<PAGE>
U.S. Securities & Exchange Commission
Washington, D.C. 20549
Form 10-QSB/A - Amendment No. 1
(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, 1998
------------------
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
for the transition period...................to.......................
Commission file number.................000-24470
NATIONAL ENVIRONMENTAL SERVICE CO.
----------------------------------
(Exact name of small business issuer as specified in its charter)
Oklahoma 73-1296420
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
12331 East 60th Street, Tulsa, Oklahoma 74l46
---------------------------------------------
(Address of principal executive offices)
(918)-250-2227
--------------
(Issuer's telephone number)
Check whether the issuer (1) filed all reports 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_________.
State the number of shares outstanding of each of the issuer's classes of common
equity, as of September 30, 1998:
Number of shares
Title of Class Outstanding
-------------- -----------
Common Stock, $.01 Par Value 7,888,643
Transitional Small Business Issuer Format (Check one): Yes____No__X_
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NATIONAL ENVIRONMENTAL SERVICE CO.
TABLE OF CONTENTS
PAGE
Financial Information:
Consolidated Balance Sheet
September 30, 1998 3
Consolidated Statements of Income
Three Months Ended September 30, 1998 and 1997 4
Consolidated Statements of Income
Nine Months Ended September 30, 1998 and 1997 5
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 1998 and 1997 6
Notes to Consolidated Financial Statements 7
Management's Discussion and Analysis of the
Financial Condition and Results of Operation 9
Part II
Other Information:
Item 2. Changes in Securities and Use of Proceeds 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
Signatures 15
2
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NATIONAL ENVIRONMENTAL SERVICE CO.
CONSOLIDATED BALANCE SHEET
September 30, 1998
(In Thousands)
(Unaudited)
ASSETS
Current assets:
Cash $ 193
Accounts Receivable and Costs in Excess of Billings 7,922
Materials and Supplies 1,209
Prepaid Expenses 81
-------
Total current assets 9,405
-------
Property and equipment, at cost 4,163
Less accumulated depreciation (1,969)
-------
Property and equipment, net 2,194
-------
Other assets 74
-------
Total assets $11,673
=======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long term obligations
and revolving line of credit $ 3,357
Accounts payable 1,690
Accrued liabilities 694
-------
Total current liabilities 5,741
-------
Long-term obligations 800
Deferred income taxes 120
-------
Total Liabilities 6,661
-------
Shareholders' equity:
Preferred stock: 1,000,000 shares authorized;
none issued
Common stock, par value $.01; authorized 20,000,000
shares; issued and outstanding 7,888,163 shares,
including treasury shares
Additional paid-in capital 3,961
Retained Earnings 1,057
Common stock in Treasury, at cost, 31,531 shares (85)
-------
Total shareholders' equity 5,012
-------
Total liabilities and shareholders' equity $11,673
=======
The accompanying notes are an integral part of the financial statements.
3
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NATIONAL ENVIRONMENTAL SERVICE CO.
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(In thousands except per share amounts)
(Unaudited)
1998 1997
------- -------
Revenues $4,551 $3,220
Costs and Expenses 2,717 2,177
Selling, general and administrative expenses 927 788
------ ------
Income from operations 907 255
Other income 11 37
Interest expense 105 64
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Income before provision for income taxes 813 228
Provision for income taxes 310 70
------ ------
Net Income $ 503 $ 158
====== ======
Basic Net Income per share $ 0.07 $ 0.03
====== ======
Diluted Net Income per share $ 0.07 $ 0.03
====== ======
The accompanying notes are an integral part of the financial statements.
4
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NATIONAL ENVIRONMENTAL SERVICE CO.
CONSOLIDATED STATEMENTS OF INCOME
FOR NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(In thousands except per share amounts)
(Unaudited)
1998 1997
------- -------
Revenues $11,183 $10,194
Cost and expenses 7,391 6,567
Selling, general and administrative expenses 2,602 2,365
------- -------
Income from operations 1,190 1,262
Other Income 34 78
Interest Expense 302 256
------- -------
Income before provision for income taxes 922 1,084
Provision for taxes on income 349 376
------- -------
Net Income $ 573 $ 708
------- -------
Basic Net Income per share $ 0.08 $ 0.11
======= =======
Diluted Net Income per share $ 0.08 $ 0.11
======= =======
The accompanying notes are an integral part of the financial statements.
5
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NATIONAL ENVIRONMENTAL SERVICE CO.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997
(In thousands)
(Unaudited)
1998 1997
-------- --------
Operating activities
Net Income $ 573 $ 708
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 324 297
Change in:
Accounts receivable (413) (1,157)
Materials and supplies (215) (122)
Prepaid expenses 1 (54)
Accounts payable (388) (188)
Accrued liabilities 92 310
------- -------
Net cash provided by (used in) operating activities (26) (206)
------- -------
Investing activities
Purchases of property, plant and equipment (280) (471)
Purchase of business (473) -
Other 18 (1)
------- -------
Net cash provided by (used in) investing activities (735) (472)
------- -------
Financing activities:
Proceeds from notes payable and long-term obligations 4,262 440
Principal payments on notes and long term obligations (4,076) (803)
Proceeds from common stock 712 963
Purchase of Treasury Stock (37) -
------- -------
Net cash provided by financing activities 861 600
------- -------
Increase (decrease) in cash 100 (78)
Cash, beginning of period 93 119
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Cash, end of period $ 193 $ 41
======= =======
6
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Basic and diluted EPS for the nine months ended September 30, 1998 and
1997, were computed as follows:
Nine Months Ended September 30
------------------------------
1998 1997
------------------------------
Basic EPS Computation:
Net income $ 573 $ 708
==============================
Weighted average shares outstanding 7,489,140 6,195,620
==============================
Basic EPS $ .08 $ .11
==============================
Diluted EPS Computation:
Net income $ 573 $ 708
==============================
Weighted average shares outstanding 7,489,140 6,195,620
Incremental shares for assumed exercise
of securities:
Options 10,711 -
------------------------------
7,499,852 6,195,260
==============================
Diluted EPS $ .08 $ .11
==============================
The 272,000 shares in 1998 and the 258,000 shares in 1997 of employee stock
options and warrants were not included in the computation of diluted EPS as
their effect is anti-dilutive.
7
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NATIONAL ENVIRONMENTAL SERVICE CO.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. GENERAL
In the opinion of management, the accompanying condensed financial
statements contain all adjustments of a normal recurring nature necessary to
present fairly the financial position of the Company as of September 30, 1998
and the results of operations and cash flows for the three and nine month
periods ended September 30, 1998 and 1997.
2. BUSINESS COMBINATION
Lab One Analytical, Inc. and the corporate office building and facilities
were purchased from Eddy Patterson and Albert McCutchan, the President and
Executive Vice President of the Company following the completion of independent
appraisals of the entities and the review and unanimous consent of the outside
directors of the Company to the transactions and terms and conditions thereof.
The following restatement increases are included in the l997 financial
statements:
3rd Quarter 9 Months
ended 9-30-97 ended 9-30-97
Income from operations $43 $135
Income before provision 51 88
Net Income 32 56
3. EARNINGS PER SHARE
The Company adopted Statement of Financial Accounting Standards ("SFAS")
No. 128, "Earnings Per Share". SFAS 128 replaced primary earnings per share
("EPS") with basic EPS and fully diluted EPS with diluted EPS. Basic EPS is
calculated by dividing net earnings available to common shares by the weighted
average common shares outstanding. Diluted EPS is calculated similarly, except
that it includes the dilutive effect of the assumed exercise of all dilutive
potential common shares outstanding. SFAS 128 also requires previously reported
EPS to be restated.
8
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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the company's
financial statements and notes thereto and other financial information relating
to the Company.
Comparison of Results of Operations for the Three months Ended September 30,
1998 and 1997.
Revenue for the three months ended September 30, 1998 increased 41% from
the corresponding period of 1997 ($4,551,000 compared to $3,220,000). The
increase in 1998 in comparison to the same quarter in 1997 occurred in all but
one revenue category. Increases in site assessments and reports totaled
$251,000, a 302% increase ($334,000 in the second quarter of 1998 compared to
$83,000 in the same quarter of 1997). Remediation revenues increased 386%
($583,000 in the second quarter of 1998 compared to $120,000 for the
corresponding three month period of 1997). The increase in site assessments and
reports resulted from additional site assessments being performed in Texas.
Owners and operators of underground storage tanks in Texas must have corrective
action plans in place prior to the December, 1998 Environmental Protection
Agency deadlines in order to avoid significant increases in their deductibles
for clean-up of contaminated sites. The increase in remediation revenues
resulted from more field work in Texas and the addition of work produced by the
new offices in South Carolina and Florida. The 27% increase in cathodic
protection revenue is the result of significant shipments of cathodic protection
kits to distributors for installation in advance of the December, 1998
compliance deadline. Cathodic protection revenues were $1,065,000 in the third
quarter of 1998 compared to $837,000 for the same period in 1997. The
construction and repair revenues increased 28% in the third quarter of 1998
compared to the corresponding period for 1997 ($2,230,000 compared to
$1,745,000). The 28% increased resulted from the construction of a number of
fueling facilities in Oklahoma City and Texas. Fueling systems service and parts
sales decreased $69,000 during the third quarter of 1998 compared to the same
quarter in 1997 ($245,000 compared to $314,000). The Dallas parts and service
operation accounted for most of the revenues. The decrease in the third quarter
of 1998 relative to the same period in 1997 was due to the unusually large
orders placed in the third quarter of 1997 for equipment to be installed on
three fueling systems to be built by the Company.
The 25% increase in the cost of sales for the third quarter of 1998
compared to the third quarter of 1997 was attributable to the 41% increase in
revenues. Third quarter cost of sales was $2,717,000 compared to $2,177,000 for
the corresponding period in 1997. Direct labor increased 31% or $123,000
($518,000 for the third quarter of 1998 compared to $395,000 for the same period
in 1997). Supplies and materials increased 11% ($897,000 in the third quarter of
1998 compared to $805,000 for the same period in 1997). The increase in
expenditures for supplies and materials was attributable to the significant
increase in revenues for the third quarter of 1998 compared to the same period
in 1997. Subcontractors usage increased in the third quarter of 1998 compared to
the same period in 1997 ($751,000 compared to $499,000). The shift to
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increased installation of fueling systems required the greater use of
subcontractors to perform the work.
Selling, general and administrative expenses increased 18% in the third
quarter of 1998 compared to the third quarter of 1997 ($927,000 compared to
$788,000), but was substantially less than the 41% increase in sales for the
third quarter of 1998. The selling, general and administrative expense was 20%
of revenues for the third quarter of 1998 compared to 24% for the third quarter
of 1997, Salaries increased $100,000 or 26% in the third quarter of 1998
compared to the third quarter of 1997 ($486,000 compared to $386,000). The
increase resulted from normal salary increases and the addition of the Florida
and South Carolina division offices. The increase in general and administrative
salaries was limited by a reduction in salesmen's salaries of $26,000 ($23,000
for the third quarter of 1998 compared to $49,000 for the same quarter in 1997
due to a reduction in the number of sales personnel in 1998). The telephone
expense increased $27,000 for the second quarter of 1998 compared to the same
quarter in 1997 ($48,000 compared to $21,000) due to the significant addition of
personnel, addition of cellular telephones and other communication equipment,
and the addition of offices in Oklahoma City, South Carolina, and Florida.
Office supplies increased $29,000 in the second quarter of 1998 compared to the
same quarter of 1997 ($53,000 compared to $24,000). The office supplies expense
increase resulted from the establishment of offices in Oklahoma, South Carolina,
and Florida and the printing of significant amounts of stationery and other
forms.
Interest expense for the third quarter of 1998 was $105,000 compared to
$64,000 for the same period in 1997. The additional interest expense was
attributable to a larger loan line of credit loan balance to support increased
sales and a larger equipment loan balance due to equipment purchases. The larger
loan balances were somewhat offset by lower interest rates.
Comparison of Results of Operations for the Nine months Ended September 30, 1998
and September 30, 1997.
Revenue for the nine months ended September 30, 1998 increased 10% compared
to the corresponding period of 1997 ($11,183,000 compared to $10,194,000). Most
of the revenue increase for the first nine months of 1998 compared to the same
period in 1997 was attributable to the third quarter of 1998. Remediation
revenues increased $69,000 in the first nine months of 1998 compared to the same
period in 1997 ($786,000 compared to $717,000). The addition of revenues from
the Oklahoma City, South Carolina, and Florida offices coupled with increases in
field work in Texas and Oklahoma accounted for the overall increase relative to
the same period in 1997. Cathodic protection revenues declined only $22,000
during the first nine months of 1998 compared to the same period in 1997
($3,132,000 compared to $3,154,000). Construction and repair revenues increased
$430,000 the first nine months of 1998 compared to the same period in 1997
($5,954,000 compared to $5,524,000). The increase resulted from increased
activity in the construction of fueling facilities in Texas and Oklahoma and the
Company's winning bids on several fueling systems upgrades. Fueling systems
service and parts sales increased $247,000 during the first nine months of 1998
compared to the same period in 1997 ($629,000 compared to
10
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$382,000). The Dallas parts and service operation accounted for most of the
increase. The significant increase in the first nine months of 1998 compared to
the same period in 1997 was due to the start-up of the service operation in
Dallas in the first quarter of 1997. As the fueling systems parts and service
operation has become better known and established, revenues have steadily
increased.
Cost of sales increased 13% to $7,391,000 for the first nine months of 1998
compared to $6,567,000 for the first nine months of 1997. The expense for direct
labor and contract labor increased 13% for the nine months ended September 30,
1998 compared to the same period in 1997 ($1,621,000 compared to $1,437,000) due
to increased sales. Subcontractor expense increased $1,601,000 for the first
nine months of 1998 compared to the same period in 1997 ($2,563,000 compared to
$962,000). The increase in subcontractor expense was substantially offset by
significant declines in materials and supplies expense. Materials and supplies
decreased $942,000 ($1,965,000 for the first nine months of 1998 compared to
$2,907,000 for the same period in 1997). The decrease in materials and supplies
expense and the increase in subcontractor expense resulted from a shift in the
type of jobs performed by the Company in the first nine months of 1998 compared
to the same period in the previous year. The type of jobs performed in 1998
involved greater numbers of fueling systems installations on which the project
owner or the subcontractor purchased the needed supplies and materials directly
from the suppliers. Increased installation of fueling systems required greater
use of subcontractors to perform the work. Vehicle expense except depreciation
decreased 22% ($182,000 for the first nine months of 1998 compared to $233,000
for the first nine months of 1997). This decrease in the first nine months of
1998 was a result of significant expenditures for newer equipment and vehicles
during the first nine months of 1998 which resulted in fewer repairs.
Selling, general and administrative expense increased 10% for the nine
months ended September 30, 1998 compared to the same period in 1997 ($2,602,000
compared to $2,365,000). Selling, general and administrative expense was 23% of
sales for the nine months ended September 30, 1998, and the same for the nine
months ended September 30, 1997. Salesmen's salaries declined $132,000 during
the first nine months of 1998 compared to the same period in 1997. This
reduction was offset by increases in officer, management, and clerical salaries
and resulted in an overall administrative salaries increase of 9% for the first
nine months of 1998 compared to the same period in 1997 ($1,303,000 compared to
$1,190,000). Salesmen's travel expense decreased $29,000 in the first nine
months of 1998 compared to the first nine months of 1997 ($21,000 compared to
$50,000). The reduction in salesmen's salaries and salesmen's travel expense
resulted because several additional sales personnel added in late 1996 and early
1997 were no longer with the Company during the first nine months of 1998.
Office supplies and postage increased $47,000 during the first nine months of
1998 compared to the same period the previous year ($130,000 compared to
$83,000). The office supplies expense increase resulted from significant
computer upgrades and additions, printing of significant amounts of stationery
and other forms, and the establishment of offices in Oklahoma City, Oklahoma,
Columbia, South Carolina, and Largo, Florida. Office rent decreased $9,000
during the first nine months of 1998 compared to the same period the prior year
($44,000 compared to $53,000) due to the acquisition
11
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of the corporate home office facilities at the end of January 1998, and the
elimination of one of two lease payments on two Dallas locations. The Company
relocated its Dallas offices in 1996, and the lease on the vacated facility did
not expire until June 30, 1997. However, these reductions were somewhat offset
by the addition of leases for the offices established in Oklahoma City,
Columbia, and Largo. Telephone expense increased $59,000 during the first nine
months of 1998 compared to the same period in 1997 ($127,000 compared to
$68,000) due to the significant additions of personnel, addition of cellular
telephones and other communication equipment, and the addition of an Oklahoma
City, Columbia, and Largo offices.
Interest expense increased 18% or $46,000 for the first nine months of 1998
compared to the corresponding period in 1997 ($302,000 compared to $256,000).
The additional expense resulted from larger loan balances outstanding during the
first nine months of 1998 compared with the same period in 1997. The interest
expense increase resulting from the larger loan balances outstanding was
substantially offset by lower interest rates obtained by the Company on its line
of credit and on several truck loans.
Changes in Capital Resources and Liquidity
The Company acquired Lab One on January 30, 1998, for $75,000 cash and
225,000 shares of the Company's common stock, a total purchase price of
$750,000.
On February 27, 1998, the Company acquired the office building, warehouse
and lot on which the Company's corporate offices are located. The purchase price
was $600,000, and the Company secured a loan from Citizens' Bank of Tulsa for
$480,000 secured by a mortgage on the acquired real estate. The loan has a term
of 7 years. The interest rate floats at 0.5% above Low New York Prime rate, and
the current rate is 9.0% per annum. The Company paid a 0.5% origination fee.
Both Lab One and the real estate were purchased from Eddy Patterson and
Albert McCutchan, the President and Executive Vice President of the Company
following the completion of independent appraisals of the entities and the
review and unanimous consent of the outside directors of the Company to the
transactions and terms and conditions thereof.
Due to common ownership, these transactions were accounted for in a manner
similar to the pooling of interests method in 1998. The combined unaudited
revenues and expenses of the Company and the acquired entities during 1997 were
$14,746,000 and $13,220,000, respectively. All transactions were with the
Company.
In January 1998, the Company sold 400,000 shares of common stock at $2.00
per share and warrants to purchase 50,000 shares of common stock at $2.00 per
share under a private placement arrangement with Peacock, Hislop, Staley &
Given, Inc. Gross proceeds totaled $800,000. Net proceeds totaled $712,000.
12
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On July 2, 1998, Bank of Oklahoma renewed the Line of Credit Loan which was
to mature on July 31, 1998. The amount of the line was increased from $3 million
to $4.5 million at a rate based on Chase Manhattan Prime plus 3/4th of 1
percent. The maturity is July 31, 1999. Additionally, Bank of Oklahoma has
committed to advancing 80% of the purchase price (up to $700,000 on individual
notes) for the purchase of equipment, machinery, and vehicles.
On July 15, 1998, the Company purchased certain assets, assumed certain
leases, and hired the employees of Steffen, Robertson and Kirsten (U.S.), Inc.'s
Columbia, South Carolina, office. The purchase price was $472,686 plus 12,500
shares of the Company's common stock. The assets purchased included fixed
assets, accounts receivable, and accrued revenues for work performed but not
invoiced. The effective date of the acquisition was June 26, 1998.
The Company continued to make periodic debt repayments during this period.
Year 2000
The Year 2000 issue represents a potentially serious information systems
problem because many software applications and operation systems written in the
past may not property recognize calendar dates beginning in the Year 2000. This
problem could force computers to either shut down or provide incorrect data or
information. In consultation with its software and hardware providers, the
Company began the process of identifying the changes required to its major
financial/administrative systems and hardware in October of 1998. The Company is
in the process of testing its computer hardware and software for Year 2000
compliance and expects to complete this testing by the end of the first quarter
of 1999. The Company is also in the process of surveying its vendors and service
suppliers.
The Company believes that the costs to address its Year 2000 compliance
issues will not be significant. Substantially all of the Company's computer
hardware and software are "off-the-shelf" versions which the Company believes
can be upgraded or replaced as required. The cost for such replacements is
currently estimated to be approximately $15,000.
The Company's principal exposure will be (1) in its inability to process
accounting transactions and invoice customers and (2) the ability of its vendors
and service suppliers to provide critical components or services to the Company.
While the Company believes it will not encounter material problems in either
respect, it is in the process of developing contingency plans to implement a
manual system for accounting and invoicing functions and identifying alternative
sources for the goods and services that are critical to the Company. The Company
believes that its customer base is sufficiently broad and varied and that it
will not encounter material difficulties if the ability of some of them to do
business were substantially curtailed due to Year 2000 problems. Additionally,
the fueling systems industry tends to utilize electronics and systems which are
not particularly date sensitive.
13
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PART II
OTHER INFORMATION
Item 2. Changes in Securities and Use of Proceeds
On July 23, 1998, the Company issued a total of 12,500 shares of its common
stock as part of the consideration for its purchase of certain assets and
operations located in South Carolina from the firm of Steffen, Robertson &
Kirsten (U.S.) Inc., an indirect subsidiary of SRK (Consulting), LTD., an
international consulting company comprised primarily of professional engineers
and scientists. The assets included accounts receivable, work in progress and
certain fixed assets and involved the assumption of certain lease obligations.
The consideration included cash in the approximate amount of $473,000. The
securities were issued pursuant to the exemption from the registration
requirements of the Securities Act of 1933, as amended, provided by Section 4(2)
thereof for transactions not involving a public offering. The seller of the
assets is a sophisticated business entity, capable of evaluating the risks of an
investment in the Company's stock and bearing the financial risks of the
investment. Such seller had access to all material information regarding the
Company that would have been included in a registration statement covering the
securities if the shares had been offered publicly. No advertising or general
solicitation was involved in the offering of the securities. The shares were
acquired for investment purposes and not with a view to the distribution
thereof. The certificate evidencing the shares contained an appropriate legend
indicating the restrictive nature of the shares.
Item 5. Other Information
As set forth in the Company's Proxy Statement for the 1998 Annual Meeting,
stockholder proposals submitted pursuant to Rule 14a-8 for inclusion in the
Company's proxy statement for the 1999 Annual Meeting of Stockholders must be
received no later than December 18, 1998. Any stockholder who intends to present
a proposal at the 1999 Annual Meeting and has not sought inclusion of the
proposal in the Company's proxy materials pursuant to Rule 14a-8 must provide
notice of such proposal to the Company no later than March 3, 1999.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
27.1 Financial Data Schedule
(b) Reports on Form 8-K:
None
14
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this amendment to the report to be signed on its behalf by the undersigned,
thereunto duly authorized.
NATIONAL ENVIRONMENTAL SERVICE CO.
Date: January 20, 1999 /s/ EDDY L PATTERSON
----------------------------------
EDDY L. PATTERSON, Chairman & CEO
Date: January 20, 1999 /s/ LARRY G. JOHNSON
----------------------------------
LARRY G. JOHNSON, Vice President & Secretary-
Treasurer & Chief Financial
Officer
15
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<PAGE>
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<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 193
<SECURITIES> 0
<RECEIVABLES> 8,064
<ALLOWANCES> 142
<INVENTORY> 1,209
<CURRENT-ASSETS> 9,405
<PP&E> 4,163
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<TOTAL-ASSETS> 11,673
<CURRENT-LIABILITIES> 5,741
<BONDS> 0
0
0
<COMMON> 79
<OTHER-SE> 4,933
<TOTAL-LIABILITY-AND-EQUITY> 11,673
<SALES> 1,425
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<CGS> 889
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