<PAGE> 1
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDING MARCH 31, 1999
COMMISSION FILE NUMBER 000-22755
---------
COMPUTER MOTION, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified on in its charter)
DELAWARE 77-0458805
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
130-B CREMONA DRIVE
GOLETA, CA 93117
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(805) 968-9600
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(Registrant's telephone number, including area code)
Indicate by check /X/ whether the registrant (1) has filed all reports required
to be filed by Sections 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
--- ---
As of May 4, 1999 there were 8,416,425 shares of the Registrant's common stock
outstanding.
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
COMPUTER MOTION, INC.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
---------------------------------
1999 1998
----------- -----------
<S> <C> <C>
Revenue $ 3,952,000 $ 2,077,000
Cost of revenue 1,714,000 893,000
----------- -----------
Gross profit 2,238,000 1,184,000
Selling, general and administrative expense 2,973,000 2,575,000
Research and development expense 2,234,000 1,745,000
----------- -----------
Loss from operations (2,969,000) (3,136,000)
Other income (239,000) (413,000)
----------- -----------
Loss before income taxes (2,730,000) (2,723,000)
Provision for taxes 6,000 7,000
----------- -----------
Net loss $(2,736,000) $(2,730,000)
=========== ===========
Weighted average shares outstanding used
to compute net loss per share 8,389,000 7,792,000
=========== ===========
Net loss per share - basic and diluted $ (.33) $ (.35)
=========== ===========
</TABLE>
See notes to condensed financial statements.
2
<PAGE> 3
COMPUTER MOTION, INC.
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998(1)
------------ ------------
(Unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 10,367,000 $ 5,577,000
Marketable securities 7,727,000 15,736,000
Accounts receivable 3,842,000 2,856,000
Inventories 3,136,000 3,281,000
Prepaid expenses 461,000 347,000
------------ ------------
Total current assets 25,533,000 27,797,000
Plant and equipment, net 2,519,000 2,375,000
Other assets 267,000 272,000
------------ ------------
Total assets $ 28,319,000 $ 30,444,000
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,882,000 $ 1,623,000
Accrued expenses 2,045,000 1,951,000
------------ ------------
Total current liabilities 3,927,000 3,574,000
Shareholders' equity:
Preferred stock, $.001 par value; authorized-5,000,000 shares -- --
Common stock, $.001 par value; authorized 25,000,000 shares
outstanding - 8,404,479 and 7,916,316 shares 8,000 8,000
Additional paid-in capital 61,008,000 60,813,000
Deferred compensation expense (690,000) (753,000)
Accumulated deficit (35,934,000) (33,198,000)
------------ ------------
Total shareholders' equity 24,392,000 26,870,000
------------ ------------
Total liabilities and shareholders' equity $ 28,319,000 $ 30,444,000
============ ============
</TABLE>
- -------------
(1) Derived from audited financial statements for the year ended December 31,
1998.
See notes to condensed financial statements.
3
<PAGE> 4
COMPUTER MOTION, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-------------------------------
1999 1998
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (2,736,000) $ (2,730,000)
Adjustments to reconcile net loss to cash used by operating activities:
Depreciation and amortization 204,000 87,000
Provision for doubtful accounts 51,000 43,000
Common stock issued for services -- 24,000
Compensation expense for stock options, warrants and common stock
issued below fair market value 63,000 169,000
Other (16,000) (75,000)
Increase in working capital (652,000) (229,000)
------------ ------------
Net cash used in operating activities (3,086,000) (2,711,000)
Cash flows from investing activities:
Purchase of plant and equipment (347,000) (414,000)
Net proceeds from short-term investments 8,009,000 (145,000)
------------ ------------
Net cash provided by (used in) investing activities 7,662,000 (559,000)
Cash flows from financing activities:
Proceeds from common stock and warrant issuance -- 40,000
Proceeds from stock option and warrant exercises 214,000 639,000
------------ ------------
Net cash provided by financing activities 214,000 679,000
------------ ------------
Increase (decrease) in cash and cash equivalents 4,790,000 (2,591,000)
Cash and cash equivalents at beginning of period 5,577,000 22,555,000
------------ ------------
Cash and cash equivalents at end of period $ 10,367,000 $ 19,964,000
============ ============
</TABLE>
See notes to condensed financial statements.
4
<PAGE> 5
COMPUTER MOTION, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
NOTE 1. BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and in accordance with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
financial 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.
The operating results of the interim periods presented are not
necessarily indicative of the results expected for the year ending December 31,
1999 or for any other interim period. The accompanying condensed financial
statements should be read in conjunction with the audited financial statements
and notes thereto for the year ended December 31, 1998 included in the Company's
Annual Report on Form 10-K for the year ended December 31, 1998 as filed with
the Securities and Exchange Commission.
NOTE 2. NET LOSS PER SHARE
Statement of Financial Accounting Standard ("SFAS") No. 128, "Earnings
Per Share," requires presentation of both basic and diluted net loss per share
in the financial statements. The Company's basic net loss per share is the same
as its diluted net loss per share because inclusion of outstanding stock options
and warrants in the calculation is antidilutive. Net loss per share is based on
the weighted average number of common shares outstanding.
NOTE 3. INITIAL PUBLIC OFFERING
The Company closed its initial public offering ("IPO") of 2,500,000
shares of common stock at a price of $14.00 per share in August 1997. In
September 1997, the underwriters exercised an option to purchase an additional
375,000 shares of common stock at $14.00 per share. Net proceeds of
approximately $37,000,000 were received by the Company. All shares of
convertible preferred stock were converted to common stock upon the IPO.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
This report contains forward looking statements that involve risks and
uncertainties. The Company's actual results may differ materially due to factors
that include, but are not limited to, the risks discussed herein under "Risk
Factors That May Affect Future Results" as well as those discussed in the "Risk
Factors That May Affect Future Results" section of the Company's Annual Report
on Form 10-K for the year ended December 31, 1998.
5
<PAGE> 6
OVERVIEW
Computer Motion, Inc. (the "Company") develops and markets proprietary
robotic and computerized surgical systems that are intended to enhance a
surgeon's performance and centralize and simplify a surgeon's control of the
operating room ("OR"). The Company believes that its products will provide
surgeons with the precision and dexterity necessary to perform complex,
minimally invasive surgical procedures, as well as enable surgeons to control
critical devices in the OR through simple verbal commands. The Company believes
that its products will broaden the scope and increase the effectiveness of
minimally invasive surgery, improve patient outcomes, and create a safer, more
efficient and cost effective OR.
The Company's AESOP(R) robotic endoscope positioning system is Food and
Drug Administration ("FDA") cleared. AESOP allows direct surgeon control of the
endoscope through simple verbal commands, eliminating the need for a member of a
surgical staff to manually control the camera and providing a more stable and
sustainable endoscopic image. The Company believes that AESOP is the world's
first FDA-cleared robot and first voice control interface for a surgical device.
Several hundred AESOP units have been sold worldwide, which the Company believes
have been used to perform tens of thousands of procedures.
The Company's HERMES(TM) Control Center is designed to enable a surgeon
to directly control multiple OR devices, including various laparoscopic,
arthroscopic and video devices, as well as the Company's robotic devices,
through simple verbal commands. HERMES also provides standardized visual and
digitized voice feedback to a surgical team. The Company believes that the
enhanced control and feedback provided by HERMES has the potential to improve
safety, increase efficiency, shorten procedure times and reduce costs. Seven 510
(k) submissions relating to HERMES have been cleared by the FDA and Stryker
Corporation is currently marketing HERMES under an OEM agreement with the
Company.
The Company's ZEUS(TM) Robotic Surgical System is designed to
fundamentally improve a surgeon's ability to perform complex surgical procedures
and enable new, minimally invasive surgical procedures, including fully
endoscopic multivessel coronary artery bypass grafts ("E-CABG(TM)") which are
currently very difficult or impossible to perform endoscopically. ZEUS is
comprised of three surgeon-controlled robotic arms, one of which positions the
endoscope and two of which manipulate surgical instruments. The Company believes
that ZEUS will improve a surgeon's dexterity and precision and enhance
visualization of, and access to, confined operative sites. The Company also
believes that new minimally invasive surgical procedures performed with ZEUS
will result in reduced patient pain and trauma, fewer complications, lessened
cosmetic concerns and shortened convalescent periods and will increase the
number of patients qualified for certain surgical procedures. In addition, the
Company believes that an increase in minimally invasive procedures will result
in lower overall healthcare costs to providers, payors and patients. The Company
has completed Phase I clinical trials for both ZEUS-based tubal reanastomosis
procedures and ZEUS-based cardiac procedures under Investigational Device
Exemptions ("IDE"). The Company is currently seeking clearance from the FDA to
commence a multi-center pivotal ZEUS-based cardiac clinical trial in the United
States and will be seeking clearance from the FDA to commence other ZEUS-based
cardiac and non-cardiac clinical trials within the next several months.
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<PAGE> 7
The Company has sustained significant losses since inception and
expects to continue to incur significant losses due to research and development
efforts, costs associated with obtaining regulatory approvals and clearances,
continued marketing expenditures to increase sales and other costs associated
with the Company's anticipated growth. Furthermore, the Company anticipates that
its operating results may fluctuate significantly from quarter to quarter in the
future, depending on a number of factors, many of which are outside the
Company's control. These factors include timing and results of clinical trials,
delays associated with FDA and other clearance processes, clinician, hospital
and payor acceptance of the Company's products, the number, timing and
significance of product enhancements and new products by the Company and its
competitors, health care reimbursement policies and product performance and
quality issues.
RESULTS OF OPERATIONS
Three Months Ended March 31, 1999 compared to the Three Months Ended March 31,
1998.
Revenue. Revenue increased $1,875,000 (90%) to $3,952,000 for the three
months ended March 31, 1999 from $2,077,000 for the same period in 1998. The
Company's HERMES(TM) and ZEUS(TM) product lines were principally responsible for
the revenue increase. HERMES revenue of $1,154,000 for the quarter was up 382%
from prior year levels and resulted mainly from commercial shipments of the
HERMES Control Center and related ancillary products under the Company's OEM
arrangement with its initial HERMES alliance partner, Stryker Corporation. ZEUS
revenue of $1,209,000 for the quarter was up 307% from prior year levels and
related to the sale of one ZEUS system in Europe and on-going contractual
payments from hospitals where ZEUS Robotic Surgical Systems have been installed
under research and clinical development arrangements. AESOP(R) first quarter
revenue of $1,589,000 increased 3% over the previous year's first quarter level
mainly as a result of higher average selling prices.
Gross Profit. Gross profit increased $1,054,000 (89%) to $2,238,000 for
the three months ended March 31, 1999 from $1,184,000 for the same period in
1998. Gross margin decreased slightly to 56.6% in the first quarter 1999 from
57.0% in the first quarter 1998. Gross margin continues to be negatively
affected by costs associated with the ZEUS product line as older products in the
field are replaced with upgraded or new products and as the Company places ZEUS
systems under short-term rental agreements. Pressure on gross margins will
continue until the Company receives FDA clearance for ZEUS and is able to
produce and sell at a greater volume.
Selling, General and Administrative. Selling, general and
administrative expense increased $398,000 (15%) to $2,973,000 for the three
months ended March 31, 1999 from $2,575,000 for the same period in 1998. The
increase was due mainly to the addition of domestic sales and field support
personnel as the Company expanded its domestic sales force and service and
training capability. The new hires caused increased recruiting and relocation
costs, and higher travel and business related expenses. The Company expects
selling, general and administrative expense to increase in future periods as it
continues to expand its revenue and its sales, service and training capability.
Research and Development. Research and development expense increased
$489,000 (28%) to $2,234,000 for the three months ended March 31, 1999 from
$1,745,000 for the same period in 1998, primarily as a result of the addition of
personnel, increased development efforts and pre-clinical and clinical trial
activities related principally to the ZEUS product line. The Company expects
research and
7
<PAGE> 8
development expenditures to increase as it continues to develop its technologies
and conduct clinical trials.
Other Income. Other income of $239,000 for the three months ended March
31, 1999 compared to other income of $413,000 for the three months ended March
31, 1998. Other income for both periods was principally comprised of interest
income derived from proceeds of the Company's IPO which was completed in August
1997.
Income Taxes. Minimal provisions for the state franchise taxes have
been recorded for the Company's pre-tax losses to date. As of December 31, 1998,
the Company had federal and state net operating loss (NOL) carryforwards of
approximately $28,000,000 and $8,000,000, respectively which are available to
offset future federal and state taxable income. Federal carryforwards expire
fifteen years after the year of loss and state carryforwards expire five years
after the year of loss. The Company has provided a full valuation allowance on
the deferred tax asset because of the uncertainty regarding its realization.
Net Loss. The net loss for the first quarter 1999 was $2,736,000 ($.33
per share) compared to $2,730,000 ($.35 per share) for the first quarter 1998 as
increased gross profits derived from increased revenue were offset by the sum of
increased operating expenses and reduced other income. Weighted average shares
outstanding increased from 7,792,000 to 8,389,000 mainly as a result of the
exercise of stock options and warrants.
FINANCIAL CONDITION
Since its inception, the Company's expenses have significantly exceeded
its revenue, resulting in an accumulated deficit of $35,934,000 as of March 31,
1999. Until its initial public offering in August 1997, the Company had
primarily relied on proceeds from issuance of preferred and common stock and
bridge debt financing to fund its operations.
During the third quarter 1997 the Company filed an S-1 registration
statement with the Securities and Exchange Commission (Registration No.
333-29505) for 2,875,000 shares of its common stock and on August 15, 1997 the
Company completed its initial public offering by selling 2,500,000 shares of its
common stock at $14.00 per share, less underwriting discounts and commissions of
$.98 per share, to its underwriters, Montgomery Securities and Piper Jaffray,
Inc. The Company received net proceeds of $32,550,000 from this sale before
deducting offering expenses. Effective upon the closing of the IPO, all of the
outstanding shares of convertible preferred stock of the Company were converted
into 2,344,387 shares of common stock.
In September 1997, the underwriters exercised their option to purchase
an additional 375,000 shares of common stock directly from the Company at a
price of $14.00 per share, less underwriting discounts and commissions of $.98
per share. The Company received net proceeds of $4,883,000 from this sale before
deducting offering expenses.
In conjunction with completing the IPO, the Company incurred total
direct offering expenses of $727,000. Total net proceeds to the Company from the
IPO and the exercise of the over-allotment option, after deducting underwriting
discounts and commissions and total direct offering expenses, was $36,706,000.
8
<PAGE> 9
In 1997, the Company used $3,250,000 of the net proceeds from the IPO
for repayment of certain outstanding indebtedness and $490,000 to make capital
purchases. In 1998, the Company made capital purchases totaling $1,784,000. For
the first three months of 1999, capital purchases were $347,000. Proceeds from
the IPO are also funding the Company's current operating losses. The remaining
net proceeds of the IPO of $18,094,000 have been invested in short-term
investment grade debt securities.
At March 31, 1999, the Company's current ratio (current assets divided
by current liabilities) was 6.5 to 1 versus 7.8 to 1 at December 31, 1998, and
reflects the use of the initial public offering proceeds to fund operations.
For the three months ended March 31, 1999, the Company's net cash used
by operating activities of $3,086,000 was primarily attributable to the net loss
and, to a lessor extent, an increase in accounts receivable.
For the three months ended March 31, 1999, cash outflow from purchases
of plant and equipment was $347,000. The Company currently has no material
commitments for capital expenditures, but is planning to procure additional
leased space in anticipation of continued business growth.
For the three months ended March 31, 1999, net cash provided by
financing activities of $214,000 was attributable to proceeds from stock option
and warrant exercises.
Our operations to date have consumed substantial amounts of cash, and
we expect our capital and operating expenditures to continue to increase. We
believe that the net proceeds of our initial public offering should be adequate
to fund our expected operating losses and satisfy our capital requirements at
least through 1999. Our need for additional financing will depend upon numerous
factors, including, but not limited to, the extent and duration of our future
operating losses, the level and timing of future revenue and expenditures, the
progress and scope of clinical trials, the timing and costs required to receive
both United States and international governmental approvals or clearances,
market acceptance of new products, the results and scope of ongoing research and
development projects, the costs of training physicians to become proficient in
the use of our products and procedures, and the costs of further developing
marketing and distribution capabilities. To the extent that existing resources
are insufficient to fund our activities, we may seek to raise additional funds
through public or private financing. We can not assure you that additional
financing, if required, would be available on acceptable terms, if at all. If
adequate funds are not available, our business, financial condition and results
of operations would be materially adversely affected.
YEAR 2000 MATTERS
Many existing information technology ("IT") systems, such as computer systems
and software products, were not designed to correctly process dates after
December 31, 1999. We have assessed the impact of such "Year 2000" issues on our
products and internal IT systems, as well as on our significant suppliers. We
have completed testing of our products and have not identified any areas of
non-compliance with respect to Year 2000 issues. We have also evaluated our
internal IT systems and have determined that our business system is not Year
2000 compliant. We have developed a plan to replace this system in a timely
fashion at a cost of approximately $300,000. We have also initiated discussions
with our significant suppliers regarding their plans to investigate, identify
and remedy their Year 2000 issues. While we
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<PAGE> 10
anticipate cooperation in these efforts from our significant suppliers, they are
outside our control. If any of our significant suppliers fail to appropriately
address their Year 2000 issues, such failure could have a material adverse
effect on our business, financial condition and results of operations. For
example, if Year 2000 problems experienced by any of our significant suppliers
result in or contribute to delays or interruptions of our delivery of products
or services, such delays or interruptions could have a material adverse effect
on our business, financial condition and results of operations. In addition,
many of our customers depend, in part, on third-party payors, both private and
governmental, for much of their revenues. Any inability of our customers to
obtain payment from such payors could impact their ability to pay for our
products. Finally, we could be materially adversely effected by a disruption in
the economy generally resulting from Year 2000 issues.
Should we not be completely successful in mitigating internal and
external Year 2000 risks, the result could be a disruption of our operations,
including among other things, a temporary inability to process transactions,
manufacture products, send invoices, or engage in similar normal business
activities. We believe that under a worst case scenario, we could continue the
majority of normal business activities on a manual basis. As to our suppliers
and customers, we do not have a contingency plan with respect to potential Year
2000 failures of these parties; however, in the event that we can not obtain
reasonable assurances from current suppliers, particularly single source
suppliers, we may chose to qualify additional suppliers.
RISK FACTORS THAT MAY AFFECT FUTURE RESULTS
Computer Motion operates in a rapidly changing environment that
involves a number of risks, some of which are beyond our control. The following
discussion summarizes some of these risks which could affect our actual future
results and could cause them to differ materially from any forward-looking
statements we have made.
We have a limited operating history and have not yet made a profit. The
HERMES and ZEUS product lines are important to our future success and ZEUS has
not achieved U.S. regulatory clearance, and neither product has achieved market
acceptance. Government regulation of the medical device industry is strict and
regulatory approvals are generally lengthy, expensive and uncertain. Third-party
payors may be unwilling to reimburse hospitals for use of our products. We have
competition and there are alternative treatments and procedures to using our
products. Our products are subject to rapid technological change and our success
in part, is based on our ability to obtain patent protection for our products.
We are dependent on sole source suppliers for principal components of our
products. Our anticipated growth will place significant demands on our
management and resources, particularly in research and development, sales and
marketing and manufacturing. A more detailed discussion of factors that could
affect our future results can be found in the "Risk Factors That May Affect
Future Results" section of the Company's Annual Report on Form 10-K for the year
ended December 31, 1998 and we strongly encourage you to review same.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company's financial instruments include cash and short-term
investment grade debt securities. At March 31, 1999, the carrying values of the
Company's financial instruments approximated their fair values based on current
market prices and rates.
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<PAGE> 11
It is the Company's policy not to enter into derivative financial instruments.
The Company does not currently have material foreign currency exposure as the
majority of its international transactions are denominated in U.S. currency.
Accordingly, the Company does not have significant overall currency exposure at
March 31, 1999.
11
<PAGE> 12
PART II OTHER INFORMATION
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
Reference is made to the discussion of the use of proceeds of the Company's
initial public offering under the caption "Financial Condition" in Management's
Discussion and Analysis.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits:
27.1 - Financial data schedule
b) No Reports on Form 8-K were filed during the quarter ended March 31, 1999.
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.
DATE: May 6, 1999 COMPUTER MOTION, INC.
By: /s/ Stephen L. Wilson
-------------------------------------
STEPHEN L. WILSON
Executive Vice President, Chief
Financial Officer and Secretary
(Principal Financial and Accounting
Officer)
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED BALANCE SHEETS AND CONDENSED STATEMENTS OF OPERATIONS FOUND ON PAGES
TWO AND THREE OF THE COMPANY'S FORM 10-Q FOR THE YEAR TO DATE AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 10,367,000
<SECURITIES> 7,727,000
<RECEIVABLES> 4,042,000
<ALLOWANCES> 200,000
<INVENTORY> 3,136,000
<CURRENT-ASSETS> 25,533,000
<PP&E> 4,411,000
<DEPRECIATION> 1,892,000
<TOTAL-ASSETS> 28,319,000
<CURRENT-LIABILITIES> 3,927,000
<BONDS> 0
0
0
<COMMON> 8,000
<OTHER-SE> 24,384,000
<TOTAL-LIABILITY-AND-EQUITY> 28,319,000
<SALES> 3,952,000
<TOTAL-REVENUES> 3,952,000
<CGS> 1,714,000
<TOTAL-COSTS> 1,714,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 51,000
<INTEREST-EXPENSE> 4,000
<INCOME-PRETAX> (2,730,000)
<INCOME-TAX> 6,000
<INCOME-CONTINUING> (2,736,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,736,000)
<EPS-PRIMARY> (0.33)
<EPS-DILUTED> (0.33)
</TABLE>
