US SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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: March 31, 1998
[ ] TRANSITION REPORT PURSUANT SECTION 13 OR 15 (d) OF
THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number: 0-23332
EFTC CORPORATION
(Exact name of registrant as specified in its charter
Colorado 84-0854616
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
9351 Grant Street, Sixth Floor
Denver, Colorado 80229
(Address of principal executive offices)
(303) 451-8200
(Issuer's telephone number
Not Applicable
(Former name, former address and former fiscal year,
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. [X] Yes [ ] No
State the number of shares outstanding of each of the issuer's classes o common
equity, as of the latest practicable date.
Class of Common Stock Outstanding at May 12, 1998
--------------------- ---------------------------
Common Stock, par value $0.01 13,659,476 shares
1
<PAGE>
EFTC CORPORATION
FORM 10-Q
INDEX
PART I. FINANCIAL INFORMATION PAGE NUMBER
Item 1. Financial Statements (unaudited)
Condensed Consolidated Balance Sheets 3
March 31, 1998 and December 31, 1997
Condensed Consolidated Statements of Operations 4
Three months March 31, 1998 and March 31, 1997
Condensed Consolidated Statements of Cash Flows 5
Three months March 31, 1998 and March 31, 1997
Notes to Condensed Consolidated Financial 6
Statements - March 31, 1998
Item 2. Management's Discussion and Analysis of Results of 8
Operations and Financial Condition
PART II. OTHER INFORMATION
Item 2. Changes in Securities and Use of Proceeds 11
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 12
2
<PAGE>
PART I. FINANCIAL INFORMATION
<TABLE>
<CAPTION>
EFTC Corporation
Condensed Consolidated Balance Sheets
(unaudited)
ASSETS March 31, December 31,
1998 1997(1)
<S> <C> <C>
-------------- -------------
Current assets
Cash and cash equivalents $ 592,576 $ 1,877,010
Accounts receivable 28,866,890 25,412,340
Inventories 59,154,326 46,066,650
Deferred income taxes 491,152 494,290
Prepaid expenses and other current assets 1,403,298 759,668
------------ ------------
Total current assets 90,508,242 74,609,958
------------ ------------
Property, plant and equipment, at cost 43,051,938 30,314,897
Less accumulated depreciation 10,205,943 5,957,233
------------ ------------
Net property, plant and equipment 32,845,995 24,357,664
Other assets, net 2,260,634 3,484,897
Goodwill 46,017,691 46,372,060
------------ ------------
$171,632,562 $148,824,579
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts Payable $ 33,198,077 $ 23,579,663
Current portion of long-term debt and notes
payable 8,350,000 3,150,000
Accrued compensation 3,279,971 2,365,034
Income taxes payable 666,024 608,585
Other accrued liabilities 1,477,291 1,272,544
------------ ------------
Total current liabilities 46,971,363 30,975,826
------------ ------------
Long-term debt, net of current portion 45,836,227 41,808,703
------------ ------------
Deferred income taxes 862,157 818,686
------------ ------------
Shareholders' equity
Preferred stock, $.01 par value. Authorized
5,000,000 shares; none issued or outstanding -- --
Common stock, $.01 par value. Authorized
45,000,000 shares; issued 13,649,676 and
13,641,776 shares 136,497 136,418
Additional paid-in capital 69,475,544 68,040,433
Retained earnings 8,350,774 7,044,513
------------ ------------
Total shareholders' equity 77,962,815 75,221,364
------------ ------------
$171,632,562 $148,824,579
============ ============
</TABLE>
(1) Restated for pooling of interests--See Note 1.
See notes to condensed consolidated financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
EFTC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three months ended March 31,
1998 1997(1)
------------ ------------
<S> <C> <C>
Net sales $ 54,199,607 $ 16,041,342
Cost of goods sold 44,296,692 13,941,282
------------ ------------
Gross profit 9,902,915 2,100,060
Selling, general, and administrative
expense 5,320,978 1,213,281
Merger costs 1,048,308 --
Goodwill amortization 390,990 22,808
------------ ------------
Operating income 3,142,639 863,971
------------ ------------
Other income (expense):
Interest expense (908,407) (212,327)
Other, net 39,229 20,829
------------ ------------
(869,178) (191,498)
------------ ------------
Income before income taxes 2,273,461 672,473
Income tax expense 934,630 73,119
------------ ------------
Net income $ 1,338,831 $ 599,354
============ ============
Pro forma information:
Historical net income $ 1,338,831 $ 599,354
Pro forma adjustment to income tax
expense 316,636 179,368
------------ ------------
Pro forma net income $ 1,022,195 $ 419,986
============ ============
Pro forma income per share:
Basic $ 0.07 $ 0.06
============ ============
Diluted $ 0.07 $ 0.06
============ ============
Weighted average shares outstanding:
Basic 13,644,587 6,657,667
============ ============
Diluted 14,399,804 6,657,667
============ ============
- ------------
</TABLE>
(1) Restated for pooling of interests--See Note 1.
See notes to condensed consolidated financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
EFTC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three months ended March 31,
1998 1997(1)
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 1,338,833 $ 599,354
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 1,358,070 375,729
Deferred income taxes 46,079 164,534
(Gain) loss on sale of fixed assets (4,188) (4,188)
Changes in operating assets and liabilities
Accounts receivable (3,454,550) (1,032,324)
Inventories (13,087,676) (1,038,472)
Prepaid expenses and other current assets (643,629) (98,608)
Accounts payable and accrued expenses 10,733,612 851,010
Income taxes payable 61,924 (19,415)
Other assets 1,224,263 28,795
------------ ------------
Net cash (used by) operating activities (2,427,262) (173,585)
------------ ------------
Cash flows from investing activities:
Proceeds from sale of equipment -- 239,706
Payments for business combinations, net of cash acquired (36,621) (7,279,601)
Purchase of property, plant and equipment (9,450,693) (616,982)
------------ ------------
Net cash (used by) investing activities (9,487,314) (7,656,877)
------------ ------------
Cash flows from financing activities:
Stock options and warrants exercised 45,374 17,982
Issuance of common stock for cash, net of costs (40,676) --
Proceeds from long-term debt 7,605,000 6,700,000
Principal payments on long-term debt (1,979,556) (85,000)
Borrowings (payments) on notes payable, net 5,000,000 1,810,377
------------ ------------
Net cash provided by financing activities 10,630,142 8,443,359
------------ ------------
Increase (decrease) in cash and
cash equivalents (1,284,434) 612,897
Cash and cash equivalents:
Beginning of period 1,877,010 406,903
------------ ------------
End of period $ 592,576 $ 1,019,800
============ ============
</TABLE>
- --------
(1) Restated for pooling of interests--See Note 1.
See notes to condensed consolidated financial statements.
5
<PAGE>
EFTC CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1--Basis of Presentation
The accompanying unaudited consolidated condensed financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Article
10 of Regulation S-X. Accordingly they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. On March 31, 1998, EFTC Corporation acquired, through a
merger, RM Electronics Inc., doing business as Personal Electronics, (Personal)
in a business combination accounted for as a pooling of interests. EFTC issued
1,800,000 shares of common stock in exchange for all of the outstanding common
stock of Personal. Accordingly, the Company's consolidated financial statements
have been restated for all periods presented to combine the financial position,
results of operations, and cash flows of Personal with those of the Company. In
the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the three-month period ended March 31, 1998 are not
necessarily indicative of the results that may be expected for the year ended
December 31, 1998. The unaudited condensed consolidated financial statements
should be read in conjunction with the financial statements and footnotes
thereto included in the Company's annual report, Form 10-K and Form 10-K/A for
the year ended December 31, 1997.
Note 2--Business Combinations
As discussed on Note 1, on March 31, 1998, the Company merged with Personal
in a business combination accounted for as a pooling of interests.
Revenue, net income (loss) and pro forma net income (loss) of EFTC and
Personal and the combined companies for the years ended December 31 are as
follows:
Year ended December 31: EFTC Corporation Personal Combined
- ----------------------- ---------------- -------- --------
1997:
Revenue $113,243,983 $ 8,835,134 $122,079,117
Net income 3,316,321 104,608 3,420,929
Pro forma net income 3,316,321 63,811 3,380,132
1996:
Revenue 56,880,067 4,030,249 60,910,316
Net loss (1,592,965) (24,942) (1,617,907)
Pro forma net loss (1,592,965) (15,215) (1,608,180)
1995:
Revenue 49,220,070 2,359,676 51,579,746
Net income (loss) 354,138 (5,060) 349,078
Pro forma net income (loss) 354,138 (3,085) 351,053
The Company incurred merger costs of $1,048,308, which were charged to
operations in March 1998. Notes payable to shareholders of Personal in the
amount of $1,397,922 were converted to equity upon consummation of the merger.
6
<PAGE>
Notes 3--Inventories
The components of inventory consist of the following:
March 31, December 31,
1998 1997
----------- -----------
Purchased parts
and completed
subassemblies $50,184,714 $38,723,546
Work-in-process 8,164,861 6,950,855
Finished Goods 804,751 392,249
----------- -----------
$59,154,326 $46,066,650
=========== ===========
Note 4--Supplemental Disclosure of Cash Flow Information
March 31, March 31,
1998 1997
---------- ----------
Cash paid during the period for:
Interest $ 977,670 $ 124,963
========== ==========
Income taxes $ 858,695 $ 0
========== ==========
Common stock issued in exchange for stock of Current
Electronics, Inc. -- $5,445,000
========== ==========
Conversion of notes payable to shareholders' equity $1,397,922 --
========== ==========
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION
THREE MONTHS ENDED MARCH 31, 1998
This information set forth below contains "forward looking statements"
within the meaning of the federal securities laws and other statements of
expectations, beliefs, plans, and similar expressions concerning matters that
are not historical facts. These statements are subject to risks and
uncertainties that could cause actual results to differ materially from those
expressed in the statements.
Results of Operations
Net Sales. The Company's net sales increased by 238.8% to $54.2 million for
the first quarter of 1998 compared to $16.0 million in the first quarter of
1997. The increase in net sales is due primarily to the inclusion of the
operations from Current Electronics, Inc. and certain of its affiliates (the "CE
Companies"), acquired on February 24, 1997 (the "CE Merger"), the inclusion of
the operations of the Company's Ft. Lauderdale and Arizona facilities, acquired
from AlliedSignal in August 1997 (the "AlliedSignal Acquisition"), the inclusion
of Circuit Test, Inc. and certain of its affiliates (the "CTI Companies"),
acquired on September 30, 1997 (the "CTI Merger"), the growth in revenues of
Personal and increased orders from existing customers.
Gross Profit. Gross profit increased by 371.4% to $9.9 million for the
quarter ended March 31, 1998 compared to $2.1 million for the same period last
year. The gross profit margin increased to 18.3% for the quarter ended March 31,
1998 from 13.1% for the quarter ended March 31, 1997. The increase in gross
profit margin is related to (i) the operations of the CE Companies, which have
historically had a higher gross profit margin, (ii) the adoption of the
Company's Asynchronous Process Manufacturing ("APM") methodology in the later
part of 1996 in the Rocky Mountain facility which has resulted in greater
operating efficiencies, and (iii) the operations of the CTI Companies, which
have historically had a higher gross profit percentage. In addition, as revenues
have increased, fixed overhead costs such as labor costs and depreciation have
been absorbed in costs of goods sold resulting in higher margins.
Selling, General and Administrative Expenses. Selling, general and
administrative ("SGA") expenses increased by 341.7% to $5.3 million for the
first quarter ended March 31, 1998, compared with $1.2 million for the same
period in 1997. As a percentage of net sales, SGA expense increased to 9.8% for
the quarter ended March 31, 1998 from 7.6% from the quarter ended March 31,
1997. The increase in SGA expenses is primarily due to the inclusion of the CE
Companies', the CTI Companies' and the Company's Ft. Lauderdale and Arizona
facilities' SGA expenses and increased investment in information technology and
marketing.
Operating Income. Operating income increased to $3.1 million for the
quarter ended March 31, 1998 from $0.9 million for the quarter ended March 31,
1997. Operating income as a percentage of net sales increased to 5.8% for the
quarter ended March 31, 1998 from 5.4% for the quarter ended March 31, 1997.
Excluding the one-time merger costs of $1.0 million in the first quarter of
1998, operating income would have been $4.2 million or 7.7% of net sales. The
increase in operating income is attributable to the CE Merger, the CTI Merger,
the increase in operating income of Personal, increased efficiencies associated
with APM, and the acquisition and operation of the Ft. Lauderdale facility.
8
<PAGE>
Interest Expense. Interest expense was $0.9 million for the quarter ended
March 31, 1998 compared to $0.2 million for the same period in 1997. The
increase in interest is primarily the result of the incurrence of debt
associated with the CE Merger, the AlliedSignal Asset Purchase in Arizona and
Florida, the CTI Merger, and increased operating debt used to finance the growth
of inventories and receivables.
Income Tax Expense. The effective income tax rate for the quarter ended
March 31, 1998 was 55.0% including pro forma income taxes compared to 37.5% for
the same period in 1997 due to the impact of nondeductible goodwill and the
nondeductible portion of the one-time merger costs of approximately $875,000 in
the first quarter of 1998, which significantly increases the effective tax rate.
Liquidity and Capital Resources
At March 31, 1998, working capital totaled $43.5 million compared to $43.6
million at December 31, 1997.
Cash used in operations for the quarter ended March 31, 1998, was $2.4
million compared to $0.2 million for the same period in 1997. Accounts
receivable increased 13.8% to $28.9 million at March 31, 1998 from $25.4 million
at December 31, 1997. A comparison of receivable turns (e.g., annualized sales
divided by current accounts receivable) for the quarter ended March 31, 1998
compared to December 31, 1997 is 7.5 and 4.8, respectively. Inventories
increased 28.4% to $59.2 million at March 31, 1998 from $46.1 million at
December 31, 1997. A comparison of inventory turns (i.e., annualized cost of
sales divided by current inventory) for the quarter ended March 31, 1998
compared to December 31, 1997 shows an increase to 3.0 from 2.2, respectively.
The Company used cash to purchase capital equipment totaling $9.5 million
for the quarter ended March 31, 1998 compared to $0.6 million for the quarter
ended March 31, 1997. The increase is primarily attributable to construction
payments for buildings and improvements in the Northwest, Southwest, and Rocky
Mountain locations.
In connection with the CTI Merger and the AlliedSignal Asset Purchase, the
Company entered into a Credit Agreement, dated as of September 30, 1997, as
amended (the "Bank One Loan"), provided by Bank One, Colorado, N.A. The Bank One
Loan initially provided for a $25 million revolving line of credit, maturing on
September 30, 2000 and a $20 million term Loan maturing on September 30, 2002.
The Bank One Loan currently bears interest at a rate based on either the London
Inter-Bank Offering Rate ("LIBOR") or Bank One prime rate plus applicable
margins ranging from 2.50% to 0.00% for both the term and revolving facilities.
Borrowings on the revolving facility are subject to limitation based on the
value of the available collateral. The Bank One Loan is collateralized by
substantially all of the Company's assets, including real estate and all of the
outstanding capital stock and membership interests of the Company's
subsidiaries, whether now owned or later acquired. The agreement for the Bank
One Loan contains covenants restricting liens, capital expenditures,
investments, borrowings, payment of dividends, mergers, and acquisitions and
sale of assets. In addition, the loan agreement, as amended, contains financial
covenants restricting maximum annual capital expenditures, recapturing excess
cash flow and requiring maintenance of the following ratios: (i) maximum total
debt to EBITDA (as defined in the agreement for the Bank One Loan); (ii) minimum
fixed
9
<PAGE>
charge coverage; (iii) minimum EBITDA to interest; and (iv) minimum tangible net
worth requirement with periodic step-up.
In addition to the Bank One Loan, the Company issued a director of the
Company $15 million in aggregate principal amount of Subordinated Notes, with a
maturity date of December 31, 2002 and bearing interest at LIBOR plus 2.0%, in
order to fund the acquisition of certain assets from AlliedSignal. The Company
issued a warrant (the "Warrant") to purchase 500,000 shares of common stock at a
price of $8.00 per share in connection with the Subordinated Notes. The Warrant
was exercised in October 1997, resulting in net proceeds to the Company of $4
million. In December 1997, the Company repaid approximately $ 10 million of the
Subordinated Notes from the proceeds of additional borrowings under the Bank One
Loan.
In November 1997, the Company completed a public offering of approximately
3,500,000 shares of common stock. The Company used the proceeds of such offering
to make a $6.0 million payment to the previous owners of the CTI Companies and
to repay approximately $32 million of the Bank One Loan. In November 1997, the
Company reborrowed approximately $20 million of the Bank One Loan that had been
repaid in order to fund increases in inventory and accounts receivable related
to increased business associated with the CE Merger, the CTI Merger, the
AlliedSignal Asset Purchase, and to repay $10 million in aggregate principal
amount of the Subordinated Notes. In March 1998, the Company issued Bank One a
15-day note in the principal amount of $5 million (the "Bank One Note") the
proceeds of which were used to make payments to AlliedSignal in connection with
the AlliedSignal Asset Purchase and for normal operating expenses. The Bank One
Loan was then amended in April 1998 to increase the revolving line of credit to
$40 million from $25 million. The Bank One Note was repaid in April 1998, after
the amendment to the Bank One Loan was completed. As of March 31, 1998, the
total outstanding principal amount under the Bank One Loan was $44.3 million,
comprised of a term loan of $19.3 million and an outstanding balance on the
revolving loan of $25 million. $15 million remained available for borrowing
under the Bank One Loan.
The Company may require additional capital to finance enhancements to, or
expansions of, its manufacturing capacity in accordance with its business
strategy. Management believes that the need for working capital will continue to
grow at a rate generally consistent with the growth of the Company's operations.
The Company may seek additional funds, from time to time, through public or
private debt or equity offerings, bank borrowing or leasing arrangements;
however, no assurance can be given that financing will be available on terms
acceptable to the Company.
The Company is implementing a new management information system (the "MIS
System") throughout all of its facilities, including those it has recently
acquired. The MIS System is designed to be "Year 2000 Compliant." Therefore, in
the absence of unanticipated difficulties in implementing the MIS System, the
Company does not anticipate that Year 2000 problems will have a material adverse
effect on the Company's operations. The Company is evaluating the impact of the
Year 2000 issue on vendors with a goal of completion during 1998.
10
<PAGE>
Quarterly Results
Although management does not believe that the Company's business is
affected by seasonal factors, the Company's sales and earnings may vary from
quarter to quarter, depending primarily upon the timing of the customer orders
and product mix. Therefore, the Company's operating results for any particular
quarter may not be indicative of the results for any future quarter of the year.
PART II. OTHER INFORMATION
ITEM 2. Changes in Securities and Use of Proceeds
On March 31, 1998, through the merger of RM Electronics Acquisition
Corporation, a New Hampshire corporation and wholly owned subsidiary of the
Company ("RM Acquisition"), and RM Electronics, Inc., a New Hampshire
corporation doing business as Personal Electronics, Inc. ("Personal
Electronics"), the Company acquired Personal Electronics, which was an
independent provider of quick-turn, small scale, high mix electronic
manufacturing services to original equipment manufacturers in the greater Boston
area and New Hampshire. The consideration for the acquisition of Personal
Electronics consisted of 1,800,000 shares of the Company's Common Stock, which
were issued to the former shareholders of Personal Electronics. The Company
determined that the issuance of such shares was exempt from registration under
Section 4(2) of the Securities Act as a transaction by the issuer not involving
a public offering because the transaction involved the acquisition of a business
from the owners thereof based on private negotiations.
ITEM 6(a) Exhibits
EXHIBIT
NUMBER
27.1 Financial Data Schedule
27.2 Restated Financial Data Schedules
27.3 Restated Financial Data Schedules
27.4 Restated Financial Data Schedules
ITEM 6(b) Reports on Form 8-K
The Company did not file any report on Form 8-K during the three months
ended March 31, 1998.
11
<PAGE>
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.
EFTC Corporation
(Registrant)
Date: May 15, 1998
/s/ Jack Calderon
----------------------------------------------
Jack Calderon
President and Chief Executive Officer
Date: May 15, 1998
/s/ Stuart W. Fuhlendorf
----------------------------------------------
Stuart W. Fuhlendorf
Treasurer and Chief Financial Officer
Date: May 15, 1998
/s/ Brent L. Hofmeister
-------------------------
Brent L. Hofmeister, CPA
Controller
12
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 592,576
<SECURITIES> 0
<RECEIVABLES> 29,332,890
<ALLOWANCES> 466,000
<INVENTORY> 59,154,326
<CURRENT-ASSETS> 90,508,242
<PP&E> 43,051,938
<DEPRECIATION> 10,205,943
<TOTAL-ASSETS> 171,632,562
<CURRENT-LIABILITIES> 46,971,363
<BONDS> 45,836,227
0
0
<COMMON> 136,497
<OTHER-SE> 77,826,318
<TOTAL-LIABILITY-AND-EQUITY> 171,632,562
<SALES> 54,199,607
<TOTAL-REVENUES> 54,199,607
<CGS> 44,296,692
<TOTAL-COSTS> 44,296,692
<OTHER-EXPENSES> 6,760,276
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 908,407
<INCOME-PRETAX> 2,273,461
<INCOME-TAX> 1,251,266
<INCOME-CONTINUING> 1,022,195
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,022,195
<EPS-PRIMARY> .07
<EPS-DILUTED> .07
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C> <C> <C>
<PERIOD-TYPE> 12-MOS 9-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997 DEC-31-1997
<PERIOD-END> DEC-31-1997 SEP-30-1997 JUN-30-1997
<CASH> 1,877,010 3,756,457 2,180,993
<SECURITIES> 0 0 0
<RECEIVABLES> 25,886,340 19,917,122 8,110,566
<ALLOWANCES> 474,000 194,480 105,000
<INVENTORY> 46,066,650 32,803,319 17,908,082
<CURRENT-ASSETS> 74,609,958 57,490,552 29,708,306
<PP&E> 30,314,897 25,129,265 17,581,822
<DEPRECIATION> 5,957,233 6,815,069 6,678,801
<TOTAL-ASSETS> 148,824,579 121,126,636 48,701,203
<CURRENT-LIABILITIES> 30,975,826 54,641,170 17,179,367
<BONDS> 41,808,703 33,650,418 10,095,442
0 0 0
0 0 0
<COMMON> 136,418 78,121 59,374
<OTHER-SE> 75,084,946 32,082,663 21,038,537
<TOTAL-LIABILITY-AND-EQUITY> 148,824,579 121,126,636 48,701,203
<SALES> 122,079,117 30,482,541 24,617,515
<TOTAL-REVENUES> 122,079,117 30,482,541 24,617,515
<CGS> 102,166,332 25,749,618 20,863,136
<TOTAL-COSTS> 102,166,332 25,749,618 20,863,136
<OTHER-EXPENSES> 13,258,178 2,355,441 2,062,217
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 2,410,860 540,844 376,644
<INCOME-PRETAX> 5,539,324 3,019,303 1,346,096
<INCOME-TAX> 2,159,192 1,121,971 515,911
<INCOME-CONTINUING> 3,380,132 1,897,332 830,185
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> 3,380,132 1,897,332 830,185
<EPS-PRIMARY> .40 .23 .11
<EPS-DILUTED> .38 .23 .11
<FN>
THIS FINANCIAL DATA SCHEDULE IS RESTATED TO REFLECT THE RESTATEMENT OF THE
FINANCIAL STATEMENTS OF EFTC CORPORATION AS A RESULT OF A MERGER IN THE FIRST
QUARTER OF 1998 THAT WAS ACCOUNTED FOR AS A POOLING OF INTERESTS.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 12-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1996 DEC-31-1996
<PERIOD-END> MAR-31-1997 DEC-31-1996 SEP-30-1996
<CASH> 1,019,800 406,903 682,701
<SECURITIES> 0 0 0
<RECEIVABLES> 7,413,669 4,480,249 4,010,426
<ALLOWANCES> 105,000 20,000 20,000
<INVENTORY> 14,693,824 9,195,202 10,177,610
<CURRENT-ASSETS> 24,511,767 15,208,249 16,115,985
<PP&E> 16,817,773 12,965,257 13,730,707
<DEPRECIATION> 6,231,696 4,235,894 4,680,056
<TOTAL-ASSETS> 43,185,743 24,037,385 25,211,959
<CURRENT-LIABILITIES> 12,637,842 5,924,250 6,794,420
<BONDS> 10,277,624 3,947,085 3,129,096
0 0 0
0 0 0
<COMMON> 59,281 57,427 39,427
<OTHER-SE> 19,891,409 13,792,764 14,914,134
<TOTAL-LIABILITY-AND-EQUITY> 43,185,743 24,037,385 25,211,959
<SALES> 16,041,342 60,910,316 14,660,515
<TOTAL-REVENUES> 16,041,342 60,910,316 14,660,515
<CGS> 13,941,282 56,276,756 13,596,628
<TOTAL-COSTS> 13,941,282 56,276,756 13,596,628
<OTHER-EXPENSES> 1,236,089 6,642,903 2,558,746
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 212,327 575,673 150,491
<INCOME-PRETAX> 672,473 (2,484,568) (1,640,222)
<INCOME-TAX> 252,487 (876,388) (547,912)
<INCOME-CONTINUING> 419,986 (1,608,180) (1,092,310)
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> 419,986 (1,608,180) (1,092,310)
<EPS-PRIMARY> .06 (.28) (.19)
<EPS-DILUTED> .06 (.28) (.19)
<FN>
THIS FINANCIAL DATA SCHEDULE IS RESTATED TO REFLECT THE RESTATEMENT OF THE
FINANCIAL STATEMENTS OF EFTC CORPORATION AS A RESULT OF A MERGER IN THE FIRST
QUARTER OF 1998 THAT WAS ACCOUNTED FOR AS A POOLING OF INTERESTS.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 3-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1996
<PERIOD-END> JUN-30-1996 MAR-31-1996
<CASH> 305,002 357,558
<SECURITIES> 0 0
<RECEIVABLES> 7,760,356 5,371,148
<ALLOWANCES> 20,000 20,000
<INVENTORY> 10,846,719 11,617,065
<CURRENT-ASSETS> 19,512,892 17,875,092
<PP&E> 14,213,783 13,837,818
<DEPRECIATION> 4,794,995 4,472,686
<TOTAL-ASSETS> 29,123,539 27,410,028
<CURRENT-LIABILITIES> 9,650,705 7,851,781
<BONDS> 3,263,617 3,587,786
0 0
0 0
<COMMON> 39,427 39,409
<OTHER-SE> 15,816,558 15,586,484
<TOTAL-LIABILITY-AND-EQUITY> 29,123,539 27,410,028
<SALES> 17,047,606 15,876,123
<TOTAL-REVENUES> 17,047,606 15,876,123
<CGS> 15,842,942 14,835,911
<TOTAL-COSTS> 15,842,942 14,835,911
<OTHER-EXPENSES> 939,490 904,476
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 161,018 113,408
<INCOME-PRETAX> 130,211 17,757
<INCOME-TAX> 55,578 2,707
<INCOME-CONTINUING> 74,633 15,050
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 74,633 15,050
<EPS-PRIMARY> .01 .00
<EPS-DILUTED> .01 .00
<FN>
THIS FINANCIAL DATA SCHEDULE IS RESTATED TO REFLECT THE RESTATEMENT OF THE
FINANCIAL STATEMENTS OF EFTC CORPORATION AS A RESULT OF A MERGER IN THE FIRST
QUARTER OF 1998 THAT WAS ACCOUNTED FOR AS A POOLING OF INTERESTS.
</FN>
</TABLE>
