-----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, Hio2AtJA6a4yFzDB8AuWXbhDN72/Y0F/tEJeCd+AZj9o5owlnGHbL5XVot6v0eZ9 BBtiV1HdTDe9W5OD/QvZSQ== 0000802851-97-000015.txt : 19970815 0000802851-97-000015.hdr.sgml : 19970815 ACCESSION NUMBER: 0000802851-97-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970814 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: LOGIC DEVICES INC CENTRAL INDEX KEY: 0000802851 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 942893789 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-17187 FILM NUMBER: 97661763 BUSINESS ADDRESS: STREET 1: 1320 ORLEANS DR CITY: SUNNYVALE STATE: CA ZIP: 94089 BUSINESS PHONE: 4087373300 MAIL ADDRESS: STREET 1: 628 EAST EVELYN AVE CITY: SUNNYVALE STATE: CA ZIP: 94086 10-Q 1 --------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended JUNE 30, 1997 Commission File Number 0-17187 --------------------------------------------------------------- LOGIC DEVICES INCORPORATED (Exact name of registrant as specified in its charter) --------------------------------------------------------------- CALIFORNIA 94-2893789 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1320 ORLEANS DRIVE, SUNNYVALE, CALIFORNIA 94089 (Address of principal executive offices) (Zip Code) (408) 542-5400 (Registrant's 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 Indicate the number of shares outstanding of the issuer's classes of common stock, as of the latest practicable date. On August 11, 1997, 6,121,750 shares of Common Stock, without par value, were outstanding. --------------------------------------------------------------- 1 of 19 pages LOGIC DEVICES INCORPORATED INDEX PAGE NUMBER Part I. Financial Information ITEM 1. FINANCIAL STATEMENTS Consolidated Balance Sheets as of June 30, 1997 3 and December 31, 1996 Consolidated Statements of Income for the three 4 months ended June 30, 1997 and 1996 Consolidated Statements of Income for the six 5 months ended June 30, 1997 and 1996 Consolidated Statements of Cash Flows for the 6 six months ended June 30, 1997 and 1996 Notes to Consolidated Financial Statements 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF 9 FINANCIAL CONDITION AND RESULTS OF OPERATIONS Part II. Other Information ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 14 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 15 Signatures 16 Exhibit 11 17 Exhibit 27 19 2 of 19 pages Part I - FINANCIAL INFORMATION Item 1. Financial Statements. LOGIC DEVICES INCORPORATED CONSOLIDATED BALANCE SHEETS June 30, December 31, 1997 1996 ASSETS (unaudited) Current assets: Cash and cash equivalents $ 434,200 $ 670,900 Accounts receivable, net of allowance 4,320,000 4,368,300 Inventories 13,610,600 13,928,900 Prepaid expenses 1,045,800 922,600 Income taxes receivable 703,000 789,800 Deferred income taxes 920,900 920,900 Total current assets 21,034,500 21,601,400 Equipment and leasehold improvements, net 4,721,000 4,204,300 Other assets 503,500 694,300 $25,259,000 $26,500,000 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Bank borrowings 2,950,000 2,000,000 Current portion of long-term obligations 561,900 561,900 Accounts payable 490,800 1,074,600 Accrued expenses 361,200 531,800 Total current liabilities 4,363,900 4,168,300 Long-term obligations 759,100 786,600 Deferred income taxes 419,500 419,500 Total liabilities 5,542,500 5,374,400 Shareholders' equity: Common stock 17,341,900 17,341,900 Common stock subscribed (307,500) (307,500) Retained earnings 3,682,100 4,091,200 Total shareholders' equity 20,716,500 21,125,600 $25,259,000 $26,500,000 3 of 19 pages LOGIC DEVICES INCORPORATED CONSOLIDATED STATEMENTS OF INCOME Three months ended June 30, 1997 and 1996 (unaudited) 1997 1996 Net revenues $ 3,021,500 $ 3,495,800 Cost of sales 2,033,600 1,799,300 Gross margin 987,900 1,696,500 Operating expenses: Research and development 364,400 400,700 Selling, general and administrative 865,400 1,109,900 Operating expenses 1,229,800 1,510,600 Income from operations (241,900) 185,900 Other income (expense), net (86,000) 27,900 Income before taxes (327,900) 213,800 Income taxes (130,000) 80,000 Net income $ (197,900) $ 133,800 Net income per common share $ (0.03) $ 0.02 Weighted average common share equivalents 6,121,750 6,221,750 outstanding 4 of 19 pages LOGIC DEVICES INCORPORATED CONSOLIDATED STATEMENTS OF INCOME Six Months ended June 30, 1997 and 1996 (unaudited) 1997 1996 Net revenues $ 5,824,500 $ 7,105,000 Cost of sales 3,794,600 3,774,700 Gross margin 2,029,900 3,330,300 Operating expenses: Research and development 756,400 794,800 Selling, general and administrative 1,822,800 2,021,100 Operating expenses 2,579,200 2,815,900 Income from operations (549,300) 514,400 Other income (expense), net (127,800) 68,600 Income before taxes (677,100) 583,000 Income taxes (268,000) 228,500 Net income $ (409,100) $ 354,500 Net income per common share $ (0.07) $ 0.06 Weighted average common share equivalents 6,121,750 6,221,750 outstanding 5 of 19 pages LOGIC DEVICES INCORPORATED CONSOLIDATED STATEMENTS OF CASH FLOWS Six months ended June 30, 1997 and 1996 (unaudited) 1997 1996 Cash flows from operating activities: Net income $ (409,100) $ 354,400 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 655,300 506,900 Change in operating assets and liabilities: Accounts receivable, net 48,300 (12,000) Inventories 318,300 (1,407,100) Prepaid expenses (123,200) 41,900 Accounts payable (583,800) (107,300) Accrued expenses (170,600) 6,600 Income taxes payable 86,800 (757,800) Net cash (used in) provided by operating (178,000) (1,374,400) activities Cash flows from investing activities: Capital expenditures (1,019,600) (725,200) Net increase in other assets 38,400 (46,500) Net cash (used in) investing activities (981,200) (771,700) Cash flows from financing activities: Bank borrowing, net 950,000 - Repayment of notes payable and long-term debt (27,500) (54,500) Proceeds from exercise of warrants - 258,900 Proceeds from exercise of employee stock options - 8,100 Net cash provided by 922,500 212,500 financing activities Net (decrease) increase in cash and cash equivalents(236,700) (1,933,600) Cash and cash equivalents at beginning of period $ 670,900 $4,378,500 Cash and cash equivalents at end of period $ 434,200 $2,444,900 6 of 19 pages LOGIC DEVICES INCORPORATED Notes to Consolidated Financial Statements June 30, 1997 and December 31, 1996 (unaudited) (A) BASIS OF PRESENTATION The accompanying unaudited interim financial statements reflect all adjustments which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the periods indicated. The accompanying unaudited interim financial statements have been prepared in accordance with the instructions for Form 10-Q and therefore do not include all information and footnotes necessary for a complete presentation of the financial position, results of operations, and cash flows, in conformity with generally accepted accounting principles. The Company has filed audited financial statements which include all information and footnotes necessary for such a presentation of the financial position, results of operations, and cash flows for the years ended December 31, 1996 and 1995, with the Securities and Exchange Commission. It is suggested that the accompanying unaudited interim financial statements be read in conjunction with the aforementioned audited financial statements. The unaudited interim financial statements contain all normal and recurring entries. The results of operations for the interim period ended June 30, 1997 are not necessarily indicative of the results to be expected for the full year. (B) INVENTORIES A summary of inventories follows: June 30, December 31, 1997 1996 Raw materials $ 2,720,400 $ 3,165,400 Work-in-process 6,892,400 6,744,900 Finished goods 3,997,300 4,018,600 $ 13,610,100 $ 13,928,900 Based on forecasted 1996 sales levels, the Company has on hand inventories aggregating approximately twelve months of sales. 7 of 19 pages LOGIC DEVICES INCORPORATED Notes to Consolidated Financial Statements June 30, 1997 and December 31, 1996 (unaudited) (C) DEBT FINANCING On June 16, 1997, the Company renewed its $6,000,000 revolving line of credit with Sanwa Bank extending the maturity to May 31, 1998. The line of credit bears interest at the bank's reference rate (8.50% at June 30, 1997). The line of credit is secured by the assets of the Company and requires the Company to maintain a minimum tangible net worth of $19,000,000, a maximum ratio of debt to tangible net worth of not more than 0.50 to 1.00, a minimum current ratio of not less than 2.00 to 1.00, a minimum quick ratio of not less than 1.00 to 1.00 increasing to 1.35 to 1.00 at September 30, 1997 and increasing again to 1.50 to 1.00 at December 31, 1997 and thereafter, and profitability of at least $1.00 for each fiscal quarter. As of June 30, 1997 the Company was not in compliance with the quarterly profitability covenant. The Company has obtained a waiver from the Bank for the quarterly profitability covenant. The Company expects to be in compliance with the Bank covenants for the periods ending September 30, 1997 and December 31, 1997. As of June 30, 1997, the Company had $3,050,000 available under the revolving line of credit. Under the terms of its line of credit facility, the Company is precluded from paying any cash dividends without the consent of the lender even if the Company is in compliance with all of the financial covenants but is allowed to pay stock dividends whether or not there was any other covenant violation. Regardless of any such restrictions in its bank loan agreements, the Company does not intend to pay cash dividends in the near future and anticipates reinvesting its cash flow back into operations. 8 of 19 pages Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. LOGIC DEVICES INCORPORATED MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS REVENUES Net revenues decreased by 14%, from $3,495,800 for the three months ended June 30, 1996 to $3,021,500 for the three months ended June 30, 1997. The decrease in revenues for the period was the result of lower sales volumes for the Company's products. Shipments of the Company's DSP products were down from the 1996 period as a result a significant military order which shipped in the 1996 period. Shipments of the Company's SRAM products increased slightly during the 1997 period. Net revenues decreased by 18%, from $7,105,000 for the six month period ended June 30, 1996 to $5,824,500 for the six months ended June 30, 1997. The decrease in revenues for the six month period was the result of lower sales volume for the Company's DSP products. The 1996 period included a large military order which completed in second quarter of 1996. Revenues from the Company's SRAM products increased slightly for the 1997 period. The lower sales volume for the 1997 period has been the result of a lower backlog of orders for the period due to a very weak order rate experienced since the last half of 1996. EXPENSES Cost of sales increased 13% from $1,799,300 or 52% of net revenues for the three months ended June 30, 1996 to $2,033,600 or 67% of net revenues for the same period in 1997. Gross profit decreased 42%, from $1,696,500 in the former period to $987,900 in the latter period. The decrease in gross profit is the result of lower revenues for the period combined with higher inventory costs which included increases in inventory reserves. As a percentage of net revenues, gross profit decreased from 48% for the three months ended June 30, 1996 to 33% for the three months ended June 30, 1997. Cost of sales increased 1% from $3,774,700 or 53% of net revenues for the six months ended June 30, 1996 to $3,794,600 or 65% of net revenues for the same period in 1997. Gross profit decreased 39% from $3,330,300 in the former period to $2,029,900 in the latter period. This was the result of the lower sales volume for the period combined with a lower profit margins experienced on the Company's SRAM products, and higher inventory costs which included increases in inventory reserves. 9 of 19 pages Research and development ("R & D") expenses for the three months ended June 30, 1997, were $364,400, a decrease from $400,700 for the same period in 1996. For the six month period, research and development expenses were $756,400 for 1997, decreasing from $794,800 for 1996. As a percentage of net revenues, R & D expenses were 12% for the three months ended June 30, 1997, compared to 11% for 1996. For the six months ended June 30, 1997, R & D expenses as a percentage of net sales were 13% compared to 11% for 1996. In both the 1996 and 1997 periods the Company dramatically increased its product development efforts. In 1996, the Company invested heavily in new design tools, development software, and additional personnel to increase and accelerate new product development for 1997. The Company also invested new product tooling at foundry sources to increase the Company's product offerings and diversify foundry sources. Even though the Company had slightly more R&D costs in the first half 1996 than 1997, the Company has increased its new product output in 1997. The Company intends to continue to make substantial investments in product R & D. Selling, general and administrative ("S,G & A") expenses were $865,400 for the three months ended June 30, 1997, a decrease from $1,109,900 for the same period in 1996. For the six months ended June 30, 1997, S, G & A expenses were $1,822,800, decreasing from $2,021,100 for the same period in 1996. As a percentage of net sales, selling, general and administrative expenses were 29% for the three months ended June 30, 1997 compared to 32% in 1996. As a percentage of net sales, selling, general and administrative expenses were 31% for the first six months of 1997 compared to 28% in 1996. S,G & A expenses have decreased as a result of lower sales commission expense due to the lower sales volume and consolidated sales network. The Company, however has increased its sales and marketing efforts substantially. Since the 1996 period, the Company has added a sales office in Southern California to service the south and midwest sales regions, a sales office in Great Britain to service the European market, consolidated its east-coast regional sales offices to one office in Florida, and increased the marketing and technical sales staff at the headquarters office. The Company has also increased its marketing promotional effort with ad placements and applications articles in industry trade publications as well as additional promotional materials and a newsletter for the Company's distributor and sales representatives. The Company intends to continue to expand these efforts in the future. Net operating income decreased to a loss of $241,900 for the three months ended June 30, 1997 versus income of $185,900 for the same period in 1996. For the six month period ended June 30, 1997 net operating income decreased to a loss of $549,300 from income of $514,400 for the same period in 1996. For the three month period in 1996, the Company earned $27,900 in Other Income from interest on cash invested versus Other Expense of $86,000 in 1997 which consisted of interest expense on outstanding debt. For the six month period in 1996, the Company earned $68,600 in Other Income from interest on cash invested versus Other Expense of $127,800 in 1997 which consisted largely of interest expense on outstanding debt. 10 of 19 pages As a result of the foregoing, there was a net loss for the three months ended June 30, 1997 of $197,900 compared to net income of $133,800 for the same period in 1996. For the six months ended June 30, 1997, there was a net loss of $409,100 compared to net income of $354,400 for the same period in 1996. LIQUIDITY AND CAPITAL RESOURCES CASH FLOWS For the six months ended June 30, 1997, the Company had after-tax cash earnings of $246,200 and $861,300 for the 1996 period. Although the Company has historically relied on after-tax earnings as the Company's primary source of financing for working capital needs and for capital expenditures, the Company used bank borrowing during the 1997 period. During the 1997 period, after-tax earnings of $246,200 and increases in bank borrowings of $950,000 and decreases in inventories of $318,300, funded decreases in accounts payable of $583,800 and accrued and prepaid expenses of $293,800 which resulted in net cash used by operations of $178,000 versus net cash used of $1,374,400 in 1996. The Company invested $981,200 in capital expenditures and other assets during the period. The Company received an income tax refund of $350,000 in the second quarter of 1997 and expects approximately $500,000 in the third quarter of 1997. During the 1996 period, after-tax earnings of $861,300 partially funded increases in inventory of $1,407,100 and payment of income taxes due of $757,800 which therefore resulted in net cash used in operations of $1,374,400 for the first six months of 1996. The Company also invested $771,700 in capital expenditures and other assets for 1996. The Company received proceeds of $267,000 from the exercise of certain warrants and employee stock options. The result was a net use of cash for the first six months of 1996 of $1,933,600. WORKING CAPITAL The Company's investment in inventories and accounts receivable has been significant and will continue to be significant in the future. Over prior periods, the Company, as a nature of its business, has maintained these levels of inventories and accounts receivable. The Company relies on third party suppliers for raw materials and as a result maintains substantial inventory levels to protect against disruption in supplies. The Company has historically maintained inventory turn over of approximately 225 days to 360 days, since 1990. The low point in inventory levels came in 1992 and 1993 when the Company had supply disruptions from one of its major suppliers. The Company looks at its inventories in relationship to its sales which have ranged from 140 days to 325 days within the periods between 1996 and 1990. This inventory to sales ratio is a more stable measure of inventory levels, versus the traditional inventory turnover measure because, at the times when the Company is experiencing supply disruptions, and therefore lower inventory levels, the Company is also experiencing increased costs of goods due to inefficiencies in its operations stemming from sporadic deliveries which skews the numerator and denominator in different directions for inventory turns calculations. The lowest days on hand of inventory to sales has been experienced when the Company has had supply disruptions as in 1992 and 1993. 11 of 19 pages The Company provides reserves for any product material that is over one year old with no back-log or sales activity, and reserves for future obsolescence. The Company also takes physical inventory write-downs for obsolescence. The Company's accounts receivable level has been consistently correlated to the Company's previous quarter revenue level. Because of the Company's customer scheduled backlog requirements, up to 80% of the quarterly revenues are shipped in the last month of the quarter. This has the effect of placing a large portion of the quarterly shipments reflected in accounts receivable still not yet due per the Company's net 30 day terms. This, combined with the fact that the Company's distributor customers (which make up 52 to 55% of the Company revenues) generally pay 90 days and beyond, results in the accounts receivable balance at the end of the quarterly period being at its highest point for the period. This has been consistent over prior periods. Although current levels of inventory and accounts receivable impact the Company's liquidity, the Company believes that it is a cost of doing business given the Company's fabless operation. The Company is in the process of diversifying its supplier base to reduce the risk of supply disruption. However, this will require a significant investment in product development to tooling with new suppliers. The Company believes that as it expands its customer base it will be able to even out the flow of its shipments within its quarterly reporting periods. FINANCING On June 16, 1997, the Company renewed its $6,000,000 revolving line of credit with Sanwa Bank extending the maturity to May 31, 1998. The line of credit bears interest at the bank's reference rate (8.50% at June 30, 1997). The line of credit is secured by the assets of the Company and requires the Company to maintain a minimum tangible net worth of $19,000,000, a maximum ratio of debt to tangible net worth of not more than 0.50 to 1.00, a minimum current ratio of not less than 2.00 to 1.00, a minimum quick ratio of not less than 1.00 to 1.00 increasing to 1.35 to 1.00 at September 30, 1997 and increasing again to 1.50 to 1.00 at December 31, 1997 and thereafter, and profitability of at least $1.00 for each fiscal quarter. As of June 30, 1997 the Company was not in compliance with the quarterly profitability covenant. The Company obtained a waiver from the Bank for the quarterly profitability covenant July 23, 1997. The Company expects to be in compliance with the Bank covenants for the periods ending September 30, 1997 and December 31, 1997. As of June 30, 1997, the Company had $3,050,000 available under the revolving line of credit. 12 of 18 pages Under the terms of its line of credit facility, the Company is precluded from paying any cash dividends without the consent of the lender even if the Company is in compliance with all of the financial covenants but is allowed to pay stock dividends whether or not there was any other covenant violation. Regardless of any such restrictions in its bank loan agreements, the Company does not intend to pay cash dividends in the near future and anticipates reinvesting its cash flow back into operations. While the Company will continue to evaluate debt and equity financing opportunities, it believes its financing arrangements and cash flow generated from operations provide a sufficient base of liquidity for funding operations and capital needs to support the Company's operations. 13 of 19 pages PART II - OTHER INFORMATION LOGIC DEVICES INCORPORATED Item 4. Submission of Matters to a Vote of Security Holders. The Annual Shareholders' meeting was held on June 19, 1997 at 10:30 a.m. in the Company's new headquarters located at 1320 Orleans Drive, Sunnyvale, CA. There were two items to be voted on at the meeting: first, was the election of the Board of Directors and, second was the approval of the Employee Stock Incentive Plan. There were 5,227,656 shares present or represented by proxy at the meeting representing a quorum. Shareholders are permitted to vote cumulatively in the election of directors which allows each shareholder to cast a number of votes equal to the number of directors to be elected by the number of shares owned and to distribute such votes among the candidates in such proportion as such shareholder may determine. In order to vote cumulatively, a shareholder must give notice of this intention by proxy or at the meeting. Thereafter, all shareholders will be entitled to cumulate votes. The votes for each nominee are as set forth in the following table: Votes Votes NOMINEE IN FAVOR AGAINST ABSTENTION Howard L. Farkas 7,860,918 778 146,641 Burton W. Kanter 4,565,118 278 146,641 Albert Morrison,Jr. 4,565,118 278 146,641 William J. Volz 4,564,568 278 146,641 Bruce B. Lusignan 4,566,508 0 146,641 Shareholders were permitted and asked to vote on the approval of the Employee Stock Incentive Plan. Of the 5,227,656 shares represented at the meeting, there were 2,700,931 broker non-votes and 2,526,725 shares were voted on the plan as follows: FOR AGAINST WITHHELD 2,384,144 142,581 1,350 Having received the affirmative vote of a majority of the shares represented and voting on the proposal (which shares voting affirmatively also constituted at least a majority of the required quorum), the proposal was approved. 14 of 19 pages Item 6. Exhibits and Reports on Form 8-K. (a) (1) Exhibit 11 - Computation of Earnings Per Common Share. (2) Exhibit 27 - Financial Data Schedule (b) No reports on Form 8-K have been filed during the quarter for which this report is filed. 15 of 19 pages 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. Logic Devices Incorporated (Registrant) Date: AUGUST 13, 1997 By /S/ WILLIAM J. VOLZ William J. Volz President and Principal Executive Officer Date: AUGUST 13, 1997 By /S/ TODD J. ASHFORD Todd J. Ashford Chief Financial Officer and Principal Financial and Accounting Officer 16 of 19 pages EXHIBIT 11 LOGIC DEVICES INCORPORATED Computation of Earnings per Common Share (unaudited) Three months ended June 30, 1997 and 1996 1997 1996 Weighted average shares of common stock 6,121,750 6,001,750 outstanding Dilutive effect of common stock options and stock warrants - 220,000 Weighted average common and 6,121,750 6,221,750 common share equivalents Net (loss) income $ (197,800) $ 133,800 Net (loss) income per common $ (.03) $ .02 share equivalent 17 of 19 pages EXHIBIT 11 LOGIC DEVICES INCORPORATED Computation of Earnings per Common Share (unaudited) Six months ended June 30, 1997 and 1996 1997 1996 Weighted average shares of common stock 6,121,750 6,001,750 outstanding Dilutive effect of common stock options and stock warrants - 220,000 Weighted average common and 6,121,750 6,221,750 common share equivalents Net (loss) income $ (401,900) $ 354,500 Net (loss) income per common $ (0.06) $ .06 share equivalent 18 of 19 pages EX-27 2 ART. 5 FDS FOR 2ND QUARTER 10-Q
5 1 6-MOS DEC-31-1996 JUN-30-1997 434,200 0 4,320,000 0 13,610,600 21,034,500 10,799,700 8,019,200 26,259,000 4,363,500 0 17,341,900 0 0 0 26,259,000 5,824,500 5,824,500 3,794,600 6,373,800 0 0 0 (677,100) (268,000) (409,100) 0 0 0 (409,100) (0.07) (0.07)
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