SECURITY 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 1-5354
SWANK, INC.
- -------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 04-1886990
(State or other jurisdiction of incorporation (IRS employer
or organization) identification Number)
6 Hazel Street, Attleboro, Massachusetts 02703
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code 508-222-3400
Former name, former address and former fiscal year, if changed since last
report.
Indicate by X 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 ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court:
Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the latest practicable date:
Title of Class Shares Outstanding on August 5, 1996
- -------------- ------------------------------------
Common stock, $.10 par value 16,509,523
<PAGE>
PART I - FINANCIAL STATEMENTS
Item 1. Financial Statements.
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(Dollars in thousands)
ASSETS June 30, 1996 December 31, 1995
------------------ ------------------
<S> <C> <C> <C> <C>
Current:
Cash and temporary cash investments $ 901 $ 1,121
Accounts receivable, less allowances 10,257 10,704
of $5,683 and $9,097
Inventories, at the lower of cost
or market
Raw materials $ 4,370 $ 5,092
Work-in-process 6,225 6,476
Finished goods 15,127 25,722 17,602 29,170
------ ------
Recoverable income taxes 1,665
Deferred income taxes 1,890 1,890
Prepaid and other 2,229 1,218
----- -----
Total current assets 40,999 45,768
Property, plant and equipment, at cost 22,377 22,472
Obligations under capital lease 1,526 1,466
Less accumulated depreciation
and amortization (16,873) 7,030 (16,481) 7,457
------ ------
Deferred income taxes 399 399
Other assets 3,224 3,700
----- -----
Total Assets $51,652 $57,324
======= =======
LIABILITIES
Current:
Notes payable to banks $14,199 $14,800
Current portion of long-term
obligations 235 235
Accounts payable, trade 3,777 5,870
Accrued employee compensation 731 1,408
Other liabilities 8,636 8,696
----- -----
Total current liabilities 27,578 31,009
Long-term obligations 5,584 5,782
----- -----
Total liabilities 33,162 36,791
------ ------
STOCKHOLDERS' EQUITY
Preferred stock, par value $1.00
Authorized 1,000,000 shares Common stock, par value $.10:
Authorized 43,000,000 shares
Issued 16,843,042 and 16,843,042 1,684 1,684
Capital in excess of par value 852 852
Retained earnings 17,846 20,382 19,477 22,013
------ ------
Deferred employees' benefits 1,183 771
Treasury stock at cost 333,519 shares 709 709
--- ---
Total stockholders' equity 18,490 20,533
------ ------
Total liabilities and stockholders'
equity $51,652 $57,324
======= =========
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
<PAGE>
<TABLE>
<CAPTION>
SWANK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE QUARTERS ENDED JUNE 30, 1996 AND 1995
(Dollars in thousands)
----------------
1996 1995
---- ----
<S> <C> <C>
Sales $29,251 $28,253
Cost of goods sold 16,890 17,086
------ ------
Gross profit 12,361 11,167
Selling and administrative expenses 12,840 14,697
------ ------
Loss from operations (479) (3,530)
Interest charges 505 497
--- ---
Loss before income taxes (984) (4,027)
Benefit for income taxes (247) (1,346)
----- -------
Net loss $(737) $ (2,681)
====== ==========
</TABLE>
<TABLE>
<CAPTION>
Share and per share information:
<S> <C> <C>
Weighted average common shares outstanding 15,442,954 16,197,076
Net loss per share $(.05) $(.17)
====== ======
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
<PAGE>
<TABLE>
<CAPTION>
SWANK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Dollars in thousands)
----------------
1996 1995
---- ----
<S> <C> <C>
Sales $59,957 $58,219
Cost of goods sold 35,475 35,269
------ ------
Gross profit 24,482 22,950
Selling and administrative expenses 25,691 28,821
------ ------
Loss from operations (1,209) (5,871)
Interest charges 966 743
--- ---
Loss before income taxes (2,175) (6,614)
Benefit for income taxes (544) (2,381)
----- -------
Net loss $(1,631) $ (4,233)
====== ==========
</TABLE>
<TABLE>
<CAPTION>
Share and per share information:
<S> <C> <C>
Weighted average common shares outstanding 15,644,008 16,335,751
Net loss per share $(.10) $(.26)
====== ======
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
<PAGE>
<TABLE>
<CAPTION>
SWANK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Dollars in thousands)
----------
1996 1995
---- ----
<S> <C> <C>
Cash flow from operating activities:
Net loss $ (1,631) $ (4,233)
Adjustments to reconcile net loss to operating cash flows:
Increase in post-retirement benefits 84 135
Depreciation and amortization 665 567
Loss on disposals of fixed assets 74
Decrease in receivable reserves (3,414) (4,258)
Change in assets and liabilities
Decrease in accounts receivable 3,861 3,824
Decrease (increase) in inventory 3,449 (5,001)
Decrease (increase) in prepaid and other 1,130 (3,910)
Decrease in accounts payable and
accrued other (3,050) (386)
------- -------
Net cash provided by (used in) operating activities 1,168 (13,262)
------- --------
Cash flow from investing activities:
Capital expenditures,net of proceeds (313) (387)
----- -----
Net cash used in investing activities (313) (387)
----- -----
Cash flow from financing activities:
Borrowing under revolving credit agreements 25,131 23,950
Payments of revolving credit agreements (25,732) (9,250)
Principal payments of long-term debt - (2,254)
Payments of capital lease obligations (62)
Advance to employees stock ownership trust (412) (535)
Proceeds from exercise of employees' stock
options - 30
-- --
Net cash (used in) provided by financing activities (1,075) 11,941
----- -----
Net increase (decrease) in cash and equivalents (220) (1,708)
Cash and equivalents at beginning of period 1,121 2,153
----- -----
Cash and equivalents at end of period $ 901 $ 445
======= =======
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
<PAGE>
Notes to Unaudited Condensed Consolidated Financial Statements.
(1) The unaudited information furnished herein reflects all adjustments
(consisting only of normal recurring adjustments) which are, in the opinion of
management, necessary to present a fair statement of the results for the periods
ended June 30, 1996 and 1995. The financial information contained herein
represents condensed financial data and, therefore, does not include all
footnote disclosures required to be included in financial statements prepared in
conformity with generally accepted accounting principles. Footnote information
was included in the Company's annual report on Form 10-K for the fiscal year
ended December 31, 1995; the condensed financial data included herein should be
read in conjunction with the information in the annual report.
(2) During the six month period ended June 30, 1996, the Company has not
incurred any material changes in the commitments and contingencies as previously
referenced in Footnote I of the 1995 annual report.
(3) On May 24, 1996 the Company obtained new working capital financing from IBJ
Schroder Bank & Trust Company, as agent, for the lenders thereunder (the "New
Lenders"), for up to $25,000,000 with a sublimit of $3,000,000 in letters of
credit (the "New Agreement"). The proceeds of the New Agreement were used, in
part, to repay all but $4 million of the outstanding balance under the previous
facility.
The New Agreement is available through April 1999 and is collateralized by
all of the Company's assets. The New Lenders have a senior lien position on all
assets other than real property, improvements and certain fixtures, in which the
Company's other institutional lenders maintain a senior position to
collateralize a $4,000,000 term loan, as described below, and in which the New
Lenders have a subordinate lien. The New Agreement permits the Company to borrow
against a percentage of eligible accounts receivable and inventory and its loans
bear an interest rate of 1.5% over the New Lenders' prime lending rate. The New
Agreement also contains a facility fee of 1/2% per annum on the unused portion
of the revolving credit facility.
The terms of the New Agreement include covenants requiring the Company to
maintain certain financial ratios for the six months ended June 30, 1996. These
include a maximum leverage ratio of 4.0 to 1 and an inventory turnover of at
least 2 times. As of June 30, 1996 the Company was in compliance with these
covenants. The New Agreement also includes covenants pertaining to
profitability, limiting capital expenditures and additional indebtedness. The
Company believes the inventory turnover covenant to be the most restrictive,
requiring a minimum inventory turnover as high as 2.25 times during the term of
the New Agreement. The New Agreement also prohibits the payment of dividends.
Management believes this credit facility will meet its working capital needs
until May 1999.
In connection with the refinancing, The Chase Manhattan Bank, N.A. and
Fleet National Bank (the "Banks") amended and restated the existing credit
facility (the "Agreement") to provide the Company with a $4,000,000 term loan
(the "Term Loan") in lieu of a like amount of revolving debt. The Term Loan will
be repaid in $200,000 quarterly increments starting in June 1997 with a final
payment of $2,600,000 due May 1999. The Term Loan bears interest at 2.5% over
the Banks' prime lending rate and is collaterialized by a senior lien on real
property, improvements and certain fixtures, and a subordinate lien on all other
assets. The Term Loan also contains an annual facility fee of 2% of the term
loan and a maximum success fee of $450,000 payable as follows; $225,000 on final
maturity with the balance payable subsequently in six equal monthly installments
of $37,500. The annual facility fee and success fee are being included in
selling and administrative expenses over the life of the loan.
The financing agreements include provisions specifying that a material
adverse effect, as determined by the lenders, in the financial position or
results of operations of the Company is an event of default. As such, the Term
Loan, which would otherwise be classified as long-term, has been classified as
current on the balance sheet at June 30, 1996.
<PAGE>
Item 2. Management's Discussion and Analysis of the Financial Condition and
Results of Operations
Results of Operations
As is customary in the fashion accessories industry, the Company makes
modifications to its lines coinciding with the Spring (January - June) and Fall
(July - December) seasons. The Company believes that results of operations are
considered to be more meaningful on a seasonal basis (six months) than on a
quarterly basis as the timing of sales (deliveries) and related income between
quarters can be affected by the availability of materials, retail sales and
fashion trends. These factors may affect the shift of volume between quarters
within a season differently in one year than another.
Net Sales
- ---------
Net sales for the quarter and six months ended June 30, 1996 were
$29,251,000 and $59,957,000, an increase of $998,000, or 3%, and $1,738,000, or
3%, from the quarter and six months ended June 30, 1995, respectively.
Men's and Women's Jewelry net sales increased $771,000, or 7%, for the
quarter ended June 30, 1996, but decreased $450,000, or 2%, for the six months
ended June 30, 1996. Men's Leather Accessories net sales increased $100,000, or
1%, and $2,204,000, or 7%, for the quarter and six months ended June 30, 1996,
respectively. Other Product Lines net sales increased $127,000, or 15%, for the
quarter ended June 30, 1996, but decreased $16,000, or 1%, for the six months
ended June 30, 1996.
Included in net sales are adjustments relating to customer returns. Net sales
for both the quarter and six months ended June 30, 1996 were favorably impacted
as a result of actual customer return activity for 1996 being lower than
anticipated, primarily due to the Company's efforts, initiated during 1995, to
adjust its women's jewelry stock at store level to more competitively priced
career oriented products. During comparable periods in 1995, actual returns
exceeded anticipated returns. The following table quantifies these adjustments
both for the periods ended June 30, 1996 and for the comparable periods in
fiscal 1995:
(in thousands)
1996 1995 Variance
---- ---- --------
Men's & Women's Jewelry $1,059 ($1,642) $2,701
Men's Leather Accessories 188 (37) 225
Other Product Lines 138 (312) 450
--- ----- ---
Increase (decrease) in Net Sales $1,385 ($1,991) $3,376
====== ======== ======
Net sales in Men's and Women's Jewelry decreased for the six months ended
June 30,1996 primarily from a lackluster retail environment, a reduction in the
number of factory outlets and declines in its special markets lines for men's
jewelry. Net sales increased for the quarter ended June 30, 1996 as a result of
the return adjustment noted above. Net sales increased in Men's Leather
Accessories reflecting the Company's continued strength in its private label
programs and special market lines for the quarter and six months ended June 30,
1996. Net sales in Other Product Lines, including residual sales of items in the
Company's gift lines (which were discontinued in the fourth quarter of 1995),
increased for the quarter and six months ended June 30, 1996, primarily as a
result of the return adjustment noted above.
Net sales at the Company's factory outlets, which are included in the net
sales figures above, decreased 14% and 16% for the quarter and six months ended
June 30, 1996, respectively. Sales decreased as a result of the closure of
Item 2. Management's Discussion and Analysis of the Financial Condition and
Results of Operations (continued)
thirteen unprofitable store locations (nine of which were closed during the
second quarter) offset, in part, by increased same store sales of 12% and 3%
for the quarter and six months ended June 30, 1996, respectively. The Company
believes the factory outlets are still a valuable distribution channel for the
disposition of excess inventory and continues to assess the profitability of
each store location in an effort to maintain a smaller, more profitable presence
in this market.
<PAGE>
Gross Profit
- ------------
Gross profit for the quarter and six months ended June 30, 1996 increased
$1,194,000, or 11%, and $1,532,000, or 7%, respectively. Gross profit expressed
as a percentage of net sales increased to 42% from 40% and 41% from 39% for the
quarter and six months ended June 30,1996, respectively. These increased margins
are attributable to reductions in overhead and lower costs associated with
customer returns (based on reduced volume of returns). As part of an effort to
reduce overhead, enhance margins and respond to the competitive price pressures
in the fashion goods industry, the Company has increased its utilization of off
shore and domestic manufacturing suppliers for sourcing its products.
Men's and Women's Jewelry gross profit decreased $74,000, or 1%, and
$364,000, or 3%, for the quarter and six months ended June 30, 1996,
respectively. Men's Leather Accessories gross profit increased $537,000, or 9%,
and $1,277,000, or 12%, and for the quarter and six months ended June 30, 1996,
respectively. Other Product Lines gross profit, which includes residual sales
of items in the Company's discontinued gift lines, increased $731,000, or over
500%, and $619,000, or 200%, for the quarter and six months ended June 30, 1996,
respectively.
Included in gross profit are adjustments relating to customer returns
which, as noted above, reflect the difference in anticipated and actual returns.
The following table quantifies these adjustments both for the periods ended June
30, 1996 and the comparable periods in fiscal 1995:
(in thousands)
1996 1995 Variance
---- ---- --------
Men's & Women's Jewelry $674 ($990) $1,664
Men's Leather Accessories 72 2 70
Other Product Lines 310 (172) 482
--- ----- ---
Increase (decrease) in Gross Profit $1,056 ($1,160) $2,216
====== ======== ======
Gross profit for Men's and Women's Jewelry decreased for the quarter and six
months ended June 30, 1996 primarily due to an unfavorable sales mix, increased
sales of excess inventory, reduction in the number of retail outlets and
decreased sales volume. Gross profit for Men's Leather Accessories increased for
the quarter and six months ended June 30,1996 attributable to increased sales
volume and markups in the Company's leather lines offset, in part, by decreased
markups in its belt lines. Gross profit for Other Product Lines increased for
the quarter and six months ended June 30, 1996 primarily as a result of the
reduction in reserves established at the end of fiscal 1995 for anticipated
costs associated with the discontinuance of the Company's gift lines. Actual
costs have been less than anticipated. Other Product Lines gross profit,
without benefit of that adjustment, decreased due mainly to the reduction in the
number of factory outlets for the quarter and six months ended June 30, 1996.
Inventory levels decreased $3,448,000, or 12%, from December 31, 1995
primarily as a result of increased sales of excess inventory, discontinuing the
sale and distribution of the men's accessories product line, decreased
production volume and the reduction in the number of retail outlets. These
decreased inventory levels contributed to the reduction in the amount of cash
used in operations.
<PAGE>
Item 2. Management's Discussion and Analysis of the Financial Condition and
Results of Operations (continued)
Selling and Administrative Expenses
- -----------------------------------
Selling and administrative expenses decreased $1,857,000, or 13%, and
$3,130,000, or 11%, for the quarter and six months ended June 30, 1996,
respectively. The decreased costs were attributable primarily to reductions in
compensation costs and related fringe benefits due to personnel reductions,
lower commission rates and the Company's decision not to recognize a bonus
accrual in fiscal 1996. Advertising and promotion expenditures increased
$165,000, or 9%, and decreased $269,000, or 7%, for the quarter and six months
ended June 30, 1996, respectively, primarily as a result of increased national
advertising for the quarter ended June 30, 1996 and reductions in cooperative
advertising and in store markdowns for the six months ended June 30, 1996.
Advertising and promotion expressed as a percentage of net sales remained
unchanged at 7% for the quarter ended June 30, 1996 and decreased to 6% from 7%
for the six months ended June 30, 1996.
Interest Expense
- ----------------
Interest expense increased $8,000, or 2%, and $223,000, or 30%, and for the
quarter and six months ended June 30, 1996 respectively, reflecting higher
average interest rates and interest associated with a capital lease entered into
at year end 1995, offset by a lower average borrowing level.
Provision for Income Taxes
- --------------------------
The Company recognized a tax benefit at an effective tax rate of 25% for
the quarter and six months ended June 30, 1996, which is below the federal
statutory rate of 34%, in order to reflect the anticipated utilization of
alternative minimum tax credit carryfowards from 1995. The Company established a
valuation allowance of $4,764,000 in the fourth quarter of 1995 to reduce the
deferred tax asset to a level management believes more likely than not will be
realized. The current rate reflects no change in the valuation allowance since
year end.
Earning Per Share
- -----------------
For the six months ended June 30, 1996 average shares outstanding used to
compute earnings per share decreased as a result of a greater number of shares
held by the Company's retirement plan which were not allocated to participants.
In accordance with Statement of Position 93-6 "Accounting for Employee Stock
Ownership Plans", these unallocated shares are not classified as outstanding and
are excluded from the calculation of earnings per share.
Liquidity and Capital Resources
- -------------------------------
The Company's working capital decreased $1,338,000 during the six months
ended June 30, 1996.
As is customary in the fashion accessories industry, substantial percentages
of the Company's sales and earnings occur in the months of September, October
and November, during which the Company makes significant shipments of its
products to retailers for sale during the holiday season. As a result,
receivables increase during the year and peak in the fourth quarter. The Company
builds its inventory during the first three quarters of the year to respond to
the holiday season. Cash required is generated from operations and provided by a
revolving credit facility.
The Company has implemented a plan designed to enhance the overall
competitiveness, productivity and efficiency through reduction in overhead costs
and better inventory management. The results through June 1996 reflect increased
cash generated from operations and reduced borrowings.
<PAGE>
Item 2. Management's Discussion and Analysis of the Financial Condition and
Results of Operations (continued)
Cash provided by operations for the six months totaled $1,168,000,
consisting primarily of collections of accounts receivable, improved inventory
management and state and federal tax refunds generated from the 1995 net
operating loss, offset, in part, by the net loss, decreased accounts payable and
other accrued items. Cash used in investing activities was $313,000 for
replacement of used machinery and equipment. Cash used in financing activities
totaled $1,075,000 consisting primarily of repayments under the revolving credit
agreements and advances to the employees' stock ownership plan.
The reductions of the reserves since year end reflect the actual charges
as processed for cash discounts, doubtful accounts, in-store markdowns,
cooperative advertising and gross profit on returns.
On May 24, 1996 the Company obtained new working capital financing from
IBJ Schroder Bank & Trust Company, as agent, for the lenders thereunder (the
"New Lenders"), for up to $25,000,000 with a sublimit of $3,000,000 in letters
of credit (the "New Agreement"). The proceeds of the New Agreement were used, in
part, to repay all but $4 million of the outstanding balance under the previous
facility.
The New Agreement is available through April 1999 and is collateralized by
all of the Company's assets. The New Lenders have a senior lien position on all
assets other than real property, improvements and certain fixtures, in which the
Company's other institutional lenders maintain a senior position to
collateralize a $4,000,000 term loan, as described below, and in which the New
Lenders have a subordinate lien. The New Agreement permits the Company to borrow
against a percentage of eligible accounts receivable and inventory and its loans
bear an interest rate of 1.5% over the New Lenders' prime lending rate. The New
Agreement also contains a facility fee of 1/2% per annum on the unused portion
of the revolving credit facility.
The terms of the New Agreement include covenants requiring the Company to
maintain certain financial ratios for the six months ended June 30, 1996. These
include a leverage ratio and inventory turnovers of 4.0 to 1 and 2 times,
respectively. As of June 30, 1996 the Company was in compliance with these
covenants. The New Agreement also includes covenants pertaining to
profitability, limiting capital expenditures and additional indebtedness. The
Company believes the inventory turnover covenant to be the most restrictive,
requiring minimum inventory turnovers as high as 2.25 times annually. The New
Agreement also prohibits the payment of dividends.
Management believes this credit facility will meet its working capital needs
until May 1999.
In connection with the refinancing, The Chase Manhattan Bank, N.A. and
Fleet National Bank (the "Banks") amended and restated the existing credit
facility (the "Agreement") to provide the Company with a $4,000,000 term loan
(the "Term Loan") in lieu of a like amount of revolving debt. The Term Loan will
be repaid in $200,000 quarterly increments starting in June 1997 with a final
payment of $2,600,000 due May 1999. The Term Loan bears interest at 2.5% over
the Banks' prime lending rate and is collaterialized by a senior lien on real
property, improvements and certain fixtures, and a subordinate lien on all other
assets. The Term Loan also contains an annual facility fee of 2% of the term
loan and a maximum success fee of $450,000 payable as follows; $225,000 on final
maturity with the balance payable subsequently in six equal monthly installments
of $37,500. The facility fee and success fee are being included in selling and
administrative expenses over the life of the loan.
The financing agreements include provisions specifying that a material
adverse effect, as determined by the lenders, in the financial position or
results of operations of the Company is an event of default. As such, the Term
Loan, which would otherwise be classified as long-term, has been classified as
current on the balance sheet at June 30, 1996.
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27.0 Financial data schedule.
(b) Reports on Form 8-K - none
- ----------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act Of 1934, the
registrant has caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
SWANK, INC.
------------
Registrant
- -----------------
Andrew C. Corsini
Senior Vice
President, Treasurer
and Chief
Financial Officer
Date: August 9, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> US Dollars
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Jun-30-1996
<EXCHANGE-RATE> 1
<CASH> 901
<SECURITIES> 0
<RECEIVABLES> 15,940
<ALLOWANCES> 5,683
<INVENTORY> 25,722
<CURRENT-ASSETS> 40,999
<PP&E> 23,903
<DEPRECIATION> 16,873
<TOTAL-ASSETS> 51,652
<CURRENT-LIABILITIES> 27,578
<BONDS> 0
0
0
<COMMON> 1,684
<OTHER-SE> 852
<TOTAL-LIABILITY-AND-EQUITY> 51,652
<SALES> 59,957
<TOTAL-REVENUES> 59,957
<CGS> 35,475
<TOTAL-COSTS> 35,475
<OTHER-EXPENSES> 25,691
<LOSS-PROVISION> 262
<INTEREST-EXPENSE> 966
<INCOME-PRETAX> (2,175)
<INCOME-TAX> (544)
<INCOME-CONTINUING> (1,631)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,631)
<EPS-PRIMARY> (0.10)
<EPS-DILUTED> (0.10)
</TABLE>
