-----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, UZEdfiz7odehzdFo8/r9jHDY3e5WQSx8TlbEWyi7uQUjF6stMnOZiqX2yX4bVAmU 83m+AqlCDCuVs2ebs7XPNQ== 0001047469-98-034079.txt : 19980910 0001047469-98-034079.hdr.sgml : 19980910 ACCESSION NUMBER: 0001047469-98-034079 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980731 FILED AS OF DATE: 19980909 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNIFY CORP CENTRAL INDEX KEY: 0000880562 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 770427069 STATE OF INCORPORATION: DE FISCAL YEAR END: 0430 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-11807 FILM NUMBER: 98705908 BUSINESS ADDRESS: STREET 1: 181 METRO DR STREET 2: 3RD FL CITY: SAN JOSE STATE: CA ZIP: 95110 BUSINESS PHONE: 4084674500 MAIL ADDRESS: STREET 1: 181 METRO DRIVE CITY: SAN JOSE STATE: CA ZIP: 95110 10-Q 1 10-Q - ------------------------------------------------------------------------------- UNITED STATES 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 JULY 31, 1998 OR [ ] Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 COMMISSION FILE NUMBER: 001-11807 --------------------------- UNIFY CORPORATION (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Delaware 94-2710559 - ------------------------------ ------------------------------- (STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER IDENTIFICATION INCORPORATION OR ORGANIZATION) NUMBER) 181 METRO DRIVE, THIRD FLOOR SAN JOSE, CALIFORNIA 95110 (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) TELEPHONE: (408) 346-1100 (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 each of the issuer's classes of common stock, as of the latest practicable date. 8,437,296 shares of Common Stock, $0.001 par value, as of August 31, 1998 - ------------------------------------------------------------------------------- UNIFY CORPORATION FORM 10-Q INDEX
PAGE NUMBER ------ PART I. FINANCIAL INFORMATION Item 1. Financial Statements Condensed Consolidated Balance Sheets as of July 31, 1998 and April 30, 1998................................ 3 Condensed Consolidated Statements of Operations for the three months ended July 31, 1998 and 1997.................. 4 Condensed Consolidated Statements of Cash Flows for the three months ended July 31, 1998 and 1997.............. 5 Notes to Condensed Consolidated Financial Statements............... 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.................. 8 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K.................................... 13 SIGNATURE ............................................................................... 14
2 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS UNIFY CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
July 31, April 30, 1998 1998 --------- --------- (unaudited) (audited) ASSETS Current assets: Cash and cash equivalents $ 5,297 $ 5,279 Short-term investments 5,149 5,460 Accounts receivable, net 4,884 5,568 Prepaid expenses and other current assets 824 779 -------- -------- Total current assets 16,154 17,086 Property and equipment, net 1,858 1,925 Other assets 68 88 -------- -------- Total assets $ 18,080 $ 19,099 -------- -------- -------- -------- LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ -- $ 18 Accounts payable 1,099 1,041 Amounts due to minority interest stockholders 527 756 Accrued compensation and related expenses 1,469 1,889 Other accrued liabilities 2,888 3,076 Deferred revenue 3,114 3,745 -------- -------- Total current liabilities 9,097 10,525 Long-term debt, net of current portion 3 4 Minority interest 239 275 Stockholders' equity: Common stock 8 8 Additional paid-in capital 53,631 53,474 Notes receivable from stockholders (219) (216) Cumulative translation adjustments (487) (521) Accumulated deficit (44,192) (44,450) -------- -------- Total stockholders' equity 8,741 8,295 -------- -------- Total liabilities and stockholders' equity $ 18,080 $ 19,099 -------- -------- -------- --------
See accompanying notes to condensed consolidated financial statements. 3 UNIFY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
Three Months Ended July 31, --------------------------- 1998 1997 -------- -------- Revenues: Software licenses $ 4,242 $ 2,869 Services 2,418 2,265 -------- -------- Total revenues 6,660 5,134 -------- -------- Cost of revenues: Software licenses 226 233 Services 1,053 1,081 -------- -------- Total cost of revenues 1,279 1,314 -------- -------- Gross margin 5,381 3,820 -------- -------- Operating expenses: Product development 1,449 1,448 Selling, general and administrative 3,653 4,560 -------- -------- Total operating expenses 5,102 6,008 -------- -------- Income (loss) from operations 279 (2,188) Other income, net 23 60 -------- -------- Income (loss) before income taxes 302 (2,128) Provision for income taxes (44) (47) -------- -------- Net income (loss) $ 258 $(2,175) -------- -------- -------- -------- Net income (loss) per share, basic and diluted $ 0.03 $ (0.27) -------- -------- -------- -------- Shares used in computing net income (loss) per share: Basic 8,388 8,180 -------- -------- -------- -------- Diluted 8,524 8,180 -------- -------- -------- --------
See accompanying notes to condensed consolidated financial statements. 4 UNIFY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) (UNAUDITED)
Three Months Ended July 31, ---------------------------- 1998 1997 ------- ------- Cash flows from operating activities: Net income (loss) $ 258 $(2,175) Reconciliation of net income (loss) to net cash used in operating activities: Depreciation 276 264 Provision for losses on accounts receivable 113 42 Minority interest (36) (63) Liquidation of Benelux subsidiary -- 136 Changes in operating assets and liabilities: Accounts receivable 510 447 Prepaid expenses and other current assets (60) 77 Accounts payable 69 275 Amounts due to minority interest stockholders (182) (29) Accrued compensation and related expenses (411) (371) Other accrued liabilities (180) (675) Deferred revenue (594) (502) ------- ------- Net cash used in operating activities (237) (2,574) ------- ------- Cash flows from investing activities: Purchases of available-for-sale securities (1,250) (3,543) Sales of available-for-sale securities 1,561 3,998 Purchases of property and equipment (212) (218) Other assets 20 166 ------- ------- Net cash provided by investing activities 119 403 ------- ------- Cash flows from financing activities: Principal payments under debt obligations (19) (2,260) Proceeds from issuance of common stock, net 157 327 Accrual of interest on notes receivable from stockholders (3) (2) ------- ------- Net cash provided by (used in) financing activities 135 (1,935) ------- ------- Effect of exchange rate changes on cash 1 (64) ------- ------- Net increase (decrease) in cash and cash equivalents 18 (4,170) Cash and cash equivalents, beginning of period 5,279 9,513 ------- ------- Cash and cash equivalents, end of period $ 5,297 $ 5,343 ------- ------- ------- ------- Supplemental schedule of noncash investing and financing activities: Cash paid during the period for: Interest $ 26 $ 250 ------- ------- ------- ------- Income taxes $ 32 $ 31 ------- ------- ------- -------
See accompanying notes to condensed consolidated financial statements. 5 UNIFY CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION The condensed consolidated financial statements have been prepared by Unify Corporation (the "Company") pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). While the interim financial information contained in this filing is unaudited, the financial statements presented reflect all adjustments (consisting only of normal recurring adjustments) which the Company considers necessary for a fair presentation of the financial position as of July 31, 1998 and April 30, 1998, the results of operations for the three months ended July 31, 1998 and 1997, and the cash flows for the three months ended July 31, 1998 and 1997. The results for interim periods are not necessarily indicative of the results to be expected for the entire fiscal year. These financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto, together with Management's Discussion and Analysis of Financial Condition and Results of Operations, which are included in the Company's Annual Report on Form 10-K for the year ended April 30, 1998 as filed with the SEC. 2. EARNINGS PER SHARE The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the periods indicated:
Three Months Ended July 31, ---------------------------- 1998 1997 ------- ------- NET INCOME (LOSS) (NUMERATOR): Net income (loss), basic and diluted $ 258 $(2,175) ------- ------- ------- ------- SHARES (DENOMINATOR): Weighted average shares of common stock outstanding, basic 8,388 8,180 Weighted average common equivalent shares outstanding 136 -- ------- ------- Weighted average shares of common stock outstanding, diluted 8,524 8,180 ------- ------- ------- ------- PER SHARE AMOUNT: Net income (loss) per share, basic and diluted $ 0.03 $ (0.27) ------- ------- ------- ------- ANTIDILUTIVE SHARES: 433 706 ------- ------- ------- -------
6 UNIFY CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 3. COMPREHENSIVE INCOME Effective May 1, 1998, the Company adopted Statement of Financial Accounting Standards ("SFAS") No. 130, "Reporting Comprehensive Income." This statement requires that all items recognized under accounting standards as components of comprehensive income be reported in an annual financial statement that is displayed with the same prominence as other annual financial statements. This statement also requires that an entity classify items of other comprehensive income by their nature in an annual financial statement. For example, other comprehensive income includes foreign currency translation adjustments. Annual financial statements for prior periods will be reclassified, as required. The Company's total comprehensive income (loss) was as follows:
Three Months Ended July 31, ----------------------------- 1998 1997 ------- ------- Net income (loss) $ 258 $(2,175) Other comprehensive loss, net of tax (34) (71) ------- ------- Total comprehensive income (loss) $ 224 $(2,246) ------- ------- ------- -------
NEW ACCOUNTING PRONOUNCEMENT In June 1998, the Financial Accounting Standards Board issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities." This statement establishes accounting and reporting standards for derivative instruments and hedging activities. This statement is effective for all fiscal quarters of fiscal years beginning after June 15, 1999. The Company has not yet determined the impact of SFAS No. 133 on the Company's financial statements. 7 UNIFY CORPORATION ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS THE DISCUSSION IN THIS QUARTERLY REPORT ON FORM 10-Q CONTAINS FORWARD-LOOKING STATEMENTS THAT HAVE BEEN MADE PURSUANT TO THE PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON CURRENT EXPECTATIONS, ESTIMATES AND PROJECTIONS ABOUT THE SOFTWARE INDUSTRY AND CERTAIN ASSUMPTIONS MADE BY THE COMPANY'S MANAGEMENT. WORDS SUCH AS "ANTICIPATES", "EXPECTS", "INTENDS", "PLANS", "BELIEVES", "SEEKS", "ESTIMATES", VARIATIONS OF SUCH WORDS AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY SUCH FORWARD-LOOKING STATEMENTS. THESE STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE SUBJECT TO CERTAIN RISKS, UNCERTAINTIES AND ASSUMPTIONS THAT ARE DIFFICULT TO PREDICT; THEREFORE, ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE EXPRESSED OR FORECASTED IN ANY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND UNCERTAINTIES INCLUDE, BUT ARE NOT LIMITED TO, THOSE SET FORTH HEREIN UNDER "VOLATILITY OF STOCK PRICE AND GENERAL RISK FACTORS AFFECTING QUARTERLY RESULTS" AND IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K UNDER "BUSINESS - RISK FACTORS." UNLESS REQUIRED BY LAW, THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE PUBLICLY ANY FORWARD- LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. HOWEVER, READERS SHOULD CAREFULLY REVIEW THE RISK FACTORS SET FORTH IN OTHER REPORTS OR DOCUMENTS THE COMPANY FILES FROM TIME TO TIME WITH THE SEC, PARTICULARLY THE COMPANY'S ANNUAL REPORTS ON FORM 10-K, QUARTERLY REPORTS ON FORM 10-Q AND ANY CURRENT REPORTS ON FORM 8-K. The following discussion should be read in conjunction with the unaudited Condensed Consolidated Financial Statements and Notes thereto in Part I, Item 1 of this Quarterly Report on Form 10-Q and with the audited Consolidated Financial Statements and Notes thereto, together with Management's Discussion and Analysis of Financial Condition and Results of Operations, which are included in the Company's Annual Report on Form 10-K for the year ended April 30, 1998 as filed with the SEC. RESULTS OF OPERATIONS REVENUES The Company's strategy is to aggressively market and enhance its graphical product, Unify VISION. The Company continues to support its extensive installed base of Unify DataServer and Unify ACCELL character products, which the Company believes represents a significant source of potential customers for Unify VISION. The Company also generates significant revenues from services, including customer maintenance, consulting and training. The following table sets forth revenues from licenses of its graphical and character products and from services for the periods indicated: 8 UNIFY CORPORATION
Three Months Ended July 31, --------------------------- 1998 1997 ------ ------ License revenues: Graphical $2,150 $1,257 Character 2,092 1,612 ------ ------ Total license revenues 4,242 2,869 Services revenues 2,418 2,265 ------ ------ Total revenues $6,660 $5,134 ------ ------ ------ ------
Total revenues for the quarter ended July 31, 1998 increased 30% over the same quarter of the prior year to $6.7 million. Graphical license revenues of $2.2 million in the first quarter of fiscal 1999 were 71% higher than the same quarter of the prior year. The growth in graphical license revenues was primarily attributable to several sales in the $250,000 to $500,000 range; fewer similar sales occurred in the same quarter of fiscal 1998. Because of factors such as those described in "Volatility of Stock Price and General Risk Factors Affecting Quarterly Results," especially continuing longer sales cycles associated with enterprise-level sales transactions, there can be no assurance that the Company will be able to maintain the same level of graphical license revenues as recorded for the quarter ended July 31, 1998. Character license revenues increased 30% over the same quarter of the prior year to $2.1 million, reflecting normal fluctuation in the level of character license revenues. Service revenues remained relatively constant in the first quarter of fiscal 1999 as compared to the same quarter of the previous year. International revenues were comparable at 52% and 50% of total revenues in the quarters ended July 31, 1998 and 1997, respectively. COST OF REVENUES Cost of software licenses were stable in absolute dollars and represented 5% and 8% of license revenues for the quarters ended July 31, 1998 and 1997, respectively. The decrease in cost of software licenses as a percentage of license revenues in the fiscal 1999 quarter was due to economies of scale associated with the growth in license revenues. Cost of services were comparable at $1.1 million, or 44% and 48% of service revenues in the first quarters of fiscal 1999 and 1998, respectively. Within total services, the levels of customer maintenance and consulting and training revenues and expenses were also stable in the first quarter of fiscal 1999 as compared with the same quarter of the prior year. As the Company continues to increase its emphasis on providing comprehensive application development solutions in fiscal 1999 it expects that consulting service costs may increase. 9 UNIFY CORPORATION PRODUCT DEVELOPMENT Product development expenses were stable at $1.4 million and represented 22% and 28% of total revenues for the quarters ended July 31, 1998 and 1997, respectively. The decrease in product development expenses as a percentage of total revenues was due to the growth in first quarter fiscal 1999 license revenues as compared to the same quarter of the prior year. The Company believes that substantial investment in product development is critical to maintaining technological leadership and therefore intends to continue to devote significant resources to product development. SELLING, GENERAL AND ADMINISTRATIVE Selling, general and administrative ("SG&A") expenses for the quarter ended July 31, 1998 decreased to $3.7 million, or 55% of total revenues, as compared to $4.6 million, or 89% of total revenues, for the same quarter of the prior year. SG&A expenses decreased in absolute dollars compared to the same period of the prior year as the Company continued to closely manage expenses. The decrease in SG&A expenses as a percentage of total revenues was attributable to the decrease in absolute dollars as well as to the increase in first quarter fiscal 1999 license revenues as compared to the same quarter of the prior year. The Company expects that total SG&A expenses may fluctuate from quarter to quarter primarily because of variability in marketing program spending and sales commission expense. PROVISION FOR INCOME TAXES The Company recorded tax provisions for the quarters ended July 31, 1998 and 1997 which related primarily to foreign income tax withholding on software license royalties paid to the Company by certain foreign licensees. For the same periods, the Company recorded no federal or state income tax provisions as the Company had substantial net operating loss carryforwards. 10 UNIFY CORPORATION VOLATILITY OF STOCK PRICE AND GENERAL RISK FACTORS AFFECTING QUARTERLY RESULTS The Company's common stock price has been and is likely to continue to be subject to significant volatility. A variety of factors could cause the price of the Company's common stock to fluctuate, perhaps substantially, including: announcements of developments related to the Company's business; fluctuations in the Company's quarterly operating results and order levels; general conditions in the computer industry or the worldwide economy; announcements of technological innovations; new products or product enhancements by the Company or its competitors; changes in financial estimates by securities analysts; developments in patent, copyright or other intellectual property rights; and developments in the Company's relationships with its customers, distributors and suppliers. In addition, in recent years the stock market in general, and the market for shares of equity securities of many high technology companies in particular, has experienced extreme price fluctuations which have often been unrelated to the operating performance of those companies. Such fluctuations may adversely affect the market price of the Company's common stock. The Company's quarterly operating results have varied significantly in the past, and the Company expects that its operating results are likely to vary significantly from time to time in the future. Such variations result from, among other factors, the following: the size and timing of significant orders and their fulfillment; demand for the Company's products; the number, timing and significance of product enhancements and new product announcements by the Company and its competitors; ability of the Company to attract and retain key employees; seasonality; changes in pricing policies by the Company or its competitors; realignments of the Company's organizational structure; changes in the level of the Company's operating expenses; changes in the Company's sales incentive plans; budgeting cycles of the Company's customers; customer order deferrals in anticipation of enhancements or new products offered by the Company or its competitors; product life cycles; product defects and other product quality problems; the results of international expansion; currency fluctuations; and general domestic and international economic and political conditions. Because a significant portion of the Company's revenues have been, and the Company believes will continue to be, derived from orders ranging in size from several hundred thousand dollars to approximately $1 million, the timing of such orders and their fulfillment has caused and is expected to continue to cause material fluctuations in the Company's operating results, particularly on a quarterly basis. Due to the foregoing factors, quarterly revenues and operating results are difficult to forecast. Revenues are also difficult to forecast because the market for client/server and Internet application development software is rapidly evolving, and the Company's sales cycle, from initial evaluation to purchase and the provision of maintenance services, is lengthy and varies substantially from customer to customer. In particular, with the fiscal 1997 release of Unify VISION 3.0 and VISION/Web as well as the May 1998 release of VISION 4.0, the Company has experienced new opportunities to compete for larger, enterprise-level sales transactions. These transactions have even longer sales cycles than the Company has experienced in the past. Because the Company normally ships products within a short time after it receives an order, it typically does not have any material backlog. As a result, to achieve its quarterly revenue objectives, the Company is dependent upon obtaining orders in any given quarter for shipment in that quarter. Furthermore, because many customers place orders toward the end of a fiscal 11 UNIFY CORPORATION quarter, the Company generally recognizes a substantial portion of its revenues at the end of a quarter. As the Company's expense levels are based in significant part on the Company's expectations as to future revenues and are therefore relatively fixed in the short term, if revenue levels fall below expectations operating results are likely to be disproportionately adversely affected. The Company also expects that its operating results will be affected by seasonal trends. The Company believes that, in general, it is likely it will experience relatively higher revenues in fiscal quarters ending April 30 and relatively lower revenues in fiscal quarters ending July 31 as a result of efforts by its direct sales force to meet fiscal year-end sales quotas. The Company also anticipates that it may experience relatively weaker demand in fiscal quarters ending July 31 and October 31 as a result of reduced business activity in Europe during the summer months. In particular, due to the foregoing factors and due to longer sales cycles associated with Unify VISION 4.0, the operating results of the Company for the quarter ending October 31, 1998 are subject to significant uncertainty. The Company has incurred net losses in five of the last eight fiscal quarters and in each of the last five fiscal years. Although the Company recorded small operating profits for the quarters ended January 31, 1998, April 30, 1998 and July 31, 1998, there can be no assurance regarding the Company's continued profitability. LIQUIDITY AND CAPITAL RESOURCES At July 31, 1998, the Company had cash, cash equivalents and short-term investments of $10.4 million, compared to $10.7 million at April 30, 1998. Working capital increased to $7.1 million at July 31, 1998 from $6.6 million at April 30, 1998. The Company's operating activities used cash of $0.2 million during the three months ended July 31, 1998. Investing activities during the period generated cash of $0.1 million, consisting principally of net sales of short term investments of $0.3 million offset by equipment purchases of $0.2 million. Cash provided by financing activities during the period was $0.1 million, representing primarily proceeds from issuance of common stock. The Company believes that current cash, cash equivalents and short-term investments will be sufficient to meet its cash requirements during the next 12 months. Thereafter, depending on its operating results, the Company may require additional equity or debt financing to meet its working capital or capital equipment requirements. There can be no assurance that additional financing will be available when required or, if available, that it will be on terms satisfactory to the Company. 12 UNIFY CORPORATION PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits Exhibit 27 Financial Data Schedule (b) Reports on Form 8-K The Company filed no reports on Form 8-K during the quarter ended July 31, 1998. 13 UNIFY CORPORATION SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: September 9, 1998 Unify Corporation (REGISTRANT) By: Reza Mikailli ------------------------------------------ Reza Mikailli President, Chief Executive Officer, Acting Vice President, Finance and Administration, and Director (Principal Executive, Financial and Accounting Officer) 14 EX-27 2 EXHBIT 27
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE COMPANY'S CONDENSED CONSOLIDATED BALANCE SHEET AS OF JULY 31, 1998 AND CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED JULY 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS APR-30-1999 MAY-01-1998 JUL-31-1998 5,297 5,149 5,527 643 0 16,154 6,592 4,734 18,080 9,097 0 0 0 53,639 (44,898) 18,080 6,660 6,660 1,279 6,381 (51) 0 28 302 (44) 258 0 0 0 258 0.03 0.03
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