, plant and equipment (1,477) (1,546)
------- -------
NET CASH USED BY INVESTING ACTIVITIES (1,478) (1,136)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES -
Net line of credit activity - (175)
Additions to debt 809 -
Repayment of debt (218) (252)
Stock options exercised 120 271
Other long-term liabilities (180) -
Other (145) (54)
------- -------
NET CASH PROVIDED(USED) BY FINANCING ACTIVITIES 386 (210)
------- -------
Effect of exchange rate changes on cash 20 (42)
Net increase (decrease) in cash and cash equivalents (435) 1,793
Cash and cash equivalents at beginning of period 6,034 3,261
------- -------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 5,599 $ 5,054
======= =======
</TABLE>
-5-
<PAGE>
SEMTECH CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. INCOME TAXES -
Effective February 1, 1993, the Company changed its method of accounting for
income taxes to comply with the provisions of SFAS No. 109. Under SFAS No. 109,
deferred income tax assets or liabilities are computed based on the temporary
difference between the financial statement and income tax bases of assets and
liabilities using the statutory marginal income tax rate in effect for the year
in which the differences are expected to reverse. Deferred income tax expenses
or credits are based on the changes in the deferred income tax assets or
liabilities from period to period. Prior to fiscal year 1994, deferred income
taxes were provided on temporary differences between the income or loss
determined for financial reporting and income tax reporting at income tax rates
in effect when the differences are expected to be settled. The change did not
have a material effect on the financial statements.
The income tax provision for the six months ended July 28, 1996 consisted of
income tax expense of $1,484,000 on the income of the Company's U.S. operations
and income tax expense of $49,000 on the income from the Company's foreign
operation. In the prior year six month period ended July 30, 1995, the Company
incurred income tax expense of $1,416,000 on the income of the Company's U.S.
operations and income tax expense of $50,000 on income from the Company's
foreign operation.
2. INCOME PER SHARE -
Primary net income per share of common stock has been computed based on the
weighted average number of common and common equivalent shares outstanding.
Fully diluted income per share of common stock was determined on the assumption
that all outstanding convertible debentures were converted under the if-
converted method, as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
--------------------- ---------------------
JULY 28, JULY 30, JULY 28, JULY 30,
1996 1995 1996 1995
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
PRIMARY......... 6,266,000 6,193,000 6,262,000 6,145,000
========= ========= ========= =========
FULLY DILUTED... 6,266,000 6,341,000 6,262,000 6,341,000
========= ========= ========= =========
</TABLE>
3. TEMPORARY INVESTMENTS -
Temporary investments consist of commercial paper and government and
corporate obligations with original maturities in excess of three months and are
carried at cost, which approximates market.
-6-
<PAGE>
4. INVENTORIES -
The commercial semiconductor industry and the markets in which the Company's
products are used are characterized by rapid changes and short product life
cycles. Consistent with the industry, the Company has experienced declines in
average selling prices over the life of its product lines. The Company has
fully reserved inventory which is obsolete or in excess of one year's demand,
and has provided reserves for declines in selling price below cost. Inventories
consisted of the following:
<TABLE>
<CAPTION>
Raw Work in Finished Total
(thousands) Materials process goods
-------------------------------------------------------------------------
<S> <C> <C> <C> <C>
JULY 28, 1996
Gross inventory $2,318 $8,117 $ 4,083 $14,518
Total reserves (731) $ (770) (1,205) (2,706)
------ ------ ------- -------
Net inventory $1,587 $7,347 $ 2,878 $11,812
====== ====== ======= =======
JANUARY 28, 1996
Gross inventory $2,016 $7,370 $ 3,191 $12,577
Total reserves (722) $ (688) (1,181) (2,591)
------ ------ ------- -------
Net inventory $1,294 $6,682 $ 2,010 $ 9,986
====== ====== ======= =======
</TABLE>
5. LONG-TERM DEBT -
Long-term debt at July 28, 1996 is made up soley of notes payable. Notes
payable consists of a fixed rate loan in the amount of $289,000 and two variable
rate loans totaling $1,494,000 used for the acquisition of equipment and the
loan on the Company's Scotland facility in the amount of $236,000.
6. LINE OF CREDIT -
The Company maintains a credit arrangement with a financial institution for
a working capital and equipment acquisition line of credit of up to $7,500,000
extending to August 1998 at an interest rate of 30 day rolling commercial paper
plus 2.50 percent. The arrangement is collateralized by the Company's domestic
assets and contains provisions regarding current ratios, debt to worth, and net
worth. As of July 28, 1996, the Company had $1,494,000 of borrowings outstanding
under this line which were converted into a term loan and reduce the borrowing
limit on the line of credit. The Company also maintains an overdraft credit line
in the amount of 300,000 pounds sterling at its wholly owned foreign subsidiary,
and has obtained a commitment from its bank to expand the line to 1,000,000
pounds sterling on a formula line basis.
7. SIGNIFICANT CUSTOMERS
For the three months ended July 30, 1995, one customer accounted for 11% of
the Company's net sales. No other customers accounted for greater than 10% of
net sales in the periods reported.
-7-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Conditions and
----------------------------------------------------------------
Results of Operations
---------------------
(l) Material Changes in Financial Condition
---------------------------------------
At July 28, 1996, Semtech Corporation (the "Company") had working
capital of $20,425,000, compared with $17,881,000 at January 28, 1996 - an
increase of $2,544,000. The increase was primarily due to the Company's
profitability during the six months ended July 28, 1996.
During the first six months of fiscal 1997, the Company used $435,000
of cash and cash equivalents primarily due to increased levels of outlays
for inventory, capital equipment, and year-end supplemental compensation
that was accrued in FY96. Operating cash flow for the first half of the year
was a positive $637,000. The Company's accounts receivable decreased by
$224,000 during the quarter as the result of the lower volume of shipments.
The Company's inventories continued to increase as more resources were spent
on new and existing product lines and because sales targets were not met.
The Company took actions late in the second quarter to cut the production
rates for certain product lines, which should bring inventory growth back
into line with sales growth. The Company plans to continue to actively
manage inventories to minimize inventory being carried and to maximize
inventory turns. Planned increases in inventories of certain product lines'
should be partially offset by decreased levels in older and declining
product lines. During the first half of fiscal 1997, the Company used cash
of $218,000 to repay outstanding debt, $1,477,000 to pay for capital
equipment purchases. These capital investments were made to increase the
capacity and process capabilities for manufacturing functions and to support
the Company's overall infrastructure. The ratio of current assets to current
liabilities at July 28, 1996, was 4.3 to 1, compared to 3.4 to 1 at January
28, 1996.
The following leverage ratios indicate the extent to which the Company
has been financed with debt:
<TABLE>
<CAPTION>
JULY 28, JANUARY 28,
1996 1996
--------- -----------
<S> <C> <C>
Long-term debt as a % of total capitalization* 4.8% 4.2%
Total debt to total capitalization* 7.2% 5.9%
</TABLE>
*Total capitalization is defined as the sum of long-term debt and
shareholders' equity.
The Company's strategic plan is to expand product lines that serve the
computer, communications, industrial and automotive markets. In the past
four years the Company has made significant investments in the development
and promotion of new products designed to transition the Company from
primarily military and aerospace markets to commercial markets. A majority
of commitments for new equipment advanced the Company's production
capabilities for producing new products. In the six months ended July 28,
1996 the Company spent $1,477,000 for capital equipment. The commitments
made were to increase test capacity, improve production capabilities and to
upgrade the Company's central computer system. Future capital acquisitions
will continue to be based on economic conditions of the Company's markets
and the Company's ability to utilize such assets effectively. The Company
intends to finance
-8-
<PAGE>
the majority of its capital investments and ongoing operations from
internally generated funds, on-hand cash balances, and an available line of
credit. The Company believes that current internal cash flows, together with
the Company's cash and cash equivalents, temporary investments, and the
Company's credit facilities are sufficient to support all currently
anticipated future investments in equipment and facilities.
(2) Material Changes in Results of Operations
-----------------------------------------
The following information is provided to further explain certain
financial information shown in the Consolidated Condensed Statements of
Operations for the three and six month periods ended July 28, 1996 and July
30, 1995.
THREE AND SIX MONTH PERIODS ENDED JULY 28, 1996 COMPARED WITH THE THREE AND
---------------------------------------------------------------------------
SIX MONTH PERIODS ENDED JULY 30, 1995:
-------------------------------------
INDUSTRY TRENDS AND OUTLOOK -
The commercial semiconductor industry and the markets in which the
Company's products are used are characterized by rapid changes and short
product life cycles. During the first half of fiscal year 1997, the Company
experienced reduced demand for foundry wafers and increased price
competition in its commercial semiconductor product lines. The Company
believes that it bottomed out in certain of its major product lines during
the second quarter. Based on current market conditions the Company expects
to see sales growth in the third and fourth quarter of its fiscal 1997 year.
The Company's commitment to its strategic plan should benefit results when
market conditions improve.
The semiconductor industry as a whole has experienced a general slowdown
believed to be caused by increased supply, decreased demand by end markets,
and high inventory levels at electronic manufacturers. The Company did
experience increased order rates in the latter part of the second quarter.
While the improved orders trend in the quarter was encouraging, there is
still no assurance that this order rate improvements will continue
throughout the second half of fiscal 1997.
Typical of the semiconductor industry, the Company has experienced
declines in average selling prices over the life of its product lines.
Prices declines have further been influenced by increased competition and
decreased demand. Efforts to offset this decline include increasing units
shipped, improved manufacturing efficiencies, finding new applications for
existing products, introduction of new products and a major program to
reduce to silicon die size in several product families. Management will
continue to take steps to minimize the impact of declines in average selling
prices, however, there is no assurance that these efforts will be
successful. Declines in average selling prices and reduced absorption
related to lower production rates can significantly impact gross margins of
the Company.
The market for both the Company's commercial and military-aerospace
products remains fiercely competitive. The Company is focusing efforts on
eliminating less profitable product lines and pushing new product
development. The Company also derives approximately 15% (estimate for most
recent quarter) of revenues from the sale of foundry wafers. These wafers
are generally purchased by manufacturers who package the individual silicon
die in their
-9-
<PAGE>
products. The foundry business is also very competitive, with other
foundries offering similar services. The revenue generated by the foundry
and standard products segments can vary significantly depending not only on
macro trends within the industry, but also on conditions at specific
customers.
REVENUES -
Revenues for the second quarter ended July 28, 1996 were $13,424,000
compared to $14,674,000 in the second quarter ended July 30, 1995, a
decrease of 9%. Revenues for the six months ended July 28, 1996 were
$28,901,000 compared to $27,454,000 in six months ended July 30, 1995, an
increase of 1,447,000 or 5%. The decline in revenues for the second quarter
compared to the prior year period was due to an industry wide slowdown in
the overall semiconductor industry. While the Company continued to ship more
units of its commercial products in the quarter, lower unit prices hurt
revenue and margin levels. In addition, foundry related business remained
weak as customers' continue to work down inventory levels. The Company
believes that certain of these trends can be reversed in the second half of
fiscal 1997, if market conditions improve.
Sales of devices used in commercial applications represented
approximately 85% of total revenues in the second quarter of fiscal 1997.
Computer and peripheral applications represent a large portion of the
customer base for the Company's commercial products. Communications,
industrial and foundry customers make up the balance of commercial sales.
Revenues from military and aerospace remains at approximately 15% of net
sales. Sales to commercial customers was 80% versus 20% to military-
aerospace customers in the second quarter of last year.
Shipments to customers located in the Asia-Pacific region were 30% of
the total sales for fiscal 1997's second quarter, an increase of 31% over
Asia-Pacific sales recorded in the comparable quarter of last year. Sales to
European customers represented 14% of total sales for the second quarter of
fiscal 1997 compared to 12% in the second quarter of fiscal 1996.
New order levels for the first and second quarters were less than total
shipments in each respective quarter, resulting in a book-to-bill ratio of
less than 1 to 1. The book-to-bill ratio for the comparable three and six
month periods last year were estimated to be 1.1 to 1. Total new orders for
the second and third months of the second quarter of fiscal 1997 did improve
and were above a book-to-bill ratio of 1 to 1 for those combined months.
Customers' inventory levels, most apparent in the Company's line of voltage
regulators, appear to be at very low levels. Our customers have
significantly reduced their inventory of our products during the first half
of fiscal 1997, the Company expects that this will result in improved order
and shipment rates for the second half of the year. However, a significant
quantity of orders received are short-term orders (referred to as "turns-
fill" orders) versus longer-term scheduled orders. These short-term order
patterns result in lower future period backlog and make forecasting of
future period shipments less reliable.
COSTS AND EXPENSES -
COST OF GOODS SOLD -
-10-
<PAGE>
Gross profit margins as a percentage of net sales was 40% in the second
quarter of fiscal 1997, compared to 42% in the same period last year. For
the six months ended July 28, 1996 and July 30, 1995, gross margins were 41%
and 40%, respectively. The decline in gross margins for the second quarter
and improvement for the six month period is mostly attributed to the level
of shipments in those periods. Unfavorable price changes in the first six
months of fiscal 1997 was only partially offset by an improved mix of
products shipped.
The Company took steps in the second quarter that should benefit gross
margins in the second half. The organization's overall headcount was reduced
by 21% and efforts were made to reduce the die size in many of the Company's
integrated circuit (IC) products. The reduction in headcount was needed to
downsize operations that support older and declining product lines. Some
positions will need to be re-staffed if demand in certain product lines
increase. Die size shrinks allow for more products to be produced from each
fabricated wafer - a benefit of increased efficiencies and lower costs.
Future gross margin performance will be affected by the above noted
changes as well as shipment rates, product mix, productivity levels and
price changes. Average selling prices, capacity utilization and new order
rates will continue to have the most significant impact on margins.
OPERATING EXPENSES -
Operating costs and expenses were at 26% of net sales in the second
quarter of fiscal 1997 compared to 23% in the second quarter of fiscal 1996.
Operating expenses for the first half of fiscal 1997 were at 25% of net
sales versus 23% in the first six months of fiscal 1996. Both the quarterly
and six month operating expenses reflect increased spending on research and
development (R&D) activity.
In May 1996, the Company opened a design center at its Santa Clara,
California facility. Two senior designers were also added in the second
quarter, one of which was named vice president of product design and
development. The Company plans to add up to 10 new designers to the design
center's staff by the end of fiscal 1997 to support additional design
activity.
The Company will continue to aggressively pursue not only additional
design, but also applications and strategic marketing talent needed to
foster new product development. Added headcount and overall support of
development will continue to result in higher R&D spending levels. The
Company hopes to offset some of the increased R&D expense with decreased
expenses as a percentage of sales in administrative and sales activities.
Such a decrease in operating expenses other than R&D will be dependent on
the Company's ability to grow revenues.
OTHER -
Interest and other expense of $1,000 was realized in the quarter ended
July 28, 1996, compared to other expense of $2,000 in the prior year's
second quarter. For the six month periods ended July 28, 1996 and July 30,
1995, $14,000 of income and $11,000 of expense, respectively, was realized.
Other income and expenses for all periods is primarily interest income and
expense.
-11-
<PAGE>
PART II - OTHER INFORMATION
---------------------------
Item 1. Legal Proceedings
-----------------
The Company is involved in legal matters which are routine to the
nature of its business. Management is of the opinion that the ultimate
resolution of all such matters will not have a material adverse effect on the
accompanying consolidated condensed financial statements.
Item 2. Changes in Securities
---------------------
Not applicable.
Item 3. Defaults upon Senior Securities
-------------------------------
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
(a) The 1996 Annual Meeting of Shareholders of the Company was duly held on
June 6, 1996. The results of voting have been previously reported.
(b) Inapplicable, as (i) proxies for the meeting were solicited pursuant to
Regulation 14 under the Act; (ii) there was no solicitation in opposition
to the management's nominees as listed in the Proxy Statement; and (iii)
all of such nominees were duly elected.
(c) The results of voting have been previously reported.
(d) Not applicable
Item 5. Other Information
-----------------
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits
11.1 -Computation of per share earnings - See Note 2 of Notes to
Consolidated Condensed Financial Statements.
27 -Financial Data Schedule, Article 5
(b) Reports on Form 8-K
There were no reports on Form 8-K filed during the six months ended July
28, 1996.
-12-
<PAGE>
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.
SEMTECH CORPORATION
-------------------
Registrant
Date: September 10, 1996 /s/ John D. Poe
--------------------------------
John D. Poe
President and
Chief Executive Officer
Date: September 10, 1996 /s/ David G. Franz, Jr.
--------------------------------
David G. Franz, Jr.
Vice President Finance, Chief
Financial Officer, and
Secretary
-13-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS RESULTS OF OPERATIONS FOR THE THREE MONTHS AND SIX MONTHS
ENDED JULY 28, 1996, WHICH ARE QUALIFIED IN THEIR ENTIRETY BY REFERENCE TO THE
FORM 10-Q FILING AND FORM 10-K FOR THE YEAR ENDED JANUARY 28, 1996.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> FEB-02-1997 FEB-02-1997
<PERIOD-START> APR-29-1996 JAN-29-1996
<PERIOD-END> JUL-28-1996 JUL-28-1996
<CASH> 5,599 5,599
<SECURITIES> 411 411
<RECEIVABLES> 7,763 7,763
<ALLOWANCES> 0 0
<INVENTORY> 11,812 11,812
<CURRENT-ASSETS> 26,636 26,636
<PP&E> 7,349 7,349
<DEPRECIATION> 0 0
<TOTAL-ASSETS> 34,683 34,683
<CURRENT-LIABILITIES> 6,211 6,211
<BONDS> 0 0
0 0
0 0
<COMMON> 76 76
<OTHER-SE> 26,547 26,547
<TOTAL-LIABILITY-AND-EQUITY> 34,683 34,683
<SALES> 13,424 28,901
<TOTAL-REVENUES> 13,424 28,901
<CGS> 8,117 17,112
<TOTAL-COSTS> 8,117 17,112
<OTHER-EXPENSES> 3,451 7,144
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 1 (14)
<INCOME-PRETAX> 1,855 4,659
<INCOME-TAX> 612 1,533
<INCOME-CONTINUING> 1,243 3,126
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1,243 3,126
<EPS-PRIMARY> 0.20 0.50
<EPS-DILUTED> 0.20 0.50
</TABLE>
