-----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, JxKX8hrbhhxo0c3RWclrI3IUSS2Y++n3PTeGo5osK9tE7Ak2irkt+uJjY25KbxQi lXAFLAcCVyPWFqyJmD8gKQ== 0000912057-97-005311.txt : 19970222 0000912057-97-005311.hdr.sgml : 19970222 ACCESSION NUMBER: 0000912057-97-005311 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970214 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DESTRON FEARING CORP /DE/ CENTRAL INDEX KEY: 0000881283 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 841079037 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-19688 FILM NUMBER: 97533409 BUSINESS ADDRESS: STREET 1: 490 VILLAUME AVE CITY: S ST PAUL STATE: MN ZIP: 55075-2445 BUSINESS PHONE: 6124551621 MAIL ADDRESS: STREET 1: 490 VILLAUME AVE CITY: 490 VILLAUME AVE STATE: MN ZIP: 55075 FORMER COMPANY: FORMER CONFORMED NAME: DESTRON IDI INC DATE OF NAME CHANGE: 19930328 10-Q 1 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 1996 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the Transition Period From ____________ to ____________ Commission file number 0-19688 DESTRON FEARING CORPORATION (Exact name of Registrant as specified in its charter) Delaware 84-1079037 (State or other jurisdiction of incorporation (I.R.S. Employer or organization) Identification No.) 490 Villaume Avenue South St. Paul, MN 55075 (612) 455-1621 (Address 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 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 February 12, 1997, there were 13,293,982 outstanding shares of Common Stock. DESTRON FEARING CORPORATION FORM 10-Q FOR THE QUARTER ENDED DECEMBER 31, 1996 INDEX Page ---- PART I -- FINANCIAL INFORMATION Item 1 -- Financial Statements 3 Item 2 -- Management's Discussion and Analysis of Financial Condition and Result of Operations 8 PART II -- OTHER INFORMATION Item 1 -- Legal Proceedings 11 Item 6 -- Exhibits and Reports on Form 8-K 12 Signatures 12 - -------------------------------------------------------------------------------- PART 1. FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS DESTRON FEARING CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) DECEMBER 31, 1996 AND SEPTEMBER 30, 1996 (in thousands, except share and per share amounts) - -------------------------------------------------------------------------------- ASSETS December 31, September 30, 1996 1996 ------------ ------------- CURRENT ASSETS: Cash $56 $39 Accounts receivable, net 2,068 1,016 Inventories, net 6,800 7,219 Prepaid expenses and other current assets 32 28 ------------ ------------- Total current assets 8,956 8,302 PROPERTY AND EQUIPMENT, net 2,042 2,104 INVESTMENT IN JOINT VENTURE 225 225 GOODWILL, net 2,064 2,085 OTHER ASSETS, net 277 306 ------------ ------------- $13,564 $13,022 ------------ ------------- ------------ ------------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Line of credit $1,276 $866 Accounts payable 5,504 5,597 Accrued liabilities 674 528 Current portion of long-term obligations 948 47 ------------ ------------- Total current liabilities 8,402 7,038 LONG-TERM OBLIGATIONS, net of current portion 780 1,688 ------------ ------------- Total liabilities 9,182 8,726 ------------ ------------- SHAREHOLDERS' EQUITY: Common stock, $.01 par value; 20,000,000 shares authorized; 11,644,000 and 11,641,000 shares issued and outstanding, respectively 116 116 Additional paid-in capital 16,697 16,692 Accumulated deficit (12,431) (12,512) ------------ ------------- Total shareholders' equity 4,382 4,296 ------------ ------------- $13,564 $13,022 ------------ ------------- ------------ ------------- The accompanying notes are an integral part of these consolidated balance sheets. - 3 - DESTRON FEARING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE MONTHS ENDED DECEMBER 31, 1996 AND 1995 (in thousands, except per share amounts) - -------------------------------------------------------------------------------- Three Months Ended December 31, ------------------------------- 1996 1995 ----------- ------------ NET REVENUE $3,168 $2,477 ----------- ------------ COSTS AND EXPENSES: Cost of sales 1,957 1,632 Selling, general and administrative 705 989 Research and development 198 213 Interest expense and other 227 (55) ----------- ------------ Total costs and expenses 3,087 2,779 ----------- ------------ INCOME (LOSS) BEFORE INCOME TAXES 81 (302) PROVISION FOR INCOME TAXES -- -- ----------- ------------ NET INCOME (LOSS) $81 ($302) ----------- ------------ NET INCOME (LOSS) PER COMMON AND COMMON EQUIVALENT SHARE $0.01 ($0.03) ----------- ------------ ----------- ------------ WEIGHTED AVERAGE NUMBER OF COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING 11,946 11,186 ----------- ------------ ----------- ------------ The accompanying notes are an integral part of these consolidated financial statements. -4- DESTRON FEARING CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE THREE MONTHS ENDED DECEMBER 31, 1996 AND 1995 (in thousands) - --------------------------------------------------------------------------------
Three Months Ended December 31, ------------------------------------ 1996 1995 ----------- --------- OPERATING ACTIVITIES: Net income (loss) $81 ($302) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 127 118 Equity in income of joint venture and other -- (18) Changes in operating items: Accounts receivable (1,052) 191 Inventories 419 (2,196) Prepaid expenses and other current assets (4) (1) Royalties receivable -- 402 Accounts payable and accrued liabilities 53 119 ----------- --------- Net cash used in operating activities (376) (1,687) ----------- --------- INVESTING ACTIVITIES: Purchases of fixed assets (15) (98) Change in other assets -- (116) ----------- --------- Net cash used in investing activities (15) (214) ----------- --------- FINANCING ACTIVITIES: Issuance of common stock, net 5 2,000 Repayments of long-term obligations (7) (626) Net borrowings on bank line of credit 410 545 ----------- --------- Net cash provided by financing activities 408 1,919 ----------- --------- NET CHANGE IN CASH 17 18 CASH, beginning of period 39 62 ----------- --------- CASH, end of period $56 $80 ----------- --------- ----------- --------- SUPPLEMENTAL CASH FLOW INFORMATION: Interest paid $216 $93 ----------- --------- ----------- ---------
The accompanying notes are an integral part of these consolidated financial statements. - 5 - DESTRON FEARING CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 1996 and 1995 (unaudited) - -------------------------------------------------------------------------------- 1. GENERAL The information included in the accompanying consolidated interim financial statements is unaudited and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the most recent Annual Report on Form 10-KSB filed for Destron Fearing Corporation and its subsidiaries (collectively, the "Company"). In the opinion of management, all adjustments, consisting of normal recurring items, necessary for a fair presentation of the financial position and results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire fiscal year. 2. RELATIONSHIP WITH SCHERING-PLOUGH In January 1995, the Company entered into an agreement with Schering-Plough Animal Health ("Schering-Plough"), under which Schering-Plough would market and distribute a companion animal permanent identification product manufactured by the Company. In October 1995, Schering-Plough notified the Company that it would suspend purchases for an indefinite period of time to allow for the sales of its existing inventories. In response to this notification, the Company began to curtail the purchase of materials required to manufacture and package the product. However, as a result of previous commitments, the Company was unable to discontinue certain purchases from its suppliers. As of December 31, 1996 and September 30, 1996, inventories included readers, transponders and other components and packaging of $3,527,000 and $3,678,000, related to the Company's agreement with Schering-Plough. The Company has the right to recover the costs of certain of these inventories under this agreement. Management believes that the cost of inventories on hand will be realized through sales of the product to Schering-Plough or other customers, or through enforcement of the Company's rights under the agreement to receive reimbursement from Schering-Plough. However, it is also possible that the Company will be required to dispose of these inventories through alternate means, which could result in significant losses. 3. INVENTORIES Inventories are valued at the lower of first in, first out cost or market, and consist of the following (in thousands): December 31, 1996 September 30, 1996 ----------------- ----------------- Raw materials $3,171 $3,352 Finished goods 3,629 3,867 ------- ------- Total inventories $6,800 $7,219 ------- ------- ------- ------- 6 4. PRIVATE PLACEMENTS OF COMMON STOCK In December 1995, the Company completed a private placement of 625,000 shares of common stock for proceeds of $2.0 million. A portion of these proceeds was used to retire an outstanding $600,000 term loan, with the remaining proceeds expected to be used to finance working capital needs and new product development. In January 1997, the Company completed private placements aggregating 1,650,000 shares of common stock for proceeds of $3.3 million. The proceeds will be used to finance working capital needs and new product development. 5. LEGAL PROCEEDINGS Destron is party to litigation in which it is asserting infringement by a competitor of one of the Company's patents related to certain of its technology. The defendants assert that the patent is not infringed, is invalid and is unenforceable. The defendants also have asserted antitrust and unfair competition claims against the Company and Hughes Aircraft Company (Hughes). The trial in the litigation commenced on January 8, 1996. On January 29, 1996, the jury in the trial returned a verdict in favor of the Company and found that the defendants had willfully infringed on the Company's patent, awarding damages of $444,000, including prejudgment interest. The defendants have appealed the judgment against them, and the Company cross-appealed the failure of the court to increase Destron's damages. While management and its legal counsel continue to believe that the final outcome of this litigation will not have a significant impact on the Company's future financial position, cash flows or results of operations, there can be no assurance of the ultimate outcome of the litigation. On December 17, 1996, three competitors filed a lawsuit against the Company and its United States distributor, Schering-Plough Corporation, in the United States District Court for the District of Minnesota. The plaintiffs alleged that the defendants participated in unfair competition, breached an oral contract and infringed on three of the plaintiffs' United States patents. On January 24, 1997, the plaintiffs withdrew this lawsuit in its entirety. 6. PRIVATE PLACEMENT OF DEBT In March 1996, the Company borrowed a total of $875,000 (and an additional $25,000 in April 1996) from private investors through the issuance of unsecured notes due October 21, 1997 and bearing interest at the rate of 11% per annum. As part of the transaction, the Company issued warrants to the noteholders to purchase a total of 147,539 shares of the Company's common stock. The warrants are exercisable at $4.8125 per share for a term of five (5) years beginning March 21, 1996. The value of these warrants at the time of issuance was not deemed to be significant. Funds received from these notes were used to retire indebtedness that was due on March 21, 1996, and to provide additional working capital for operations. 7. REAL ESTATE LOAN In April 1996, the Company borrowed $658,000 from a commercial bank through the issuance of a promissory note collateralized by its real estate. The note bears interest at 8.98% and is due on April 8, 2001. The terms of the note call for 59 monthly payments of $6,668 and a final balloon payment of $533,372. The proceeds of the loan were used to retire a previous bank loan and industrial development revenue bonds, both of which were collateralized by real estate. The remaining proceeds were used to provide additional working capital for operations. 7 Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULT OF OPERATIONS RELATIONSHIP WITH SCHERING-PLOUGH In January 1995, the Company entered into an agreement with Schering-Plough Animal Health ("Schering-Plough"), under which Schering-Plough would market and distribute a companion animal permanent identification product manufactured by the Company. In October 1995, Schering-Plough notified the Company that it would suspend purchases for an indefinite period of time to allow for the sales of its existing inventories. In response to this notification, the Company began to curtail the purchase of materials required to manufacture and package the product. However, as a result of previous commitments, the Company was unable to discontinue certain purchases from its suppliers. As a result, at December 31, 1996 the Company had an outstanding balance payable to a major vendor of approximately $4.8 million that it has been unable to pay in the normal course of business and inventories of approximately $3,678,000 on hand related to the Schering-Plough agreement. Also see "Liquidity and Capital Resources". The Company has the right to recover the costs of certain of these inventories under this agreement. Management believes that the cost of inventories on hand will be realized through sales of the product to Schering-Plough or other customers, or through enforcement of the Company's rights under the agreement to receive reimbursement from Schering-Plough. However, it is also possible that the Company will be required to dispose of these inventories through alternate means, which could result in significant losses. RESULTS OF OPERATIONS Net revenue for the first quarter ended December 31, 1996 was $3,168,000 or 28% greater than the $2,477,000 reported for the comparable period of fiscal 1996. Revenue from the Radio Frequency Identification Device (RFID) electronic products increased 42% in the quarter over last year's quarter principally because of increased sales to the fisheries industries and sales into the newly activated companion animal market in Japan. Revenue from the sale of visual identification products increased 11% over the first quarter of fiscal 1996 because of larger shipments to existing customers and a general price increase in December 1996. Cost of sales of $1,957,000 for the first quarter of fiscal 1997 increased 20% over the $1,632,000 reported in the first quarter of fiscal 1996 because of increased net revenue. However, as a percentage of sales, the fiscal 1997 cost of sales declined to 62% from last year's 66% primarily because of a more profitable product mix and increased manufacturing efficiency of visual identification products. Gross profit margins of the RFID products increased nominally over the first quarter of last year. As a result of these factors, the reported gross profit percentage for the first quarter of fiscal 1997 increased to 38% from 34% reported for the quarter ended December 31, 1995. Selling, general and administrative expenses were $705,000 in the first quarter which represents a 29% reduction from the $989,000 reported in the comparable quarter of last year. This reduction was primarily the result of significantly lower legal expenses ($183,000). Research and development expenses were $198,000 in the first quarter of fiscal 1997 compared to $213,000 for the previous year. The decrease resulted primarily from lower outside production development expenses. Interest and other was $227,000 in the first quarter of fiscal 1997 compared to [$55,000] for the same period of fiscal 1996. In the first quarter of fiscal 1996, the Company collected a $137,000 note that had been written off in a prior fiscal year. Interest expense increased in the first quarter of fiscal 1997 because of higher 8 average outstanding borrowings and recognition of imputed interest on an outstanding balance payable to a vendor. The Company derives a significant portion of its revenue from export sales. The gross profit and cash requirements of these sales do not vary materially from the requirements of its domestic sales. LIQUIDITY AND CAPITAL RESOURCES Historically, the Company has utilized financing sources such as public and private equity offerings and borrowings from financial institutions and individual investors to fund its operating activities. In addition, during fiscal 1966 and in fiscal 1997 to date, the Company has been required to extend the term on payments to a significant vendor. As of the date of this quarterly report, the Company is engaged in discussions with this vendor regarding settlement of the approximately $4.8 million balance payable. In order for the Company to continue to fund its operations in fiscal 1997, it will be required to negotiate an agreement with the vendor with payment terms that do not severely restrict other cash flow requirements. The Company believes that funds available under its existing credit agreement, or a credit agreement with an alternative lending institution, together with funds generated by operations and from private placements of common stock in January 1997, along with the negotiation of an agreement with the above-discussed vendor, will be sufficient to provide the Company with adequate liquidity and capital resources for working capital and other cash requirements. However, the information set forth in the preceding paragraph is forward-looking information. Therefore, if, for any reason (including, without limitation, those described below), the Company's operations require more capital than anticipated, revenues do not reach anticipated levels, or cash flow needs are greater than planned, the Company may need additional financing prior to the end of fiscal 1997 in order to maintain its operations. There can be no assurance that the Company would be able to obtain any required additional financing when needed or that such financing, if obtained, would be on terms favorable or acceptable to the Company. If the Company was unable to obtain additional financing when needed and under acceptable conditions, it would be required to significantly scale back plans for growth and perhaps reduce the scope of its operations. Factors that may affect the Company's revenues, use of capital, expenses and/or cash flow, and that would cause actual results to differ materially from those anticipated include, but are not limited to, the introduction of competing products with performance equivalent to or exceeding that of the Company's products, a claim (whether or not successfully made) that the Company's products infringe a patent held by another company or individual, any performance problems involving the Company's products, changes in technology that could cause the Company's products to become obsolete, the departure of key members of management and/or key employees, regulatory requirements that would make the Company's products difficult or uneconomical to produce, and general economic conditions. The Company's operating activities used $376,000 during the three month period ended December 31, 1996. Funds were generated from net income for the period of $81,000, depreciation and amortization of $127,000, a decrease in inventories of $419,000 and increases in accounts payable and accrued liabilities of $53,000. The funds were used principally to finance an increase in accounts receivable of $1,052,000. The Company's financing activities provided net cash of $408,000 during the three months ended December 31, 1996, principally through an increase in its net borrowings on a bank line of credit of $410,000. As of December 31, 1996, the Company had net working capital of $554,000 with a current ratio of 1.1 to 1, which represents a $710,000 decrease in working capital from September 30, 1996. In June 1993, the Company entered into a $750,000 revolving credit agreement with private investors (the "Lenders") that was amended in November 1993 to reduce the principal to $600,000 and convert the indebtedness to a term loan. One of the Lenders was a director of the Company through November 1995. 9 This term was repaid in November 1995 from the proceeds of the private placement of common stock discussed below. The Company has a discretionary revolving credit facility with a financial institution, under which borrowings are limited based upon eligible accounts receivable and inventories, as defined in the agreement. The credit facility is collateralized by an interest in the Company's accounts receivable, inventories, equipment and intangibles. The agreement expired on January 24, 1997, and was replaced by a forbearance agreement which is effective through July 31, 1997. The new agreement establishes a $2,300,000 borrowing capacity through March 31, 1997, with a reduction to $2,000,000 through June 30, 1997 and further reduction to $500,000 through July 31, 1997. Interest on the credit facility will be paid monthly at a rate of prime plus one and one-half of one percent ( 1/2%); At December 31, 1996, the Company had borrowings of $1,276,000 with maximum availability under the facility at that date of $1,819,000. In September 1994, the Company borrowed a total of $610,000 from private investors (including certain executive officers and directors) through the issuance of unsecured notes bearing interest at the rate of 12% per annum, due March 21, 1996. Funds received on these notes were used to reduce outstanding borrowings under the Company's bank line of credit and to provide additional working capital for operations. These notes were repaid in March 1996 from the proceeds of the 11% unsecured notes discussed below. In March 1995, a warrant holder exercised a warrant for the purchase of 300,000 shares of the Company's common stock. The transaction was settled through a cash payment of $3,000 and execution of a 15% promissory note for $297,000 due May 3, 1995 (and subsequently extended to July 3, 1995). The note was paid in full on May 30, 1995. In December 1995, the Company completed a private placement of 625,000 shares of common stock for proceeds of $2.0 million. A portion of these proceeds was used to retire the outstanding $600,000 term loan with the Lenders, with the remaining proceeds used to finance working capital needs and new product development. In March and April 1996, the Company borrowed a total of $900,000 from private investors through the issuance of unsecured notes due October 21, 1997 and bearing interest at the rate of 11% per annum. Funds received from these notes were used to retire the $610,000 indebtedness that was due on March 21, 1996, and to provide additional working capital for operations. In April 1996, the Company borrowed $658,000 from a commercial bank through the issuance of a promissory note collateralized by its real estate. The note bears interest at 8.98% and is due on April 8, 2001. The terms of the note call for 59 monthly payments of $6,668 and a final balloon payment of $533,372. The proceeds of the loan were used to retire a previous bank loan and industrial development revenue bonds, both of which were collateralized by real estate. The remaining proceeds were used to provide additional working capital for operations. In January 1997, the Company completed private placements aggregating 1,650,000 shares of common stock for proceeds of $3.3 million. These proceeds will be used to finance working capital needs and new product development. 10 PART II. OTHER INFORMATION Item 1. Legal Proceedings In November 1993, the Company initiated a lawsuit for patent infringement against three competitors in the U.S. District Court in Colorado. (The patent involved is No. 5,211,129, which relates to the Company's injectable transponder technology.) At a hearing on November 12, 1993, the Court found that it did not have jurisdiction in Colorado over two of the competitors and dismissed the Colorado case against them without prejudice. The Court suggested that the third competitor may be an infringer on the patent, but did not order the temporary injunction requested by the Company. On December 1, 1993, the two dismissed competitors commenced an action against the Company in U.S. District Court for Southern Illinois requesting actual damages of $20,000,000 This action was subsequently transferred to the U.S. District Court of Colorado. In the suit, the plaintiffs sought to invalidate the above-described patent of the Company and alleged unfair competition, violation of U.S. antitrust laws, interference with business relationships and abuse of process due to the actions the Company had allegedly taken in obtaining, announcing and enforcing its patent rights against the plaintiffs. The trial in the litigation commenced on January 8, 1996. On January 29, 1996, the jury in the trial returned a verdict in favor of the Company and found that the defendants had willfully infringed on the Company's patent and awarded damages of $445,000, including prejudgment interest. The defendants have appealed the judgment against them, and the Company cross-appealed the failure of the court to increase Destron's damages. While management and its legal counsel continue to believe that the ultimate outcome of this litigation will not have a significant impact on the Company's future financial position, cash flows or results of operations, there can be no assurance of the ultimate outcome or effect of the litigation. On December 17, 1996, three competitors filed a lawsuit against the Company and its United States distributor, Schering-Plough Corporation, in the United States District Court for the District of Minnesota. The plaintiffs alleged that the defendants participated in unfair competition, breached an oral contract and infringed on three of the plaintiffs' United States patents. On January 24, 1997, the plaintiffs withdrew this lawsuit in its entirety. 11 Item 6. Exhibits and Reports on Form 8-K a. Exhibits: Exhibit 11.1 Calculation of Net Income (Loss) Per Common and Common Equivalent Share b. Reports on Form 8-K No current reports on Form 8-K were filed during the quarter ended December 31, 1996. SIGNATURES In accordance with 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. DESTRON FEARING CORPORATION (Registrant) /s/ Thomas J. Ahmann -------------------------------- By Thomas J. Ahmann Vice President Finance, Chief Financial Officer and Principal Accounting Officer 12 EX-11.1 2 EXHIBIT 11.1 Exhibit 11.1 DESTRON FEARING CORPORATION Calculation of Net Income (Loss) Per Common and Common Equivalent Share (in thousands, except per share amounts) Quarter Ended December 31, -------------------------- 1996 1995 ---- ---- Net income (loss) $81 ($302) -------- ------- -------- ------- Weighted average number of common and common equivalent shares outstanding: Weighted average number of common shares outstanding 11,644 11,186 Dilutive effect of stock options after application of the treasury stock method 302 -- -------- ------- 11,946 11,186 -------- ------- -------- ------- Net income (loss) per common and common equivalent share $0.01 ($0.03) -------- ------- -------- ------- - 13 - EX-27 3 EXHIBIT 27 FDS
5 1,000 3-MOS SEP-30-1997 DEC-31-1996 56 0 2,150 (82) 6,800 8,956 2,804 (762) 13,564 8,403 0 0 0 16,813 (12,432) 13,564 3,168 3,168 1,957 1,957 914 0 216 81 0 81 0 0 0 81 0.01 0.01
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