<PAGE>
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 AND EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2000
------------------
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________
COMMISSION FILE NUMBER 0-22646
-------
Applied Science and Technology, Inc.
(Name of Issuer in its Charter)
----------------------------------
Delaware 04-2962110
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
90 Industrial Way, Wilmington, Massachusetts 01887-4610
(Address of Principal Executive Offices) (Zip Code)
-----------------------------------
(978) 284-4000
(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 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 ___
---
Indicate the number of shares of each of the issuer's classes of common stock,
as of the latest practicable date:
COMMON STOCK, $0.01 PAR VALUE 14,483,074
------------------------------------ --------------------
Class Outstanding as of 10/31/00
================================================================================
<PAGE>
Applied Science and Technology, Inc. and Subsidiaries
Index
<TABLE>
<CAPTION>
Title Page
----- ----
<S> <C>
Part I. Financial Information
Item 1 Financial Statements
Consolidated Statements of Operations for the Three Months
Ended September 30, 2000 and September 25, 1999 2
Consolidated Balance Sheets -
September 30, 2000, and July 1, 2000 3
Consolidated Statements of Cash Flows for the Three Months Ended
September 30, 2000 and September 25, 1999 4
Notes to Consolidated Financial Statements 5
Item 2 Management's Discussion and Analysis of Results of Operations
and Financial Condition 9
Item 3 Quantitative and Qualitative Disclosure about Market Risk 12
Part II. Other Information
Items 1 Legal Proceedings 13
Items 2-5 Not Applicable 13
Item 6 Exhibits and Reports on Form 8K 13
Signatures 14
Appendix 15
</TABLE>
1
<PAGE>
Item 1. Financial Statements
Applied Science and Technology, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands except per share data)
(unaudited)
<TABLE>
<CAPTION>
Three Months Ended
-----------------------------------
September 30, September 25,
2000 1999
------------- -------------
<S> <C> <C>
Product sales, net $ 38,236 $ 28,516
Other revenue 3,070 2,086
------------- -------------
Total revenue 41,306 30,602
Cost of sales and revenue: 26,132 19,420
------------- -------------
Gross profit 15,174 11,182
------------- -------------
Operating expenses:
Research and development expenses 5,277 2,696
Selling expenses 2,558 2,026
General and administrative expenses 3,333 2,571
------------- -------------
Total operating expenses 11,168 7,293
------------- -------------
Earnings from operations 4,006 3,889
------------- -------------
Other income (expense):
Interest expense (197) 0
Interest income 1,381 407
Other income (expense) 174 (8)
------------- -------------
Total other income 1,358 399
------------- -------------
Earnings before income taxes 5,364 4,288
Income tax expense 2,052 1,658
------------- -------------
Net earnings $ 3,312 $ 2,630
============= =============
Earnings per share:
Basic $ 0.23 $ 0.23
============= =============
Diluted $ 0.22 $ 0.22
============= =============
Weighted average common shares:
Basic 14,407 11,427
============= =============
Diluted 14,839 12,207
------------- -------------
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
2
<PAGE>
Applied Science and Technology, Inc. and Subsidiaries
Consolidated Balance Sheets
(in thousands)
<TABLE>
<CAPTION>
Assets September 30, July 1,
2000 2000
------------- -------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 63,587 $ 78,407
Investments, short term 14,524 12,803
Trade and notes receivables, net 32,890 32,963
Other receivables 434 240
Inventories 26,240 19,947
Prepaid expenses and other assets 331 563
Deferred income taxes 2,409 2,409
------------- -------------
Total current assets 140,415 147,332
------------- -------------
Property and equipment:
Land 2,259 2,259
Building and improvements 17,046 10,889
Equipment 15,613 13,615
Furniture and fixtures 1,670 1,235
Leasehold improvements 365 1,633
Construction in progress 3,449 5,956
------------- -------------
40,402 35,587
Less accumulated depreciation and amortization (8,973) (8,744)
------------- -------------
Net property, plant and equipment 31,429 26,843
------------- -------------
Other assets:
Long-term investments 9,790 4,000
Goodwill, net of accumulated amortization 7,607 7,852
Deferred income taxes 732 732
Notes receivable, less current maturities 167 177
Patents and other assets, net 3,097 1,640
------------- -------------
Total other assets 21,393 14,401
------------- -------------
$ 193,237 $ 188,576
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 8,045 $ 6,802
Accrued expenses 7,316 5,985
Accrued compensation expense and related costs 2,501 4,101
Accrued income taxes 1,791 1,911
Commissions payable and customer advances 1,614 995
Current portion of mortgage note payable 1,429 1,429
------------- -------------
Total current liabilities 22,696 21,223
------------- -------------
Mortgage note payable, net of current portion 7,858 8,210
------------- -------------
Total liabilities: 30,554 29,433
------------- -------------
Stockholders' equity:
Common stock 145 144
Additional paid-in capital 148,197 147,554
Retained earnings 15,214 11,902
Accumulated other comprehensive loss (873) (457)
------------- -------------
Total stockholders' equity 162,683 159,143
------------- -------------
$ 193,237 $ 188,576
============= =============
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
3
<PAGE>
Applied Science and Technology, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands)
<TABLE>
<CAPTION>
3 Months Ended
--------------------------------
September 30, September 25,
2000 1999
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 3,312 $ 2,630
Adjustments to reconcile net earnings to net cash
(used for) provided by operating activities:
Depreciation 944 692
Amortization 293 268
Deferred income taxes - (563)
Loss on disposal of assets - 493
Changes in operating assets and liabilities:
Trade receivables 73 (2,270)
Other receivables (194) 100
Inventories (6,293) (2,359)
Prepaid expenses and other assets 216 (138)
Notes receivable 10 2
Accounts payable 1,243 81
Accrued expenses 350 2,050
Accrued income taxes (120) 143
------------- -------------
Net cash (used for) provided by operating activities (166) 1,129
------------- -------------
Cash flows from investing activities:
Acquisition of subsidiaries, less cash acquired - (6,164)
Net purchase of investments (7,511) -
Additions to property, plant and equipment (5,530) (1,080)
Other assets and patent costs (1,489) (39)
------------- -------------
Net cash used for investing activities (14,530) (7,283)
------------- -------------
Cash flows from financing activities:
Net proceeds from notes payable (352) -
Proceeds from issuance of common stock 644 259
------------- -------------
Net cash provided by financing activities 292 259
------------- -------------
Effect of exchange rate changes on cash (416) 4
------------- -------------
Net (decrease) in cash and cash equivalents (14,820) (5,891)
Cash and cash equivalents at beginning of period 78,407 31,775
------------- -------------
Cash and cash equivalents at end of period $ 63,587 $ 25,884
============= =============
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest $ 197 $ -
============= =============
Income taxes $ 2,119 $ 924
============= =============
</TABLE>
See accompanying Notes to Consolidated Financial Statements.
4
<PAGE>
Applied Science and Technology, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
(unaudited)
1) Basis of Presentation
The unaudited consolidated financial statements as of September 30, 2000
and September 25, 1999, and for the three-month period then ended, have
been prepared in accordance with generally accepted accounting principles
and include all adjustments which, in the opinion of management, are
necessary to present fairly the results of operations for the periods then
ended. All such adjustments are of a normal recurring nature. These
financial statements should be read in conjunction with the consolidated
financial statements for the year ended July 1, 2000 and the notes thereto
included in our Form 10-K filed with the Securities and Exchange
Commission.
The results of our operations for any interim period are not necessarily
indicative of the results of our operations for a full fiscal year.
2) Earnings Per Share
The weighted average number of shares used to compute diluted earnings per
share consisted of the following:
<TABLE>
<CAPTION>
Three Months Ended
(in thousands)
------------------------------
September 30, September 25,
2000 1999
------------------------------
<S> <C> <C>
Weighted average common
shares outstanding 14,407 11,427
Weighted average common
equivalent shares due to stock options 432 780
------------------------------
14,839 12,207
------------------------------
</TABLE>
3) Accounts Receivable
<TABLE>
<CAPTION>
(in thousands)
------------------------------
September 30, July 1,
2000 2000
------------------------------
<S> <C> <C>
Trade receivables $ 33,204 $ 33,280
Notes receivable, current portion 440 440
Allowance for doubtful accounts (754) (757)
------------- ------------
$ 32,890 $ 32,963
------------- ------------
</TABLE>
5
<PAGE>
4) Inventories
<TABLE>
<CAPTION>
(in thousands)
-------------------------------
September 30, July 1,
2000 2000
-------------------------------
<S> <C> <C>
Raw Material $ 17,732 $ 11,705
Work in process 4,953 6,153
Finished goods 3,555 2,089
----------- -----------
$ 26,240 $ 19,947
----------- -----------
</TABLE>
5) Research and Development Costs
All research and development costs are expensed as incurred. Research and
development expenses attributable to research contracts are included in
costs of sales and revenue.
6) Short and Long-Term Debt
We may borrow up to $8,000,000 from a bank under an unsecured demand line
of credit with interest at the prime rate (9.5% at September 30, 2000).
Borrowings under the line are limited to 100% of our cash balance plus 80%
of domestic accounts receivable under 90 days outstanding. As of September
30, 2000, there were no borrowings against the line of credit.
In connection with the acquisition of our new Wilmington facility, we
entered into a $10 million, secured, seven-year, bank term loan. Under the
loan agreement, the loan principle is repaid ratably over the seven year
term and interest is variable based on either a LIBOR or Domestic based
rate. Currently, the interest rate is LIBOR based and is 8.0%.
7) Stockholders' Equity
Capital stock consists of the following:
<TABLE>
<CAPTION>
(in thousands)
------------------------------------------------
Number of Shares
------------------------------------------------
Authorized Issued and Outstanding
September 30, July 1,
2000 2000
---------------------------------
<S> <C> <C> <C>
Preferred stock:
Preferred stock, $.01 par value 1,000 - -
------------------------------------------------
Total preferred stock 1,000 - -
------------------------------------------------
Common Stock:
Common stock, $.01 par value 30,000 14,483 14,398
------------------------------------------------
Total common stock 30,000 14,483 14,398
------------------------------------------------
------------------------------------------------
Total capital stock 31,000 14,483 14,398
------------------------------------------------
</TABLE>
6
<PAGE>
8) Comprehensive Income
Accumulated other comprehensive income, a component of stockholders'
equity, consists solely of foreign currency translation. The components of
total comprehensive income were as follows:
<TABLE>
<CAPTION>
Three Months Ended
(in thousands)
----------------------------
September 30, September 25,
2000 1999
----------------------------
<S> <C> <C>
Net income $ 3,312 $ 2,630
Foreign currency translation adjustment (416) 4
----------------------------
Comprehensive income $ 2,896 $ 2,634
----------------------------
</TABLE>
9) Business Segments
We have four reportable segments, Semiconductor, Medical and Industrial,
Systems and Corporate, that have separate financial results that are
reviewed by our chief operating decision-maker.
<TABLE>
<CAPTION>
Three Months Ended
(in thousands)
-----------------------------------------------------------------
Semi- Medical and
Conductor Industrial Systems Corporate Total
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
September 30, 2000
Total revenue $ 33,856 4,406 3,044 - $ 41,306
Inter-segment net sales 1,498 1 1 - 1,500
Profit (loss) from operations 8,407 (620) (1,497) (2,285) 4,006
Depreciation 276 36 225 407 944
September 25, 1999
Total revenue $ 23,141 3,968 3,493 - $ 30,602
Inter-segment net sales 739 10 - - 749
Profit (loss) from operations 5,683 (249) 173 (1,718) 3,889
Depreciation 311 76 90 215 692
</TABLE>
7
<PAGE>
10) Investments
Short-term and long-term investments consist of U.S. treasury notes and
government backed debt. The Company uses investment firms to manage its
investment portfolio.
The Company classifies its securities as held-to-maturity. Held-to-maturity
securities are those investments in which the Company has the ability and
intent to hold the security until maturity. Held-to-maturity securities are
recorded at amortized cost, which approximates market value.
Dividend and interest income is recognized in the period earned. Realized
gains and losses for held-to-maturity securities are included in earnings
and are derived using the specific identification method for determining
the cost of securities sold.
11) Subsequent Events
On October 2, 2000, ASTeX entered into a definitive merger agreement with
MKS Instruments, Inc. (MKS) whereby MKS would acquire ASTeX. Under the
terms of the agreement, each outstanding share of ASTeX common stock will
be exchanged for 0.7669 newly issued shares of common stock of MKS. This
would result in the issuance of approximately 11 million shares of common
stock of MKS, representing 30% of MKS' then outstanding shares. The
transaction is expected to close during the Company's second or third
quarter of fiscal 2001.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition
General
ASTeX provides precision reactive gas solutions to the OEM semiconductor,
medical and industrial markets, and complete process systems for advanced
packaging and magnetic sensor applications. ASTeX's broad product line is based
on a decade of leadership in core technologies including precision reactive gas
processing, specialized power sources and systems integration. Depending on
customers' needs, ASTeX provides varying levels of integration, from components
to subsystems to complete process solutions. ASTeX helps customers maximize
their competitive advantage by improving time to market while reducing costs and
complexity.
Results of Operations for the Three Months Ended September 30, 2000 and
September 25, 1999
The following table compares the consolidated statements of operations for the
three-month periods ended September 30, 2000 and September 25, 1999, expressed
as a percentage of total revenue.
<TABLE>
<CAPTION>
Three Months Ended
---------------------------------
September 30, September 25,
2000 1999
<S> <C> <C>
Product sales, net 92.6% 93.2%
Other revenue 7.4% 6.8%
---------------------------------
Total revenue 100.0% 100.0%
Cost of sales and revenue 63.3% 63.5%
---------------------------------
Gross profit 36.7% 36.5%
---------------------------------
Operating expenses:
Research and development 12.8% 8.8%
Selling expenses 6.2% 6.6%
General and administrative expenses 8.0% 8.4%
---------------------------------
Total operating expenses 27.0% 23.8%
---------------------------------
Earnings from operations 9.7% 12.7%
---------------------------------
Other income (expense):
Interest expense (0.5%) 0.0%
Interest income 3.4% 1.3%
Other income (expense) 0.4% 0.0%
---------------------------------
Total other income 3.3% 1.3%
---------------------------------
Earnings before income taxes 13.0% 14.0%
Income tax expense 5.0% 5.4%
---------------------------------
Net earnings 8.0% 8.6%
---------------------------------
</TABLE>
9
<PAGE>
Revenue
Total revenue increased by 35% to $41.3 million in the first quarter of fiscal
2001 compared to revenue of $30.6 million in the first quarter of fiscal 2000.
The increase is primarily due to an increase in our semiconductor business,
which grew by 46% to $33.9 million in the first quarter of fiscal 2001 from
$23.1 million in fiscal 2000. This growth was driven by the continued expansion
of the semiconductor capital equipment business, and was reflected across the
entire line of our new and existing products. Systems group revenue decreased by
13% to $3.0 million for the first quarter of fiscal 2001 compared to $3.5
million in fiscal 2000 as a result of the sale of ASTeX's diamond business in
the fourth quarter of last year. In the future, under a diamond licensing
agreement, the Company will receive certain royalties and fees.
Gross Profit
Gross profit, as a percentage of total revenue, remained relatively constant at
37% for the first quarter of fiscal 2001 and 2000, but increased by $4.0 million
to $15.2 million in the first quarter of fiscal 2001 compared to $11.2 million
for the first quarter of fiscal 2000 due to increased volume.
Research and Development Expenses
Net research and development expense increased by 96% to $5.3 million (or 13% of
total revenue) in the first quarter of fiscal 2001 compared to $2.7 million (or
9% of total revenues) in the first quarter of fiscal 2000. Research and
development expenses rose as a result of expenditures in connection with
development of both new modular and systems products.
Selling, General and Administrative Expenses
Selling expenses increased by 26% to $2.6 million (or 6% of total revenue) in
the first quarter of fiscal 2001 compared to $2.0 million (or 7% of total
revenue) in the first quarter of fiscal 2000. The increase is due to costs
associated with the expansion of our Global Customer Operations organization and
increased staffing of sales, service, and product management in the last three
quarters of fiscal 2000 in order to better serve and meet customer needs on a
global basis. General and administrative expenses, as a percentage of total
revenue, were relatively constant at 8% for the first quarter of fiscal 2001 and
2000, but increased by $0.7 million to $3.3 million for the first quarter of
fiscal 2001 compared to $2.6 million for the first quarter of fiscal 2000. This
increase was primarily due to supporting the growth of the overall business.
Operating Income (Loss)
We had operating income of $4.0 million or 10% of total revenues in the first
quarter of fiscal 2001 compared to $3.9 million or 13% of total revenue in the
first quarter of fiscal 2000. The percentage of revenue decrease is primarily
due to research and development spending.
Other Income and Income Taxes
Total other income increased to $1.4 million in the first quarter of fiscal 2001
compared to $0.4 million in the first quarter of fiscal 2000 due to interest
income earned on short-term and long-term cash investments primarily resulting
from proceeds of our March 2000 public offering of common stock. We had income
tax expense of $2.1 million in the first quarter of fiscal 2001 compared to
income tax expense of $1.7 million in the first quarter of fiscal 2000.
Liquidity and Capital Resources.
At September 30, 2000 we had cash and cash equivalents of $63.6 million, short-
term investments of $14.5 million and long-term investments of $9.8 million for
a total of $87.9 million. Working capital is $117.7 million at September 30,
2000. At July 1, 2000 we had cash and cash equivalents
10
<PAGE>
of $78.4 million, short-term investments of $12.8 million and long-term
investments of $4.0 million for a total of $95.2 million and working capital of
$126.1 million.
During the three months ended September 30, 2000 our cash and short-term
investment position decreased by $13.1 million to $78.1 million. Cash used for
investing activities was $14.5 million, consisting of $1.5 million for an
investment in a start-up company, $7.5 million for the net purchase of short and
long-term investments, and $5.5 million for additions to property, plant and
equipment, primarily for the build-out of our new Wilmington, Massachusetts
facility.
We have a credit facility with a bank that consists of an $8 million unsecured
demand line of credit with interest at the bank's prime rate, which was 9.5% at
September 30, 2000. At September 30, 2000 we had no borrowings in connection
with this line of credit. Our ability to borrow under this line of credit is
currently $8 million.
We will continue to use our cash resources for developing and investing in new
products, expanding sales and marketing, performing collaborative product
development projects, capital expenditures and for general working capital. We
shall also seek new ventures and/or acquisitions that will enhance our position
in our markets and that have potential to increase revenue and profitability.
Effects of Inflation
We believe that inflation has not had a significant impact on our revenues or
operating results.
Forward-Looking Statements
This report contains certain forward-looking statements regarding anticipated
results of operations, the cyclical nature of the semiconductor equipment
industry, liquidity and other matters. These statements, in addition to
statements made in conjunction with the words "anticipate," "expect," "believe,"
"intend," "seek," "estimate" and similar expressions, are forward-looking
statements that are based on management's current expectations and are subject
to a number of factors and uncertainties that could cause actual results to
differ materially from those described in the forward-looking statements. Such
risks and uncertainties include, but are not limited to the following: business
conditions and growth in certain market segments and the general economy;
fluctuating operating results; new product development; the cyclical nature of
the semiconductor equipment industry; uncertainties concerning Asian and
European markets and currencies; the impact of competitive products and pricing;
increased or continued market acceptance of our products and proposed products;
availability of materials; the loss of the services of one or more of our key
employees, dependence on significant customers; the availability of additional
capital to fund expansion on acceptable terms, if at all; and other risks and
uncertainties indicated from time to time in our filings with the Securities and
Exchange Commission.
11
<PAGE>
Item 3. Quantitative and Qualitative Disclosure about Market Risk
Market risk represents the risk of change in value of short-term investments and
financial instruments caused by fluctuations in investment prices, interest
rates and foreign currency exchange rates.
We address market risks in accordance with established policies. Our risk
management activities involve risk and uncertainties and accordingly, results
could differ materially from those projected.
Interest Rate Risk. Our exposure to market risk for changes in interest rates
relates primarily to our investment portfolio and long-term debt obligations. We
generally place our investments with high credit quality issuers and by policy
are averse to principal loss and seek to protect and preserve our invested funds
by limiting default risk, market risk and reinvestment risk. As of September 30,
2000, our investments consisted of commercial paper, municipal bonds and notes
and mutual funds.
Our interest expense is sensitive to changes in the general level of U.S.
interest rates with respect to our credit facility and our loan to acquire the
Wilmington, Massachusetts facility, of which $9.3 million was outstanding at
September 30, 2000. No funds were outstanding under our credit facility at
September 30, 2000. We believe the potential effects of near-term changes in
interest rates on our debt are not material.
Foreign Exchange Risk. We do not obtain a significant amount of sales
denominated in other than U.S. currency.
Other Risk. During the first quarter of fiscal 2001, we invested $1,500,000 in a
start-up company and may in the future make additional investments in start-up
companies that develop products which we believe may provide future benefits.
The current start-up investment and any future start-up investments will be
subject to all of the risks inherent in investing in companies that are not
established.
12
<PAGE>
Part II. Other Information
-----------------
Item 1 Legal Proceedings
On October 2, 2000, ASTeX entered into an Agreement and Plan of Merger with MKS
Instruments, Inc., under which ASTeX would become a wholly-owned subsidiary of
MKS. On October 3, 2000, one of our stockholders filed a purported class action
lawsuit (Landau v. Applied Science & Technology, Inc. et al (number 18384NC))
against ASTeX, each of our directors and MKS. The lawsuit alleges that our
directors breached their fiduciary duties to our stockholders in connection with
the merger, including a claim that the price offered by MKS for the ASTeX common
stock in the merger is inadequate. The lawsuit was filed in the Chancery Court
of the State of Delaware in and for New Castle County and seeks injunctive
relief and unspecified monetary damages. We believe that the suit is without
merit and intend to vigorously defend against the claims; however, we can give
no assurances as to the ultimate outcome of the suit.
Items 2-5 Not Applicable
Item 6 Exhibits and Reports on Form 8K
On October 11, 2000, Applied Science and Technology, Inc. filed a Form 8-K with
the Securities and Exchange Commission announcing that on October 2, 2000, MKS
Instruments, Inc. ("MKS"), Mango Subsidiary Corp., a wholly owned subsidiary of
MKS and ASTeX entered into an Agreement and Plan of Merger.
13
<PAGE>
Signatures
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: November 14, 2000
Applied Science and Technology, Inc.
(Registrant)
<TABLE>
Name Capacity Date
---- -------- ----
<S> <C> <C>
/s/ Richard S. Post Chairman of the Board and Chief November 14, 2000
--------------------- Executive Officer
Richard S. Post (principal executive officer)
/s/ William S. Hurley Chief Financial Officer, November 14, 2000
--------------------- Senior Vice President of Finance
William S. Hurley (principal financial and accounting
officer)
</TABLE>
14
<PAGE>
Appendix A to Item 601(c) of Regulation S-K
(Article 5 of Regulation S-X
Commercial and Industrial Companies)
(in thousands)
<TABLE>
<CAPTION>
Item No. Item Description
<S> <C> <C>
5-02(1) Cash and cash items 63,587
5-02(2) Marketable securities 14,524
5-02(3)(a)(1) Notes and accounts receivable - trade 33,644
5-02(4) Allowances for doubtful accounts (754)
5-02(6) Inventory 26,240
5-02(9) Total current assets 140,415
5-02(13) Property, plant and equipment 40,402
5-02(14) Accumulated depreciation (8,973)
5-02(18) Total assets 193,237
5-02(21) Total current liabilities 22,696
5-02(22) Bonds, mortgages and similar debt 9,287
5-02(28) Preferred stock-mandatory redemption -
5-02(29) Preferred stock-no mandatory redemption -
5-02(30) Common stock 145
5-02(31) Other stockholders' equity 162,538
5-02(32) Total liabilities and stockholders' equity 193,237
5-03(b)1(a) Net sales of tangible products 38,236
5-03(b)1 Total revenues 41,306
5-03(b)2(a) Cost of tangible goods sold 26,132
5-03(b)2 Total costs and expenses applicable to sales and revenues 26,132
5-03(b)3 Other costs and expenses 11,168
5-03(b)5 Provision for doubtful accounts and notes 3
5-03(b)(8) Interest expense 197
5-03(b)(10) Income before taxes and other items 5,364
5-03(b)(11) Income tax expense 2,052
5-03(b)(14) Income/loss continuing operations 3,312
5-03(b)(15) Discontinued operations -
5-03(b)(17) Extraordinary items -
5-03(b)(18) Cumulative effect-changes in accounting principles -
5-03(b)(19) Net income or loss 3,312
5-03(b)(20) Earnings per share-basic 0.23
5-03(b)(20) Earnings per share- diluted 0.22
</TABLE>
15
