UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------------------
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 28, 1997
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 0-21970
--------------------------------------
ACTEL CORPORATION
(Exact name of Registrant as specified in its charter)
California 77-0097724
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
955 East Arques Avenue
Sunnyvale, California 94086-4533
(Address of principal executive offices) (Zip Code)
(408) 739-1010
(Registrant's telephone number, including area code)
--------------------------------------
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
<PAGE>
PART I -- FINANCIAL INFORMATION
Item 1. Condensed Financial Statements.
ACTEL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
---------------------------------------- --------------------------
Sept. 28, Sept. 29, June 29, Sept. 28, Sept. 29,
1997 1996 1997 1997 1996
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net revenues................................ $ 38,220 $ 38,014 $ 40,823 $ 118,846 $ 109,751
Costs and expenses:
Cost of revenues......................... 15,788 16,164 16,731 48,957 48,040
Research and development................. 6,641 6,417 6,461 19,649 18,078
Selling, general, and administrative..... 10,355 9,854 10,394 30,881 27,743
------------ ------------ ------------ ------------ ------------
Total costs and expenses........... 32,784 32,435 33,586 99,487 93,861
------------ ------------ ------------ ------------ ------------
Income from operations...................... 5,436 5,579 7,237 19,359 15,890
Interest income and other, net.............. 559 338 413 1,312 1,040
------------ ------------ ------------ ------------ ------------
Income before tax provision................. 5,995 5,917 7,650 20,671 16,930
Tax provision............................... 2,074 2,012 2,716 7,285 6,142
------------ ------------ ------------ ------------ ------------
Net income.................................. $ 3,921 $ 3,905 $ 4,934 $ 13,386 $ 10,788
============ ============ ============ ============ ============
Net income per share........................ $ 0.18 $ 0.18 $ 0.23 $ 0.61 $ 0.51
============ ============ ============ ============ ============
Shares used in computing net income per share 21,475 21,890 22,050 21,351 22,172
============ ============ ============ ============ ============
</TABLE>
<PAGE>
ACTEL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
Sept. 28, Dec. 29,
1997 1996
------------ ------------
(1) (2)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents........................................................... $ 9,994 $ 3,543
Short-term investments.............................................................. 43,888 25,626
Accounts receivable, net............................................................ 21,541 29,495
Inventories......................................................................... 23,071 26,848
Other current assets................................................................ 20,071 19,093
------------ ------------
Total current assets.......................................................... 118,565 104,605
Property and equipment, net............................................................ 15,401 15,973
Investment in Chartered Semiconductor.................................................. 10,680 10,680
Other assets........................................................................... 4,818 5,454
------------ ------------
$ 149,464 $ 136,712
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable.................................................................... $ 11,987 $ 9,933
Accrued salaries and employee benefits.............................................. 4,217 5,967
Other accrued liabilities........................................................... 252 5,922
Deferred income..................................................................... 28,366 27,386
Total current liabilities..................................................... 44,822 49,208
Commitments
Redeemable convertible preferred stock................................................. -- 18,147
Shareholders' equity:
Common stock........................................................................ 1,172 18
Additional paid-in capital.......................................................... 83,878 63,133
Accumulated earnings................................................................ 19,592 6,206
------------ ------------
Total shareholders' equity.................................................... 104,642 69,357
------------ ------------
$ 149,464 $ 136,712
============ ============
- ---------------------------------------
<FN>
(1) Unaudited.
(2) Derived from the audited financial statements at December 29, 1996, but
does not include all the information and footnotes required by
generally accepted accounting principles for complete financial
statements.
</FN>
</TABLE>
<PAGE>
ACTEL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited, in thousands)
<TABLE>
<CAPTION>
Nine Months Ended
-----------------------------
Sept. 28, Sept. 29,
1997 1996
-------------- -------------
<S> <C> <C>
Operating activities:
Net income ..................................................................... $ 13,386 $ 10,788
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation and amortization................................................. 5,926 4,518
Changes in operating assets and liabilities:
Accounts receivable......................................................... 7,954 (5,611)
Inventories................................................................. 3,777 817
Deferred income taxes....................................................... (144) --
Other current assets........................................................ (834) (2,920)
Accounts payable and accrued liabilities.................................... (5,366) (2,432)
Deferred income............................................................. 980 4,533
-------------- -------------
Net cash provided by operating activities..................................... 25,679 9,693
-------------- -------------
Investing activities:
Purchases of property and equipment............................................. (4,696) (4,093)
Purchases, sales and maturities of short-term investments, net.................. (18,263) (2,729)
Investment in Chartered Semiconductor........................................... -- (3,611)
Other assets.................................................................... (21) 407
-------------- -------------
Net cash used in investing activities....................................... (22,980) (10,026)
-------------- -------------
Financing activities:
Sale of common stock, net of repurchases........................................ 3,752 2,600
Principal payments under notes payable and capital lease obligations............ -- (66)
-------------- -------------
Net cash provided by financing activities................................... 3,752 2,534
-------------- -------------
Net increase in cash and cash equivalents....................................... 6,451 2,201
Cash and cash equivalents, beginning of period.................................. 3,543 17,691
-------------- -------------
Cash and cash equivalents, end of period........................................ $ 9,994 $ 19,892
============== =============
Supplemental disclosures of cash flows information and non-cash investing and
financing activities:
Cash paid for interest.......................................................... $ -- $ 3
Cash paid for taxes............................................................. 12,460 10,687
Conversion of preferred stock................................................... 18,147 --
</TABLE>
<PAGE>
ACTEL CORPORATION
Notes To Consolidated Interim Financial Statements
(unaudited)
1. Basis of Presentation and Summary of Significant Accounting Policies
The accompanying unaudited consolidated financial statements of Actel
Corporation (the "Company") 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, these
financial statements 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.
The consolidated financial statements include the accounts of the
Company and its wholly-owned subsidiaries. All significant intercompany accounts
and transactions have been eliminated in consolidation.
The financial statements should be read in conjunction with the audited
financial statements included in the Company's Annual Report to Shareholders for
the year ended December 29, 1996. The results of operations for the nine months
ended September 28, 1997, are not necessarily indicative of results that may be
expected for the entire year ending December 28, 1997.
2. Inventories
Inventories consist of the following:
<TABLE>
<CAPTION>
Sept. 28, Dec. 29,
1997 1996
-------------- -------------
<S> <C> <C>
Inventories:
Purchased parts and raw materials..................................................$ 1,827 $ 1,792
Work-in-process.................................................................... 14,825 17,080
Finished goods..................................................................... 6,419 7,976
-------------- -------------
$ 23,071 $ 26,848
============== =============
</TABLE>
Inventories are stated at the lower of cost (first-in, first-out) or
market (net realizable value). Given the volatility of the market for the
Company's products, the Company makes inventory provisions for potentially
excess and obsolete inventory based on backlog and forecast demand. However,
such backlog demand is subject to revisions, cancellations, and rescheduling.
Actual demand will inevitably differ from such backlog and forecast demand, and
such differences may be material to the financial statements. Excess inventory
increases handling costs and the risk of obsolescence, is a non-productive use
of capital resources, and delays realization of the price and performance
benefits associated with more advanced manufacturing processes.
3. Provision for Taxes
The Company's effective tax rate for the nine months ended September
28, 1997, was 35.2%. This rate is based on the estimated annual tax rate
complying with Statement of Financial Accounting Standards No. 109, "Accounting
for Income Taxes." This rate differs from the federal statutory rate due
primarily to state income taxes (net of federal benefit) and recognition of
certain deferred tax assets subject to valuation allowances as of September 28,
1997.
4. Earnings Per Share
Earnings per common and common equivalent share as presented on the
face of the statements of income represent primary earnings per share. Net
income per common and common equivalent share is based on the weighted average
common shares outstanding and dilutive common equivalent shares (using the
treasury stock or modified treasury stock method, whichever applies). Common
equivalent shares include stock options and warrants when appropriate. Dual
presentation of primary and fully diluted earnings per share has not been made
because the differences are insignificant.
In February 1997, the Financial Accounting Standards Board issued
Statement No. 128, "Earnings per Share", which is required to be adopted by
December 31, 1997. At that time, the Company will be required to change the
method currently used to compute earnings per share and to restate all prior
periods. Under the new requirements for calculating primary earnings per share,
the dilutive effect of stock options will be excluded. The impact is expected to
result in an increase in primary earnings per share for the third quarters ended
September 28, 1997, and September 29, 1996, of $ .01 and $.04, respectively, and
for the nine months ended on such dates of $ .05 and $ .10, respectively. The
impact of Statement No. 128 on the calculation of fully diluted earnings per
share for these quarters is not expected to be material.
5. Conversion of Preferred Stock
On March 12, 1997, Texas Instruments Incorporated converted all of the
outstanding shares of Series A Preferred Stock into 2,631,578 shares of Common
Stock.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
This Quarterly Report on Form 10-Q contains forward-looking statements
that involve risks and uncertainties. The Company's actual results may differ
significantly from the results discussed in such forward-looking statements.
Factors that might cause such a difference include, but are not limited to,
those discussed under the caption "Factors Affecting Future Operating Results."
Results of Operations
Net Revenues
The Company's net revenues for the third quarter of fiscal 1997 were
$38.2 million, which represents a decline of 6% compared with the Company's net
revenues for the second quarter of 1997 and an increase of 1% compared with the
Company's net revenues for the third quarter of 1996. Net revenues for the first
nine months of fiscal 1997 were $118.8 million, which represents an increase of
8% compared with the Company's net revenues for the first nine months of 1996.
The sequential decline in quarterly net revenues resulted primarily
from a 12% decline in unit sales of field programmable gate arrays ("FPGAs")
that was offset by an increase of 6% in the overall average selling price of
FPGAs. Unit sales of the Company's mature product families (defined as ACT 1 and
ACT 2) and new product families (defined as ACT 3, XL, DX and RH) both declined
sequentially, while the overall average selling price of the Company's mature
and new product families both increased sequentially.
The year-over-year growth in quarterly net revenues resulted primarily
from a 5% increase in the overall average selling price of FPGAs that was offset
by a 4% decline in unit sales. The year-over-year growth in nine-month net
revenues resulted primarily from a 9% increase in the overall average selling
price of FPGAs that was offset by a 1% decline in FPGA unit sales. The overall
average selling price of FPGAs increased year-over-year principally because of
proportionately greater unit shipments of new products, which tend to have
higher average selling prices.
As is typical in the semiconductor industry, the average selling prices
of the Company's products generally decline over the lives of such products. To
increase revenues, the Company seeks to increase unit sales of existing
products, principally by reducing prices, and to introduce and sell new
products. No assurance can be given that these efforts will be successful.
Gross Margin
Gross margin for the third quarter of 1997 was 58.7% of net revenues,
compared with 59.0% of net revenues for the second quarter of 1997 and 57.5% of
net revenues for the third quarter of 1996. Gross margin for the first nine
months of 1997 was 58.8% of net revenues, compared with 56.2% of net revenues
for the first nine months of 1996.
The sequential decline in gross margin resulted primarily from a
decline in the proportion of net revenues from sales of the Company's new
product families, which generally command higher margins.
The year-over-year improvement in quarterly and nine-month gross margin
resulted primarily from improved manufacturing yields. The Company also
benefited from appreciation in the value of the United States dollar versus the
Japanese yen.
As is typical in the semiconductor industry, margins on the Company's
products generally decline as the average selling prices of such products
decline. The Company seeks to offset margin erosion by selling a higher
percentage of new products, which tend to have higher margins than more mature
products, and by reducing costs. The Company seeks to reduce costs by improving
wafer yields, negotiating price reductions with suppliers, increasing the level
and efficiency of its testing and packaging operations, achieving economies of
scale by means of higher production levels, and increasing the number of die
produced per wafer by shrinking the die size of its products. No assurance can
be given that these efforts will be successful. The capability of the Company to
shrink the die size of its FPGAs is dependent on the availability of more
advanced manufacturing processes. Due to the custom steps involved in
manufacturing antifuse FPGAs, the Company typically obtains access to new
manufacturing processes later than its competitors using standard manufacturing
processes.
Research and Development
Research and development expenditures for the third quarter of 1997
were $6.6 million, or 17% of net revenues, compared with $6.5 million, or 16% of
net revenues, for the second quarter of 1997 and $6.4 million, or 17% of net
revenues, for the third quarter of 1996. The Company may boost the level of its
research and development expenditures over the next several quarters to
accelerate the introduction of new products. Research and development
expenditures may again increase as a percentage of net revenues for any or all
of such quarters.
Research and development expenditures for the first nine months of 1997
were $19.7 million, or 17% of net revenues, compared with $18.1 million, or 16%
of net revenues, for the first nine months of 1996. While research and
development expenditures for the first nine months of 1997 increased by 9%
compared with the first nine months of 1996, research and development
expenditures as a percentage of net revenues grew by only 1% due to the expanded
scope of the Company's operations.
The Company's research and development consists of circuit design,
software development, and process technology activities. The Company believes
that continued substantial investment in research and development is critical to
maintaining a strong technological position in the industry and, therefore,
expects to continue increasing its research and development expenditures. Since
the Company's antifuse FPGAs are manufactured using a customized process, the
Company's research and development expenditures will probably always be higher
as a percentage of net revenues than that of its major competitors.
Selling, General, and Administrative
Selling, general, and administrative expenses for the third quarter of
1997 were $10.4 million, or 27% of net revenues, compared with $10.4 million, or
25% of net revenues, for the second quarter of 1997 and $9.9 million, or 26% of
net revenues, for the third quarter of 1996. Selling, general, and
administrative expenditures for the first nine months of 1997 were $30.9
million, or 26% of net revenues, compared with $27.7 million, or 25% of net
revenues, for the first nine months of 1996. The Company currently intends to
boost its level of sales and marketing activity in support of new products over
the next several quarters. Selling, general, and administrative expenditures may
again increase as a percentage of net revenues for any or all of such quarters.
Tax Provision
The Company's effective tax rate for the three and nine months ended
September 28, 1997, was 34.6% and 35.2%, respectively. This rate is based on the
estimated annual tax rate complying with Statement of Financial Accounting
Standards No. 109, "Accounting for Income Taxes." This rate differs from the
federal statutory rate due primarily to state income taxes (net of federal
benefit), federal research and development credits, and the recognition of
certain deferred tax assets subject to valuation allowances as of September 28,
1997.
Liquidity and Capital Resources
At the end of the first nine months of 1997, the Company's cash, cash
equivalents, and short-term investments were $53.9 million, compared with $29.2
million at the beginning of 1997. The amount of cash, cash equivalents, and
short-term investments increased principally because of net income and reduced
accounts receivable and inventories.
The Company believes that existing cash, cash equivalents, and short
term investments, together with cash from operations, will be sufficient to meet
its cash requirements for 1997. A portion of available cash may be used for
investment in or acquisition of complementary businesses, products, or
technologies.
The Company has a line of credit with a bank that provides for
borrowings not to exceed $10,000,000. The agreement contains covenants that
require the Company to maintain certain financial ratios and levels of net
worth. As of September 28, 1997, the Company was in compliance with the
covenants for the line of credit. Borrowing against the line of credit bear
interest at the bank's prime rate. There were no borrowings against the line of
credit at September 28, 1997. The line of credit, which expires in May 1998, may
be terminated by either party upon not less than thirty day's prior written
notice.
The Company believes that the availability of adequate financial
resources is a substantial competitive factor. To take advantage of
opportunities as they arise, or to withstand adverse business conditions should
they occur, it may become prudent or necessary for the Company to raise
additional capital. The Company intends to continue monitoring the availability
and cost of potential capital resources, including equity, debt, and off-balance
sheet financing arrangements, and may consider raising additional capital on
terms that are acceptable to the Company. No assurance can be given that
additional capital will become available on acceptable terms.
Additional Unaudited Quarterly Information
The following table presents certain unaudited quarterly results for
each of the eight quarters in the period ended September 28, 1997. In the
opinion of management, all necessary adjustments (consisting only of normal
recurring accruals) have been included in the amounts stated below to present
fairly the unaudited quarterly results when read in conjunction with the audited
consolidated financial statements of the Company and notes thereto included in
the Company's Annual Report to Shareholders for the year ended December 29,
1996. These quarterly operating results are not necessarily indicative of the
results for any future period.
<PAGE>
<TABLE>
<CAPTION>
Three Months Ended
-------------------------------------------------------------------------------------------
Sept. 28, June 29, Mar. 30, Dec. 29, Sept. 29, June 30, Mar. 31, Dec. 31,
1997 1997 1997 1996 1996 1996 1996 1995
---------- --------- ---------- ---------- --------- ---------- --------- ----------
Unaudited (unaudited, in thousands except per share amounts)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Statements of Operations Data:
Net revenues.......................... $ 38,220 $ 40,823 $ 39,803 $ 39,027 $ 38,014 $ 36,694 $ 35,043 $ 32,553
Cost of revenues...................... 15,788 16,731 16,439 16,381 16,164 16,105 15,769 15,234
---------- --------- ---------- ---------- --------- ---------- --------- ----------
Gross profit.......................... 22,432 24,092 23,364 22,646 21,850 20,589 19,274 17,319
Research and development.............. 6,641 6,461 6,547 5,855 6,417 5,650 6,011 5,802
Selling, general, and administrative.. 10,355 10,394 10,131 10,651 9,854 9,582 8,308 7,849
---------- --------- ---------- ---------- --------- ---------- --------- ----------
Income from operations................ 5,436 7,237 6,686 6,140 5,579 5,357 4,955 3,668
Net income............................ $ 3,921 $ 4,934 $ 4,531 $ 4,153 $ 3,905 $ 3,606 $ 3,277 $ 3,878
Net income per share.................. $ 0.18 $ 0.23 $ 0.21 $ 0.19 $ 0.18 $ 0.17 $ 0.16 $ 0.19
========== ========= ========== ========== ========= ========== ========= ==========
Shares used in computing net income
per share........................... 22,172 21,890 22,082 21,893 21,475 21,467 21,068 20,808
========== ========= ========== ========== ========= ========== ========= ==========
Three Months Ended
-------------------------------------------------------------------------------------------
Sept. 28, June 29, Mar. 30, Dec. 29, Sept. 29, June 30, Mar. 31, Dec. 31,
1997 1997 1997 1996 1996 1996 1996 1995
---------- --------- ---------- ---------- --------- ---------- --------- ----------
As a Percentage of Net Revenues:
Net revenues.......................... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Cost of revenues...................... 41.3 41.0 41.3 42.0 42.5 43.9 45.0 46.8
---------- --------- ---------- ---------- --------- ---------- --------- ----------
Gross margin.......................... 58.7 59.0 58.7 58.0 57.5 56.1 55.0 53.2
Research and development.............. 17.4 15.8 16.4 15.0 16.9 15.4 17.2 17.8
Selling, general, and administrative.. 27.1 25.5 25.5 27.3 25.9 26.1 23.7 24.1
---------- --------- ---------- ---------- --------- ---------- --------- ----------
Income from operations................ 14.2 17.7 16.8 15.7 14.7 14.6 14.1 11.3
Net income............................ 10.3 12.1 11.4 10.6 10.3 9.8 9.4 11.9
</TABLE>
<PAGE>
Factors Affecting Future Operating Results
The Company's operating results are subject to general economic
conditions and a variety of risks characteristic of the semiconductor industry
(including booking and shipment uncertainties, wafer supply fluctuations, and
price erosion) or specific to the Company, any of which could cause the
Company's operating results to differ materially from past results. For a
discussion of such risks, see "Risk Factors" in Part I of the Company's Annual
Report on Form 10-K for 1996, which is incorporated herein by this reference.
PART II -- OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
The following exhibits are filed as part of, or incorporated by
reference into, this Quarterly Report on Form 10-Q:
11. Statement re computation of per share earnings
(b) Reports on Form 8-K
None
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.
ACTEL CORPORATION
Date: November 12, 1997 /s/ Henry L. Perret
--------------------------------------------------------
Henry L. Perret
Vice President of Finance
and Chief Financial Officer
(as principal financial officer
and on behalf of Registrant)
Exhibit 11
ACTEL CORPORATION
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
(unaudited, in thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
------------------------- -------------------------
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Primary:
Average weighted common shares outstanding................ 20,956 17,889 20,150 17,778
Net effect of dilutive stock options, warrants and
convertible preferred stock - based on the treasury
stock method using average market price................ 1,216 3,586 1,900 3,573
----------- ----------- ----------- -----------
Shares used in computing net income per share............. 22,172 21,475 22,050 21,351
=========== =========== =========== ===========
Net income ............................................... $ 3,921 $ 3,905 $ 13,386 $ 10,788
=========== =========== =========== ===========
Net income per share...................................... $ 0.18 $ 0.18 $ 0.61 $ 0.51
=========== =========== =========== ===========
Fully diluted:
Average weighted common shares outstanding................ 20,956 17,889 20,150 17,778
Net effect of dilutive stock options, warrants, and
convertible preferred stock - based on the treasury
stock method........................................... 1,216 3,866 1,900 3,845
----------- ----------- ----------- -----------
Shares used in computing net income per share............. 22,172 21,755 22,050 21,623
=========== =========== =========== ===========
Net income................................................ $ 3,921 $ 3,905 $ 13,386 $ 10,788
=========== =========== =========== ===========
Net income per share...................................... $ 0.18 $ 0.18 $ 0.61 $ 0.50
=========== =========== =========== ===========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-28-1997
<PERIOD-START> DEC-29-1996
<PERIOD-END> SEP-28-1997
<CASH> 9,994
<SECURITIES> 43,888
<RECEIVABLES> 24,423
<ALLOWANCES> 2,882
<INVENTORY> 23,011
<CURRENT-ASSETS> 118,565
<PP&E> 38,621
<DEPRECIATION> 23,220
<TOTAL-ASSETS> 149,464
<CURRENT-LIABILITIES> 44,822
<BONDS> 0
<COMMON> 83,878
0
0
<OTHER-SE> 19,592
<TOTAL-LIABILITY-AND-EQUITY> 149,464
<SALES> 118,846
<TOTAL-REVENUES> 118,846
<CGS> 48,957
<TOTAL-COSTS> 48,957
<OTHER-EXPENSES> 50,530
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,312
<INCOME-PRETAX> 20,671
<INCOME-TAX> 7,285
<INCOME-CONTINUING> 13,386
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,386
<EPS-PRIMARY> .61
<EPS-DILUTED> .61
</TABLE>
