<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] Quarterly Report under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended March 31, 1998
[ ] Transition Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934 (No fee required)
For the transition period from ______________ to _________________
Commission file number 1-13400
STRATASYS, INC.
(Name of Small Business Issuer in Its charter)
Delaware 36-3658792
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Organization) Identification No.)
14950 Martin Drive, Eden Prairie, Minnesota 55344
(Address of Principal Executive Offices)
(612) 937-3000
(Issuer's Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former Fiscal Year, if Changed
Since Last Report)
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 past 90 days.
Yes [X] No [ ]
As of May 6, 1998, the Issuer had 6,080,146 shares of Common Stock,
$.01 par value, outstanding.
Transitional Small Business Disclosure Format: Yes [ ] No [X]
<PAGE> 2
STRATASYS, INC.
Index
Page
Part I. Financial Information
Item 1. Financial Statements .........................................1
Balance Sheets as at March 31, 1998 and December 31, 1997.....1
Statements of Operations for the three months ended March 31,
1998 and 1997.................................................2
Statements of Cash Flows for the three months ended
March 31, 1998 and 1997.......................................3
Notes to Financial Statements.................................4
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.........................5
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K..............................9
Signatures...................................................................10
(i)
<PAGE> 3
STRATASYS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1998 1997
(UNAUDITED) (AUDITED)
----------- ---------
ASSETS
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 11,116,852 $ 9,116,232
Marketable Securities 4,442,633 4,441,380
Accounts receivable, less allowance for doubtful
accounts of $562,826 in 1998 and $514,461 in 1997 8,497,527 11,666,054
Inventories 6,261,962 5,492,130
Prepaid expenses 580,239 226,698
Deferred taxes 1,044,661 1,051,000
--------- ---------
Total current assets 31,943,874 31,993,494
---------- ----------
MACHINERY AND EQUIPMENT, less accumulated depreciation
of $2,013,082 in 1998 and $1,700,702 in 1997 3,500,517 3,445,265
--------- ---------
OTHER ASSETS
Intangible assets, less accumulated amortization 3,231,382 3,376,038
Sundry 170,033 169,633
------- -------
3,401,415 3,545,671
--------- ---------
$ 38,845,806 $ 38,984,430
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Obligations under capitalized leases, current portion 123,153 144,137
Accounts payable and other current liabilities 3,051,574 3,066,342
Unearned maintenance revenue 2,319,091 2,426,270
--------- ---------
Total current liabilities 5,493,818 5,636,749
--------- ---------
DEFERRED TAXES 124,000 124,000
OBLIGATIONS UNDER CAPITALIZED LEASES, less current portion 105,958 136,314
------- -------
229,958 260,314
------- -------
STOCKHOLDERS' EQUITY
Common Stock, $.01 par value, authorized 15,000,000
shares, issued and outstanding 6,080,146 shares
in 1998 and 6,079,659 shares in 1997 60,797 60,797
Capital in excess of par value 33,578,975 33,556,084
Accumulated deficit (517,742) (529,514)
-------- --------
Total Stockholders' Equity 33,122,030 33,087,367
---------- ----------
$ 38,845,806 $ 38,984,430
============ ============
</TABLE>
See notes to financial statements.
<PAGE> 4
STRATASYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
----------------------------
1998 1997
(UNAUDITED) (UNAUDITED)
----------- -----------
<S> <C> <C>
SALES $ 7,007,672 $ 5,208,527
COST OF GOODS SOLD 2,375,847 1,763,363
--------- ---------
GROSS PROFIT 4,631,825 3,445,164
COSTS AND EXPENSES
Research and development 1,275,171 1,114,225
Selling, general and administrative 3,505,875 3,020,803
--------- ---------
4,781,046 4,135,028
--------- ---------
OPERATING INCOME (LOSS) (149,221) (689,864)
-------- --------
OTHER INCOME (EXPENSE)
Interest income 180,955 88,725
Interest expense (13,623) (10,275)
------- -------
167,332 78,450
------- ------
INCOME (LOSS) BEFORE INCOME TAXES 18,111 (611,414)
INCOME TAXES (CREDIT) 6,339 (207,000)
----- --------
NET INCOME (LOSS) $ 11,772 $ (404,414)
----------- -----------
EARNINGS (LOSS) PER COMMON AND
COMMON EQUIVALENT SHARE
Basic $ -- $ (0.07)
=========== ===========
Diluted $ -- $ (0.07)
=========== ===========
WEIGHTED AVERAGE NUMBER OF COMMON AND
COMMON EQUIVALENT SHARES OUTSTANDING
Basic 6,080,146 5,585,583
========= =========
Diluted 6,177,739 5,585,583
========= =========
</TABLE>
See notes to financial statements.
2
<PAGE> 5
STRATASYS, INC. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
1998 1997
(UNAUDITED) (UNAUDITED)
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 11,772 $ (404,414)
Adjustments to reconcile net income (loss) to net cash used in operating
activities:
Deferred taxes 6,339 (207,000)
Depreciation and amortization 313,124 155,900
Amortization of intangibles and other assets 234,882 226,537
Bad debts 20,000 25,000
Allowance for sales returns 60,000
Loss on disposal of asset 4,435
Increase (decrease) in cash attributes to
changes in assets and liabilities:
Accounts receivable 3,088,527 2,108,613
Inventory (769,832) (2,012,504)
Prepaid expenses (353,541) 20,462
Other assets (400) --
Accounts payable and other current liabilities (14,768) (126,300)
Unearned maintenance revenue (107,179) 167,785
-------- -------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 2,493,359 (45,921)
--------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of marketable securities, net (1,253) (774,845)
Acquisition of machinery and equipment (372,811) (595,038)
Payments for intangible assets (90,226) (49,123)
------- -------
NET CASH USED IN INVESTING ACTIVITIES (464,290) (1,419,006)
-------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of obligations under capitalized leases (51,340) (40,304)
Proceeds from the sale of common stock 22,891 631,622
------ -------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (28,449) 591,318
------- -------
NET INCREASE (DECREASE) IN CASH 2,000,620 (873,609)
CASH AND CASH EQUIVALENTS, beginning of period 9,116,232 3,964,968
--------- ---------
CASH AND CASH EQUIVALENTS, end of period $ 11,116,852 $ 3,091,359
------------ -----------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION,
cash paid during the period for interest $ 13,623 $ 10,275
------------ -----------
SUPPLEMENTAL SCHEDULES OF NONCASH INVESTING
AND FINANCING ACTIVITIES:
Machinery and equipment acquired under
capital lease obligations $ -- $ 50,150
------------ -----------
</TABLE>
See notes to financial statements.
3
<PAGE> 6
Notes to Financial Statements
Note 1 -- Basis of Presentation
The financial information herein is unaudited; however, such
information reflects all adjustments (consisting of normal, recurring
adjustments) which are, in the opinion of management, necessary for a fair
statement of results for the interim period. The results of operations for the
three months ended March 31, 1998, are not necessarily indicative of the results
to be expected for the full year. Certain financial information and footnote
disclosure normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted. The
reader is referred to the audited financial statements and notes thereto for the
year ended December 31, 1997, filed as part of the Company's Annual Report on
Form 10-KSB for such year.
Note 2 -- Common Stock
In the three months ended March 31, 1998, the Company received net
proceeds of approximately $22,891 from the exercise of options.
Note 3 -- Inventory
Inventories consisted of the following at March 31 and December 31,
respectively:
1998 1997
Finished goods $3,445,787 $2,318,013
Work in process 303,193 276,366
Raw materials 2,512,982 2,897,751
---------- ----------
$6,261,963 $5,492,130
Note 4 -- Material Commitment
The Company has signed material commitments with several vendors for
fixed delivery of selected inventory expected to be used over the remainder of
1998 and into early 1999. These commitments amount to approximately $2,100,000
and contain non-cancellation clauses.
4
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
GENERAL
The Company develops, manufactures, and markets a family of rapid
prototyping devices that enable engineers and designers to create physical
models, tooling and prototypes out of plastic and other materials directly from
a computer aided design ("CAD") workstation. Historically, the Company's growth
has come from sales to a number of industries, including automotive, consumer
products, electronics, medical, and aerospace. Universities, other educational
institutions, and service bureaus have also been significant markets for the
Company. The Company's current and future growth is largely dependent upon its
ability to penetrate new markets, develop new applications, and develop and
market new rapid prototyping devices that meet the needs of its current and
prospective customers. New product developments will focus on various rapid
prototyping devices, modeling materials, and software enhancements. The Company
anticipates that in 1998 its primary business strategy will be on the expansion
of its international and domestic sales of its existing family of rapid
prototyping devices while maintaining on-going development of new rapid
prototyping equipment, modeling materials, and software. Growth through
appropriate acquisitions may also occur, but the Company can give no assurance
that any such acquisitions will be consummated.
The Company introduced one major new product, the FDM(R) Quantum, in
February 1998. The Quantum incorporates a new technology called the
MagnaDrive(TM) system. This high-speed system offers frictionless movement of
its extrusion head, which floats on a bed of air while being controlled through
a precise electro-magnetic device. The Quantum offers a large-build envelope
combined with throughput improvements that offer faster model build times. The
price of the Quantum is between $325,000 and $400,000, depending upon options.
The Company has continued to market the FDM(R) 8000, its first large envelope
system, at a price of approximately $200,000, depending upon options.
Continuing software, materials and hardware enhancements to improve the
performance and throughput of the Company's systems have also been introduced
in 1998.
Net sales of the Company's rapid prototyping devices, modeling
materials, and maintenance have increased each year since 1990. Management
expects, but cannot assure, that this trend will continue. The Company believes
that rapid prototyping industry revenues are growing at approximately 20-30%
per year and that the industry's unit growth is approximately 30% to 40% per
year. It believes that there is a trend toward lower priced rapid prototyping
systems capable of producing functional prototypes, and that a sizable market
exists for concept or visualization 3D printers. This pricing trend should lead
to growth in the more traditional functional prototyping marketplace as
companies continue to address in-house rapid prototyping needs. Certain market
segments in the industry have not demonstrated pricing sensitivity. These
segments are more interested in modeling envelope size, modeling material
variety, throughput, and part quality, which should allow growth to continue
for higher priced rapid prototyping systems addressing these needs.
5
<PAGE> 8
RESULTS OF OPERATIONS
QUARTER ENDED MARCH 31, 1998 COMPARED WITH THE QUARTER ENDED MARCH 31, 1997
The following table sets forth certain statement of income data as a
percentage of net sales for the periods indicated. All items are included in or
derived from the Company's statement of income.
For the quarter ended March 31,
1998 1997
Net sales 100.0% 100.0%
Cost of Sales 33.9% 33.9%
Gross Margin 66.1% 66.1%
Selling, general and administrative
expenses 50.0% 58.0%
Research & development expense 18.2% 21.4%
Operating income (loss) (2.1%) (13.2%)
Other income 2.4% 1.5%
Income (loss) before taxes 0.3% (11.7%)
Income taxes (benefit) 0.1% (4.0%)
Net income 0.2% (7.8%)
NET SALES
Net sales for the quarter ended March 31, 1998 were $7,007,672,
compared with sales of $5,208,527 recorded for the quarter ended March 31, 1997.
This represents an increase of $1,799,145, or 34.5%. This increase was due to
the Company's successful introduction of the FDM(R) Quantum and to strong sales
of the Company's FDM(R)8000 and Genisys systems, used systems sales, system
upgrades, maintenance contracts, and consumables. Consumable and maintenance
revenue, one of the fastest growing components of the Company's revenue mix,
amounted to 19% of total revenue, and increased by over 108% compared to the
first quarter of 1997. Reversing a trend of several quarters, Genisys revenues
recorded in the quarter ended March 31, 1998 were up sharply over the revenues
recorded in the first quarter of 1997. Sales of the Company's Benchtop systems
(the FDM(R)1650 and 2000) declined when compared with the first quarter of 1997,
but remained the largest product in the Company's product mix.
Domestic sales accounted for approximately 55% of total revenue, and
increased by approximately 53% as compared to the first quarter of 1997. The
Company's central region, including Detroit, was the Company's strongest
domestic region. International sales accounted for 45% of total revenue, which
represents an 18% improvement as compared to the first quarter of 1997. Europe
and the Far East (including Japan) were the strongest international regions. The
Company's combined Asia-Pacific region, which is composed of Japan, China, the
Far East and India, accounted for approximately 22% of total revenue.
Historically the Company has derived a significant percentage of its revenues
from the Far East, Japan, and China. Whereas the Company was not negatively
impacted by the economic conditions that persist in the Far East and Japan in
the period ended March 31, 1998, it can give no assurances that future sales and
profitability will not be adversely impacted by the economic conditions of this
region.
GROSS PROFIT
Gross profits amounted to $4,631,825 in the quarter ended March 31,
1998, compared with $3,445,164 in the quarter ended March 31, 1997, an
improvement of $1,186,662, or 34.4%. Gross profits as a percentage of sales
amounted to 66.1% of sales in both the 1998 and 1997 periods. The increase in
the Company's gross profits were in line with the increased revenues. In the
1998 period, materials costs were higher than the comparable 1997
6
<PAGE> 9
period based on the impact of product mix, higher materials' cost due to lower
purchased quantities for certain components, and increases to the Company's
inventory allowances. Conversely, direct labor and absorbed burden were lower
on the higher 1998 volume. The 1997 period was impacted by the introduction of
two new products (the FDM(R) 2000 and 8000) combined with the start up costs
and inefficiencies that were a result of moving into a new manufacturing
facility.
OPERATING EXPENSES
Selling, general and administrative ("SG&A") expenses increased to
$3,505,875 for the quarter ended March 31, 1998, from $3,020,803 for the
quarter ended March 31, 1997. This represents an increase of $485,072, or
16.1%. Much of the increase was in salaries and wages, as the Company increased
its sales organization headcount to 68 employees at March 31, 1998 from 44
employees at March 31, 1997. Depreciation and promotional expenses were also
higher for the quarter ended March 31, 1998 as compared to the comparable 1997
period, while commission expenses were lower due to changes in the sales
commissions plan.
Research and development ("R&D") expenses increased to $1,275,171 for
the quarter ended March 31, 1998 from $1,114,225 for the quarter ended March
31, 1997. The increase in the 1998 period over the 1997 period amounted to
$160,946, or 14.4%. Payroll expenses and professional fees accounted for much
of the increase in R&D expenses in the 1998 period.
The Company's operating loss for the quarter ended March 31, 1998
improved to ($149,221), or (2.1%) of sales from ($689,864), or (13.2%) of
sales, for the quarter ended March 31, 1997. Whereas total revenue increased by
34.5% in the quarter ended March 31, 1998 as compared with the quarter ended
March 31, 1997, operating expenses increased by 15.6% in the comparable period.
OTHER INCOME
Other income and expense netted to $167,332 in the quarter ended March
31, 1998. Interest income amounted to $180,955, an increase of $92,230 compared
with 1997. This was due to a higher average balance of cash and marketable
securities. Interest expense increased by $3,348 to $13,623 in 1998 as a result
of the Company's acquisition of equipment under capitalized leases.
NET INCOME
Net income for the quarter ended March 31, 1998 amounted to $11,772
compared with a net loss of $404,408 in the quarter ended March 31, 1997. This
represents $.00 earnings per share in the 1998 period compared to a $.07 loss
per share in the comparable 1997 period.
LIQUIDITY AND CAPITAL RESOURCES
Operating activities for the quarter ended March 31, 1998 provided cash
of $2,493,359, primarily reflecting decreases in accounts receivable of
$3,088,527. This change resulted from strong collections of the Company's high
year-end accounts receivable balances. The cash provided by operations was
partially offset by increases in inventory and prepaid expenses that amounted to
$769,832 and $353,541, respectively. In the first quarter of 1997 the Company
used cash of $45,921 in its operating activities, principally as a result of an
increase in inventories of $2,012,504 and a net loss of $404,414, which was
partially offset by a decrease in accounts receivable of $2,108,613. The Company
used $464,290 of cash for investing activities in the first quarter of 1998,
$372,811 of which was used in the acquisition of machinery and equipment. In the
first quarter of 1997, investing activities used cash of $1,419,006, including
$595,038 for the acquisition of machinery and equipment, and $774,845 for net
purchases of marketable securities. The Company used $28,449 of cash in its
financing activities in the first quarter of 1998, principally for repayments of
7
<PAGE> 10
obligations under capitalized leases. In the 1997 period the Company received
$631,622 of cash from the proceeds from the sale of common stock, which
provided net cash of $591,318 from the Company's financing activities in the
first quarter of 1997. The net increase in cash for the quarter ended March 31,
1998 amounted to $2,000,620 as compared with a net decrease of $873,609 for the
comparable 1997 period. The Company's ending cash and cash equivalents balances
as of March 31, 1998 and 1997 were $11,116,852 and $3,091,359, respectively.
At March 31, 1998, the Company's cash, cash equivalents, and marketable
securities balances totaled $15,559,485. These assets will be used by the
Company for working capital purposes, for improvement to facilities, for new
product development and introduction, for tooling, for acquisition of
production equipment and computers, for increased selling and marketing
activities, and for potential acquisitions. Management believes that the
Company's revenue from operations, its current cash and cash equivalents
balance, and the proceeds from the sale of short term marketable securities
should provide sufficient cash resources to finance its operations for at least
12 months.
As of March 31, 1998, the Company had gross accounts receivable of
$9,060,353, less an allowance of $562,826 for returns and doubtful accounts.
Historically, the Company's bad debt expense has been minimal. However, at
March 31, 1998, large balances were concentrated with certain international
distributors. While the Company can give no assurances, it believes that most,
if not all, the accounts receivable balances ultimately will be collected. The
Company has not experienced significant inventory adjustments, although it can
give no assurances that future inventory adjustments caused by obsolescence,
product design changes, declining sales, or other factors, will not occur.
The Company's total current assets amounted to $31,943,874 at March 31,
1998, the majority of which comprised cash, cash equivalents, marketable
securities, inventory and accounts receivable. Total current liabilities
amounted to $5,493,818. Unearned maintenance revenue and accounts payable and
other current liabilities amounted to $2,319,091 and $3,051,574, respectively,
The Company's debt is minimal, consisting primarily of payments due under
capital leases. The Company estimates that it will spend approximately
$2,400,000 in 1998 for facility improvements, production and R&D equipment,
computers and integrated software, and tooling. As of March 31, 1998, material
commitments for inventory purchases from selected vendors for the ensuing nine
month period ending December 31, 1998 will amount to approximately $2,100,000.
INFLATION
Management believes that inflation has not had a material effect on the
Company's operations or on its financial condition.
FOREIGN CURRENCY TRANSACTIONS
Substantially all of the Company's transactions are negotiated, invoiced,
and paid in US dollars. Fluctuations in the currency exchange rates in other
countries may therefore reduce the demand for the Company's products by
increasing the price of the Company's products in the currency of the countries
in which the products are sold.
FORWARD-LOOKING STATEMENTS AND FACTORS THAT MAY AFFECT FUTURE
RESULTS OF OPERATIONS
All statements herein that are not historical facts or that include such
words as expect, anticipate, project, estimates or believes or other similar
words are forward-looking statements deemed by the Company to be covered by and
to qualify for the safe harbor protection covered by the safe harbor protection
provided by the Private Securities Litigation Reform Act of 1995 (the "1995
Act"). Investors and prospective investors in the Company should understand
that several factors govern whether any forward-looking statement herein will
be or can be achieved. Any one of these factors could cause actual results to
differ materially from those projected herein. These forward-looking statements
include the expected increases in net sales of rapid prototyping systems and
services, the ability of the Company to maintain its gross margins on these
sales, and the plans and objectives of management to introduce new products,
control
8
<PAGE> 11
expenses, improve profitability, and consummate acquisitions. The
forward-looking statements included herein are based on current expectations
that involve a number of risks and uncertainties. These forward-looking
statements are based on assumptions, among others, that the Company will (1) be
able to continue to introduce new rapid prototyping systems acceptable to the
market and improve existing technology and software in its current product
offering, including the Genisys rapid prototyping system that has been
especially affected by technological problems, (2) be able to maintain it gross
margins on its present products, (3) be able to control its operating expenses,
especially its selling, general and administrative expenses and (4) be able to
retain and recruit employees with the necessary skills to produce, develop,
market, and sell it products. Assumptions relating to the foregoing involve
judgments with respect to, among other things, future economic, competitive,
and market conditions and future business decisions, all of which are difficult
or impossible to predict accurately and many of which are beyond the control of
the Company. Although the Company believes that the assumptions underlying the
forward-looking statements contained herein are reasonable, any of those
assumptions could prove inaccurate and therefore there is and can be no
assurance that the results contemplated in any such forward-looking statement
will be realized. The impact of actual experience and business developments may
cause the Company to alter its marketing plans, capital expenditure budgets or
other budgets, which may in turn affect the Company's results of operations.
Due to the factors noted above and elsewhere in the Management's Discussion and
Analysis of Financial Condition and Results of Operations, the Company's future
earnings and stock price may be subject to significant volatility, particularly
on a quarterly basis. Additionally, the Company may not learn of revenue or
earnings shortfalls until late in a fiscal quarter, since the Company
frequently receives the majority of its orders very late in a quarter. This
could result in an immediate and adverse effect on the trading price of the
Company's common stock. Past financial performance should not be considered a
reliable indicator of future performance and investors should not use
historical trends to anticipate results or trends in future periods.
PART II
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits
27.1 Selected Financial Data.
(b) Reports on Form 8-K.
None
9
<PAGE> 12
SIGNATURES
In accordance with 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.
STRATASYS, INC.
By: /s/ Thomas W. Stenoien
--------------------------
Thomas W. Stenoien
Chief Financial Officer
Dated: May 13, 1998
10
<PAGE> 13
Exhibit Index
Exhibit Description
- ------- -----------
27.1 Selected Financial Data
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 11,116,852
<SECURITIES> 4,442,633
<RECEIVABLES> 9,060,353
<ALLOWANCES> (562,826)
<INVENTORY> 6,261,962
<CURRENT-ASSETS> 31,943,874
<PP&E> 5,513,599
<DEPRECIATION> (2,013,082)
<TOTAL-ASSETS> 38,845,806
<CURRENT-LIABILITIES> 5,493,818
<BONDS> 0
0
0
<COMMON> 60,797
<OTHER-SE> 33,061,233
<TOTAL-LIABILITY-AND-EQUITY> 38,845,806
<SALES> 7,007,672
<TOTAL-REVENUES> 7,007,672
<CGS> 2,375,847
<TOTAL-COSTS> 4,781,046
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 13,623
<INCOME-PRETAX> 18,111
<INCOME-TAX> 6,339
<INCOME-CONTINUING> 11,772
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11,772
<EPS-PRIMARY> 0.00
<EPS-DILUTED> 0.00
</TABLE>
