-----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, MvYV4o/rJ94fS92rBRXSK8Qd9g5fzXb7YRgDwUQ5t05/TfyE5v+2H2et4Q350IUd 8Yg7XEouwN65KWA2/QwXkA== 0000950005-97-000638.txt : 19970714 0000950005-97-000638.hdr.sgml : 19970714 ACCESSION NUMBER: 0000950005-97-000638 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970531 FILED AS OF DATE: 19970711 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTEGRATED SYSTEMS INC CENTRAL INDEX KEY: 0000775163 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 942658153 STATE OF INCORPORATION: CA FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-18268 FILM NUMBER: 97639356 BUSINESS ADDRESS: STREET 1: 3260 JAY ST CITY: SANTA CLARA STATE: CA ZIP: 95054-3309 BUSINESS PHONE: 4089801500 MAIL ADDRESS: STREET 1: 3260 JAY STREET CITY: SANTA CLARA STATE: CA ZIP: 95054-3309 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended May 31, 1997 OR [ ] 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: 0-18268 ------------------------------ INTEGRATED SYSTEMS, INC. (Exact name of Registrant as specified in its charter) California 94-2658153 (State or other jurisdiction (I.R.S. employer of incorporation or organization) identification no.) ------------------------------ 201 Moffett Park Drive Sunnyvale, CA 94089 (408) 542-1500 (Address, including zip code, of Registrant's principal executive offices and telephone number, including area code) ------------------------------ 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 _____ The number of shares outstanding of the Registrant's Common Stock on June 30, 1997 was 23,153,216 shares. The Exhibit Index is located on page 12. Page 1 of 14 pages. INTEGRATED SYSTEMS, INC. INDEX
Page ---- PART I - FINANCIAL INFORMATION Item 1. Financial Statements 3 Condensed Consolidated Balance Sheets as of May 31, 1997 and February 28, 1997 4 Condensed Consolidated Statements of Income for the Three Months Ended May 31, 1997 and 1996 5 Condensed Consolidated Statements of Cash Flows for the Three Months Ended May 31, 1997 and 1996 6 Notes to Condensed Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Item 3. Quantitative and Qualitative Disclosures About Market Risks 11 PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K 12 SIGNATURES 13
================================================================================ This Form 10-Q contains forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995), including but not limited to statements regarding the Company's expectations, hopes or intentions regarding the future. Actual results and trends could differ materially from those discussed in the forward-looking statements. In addition, past trends should not be perceived as indicators of future performance. Among the factors that could cause actual results to differ from the forward-looking statements are those detailed elsewhere in this Report in Management's Discussion and Analysis of Financial Condition and Results of Operations and in the Company's Securities and Exchange Commission reports. ================================================================================ -2- PART I - FINANCIAL INFORMATION Item 1. Financial Statements The condensed consolidated interim financial statements included herein have been prepared by Integrated Systems, Inc. (the "Company"), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Although certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, the Company believes that the disclosures made are adequate to make the information presented not misleading. It is suggested that the condensed consolidated interim financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended February 28, 1997. The February 28, 1997 condensed consolidated balance sheet data was derived from the audited financial statements, but does not include all disclosures required by generally accepted accounting principles. The accompanying condensed consolidated interim financial statements have been prepared in all material respects in conformity with the standards of accounting measurements set forth in Accounting Principles Board Opinion No. 28 and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to summarize fairly the financial position, results of operations, and cash flows for the periods indicated. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year. -3- INTEGRATED SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) May 31, February 28, 1997 1997 --------- --------- (unaudited) ASSETS Current assets: Cash and cash equivalents $ 20,506 $ 25,585 Marketable securities 5,292 4,483 Accounts receivable, net 26,114 28,266 Deferred income taxes 1,750 1,676 Prepaid expenses and other 6,172 4,136 --------- --------- Total current assets 59,834 64,146 Marketable securities 36,539 24,627 Property and equipment, net 18,325 17,956 Intangible assets, net 2,767 3,136 Deferred income taxes 1,293 1,293 Other assets 1,136 1,344 --------- --------- Total assets $ 119,894 $ 112,502 ========= ========= LIABILITIES Current liabilities: Accounts payable $ 4,511 $ 4,143 Accrued payroll and related expenses 2,969 3,407 Other accrued liabilities 5,905 4,514 Income taxes payable 1,018 1,442 Deferred revenue 17,949 12,621 --------- --------- Total current liabilities 32,352 26,127 Other liabilities 81 203 --------- --------- Total liabilities 32,433 26,330 --------- --------- SHAREHOLDERS' EQUITY Common Stock, no par value, 50,000 shares authorized: 23,153 and 23,039 shares issued and outstanding at May 31, 1997 and February 28, 1997, respectively 62,030 61,158 Unrealized holding gain on marketable securities, net 87 148 Translation adjustment (873) (1,130) Retained earnings 26,217 25,996 --------- --------- Total shareholders' equity 87,461 86,172 --------- --------- Total liabilities and shareholders' equity $ 119,894 $ 112,502 ========= ========= The accompanying notes are an integral part of these condensed consolidated financial statements. -4- INTEGRATED SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited) Three Months Ended May 31, ----------------------- 1997 1996 -------- -------- Revenue: Product $ 15,012 $ 13,718 Services 9,576 9,433 -------- -------- Total revenue 24,588 23,151 -------- -------- Costs and expenses: Cost of product revenue 2,873 2,011 Cost of services revenue 4,856 4,174 Marketing and sales 10,060 8,821 Research and development 4,802 3,712 General and administrative 2,446 2,114 -------- -------- Total costs and expenses 25,037 20,832 -------- -------- Income (loss) from operations (449) 2,319 Interest and other income 795 1,394 -------- -------- Income before income taxes 346 3,713 Provision for income taxes 125 1,262 -------- -------- Net income $ 221 $ 2,451 ======== ======== Earnings per share $ 0.01 $ 0.11 ======== ======== Shares used in per share calculations 23,852 22,709 ======== ======== The accompanying notes are an integral part of these condensed consolidated financial statements. -5- INTEGRATED SYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
Three Months Ended May 31, ---------------------------- 1997 1996 -------- -------- Cash flows from operating activities: Net income $ 221 $ 2,451 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 1,469 962 Deferred income taxes (35) (9) Net income from unconsolidated subsidiary -- (483) Changes in assets and liabilities: Accounts receivable 2,376 (72) Prepaid expenses and other (2,036) (344) Accounts payable, accrued payroll and other accrued liabilities 1,321 (1,580) Income taxes payable (424) (4,440) Deferred revenue 5,328 1,893 Other assets and liabilities 86 (97) -------- -------- Net cash provided by (used in) operating activities 8,306 (1,719) -------- -------- Cash flows from investing activities: Purchases of marketable securities, net (12,821) (7,510) Additions to property and equipment, net (1,369) (13,095) Capitalized software development costs (100) (285) Other -- (152) -------- -------- Net cash used in investing activities (14,290) (21,042) -------- -------- Cash flows from financing activities: Repurchase of common stock (187) -- Proceeds from issuance of common stock -- 12,955 Proceeds from exercise of common stock options and purchases under the Employee Stock Purchase Plan 1,059 1,700 Tax benefit from disqualifying dispositions of common stock -- 3,379 -------- -------- Net cash provided by financing activities 872 18,034 -------- -------- Effect of exchange rate fluctuations on cash and cash equivalents 33 (52) Net decrease in cash and cash equivalents (5,079) (4,779) Cash and cash equivalents at beginning of period 25,585 21,822 -------- -------- Cash and cash equivalents at end of period $ 20,506 $ 17,043 ======== ======== Supplemental disclosure of cash flow information: Cash paid during the period for income taxes, net $ 458 $ 1,889 Supplemental schedule of noncash investing activities: Unrealized loss on marketable securities $ (100) $ (430) The accompanying notes are an integral part of these condensed consolidated financial statements.
-6- INTEGRATED SYSTEMS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Information for the three months ended May 31, 1997 and 1996 is unaudited) 1. Summary of Significant Accounting Policies The condensed consolidated financial statements include the accounts of Integrated Systems, Inc. and its wholly owned subsidiaries, after elimination of all significant intercompany accounts and transactions, and should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended February 28, 1997. These condensed consolidated financial statements do not include all disclosures normally required by generally accepted accounting principles. 2. Earnings Per Share Earnings per share is computed using the weighted average number of common and common equivalent shares outstanding during the period. Common equivalent shares result from the assumed exercise of outstanding stock options that have a dilutive effect when applying the treasury stock method. The following table sets forth the calculation of earnings per share for purposes of this report: Three Months Ended May 31, ------------------- (in thousands, except per share data) 1997 1996 ------- ------- (unaudited) Primary: Net income $ 221 $ 2,451 ======= ======= Number of shares: Weighted average number of common shares outstanding 23,121 21,506 Dilutive effect of stock options, net 731 1,203 ------- ------- 23,852 22,709 ======= ======= Earnings per share $ 0.01 $ 0.11 ======= ======= Fully diluted: Net income $ 221 $ 2,451 ======= ======= Number of shares: Weighted average number of common shares outstanding 23,121 21,506 Dilutive effect of stock options, net 731 1,301 ------- ------- 23,852 22,807 ======= ======= Earnings per share $ 0.01 $ 0.11 ======= ======= 3. Common Stock Repurchase and Repricing of Stock Options In April 1997, the Company offered employees the right to cancel certain outstanding stock options at original exercise prices and receive new options with a new exercise price. The new exercise prices range from $8.75 to $10.50 per share, based on the closing price of the common stock on the date individual employees agreed to cancel their original outstanding stock options. Options to purchase a total of 1,222,132 shares at original exercise prices ranging from $14.625 to $35.625 per share were canceled and new options were issued in April 1997. Vesting under the new options commenced on the date the individual employees agreed to cancel their original options, and occurs over a four year period at the rate of 25% one year after the date of grant and then 1/48th of the shares granted at the end of every one-month period thereafter. In April 1997, the Company announced that the Board of Directors had authorized the Company to repurchase up to 1,000,000 shares of common stock for cash from time-to-time at market prices. In April 1997, the Company repurchased 20,000 shares of common stock in open market transactions for $187,500 under this stock repurchase program. -7- 4. Contingencies In January 1997, a former employee filed a complaint against the Company and certain of its officers, alleging claims for, among other things, breach of contract, fraud, negligent misrepresentation and labor code violations. The complaint seeks general and specific damages of no less than $1.5 million plus exemplary damages, attorney's fees and costs of suit. The Company has filed answers to the complaint denying all of the allegations and asserting various affirmative defenses. The Company believes it has meritorious defenses to the claims and intends to defend the suit vigorously. In fiscal 1997, a distributor for the Company's sales and service subsidiary in Paris, France filed a complaint against the subsidiary alleging breach of contract. The complaint seeks damages of approximately $850,000. An answer to the complaint has been filed denying the allegations. The Company believes it has meritorious defenses to the claim and intends to defend the suit vigorously. The Company is involved in a contract dispute with a customer. Management believes it has meritorious defenses in relation to this dispute. No accrual for the above matters has been made in the accompanying condensed consolidated interim financial statements as the ultimate outcomes of the litigation and dispute presently are not determinable. The litigation and dispute are subject to inherent uncertainties and thus, there can be no assurance that the litigation or dispute will be resolved favorably to the Company or that they will not have a material adverse effect on the Company's financial position or results of operations. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The following information should be read in conjunction with the condensed consolidated interim financial statements and the notes thereto included in Item 1 of this Quarterly Report and with Management's Discussion and Analysis of Financial Condition and Results of Operations contained in the Company's Annual Report on Form 10-K for the year ended February 28, 1997, as filed with the Securities and Exchange Commission on May 29, 1997. Overview Integrated Systems, Inc. ("the Company") designs, develops, markets and supports software products and provides related engineering services principally for embedded microprocessor-based applications. The Company currently derives substantially all of its revenues from licensing these products and providing related maintenance and engineering and consulting services. In July 1996, the Company acquired Epilogue Technology Corporation ("Epilogue"), a New Mexico corporation in the business of developing network management and embedded Internet software for telecommunications and date communications equipment manufacturers, embedded software suppliers and networking related integrated circuit manufacturers. The combination was accounted for as a pooling of interests. The results of operations for Epilogue have been included only since the date of acquisition, as previous results were not significant. In November 1996, the Company revised the terms of the acquisition of Diab Data, Inc. ("Diab Data") which was acquired in fiscal year 1996 in a transaction accounted for under the equity method of accounting. Revising the terms of the original acquisition agreement requires the Company to consolidate the results of Diab Data from the fourth quarter of fiscal year 1997 forward. Forward-Looking Information is Subject to Risk and Uncertainty; Additional Risks and Uncertainties Except for the historical information contained in this Quarterly Report, the matters herein contain "forward-looking" statements and information (as defined in the Private Securities Litigation Reform Act of 1995) that involve risk and uncertainty. These forward-looking statements include, but are not limited to, the Company's liquidity and capital needs and various business environment and trend information. Actual future results and trends may differ materially depending on a variety of factors, including the volume and timing of orders received during the quarter, the mix of and changes in distribution channels through which the Company's products are sold, the timing and acceptance of new products and product enhancements by the Company or its competitors, changes in pricing, buyouts of run-time licenses, product life cycles, the level of the Company's sales of third party products, purchasing patterns of distributors and customers, competitive conditions in the industry, business cycles affecting the markets in which the Company's products are sold, extraordinary events, such as litigation or acquisitions, including related charges, and economic conditions generally or in various geographic areas. All of the foregoing factors are difficult to forecast. The future operating results of the -8- Company may fluctuate as a result of these and the other risk factors detailed in the Company's Annual Report on Form 10-K for the year ended February 28, 1997, and other documents filed by the Company with the Securities and Exchange Commission. Due to all of the foregoing factors, the Company believes that period-to-period comparisons of its results of operations are not necessarily meaningful and should not be relied upon as an indication of future performance. During the previous fiscal year, the Company's actual performance did not meet market expectations. It is likely that, in some future quarters, the Company's operating results will be below the expectations of stock market analysts and investors. Consequently, the purchase or holding of the Company's Common Stock involves an extremely high degree of risk. Results of Operations The following table sets forth for the periods presented the percentage of total revenue represented by each line item in the Company's condensed consolidated statements of income and the percentage change in each line item from the prior year period:
Percentage of Period-to-Period Total Revenue Percentage Change ------------- ----------------- Three Months Ended Three Months Ended May 31, May 31, 1997 1996 1997 compared to 1996 ---- ---- --------------------- Revenue: Product 61% 59% 9% Services 39 41 2 ---- ---- Total revenue 100 100 6 ---- ---- Costs and expenses: Cost of product revenue 12 9 43 Cost of services revenue 20 18 16 Marketing and sales 41 38 14 Research and development 19 16 29 General and administrative 10 9 16 ---- ---- Total costs and expenses 102 90 20 ---- ---- Income (loss) from operations (2) 10 Interest and other income 3 6 (43) ---- ---- Income before income taxes 1 16 (91) Provision for income taxes -- 5 (90) ---- ---- Net income 1% 11% (91)% ==== ====
Revenue The Company's total revenue increased 6% from $23.2 million in the first quarter of fiscal year 1997 to $24.6 million in the first quarter of fiscal year 1998. Product revenue increased 9% from $13.7 million in the first quarter of fiscal year 1997 to $15.0 million in the first quarter of fiscal year 1998. The increase in product revenue was primarily due to the inclusion of Diab Data and Epilogue product revenue in fiscal year 1998, plus increased unit shipments of SNiFF+. Services revenue increased 2% from $9.4 million in the first quarter of fiscal year 1997 to $9.6 million in the first quarter of fiscal year 1998, as a result of increases in maintenance revenue from the growing installed base of customers, offset in part by a decrease in certain consulting activities. The percentage of the Company's total revenue from customers located internationally was 33% in the first quarters of fiscal years 1998 and 1997. -9- Costs and Expenses The Company's cost of product revenue as a percentage of product revenue increased from 15% in the first quarter of fiscal year 1997 to 19% in the first quarter of fiscal year 1998. This increase is due to an increase in the proportion of product revenues subject to third party royalty costs. The Company's cost of services revenue as a percentage of services revenue increased from 44% in the first quarter of fiscal year 1997 to 51% in the first quarter of fiscal year 1998. This percentage increase is due to lower margins achieved on certain consulting activities. Marketing and sales expenses were $10.1 million and $8.8 million in the first quarters of fiscal years 1998 and 1997, respectively, representing 41% and 38%, of total revenue, respectively. These increases were primarily due to additional expenses associated with the Company's continued investment in the domestic and international sales forces and support infrastructure. Research and development expenses were $4.8 million and $3.7 million in the first quarters of fiscal years 1998 and 1997, respectively, representing 19% and 16%, respectively, of total revenue. These increases were primarily the result of increased personnel and consulting expenses associated with the development of several new products, and enhancing existing products. Costs that are required to be capitalized under Statement of Financial Accounting Standards No. 86, "Accounting for the Costs of Computer Software to be Sold, Leased or Otherwise Marketed" ("SFAS No. 86") were $100,000 in the first quarter of fiscal year 1998 compared to $285,000 in the first quarter of fiscal year 1997. The amounts capitalized represent approximately 2% of total research and development expenditures for the first quarter of fiscal year 1998 compared to 7% in the first quarter of the previous fiscal year. The amount of research and development expenditures capitalized in a given time period depends upon the nature of the development performed and, accordingly, amounts capitalized may vary from period to period. Capitalized costs are being amortized using the greater of the amount computed using the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product, or on a straight line basis over three years. Amortization for the first quarter of fiscal year 1998 was $281,000 compared to $229,000 for the first quarter of fiscal year 1997. General and administrative expenses were $2.4 million and $2.1 million in the first quarters of fiscal years 1998 and 1997, respectively, representing 10% and 9% of total revenue, respectively. The dollar increases were primarily the result of increased headcount, related in part to the acquisition of Epilogue and the consolidation of Diab Data. Interest and other income was $0.8 million in the first quarter of fiscal 1998 compared to $1.4 million in the first quarter of fiscal year 1997. The decrease is primarily due to the inclusion in fiscal year 1997 of net operating income of $730,000 from Diab Data which was required to be accounted for under the equity method of accounting until the fourth quarter of fiscal year 1997. Recent Accounting Pronouncements In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128 ("SFAS No. 128"), "Earnings per Share," which specifies the computation, presentation and disclosure requirements for earnings per share. SFAS No. 128 supersedes Accounting Principles Board Opinion No. 15, is effective for financial statements issued for periods ending after December 15, 1997, and requires that prior periods be restated. The impact of the adoption of SFAS No. 128 on the financial statements of the Company has not yet been determined. -10- Liquidity and Capital Resources The Company funds its operations principally through cash flows from operations. As of May 31, 1997, the Company had $62.3 million of cash, cash equivalents and marketable securities. This represents an increase of $7.6 million from February 28, 1997. In April 1997, the Company announced that the Board of Directors had authorized a new common stock repurchase program allowing the Company to repurchase up to 1,000,000 shares of common stock for cash, from time-to-time at market prices. No time limit was set for the completion of the program. In April 1997, the Company repurchased 20,000 shares of common stock for $187,500. Net cash provided by operating activities during the first quarter of fiscal year 1998 totaled $8.3 million, an increase of $10.0 million over the amount generated in the first quarter of fiscal year 1997. Net cash provided by operating activities increased, in spite of a decrease in net income, due mainly to changes in accounts receivable, accounts payable, accrued payroll and other accrued liabilities, income taxes payable, and deferred revenue. Net cash used in investing activities totaled $14.3 million in the first quarter of fiscal year 1998 compared to $21.0 million in fiscal year 1997. The decrease in net cash used in investing activities was due primarily to the purchase of a building in fiscal year 1997, offset in part, by an increase in net purchases of marketable securities. Net cash provided by financing activities totaled $0.9 million in the first quarter of fiscal year 1998 compared to $18.0 million in the first quarter of fiscal year 1997. The decrease in net cash provided by financing activities in the first quarter of fiscal 1998 was due to the issuance of common stock in May 1996. In addition the proceeds from the exercise of options to purchase common stock and purchases under the Employee Stock Purchase Plan were lower in the first quarter of fiscal year 1998. The first quarter of fiscal year 1997 also benefited from a large tax benefit from disqualifying dispositions of common stock. The Company believes that cash flows from operations, together with existing cash balances, will be adequate to meet the Company's cash requirements for working capital, stock repurchase and capital expenditures for the next 12 months and the foreseeable future. Item 3. Quantitative and Qualitative Disclosures About Market Risks Not applicable. -11- PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits. The following exhibit is filed herewith: Exhibit Page Number Title Number ------ ----- ------ 27.00 Financial Data Schedule 14 (b) Reports on Form 8-K. No reports on Form 8-K were filed by Registrant during the three months ended May 31, 1997. -12- 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 thereunto duly authorized. Dated: July 11, 1997 INTEGRATED SYSTEMS, INC. (Registrant) ----------------------------- DAVID P. ST. CHARLES President and Chief Executive Officer ---------------------------- WILLIAM C. SMITH Vice President, Finance and Chief Financial Officer -13- EX-27 2 FINANCIAL DATA SCHEDULE
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM Q1 FY98 FORM 10-Q FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS FEB-28-1998 MAR-01-1997 MAY-31-1997 20,506 5,292 26,114 0 0 59,834 18,325 0 119,894 32,352 0 0 0 62,030 25,431 119,894 15,012 24,588 2,873 7,729 17,308 0 0 346 125 221 0 0 0 221 0.01 0.01
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