<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark One)
(X) QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
For the transition period from to
----- ------
Commission file number 0-22904
-------
PARKERVISION, INC.
(Name of small business issuer as specified in its charter)
Florida 59-2971472
(State or other jurisdiction of I.R.S. Employer ID No.
incorporation or organization)
8493 Baymeadows Way
Jacksonville, Florida 32256
(904) 737-1367
(Address of principal executive offices)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 .
--- ---
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes No .
---- ----
APPLICABLE ONLY TO CORPORATE ISSUERS
As of July 31, 1997, 10,187,626 shares of the Issuer's Common Stock, $.01
par value, were outstanding.
<PAGE>
PART I--FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The accompanying unaudited financial statements of ParkerVision, Inc. (the
"Company") have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions to Form
10-QSB and Rule 10-01 of Regulation S-X. All adjustments which, in the opinion
of management, are necessary for a fair presentation of the financial condition
and results of operations have been included. Operating results for the three
and six month periods ended June 30, 1997 are not necessarily indicative of the
results that may be expected for the year ending December 31, 1997.
These interim consolidated financial statements should be read in
conjunction with the Company's latest Annual Report on Form 10-KSB for the year
ended December 31, 1996.
2
<PAGE>
PARKERVISION, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
JUNE 30,
1997 DECEMBER 31,
ASSETS (UNAUDITED) 1996
------ -------------- ------------------
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents......................................................... $ 4,413,726 $ 1,554,732
Short-term investments............................................................ 1,997,012 3,987,149
Accounts receivable, net of allowance for doubtful accounts of $45,815 and $33,033
at June 30, 1997 and December 31, 1996, respectively............................ 1,757,235 1,143,121
Interest and other receivables.................................................... 150,230 142,374
Inventories, net.................................................................. 2,365,265 1,957,896
Prepaid expenses.................................................................. 448,061 306,511
Deferred income taxes............................................................. 3,477 3,477
------------- -------------
Total current assets........................................................... 11,135,006 9,095,260
------------- -------------
LONG-TERM INVESTMENTS.............................................................. 4,978,795 6,965,995
------------- -------------
PROPERTY AND EQUIPMENT, net........................................................ 2,021,273 1,516,685
------------- -------------
OTHER ASSETS, net.................................................................. 846,958 583,972
------------- -------------
Total assets................................................................... $ 18,982,032 $ 18,161,912
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of these balance sheets.
3
<PAGE>
PARKERVISION, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
JUNE 30,
1997 DECEMBER 31,
LIABILITIES AND SHAREHOLDERS' EQUITY (UNAUDITED) 1996
- ------------------------------------------------------------------------------------ ------------- -------------
<S> <C> <C>
CURRENT LIABILITIES:
Accounts payable.................................................................. $ 1,154,507 $ 555,269
Accrued expenses:
Salaries and wages.............................................................. 245,443 195,864
Professional fees and other..................................................... 306,954 102,867
Deferred revenue.................................................................. 14,564 27,396
------------- -------------
Total current liabilities...................................................... 1,721,468 881,396
------------- -------------
DEFERRED INCOME TAXES............................................................... 3,477 3,477
------------- -------------
COMMITMENTS AND CONTINGENCIES (Notes 4 and 5)
SHAREHOLDERS' EQUITY:
Preferred stock, $1 par value, 1,000,000 shares authorized, none issued or
outstanding...................................................................... 0 0
Common stock, $.01 par value, 20,000,000 shares Authorized, 10,147,590 and
10,032,604 shares issued and outstanding at June 30, 1997 and December 31, 1996,
respectively..................................................................... 101,476 100,326
Warrants outstanding.............................................................. 1,562,139 1,152,360
Additional paid-in capital........................................................ 25,972,540 25,392,608
Accumulated deficit............................................................... (10,379,068) (9,368,255)
------------- -------------
Total shareholders' equity...................................................... 17,257,087 17,277,039
------------- -------------
Total liabilities and shareholders' equity...................................... $ 18,982,032 $ 18,161,912
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of these balance sheets.
4
<PAGE>
PARKERVISION, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE
30, SIX MONTHS ENDED JUNE 30,
-------------------------- ---------------------------
<S> <C> <C> <C> <C>
1997 1996 1997 1996
------------ ------------ ------------- ------------
Revenues, net............................................ $ 4,007,472 $ 3,230,387 $ 6,087,429 $ 4,762,262
Cost of goods sold....................................... 2,172,974 2,070,778 3,332,110 3,089,579
------------ ------------ ------------- ------------
Gross margin............................................ 1,834,498 1,159,609 2,755,319 1,672,683
Marketing and selling expenses........................... 1,048,778 627,697 1,823,653 1,094,632
Research and development expenses........................ 752,497 324,321 1,448,073 665,570
General and administrative expenses...................... 469,093 360,266 837,446 655,635
Nonrecoverable start-up and excess capacity costs........ 0 40,000 0 91,350
Interest expense to related parties...................... 0 8,634 0 75,547
Interest income.......................................... (168,138) (160,374) (343,040) (242,440)
Other expense, net....................................... 0 0 0 10,810
------------ ------------ ------------- ------------
Net loss................................................. $ (267,732) $ (40,935) $ (1,010,813) $ (678,421)
------------ ------------ ------------- ------------
------------ ------------ ------------- ------------
Net loss per common and common equivalent share.......... $ (0.03) $ (0.00) $ (0.10) $ (0.07)
------------ ------------ ------------- ------------
------------ ------------ ------------- ------------
</TABLE>
The accompanying notes are an integral part of these statements.
5
<PAGE>
PARKERVISION, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------- --------------------------
<S> <C> <C> <C> <C>
1997 1996 1997 1996
------------ ----------- ------------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss................................................ $ (267,732) $ (40,935) $ (1,010,813) $ (678,421)
Adjustments to reconcile net loss to net cash used for
operating activities:
Depreciation and amortization......................... 181,650 133,738 334,134 265,089
Amortization of discounts on investments.............. (6,371) (39,654) (22,663) (70,124)
Provision for obsolete inventories.................... 30,000 100,000 80,000 170,451
Changes in operating assets and liabilities:
Increase in accounts receivable, net................. (845,708) (1,229,150) (614,114) (1,768,205)
(Increase) decrease in interest and other
receivables........................................ (63,075) (125,480) (7,856) 219,921
Decrease (increases) in inventories, net............. 28,286 393,011 (487,369) 272,908
Decrease (increase) in prepaid expenses.............. 79,036 (1,843) (59,578) (29,924)
Increase in other assets............................. 0 (14,604) (22,758) (23,849)
Increase in accounts payable and accrued expenses.... 284,605 537,023 852,904 467,960
Decrease in interest payable to related parties...... 0 0 0 (8,110)
Increase (decrease) in deferred revenue.............. 5,686 (32,057) (12,832) (85,446)
------------ ----------- ------------- -----------
Total adjustments................................... (305,891) (279,016) 39,868 (589,329)
------------ ----------- ------------- -----------
Net cash used for operating activities.............. (573,623) (319,951) (970,945) (1,267,750)
------------ ----------- ------------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investments................................. 0 (6,925,123) 0 (6,925,123)
Proceeds from maturity of investments................... 3,000,000 0 4,000,000 0
Purchase of property and equipment...................... (601,305) (136,805) (751,062) (159,381)
------------ ----------- ------------- -----------
Net cash provided by (used for) investing
activities......................................... 2,398,695 (7,061,928) 3,248,938 (7,084,504)
------------ ----------- ------------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock.................. 350,888 8,211,044 581,001 8,226,340
------------ ----------- ------------- -----------
Net cash provided by financing activities........... 350,888 8,211,044 581,001 8,226,340
------------ ----------- ------------- -----------
NET CHANGE IN CASH AND CASH EQUIVALENTS.................. 2,175,960 829,165 2,858,994 (125,914)
CASH AND CASH EQUIVALENTS, beginning of period........... 2,237,766 336,448 1,554,732 1,291,527
------------ ----------- ------------- -----------
CASH AND CASH EQUIVALENTS, end of period................. $ 4,413,726 $ 1,165,613 $ 4,413,726 $ 1,165,613
------------ ----------- ------------- -----------
------------ ----------- ------------- -----------
</TABLE>
The accompanying notes are an integral part of these statements.
6
<PAGE>
PARKERVISION, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. ACCOUNTING POLICIES
There have been no changes in accounting policies from those stated in the
Annual Report on Form 10-KSB for the year ended December 31, 1996.
CASH AND CASH EQUIVALENTS. Cash and cash equivalents include overnight
repurchase agreements totaling $2,633,000 and $1,108,000 at June 30, 1997 and
December 31, 1996, respectively.
RECLASSIFICATIONS. Certain reclassifications have been made to the 1996
statements to conform to the 1997 presentation.
2. LOSS PER SHARE
Loss per share is determined based on the weighted average number of common
shares and common share equivalents outstanding during each period. Common
share equivalents are excluded from the determination of the weighted average
number of shares outstanding to the extent they are anti-dilutive. The
weighted average number of common shares and common share equivalents
outstanding for the three month periods ended June 30, 1997 and 1996 is
10,098,482 and 9,865,565, respectively. The weighted average number of common
shares and common share equivalents outstanding for the six month periods
ended June 30, 1997 and 1996 is 10,069,160 and 9,679,491, respectively.
3. INVENTORIES:
Inventories consist of the following:
<TABLE>
<CAPTION>
JUNE 30, 1997 DECEMBER 31, 1996
------------- -----------------
<S> <C> <C>
Purchased materials........................................................ $ 1,639,007 $ 1,353,499
Work in process............................................................ 373,992 329,983
Finished goods............................................................. 767,135 684,282
------------- -----------------
2,780,134 2,367,764
Less allowance for inventory obsolescence.................................. (414,869) (409,868)
------------- -----------------
$ 2,365,265 $ 1,957,896
------------- -----------------
------------- -----------------
</TABLE>
7
<PAGE>
4. SIGNIFICANT CUSTOMERS
For the three months ended June 30, 1997, Vtel Corporation accounted for
approximately 50% of total revenues. For the three months ended June 30,
1996, Vtel and one other customer accounted for approximately 51% and 10% of
total revenues, respectively.
For the six month period ended June 30, 1997, Vtel Corporation accounted for
approximately 49% of total revenues. For the six months ended June 30, 1996,
Vtel and one other customer accounted for approximately 50% and 12% of total
revenues, respectively.
4. STOCK OPTIONS
On May 15, 1997, the Company issued incentive stock options under the 1993
stock plan to purchase an aggregate of 28,500 shares of its common stock for
$15.125 per share to certain employees. These options were granted at an
exercise price equal to fair market value of the common stock at the date of
grant. These options vest either immediately or over a five year period and
are exercisable for a period of five years from the date the options become
vested.
Also on May 15, 1997, the Company issued nonqualified stock options under the
1993 stock plan to purchase 30,000 shares of its common stock for $15.125 per
share to Todd Parker, a director and officer of the company. These options
vest immediately and are exercisable for a period of ten years from the date
of grant. The Company also issued nonqualified stock options under the 1993
stock plan to purchase 250,000 shares of its common stock for $15.125 per
share to Mr. David Sorrells, a director and officer of the company. These
options vest ten years from the date of grant and expire five years from the
date the options become vested. The vesting of these options may be
accelerated at the discretion of the Board of Directors.
Also on May 15, 1997, the Company issued nonqualified stock options under the
1993 stock plan to purchase an aggregate of 249,500 shares of its common
stock for $15.125 per share to certain employees and an officer of the
company. These options vest ten years from the date of grant and expire five
years from the date the options become vested. The vesting of these options
may be accelerated at the discretion of the Board of Directors. Pursuant to
an employment agreement, the Company also issued nonqualified stock options
to purchase an aggregate of 250,000 shares of its common stock for $15.125
per share to an employee of the company. These options were not issued under
a plan, they vest ten years from the date of grant and expire five years from
the date the options become vested. The vesting of these options may be
accelerated at the discretion of the Board of Directors.
In May 1997, the company retained outside counsel to serve as a consultant
and advisor for a period of five years. As compensation for these services,
the Company issued nonqualified options to purchase 50,000 shares of common
stock at an exercise price of $15.125 per share.
8
<PAGE>
The options vest ratably over a five year period and expire five years from
the date the options become vested. The estimated fair value of these options
utilizing the Black-Scholes model is $8.20 per share or $410,000, which is
being amortized to expense over the term of the consulting agreement.
Options to purchase 296,725 shares of common stock were available for
future grants under the 1993 stock plan at June 30, 1997.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FORWARD-LOOKING STATEMENTS
When used in this Form 10-QSB and in future filings by the Company with the
Securities and Exchange Commission, the words or phrases "will likely
result", "management expects" or "Company expects", "will continue", "is
anticipated", "estimated" or similar expressions are intended to identify
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Readers are cautioned not to place undue
reliance on such forward-looking statements, each of which speak only as of
the date made. Such statements are subject to certain risks and uncertainties
that could cause actual results to differ materially from historical earnings
and those presently anticipated or projected, including the timely
development and acceptance of new products, sources of supply and
concentration of customers. The Company has no obligation to publicly
release the results of any revisions which may be made to any forward-looking
statements to reflect anticipated events or circumstances occurring after the
date of such statements.
Results of Operations for Each of the Three and Six Month Periods Ended June
30, 1997 and 1996
REVENUES
Revenues for the three months ended June 30, 1997 were $4,007,472, as
compared to $3,230,387 for the three months ended June 30, 1996. This
increase of $777,085 is primarily a result of an increase in the average
selling price per system.
The Company sold 694 systems during the three month period ended June 30,
1997, at an average selling price of approximately $5,800 per system. This
compares to 682 system sales for the three month period ended June 30, 1996,
at an average selling price of approximately $4,700 per system. This increase
in selling price of approximately $1,100 per system is primarily due to a
price increase implemented on certain product lines during 1997.
9
<PAGE>
Revenues for the six months ended June 30, 1997 were $6,087,429, as compared
to $4,762,262 for the six months ended June 30, 1996. This increase of
$1,325,167 is a result of a 85 unit increase in the number of systems sold
and a $900 increase in the average selling price per system from the six
month period ended June 30, 1997 to the corresponding period in 1996.
GROSS MARGIN
For the three month periods ended June 30, 1997 and 1996, gross margins as a
percentage of sales were 45.8% and 35.9%, respectively. This increase is
primarily due to the price increases implemented on certain products during
1997.
For the six month periods ended June 30, 1997 and 1996, gross margins as a
percentage of sales were 45.3% and 35.1%, respectively. This increase is
primarily due to the increase in average selling price per system, as well as
reduced manufacturing overhead during the first half of 1997.
MARKETING AND SELLING EXPENSES
Marketing and selling expenses were $1,048,778 for the three month period
ended June 30, 1997, as compared to $627,697 for the same period in 1996.
This increase of $421,081 is primarily due to an increase in personnel,
advertising, and trade show costs in order to promote the Company's future
studio product line and to expand distribution into international markets.
For the six month periods ended June 30, 1997 and 1996, marketing and selling
expenses were $1,823,653 and $1,094,632, respectively. The increase of
$729,021 is also attributable to increases in personnel, advertising and
trade show costs.
RESEARCH AND DEVELOPMENT EXPENSES
The Company's research and development expenses were $752,497 and $324,321
for the three month periods ended June 30, 1997 and 1996, respectively. This
increase of $428,176 is primarily a result of increased personnel and related
costs incurred in order to continue development of the Company's studio
product line and wireless technology.
For the six month periods ended June 30, 1997 and 1996, research and
development expenses were $1,448,073 and $665,570, respectively. This
increase of $782,503 is primarily due to an increase in personnel and related
costs.
GENERAL AND ADMINISTRATIVE EXPENSES
10
<PAGE>
For the three month periods ended June 30, 1997 and 1996, general and
administrative expenses were $469,093 and $360,266, respectively. This
increase of $108,827 is due to the amortization of prepaid consulting fees as
well as an increase in administrative personnel and related costs.
For the six month periods ended June 30, 1997 and 1996, general and
administrative expenses were $837,446 and $655,635, respectively. This
increase of $181,811 is also attributable to the amortization of prepaid
consulting fees and an increase in administrative personnel and related costs.
NONRECOVERABLE START-UP AND EXCESS CAPACITY COSTS
For the three month periods ended June 30, 1997 and 1996, nonrecoverable
start-up and excess capacity costs were $0 and $40,000, respectively. For the
six month periods ended June 30, 1997 and 1996, nonrecoverable start-up and
excess capacity costs were $0 and $91,350, respectively. These costs
represent labor and overhead costs incurred by the Company in excess of those
directly or indirectly attributable to system production. By the third
quarter of 1996, the Company began fully absorbing this cost into cost of
goods sold and does not anticipate recognizing any excess capacity costs in
1997 or future periods.
INTEREST EXPENSE
Interest expense represents interest on subordinated debentures payable to
related parties. Interest expense was $0 and $8,634 for the three month
periods ended June 30, 1997 and 1996, respectively, and $0 and $75,547 for
the six month periods ended June 30, 1997 and 1996, respectively. This
decrease in interest expense is a result of the conversion of the
subordinated debentures to common stock during the second quarter of 1996.
INTEREST INCOME
Interest income was $168,138 and $160,374 for the three month periods ended
June 30, 1997 and 1996, respectively, and $343,040 and $242,440 for the six
month periods ended June 30, 1997 and 1996, respectively. Interest income
primarily represents interest earned on the investment of a substantial
portion of the proceeds from the Company's initial public offering and its
subsequent non-registered offerings in 1996. The increase in interest income
is due to the investment of the proceeds from the Company's 1996 offerings,
offset somewhat by the Company's use of proceeds from maturing investments to
fund operations during 1996 and 1997.
BACKLOG
11
<PAGE>
As of June 30, 1997, the Company had a backlog of approximately $144,000, as
compared to a backlog as of June 30, 1996 of approximately $578,000. Backlog
consists of orders received that generally have a specified delivery schedule
within three months of receipt.
LIQUIDITY AND CAPITAL RESOURCES
At June 30, 1997, the Company had working capital of $9,413,538, an increase
of $1,199,674 from $8,213,864 at December 31, 1996. This increase in working
capital is primarily due to the increase in cash and cash equivalents and an
increase in inventories in preparation for production of the studio product
line.
The increase in cash and cash equivalents is primarily due to the maturity of
investments and the exercise of underwriter's warrants and employee stock
options during 1997, offset somewhat by capital expenditures. During the
first half of 1997, the Company issued 114,986 shares of common stock upon
the exercise of employee options and warrants granted to the underwriters of
its initial public offering consummated in 1993 for an aggregate of
approximately $581,000. In addition, the Company incurred approximately
$751,000 during the first half of 1997 for capital expenditures. These
capital expenditures primarily represent the purchase of marketing trade show
equipment, the purchase of computer and other equipment to support additional
engineering, sales and marketing personnel, and costs incurred for the
remodeling of the Company's facilities.
On July 22, 1997, the Company entered into an agreement with the IBM
Corporation ("IBM") for the development, manufacture and marketing of
wireless personal computer peripheral products under the IBM name, using the
Company's wireless technology. As a result of this agreement, the Company
anticipates increasing the personnel and other resources committed to its
wireless research and development efforts. The Company has funded to date,
and will continue to fund its research and development obligations from its
working capital and long-term investments which the Company believes are
adequate.
The Company's principal source of liquidity at June 30, 1997 consisted of
$6,410,738 in cash and short-term investments. Until the Company generates
sufficient revenues from product sales, it will be required to continue to
utilize this source of liquidity to cover the continuing expense of product
development, marketing and general administration. The Company believes its
source of liquidity will provide sufficient resources to meet its cash
requirements for the next twelve months as well as on a longer-term basis.
PART II--OTHER INFORMATION
12
<PAGE>
ITEM 3. LEGAL PROCEEDINGS
Not applicable.
ITEM 2. CHANGES IN SECURITIES
SALES OF UNREGISTERED SECURITIES
<TABLE>
<CAPTION>
CONSIDERATION RECEIVED
AND EXEMPTION IF OPTION, WARRANT
DESCRIPTION OF UNDERWRITING OR FROM OR CONVERTIBLE
TITLE OF OTHER DISCOUNTS TO MARKET PRICE REGISTRATION SECURITY, TERMS OF
DATE OF SALE SECURITY NUMBER SOLD AFFORDED TO PURCHASERS CLAIMED EXERCISE OR CONVERSION
- ------------ ----------- -------------- --------------------------------- --------------- ------------------------
<C> <S> <C> <C> <C> <C>
5/15/97 Options to 808,000 Options granted-- 4(2) Exercisable for
purchase no consideration periods lasting
common received by from five to ten
stock Company until years from the date of
granted to exercise grant at an
directors exercise price of
and $15.125 per share
employees
pursuant to
stock
option
plans
5/15/97 Options to 50,000 Consulting services 4(2) Exercisable for a
purchase valued at period lasting
common $410,000 to five years from the
stock be received date the options
granted to over a five first become
legal year term vested; options
consultant commencing May 15, vest ratably
pursuant to 1997 over five years
stock commencing May 15,
option plan 1998 at an
exercise price of
$15.125 per share
3/97--6/97 Common 44,716 Received 4(2) Underwriters
stock proceeds of warrants
$288,982 granted
11/30/93
exercisable
through
11/30/98 at
an exercise
price of
$8.25 per
share
3/97--6/97 Common 31,020 Received 4(2) Options
stock proceeds of granted
$42,032 2/1/93,
exercisable
through
2/1/98 at
an exercise
price of
$1.355 per
share
</TABLE>
13
<PAGE>
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER INFORMATION
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit
Number Description
- ----------------------------------------------------------------
27.1 Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter ended June 30,1997.
14
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
ParkerVision, Inc.
REGISTRANT
August 13, 1997 By: /s/ Jeffrey Parker
--------------------
Jeffrey Parker
Chairman, President and Chief Executive Officer
August 13, 1997 By: /s/ Cynthia Poehlman
---------------------
Cynthia Poehlman
Chief Accounting Officer
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 4,413,726
<SECURITIES> 1,997,012
<RECEIVABLES> 1,757,235
<ALLOWANCES> 45,815
<INVENTORY> 2,365,265
<CURRENT-ASSETS> 11,135,006
<PP&E> 4,241,298
<DEPRECIATION> 2,220,025
<TOTAL-ASSETS> 18,982,032
<CURRENT-LIABILITIES> 1,721,468
<BONDS> 0
101,476
0
<COMMON> 0
<OTHER-SE> 17,155,611
<TOTAL-LIABILITY-AND-EQUITY> 18,982,032
<SALES> 6,087,429
<TOTAL-REVENUES> 6,087,429
<CGS> 3,332,110
<TOTAL-COSTS> 3,332,110
<OTHER-EXPENSES> 4,109,172
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,010,813)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,010,813)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,010,813)
<EPS-PRIMARY> (0.10)
<EPS-DILUTED> (0.10)
</TABLE>
