<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 EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 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 Number: 0-22738
QUICKTURN DESIGN SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 77-0159619
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
440 Clyde Avenue, Mountain View, California 94043
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code: (415) 967-3300
NO CHANGE
-------------------------------------------------------------
(Former name or former address, if changed since last report)
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 [ ]
As of November 1, 1996 there were 14,060,016 shares of the registrant's common
stock outstanding.
This quarterly report on Form 10-Q contains 14 pages, of which this is page 1.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
QUICKTURN DESIGN SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
1996 1995 1996 1995
------- ------- ------- -------
Revenue $27,151 $21,200 $75,584 $58,800
Cost of revenue 8,464 6,510 23,449 18,070
------- ------- ------- -------
Gross profit 18,687 14,690 52,135 40,730
Operating expenses:
Research and development 4,837 3,872 13,322 10,712
Sales and marketing 7,987 6,512 22,625 18,435
General and administrative 1,655 1,232 4,725 3,465
------- ------- ------- -------
Total operating expenses 14,479 11,616 40,672 32,612
Operating income 4,208 3,074 11,463 8,118
Other income, net 510 225 1,280 545
------- ------- ------- -------
Net income before provision
for income taxes 4,718 3,299 12,743 8,663
Provision for income taxes 1,555 825 4,199 2,166
------- ------- ------- -------
Net income $ 3,163 $ 2,474 $ 8,544 $ 6,497
------- ------- ------- -------
------- ------- ------- -------
Net income per share $ 0.21 $ 0.17 $ 0.57 $ 0.45
------- ------- ------- -------
------- ------- ------- -------
Shares used in per share calculations 15,228 14,741 15,077 14,561
------- ------- ------- -------
------- ------- ------- -------
The accompanying notes are an integral part of these condensed consolidated
statements.
- 2 -
<PAGE>
QUICKTURN DESIGN SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA)
September 30, December 31,
1996 1995
------------- ------------
ASSETS (unaudited)
Current assets
Cash and cash equivalents $ 26,016 $17,216
Marketable securities 13,678 14,181
Accounts receivable, net of allowance for doubtful
accounts of $1,840 in 1996 and 1995 19,114 20,706
Inventories 10,059 7,805
Prepaid expenses and other current assets 7,547 7,285
-------- -------
Total current assets 76,414 67,193
Marketable securities 10,810 9,110
Fixed assets, net 11,814 13,003
Other assets 4,700 3,478
-------- -------
$103,738 $92,784
-------- -------
-------- -------
LIABILITIES
Current liabilities
Note payable to stockholder $ 600 $ 600
Capital lease obligations 1,993 2,801
Accounts payable 1,159 869
Accrued liabilities 13,538 15,847
Deferred revenue 8,380 3,538
-------- -------
Total current liabilities 25,670 23,655
Note payable to stockholder 600 1,200
Capital lease obligations, less current portion 837 2,302
-------- -------
27,107 27,157
STOCKHOLDERS' EQUITY
Common stock, $.001 par value:
Authorized: 20,000,000 shares
Issued and outstanding: 14,047,105 shares
in 1996; 13,596,060 shares in 1995 14 14
Additional paid-in capital 74,129 71,507
Unrealized holding gain (loss) on marketable
securities (60) 102
Retained earnings (accumulated deficit) 2,548 (5,996)
-------- -------
Total stockholders' equity 76,631 65,627
-------- -------
$103,738 $92,784
-------- -------
-------- -------
The accompanying notes are an integral part of these condensed consolidated
financial statements.
- 3 -
<PAGE>
QUICKTURN DESIGN SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(AMOUNTS IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
-----------------
1996 1995
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 8,544 $ 6,497
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 5,859 5,737
Provision for doubtful accounts --- 198
Write down of inventories 594 244
Changes in current assets and liabilities:
Accounts receivable 1,592 (4,073)
Inventories (2,848) (568)
Prepaid expenses and other current assets (262) (190)
Accounts payable and accrued liabilities (2,019) (2,673)
Deferred revenue 4,842 722
-------- --------
Net cash provided by operating activities 16,302 5,894
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of fixed assets (4,388) (5,241)
Sale of marketable securities 24,303 24,663
Purchase of marketable securities (25,662) (21,785)
Increase in other assets (1,504) (668)
-------- --------
Net cash used in investing activities (7,251) (3,031)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from equipment financing --- 1,500
Payment of note payable to stockholder (600) ---
Payments of capital lease obligations (2,273) (2,727)
Proceeds from stock issuances 2,622 2,024
-------- --------
Net cash provided by (used in) financing activities (251) 797
-------- --------
Net increase in cash and cash equivalents 8,800 3,660
Cash and cash equivalents at beginning of period 17,216 6,897
-------- --------
Cash and cash equivalents at end of period $ 26,016 $ 10,557
-------- --------
-------- --------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ 346 $ 432
Income taxes $ 4,607 $ 587
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Increase (decrease) in unrealized holding loss
on marketable securities $ 162 $ (376)
Additions to fixed assets through capital lease obligations $ --- $ 1,763
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
- 4 -
<PAGE>
QUICKTURN DESIGN SYSTEMS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. The condensed consolidated financial statements are unaudited (except for
the balance sheet information as of December 31, 1995, which is derived from
the Company's audited financial statements) and reflect all adjustments
(consisting only of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of the financial position and
operating results for the interim periods. The condensed consolidated financial
statements should be read in conjunction with the consolidated financial
statements and notes thereto, together with management's discussion and
analysis of financial condition and results of operations, contained in the
Company's 1995 Annual Report to Stockholders. The results of operations for the
nine months ended September 30, 1996 are not necessarily indicative of the
results for the entire fiscal year ending December 31, 1996, or any future
interim period.
2. Fiscal year-end: For purposes of presentation, the Company has indicated
that its fiscal year ends on December 31, although the Company operates on a
52-week or 53-week fiscal year, ending on the last Sunday in December.
3. Inventories comprise: (in thousands) September 30, December 31,
1996 1995
------------- ------------
(unaudited)
Raw materials $ 3,130 $5,819
Work in process 6,929 1,986
------- ------
$10,059 $7,805
------- ------
------- ------
4. Reclassification: Certain prior year amounts have been reclassified to
conform to the current year presentation.
- 5 -
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
REVENUE:
The Company's 1996 third quarter revenue of $27.2 million represented a 28%
increase over the third quarter revenue in the prior fiscal year and was a 7%
increase over revenue in the prior quarter. Revenue for the first nine months
of 1996 was $75.6 million, which was a 29% increase over the revenue of the
first nine months of the prior year. The revenue increase in each of the
three and nine month periods was primarily attributable to shipments of more
emulation capacity. International sales accounted for approximately 22% and
35% of total revenue in the third quarters of the current and prior fiscal
years, respectively. The decrease in international sales in the third
quarter of 1996 compared to the third quarter of 1995 was primarily a
normalizing effect, resulting from above normal international shipments in
the first and second quarters of 1996. For the first nine months of both the
current and prior fiscal years, international sales were approximately 35% of
the total revenue. Many of the Company's customers order on an as-needed
basis and often delay delivery of firm purchase orders until commencement
dates of such customers' development projects are determined. Moreover, a
significant portion of the Company's revenue in each quarter generally
results from shipments in the last few weeks of the quarter; therefore, a
delay in the shipment of a few orders can have a significant impact upon
revenue and results of operations in a given quarter.
A relatively limited number of customers have historically accounted for a
substantial portion of the Company's revenue. These customers represent early
adopters of emulation technology, typically for the design of complex
integrated circuits. In particular, the Company's top ten customers
represented 57% and 67% of revenue in the third quarters of 1996 and 1995,
respectively. In the first nine months of 1996 and 1995, the top ten
customers represented approximately 50% and 53% of total revenue,
respectively. The Company expects that sales of its products to a relatively
limited number of customers will continue to account for a high percentage of
revenue for the foreseeable future. The loss of a major customer or any
reduction in orders by such a customer could have an adverse effect on the
Company's financial condition or results of operations.
The Company believes that in the future its results of operations in a
quarterly period could be impacted by the timing of customer development
projects and related purchase orders for the Company's emulation systems, new
product announcements and releases by the Company, and economic conditions
generally and in the electronics industry specifically.
GROSS MARGINS:
Gross margins were 69% in the third quarter of both the current year and the
prior year, and were also 69% in the prior quarter. The Company was able to
maintain its gross margins primarily due to a sufficiently large revenue base
over which to spread fixed costs, and to continued manufacturing
efficiencies, somewhat offset by a decreasing average price per logic gate.
The Company expects competitive pressures to increase in its market from
existing companies and new entrants, which among other things could
accelerate the trend of such decreasing average price per logic gate.
Accordingly, there can be no assurance that the Company will be able to
sustain its recent gross margins. Furthermore, to the extent that the
Company's cost reduction goals are achieved, any resulting cost savings that
are passed on to the Company's customers may also have an adverse effect on
gross margins.
- 6 -
<PAGE>
RESEARCH AND DEVELOPMENT:
Research and development expenses increased by 25% in the third quarter of
1996 compared to the third quarter of the previous year. This increase was
primarily attributable to increased staffing and equipment costs necessary to
enhance current products and research and development activities for the next
generation emulation products. As a percentage of revenue, research and
development expenses were approximately 18% for both the third quarters of
the current and prior fiscal years, and were approximately 18% for both the
first nine months of the current and prior years. To maintain growth and
market leadership in emulation technology, the Company expects to continue to
invest a significant amount of its resources in research and development.
SALES AND MARKETING:
Sales and marketing expenses increased by 23% in the third quarter of 1996
compared to the third quarter of the previous year. For the first nine months
of 1996, sales and marketing expenses increased by 23% compared to the first
nine months of the prior year. The increase in each of the three and nine
month periods was largely due to headcount increases to support both domestic
and foreign markets. As a percentage of revenue, sales and marketing expenses
were approximately 29% and 31% in the third quarter of the current year and
the prior year, respectively, and were approximately 30% and 31% in the first
nine months of the current year and prior year, respectively. The Company
expects that sales and marketing expenses will continue to increase in
absolute dollar amounts as the Company expands its sales and marketing
efforts.
GENERAL AND ADMINSTRATIVE:
General and administrative expenses increased by 34% in the third quarter of
1996 compared to the third quarter of the previous year. For the first nine
months of 1996, general and administrative expenses increased by 36% compared
to the first nine months of the prior year. This increase in each of the
three and nine month periods was largely due to increased legal costs related
to a patent infringement lawsuit filed by the Company in January 1996. See
Part II., Item 1. Legal Proceedings. As a percentage of revenue, general and
administrative expenses were approximately 6% in both the third quarter of
the current year and the prior year, and also were approximately 6% in both
the first nine months of the current and prior fiscal years.
OTHER INCOME, NET:
Other income, net, increased by $285,000 and $735,000 in the third quarter
and first nine months of 1996, respectively, over the same periods in 1995
due primarily to decreased interest expenses associated with maturing lease
lines used for the purchase of certain fixed assets, and an increase in
interest income associated with a greater average quarterly balance of cash
and cash equivalents and marketable securities.
PROVISION FOR INCOME TAXES:
The effective tax rates of 33% for the three and nine month periods ended
September 30, 1996 and 25% for the three and nine month periods ended
September 30, 1995 are lower than the statutory federal rate of 35% primarily
because of federal and state general business credits, interest income on
investments in tax-exempt obligations and benefit from foreign sales
corporation for the period ended September 30, 1996 and utilization of net
operating losses for the period ended September 30, 1995.
NET INCOME AND QUARTERLY RESULTS
Net income increased by 28% to $3.2 million in the third quarter of 1996
compared to the third quarter of 1995. Net income for the first nine months
of 1996 was $8.5 million which was a 32% increase over net income of $6.5
million in the first nine months of the prior year. This increase in each of
the three and nine month periods was due primarily to an increase in revenue,
partially offset by increased operating expenses and increased taxes.
- 7 -
<PAGE>
FACTORS THAT MAY AFFECT FUTURE RESULTS AND FINANCIAL CONDITION
COMPETITION:
The EDA industry is highly competitive and rapidly changing. The Company has
begun to face significant competition for emulation-based system-level
verification, in addition to competition from traditional design verification
methodologies which rely on the approach of building and then testing
complete system prototypes. Because of customers' requirements for a design
verification methodology which reduces the number of costly design iterations
and improves product quality, the Company expects competition in the market
for system-level verification to increase as other companies attempt to
introduce emulation products and product enhancements. Moreover, the Company
expects to compete with companies which have significantly greater financial,
technical and marketing resources, greater name recognition and larger
installed bases than the Company. In addition, many of these competitors have
established relationships with current and potential customers of the
Company. Increased competition could result in price reductions, reduced
margins and loss of market share, all of which could materially adversely
affect the Company. The Company believes that the principal competitive
factors in the EDA market are quality of results, the mission-critical nature
of the technology, technical support, product performance, reputation, price
and support of industry standards. The Company believes that it currently
competes favorably with respect to these factors. However, there can be no
assurance that the Company will be able to compete successfully against
current and future competitors or that competitive pressures faced by the
Company will not materially adversely affect its business, operating results
and financial condition.
In addition, competitors may resort to litigation as a means of competition.
Such litigation may result in substantial costs to the Company and
significant diversion of management time. In 1995, Mentor Graphics
Corporation, ("Mentor") filed suit against the Company for declaratory
judgment of noninfringement, invalidity and unenforceability of several of
the Company's patents. Six of the Company's patents are now involved in the
dispute and the Company has filed counterclaims against Mentor and Mentor's
French subsidiary, Meta Systems ("Meta") for infringement and threatened
infringement of those six patents. Furthermore, in January 1996, the Company
filed a complaint with the International Trade Commission, seeking to stop
unfair importation of hardware logic emulation systems manufactured by Meta
on the grounds that such systems infringe the Company's patents. See Part II,
Item 1. Legal Proceedings. Although patent and intellectual property disputes
in the EDA industry are often settled through licensing, cross-licensing or
similar arrangements, costs associated with such litigation and arrangements
may be substantial.
OTHER FACTORS:
Other factors which could adversely affect the Company's quarterly operating
results in the future include efficiencies as they relate to managing
inventories and fixed assets, the timing of expenditures in anticipation of
increased sales, customer product delivery requirements and shortages of
components or labor. Moreover, as a significant portion of the Company's
revenue and net income may come from international operations, fluctuations
of the U.S. dollar against foreign currencies and the seasonality of
European, Far Eastern and other international markets could impact the
Company's results of operation and financial condition in a particular
quarter.
Due to the factors above, the Company's future earnings and stock price may
be subject to significant volatility, particularly on a quarterly basis. Any
shortfall in revenue or earnings from levels expected by securities analysts
has had and could in the future have an immediate and significant adverse
effect on the trading price of the Company's common stock. Additionally, the
Company may not learn of such shortfalls until late in a fiscal quarter,
which could result in an even more immediate and adverse effect on the
trading price of the Company's common stock.
- 8 -
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES:
Cash and cash equivalents increased by $8.8 million from December 31, 1995 to
September 30, 1996. Net cash provided by operations was $16.3 million, due
primarily to net income of $8.5 million, increased deferred revenue of $4.8
million and depreciation and amortization of $5.9 million, partially offset
by $2.8 million of increased inventories. Net cash used in investments was
$7.3 million due primarily to purchases of marketable securities of $25.7
million and increased fixed assets of $4.4 million, partially offset by sales
of marketable securities of $24.3 million. Net cash used in financing
activities was $251,000 due to payments of capital lease obligations of $2.3
million and payment of note payable to shareholder of $600,000, offset by
proceeds from stock issuances of $2.6 million.
The Company believes that its current liquidity, together with its existing
credit facility and the cash flows expected to be generated by operations
will be sufficient to meet its cash needs for working capital, capital
expenditures and marketing expansion through at least 1997. Thereafter, if
cash generated from operations is insufficient to satisfy the Company's
liquidity requirements, the Company may sell additional equity or debt
securities or obtain additional credit facilities.
- 9 -
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In January 1995, the Company and certain of its officers and directors were
named in a securities class action filed in the United States District Court
for the Northern District of California. The complaint seeks unspecified
damages and related fees and costs. In September 1995, the Court dismissed
with prejudice all claims against several defendants, including the Company's
outside directors. The Court also dismissed with prejudice many of the
allegations and claims asserted against the Company and certain of its
officers. While the Company believes that it has meritorious defenses to the
claims remaining in the action, the Company has reached an agreement in
principle with plaintiff's counsel to settle this action in order to conserve
legal expenses and management resources. This agreement in principle is
subject to completion of a formal settlement agreement with plaintiffs, as
well as preliminary and final approval of that agreement by the Court. There
can be no assurance that the Company will in fact succeed in completing the
final settlement with the plaintiffs, or that the Court will ultimately
approve any such settlement agreement. The Company's contribution to the
contemplated settlement will not be material. In the event that the
settlement is not completed and approved by the Court, the Company will
continue to contest this action vigorously. While the outcome of the action
in the absence of the comtemplated settlement cannot be predicted with
certainty, management does not believe the outcome will have a material
adverse impact on the Company's financial position or results of operations.
Additionally, in January 1996, the Company filed a complaint with the
International Trade Commission in Washington, DC, seeking to stop unfair
importation of logic emulation systems manufactured by Meta Systems of
France, a subsidiary of Mentor Graphics Corporation. In the complaint, the
Company alleges that Mentor's hardware logic emulation systems infringe the
Company's patents. In July 1996, the ITC issued an Initial Determination
granting a Temporary Exclusion Order stopping the importation of Mentor
Graphic's emulation products into the U.S. The ITC Initial Determination
included a Cease and Desist Order against all sales activities of the Mentor
emulation products in the U.S. In August 1996, the ITC ratified the ITC
court's Initial Determination. The Company is continuing its legal efforts
with the ITC to obtain a Permanent Exclusion Order stopping the importation
of Mentor's emulation products into the U.S. The Company also is engaged in a
Federal District Court case involving six of the Company's patents. Mentor
and Meta are seeking a declaratory judgment of noninfringement, invalidity
and unenforceability of the patents in dispute, and the Company has filed
counteractions against Mentor and Meta for infringement and threatened
infringement of the six patents. Mentor has also claimed in this Federal
District Court case that press releases issued by the Company were defamatory
and interfered with Mentor's business advantage. Additionally, Aptix
Corporation recently filed a suit against the Company alleging various
violations of the antitrust laws and for unfair competition. The Company does
not believe these claims are meritorious and plans to mount a vigorous
defense against them. The outcome of these actions cannot be predicted with
certainty.
The Company is engaged in certain other legal and administrative proceedings
incidental to its normal business activities. While it is not possible to
determine the ultimate outcome of these actions at this time, management
believes that any liabilities resulting from such proceedings or claims which
are pending or known to be threatened, will not have a material adverse
effect on the Company's consolidated financial position or results of
operations.
- 10 -
<PAGE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 11.1: Statement of computation of earnings per share.
Exhibit 27: Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter ended September 30,
1996.
- 11 -
<PAGE>
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.
QUICKTURN DESIGN SYSTEMS, INC.
------------------------------
(Registrant)
Date: November 8, 1996 By: /s/ Raymond K. Ostby
---------------------------- ---------------------------------
Raymond K. Ostby,
Vice-President, Finance and Administration,
Chief Financial Officer and Secretary
(Principal Accounting Officer and
Duly Authorized Officer)
- 12 -
<PAGE>
EXHIBIT 11.1
COMPUTATION OF EARNINGS PER SHARE
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
1996 1995 1996 1995
------- ------- ------- -------
<S> <C> <C> <C> <C>
Weighted average shares outstanding:
Common stock 13,909 13,366 13,754 13,246
Common stock equivalents 1,319 1,375 1,323 1,315
------- ------- ------- -------
Weighted average common shares and equivalents 15,228 14,741 15,077 14,561
------- ------- ------- -------
------- ------- ------- -------
Net income $ 3,163 $ 2,474 $ 8,544 $ 6,497
------- ------- ------- -------
------- ------- ------- -------
Net income per share (1) $ 0.21 $ 0.17 $ 0.57 $ 0.45
------- ------- ------- -------
------- ------- ------- -------
</TABLE>
- - ----------------------
(1) There is no difference between primary and fully diluted net income per
share.
- 13 -
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET, CONSOLIDATED STATEMENT OF OPERATIONS AND
CONSOLIDATED STATEMENT OF CASH FLOWS INCLUDED IN THE COMPANY'S FORM 10-Q FOR THE
PERIOD ENDING SEPTEMBER 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 26,016
<SECURITIES> 13,678
<RECEIVABLES> 20,954
<ALLOWANCES> 1,840
<INVENTORY> 10,059
<CURRENT-ASSETS> 76,414
<PP&E> 31,198
<DEPRECIATION> 19,384
<TOTAL-ASSETS> 103,738
<CURRENT-LIABILITIES> 25,670
<BONDS> 0
0
0
<COMMON> 14
<OTHER-SE> 76,617
<TOTAL-LIABILITY-AND-EQUITY> 103,738
<SALES> 75,584
<TOTAL-REVENUES> 75,584
<CGS> 23,449
<TOTAL-COSTS> 23,449
<OTHER-EXPENSES> 40,672
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 346
<INCOME-PRETAX> 12,743
<INCOME-TAX> 4,199
<INCOME-CONTINUING> 8,544
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8,544
<EPS-PRIMARY> 0.57
<EPS-DILUTED> 0.57
</TABLE>
