SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 28, 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 No. 0-22384
MICRO COMPONENT TECHNOLOGY, INC.
(Exact name of registrant as specified in its charter)
Minnesota 41-0985960
- --------------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3850 North Victoria Street, Saint Paul, Minnesota 55126
- --------------------------------------------------------------------------------
(Address of principal executive offices)
(612) 482-5100
---------------------------------------------
(Registrant's 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
requirements for the past 90 days
Yes _____X_____ No_________
The number of shares outstanding of the Registrant's Common Stock, as of January
31, 1997 was 7,031,170.
Page 1 of 15 pages
Exhibit index on page 14
MICRO COMPONENT TECHNOLOGY, INC.
FORM 10-Q
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS 3
CONSOLIDATED STATEMENTS OF OPERATIONS 4
CONSOLIDATED STATEMENTS OF CASH FLOWS 5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION 8
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS 11
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 12
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 12
SIGNATURES 13
EXHIBIT INDEX 14
<TABLE>
<CAPTION>
MICRO COMPONENT TECHNOLOGY, INC.
FORM 10-Q
ITEM 1. FINANCIAL INFORMATION
CONSOLIDATED BALANCE SHEETS
(in thousands except share and per share data)
ASSETS Dec. 28, 1996 June 29, 1996
- ----------------------------------------------------------------- ------------- -------------
(Unaudited) (Audited)
<S> <C> <C>
Current assets:
Cash $ 8,292 $ 7,793
Notes and accounts receivable, less allowance
for doubtful accounts of $573 (Dec. 1996) and
$585 (June 1996) 2,331 4,380
Inventories
Raw Materials 1,233 1,215
Work in process 585 484
Finished goods 1,420 1,314
Other 280 540
-------- --------
Total current assets 14,141 15,726
-------- --------
Property, plant and equipment 4,420 4,663
Less accumulated depreciation 3,428 3,485
-------- --------
Property, plant and equipment, net 992 1,178
Other assets 105 76
-------- --------
Total assets $ 15,238 $ 16,980
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
- -----------------------------------------------------------------
Current liabilities
Current obligations under debt facilities and financing
obligations $ 328 $ 352
Accounts payable 1,136 1,044
Unearned service revenue 418 324
Other accrued liabilities 1,256 1,368
-------- --------
Total current liabilities 3,138 3,088
Long-term debt and financing obligations 158 183
Commitments and contingencies
Stockholders' Equity:
Common Stock
Common, $.01 par value, 20,000,000 authorized, 7,031,170 and
7,187,244 issued, respectively 69 70
Redeemable convertible preferred stock, $.01 par value, 1,000,000
authorized, 315,789 issued (liquidation value $4.75 per share) 1,500 1,500
Additional paid-in capital 42,440 43,463
Cumulative translation adjustment (82) (82)
Accumulated deficit (31,985) (26,934)
Treasury stock 176,074 shares of common stock at cost (June 1996) -- (4,308)
-------- --------
11,942 13,709
-------- --------
Total liabilities and stockholders' equity $ 15,238 $ 16,980
======== ========
</TABLE>
See notes to consolidated financial statements
<TABLE>
<CAPTION>
MICRO COMPONENT TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
--------------------- ----------------------
Dec. 28, Dec. 30, Dec. 28, Dec. 30,
1996 1995 1996 1995
-------- -------- --------- --------
<S> <C> <C> <C> <C>
Net Sales $ 3,972 $ 5,484 $ 6,603 $ 12,374
Cost of sales 1,894 2,451 3,114 5,143
-------- -------- -------- --------
Gross profit 2,078 3,033 3,489 7,231
-------- -------- -------- --------
Operating expenses
Selling, general and administrative 1,764 1,540 3,538 3,979
Research and development 1,080 1,121 1,924 1,765
Unusual and non-recurring items -- (1,524) -- (1,524)
-------- -------- -------- --------
Total operating expenses 2,844 1,137 5,462 4,220
-------- -------- -------- --------
Income (loss) from operations (766) 1,896 (1,973) 3,011
Interest income, net 87 60 166 64
-------- -------- -------- --------
Income (loss) before income taxes (679) 1,956 (1,807) 3,075
Income tax provision -- (46) -- 72
-------- -------- -------- --------
Income (loss) from continuing operations (679) 2,002 (1,807) 3,003
Discontinued operations -- -- -- 474
-------- -------- -------- --------
Net income (loss) $ (679) $ 2,002 $ (1,807) $ 3,477
======== ======== ======== ========
Income (loss) per share from continuing
operations $ (.09) $ .26 $ (.25) $ .43
Income per share from discontinued
operations -- -- -- .07
-------- -------- -------- --------
Net Income (loss) per share $ (.09) .26 $ (.25) $ .50
======== ======== ======== ========
Weighted average common and common
equivalent shares outstanding 7,347 7,605 7,342 6,982
======== ======== ======== ========
</TABLE>
See notes to consolidated financial statements
<TABLE>
<CAPTION>
MICRO COMPONENT TECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Six Months Ended
--------------------
Dec. 28, Dec. 30,
1996 1995
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $(1,807) $ 3,477
Adjustments to reconcile net income (loss) to
net cash used by operating activities
Depreciation and amortization 225 200
Unusual and non-recurring items -- (1,524)
Changes in assets and liabilities:
Notes and accounts receivable 2,049 (1,049)
Inventories (225) (350)
Other assets 231 623
Accounts payable 92 (469)
Other accrued liabilities (18) (1,208)
Discontinued operations -- 977
------- -------
Net cash provided by operating activities 547 677
------- -------
Cash flows from investing activities:
Net proceeds from sale of property, plant and equipment -- 17
Additions to property, plant and equipment (39) (266)
Proceeds from sale of subsidiary -- 150
Net proceeds from sale of product line -- 1,524
------- -------
Net cash provided by (used in) investing activities (39) 1,425
------- -------
Cash flows from financing activities:
Proceeds from issuance of long-term debt -- 98
Payments of long-term debt (49) (57)
Proceeds from issuance of stock 40 4,567
------- -------
Net cash provided by (used in) financing activities (9) 4,608
------- -------
Effects of exchange rate changes -- (361)
------- -------
Net increase in cash and cash equivalents 499 6,349
Cash and cash equivalents at beginning of period 7,793 1,156
------- -------
Cash and cash equivalents at end of period $ 8,292 $ 7,505
======= =======
</TABLE>
See notes to consolidated financial statements
MICRO COMPONENT TECHNOLOGY, INC.
FORM 10-Q
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. INTERIM FINANCIAL STATEMENTS
The accompanying unaudited, condensed, consolidated financial statements
for the three and six month periods ended December 28, 1996 have been
prepared in accordance with the instructions for SEC Form 10-Q and,
accordingly, do not include all disclosures required by generally
accepted accounting principles for complete financial statements. In the
opinion of management, all adjustments, consisting of normal recurring
accruals considered necessary for a fair presentation, have been
included.
Interim unaudited financial results should be read in conjunction with
the audited financial statements included in the SEC Annual Report, Form
10-K, for the fiscal year ended June 29, 1996.
The results of operations for the three and six months ended December 28,
1996 are not necessarily indicative of the operating results to be
expected for the full year.
2. CONTINGENCIES
The Securities and Exchange Commission has informed the Company that it
is conducting an investigation with respect to certain financial
reporting discrepancies announced by the Company in April 1994 dating
back to fiscal 1993 and the first two quarters of fiscal 1994. The
Company has submitted documents to the Commission pursuant to requests
from the Commission as part of the investigation. The Commission is in
the process of interviewing potential witnesses as part of the
investigation.
On December 28, 1995, University/Joseph Associates, the former landlord
of Sym-Tek Systems, Inc., filed a lawsuit against the Company in Superior
Court in San Diego, California, seeking payment by the Company of
$500,000. The landlord alleges in the lawsuit that the Company agreed to
pay Sym-Tek's rent during the period in 1994 in which the Company and
Sym-Tek were negotiating a possible merger. The merger was not concluded,
and the Company has denied any liability to the landlord and intends to
vigorously defend the lawsuit.
On September 25, 1995 the Company sold all of the outstanding stock of
the Company's European subsidiary, Intertrade Scientific, Inc. (ITS) to
Cardine & Levy, a company based in France. In July 1996 Cardine & Levy
initiated an arbitration proceeding in Geneva, Switzerland under the
rules of the International Chamber of Commerce claiming damages from the
Company related to the discontinuation of a distribution relationship
between ITS and one of its significant equipment suppliers. The Company
has responded to the request for arbitration and denied any liability.
The Company intends to vigorously defend its position in the arbitration
proceeding.
3. STOCK COMPENSATION PLANS
In October 1995, the Financial Accounting Standards Board issued SFAS No.
123, "Accounting for Stock-Based Compensation." The Company adopted the
disclosure provisions of SFAS 123 in the first quarter of fiscal 1997,
the effect of which was not material for all periods presented.
4. TREASURY STOCK
The Company changed its state of incorporation from Delaware to Minnesota
by merging the Company into a wholly-owned subsidiary of the Company
which is a Minnesota corporation. As a result of this, the treasury stock
was retired and apportionately reclassed into retained earnings and
additional paid in capital.
MICRO COMPONENT TECHNOLOGY, INC.
FORM 10-Q
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS AND FINANCIAL CONDITION
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 28, 1996
Net sales for the second quarter ended December 28, 1996, were $4.0 million, a
decrease of $1.5 million or 27.6% from $5.5 million of a year ago. The slowdown
in the semiconductor industry continued to impact revenue levels during the
second three months of fiscal year 1997. As compared to the prior quarter ended
September 28, 1996, net sales increased by $1.4 million. This increase was
primarily the result of a sale under a relationship established with a leading
tester manufacturer to integrate the two company's products into an integrated
test solution.
Gross profit for the second quarter of fiscal 1997 was $2.1 million, a decrease
of $1.0 million or 31.5% from $3.0 million of a year ago. Gross margin was 52.3%
as compared to 55.3% for the same period last year. The reduction in gross
margin is attributable to changes in product mix and to increased unabsorbed
overhead expenses due to lower production levels. The Company anticipates
quarterly gross margins on current products will continue to be at a lower rate
when compared to the prior year, unless semiconductor market conditions improve
significantly.
Selling, general and administrative expense in the second quarter of fiscal 1997
was $1.8 million compared to $1.5 million in the prior year. As a percentage of
net sales, SG&A increased to 44.4% for the second quarter from 28.1% for the
same period last year. The percentage increase is primarily due to the lower net
sales level.
Research and development expense for the second quarter of fiscal 1997 was $1.0
million compared to $1.1 million for the same period one year ago. As a
percentage of net sales, R&D expenses increased to 27.2% from 20.4% in the prior
year. The percentage increase is due to the lower net sales level. The high
level of R&D expenditures and management's plans to continue significant
investment in R&D represent the Company's continued focus on new product
offerings.
The Company generated net interest income during the quarter of $87,000 as
compared to $60,000 for the same period one year ago. The increase in net
interest income is due to the Company's strengthened cash position and reduced
debt level in the second quarter of fiscal 1997 versus 1996.
Net loss for the second quarter of fiscal 1997 was $0.7 million as compared to
net income of $2.0 million (including a one-time gain of $1.5 million related to
the escrow settlement on the sale of the 1149 tester product line) for the
second quarter of fiscal 1996.
RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED DECEMBER 28, 1996
Net sales for the six months ended December 28, 1996 were $6.6 million, a
decrease of $5.8 million from the same period a year ago. The continuing
slowdown in the semiconductor industry has severely impacted fiscal 1997 net
sales.
Gross profit for the six months ended December 28, 1996 was $3.5 million, a
decrease of $3.7 million or 51.7%, from $7.2 million last year. Gross margin was
52.8%, compared to 58.4% for the same six month period a year ago. The reduction
in gross margin is attributable to changes in product mix and to increased
unabsorbed overhead expenses due to lower production levels.
Selling, general and administrative expense for the six months ended December
28, 1996, was $3.5 million compared to $4.0 million in the prior year As a
percentage of net sales, SG&A increased to 53.6% for the first six months of
fiscal 1997 from 32.2% for the same period last year. The percentage increase is
due to the lower net sales level.
Research and development expense for the six months ended December 28, 1996, was
$1.9 million, a $0.2 million increase or 9.0%, from 1.7 million of a year ago.
As a percentage of net sales, R&D expenses increased to 29.1% from 14.3% in the
prior year. The percentage increase is due to the lower net sales level and
continued emphasis on new product development.
The Company generated net interest income of $166,000 during the first six
months of fiscal 1997 as compared to $64,000 for the same period one year ago.
The increase in net interest income is due to the Company's strengthened cash
position and reduced debt level in the first six months of fiscal 1997 versus
1996.
Net loss for the six months ended December 28, 1996 was $1.8 million as compared
to net income of $3.5 million, inclusive of an unusual and non-recurring gain of
$1.5 million and income from discontinued operations of $0.5 million, for the
first six months of fiscal 1996.
LIQUIDITY AND CAPITAL RESOURCES
In February 1996, the Company received $0.5 million from Hambrecht & Quist
Guaranty Finance L.P. ("H&Q") pursuant to its exercise of stock warrants for
160,000 shares of the Company's common stock. In December 1995, the Company
received $1.5 million in settlement of the escrow agreement established with
Megatest Corporation in connection with the November 1994 sale of the 1149
tester product line. In August 1995, the Company completed a private placement
offering of 1,500,000 shares of the Company's common stock, receiving net
proceeds of $4.6 million. These funds are being used for operations and the
unused portion is currently held in interest-bearing cash equivalents.
The Company generated $0.5 million of cash in its operating activities during
the quarter ended December 28, 1996 as compared to $0.7 million generated in the
same period during the prior year. Accounts receivable collections were the
primary provider of cash during the first six month of fiscal year 1997.
Capital expenditures for the first six months were $39,000, compared to $266,000
in the previous year. The Company does not anticipate making significant capital
investments in fiscal 1997.
At December 28, 1997, the Company had cash and cash equivalents of $8.3 million,
as compared to $7.8 million at June 29, 1996.
Current assets at December 28, 1996 were $14.1 million, or $1.6 million lower
than the amount of current assets of $15.7 million at June 29, 1996. The
decrease of $2.1 million in accounts receivable was partially offset by the
increase of $0.5 million in cash.
Current liabilities at December 28, 1996 were $3.1 million, the same amount as
at June 29, 1996.
The Company's operations have been funded with proceeds from the private
placement, escrow settlement and operating cash flows. Management believes that
cash and cash equivalents on-hand, and anticipated cash flows from operations
are sufficient to sustain the Company's current operations in the current
semiconductor market environment through the foreseeable future.
IMPACT OF ACCOUNTING STANDARDS
In October 1995, the Financial Accounting Standards Board issued SFAS No. 123,
"Accounting for Stock-Based Compensation." The Company adopted the disclosure
provisions of SFAS 123 in the first quarter of fiscal 1997, the effect of which
was not material for all periods presented.
RISK FACTORS
Except for the historical information contained herein, certain of the matters
discussed in this report are "forward-looking statements" as defined in the
Private Securities Litigation Reform Act of 1995. These "forward-looking
statements" involve certain risks and uncertainties, including, but not limited
to, the following: (1) fluctuations and periodic downturns in the semiconductor
market which often have had a disproportionately negative effect on
manufacturers of semiconductor capital equipment; (2) rapid changes in
technology and in tester and handler products, which the Company must respond to
successfully in order for its products to avoid becoming noncompetitive or
obsolete; (3) customer acceptance of the Company's new products, including the
MCT 5100 and MCT 7632 handlers; (4) possible loss of any of the Company's key
customers, who account for a substantial percentage of the Company's business;
and (5) the possible adverse impact of competition in markets which are highly
competitive. All forecasts and projections in this report are "forward-looking
statements," and are based on management's current expectations of the company's
near-term results, based on current information available pertaining to the
Company, including risk factors discussed above. Actual results could differ
materially.
MICRO COMPONENT TECHNOLOGY, INC.
FORM 10-Q
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Securities and Exchange Commission has informed the Company that it is
conducting an investigation with respect to certain financial reporting
discrepancies announced by the Company in April 1994 dating back to fiscal 1993
and the first two quarters of fiscal 1994. The Company has submitted documents
to the Commission pursuant to requests from the Commission as part of the
investigation. The Commission is in the process of interviewing potential
witnesses as part of the investigation.
On December 28, 1995, University/Joseph Associates, the former landlord of
Sym-Tek Systems, Inc., filed a lawsuit against the Company in Superior Court in
San Diego, California, seeking payment by the Company of $500,000. The landlord
alleges in the lawsuit that the Company agreed to pay Sym-Tek's rent during the
period in 1994 in which the Company and Sym-Tek were negotiating a possible
merger. The merger was not concluded, and the Company has denied any liability
to the landlord and intends to vigorously defend the lawsuit.
On September 25, 1995 the Company sold all of the outstanding stock of the
Company's European subsidiary, Intertrade Scientific, Inc. (ITS) to Cardine &
Levy, a company based in France. In July 1996 Cardine & Levy initiated an
arbitration proceeding in Geneva, Switzerland under the rules of the
International Chamber of Commerce claiming damages from the Company related to
the discontinuation of a distribution relationship between ITS and one of its
significant equipment suppliers. The Company has responded to the request for
arbitration and denied any liability. The Company intends to vigorously defend
its position in the arbitration proceeding.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The annual meeting of the stockholders of the Company was held November 6, 1996.
The matters voted on at the meeting and the outcome of that voting was as
follows:
1. Election of a board of five directors comprised of Roger E. Gower,
Patrick Verderico, D. James Guzy, David M. Sugishita, and Donald
VanLuvanee.
2. Approval of an amendment to the Incentive Stock Option Plan
limiting the number of options granted to any employee in any year
to options for 300,000 shares.
3. Approval of a change of the Company's state of incorporation from
Delaware to Minnesota by merging the Company into a wholly-owned
subsidiary of the Company which is a Minnesota corporation.
The outcome of the voting was as follows:
Broker
For Against Abstain Non-Vote
--- ------- ------- --------
Item 1:
Roger E. Gower 6,133,458 37,976 0 0
Patrick Verderico 6,133,458 37,976 0 0
D. James Guzy 6,133,458 37,976 0 0
David M. Sugishita 6,131,791 39,643 0 0
Donald VanLuvanee 6,133,458 37,976 0 0
Item 2. 6,004,088 106,927 30,090 30,329
Item 3. 3,902,617 203,883 381,406 1,199,317
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit 11. Computation of Earnings Per Common and Common Equivalent
Shares
(b) On November 18, 1996, the Company filed a Form 8-K with responses to item
5 and item 8 describing the reincorporation of the Company from Delaware
to Minnesota.
MICRO COMPONENT TECHNOLOGY, INC.
FORM 10-Q
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.
Micro Component Technology, Inc.
Registrant
Dated: February 10, 1997 By: /s/ Roger E. Gower
---------------------------------
Roger E. Gower
President and Chief Executive Officer
and
Dated: February 10, 1997 By: /s/ Jeffrey S. Mathiesen
---------------------------------
Jeffrey S. Mathiesen
Chief Financial Officer
Chief Accounting Officer
MICRO COMPONENT TECHNOLOGY, INC.
FORM 10-Q
EXHIBIT INDEX
Exhibit
Number Page
11 Computation of Earnings per Common and
Common Equivalent Shares 15
<TABLE>
<CAPTION>
MICRO COMPONENT TECHNOLOGY, INC.
FORM 10-Q
COMPUTATION OF EARNINGS PER COMMON SHARE AND
COMMON EQUIVALENT SHARE
(In thousands, except per share data)
THREE MONTHS ENDED SIX MONTHS ENDED
-------------------- --------------------
PRIMARY DEC. 28, DEC. 30, DEC. 28, DEC. 30,
-------- -------- -------- --------
1996 1995 1996 1995
- --------------------------------------------------------------- -------- ------- -------- --------
<S> <C> <C> <C> <C>
Income (loss) from continuing operations $ (679) $ 2,002 $(1,807) $ 3,003
Income from discontinued operations -- -- -- 474
------- ------- ------- -------
Net income (loss) $ (679) $ 2,002 $(1,807) $ 3,477
======= ======= ======= =======
Weighted average number of common shares outstanding during the 7,031 6,604 7,026 6,081
period
Shares issuable on exercise of stock options and warrants
less shares repurchaseable from the proceeds -- 685 -- 585
Shares issuable on conversion of redeemable preferred stock 316 316 316 316
------- ------- ------- -------
Common and common equivalent shares - primary 7,347 7,605 7,342 6,982
======= ======= ======= =======
Income (loss) per share from continuing operations $ (.09) $ .26 $ (.25) $ .43
Income per share from discontinued operations
-- -- -- .07
------- ------- ------- -------
Net income (loss) per share - primary $ (.09) $ .26 $ (25) $ .50
======= ======= ======= =======
FULLY DILUTED
- ---------------------------------------------------------------
Income (loss) from continuing operations $ (679) $ 2,002 $(1,807) $ 3,003
Income from discontinued operations -- -- -- 474
------- ------- ------- -------
Net income (loss) $ (679) $ 2,002 $(1,807) $ 3,477
======= ======= ======= =======
Common and common equivalent shares - primary 7,347 7,605 7,342 6,982
Shares issuable on exercise of stock options and warrants
less shares repurchaseable from the proceeds -- -- -- 69
------- ------- ------- -------
Common and common equivalent shares - fully diluted 7,347 7,605 7,342 7,051
======= ======= ======= =======
Income (loss) per share from continuing operations $ (.09) $ .26 $ (.25) $ .42
Income per share from discontinued operations -- -- -- .07
------- ------- ------- -------
Net income (loss) per share - fully diluted $ (.09) $ .26 $ (25) $ .49
======= ======= ======= =======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-28-1997
<PERIOD-END> DEC-28-1996
<CASH> 8,292
<SECURITIES> 0
<RECEIVABLES> 2,904
<ALLOWANCES> 573
<INVENTORY> 3,238
<CURRENT-ASSETS> 14,141
<PP&E> 4,420
<DEPRECIATION> 3,428
<TOTAL-ASSETS> 15,238
<CURRENT-LIABILITIES> 3,138
<BONDS> 0
0
1,500
<COMMON> 69
<OTHER-SE> 10,373
<TOTAL-LIABILITY-AND-EQUITY> 15,238
<SALES> 6,603
<TOTAL-REVENUES> 6,603
<CGS> 3,114
<TOTAL-COSTS> 3,114
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (166)
<INCOME-PRETAX> (1,807)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,807)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,807)
<EPS-PRIMARY> (.25)
<EPS-DILUTED> (.25)
</TABLE>
