-----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, S83bEQvJ1HnUXXHCIcmwIy+3t37kjvDxTldIJkAAMqX4YVCJD7tuDF8Yow3W4Yx5 tB6H+gj9t1XnfTBnSNQPlA== 0000950146-96-002260.txt : 19961213 0000950146-96-002260.hdr.sgml : 19961213 ACCESSION NUMBER: 0000950146-96-002260 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961031 FILED AS OF DATE: 19961212 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: KURZWEIL APPLIED INTELLIGENCE INC /DE/ CENTRAL INDEX KEY: 0000769191 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 042815079 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-20256 FILM NUMBER: 96679971 BUSINESS ADDRESS: STREET 1: 411 WAVERLEY OAKS ROAD CITY: WALTHAM STATE: MA ZIP: 02154 BUSINESS PHONE: 6178935151 10QSB 1 QUARTERLY REPORT Securities and Exchange Commission Washington, DC 20549 FORM 10-QSB (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 1996 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to ______________ Commission file number 0-20256 KURZWEIL APPLIED INTELLIGENCE, INC. ---------------------------------------------------------------- (Exact name of small business issuer as specified in its charter) Delaware 04-2815079 - -------------------------------- ------------------------------------ (State or other jurisdiction of (IRS Employer Identification Number) incorporation or organization) 411 Waverley Oaks Road, Waltham, Massachusetts (02154) ------------------------------------------------------ (Address of principal executive offices) (617) 893-5151 --------------------------- (Issuer's telephone number) ----------------------------------------------------- (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 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 [ ] On October 31, 1996, there were 9,059,448 shares of Common Stock outstanding. Transitional Small Business Disclosure Format (Check one): Yes [ ] No [X] Exhibit index on Page 15 1 of 15 KURZWEIL APPLIED INTELLIGENCE, INC. FORM 10-QSB INDEX Page ---- Part I - Financial Information Item 1. Financial Statements Balance Sheets as of October 31, 1996 and January 31, 1996 3 Statements of Operations for the Three and Nine Month Periods Ended October 31, 1996 and 1995 4 Statements of Cash Flows for the Three and Nine Month Periods Ended October 31, 1996 and 1995 5 Notes to Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Part II - Other Information Item 1. Legal Proceedings 13 Item 6. Exhibits and Reports on Form 8-K 13 Signatures 14 Exhibit Index 15 2 of 15 PART I - FINANCIAL INFORMATION Item 1. Financial Statements KURZWEIL APPLIED INTELLIGENCE, INC. CONDENSED BALANCE SHEETS Unaudited (in thousands)
October 31, January 31, 1996 1996 -------------- ------------- ASSETS Current assets: Cash and cash equivalents $2,350 $2,084 Marketable securities available for sale 501 Trade accounts receivable, less allowances of $253,000 and $287,000 at October 31, 1996 and January 31, 1996, respectively 2,328 1,221 Inventory 370 398 Other current assets 348 262 -------------- ------------- Total current assets 5,396 4,466 Property and equipment, net 785 924 Intangible assets 933 1,745 Capitalized software development costs, net 2,376 1,593 Other assets 115 136 -------------- ------------- Total assets $9,605 $8,864 ============== ============= LIABILITIES Current liabilities: Accounts payable $898 $665 Accrued expenses 2,326 2,211 Capital lease obligations 29 Current portion of other long-term liabilities 1,019 902 -------------- ------------- Total current liabilities 4,243 3,807 Other long-term liabilities 1,152 2,169 STOCKHOLDERS' EQUITY Preferred stock, $.01 par value, 1,000,000 shares authorized; none issued and outstanding Common stock, $.01 par value; 15,000,000 and 10,000,000 shares authorized at October 31, 1996 and January 31, 1996, respectively; 9,059,448 and 5,733,387 shares issued and outstanding at October 31, 1996 and January 31, 1996, respectively 91 57 Additional paid-in capital 66,725 57,647 Common stock to be issued 5,075 Accumulated deficit (62,606) (59,891) -------------- ------------- Total stockholders' equity 4,210 2,888 -------------- ------------- Total liabilities and stockholders' equity $9,605 $8,864 ============== =============
The accompanying notes are an integral part of the condensed financial statements. 3 of 15 KURZWEIL APPLIED INTELLIGENCE, INC. CONDENSED STATEMENTS OF OPERATIONS Unaudited (in thousands, except for per share amounts)
Three Months Ended Nine Months Ended October 31, October 31, ------------------------------------------------------------- 1996 1995 1996 1995 ------------- ------------- ------------- ------------- Revenues: Product and license revenue $1,963 $1,589 $4,936 $6,016 Maintenance revenue 484 452 1,418 1,248 ------------- ------------- ------------- ------------- Total revenues 2,447 2,041 6,354 7,264 ------------- ------------- ------------- ------------- Operating costs and expenses: Cost of product, license and maintenance revenue 1,038 1,001 2,779 3,256 Sales and marketing 950 899 2,889 2,704 Research and development 816 646 2,248 1,762 General and administrative 344 310 1,240 1,049 ------------- ------------- ------------- ------------- Total operating costs and expenses 3,148 2,856 9,156 8,771 ------------- ------------- ------------- ------------- Operating loss (701) (815) (2,802) (1,507) Interest expense 1 3 3 10 Interest income 19 37 77 150 Other income, net 1 12 13 63 ============= ============= ============= ============= Net loss ($682) ($769) ($2,715) ($1,304) ============= ============= ============= ============= Net loss per common share ($0.07) ($0.11) ($0.33) ($0.19) ============= ============= ============= ============= Weighted average number of common shares outstanding 9,058,595 6,766,466 8,100,946 6,752,178 ============= ============= ============= =============
The accompanying notes are an integral part of the condensed financial statements. 4 of 15 KURZWEIL APPLIED INTELLIGENCE, INC. CONDENSED STATEMENTS OF CASH FLOWS Unaudited (in thousands)
Nine Months Ended October 31, ----------------------------- 1996 1995 ---------- --------- Cash flows from operating activities: Net loss ($2,715) ($1,304) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation 381 398 Amortization 1,455 1,368 Provision for doubtful accounts 5 Change in operating assets and liabilities: (Increase) in accounts receivable (1,107) (16) Decrease in inventory 28 365 (Increase) in other assets (96) (236) Increase in accounts payable 233 261 Increase (decrease) in accrued expenses and other liabilities 113 (598) --------- -------- Net cash (used in) provided by operating activities (1,708) 243 --------- -------- Cash flows from investing activities: Sale of marketable securities available for sale 501 Payments for property and equipment, net (242) (578) Capitalized software development costs (1,392) (973) --------- -------- Net cash (used in) investing activities (1,133) (1,551) --------- -------- Cash flows from financing activities: Payments on capital lease obligations (29) (80) Payments on licensing agreement (902) (798) Proceeds from issuance of capital stock, net 4,038 56 --------- -------- Net cash provided by (used in) in financing activities 3,107 (822) --------- -------- Net increase (decrease) in cash 266 (2,130) Cash and cash equivalents, beginning of period 2,084 4,307 --------- -------- Cash and cash equivalents, end of period $2,350 $2,177 ========= ========
The accompanying notes are an integral part of the condensed financial statements. 5 of 15 KURZWEIL APPLIED INTELLIGENCE NOTES TO CONDENSED FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION --------------------- For purposes of this Form 10-QSB, all references to "Fiscal 1997" mean the fiscal year of Kurzweil Applied Intelligence, Inc. (the "Company") ending January 31, 1997. All references to "Fiscal 1996" mean the Company's fiscal year ended January 31, 1996. The accompanying condensed unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Item 310 of Regulation S-B. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for the fair presentation have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the fiscal year. For further information, refer to the financial statements and footnotes thereto included in the Company's 1996 Annual Report for the fiscal year ended January 31, 1996. 2. LEGAL PROCEEDINGS ----------------- Texas Litigation On September 11, 1995, one of the Company's shareholders who opted out of the shareholder class action litigation against the Company, which was subsequently settled in April of 1995, filed a complaint in Dallas County, Texas against the Company and certain of its current and former directors and officers. The complaint asserts that the defendants committed fraud and violated Texas state law and unnamed federal securities laws. The shareholder seeks $1,500,000 in damages as a result of his purchase of 1,000 shares of the Company's Common Stock. Management believes that the damages being claimed are excessive and intends to defend its position vigorously. Nasdaq Regulatory Requirements - ------------------------------ At April 30, 1996 the Company was not in compliance with the Nasdaq net worth requirement for the listing of the Company's Common Stock on the Nasdaq National Market. The Company's filing of the Form 10-QSB for the period of July 31, 1996 demonstrated compliance and the Company's listing continued. This filing of Form 10-QSB for the period ended October 31, 1996 also demonstrated compliance, but there can be no assurance that the Company will be able to maintain its listing in future filings. Suspension of the Company's common stock from trading on the Nasdaq National Market may adversely affect the price of the Company's common stock. 6 of 15 3. INTANGIBLE ASSETS AND OTHER LONG-TERM LIABILITIES ------------------------------------------------- On September 23, 1993, the Company and Dragon Systems, Inc. "Dragon" settled certain patent infringement litigation between the two companies. As part of such settlement agreement, the Company licensed certain Dragon patents related to continuous speech and other aspects of speech recognition technology. The Company paid Dragon $1,331,250 in Fiscal 1994, $798,000 in Fiscal 1996 and $901,810 in June 1996. Under the terms of this agreement, the Company was committed to make aggregate payments of $5,202,000 including $625,000 in settlement of amounts due for products sold during periods prior to September 23, 1993. The following mandatory payments remain outstanding as of October 31, 1996: June 1, 1997 1,019,460 June 1, 1998 1,151,523 ----------- Total $2,170,983 ========== The Company expensed $1,107,600 during Fiscal year 1996, and will amortize the remaining asset of $646,000 on a straight-line basis through May 31, 1997. The Company expensed $830,700 relating to the Dragon agreement for the nine months ended October 31, 1996. According to the agreement, the Company, if it chooses not to extend the license, has use of the licensed technology through May 31, 1997. The final payment will then be made in Fiscal 1999. The Company, at its option, can annually extend the license of the technology through Fiscal 2006, at which time the license would be fully paid. Total additional annual payments increasing at a rate of 13% per year during the extension period would approximate $13.5 million. 4. Capital Stock ------------- On May 3, 1996, the Company's Board of Directors adopted an amendment to the Company's Amended and Restated Certificate of Incorporation to increase the number of shares of common stock that the Company is authorized to issue from 10 million to 15 million shares. The amendment was approved by stockholders at the Annual Meeting on July 19, 1996. On May 10, 1996, the Company received approximately $2,376,000 from the private sale of 1,320,050 shares of common stock to an investment fund. On July 31, 1996, the Company received approximately $1,669,500 from the private sale of 927,500 shares of common stock to accredited investors. In conn ection with these private sales, the Company also issued 224,755 warrants to purchase shares of the Company's common stock at a price of $2.00 per share which are exercisable for a period of up to ten years. 7 of 15 Item 2. Management's Discussion And Analysis Of Financial Condition And --------------------------------------------------------------- Results Of Operations --------------------- RESULTS OF OPERATIONS - --------------------- Total Revenues. The Company's total revenues consist of revenue from the sale and licensing of Company products and revenue from maintenance contracts. Three months. Revenue for the three months ended October 31, 1996 totaled $2,447,000, 20% higher than the $2,041,000 of revenue in the same period of the prior year. The increase in revenue was largely a result of increased product and license sales for Kurzweil Voice for Windows. Nine Months. Revenue for the nine months ended October 31, 1996 totaled $6,354,000, 12% lower than the $7,264,000 of revenue in the same period of the prior year. Lower shipments of the Company's VoiceMED products , primarily in the first quarter of Fiscal 1997, were largely responsible for the decline in sales for the nine month period. On July 30, 1996, the Company released for shipment the Kurzweil Clinical Reporter system, the Company's Windows(R) based medical reporting product. Medical product revenues were $1,257,000 for the third quarter ended October 31, 1996 as compared to $1,359,000 for the same period of the prior year. The decrease was a result of lower medical orders received from the government as compared to the prior year. Product sales for Kurzweil Voice for Windows increased to $587,000 for the three months ended October 31, 1996 as compared to $215,000 for the same period of the prior year. License fees for the Kurzweil Voice for Windows product for the quarter ended October 31, 1996 was $125,000 compared to $15,000 for the same period of the prior year. Maintenance revenue for the three month period ended October 31, 1996 increased to $484,000 from $452,000 in the same period of the prior year. This increase was a result of the larger installed base of medical systems as compared to the same period of the prior year. Maintenance revenue for the nine month period ended October 31, 1996 increased to $1,418,000 from $1,248,000 in the same period of the prior year. The increase was a result of the larger installed base of customers as well as the increased efforts by the Company to promote revenue from maintenance contracts. 8 of 15 Cost of Product, License and Maintenance Revenue. Cost of product, license and maintenance revenue includes hardware costs, manufacturing overhead, system replacement parts associated with maintenance contracts, third party software royalties and license fees, and amortization of capitalized software. Three months. Cost of product, license and maintenance revenue for the three months ended October 31, 1996 totaled $1,038,000 or 42% of total revenues, compared to $1,001,000 or 49% of total revenues in the same period of the prior year. The decrease in cost of product, license and maintenance revenue as a percentage of total revenues was largely a result of an increase in the higher margin, "software only" sales, as compared to the same period of the prior year. The Company has been successful in its efforts to reduce or eliminate certain hardware components from being bundled in its sales transactions, resulting in revenue transactions that have only a software component. Nine Months. Cost of product, license and maintenance revenue for the nine months ended October 31, 1996 totaled $2,779,000 or 43% of total revenues, compared to $3,256,000 or 44% of total revenues in the same period of the prior year. The decrease is a result of the increasing proportion of software only revenue transactions. Sales and Marketing Expenses. Sales and marketing expenses include the costs for marketing, selling and supporting the Company's products. Three Months. Sales and marketing expenses increased to $950,000 for the three months ended October 31, 1996 from $899,000 in the same period of the prior year, representing 39% and 44% of total revenues, respectively. The increase in expenses was primarily the result of the continued spending to market and sell the Kurzweil Clinical Reporter product line, which was launched in the second quarter of Fiscal 1997. Those higher expenses included an increased sales force, trade shows, promotion and collateral marketing materials. Nine Months. Sales and marketing expenses increased to $2,889,000 for the nine months ended October 31, 1996 from $2,704,000 in the same period of the prior year, representing 45% and 37% of total revenues, respectively. The higher expenses were primarily the result of the increased spending to market and sell the Kurzweil Clinical Reporter product line in the nine months ended October 31, 1996. Research and Development Expenses. Research and development expenditures consist principally of personnel costs, allocated facility costs, and associated equipment amortization and depreciation. A portion of the total research and development expenditures are capitalized in accordance with Financial Accounting Standards No. 86, "Accounting for the Costs of Computer Software to be Sold, Leased or Otherwise Marketed," the amortization of which is included in cost of product, license and maintenance revenue. 9 of 15 Three Months. Total research and development expenses, net of capitalization, for the three month period ended October 31, 1996 increased to $816,000 or 33% of total revenues, compared to $646,000 or 32% of total revenues in the same period of the prior year. The increase was primarily the result of expenses related to the increased staffing of the research and development group. The Company has continued its commitment to the development and enhancement of new products and technology. The research and development group including technical documentation totaled 66 people at October 31, 1996 as compared to 52 at the end of October of the prior year. Nine Months. Total research and development expenses, net of capitalization, increased to $2,248,000 for the nine months ended October 31, 1996 from $1,762,000 in the same period of the prior year, representing 35% and 24% of total revenues, respectively. The increased staffing and related expenses were responsible for the increase in expenses over the comparable periods. The capitalized software development asset account has increased $783,000 since January 31, 1996. This increase is largely attributable to the increased development staffing required for new and enhanced products, including the delivery of the new Clinical Reporter and Kurzweil Voice for Windows 2.0 products in Fiscal 1997. General and Administrative Expenses. General and administrative expenses include those costs associated with general corporate needs and administrative functions. Three months. General and administrative expenses increased to $344,000 for the three months ended October 31, 1996 from $310,000 in the same period of the prior year, representing 14% and 15% of total revenues, respectively. The increase was attributable to additional expenditures for general corporate purposes relating largely to various stock holder and legal expenses. Nine months. General and administrative expenses increased to $1,240,000 for the nine months ended October 31, 1996 from $1,049,000 in the same period of the prior year, representing 19% and 14% of total revenues, respectively. The increase was primarily a result of reserves taken during the first quarter of fiscal 1997 for litigation expenses. Income Taxes. At January 31, 1996, the Company had federal net operating loss carryforwards of approximately $49,000,000. In addition, at January 31, 1996, the Company had federal tax credit carryforwards of approximately $900,000. The net operating loss carryforwards and the tax credit carryforwards expire during the years 1997 through 2009. Substantially all of the Company's net operating loss and tax credit carryforwards are subject to limitation under the provisions of Section 382 of the Internal Revenue Code. The limitation, and a change in ownership resulting from various financing activities implemented by the Company, would impact the amount of both the operating loss carry forwards and the tax credit carry forwards available to offset future income and income tax liabilities. There can be no assurance that any of these amounts will be available for use by the Company. 10 of 15 LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- At October 31, 1996, the Company's principal source of liquidity was cash and cash equivalents of $2,350,000 as compared to cash and cash equivalents of $2,084,000 at January 31, 1996. The Company's operating activities used cash of $1,708,000 for the nine months ended October 31, 1996. The Company will be required to pay $1,019,000 to Dragon Systems Inc., on June 1, 1997 as part of the patent cross license agreement. (See Note 3 "Intangible Assets and Other Long - Term Liabilities" of Notes to Condensed Financial Statements.) At October 31, 1996 the Company had working capital of $1,153,000 as compared to working capital of $659,000 at January 31, 1996. This increase results primarily from the private placement equity sales less amounts used to fund the Company's losses and other commitments. Accounts receivable has increased $1,107,000 since January 31, 1996 due largely to an increase in revenues, and one receivable of $400,000 from one customer that remains unpaid from the first quarter of Fiscal 1997. That one receivable relates to a contract pursuant to which the Company has fulfilled all its performance obligations. The Company is in negotiations with that customer in order to resolve the delay in payment. In order to fund its losses through the transition period of new product introductions, on May 10, 1996 the Company raised approximately $2,376,000 from the private placement of 1,320,050 shares of Common Stock to an investment fund. On July 31, 1996 the Company received an additional $1,669,500 through the private placement of 927,500 shares of Common Stock to accredited investors. The Company believes it now has sufficient funds to sustain its operations through at least mid Fiscal 1998, although the Company's ability to sustain its operations will depend on, among other factors, the level and profitability of its revenues. The longer term financial stability of the Company is dependent on achieving profitable operations and obtaining additional financing. The Company's future capital requirements will depend on many factors, including the progress and scope of its research and development programs and the level and profitability of sales. To the extent that the Company is not able to fund its future operations through the sale of its products, the Company will need to obtain additional funds through private or public financing. There is no assurance that the Company can obtain such additional financing. If the Company requires additional financing or additional financing is not obtained, the Company will likely be required to restructure its operations, curtail its spending in research and development, or attempt a merger or other strategic alliance with another company. Public financing would be subject to market conditions and other uncertainties, and no assurance can be given that the Company could obtain public financing at any time. Either public or private equity financing is likely to result in dilution of the Company's existing stockholders. 11 of 15 Certain Factors that May Affect Future Results The Company's future results are subject to substantial risks and uncertainties. The Company currently derives substantially all of its revenue from the sale of software licenses that utilize speech recognition to create text documents. The Company believes that factors affecting the ability of the Company's products to achieve general market acceptance include product performance, price, ease of adoption and learning. To be successful in the future the Company must respond promptly and effectively to the challenges of technological change and its competitors' innovations by continually enhancing its current products and developing new products on a timely basis. Certain current and potential competitors of the Company are more established, benefit from greater market recognition and have substantially greater financial, development and marketing resources than the Company. Competitive pressures or other factors, including entry into new markets, may result in significant price erosion that could have a material adverse effect on the Company's results of operations. The Company believes that its operating results could vary significantly from quarter to quarter. The Company's revenues in any quarter are substantially dependent on orders booked and shipped in that quarter. The timing of revenue receipts is influenced by a number of factors, including; the timing of individual orders and shipments of its products, customer buying patterns, changes and delays in product development, and the amount and timing of sales and marketing expenditures. Because the Company's operating expenses are based on anticipated revenue levels and a high percentage of the Company's expenses are relatively fixed in the short-term, variations in revenues can cause significant fluctuations in operating results from quarter to quarter and may result in anticipated quarterly earnings shortfalls or losses. Cautionary Statement From time to time, information provided by the Company or statements made by its employees may contain "forward-looking" information which involves risk and uncertainties. In particular, statements contained in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, which are not historical facts (including, but not limited to statements concerning anticipated operating expense levels and such expense levels relative to the Company's total revenues and expected losses) are "forward-looking statements." The Company's actual future results may differ significantly from those stated in any forward-looking statements. Factors that may cause such differences include, but are not limited to the factors discussed above as well as the accuracy of the Company's internal estimates of revenue and operating expense levels. Each of these factors, and others, are discussed from time to time in the Company's Securities and Exchange Commission filings. 12 of 15 Part II - OTHER INFORMATION Item 1. Legal Proceedings ----------------- Reference is made to Footnote 2 of Notes to the Condensed Financial Statements for a description of certain litigation and other legal proceedings. Item 6. Exhibits and Reports on Form 8-K -------------------------------- (a) Exhibits. Exhibit No. Description ----------- ----------- 27 Financial Data Schedule (EDGAR Filing only) (b) Reports on Form 8-K. During the third fiscal quarter of Fiscal 1997, the following reports on Form 8-K were filed: Date: July 31, 1996 Item Reported: Item 5 Other Events (Private Placement) Date: September 27, 1996 Item Reported: Item 4. Changes In Registrant's Certifying Accountant No financial statements were filed with the foregoing reports. 13 of 15 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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. Date December 12, 1996 KURZWEIL APPLIED INTELLIGENCE, INC. By: /s/ Thomas E. Brew, Jr. ------------------------------------ Thomas E. Brew, Jr. President and Chief Executive Officer By: /s/ Thomas B. Doherty ------------------------------------ Thomas B. Doherty Chief Financial Officer, Vice President of Finance and Treasurer (principal financial and accounting officer) 14 of 15 EXHIBIT INDEX Exhibit No. Description At Page - ----------- ----------- ------- 27 Financial Data Schedule (EDGAR Filing only) 15 of 15 EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 U.S. DOLLARS 3-MOS JAN-31-1997 AUG-01-1996 OCT-31-1996 1 2,350 0 2,328 0 370 5,396 785 0 9,605 4,243 0 0 0 91 4,119 9,605 2,447 2,447 1,038 3,148 0 0 1 (682) 0 (682) 0 0 0 (682) (0.07) (0.07)
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