-----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, Gf1cXepj1xbpTRo/FD6vkjWrm+QBUjn6xmU6Mcdq4hmIxxWTCqxyIoB8txMqqdc5 fE9/0fmMRJru+P3+si6Jlg== 0000811716-96-000004.txt : 19960813 0000811716-96-000004.hdr.sgml : 19960813 ACCESSION NUMBER: 0000811716-96-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960629 FILED AS OF DATE: 19960812 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEQUENT COMPUTER SYSTEMS INC /OR/ CENTRAL INDEX KEY: 0000811716 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COMPUTERS [3571] IRS NUMBER: 930826369 STATE OF INCORPORATION: OR FISCAL YEAR END: 0102 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-15627 FILM NUMBER: 96608758 BUSINESS ADDRESS: STREET 1: 15450 SW KOLL PKWY STREET 2: ED02-803 CITY: BEAVERTON STATE: OR ZIP: 97006-6063 BUSINESS PHONE: 5036265700 MAIL ADDRESS: STREET 1: 15450 SW KOLL PKWY STREET 2: ED02 -803 CITY: BEAVERTON STATE: OR ZIP: 97006-6063 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (X) Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 29, 1996 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: 0-15627 SEQUENT COMPUTER SYSTEMS, INC. (Exact name of registrant as specified in its charter) Oregon 93-0826369 (State or other jurisdiction (I.R.S. Employer of organization or incorporation) Identification Number) 15450 S.W. Koll Parkway Beaverton, Oregon 97006-6063 (Address of principal executive offices, including zip code) (503) 626-5700 (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 report), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 33,623,358 common shares were issued and outstanding as of July 31, 1996. SEQUENT COMPUTER SYSTEMS, INC. PART I. FINANCIAL INFORMATION Page No. Item 1. Consolidated Financial Statements Consolidated Balance Sheets - June 29, 1996 and December 30, 1995 3 Consolidated Statements of Operations - Three months and six months ended June 29, 1996 and July 1, 1995 4 Consolidated Statements of Changes In Shareholders' Equity - January 1, 1994 through June 29, 1996 5 Consolidated Statements of Cash Flows - Six months ended June 29, 1996 and July 1, 1995 6 Notes to Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 10 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibit 11 - Statement regarding computation of earnings per share. (b) No reports on Form 8-K were filed by the Company during the fiscal quarter ended June 29, 1996. SEQUENT COMPUTER SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS - Unaudited (in thousands, except per share amounts) June 29, 1996 Dec. 30, 1995 ASSETS Current assets: Cash and cash equivalents $ 62,289 $ 61,939 Restricted deposits 28,234 39,642 Receivables, net 135,275 178,322 Inventories 74,615 60,853 Prepaid royalties and other 25,305 13,464 Total current assets 325,718 354,220 Property and equipment, net 114,287 98,165 Capitalized software costs, net 51,829 45,381 Intangible assets and other, net 19,446 6,157 Total assets $ 511,280 $ 503,923 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Notes payable $ 28,234 $ 41,146 Accounts payable and other 63,549 60,095 Accrued payroll 16,589 11,723 Unearned revenue 26,668 21,466 Income taxes payable 5,258 4,981 Current obligations under capital leases and debt 1,714 60 Total current liabilities 142,012 139,471 Other accrued expenses 2,638 2,158 Long-term obligations under capital leases and debt 7,668 9,106 Total liabilities 152,318 150,735 Shareholders' equity: Common stock, $.01 par, 33,618 and 33,221 shares outstanding 336 332 Paid-in capital 305,249 302,186 Retained earnings 56,849 52,945 Foreign currency translation adjustment (3,472) (2,275) Total shareholders' equity 358,962 353,188 Total liabilities and shareholders' equity $ 511,280 $ 503,923 See notes to consolidated financial statements. SEQUENT COMPUTER SYSTEMS, INC. AND SUBSIDIARIES SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS - Unaudited (in thousands, except per share amounts)
Three Months Ended Six Months Ended June 29, 1996 July 1, 1995 June 29, 1996 July 1, 1995 Revenue: Product revenue $ 99,549 $ 104,548 $ 180,658 $ 186,529 Service revenue 43,038 34,659 82,674 68,777 Total revenue 142,587 139,207 263,332 255,306 Costs and expenses: Cost of products sold 47,494 48,500 86,147 87,430 Cost of service revenue 33,890 25,625 64,501 50,105 Research and development 12,265 10,329 24,527 19,745 Selling, general and admin. 44,422 39,183 82,667 73,290 Total costs and expenses 138,071 123,637 257,842 230,570 Operating income 4,516 15,570 5,490 24,736 Interest, net 214 271 427 344 Other, net (201) (170) (564) (900) Income before provision for income taxes 4,529 15,671 5,353 24,180 Provision for income taxes 1,223 4,661 1,449 7,217 Net income $ 3,306 $ 11,010 $ 3,904 $ 16,963 Net income per share $ 0.10 $ 0.33 $ 0.12 $ 0.51 Weighted average number of common and common equivalent shares outstanding 34,165 33,067 33,891 33,075 See notes to consolidated financial statements. SEQUENT COMPUTER SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - Unaudited (in thousands) Foreign Retained Currency Preferred Stock Common Stock Paid-in Earnings Trans- Shares Amount Shares Amount Capital (Deficit) lation Total Balance, Dec. 31, 1994 -- $ -- 31,360 $ 314 $ 278,145 $ 17,872 $ (5,136) $ 291,195 Common shares issued -- -- 1,798 18 18,298 -- 18,316 Tax benefit of option exercises -- -- -- -- 4,743 -- -- 4,743 Conversion of debentures -- -- 63 -- 1,000 -- -- 1,000 Net income -- -- -- -- -- 35,073 -- 35,073 Foreign currency translation adjustment -- -- -- -- -- -- 2,861 2,861 Balance, Dec. 30, 1995 -- $ -- 33,221 $ 332 $ 302,186 $ 52,945 $(2,275) $ 353,188 Common shares issued -- -- 233 3 2,468 2,471 Tax benefit of option exercises -- -- -- -- 46 -- -- 46 Net income -- -- -- -- -- 598 -- 598 Foreign currency translation adjustment -- -- -- -- -- -- (1,194) (1,194) Balance, March 30, 1996 -- -- 33,454 $ 335 $ 304,700 $ 53,543 $(3,469) $ 355,109 Common shares issued -- -- 164 1 526 527 Tax benefit of option exercises -- -- -- -- 23 -- -- 23 Net income -- -- -- -- -- 3,306 -- 3,306 Foreign currency translation adjustment -- -- -- -- -- -- (3) (3) Balance, June 29, 1996 -- -- 33,618 $ 336 $ 305,249 $ 56,849 $(3,472) $ 358,962 See notes to consolidated financial statements.
SEQUENT COMPUTER SYSTEMS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS - Unaudited (in thousands) Six Months Ended June 29, 1996 July 1, 1995 Operating activities: Net income $ 3,904 $ 16,963 Reconciliation of net income to net cash provided by operating activities - Depreciation and amortization 30,108 25,237 Changes in assets and liabilities - Receivables, net 43,047 (14,999) Inventories (13,762) (2,917) Prepaid expenses (11,840) (6,136) Accounts payable and other (323) 1,175 Accrued payroll 4,866 (603) Unearned revenue 5,202 5,787 Income taxes payable 277 2,088 Deferred income taxes (21) -- Other, net 4,277 1,106 Net cash provided by operating activities 65,735 27,701 Investing activities: Restricted deposits 11,408 22,586 Purchases of property and equipment, net (36,309) (24,740) Capitalized software costs (16,178) (11,077) Intangibles and other assets (13,479) (63) Foreign currency translation (1,197) 2,207 Net cash used for investing activities (55,755) (11,087) Financing activities: Notes payable, net (12,912) (22,586) Proceeds (payments) under capital lease obligations 216 (534) Long-term debt, net -- 216 Stock issuance proceeds, net 3,066 7,457 Net cash (used) provided by financing activities (9,630) (15,447) Net increase in cash and cash equivalents 350 1,167 Cash and cash equivalents at beginning of period 61,939 46,291 Cash and cash equivalents at end of period $ 62,289 $ 47,458 See notes to consolidated financial statements. SEQUENT COMPUTER SYSTEMS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 29, 1996 Basis of Presentation The accompanying consolidated financial statements are unaudited and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission and in the opinion of management include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of the results for the interim periods. 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. These consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company's annual report and Form 10-K for the fiscal year ended December 30, 1995. The Company's fiscal year is based on a 52-53 week calendar ending the Saturday closest to December 31. The accompanying consolidated financial statements include the accounts of Sequent Computer Systems, Inc. and its wholly owned subsidiaries (the Company or Sequent). All significant intercompany accounts and transactions have been eliminated. The results for interim periods are not necessarily indicative of the results for the entire year. Accounts Receivable At June 29, 1996, accounts receivable in the accompanying consolidated balance sheet is net of $17 million received by the Company under its two year agreement to sell its domestic accounts receivables. Inventories Inventories consist of the following: (in thousands) June 29, Dec. 30, 1996 1995 Raw Materials $ 16,951 $ 9,385 Work in Process 2,668 1,736 Finished Goods 54,996 49,732 $ 74,615 $ 60,853 Property and Equipment Property and equipment consist of the following: (in thousands) June 29, Dec. 30, 1996 1995 Land $ 5,037 $ 5,037 Operational Equipment 156,593 134,897 Furniture and Office Equipment 74,349 67,010 Leasehold Improvements 17,510 15,974 253,489 222,918 Less Accum. Depr. & Amort. 139,202 124,753 $ 114,287 $ 98,165 Research and Development Amortization of capitalized software costs, generally based on a three-year life, was $4.8 million and $9.6 million for the three month and six month periods ended June 29, 1996, respectively. Amortization for the same periods in 1995 was $4.0 million and $7.6 million, respectively. Notes Payable The Company has an unsecured line of credit agreement with a group of banks which provides short-term borrowings of up to $50 million. The line of credit agreement extends through May 30, 1997. No borrowings were outstanding at June 29, 1996. The Company has a short-term borrowing agreement with a foreign bank as a hedge to cover certain foreign currency exposures. At June 29, 1996, maximum borrowings allowed under the agreement were approximately $54.9 million. Borrowings under the agreement are denominated in various foreign currencies. Proceeds from the borrowings are converted into U.S. dollars and placed in a term deposit account with the foreign bank. Amounts outstanding were $28.2 million at June 29, 1996. In addition to the above borrowing agreements, the Company maintains certain other miscellaneous borrowing arrangements with a foreign bank. No borrowings were outstanding at June 29, 1996. Income Taxes The Company accounts for income taxes in accordance with Statement of Financial Accounting Standards No. 109, "Accounting For Income Taxes" (FAS 109). The effective tax rate differs from the statutory tax rate principally due to tax benefits from the Company's foreign sales corporation and tax benefits related to the utilization of net operating loss carryforwards. Earnings Per Share See Exhibit 11 for the computation of average shares outstanding and earnings per share. Significant Customers The Company had no single customer that represented greater than 10% of total revenue for the quarters ending June 29, 1996 or July 1, 1995. Geographic Segment Information Export and foreign revenue was $66.4 million (46% of total revenue) for the three months ended June 29, 1996 and $130.4 million (49% of total revenue) for the first six months of 1996. Export and foreign revenue was $78.5 million and $136.5 million (56% and 53% of total revenue, respectively) for the corresponding periods in 1995. The Company's United States operations generated operating income of $4.5 million for the three months ended June 29, 1996 and $5.8 million for the first six months of 1996. Foreign operations generated "break-even" results for the quarter ended June 29, 1996, compared to net operating losses of $.3 million for the first six months of 1996. Comparable periods in 1995 included operating income of $3.1 million and $800,000 for the three months ended July 1, 1995 and first six months of 1995, respectively. Forward Looking Statements Information included in Management's Discussion and Analysis of Financial Conditions and Results of Operations regarding product development schedules and planned expenditure levels constitute forward-looking statements that involve a number of risks and uncertainties. In addition, from time to time the Company and its employees may issue other forward-looking statements. The following factors are among the factors that could cause actual results to differ materially from the forward-looking statements: business conditions and growth in the electronics industry and general economies, both domestic and international; lower than expected customer orders, delays in receipt of orders or cancellation of orders; the Company's ability to expand its sales force and achieve expected results from a larger sales force; the successful development of new technologies including NUMA-Q product technologies, the timely introduction of new products scheduled during the year and demand for and acceptance of new products by the Company's customers; competitive factors, including increased competition, new product offerings by competitors and price pressures; the availability of third party parts and supplies at reasonable prices; changes in product mix and the mix between product and service revenue; significant quarterly performance fluctuations due to the receipt of a significant portion of customer orders and product shipments in the last month of each quarter; and product shipment interruptions due to manufacturing problems. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS June 29, 1996 GENERAL Total revenue was $142.6 million in the second quarter of 1996 compared to $139.2 million in the second quarter of 1995. Total revenue was $263.3 million in the first six months of 1996 compared to $255.3 million in the first six months of 1995. Net income was $3.3 million in the second quarter of 1996 compared to $11.0 million in the first quarter of 1995. Net income was $3.9 million for the first six months of 1996 compared to $17.0 million in the first six months of 1995. Factors contributing to the decrease in net income for both periods in 1996 compared to 1995 include the substantial investments made by the Company to expand its sales channels and develop its NUMA-Q product technology. Service revenue, which increased as a percentage of total revenue, also contributed to the overall decline in net income. REVENUE (dollars in millions)
Three Months Ended Six Months Ended June 29, % July 1, June 29, % July 1, 1996 Chg 1995 1996 Chg 1995 End-user product revenue $ 98.2 (5)% $ 103.0 $ 174.3 (4)% $ 182.0 Service and other revenue 43.0 24% 34.7 82.8 20% 68.6 Total end-user revenue 141.2 3% 137.7 257.1 3% 250.8 OEM product revenue 1.4 (7)% 1.5 6.3 40% 4.5 Total revenue $ 142.6 2% $ 139.2 $ 263.4 3% $ 255.3 Export and Foreign Revenue $ 66.4 (15)% $ 78.5 $ 130.4 (4)% $ 136.5
During 1995 and 1996, the Company's service revenue continued to increase in dollar amount and as a percentage of total revenue primarily due to the growing customer base and associated customer service/maintenance contracts, as well as the Company's emphasis on professional services consulting. Total service revenue for the Company's European operations increased approximately 25% and 32% for the second quarter and first six months of 1996, respectively, over the corresponding periods of 1995. Total service revenue increases for the Company's United States operations for the same periods were approximately 25% and 32% for the second quarter and first six months of 1996, respectively. Export and foreign revenue was 46% of total revenue for the three months ended June 29, 1996 and 50% of total revenue for the first six months of 1996 compared to 56% and 53% for the corresponding periods in 1995. Factors contributing to the decrease in export and foreign revenue as a percentage of total revenue in 1996 included decreases in European revenue, specifically in the UK, resulting in part from a recent tightening in the European economy. These revenue decreases experienced in the UK contributed to the overall slight decrease in end-user product revenue for both the second quarter and the first six months of 1996 as compared to the corresponding periods of 1995. The decrease in European end-user product revenue was partially offset by significant increases in the Company's United States (North America) operations. COST OF SALES (dollars in millions) Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, 1996 1995 1996 1995 Cost of products sold $ 47.4 $ 48.5 $ 86.1 $ 87.4 As a percentage of product revenue 48% 46% 48% 47% Cost of service revenue $ 33.9 $ 25.6 $ 64.5 $ 50.1 As a percentage of service revenue 79% 74% 78% 73% The factors influencing gross margins in a given period include unit volumes (which affect economies of scale), product configuration mix, changes in component and manufacturing costs, product pricing and the mix between product and service revenue. Total cost of sales as a percentage of total revenue increased both in 1996 and 1995 primarily due to product mix with lower margin service increasing as a percentage of total revenue. Consistent with its 1996 plan, the Company has continued to invest in growing its professional services business which has contributed to the increase of cost of service as a percentage of service revenue. The Company increased its professional services headcount by approximately 31% since the beginning of the year. RESEARCH AND DEVELOPMENT (dollars in millions)
Three Months Ended Six Months Ended June 29, % July 1, June 29, % July 1, 1996 Chg 1995 1996 Chg 1995 Research and Development $ 12.3 19% $ 10.3 $ 24.5 24% $ 19.7 As a percentage of total revenue 9% 7% 9% 8% Software costs capitalized $ 8.5 57% $ 5.4 $ 16.2 47% $ 11.0
The Company has continued to invest significantly in new product development in addition to ongoing enhancements to existing products. Research and development costs as a percentage of total revenue were approximately 8% for 1995, 1994 and 1993, increasing to 9% in the second quarter and first six months of 1996. Consistent with its expectations and plans for 1996, management made significant investments during the first six months of 1996 in order to deliver its next-generation (NUMA-Q) products into the market by the end of 1996. Software costs capitalized continued to increase in the second quarter of 1996 primarily as a result of the Company's emphasis on software developments for its NUMA-Q product line. SELLING, GENERAL AND ADMINISTRATIVE (dollars in millions)
Three Months Ended Six Months Ended June 29, % July 1, June 29, % July 1, 1996 Chg 1995 1996 Chg 1995 Selling, general and admin. $ 44.4 13% $ 39.2 $ 82.6 13% $ 73.3 As a percentage of total revenue 31% 28% 31% 29%
Consistent with its plans for 1996, the Company's selling, general and administrative costs have continued to increase both in dollars and as a percentage of revenue in the second quarter and first six months of 1996 over the corresponding periods in 1995. The Company has made substantial investments to strengthen its worldwide sales force and to strategically position itself for the delivery of the NUMA-Q product line beginning in late 1996. Since the beginning of the year, the Company has increased its total headcount by 14%, including a 35% increase in major sales account executives worldwide. INTEREST AND OTHER, NET (dollars in millions) Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, 1996 1995 1996 1995 Interest, net $ 0.2 $ 0.3 $ 0.4 $ 0.3 Other, net (0.2) (0.2) (0.6) (0.9) Provisions for income taxes 1.2 4.7 1.4 7.2 Interest income in the second quarter and first six months of 1996 and 1995 was primarily generated from restricted deposits held at foreign and domestic banks, short-term investments and cash and cash equivalents. Interest expense for the same periods includes costs related to Convertible Debentures, foreign currency hedging loans and capital lease obligations. Other expense consists primarily of net gains and losses on sale of assets and discount on sale of receivables. The provision for income taxes includes benefits related to the Company's foreign sales corporation and the utilization of available domestic and foreign tax attributes carried forward from prior years. The effective tax rate for the second quarter and first six months of 1996 was 27%, compared to 30% for the corresponding periods in 1995 and the overall annual 1995 effective tax rate of 26%. LIQUIDITY AND CAPITAL RESOURCES Working capital was $183.7 million at June 29, 1996 compared to $214.7 million at December 30, 1995. The Company's current ratio at June 29, 1996 and December 30, 1995 was 2.3:1 and 2.5:1, respectively. For the first six months of 1996, cash and cash equivalents increased $.3 million. The Company continues to invest in property and equipment ($36.3 million, net), and capitalized software ($16.2 million). Other uses of funds were increases in intangibles and other assets ($13.5 million), increases in inventories ($13.8 million), net payments on notes payable ($12.9 million) and increases in prepaid expenses ($11.8 million). Primary sources of funds were decreases in net accounts receivables ($43.0 million), depreciation and amortization ($30.1 million), increases in unearned revenue ($5.2 million), increases in accrued payroll and other accrued liabilities ($9.2 million), and stock issuance proceeds from employee stock purchases and stock option plans ($3.1 million). The Company has a $20 million receivable sales facility with a group of banks. At June 29, 1996 accounts receivable in the accompanying consolidated balance sheet is net of $17 million received by the Company under this agreement to sell its domestic accounts receivable. The Company continues to maintain a $50 million revolving line of credit agreement. The line is unsecured and extends through May 31, 1997. The line contains certain financial covenants and prohibits the Company from paying dividends without the lenders' consent. No borrowings were outstanding under the line of credit as of June 29, 1996. The Company maintains a short-term borrowing agreement with a foreign bank to cover foreign currency exposures. Maximum borrowings allowed under the foreign bank agreement were $54.9 million, of which $28.2 million was outstanding at June 29, 1996 (based on currency exchange rates on such date). In addition to the above borrowing agreements, the Company maintains miscellaneous borrowing arrangements with a foreign bank. No borrowings were outstanding under the line of credit as of June 29, 1996. Management expects that current funds, funds from operations, and the bank lines of credit will provide adequate resources to meet the Company's anticipated cash requirements during 1996 resulting from its operations and planned investments in its sales force and NUMA-Q product technology. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SEQUENT COMPUTER SYSTEMS, INC. /s/ ROBERT S. GREGG Robert S. Gregg Sr. Vice President of Finance and Chief Financial Officer Date: August 13, 1996 EXHIBIT INDEX Sequential Exhibit No. Description Page No. 11 Statement regarding computation of earnings per share 15 SEQUENT COMPUTER SYSTEMS, INC. AND SUBSIDIARIES STATEMENT SHOWING CALCULATION OF AVERAGE COMMON SHARES OUTSTANDING AND EARNINGS PER AVERAGE COMMON SHARE (in thousands, except per share amounts) Three Months Ended Six Months Ended June 29, 1996 June 29, 1996 Weighted average number of common shares outstanding 33,511 33,404 Application of the "treasury stock" method to the stock option and employee stock purchase plans 655 486 Weighted average of common stock equivalent shares attributable to convertible debentures 575 575 Total common and common equivalent shares, assuming full dilution 34,741 34,465 Net income $ 3,306 $ 3,904 Add: Interest on convertible debentures, net of applicable income taxes 119 238 Net income, assuming full dilution $ 3,425 $ 4,142 Net income per common share, assuming full dilution (A) $ 0.10 $ 0.12 (A) In accordance with generally accepted accounting principles, fully-diluted earnings per share may not exceed primary earnings per share. The computation of primary net income per common share is not included as the computation can be clearly determined from the material contained in this report. EX-27 2
5 6-MOS JAN-04-1997 JUN-29-1996 90,523,000 0 138,081,000 2,806,000 74,615,000 325,718,000 253,489,000 139,202,000 511,280,000 142,012,000 7,668,000 336,000 0 0 358,626,000 511,280,000 180,658,000 263,332,000 86,147,000 150,648,000 107,194,000 0 1,204,000 0 1,449,000 0 0 0 0 3,904,000 0.12 0.12
-----END PRIVACY-ENHANCED MESSAGE-----