<PAGE> 1
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 June 30, 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 0-21596
MDL INFORMATION SYSTEMS, INC.
-----------------------------
(Exact name of registrant as specified in its charter)
Delaware 94-3167497
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
14600 Catalina Street San Leandro, CA 94577
- -----------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(510) 895-1313
- -------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
- -------------------------------------------------------------------------
(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 periods 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 Corporate Issuers
Number of shares outstanding of each of the issuer's classes of common stock,
as of August 9, 1996;
Common Stock, $.01 Par Value - 8,658,967 SHARES
<PAGE> 2
INDEX
MDL INFORMATION SYSTEMS, INC.
<TABLE>
<CAPTION>
PART I. FINANCIAL INFORMATION PAGE
NUMBER
<S> <C>
Item 1. Consolidated Financial Statements (Unaudited)
Condensed consolidated balance sheets --
June 30, 1996 and March 31, 1996 3
Condensed consolidated statements of operations --
Three months ended June 30, 1996 and 1995 4
Condensed consolidated statements of cash flows --
Three months ended June 30, 1996 and 1995 5
Notes to condensed consolidated financial statements--
June 30, 1996 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations 7-13
PART II. OTHER INFORMATION
Items 1-5 Not applicable 14
Item 6 Exhibits and Reports on Form 8-K 14
SIGNATURE 15
</TABLE>
2
<PAGE> 3
PART I. FINANCIAL INFORMATION
MDL INFORMATION SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
ASSETS
<TABLE>
<CAPTION>
JUNE 30, 1996 MARCH 31, 1996
------------- --------------
(UNAUDITED) (A)
<S> <C> <C>
Current Assets:
Cash and cash equivalents $16,178 $15,134
Accounts receivable, net 17,728 19,542
Prepaid expenses and other assets 1,415 1,733
------- -------
Total current assets 35,321 36,409
Property and equipment, net 3,305 2,864
Capitalized software development and acquired technology, net 14,788 14,983
Deferred tax asset 2,556 2,556
Other assets 313 320
------- -------
Total assets $56,283 $57,132
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Note payable $1,900 $1,900
Accounts payable 1,393 1,429
Accrued compensation 1,094 3,219
Accrued royalties 2,017 1,590
Other accrued liabilities 1,679 1,496
Deferred revenues 9,149 10,913
------- -------
Total current liabilities 17,232 20,547
Stockholders' equity:
Common stock, $.01 par value 85 85
Paid-in capital in excess of par 17,467 16,426
Retained earnings 22,218 20,486
Cumulative translation adjustment (719) (412)
------- -------
Total stockholders' equity 39,051 36,585
------- -------
Total liabilities and stockholders' equity $56,283 $57,132
======= =======
</TABLE>
(A) The balance sheet at March 31, 1996 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
See accompanying notes to financial statements.
3
<PAGE> 4
MDL INFORMATION SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AND SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30,
--------------------------------
1996 1995
---- ----
<S> <C> <C>
Revenues:
License and other $8,381 $5,728
Database 3,130 2,851
Maintenance 4,979 4,568
--------- ---------
Total revenues 16,490 13,147
--------- ---------
Costs and expenses:
Cost of revenues 2,823 2,147
Product development 3,939 2,641
Sales, marketing and customer service 6,596 6,111
General and administrative 1,362 1,022
--------- ---------
Total costs and expenses 14,720 11,921
--------- ---------
Income from operations 1,770 1,226
--------- ---------
Other income (expense):
Interest income (expense) 66 (30)
Other 368 231
--------- ---------
Total other income, net 434 201
--------- ---------
Income before income taxes 2,204 1,427
Provision for income taxes (472) (368)
--------- ---------
Net income $1,732 $1,059
========= =========
Net income per common share $0.18 $0.12
========= =========
Shares used in computing net income
per common share 9,634,265 8,935,104
========= =========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
MDL INFORMATION SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JUNE 30,
-------------------------
1996 1995
-------- -------
<S> <C> <C>
Net cash provided by operating activities $ 1,838 $ 1,561
Cash flows used in investing activities:
Purchase of property and equipment (835) (434)
Capitalized software development and acquired technology costs (1,000) (1,636)
-------- -------
Net cash used in investing activities (1,835) (2,070)
------- -------
Cash flows provided by financing activities:
Exercise of stock options 1,041 496
------- -------
Net cash provided by financing activities 1,041 496
------- -------
Increase (decrease) in cash and cash equivalents 1,044 (13)
------- -------
Cash and cash equivalents at beginning of period 15,134 4,889
------- -------
Cash and cash equivalents at end of period $16,178 $ 4,876
======= =======
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
MDL INFORMATION SYSTEMS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
JUNE 30, 1996
NOTE A - BASIS OF PRESENTATION
MDL Information Systems, Inc. and its subsidiaries (collectively referred to as
"MDL" or the "Company") supply scientific information management software,
chemical information databases and related services to the pharmaceutical,
chemical, agrochemical and biotechnology industries.
The accompanying unaudited condensed and consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring adjustments) considered necessary
for a fair presentation have been included. Operating results for the three
month period ended June 30, 1996 are not necessarily indicative of the results
that may be expected for the year ending March 31, 1997. The accompanying
financial statements should be read in conjunction with the Company's audited
financial statements for the year ended March 31, 1996.
These financial statements reflect the consolidation of MDL Information
Systems, Inc. and its subsidiaries at June 30, 1996 and March 31, 1996, the
consolidated results of operations for the three months ended June 30, 1996 and
1995, and the consolidated cash flows for the three months ended June 30, 1996
and 1995. All significant intercompany balances and transactions have been
eliminated in consolidation. Certain reclassifications have been made to
reflect current presentation of financial information.
NOTE B - NET INCOME PER COMMON SHARE
Net income per share was computed using the weighted average number of common
shares outstanding and dilutive common equivalent shares attributable to stock
options.
6
<PAGE> 7
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Form 10-Q contains forward-looking statements that involve risks and
uncertainties. The Company's actual results may differ materially from the
results in the forward-looking statements. Factors that might cause such a
difference include, but are not limited to, those discussed herein under the
caption "Quarterly Results" and those discussed in the Company's fiscal 1996
Annual Report on Form 10-K under the caption "Risk Factors."
The Company was incorporated in October 1992 to acquire substantially all of
the assets and assume certain liabilities of Molecular Design Limited, an
indirect wholly-owned subsidiary of Macmillan, Inc., which was a majority-owned
subsidiary of Maxwell Communication Corporation plc. The Company effected an
initial public offering and acquired the MDL Business in July 1993.
The Company is engaged in the development, marketing and support of scientific
information management software, chemical information databases and related
services. The Company's first product was MACCS. After introducing MACCS, the
Company continued to develop and introduce new products, including REACCS,
MACCS-II and CPSS, as well as a number of chemical information databases. In
September 1991, commercial shipments of ISIS (Integrated Scientific Information
System) commenced. ISIS offers an integrated client-server-based management
system for sharing scientific information throughout an organization. In March
1996, the Company released ISIS 2.0, which capped the largest product
development effort in the Company's history.
The market for integrated, client-server-based software is new and emerging. A
number of the Company's customers currently do not have in place the computing
or networking environments necessary to fully utilize ISIS. Consequently,
widespread adoption of ISIS will depend, in part, on customers purchasing and
installing client-server computing and networking capabilities. There can be
no assurance as to whether or when such systems will be installed on a
widespread basis. Although the ISIS software has been licensed to a
significant number of the Company's customers, many of those customers have
licensed a limited number of seats for evaluation purposes, and there can be no
assurance that ISIS will achieve any further degree of market acceptance. If
ISIS does not achieve any further degree of market acceptance, the Company's
business, operating results and financial condition will be materially
adversely affected.
QUARTERLY RESULTS
The Company's quarterly operating results have in the past and may in the
future vary significantly depending upon such factors as the timing of new
product introductions, changes in pricing policies by the Company and its
competitors, market acceptance of new products and enhanced versions of
existing products, the capital expenditure budgets of its customers and lengthy
sales cycles. Although a significant portion of the Company's revenues in each
quarter result from orders received in that quarter, the majority of the
Company's expense levels are fixed, based on expectations of future revenues.
In addition, a substantial amount of the Company's quarterly revenues have
typically been recorded in the third month of the quarter with a concentration
of such revenues in the last half of that month. The timing of the closing of
large license agreements increases the risk of
7
<PAGE> 8
quarter-to-quarter revenue fluctuations. As a result, if revenue is not
realized as expected, the Company's operating results will be materially
adversely affected. The Company's quarterly revenues and operating results
have also varied due to seasonal factors. The Company believes that this
seasonality is a result of its customers postponing capital expenditures until
the end of their fiscal year, which in most cases corresponds to the Company's
fiscal quarter ending December 31. Due to all of the foregoing, it is likely
that in some future quarter the Company's operating results will be below the
expectations of public market analysts and investors. In such event, the price
of the Company's common stock would likely be adversely affected. The Company
believes that period-to-period comparisons of its results of operations are not
necessarily meaningful and should not be relied upon as indications of future
performance.
OVERVIEW/NET INCOME
Net income for the quarter ended June 30, 1996 was $1.7 million or $.18 per
share compared to net income of $1.1 million or $.12 per share for the quarter
ended June 30, 1995. The increase in net income resulted from a 25% increase
in total revenues partially offset by a 23% increase in operating costs and
expenses. The increase in total revenues included a 39% increase in total ISIS
revenues, a 99% increase in training and consulting revenues, and a 10%
increase in database revenues.
At June 30, 1996 there were 354 employees as compared to 335 at June 30, 1995.
8
<PAGE> 9
RESULTS OF OPERATIONS
The following table sets forth, as a percentage of total revenues, certain
items in the consolidated statements of operations of the Company for the three
months ended June 30, 1996 and 1995, respectively:
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30,
1996 1995
----------------------------------
%REV %REV
<S> <C> <C>
Revenues:
License and other 51% 43%
Database 19 22
Maintenance 30 35
--- ---
Total revenues 100% 100%
--- ---
Costs and Expenses:
Cost of revenues 17% 16%
Product development 24 20
Sales, marketing and customer service 40 47
General and administrative 8 8
--- ---
Total costs and expenses 89 91
--- ---
Income from operations 11 9
--- ---
Other income (expense):
Other 3 2
--- ---
Total other income, net 3 2
--- ---
Income before income taxes 14 11
Provision for income taxes (3) (3)
--- ---
Net income 11% 8%
=== ===
</TABLE>
9
<PAGE> 10
REVENUES:
Total revenues increased by 25% to $16.5 million for the quarter ended June 30,
1996 from $13.1 million for the quarter ended June 30, 1995. The increase in
total revenues was the result of higher total ISIS revenues, higher training
and consulting revenues and increased renewals of the Company's database
products.
License and other revenues increased by 46% to $8.4 million for the quarter
ended June 30, 1996 from $5.7 million for the quarter ended June 30, 1995. The
increase in license and other revenues for the quarter was due to a $1.7 million
or 36% increase in ISIS license revenues and an $800 thousand or 99% increase in
training and consulting revenues. ISIS license revenues for the quarter ended
June 30, 1996 were $6.5 million or 77% of total license and other revenues
compared to $4.8 million or 83% of total license and other revenues for the
quarter ended June 30, 1995. Training and consulting revenues for the quarter
ended June 30, 1996 and 1995 were $1.6 million and $800 thousand, respectively.
The Company has increased staffing in the Professional Services Group which has
increased the delivery of training and consulting services.
Database revenues increased by 10% to $3.1 million for the quarter ended June
30, 1996 from $2.9 million for the quarter ended June 30, 1995. These
increases were due to increased renewals of the ACD, MDDR, CIRX and OHS
database products. Database renewals represented 73% and 70% of the total
database revenues for the quarters ended June 30, 1996 and 1995, respectively.
Database renewals are expected to contribute a significant percentage of total
database revenues in future periods.
Maintenance revenues increased by 9% to $5.0 million for the quarter ended June
30, 1996 from $4.6 million for the quarter ended June 30, 1995. The increase
was due to an increase in ISIS maintenance offset by declining maintenance
revenues from the MACCS and REACCS product lines. In the quarters ended June
30, 1996 and 1995, 57% and 43%, respectively, of maintenance revenues were
recognized under contracts for the support of ISIS. The Company expects total
maintenance revenues to continue to increase as the Company enters into new
contracts and customers deploy more seats of ISIS. Maintenance revenues
related to the MACCS and REACCS product lines are expected to continue to
decline.
Revenues from foreign sales of licenses and services include revenues
denominated in foreign currencies sold through the Company's foreign
subsidiaries and export revenues denominated in United States dollars sold
through the Company's distributors in Asia. Geographical distribution of
total revenues was as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30,
($ IN THOUSANDS) 1996 1996 1995 1995
----------------------------------------------------------------------
$ REV % REV $ REV % REV
<S> <C> <C> <C> <C>
Region:
United States 6,630 40% 5,070 39%
Europe 6,758 41% 6,037 46%
Asia/Pacific 3,102 19% 2,040 15%
----------------------------------------------------------------------
Total Revenues 16,490 100% 13,147 100%
======================================================================
</TABLE>
10
<PAGE> 11
The geographical results have varied significantly and are expected to vary
significantly in the future due to the size of the Company's orders and the
length of its sales cycle. The Company expects that revenues from foreign
operations and export sales will continue to account for a significant
percentage of its total revenues, and although the Company has entered into
foreign currency hedging arrangements to minimize its risk of loss,
fluctuations in foreign currency exchange rates could affect the Company's
results of operations in the future.
COSTS AND EXPENSES:
COST OF REVENUES
Cost of revenues increased by 31% to $2.8 million in the quarter ended June 30,
1996 from $2.1 million in the quarter ended June 30, 1995. Amortization of
capitalized software development and acquired technology costs was $1.2 million
and $1.3 million for the quarters ended June 30, 1996 and 1995, respectively.
Royalty costs were $857 thousand or 5% of total revenues for the quarter ended
June 30, 1996 as compared to $583 thousand or 4% of total revenues for the
quarter ended June 30, 1995. The increase in royalty costs was due to higher
sales of royalty bearing products. There were also increased costs related to
the production and shipping of ISIS 2.0 and SCREEN 1.0.
PRODUCT DEVELOPMENT
The Company believes that a significant level of investment in product
development is essential to market leadership. Product development expense for
any period represents the difference between total product development
expenditures and capitalized software development costs for such period.
Total product development expenditures increased by 22% to $4.9 million in the
quarter ended June 30, 1996 from $4.0 million in the quarter ended June 30,
1995. This increase is primarily due to higher salaries and bonuses in the
development group. Development headcount at June 30, 1996 was 132 compared to
130 at June 30, 1995. The Company anticipates that it will continue to commit
substantial resources to product development in the future.
The Company capitalizes software development costs based on development budgets
and begins to capitalize costs upon the establishment of technological
feasibility. The Company capitalized $1.0 million of software development
costs for the quarter ended June 30, 1996 and $1.4 million for the quarter
ended June 30, 1995. The decrease in the amount capitalized in fiscal 1997 is
due to the completion of ISIS 2.0, which was released in March 1996.
SALES, MARKETING AND CUSTOMER SERVICE
Sales, marketing and customer service expenses, which include sales commissions
and bonuses, increased by 8% to $6.6 million in the quarter ended June 30, 1996
from $6.1 million in the quarter ended June 30, 1995. The increase was
primarily due to increases in headcount (from 159 at June 30, 1995 to 174 at
June 30, 1996), higher commissions and bonuses earned in connection with
increased revenues and the effect of foreign currency movements on the
operating expenses of the Company's European sales offices.
11
<PAGE> 12
GENERAL AND ADMINISTRATIVE
General and administrative expenses increased by 33% to $1.4 million for the
quarter ended June 30, 1996 from $1.0 million for the quarter ended June 30,
1995. The increase is primarily due to a general rise in a variety of general
and administrative expenses mostly in the Information Technology group.
General and administrative headcount was 48 and 46 people at June 30, 1996 and
1995, respectively.
OTHER INCOME (EXPENSE)
Other income (expense) consists of interest income and expense, miscellaneous
income and expense items and the realized gains and losses on foreign currency
denominated transactions. Total other income (expense) was $434 thousand and
$201 thousand for the quarters ended June 30, 1996 and 1995, respectively. The
Company realized foreign currency exchange gains of $361 thousand and $217
thousand, respectively, in the quarters ended June 30, 1996 and 1995.
PROVISION FOR INCOME TAXES
The provision for income taxes was $472 thousand and $368 thousand for the
quarters ended June 30, 1996 and 1995, respectively. The provision for these
periods relates primarily to foreign income and withholding tax. As of March
31, 1996, the Company had available for federal income tax purposes
approximately $21.1 million of net operating loss carryforwards which will
expire beginning in the year ending 2009 through 2011 if not used to offset
future taxable income.
The Company has adopted, for all periods presented, Statement of Financial
Accounting Standards No. 109, "Accounting for Income Taxes," which requires an
asset and liability approach for financial accounting and reporting for income
taxes. Under SFAS 109, the Company recorded a $2.6 million tax benefit in the
fourth quarter of fiscal 1996 which represents the portion of the Company's
deferred tax assets that management expects will be realized. Current
accounting standards require the recognition of such tax benefits when it
becomes more likely than not that they will be realized. On this basis, the
Company intends to evaluate the amount recognized during fiscal 1997 based on
current and projected operating results.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 1996, the Company had $16.2 million of cash and cash equivalents
and $18.1 million of working capital. Net cash provided by operating
activities was $1.8 million and $1.6 million for the quarter ended June 30,
1996 and 1995, respectively. The Company used $835 thousand and $434 thousand
in the quarters ended June 30, 1996 and 1995, respectively, for the purchase of
property and equipment, principally computer hardware and peripherals. The
Company expects that future purchases of property and equipment will likely be
proportional to the Company's employee base.
The Company has secured a line of credit with a bank that permits aggregate
borrowings of up to $5.0 million, subject to the balance of eligible accounts
receivable. The interest rate on such borrowings is prime plus 1/4% and the
line matures in June 1997. The Company believes that existing cash resources,
amounts available under the line of credit and expected cash flows from
operations will be sufficient to fund the Company's cash needs for at least the
foreseeable future
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<PAGE> 13
including payment of a $1.9 million note due on October 1, 1996. The Company
expects its liquidity needs for the next twelve months to be consistent with
historical requirements. At some point, the Company may require additional
funds to support its working capital requirements or for other purposes and may
seek to raise such additional funds through public or private equity financings
or from other sources. There can be no assurance that additional financing
will be available or that, if available, such financing will be obtainable on
terms favorable to the Company.
13
<PAGE> 14
PART II. OTHER INFORMATION
Item 1: Legal Proceedings - Not Applicable
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 - Not
Applicable
Item 5: Other Information - Not Applicable
Item 6: Exhibits and Reports on Form 8-K
(A) EXHIBITS
EXHIBIT
NUMBER:
11.1 Computation of Earnings Per Common Share
27.1 Financial Data Schedule
(B) REPORT ON FORM 8-K - Not applicable
14
<PAGE> 15
SIGNATURE
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.
MDL INFORMATION SYSTEMS, INC.
-----------------------------
(Registrant)
Date: August 14, 1996 -------------------------------
John J. Hanlon, Senior Vice President - Finance
(Principal Financial Officer)
15
<PAGE> 16
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit # Description of Document
<C> <S>
11.1 Computation of Earnings Per Common Share
27.1 Financial Data Schedule
</TABLE>
<PAGE> 1
EXHIBIT 11.1
MDL INFORMATION SYSTEMS, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30,
-------------------------------------
1996 1995
------------ ------------
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C>
Net income $1,732 $1,059
====== ======
Weighted average number of common shares
outstanding 8,586 8,233
Assuming exercise of stock options reduced by the
number of shares which could have been purchased
with the proceeds from exercise of such options 1,048 702
------ ------
Shares used in computing net income per
common share 9,634 8,935
====== ======
Net income per common share $0.18 $0.12
====== ======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-START> APR-01-1996
<PERIOD-END> JUN-30-1996
<EXCHANGE-RATE> 1
<CASH> 16178
<SECURITIES> 0
<RECEIVABLES> 17728
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1415
<PP&E> 14595
<DEPRECIATION> 11290
<TOTAL-ASSETS> 56283
<CURRENT-LIABILITIES> 17232
<BONDS> 0
0
0
<COMMON> 85
<OTHER-SE> 38966
<TOTAL-LIABILITY-AND-EQUITY> 56283
<SALES> 16490
<TOTAL-REVENUES> 16490
<CGS> 2823
<TOTAL-COSTS> 2823
<OTHER-EXPENSES> 11897
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2204
<INCOME-TAX> (472)
<INCOME-CONTINUING> 1732
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1732
<EPS-PRIMARY> .18
<EPS-DILUTED> .18
</TABLE>
