Agilysys
AGYS
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1



SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549


FORM 10-K

FOR ANNUAL AND TRANSITION REPORTS
PURSUANT TO SECTIONS 13 OR
15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934

ANNUAL REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED MARCH 31, 1996

Commission File No. 0-5734

PIONEER-STANDARD ELECTRONICS, INC.
(Exact name of registrant as
specified in its charter)

Ohio 34-0907152
(State or other jurisdiction (I.R.S. employer
of incorporation or organization) identification no.)

4800 East 131st Street, Cleveland, Ohio 44105
(Address of principal executive offices) (Zip code)


Registrant's telephone number, including area code: (216) 587-3600

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:


Common Shares, without par value
(Title of Class)

Common Shares Purchase Rights
(Title of Class)

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: None

Indicate by checkmark 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 requirement for the past 90 days. Yes X No
--- ---

Indicate by checkmark if disclosure of delinquent filers pursuant to
Item 405 of Registration S-K is not contained herein and will not be contained,
to the best of Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this From 10-K Annual
Report or any amendment to this Form 10-K. [X]

The aggregate market value of voting Shares of the Registrant held by
non-affiliate was $310,547,415 as of June 1, 1996, computed on the basis of the
last reported sale price per share ($15.00) of such shares on The Nasdaq
National Market. Common Shares held by each officer, Director, and by each
person who owns or may be deemed to own 10% or more of the outstanding Common
Shares have been excluded since such persons may be deemed to be affiliates.
This determination of affiliate status is not necessarily a conclusive
determination for other purposes.

As of June 3, 1996, the Registrant had the following number of Common
Shares outstanding: 22,519,692
2
DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Registrant's definitive Proxy Statement to be used in
connection with its Annual Meeting of Shareholders to be held on July 23, 1996
are incorporated by reference into Part III of this Form 10-K.

Portions of the Registrant's Annual Report for the fiscal year ended March 31,
1996 are incorporated by reference into Parts II and IV of this Form 10-K.

Except as otherwise stated, the information contained in this Annual Report on
Form 10-K is as of March 31, 1996.

The Common Share information contained in this Form 10-K reflects a
three-for-two share split effected in the form of a 50% share dividend declared
on July 25, 1995 paid on September 6, 1995 to shareholders of record on August
16, 1995.


PART I
------

Item 1. Business
- -----------------

(a) Pioneer-Standard Electronics, Inc. was organized as an Ohio
corporation in 1963 and maintains its principal office at 4800 East 131st
Street, Cleveland, Ohio 44105 (telephone number (216) 587-3600). On June 1,
1994, Pioneer-Standard Canada Inc., a newly-formed Canadian subsidiary of the
Company, purchased from United Westburne Inc., a Canadian corporation, certain
of the assets and assumed certain liabilities of Westburne's Zentronics
Division, which the Company believes is one of the largest distributors of
electronic components and computer products in Canada. On November 30, 1995,
the Company acquired 50% of the Common Stock of Pioneer/Technologies Group
Inc., a Maryland corporation ("Technologies"). Prior to this acquisition, the
Company held 50% of the Common Stock of Technologies. There have not been any
material changes in the nature of the business done by the Company since April
1, 1995. Except as otherwise stated, the term "Company" as used herein shall
mean Pioneer-Standard Electronics, Inc., Pioneer-Standard Canada Inc., and
Pioneer-Standard of Maryland, Inc. (formerly Technologies).

(b) The Company is engaged in the distribution of industrial and
end-user electronic products, which business comprises only one basic industry
segment.

(c) The following is a description of various aspects of the
Company's business:

INDUSTRIAL AND END-USER DISTRIBUTION - The Company distributes a broad
range of electronics components and computer products manufactured by others.
These products are sold to original equipment manufacturers, value-added
resellers, research laboratories, government agencies, and end-users, including
manufacturing companies, and service and other non-





2
3
manufacturing organizations. These products are classified into three broad
categories: semiconductors, computer products, and passive and
electromechanical components. During fiscal 1996, semiconductor products
accounted for 38% of the Company's sales compared with 37% in 1995 and 41% in
1994. These products include microprocessors, memory devices, programmable
logic devices, analog and digital integrated circuits and other semiconductor
devices. During fiscal 1996, computer products accounted for 40% of the
Company's sales compared with 38% in 1995 and 33% in 1994. These products
include computers (primarily mini and personal), display terminals, disk
drives, development systems and networking products. During fiscal 1996,
passive and electromechanical products accounted for 20% of the Company's
sales, compared with 22% in 1995 and 24% in 1994. These products include
capacitors, connectors, resistors, potentiometers, switches and power
conditioning equipment.

As a part of its distributor operations, the Company provides
value-added services including point of use inventory management, systems
integration, just-in-time kitting operations, memory and logic device
programming and connector assemblies to customer specifications. Sales amounts
for these services are included among the three broad categories discussed
above.

Miscellaneous products accounted for 2% of sales in 1996, 3% of sales
in 1995 and 2% of sales in 1994.

PRODUCTS DISTRIBUTED AND SOURCES OF SUPPLY - The Company is the fourth
largest of the approximately 1,500 electronics distributors serving North
American markets in terms of combined sales (prior to the acquisition of the
remaining 50% of Technologies, the sales of the Company and Technologies were
combined for industry ranking purposes). The Company markets electronic
components supplied by over 100 manufacturers. A majority of the Company's
revenues comes from products sourced by relatively few suppliers. During the
1996 fiscal year, products purchased from the Company's five largest suppliers
accounted for 69% of total sales volume, with Digital Equipment Corporation
(27%) and Intel Corporation (18%) being the largest two suppliers. The loss of
any one of the top five suppliers and/or a combination of certain other
suppliers could have a material adverse effect on the Company's sales and
earnings unless alternative products manufactured by others are available to
the Company. The majority of the products sold by the Company are purchased
pursuant to distributor agreements which generally provide for inventory return
privileges by the Company upon cancellation of a distributor agreement. The
distributor agreements also typically provide protection to the Company for
product obsolescence and price erosion. The Company believes it has good
relationships with its suppliers.

CUSTOMERS - The Company serves over 24,000 customers in many major
markets of North America. No single customer accounted for more than five
percent of the Company's total sales for the fiscal year ended March 31, 1996.

BACKLOG - The Company historically has not had a significant backlog of
orders, although some shipments may be scheduled for delivery over an extended
period of time. There was not a significant backlog during the last fiscal
year.





3
4
COMPETITION - The sale and distribution of industrial electronic
components and computer products are highly competitive, primarily with respect
to price and product availability, but also with respect to service, variety
and availability of products carried, number of locations and promptness of
service. Many of the distributors with whom the Company competes are regional
or local distributors. However, several of the Company's strongest competitors
have national and international distribution businesses. The Company also
experiences competition from manufacturers, including some of the Company's
suppliers, who may sell directly to the industrial and end-user account base.

EMPLOYEES - As of March 31, 1996, the Company had 2,052 employees, with
approximately 2,016 of these persons employed on a full-time basis and the
balance on a part-time basis. The Company is not a party to any collective
bargaining agreement, has had no strikes or work stoppages and considers its
employee relations to be excellent.

(d) The Company distributes its products in the United States and
Canada. Export sales are not a significant portion of the Company's sales.

Item 2. Properties
- -------------------

The Company's major distribution facilities used in the business are set forth
below:

<TABLE>
<CAPTION>
Owned or Expiration Date
Location Sq. Ft. Leased of Lease (1)
-------- ------- -------- --------------
<S> <C> <C> <C>
Austin, Texas 10,800 Leased September 1, 2003
Chicago, Illinois 11,300 Leased April 14, 1998
Cleveland, Ohio (2) 87,000 Owned
Dallas, Texas 13,500 Leased October 31, 1999
Eden Prairie, Minnesota 12,800 Leased August 31, 1997
Fremont, California 12,000 Leased March 15, 1999
Gaithersburg, Maryland 112,000 Leased July 31, 1999
Horsham, Pennsylvania 12,800 Leased October 31, 2000
Irvine, California 14,700 Leased February 1, 1997
Lexington, Massachusetts 26,400 Owned
Montreal, Canada 12,100 Leased February 28, 1999
San Jose, California 42,000 Leased June 30, 1999
Solon, Ohio 174,000 Leased December 31, 2005
Solon, Ohio 21,600 Leased December 20, 2000
Solon, Ohio 24,000 Leased February 28, 1999
Solon, Ohio 41,000 Leased March 31, 1998
Solon, Ohio 44,700 Leased May 31, 1999
Toronto, Canada 32,700 Leased May 31, 1997
Tustin, California 16,100 Leased December 1, 2001
Twinsburg, Ohio (3) 106,000 Owned
Woodbury, New York 35,600 Leased September 30, 1997
- ---------------
</TABLE>





4
5
(1) The major leases contain renewal options for periods ranging from one
to twenty years.

(2) Corporate headquarters.

(3) Corporate distribution center.

The Company also has entered into various leases for distribution facilities of
10,000 square feet or less.

Item 3. Legal Proceedings
- --------------------------

As of March 31, 1996, the Company was not a party to any material
pending legal proceedings. The Company has entered into new Employment
Agreements with James L. Bayman, Arthur Rhein and John V. Goodger, effective
April 1, 1996. Ms. Janice M. Margheret has been requested to sign, but has not
yet signed, her proposed new Employment Agreement, and the Company and Ms.
Margheret are discussing the status of her continued employment with, or in the
alternative her separation from, the Company. If Ms. Margheret signs her new
Employment Agreement, which she has indicated she will not do, it will contain
terms similar to those contained in the other Executive Officers' Employment
Agreements. On June 21, 1996, Ms. Margheret, through her attorneys, advised
the Company that she has claims against the Company and certain of its Officers
and Directors based upon sex discrimination, retaliation for asserting claims
of sex discrimination, violations of the American With Disabilities Act, breach
of contract, tortious interference with advantageous business relations and
defamation. Discussions with her attorneys are being conducted, and if a
mutually satisfactory resolution is not arrived at, litigation may result.

Item 4. Submission of Matters to a Vote of Security Holders
- ------------------------------------------------------------

No matters were submitted to a vote of the Company's security holders
during the last quarter of its fiscal year ended March 31, 1996.





5
6
Executive Officers of the Company(1)
- ---------------------------------

The name, age and positions of each executive officer of the Company
as of June 1, 1996 are as follows:

<TABLE>
<CAPTION>
Name Age Position
---- --- --------
<S> <C> <C>
James L. Bayman 59 Chairman of the Board of the Company since April 1, 1996, Chief Executive Officer of
the Company since April 3, 1995, and President of the Company since June, 1984. Chief
Operating Officer of the Company from June, 1984 to April 3, 1995.

Arthur Rhein 50 Senior Vice President of the Company since April, 1993 and Vice President - Marketing
of the Company from 1986 to April, 1993. Prior thereto, Vice President - Northeast
Division of the Company from 1984 to 1986.

John V. Goodger 60 Vice President, Treasurer, and Assistant Secretary of the Company since February, 1990.
Prior thereto, Vice President, Treasurer and Assistant Secretary of Ferro Corporation
from 1987 to 1990 and Vice President and Treasurer of Ferro Corporation from 1984 to
1990.

Janice M. Margheret 41 Senior Vice President of the Company since April, 1993 and Vice President and
Controller of the Company from July, 1987 to April, 1993. Prior thereto, Group
Controller of the Company from 1983 to 1987.

William A. Papenbrock 57 Secretary of the Company since 1986. Mr. Papenbrock is a partner of the law firm of
Calfee, Halter & Griswold(2).
--------------------------
</TABLE>

(1) The description of Executive Officers called for in this Item
is included pursuant to Instruction 3 to Section (b) of Item
401 of Regulation S-K.

(2) The law firm of Calfee, Halter & Griswold serves as counsel to
the Company.

There is no relationship by blood, marriage or adoption among the
above-listed officers. Messrs. Bayman, Rhein and Goodger have entered into
new Employment Agreements with the





6
7
Company, all of which are included as Exhibits hereto. Messrs. Bayman, Rhein,
and Goodger hold office until terminated as set forth in their new Employment
Agreements. Mr. Papenbrock holds office until his successor is elected by the
Board of Directors. See "Item 3. Legal Proceedings" for information with
respect to Ms. Margheret and her employment status.





7
8
PART II
-------

Item 5. Market for Registrant's Common Equity and Related Stockholder Matters
- ------ ---------------------------------------------------------------------

The Company's Common Shares, without par value, are traded on The
Nasdaq National Market. Common Share prices are quoted daily under the symbol
PIOS. The high and low sales prices for the Common Shares, and the cash
dividends paid on the Common Shares, for each quarter of the two most recent
fiscal years and additional information required by this Item is set forth at
page 34 of the Annual Report, which information is incorporated herein by
reference.

Cash dividends are payable quarterly, upon authorization of the Board
of Directors. Regular payment dates are the 1st day of August, November,
February and May. The Company maintains a Dividend Reinvestment Plan whereby
cash dividends, and a maximum of an additional $5,000 per month, may be
invested in the Company's Common Shares at no commission cost.

On April 25, 1989, the Company adopted a Common Share Purchase Rights
Plan. For further information about the Common Share Purchase Rights Plan, see
Note 6 (Common Share Purchase Rights Plan) of Notes to Financial Statements of
the Company.

Item 6. Selected Financial Data
- ------ -----------------------

The information required by this Item is set forth at page 23 of the
Annual Report, which information is incorporated herein by reference.

Item 7. Management's Discussion and Analysis of Financial Condition and
- ------ ---------------------------------------------------------------
Results of Operations
- ---------------------

The information required by this Item is set forth at pages 19 through
22 of the Annual Report, which information is incorporated herein by reference.

Item 8. Financial Statements and Supplementary Data
- ------ -------------------------------------------

The information required by this Item is set forth at pages 24 through
32 of the Annual Report, which information is incorporated herein by reference.

Item 9. Changes in and Disagreements with Accountants on Accounting and
- ------ ---------------------------------------------------------------
Financial Disclosure
- --------------------
Not applicable.





8
9
PART III
--------

Item 10. Directors and Executive Officers of the Registrant
- ------- --------------------------------------------------

Information required by this item as to the Directors of the Company
appearing under the caption "Election of Directors" in the Company's Proxy
Statement to be used in connection with the Annual Meeting of Shareholders to
be held on July 23, 1996 (the "1996 Proxy Statement") is incorporated herein by
reference. Information required by this item as to the executive officers of
the Company is included in Part I of this Annual Report on Form 10-K.

Item 11. Executive Compensation
- ------- ----------------------

The information required by this item is incorporated herein by
reference to "Compensation of Executive Officers" in the 1996 Proxy Statement
(except for the Compensation Committee Report and the Performance Graph).

Item 12. Security Ownership of Certain Beneficial Owners and Management
- ------- --------------------------------------------------------------

The information required by this item is incorporated herein by
reference to "Share Ownership" in the 1996 Proxy Statement.

Item 13. Certain Relationships and Related Transactions
- ------- ----------------------------------------------

The information required by this item is incorporated herein by
reference to "Compensation of Executive Officers - Certain Transactions" in the
1996 Proxy Statement.





9
10
PART IV
-------


Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
- ------- ----------------------------------------------------------------

(a) The following financial statements and schedules are filed as part of
this Form 10-K:


(1) FINANCIAL STATEMENTS AND SCHEDULES. The following financial
statements of the Company and its subsidiaries and the report of
independent accountants thereon, included in the Annual Report on
pages 24 through 32 and page 34, are incorporated by reference in Item
8:

Report of independent auditors
Balance sheet as of March 31, 1996 and 1995
For the years ended March 31, 1996, 1995
and 1994:
Statements of income
Statements of shareholders' equity
Statements of cash flows
Notes to financial statements

Report of independent auditors
Schedules for years ended March 31, 1996,
1995 and 1994:
VIII - Valuation and Qualifying Accounts


Quarterly Financial Data

All other schedules have been omitted since the required information is not
present or not present in amounts sufficient to require submission of the
schedule, or because the information required is included in the financial
statements or the notes thereto.

(2) Exhibits
--------

See the Index to Exhibits at page E-1 of this Form 10-K.

(b) Reports on Form 8-K
-------------------

A Current Report on Form 8-K was filed December 12, 1995 and a Form 8-K/A-1
with respect to such Current Report was filed on February 9, 1996. The Current
Report was filed to report the Company's acquisition of Technologies. The
amendment was filed to include the financial statement and pro forma financial
information with respect to Technologies.





10
11
SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.
PIONEER-STANDARD ELECTRONICS, INC.

Date: June 28, 1996 By: /s/ James L. Bayman
------------------------------
James L. Bayman,
President and Chief
Executive Officer

Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on behalf of
the Registrant and in the capacities and on the dates indicated:


<TABLE>
<CAPTION>
Signature and Title Date
- ------------------- ----
<S> <C> <C> <C>
/s/ James L. Bayman President and Chief Executive )
- ---------------------------------- Officer (Principal Executive )
James L. Bayman Officer) )
)
)
/s/ John V. Goodger Vice President, )
- ----------------------------------- Treasurer and Assistant Secretary )
John V. Goodger (Principal Financial and Accounting )
Officer) )
)
)
/s/ Preston B. Heller, Jr. Director )
- ------------------------------------ )
Preston B. Heller, Jr. )
)
/s/ Frederick A. Downey Director ) June 28, 1996
- --------------------------------- )
Frederick A. Downey )
)
/s/ Victor Gelb Director )
- ------------------------------------- )
Victor Gelb )
)
/s/ Gordon E. Heffern Director )
- ----------------------------------- )
Gordon E. Heffern )
)
/s/ Arthur Rhein Director )
- ------------------------------------ )
Arthur Rhein )
)
/s/ Edwin Z. Singer Director )
- ----------------------------------- )
Edwin Z. Singer )
)
/s/ Thomas C. Sullivan Director )
- ----------------------------------- )
Thomas C. Sullivan )
)
/s/ Karl E. Ware Director )
- ----------------------------------- )
Karl E. Ware )
</TABLE>





11
12
Pioneer-Standard Electronics, Inc.
Exhibit Index


<TABLE>
<CAPTION>
Sequential
Exhibit No. Description Page No.
- ----------- ----------- ----------
<S> <C> <C>
3.(a) Amended Articles of Incorporation of
Pioneer-Standard Electronics, Inc., which
is incorporated herein by reference from
the Company's Annual Report on Form 10-K
for the year ended March 31, 1982. N/A

(b) Amended Code of Regulations, as amended,
which is incorporated herein by reference
from the Company's Annual Report on
Form 10-K for the year ended March 31,
1988. N/A

4.(a) Credit Agreement, dated as of November 30, 1995
by and among Pioneer-Standard Electronics, Inc.,
Pioneer-Standard of Maryland, Inc., the Banks
identified on the signature pages thereto and
National City Bank, as Agent, which is
incorporated by reference from the Form 8-K
dated December 13, 1995. N/A

(b) Rights Agreement dated as of April 25, 1989
by and between the Company and AmeriTrust
Company National Association, which is
incorporated herein by reference from the
Company's Annual Report on Form 10-K for
the year ended March 31, 1989. N/A

(c) Note Purchase Agreement dated as of October
31, 1990 by and between the Company and
Teachers Insurance and Annuity Association
of America, which is incorporated herein
by reference from the Company's Quarterly
Report on Form 10-Q for the quarter ended
December 31, 1990. N/A

(d) Amendment No. 1 to Note Purchase Agreement
dated as of November 1, 1991 by and between
the Company and Teachers Insurance and
Annuity Association of America, which is
incorporated herein by reference from the
Company's Annual Report on Form 10-K for
the year ended March 31, 1993. N/A

(e) Amendment No. 2 to Note Purchase Agreement dated
as of November 30, 1995 by and between the
Company and Teachers Insurance and Annuity
Association of America.

10.(a) Retirement Agreement effective March 31, 1996
by and between the Company and
Preston B. Heller, Jr.

(b) Employment Agreement effective as of April 1, 1996
by and between the Company and James L. Bayman.
</TABLE>





E-1
13
<TABLE>
<S> <C> <C>
(c) Employment Agreement effective as of April 1, 1996
by and between the Company and Arthur Rhein.

(d) Employment Agreement effective as of April 1, 1996
by and between the Company and John V. Goodger.

(e) Stock Purchase Agreement dated July 24, 1986
among Pioneer-Standard Electronics, Inc.
and the other shareholders of
Pioneer Technologies Group, Inc., which
is incorporated herein by reference from
the Company's Current Report on Form 8-K
dated July 24, 1986. N/A

(f) 1982 Incentive Stock Option Plan, as amended,
which is incorporated by reference from the
Company's Annual Report on Form 10-K for the
fiscal year ended March 31, 1988. N/A

(g) Amended and Restated 1991 Stock Option Plan,
which is incorporated by reference from the
Company's Form S-8 Registration Statement
dated April 28, 1994. N/A

(h) Asset Purchase Agreement dated April 22, 1994
between Pioneer-Standard Electronics, Inc. and
Westburne Industrial Enterprises Ltd., which
is incorporated herein by reference from the
Company's Current Report on Form 8-K dated
June 1, 1994. N/A

(i) Amended 1995 Stock Option Plan for Outside
Directors, which is incorporated by reference
from the Company's Form S-8 Registration
Statement dated June 28, 1996.
</TABLE>





E-2
14
<TABLE>
<S> <C> <C>
11. Statement regarding computation of per share
earnings.

13.1 1996 Annual Report (with a manually executed
report of independent public accountants)

21. Subsidiaries of the Registrant

23. Consents of Ernst & Young LLP, Independent
Auditors.

27. Financial Data Schedule

99.(a) Certificate of Insurance Policy effective
November 1, 1996 between Chubb Group of
Insurance Companies and Pioneer-Standard
Electronics, Inc.

99.(b) Forms of Amended and Restated Indemnification
Agreement entered into by and between the
Company and each of its Directors and
Executive Officers, which are incorporated
herein by reference from the Company's
Annual Report on Form 10-K for the year
ended March 31, 1994. N/A

</TABLE>




E-3
15
REPORT OF INDEPENDENT AUDITORS

We have audited the consolidated financial statements of Pioneer-Standard
Electronics, Inc. as of March 31, 1996 and 1995 and for each of the three years
in the period ended March 31, 1996 and have issued our report thereon dated May
1, 1996 included elsewhere in this Annual Report (Form 10-K). Our audits also
included the consolidated financial statement schedule of Pioneer-Standard
Electronics, Inc. as of March 31, 1996 and 1995 and for each of the three years
in the period ended March 31, 1996, listed in Item 14(a) of this Annual Report
(Form 10-K). This schedule is the responsibility of the Company's management.
Our responsibility is to express an opinion based on our audits.

In our opinion, the financial statement schedule referred to above, when
considered in relation to the basic financial statements taken as a whole,
presents fairly in all material respects the information set forth therein.



ERNST & YOUNG LLP

Cleveland, Ohio
May 1, 1996
16


PIONEER-STANDARD ELECTRONICS, INC.

SCHEDULE VIII - VALUATION AND QUALIFYING ACCOUNTS

<TABLE>
<CAPTION>
Years ended March 31, 1996, 1995 and 1994
Balance at Charged Deductions - Balance
beginning to costs net write-offs at end of
Description of period and expenses Other (Net recoveries) period
- ----------- --------- ------------ ----- ---------------- ---------
<S> <C> <C> <C> <C> <C>



1996:
Allowance for doubtful
accounts $4,606,000 $ 940,000 $2,195,000(1) $ 759,000 $6,982,000
Inventory valuation
reserve $3,416,000 $1,489,000 $5,534,000(1) $1,662,000 $8,777,000

1995:
Allowance for doubtful
accounts $2,869,000 $2,281,000 $ 544,000 $4,606,000

Inventory valuation
reserve $2,540,000 $2,167,000 $1,291,000 $3,416,000

1994:
Allowance for doubtful
accounts $1,713,000 $1,808,000 $ 652,000 $2,869,000

Inventory valuation
reserve $2,659,000 $1,995,000 $2,114,000 $2,540,000

<FN>
(1) Amount for Pioneer Technologies Group, Inc., purchased November 30, 1995.

</TABLE>