U. S. 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 March 31, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from _______________ to _______________
Commission File Number 0-15910
Control Chief Holdings, Inc.
(Exact name of small business issuer as specified in its charter)
New York 16-0955704
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
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P.O. Box 141, 200 Williams Street, Bradford, Pennsylvania 16701
(Address of principal executive offices)
(814) 368-4132
(Issuer's telephone number)
Not Applicable
(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 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 [ ] No [X]
APPLICABLE ONLY TO CORPORATE ISSUERS
The number of shares outstanding of issuer's Common Stock, par value $.50 per share, as of March 31, 1999 was 999,739 shares.
Transitional Small Business Format (Check one): Yes [ ] No [X]
Control Chief Holdings, Inc. and Subsidiary
Table of Contents
Part I Financial Information
Item 1 Financial Statements
Consolidated Balance Sheets
Consolidated Statements of Operations and Retained Earnings
Consolidated Statements of Cash Flows
Notes to Financial Statements
Item 2 Management's Discussion and Analysis or Plan of Operation
Part II Other Information
Item 6 Exhibits and Reports on Form 8-K
Signatures
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Part I - Financial Information
Item 1. Financial Statements
Control Chief Holdings, Inc. and Subsidiary Consolidated Balance Sheets
[CAPTION]
March 31, June 30,
1999 1998
---------- ----------
(Unaudited)
Assets
Current assets
Cash and cash equivalents $ 746,263 $ 22,067
Accounts receivables, less allowance for
doubtful accounts of $49,520 and $50,000 957,309 1,624,073
Inventories 1,556,345 1,639,008
Other current assets 78,782 284,405
---------- ----------
Total current assets 3,338,699 3,569,553
---------- ----------
Equipment and leasehold improvements, net 705,549 668,818
---------- ----------
Other assets 8,073 8,073
---------- ----------
Total assets $4,052,321 $4,246,444
---------- ----------
---------- ----------
Liabilities and Stockholders' Equity
Current liabilities
Short-term debt $ - $ 150,000
Current maturities of long-term debt 170,755 170,755
Accounts payable trade 267,722 547,266
Accrued items 431,172 484,082
---------- ----------
Total current liabilities 869,649 1,352,103
---------- ----------
Long-term debt, less current maturities 117,834 260,317
---------- ----------
Deferred income taxes 28,864 29,664
---------- ----------
Stockholders' equity
Common stock, $.50 par value, authorized
5,000,000 shares,issued 1,014,095 shares,
of which 14,356 shares at March 31, 1999
and 9,263 shares at June 30, 1998 were
held in the treasury 507,048 507,048
Capital in excess of par value 1,120,586 1,120,586
Retained earnings 1,469,659 1,013,877
---------- ----------
3,097,293 2,641,511
Less treasury shares at cost 61,319 37,151
---------- ----------
Total stockholders' equity 3,035,974 2,604,360
---------- ----------
$4,052,321 $4,246,444
---------- ----------
---------- ----------
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[FN]
See accompanying notes to financial statements.
Control Chief Holdings, Inc. and Subsidiary
Consolidated Statements of Operations and Retained Earnings
(Unaudited)
[CAPTION]
Three Months Ended Nine Months Ended
March 31, March 31,
1999 1998 1999 1998
---------- ---------- ---------- ----------
Revenues
Net sales $1,438,224 $2,298,016 $6,058,939 $6,320,983
Gain on sale
of land and
building - - - 127,088
Other income 8,786 2,387 16,426 37,951
---------- ---------- ---------- ----------
Total revenues 1,447,010 2,300,403 6,075,365 6,486,022
---------- ---------- ---------- ----------
Costs and expenses
Cost of products
sold 631,662 1,294,391 3,166,790 3,480,511
Selling expense 359,427 373,363 1,092,204 991,384
General and
administrative 240,583 241,755 718,321 768,247
Research and
development 72,953 48,659 213,381 156,075
Interest expense 3,677 13,278 21,600 42,124
---------- ---------- ---------- ----------
Total costs and
expenses 1,308,302 1,971,446 5,212,296 5,438,341
---------- ---------- ---------- ----------
Earnings before income
taxes 138,708 328,957 863,069 1,047,681
Federal and state income
taxes
Currently payable 59,000 139,200 358,100 444,400
Deferred (300) (3,500) (800) (6,700)
---------- ---------- ---------- ----------
58,700 135,700 357,300 437,700
---------- ---------- ---------- ----------
Net earnings 80,008 193,257 505,769 609,981
Retained earnings at
beginning of period 1,389,651 857,385 1,013,877 481,239
Cash dividends paid - (40,571) (49,987) (81,149)
---------- ---------- ---------- ----------
Retained earnings at
end of period $1,469,659 $1,010,071 $1,469,659 $1,010,071
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
Basic earnings per
common share $ .08 $ .19 $ .51 $ .60
Dividends paid per
common share $ - $ .04 $ .05 $ .08
Weighted average number of
common shares outstanding 999,739 1,013,965 1,000,348 1,013,965
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[FN]
See accompanying notes to financial statements.
Control Chief Holdings, Inc. and Subsidiary
Consolidated Statements of Cash Flows
(Unaudited)
[CAPTION]
Nine Months Ended
March 31,
1999 1998
---------- ----------
Cash flows from operating activities
Net earnings $ 505,769 $ 609,981
Adjustments to reconcile net earnings
to net cash provided by
(used in) operating activities:
Depreciation and amortization 64,190 69,746
Deferred income taxes (800) (6,700)
Gain on sale of land and building - (127,088)
Change in assets and liabilities:
(Increase) decrease in receivables 666,764 (422,659)
(Increase) decrease in inventories 82,663 (520,253)
Decrease in other current assets 205,623 114,966
Increase (decrease) in accounts
payable and accruals (332,454) 229,085
---------- ----------
Net cash provided by (used in)
operating activities 1,191,755 (52,922)
---------- ----------
Cash flows from investing activities
Proceeds from sale of land and building - 150,000
Purchase of equipment and leasehold
improvements (100,921) (131,873)
Receipts of principal on note receivable - 1,284
---------- ----------
Net cash provided by (used in)
investing activities (100,921) 19,411
---------- ----------
Cash flows from financing activities
Net borrowings (repayments) of
short-term debt (150,000) 170,000
Net repayments of long-term debt (142,483) (140,604)
Purchase of treasury stock (24,168) -
Purchase and retirement of
fractional common shares - (1,844)
Dividends paid (49,987) (81,149)
---------- ----------
Net cash used in financing
activities (366,638) (53,597)
---------- ----------
Net increase (decrease) in cash 724,196 (87,108)
Cash at beginning of period 22,067 132,007
Cash at end of period $ 746,263 $ 44,899
---------- ----------
---------- ----------
Cash paid during the period for:
Interest $ 21,600 $ 42,124
Income taxes 75,492 175,131
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[FN]
See accompanying notes to financial statements.
Control Chief Holdings, Inc. and Subsidiary
Notes to Financial Statements
1. Basis of Presentation
The financial statements include the accounts of Control Chief Holdings, Inc. and its wholly-owned subsidiary, Control Chief Corporation, (the "Company"). All significant intercompany accounts are eliminated upon consolidation. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, the disclosure of contingent a reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial information for the periods indicated, have been included. Interim results are not necessarily indicative of results for a full year.
The financial statements and notes are presented as permitted by Form 10-QSB, and do not contain certain information included in the Company's annual financial statements and notes. Accordingly, these statements should be read in conjunction with the consolidated financial statements and notes thereto appearing in the annual report of the Company on Form 10-KSB for the fiscal year ended June 30, 1998.
2. Earnings Per Common Share
In 1997, the Financial Accounting Standards Board (FASB) issued Statement No. 128, "Earnings per Share." Statement No. 128 replaced the calculation of primary and fully diluted earnings per share with basic and diluted earnings per share. Unlike primary earnings per share, basic earnings per share excludes any dilutive effects of options, warrants and convertible securities. Diluted earnings per share is very similar to the previously defined fully diluted earnings per share. Although the Company has issued stock equivalents in the form of stock options, the dilutive earnings per share amounts would be the same as basic earnings per common share.
3. Cash Dividends Paid
The Board of Directors of the Company approved a cash dividend totaling $49,987 ($.05 per share) payable on September 25, 1998 to holders of record at the close of business on September 7, 1998.
Part I - Financial Information
Item 2. Management's Discussion and Analysis or Plan of Operations
The following discussion and analysis may be understood more fully by reference to the consolidated financial statements, notes to the consolidated financial statements, and management's discussion and analysis or plan of operations contained in the Control Chief Holdings, Inc. and Subsidiary annual report on Form 10-KSB for the fiscal year ended June 30, 1998.
General
Control Chief Holdings, Inc. ("the Company") functions as a holding company and is the sole shareholder of Control Chief Corporation ("Control Chief"). Control Chief designs, engineers and produces remote control devices for material handling equipment and other industrial applications. These controls use either radio or infrared waves as communications media to transmit control data from portable units to receivers mounted on various types of apparatus. All models of products are microprocessor-based systems. Remote controls provide the customer a cost-effective means to achieve greater operational safety and flexibility. These devices are utilized worldwide in concert with various material handling equipment, industrial machines, process equipment and mobile apparatus. Control Chief markets its products through a network of independent manufacturers' representatives located in key geographical centers throughout the United States, Canada, and Central and South America. Additionally, products are sold through direct efforts, distributors, private labeling agreements and licenses.
Forward-Looking Information
Management's Discussion and Analysis or Plan of Operation includes certain forward-looking statements which reflect management's current views with respect to future operating performance, ongoing cash requirements, and the Year 2000 Issue. The words "believe," "expect," "anticipate" and similar expressions identify forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties which could cause actual results to differ materially from historical results or those anticipated. Factors that could or contribute to such differences include those discussed elsewhere herein. Readers are cautioned not to place undue reliance on these forward- looking statements.
Risk Factors That May Affect Future Results
The Company's results of operations may be affected in the future by a variety of factors including: competitive pricing pressures, new product offerings by the Company and competitors, new technologies, product cost changes, changes in the overall economic climate, availability of raw materials, and product mix. The Company experiences competition for its remote controls from several suppliers of similar products. Throughout the world there are numerous remote control manufacturers. The Company competes principally on the basis of technology and quality. Worldwide competition is extremely price conscious with many companies entering and exiting the market. While significant market shares have not fluctuated with the traditional suppliers to the market, new entrants have depressed prices. The Company believes its products are competitively priced taking into consideration the Company's reputation as a long time, high-quality manufacturer of reliable, durable state of the art devices.
Results of Operations
The following table sets forth certain financial data, as a percentage of total revenues, for the three and nine month periods ended March 31, 1999 and 1998.
Three Months Ended Nine Months Ended
March 31, March 31,
1999 1998 1999 1998
------ ------ ------ ------
Revenues
Net Sales 99.4% 99.9% 99.7% 97.5%
Gain on sale of land
and building - - - 2.0%
Other income 0.6% 0.1% 0.3% 0.5%
------ ------ ------ ------
Total revenues 100.0% 100.0% 100.0% 100.0%
Costs and expenses
Cost of products sold 43.7% 56.3% 52.1% 53.7%
Selling expense 24.8% 16.2% 18.0% 15.3%
General and
administrative 16.6% 10.5% 11.8% 11.8%
Research and development 5.0% 2.1% 3.5% 2.4%
Interest expense 0.3% 0.6% 0.4% 0.6%
------ ------ ------ ------
Total costs and expenses 90.4% 85.7% 85.8% 83.8%
------ ------ ------ ------
Earnings before income taxes 9.6% 14.3% 14.2% 16.2%
Provision for income taxes 4.1% 5.9% 5.9% 6.8%
------ ------ ------ ------
Net earnings 5.5% 8.4% 8.3% 9.4%
------ ------ ------ ------
------ ------ ------ ------
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NET SALES. Net sales decreased to $1,438,224 for the three months ended March 1999 from $2,298,016 for the three months ended March 1998, a decrease of 37.4%. For the nine-month period ended March 1999, net sales decreased $262,044 or 4.1% as compared to the nine-month period for the prior year. Demand for the Company's products reflected a decrease for the third quarter of fiscal 1999. Sales and demand for the Company's spare parts and services remained fairly constant.
COST OF PRODUCTS SOLD AND GROSS MARGIN. Cost of products sold decreased by $662,729 for the three months ended March 1999 as compared to the same period last year. For the nine-month period ended March 1999, cost of products sold decreased by $313,721 or 9.0% as compared to the nine-month period last year. This overall decrease in the cost of products sold is consistent with the overall decrease in net sales for the comparable periods and management's cost reduction measures. Gross margin decreased for the to $806,562 from $1,003,625 for the three months ended March 1998, due to the reduction in revenues in the current period. Gross margin, expressed as a percentage of revenues, increased 12.4% from 43.7% for March 1998 to 56.1% for March 1999. For the nine-month period ended March 1999, the gross margin percentage increased by 2.8% from 44.9% in 1998 to 47.7% in 1999. The change in the gross margin percentage is attributable to the product mix, price competition and cost reduction measures.
WARRANTIES. The Company's products are generally under warranty against defects in material and workmanship, the duration of which generally does not extend beyond one year. Actual experience has indicated that the amount of warranty expense has not fluctuated significantly, and the estimated future warranty obligation relating to the Company's products would not have a material effect on the Company's financial position or results of operations. Therefore, the Company has charged warranty expense against earnings as the expense is incurred. Because the Company has not accrued for warranty expense, it will incur expenses associated with prior sales which are not presently reflected in the Company's financial statements. If the Company were to have accrued for estimated warranty expense instead of deducting the current period expenses, the difference would have been less than 1% of the net earnings of the Company for the periods reported. Warranty costs of approximately $14,500 and $16,400 for the three months ended March 31, 1999 and 1998, respectively, are included in the costs of products sold. Warranty costs of approximately $40,700 and $44,600 for the nine months ended March 31, 1999 and 1998, respectively, are included in the costs of products sold during those periods.
SELLING, GENERAL AND ADMINISTRATIVE COSTS. Selling, general and administrative costs reflected a slight decrease of $15,108 for the three months ended March 1999 as compared to the same period last year. These costs increased as a percentage of net sales from 26.8% in 1998 to 41.7% in 1999, due principally to the reduction in revenues in the current period and relatively fixed salaries and other administrative costs. For the nine-month period ended March 1999, selling, general and adminstrative costs increased by $50,594 as compared to the same nine- month period last year. Overall, for the nine-month periods ended March 31, selling, general and administrative costs increased as a percentage of net sales from 27.8% in 1998 to 29.9% in 1999.
RESEARCH AND DEVELOPMENT COSTS. Research and development costs increased by $24,294 or 49.9% for the three months ended March 1999 as compared to the same period last year. For the nine-month period ended March 1999, research and development costs increased by $57,306 or 36.7% as compared to the same nine-month period last year. This increase reflects the Company's continuing commitment to invest funds in research and development to stay abreast of technological changes, enhance its current products and develop new product lines. It is the Company's policy not to release public information relating to its research and development programs until new or enhanced products are ready for the market. The premature public notification of product development, in the opinion of management, stands to potentially reduce the anticipated return on its research and development investment by notifying competitors of a significant portion of the Company's marketing strategy.
INTEREST EXPENSE. Interest expense decreased by $9,601 for the three months ended March 1999 as compared to the same period last year. Interest expense decreased by $20,524 for the nine months ended March 1999. This decrease reflects the overall reduction in the Company's short-term debt due to an improvement in the Company's working capital and cash flow, and the decrease in long-term debt due to normal and additional principal payments.
EARNINGS BEFORE INCOME TAXES. Earnings before income taxes were $138,708 for the three months ended March 1999 as compared to $328,957 for the three months ended March 1998, representing a decrease of $190,249 or 57.8%. Earnings before income taxes were $863,069 for the nine months ended March 1999 as compared to $1,047,681 for the nine months ended March 1998. Included in the pretax earnings for 1998 is a gain in the amount of $127,088 from the sale, in July 1997, of the Company's facility located in Lewis Run, Pennsylvannia. Excluding the gain, earnings before income taxes reflect a decrease of $57,524, or 6.2%, for the nine months ended March 1999 over 1998.
INCOME TAXES. The Company's effective income tax rate was 42.3% and 41.4% for the three and nine-month periods ended March 1999 as compared to 41.3% and 41.8% for the three and nine-month periods ended March 1998.
NET EARNINGS. Overall earnings, after income taxes, were $80,008 and $505,769 for the three and nine-month periods ended March 1999 as compared to earnings, after income taxes, of $193,257 and $609,981 for the three and nine-month periods ended March 1998.
EARNINGS PER COMMON SHARE. The Company's earnings per common share were $.08 and $.51 for the three and nine-month periods ended March 1999, which represents a decrease of $.11 and $.09 per common share over the three and nine-month periods ended March 1998, respectively.
Liquidity, Capital Resources and Financial Condition
The Company has a $750,000 line of credit with National City Bank of Pennsylvania (the "Bank"). The revolving credit line is collateralized by substantially all of the assets of the Company, with a variable interest rate equal to the Bank's prevailing prime rate. The line of credit is used to finance accounts receivable and inventory of the Company. At March 31, 1999, there was no borrowing outstanding under this financing arrangement. The line of credit is subject to an annual review by the Bank each November.
In addition to the line of credit, the Company has a commercial term loan, dated January 1997, in the original amount of $650,000 with National City Bank. The term loan bears interest at 8.47% and is being repaid in forty-eight (48) monthly principal and interest installments of $16,050. At March 31, 1999, a total of $281,258 was outstanding under this term loan.
The Company also has a term loan with GMAC Financing. The balance outstanding at March 31, 1999 was $7,331.
The Company's liquidity improved during the period. At March 31, 1999, the Company had net working capital of $2,469,050, compared to $2,217,450 at June 30, 1998. The Company's current ratio also improved during the nine months of fiscal 1999, with current assets at 3.84 times current liabilities at March 31, 1999, compared to 2.64 at June 30, 1998.
During the nine-month period ended March 1999, the Company's cash expenditures for equipment totaled $100,921. In addition, during the nine months of fiscal 1999, the Company repaid $292,483 of bank indebtedness, paid cash dividends totaling $49,987, and purchased common stock for its treasury in the amount of $24,168.
Current financial resources, including working capital and the existing line of credit, and anticipated funds from operations are expected to be sufficient to meet cash requirements throughout fiscal 1999, including scheduled long-term debt repayment and planned capital expenditures. There can be no assurance, however, that unplanned capital replacement or other future events will not require the Company to seek additional debt or equity financing and, if so required, that it will be available on terms acceptable to the Company.
During the nine months ended March 1999, the Company's net cash provided by operations was $1,191,755 as compared to net cash used in operations of $52,922 for the nine months ended March 1998.
Impact of Year 2000 Issue
The year 2000 issue is the result of computer programs being written using two digits rather than four to define the applicable year. As a result, any of the Company's computer programs that have time-sensitive software may recognize a date using "00" as the year 1900 rather than the year 2000. This could result in a system failure or miscalculations causing disruptions of operations, including among other things, a temporary inability to process transactions, prepare invoices, or engage in similar normal business activities.
The Company's management has directed its computer and communication systems group ("the group") to review, assess, and address the potential problems within the Company's operations which could result from the Year 2000 century change. The Company has not hired outside consultants to assess the Company's Year 2000 compliance. The group has started to coordinate the identification of, and will coordinate the implementation of, changes to computer hardware and software applications necessary to insure Year 2000 compliance and the integrity and reliability of the Company's informational, operational and manufacturing systems. The group has also started to coordinate the identification of potential Year 2000 problems related to the Company's non-informational technology systems and material third parties.
Concurrently, the Company has completed implementation of a new company-wide information system. This system addresses and solves the great majority of the Company's Year 2000 internal operational issues. The new computer system has replaced the Company's mainframe computer. The new system has also replaced the majority of the Company's information technology ("IT") in its internal operations, which includes applications used in manufacturing, payroll processing, client order processing, inventory management and various administrative functions. The costs of these upgrades and conversions, approximately $140,000 to date and estimated to total $165,000 in the aggregate, are not included in the Company's current or future estimated Year 2000 costs as these upgrades and conversions were planned prior to its Year 2000 compliance plan and their implementation has not been accelerated because of the Year 2000 problem.
It is estimated that the group is approximately 95% complete as to its assessment of the Company's IT systems and that costs to complete its final assessment, remediation and testing of these IT systems are immaterial with respect to the Company's overall operating costs. The Company does not separately track the internal costs incurred for the Year 2000 project and that such costs are principally the related payroll costs for its information systems group. The Company estimates that the cost of this phase will not exceed $10,000.
The assessment phase with respect to non-informational technology systems is approximately 70% complete with final assessment plans and any appropriate remediation and testing scheduled to be completed by June 30, 1999. The group has reviewed and tested the embedded chips and microprocessors in the products it has previously manufactured and in the products it currently manufactures and has determined that these do not create a Year 2000 problem. The Company in response to its customers' requests, issues a standard 2000 letter. The group has not concluded its final assessment of embedded chips in its manufacturing equipment and of other non-informational technology systems but does not anticipate any major date-sensatvie problems. It is estimated that the cost to date of this phase of its compliance plan has not exceeded $2,000. Further, the Company does not expect to incur material costs to complete this phase of its plan.
The group is approximately 50% complete as to the assessment of Year 2000 compliance by material third parties. The group has received written assurance from its financial institution that its systems will be Year 2000 compliant. The group has identified its other material third parties, such as customers, major suppliers, manufacturers' representatives and utility and communication companies, that might have a material adverse effect on the Company's manufacturing business, results of operations and financial position if they are not Year 2000 compliant. The group has completed and mailed a questionaire to survey those third parties as to their Year 2000 readiness. Approximately 500 requests were sent during the first calendar quarter of 1999. To date, the Company has received approximately a 47% response from the material third parties. These responses have indicated that these third parties were either Year 2000 compliant or in the process of completing their compliance plans and testing. A follow up questionaire will be sent during the second quarter of calendar year 1999. In addition, alternative suppliers will be identified for those vendors not expected to be Year 2000 compliant. Costs to date have been immaterial with respect to the Company's overall operating expenditures. Additional costs to complete this phase are not expected to exceed approximately $5,000.
Should the Company have a systems failure due to the century change, or a material third party with whom the Company deals with or relies upon to deliver materials for manufacturing be unable to assure Year 2000 compliance or timely supply materials, the Company believes that the most significant impact would likely be a delay of thirty to ninety days beyond scheduled delivery dates of its custom products. The Company anticipates that it would be able to support its spare parts and repair business for approximately thirty days without major interruptions based upon historical demand and inventory quantities. If significant numbers of the Company's customers are not Year 2000 compliant, it may reduce or delay such customer demands for the Company's products. To the extent the Company discovers any Year 2000 problems, the Company may incur additional significant costs in order to remedy such deficiencies.
The group has not yet drafted a formal contingency plan with respect to the Year 2000 problem. The group intends to complete a formal contingency plan to present to the Company's directors and management during the third calendar quarter of 1999. It is anticipated that this plan will primarily address how the Company should prepare for problems that may result from material third parties not being Year 2000 compliant.
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K
a) Exhibit 27 Financial Data Schedule.
b) The Company filed no Reports on Forms 8-K during the reporting period.
Signatures
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.
Date: May 14, 1999 By: \s\ Douglas S. Bell
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Douglas S. Bell
Chairman of the Board,
Chief Executive Officer and
President
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| ARTICLE 5 |
| This schedule contains summary financial information extracted from SEC Form 10-QSB and is qualified in its entirety by reference to such financial statements. |
| PERIOD TYPE: 9 MOS |
| FISCAL YEAR END: JUN 30 1999 |
| PERIOD END: MAR 31 1999 |
| CASH: 746,263 |
| SECURITIES: 0 |
| RECEIVABLES: 1,006,829 |
| ALLOWANCES: 49,520 |
| INVENTORY: 1,556,345 |
| CURRENT ASSETS: 3,338,699 |
| PP&E: 1,975,074 |
| DEPRECIATION: 1,269,525 |
| TOTAL ASSETS: 4,052,321 |
| CURRENT LIABILITIES: 869,649 |
| BONDS: 0 |
| PREFERRED MANDATORY: 0 |
| PREFERRED: 0 |
| COMMON: 507,048 |
| OTHER SE: 2,590,245 |
| TOTAL LIABILITY AND EQUITY: 4,052,321 |
| SALES: 6,058,939 |
| TOTAL REVENUES: 6,075,365 |
| CGS: 3,166,790 |
| TOTAL COSTS: 3,166,790 |
| OTHER EXPENSES: 2,023,906 |
| LOSS PROVISION: 0 |
| INTEREST EXPENSE: 21,600 |
| INCOME PRETAX: 863,069 |
| INCOME TAX: 357,300 |
| INCOME CONTINUING: 505,769 |
| DISCONTINUED: 0 |
| EXTRAORDINARY: 0 |
| CHANGES: 0 |
| NET INCOME: 505,769 |
| EPS PRIMARY: .51 |
| EPS DILUTED: .51 |