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 June 30, 1996.
OR
[ ] Transition report pursuant to Section 13(d) or 15(d) of the Securities
Exchange Act of 1934 for the transition period from ______ to ______.
Commission file number: 0-23296
CIDCO INCORPORATED
(Exact Name of Registrant as Specified in its Charter)
Delaware 13-3500734
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification number)
220 Cochrane Circle
Morgan Hill, CA 95037
(Address of principal executive offices and zip code)
(408) 779-1162
(Registrant's telephone number, including area code)
---------------------------------------------
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
----- -----
The number of shares outstanding of the Registrant's Common Stock on
July 31, 1996 was 14,338,186.
<PAGE>
CIDCO INCORPORATED
INDEX
PART I. FINANCIAL INFORMATION Page
Item 1. Financial Statements:
Balance sheet at June 30, 1996
and December 31, 1995 .................................3
Income statement for the three and
six months ended June 30, 1996 and 1995 ...............4
Statement of cash flows for the
six months ended June 30, 1996 and 1995 ...............5
Notes to unaudited financial statements ...................6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations..........7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K .........................10
SIGNATURES .................................................................11
2
<PAGE>
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
CIDCO INCORPORATED
BALANCE SHEET
(in thousands, except per share data)
<CAPTION>
June 30, December 31,
1996 1995
-------- --------
(unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents .................................... $ 169,575 $ 19,290
Short-term investments ....................................... 41,075 21,342
Accounts receivable, net of allowances
for doubtful accounts of $2,850 and $3,150 ................. 49,863 49,624
Inventories .................................................. 13,699 17,916
Deferred tax asset ........................................... 2,974 2,974
Other current assets ......................................... 2,045 1,146
----------- -----------
Total current assets ....................................... 279,231 112,292
Property and equipment, net ..................................... 13,807 14,112
Other assets .................................................... 5,923 747
----------- -----------
$ 298,961 $ 127,151
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ............................................. $ 16,463 $ 11,373
Accrued compensation ......................................... 2,505 2,795
Accrued liabilities .......................................... 7,441 5,627
Accrued taxes payable ........................................ 1,641 1,142
----------- -----------
Total current liabilities .................................. 28,050 20,937
Long-term debt................................................... 150,000 --
----------- -----------
Total liabilities............................................. 178,050 20,937
Stockholders' equity:
Common stock, $.01 par value; 35,000 shares authorized,
14,311 and 14,033 shares issued and outstanding ........... 143 141
Additional paid-in capital ................................... 85,376 83,449
Retained earnings ............................................ 35,392 22,624
----------- -----------
Total stockholder's equity ................................. 120,911 106,214
----------- -----------
$ 298,961 $ 127,151
=========== ===========
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>
3
<PAGE>
CIDCO INCORPORATED
INCOME STATEMENT
(in thousands, except per share data; unaudited)
Three months ended Six months ended
June 30, June 30,
------------------ ----------------
1996 1995 1996 1995
---- ---- ---- ----
Sales ......................... $ 60,446 $ 46,161 $112,132 $ 95,704
Cost of sales ................. 33,920 26,949 62,983 54,372
-------- -------- -------- --------
Gross margin .................. 26,526 19,212 49,149 41,332
-------- -------- -------- --------
Operating expenses:
Research and development .. 3,371 2,118 6,495 4,098
Selling and marketing ..... 10,971 7,579 18,234 16,116
General and administrative. 2,133 1,258 3,819 2,593
-------- -------- -------- --------
16,475 10,955 28,548 22,807
-------- -------- -------- --------
Income from operations ........ 10,051 8,257 20,601 18,525
Other income, net ............. 557 378 957 828
-------- -------- -------- --------
Income before income taxes .... 10,608 8,635 21,558 19,353
Provision for income taxes .... 4,243 3,454 8,623 7,741
-------- -------- -------- --------
Net income .................... $ 6,365 $ 5,181 $ 12,935 $ 11,612
======== ======== ======== ========
Earnings per share ............ $ 0.42 $ 0.35 $ 0.86 $ 0.78
======== ======== ======== ========
Weighted average shares ....... 15,196 14,988 15,106 14,969
======== ======== ======== ========
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
<TABLE>
CIDCO INCORPORATED
STATEMENT OF CASH FLOWS
(in thousands, unaudited)
<CAPTION>
Six months ended
June 30,
------------------------
1996 1995
------- ------
<S> <C> <C>
Cash flows provided by (used in) operating activities:
Net income ............................................................. $ 12,935 $ 11,612
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Depreciation ......................................................... 2,514 1,480
Deferred income taxes ................................................ 0 (900)
Changes in assets and liabilities:
Accounts receivable ................................................ (239) (20,457)
Inventories ........................................................ 4,217 (1,849)
Other current assets ............................................... (899) (912)
Other assets ....................................................... (5,176) (135)
Accounts payable ................................................... 5,090 (1,805)
Accrued compensation ............................................... (290) 276
Accrued liabilities ................................................ 1,814 2,818
Accrued taxes payable .............................................. 499 (2,126)
--------- ---------
Net cash provided by (used in) operating activities ............ 20,465 (11,998)
--------- ---------
Cash flows used in investing activities:
Acquisition of property and equipment .................................. (2,209) (4,661)
Purchase of short-term investments ..................................... (19,900) (8,466)
--------- ---------
Net cash used in investing activities .......................... (22,109) (13,127)
--------- ---------
Cash flows provided by financing activities:
Issuance of Common Stock ............................................... 1,929 541
Long-term debt ......................................................... 150,000 --
--------- ---------
Net cash provided by financing activities ...................... 151,929 541
--------- ---------
Net increase (decrease) in cash and cash equivalents ...................... 150,285 (24,584)
Cash and cash equivalents at beginning of period .......................... 19,290 28,224
Cash and cash equivalents at end of period ................................ $ 169,575 $ 3,640
========= =========
Supplemental disclosure of cash flow information:
Cash paid for income taxes ............................................. $ 8,124 $ 11,325
========= =========
Supplemental disclosure of non-cash investing and financing activities:
Unrealized gain (loss) on investments ..................................... $ 167 $ 228
========= =========
<FN>
The accompanying notes are an integral part of these financial statements.
</FN>
</TABLE>
5
<PAGE>
CIDCO INCORPORATED
NOTES TO FINANCIAL STATEMENTS
NOTE 1-- BASIS OF PRESENTATION
The accompanying financial information is unaudited, but, in the
opinion of management, reflects all adjustments (which include only normally
recurring adjustments) necessary for a fair presentation of the Company's
financial position, operating results and cash flows for those periods
presented. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to the rules and regulations
of the Securities and Exchange Commission. The financial information should be
read in conjunction with the audited financial statements and notes thereto for
the year ended December 31, 1995 included in the Company's Annual Report on Form
10-K filed with the Securities and Exchange Commission. Results for the interim
period are not necessarily indicative of results for the entire year.
NOTE 2--INVENTORIES
Inventories, stated at the lower of cost or market, consisted of (in
thousands):
June 30, December 31,
1996 1995
------ ------
Raw Materials .............................. $ 74 $ 247
Finished Goods ................................ 13,625 17,669
-------- --------
$ 13,699 $ 17,916
======== ========
NOTE 3--LONG-TERM DEBT
On June 28, 1996, the Company issued $150 million of 3.75% Convertible
Subordinated Notes due June 30, 2003. The notes are convertible into the
Company's Common Stock at a conversion rate of one share of Common Stock for
each $41.00 principal amount of the notes. The note agreement contains covenants
which, among other matters, restrict or limit the ability of the Company to pay
dividends or incur indebtedness. Interest on the notes is payable quarterly
commencing September 30, 1996. The Company incurred debt issuance costs of
approximately $3.2 million which are included in other assets and are being
amortized over the term of the notes.
6
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
The following information should be read in conjunction with the interim
financial statements and the notes thereto in Part I, Item 1 of this Quarterly
Report.
The discussion and analysis which follows contains trend analysis and other
forward-looking statements. Actual results could differ materially from those
projected in the forward-looking statements as a result of changes in the
economy, changes in the Company's product mix and other factors which may be
beyond the Company's control. In addition, a number of Regional Bell Operating
Companies have recently announced merger plans. The Company is unable to assess
the future effect on the Company of these mergers, if consummated, and of other
possible consolidations and changes in the telecommunications industry.
Results of Operations
The following table sets forth for the periods indicated the percentage of sales
represented by certain line items in the Company's income statement:
As a Percentage of Sales
---------------------------------------
Three months ended Six months ended
June 30, June 30,
-------- --------
1996 1995 1996 1995
---- ---- ---- ----
Sales ................................. 100.0% 100.0% 100.0% 100.0%
Cost of sales ......................... 56.1 58.4 56.2 56.8
----- ----- ----- -----
Gross margin .......................... 43.9 41.6 43.8 43.2
----- ----- ----- -----
Operating expenses:
Research and development ........... 5.6 4.6 5.8 4.3
Selling and marketing .............. 18.2 16.4 16.3 16.9
General and administrative ......... 3.5 2.7 3.4 2.7
----- ----- ----- -----
27.3 23.7 25.5 23.9
----- ----- ----- -----
Income from operations ................ 16.6 17.9 18.3 19.3
Other income, net...................... 0.9 0.8 0.9 0.9
----- ----- ----- -----
Income before income taxes ............ 17.5 18.7 19.2 20.2
Provision for income taxes ............ 7.0 7.5 7.7 8.1
----- ----- ----- -----
Net income ............................ 10.5% 11.2% 11.5% 12.1%
===== ===== ===== =====
7
<PAGE>
Sales
Sales increased 31% to $60.4 million in the second quarter of 1996 from $46.2
million in the second quarter of 1995. For the six months ended June 30, 1996,
sales increased 17% to $112.1 million from $95.7 million for the same period in
1995. These increases resulted from higher direct fulfillment, telco and retail
unit sales. In particular, the Company undertook a number of major telemarketing
and direct mail promotions with Southwestern Bell. Additionally, Bell Atlantic
and K-Mart initiated significant Caller ID promotions utilizing the Company's
products. The Company expects that direct marketing programs will continue to be
a significant source of sales in future quarters.
Gross margin
Cost of sales includes primarily the cost of finished goods purchased from the
Company's offshore contract manufacturers. It also includes all costs associated
with procuring, warehousing, and distributing the Company's inventory, as well
as, costs associated with returned product. Gross margin as a percentage of
sales increased from 41.6% in the second quarter of 1995 to 43.9% in the second
quarter of 1996. Gross margin for the six months ended June 30, 1996 was 43.8%,
an increase from the corresponding 1995 period gross margin of 43.2%. These
increases primarily represent higher product margins for direct marketing
programs, which are offset by higher selling and marketing expenses, as well as,
reductions in the cost of repairing and refurbishing returned product. In
January 1996, the Company began outsourcing its product repair and refurbishing
to the factories which originally built the product, thereby reducing the
Company's overhead. The Company expects gross margins to vary in the future due
to changes in sales mix by distribution channel and product mix. The Company
believes gross margins may decline over time as a result of increased pricing
pressures in certain distribution channels.
Research and development expenses
Research and development expenses primarily consist of salaries for research and
development personnel and associated personnel benefits, in addition to tooling
and supplies for research and development activities. The Company's policy is to
expense all research and development expenditures as incurred except for certain
investments for tooling. Research and development expenses increased 62% to $3.4
million in the quarter ended June 30, 1996, from $2.1 million in the second
quarter of 1995. For the six months ended June 30, 1996, research and
development expenses were $6.5 million, an increase of 59% over $4.1 million for
the same period in 1995. These increases primarily resulted from increased
spending on personnel working on development projects, such as, an ADSI
terminal, cordless telephones and an Internet phone. Research and development
expenses as a percentage of sales increased from 4.6% in the quarter ended June
30, 1995 to 5.6% in the equivalent period of 1996 and from 4.3% in the six
months ended June 30, 1995 to 5.8%. The Company expects that research and
development expenditures will increase or continue at approximately the same
level during the remainder of 1996.
Selling and marketing expenses
Selling and marketing expenses represent primarily personnel costs, telephone
and electronic data exchange expenses, promotional costs and travel expenses for
marketing personnel. Selling and marketing expenses increased from $7.6 million
in the quarter ended June 30, 1995 to $11.0 million in the comparable period of
1996. Selling and marketing expenses increased from $16.1 million in the six
months ended June 30, 1995 to $18.2 million in the same period of 1996. As a
percentage of sales, selling and marketing expenses increased from 16.4% in the
quarter ended June 30, 1995 to 18.2% in the like period of 1996, and decreased
from 16.9% in the six months ended June 30, 1995 to 16.3% in the same period of
1996. The increases in dollar amounts were due principally to the Company
significantly expanding its promotion of intelligent network services through
several direct mail and telemarketing campaigns resulting in increased
advertising and telemarketing agency costs. While the Company anticipates that
selling and marketing expenses as a percentage of sales will continue in the
near term at approximately the current level, variations in sales mix by
distribution channel could cause such percentage to vary in the future.
8
<PAGE>
General and administrative expenses
General and administrative expenses represent primarily salaries, benefits and
other expenses associated with the finance and administrative functions of the
Company. General and administrative expenses increased from $1.3 million in the
quarter ended June 30, 1995 to $2.1 million in the comparable period of 1996.
For the first half of 1996, general and administrative expenses were $3.8
million versus $2.6 million for the same period in 1995. As a percentage of
sales, general and administrative expenses increased to 3.5% in the quarter
ended June 30, 1996 from 2.7% in the comparable period of 1995, and in the first
six months of 1996 general and administrative expenses were 3.4% of sales, an
increase from 2.7% for the corresponding 1995 period. These increases reflect
higher spending on legal costs, information systems and administrative staff
required to support growth of the Company. The Company believes that general and
administrative expenditures will increase or continue at approximately the same
level during the remainder of 1996.
Provision for income taxes
The provision for income taxes for all periods in 1996 and 1995 reflects a rate
of 40%.
Liquidity and capital resources
The Company's cash, cash equivalents and short-term investments
increased $170 million during the six months ended June 30, 1996, primarily due
to the investment of $150 million by an afiliate of Forstmann Little & Co. in
the form of newly issued Cidco convertible debt and, to a lesser extent,
operating profits. The Company plans to use these funds for general corporate
purposes, including working capital. The Company may also use the proceeds for
acquisitions of technology, products or companies and to fund research and
development activities.
As of May 1996, the Company increased its line of credit to $25.0
million from $20.0 million, none of which has been drawn down; however, the
Company does use the line of credit for standby letters of credit related to the
purchase of inventory from offshore contract manufacturers. Total outstanding
letters of credit as of June 30, 1996 were $10.0 million. The line is secured by
the Company's assets.
The Company had working capital of $251.2 million as of June 30, 1996
as compared to $91.4 million at December 31, 1995. The Company's current ratio
improved from 5.4 to 1, as of December 31, 1995, to 10.0 to 1, as of June 30,
1996. Capital expenditures in 1996 are expected to be funded from working
capital currently available. The Company believes its current cash, cash
equivalents, short-term investments and line of credit will satisfy the
Company's working capital and capital expenditure requirements at least through
the end of 1996.
9
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
See Index to Exhibits at page 12 below.
(b) Reports on Form 8-K.
The Company filed one report on Form 8-K during the three
months ended June 30, 1996 related to the $150 million
convertible note due to ID Holding Partnership, L.P. (an
affiliate of Forstmann Little & Co.).
10
<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.
CIDCO INCORPORATED
August 6, 1996 By:/s/Paul G. Locklin
- -------------- ----------------------------
Date Paul G. Locklin
President and Chief Executive Officer
August 6, 1996 /s/Scott C. McDonald
- -------------- ---------------------------
Date Scott C. McDonald
Executive Vice President,
Chief Operating and Financial Officer
and Secretary
11
<PAGE>
CIDCO INCORPORATED
INDEX TO EXHIBITS
Exhibits Page
-------- ----
3.1 Amended and Restated Certificate of Incorporation. (1) --
3.2 Amended and Restated By-Laws. (1) --
4 Loan and Security Agreement dated October 21,1994 between --
Registrant and Comerica Bank. (2)
4.2 Loan Revision/Extension Agreement dated May 22, 1996
between Registrant and Comerica Bank. 15
10.4 Patent License Agreement dated as of May 1, 1989 between --
the Registrant and American Telephone and Telegraph
Company.(1)
10.5 Form of Indemnification Agreement. (1) --
10.6 Employment Agreement dated as of January 11, 1994 between --
the Registrant and Robert L. Diamond. (1)
10.7 Employment Agreement dated as of January 11, 1994 between --
the Registrant and Paul G. Locklin. (1)
10.8 Employment, Noncompetition and Nondisclosure Agreement --
between the Registrant and Steven L. Landry. (1)
10.9 Employment Agreement dated as of January 11, 1994 between --
the Registrant and Scott C. McDonald. (1)
10.12 Agreement dated November 20, 1990 between the Registrant --
and Ameritech Services Inc. (1)
10.13 Agreement effective as of December 21, 1992 between the --
Registrant and Southwestern Bell Telephone Company. (1)
10.14 Lease dated August 15, 1993 between Thoits Bros., Inc. --
and the Registrant for 220 Cochrane Circle. (1)
10.16 Lease dated May 31, 1994, between Thoits Bros., Inc. --
and the Registrant for 225 Cochrane Circle,
Units A, B, C, D, and E. (2)
10.17 Sublease dated November 18, 1994, between Thoits Bros. --
and the Registrant for 180 Cochrane Circle.(3)
<PAGE>
10.18 Lease dated November 1, 1994, between Thoits Bros., Inc. --
and the Registrant for 105 Cochrane Circle,
Units A, B, C, D, and E.(3)
10.19 Registrant's Amended and Restated 1993 Stock Option Plan.(1) --
10.20 Registrant's 1994 Directors' Stock Option Plan. (1) --
10.21 Registrant's 1994 Employee Stock Purchase Plan. (1) --
10.22 Note Purchase Agreement among the Registrant, ID Holding --
Partnership, L.P. and ID Partnership, L.P. (4)
10.23 3.75% Convertible Subordinated Note Due June 30, 2003 --
in the principal amount of $150,000,000, issued by the
Registrant on June 28, 1996 and made payable to ID Holding
Partnership, L.P. (4)
10.24 Registration Rights Agreement between the Registrant and --
ID Holding Partnership, L.P. (4)
- --------------------------
(1) Incorporated herein by reference to the Company's registration statement on
Form S-1, File No. 33-74114.
(2) Incorporated herein by reference to the Company's Form 10-Q for the quarter
ended June 30, 1995.
(3) Incorporated herein by reference to the Company's Form 10-K for the year
ended December 31, 1995.
(4) Incorporated herein by reference to the Company's Form 8-K filed
July 3, 1996.
<PAGE>
Exhibit 4.2
14
<PAGE>
THIRD AMENDMENT
TO
REVOLVING CREDIT LOAN AGREEMENT (SECURED)
This Third Amendment to Revolving Credit Loan Agreement (Secured) (this
"Agreement") is entered into by and between CIDCO INCORPORATED ("Borrower") and
Comercia Bank-California ("Bank") as of this 22nd day of May, 1996, at San Jose,
California.
RECITALS
A. Borrower and Bank have previously entered into that certain Amended
and Restated Revolving Credit Loan Agreement (Secured), that certain Loan
Revision/Extension Agreement each, dated March 2, 1995, that certain First
Amendment to Revolving Credit Loan Agreement (Secured) and that certain Second
Amendment to Revolving Credit Loan Agreement (Secured) dated October 13, 1995
(collectively, the "Agreement") and a Master Revolving Note -Variable Rate -
Maturity Date - Obligatory Advances (Business and Commercial Loans Only) dated
October 13, 1995 (the "Note").
B. The Agreement provides for Bank to provide Borrower with a revolving
loan (the "Revolving Loan") in an amount not to exceed Twenty Million Dollars
($20,000,000), on the terms set forth more completely in the Agreement and the
Note.
C. The Agreement and the Note provide for a maturity date (the
"Maturity Date") of April 1, 1997.
D. Borrower has requested and Bank has agreed, that Bank will increase
the maximum amount of the Revolving Loan from Twenty Million Dollars
($20,000,000) to Twenty-Five Million Dollars ($25,000,000) and to extend the
Maturity Date to May 1, 1998.
AGREEMENT
For good and valuable consideration, receipt of which is hereby
acknowledged, the parties agree as set forth below.
1. Incorporation By Reference. The Recitals and the Agreement are
incorporated herein by this reference.
2. Amendment to Section 1.1. Definition of Commitment Amount. Section
1.1 is hereby amended as set forth below.
The definition of "Commitment Amount" contained in Section 1.1 of the
Agreement is hereby amended to provide as follows:
1
<PAGE>
"Commitment Amount" shall mean, as of any applicable date of
determination, the sum of Twenty-Five Million Dollars ($25,000,000).
3. Amendment to Section 2.3.1 of the Agreement. Section 2.3.1 of the
Agreement is hereby amended to provide as follows:
The maximum aggregate drawn (but unreimbursed) and undrawn letters of
credit issued pursuant to the Agreement shall not exceed, as of any applicable
date of determination, the sum of Twenty-five Million Dollars ($25,000,000).
4. Extension of Maturity Date. The Maturity Date of the Agreement and
the Note shall be and hereby is extended from April 1, 1997 to May 1, 1998.
5. Execution of New Documents. Concurrently with the execution of this
Amendment, Borrower shall execute a Loan Revision/Extension Agreement reflecting
that the principal amount of the Agreement and the Note shall be increased to
Twenty-five Million Dollars ($25,000,000) and the Maturity Date extended to May
1, 1998. Borrower shall also execute a revised Borrower's Authorization,
Corporate Resolutions and Incumbency Certificate-Authority to Procure Loans.
6. Increase in Loan Fee. Concurrently with the execution hereof,
borrower shall pay Bank an additional loan fee of Two Thousand Five Hundred
Dollars ($2,500), which brings the total aggregate annual loan fee to Twelve
Thousand Five Hundred Dollars ($12,500).
7. Legal Effect. Except as specifically provided herein and in the
documents executed in connection herewith, all of the terms and conditions of
the Agreement remain in full force and effect.
8. Integration. This Amendment is an integrated agreement. This
Amendment and the documents executed in connection herewith supersede all prior
negotiations and agreements regarding the subject matter hereof and thereof. Any
amendments hereto shall be in writing and signed by the parties hereto or
thereto.
IN WITNESS WHEREOF, the parties have executed this Third Amendment to
Revolving Credit Loan Agreement (Secured) as of the date first set forth above.
COMERCIA BANK-CALIFORNIA CIDCO INCORPORATED
By: /s/Brandford L. Smith By: /s/Scott C. McDonald
------------------------ -------------------------
Bradford L. Smith Scott C. McDonald
Title: Assistant Vice President Title: Executive Vice President
2
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(In thousands, except per share data; unaudited)
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 169,575
<SECURITIES> 41,075
<RECEIVABLES> 56,218
<ALLOWANCES> 6,355
<INVENTORY> 13,699
<CURRENT-ASSETS> 279,231
<PP&E> 13,807
<DEPRECIATION> 0
<TOTAL-ASSETS> 298,961
<CURRENT-LIABILITIES> 28,050
<BONDS> 0
0
0
<COMMON> 143
<OTHER-SE> 120,768
<TOTAL-LIABILITY-AND-EQUITY> 298,961
<SALES> 60,446
<TOTAL-REVENUES> 0
<CGS> 33,920
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 16,475
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 10,608
<INCOME-TAX> (4,243)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,365
<EPS-PRIMARY> 0.42
<EPS-DILUTED> 0.42
</TABLE>
