<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Period Ended May 31, 1998 Commission File Number 0-8796
Spectrum Control, Inc.
Exact name of registrant as specified in its charter
Pennsylvania 25-1196447
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
6000 West Ridge Road; Erie, Pennsylvania 16506
(Address) (Zip Code)
Registrant's telephone number, including area code: (814) 835-4000
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 the filing requirements for at least the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date.
Number of Shares Outstanding
Class as of June 15, 1998
Common, no par value 10,945,341
<PAGE>
SPECTRUM CONTROL, INC. AND SUBSIDIARIES
INDEX
PAGE NO.
PART I FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Condensed Balance Sheets --
May 31, 1998 and November 30, 1997 3-4
Consolidated Condensed Statements of Income --
Three Months Ended and Six Months Ended
May 31, 1998 and 1997 5
Consolidated Condensed Statements of Cash Flows --
Three Months Ended and Six Months Ended
May 31, 1998 and 1997 6
Notes to Consolidated Condensed Financial Statements 7-9
Item 2. Management's Discussion and Analyis of
Financial Condition and Results Operations 10-15
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 16
Signature 17
<PAGE>
<TABLE>
SPECTRUM CONTROL, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
DOLLAR AMOUNTS IN THOUSANDS
(UNAUDITED)
<CAPTION>
May 31, 1998 Nov. 30, 1997
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 1,927 $ 196
Accounts receivable, net of
allowances 9,660 9,997
Inventories
Finished goods 2,692 2,159
Work-in-process 5,282 5,364
Raw materials 4,721 4,587
Total inventories 12,695 12,110
Prepaid expenses and other
current assets 732 534
Total current assets 25,014 22,837
PROPERTY, PLANT AND EQUIPMENT,
at cost less accumulated
depreciation of $19,279
in 1998 and $17,357 in 1997 15,605 15,979
OTHER ASSETS
Intangible assets 648 334
Debt issuance costs 160 165
Deferred income taxes 566 566
Deferred charges 199 175
Total other assets 1,573 1,240
TOTAL ASSETS $42,192 $40,056
<FN>
The accompanying notes are an integral part of the financial
statements.
</TABLE>
<PAGE>
<TABLE>
SPECTRUM CONTROL, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
DOLLAR AMOUNTS IN THOUSANDS
(UNAUDITED)
<CAPTION>
May 31, 1998 Nov.30, 1997
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
CURRENT LIABILITIES
Short-term debt $ -- $ 40
Accounts payable 2,941 3,302
Accrued salaries and wages 1,244 1,311
Accrued interest 30 45
Accrued federal and state
income taxes 187 289
Accrued other expenses 406 226
Current portion of long-term debt 743 743
Total current liabilities 5,551 5,956
LONG-TERM DEBT 3,060 3,330
DEFERRED INCOME TAXES 1,731 1,225
STOCKHOLDERS' EQUITY
Common stock, no par value,
authorized 25,000,000 shares,
issued and outstanding 10,945,341
shares in 1998 and 10,838,345
shares in 1997 14,361 13,977
Retained earnings 17,879 15,864
Foreign currency translation
adjustment (390) (296)
Total stockholders' equity 31,850 29,545
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $42,192 $40,056
<FN>
The accompanying notes are an integral part of the financial
statements.
</TABLE>
<PAGE>
<TABLE>
SPECTRUM CONTROL, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
(Dollars in Thousands Except Per Share Data)
Three Months Ended Six Months Ended
May 31 May 31
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Net sales $15,190 $14,376 $29,831 $27,088
Cost of products sold 10,449 9,977 20,671 18,975
Gross margin 4,741 4,399 9,160 8,113
Selling, general and
administrative expense 2,979 2,971 5,884 5,647
Income from operations 1,762 1,428 3,276 2,466
Other income (expense)
Interest expense (58) (125) (111) (255)
Other income and expense,
net 24 -- 34 --
(34) (125) (77) (255)
Income before provision
for income taxes 1,728 1,303 3,199 2,211
Provision for
income taxes 669 364 1,184 618
Net income $ 1,059 $ 939 $ 2,015 $1,593
Earnings per
common share $ 0.10 $ 0.09 $ 0.19 $ 0.15
Earnings per common share-
assuming dilution
$ 0.10 $ 0.09 $ 0.18 $ 0.15
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
<TABLE>
SPECTRUM CONTROL, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
DOLLAR AMOUNTS IN THOUSANDS
(UNAUDITED)
<CAPTION>
Six Months Ended
May 31
1998 1997
<S> <C> <C>
NET CASH PROVIDED BY
OPERATING ACTIVITIES $3,942 $3,463
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of property, plant and
equipment (1,164) (1,309)
Payment for acquired business (1,150) --
Net cash used in investing
activities (2,314) (1,309)
CASH FLOWS FROM FINANCING
ACTIVITIES
Net repayment of short-term
debt (40) (1,867)
Repayment of long-term debt (270) (408)
Net proceeds from issuance
of common stock 384 --
Net cash provided by (used
in) financing activities 74 (2,275)
Effect Of Exchange Rate
Changes On Cash 29 15
Net Increase (Decrease)In Cash
And Cash Equivalents 1,731 (106)
Cash And Cash Equivalents,
Beginning Of Period 196 413
Cash And Cash Equivalents,
End Of Period $1,927 $ 307
Cash Paid During The Period For:
Interest $ 126 $ 246
Income taxes 715 436
<FN>
The accompanying notes are an integral part of the financial
statements.
</TABLE>
<PAGE>
SPECTRUM CONTROL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
MAY 31, 1998
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 notes required by generally accepted
accounting principles for complete financial statements. In the opinion
of management, the accompanying financial statements include all adjustments
which are normal, recurring and necessary to present fairly the results for
the interim periods. Operating results for interim periods are not
necessarily indicative of the results that may be expected for the year.
For further information, refer to the consolidated financial statements and
notes thereto included in the Spectrum Control, Inc. and Subsidiaries annual
report on Form 10-K for the fiscal year ended November 30, 1997.
Note 1 - Principles of Consolidation
The consolidated condensed financial statements include the accounts of
Spectrum Control, Inc. and its Subsidiaries (the Company). To facilitate
timely reporting, the fiscal quarters of a foreign subsidiary are based upon
a fiscal year which ends October 31. All significant intercompany accounts
are eliminated upon consolidation.
Note 2 - Foreign Currency Translation
The assets and liabilities of the foreign subsidiary are translated into
U.S. dollars at current exchange rates. Revenue and expense accounts of
these operations are translated at average exchange rates prevailing during
the period. These translation adjustments are accumulated in a separate
component of stockholders' equity. Foreign currency transaction gains and
losses are included in determining net income for the period in which the
exchange rate changes.
Note 3 - Earnings Per Common Share
In the first quarter of fiscal 1998, the Company adopted Statement of
Financial Accounting Standards No. 128, "Earnings Per Share"
("SFAS No. 128"). SFAS No. 128 requires, among other things, dual
presentation of basic and diluted earnings per share on the face of the
income statement. Under the new standard, basic earnings per share is
computed using only the weighted average number of common shares outstanding
during the period, while diluted earnings per share is computed assuming
the conversion of all dilutive common stock equivalents, such as stock
options.
<PAGE>
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Continued)
In accordance with SFAS No. 128, prior period per share amounts have been
revised to reflect the new computation and presentation. The Company's
basic and diluted earnings per share amounts are the same for the prior
period presented in the accompanying financial statements. Accordingly,
there has been no change or restatement in any historical earnings per
share amounts presented herein.
<TABLE>
The following table sets forth the computation of basic and diluted earnings
per common share:
<CAPTION>
Three Months Ended Six Months Ended
May 31 May 31
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Numerator for basic and
diluted earnings per
common share:
Net income $ 1,059,000 $ 939,000 $ 2,015,000 $ 1,593,000
Denominator for basic
earnings per common
share:
Weighted average
shares outstanding 10,908,122 10,774,233 10,877,533 10,774,233
Denominator for diluted
earnings per common
share:
Weighted average
shares outstanding 10,908,122 10,774,233 10,877,533 10,774,233
Effect of dilutive
stock options 153,341 59,501 146,962 57,868
11,061,463 10,833,734 11,024,495 10,832,101
Earnings per common
share $ 0 .10 $ 0 .09 $ 0 .19 $ 0 .15
Earnings per common
share-assuming dilution $ 0 .10 $ 0 .09 $ 0 .18 $ 0 .15
</TABLE>
<PAGE>
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Continued)
Note 4 - Acquisition
On April 22, 1998, the Company acquired substantially all of the assets of
Republic Electronics Corp., a manufacturer of subminiature ceramic capacitors
used in telecommunications and microwave (high frequency) applications. The
assets acquired included inventories, equipment, tooling, manufacturing
documentation, engineering drawings, customer information, proprietary
technology and know-how.
The aggregate purchase price of the acquired assets amounted to approximately
$1,285,000, including related acquisition costs and estimated future
contingent payments of $120,000. The actual amount of the contingent
payments will be determined based upon the sales of the acquired product
lines during the two years subsequent to the acquisition date. The aggregate
purchase price, which was funded through available cash reserves, has been
allocated to the acquired assets based upon their respective fair market
values. As a result, intangible assets of approximately $385,000 were
recorded and are being amortized ratably over a period of five years.
The acquisition was accounted for as a purchase and, accordingly, the results
of operations of the acquired business have been included in the accompanying
financial statements since the date of the acquisition. The results of
operations of the acquired business from April 22, 1998 to May 31, 1998,
however, are not material to the Company's consolidated financial statements.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following discussion and analysis may be understood more fully by
reference to the consolidated financial statements, notes to the consolidated
financial statements, and management's discussion and analysis contained
in the Spectrum Control, Inc. and Subsidiaries annual report on Form 10-K
for the fiscal year ended November 30, 1997.
General
Spectrum Control, Inc. and its Subsidiaries (the "Company") design,
manufacture and market a broad line of control products and systems. The
Company was founded in 1968 as a solutions-oriented company, designing and
manufacturing products to suppress or eliminate electromagnetic interference
("EMI"). The Company has adapted its core EMI filter technology into a
complete line of interconnect filter products (discrete filters, filtered
arrays, and filtered connectors). In recent years, the Company has expanded
its focus by developing new lines of power products (commercial custom
assemblies, military/aerospace multisection assemblies, power entry modules,
and power line filters), microwave products (coaxial ceramic bandpass
filters, duplexers, and dielectric resonators), and specialty ceramic
products. The Company's products are used in virtually all industries
worldwide, including telecommunications, aerospace, military, medical,
computer, and industrial controls.
Forward-Looking Information
Management's Discussion and Analysis of Financial Condition and Results of
Operations includes certain forward-looking statements which reflect
management's current views with respect to future operating performance,
ongoing cash requirements, and the Year 2000 Issue. The words "believe",
"expect", "anticipate" and similar expressions identify forward-looking
statements. These forward-looking statements are subject to certain risks
and uncertainties which could cause actual results to differ materially
from historical results or those anticipated. Factors that could cause or
contribute to such differences include those discussed in "Risk Factors That
May Affect Future Results", as well as those discussed elsewhere herein.
Readers are cautioned not to place undue reliance on these forward-looking
statements.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (CONTINUED)
Results of Operations
<TABLE>
The following table sets forth certain financial data, as a percentage of
net sales, for the three months ended and six months ended May 31, 1998
and 1997:
<CAPTION>
Three Months Ended Six Months Ended
May 31 May 31
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of products sold 68.8 69.4 69.3 70.0
Gross margin 31.2 30.6 30.7 30.0
Selling, general and
administrative expense 19.6 20.7 19.7 20.9
Income from operations 11.6 9.9 11.0 9.1
Other income (expense)
Interest expense (0.4) (0.9) (0.4) (0.9)
Other income and expense, net 0.2 - 0.1 -
Income before provision
for income taxes 11.4 9.0 10.7 8.2
Provision for income taxes 4.4 2.5 4.0 2.3
Net income 7.0% 6.5% 6.7% 5.9%
</TABLE>
Second Quarter 1998 Versus Second Quarter 1997
Net Sales
Net sales increased 5.7% during the period, with consolidated net sales of
$15.2 million in the second quarter of 1998 and $14.4 million in the
comparable quarter of 1997. The increase in sales primarily reflects
additional shipment volume of the Company's commercial custom assemblies
which consist of telecommunication racks, power supplies, industrial
controls, and other value-added assemblies.
Gross Margin
Gross margin was $4.7 million or 31.2% of sales in the second quarter of
1998, compared to $4.4 million or 30.6% of sales in the second quarter of
1997. The increase in gross margin percentage principally reflects changes
in sales mix among the Company's four major product families: interconnect
filter products, power products, microwave products, and specialty ceramic
components.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (CONTINUED)
Selling, General and Administrative Expense
Selling, general and administrative expense remained constant throughout
the period. In the second quarter of 1998, selling expense amounted to
$1.7 million or 11.1% of sales, compared to $1.7 million or 11.4% of sales
in the same quarter of 1997. General and administrative expense was
approximately $1.3 million in 1998 and 1997.
Other Income and Expense
Interest expense decreased by $67,000 during the period, from $125,000 in
1997 to $58,000 in 1998. The decrease in interest expense primarily
reflects reduced bank indebtedness. Average interest rates remained stable
throughout the period.
Six Months 1998 Versus Six Months 1997
Net Sales
For the first half of fiscal 1998 net sales increased $2.7 million or 10.1%,
with net sales of $29.8 million in 1998 and $27.1 million in 1997. The
increase in sales principally reflects additional shipment volume for the
Company's discrete filter products, filtered connectors, and commercial
custom assemblies. Customer orders received during the first six months
of 1998 amounted to $31.1 million, an increase of 4.0% from the same period
last year.
Gross Margin
For the first six months of 1998, gross margin was $9.2 million or 30.7%
of sales, compared to $8.1 million or 30.0% of sales for the first half of
1997. The increase in gross margin primarily reflects changes in sales
mix and economies of scale realized with additional shipment volume.
Selling, General and Administrative Expense
As a result of greater sales volume, selling expense increased during the
period. During the first half of 1998, selling expense amounted to $3.3
million or 11.0% of sales, compared to $3.1 million or 11.5% of sales for
the same period last year. General and administrative expense remained
relatively stable at $2.6 million in 1998 and $2.5 million in 1997.
Other Income and Expense
With the Company's continued debt reduction, interest expense decreased
by $144,000 during the period. Average interest rates were stable
throughout the period. During the first six months of fiscal 1998, the
Company recognized $34,000 of other income from certain short-term
investments and patent licensing fees.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (CONTINUED)
Income Taxes
The Company's effective income tax rate was 37.0% in 1998 and 28.0% in 1997,
compared to an applicable statutory income tax rate of approximately 40.0%.
Differences in the effective tax rate and statutory tax rate primarily
reflect decreases in the deferred tax asset valuation allowance relating
to certain net operating loss carryforwards.
Risk Factors That May Affect Future Results
The Company's results of operations may be affected in the future by a
variety of factors including: competitive pricing pressures, new product
offerings by the Company and it's competitors, new technologies, product
cost changes, changes in the overall economic climate, availability of raw
materials, and product mix. In 1998, management expects approximately
50.0% of the Company's sales will be to customers in the telecommunication
industry. Accordingly, any significant change in the telecommunication
industry's activity level would have a direct impact on the Company's
performance.
Liquidity, Capital Resources and Financial Condition
The Company has a $6.0 million line of credit with PNC Bank of Erie,
Pennsylvania (the "Bank"). The revolving credit line is collateralized
by substantially all of the Company's tangible and intangible property,
with interest rates on borrowings at or below the Bank's prevailing prime
rate. At May 31, 1998, there were no borrowings outstanding under this
financing arrangement. The current line of credit agreement expires
April 30, 2000.
The Company's wholly-owned foreign subsidiary maintains unsecured Deutsche
Mark lines of credit with several German financial institutions aggregating
$1.7 million (3.0 million DM). At May 31, 1998, there were no outstanding
borrowings under these lines of credit. Future borrowings, if any, under
the lines of credit will bear interest at rates below the prevailing prime
rate and will be payable upon demand.
The Company's liquidity continued to improve during the period. At May 31,
1998, the Company had net working capital of $19.5 million, compared to
$16.9 million at November 30, 1997. The Company's current ratio also
improved during the first six months of fiscal 1998, with current assets
at 4.51 times current liabilities at May 31, 1998, compared to 3.83 at
November 30, 1997.
During the first half of 1998, the Company's cash expenditures for property,
plant and equipment amounted to $1.2 million. These capital expenditures
primarily related to manufacturing equipment for the Company's new
dielectric resonators and bandpass filters product offerings and facility
expansion at the Company's Control Products Division. During the first
six months of 1998, the Company also repaid $310,000 of bank indebtedness.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (CONTINUED)
Current financial resources, including working capital and existing lines
of credit, and anticipated funds from operations are expected to be
sufficient to meet cash requirements throughout 1998, including scheduled
long-term debt repayment and planned capital expenditures. There can be no
assurance, however, that unplanned capital replacement or other future
events will not require the Company to seek additional debt or equity
financing and , if so required, that it will be available on terms
acceptable to the Company.
In April, 1998, the Company acquired substantially all of the assets of
Republic Electronics Corp., a manufacturer of subminiature ceramic
capacitors used in telecommunications and microwave (high frequency)
applications. The assets acquired included inventories, equipment,
tooling, manufacturing documentation, engineering drawings, customer
information, proprietary technology and know-how. The cash purchase
price of approximately $1.2 million was paid from available cash resources.
The Company's operating cash flow was strong during the period, with net
cash provided by operations of $3.9 million in 1998 and $3.5 million in
1997. In 1997, the Company substantially completed its planned reduction
of short-term and long-term bank indebtedness. As a result, the Company's
cash position improved significantly during the first six months of 1998.
At May 31, 1998, the Company held $1.9 million of cash and cash equivalents,
compared to $196,000 at November 30, 1997.
Impact of Recently Issued Accounting Standards
In June 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 130, "Reporting and Disclosures about
Comprehensive Income" and No. 131, "Disclosures about Segments of an
Enterprise", which are effective for fiscal years beginning after
December 15, 1997. The Company is currently evaluating the effects of
these new standards.
Impact of Year 2000 Issue
The Year 2000 Issue is the result of computer programs being written using
two digits rather than four to define the applicable year. As a result,
any of the Company's computer programs that have time-sensitive software
may recognize a date using "00" as the year 1900 rather than the year 2000.
This could result in a system failure or miscalculations causing disruptions
of operations, including among other things, a temporary inability to
process transactions, prepare invoices, or engage in similar normal business
activities.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (CONTINUED)
The Company has completed an assessment and determined that it will have
to modify or replace portions of its software so that its computer systems
will function properly with respect to dates in the year 2000 and
thereafter. In addition, the Company has initiated formal communications
with its significant suppliers and customers to determine the extent to
which the Company's interface systems are vulnerable to those third parties'
failure to remediate their own Year 2000 Issues. Based upon this
communication and assessment, management anticipates that its total
Year 2000 project costs will not be material.
The total project is expected to be completed on or before December 31, 1998.
The Company believes that with modifications to existing software and
conversions to new software, the Year 2000 Issues will not pose significant
operational problems for its computer systems. However, if such
modifications and conversions are not made, or are not completed timely, the
Year 2000 Issue could have a material impact on the operations of the
Company.
The costs of the project and the date on which the Company believes it will
complete the Year 2000 modifications are based on management's best
estimates, which were derived utilizing numerous assumptions of future
events, including the continued availability of certain resources and other
factors. However, there can be no guarantee that these estimates will be
achieved and actual results could differ materially from those anticipated.
Specific factors that might cause such material differences include, but
are not limited to, the availability and cost of personnel trained in this
area, the ability to locate and correct all relevant computer codes, and
similar uncertainties.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) None
(b) No reports on Form 8-K were filed during the quarter for which
this report is filed.
<PAGE>
SIGNATURE
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.
SPECTRUM CONTROL, INC.
(Registrant)
Date: June 26, 1998 By: /s/ John P. Freeman
John P. Freeman, Vice President
and Chief Financial Officer
(Principal Accounting and
Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE SPECTRUM CONTROL, INC. CONSOLIDATED BALANCE SHEET AT MAY 31, 1998
AND CONSOLIDATED STATEMENT OF INCOME FOR THE SIX MONTHS ENDED MAY 31,
1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO ITS FORM 10-Q FOR
THE QUARTER ENDED MAY 31, 1998
</LEGEND>
<CIK> 0000092769
<NAME> SPECTRUM CONTROL, INC.
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1998
<PERIOD-END> MAY-31-1998
<CASH> 1927
<SECURITIES> 0
<RECEIVABLES> 10096
<ALLOWANCES> 436
<INVENTORY> 12695
<CURRENT-ASSETS> 25014
<PP&E> 34884
<DEPRECIATION> 19279
<TOTAL-ASSETS> 42192
<CURRENT-LIABILITIES> 5551
<BONDS> 3060
0
0
<COMMON> 14361
<OTHER-SE> 17489
<TOTAL-LIABILITY-AND-EQUITY> 42192
<SALES> 29831
<TOTAL-REVENUES> 29831
<CGS> 20671
<TOTAL-COSTS> 20671
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 111
<INCOME-PRETAX> 3199
<INCOME-TAX> 1184
<INCOME-CONTINUING> 2015
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2015
<EPS-PRIMARY> 0.19
<EPS-DILUTED> 0.18
</TABLE>
