-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, JCGeXxQhmZAmyJeIGN3AENL9sNLjK1kA8To7y0zvuxktPQWVKTNE3a+LY1eppb/x D+RNOMcQgzk2aWzUXij8QA== 0000025506-94-000020.txt : 19941116 0000025506-94-000020.hdr.sgml : 19941116 ACCESSION NUMBER: 0000025506-94-000020 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CRAY RESEARCH INC CENTRAL INDEX KEY: 0000025506 STANDARD INDUSTRIAL CLASSIFICATION: 3571 IRS NUMBER: 391161138 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08028 FILM NUMBER: 94559793 BUSINESS ADDRESS: STREET 1: 655A LONE OAK DR CITY: EAGAN STATE: MN ZIP: 55121 BUSINESS PHONE: 6126837100 MAIL ADDRESS: STREET 1: 655A LONE OAK DRIVE CITY: EAGAN STATE: MN ZIP: 55121 10-Q 1 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 or [ ] Transition Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 For the quarter ended: Commission file number: September 30, 1994 1-8028 CRAY RESEARCH, INC. (Exact name of Registrant as specified in its charter) Delaware 39-1161138 (State of Incorporation) (I.R.S Employer Identification No.) 655A Lone Oak Drive Eagan, MN 55121 (Address of principal executive offices) Telephone Number: (612) 683-7100 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 the filing requirements for at least the past 90 days. YES-X NO As of October 31, 1994, 25,664,796 shares of the Registrant's Common Stock were outstanding. CRAY RESEARCH, INC. and SUBSIDIARIES FORM 10-Q September 30, 1994 I N D E X Page ------ Part I - Financial Information: Consolidated Statements of Operations- Three and nine months ended September 30, 1994 and 1993 1 Consolidated Balance Sheets - September 30, 1994 and December 31, 1993 2 Consolidated Statements of Cash Flows - Nine months ended September 30, 1994 and 1993 3 Notes to Consolidated Financial Statements 4 Financial Review 6 Part II - Other Information 11 Signatures 12 Exhibit Index 13 CRAY RESEARCH, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Nine Months Ended September 30 September 30 ---------------------- ---------------------- 1994 1993 1994 1993 ---------- ---------- ---------- ---------- (In thousands, except per share data) Revenue: Sales $ 165,767 $ 147,899 $ 526,342 $ 427,426 Leased systems 5,741 5,670 15,934 18,580 Service fees 48,351 48,406 142,266 146,236 - ---------------------------- --------- --------- --------- --------- Total revenue 219,859 201,975 684,542 592,242 - ---------------------------- --------- --------- --------- --------- Cost of revenue: Cost of sales 83,034 75,153 270,879 211,507 Cost of leased systems 4,537 3,288 10,338 10,207 Cost of services 36,012 35,695 110,721 107,364 - ---------------------------- --------- --------- --------- --------- Total cost of revenue 123,583 114,136 391,938 329,078 - ---------------------------- --------- --------- --------- --------- Gross profit 96,276 87,839 292,604 263,164 - ---------------------------- --------- --------- --------- --------- Operating expenses: Development and engineering 34,793 33,610 108,921 102,853 Marketing 33,743 29,007 101,981 90,380 General and administrative 5,987 5,649 18,080 17,538 - ---------------------------- --------- --------- --------- --------- Total operating expenses 74,523 68,266 228,982 210,771 - ---------------------------- --------- --------- --------- --------- Operating income 21,753 19,573 63,622 52,393 Other income (expense), net 147 (96) 1,309 (1,708) - ---------------------------- --------- --------- --------- --------- Earnings before taxes 21,900 19,477 64,931 50,685 Income tax expense (5,858) (4,213) (18,733) (14,156) - ---------------------------- --------- --------- --------- --------- Net earnings $ 16,042 $ 15,264 $ 46,198 $ 36,529 - ---------------------------- ========= ========= ========= ========= Earnings per common and common equivalent share $ 0.62 $ .58 $ 1.78 $ 1.40 - ---------------------------- ========= ========= ========= ========= Average number of common and common equivalent shares outstanding 25,725 26,258 25,884 26,094 - ---------------------------- ========= ========= ========= ========= See accompanying notes to consolidated financial statements.
1 CRAY RESEARCH, INC. and SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) September 30 December 31 1994 1993 ------------ ------------ (In thousands) Assets - ------------------------------------------- Current assets: Cash and equivalents $ 11,785 $ 78,373 Receivables 244,612 186,852 Inventories 292,843 315,100 Other current assets 47,235 46,988 - ------------------------------------------- ---------- ---------- Total current assets 596,475 627,313 Long-term receivables 27,253 10,593 Leased systems and spares, net 98,864 99,859 Property, plant and equipment, net 225,345 225,649 Investments and other assets 187,747 206,354 - ------------------------------------------- ---------- ---------- $1,135,684 $1,169,768 ========== ========== Liabilities and Stockholders' Equity - ------------------------------------------- Current liabilities: Current installments of long-term debt $ 7,201 $ 2,216 Accounts payable 20,219 41,679 Accrued expenses 96,406 109,300 Income taxes payable 19,095 30,422 Deferred income and customer advances 62,953 88,346 - ------------------------------------------- ---------- ---------- Total current liabilities 205,874 271,963 - ------------------------------------------- ---------- ---------- Long-term debt, excluding current installments 97,000 105,478 Other long-term obligations 10,565 12,986 Stockholders' equity: Common stock 31,511 31,511 Additional paid-in capital 92,113 102,489 Retained earnings 913,063 866,864 Foreign currency translation adjustments 2,032 (3,024) Treasury stock, at cost (216,474) (218,499) - ------------------------------------------- ---------- ---------- Total stockholders' equity 822,245 779,341 - ------------------------------------------- ---------- ---------- $1,135,684 $1,169,768 ========== ========== See accompanying notes to consolidated financial statements.
2 CRAY RESEARCH, INC. and SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine months ended September 30 -------------------- 1994 1993 --------- --------- (In thousands) Cash flows provided by operations $ 10,569 $ 105,168 - ----------------------------------------------------- --------- --------- Cash flows provided by (used in) investing: Transfers from (to) long-term investments 15,000 (75,000) Expenditures for leased systems and spares (27,519) (26,871) Expenditures for property, plant and equipment (56,624) (33,429) Other, net (2,117) 2,273 - ----------------------------------------------------- --------- --------- Total cash flows used in investing (71,260) (133,027) - ----------------------------------------------------- --------- --------- Cash flows provided by (used in) financing: Proceeds from borrowings 28,833 4,164 Proceeds from the sale of common stock to employees 7,277 5,330 Repayments of debt (29,796) (8,663) Repurchases of common stock (15,628) - - ----------------------------------------------------- --------- --------- Total cash flows provided by (used in) financing (9,314) 831 - ----------------------------------------------------- --------- --------- Effect of exchange rate changes 3,417 (1,477) - ----------------------------------------------------- --------- --------- Increase (decrease) in cash and equivalents (66,588) (28,505) Cash and equivalents at beginning of period 78,373 54,953 - ----------------------------------------------------- --------- --------- Cash and equivalents at end of period $ 11,785 $ 26,448 - ----------------------------------------------------- ========= ========= See accompanying notes to consolidated financial statements.
3 CRAY RESEARCH, INC. and SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (1)In the opinion of management, the accompanying consolidated financial statements reflect all adjustments considered necessary for a fair presentation. These adjustments consist only of normal recurring items. For further information, refer to the financial statements and footnotes included or incorporated by reference in the Company's Annual Report on Form 10-K for the year ended December 31, 1993. (2)Operating results for the nine months ended September 30, 1994 are not necessarily indicative of the results that may be expected for the year ending December 31, 1994. (3)On April 8, 1994, the Company repurchased on the open market a portion of its 6 1/8% Convertible Subordinated Debentures with a face value of $23.0 million for a purchase price of $20.4 million. The repurchase resulted in a gain of $2.6 million which was recorded as other income and satisfied the first four required sinking fund payments of $5,750,000 each year, originally scheduled for 1997 to 2000. Remaining annual sinking fund payments of $5,750,000 each are scheduled from 2001 to 2010 with a maturity payment of $24,500,000 in 2011. The Company took out a new four year $20 million term debt to fund the debenture repurchase. The fixed borrowing rate is 6.72% and interest payments are due semi-annually in arrears on each October 8 and April 8. Annual principal installments of $5,000,000 are due April 8, 1995 to April 8, 1998. (4)The Company's unused, unsecured $75,000,000 revolving credit agreement with an initial term of three years expiring on April 30, 1995 has been extended to June 30, 1997. (5)On September 15, 1994 the Company acquired Savant Systems, Incorporated, a consulting firm, for $4,250,000. The acquisition was accounted for as a purchase, and did not have a material impact on consolidated results of operations. (6)On October 19, 1994, the Company acquired Minnesota Supercomputer Center for $11.4 million, which approximates the fair value of the identifiable net assets acquired. The acquisition will be accounted for as a purchase in the fourth quarter. 4 CRAY RESEARCH, INC and SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (7) Selected consolidated financial statement details (in thousands): September 30 December 31 1994 1993 ------------ ------------ Inventories: Components and subassemblies $ 108,797 $ 89,421 Systems in process 103,992 148,772 Finished goods 80,054 76,907 ---------- ---------- $ 292,843 $ 315,100 ========== ========== Leased systems and spares: Cost $ 301,449 $ 288,706 Accumulated depreciation and amortization (202,585) (188,847) ---------- ---------- $ 98,864 $ 99,859 =========== =========== Property, plant and equipment Cost: $527,202 $498,011 Accumulated depreciation and amortization (301,857) (272,362) ----------- ---------- $225,345 $225,649 =========== ===========
Three months ended Nine months ended September 30 September 30 ------------------ ------------------ 1994 1993 1994 1993 ------- ------- ------- ------- Other income (expense), net: Interest income $ 2,502 $ 2,777 $ 7,169 $ 6,919 Interest expense (2,147) (2,132) (6,672) (6,412) Other, net (208) (741) 812 (2,215) ------- ------- ------- ------- $ 147 $ (96) $ 1,309 $(1,708) ======= ======= ======= =======
5 CRAY RESEARCH, INC. and SUBSIDIARIES FINANCIAL REVIEW REVENUE - ------- Three Months Ended Nine Months Ended September 30 September 30 ------------------ ------------------ 1994 1993 1994 1993 -------- -------- -------- -------- High-end systems installed: Parallel Vector Processing 12 14 47 38 Massively Parallel Processing 11 1 20 1 -------- -------- -------- -------- 23 15 67 39 -------- -------- -------- -------- Low-end systems installed: Parallel Vector Processing 23 5 58 13 Symmetric Multiprocessing 7 4 24 5 -------- -------- -------- -------- 30 9 82 18 -------- -------- -------- -------- Total system installations 53 24 149 57 ======== ======== ======== ======== High-end systems lease-to- purchase conversions 3 1 6 2 ======== ======== ======== ========
Percent of total revenue - ------------------------------ Change from Three months Nine months prior year - -------------- -------------- ------------------------- 1994 1993 1994 1993 Three months Nine months - ------ ------ ------ ------ ------------ ---------- Revenue: 75.4% 73.2% 76.9% 72.2% Sales 12.1% 23.1% 2.6 2.8 2.3 3.1 Leased systems 1.3 (14.2) 22.0 24.0 20.8 24.7 Service fees (0.1) (2.7) - ------ ------ ------ ------ --------------- ------------ ---------- 100.0% 100.0% 100.0% 100.0% Total revenue 8.9% 15.6% ====== ====== ====== ====== =============== ============ ==========
Revenue increased $17.9 million (8.9%) to $219.9 million in the third quarter and $92.3 million (15.6%) to $684.5 million in the first nine months of 1994 relative to the comparable periods of 1993, reflecting increased sales revenues and small total dollar changes in lease revenues and service fees. At September 30, 1994, 584 systems were installed, compared to 486 a year earlier. Sales revenue increased $17.9 million (12.1%) to $165.8 million for the quarter resulting primarily from improved sales of upgrades and peripherals, as well as increases in low-end system and used high-end system sales. Despite a substantial increase in unit volume, revenue from overall system installations was slightly down, reflecting significant declines in average selling prices. Product mix has shifted to smaller configured high-end systems and to low-end systems. 6 CRAY RESEARCH, INC. and SUBSIDIARIES FINANCIAL REVIEW (continued) Sales revenue of $526.3 million for the first nine months of 1994 was up $98.9 million (23.1%) over 1993. The largest sources for the increase were sales of upgrades and peripherals, and revenue from low-end system installations. High-end system revenue increased slightly. The large unit volume increase from 39 to 67 systems installed was offset by declines in average selling prices. Leased systems revenue totalled $5.7 million in the third quarter, comparable to the prior year. Nine month lease revenues of $15.9 million were off $2.6 million (14.2%) from 1993 as a result of purchase conversions and new leases with lower monthly payments. Service fees were flat in the third quarter at $48.4 million, and down $4.0 million (2.7%) to $142.3 million for the first nine months of the year. As new products replace old, average service revenue per installation is declining. Smaller systems result in lower monthly service fees. In addition, the new systems are more reliable, enabling the Company to offer, and more customers to accept, lower priced service options with less coverage. The order backlog at September 30, 1994 was $177 million, compared to $197 million at the end of the second quarter and $460 million a year earlier. Backlog has been affected by a reduction in orders to $311 million from $483 million for the first nine months of 1994 compared to 1993, and the increased installation activity during the first half of 1994. The reduced order rate and backlog reflect a trend towards lengthening procurement cycles for high-end systems, and the shorter time period between order and acceptance for smaller configured high-end systems and for low-end systems, which the Company expects to continue. GROSS PROFIT - ------------ Percent of related revenue Change from - ------------------------------ prior year Three months Nine months --------------- - -------------- -------------- Three Nine 1994 1993 1994 1993 months months - ------ ------ ------ ------ ------ ------ Gross profit percent: 49.9% 49.2% 48.5% 50.5% Sales 0.7% (2.0)% 21.0 42.0 35.1 45.1 Leased systems (21.0) (10.0) 25.5 26.3 22.2 26.6 Service fees (0.8) (4.4) - ------ ------ ------ ------ -------------------------- ------ ------ 43.8% 43.5% 42.7% 44.4% Total gross profit percent 0.3% (1.7)% ====== ====== ====== ====== ========================== ====== ======
The total gross profit percent was flat in the third quarter and declined 1.7 percentage points in the first nine months of 1994 compared with 1993. Sales and service margins reflect the pressures referred to in the Revenue discussion above: product mix shift to smaller systems which have lower margins; continued market pricing pressures on system sales; and lower priced service options which will not be accompanied by proportionately lower costs until the installed base becomes large enough to provide additional economies of scale. Lease margins are volatile because of the small lease base, but have very little impact on overall margins. Downward pressure on sales and service margins is expected to continue. The Company expects the gross profit percent for the full year 1994 to remain below 1993 levels. 7 CRAY RESEARCH, INC. and SUBSIDIARIES FINANCIAL REVIEW (continued) EXPENSES - --------- Percent of total revenue Change from - --------------------------- prior year Three months Nine months --------------- - ------------ ------------ Three Nine 1994 1993 1994 1993 months months - ---- ---- ---- ---- ------ ------ Operating expenses: 15.8% 16.6% 15.9% 17.4% Development and engineering 3.5% 5.9% 15.3 14.4 14.9 15.3 Marketing 16.3 12.8 2.8 2.8 2.6 2.9 General and administrative 6.0 3.1 - ---- ---- ---- ---- ---------------------------- ----- ----- 33.9% 33.8% 33.4% 35.6% Total operating expenses 9.2% 8.6% ==== ==== ==== ==== ============================ ===== =====
Total operating expenses for the third quarter and first nine months of 1994 increased about 9% over 1993. Investments are being made in the development of follow-on products to CRAY C90 and CRAY EL systems, in applications development, and in increased marketing and selling efforts for low-end products. Other income, net, increased by $3.0 million in the first nine months of 1994, primarily as a result of a $2.6 million gain on the repurchase of $23 million of 6 1/8% Convertible Subordinated Debentures. The effective tax rate for 1994 is 29%, compared with 28% for the first nine months of 1993. The third quarter 1994 and 1993 rates were 27% and 22%, respectively. The lower rate in the third quarter of 1993 reflected adjustments caused by the reinstatement of the Federal Research and Development tax credit. PRODUCTION PROCESS CHANGES - ------------------------------ As previously announced, during October 1994, the Company began to implement production process changes designed to cut production times in half and reduce the cycle time for its hardware products to 16 weeks. As a result, approximately 1,000 employees will be idle for four to eight weeks, and about 300 permanent and 80 temporary jobs are expected to be eliminated at its Chippewa Falls, Wisconsin facility. These activities are expected to result in approximately $8 million of expenses to be recorded in the fourth quarter of 1994. ACQUISITIONS - -------------- As part of its strategy to enter new markets, the Company in September announced the acquisition of Savant Systems, Incorporated, a consulting firm, for $4.3 million, and Minnesota Supercomputer Center for $11.4 million. (Refer to Notes 5 and 6 of Notes to Consolidated Financial Statements.) The latter acquisition will be recorded in the fourth quarter of 1994. These acquisitions are not expected to have a material impact on consolidated results of operations in 1994. 8 CRAY RESEARCH, INC. and SUBSIDIARIES FINANCIAL REVIEW (continued) OUTLOOK - -------- For the balance for 1994, the Company expects revenues to grow for the full year, but won't achieve its goal of 10 percent revenue growth. Net earnings for the year are expected to be slightly below 1993 results due to a previously announced charge of approximately $8 million related to the production process changes discussed above. Operating results in 1994 are characterized by a greater focus on small configurations within the high-end and on low-end systems. The Company is achieving significant increases in unit counts and new customers, but with lower average selling prices with accompanying lower gross margins. These trends are expected to continue. In 1995, the Company expects to install more systems in the technical simulation market than in 1994, but at lower average system prices, resulting in lower revenues from this market. The Company anticipates volume and revenue growth in the commercial simulation market in 1995, but not enough to increase total consolidated revenues. At the same time, 1995 will be a product transition year. At the high-end, the Triton, the follow-on to the CRAY C90, will not be available in volume until the second half of the year; at the low-end, there will be a transition during the first half of the year from the CRAY EL to its follow-on, the J90. As a result, there will be a significant downward pressure on financial results in 1995, especially in the first half of the year. Results are expected to improve in the second half of 1995 compared with the first half, but annual consolidated revenues, margins and earnings are expected to decline relative to 1994. 9 CRAY RESEARCH, INC. and SUBSIDIARIES FINANCIAL REVIEW (continued) FINANCIAL CONDITION - ---------------------- The Company used $81.6 million of cash during the first nine months of 1994, versus producing cash totalling $46.5 million in the same period in 1993. The biggest factors in the change were a reduction in cash flows from operations from $105.2 million to $10.6 million, a $23.2 million increase in capital expenditures, and $15.6 million of repurchases of common stock. Accounts receivable increased from $180.1 million at September 30, 1993 to $244.6 million at September 30, 1994, reflecting a concentration of system acceptances late in the third quarter in 1994. In addition, customer advances had a significant impact on cash from operations; during 1994, advances decreased by $25.4 million, whereas 1993 cash flows benefitted from a $53.5 million increase in advances. Capital expenditures increased from $33.4 million in the first nine months of 1993 to $56.6 million in 1994. Manufacturing and data equipment purchases were largely responsible for the planned increase. The Company expects to generate positive cash flow in the fourth quarter. For the full year, investing and financing activities may use slightly more cash than will be generated by operations. At September 30, 1994, the Company had $146.8 million in total cash and investments, as well as an unused, unsecured $75 million line of credit. The Company believes its liquidity and financial flexibility remain adequate to meet its requirements. 10 CRAY RESEARCH, INC. and SUBSIDIARIES PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K - ----------------------------------------- (a) Exhibits (11) Computation of Earnings Per Share. (27) Financial Data Schedule. (b)No reports on Form 8-K were filed during the quarter ended September 30, 1994. 11 SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CRAY RESEARCH, INC. Date NOVEMBER 11, 1994 by /s/ Michael J. Lindseth - ------------------------ --------------------------------- Michael J. Lindseth Chief Financial Officer (Principal Financial Officer) Date NOVEMBER 11, 1994 by /s/ Charles T. Roehrick - ------------------------ --------------------------------- Charles T. Roehrick Corporate Controller (Principal Accounting Officer) 12 EXHIBIT INDEX EXHIBITS FILED AS ITEM 6 TO THE QUARTERLY REPORT OF CRAY RESEARCH, INC. AND SUBSIDIARIES ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1994: (11) Computation of Earnings Per Share. (27) Financial Data Schedule. 13 Computation of Earnings per Share Exhibit 11 CRAY RESEARCH, INC. and SUBSIDIARIES ---------- Three Months Ended Nine Months Ended September 30 September 30 --------------------- --------------------- 1994 1993 1994 1993 ---------- ---------- ---------- ---------- (In thousands, except per share data) PRIMARY EARNINGS PER SHARE - ------------------------------- (Comp for Consol Stmts of Operations) Net earnings $16,042 $15,264 $46,198 $36,529 Net earnings effect of interest on 6 1/8% Convertible Debentures -(1) -(1) -(1) -(1) - ------------------------------ ------- ------- ------- ------- Net earnings for common and common equivalent shares $16,042 $15,264 $46,198 $36,529 - -------------------------------- ------- ------- ------- ------- Wtd ave no of common shares outstanding during the period 25,723 26,258 25,879 26,093 Com stock equiv stock options 2 - 5 1 Common stock equivalents- convertible debentures -(1) -(1) -(1) -(1) - -------------------------------- ------- ------- ------- ------- Total wtd ave no of common and com equiv shrs o/s 25,725 26,258 25,884 26,094 - -------------------------------- ------- ------- ------- ------- Earnings per common and common equivalent share $ 0.62 $ 0.58 $ 1.78 $ 1.40 - -------------------------------- ======= ======= ======= ======= FULLY DILUTED EARNINGS PER SHARE - -------------------------------- Net earnings per prim comp above $16,042 $15,264 $46,198 $36,529 - -------------------------------- ------- ------- ------- ------- Wtd ave no of common shares o/s, as adjusted per primary computation above 25,725 26,258 25,884 26,094 Additional dilutive effect of outstanding stock options - - - - - -------------------------------- ------- ------- ------- ------- Total wtd ave no of common and common equiv shrs o/s 25,725 26,258 25,884 26,094 - -------------------------------- ------- ------- ------- ------- Earnings per common and common equivalent share, assuming full dilution $ 0.62 $ 0.58 $ 1.78 $ 1.40 - ------------------------------- ======= ======== ======= ======= (1)The effect of the convertible debentures on earnings per share is anti- dilutive as of September 30, 1994 and 1993 and is excluded from the calculation.
EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED STATEMENTS OF OPERATIONS AND THE CONSOLIDATED BALANCE SHEETS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1994 SEP-30-1994 11,785 135,000 271,865 0 292,843 596,475 527,202 301,857 1,135,684 205,874 97,000 31,511 0 0 790,734 1,135,684 526,342 684,542 270,879 391,938 108,921 0 6,672 64,931 18,733 46,198 0 0 0 46,198 1.78 1.78
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