<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
-------------------------------------
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 1996 Commission File Number 0-26858
MIZAR, INC.
(Exact name of registrant as specified in its charter)
Delaware 41-1425902
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
2410 Luna Road 75006
Carrollton, Texas (Zip Code)
(Address of principal executive offices)
(214) 277-4600
(Registrant's telephone number)
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
-------- --------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Outstanding at
Class May 3, 1996
----- -----------
Common Stock, par value $0.01 per share 4,963,533
<PAGE>
MIZAR, INC.
Form 10-Q
For the Quarter Ended March 31, 1996
INDEX
Page No.
--------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets
March 31, 1996 and June 30, 1995 3
Statements of Income
for the three months and the nine months ended
March 31, 1996 and 1995 4
Statements of Cash Flows
for the nine months ended
March 31, 1996 and 1995 5
Notes to Financial Statements 6-8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9-10
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 12
2
<PAGE>
MIZAR, INC.
Balance Sheets
(in thousands, except number of shares)
<TABLE>
<CAPTION>
March 31, June 30,
1996 1995
----------- -----------
ASSETS
------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 826 $ 3,710
Marketable securities 3,541 76
Accounts receivable, less allowance of $35 and $27, respectively 1,864 1,646
Inventories, net 1,321 1,224
Deferred tax asset 790 -
Prepaid expenses 109 82
----------- -----------
Total current assets 8,451 6,738
Marketable securities, at amortized cost (noncurrent portion) 6,984 -
Plant and equipment:
Plant and equipment 1,482 1,188
Less--accumulated depreciation (1,092) (897)
----------- -----------
Plant and equipment, net 390 291
Other assets 55 93
------------ -----------
Total assets $ 15,880 $ 7,122
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable $ 430 $ 387
Accrued compensation 270 576
Other current liabilities 279 499
Income taxes payable 206 108
Current maturities of convertible debentures and capital lease obligations 17 1,074
----------- -----------
Total current liabilities 1,202 2,644
Convertible and subordinated debentures and capital lease obligations 4 871
----------- -----------
Total liabilities 1,206 3,515
Stockholders' equity:
Common stock, $.01 par value: 25,000,000 shares authorized; 5,444,891 and
3,271,436 shares issued at March 31, 1996 and June 30, 1995, respectively, and
4,944,873 and 3,203,892 shares outstanding at March 31, 1996 and June 30, 1995,
respectively 54 33
Additional paid-in-capital 13,628 5,570
Retained earnings (accumulated deficit) 1,577 (1,664)
----------- -----------
15,259 3,939
Less-treasury stock, at cost (585) (332)
----------- -----------
Total stockholders' equity 14,674 3,607
----------- -----------
Total liabilities and stockholders' equity $ 15,880 $ 7,122
=========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
MIZAR, INC.
Statements of Income
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
1996 1995 1996 1995
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Net sales $ 3,255 $ 3,763 $ 11,665 $ 10,211
Cost of sales 1,583 1,798 5,385 4,599
----------- ----------- ----------- ------------
Gross margin 1,672 1,965 6,280 5,612
Operating expenses:
Sales and marketing 599 603 1,881 1,739
Product development and engineering 371 326 1,217 1,118
General and administrative 214 251 706 659
------------ ------------ ----------- ------------
Total operating expenses 1,184 1,180 3,804 3,516
------------ ------------ ----------- ------------
Operating income 488 785 2,476 2,096
Other income (expense):
Interest income 145 27 335 58
Interest expense (1) (50) (80) (153)
------------ ------------- ------------ ------------
Total other income (expense) 144 (23) 255 (95)
------------ ------------- ------------ ------------
Income before income taxes 632 762 2,731 2,001
Provision (benefit) for income taxes 53 31 (510) 101
------------ ------------- ------------ ------------
Net income $ 579 $ 731 $ 3,241 $ 1,900
============ ============= ============ ============
Primary income per share $ 0.10 $ 0.18 $ 0.62 $ 0.47
=========== ============ ============ =============
Fully diluted income per share $ 0.10 $ 0.15 $ 0.59 $ 0.39
=========== ============ ============ =============
Weighted average common shares outstanding:
Primary 5,670 4,076 5,264 4,039
=========== ============ ============= =============
Fully diluted 5,670 5,043 5,552 5,007
=========== ============ ============= =============
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
MIZAR, INC.
Statements of Cash Flows
(in thousands)
<TABLE>
<CAPTION>
Nine Months Ended
March 31,
1996 1995
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 3,241 $ 1,900
Adjustments to reconcile net income to net cash
provided by operating activities--
Depreciation 195 151
Amortization of deferred loan costs 3 11
Prepaid rent (12) (12)
Deferred tax asset (790) -
Changes in assets and liabilities--
Trade accounts receivable, net (218) 233
Inventories, net (97) (198)
Prepaid expenses (27) (76)
Other assets 38 76
Accounts payable 43 46
Accrued liabilities (196) (194)
----------- -----------
Net cash provided by operating activities 2,180 1,937
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of machinery and equipment (294) (285)
Proceeds from disposition of machinery and equipment - 72
Increase in marketable securities (10,449) -
----------- -----------
Net cash used in investing activities (10,743) (213)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from initial public offering, net 6,834 -
Exercise of stock warrants and options 206 119
Payment of option to purchase stock - (31)
Purchase of treasury stock (485) (214)
Net payments on debt obligations (876) (36)
----------- -----------
Net cash provided (used) by financing activities 5,679 (162)
----------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,884) 1,562
CASH AND CASH EQUIVALENTS, beginning of period 3,710 1,444
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 826 $ 3,006
=========== ===========
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Cash paid for interest $ 71 $ 162
Cash paid for income taxes 124 44
Assets acquired under capital leases - 32
Common stock issued in conversion of convertible debentures 1,048 -
</TABLE>
The accompanying notes are an integral part of these financial statements.
5
<PAGE>
MIZAR, INC.
Notes to Financial Statements
1. Basis of Presentation
While the accompanying interim financial statements are unaudited, they have
been prepared by the Company pursuant to the rules and regulations of the
Securities and Exchange Commission. In the opinion of the Company, all material
adjustments and disclosures necessary to fairly present the results of such
periods have been made. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to the rules and
regulations of the Securities and Exchange Commission. These financial
statements should be read in conjunction with the financial statements and notes
thereto for the year ended June 30, 1995. Certain previously reported amounts
have been reclassified to conform with current year presentation. The results
of operations for the period ended March 31, 1996 are not necessarily indicative
of results to be expected for the year ending June 30, 1996.
2. Initial Public Offering
On September 28, 1995, the Company completed an initial public offering ("IPO")
of 918,000 shares of common stock. Proceeds from the offering, net of expenses,
aggregated $6,834,000 and were used to retire $856,000 of debt and fulfill a
commitment, as well as an option, to purchase the Company's common stock as
discussed in Note 5.
3. Marketable Securities
The Company has invested the net proceeds from its initial public offering, as
well as other available funds, in marketable securities with original maturities
not exceeding three years. In accordance with SFAS No. 115, Accounting for
Certain Investments in Debt and Equity Securities, the Company has evaluated its
investment policy and related intentions and determined that all marketable
securities reflected in the accompanying balance sheets are held-to-maturity
securities. Accordingly, these securities are reported at amortized cost and
are classified as either a current or noncurrent asset based on each security's
respective remaining maturity.
4. Inventories
Net inventories at March 31, 1996 and June 30, 1995, consisted of the following
(in thousands):
<TABLE>
<CAPTION>
March 31, June 30,
1996 1995
--------- --------
<S> <C> <C>
Raw materials $ 873 $ 640
Work-in-process 321 375
Finished goods 382 361
------ ------
1,576 1,376
Less--allowance for excess and obsolete inventory (255) (152)
------ ------
Net inventory $1,321 $1,224
====== ======
</TABLE>
6
<PAGE>
MIZAR, INC.
Notes to Financial Statements
5. Common Stock Repurchase
Other current liabilities at June 30, 1995 included a commitment to purchase
207,400 shares of the Company's common stock for $231,800 from United
Technologies Corporation ("UTC"). The purchase of this stock pursuant to the
commitment was completed on October 5, 1995. On this same date, the Company
also exercised an option to purchase an additional 207,400 shares of the
Company's common stock for $244,000 from UTC.
6. Income Taxes
The Company's effective income tax rate as reflected in the accompanying income
statement for the nine months ended March 31, 1996 has been significantly
impacted by the utilization of net operating loss carryforwards. During the
nine months ended March 31, 1996, the impact of accounting for net operating
loss carryforwards yielded an effective tax rate of approximately 10%. During
the three months ended December 31, 1995, the Company's accounting for income
taxes was further impacted by the recognition of a deferred tax asset of
$790,000. The Company believes that it is more likely than not that it will be
able to realize this asset, which is also associated with a net operating loss
carryforward, and in accordance with SFAS No. 109, Accounting for Income Taxes,
a valuation allowance associated with this asset was reduced and the asset was
recognized.
7. Conversion of Debentures
The holders of the Company's Convertible Subordinated Debentures in the amount
of $1,048,000 converted their holdings to 891,084 shares of the Company's common
stock upon completion of the IPO.
8. Income Per Share
Primary and fully diluted income per share were computed by dividing adjusted
net income, as adjusted in the fully diluted calculation for interest expense on
the subordinated debentures, by the weighted average number of shares of common
stock and common stock equivalents outstanding during the periods presented.
Common stock equivalents included in both primary and fully diluted income per
share are stock options using the treasury stock method. Both primary income
per share and fully diluted income per share were computed using the average
fair market price, which was higher than the ending market price. Fully diluted
income per share also includes the shares as if the Company's convertible
debentures were converted at the beginning of the period. Shares used in
primary and fully diluted income per share calculations are presented on the
next page (in thousands).
7
<PAGE>
MIZAR, INC.
Notes to Financial Statements
<TABLE>
<CAPTION>
Primary Fully Diluted
------------------------- ------------------------
Three Months Ended Three Months Ended
March 31, March 31,
1996 1995 1996 1995
---------- ---------- --------- ---------
<S> <C> <C> <C> <C>
Weighted average common stock
outstanding during the period 4,932 3,204 4,932 3,204
Common stock equivalents of employee
stock programs 738 872 738 872
Common stock equivalents of convertible debt N/A N/A N/A 967
---------- ---------- --------- ---------
Shares used in income per share calculation 5,670 4,076 5,670 5,043
========== ========== ========= =========
</TABLE>
<TABLE>
<CAPTION>
Primary Fully Diluted
------------------------- ------------------------
Nine Months Ended Nine Months Ended
March 31, March 31,
1996 1995 1996 1995
--------- ---------- --------- ---------
<S> <C> <C> <C> <C>
Weighted average common stock
outstanding during the period 4,404 3,203 4,404 3,203
Common stock equivalents of employee
stock programs 860 836 860 837
Common stock equivalents of convertible debt N/A N/A 288 967
--------- ---------- --------- ---------
Shares used in income per share calculation 5,264 4,039 5,552 5,007
========= ========== ========= =========
</TABLE>
9. Recent Accounting Pronouncements
In October 1995, the Financial Accounting Standards Board issued Statement No.
123, Accounting for Stock-Based Compensation. This standard, which establishes
a fair value based method of accounting for stock-based compensation plans, also
permits an election to continue following the requirements of APB Opinion No.
25, Accounting for Stock Issued to Employees with disclosures of pro forma net
income and earnings per share under the new method. The Company is reviewing
the implications of SFAS No. 123 and evaluating the effect, if any, on the
financial condition and results of operations of the Company. SFAS No. 123 will
be effective for the Company's fiscal year 1997.
8
<PAGE>
MIZAR, INC.
Management's Discussion and Analysis of Financial Condition
and Results of Operations
Results of Operations
- - ---------------------
During the quarter ended March 31, 1996, the Company reported sales of
$3,255,000, a 13% decrease over the same period in the prior year. The decline
is due to a number of customers which have delayed projects or programs, which
in part has been due to the ongoing federal budget negotiations. In addition,
other customers have experienced development and product deployment delays which
have negatively impacted the Company's short-term revenue performance. During
the nine months ended March 31, 1996, the Company reported sales of $11,665,000,
a 14% increase over the same period in the prior year. DSP product sales were
responsible for the increase in sales for the nine months ended March 31, 1996,
as compared to the same period of the prior year. During the three and nine
months ended March 31, 1996, DSP product sales represented 59% and 64% of sales,
respectively, as compared to 66% and 56%, respectively, during the same periods
in the prior year. On a year-to-date basis, the DSP product line has
experienced a growth rate of 31% versus a 7% rate of decline in non-DSP
revenues.
Gross margin percent for the quarter ended March 31, 1996 was 51%, as
compared to 52% for the same period in the prior year. Gross margins in the
third quarter of fiscal 1996 were negatively impacted by the lower production
volumes experienced in the quarter and scrap related to an isolated production
run. Gross margin percent for the nine months ended March 31, 1996 was 54%, as
compared to 55% for the same period of the prior year. The Company's historical
gross margin percentage has varied by quarter in both a positive and negative
fashion due to changes in customer and specific product mix. Such changes in
customer and specific product mix will continue to impact gross margin
percentages in a similar fashion during future reporting periods as DSP products
comprise a larger percentage of sales, but presumably will develop more
consistency as the DSP market matures.
During the quarter, operating expenses were $1,184,000, or 36% of sales, as
compared to $1,180,000, or 31% of sales, for the same period in the prior year.
Although operating expenses, expressed as absolute dollars, for the current
quarter as compared to the same period in the prior year were flat, such
expenses increased as a percentage of sales due to the decrease in sales in the
third quarter of 1996 as compared to the same period in 1995. As a result of the
current financial performance in the third quarter and the outlook for the
fourth quarter, the officer and employee bonus accrual was reduced by
approximately $200,000, which impacted the third quarter operating expenses.
More specifically, the Company's current projection of revenue growth during
fiscal 1996 will not meet the threshold of the bonus plan. During the nine
months ended March 31, 1996, operating expenses were $3,804,000, or 33% of
sales, as compared to $3,516,000, or 34% of sales, for the same period in the
prior year. The overall decline in operating expenses for the nine months ended
March 31, 1996, expressed as a percentage of sales, is attributable to the
increase in sales. Absolute spending increases for the nine month period,
however, are mainly attributable to headcount related expenses associated with
the Company's growth.
Interest income for the quarter ended March 31, 1996 was $145,000, as
compared to $27,000 for the same period in the prior year. Interest income for
the nine months ended March 31, 1996 was $335,000, as compared to $58,000 for
the same period in the prior year. These increases are the result of earnings
from marketable securities purchased with the net proceeds of the Company's IPO.
The Company reported net income of $579,000 for the quarter ended
March 31, 1996, as compared to $731,000 during the same period in the prior
year. Net income for the nine months ended March 31, 1996 was $3,241,000, as
compared to $1,900,000 during the same period in the prior year. The decrease in
the three months ended March 31, 1996, as compared to the same period in the
prior year, is primarily due to the decrease in sales. The reduction in the
bonus accrual discussed above also impacted net income during the three months
ended March 31, 1996. The increase in the nine months ended March 31, 1996, as
compared to the same period in the
9
<PAGE>
prior year, is due to the increase in sales and to the recognition of a deferred
tax asset of $790,000 associated with a net operating loss carryforward. In
accordance with the criteria contained in SFAS No. 109, Accounting for Income
Taxes, a valuation allowance associated with this asset was reduced and the
asset was recognized.
Liquidity and Capital Resources
- - -------------------------------
Net working capital at March 31, 1996 was $7,249,000, an increase of
$3,155,000 from June 30, 1995. The increase in working capital is attributable
to receipt of the net proceeds from the Company's IPO, net of a portion of the
proceeds which were invested in marketable securities which were not classified
as a current asset as of March 31, 1996. The Company has invested the net
proceeds from its IPO in marketable securities with original maturities not
exceeding three years. In accordance with SFAS No. 115, Accounting for Certain
Investments in Debt and Equity Securities, the Company has evaluated its
investment policy and related intentions and determined that all marketable
securities as of June 30, 1995 and March 31, 1996 are held-to-maturity
securities. Accordingly, these securities are reported at amortized cost and
are classified as either a current or noncurrent asset based on each security's
respective remaining maturity.
The Company's outstanding convertible subordinated debentures in the
amount of $1,048,000 were converted to 891,084 shares of the Company's common
stock upon the completion of the IPO, and the Company's indebtedness for
Subordinated Debentures in the amount of $856,000 was repaid in early October
with a portion of the proceeds from the IPO. The commitment to purchase 207,400
shares of the Company's common stock for $231,800 from United Technologies
Corporation ("UTC"), and the exercise of an option to purchase an additional
207,400 shares of the Company's common stock for $244,000 from UTC, were also
completed after receipt of the proceeds from the IPO. There is no remaining
indebtedness except for obligations under capital leases, which have maturities
ranging from 5 to 17 months, in the amount of $21,000 at March 31, 1996.
The Company believes that its near-term liquidity requirements will be
met with cash flow from operations and existing cash and short-term investments.
10
<PAGE>
MIZAR, INC.
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits (exhibit reference numbers refer to Item 601 of Regulation S-K)
11(a) Calculation of Earnings Per Share for the three month period
ending March 31, 1996.
11(b) Calculation of Earnings Per Share for the nine month period
ending March 31, 1996.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the period.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995:
With the exception of historical information, the matters discussed or
incorporated by reference in this Report on Form 10-Q are forward-looking
statements that involve risks and uncertainties including, but not limited to,
technological change, defense industry customer concentration, relationship with
Texas Instruments Defense Systems and Electronics Group, commercial market
uncertainties, dependence upon suppliers and subcontractors, dependence on key
personnel, competition, quarterly fluctuations, and other risks indicated in
filings with the Securities and Exchange Commission.
11
<PAGE>
MIZAR, INC.
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.
Mizar, Inc.
Date: May 3, 1996 By /s/ Charles D. Brockenbush
--------------------------------------------
Charles D. Brockenbush
Vice President, Finance and
Chief Financial Officer
(Principal Financial and Accounting Officer)
12
<PAGE>
Exhibit 11(a)
MIZAR, INC.
Computation of Per Share Income
<TABLE>
<CAPTION>
Three Months Ended
March 31,
1996 1995
------------- --------------
<S> <C> <C>
Primary Income Per Share:
Net income $ 579,000 $ 731,000
============= ==============
Weighted average shares outstanding 4,931,789 3,203,902
Effect of common stock equivalents:
Options granted 805,371 1,186,974
Weighted average exercised options outstanding for portion of quarter,
net of equivalent shares purchased at average fair market value 17,671 -
Effect of using option proceeds to repurchase common stock at
average fair market value (84,363) (315,352)
------------- --------------
738,679 871,622
------------- --------------
Total common stock equivalents 5,670,468 4,075,524
------------- --------------
Primary income per share $ 0.10 $ 0.18
============= ==============
Fully Diluted Income Per Share:
Total weighted average shares from above 4,931,789 3,203,902
Effect of common stock equivalents:
Options granted 805,371 1,186,974
Weighted average exercised options outstanding for portion of quarter,
net of equivalent shares purchased at average fair market value 17,671 -
Effect of using option proceeds to repurchase common stock at
average fair market value (84,363) (315,352)
Effect of conversion of subordinated debentures - 967,584
-------------- --------------
738,679 1,839,206
-------------- --------------
Total common stock equivalents 5,670,468 5,043,108
Net income 579,000 731,000
Adjustment to net income for interest on subordinated debentures - 25,000
-------------- --------------
Net income, as adjusted $ 579,000 $ 756,000
-------------- --------------
Fully diluted income per share $ 0.10 $ 0.15
============== ==============
</TABLE>
13
<PAGE>
Exhibit 11(b)
MIZAR, INC.
Computation of Per Share Income
<TABLE>
<CAPTION>
Nine Months Ended
March 31,
1996 1995
-------------- --------------
<S> <C> <C>
Primary Income Per Share:
Net income $ 3,241,000 $ 1,900,000
============== ==============
Weighted average shares outstanding 4,403,822 3,203,292
Effect of common stock equivalents:
Options granted 839,549 1,128,395
Weighted average exercised options outstanding for portion of period,
net of equivalent shares purchased at average fair market value 106,703 -
Effect of using option proceeds to repurchase common stock at
average fair market value (86,179) (292,542)
-------------- ---------------
860,073 835,853
-------------- ---------------
Total common stock equivalents 5,263,895 4,039,145
-------------- ---------------
Primary income per share $ 0.62 $ 0.47
============== ===============
Fully Diluted Income Per Share:
Total weighted average shares from above 4,403,822 3,203,292
Effect of common stock equivalents:
Options granted 839,549 1,128,395
Weighted average exercised options outstanding for portion of period,
net of equivalent shares purchased at average fair market value 106,703 -
Effect of using option proceeds to repurchase common stock at
average fair market value (86,179) (292,542)
Effect of conversion of subordinated debentures 288,387 967,584
-------------- ---------------
1,148,460 1,803,437
-------------- ---------------
Total common stock equivalents 5,552,282 5,006,729
Net income 3,241,000 1,900,000
Adjustment to net income for interest on subordinated debentures 46,000 76,000
--------------- ---------------
Net income, as adjusted $ 3,287,000 $ 1,976,000
--------------- ---------------
Fully diluted income per share $ 0.59 $ 0.39
=============== ===============
</TABLE>
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MIZAR, INC. AS OF MARCH 31, 1996, AND FOR THE NINE
MONTHS THEN ENDED, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-START> JUL-01-1995
<PERIOD-END> MAR-31-1996
<CASH> 826
<SECURITIES> 3,541
<RECEIVABLES> 1,899
<ALLOWANCES> 35
<INVENTORY> 1,321
<CURRENT-ASSETS> 8,451
<PP&E> 1,482
<DEPRECIATION> 1,092
<TOTAL-ASSETS> 15,880
<CURRENT-LIABILITIES> 1,202
<BONDS> 4
0
0
<COMMON> 54
<OTHER-SE> 14,620
<TOTAL-LIABILITY-AND-EQUITY> 15,880
<SALES> 11,665
<TOTAL-REVENUES> 11,665
<CGS> 5,385
<TOTAL-COSTS> 5,385
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 80
<INCOME-PRETAX> 2,731
<INCOME-TAX> (510)
<INCOME-CONTINUING> 3,241
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,241
<EPS-PRIMARY> .62
<EPS-DILUTED> .59
</TABLE>
