<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of
1934
For the quarterly period ended February 28, 1999
-------------------------------------------------
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the transition period from to
----------------------- ----------------------
Commission File Number: 1-13484
--------------------------------------------------------
COHESANT TECHNOLOGIES INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 34-1775913
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
5845 West 82nd Street, Suite 102, Indianapolis, Indiana 46278
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code 317-875-5592
---------------------------------
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
YES X NO
--- ---
As of March 30, 1999, the Company has 2,370,133 shares of Common Stock, $.001
par value, outstanding.
Transitional Small Business Disclosure Format (check one)
YES NO X
--- ---
<PAGE> 2
<TABLE>
<CAPTION>
COHESANT TECHNOLOGIES INC.
INDEX
<S> <C> <C> <C>
PART I. FINANCIAL INFORMATION PAGE
------------------------------ ----
Cohesant Technologies Inc. Condensed
Balance Sheet as of February 28, 1999....................................1
Cohesant Technologies Inc. Condensed
Statements of Operations for the Three Months Ended
February 28, 1999 and February 28, 1998..................................2
Cohesant Technologies Inc. Condensed
Statements of Cash Flows for the Three Months Ended
February 28, 1999 and February 28, 1998..................................3
Notes to Condensed Financial Statements...........................................4
Management's Discussion and Analysis of Financial Condition
and Results of Operations................................................8
Part II.
Other Information..............................................................11
Signatures.......................................................................13
</TABLE>
<PAGE> 3
PART I. FINANCIAL INFORMATION
-----------------------------
COHESANT TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
February 28, 1999
-------------------------
ASSETS:
<S> <C>
Cash and cash equivalents $ 64,284
Accounts receivable, net of allowance
for doubtful accounts of $85,875 2,498,642
Inventory 3,507,596
Prepaid expenses 141,237
Deferred tax asset 165,600
-------------------------
Total Current Assets 6,377,359
Restricted, temporary investment 217,831
Property, plant and equipment, net 632,883
Investment and advances in unconsolidated affiliate 88,451
Patents and other intangibles, net 118,318
Goodwill, net 645,921
Other noncurrent assets 6,658
Noncurrent assets - discontinued operations 127,386
-------------------------
Total Assets $ 8,214,807
=========================
LIABILITIES AND SHAREHOLDERS' EQUITY:
Revolving line of credit $ 1,498,472
Current maturities of other noncurrent liabilities 163,335
Accounts payable 1,095,122
Accrued wages and benefits 86,656
Other current liabilities 438,378
-------------------------
Total Current Liabilities 3,281,963
Other noncurrent liabilities 116,285
-------------------------
Total Liabilities 3,398,248
Commitments and contingencies (Note 7)
Shareholders' Equity:
Common stock ($.001 par value, 10,000,000
shares authorized, 2,688,343 issued) 2,688
Additional paid-in capital 6,450,360
Retained deficit (1,065,308)
Treasury stock at cost, (318,210 shares) (571,181)
-------------------------
Total Shareholders' Equity 4,816,559
-------------------------
Total Liabilities and Shareholders' Equity $ 8,214,807
=========================
</TABLE>
See Notes to Condensed Financial Statements.
1
<PAGE> 4
COHESANT TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
For the Three Months Ended
February 28, 1999 February 28, 1998
----------------------- ----------------------
<S> <C> <C>
NET SALES $ 3,095,407 $ 2,603,617
COST OF SALES 1,760,530 1,455,341
----------------------- ----------------------
Gross profit 1,334,877 1,148,276
RESEARCH, DEVELOPMENT AND
ENGINEERING EXPENSES 234,003 216,005
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 903,375 767,839
----------------------- ----------------------
TOTAL OPERATING EXPENSES 1,137,378 983,844
Income from operations 197,499 164,432
OTHER INCOME (EXPENSE):
Interest expense (24,393) (30,470)
Interest income 2,214 2,490
Equity in income of
unconsolidated affiliate 11,605 12,277
Other income, net 37,408 20,977
----------------------- ----------------------
INCOME BEFORE INCOME TAXES 224,333 169,706
PROVISION FOR INCOME TAXES (Note 5) (83,003) -
----------------------- ----------------------
NET INCOME 141,330 169,706
======================= ======================
BASIC AND DILUTED EARNINGS PER
COMMON SHARE (Note 3) $ 0.06 $ 0.06
======================= ======================
AVERAGE SHARES OF COMMON STOCK
OUTSTANDING 2,393,320 2,688,343
======================= ======================
</TABLE>
See Notes to Condensed Financial Statements.
2
<PAGE> 5
COHESANT TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
For the Three Months Ended
February 28, 1999 February 28, 1998
--------------------------- -----------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $ 141,330 $ 169,706
Adjustments to reconcile net income to net cash
used in continuing operations -
Depreciation and amortization 65,626 58,680
Provision for doubtful accounts 505 6,000
Equity in income of unconsolidated subsidiary (11,605) (12,277)
Net change in current assets and
current liabilities-
Accounts and notes receivable (551,521) (430,391)
Inventories (97,306) 46,864
Prepaid expenses 11,134 (64,996)
Accounts payable 37,369 (622,221)
Other current liabilities (64,496) (150,981)
Other noncurrent assets 402 336
Other noncurrent liabilities (35,450) 202,750
--------------------------- -----------------------
Net cash used in continuing operations (504,012) (796,530)
Change in current assets of discontinued
operations - 1,288,430
--------------------------- -----------------------
Net cash provided by (used in) operating (504,012) 491,900
activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Property and equipment additions (66,369) (39,713)
Change in noncurrent assets of discontinued
operations (56,149) 50,000
Advances to unconsolidated affiliate 6,274 6,541
--------------------------- -----------------------
Net cash provided by (used in) investing activities (116,244) 16,828
--------------------------- -----------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings (payments) under revolving
line of credit 630,000 (550,000)
Proceeds from sale of treasury stock 101,351 -
Purchase of treasury stock (166,778) -
--------------------------- -----------------------
Net cash provided by (used in) financing activities 564,573 (550,000)
--------------------------- -----------------------
NET DECREASE IN CASH
AND CASH EQUIVALENTS (55,683) (41,272)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 119,967 59,863
--------------------------- -----------------------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 64,284 $ 18,591
========================== =======================
</TABLE>
See Notes to Condensed Financial Statements.
3
<PAGE> 6
COHESANT TECHNOLOGIES INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - BACKGROUND
Cohesant Technologies Inc. ("Company") designs, develops and manufactures plural
component dispensing systems, specialized spray finishing and coating
application equipment and specialty two component epoxy coating and grout
products through two subsidiaries--Glas-Craft, Inc. ("GCI") and Raven Lining
Systems, Inc. ("Raven").
NOTE 2 - BASIS OF PRESENTATION
The interim financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission for certain small business issuers. 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 such rules and regulations. However, in the opinion of
management of the Company, the interim financial statements include all
adjustments, which consist only of normal recurring accruals, necessary to
present fairly the financial information for such periods.
These interim financial statements should be read in conjunction with the
financial statements and the notes thereto included in the Company's November
30, 1998 Annual Report to Shareholders on Form 10-KSB.
The accompanying condensed consolidated financial statements include the
accounts of the Company and its direct wholly owned subsidiaries. The Company's
noncontrolling investment in an affiliate is accounted for under the equity
method. All significant intercompany amounts have been eliminated.
NOTE 3 - EARNINGS PER SHARE
The Company computes earnings per share in accordance with Statement of
Financial Accounting Standards No. 128, "Earnings Per Share". This standard
requires the presentation of two amounts, basic and diluted earnings per share.
Financial instruments considered in the computation of diluted earnings per
share included only the Company's outstanding stock options as the outstanding
warrants are antidilutive for each period presented.
4
<PAGE> 7
COHESANT TECHNOLOGIES INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 4 - REVOLVING LINE OF CREDIT FACILITY
On May 15, 1998, the Company entered into a revolving line of credit agreement
with a bank. This $3,500,000 credit facility is subject to a borrowing base and
accrues interest at the bank's prime lending rate (7.75% as of February 28,
1999). The credit facility is fully secured by a lien on all the assets of the
Company and its operating subsidiaries. The credit facility expires on May 1,
1999. The Company has received a commitment from the bank to extend the facility
for another year.
This agreement requires that the Company meet certain covenants including
financial ratios. As of February 28, 1999, the Company was in compliance with
the financial covenants. As of February 28, 1999, the outstanding balance under
this agreement was $1,498,472.
NOTE 5 - INCOME TAXES
The Company has provided for income taxes at its estimated effective tax rate of
37% in the 1999 QUARTER. The Company did not record a provision for income taxes
for the 1998 quarter due to the utilization of the Company's net operating loss
carryforwards for which a full valuation allowance had been established in prior
years due to the risk that certain of these net operating loss carryforwards may
expire unused.
NOTE 6 - DISCONTINUED OPERATIONS
On November 30, 1997, the Company's Board of Directors signed an agreement to
sell certain assets of American Chemical Company's ("ACC") adhesive, private
label and toll manufacturing business and decided to account for such business
as a discontinued operation for all periods presented in accordance with
Accounting Principles Board No. 30, "Reporting the Results of Operations -
Reporting the Effects of a Disposal of a Segment of a Business, and
Extraordinary, Unusual and Infrequently Occurring Events and Transactions."
On January 14, 1998, the Company, ACC and a third party completed the sale of
certain assets (inventory and certain intangibles) of the discontinued business
and executed a three-year non-compete agreement for an aggregate contract amount
of $1,350,000. The $350,000 payment received in exchange for the non-compete
agreement is being amortized to income over the three-year contract period. The
unamortized portion of the
5
<PAGE> 8
COHESANT TECHNOLOGIES INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
non-compete agreement of $116,667 and $97,225 are included in the accompanying
Condensed Consolidated Balance Sheet as an Other Current and Noncurrent
Liability, respectively.
As of February 28, 1999, the remaining assets of the discontinued segment are
reflected as assets held for sale at net realizable value less costs to sell,
which includes an estimate for environmental remediation costs, in the
accompanying Consolidated Balance Sheet as Noncurrent Assets - Discontinued
Operations. Disposal of these assets has been delayed pending the outcome of
certain environmental remediation efforts at the site (Note 7). Management will
evaluate the net realizable value of these assets as additional information
regarding the environmental remediation alternatives and the ultimate
disposition of the assets becomes available. The operating activity of the
discontinued segment ceased during the second quarter of 1998. Net sales of the
discontinued segment were $0 and $602,717 in the first quarter of 1999 and 1998,
respectively. Total operating losses from the discontinued segment were $119,545
and $103,278 in the first quarter of 1999 and 1998, respectively. Operating
results for this business are consistent with the Company's prior estimate of
these amounts.
NOTE 7 - COMMITMENTS AND CONTINGENCIES
The Company is proceeding to investigate and remediate the environmental
condition of its St. Louis property in order that the property can be marketed
and sold. The work includes soil remediation required by the Missouri Department
of Natural Resources in connection with the closure of underground storage
tanks. The Missouri Department of Natural Resources has also requested that an
additional soil and groundwater contamination investigation plan be submitted
for the site to fully define the extent of groundwater contamination. The
Company accrues costs for an estimated environmental liability when management
becomes aware that a liability is probable and is able to reasonably estimate
the Company's cost. Generally, that occurs no later than when feasibility
studies and related cost assessments of remedial techniques are completed, and
the extent to which other potentially responsible parties (if any), can be
expected to contribute is determined. Outside consultants are being used to
perform site investigation work and to advise management on the findings and
remediation alternatives. In management's opinion, the liabilities for the
environmental matter mentioned above which are probable and reasonably estimable
are accrued. As of February 28, 1999, the environmental reserve was
approximately $193,000. The reserve is reflected as an adjustment to the
carrying value of the property held for sale. The actual costs to be incurred by
the Company will be dependent on final delineation of contamination, final
determination of remedial action required, negotiations with federal
6
<PAGE> 9
COHESANT TECHNOLOGIES INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
and state agencies with respect to cleanup levels, changes in regulatory
requirements, innovations in investigatory and remedial technologies and
effectiveness of remedial technologies employed.
A former employee of ACC has filed a workers' compensation claim related to
injuries incurred in connection with the August 1996 fire at the St. Louis
facility. In the claim, the employee is requesting payment of an additional 15%
award of compensation, approximately, $150,000, claiming ACC violated a Missouri
safety statute in connection with the occurrence of his injury. This matter has
been settled by the insurance company without any additional payments by the
Company.
The Company is a party to other legal and environmental matters which have
arisen in the ordinary course of business. Management believes the ultimate
disposition of these matters will not have a material adverse effect on the
Company's financial position or results of operations.
NOTE 8 - COMMON STOCK
In October 1998, the Company announced a 400,000 share repurchase program.
Through February 28, 1999, the Company has repurchased 380,100 shares for
approximately $673,000. In December 1998 the Company sold 61,890 shares out of
treasury to the Company sponsored 401(k) plan for approximately $102,000.
7
<PAGE> 10
COHESANT TECHNOLOGIES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
FIRST QUARTER ENDED FEBRUARY 28, 1999
RESULTS OF OPERATIONS
- ---------------------
For the three months ended February 28, 1999, net sales increased $491,790, or
18.9%. Of this amount, $778,347 represented increased net sales of equipment and
parts. This increase was primarily attributable to sales of polyurethane
equipment. Additionally, sales to OEM accounts contributed to this increase.
Domestic and foreign equipment and parts net sales increased 51% and 28%,
respectively, over the 1998 period. The increase in foreign sales was led by an
increase in sales to Europe and the Asian/Pacific region, which was somewhat
offset by a sharp decrease in sales to South America. Specialty grout and epoxy
products net sales decreased $286,557, or 40.2%. This decrease was a result of
completion of certain large projects in 1998 and delays by contractors on
current projects for which Raven products have been specified.
The Company's gross margin increased to $1,334,877, or 43.1% of net sales, in
the current quarter from $1,148,276, or 44.1% of net sales, in the 1998 period.
The decline in gross profit percentage was attributable to changes in product
mix consisting of a decrease in sales of the generally higher margin specialty
grout and epoxy products and increased sales of the generally lower margin OEM
equipment.
Operating expenses are up $153,534, or 15.6% in the first quarter of 1999 over
1998 period. This increase was principally due to additional marketing and
administrative expenses at GCI. The increased marketing expenses are
attributable to the increased sales volume. The increased administrative
expenses is reflective of a $45,000 favorable adjustment in 1998 for previously
accrued professional services and no such adjustment in the 1999 period.
During the first quarter of 1999, other income, net of other expenses, increased
from the same period in the prior year by $21,560, due principally to income
derived from amortization of the noncompete agreement arising from the sale of
ACC's adhesive, private label and toll manufacturing business ("the discontinued
operation"), income from finance charges attributable to outstanding trade
receivables and decreased interest expense.
DISCONTINUED OPERATIONS
- -----------------------
In January 1998, the Company and its American Chemical Company subsidiary
("ACC") completed the sale of certain assets (inventory and certain intangibles)
of ACC's adhesive, private label and toll manufacturing business (the
"discontinued operation") for
8
<PAGE> 11
COHESANT TECHNOLOGIES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
$1,350,000. The purchase price includes $350,000 allocated to a three-year
non-compete agreement, which is being allocated to income over a three-year
term. The unamortized portion of the non-compete agreement of $116,667 and
$97,225 are included in the accompanying Condensed Consolidated Balance Sheet as
an Other Current and Noncurrent Liability, respectively. The Company elected to
account for ACC's business as a discontinued operation, in accordance with APB
No. 30, as of November 30, 1997 when the definitive sale agreement was executed.
As of February 28, 1999, the remaining assets of the discontinued segment are
reflected as assets held for sale at net realizable value less costs to sell,
which includes an estimate for environmental remediation costs, in the
accompanying Consolidated Balance Sheet as Noncurrent Assets - Discontinued
Operations. Disposal of these assets has been delayed pending the outcome of
certain environmental remediation efforts at the site (Note 7). Management will
evaluate the net realizable value of these assets as additional information
regarding the environmental remediation alternatives and the ultimate
disposition of the assets becomes available. The operating activity of the
discontinued segment ceased during the second quarter of 1998. Net sales of the
discontinued segment were $0 and $602,717 in the first quarter of 1999 and 1998,
respectively. Total operating losses from the discontinued segment were $119,545
and $103,278 in the first quarter of 1999 and 1998, respectively. Operating
results for this business are consistent with the Company's prior estimate of
these amounts.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
On May 15, 1998, the Company entered into a revolving line of credit agreement
with a bank. This $3,500,000 credit facility is subject to a borrowing base and
accrues interest at the bank's prime lending rate (7.75% as of February 28,
1999). The credit facility is fully secured by a lien on all the assets of the
Company and its operating subsidiaries. The credit facility expires on May 1,
1999. However, the Company has received a commitment letter from the bank to
extend the facility for another year and documentation therefor is being
prepared. As of February 28, 1999, the outstanding balance under this agreement
was $1,498,472 an increase of $630,000 over November 30, 1998. This increase was
due to higher trade receivable balances and the purchase of treasury shares.
In October 1998, the Company announced a 400,000 share repurchase program.
Through February 28, 1999, the Company has repurchased 380,100 shares for
approximately
9
<PAGE> 12
COHESANT TECHNOLOGIES INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
In October 1998, the Company announced a 400,000 share repurchase program.
Through February 28, 1999, the Company has repurchased 380,100 shares for
approximately $673,000. In December 1998 the Company sold 61,890 shares out of
treasury to the Company sponsored 401(k) plan for approximately $102,000.
During the quarter ended February 28, 1999, the Company's working capital
remained substantially unchanged.
YEAR 2000
- ---------
The "Year 2000 Issue" refers to the inability of computers and applications to
correctly interpret and process Year 2000 dated transactions. The software
problem results from a memory-saving practice of using two digits instead of
four to denote years in a program. Computer systems that are not Year 2000
compliant may not be able to be relied upon to process data accurately for
transactions dated after the year 1999.
The Company has developed a plan to address possible exposures related to the
impact of the Year 2000 Issue. Possible exposures include the Company's ability
to procure and manage inventory, ship product and bill and collect from
customers. The Company is in the process of testing and confirming the readiness
of its mainframe computer system which has recently been upgraded. Also, the
Company has identified other software and systems with potential Year 2000
problems. These costs incurred to date and estimated future costs will not in
the aggregate be material. The Company anticipates completing its review and
testing of its Year 2000 compliance program by the end of the third quarter.
In addition, the Company has identified and is assessing the readiness of third
parties, primary suppliers and customers. There is no guarantee that the systems
of these third parties will be timely converted, however, the Company plans to
devote the necessary resources to resolve any potentially significant Year 2000
issues facing it, whether from within its operations or as a result of its
interaction with these third parties, in a timely manner. The Company has begun
the process of developing contingency plans that will address critical
activities as determined by management in the event that its Year 2000 compliant
program is not completed in a timely manner or events prove it to be deficient.
10
<PAGE> 13
COHESANT TECHNOLOGIES INC.
FORWARD LOOKING STATEMENTS
- --------------------------
Certain statements contained in this report that are not historical facts are
forward looking statements that are subject to certain risks and uncertainties
that could cause actual results to differ materially from those set forth in the
forward looking statement. These risks and uncertainties include, but are not
limited to, a slow-down in domestic and foreign markets for plural component
dispensing systems and a reduction in growth of markets for the Company's epoxy
coating systems.
PART II. OTHER INFORMATION
- --------------------------
ITEM 1. Legal Proceedings
There are no pending legal proceedings to which the Company is subject, nor to
the knowledge of the Company are any legal proceedings threatened, other than
for ordinary, routine proceedings incidental to its business, except as follows:
The Company is proceeding to investigate and remediate the environmental
condition of its St. Louis property in order that the property can be marketed
and sold. The work includes soil remediation required by the Missouri Department
of Natural Resources in connection with the closure of underground storage
tanks. The Missouri Department of Natural Resources has also requested that an
additional soil and groundwater contamination investigation plan be submitted
for the site to fully define the extent of groundwater contamination. The
Company accrues costs for an estimated environmental liability when management
becomes aware that a liability is probable and is able to reasonably estimate
the Company's cost. Generally, that occurs no later than when feasibility
studies and related cost assessments of remedial techniques are completed, and
the extent to which other potentially responsible parties (if any), can be
expected to contribute is determined. Outside consultants are being used to
perform site investigation work and to advise management on the findings and
remediation alternatives. In management's opinion, the liabilities for the
environmental matter mentioned above which are probable and reasonably estimable
are accrued. As of February 28, 1999, the environmental reserve was
approximately $193,000. The reserve is reflected as an adjustment to the
carrying value of the property held for sale. The actual costs to be incurred by
the Company will be dependent on final delineation of contamination, final
determination of remedial action required, negotiations with federal and state
agencies with respect to cleanup levels, changes in regulatory requirements,
innovations in investigatory and remedial technologies and effectiveness of
remedial technologies employed.
11
<PAGE> 14
COHESANT TECHNOLOGIES INC.
ITEM 6. Exhibits and reports on Form 8-K
(a) Exhibits 27 - Financial Data Schedule
(b) Reports on Form 8-K - none
12
<PAGE> 15
SIGNATURE
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Dated: April 9, 1999
COHESANT TECHNOLOGIES INC.
BY: /s/ ROBERT W. PAWLAK
------------------------------------
Robert W. Pawlak
Chief Financial Officer
13
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000928420
<NAME> 0
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> NOV-30-1999
<PERIOD-START> DEC-01-1998
<PERIOD-END> FEB-28-1999
<CASH> 64,284
<SECURITIES> 0
<RECEIVABLES> 2,584,517
<ALLOWANCES> 85,875
<INVENTORY> 3,507,596
<CURRENT-ASSETS> 6,377,359
<PP&E> 1,268,618
<DEPRECIATION> 635,735
<TOTAL-ASSETS> 8,214,807
<CURRENT-LIABILITIES> 3,281,963
<BONDS> 0
0
0
<COMMON> 2,688,343
<OTHER-SE> 4,813,871
<TOTAL-LIABILITY-AND-EQUITY> 8,214,807
<SALES> 3,095,407
<TOTAL-REVENUES> 3,095,407
<CGS> 1,760,530
<TOTAL-COSTS> 1,760,530
<OTHER-EXPENSES> 234,003
<LOSS-PROVISION> 505
<INTEREST-EXPENSE> 24,393
<INCOME-PRETAX> 224,333
<INCOME-TAX> 83,003
<INCOME-CONTINUING> 141,330
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 141,330
<EPS-PRIMARY> 0.06
<EPS-DILUTED> 0.06
</TABLE>
