UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
/X/ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
For the Quarterly Period Ended: June 30, 1996 or
/ / Transition Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934 For the Period from __________ to __________
Commission File Number: 0-6333
HYDRON TECHNOLOGIES, INC.
(Exact name of Registrant as specified in its charter)
New York 13-1574215
(State or other jurisdiction of (I.R.S. Employer Identification Number)
incorporation or organization)
1001 Yamato Road, Suite 403
Boca Raton, Florida 33487 (561) 994-6191
(Address of Principal Executive Offices) (Registrant's telephone number)
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 report), and (2) has been subject to such filing
requirements for the past 90 days. X Yes _ No.
Number of shares of common stock outstanding as of August 13, 1996: 22,682,885
Page 1 of 12
<PAGE>
HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES
Index
Part I. Financial Information
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets -- June 30, 1996 and December 31, 1995
Condensed consolidated statements of operations -- Three months ended June
30, 1996 and 1995; Six months ended June 30, 1996 and 1995
Condensed consolidated statements of cash flows-- Six months ended June 30,
1996 and 1995
Notes to condensed consolidated financial statements -- June 30, 1996
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures
Page 2 of 12
<PAGE>
HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
June 30, 1996 Dec. 31, 1995
ASSETS (Unaudited) (Note)
------------- --------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 3,174,662 $ 4,346,587
Investment in Treasury Bills 1,949,212 -
Trade accounts receivable 1,390,050 1,002,969
Inventories 3,111,037 3,998,304
Prepaid expenses and other
current assets 285,546 130,907
------------ ------------
Total current assets 9,910,507 9,478,767
Property and equipment, net 556,376 620,317
Investment in joint venture 277,714 221,366
Deferred product costs, less
accumulated amortization of
$3,851,488 and $3,697,400 at
1996 and 1995, respectively 2,116,308 2,264,061
Deposits 404,894 407,600
------------ ------------
$ 13,265,799 $ 12,992,111
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 346,706 $ 235,645
Accrued liabilities 331,947 194,918
------------ ------------
Total current liabilities 678,653 430,563
Stockholders' equity:
Common stock -- $.01 par value;
30,000,000 shares authorized; 22,682,885 and
22,639,816 shares issued and outstanding
at 1996 and 1995, respectively 226,829 226,398
Additional paid-in capital 17,055,930 18,113,632
Accumulated deficit (4,695,613) (5,778,482)
------------ ------------
Total stockholders' equity 12,587,146 12,561,548
------------ ------------
$ 13,265,799 $ 12,992,111
============ ============
</TABLE>
Note: The balance sheet at December 31, 1995 has been derived from the audited
financial statements at that date but does not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements.
See notes to condensed consolidated financial statements.
Page 3 of 12
<PAGE>
HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements Of Operations
(Unaudited)
Three Months and Six Months Ended June 30, 1996 and 1995
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $ 2,001,660 $ 2,935,879 $ 5,033,641 $ 4,053,604
Cost of sales 788,265 1,100,973 2,007,866 1,448,051
------------ ------------ ------------ ------------
Gross profit 1,213,395 1,834,906 3,025,775 2,605,553
------------ ------------ ------------ ------------
Expenses:
Royalty expense 96,833 127,311 238,048 183,175
Research and
development 122,818 50,342 254,061 120,553
Selling, general
& administrative 622,033 499,409 1,255,196 904,910
Depreciation &
amortization 105,753 86,730 214,185 170,767
------------ ------------ ------------ ------------
947,437 763,792 1,961,490 1,379,405
------------ ------------ ------------ ------------
Operating income 265,958 1,071,114 1,064,285 1,226,148
Interest income 73,415 97,356 136,903 178,517
Infomercial pick-up (66,576) - (96,319) -
------------ ------------ ------------- ------------
Income before income
taxes 272,797 1,168,470 1,104,869 1,404,665
Income tax expense 5,600 - 22,000 -
------------ ------------ ------------- ------------
Net income $ 267,197 $ 1,168,470 $ 1,082,869 $ 1,404,665
============ ============ ============= ============
Net income per common share:
Primary .01 .05 .05 .06
Fully Diluted .01 .05 .05 .06
Weighted average number of
common shares outstanding:
Primary 22,896,753 23,229,925 22,804,380 23,217,816
Fully Diluted 22,896,753 23,274,616 22,973,845 23,243,253
</TABLE>
See notes to condensed consolidated financial statements.
Page 4 of 12
<PAGE>
HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended June 30, 1996 and 1995
1996 1995
---- ----
Operating activities:
Net cash provided by
operating activities $ 2,065,515 $ 381,188
----------- -----------
Investing activities:
Purchase of U.S. Treasury Bills (1,949,212) -
Sale of U.S. Treasury Bills - -
Capital expenditures, net 3,844 (90,216)
Investment in joint venture (152,667) (200,000)
Increase in deferred product costs (6,335) (545)
----------- -----------
Net cash used in
investing activities (2,104,370) (290,761)
----------- -----------
Financing activities:
Proceeds from issuance
of common stock, net - 21,375
Cash dividends paid (1,133,070) (1,131,381)
----------- -----------
Net cash used in
financing activities (1,133,070) (1,110,006)
----------- -----------
Net decrease in cash
and cash equivalents (1,171,925) (1,019,579)
Cash and cash equivalents at
beginning of period 4,346,587 5,723,664
----------- -----------
Cash and cash equivalents at
end of period $ 3,174,662 $ 4,704,085
=========== ===========
See notes to condensed consolidated financial statements.
Page 5 of 12
<PAGE>
HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
June 30, 1996
Note A -- Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three- and six-month periods ended June
30, 1996 are not necessarily indicative of the results that may be expected for
the year ending December 31, 1996. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Registrant and Subsidiaries' annual report on Form 10-K for the year ended
December 31, 1995.
Note B -- Inventories
Inventories consist of the following:
June 30, 1996 December 31, 1995
-----------------------------------
Finished goods $ 1,871,312 $ 3,044,890
Work in progress 143,511 162,794
Raw materials and components 1,096,214 790,620
-----------------------------------
$ 3,111,037 $ 3,998,304
===================================
Note C -- Investment in Joint Venture
On January 17, 1995, Hydron Technologies, Inc. ("HyTech") entered into an
agreement with two other companies to form a joint venture known as Hydromercial
Partners (the Joint Venture). Each company has a one-third interest in the
profits and losses of the Joint Venture, which has an initial term of two (2)
years, subject to renewal on an annual basis thereafter upon unanimous consent
of all of the Joint Venture participants. The purpose of the Joint Venture is to
provide and sell HyTech's polymer-based skin care line by means of a thirty (30)
minute commercial (Infomercial) which the Joint Venture has produced. (See Note
E)
Page 6 of 12
<PAGE>
HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)
June 30, 1996
Note D - Income Taxes
The tax provision for the three (3) month and the six (6) month periods ended
June 30, 1996 represents the Alternative Minimum Tax due after utilization of
the available net operating loss carryforwards. There are no tax provisions for
the three (3) month and six (6) month periods ended June 30, 1995 due to the
utilization of net operating loss carryforwards.
Note E - Subsequent Events
On July 19, 1996, HyTech and QVC amended their existing marketing and
distribution license to provide HyTech with certain retail marketing rights and
to significantly increase the minimum product purchase requirements QVC must
meet, on a bi-annual basis, to maintain its exclusive rights to market Hydron
consumer products through direct response television in North, South and Central
America. The amended license agreement will allow QVC to promote Hydron products
in a manner consistent with which it promotes its proprietary brands and also
creates a new, equal partnership between QDirect Ventures, Inc., an affiliate of
QVC, and Hydron Direct, Inc., a wholly-owned subsidiary of HyTech, to promote
Hydron products through an infomercial. This new partnership replaces the
previous Hydromercial Partners Joint Venture. The amended license agreement
provides that certain retail marketing rights formerly held by Direct to Retail
(QVC granted these rights to DTR under a separate agreement), revert back to
HyTech. These rights include prestige retail channels of distribution such as
traditional department and specialty stores, boutique stores and beauty salons,
as well as catalog sales. QVC will receive a commission from HyTech on these
sales. Also concurrent with the execution of the amended license agreement, and
as part of the overall transaction, HyTech has granted DTR an option to purchase
1.5 million shares of the company's common stock at $.01 per share. As a result,
HyTech will incur a one-time non-cash charge against earnings of approximately
$3.0 to $3.4 million in the third quarter ending September 30, 1996, which will
have no effect on the company's net shareholders' equity. Also, QVC has
exercised options to purchase 500,000 shares of HyTech's common stock, at $2.50
per share, and paid HyTech $1.25 million. HyTech also granted to QVC an option
to purchase an additional 500,000 shares at $2.75 per share.
On July 24, 1996, HyTech's Board of Directors declared a regular quarterly cash
dividend of $0.025 per share, payable on September 30, 1996 to shareholders of
record on September 16, 1996.
Page 7 of 12
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Business
Hydron Technologies, Inc. ("HyTech") is the owner of a broad range of consumer
and oral health care products using Hydron(Registered) polymers, a
scientifically-proven moisture attracting ingredient, and also owns a
non-prescription drug delivery system for topically applied pharmaceuticals,
which uses the polymer. HyTech holds U.S. and international patents on the
only known means to suspend the Hydron polymer in a stable emulsion that is
cosmetically acceptable for use in personal care/cosmetics products, creating
a new moisturizing technology for the personal care/cosmetics and
pharmaceutical industries. HyTech sells specialty personal care/cosmetics
products, and to a lesser extent oral health care products, most of which are
covered by patent, license and royalty agreements. HyTech has entered into a
License Agreement with QVC, Inc., as amended (the "Amended QVC License
Agreement"), which gives the electronic retailer certain exclusive rights to
purchase licensed products from HyTech for sale in the Western Hemisphere, and
a License Agreement with National Patent Development Corp., which provides
that HyTech will generally pay royalties to National Patent on its sales and
receive royalties from National Patent from sales of certain of that company's
products. HyTech is developing other personal care/cosmetics and oral health
care products using Hydron polymers, as well as products that use Hydron
polymer technology as a drug delivery system, which HyTech intends to market
through third parties or its own efforts.
Results of Operations
Net sales for the three (3) months ended June 30, 1996 were $2,001,660, or 32%
lower than net sales of $2,935,879 for the corresponding period of the fiscal
year ended December 31, 1995 ("Fiscal 1995"). Net sales for the six (6) months
ended June 30, 1996 were $5,033,641, or 24% percent higher than net sales of
$4,053,604 for the corresponding period of Fiscal 1995. This decrease and
increase are the result of changes in QVC purchasing patterns, which are
affected primarily by the timing of on-air programming, and do not necessarily
mirror retail sales by QVC to consumers.
As of December 31, 1994, QVC held approximately $1.8 million more of HyTech's
products in inventory, at QVC's cost, than it held in inventory at December 31,
1995. QVC's large inventory position as of the beginning of Fiscal 1995, along
with additional purchases from HyTech, were substantially reduced through retail
sales of HyTech's products by QVC to consumers in the first half of Fiscal 1995,
which included 16 hours of on-air programming promoting HyTech's products. QVC's
small inventory position at the beginning of Fiscal 1996 necessitated additional
purchases from HyTech for the nine (9) hours of on-air programming in the first
half of Fiscal 1996. However, due to reduced airtime, on-air retail sales of
HyTech's products by QVC to consumers were lower in the first half of Fiscal
1996 than in the first half of Fiscal 1995. Notwithstanding the reduced airtime,
back-end sales (which consist primarily of reorders) of HyTech's products by QVC
to consumers increased 11% over the same period.
Page 8 of 12
<PAGE>
Results of Operations (continued)
As previously discussed, the Amended QVC License Agreement with QVC, which was
signed on July 19, 1996, provides HyTech with certain retail marketing rights to
its Hydron brand product lines, (i.e., traditional department stores, specialty
stores, boutiques and beauty salons) and catalog sales, and significantly higher
minimum product purchase requirements for QVC in order for QVC to maintain its
exclusive rights to market Hydron brand consumer products within North, South
and Central America through direct response television. The Amended License
Agreement permits QVC to maintain its exclusive rights if QVC purchases certain
escalating minimum quantities of product over a two-year term ending May 31,
1998. In return for such increased minimums, HyTech has decreased the prices at
which it sells Hydron brand consumer products to QVC, which is expected to have
a decrease on HyTech's gross profit margin of less than 5%. Products sold to QVC
or its affiliates for resale through infomercials are excluded from the
calculation of such minimum purchase levels. QVC has no obligation to purchase
Hydron brand consumer products except to maintain exclusivity under the
Amendment, which renews automatically for additional two-year terms as long as
the annual minimum purchase levels are met. No assurances can be given that QVC
will meet such escalating minimum purchase levels in order to maintain its
exclusive rights.
Based on discussions with QVC, management expects substantially more airtime in
the second half of Fiscal 1996 than in the first half of Fiscal 1996. Management
is also currently in discussions with QVC to increase on-air programming by
focusing primarily on new program formats, line extensions and special
promotions. However, no assurances can be given that QVC will grant HyTech
additional on-air selling time; failure to receive such additional on-air
selling time could negatively impact sales.
Substantially all of the sales during the relevant periods were to QVC and its
related entities. Absent the consummation of marketing or distribution
arrangements with third parties other than QVC, the percentage of sales to QVC
and HyTech's dependence upon QVC as a substantial customer will remain
significant.
HyTech's gross profit margin for the three (3) months ended June 30, 1996
decreased one (1) percentage point to 61% from 62% for the corresponding period
of Fiscal 1995. The gross profit margin for the six (6) months ended June 30,
1996 decreased four (4) percentage points to 60% from 64%. These decreases were
due primarily to fluctuations in the mix of products sold to QVC in those
periods. In June 1995, HyTech re-packaged eight (8) of its individual skin care
products in a single collection to encourage wider consumer usage. Management
believes that this slightly lower margin item generally expands potential
re-order business, and leads to increased sales of the individual products at
higher margins. This marketing strategy is a concerted effort by management to
further increase the number of consumers using HyTech's products, as well as to
broaden distribution of the complete Hydron product line. Management believes
that once consumers sample a wider variety of HyTech's products, they are more
likely to re-order more of such products, either as an entire collection, or as
individual products at higher prices.
Page 9 of 12
<PAGE>
Results of Operations (continued)
Research and development ("R&D") expenses reflect HyTech's efforts to identify
new product opportunities, develop and package the products for commercial sale,
perform appropriate efficacy and safety tests, and conduct consumer panel
studies and focus groups. R&D expenses increased 144% to $122,818 in the second
quarter of Fiscal 1996, compared to $50,342 for the same period in Fiscal 1995.
Such expenses for the six (6) months ended June 30, 1996 increased 111% to
$254,061, compared to $120,553 for the corresponding period of Fiscal 1995.
These increases reflect HyTech's continual development of new products.
Selling, general and administrative expenses for the three (3) months ended June
30, 1996 increased by 25% to $622,033 from $499,409 for the corresponding period
of Fiscal 1995. Such expenses for the six (6) months ended June 30, 1996
increased 39% to $1,255,196, compared to $904,910 for the corresponding period
of Fiscal 1995. These increases are attributable to an overall increase in
salary requirements, expansion of full-time staff, including the addition of
customer service personnel, increased warehousing costs and advertising
expenses, primarily relating to the production and distribution of HyTech's
newsletter, which was introduced in September 1995.
Interest and investment income in the second quarter of Fiscal 1996 decreased
25%, to $73,415 from $97,356 for the same period in Fiscal 1995. Such income for
the six (6) months ended June 30, 1996 decreased 23% to $136,903, compared to
$178,517 for the corresponding period of Fiscal 1995. These decreases are due
primarily to lower cash balances and lower interest rates. HyTech maintains a
conservative investment strategy, deriving investment income primarily from U.S.
Treasury securities.
Net income for the three (3) months ended June 30, 1996 decreased 77%, to
$267,197 from $1,168,470 for the same period in Fiscal 1995. Net income for the
six (6) months ended June 30, 1996 decreased 23% to $1,082,869, compared to
$1,404,665 for the corresponding period of Fiscal 1995. Such changes are due
primarily to the factors discussed above.
In connection with the execution of the Amended License Agreement, HyTech
granted DTR an option to purchase 1.5 million shares of the company's common
stock at $.01 per share. As a result, HyTech will incur a one-time non-cash
charge against earnings of approximately $3.0 to $3.4 million in the third
quarter ending September 30, 1996, which will have no effect on the company's
net shareholders' equity.
Liquidity and Financial Resources
HyTech's overall financial condition remains strong as reflected in the
Condensed Consolidated Balance Sheets at June 30, 1996 compared to December 31,
1995. At June 30, 1996, working capital remained in excess of $9 million, due
primarily to net income of $1,082,869 for the period, offset by a $152,667
investment in Hydromercial Partners and the payment of quarterly dividends
totaling $1,133,070. At August 13, 1996, HyTech had in excess of $7.0 million in
cash and short-term treasury bills.
Page 10 of 12
<PAGE>
Liquidity and Financial Resources (continued)
HyTech's cash flow from operations of $2,065,515 was a direct result of its
marketing efforts with QVC. The QVC License Agreement provides that QVC purchase
products directly from HyTech for resale to consumers, and that HyTech receive
payment from QVC thirty days after QVC's receipt of such goods.
HyTech paid regular quarterly cash dividends of two and one-half cents ($0.025)
per share on March 29, 1996 and June 25, 1996 to shareholders of record on March
15, 1996 and June 14, 1996, respectively. On July 24, 1996, HyTech's Board of
Directors declared a regular quarterly cash dividend of $0.025 per share payable
on September 30, 1996 to shareholders of record on September 16, 1996.
Also in connection with the execution of the Amended QVC License Agreement, QVC
exercised options to purchase 500,000 shares of HyTech's common stock, at $2.50
per share, and paid HyTech $1.25 million. HyTech also granted to QVC an option
to purchase an additional 500,000 shares at $2.75 per share.
Based on HyTech's present cash position, absence of any short or long term debt,
third-party contractual approach to manufacturing and R&D, and present business
strategy, management believes that HyTech has adequate resources to meet normal,
recurring obligations as they become due. Further, in view of the thirty (30)
day payment terms in connection with sales to QVC, management does not
anticipate any difficulty in financing foreseeable inventory requirements.
Management is currently reviewing various methods of marketing Hydron brand
products via traditional retail distribution as well as catalog sales, but has
not made any firm commitments in such areas. Management recognizes that HyTech
does not have the financial resources to sustain a major national advertising
campaign to market its products. In view of the foregoing, management has
obtained with QVC and Hydromercial Partners, and continues to seek
internationally, marketing, licensing and distribution agreements with third
parties that have greater financial resources and that can enhance HyTech's
product introductions with appropriate national marketing support programs.
The effect of inflation has not been significant upon either the operations or
financial condition of HyTech.
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - 11 - Computation of Earnings Per Share
(b) Current report on Form 8-K (Date of Report, July 19, 1996), reporting items
5 and 7.
Page 11 of 12
<PAGE>
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.
HYDRON TECHNOLOGIES, INC.
By: /s/ Thomas G. Burns
-----------------------
Thomas G. Burns, Vice President,
Finance and Chief Financial Officer
Dated: August 13, 1996
Page 12 of 12
HYDRON TECHNOLOGIES, INC. AND SUBSIDIARIES
Exhibit (11) - Statement Re: Computation of Earnings Per Share
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------- -------------------------------------
1996 1995 1996 1995
--------------- ---------------- ---------------- -----------------
<S> <C> <C> <C> <C>
Primary:
Average shares outstanding 22,650,938 22,501,281 22,639,816 22,496,553
Net effect of dilutive stock
options - based on the
treasury stock method using
average market price 245,815 728,644 164,565 721,263
--------------- -------------- ---------------- --------------
Totals 22,896,753 23,229,925 22,804,381 23,217,816
=============== ============== ================ ===============
Net income $ 267,197 $ 1,168,470 $ 1,082,869 $ 1,404,665
=============== ============== ================ ===============
Per share amount $ 0.01 $ 0.05 $ 0.05 $ 0.06
=============== ============== ================ ===============
Fully diluted:
Average shares outstanding 22,650,938 22,501,281 22,639,816 22,496,553
Net effect of dilutive stock
options - based on the
treasury stock method using
quarter-end market price 245,815 773,335 334,029 746,700
--------------- -------------- ---------------- ---------------
Totals 22,896,753 23,274,616 22,973,845 23,243,253
=============== ============== ================ ===============
Net income $ 267,197 $ 1,168,470 $ 1,082,869 $ 1,404,665
=============== ============== ================ ===============
Per share amount $ 0.01 $ 0.05 $ 0.05 $ 0.06
=============== ============== ================ ===============
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 3,174,662
<SECURITIES> 1,949,212
<RECEIVABLES> 1,390,050
<ALLOWANCES> 0
<INVENTORY> 3,111,037
<CURRENT-ASSETS> 9,910,507
<PP&E> 745,759
<DEPRECIATION> 189,383
<TOTAL-ASSETS> 13,265,799
<CURRENT-LIABILITIES> 678,653
<BONDS> 0
0
0
<COMMON> 226,829
<OTHER-SE> 17,055,930
<TOTAL-LIABILITY-AND-EQUITY> 13,265,799
<SALES> 5,033,641
<TOTAL-REVENUES> 5,074,225
<CGS> 2,007,866
<TOTAL-COSTS> 2,007,866
<OTHER-EXPENSES> 1,961,490
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,104,869
<INCOME-TAX> 22,000
<INCOME-CONTINUING> 1,082,869
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,082,869
<EPS-PRIMARY> 0.05
<EPS-DILUTED> 0.05
</TABLE>
