-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Tv14mEvxD+I3v6V4Lwcu4tE/JURQxLxI7rkdTGzsJqDSmLPJsrKYVJb6ellhsDuD PSKHsyUNNpcwimZ+l0Hmfg== 0000892569-98-001937.txt : 19980703 0000892569-98-001937.hdr.sgml : 19980703 ACCESSION NUMBER: 0000892569-98-001937 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980531 FILED AS OF DATE: 19980702 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEADE INSTRUMENTS CORP CENTRAL INDEX KEY: 0001032067 STANDARD INDUSTRIAL CLASSIFICATION: OPTICAL INSTRUMENTS & LENSES [3827] IRS NUMBER: 952988062 STATE OF INCORPORATION: DE FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-22183 FILM NUMBER: 98660230 BUSINESS ADDRESS: STREET 1: 6001 OAK CANYON STREET 2: 6001 OAKCANYON CITY: IRVINE STATE: CA ZIP: 92620-4205 BUSINESS PHONE: 7144511450 MAIL ADDRESS: STREET 1: 6001 OAK CANYON CITY: IRVING STATE: CA ZIP: 92620-4205 10-Q 1 FORM 10-Q PERIOD END MAY 31, 1998 1 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED MAY 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER 0-22183 ------------------------ MEADE INSTRUMENTS CORP. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 95-2988062 (STATE OR OTHER JURISDICTION (I.R.S. EMPLOYER OF INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.) 6001 OAK CANYON IRVINE, CA 92620 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (949) 451-1450 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 [ ] Number of shares of common stock outstanding as of July 1, 1998 is 7,875,500 ================================================================================ 2 MEADE INSTRUMENTS CORP. TABLE OF CONTENTS
PAGE NO. -------- PART I -- FINANCIAL INFORMATION Balance Sheets (Unaudited) -- May 31, 1998 and February 28, 1998............................................... 3 Statements of Income (Unaudited) -- Three Months Ended May 31, 1998 and 1997...................................... 4 Statements of Cash Flows (Unaudited) -- Three Months Ended May 31, 1998 and 1997.................................. 5 Notes to Financial Statements (Unaudited)................. 6 Management's Discussion and Analysis of Financial Condition and Results of Operations.................... 7 PART II -- OTHER INFORMATION Other Information......................................... 10 SIGNATURES.................................................. 11 EXHIBIT INDEX............................................... 12
2 3 MEADE INSTRUMENTS CORP. BALANCE SHEETS (UNAUDITED) ASSETS
MAY 31, FEBRUARY 28, 1998 1998 ----------- ------------ Current assets: Cash...................................................... $ 2,000 $ 1,649,000 Accounts receivable, less allowance for doubtful accounts of $505,000 at May 31, 1998 and $485,000 at February 28, 1998............................................... 7,885,000 6,024,000 Inventories............................................... 13,941,000 11,910,000 Deferred income taxes..................................... 1,424,000 1,424,000 Prepaid expenses and other current assets................. 491,000 239,000 ----------- ----------- Total current assets.............................. 23,743,000 21,246,000 Other assets................................................ 303,000 361,000 Property and equipment, net of accumulated depreciation of $1,487,000 at May 31, 1998 and $1,316,000 at February 28, 1998...................................................... 3,644,000 2,985,000 ----------- ----------- $27,690,000 $24,592,000 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Bank line of credit....................................... $ 2,508,000 Accounts payable.......................................... 2,068,000 $ 1,326,000 Accrued liabilities....................................... 3,508,000 2,897,000 Income taxes payable...................................... 93,000 1,606,000 ----------- ----------- Total current liabilities......................... 8,177,000 5,829,000 ----------- ----------- Long-term capital lease obligations......................... 287,000 341,000 ----------- ----------- Commitments and contingencies Stockholders' equity: Preferred stock; 1,000,000 shares authorized, none issued and outstanding at May 31, 1998........................ Common stock, $0.01 par value, 20,000,000 shares authorized; 7,875,500 shares issued and outstanding at May 31, 1998 and February 28, 1998, respectively....... 79,000 79,000 Additional paid-in capital.................................. 21,445,000 21,445,000 Retained earnings........................................... 5,457,000 4,903,000 ----------- ----------- 26,981,000 26,427,000 Unearned ESOP shares........................................ (7,755,000) (8,005,000) ----------- ----------- Total stockholders' equity........................ 19,226,000 18,422,000 ----------- ----------- $27,690,000 $24,592,000 =========== ===========
See accompanying notes to financial statements. 3 4 MEADE INSTRUMENTS CORP. STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED MAY 31, -------------------------- 1998 1997 ----------- ----------- Net sales................................................... $14,821,000 $12,735,000 Cost of sales............................................... 8,741,000 8,526,000 ----------- ----------- Gross profit.............................................. 6,080,000 4,209,000 Selling expenses............................................ 2,873,000 1,414,000 General and administrative expenses......................... 1,947,000 1,369,000 Research and development expenses........................... 245,000 194,000 ----------- ----------- Operating income.......................................... 1,015,000 1,232,000 Interest expense............................................ 42,000 594,000 ----------- ----------- Income before income taxes................................ 973,000 638,000 Provision for income taxes.................................. 419,000 262,000 ----------- ----------- Net income.................................................. 554,000 376,000 Deduction for accretion of redeemable preferred stock....... 374,000 ----------- ----------- Net income available to common stockholders................. $ 554,000 $ 2,000 =========== =========== Net income per share available to common stockholders -- basic and diluted......................... $ 0.08 $ 0.00 =========== =========== Weighted average number of shares outstanding -- basic...... 6,807,000 5,424,000 =========== =========== Weighted average number of shares outstanding -- diluted.... 6,954,000 5,424,000 =========== ===========
See accompanying notes to financial statements. 4 5 MEADE INSTRUMENTS CORP. STATEMENTS OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED MAY 31, -------------------------- 1998 1997 ----------- ----------- Cash flows from operating activities: Net income.................................................. $ 554,000 $ 376,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization............................. 192,000 143,000 Debt issuance costs....................................... 400,000 ESOP contribution......................................... 300,000 250,000 Changes in assets and liabilities: Increase in accounts receivable........................ (1,861,000) (1,415,000) Decrease (increase) in inventories..................... (2,031,000) 547,000 Decrease (increase) in prepaid expenses and other current assets........................................ (252,000) 61,000 Decrease in other assets............................... 37,000 57,000 (Decrease) increase in accounts payable................ 742,000 (29,000) Increase in accrued liabilities........................ 566,000 111,000 Decrease in income taxes payable....................... (1,513,000) (296,000) ----------- ----------- Net cash provided by (used in) operating activities..................................... (3,266,000) 205,000 ----------- ----------- Cash flows from investing activities: Capital expenditures...................................... (830,000) (137,000) ----------- ----------- Net cash used in investing activities............. (830,000) (137,000) ----------- ----------- Cash flows from financing activities: Payments on long-term debt................................ (8,183,000) Net borrowings (payments) under bank line of credit....... 2,508,000 (2,860,000) Net proceeds from the issuance of common stock............ 17,913,000 Redemption of preferred stock............................. (6,864,000) Payments under capital lease obligations.................. (59,000) (52,000) ----------- ----------- Net cash provided by (used in) financing activities..................................... 2,449,000 (46,000) ----------- ----------- Net increase (decrease) in cash............................. (1,647,000) 22,000 Cash at beginning of period................................. 1,649,000 4,000 ----------- ----------- Cash at end of period....................................... $ 2,000 $ 26,000 =========== =========== Supplemental disclosures of cash flow information: Non-cash financing activities: Accretion of redeemable preferred stock..................... $ 374,000
See accompanying notes to financial statements. 5 6 MEADE INSTRUMENTS CORP. NOTES TO FINANCIAL STATEMENTS (UNAUDITED) A. The financial statements have been prepared by the Company and are unaudited. In management's opinion, the information and amounts furnished in this report reflect all adjustments (consisting of normal recurring adjustments) considered necessary for the fair presentation of the financial position and results of operations for the interim periods presented. These financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for the fiscal year ended February 28, 1998. The Company has experienced, and expects to continue to experience, substantial fluctuations in its sales, gross margins and profitability from quarter to quarter. Factors that influence these fluctuations include the volume and timing of orders received, changes in the mix of products sold, market acceptance of the Company's products, competitive pricing pressures, the Company's ability to meet increasing demand and delivery schedules and the timing and extent of research and development expenses, marketing expenses and product development expenses. In addition, a substantial portion of the Company's net sales and operating income typically occur in the third quarter of the Company's fiscal year primarily due to disproportionately higher customer demand for less-expensive telescopes during the holiday season. The results of operations for the first quarter ended May 31, 1998 and 1997, respectively, are not necessarily indicative of the operating results for the entire fiscal year. B. In April 1997 the Company completed an initial public offering (the "Offering") of 3,875,500 shares of common stock (including the underwriter's over-allotment option). The Offering included 2,875,500 newly issued shares of common stock and 1,000,000 shares of common stock held by the Company's then preferred stockholder. The Offering raised approximately $17.9 million (after underwriting discounts and Offering expenses). Net proceeds from the Offering were used to redeem approximately $6.9 million of outstanding Series A preferred stock, including accrued dividends, and to repay approximately $11.0 million of existing bank term and revolving debt. Prior to the closing of the Offering, the Company merged with and into a wholly-owned Delaware subsidiary, with the Delaware subsidiary being the surviving corporation. All of the outstanding shares of the Series A and Series B common stock and Series A preferred stock of the Company were exchanged on a ratio of one for one with shares of Series A and Series B common stock and Series A preferred stock of the Delaware subsidiary as part of the merger. All shares of Series A and Series B common stock were converted into shares of common stock upon the completion of the Offering. C. The write-off of approximately $400,000 of previously capitalized debt issuance costs, related to bank term debt that was retired with the proceeds of the Offering in April 1997, is presented as a component of interest expense for the three months ended May 31, 1997. D. The composition of inventories is as follows:
MAY 31, FEBRUARY 28, 1998 1998 ----------- ------------ Raw materials..................................... $ 3,880,000 $ 2,780,000 Work-in-process................................... 1,725,000 1,819,000 Finished goods.................................... 8,336,000 7,311,000 ----------- ----------- $13,941,000 $11,910,000 =========== ===========
6 7 MEADE INSTRUMENTS CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS The nature of the Company's business is seasonal. Historically, sales in the third quarter have been higher than sales achieved in the other three fiscal quarters of the year. Thus, expenses and, to a greater extent, operating income vary by quarter. Caution, therefore, is advised when appraising results for a period shorter than a full year, or when comparing any period other than to the same period of the previous year. FIRST QUARTER ENDED MAY 31, 1998 COMPARED TO FIRST QUARTER ENDED MAY 31, 1997 Net sales for the first quarter of fiscal 1999 were $14.8 million compared to $12.7 million for the first quarter of fiscal 1998, an increase of 16.5%. This increase was primarily due to a combined increase of approximately $3.7 million in net sales of LX Series telescopes and ETX telescopes, offset by a decrease of approximately $2.0 million in net sales of less-expensive imported telescopes. During the quarter ended May 31, 1997, sales of less-expensive imported telescopes were especially strong due to interest in the Hale-Bopp comet. Gross profit increased from $4.2 million (33.1% of net sales) for the first quarter of fiscal 1998 to $6.1 million (41.0% of net sales) for the first quarter of fiscal 1999, an increase of 45.2%. The increase in gross profit as a percent of net sales was principally due to the increased sales of more profitable lines of domestically produced products. Selling expenses increased from $1.4 million (11.0% of net sales) for the first quarter of fiscal 1998 to $2.9 million (19.6% of net sales) for the first quarter of fiscal 1999, an increase of 107.1%. This increase over the first quarter of fiscal 1998 principally reflects: (i) higher advertising expenses associated with the Company's expanding national print advertising campaign begun during the first quarter of fiscal 1999 and (ii) higher shipping costs, sales-related personnel expenses and other selling expenditures to support growing sales volume for fiscal 1999. General and administrative expenses increased from $1.4 million (11.0% of net sales) for the first quarter of fiscal 1998 to $1.9 million (12.8% of net sales) for the first quarter of fiscal 1999, an increase of 35.7%. This increase over the first quarter of fiscal 1998 was generally due to increases in personnel related costs, consulting and professional fees and increases across a broad category of expenses to support higher sales volume during the first quarter of fiscal 1999. Research and development expenses increased from $194,000 (1.5% of net sales) for the first quarter of fiscal 1998 to $245,000 (1.7% of net sales) for the first quarter of fiscal 1999, an increase of 26.3%. This increase was due to increased engineering personnel costs and related consulting expenses. Interest expense decreased from $594,000 for the first quarter of fiscal 1998 to $42,000 for the comparable period of fiscal 1999, a decrease of 92.9%. Included in interest expense for the quarter ended May 31, 1997 is approximately $400,000 of additional interest expense recognized pursuant to the write-off of previously capitalized debt issuance costs related to bank term debt that was retired with the proceeds of the Offering in April 1997. Interest expense for the first quarter of fiscal 1999 decreased 78.4% compared to the first quarter of fiscal 1998 (before the write-off of $400,000 of debt issuance costs), due to lower average borrowings on the Company's line of credit and the elimination of the long-term bank debt that was retired with the proceeds of the Offering. The provision for income taxes was $262,000 for the first quarter of fiscal 1998, or 41.1% of income before income taxes, compared to $419,000, or 43.1% of income before income taxes for the comparable period of fiscal 1999. 7 8 MEADE INSTRUMENTS CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) For the first quarter of fiscal 1998, net income was adjusted by $374,000 for accretion of redeemable preferred stock to arrive at net income available to common stockholders of $2,000. The redeemable preferred stock was redeemed in full with the proceeds of the Offering in April 1997. LIQUIDITY AND CAPITAL RESOURCES For the first quarter of fiscal 1999, the Company funded its operations with borrowings on its bank line of credit. Internally generated cash flow from net income was more than offset by increases in inventories and accounts receivable as well as a decrease in income taxes payable. Net working capital (current assets less current liabilities) totaled approximately $15.6 million at May 31, 1998, up slightly from $15.4 million at February 28, 1998. Working capital requirements fluctuate during the year due to the seasonal nature of the business. These requirements are typically financed through a combination of internally generated cash flow from operating activities and short-term bank borrowings. In January 1998, the Company amended its Loan and Security Agreement (the "Loan Agreement") with Fleet Capital Corporation to provide (i) a $15.0 million revolving line of credit and (ii) a $5.0 million term note. The Loan Agreement is secured by the assets of the Company. The Company had outstanding borrowings under its line of credit of approximately $2.5 million at May 31, 1998. There were no outstanding borrowings under the term note at May 31, 1998. Capital expenditures aggregated $830,000 and $137,000 for the quarters ended May 31, 1998 and 1997, respectively. The Company had capital expenditure commitments aggregating approximately $1.0 million at May 31, 1998. These commitments relate to the purchase of manufacturing equipment and product tooling. The Company believes that internally generated cash flow and borrowing ability will be sufficient to meet its operating, working capital and capital expenditure requirements through the next twelve months. In the event the Company's plans require more capital than is presently anticipated, the Company's remaining cash balances may be consumed and additional sources of liquidity, such as debt or equity financings, may be required to meet its capital needs. There can be no assurance that additional capital beyond the amounts the Company currently requires will be available on reasonable terms, if at all. FORWARD-LOOKING INFORMATION The preceding "Management's Discussion and Analysis of Financial Conditions and Results of Operations" section contains various "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which represent the Company's reasonable judgment concerning the future and are subject to risks and uncertainties that could cause the Company's actual operating results and financial position to differ materially, including the following: the Company's ability to reach new market participants as a result of its increased advertising and marketing efforts; the Company's ability to continue to develop and bring to market new and innovative products; the Company's ability to retain and expand the telescope, binocular and other optical products markets; the Company expanding its distribution network; the Company experiencing fluctuations in its sales, gross margins and profitability from quarter to quarter consistent with prior periods; and the Company's expectation that it will have sufficient funds to meet any working capital requirements during the foreseeable future with internally generated cash flow and borrowing ability. In addition to other information in this report, the Company cautions that certain factors, including without limitation the following, should be considered carefully in evaluating the Company and its business and that such factors may cause the Company's actual operating results to differ materially from those set forth in the forward looking statements described above or to otherwise be adversely affected: any significant decline in general economic conditions or uncertainties regarding future economic prospects that affect 8 9 MEADE INSTRUMENTS CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) consumer spending; any general decline in the size of the telescope market or any segment of the telescope market in which the Company competes, whether from general economic conditions, a decrease in the popularity of telescopes or otherwise; any inability to continue to design and manufacture products that will achieve commercial success; any product designs being rendered obsolete within a relatively short period of time as new products are introduced into the market; any failure of the Company to penetrate the binocular market and achieve meaningful sales; any unexpected termination or interruption of the Company's manufacturing arrangements with the Taiwanese Factory; greater than anticipated competition; any loss of, or the failure to replace, any significant portion of the sales made to any significant customer of the Company; the inherent risks associated with international sales, including variations in local economies, fluctuating exchange rates (including conversion to Euros) increased difficulty of inventory management, greater difficulty in accounts receivable collections, costs and risks associated with localizing products for foreign countries, changes in tariffs and other trade barriers, adverse foreign tax consequences, cultural differences affecting product demand and customer service and burdens of complying with a variety of foreign laws; and the inherent risks associated with products manufactured by foreign suppliers located primarily in Taiwan, Korea, Japan and the Peoples Republic of China, including, among other things, imposition of quotas or trade sanctions, decline in the value of the U.S. dollar against local currencies causing an effective increase in the price of finished products and components or the decline in value of local currencies against the U.S. dollar resulting in competitive products being manufactured for lower costs and thus exerting downward pricing pressures on the Company's products, shipment delays and the political instability between China and Taiwan. The Company is currently addressing a potential problem facing many users of automated information systems. The widespread use of two-digit date computer programs to perform computations and decision-making functions may cause computer systems to malfunction in the year 2000, which could lead to business delays and disruptions in the U.S. and internationally. The Company has made and will continue to make modifications in its computer systems to address this problem. The Company expects to complete these modifications prior to the end of calendar 1999 at a cost that is not expected to be material to the operations of the Company. However, due to the independent nature of computer systems, the Company may be adversely impacted depending on whether or not other entities not affiliated with the Company address this issue successfully. 9 10 PART II -- OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Meade Instruments Corporation v. Reddwarf Starware, LLC, aka Reddwarf Instruments, LLC ("Reddwarf"), Civil No. SACV 98-240 GLT, United States District Court for the Central District of California. Action for declaratory relief initiated by a complaint filed March 16, 1998, by the Company for declaratory judgment of non-infringement of Reddwarf's U.S. Patent No. 4,764,881, for declaratory judgment that Reddwarf's patent is invalid, void, and unenforceable, and for an injunction and damages under Federal antitrust statutes and for an injunction and other relief under California unfair competition statutes. A counterclaim dated June 3, 1998 alleging infringement by the Company's LX200 series telescope system (and unspecified other products) of Reddwarf's U.S. Patent No. 4,764,881 was also filed against the Company. The counterclaim further alleges that the infringement is willful and seeks unspecified damages, an injunction, and other relief against the Company. The Company contends the counterclaim is without merit and vigorously contests its allegations. The Company will pursue its defenses in its action for declaratory judgment of non-infringement and invalidity. Settlement efforts to date have been unsuccessful and no further settlement negotiations have been scheduled. Investigations by the Company's patent counsel to date reveal facts that, in such counsel's opinion, give the Company meritorious defenses against Reddwarf's patent. However, due to the uncertainties of litigation, the Company is unable to provide an evaluation of the likelihood of an unfavorable outcome in the case, or an estimate of the amount of potential loss in the event of an unfavorable outcome. ITEM 2. CHANGES IN SECURITIES Not applicable. ITEM 3. DEFAULTS UPON SENIOR SECURITIES Not applicable. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Not applicable. ITEM 5. OTHER INFORMATION Not applicable. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 6(a) Exhibits filed with this Form 10-Q Exhibit No. 27 Financial Data Schedule for the quarter ended May 31, 1998. 6(b) Reports on Form 8-K None. 10 11 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. MEADE INSTRUMENTS CORP. By: /s/ JOHN C. DIEBEL ------------------------------------ John C. Diebel Chairman of the Board and Chief Executive Officer Dated: July 2, 1998 Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
SIGNATURE TITLE DATE --------- ----- ---- /s/ JOHN C. DIEBEL Chairman of the Board and Chief July 2, 1998 - ----------------------------------------------------- Executive Officer (Principal John C. Diebel Executive Officer) /s/ STEVEN G. MURDOCK Director, President, Chief July 2, 1998 - ----------------------------------------------------- Operating Officer and Secretary Steven G. Murdock /s/ BRENT W. CHRISTENSEN Vice President -- Finance and July 2, 1998 - ----------------------------------------------------- Chief Financial Officer (Principal Brent W. Christensen Financial and Accounting Officer) /s/ JOSEPH A. GORDON, JR. Director and Senior Vice President July 2, 1998 - ----------------------------------------------------- of North American Sales Joseph A. Gordon, Jr. Director - ----------------------------------------------------- Timothy C. McQuay Director - ----------------------------------------------------- Harry L. Casari
11 12 EXHIBIT INDEX
SEQUENTIALLY EXHIBIT NUMBERED NO. DESCRIPTION PAGE - ------- ----------- ------------ 27 Financial Data Schedule for the quarter ended May 31, 1998.
12 EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS 3-MOS FEB-28-1999 FEB-28-1998 MAR-01-1998 MAR-01-1997 MAY-31-1998 MAY-31-1997 2 1,649 0 0 8,390 6,509 505 485 13,941 11,910 23,743 21,246 5,131 4,301 1,487 1,316 27,690 24,592 8,177 5,829 0 0 0 0 0 0 79 79 19,147 18,343 27,690 24,592 14,821 12,735 14,821 12,735 8,741 8,526 8,741 8,526 5,065 2,977 0 0 42 594 973 638 419 262 554 376 0 0 0 0 0 (374) 554 2 .08 .00 .08 .00
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