===============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
__X__ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 30, 1996
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: 0-25590
DATASTREAM SYSTEMS, INC.
Incorporated pursuant to the laws of the State of Delaware
-------------------------------------------
Internal Revenue Service -- Employer Identification No. 57-0813674
50 DATASTREAM PLAZA, GREENVILLE, SC 29605
(864) 422-5001
-------------------------------------------
NOT APPLICABLE
(Former Name, Former Address, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes _X_ No ___
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding
of the issuer's common stock as of the latest practicable date: JUNE 30, 1996
8,515,582 shares, $0.01 par value.
<PAGE>
Datastream Systems, Inc.
FORM 10-Q
Quarter ended June 30, 1996
Index
Page No.
Part I. Financial Information
Item 1. Financial Statements (unaudited)
Balance Sheet- June 30, 1996
Assets 3
Liabilities and Owners Equity 4
Income Statement-
for the Three Months ended June 30, 1996 5
for the Six Months ended June 30, 1996 6
Statement of Changes in Stockholders Equity-
for the Three Months ended June 30, 1996 7
Statement of Cash Flows-
for the Six Months ended June 30, 1996 8
Notes to the Financial Statements 9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 10
Part II. Other Information 13
Signatures 15
2
<PAGE>
PART I: FINANCIAL INFORMATION
ITEM 1: Financial Statements
Datastream Systems, Inc.
Balance Sheets
Assets
December 31, June 30,
1995 1996
(unaudited)
Current assets:
Cash and cash equivalents $ 1,184,092 $ 2,468,579
Accounts receivable, net of allowance for
doubtful accounts of $244,475 and
$331,000, respectively 4,589,254 5,749,500
Investments held to maturity 17,335,907 12,021,173
Accrued interest receivable 309,375 744,383
Prepaid expenses 162,779 347,058
Inventories 250,931 321,076
Deferred income taxes 181,000 181,000
Other assets 110,127 142,185
------------ ------------
Total current assets 24,123,465 21,974,954
Investments held to maturity 20,319,024 24,554,387
Property and equipment
Land 450,000 450,000
Building 3,009,509 4,057,987
Computer equipment 2,152,780 3,177,710
Furniture and fixtures 562,073 873,307
---------- ----------
6,174,362 8,559,004
Less accumulated depreciation 877,300 1,155,020
---------- ---------
Net property and equipment 5,297,062 7,403,984
Capitalized software development costs, net of
accumulated amortization of $987,261 and
$1,210,729, respectively 952,618 1,629,776
---------- ---------
Total assets $ 50,692,169 $ 55,563,101
============= =============
See Notes to Financial Statements
3
<PAGE>
Datastream Systems, Inc.
Balance Sheets (Continued)
Liabilities and Stockholders' Equity
December 31, June 30,
1995 1996
(unaudited)
Current liabilities:
Accounts payable $ 199,428 $ 510,671
Other accrued liabilities 431,484 328,500
Income taxes payable 699,201 556,868
Current portion of long-term debt 20,000 20,000
Unearned revenue 2,808,348 3,606,196
--------- ---------
Total current liabilities 4,158,461 5,022,235
Long-term debt, less current portion 21,667 13,334
Deferred income taxes 478,000 478,000
---------- ----------
Stockholders' equity:
Preferred stock, $1 par value, 1,000,000 shares
authorized; none outstanding - -
Common stock, $.01 par value, 15,000,000 shares
authorized; 8,405,488 shares issued and
outstanding at December 31, 1995, 8,515,582
shares issued and outstanding at June 30, 1996 84,055 85,156
Additional paid-in capital 40,738,355 41,562,959
Retained earnings 5,211,631 8,401,417
----------- -----------
Total stockholders' equity 46,034,041 50,049,532
---------- ----------
Total liabilities and stockholders' equity $ 50,692,169 $ 55,563,101
============= =============
See Notes to Financial Statements
4
<PAGE>
Datastream Systems, Inc.
Statements of Income
(unaudited)
Three months ended June 30, 1995 and 1996
June 30, June 30,
1995 1996
Revenues:
Product $ 2,308,248 $ 3,259,003
Applications engineering 1,358,035 2,813,422
Support 984,841 1,631,996
---------- ---------
Total revenues 4,651,124 7,704,421
Cost of revenues:
Cost of product revenues 246,741 492,366
Cost of applications engineering revenues 751,125 1,441,690
Cost of support revenues 160,421 261,290
---------- ----------
Total cost of revenues 1,158,287 2,195,346
--------- ---------
Gross profit 3,492,837 5,509,075
Operating expenses:
Sales and marketing 1,118,927 2,234,022
Product development 426,004 301,334
General and administrative 568,590 866,965
---------- ----------
Total operating expenses 2,113,521 3,402,321
--------- ---------
Operating income 1,379,316 2,106,754
Other income (expense):
Interest income 253,262 571,117
Interest expense (2,315) (1,860)
Other (51,066) 11,359
----------- -----------
Net other income 199,881 580,616
---------- ----------
Income before income taxes 1,579,197 2,687,370
Income taxes 637,324 1,036,500
---------- ---------
Net income $ 941,873 $ 1,650,870
=========== ===========
Per share data:
Net income $ .13 $ .19
----------- -----------
Weighted average number of common and
common equivalent shares outstanding 7,242,764 8,908,755
========= =========
See Notes to Financial Statements
5
<PAGE>
Datastream Systems, Inc.
Statements of Income
(unaudited)
Six months ended June 30, 1995 and 1996
June 30, June 30,
1995 1996
Revenues:
Product $ 3,905,231 $ 6,331,712
Applications engineering 2,626,518 5,302,065
Support 1,868,369 2,972,086
----------- -----------
Total revenues 8,400,118 14,605,863
Cost of revenues:
Cost of product revenues 447,789 854,829
Cost of applications engineering revenues 1,335,752 2,617,721
Cost of support revenues 297,845 525,773
---------- ----------
Total cost of revenues 2,081,386 3,998,323
--------- ---------
Gross profit 6,318,732 10,607,540
Operating expenses:
Sales and marketing 2,188,164 4,361,737
Product development 653,987 718,406
General and administrative 1,109,114 1,494,685
--------- ---------
Total operating expenses 3,951,265 6,574,828
--------- ---------
Operating income 2,367,467 4,032,712
Other income (expense):
Interest income 287,749 1,147,255
Interest expense (3,478) (2,755)
Other 10,182 12,074
----------- -----------
Net other income 294,453 1,156,574
---------- ---------
Income before income taxes 2,661,920 5,189,286
Income taxes 1,065,000 1,999,500
--------- ---------
Net income $ 1,596,920 $ 3,189,786
=========== ===========
Per share data:
Net income $ .26 $ .36
----------- -----------
Weighted average number of common and
common equivalent shares outstanding 6,216,962 8,816,379
========= =========
See Notes to Financial Statements
6
<PAGE>
Datastream Systems, Inc.
Statement of Changes in Shareholders' Equity
(unaudited)
For the period ended June 30, 1996
Additional Total
Common Paid-In Retained Stockholders
Stock Capital Earnings Equity
Balance at December 31, 1995 $84,055 $40,738,355 $5,211,631 $46,034,041
Net income - - 3,189,786 3,189,786
Stock Options Exercised 1,101 824,604 - 825,705
Balance at June 30, 1996 $ 85,156 $ 41,562,959 $ 8,401,417 $ 50,049,532
=========== =========== =========== ===========
See Notes to Financial Statements
7
<PAGE>
Datastream Systems, Inc.
Statements of Cash Flows
(unaudited)
Six months ended June 30, 1995 and June 30, 1996
June 30, June 30,
1995 1996
Cash flows from operating activities:
Net income $ 1,596,920 $ 3,189,786
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 145,085 277,720
Amortization of capitalized software
development costs 109,236 225,737
Loss on disposal of fixed assets 50,438 -
Provision for doubtful accounts 60,270 86,525
Changes in operating assets and liabilities: (502,404) (764,121)
Net cash provided by operating activities 1,459,545 3,015,647
Cash flows from investing activities:
(Purchase) of investment available for sale (15,071,099) (6,548,052)
Sale of investment available for sale 967,500 7,284,939
Additions to property and equipment (501,580) (2,384,803)
Capitalized software development costs (260,266) (900,616)
----------- -----------
Net cash used in investing activities (14,865,445) (2,548,532)
Cash flows from financing activities:
Net proceeds from initial public offering of
common stock 13,560,213 -
Proceeds from exercise of stock options - 825,705
Proceeds from exercise of stock warrants 35,463 -
Principal payments on long-term debt (12,000) (8,333)
Net cash provided by (used in) financing ----------- -----------
activities 13,583,676 817,372
Net increase (decrease) in cash and cash equivalents 177,776 1,284,487
Cash and cash equivalents at beginning of period 1,151,977 1,184,092
Cash and cash equivalents at end of period $ 1,329,753 $ 2,468,579
============ ============
See Notes to Financial Statements
8
<PAGE>
Datastream Systems, Inc.
Notes to Financial Statements
1) Summary of significant Accounting Policies
A. Organization and Basis of Presentation
Datastream Systems, Inc. (the "Company" or "Datastream") develops, markets,
sells and supports Microsoft Windows-based personal computer software for the
industrial automation market. Datastream's software enables users to schedule
preventive maintenance, record equipment maintenance histories, organize and
control spare parts inventories, schedule equipment and parts inventory
purchases and deploy maintenance personnel.
The interim financial information included herein is unaudited. Certain
information and footnote disclosures normally included in the financial
statements have been condensed or omitted pursuant to the rules and regulations
of the Securities and Exchange Commission (SEC), although the Company believes
that the disclosures made are adequate to make the information presented not
misleading. These financial statements should be read in conjunction with the
financial statements and related notes contained in the Company's Form 10-K
filed with the SEC on April 1, 1996. Other than as indicated herein, there have
been no significant changes from the financial data published in that report. In
the opinion of management, such unaudited information reflects all adjustments,
consisting only of normal recurring accruals and other adjustments as disclosed
herein, necessary for a fair presentation of the unaudited information.
Results for interim periods are not necessarily indicative of results expected
for the full year.
B. Accounting Policies
Net income per share
Net income per share is computed by dividing net income by the weighted average
number of common and common equivalent shares outstanding. Weighted average
common and common equivalent shares include common shares and stock options
using the treasury stock method.
C. Public Offering of Common Stock
On April 5, 1995, the Company closed its initial public offering of 1,633,000
shares of common stock (633,000 of which were sold by existing shareholders) for
$15.00 per share before giving effect to the two for one stock split referred to
in the following paragraph. The Company invested the net proceeds of
approximately $13.95M from the offering in U.S. Government securities.
Effective September 12, 1995 the Company completed a two for one stock split
effected in the form of a stock dividend. All references in the accompanying
financial statements to the number of shares have been presented to reflect this
stock split.
On October 3, 1995, the Company closed its secondary public offering of
2,000,000 shares of common stock for $22.25 per share (1,085,670 of such shares
were sold by existing shareholders). The Company invested the net proceeds of
approximately $19.12 million from the offering in U.S. Government securities. In
conjunction with the secondary offering, on October 17, 1995, the Company closed
on the over-allotment option of 300,000 shares of common stock. The Company
invested the net proceeds of approximately $6.28 million from the over-allotment
option in U.S. Government securities.
9
<PAGE>
Datastream Systems, Inc.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Overview
The Company offers a family of "computerized maintenance management
systems" ("CMMS") to the maintenance, repair and operations ("MRO") industry,
including MP2 (DOS), SideArm (DOS), SideArm for Windows, MP2 for Windows, MP2
for Client Server and MaintainIt. Datastream supports its software products
through applications engineering services, including installation, consulting,
custom programming and training. Ongoing technical support services are supplied
pursuant to renewable annual technical support contracts.
Results of Operations
Total Revenues. The Company reported higher revenues for the second quarter
of 1996. Total revenues increased 65.6% to $7,704,421 in the second quarter of
1996 from $4,651,124 in the second quarter of 1995, due principally to the
continued acceptance of the Company's products in the industrial automation
market and the expansion of the Company's sales, applications engineering and
technical support service organizations. Total revenues increased 73.9% to
$14,605,863 during the first six months of 1996 from $8,400,118 in the first six
months of 1995.
Product revenues increased 41.2% to $3,259,003 (42.3% of total revenues) in
the second quarter of 1996 from $2,308,248 (49.6% of total revenues) in the
second quarter of 1995, as a result of growth in sales of the Company's
Microsoft Windows based products. Product revenues increased 62.1% to $6,331,712
(43.4% of total revenues) in the first six months from $3,905,231 (46.5% of
total revenues) in the first six months of 1995.
Application engineering services revenues increased 107.2% to $2,813,422
(36.5% of total revenues) in the second quarter of 1996 from $1,358,035 (29.2%
of total revenues) in the second quarter 1995. The increase resulted from the
addition of application engineering personnel to service expansion of the
Company's installed base of systems. Application engineering services revenues
increased 101.9% to $5,302,065 (36.3% of total revenues) in the first six months
of 1996 from $2,626,518 (31.3% of total revenues) in the first six months of
1995.
Technical support services revenues for the second quarter 1996 increased
65.7% to $1,631,996 (21.2% of total revenues) from $984,841 (21.2% of total
revenues) in the second quarter of 1995, primarily due to the expansion of the
Company's installed base of systems. Technical support services revenues
increased 59.1% to $2,972,086 (20.3% of total revenues) in the first six months
of 1996 from $1,868,369 (22.2% of total revenues) in the first six months of
1995.
Cost of Revenues. Cost of revenues increased 89.5% to $2,195,346 (28.5% of
total revenues) in the second quarter of 1996, as compared to $1,158,287 (24.9%
of total revenues) in the comparable quarter of 1995. The increase in cost of
revenues as a percentage of sales is attributed to increased costs of packaging
for newly released software products, the one time impact of the cost of the
annual technical users conference, and increased expenses incurred in the
Applications Engineering Department related to salaries and customer reimbursed
travel.
10
<PAGE>
Cost of revenues increased 92.1% to $3,998,323 (27.4% of total revenues) during
the first six months of 1996 from $2,081,386 (24.8% of total revenues) in the
first six months of 1995.
Cost of product revenues was 6.4% of total revenues in the second quarter
of 1996, and 5.3% of total revenues during the same period of 1995. The increase
was due to increased costs of packaging associated with newly released software
products.
Cost of application engineering services revenues was 18.7% of total
revenues during the second quarter of 1996, and 16.1% of total revenues during
the same period in 1995. The increase as a percentage of total revenues was due
to the one time impact of the cost of the annual technical users conference and
increased personnel and customer reimbursed travel costs.
Cost of technical support service revenues was 3.4% of total revenues
during the second quarter of 1996 and 3.4% of total revenues during the same
period in 1995.
Sales and Marketing Expenses. Sales and marketing expenses increased 99.7%
to $2,234,022 (29.0% of total revenues) during the second quarter of 1996 from
$1,118,927 (24.1% of total revenues) during the second quarter in 1995, as a
result of an increased number of sales personnel and commissions associated with
the increase in sales revenue, and increased marketing expenses associated with
new product introductions, including MP2 for Windows Client Server. Sales and
marketing expenses increased 99.3% to $4,361,737 (29.9% of total revenues) in
the first six months of 1996 from $2,188,164 (26.0% of total revenues) in the
first six months of 1995.
Product Development Expenses. Total product development expenditures
increased 75.5% to $869,592 (11.3% of total revenues) during the second quarter
of 1996 from $495,577 (10.7% of total revenues) during the same period in 1995.
The capitalized portion of these amounts were $568,258 and $69,573,
respectively. Giving effect to amounts capitalized, product development expense
decreased 29.3% to $301,334 (3.9% of total revenues) in the second quarter of
1996 from $426,004 (9.2% of total revenues) during the same period in 1995. The
increase in total product development expense resulted from increasing the
number of development personnel to support continued development of
client/server and other new products. The net decrease in product development
expense resulted from capitalizing development costs associated with the large
number of new products entering the capitalizable portion of the development
cycle.
Total product development expenditures increased 79.5% to $1,619,011 (11.1%
of total revenues) during the second half of 1996 from $902,084 (10.7% of total
revenues) during the same period in 1995. The capitalized portion of these
amounts were $900,605 and $248,097, respectively. Giving effect to amounts
capitalized, product development expense increased 9.9% to $718,406 (4.9% of
total revenues) in the second half of 1996 from $653,987 (7.8% of total
revenues) during the same period in 1995.
General and Administrative Expenses. General and administrative expenses
increased 52.5% to $866,965 (11.3% of total revenues) during the second quarter
of 1996 from $568,590 (12.2% of total revenues) in the second quarter of 1995,
primarily due to increased salaries expense, salary related costs, insurance,
and legal fees. General and administrative expenses increased 34.8% to
$1,494,685 (10.2% of total revenues) during the second half of 1996 from
$1,109,114 (13.2% of total revenues) in the second half of 1995.
11
<PAGE>
Miscellaneous Income. Miscellaneous income increased to $11,359 in the
second quarter of 1996 from ($51,066) in the second quarter of 1995. The
increase was due to rental income in the second quarter of 1996 offsetting the
one time loss recorded in the second quarter of 1995 on the write-off of a third
party software application. Miscellaneous income increased to $12,074 in the
first half of 1996 from $10,182 in the first half of 1995.
Interest Income/(Expense). Interest income increased to $571,117 in the
second quarter of 1996 from $253,262 in the second quarter of 1995, due to
higher investment balances realized upon completion of the Company's initial and
secondary public offerings of stock in April 1995 and October 1995,
respectively. Interest expense decreased to $1860 in the second quarter of 1996
from $2,315 in the second quarter of 1995, due to lower balances remaining on
notes payable. Interest income increased to $1,147,255 in the first half of 1996
from $287,749 in the first half of 1995. Interest expense decreased to $2,755 in
the first half of 1996 from $3,478 in the first half of 1995.
Tax Rate. The Company's effective tax rate was 38.6% for the second quarter
of 1996 as compared to 40.4% for the second quarter of 1995. The Company's
effective tax rate was 38.5% in the first half of 1996 as compared to 40.0% in
the first half of 1995.
Net Income. Net income increased 75.3% to $1,650,870 (21.4% of total
revenues) in the second quarter of 1996 from $941,873 (20.3% of total revenues)
in the second quarter of 1995. Net income increased 99.7% to $3,189,786 (21.8%
of total revenues) in the first half of 1996 from $1,596,920 (19.0% of total
revenues) in the first half of 1995.
Liquidity and Capital Resources
The Company has funded its activities entirely from cash generated from
operations. The Company ended its second quarter of 1996 with $ 2,468,579 in
cash and cash equivalents. The Company intends to re-invest the proceeds of
maturing government securities in similar government securities.
The Company completed renovating and assumed occupancy of its new offices
at 50 Datastream Plaza, Greenville, SC 29605 during April 1996.
The Company's principal commitments as of June 30, 1996, consisted
primarily of leases on its former headquarters facilities and operating
equipment, and there were no material commitments for capital expenditures. The
Company completed its initial public offering in April 1995, raising proceeds,
net of underwriting discounts and commission (but before payment of other
expenses of $389,787) of $13,950,000. Proceeds from the offering were invested
in U.S. government securities. The Company completed its secondary public
offering in October 1995, raising proceeds, net of underwriting discounts and
commission (but before payment of other expenses of $255,064) of $25,400,000.
Proceeds from the offering were invested in U.S. government securities. The
Company believes that its current cash balances, availability under its line of
credit, cash flow from operations and the proceeds of the Company's most recent
public offering will be sufficient to meet its working capital and capital
expenditure needs for at least the next 12 months.
12
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Not Applicable
Item 2. Changes in Securities
Not Applicable
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Submission of Matters to a Vote of Stockholders
The Annual Meeting of Stockholders was held on May 23, 1996 at which time
certain matters were submitted to such stockholders for a vote. Below is a brief
description of each such matter as well as the number of shares represented at
the meeting and entitled to vote and voting for, against or abstaining as to
each matter.
1. The following classes of directors were elected to serve on-, two- and tree-
year terms expiring in 1997, 1998 and 1999 respectively.
Shares Shares
FOR WITHHOLD
Class I:
Kenneth D. Tracy 7,422,599 14,641
Class II:
Richard T. Brock 7,422,499 14,741
Ira D. Cohen 7,422,599 14,641
Class III:
Larry G. Blackwell 7,426,999 10,241
John M. Sterling, Jr. 7,434,927 2,313
2. The stockholders approved the Company's Amended and Restated Employee Stock
Purchase Plan, pursuant to which 100,000 shares of common stock are reserved for
purchase by the Company's employees.
Shares Shares Shares
FOR AGAINST ABSTAIN
6,119,968 50,044 13,815
3. The stockholders approved the Company's Amended and Restated 1995 Stock
Option Plan, pursuant to which 1,000,000 shares of common stock are reserved for
grants of options to key employees of the Company.
Shares Shares Shares
FOR AGAINST ABSTAIN
5,450,782 711,351 21,694
4. The stockholders approved the Company's Amended and Restated Stock Option
Plan for Directors, pursuant to which 100,000 shares of common stock are
reserved for grants of options to non-employee directors of the Company.
Shares Shares Shares
FOR AGAINST ABSTAIN
5,588,265 575,373 20,189
13
<PAGE>
Item 5. Other Information
Not Applicable
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
3.1* Amended and Restated Certificate of Incorporation of the
Registrant
3.2* By-laws of the Registrant
10.3* License Agreement pertaining to Grainger Approved Access
Software dated December 27, 1994, between Registrant and
W.W. Grainger, Inc.
10.3(a)* Addendum to License Agreement dated March 15,1995,
between the Registrant and W.W. Grainger, Inc.
27 Financial Data Schedule
* Incorporated herein by reference to exhibit of the same number
in the Form S-1 Registration Statement of the Registrant (Reg.
No. 33-89498).
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the period.
14
<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.
Datastream Systems, Inc.
/s/ Daniel H. Christie
Date: 08/13/96 ______________________
Daniel H. Christie
Chief Financial Officer (principal
financial and accounting officer)
15
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 2,468,579
<SECURITIES> 12,021,173
<RECEIVABLES> 6,080,500
<ALLOWANCES> (331,000)
<INVENTORY> 321,076
<CURRENT-ASSETS> 21,974,954
<PP&E> 8,559,004
<DEPRECIATION> 1,155,020
<TOTAL-ASSETS> 55,563,101
<CURRENT-LIABILITIES> 5,022,235
<BONDS> 13,334
0
0
<COMMON> 85,156
<OTHER-SE> 49,964,376
<TOTAL-LIABILITY-AND-EQUITY> 55,563,101
<SALES> 6,331,712
<TOTAL-REVENUES> 14,605,863
<CGS> 854,829
<TOTAL-COSTS> 3,998,323
<OTHER-EXPENSES> 6,574,828
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,755
<INCOME-PRETAX> 5,189,286
<INCOME-TAX> 1,999,500
<INCOME-CONTINUING> 3,189,786
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,189,786
<EPS-PRIMARY> 0.36
<EPS-DILUTED> 0.36
</TABLE>
