-----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, Eo2ldjIoGNlbG+YSaCKSPbw+wnPntT2d4LJZM3aZFUleJnXsx97WBmqpEoXZby6c rKCGtleqLfd0ziwl1bAwNQ== 0000352988-99-000006.txt : 19990517 0000352988-99-000006.hdr.sgml : 19990517 ACCESSION NUMBER: 0000352988-99-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMTEX SCIENTIFIC CORP CENTRAL INDEX KEY: 0000352988 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS BUSINESS SERVICES [7380] IRS NUMBER: 133055012 STATE OF INCORPORATION: NY FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 002-72408 FILM NUMBER: 99623638 BUSINESS ADDRESS: STREET 1: 4900 SEMINARY RD STE 800 CITY: ALEXANDRIA STATE: VA ZIP: 22311 BUSINESS PHONE: 7038242000 MAIL ADDRESS: STREET 1: 4900 SEMINARY RD STREET 2: SUITE 800 CITY: ALEXANDRIA STATE: VA ZIP: 22311 10-Q 1 THIRD QUARTER FY 1999 FORM 10-Q 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 quarterly period ended March 31, 1999 or / / Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period from __________ to ___________ Commission file number 0-10541 _____________________ COMTEX SCIENTIFIC CORPORATION (Exact name of registrant as specified in its charter) New York 13-3055012 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 4900 Seminary Road Suite 800 Alexandria, Virginia 22311 (Address of principal executive offices) Registrant's Telephone number including area code (703) 820-2000 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 / / As of May 11, 1999, 8,083,694 shares of the Common Stock of the registrant were outstanding. COMTEX SCIENTIFIC CORPORATION TABLE OF CONTENTS Part I Financial Information: Page No. Item 1. Financial Statements Balance Sheets 3 at March 31, 1999 (unaudited) and June 30, 1998 Statements of Operations 4 for the Three and Nine Months Ended March 31, 1999 and 1998 (unaudited) Statements of Cash Flows 5 for the Nine Months Ended March 31, 1999 and 1998 (unaudited) Notes to Financial Statements 6 Item 2. Management's Discussion and Analysis 9 of Financial Condition and Results of Operations Part II Other Information: Item 6. Exhibits and Reports on Form 8-K 14 SIGNATURES 15 COMTEX SCIENTIFIC CORPORATION BALANCE SHEETS
March 31, June 30, 1999 1998 ---------- ---------- (Unaudited) ASSETS CURRENT ASSETS Cash $ 176,657 $ 170,416 Accounts Receivable, Net of Allowance of approximately $205,000 and $67,000 at March 31, 1999 and June 30, 1998, respectively 1,222,626 882,001 Prepaid Expenses and Other Current Assets 60,562 19,512 ---------- ---------- TOTAL CURRENT ASSETS 1,459,845 1,071,929 PROPERTY AND EQUIPMENT, NET 629,990 299,097 DEPOSITS AND OTHER ASSETS 62,255 62,944 ---------- ---------- TOTAL ASSETS $ 2,152,090 $1,433,970 ========== ========== LIABILITIES AND STOCKHOLDERS' DEFICIT CURRENT LIABILITIES: Accounts Payable $ 836,599 $ 600,345 Accrued Expenses 582,902 446,317 Amounts due to Related Parties, net 257,224 216,815 Notes Payable 40,000 94,660 ---------- ---------- TOTAL CURRENT LIABILITIES 1,716,725 1,358,137 LONG-TERM LIABILITIES: Notes Payable - Affiliate 732,872 732,872 Other Notes Payable 60,000 100,000 ---------- ---------- TOTAL LONG-TERM LIABILITIES 792,872 832,872 ---------- ---------- TOTAL LIABILITIES 2,509,597 2,191,009 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' DEFICIT Common Stock, $0.01 Par Value - Shares Authorized: 18,000,000; Shares issued and outstanding: 8,078,360 and 7,896,231, respectively 80,784 78,962 Additional Capital 10,015,520 9,987,098 Accumulated Deficit (10,453,811) (10,823,099) ---------- ---------- TOTAL STOCKHOLDERS' DEFICIT (357,507) (757,039) ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 2,152,090 $ 1,433,970 ========== ==========
The accompanying "Notes to Financial Statements" are an integral part of these financial statements - 3 - COMTEX SCIENTIFIC CORPORATION STATEMENTS OF OPERATIONS (UNAUDITED)
Three months ended Nine months ended March 31, March 31, --------------------- ---------------------- 1999 1998 1999 1998 ---------- ---------- ---------- ---------- REVENUES Information Services Revenues $1,644,439 $1,232,981 $4,792,353 $3,477,403 Data Communications Revenues 166,688 132,358 484,143 413,016 ---------- ---------- ---------- ---------- Total Revenues 1,811,127 1,365,339 5,276,496 3,890,419 ---------- ---------- ---------- ---------- COSTS AND EXPENSES Costs of Information Services 718,043 580,622 2,114,001 1,643,565 Costs of Data Communications 186,848 179,177 575,084 544,937 Product Development 67,624 41,540 182,370 115,344 Sales and Marketing 292,757 218,398 840,126 595,796 General and Administrative 345,397 287,614 1,045,982 820,240 Depreciation and Amortization 22,145 27,744 84,100 76,422 --------- ---------- ---------- ---------- Total Costs and Expenses 1,632,814 1,335,095 4,841,663 3,796,304 ---------- ---------- ---------- ---------- INCOME FROM OPERATIONS 178,313 30,244 434,833 94,115 OTHER INCOME (EXPENSE) Interest Expense (20,813) (23,121) (65,888) (69,810) Interest Income/Other 327 266 785 1,774 ---------- ---------- ---------- --------- Other Expense, Net (20,486) (22,855) (65,103) (68,036) ---------- ---------- ---------- --------- INCOME BEFORE INCOME TAXES 157,827 7,389 369,730 26,079 INCOME TAXES 27 28 441 360 ---------- ---------- ---------- ---------- NET INCOME $ 157,800 $ 7,361 $ 369,289 $ 25,719 ========== ========== ========== ========== BASIC EARNINGS PER COMMON SHARE $ .02 $ .00 $ .04 $ .00 ========== ========== ========== ========== WEIGHTED AVERAGE NUMBER OF COMMON SHARES 8,010,914 7,859,417 7,945,623 7,858,749 ========== ========== ========== ========== DILUTED EARNINGS PER COMMON SHARE $ .01 $ .00 $ .03 $ .00 ========== ========== ========== ========== WEIGHTED AVERAGE NUMBER OF SHARES ASSUMING DILUTION 12,055,635 10,122,563 11,090,868 9,995,871 ========== ========== ========== ==========
The accompanying "Notes to Financial Statements" are an integral part of these financial statements - 4 - COMTEX SCIENTIFIC CORPORATION STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended March 31, -------------------------- 1999 1998 ---------- ---------- Cash Flows from Operating Activities: Net Income $ 369,289 $ 25,719 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and Amortization Expense 84,100 76,422 Bad Debt Expense 160,000 19,590 Changes in Assets and Liabilities: Accounts Receivable (500,623) 115,404 Prepaid Expenses and Other Current Assets (41,050) 15,359 Deposits and Other Assets 250 864 Accounts Payable 236,254 (3,980) Accrued Expenses 136,585 (9,880) Amounts due to Related Parties 40,409 57,937 ---------- ---------- Net Cash provided by Operating Activities 485,214 297,435 Cash Flows from Investing Activities: Purchases of Property and Equipment (414,555) (128,810) Repayments of Advances to TII - 266,000 ---------- ---------- Net Cash provided by (used in) Investing Activities (414,555) 137,190 Cash Flows from Financing Activities: Proceeds from Notes Payable - 140,000 Repayments on Notes Payable (94,660) (21,477) Repayments on Notes Payable to Related Parties - (147,422) Issuance of Stock under Employee Stock Purchase Plan 12,537 - Exercise of Stock Options 17,706 140 Repayments against PrinCap Financing Agreement - (266,000) ---------- ---------- Net Cash used in Financing Activities (64,418) (294,759) ---------- ---------- Net Increase in Cash 6,241 139,866 Cash Balance at Beginning of Period 170,416 17,927 ---------- ---------- Cash Balance at End of Period $ 176,657 $ 157,793 ========== ========== Supplemental disclosure of cash flow information: Cash paid for interest $ 14,782 $ 12,998 Cash paid for income taxes $ 441 $ 360
The accompanying "Notes to Financial Statements" are integral part of these financial statements - 5 - COMTEX SCIENTIFIC CORPORATION NOTES TO FINANCIAL STATEMENTS (UNAUDITED) March 31, 1999 1. Basis of Presentation The accompanying interim financial statements of Comtex Scientific Corporation (the "Company" or "Comtex") are unaudited, but in the opinion of management reflect all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of results for such periods. The results of operations for any interim period are not necessarily indicative of results for the full year. The balance sheet at June 30, 1998 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 1998 ("1998 Form 10-K"), filed with the Securities and Exchange Commission. Statement No. 131, Disclosures about Segments of an Enterprise and Related Information is required for the fiscal year ending June 30, 1999. The Company will make the necessary changes to comply with the provisions of the Statement as applicable. The Company does not expect the adoption of the Statement to have a material impact on the Company's financial condition or results of operations. Certain amounts for the three and nine months ended March 31, 1998, have been reclassified to conform to the presentation of the three and nine months ended March 31, 1999. 2. Related Party Transactions AMASYS Corporation ("AMASYS"), the successor corporation to Infotechnology, Inc. ("Infotech"), is the Company's majority stockholder (holding approximately 59% of the Company's Common Stock oustanding). C.W. Gilluly, Ed.D., Chairman of the Company, is also Chairman of AMASYS and Chairman and Chief Executive Officer of Hadron, Inc. of which AMASYS owns approximately 12% of the outstanding shares. The Chairman, Chief Financial Officer and Corporate Secretary of the Company have similar duties with Hadron, Inc. More than 50% of their time is spent on other than Company matters. During the nine months ended March 31, 1999, the following transactions occurred. Corporate Services Provided by/to Hadron, Inc. The Company contracts with Hadron, Inc. for corporate and shareholder relations services. Charges for such services are based on time and material expended by Hadron personnel in providing such services at a rate equal to Hadron's costs. The Company expensed approximately $19,000 for these services during the nine months ended March 31, 1999. Hadron subleased office space from the Company at the same rental rate paid by the Company to its landlord and also shared certain office-related expenses at cost based upon usage. Total service charges to Hadron during the nine months ended March 31, 1999, amounted to approximately $18,000. At January 31, 1999, Hadron terminated their sublease with the Company and relocated to other facilities. Management believes the methods used for allocating these charges are reasonable. Administrative Services Provided to AMASYS Corporation AMASYS shares certain general and administrative expenses with the Company based on usage for which the Company billed AMASYS approximately $2,000, the Company's cost, during the nine months ended March 31, 1999. Management believes the methods used for allocating these charges are reasonable. 3. Notes Payable In September 1997, the Company obtained a $50,000 line of credit and a $140,000 three year term loan from Century National Bank with annual principal repayments of $40,000, $40,000 and $60,000. In September 1998, the first $40,000 principal payment was made. The facilities, guaranteed by C.W. Gilluly, bear interest at a rate of prime plus two percent annually. Approximately $9,000 in interest was expensed and paid during the nine months ended March 31, 1999. The line of credit facility was renewed for one year in December 1998. In May 1999, the line of credit was increased to $250,000. In June 1997, the Company signed a note with a law firm converting accounts payable to the firm to a note payable in the amount of $50,000 due no later than December 17, 1998, together with all accrued interest, at nine percent (9%) per annum, thereon. In December 1998, the principal and accrued interest, totaling $56,750, was paid. 4. Net Income per Share The following table sets forth the computation of basic and diluted earnings per share:
Three Months Ended Nine Months Ended March 31, March 31, 1999 1998 1999 1998 -------- -------- -------- -------- Numerator: Net Income $157,800 $7,361 $369,289 $25,719 ======== ======== ======== ======== Denominator: Denominator for basic earnings per share - weighted average shares 8,010,914 7,859,417 7,945,623 7,858,422 Effect of dilutive securities: Stock Options 4,044,721 2,263,146 3,145,245 2,074,103 ---------- ---------- ---------- ---------- Denominator for diluted earnings per share 12,055,635 10,122,563 11,090,868 9,932,525 ========== ========== ========== ========= Basic Earnings Per Share $.02 $.00 $.04 $.00 Diluted Earnings Per Share $.01 $.00 $.03 $.00
5. Income Taxes The Company has recorded net income for the nine months ended March 31, 1999; however, no tax provision has been recorded as the Company's net operating loss (NOL) and investment tax credit (ITC) carryforwards are sufficient to offset this income for federal and state tax purposes. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Comparison of the three months ended March 31, 1999, to the three months ended March 31, 1998 During the three months ended March 31, 1999, the Company's total revenues were approximately $1,811,000, or approximately $446,000 (33%) greater than the total revenues for the three months ended March 31, 1998. Revenues are derived from two sources. Information services is the primary business of the Company and involves the aggregation, formatting and value-add of real-time news sources. Data communications revenues represent the recovery of costs incurred in the delivery of the information services to customers. Of the approximately $411,000 increase in information services revenues, approximately 118% reflects revenues from new customers obtained during the past twelve months and approximately - -18% represents decreases in existing customer revenues from usage- based royalties and losses from failed customer models. The increase of approximately $34,000 in data communications revenues reflects billings for delivery of the Company's products to new customers. Total costs and expenses for the three months ended March 31, 1999 were approximately $1,633,000, representing an approximate $298,000 (22%) increase in operating expenses from the three months ended March 31, 1998. This increase in operating expenses is due to increases in information services costs, data communications costs, product development costs, sales and marketing, and general and administrative expenses. Information services costs during the quarter ended March 31, 1999 increased approximately $137,000 (24%) over these costs in the quarter ended March 31, 1998. This increase was due primarily to increased fees and royalties to information providers as new sources were added and revenues increased, as well as additional staffing costs. Data communications costs increased approximately $7,000 (4%) during the three months ended March 31, 1999 compared to the three months ended March 31, 1998 as a result of the growth in the number customers to which the Company delivers its products. Product development expenses increased by approximately $26,000 (63%) for the three months ended March 31, 1999 compared to the three months ended March 31, 1998. This increase is the result of additional personnel in this department. Sales and marketing expenses increased by approximately $74,000 or approximately 34% for the quarter ended March 31, 1999 compared to the quarter ended March 31, 1998. This increase was due to increased compensation arising from the addition of sales and marketing personnel, increased expenses for advertising, promotional material and sales collateral, and additional commissions based on the increase in information services revenues during the period. General and administrative expenses for the three months ended March 31, 1999 were approximately $58,000 (20%) greater than these expenses during the three months ended March 31, 1998. This increase was due to expenses related to expanded office space and an increase in the allowance for doubtful accounts of approximately $27,000. The increase in the allowance reflects the changing dynamics of the industry with little or no barrier to entry for our distributors, an increased number of failed start-up companies and the quantity of new signed contracts. The Company earned operating income of approximately $178,000 during the quarter ended March 31, 1999, compared to operating income of $30,000 during the quarter ended March 31, 1998. The Company earned net income of approximately $158,000 during the quarter ended March 31, 1999, compared to net income of approximately $7,000 for the quarter ended March 31, 1998. The increase in operating and net income reflects the increase in revenues with a marginal increase in total expenses. Comparison of the nine months ended March 31, 1999, to the nine months ended March 31, 1998 During the nine months ended March 31, 1999, the Company's total revenues were approximately $5,276,000, or approximately $1,386,000 (36%) greater than the total revenues for the nine months ended March 31, 1998. Of the approximately $1,315,000 increase in information services revenues, approximately 88% reflects revenues from new customers obtained during the past twelve months and approximately 12% represents growth from existing customers. Revenue growth from existing customers consisted of usage-based royalties and certain contractual increases. The increase of approximately $71,000 in data communications revenues reflects billings for delivery of the Company's products to new customers. Total costs and expenses for the nine months ended March 31, 1999 were approximately $4,842,000, representing an approximate $1,045,000 (28%) increase in operating expenses from the nine months ended March 31, 1998. This increase in operating expenses is due to increases in information services costs, data communications costs, product development costs, sales and marketing, general and administrative and depreciation expenses. Information services costs during the nine months ended March 31, 1999 increased approximately $475,000 (29%) over these costs in the nine months ended March 31, 1998. This increase was due primarily to increased fees and royalties to information providers as new sources were added and revenues increased, additional staffing costs, and an increase in computer supplies and software expenses, partially offset by decreased maintenance costs. Data communications costs increased approximately $26,000 (5%) during the nine months ended March 31, 1999 compared with the nine months ended March 31, 1998. This increase is due to the increase in the number of customers to which the Company delivers its products, partially offset by the termination of an outdated method of delivery. Product development expenses increased by approximately $67,000 (58%) for the nine months ended March 31, 1999 compared to the nine months ended March 31, 1998. This increase is the result of additional personnel in this department. Sales and marketing expenses increased by approximately $244,000 or approximately 41% for the nine months ended March 31, 1999 compared to the nine months ended March 31, 1998. This increase was due to increased compensation arising from the addition of sales and marketing personnel, increased expenses for advertising, promotional material and sales collateral, increased travel expenses related to business development and additional commissions based on the increase in information services revenues during the period. General and administrative expenses for the nine months ended March 31, 1999 were approximately $226,000 (28%) greater than these expenses during the nine months ended March 31, 1998. This increase was primarily due to the write-off of a $28,500 account receivable from a customer who went out of business and an increase of approximately $113,000 in the allowance for doubtful accounts. With the changing dynamics of the industry, little or no barrier to entry for our distributors, the quantity of new signed contracts, and an increase in the number of failed start-up companies, the Company increased the allowance for doubtful accounts. Depreciation and amortization expense increased by approximately $8,000 over the nine months ended March 31, 1999 compared to the nine months ended March 31, 1998 due to additional equipment purchases. The Company earned operating income of approximately $435,000 during the nine months ended March 31, 1999, compared to operating income of $94,000 during the nine months ended March 31, 1998. The Company earned net income of approximately $369,000 for the nine months ended March 31, 1999, compared to net income of approximately $26,000 for the nine months ended March 31, 1998. The increase in operating and net income reflects the increase in revenues with a marginal increase in total expenses. FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES For the nine months ended March 31, 1999, the Company's operations produced operating income of approximately $435,000 and net income of approximately $369,000. At March 31, 1999, the Company had negative working capital of approximately $257,000 as compared with negative working capital of approximately $286,000 at June 30, 1998. The increase in working capital is a result of earnings offset by the substantial use of earnings in funding capital expenditures. The Company also had a net stockholders' deficit of approximately $358,000 at March 31, 1999, as compared to a net stockholders' deficit at June 30, 1998, of approximately $757,000. The decrease in stockholders' deficit was due to the retention of net income and the addition of capital through an Employee Stock Purchase Plan and the exercise of Company incentive stock options. For the nine months ended March 31, 1999, the Company's operating activities generated approximately $485,000 in cash. The Company had cash of approximately $177,000 at March 31, 1999, compared to approximately $170,000 at June 30, 1998. To date, the Company's operations have generated cash flow sufficient to cover its monthly expenses. The Company contemplates spending, over the next six months, an additional approximately $600,000 to complete the new hardware and software system platform. Current operations cash flow and the Company's $250,000 line of credit are expected to fund the expenditures. The Company continues to explore other financing options as well. 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, resulting in possible system failure or miscalculations causing disruptions of operations. The Company has completed an internal review and assessment of the impact of the Year 2000 issue upon its operating, financial and accounting systems. At this time the Company believes that, with respect to its internal systems, the Year 2000 issue will not pose any significant operational problems or costs. The Company has commenced a program to assess the impact of the Year 2000 issue with respect to the Company's major vendors and distributor customers, none of whom share information systems with the Company (external agents). Letters have been sent requesting detailed, written information concerning existing or anticipated Year 2000 compliance by their systems, insofar as the operating systems relate to the Company's business activities with such parties. The Company has received replies from a number of its vendors and distributor customers with encouraging results and will be sending second requests to those who have not responded. The Company has no means of ensuring that its external agents will be Year 2000 ready. The inability of external agents to complete their Year 2000 resolution process in a timely fashion could materially impact the Company. The effect of non-compliance by external agents is not determinable. Management of the Company believes it has an effective program in place to assess the Year 2000 issue. As noted above, the Company has not yet completed all necessary phases of the Year 2000 program. Failure on the part of the external agents to comply and disruptions in the economy generally resulting from Year 2000 issues could materially adversely affect the Company. The amount of potential liability and lost revenues cannot be reasonably estimated at this time. The Company currently has no contingency plans in place in the event its external agents do not complete all phases of the Year 2000 resolution process. The Company continues to monitor and assess whether such a plan is necessary. Except for the historical information contained herein, the matters discussed in this 10-Q include forward-looking statements that involve a number of risks and uncertainties. There are certain important external factors and risks, including business conditions and growth in the demand for real-time, aggregated custom on-line news delivery services, and growth in the economy in general; the impact of competitive products and pricing; the proliferation of large, global information networks; and the evolution of the Internet. Certain internal factors and risks exist as well, such as continued success in the acquisition and growth of new information re-distributor and corporate end-user client accounts; the ability to fund upgrades to the Company's technical systems; the timely creation and market acceptance of new products; the Company's ability to continue to increase the variety and quantity of sources of information available to create its products; the Company's ability to continue to recruit and retain highly skilled technical, editorial, managerial and sales/marketing personnel; the Company's ability to generate cash flow sufficient to cover its current obligations while meeting its long-term debt obligations. These and other risks detailed from time to time in the Company's SEC reports could cause results to differ materially from those anticipated by the statements contained herein. Part II. Other Information Items 1 - 5. None. Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits 27 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 duly caused this report to be signed on its behalf by the undersigned there unto duly authorized. COMTEX SCIENTIFIC CORPORATION (Registrant) Dated: May 14, 1999 By: /S/ CHARLES W. TERRY Charles W. Terry President and Chief Executive Officer (Principal Executive Officer) By: /S/ DONALD E. ZIEGLER Donald E. Ziegler Chief Financial Officer (Principal Financial and Accounting Officer) EX-27 2 FINANCIAL DATA SCHEDULE
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE QUARTERLY REPORT ON FORM 10-Q IN ITS ENTIRETY BY REFERENCE TO SUCH 10-Q. 1 9-MOS JUN-30-1999 JUL-01-1998 MAR-31-1999 176,657 0 1,427,225 (204,599) 0 1,459,845 1,423,582 (798,592) 2,152,090 1,716,725 0 0 0 80,784 (438,291) 2,152,090 5,276,496 5,276,496 0 4,841,663 0 0 65,103 369,730 441 369,289 0 0 0 369,289 .04 .03
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