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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________
FORM 10-Q
__________________
Quarterly report pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
FOR THE QUARTERLY PERIOD ENDED COMMISSION FILE NUMBER:
MARCH 31, 1998 0-27242
_________________________
PHYSIO-CONTROL INTERNATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
WASHINGTON 91-1673799
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
11811 WILLOWS ROAD N.E.
REDMOND, WASHINGTON 98052
(Address of principal executive offices)
(425) 867-4000
(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
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As of April 20, 1998, there were 17,634,508 shares of the Registrant's
Common Stock outstanding.
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1
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FORM 10-Q
MARCH 31, 1998
<TABLE>
<CAPTION>
INDEX PAGE
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<S> <C> <C>
PART I. FINANCIAL INFORMATION
ITEM 1. Consolidated Financial Statements
- Consolidated Balance Sheets as of March 31, 1998
and December 31, 1997 . . . . . . . . . . . . . . . . . . . . . 3
- Consolidated Statements of Earnings for the three months
ended March 31, 1998 and 1997 . . . . . . . . . . . . . . . . . 4
- Consolidated Statement of Changes in Stockholders' Equity
for the three months ended March 31, 1998 . . . . . . . . . . . 5
- Consolidated Statements of Cash Flows for the three months
ended March 31, 1998 and 1997 . . . . . . . . . . . . . . . . . 6
- Notes to Consolidated Financial Statements . . . . . . . . . . 7
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations . . . . . . . . . . . . . . . . . . . . . 9
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . 12
ITEM 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . 12
</TABLE>
2
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PART I. FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS
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CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
MARCH 31, 1998 DECEMBER 31, 1997
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(UNAUDITED)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $3,457 $4,340
Accounts receivable, net 42,717 39,161
Inventories, net 40,775 38,711
Prepaid expense 1,385 1,237
Prepaid income tax 358
Deferred income tax 2,463 2,463
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Total current assets 91,155 85,912
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NONCURRENT ASSETS
Other assets 1,233 1,281
Deferred income tax 2,114 2,114
Property, plant and equipment, net 18,158 17,352
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TOTAL ASSETS $112,660 $106,659
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $15,649 $14,630
Accrued liabilities 16,546 17,103
Current portion of long-term debt 1,000 1,000
Income tax payable 1,140
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Total current liabilities 33,195 33,873
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NONCURRENT LIABILITIES
Long-term debt 16,531 15,531
Unfunded pension obligation 901 1,051
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Total noncurrent liabilities 17,432 16,582
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Commitments and contingencies (Note 4)
STOCKHOLDERS' EQUITY
Preferred stock, par value $0.01 per share,
5,000,000 shares authorized, no shares
issued or outstanding
Common stock, voting, par value $0.01 per share,
40,000,000 shares authorized; 17,628,512 and
17,300,840 shares issued and outstanding, 176 173
respectively
Additional paid-in capital 31,587 28,627
Retained earnings 30,246 27,430
Accumulated other comprehensive income 24 (26)
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Total stockholders' equity 62,033 56,204
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $112,660 $106,659
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</TABLE>
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THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
3
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CONSOLIDATED STATEMENTS OF EARNINGS
(DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
................................................................................
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 1998 MARCH 31, 1997
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<S> <C> <C>
Net sales $43,968 $40,727
Cost of sales 21,183 19,846
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Gross margin 22,785 20,881
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Research and development 4,951 5,237
Sales and marketing 10,149 8,854
General and administrative 3,133 2,014
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Operating expense 18,233 16,105
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Interest expense (414) (459)
Other income (expense), net 194 (236)
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Other expense (220) (695)
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Income before income taxes 4,332 4,081
Income tax expense (1,516) (1,428)
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NET EARNINGS $2,816 $2,653
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Basic earnings per common share $0.16 $0.16
Weighted average common shares
outstanding 17,432,445 17,084,124
Diluted earnings per common and
common equivalent share $0.16 $0.15
Weighted average number of common and
common equivalent shares outstanding 17,917,751 17,747,189
</TABLE>
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THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
4
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CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)
(UNAUDITED)
................................................................................
<TABLE>
<CAPTION>
ACCUMULATED
COMMON STOCK ADDITIONAL OTHER
(VOTING) PAID-IN RETAINED COMPREHENSIVE
SHARES DOLLARS CAPITAL EARNINGS INCOME TOTAL
-------- ------- ------- -------- ------ --------
<S> <C> <C> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1997 17,300,840 $173 $28,627 $27,430 $(26) $56,204
Issuance of common shares 61,766 1 818 819
Stock issued upon exercise
of options 265,906 2 701 703
Income tax benefit from
exercise of stock options 1,441 1,441
Comprehensive income:
Net earnings 2,816
Other comprehensive income
Foreign currency translation
adjustments
50
Comprehensive income 2,866
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BALANCE AT MARCH 31, 1998 17,628,512 $176 $31,587 $30,246 $24 $62,033
---------- ---------- --------- --------- -------- ----------
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</TABLE>
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THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
5
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CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS)
(UNAUDITED)
................................................................................
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 1998 MARCH 31, 1997
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $2,816 $2,653
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH
PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Depreciation and amortization 853 421
(Increase) decrease in receivables (3,556) 682
(Increase) decrease in inventories (2,064) (3,032)
Decrease in prepaid income taxes 856
Increase in prepaid expense and other assets (505) (443)
Increase (decrease) in accounts payable 1,019 2,106
Decrease in taxes payable (1,140)
Decrease in accrued and other liabilities (707) (3,056)
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Net cash provided by (used in) operating activities (3,284) 187
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CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment (1,612) (1,732)
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Net cash used in investing activities (1,612) (1,732)
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CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings under revolving debt 15,106 14,862
Repayments on revolving debt (14,106) (13,757)
Net proceeds from issuance of common stock 1,522 1,324
Income tax benefit from issuance of common stock 1,441 428
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Net cash provided by financing activities 3,963 2,857
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Effect of foreign currency translation 50 (324)
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Net increase (decrease) in cash and cash equivalents (883) 988
Cash and cash equivalents at beginning of period 4,340 3,336
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CASH AND CASH EQUIVALENTS AT END OF PERIOD $3,457 $4,324
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</TABLE>
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THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
6
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
................................................................................
NOTE 1. GENERAL
The consolidated financial statements as of March 31, 1998 and for the three
month period then ended are unaudited and reflect all adjustments (consisting
only of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of the financial position and
operating results for the interim period. The consolidated financial
statements should be read in conjunction with the Company's Annual Report on
Form 10-K for the year ended December 31, 1997. The results of operations
for the three months ended March 31, 1998 are not necessarily indicative of
the results for the entire fiscal year ending December 31, 1998.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
EARNINGS PER SHARE
Basic earnings per share is calculated as income available to common
stockholders divided by the weighted average number of common shares
outstanding during the periods. Diluted earnings per share is based on the
weighted average number of shares of common stock and common stock
equivalents outstanding during the periods, including options computed using
the treasury stock method. All earnings per common share amounts from prior
periods have been restated to conform with current period presentation.
The difference between the weighted average number of common shares
outstanding used to calculate basic earnings per share and the weighted
average number of common and the weighted average number of common and common
equivalent shares outstanding used to calculate diluted earnings per share is
the incremental shares attributed to outstanding options to purchase common
stock computed using the treasury stock method.
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 1998 MARCH 31, 1997
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<S> <C> <C>
Weighted average number of common
shares outstanding 17,432,445 17,084,124
Effect of dilutive options 485,306 663,065
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Weighted average number of common and
common equivalent shares outstanding 17,917,751 17,747,189
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</TABLE>
RECENT ACCOUNTING PRONOUNCEMENTS
The Financial Accounting Standards Board ("FASB") issued SFAS No. 130,
"Reporting Comprehensive Income, " in June 1997. This statement establishes
new standards for reporting and displaying comprehensive income in the
financial statements. In addition to net income, comprehensive income
includes charges or credits to equity that are not the result of transactions
with shareholders. This statement is effective for fiscal years beginning
after December 15, 1997. The Company has adopted this standard as of March
31, 1998.
7
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NOTE 3. INVENTORIES
Inventories consist of the following:
<TABLE>
<CAPTION>
MARCH 31, 1998 DECEMBER 31, 1997
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<S> <C> <C>
Finished products $22,965 $22,665
Purchased parts and assemblies in process 10,406 7,544
Service parts 9,938 10,654
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43,309 40,863
Less inventory allowances (2,534) (2,152)
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TOTAL INVENTORIES $40,775 $38,711
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</TABLE>
NOTE 4. COMMITMENTS AND CONTINGENCIES
LITIGATION
The Company is party to certain legal actions arising in the ordinary course
of its business. The Company's estimates of these exposures are based
primarily on historical claims experience. The Company expects settlements
related to these claims to be paid over the next several years. The majority
of the costs associated with defending and disposing of these suits are
covered by insurance. In the opinion of management, the amount of ultimate
liability with respect to these actions will not materially affect the
financial position of the Company.
As disclosed in the Company's Annual Report on Form 10(K) for the year ended
December 31, 1997, the Company and Heartstream, Inc. ("Heartstream") entered
into a settlement agreement during October 1997. The settlement agreement
dismissed with prejudice all previous lawsuits and claims between the Company
and Heartstream. During May 1998, Heartstream initiated litigation against
the Company that contends the Company violated the terms of the October 1997
settlement agreement. The Company had previously sent correspondence to
Heartstream regarding violations of the Settlement Agreement by Heartstream,
and has received no other response from Heartstream. The Company strongly
believes that it has complied with the agreement and intends to vigorously
defend itself against such claims.
8
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
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This Management Discussion and Analysis of Financial Condition and Results of
Operation may contain forward-looking statements that involve risks and
uncertainties. The Company's actual results may differ significantly from
the results discussed in the forward-looking statements due to many factors,
including but not limited to, the effect of general economic conditions,
including without limitation those in Asia/Pacific, the impact of competitive
products and pricing, customer demand, product development, commercialization
and technological difficulties, U.S. and foreign regulatory requirements, the
effects of accounting policies and financing requirements, and other such
risks and factors.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
The Company reported worldwide sales of $44.0 million for the first quarter
of 1998, reflecting an increase of $3.2 million or 8% from the comparable
1997 quarter. The increase was driven by higher demand for the Company's
recently introduced LIFEPAK-Registered Trademark- 12 products as described
below. For the three months ended March 31, 1998, domestic sales aggregated
$31.8 million, up 7% compared to $29.6 million during the prior year period.
International sales of $12.2 million were up 10% from the first three months
of 1997 as sales volume growth resulting from LIFEPAK 12 shipments was only
partly offset by a 6% decline from unfavorable European currency movements.
International sales increases are attributed to a strong performance in
France, Germany and Sweden while revenues in Latin America more than doubled.
Worldwide equipment sales of $26.5 million remained consistent with the
prior year quarter. Worldwide service and supplies revenue of $17.4 million
increased 19% from the comparable prior year period. Supplies (disposable
and accessories) revenue of $9.8 million increased 27% from 1997 due to
higher sales of distributed goods (training materials and portable monitors
in Europe) and strong demand for the Company's disposable products, primarily
electrodes. Service revenue increased 11% from the comparable 1997 quarter.
Revenues in the domestic hospital and out-of-hospital market segments both
experienced growth in the current 1998 quarter, with hospital sales up 2% and
out-of-hospital sales up 3% when compared to first quarter 1997 revenues.
The Company obtained U.S. Food and Drug Administration approval under Section
510(k) in January 1998 for LIFEPAK 12 defibrillator/monitor products.
Shipments of the new LIFEPAK 12 products commenced during March 1998 and have
been well received within the market due to its size, therapeutic and
diagnostic functions and flexibility of use by both out-of-hospital and
hospital users.
Gross margin of $22.8 million (51.8%) increased $1.9 million during the
current quarter from $20.9 million (51.3%) reported in 1997. The increase in
gross margin was driven by a favorable product mix, including LIFEPAK 12
product sales, partly offset by the impact of aggressive pricing in
international markets to help counteract the effect of the strong U.S. dollar.
Research and development ("R&D") expenditures totaled $5.0 million during the
current quarter representing a decrease of $0.3 million from the comparable
1997 quarter. As a percentage of sales, R&D expenses decreased from 13% in
the 1997 quarter to 11% during the 1998 quarter. R&D expenditures decreased
due to lower LIFEPAK 12 product development expenditures. The Company has
and will continue to invest in R&D activity, to meet its commitments to
additional product development projects and to conduct ongoing research for
future products and technology.
Sales and marketing expenditures of $10.2 million increased 15% during 1998
from the comparable 1997 quarter. The increase resulted from enhanced sales
and marketing efforts associated with the introduction and launch of the
Company's new LIFEPAK 12 products. In addition, the Company has expanded its
direct sales force by adding more sales representatives in the field,
completed a territory realignment, as well as modified its commission program
so that commission rates are more even
9
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throughout the year, which impacted total commission expense during the first
quarter of 1998. The Company continues to commit resources to develop
innovative marketing strategies and gain marketshare.
General and administrative ("G&A") expenditures of $3.1 million increased
$1.1 million from the comparable 1997 quarter and as a percentage of sales,
G&A expenses increased to 7% during the current quarter compared to 5% in the
comparable 1997 quarter. The increase is attributable to higher depreciation
expense related to the Company's new computer system completed at the end of
the comparable 1997 quarter and 1998 bonus accruals. In addition,
international G&A expenses also increased $0.3 million due to expansion of
the European communication network and tax consulting work.
Other expense includes interest expense on bank borrowings and other income.
The comparable 1997 quarter includes unfavorable exchange losses and loss
upon disposition of assets. The current quarter does not reflect any
material amounts related to these transaction types but does include
miscellaneous, non-operating income.
As a result of the above factors, net earnings for the first quarter of 1998
were $2.8 million or $0.16 per share (basic and diluted), an increase of $0.2
million or 6% from the comparable 1997 quarter.
LIQUIDITY AND CAPITAL RESOURCES
For the three months ended March 31, 1998, the Company used $3.3 million in
cash to finance operations compared with $0.2 million of cash provided by
operations in the comparable 1997 quarter. During the current quarter, cash
generated from net income was primarily offset by an increase in inventories
and trade accounts receivable and a reduction in income taxes payable.
Cash used for investing activities during the three months ended March 31,
1998 totaled $1.6 million. Capital expenditures during the quarter included
manufacturing and engineering equipment related to LIFEPAK 12 products as
well as additional computer equipment. The Company does not have any capital
commitments outside the ordinary course of business. The Company's principal
working capital requirements are financing accounts receivable and
inventories. At March 31, 1998, the Company had net working capital of $57.8
million, including accounts receivable of $42.7 million, inventories of $40.8
million, accounts payable of $15.6 million, and other accruals totaling
$16.5 million.
The Company obtains its financing for operations through the use of a $30.0
million revolving bank credit facility (the "Agreement") of which up to $5.0
million may be used for issuance of standby letters of credit. The Agreement
matures during May 2000. Interest on advances under the Agreement bear
interest at the borrower's option, at either (i) LIBOR plus 0.5% or (ii) the
reference rate (the higher of the lender's prime rate or federal funds rate
plus 1%) or (iii) quoted rate (rate quoted by lender and accepted by borrower
plus 0.5%). Such rates are subject to increase in the event that the Company
does not meet the fixed charge coverage ratio as defined in the Agreement.
At March 31, 1998, the interest rate on drawings under the Agreement was 6.7%
and the outstanding balance on the Agreement was $15.0 million. At March 31,
1998, $14.9 million was available for future borrowings, after consideration
of outstanding letters of credit of $0.1 million. The Agreement is secured
by a first priority security interest in and lien on all of the accounts
receivable and inventories of the Company (located in the United States) and
is guaranteed by all material subsidiaries.
The Company has subordinated notes payable to Lilly in connection with the
acquisition of certain foreign assets. Notes with a principal balance of
$1.5 million mature on January 31, 2001 and bear interest at LIBOR plus
3.25%. An additional note payable with a principal balance of $1.0 million
matures November 15, 1998 and bears interest at LIBOR plus 3.0%.
10
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The Company believes that, based upon current levels of operations and
anticipated growth, funds generated from operations, together with other
available sources of liquidity, including borrowings under the credit
facility, will be sufficient over the next twelve months for the Company to
make anticipated capital expenditures and fund working capital requirements.
Approximately 28% of the Company's sales in the first quarter of 1998 were to
international customers and the Company expects that sales to international
customers will continue to represent a material portion of its sales.
Certain of the Company's international receivables are denominated in foreign
currency and exchange rate fluctuations impact the carrying value of these
receivables. The Company has elected to hedge certain assets denominated in
foreign currency with the purchase of forward contracts. Historically,
fluctuations in foreign currency exchange rates have not had a material
effect on the Company's results of operations and, together with certain
hedging activities, the Company does not expect such fluctuations to be
material in the foreseeable future.
YEAR 2000
The Company has begun to review the impact of the Year 2000 upon its business
environment and business products. The Company has recently completed a
successful transition to a new, fully integrated, computer system with a
heavy emphasis in the manufacturing process. The transition also included
migration to a PC based, network environment. The new manufacturing and
financial modules within the system are designed to deal with the Year 2000.
The Company's European computer system, currently used for administrative
purposes, is scheduled for a modest software upgrade that is Year 2000
compliant. This upgrade is scheduled for the beginning of 1999. Based on
its initial assessment, the Company does not believe the software in the
Company's products currently in the marketplace will be materially affected
by the Year 2000. The Company has not yet determined the full effect this
event may have on its customers, suppliers, and other business partners.
RECENT ACCOUNTING PRONOUNCEMENTS
In June, 1997, FASB issued SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information." SFAS No. 131 establishes new standards
for reporting information about operating segments in interim and annual
financial statements. This statement is effective for fiscal years beginning
after December 15, 1997. The Company is currently evaluating the impact, if
any, this statement will have on disclosures in the consolidated financial
statements.
EFFECT OF INFLATION
Inflation generally affects the Company by increasing the interest expense of
floating rate indebtedness and by increasing the cost of labor, equipment and
raw materials. The Company does not believe that inflation has had any
material effect on the Company's business over the past several years.
11
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is party to certain legal actions arising in the ordinary course
of its business. The Company's estimates of these exposures are based
primarily on historical claims experience. The Company expects settlements
related to these claims to be paid over the next several years. The majority
of the costs associated with defending and disposing of these suits are
covered by insurance. In the opinion of management, the amount of ultimate
liability with respect to these actions will not materially affect the
financial position of the Company.
As disclosed in the Company's Annual Report on Form 10(K) for the year ended
December 31, 1997, the Company and Heartstream, Inc. ("Heartstream") entered
into a settlement agreement during October 1997. The settlement agreement
dismissed with prejudice all previous lawsuits and claims between the Company
and Heartstream. During May 1998, Heartstream initiated litigation against
the Company that contends the Company violated the terms of the October 1997
settlement agreement. The Company had previously sent correspondence to
Heartstream regarding violations of the Settlement Agreement by Heartstream,
and has received no other response from Heartstream. The Company strongly
believes that it has complied with the agreement and intends to vigorously
defend itself against such claims.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
<TABLE>
<CAPTION>
Exhibit No. Description of Exhibit
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<S> <C>
27.1 Financial Data Schedule
</TABLE>
No reports on Form 8-K were filed during the quarter ended March 31, 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 to sign on behalf of the registrant and
as the principal financial officer thereof.
Dated: May 1, 1998
PHYSIO-CONTROL INTERNATIONAL CORPORATION
By /s/ Joseph J. Caffarelli
--------------------------------
Joseph J. Caffarelli
Executive Vice President and
Chief Financial Officer
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 3,457
<SECURITIES> 0
<RECEIVABLES> 42,717
<ALLOWANCES> 0
<INVENTORY> 40,775
<CURRENT-ASSETS> 91,155
<PP&E> 23,253
<DEPRECIATION> 5,095
<TOTAL-ASSETS> 112,660
<CURRENT-LIABILITIES> 33,195
<BONDS> 0
0
0
<COMMON> 176
<OTHER-SE> 61,857
<TOTAL-LIABILITY-AND-EQUITY> 112,660
<SALES> 43,968
<TOTAL-REVENUES> 43,968
<CGS> 21,183
<TOTAL-COSTS> 21,183
<OTHER-EXPENSES> 18,233
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 414
<INCOME-PRETAX> 4,332
<INCOME-TAX> 1,516
<INCOME-CONTINUING> 2,816
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,816
<EPS-PRIMARY> 0.16
<EPS-DILUTED> 0.16
</TABLE>
