-----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, F2c6vJ7sDGEO4N1LRHvA/uHM9Fkav/76otXEFEtS+3CinoAZQt6vpo5hOrLSVi8K PhzHcp+1qe90EAgcMOqnkQ== 0000950135-99-002703.txt : 19990624 0000950135-99-002703.hdr.sgml : 19990624 ACCESSION NUMBER: 0000950135-99-002703 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990404 FILED AS OF DATE: 19990514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COGNEX CORP CENTRAL INDEX KEY: 0000851205 STANDARD INDUSTRIAL CLASSIFICATION: 3823 IRS NUMBER: 042713778 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-17869 FILM NUMBER: 99622709 BUSINESS ADDRESS: STREET 1: ONE VISION DR CITY: NATICK STATE: MA ZIP: 01760 BUSINESS PHONE: 5086503000 MAIL ADDRESS: STREET 1: ONE VISION DRIVE CITY: NATICK STATE: MA ZIP: 01760 10-Q 1 COGNEX CORPORATION 1 UNITED STATES 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 APRIL 4, 1999 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 0-17869 COGNEX CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) MASSACHUSETTS 04-2713778 ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) ONE VISION DRIVE NATICK, MASSACHUSETTS 01760-2059 (508) 650-3000 ------------------------------------------- (Address, including zip code, and telephone number, including area code, of principal executive offices) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [ X ] No [ ] As of May 2, 1999, there were 40,723,415 shares of Common Stock, $.002 par value, of the registrant outstanding. Total number of pages: 13 Exhibit index is located on page 12 ================================================================================ 2 INDEX PART I FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Statements of Income for the three months ended April 4, 1999 and April 5, 1998 Consolidated Balance Sheets at April 4, 1999 and December 31, 1998 Consolidated Statement of Stockholders' Equity for the three months ended April 4, 1999 Consolidated Statements of Cash Flows for the three months ended April 4, 1999 and April 5, 1998 Notes to Consolidated Financial Statements Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations PART II OTHER INFORMATION Item 1. Legal Proceedings Item 2. Changes in Securities Item 3. Defaults Upon Senior Securities Item 4. Submission of Matters to a Vote of Security Holders Item 5. Other Information Item 6. Exhibits and Reports on Form 8-K Signatures 3 PART I: FINANCIAL INFORMATION ITEM 1: FINANCIAL STATEMENTS COGNEX CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts)
THREE MONTHS ENDED APRIL 4, APRIL 5, 1999 1998 ---------- ---------- (UNAUDITED) Revenue...................................................................... $ 27,485 $ 40,056 Cost of revenue.............................................................. 8,728 10,927 ---------- ---------- Gross margin................................................................. 18,757 29,129 Research, development, and engineering expenses.............................. 6,534 6,305 Selling, general, and administrative expenses................................ 9,768 9,869 ---------- ---------- Income from operations....................................................... 2,455 12,955 Investment income............................................................ 1,578 1,728 Other income................................................................. 161 165 ---------- ---------- Income before income taxes................................................... 4,194 14,848 Income tax provision......................................................... 1,090 4,306 ---------- ---------- Net income................................................................... 3,104 10,542 ========== ========== Net income per share: Basic.................................................................... $ .08 $ .25 ========== ========== Diluted.................................................................. $ .07 $ .24 ========== ========== Weighted-average common and common equivalent shares outstanding: Basic.................................................................... 40,307 41,800 ========== ========== Diluted.................................................................. 43,371 44,435 ========== ==========
The accompanying notes are an integral part of these consolidated financial statements. 1 4 COGNEX CORPORATION CONSOLIDATED BALANCE SHEETS (Dollars in thousands)
APRIL 4, DECEMBER 31, 1999 1998 --------- ------------ ASSETS (UNAUDITED) Current assets: Cash and investments.................................................... $172,531 $158,458 Accounts receivable, less reserves of $2,495 and $2,583 in 1999 and 1998, respectively................................................... 14,553 20,987 Revenue in excess of billings........................................... 3,168 4,945 Inventories............................................................. 12,189 10,812 Deferred income taxes................................................... 3,936 3,936 Prepaid expenses and other.............................................. 8,529 8,141 -------- -------- Total current assets................................................ 214,906 207,279 Property, plant, and equipment, net........................................ 33,313 34,255 Deferred income taxes...................................................... 2,282 2,237 Other assets............................................................... 4,420 4,157 -------- -------- $254,921 $247,928 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable........................................................ $ 3,516 $ 2,488 Accrued expenses........................................................ 12,260 11,653 Accrued income taxes.................................................... 675 916 Customer deposits....................................................... 4,786 4,894 Deferred revenue........................................................ 3,294 2,965 -------- -------- Total current liabilities........................................... 24,531 22,916 -------- -------- Other liabilities.......................................................... 2,123 2,137 Stockholders' equity: Common stock, $.002 par value - Authorized: 120,000,000 shares, issued: 42,755,178 and 42,453,980 shares in 1999 and 1998, respectively................................ 85 85 Additional paid-in capital............................................. 99,952 97,531 Treasury stock, at cost, 2,310,894 and 2,307,140 shares in 1999 and 1998, respectively................................................... (41,427) (41,353) Retained earnings...................................................... 169,675 166,571 Accumulated other comprehensive income (loss).......................... (18) 41 -------- -------- Total stockholders' equity......................................... 228,267 222,875 -------- -------- $254,921 $247,928 ======== ========
The accompanying notes are an integral part of these consolidated financial statements. 2 5 COGNEX CORPORATION CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DOLLARS IN THOUSANDS)
COMMON STOCK ADDITIONAL TREASURY STOCK --------------------- PAID-IN ------------------- RETAINED SHARES PAR VALUE CAPITAL SHARES COST EARNINGS ------ --------- ---------- ------ ---- -------- Balance at December 31, 1998............. 42,453,980 $ 85 $ 97,531 2,307,140 $(41,353) $166,571 Issuance of common stock under stock option plans...................... 301,198 2,121 Tax benefit from exercise of stock options..................... 300 Common stock received for payment of stock option exercises......... 3,754 (74) Comprehensive income: Net income.................... 3,104 Translation adjustment........ Comprehensive income.......... --------- --------- ---------- --------- -------- -------- Balance at April 4, 1999 (unaudited)..... 42,755,178 $ 85 $ 99,952 2,310,894 $(41,427) $169,675 ========== ========= ========== ========= ======== ======== ACCUMULATED OTHER TOTAL COMPREHENSIVE COMPREHENSIVE STOCKHOLDERS' INCOME INCOME EQUITY ------------- ------------- ------------- Balance at December 31, 1998............. $ 41 $ 222,875 Issuance of common stock under stock option plans...................... 2,121 Tax benefit from exercise of stock options..................... 300 Common stock received for payment of stock option exercises......... (74) Comprehensive income: Net income.................... $ 3,104 3,104 Translation adjustment........ (59) (59) (59) ------------- Comprehensive income.......... $ 3,045 ------------- ============= ------------- Balance at April 4, 1999 (unaudited)..... $ (18) $ 228,267 ============= =============
The accompanying notes are an integral part of these consolidated financial statements. 3 6 COGNEX CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands)
THREE MONTHS ENDED APRIL 4, APRIL 5, 1999 1998 -------- -------- (UNAUDITED) Cash flows from operating activities: Net income.............................................................. $ 3,104 $ 10,542 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization......................................... 2,256 2,196 Tax benefit from exercise of stock options............................ 300 338 Deferred income tax provision (benefit)............................... (45) (202) Change in other current assets and current liabilities................ 8,115 (6,637) Other................................................................. (146) (842) -------- -------- Net cash provided by operating activities............................... 13,584 5,395 -------- -------- Cash flows from investing activities: Purchase of investments................................................. (28,412) (19,394) Maturity of investments................................................. 19,409 14,307 Purchase of property, plant, and equipment.............................. (717) (2,006) Cash paid for technology acquisitions and equity investments............ (789) (432) -------- -------- Net cash used in investing activities................................... (10,509) (7,525) -------- -------- Cash flows from financing activities: Issuance of common stock under stock option plans....................... 2,047 505 -------- -------- Net cash provided by financing activities............................... 2,047 505 -------- -------- Effect of exchange rate changes on cash...................................... 351 177 -------- -------- Net increase (decrease) in cash and cash equivalents......................... 5,473 (1,448) Cash and cash equivalents at beginning of period............................. 27,807 38,198 -------- -------- Cash and cash equivalents at end of period................................... 33,280 36,750 Investments.................................................................. 139,251 144,464 -------- -------- Cash and investments......................................................... $172,531 $181,214 ======== ========
The accompanying notes are an integral part of these consolidated financial statements. 4 7 COGNEX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION As permitted by the rules of the Securities and Exchange Commission applicable to Quarterly Reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by generally accepted accounting principles. Reference should be made to the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 1998. In the opinion of the management of Cognex Corporation, the accompanying consolidated unaudited financial statements contain all adjustments (consisting of only normal, recurring adjustments) necessary to present fairly the Company's financial position at April 4, 1999, and the results of operations and changes in stockholders' equity and cash flows for the three months then ended. The results disclosed in the Consolidated Statements of Income for the three months ended April 4, 1999 are not necessarily indicative of the results to be expected for the full year. Certain amounts reported in prior periods have been reclassified to be consistent with the current period's presentation.
INVENTORIES Inventories consist of the following: (In thousands) APRIL 4, DECEMBER 31, 1999 1998 -------- ------------ Raw materials............................................................. $ 5,432 $ 6,195 Work-in-process........................................................... 1,157 1,262 Finished goods............................................................ 5,600 3,355 -------- ------------ $ 12,189 $ 10,812 ======== ============
5 8 COGNEX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NET INCOME PER SHARE - - - - - - - - - - - - - -------------------- Net income per share is calculated as follows: (In thousands) THREE MONTHS ENDED APRIL 4, APRIL 5, 1999 1998 -------- -------- Net income............................................................... $ 3,104 $ 10,542 ======== ======== BASIC: Weighted-average common shares outstanding............................. 40,307 41,800 ======== ======== Net income per common share............................................ $ .08 $ .25 ======== ======== DILUTED: Weighted-average common shares outstanding............................. 40,307 41,800 Effect of dilutive securities: Stock options....................................................... 3,064 2,635 -------- -------- Weighted-average common and common equivalent shares outstanding....... 43,371 44,435 ======== ======== Net income per common and common equivalent share...................... $ .07 $ .24 ======== ========
6 9 ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Revenue for the first quarter of 1999 decreased 31% to $27,485,000 from $40,056,000 for the first quarter of 1998. As compared to the first quarter of 1998, the Company's results were negatively impacted by the worldwide slowdown in capital spending by manufacturers in the semiconductor and electronics industries that has affected the Company's business over the past year. The decrease in revenue of $12,571,000 from the first quarter in 1998 is due primarily to decreased volume from the Company's OEM customers, most of whom make capital equipment used by manufacturers in the semiconductor and electronics industries. Sales to OEM customers decreased $11,641,000, or 45%, from the first quarter of 1998. Revenue for the first quarter of 1999 increased, however, 10% from the fourth quarter of 1998. The increase in revenue of $2,392,000 from the prior quarter is primarily due to increased volume from the Company's OEM customers, which increased $1,780,000, or 15%. Sales to end-user customers increased by $612,000, or 5%, from the fourth quarter of 1998 and represented 49% of total revenue. Due to the sequential improvement in revenue from the fourth quarter of 1998, as well as an increase in demand from both OEM and end-user customers, the Company believes that it has reached the bottom of the recent semiconductor and electronics industry cycle. The Company now expects growing revenue by more than 15% for 1999 over 1998. Gross margin as a percentage of revenue for the first quarter of 1999 was 68% compared to 73% for the first quarter in 1998. The decrease in gross margin as a percentage of revenue is due primarily to the lower product revenue in 1999. As a result, service revenue, which has a lower gross margin than product revenue, increased as a percentage of total revenue in 1999 and lowered the overall gross margin. Gross margin as a percentage of revenue is expected to increase slightly for the remainder of 1999 due to the anticipated revenue growth. Research, development, and engineering expenses for the first quarter of 1999 increased 4% to $6,534,000 from $6,305,000 for the first quarter of 1998. The increase in aggregate expenses is due primarily to higher personnel-related costs to support the Company's continued investment in the development of new and existing products. Expenses as a percentage of revenue were 24% for the first quarter of 1999 compared to 16% for the first quarter of 1998. The increase in expenses as a percentage of revenue is due primarily to the lower revenue base in 1999. The Company anticipates that aggregate expenses will increase moderately for the remainder of 1999 due to planned investment in product development. However, the level of expenses as a percentage of revenue over the next few quarters is anticipated to decline, as revenue is expected to increase at a greater rate than aggregate expenses. Selling, general, and administrative expenses for the first quarter of 1999 decreased 1% to $9,768,000 from $9,869,000 for the first quarter in 1998. The decrease in aggregate expenses is due primarily to costs associated with the implementation of new computer information systems in the first quarter of 1998, partially offset in 1999 by higher personnel-related costs to support the Company's expanding worldwide operations. Expenses as a percentage of revenue were 36% for the first quarter of 1999 compared to 25% for the first quarter in 1998. The increase in expenses as a percentage of revenue is due primarily to the lower revenue base in 1999. The Company anticipates that aggregate expenses will increase moderately for the remainder of 1999 due to additional resources required to support the higher level of demand. However, the level of expenses as a percentage of revenue over the next few quarters is anticipated to decline, as revenue is expected to increase at a greater rate than aggregate expenses. 7 10 RESULTS OF OPERATIONS, CONTINUED Investment income for the first quarter of 1999 decreased 9% to $1,578,000 from $1,728,000 for the first quarter in 1998. The decrease in investment income is due primarily to a lower average invested cash balance in 1999. The Company's effective tax rate was 26% for the first quarter of 1999 compared to 29% for the first quarter of 1998. The decrease in the effective tax rate is primarily attributable to the impact of the Company's use of tax-free investments. LIQUIDITY AND CAPITAL RESOURCES The Company's cash requirements during the first quarter of 1999 were met through cash generated from operations. Cash and investments increased $14,073,000 from December 31, 1998 primarily as a result of $13,584,000 of cash generated from operations and $2,047,000 of proceeds from the issuance of common stock under stock option plans. Cash generated from operations consists of net income, adjusted primarily for non-cash charges and changes in current assets and current liabilities, most notably a decrease in accounts receivable resulting from the timing of cash receipts at the end of the first quarter of 1999. Capital expenditures for the first quarter of 1999 totaled $717,000 and consisted primarily of expenditures for computer hardware and software. The Company believes that its existing cash and investments balance, together with cash generated from operations, will be sufficient to meet the Company's planned working capital and capital expenditure requirements through 1999. YEAR 2000 UPDATE The Company is aware of the potential for industry-wide business disruption which could occur due to problems related to the "Year 2000" issue. Management believes that it has a prudent plan in place to address this issue within the Company and its supply chain. The components of this plan include: an assessment of internal systems for modification and/or replacement; communication with external vendors to determine their state of readiness to maintain an uninterrupted supply of goods and services to the Company; and an evaluation of products sold by the Company to customers as to the ability of the products to work properly after the turn of the century. INTERNAL SYSTEMS The Company's process for achieving Year 2000 compliance for internal systems is as follows: 1. Develop an inventory of all internal systems 2. Determine the Year 2000 compliance status of each internal system 3. Prioritize the importance of Year 2000 compliance for each internal system 4. Determine the method to be used to achieve compliance (modify, replace, cease use) 5. Complete the planned action 6. Test the system 8 11 YEAR 2000 UPDATE, CONTINUED The initial inventory, compliance status, prioritization, and determination of the method to achieve compliance has been completed for all internal systems in use throughout the Company. The Company has identified five internal systems that are used for business transaction processing as being critical to the uninterrupted operation of the business. Of these five systems, the Company's initial assessment indicated that three were Year 2000 compliant. Since the initial assessment, the Company discovered that one of the internal systems it believed to be compliant may in fact be non-compliant. The Company plans to have this system compliant by September 30, 1999 through either a vendor-provided upgrade or replacement. The Company is on schedule to have the remaining two systems Year 2000 compliant by June 30, 1999 through vendor-provided upgrades. In addition, the Company has completed an initial assessment of its technology infrastructure (servers, networks, phone systems) and expects to have all non-compliant items remediated, replaced, or decommissioned by June 30, 1999. VENDORS The Company has initiated a program to survey the Year 2000 readiness of its major vendors. The Company has sent letters to over 250 vendors outlining its approach towards the Year 2000 issue and asking for either their certification that their product is Year 2000 compliant or their commitment to resolve any issues they may have. The Company has identified vendors it views as critical to its business. Management has defined a critical vendor as one whose inability to continue to provide goods and services would have a serious adverse impact on the Company's ability to produce, deliver, and collect payment for its product. The Company has received responses from all critical vendors outlining their plans for Year 2000 compliance. PRODUCTS Product testing is now complete and has confirmed that Cognex's core vision functionality is not date sensitive or dependent on dates in any way, and is therefore Year 2000 compliant. The Company's Year 2000 product compliance verification methodology consisted of a review of the source code and functional testing of the recent releases of Cognex products, which are believed to be representative of earlier releases as well. Year 2000 compliance verification included examination of the 1999/2000 date rollover, date sensitive functionality with the year 2000, and leap year compliance. COSTS Costs incurred in the Company's Year 2000 compliance effort are expensed as incurred and funded with cash generated from operations. These costs are included in the normal, recurring costs incurred for product development and systems maintenance and are not material to the Company's results of operations, nor are they expected to be in the future. RISKS AND CONTINGENCY PLAN Although the Company believes it is taking prudent action related to the identification and resolution of issues related to the Year 2000, its assessment is still in progress. It may never be able to know with certainty whether certain critical vendors are compliant. Failure of critical vendors to make their computer systems Year 2000 compliant could result in delaying deliveries of products and services to the Company. If such delays are extensive, they could have a material adverse effect on the Company's business. 9 12 YEAR 2000 UPDATE, CONTINUED The failure to correct a material Year 2000 problem could result in an interruption in, or a failure of, certain normal business activities. Such failures could materially and adversely affect the Company's results of operations, liquidity, and financial condition. Due to the general uncertainty inherent in the Year 2000 issue, resulting in part from the uncertainty of the Year 2000 readiness of third-party vendors, the Company is unable to determine at this time whether the consequences of Year 2000 failures will have a material impact on the Company's results of operations, liquidity, or financial position. The Year 2000 compliance project is expected to reduce, but not eliminate, the Company's level of uncertainty about the Year 2000 issue and, in particular, about the Year 2000 compliance and readiness of its critical vendors. The Company believes that, with the completion of the Year 2000 compliance project as scheduled, the possibility of significant interruptions to normal operations should be reduced. The Company continues to evaluate the risks associated with potential Year 2000 related failures. As management better understands the risks within the Company's unique set of internal systems, business partners, and products, a formal contingency plan to alleviate the impact of high potential or serious failures will be developed. The Company is in the early stages of developing a contingency plan and anticipates having this plan fully outlined by June 30, 1999. The components of this plan will likely include raw material and finished goods inventory levels, alternative vendors, and backup systems. Until the contingency plan is completed, the Company does not possess the information necessary to estimate the potential negative impact of Year 2000 compliance issues related to internal systems, its vendors, its customers, or other parties. 10 13 FORWARD-LOOKING STATEMENTS Certain statements made in this report (including statements regarding the Year 2000 issue), as well as oral statements made by the Company from time to time, which are prefaced with words such as "expects," "anticipates," "believes," "projects," "intends," "plans," and similar words and other statements of similar sense, are forward-looking statements. These statements are based on the Company's current expectations and estimates as to prospective events and circumstances, which may or may not be in the Company's control and as to which there can be no firm assurances given. These forward-looking statements, like any other forward-looking statements, involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include (1) the loss of, or a significant curtailment of purchases by, any one or more principal customers; (2) the cyclicality of the semiconductor and electronics industries; (3) the Company's continued ability to achieve significant international revenue; (4) capital spending trends by manufacturing companies; (5) inability to protect the Company's proprietary technology and intellectual property; (6) inability to attract or retain skilled employees; (7) technological obsolescence of current products and the inability to develop new products; (8) inability to respond to competitive technology and pricing pressures; and (9) reliance upon certain sole source suppliers to manufacture or deliver critical components of the Company's products. The foregoing list should not be construed as exhaustive and the Company disclaims any obligation to subsequently revise forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. Further discussions of risk factors are also available in the Company's registration statements filed with the Securities and Exchange Commission. The Company wishes to caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. 11 14 PART II: OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS None ITEM 2. CHANGES IN SECURITIES None ITEM 3. DEFAULTS UPON SENIOR SECURITIES None ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None ITEM 5. OTHER INFORMATION None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits Exhibit 27 - Financial Data Schedule (electronic filing only) (b) Reports on Form 8-K None 12 15 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. DATE: May 14, 1999 COGNEX CORPORATION /s/ Robert J. Shillman ---------------------- Robert J. Shillman President, Chief Executive Officer, and Chairman of the Board of Directors (principal executive and financial and accounting officer) 13 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF COGNEX CORPORATION FOR THE QUARTER ENDED APRIL 4, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH CONSOLIDATED FINANCIAL STATEMENTS. 3-MOS DEC-31-1999 JAN-01-1999 APR-04-1999 33,280,000 139,251,000 17,048,000 2,495,000 12,189,000 214,906,000 53,933,000 20,620,000 254,921,000 24,531,000 0 0 0 85,000 228,102,000 254,921,000 27,485,000 27,485,000 8,728,000 8,728,000 0 0 0 4,194,000 1,090,000 3,104,000 0 0 0 3,104,000 $0.08 $0.07
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