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 April 4, 1998
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 0-20109
----------------------------------------------------------
Kronos Incorporated
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Massachusetts 04-2640942
- -------------------------------------- ----------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
400 Fifth Avenue, Waltham, MA 02154
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(781) 890-3232
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
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 1, 1998, 8,294,986 shares of the registrant's Common Stock, $.01
par value, were outstanding.
KRONOS INCORPORATED
INDEX
PART I. FINANCIAL INFORMATION Page
Item 1. Condensed Consolidated Financial Statements (Unaudited)
Condensed Consolidated Statements of Income for the Three
Months and Six Months Ended April 4, 1998 and March 29, 1997 1
Condensed Consolidated Balance Sheets at April 4, 1998
and September 30, 1997 2
Condensed Consolidated Statements of Cash Flows for the Three
Months and Six Months Ended April 4, 1998 and March 29, 1997 3
Notes to Condensed Consolidated Financial Statements 4
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 6
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
Item 6. Exhibits and Reports on Form 8-K
Signatures
Exhibit Index
PART I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements (Unaudited)
KRONOS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share amounts)
UNAUDITED
Three Months Ended Six Months Ended
--------- --------- --------- ---------
April 4, March 29, April 4, March 29,
1998 1997 1998 1997
--------- --------- --------- ---------
Net revenues:
Product .......................... $ 30,111 $ 26,121 $ 59,872 $ 51,839
Service .......................... 16,361 13,282 31,173 24,674
--------- --------- --------- ---------
--------- --------- --------- ---------
46,472 39,403 91,045 76,513
--------- --------- --------- ---------
Cost of sales:
Product .......................... 7,743 7,041 14,783 13,456
Service .......................... 10,494 8,813 20,623 16,785
--------- --------- --------- ---------
18,237 15,854 35,406 30,241
--------- --------- --------- ---------
Gross profit ................. 28,235 23,549 55,639 46,272
Expenses:
Sales and marketing .............. 15,878 13,835 31,929 26,579
Engineering, research and development 4,557 4,166 8,881 8,138
General and administrative ....... 3,317 2,745 6,412 5,253
Other (income) expense, net ...... (184) (75) (186) (112)
--------- --------- --------- ---------
23,568 20,671 47,036 39,858
--------- --------- --------- ---------
Income before income taxes ... 4,667 2,878 8,603 6,414
Provision for income taxes ......... 1,783 1,099 3,287 2,449
--------- --------- --------- ---------
Net income ................... $ 2,884 $ 1,779 $ 5,316 $ 3,965
========= ========= ========= =========
Net income per common share:
Basic ........................ $ 0.35 $ 0.22 $ 0.65 $ 0.49
========= ========= ========= =========
Diluted ...................... $ 0.34 $ 0.21 $ 0.63 $ 0.47
========= ========= ========= =========
Average common and common equivalent shares outstanding:
Basic ........................ 8,274,942 8,185,134 8,232,509 8,158,144
========= ========= ========= =========
Diluted ...................... 8,527,857 8,439,627 8,484,485 8,418,489
========= ========= ========= =========
See accompanying notes to condensed consolidated financial statements.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
UNAUDITED
April 4, September 30,
1998 1997
--------- ---------
ASSETS
Current assets:
Cash and equivalents .................................................... $ 16,517 $ 20,698
Marketable securities ................................................... 24,451 15,530
Accounts receivable, less allowances for doubtful accounts of $1,000
at April 4, 1998 and $1,091 at September 30, 1997 .................... 36,965 38,817
Inventories ............................................................. 4,418 4,322
Deferred income taxes ................................................... 4,277 4,277
Other current assets .................................................... 7,515 6,539
--------- ---------
Total current assets ............................................. 94,143 90,183
Equipment, net ............................................................. 16,414 17,038
Net investment in sales-type leases ........................................ 5,924 5,312
Excess of cost over net assets of businesses acquired ...................... 11,222 7,855
Other assets ............................................................... 8,724 7,726
--------- ---------
Total assets ...................................................... $ 136,427 $ 128,114
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses ................................... $ 12,759 $ 13,217
Accrued compensation .................................................... 9,466 10,105
Federal and state income taxes payable .................................. 1,359 3,497
Unearned service revenue ................................................ 24,806 22,209
--------- ---------
Total current liabilities ......................................... 48,390 49,028
Deferred income taxes ...................................................... 2,587 2,587
Unearned service revenue ................................................... 6,224 3,523
Other liabilities .......................................................... 435 503
Shareholders' equity:
Preferred Stock, par value $1.00 per share: authorized 1,000,000 shares,
no shares issued and outstanding
Common Stock, par value $.01 per share: authorized 20,000,000 shares,
8,291,639 shares and 8,246,453 shares issued at April 4, 1998 and
September 30, 1997, respectively ..................................... 83 82
Additional paid-in capital .............................................. 29,044 29,770
Retained earnings ....................................................... 50,362 45,045
Equity adjustment from translation ...................................... (697) (262)
Cost of Treasury Stock (23 shares and 86,493
shares at April 4, 1998 and September 30, 1997, respectively) ........ (1) (2,162)
--------- ---------
Total shareholders' equity ........................................ 78,791 72,473
--------- ---------
Total liabilities and shareholders' equity ........................ $ 136,427 $ 128,114
========= =========
See accompanying notes to condensed consolidated financial statements.
KRONOS INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
UNAUDITED
Six Months Ended
---------------------
April 4, March 29,
1998 1997
-------- --------
Operating activities:
Net income $ 5,317 $ 3,965
Adjustments to reconcile net income to net cash and equivalents
provided by operating activities:
Depreciation 3,571 3,023
Amortization of deferred software development costs and
excess of cost over net assets of businesses acquired 3,010 2,149
Changes in certain operating assets and liabilities:
Accounts receivable, net 1,637 965
Inventories (111) (677)
Unearned service revenue 5,347 2,680
Accounts payable, accrued compensation
and other liabilities (3,393) (1,814)
Net investment in sales-type leases (812) (2,684)
Other (828) (721)
-------- --------
Net cash and equivalents provided by operating activities 13,738 6,886
Investing activities:
Purchase of equipment (3,000) (5,124)
Capitalization of software development costs (3,023) (2,552)
(Increase) decrease in marketable securities (8,921) 3,795
Acquisitions of businsesses (4,360) (422)
-------- --------
Net cash and equivalents used in investing activities (19,304) (4,303)
Financing activities:
Net proceeds from exercise of stock option and employee stock
purchase plans 1,463 939
Purchase of treasury stock (27) (27)
-------- --------
Net cash and equivalents provided by financing activities 1,436 912
Effect of exchange rate changes on cash and equivalents (51) 16
-------- --------
Increase (decrease) in cash and equivalents (4,181) 3,511
Cash and equivalents at the beginning of the period 20,698 10,795
-------- --------
Cash and equivalents at the end of the period $16,517 $14,306
======== ========
See accompanying notes to condensed consolidated financial statements.
KRONOS INCORPORATED
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE A - General
The accompanying unaudited condensed consolidated financial statements include
all adjustments, consisting of normal recurring accruals, that management
considers necessary for a fair presentation of the Company's financial position
and results of operations as of and for the interim periods presented pursuant
to the rules and regulations of the Securities and Exchange Commission. Certain
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations, although the Company believes
the disclosures in these financial statements are adequate to make the
information presented not misleading. These condensed consolidated financial
statements should be read in conjunction with the Company's audited financial
statements for the fiscal year ended September 30, 1997. The results of
operations for the three and six month periods ended April 4, 1998 are not
necessarily indicative of the results for a full fiscal year. Certain amounts
have been reclassified in fiscal 1997 to permit comparison with fiscal 1998.
NOTE B - Fiscal Quarters
The Company utilizes a system of fiscal quarters. Under this system, the first
three quarters of each fiscal year end on a Saturday. However, the fourth
quarter of each fiscal year will always end on September 30. Because of this,
the number of days in the first quarter (95 days in fiscal 1998 and 89 days in
fiscal 1997) and fourth quarter (88 days in fiscal 1998 and 94 days in fiscal
1997) of each fiscal year varies from year to year. The second and third
quarters of each fiscal year will be exactly thirteen weeks long. This policy
does not have a material effect on the comparability of results of operations
between quarters.
NOTE C - Earnings Per Share
In February 1997, the Financial Accounting Standards Board (FASB) issued SFAS
No. 128, "Earnings per Share." SFAS No. 128 replaced the previously reported
primary and fully diluted earnings per share with basic and diluted earnings per
share. Unlike primary earnings per share, basic earnings per share excludes any
dilutive effects of options, warrants, and convertible securities. Diluted
earnings per share is very similar to the previously reported fully diluted
earnings per share. All earnings per share amounts presented have been restated
to conform to SFAS No. 128 requirements.
The following table sets forth the computation of basic and diluted earnings per
share:
Three Months Ended Six Months Ended
------------------------- -------------------------
April 4,. March 29, April 4, March 29,
1998 1997 1998 1997
----------- ----------- ----------- -----------
Net income (in thousands) ........................ $ 2,884 $ 1,779 $ 5,316 $ 3,965
=========== =========== =========== ===========
Weighted average shares .......................... 8,274,942 8,185,134 8,232,509 8,158,144
Effect of dilutive securities:
Employee stock options ........................... 252,915 254,493 251,976 260,345
----------- ----------- ----------- -----------
Adjusted weighted average shares
and assumed conversions ........................ 8,527,857 8,439,627 8,484,485 8,418,489
=========== =========== =========== ===========
Basic earnings per share ............................ $ 0.35 $ 0.22 $ 0.65 $ 0.49
=========== =========== =========== ===========
Diluted earnings per share .......................... $ 0.34 $ 0.21 $ 0.63 $ 0.47
=========== =========== =========== ===========
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Forward Looking Statements
This discussion includes certain forward-looking statements about the
Company's business and its expectations. Any such statements are subject to risk
that could cause the actual results to vary materially from expectations. For a
further discussion of the various risks that may affect the Company's business
and expectations, see "Certain Factors That May Affect Future Operating Results"
at the end of Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Results of Operations
Revenues. Revenues for the second quarter of fiscal 1998 amounted to
$46.5 million as compared with $39.4 million for the second quarter of the prior
year. Revenues for the first six months of fiscal 1998 were $91.0 million as
compared with $76.5 million for the first six months of the prior year. Revenue
growth was 18% and 19% in the three and six month periods ended April 4, 1998,
respectively, as compared to 19% for each of the comparable periods of the prior
year.
Product revenues for the second quarter of fiscal 1998 amounted to $30.1
million as compared with $26.1 million for the second quarter of the prior year.
Product revenues for the first six months of fiscal 1998 were $59.9 million as
compared with $51.8 million for the first six months of the prior year. Product
revenue growth of 15% in the three and six month periods ended April 4, 1998,
respectively, increased from 12% and 13% for comparable periods of the prior
year. Product revenue growth in the three and six month periods ended April 4,
1998, was principally driven by customer demand for the Company's Windows and
client/server products. Service revenues for the second quarter of fiscal 1998
amounted to $16.4 million as compared with $13.2 million for the second quarter
of the prior year. Service revenues for the first six months of fiscal 1998 were
$31.2 million as compared with $24.7 million for the first six months of the
prior year. Service revenue growth of 23% and 26% in the three and six month
periods ended April 4, 1998, respectively, decreased from 35% and 31% for
comparable periods of the prior year. The growth in service revenues reflects an
increase in the level of professional services accompanying new sales as well as
an increase in maintenance revenue from expansion of the installed base. Revenue
growth rates experienced in previous periods benefited from service revenue
enhancement programs implemented by the Company through fiscal 1997. Management
anticipates the growth in service revenue will continue to exceed the growth in
product revenue over the remainder of this fiscal year. However, as the customer
installed base continues to grow, management anticipates that service revenue
growth rates will gradually become more consistent with product revenue growth
rates.
Gross Profit. Gross profit as a percentage of revenues were 61% in the
three and six month periods ended April 4, 1998, as compared with 60% in the
comparable periods of the prior year. The improvement in gross profit was
evidenced in both product and service gross profit.
Product gross profit as a percentage of product revenues of 74% and 75%
in the three and six month periods ended April 4, 1998, respectively, increased
from 73% and 74% for comparable periods of the prior year. The improvement in
product gross profit in both periods is primarily attributable to an increased
proportion of product revenues generated by software, which typically generates
higher gross profit than other product. Service gross profit as a percentage of
service revenues of 36% and 34% in the three and six month periods ended April
4, 1998, respectively, increased from 34% and 32% for comparable periods of the
prior year. The improvement in service gross profit in both periods is primarily
attributable to the growth in service revenues without a proportionate increase
in service expenses. This has been accomplished by more fully leveraging service
resources and improving the efficiency of the system implementation process.
Management expects service gross profit as a percentage of service revenues to
decrease during the third quarter as the Company invests in service organization
personnel in response to increasing customer demand for its services.
Expenses. Total operating expenses as a percentage of revenues were 51%
and 52% in the three and six month periods ended April 4, 1998, respectively, as
compared to 52% in the comparable periods of the prior year. Sales and marketing
expenses as a percentage of revenues were 34% and 35% in the three and six month
periods ended April 4, 1998, respectively, as compared to 35% in the comparable
periods of the prior year. The slight decrease in sales and marketing expenses
as a percentage of revenues is primarily attributable to the delay of various
discretionary spending programs. Management expects to incur this spending over
the remainder of the fiscal year.
Engineering expenses as a percentage of revenues were 10% in the three
and six month periods ended April 4, 1998, respectively, as compared to 11% in
the comparable periods of the prior year. Engineering expenses of $4.6 million
and $4.2 million in the second quarter of fiscal 1998 and 1997, respectively,
are net of capitalized software development costs of $1.6 million and $1.4
million, respectively. Engineering expenses of $8.9 million and $8.1 million in
the first six months of fiscal 1998 and 1997, respectively, are net of
capitalized software development costs of $3.0 million and $2.6 million,
respectively. The growth in engineering, research and development expenses
results primarily from efforts to standardize products and the development of
new products in the Windows and client/server environments.
General and administrative expenses as a percentage of revenues amounted
to 7% for all periods presented. Other (income) expense, net amounted to less
than 1% of revenues for all periods presented. Other (income) expense, net is
composed primarily of amortization of intangible assets related to acquisitions
made by the Company which is offset by interest income earned on its
investments.
Income Taxes. The provision for income taxes as a percentage of pretax
income was 38% for all periods presented. The Company's effective income tax
rate may fluctuate between periods as a result of various factors, none of which
is material, either individually or in aggregate, to the consolidated results of
operations.
Liquidity and Capital Resources
Working capital as of April 4, 1998, amounted to $45.8 million as
compared with $41.2 million at September 30, 1997. As of those dates, cash and
equivalents and marketable securities amounted to $41.0 million and $36.2
million, respectively. Cash generated from operations increased to $13.7 million
in the first six months of fiscal 1998 from $6.9 million in the first six months
of the prior year, principally due to increased earnings and unearned service
revenues as well as cash provided from the Company's lease portfolio. Cash
provided from those sources was partially offset by the reduction in income tax
obligations. During the second quarter of fiscal 1998 the Company invested
approximately $4.4 million to acquire labor productivity technology and
distribution rights in a dealer territory. The Company's investment in equipment
in the first six months of the fiscal year decreased from its investment in the
first six months of the prior year due to the timing of capital projects. The
Company anticipates that investment in equipment in fiscal 1998 will be
comparable to fiscal 1997.
Cash generated from operations was more than sufficient to fund
investments in equipment and capitalized software development costs. The Company
expects to fund its investments in equipment and software development costs over
the remainder of its fiscal year with available cash and operating cash flow
generated in fiscal 1998.
Certain Factors That May Affect Future Operating Results
Except for historical matters, the matters discussed in this Quarterly
Report on Form 10-Q are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 (the "Act"). The Company
desires to take advantage of the safe harbor provisions of the Act and is
including this statement for the express purpose of availing itself of the
protection of the safe harbor with respect to all forward looking statements
that involve risks and uncertainties.
The Company's actual operating results may differ from those indicated
by forward looking statements made in this Quarterly Report on Form 10-Q and
presented elsewhere by management from time to time because of a number of
factors including the potential fluctuations in quarterly results, timing and
market acceptance of new product introductions by the Company and its
competitors, competitive pricing pressures, rapid technological change, new
competitors entering the market, the dependence on alternate distribution
channels, potential effects associated with the century change, the ability to
attract and retain sufficient technical personnel, and the dependence on the
Company's time and attendance product line and on key vendors, as further
described below and in the Company's Annual Report on Form 10-K for the fiscal
year ended September 30, 1997, which factors are specifically incorporated by
reference herein.
Potential Fluctuations in Quarterly Results. The Company's quarterly
operating results may fluctuate as a result of a variety of factors, including
the timing of the introduction of new products and product enhancements by the
Company and its competitors, market acceptance of new products, mix of products
sold, the purchasing patterns of its customers, competitive pricing pressure and
general economic conditions. The Company historically has realized a relatively
larger percentage of its annual revenues and profits in the fourth quarter and a
relatively smaller percentage in the first quarter of each fiscal year, although
there can be no assurance that this pattern will continue. In addition, while
the Company has contracts to supply systems to certain customers over an
extended period of time, substantially all of the Company's product revenue and
profits in each quarter result from orders received in that quarter. If
near-term demand for the Company's products weakens or if significant
anticipated sales in any quarter do not close when expected, the Company's
revenues for that quarter will be adversely affected. The Company believes that
its operating results for any one period are not necessarily indicative of
results for any future period.
Product Development and Technological Change. The markets for time and
attendance, labor management, and data collection systems are characterized by
continual change and improvement in computer software and hardware technology.
The Company's future success will depend largely on its ability to enhance its
existing product lines and to develop new products and interfaces to third party
products on a timely basis for the increasingly sophisticated needs of its
customers. Although the Company is continually seeking to further enhance its
product offerings and to develop new products and interfaces, there can be no
assurance that these efforts will succeed, or that, if successful, such product
enhancements or new products will achieve widespread market acceptance, or that
the Company's competitors will not develop and market products which are
superior to the Company's products or achieve greater market acceptance.
Although management believes the Company has substantially completed the product
transition from DOS and UNIX platforms to the Windows and client/server
environments, the Company's revenue growth and results of operations in fiscal
1998 will depend in part on the continuing growth of sales of its Windows and
client/server products.
Competition. The time and attendance, labor management, and data
collection industries are highly competitive. Competition is increasing as
competitors in related industries, such as human resources and payroll, enter
the market. Advances in software development tools have accelerated the software
development process and, therefore, can allow competitors to penetrate certain
of the Company's markets. Maintaining the Company's technological and other
advantages over competitors will require continued investment by the Company in
research and development and marketing and sales programs. There can be no
assurance that the Company will have sufficient resources to make such
investments or be able to achieve the technological advances necessary to
maintain its competitive advantages. Increased competition could adversely
affect the Company's operating results through price reductions and/or loss of
market share.
Dependence on Alternate Distribution Channels. The Company markets and
sells its products through its direct sales organization, independent dealers
and OEMs. For the fiscal year ended September 30, 1997, approximately 22% of the
Company's revenue was generated through sales to dealers and OEMs. Reduction in
the sales efforts of the Company's major dealers and/or OEMs, or termination or
changes in their relationships with the Company, could have a material adverse
effect on the results of the Company's operations.
Year 2000. Many currently installed computer systems and software
products will not function properly in the year 2000 and beyond. As a result,
computer systems and/or software used by many companies may need to be upgraded
to comply with such "year 2000" requirements. Significant uncertainty exists in
the software industry concerning the potential effects associated with the
century change. Although the Company currently offers software products that are
designed to work properly in the year 2000 and beyond, there can be no assurance
that the Company's software products contain all necessary date code changes.
The Company has warranted, and may in the future warrant, to certain customers
that its products will work in the year 2000 and beyond. In addition, the
Company has initiated a program to assess the products offered by it, its
internal operating systems, and third party products incorporated into or used
to develop its products and to develop a timetable for correcting any issues, if
necessary. The Company is currently developing a complete cost estimate but does
not anticipate that costs associated with this program will be material.
However, if the Company's program is not completed on a timely basis, if there
is a failure of the products or systems of other companies on which the Company
relies for use internally or in its products, if customer demand is reduced due
to customers' concerns about year 2000 issues, or if the Company's own products
fail in the year 2000 and beyond, there could be a material adverse effect on
the Company's business, financial condition or results of operations.
Part II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
(a) The 1998 Annual Meeting of Stockholders of Kronos Incorporated was
held on January 30, 1998.
(b) At the Annual Meeting, Messrs. Mark S. Ain, Richard J. Dumler and
Samuel Rubinovitz were elected as Class III Directors for three-year
terms expiring in 2001. In addition, the Directors whose terms of
office continue after the meeting are two Class I Directors: Messrs.
D. Bradley McWilliams and Lawrence Portner and one Class II Director:
Messr. W. Patrick Decker. The tabulation of votes for each Director
nominee was as follows:
FOR WITHHELD
--------- --------
Mark S. Ain 7,433,579 165,286
Richard J. Dumler 7,433,579 165,286
Samuel Rubinovitz 7,433,556 165,309
(c) The other items voted upon at the meeting were as follows:
BROKER
FOR AGAINST ABSTAIN NON-VOTES
--------- ------- ------- ---------
(i) Approval of an amendment 7,017,025 459,955 100,464 21,421
to the Company's Restated
Articles of Organization increasing
the number of authorized shares
of Common Stock from
12,000,000 to 20,000,000 shares
(ii) Approval of an amendment to 4,648,625 1,817,736 212,071 920,433
the Company's 1992 Equity
Incentive Plan (i) increasing from
1,237,500 to 2,237,500 (subject to
Adjustments for certain changes in
the Company's capitalization) the
Number of shares available for
Issuance under the Plan; (ii)
Increasing from 75,000 to 100,000
(subject to adjustments for certain
Changes in the Company's
Capitalization) the number of shares
for which Awards under the Plan
may be granted in any calendar
year to any one employee; and (iii)
to continue the Plan.
(iii) Ratification of the selection of 7,585,870 6,290 6,705 -----
Ernst & Young LLP
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
3.1 Restated Articles of Organization of the Registrant, as amended
10.1 1992 Equity Incentive Plan, as amended and restated
27.1 Financial Data Schedule
(b) Reports of Form 8-K
There were no reports on Form 8-K filed during the fiscal quarter
ended April 4, 1998.
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.
KRONOS INCORPORATED
By /s/ Paul A. Lacy
Paul A. Lacy
Vice President of Finance
and Administration
(Duly Authorized Officer and
Principal Financial Officer)
May 15, 1998
KRONOS INCORPORATED
EXHIBIT INDEX
Exhibit
Number Description
3.1 Restated Articles of Organization of the Registrant, as amended
10.1 1992 Equity Incentive Plan, as amended and restated
27.1 Financial Data Schedule