<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the Quarter Ended March 31, 2000
Commission File Number 0-21626
ELECTROGLAS, INC.
(exact name of registrant as specified in its charter)
DELAWARE 77-0336101
- ------------------------------- ----------------------
(state or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification Number)
6024 Silver Creek Valley Road
San Jose, CA 95138
Telephone: (408) 528-3000
-------------------------------
(address of principal executive
offices and telephone number)
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
requirement for the past 90 days.
Yes [X] No [ ]
As of May 3, 2000, 20,652,223 shares of the Registrant's common stock, $0.01 par
value, were issued and outstanding.
<PAGE> 2
INDEX
ELECTROGLAS, INC.
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Condensed Financial Statements
Consolidated Condensed Statements of Operations -- Three
months ended March 31, 2000 and March 31, 1999.................... 3
Consolidated Condensed Balance Sheets -- March 31, 2000
and December 31, 1999............................................. 4
Consolidated Condensed Statements of Cash Flows -- Three
months ended March 31, 2000 and March 31, 1999.................... 5
Notes to Consolidated Condensed Financial Statements --
March 31, 2000.................................................... 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations..................... 9
Item 3. Quantitative and Qualitative Disclosure About Market Risks........ 13
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.................................. 13
SIGNATURES........................................................................ 14
</TABLE>
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<PAGE> 3
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Condensed Financial Statements
ELECTROGLAS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
March 31,
-------------------------
2000 1999
-------- --------
<S> <C> <C>
Net sales $ 53,367 $ 17,332
Cost of sales 26,831 11,042
-------- --------
Gross profit 26,536 6,290
-------- --------
Operating expenses:
Engineering, research and development 7,138 6,219
Selling, general and administrative 9,883 7,245
-------- --------
Total operating expenses 17,021 13,464
-------- --------
Operating income (loss) 9,515 (7,174)
Interest income 2,092 1,593
Other expense, net (150) (127)
-------- --------
Income (loss) before income taxes 11,457 (5,708)
Provision for income taxes 1,833 148
-------- --------
Net income (loss) $ 9,624 $ (5,856)
======== ========
Basic net income (loss) per share $ 0.48 $ (0.30)
======== ========
Diluted net income (loss) per share $ 0.45 $ (0.30)
======== ========
Shares used in basic calculations 20,180 19,470
======== ========
Shares used in diluted calculations 21,159 19,470
======== ========
</TABLE>
See accompanying notes to consolidated condensed financial statements
-3-
<PAGE> 4
ELECTROGLAS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
--------- ------------
(Unaudited) (1)
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 57,274 $ 60,732
Short-term investments 93,410 80,127
Accounts receivable, net 42,089 28,992
Inventories 16,170 14,867
Prepaid expenses and other current assets 1,995 2,926
Income taxes receivable -- 1,020
--------- ---------
Total current assets 210,938 188,664
Equipment and leasehold improvements, net 10,227 8,193
Other assets 5,574 5,334
--------- ---------
Total assets $ 226,739 $ 202,191
========= =========
Liabilities and stockholders' equity
Current liabilities:
Short-term borrowings $ 1,379 $ 1,624
Accounts payable 14,009 9,074
Accrued liabilities 13,897 12,235
Income taxes payable 252 --
--------- ---------
Total current liabilities 29,537 22,933
Non-current liabilities 1,790 1,920
Stockholders' equity:
Preferred stock, $0.01 par value;
authorized 1,000; none outstanding -- --
Common stock, $0.01 par value;
authorized 40,000; issued and outstanding
20,804 at March 31, 2000 and 20,241
at December 31, 1999 208 202
Additional paid-in capital 145,130 136,672
Deferred stock compensation (319) (393)
Retained earnings 53,378 43,754
Accumulated other comprehensive loss (689) (601)
--------- ---------
197,708 179,634
Less cost of common stock in treasury;
155 at March 31, 2000 and December 31, 1999 2,296 2,296
--------- ---------
Total stockholders' equity 195,412 177,338
Total liabilities and stockholders' equity $ 226,739 $ 202,191
========= =========
</TABLE>
(1) The information in this column was derived from the Company's audited
consolidated financial statements for the year ended December 31, 1999.
See accompanying notes to consolidated condensed financial statements
-4-
<PAGE> 5
ELECTROGLAS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
March 31,
------------------------
2000 1999
-------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 9,624 $ (5,856)
Changes to income not affecting cash 2,412 1,949
Changes in assets and liabilities (5,725) 1,435
-------- ---------
Cash provided by (used in) operating activities 6,311 (2,472)
Cash flow from investing activities:
Capital expenditures (4,138) (973)
Purchases of investments (53,225) (111,518)
Maturities of investments 39,834 119,971
Increase in restricted cash -- (6,904)
Other assets (459) (55)
-------- ---------
Cash provided by (used in) investing activities (17,988) 521
Cash flow from financing activities:
Net proceeds (payments) from short-term borrowings (245) 647
Sales of common stock 8,464 25
Purchases of treasury stock -- (1,029)
-------- ---------
Cash provided by (used in) financing activities 8,219 (357)
Effect of exchange rate changes -- 10
-------- ---------
Net decrease in cash and cash equivalents (3,458) (2,298)
Cash and cash equivalents at beginning of period 60,732 12,966
-------- ---------
Cash and cash equivalents at end of period $ 57,274 $ 10,668
======== =========
</TABLE>
See accompanying notes to consolidated condensed financial statements
-5-
<PAGE> 6
ELECTROGLAS, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE: 1 - BASIS OF PRESENTATION
The accompanying unaudited consolidated condensed financial statements have been
prepared by the Company in accordance with generally accepted accounting
principles for interim financial information and with Rule 10-01 of Regulation
S-X. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete consolidated
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring adjustments) considered necessary for fair presentation have
been included. These consolidated condensed financial statements should be read
in conjunction with the audited consolidated financial statements for the year
ended December 31, 1999, included in the Company's Annual Report on Form 10-K.
Operating results for the three month period ended March 31, 2000 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 2000.
The Company's fiscal year end is December 31. The Company's fiscal quarters end
on the Saturday nearest the end of the calendar quarters. For convenience, the
Company has indicated that its quarters end on March 31, June 30 and September
30.
USE OF ESTIMATES - The preparation of the accompanying unaudited consolidated
condensed financial statements requires management to make estimates and
assumptions that affect the amounts reported in the financial statements. Actual
results could differ from those estimates.
NOTE: 2 - INVENTORIES
The following is a summary of inventories by major category:
<TABLE>
<CAPTION>
March 31, December 31,
(in thousands) 2000 1999
- -------------- --------- ------------
<S> <C> <C>
Raw materials $ 6,728 $ 4,686
Work in process 5,065 6,986
Finished goods 4,377 3,195
------- -------
$16,170 $14,867
======= =======
</TABLE>
NOTE: 3 - NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share and diluted net loss per share amounts were
computed using the weighted average number of shares of common stock outstanding
during the period. Diluted net income per share was calculated using the
weighted average number of common shares, including the effect of dilutive
securities attributable to stock options and contingently issued shares,
outstanding during the period. The following table sets forth the computation of
basic and diluted net income (loss) per share:
-6-
<PAGE> 7
<TABLE>
<CAPTION>
Three months ended
March 31,
---------------------
(in thousands, except per share data) 2000 1999
- ------------------------------------- ------- --------
<S> <C> <C>
Numerator:
- ----------
Net income (loss) $ 9,624 $ (5,856)
======= ========
Denominator:
- ------------
Denominator for basic net income (loss) per share
- weighted average shares 20,180 19,470
------- --------
Effect of dilutive securities:
Employee stock options 759 --
Contingently issued shares 220 --
------- --------
Dilutive potential common shares 979 --
------- --------
Denominator for diluted net income (loss) per share
- adjusted weighted average shares 21,159 19,470
======= ========
Basic net income (loss) per share $ 0.48 $ (0.30)
======= ========
Diluted net income (loss) per share $ 0.45 $ (0.30)
======= ========
</TABLE>
Options to purchase 2,550,000 shares of common stock and 100,000 shares of
restricted common stock were outstanding at March 31, 1999, but were not
included in the computation of diluted net loss per share as the effect would be
antidilutive.
In connection with prior acquisitions, 164,000 shares of common stock were in
escrow as of March 31, 1999. These shares were subject to certain
representations and warranties, and were not included in the computation of
diluted net loss per share as the effect would be antidilutive.
NOTE: 4 - LEASE AGREEMENT
In March 1997, the Company entered into a $12.0 million five-year operating
lease for approximately 21.5 acres of land in San Jose, California. On July 1,
1998, the lease agreement was amended to provide a construction allowance of
$43.0 million for certain buildings currently under construction on the land.
The monthly payments are based on the London Interbank Offering Rate (LIBOR). At
current interest rates and based on the lease amount of $43.8 million at March
31, 2000, the annual lease payments currently represent approximately $2.7
million. At the end of the lease, the Company has the option to purchase the
land and buildings for approximately $55.0 million. The guaranteed residual
payment on the lease is approximately $55.0 million.
The lease contains certain restrictive covenants. At March 31, 2000, the Company
was in compliance with these covenants. In addition, the Company was in
compliance with its lease collateral requirements and was not required to
collateralize the lease. The Company voluntarily collateralized $43.8 million as
of March 31, 2000, which was included in cash and cash equivalents since it can
withdraw the cash with 10 days notice. The amount of collateralization will
increase as funding increases over the remaining construction period.
NOTE: 5 - COMPREHENSIVE INCOME (LOSS)
For the quarters ended March 31, 2000 and 1999, total comprehensive income
(loss) amounted to $9.5 million and $(6.1) million, respectively.
-7-
<PAGE> 8
NOTE: 6 - SEGMENT INFORMATION
The following is a summary of the Company's operating segments:
<TABLE>
<CAPTION>
(in thousands) Prober
Three months ended March 31, products All other Total
- ---------------------------- -------- --------- --------
<S> <C> <C> <C>
2000
- ----
Sales to unaffiliated customers $ 51,044 $ 2,323 $ 53,367
Operating income (loss) $ 13,664 $(4,149) $ 9,515
1999
- ----
Sales to unaffiliated customers $ 14,564 $ 2,768 $ 17,332
Operating loss $ (5,858) $(1,316) $ (7,174)
</TABLE>
NOTE: 7 - INCOME TAXES
The 16% estimated annual effective tax rate for the year 2000 reflects
utilization of the current year research and development tax credit in addition
to a partial release of the valuation allowance set up in prior years. The
Company estimates that a valuation allowance will still be necessary to offset
certain deferred tax assets due to the uncertainties surrounding their
realization.
NOTE: 8 - RECENT ACCOUNTING PRONOUNCEMENTS
In December 1999, the staff of the Securities and Exchange Commission issued
Staff Accounting Bulletin No. 101 ("SAB 101"), Revenue Recognition in Financial
Statements. SAB 101 was amended by SAB 101A which delayed the implementation
date of SAB 101 for calendar year end reporting companies, including
Electroglas, to the quarter ending June 30, 2000. The Company is currently
evaluating SAB 101 and is uncertain as to what impact, if any, SAB 101 will have
on its revenues and results of operations for the quarter ending June 30, 2000
and subsequent periods. The impact of SAB 101, if any, will be reported as a
change in accounting principle in accordance with FASB Statement No. 3. This may
result in a significant cumulative effect change in accounting adjustment that
would be reflected in the Company's results of operations for the six months
ended June 30, 2000.
-8-
<PAGE> 9
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The statements contained in this Form 10-Q which are not purely historical are
forward-looking statements, including statements regarding the Company's
beliefs, expectations, hopes, plans or intentions regarding the future.
Forward-looking statements include, but are not limited to statements regarding
estimated taxes, cash flow, liquidity and anticipated cash needs and
availability. All forward-looking statements included in this document are made
as of the date hereof, based on information available to the Company as of the
date hereof, and Electroglas assumes no obligation to update any forward-looking
statement. It is important to note that the Company's actual results could
differ materially from those in such forward-looking statements due to risks and
uncertainties such as: timely availability and acceptance of new hardware and
software products, capital expenditures of semiconductor manufacturers, changes
in demand for semiconductor products, competitive pricing pressures, product
volume and mix, development of new products, enhancement of existing products,
global economic conditions, availability of needed components, availability of
skilled employees, timing of orders received, fluctuations in foreign exchange
rates, introduction of competitors' products having technological and/or pricing
advantages, and the continued integration of the businesses of Knights and
Techne into the Company. In addition, the Company has experienced, and may in
the future experience, significant fluctuations in its quarterly financial
results. You should also consult the risk factors described from time to time in
the Company's Annual Report on Form 10-K and those disclosed in this discussion
and analysis.
The components of the Company's statements of operations, expressed as a
percentage of net sales, are as follows:
<TABLE>
<CAPTION>
Three months ended
March 31,
---------------------
2000 1999
------ ------
<S> <C> <C>
Net sales 100.0% 100.0%
Cost of sales 50.3 63.7
------ ------
Gross profit 49.7 36.3
------ ------
Operating expenses:
Engineering, research and development 13.4 35.9
Selling, general and administrative 18.5 41.8
------ ------
Total operating expenses 31.9 77.7
------ ------
Operating income (loss) 17.8 (41.4)
Interest income 3.9 9.2
Other expense, net (0.3) (0.7)
------ ------
Income (loss) before income taxes 21.4 (32.9)
Provision for income taxes 3.4 0.9
------ ------
Net income (loss) 18.0% (33.8)%
====== ======
</TABLE>
-9-
<PAGE> 10
RESULTS OF OPERATIONS
Net Sales
Net sales for the quarter ended March 31, 2000 were $53.4 million, a 207.9%
increase from net sales of $17.3 million in the comparable quarter last year.
The increase was driven by higher prober system unit sales as customers
continued to spend for capacity expansion in response to the growth in demand
for semiconductors.
For the quarters ended March 31, 2000 and 1999, net sales were comprised of
prober systems ($44.6 million and $10.1 million, respectively), yield management
software and inspection products ($2.3 million and $2.7 million, respectively),
and aftermarket sales, consisting primarily of service, spare parts and upgrades
($6.5 million and $4.5 million, respectively) in support of the prober system
business.
For the quarter ended March 31, 2000, international sales accounted for 46.9% of
net sales as compared to 38.5% for the same period last year. During the current
quarter, the Company experienced sales growth, in absolute dollars, across all
its major geographic markets. The increase in the percentage of international
sales from 1999 was due to a larger percentage increase in both European and
Asian Pacific sales, relative to the increase in North American sales.
Historically, the semiconductor and semiconductor manufacturing equipment
industries have been cyclical; therefore, the Company's results of operations
for the three months ended March 31, 2000 may not necessarily be indicative of
future operating results. Demand for the Company's products can change from
period to period due to volatility in product demand and pricing. As a result of
the uncertainties in this market environment, any rescheduling or cancellation
of planned capital purchases by semiconductor manufacturers will cause the
Company's sales to fluctuate on a quarterly basis.
Gross Profit
Gross profit, as a percentage of sales, was 49.7% for the first quarter of 2000,
compared to 36.3% for the first quarter of 1999. The increase was due primarily
to manufacturing efficiencies as a result of the larger production volume in
2000.
The Company believes that its gross profit will continue to be affected by a
number of factors, including competitive pressures, changes in demand for
semiconductors, changes in product mix, level of software sales, and excess
manufacturing capacity costs.
Engineering, Research and Development
Engineering, research and development expenses were $7.1 million for the first
quarter of 2000, up 14.8% from $6.2 million in the comparable quarter last year.
The increase was primarily due to an increase in workforce to support both the
hardware and software businesses. In addition, the Company incurred costs
related to the move to its new facilities in the current quarter. As a
percentage of sales, these expenses decreased to 13.4% in the first quarter of
2000 from 35.9% in the same period last year due to higher sales in 2000.
Engineering, research and development expenses consist primarily of salaries,
project materials, consultant fees, and other costs associated with the
Company's ongoing efforts in hardware and software product development and
enhancement.
-10-
<PAGE> 11
Selling, General and Administrative
Selling, general and administrative expenses were $9.9 million for the first
quarter of 2000, up 36.4% from $7.2 million in the comparable quarter last year.
The increase was primarily due to accrued employee incentive compensation as the
Company returned to profitability, and additional occupancy costs related to the
Company's move to its new facilities. As a percentage of sales, these expenses
decreased to 18.5% in the first quarter of 2000 from 41.8% in the same period
last year due to higher sales in 2000.
Interest Income
Interest income was $2.1 million for the first quarter of 2000 compared to $1.6
million for the same quarter last year. The increase in interest income was
principally due to a shift to higher yielding taxable instruments and higher
average cash balances.
Income Taxes
The Company's estimated effective tax rate for the three months ended March 31,
2000 was 16% compared to an income tax provision of $0.1 million for the first
quarter of 1999. The Company's estimated tax rate for the first quarter of 2000
includes the partial release of the valuation allowance related to net operating
losses and tax credit carryforwards and the utilization of the current year
estimated research and development tax credit. The 1999 first quarter tax
provision represented foreign income and withholding taxes only, as the
Company's federal and state taxes were estimated to be immaterial due to its
loss position at the time. Management concluded that a partial valuation
allowance against its net deferred tax assets is required due to uncertainties
surrounding their realization.
Other Issues
In December 1999, the staff of the Securities and Exchange Commission issued
Staff Accounting Bulletin No. 101 ("SAB 101"), Revenue Recognition in Financial
Statements. SAB 101 was amended by SAB 101A which delayed the implementation
date of SAB 101 for calendar year end reporting companies, including
Electroglas, to the quarter ending June 30, 2000. The Company is currently
evaluating SAB 101 and is uncertain as to what impact, if any, SAB 101 will have
on its revenues and results of operations for the quarter ending June 30, 2000
and subsequent periods. The impact of SAB 101, if any, will be reported as a
change in accounting principle in accordance with FASB Statement No. 3. This may
result in a significant cumulative effect change in accounting adjustment that
would be reflected in the Company's results of operations for the six months
ended June 30, 2000.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash, cash equivalents, and short-term investments were $150.7
million at March 31, 2000, an increase of $9.8 million from $140.9 million at
December 31, 1999.
Cash provided by operating activities was $6.3 million during the first quarter
of 2000. This was due to a net income of $9.6 million and noncash charges to
income of $2.4 million, offset by an increase in net assets of $5.7 million. The
negative effect from the changes in net assets was due to an increase of $13.1
million in accounts receivable resulting from a higher level of shipments
towards the end of the current quarter, and an increase of $1.3 million in
inventories. This was offset partially by an increase of $4.9 million in
accounts payable, an increase of $2.8 million in other liabilities, and a
decrease of $0.9 million in other assets.
-11-
<PAGE> 12
Cash used in investing activities was $18.0 million due primarily from net
maturities of investments of $13.4 million, and capital expenditures of $4.1
million to equip the Company's new facilities.
Cash provided by financing activities was $8.2 million. This resulted from the
sale of common stock of $8.5 million under employee stock plans, offset by net
payments of $0.2 million on short-term borrowings by the Company's Japanese
subsidiary
The Company's Japanese subsidiary has credit facilities with a total borrowing
capacity of approximately $5.7 million (denominated in Yen) with two Japanese
banks. As of March 31, 2000, the amount outstanding was $1.4 million. These
facilities enable the Company's Japanese subsidiary to finance its working
capital requirements locally.
In March 1997, the Company entered into a $12.0 million five-year operating
lease for approximately 21.5 acres of land in San Jose, California. On July 1,
1998, the lease agreement was amended to provide a construction allowance of
$43.0 million for certain buildings currently under construction on the land.
The monthly payments are based on the London Interbank Offering Rate (LIBOR). At
current interest rates and based on the lease amount of $43.8 million at March
31, 2000, the annual lease payments currently represent approximately $2.7
million. At the end of the lease, the Company has the option to purchase the
land and buildings for approximately $55.0 million. The guaranteed residual
payment on the lease is approximately $55.0 million.
The lease contains certain restrictive covenants. At March 31, 2000, the Company
was in compliance with these covenants. In addition, the Company was in
compliance with its lease collateral requirements and was not required to
collateralize the lease. The Company voluntarily collateralized $43.8 million as
of March 31, 2000, which was included in cash and cash equivalents since it can
withdraw the cash with 10 days notice. The amount of collateralization will
increase as funding increases over the remaining construction period.
Historically, the Company has generated cash in an amount sufficient to fund its
operations. The Company anticipates that its existing capital resources and cash
flow generated from future operations will enable it to maintain its current
level of operations and its planned operations including capital expenditures
for the foreseeable future.
VOLATILITY OF STOCK PRICE
The Company believes that any of the following factors can cause the price of
the Company's Common Stock to fluctuate, perhaps substantially: announcements of
developments related to the Company's business, fluctuations in the Company's
operating results, sales of substantial amounts of securities of the Company in
the marketplace, general conditions in the semiconductor industry or worldwide
economy, a shortfall in revenue or earnings from or changes in analysts'
expectations, announcements of technological innovations or new products or
enhancements by the Company or its competitors, developments in patents or other
intellectual property rights, and changes in the Company's relationships with
certain customers and suppliers. In addition, in recent years, the stock market
in general, and the market for the shares of small capitalization stocks in
particular, including the Company's, have experienced extreme price fluctuations
which have often been unrelated to the operating performance of affected
companies. There can be no assurance that the market price of the Company's
Common Stock will not continue to experience significant fluctuations in the
future, including fluctuations that are unrelated to the Company's performance.
-12-
<PAGE> 13
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISKS
For financial market risks related to changes in interest rates and foreign
currency exchange rates, refer to Part II: Item 7a, "Quantitative and
Qualitative Disclosure About Market Risks," in the Company's Annual Report on
Form 10-K for the year ended December 31, 1999.
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
27 Financial Data Schedule
(b) Reports on Form 8-K:
None
-13-
<PAGE> 14
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.
ELECTROGLAS, INC.
DATE: May 12, 2000 BY: /s/ Armand J. Stegall
------------------ -----------------------------------
Armand J. Stegall
Chief Financial Officer
-14-
<PAGE> 15
INDEX TO EXHIBITS
EXHIBIT DESCRIPTION
27 Financial Data Schedule
-15-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF OPERATIONS, THE CONSOLIDATED BALANCE SHEETS, AND THE
ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 57,274
<SECURITIES> 93,410
<RECEIVABLES> 42,527
<ALLOWANCES> 438
<INVENTORY> 16,170
<CURRENT-ASSETS> 210,938
<PP&E> 33,285
<DEPRECIATION> 23,058
<TOTAL-ASSETS> 226,739
<CURRENT-LIABILITIES> 29,537
<BONDS> 0
0
0
<COMMON> 208
<OTHER-SE> 195,204
<TOTAL-LIABILITY-AND-EQUITY> 226,739
<SALES> 53,367
<TOTAL-REVENUES> 53,367
<CGS> 26,831
<TOTAL-COSTS> 26,831
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9
<INCOME-PRETAX> 11,457
<INCOME-TAX> 1,833
<INCOME-CONTINUING> 9,624
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,624
<EPS-BASIC> 0.48
<EPS-DILUTED> 0.45
</TABLE>
