<PAGE> 1
U.S. Securities and Exchange Commission
Washington, D.C. 20549
-------------------
Form 10-Q
-------------------
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended SEPTEMBER 30, 1997.
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from_________to_________
-------------------
Commission file number: 0-23342
-------------------
ELTRON INTERNATIONAL, INC.
(Exact name of business issuer as specified in its charter)
California 95-4302537
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
41 Moreland Road
Simi Valley, California 93065
(Address of principal executive offices)
(805) 579-1800
(Issuer's telephone number)
-------------------
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
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 7,455,920 common shares as of
November 7, 1997.
-------------------
Transitional Small Business Disclosure Format (Check one): Yes [ ]; No [X]
<PAGE> 2
ELTRON INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
December 31, September 30,
1996 1997
--------------- ---------------
<S> <C> <C>
CURRENT ASSETS:
Cash ............................................................... $ 1,291,396 $ 5,261,293
Short term investments ............................................. 7,945,254 6,659,653
Accounts receivable, net of allowance for
doubtful accounts of $452,234 and
$413,168, respectively ........................................... 16,331,124 16,967,456
Inventories ........................................................ 16,947,780 23,333,250
Prepaid expenses and other current assets .......................... 700,145 977,579
Deferred tax asset ................................................. 1,291,468 1,291,468
------------ ------------
Total current assets .............................................. 44,507,167 54,490,699
PROPERTY AND EQUIPMENT, net ........................................... 7,724,700 9,230,597
DIFFERENCE BETWEEN COST AND FAIR VALUE OF NET ASSETS ACQUIRED ......... 1,125,164 815,363
OTHER ASSETS .......................................................... 888,028 759,117
------------ ------------
$ 54,245,059 $ 65,295,776
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable ................................................... 7,041,719 7,356,887
Accrued liabilities ................................................ 1,179,415 1,544,224
Accrued compensation ............................................... 1,311,862 1,448,027
Deferred Service Contract Revenue .................................. 349,516 431,835
Income Taxes Payable ............................................... -- 199,318
------------ ------------
Total current liabilities ............................................. 9,882,512 10,980,291
LONG TERM OBLIGATION .................................................. 811,313 867,043
SHAREHOLDERS' EQUITY:
Preferred stock, 10,000,000 shares authorized of which none
are outstanding ................................................. -- --
Common stock, no par value:
Authorized - 30,000,000 shares
Issued and outstanding - 7,302,294 and 7,452,877 shares,
respectively .................................................... 24,238,345 24,957,333
Cumulative translation adjustment .................................. 25,400 (264,480)
Retained earnings .................................................. 19,287,489 28,755,589
------------ ------------
Total shareholders' equity ........................................ 43,551,234 53,448,442
------------ ------------
$ 54,245,059 $ 65,295,776
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE> 3
ELTRON INTERNATIONAL, INC.
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1997 1996 1997
------------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
SALES ........................................ $ 24,013,347 $ 25,609,463 $ 65,762,040 $ 76,292,056
COST OF SALES ................................ 14,054,850 13,997,373 37,095,291 42,292,312
------------ ------------ ------------ ------------
Gross profit .............................. 9,958,497 11,612,090 28,666,749 33,999,744
OPERATING EXPENSES:
Selling, general and administrative ....... 4,343,390 4,561,159 12,240,885 14,193,193
Research and product development .......... 1,391,068 1,762,963 3,907,622 5,194,199
Write off of acquisition expenses ......... -- -- 3,198,555 --
------------ ------------ ------------ ------------
INCOME FROM OPERATIONS ....................... 4,224,039 5,287,968 9,319,687 14,612,352
OTHER (INCOME) EXPENSE:
Interest, net ............................. (62,307) (67,265) (131,897) (242,233)
Other, net ................................ 5,396 (16,545) 13,040 21,769
------------ ------------ ------------ ------------
INCOME BEFORE PROVISION
FOR INCOME TAXES .......................... 4,280,950 5,371,778 9,438,544 14,832,816
PROVISION FOR INCOME TAXES ................... 1,605,356 1,865,558 4,681,355 5,364,716
------------ ------------ ------------ ------------
NET INCOME................................... $ 2,675,594 3,506,220 $ 4,757,189 $ 9,468,100
============ ============ ============ ============
NET INCOME PER COMMON SHARE.................. $ 0.34 0.44 $ 0.61 $ 1.20
============ ============ ============ ============
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING ..................... 7,891,702 7,951,598 7,826,934 7,916,382
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements
3
<PAGE> 4
ELTRON INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED
SEPTEMBER 30, 1996 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
1996 1997
------------ ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income........................................................... $ 4,757,189 $9,468,100
Adjustments to reconcile net income to cash provided
by operating activities:
Depreciation and amortization..................................... 1,054,620 1,996,818
Write off of purchased in-process technology...................... 2,500,000
Changes in assets and liabilities;
Net of effect from acquisitions:
Accounts receivable, net....................................... (3,623,106) (1,275,270)
Inventories.................................................... (3,648,564) (6,845,966)
Prepaids and other assets...................................... 708,433 (251,353)
Accounts payable............................................... 299,634 827,024
Accounts payable to shareholder................................ (1,805,290) 0
Accrued liabilities and compensation........................... 922,814 687,045
Accrued Income Taxes Payable.................................. 270,370
------------ ----------
Net cash provided by (used in) operating activities................. 1,165,730 4,876,768
CASH FROM INVESTING ACTIVITIES:
Purchases of property and equipment.................................. (3,700,396) (3,294,105)
Cash paid in connection with acquisition of Privilege................ (3,196,373)
Sale of short term investments, net.................................. 7,682,431 1,285,601
------------ ----------
Net cash provided by (used in) investing activities.................. 785,662 (2,008,504)
CASH FROM FINANCING ACTIVITIES:
Net borrowings (repayments) of long term debt........................ (20,037) 65,000
Net borrowings (repayments) under line of credit..................... (724,000)
Common stock purchased in connection with merger of RJS.............. (775,581)
Proceeds from sale of stock.......................................... 469,420 972,004
------------ ----------
Net cash provided by (used in) financing activities.................. (1,050,198) 1,037,004
EFFECT OF EXCHANGE RATE ON CASH......................................... (10,791) 64,629
------------ ----------
NET INCREASE (DECREASE) IN CASH......................................... 890,403 3,969,897
CASH BALANCE, beginning of period....................................... 729,055 1,291,396
------------ ----------
CASH BALANCE, end of period............................................. $ 1,619,458 $5,261,293
============ ==========
Non-cash transaction:
Settlement of receivable with common stock........................... $ 253,016
</TABLE>
The accompanying notes are an integral part of these financial statements
4
<PAGE> 5
ELTRON INTERNATIONAL, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
1. BASIS OF PRESENTATION
The financial statements of Eltron International, Inc. (the "Company")
included herein are unaudited; however, they contain all normal recurring
accruals which, in the opinion of management, are necessary to present fairly
the financial position of the Company at September 30, 1997 and the results of
its operations and cash flows for the three and nine month periods ended
September 30, 1996 and September 30, 1997. It should be understood that
accounting measurements at interim dates inherently involve greater reliance
on estimates than at year end. The results of operations for the three and
nine month periods ended September 30, 1997 are not necessarily indicative of
the results to be expected for future quarters or the full year.
The accompanying financial statements do not include footnotes and certain
financial presentations normally required under generally accepted accounting
principles and, therefore, should be read in conjunction with the Company's
financial statements for the year ended December 31, 1996 as filed in the
Company's annual report on form 10K.
2. INVENTORIES
Inventories are stated at the lower of cost (first-in, first-out) or market.
Inventories consist of the following:
<TABLE>
<CAPTION>
December 31, September 30,
1996 1997
------------ ------------
<S> <C> <C>
Subassemblies and raw materials................ $10,958,660 $14,671,816
Work in process................................ 1,924,981 2,111,945
Finished goods................................. 4,064,139 6,549,489
------------- -----------
$16,947,780 $23,333,250
</TABLE>
3. RECLASSIFICATIONS
Certain amounts in the prior period financial statements have been
reclassified to conform to the current period's presentation.
4. STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS NOT YET ADOPTED
In February 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards ("SFAS") No. 128 "Earnings per Share." This
statement required dual presentation of newly defined basic and diluted earnings
per share ("EPS") on the face of the income statements for all entities with
complex capital structures. The accounting standard is effective for all fiscal
years ending after December 15, 1997 and requires restatement of all prior
period EPS presented. Earlier application is not permitted. SFAS No. 128
specifies the computation, presentation and disclosure requirements for EPS. The
implementation of SFAS 128 is not expected to have a material impact on data
previously presented by the Company.
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 130 "Reporting Comprehensive
Income." The statement establishes standards for the reporting and display of
Comprehensive income and its components in a full set of general purpose
financial statements. Comprehensive income is defined as the change in equity of
a business enterprise during a period from transactions and other events and
circumstances from non-owner sources. The accounting standard is effective for
fiscal years ending after December 15, 1997. The impact of adopting SFAS 130 has
not been determined by the Company.
In June 1997, the Financial Accounting Standards Board also issued Statement
of Financial Accounting Standards ("SFAS") No. 131 "Disclosures about Segments
of an Enterprise and Related Information." The statement requires publicly-held
companies to report financial and other information about key revenue producing
segments of the entity for which such information is available and is utilized
by the chief operating decision maker. Specific information to be reported for
individual segments include profit and loss, certain revenue and expense items
and total assets. A reconciliation of segment financial information to amounts
reported in the financial statements would be provided. The impact on the
Company of adopting SFAS No. 131 has not been determined.
5
<PAGE> 6
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
Eltron International, Inc. and subsidiaries (the "Company" or "Eltron")
design, manufacture and market a full range of direct thermal and thermal
transfer bar code printers, plastic card printers, related accessories, software
and custom print engines for applications such as airline ticketing. Eltron also
manufactures and distributes a full range of supplies designed for use with its
printers. The Company believes that its success to date has resulted from its
ability to offer high-quality printers and related products with features
comparable to or exceeding those of available competing products at lower costs.
The Company's products are sold through multiple distribution channels that
include value added resellers, system integrators, original equipment
manufacturers and independent distributors located in more than 70 countries.
Industries for which the Company believes its printers are particularly
well-suited include shipping and package delivery, retail distribution and point
of sale, healthcare, manufacturing, financial services, security and access
control, and governmental licensing. The Company currently focuses its sales
efforts in these markets, although it continues to explore the potential for new
markets in which it can apply its expertise in the design and manufacture of
high quality, low cost thermal printers.
STATEMENTS OF OPERATIONS DATA:
The following table presents certain information derived from the Company's
Statements of Operations for the three and nine month periods ended September
30, 1996 and 1997, expressed as a percentage of sales.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
1996 1997 1996 1997
------ ----- ----- ----
<S> <C> <C> <C> <C>
SALES .................................. 100.0% 100.0% 100.0% 100.0%
COST OF SALES .......................... 58.5 54.7 56.4 55.4
------ ----- ----- ----
Gross profit ........................ 41.5 45.3 43.6 44.6
OPERATING EXPENSES:
Selling, general and administrative . 18.1 17.8 18.6 18.6
Research and product development .... 5.8 6.9 5.9 6.8
Write off of acquisition costs ...... 0.0 -- 4.9 --
------ ----- ----- ----
INCOME FROM OPERATIONS ................. 17.6 20.6 14.2 19.2
OTHER (INCOME) EXPENSE:
Interest, net ....................... (.2) (.3) (.2) (.3)
------ ----- ----- ----
INCOME BEFORE PROVISION FOR INCOME TAXES 17.8 20.9 14.4 19.5
PROVISION FOR INCOME TAXES ............. 6.7 7.3 7.1 7.0
------ ----- ----- ----
NET INCOME ............................. 11.1% 13.6% 7.3% 12.5%
===== ===== ===== =====
</TABLE>
6
<PAGE> 7
COMPARISON OF THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1997:
Sales:
Sales for the three months ended September 30, 1997 totaled $25.6 million,
an increase of $1.6 million or 7% over sales for the same period in 1996 which
totaled $24 million. Sales for the nine months ended September 30, 1997 totaled
$76.3 million, an increase of $10.5 million or 16% over sales for the same
period in 1996 which totaled $65.8 million. This increase in sales can be
attributed to wider market acceptance of the Company's bar code printers and
higher than anticipated demand for the Company's plastic card printers.
In both 1996 and 1997 sales of printers have been enhanced by increased
sales to UPS, which contributed approximately $8.6 million and $5.8 million to
sales for the three month periods ended September 30, 1996 and 1997,
respectively. Sales to UPS contributed approximately $23.2 million and $17.3
million to sales for the nine month periods ended September 30, 1996 and 1997,
respectively. Although the Company had outstanding orders from UPS in excess of
$5.0 million as of September 30, 1997, and received a $10 million follow on
order from UPS in October of 1997, there is no obligation on the part of UPS to
place any further orders with Eltron. The Company has derived a significant
portion of its revenues from UPS and may continue to be dependent on UPS, or
other significant customers, in the future, the loss of any one of which could
materially and adversely affect the Company's financial position, results of
operations and cash flows. No customer other than UPS contributed greater than
10% of the Company's net sales in the first nine months of 1996 or 1997.
Gross Profit:
Gross profit for the three months ended September 30, 1997 totaled $11.6
million, an increase of $1.7 million or 17% over gross profit for the same
period in 1996. As a percentage of revenues, gross profit increased 3% to 45%
for the nine months ended September 30, 1997 from 42% in the nine months ended
September 30, 1996. This increase resulted primarily from a favorable mix in
the Company's product sales and on-going efforts to reduce the cost of the
Company's products.
Gross profit for the nine months ended September 30, 1997 totaled $34.0
million, an increase of $5.3 million or 19% over gross profit for the same
period in 1996. As a percentage of revenues, gross profit increased 1% to 45%
for the third quarter of 1997 from 44% in the third quarter of 1996. This
increase resulted primarily from a favorable mix in the Company's product sales
and on-going efforts to reduce the cost of the Company's products.
Sales to high volume customers or OEMs are typically transacted at a price
which yields a lower than average gross margin, although the incremental selling
costs associated with these transactions are generally less than those
associated with a non-OEM sale. Sales of supplies are typically made at lower
than average gross margins, as a result of general market conditions and the
commodity nature of these products. Management expects the mix of Eltron's sales
to change. As a result, management believes that it is not reasonable to assume
that the 45% gross margin exhibited in the third quarter of 1997 will be
maintained in the future.
Selling, General and Administrative Expenses:
Selling, general and administrative expenses as a percentage of sales were
18% for the three months ended September 30, 1997 and 1996. On an absolute
dollar basis, selling, general and administrative expenses increased $.2 million
or 5%. On an absolute dollar basis, increases in selling, general and
administrative expenses were the results of higher levels of operations and
staffing.
Selling, general and administrative expenses as a percentage of sales were
19% for the nine months ended September 30, 1997 and 1996. On an absolute dollar
basis, selling, general and administrative expenses increased $2.0 million or
16%. On an absolute dollar basis, increases in selling, general and
administrative expenses were the results of higher levels of operations and
staffing.
The Company currently anticipates that selling, general and administrative
expense will increase in future quarters but may decrease as a percentage of
sales. The actual amount spent will depend on a variety of factors, including
the Company's level of operations, and the number of new markets the Company
chooses to enter.
7
<PAGE> 8
Research and Development Expenses:
Research and development expenses as a percentage of sales were 7% and 6%
for the three months ended September 30, 1997 and 1996, respectively. Research
and development expenses increased as a percentage of sales in the third quarter
of 1997 when compared to the third quarter of 1996. This increase related
primarily to increased efforts to develop new products.
Research and development expenses as a percentage of sales were 7% and 6%
for the nine months ended September 30, 1997 and 1996, respectively. On an
absolute dollar basis, research and development expenses increased $1.3 million
or 33%. This increase related primarily to increased efforts to develop new
products.
The Company currently anticipates that research and product development
expense will increase in future quarters and may increase as a percentage of
sales. The actual amount spent will depend on a variety of factors, including
the Company's level of operations, and the number of product development
projects that it embarks upon.
Write Off of Acquired In-Process Technology and Other Costs Associated with
Acquisitions:
In the first nine months of 1996, in-process technology valued at $2.5
million was purchased in connection with the acquisition of Privilege and
expensed immediately. In addition, costs related to the acquisition of Privilege
and RJS totaling $0.7 million were incurred and expensed during the first nine
months of 1996. These costs were not deductible for income tax purposes.
Provision for Income Taxes:
The provision for income taxes for the three months ended September 30, 1997
was $1.9 or 35% of pretax income, which reflects the utilization of certain tax
credits and current benefit of deferred tax assets under SFAS 109. The Company's
provision for income taxes for the three months ended September 30, 1996 was
$1.6 million or 37% of pretax income.
The provision for income taxes for the nine months ended September 30, 1997
was $5.4 million, or approximately 36% of pretax income, which reflects the
utilization of certain tax credits and current benefit of deferred tax assets
under SFAS 109. The Company's provision for income taxes for the first nine
months of 1996 was $4.7 or 50% of pretax income, which reflects the utilization
of certain tax credits and current benefit of deferred tax assets under SFAS 109
which have been substantially offset by purchased in process technology and
other acquisition related costs totaling $3.2 million which were expensed in the
first quarter of 1996. The tax effect of these non-deductible expenses were
fully reflected in the first quarter of 1996 and are included in the results of
operations for the nine month period ended September 30, 1996.
LIQUIDITY AND CAPITAL RESOURCES
Historically, Eltron's primary source of liquidity has been cash flow from
operations and cash provided by public offerings of its common stock which
generated $6.1 million and $16.7 million in 1994 and 1995, respectively.
During the nine months ended September 30, 1997, operating activities
provided cash totaling $4.9 million as compared to $1.2 million during the same
period in 1996. Significant changes in the first nine months of 1997 include
increases in accounts receivable and inventory which used cash totaling
$1.3 million and $6.8 million, respectively, which was partially offset by
increases in income taxes payable, accrued liabilities and accounts payable
which provided cash totaling $1.8 million.
During the nine months ended September 30, 1997, investing activities used
cash totaling $2.0 million. Cash totaling $3.3 million was used to purchase
property and equipment. This investment was partially offset by cash provided by
the sale of short term investments which totaled $1.3 million.
During the nine months ended September 30, 1997, financing activities
provided cash totaling $1.0 million primarily by the sale of $1.0 million of
common stock under the Company's stock options plans. During the first nine
months of 1996 financing activities used cash totaling $1.1 million, primarily
as a result of the purchase of common stock and repayment of debt in connection
with the purchase of RJS which used cash totaling $1.5 million.
In 1997, Eltron entered a revolving credit agreement with a bank. The
revolving credit facility allows Eltron to borrow up to $8 million on an
unsecured basis. Borrowings under the revolving credit facility would bear
interest at the Bank's prime rate. Under the terms of the revolving credit
facility, Eltron is not able to enter into certain transactions or declare
dividends without receiving prior written consent from the Bank and is required
to comply with certain convenants as well as maintain
8
<PAGE> 9
certain debt to net worth ratios, current ratio and minimum net worth
requirements. The revolving credit agreement expires in May 1998.
The Company did not have any material capital commitments as of September
30, 1997.
The Company believes that cash provided by operating activities, existing
cash and short-term investments will be sufficient to fund the Company's capital
needs for the foreseeable future.
9
<PAGE> 10
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereto duly
authorized.
ELTRON INTERNATIONAL, INC.
Date:____________________ By: /s/ DONALD K. SKINNER
----------------------------
Donald K. Skinner
Chairman of the Board
and Chief Executive Officer
Date:____________________ By: /s/ DANIEL C. TOOMEY JR.
----------------------------
Daniel C. Toomey, Jr.
Vice President Finance
and Chief Financial Officer
10
<PAGE> 1
EXHIBIT 11.1
COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
1996 1997 1996 1997
<S> <C> <C> <C> <C>
Net Income (loss) $2,675,594 $3,506,220 $4,757,189 $9,468,100
Weighted average shares outstanding 7,243,547 7,427,576 7,207,278 7,380,684
Number of shares calculated using the
Treasury stock method in accordance
With APB15 648,155 524,022 619,656 535,698
--------- --------- --------- ---------
Total weighted average shares outstanding 7,891,702 7,951,598 7,826,934 7,916,382
Earnings per share (loss) $ .34 $ .44 $ .61 $ 1.20
========= ========= ========= =========
</TABLE>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION FROM THE COMPANY'S
CONSOLIDATED STATEMENTS OF EARNINGS AND CONSOLIDATED BALANCE SHEET AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION FROM THE COMPANY'S
CONSOLIDATED STATEMENTS OF EARNINGS AND CONSOLIDATED BALANCE SHEETS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 5,261
<SECURITIES> 6,660
<RECEIVABLES> 17,380
<ALLOWANCES> 413
<INVENTORY> 23,333
<CURRENT-ASSETS> 54,491
<PP&E> 13,395
<DEPRECIATION> 4,165
<TOTAL-ASSETS> 65,296
<CURRENT-LIABILITIES> 10,980
<BONDS> 0
0
0
<COMMON> 24,957
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 62,296
<SALES> 25,609
<TOTAL-REVENUES> 25,609
<CGS> 13,997
<TOTAL-COSTS> 20,321
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 5,372
<INCOME-TAX> 1,866
<INCOME-CONTINUING> 3,506
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,506
<EPS-PRIMARY> .44
<EPS-DILUTED> .44
</TABLE>
