<PAGE> 1
===============================================================================
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 QUARTER ENDED JUNE 30, 1996
COMMISSION FILE NUMBER 0-21176
WALL DATA INCORPORATED
(Exact name of registrant as specified in its charter)
WASHINGTON 91-1189299
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
11332 N.E. 122ND WAY, KIRKLAND, WASHINGTON 98034
(Address of principal executive offices) (Zip Code)
(206) 814-9255
(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 report), and (2) has been subject to such filing
requirements for the past 90 days. Yes /X/ No / /
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
OUTSTANDING AT
CLASS JULY 31, 1996
COMMON STOCK 9,059,980
===============================================================================
<PAGE> 2
WALL DATA INCORPORATED
FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 1996
INDEX
PART I. FINANCIAL INFORMATION PAGE
Item 1. Financial Statements
Consolidated Income Statements for
the three months and six months
ended June 30, 1996 and 1995 3
Consolidated Balance Sheets
as of June 30, 1996 and December 31, 1995 4
Consolidated Statements of Cash Flows
for the six months ended June 30, 1996 and 1995 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 11
Item 4. Submission of Matters to a Vote of Security Holders 11
Item 6. Exhibits and Reports on Form 8-K 12
SIGNATURES 13
2
<PAGE> 3
WALL DATA INCORPORATED
CONSOLIDATED INCOME STATEMENTS (unaudited)
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1996 1995 1996 1995
------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Net revenues $ 34,826 $ 24,730 $ 64,682 $ 46,830
Cost of revenues 8,179 5,643 14,907 10,230
------------- ------------- -------------- -------------
Gross margin 26,647 19,087 49,775 36,600
Operating expenses:
Product development 5,649 4,355 11,455 8,373
Sales and marketing 15,474 12,526 28,995 24,286
General and administrative 3,340 2,195 6,657 4,516
Non-recurring charges -- 6,805 -- 6,805
------------- ------------- -------------- -------------
Total operating expenses 24,463 25,881 47,107 43,980
------------- ------------- -------------- -------------
Operating income (loss) 2,184 (6,794) 2,668 (7,380)
Gain on sale of equity investment -- 14,040 -- 14,040
Other income, net 495 790 835 1,410
------------- ------------- -------------- -------------
Income before income taxes 2,679 8,036 3,503 8,070
Provision for income taxes 1,018 3,054 1,331 3,067
------------- ------------- -------------- -------------
Net income $ 1,661 $ 4,982 $ 2,172 $ 5,003
============= ============= ============== =============
Net income per share $ 0.17 $ 0.49 $ 0.22 $ 0.49
============= ============= ============== =============
Weighted average common and common
equivalent shares outstanding 9,747 10,099 9,665 10,207
============= ============= ============== =============
</TABLE>
See accompanying notes.
3
<PAGE> 4
WALL DATA INCORPORATED
CONSOLIDATED BALANCE SHEETS
(In thousands)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
-------------- --------------
ASSETS (unaudited)
------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 59,669 $ 51,969
Accounts receivable 25,692 27,597
Inventories 902 900
Deferred income taxes 3,048 2,843
Other current assets 2,339 3,048
-------------- --------------
Total current assets 91,650 86,357
Fixed assets, net 13,883 13,893
Deferred income taxes 1,419 2,017
Other assets 9,395 7,072
-------------- --------------
$ 116,347 $ 109,339
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable $ 7,429 $ 6,038
Accrued expenses 10,157 9,882
Income taxes payable 4,826 1,913
Deferred revenues 6,995 7,804
-------------- --------------
Total current liabilities 29,407 25,637
-------------- --------------
Shareholders' equity:
Preferred stock -- --
Common stock 52,568 52,295
Retained earnings 33,682 31,510
Cumulative translation adjustment (81) (103)
Unrealized gain on investments available for sale 771 --
-------------- --------------
Total shareholders' equity 86,940 83,702
-------------- --------------
$ 116,347 $ 109,339
============== ==============
</TABLE>
See accompanying notes.
4
<PAGE> 5
WALL DATA INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited)
(In thousands)
<TABLE>
<CAPTION>
Six months
ended
June 30,
1996 1995
------------- -------------
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 2,172 $ 5,003
Adjustments to reconcile net income to net cash
provided by operations:
Deferred income taxes (79) (2,118)
Depreciation and amortization 4,516 3,058
Non-recurring charges -- 6,805
Other, net 67 137
Gain on sale of equity investment -- (14,040)
Decrease (increase) in operating assets:
Accounts receivable 1,893 11,385
Inventories (2) (46)
Other current assets 654 (76)
Increase (decrease) in operating liabilities:
Accounts payable 1,391 (1,755)
Accrued expenses 275 (2,390)
Income taxes payable 2,913 (2,487)
Deferred revenues (809) 2,323
------------- -------------
Net cash provided by operating activities 12,991 5,799
------------- -------------
INVESTING ACTIVITIES
Purchases of fixed assets (2,866) (2,894)
Proceeds from sale of short-term investments, net -- 22,000
Proceeds from sale of equity investment -- 20,000
Acquisition of Concentric Data Systems, Inc., net of
cash acquired -- (5,076)
Other assets (2,720) (2,796)
------------- -------------
Net cash provided (used) by investing activities (5,586) 31,234
============= =============
FINANCING ACTIVITIES
Repurchase of common stock -- (3,581)
Proceeds from issuances under stock plans 273 1,120
------------- -------------
Net cash provided (used) by financing activities 273 (2,461)
------------- -------------
Net increase in cash and cash equivalents 7,678 34,572
Effect of exchange rate changes on cash 22 (137)
Beginning cash and cash equivalents 51,969 26,927
------------- -------------
Ending cash and cash equivalents $ 59,669 $ 61,362
============= =============
</TABLE>
See accompanying notes.
5
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WALL DATA INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
JUNE 30, 1996
1. BASIS OF PRESENTATION
In the opinion of management, the accompanying consolidated balance sheets
and related consolidated statements of income and cash flows include all
adjustments, consisting only of normal and recurring items, necessary for
their fair presentation. The results for the three months and six months
ended June 30, 1996 are not necessarily indicative of the results that may
be expected for the year ending December 31, 1996. These financial
statements and related notes should be read in conjunction with the
Company's audited consolidated financial statements for the year ended
December 31, 1995 which are included in the Company's Annual Report to
Shareholders.
2. UNREALIZED GAIN ON INVESTMENT
During 1996, a company in which Wall Data had a $500,000 investment
completed its initial public offering. As of June 30, 1996, the unrealized
gain on the investment totaled $771,000, net of income taxes. The
investment is included in other assets and the unrealized gain is
classified as a separate component of shareholders' equity in the
accompanying balance sheet.
3. LITIGATION
In April 1995, four individuals who allegedly had purchased Wall Data
common stock filed proposed shareholders' class action lawsuits against
Wall Data and certain of the Company's officers and/or directors in the
U.S. District Court, Western District of Washington. A consolidated
complaint amending the four actions was filed by one of the individuals in
June 1995. The complaint alleged misrepresentations and omissions with
respect to the Company's business, including its actual and expected
financial results and the success of and demand for the Company's products,
in violation of federal securities laws and state laws, during the period
from January 26, 1995 through April 5, 1995. On September 13, 1995, the
Court granted the Company's motion to dismiss the complaint, with leave to
amend the complaint. The Court also dismissed all claims against one of the
Company's directors with prejudice. On January 12, 1996, the plaintiffs
filed a second amended complaint, containing the same alleged violations of
law and class period as the previous complaint. The complaint seeks
unspecified damages. In June 1996, the Court denied in part and granted in
part the Company's motion to dismiss the second amended complaint. The
Company believes the allegations in the second amended complaint are
without merit and intends to continue defending against the action
vigorously.
6
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WALL DATA INCORPORATED
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
When used in this report and elsewhere by management from time to time, the
words "believes," "anticipates" and "expects" and similar expressions are
intended to identify forward-looking statements. Certain important factors could
cause the Company's actual results to differ materially from those expressed in
the Company's forward-looking statements. These factors are detailed in the
Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1995
and include, but are not limited to, fluctuations in quarterly performance,
competitive products and pricing, dependence on a single product line,
dependence on host computing, dependence on Microsoft(R) Windows(R), risks
associated with new products and technological change, reliance on resellers and
distributors, uncertainties regarding international operations, dependence on
key personnel, ability to manage growth and risks associated with intellectual
property and proprietary rights. Readers are cautioned not to place undue
reliance on the forward-looking statements, which speak only as of the date
made. The Company undertakes no obligation to publicly release the results of
any revision to the forward-looking statements that may be made to reflect
subsequent events or circumstances or to reflect the occurrence of unanticipated
events.
RESULTS OF OPERATIONS
Net revenues increased 41% in the second quarter of 1996 to $34.8 million from
$24.7 million in the second quarter of 1995. Sales of the Windows versions of
RUMBA(R) OFFICE, the Windows versions of RUMBA Mainframe, ONESTEP(TM) customer
support contracts, and RUMBA for the AS/400(R) accounted for most of the net
revenues in the second quarter of 1996. Most of the increase in net revenues in
the second quarter compared to the second quarter of 1995 resulted from
increased sales of the Windows versions of RUMBA OFFICE, ONESTEP customer
support contracts, RUMBA for the AS/400 and the Windows versions of RUMBA
Mainframe. Sales outside North America represented 31% of net revenues in the
second quarter of 1996 compared to 24% of net revenues in the second quarter of
1995. Foreign currency exchange rate changes did not have a significant effect
on net revenues in the second quarter. Revenue from indirect and OEM
distribution channels equaled 69% of net revenues in the second quarter of 1996
compared to 72% of net revenues in the second quarter of 1995.
Net revenues increased 38% in the first six months of 1996 to $64.7 million from
$46.8 million in the first six months of 1995. Sales of the Windows versions of
RUMBA OFFICE, the Windows versions of RUMBA Mainframe, OEM products, RUMBA for
the AS/400 and ONESTEP customer support contracts accounted for most of the net
revenues in the first six months of 1996. Most of the increase in net revenues
in the first six months compared to the first six months of 1995 resulted from
increased sales of the Windows versions of RUMBA OFFICE, ONESTEP customer
support contracts, RUMBA for the AS/400, and RUMBA for Database Access. Sales
outside North America represented 30% of net revenues in the first six months of
1996 compared to 28% of net revenues in the first six months of 1995. Foreign
currency exchange rate changes did not have a significant effect on net revenues
in the first six
7
<PAGE> 8
months. Revenue from indirect and OEM distribution channels equaled 70% of net
revenues in the first six months of 1996 compared to 73% of net revenues in the
first six months of 1995.
In March 1996, the Company released commercial versions of a number of RUMBA
software products, incorporating the ActiveX(TM) component architecture, for
Windows 95 and Windows NT(TM). Approximately 25% of net revenues in the second
quarter of 1996 and 18% of net revenues in the first six months of 1996 related
to products containing the new ActiveX technology. The Company began shipping
commercial versions of SALSA(TM) for the Desktop in February 1996; net revenues
in the second quarter and in the first six months were not significant.
Cost of revenues consists of software publishing costs, which include labor,
product media, packaging and documentation costs, and publishing engineering,
technical support and product quality assurance costs, royalties and licensing
costs, and provisions for obsolete inventory, doubtful accounts and reseller
rebates. The Company's gross margin as a percentage of net revenues decreased to
76.5% in the second quarter of 1996 from 77.2% in the second quarter of 1995.
For the first six months, the gross margin decreased to 77.0% in 1996 from 78.2%
in 1995. The decreases in both the second quarter and the first six months are
due primarily to increases in royalties and amortization of prepaid licenses
resulting from the increased use of third-party technology in the Company's
products.
Product development expenses increased 30% to $5.6 million, or 16% of net
revenues, in the second quarter of 1996, from $4.4 million, or 18% of net
revenues, in the second quarter of 1995. For the first six months, product
development expenses increased 37% to $11.5 million, or 18% of net revenues in
1996, from $8.4 million, or 18% of net revenues in 1995. The increases of $1.2
million in the second quarter and $3.1 million in the first six months resulted
primarily from higher average staffing levels for permanent and contract staff,
increases in overall compensation, and higher occupancy costs.
Sales and marketing expenses increased 24% to $15.5 million, or 45% of net
revenues, in the second quarter of 1996 from $12.5 million, or 51% of net
revenues, in the second quarter of 1995. For the first six months, sales and
marketing expenses increased 19% to $29.0 million, or 45% of net revenues in
1996, from $24.3 million, or 52% of net revenues in 1995. The increases of $2.9
million in the second quarter and $4.7 million in the first six months resulted
primarily from higher average staffing levels, increased sales commissions
arising from increased net revenues, and increased promotion, public relations
and other product launch expenses relating to the introduction of the RUMBA
95/NT, SALSA and Arpeggio(TM) product families.
General and administrative expenses increased 52% to $3.3 million, or 10% of net
revenues, in the second quarter of 1996, from $2.2 million, or 9% of net
revenues, in the second quarter of 1995. For the first six months, general and
administrative expenses increased 47% to $6.7 million, or 10% of net revenues in
1996, from $4.5 million, or 10% of net revenues in 1995. The increases of $1.1
million in the second quarter and $2.1 million in the first six months resulted
primarily from higher average staffing levels, increased legal fees principally
due to the shareholders' class action lawsuit (see Note 3 of Notes to
Consolidated Financial Statements), and increased depreciation charges.
8
<PAGE> 9
The Company recorded non-recurring charges in the second quarter of 1995
totaling $6.8 million ($4.2 million, or $0.42 per share, after income taxes).
Approximately $5.5 million ($3.4 million after income taxes) of the total
charges resulted from the acquisition of Concentric Data Systems, Inc. on April
28, 1995, primarily for the write-off of in-process research and development.
The Company also recorded non-recurring charges of approximately $1.3 million
($0.8 million after income taxes) primarily for the write-off of the remaining
goodwill from a prior acquisition.
On April 4, 1995, the Company received $20.0 million in cash from the sale of
its 20% equity investment in SPRY, Inc. The gain on the sale, totaling $14.0
million ($8.7 million, or $0.86 per share, after income taxes), was recorded in
the second quarter of 1995.
Other income, net of other expenses, decreased 37% to $0.5 million in the second
quarter of 1996 from $0.8 million in the second quarter of 1995. For the first
six months, other income, net of other expenses, decreased 41% to $0.8 million
in 1996 from $1.4 million in 1995. The $0.3 million decrease in the second
quarter primarily resulted from lower investment income, due principally to
lower interest rates and lower average funds available for investment. The $0.6
million decrease in the first six months primarily resulted from changes in the
amount of foreign currency transaction gains or losses in addition to lower
investment income; foreign currency transactions resulted in net exchange losses
of approximately $200,000 in the first six months of 1996 compared to net
exchange gains of approximately $125,000 in the first six months of 1995. To
date, the Company has not engaged in currency hedging transactions against sales
denominated in currencies other than U.S. dollars.
The effective income tax rate was 38% in the second quarter and in the first six
months of both 1996 and 1995.
Net income, excluding the non-recurring items, increased 234% to $1.7 million,
or 4.8% of net revenues, in the second quarter of 1996 from $0.5 million, or
2.0% of net revenues, in the second quarter of 1995. Net income in the second
quarter of 1995, including non-recurring items, was $5.0 million or 20% of net
revenues. For the first six months, net income, excluding the non-recurring
items, increased 320% to $2.2 million, or 3.4% of net revenues, in 1996 from
$0.5 million, or 1.1% of net revenues in 1995. Net income in the first six
months of 1995, including the non-recurring items, was $5.0 million or 10.7% of
net revenues.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash and cash equivalents and short-term investments totaled $59.7
million, or 51% of total assets, at June 30, 1996, compared to $52.0 million, or
47% of total assets, at December 31, 1995.
Net cash provided by operating activities totaled $13.0 million in the first six
months of 1996 compared to $5.8 million in the first six months of 1995.
Expenditures for property and equipment totaled $2.9 million in the first six
months of both 1996 and 1995. Expenditures for other long-term assets totaled
$2.7 million in the first six months of 1996 compared to $2.8 million in the
first six months of 1995; these expenditures were primarily for prepaid software
technology, and, in 1996, capitalized localization costs. The Company will, from
time to time consider the acquisition of additional third party technology
through license agreements, acquisitions or investments in other businesses.
9
<PAGE> 10
Stockholders' equity increased to $86.9 million at June 30, 1996, from $83.7
million at December 31, 1995. The change primarily resulted from net income for
the first six months and an unrealized gain on an investment. (See Note 2 of
Notes to Consolidated Financial Statements.)
Management believes that existing cash and cash equivalents together with funds
from operations will be sufficient to finance the Company's operations over the
near term.
10
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WALL DATA INCORPORATED
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In April 1995, four individuals who allegedly had purchased Wall Data
common stock filed proposed shareholders' class action lawsuits against
Wall Data and certain of the Company's officers and/or directors in the
U.S. District Court, Western District of Washington. A consolidated
complaint amending the four actions was filed by one of the individuals
in June 1995. The complaint alleged misrepresentations and omissions
with respect to the Company's business, including its actual and
expected financial results and success of and demand for the Company's
products, in violation of federal securities laws and state laws,
during the period from January 26, 1995 through April 5, 1995. On
September 13, 1995, the Court granted the Company's motion to dismiss
the complaint, with leave to amend the complaint. The Court also
dismissed all claims against one of the Company's directors with
prejudice. On January 12, 1996, the plaintiffs filed a second amended
complaint, containing the same alleged violations of law and class
period as the previous complaint. The complaint seeks unspecified
damages. In June 1996, the Court denied in part and granted in part the
Company's motion to dismiss the second amended complaint. The Company
believes the allegations in the second amended complaint are without
merit and intends to continue defending against the action vigorously.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
(a) The Company's annual shareholder meeting was held on May 21, 1996.
(b) Not applicable.
(c) The following nominees for election as directors were elected by
the vote set forth below:
<TABLE>
<CAPTION>
NOMINEE FOR WITHHELD
------- --- --------
<S> <C> <C>
James Simpson 7,542,975 141,296
Henry N. Lewis 7,542,578 141,693
</TABLE>
(d) The proposal to amend the Employee Stock Purchase Plan was
approved by the vote set forth below:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
--- ------- ------- ----------------
<S> <C> <C> <C>
6,335,167 1,283,699 59,205 6,200
</TABLE>
11
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(e) The proposal to amend the 1993 Stock Option Plan for Non-Employee
Directors was approved by the vote set forth below:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN BROKER NON-VOTES
--- ------- ------- ----------------
<S> <C> <C> <C>
6,777,093 830,910 70,068 6,200
</TABLE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
(11) Computation of Earnings Per Share
(27) Financial Data Schedule
(b) Reports on Form 8-K
The Company did not file any reports on Form 8-K during the
quarter ended June 30, 1996.
ITEMS 2, 3 AND 5 ARE NOT APPLICABLE AND HAVE BEEN OMITTED.
12
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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.
Wall Data Incorporated
Date: August 14, 1996 By: RICHARD VAN HOESEN
--------------------------------------
Richard Van Hoesen, Vice President,
Finance and Chief Financial Officer
(Duly Authorized Officer and Chief
Financial and Accounting
Officer)
13
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WALL DATA INCORPORATED
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
Exhibit Description Page
------- ----------- ----
<S> <C> <C>
(11) Computation of Earnings Per Share 15
(27) Financial Data Schedule 16
</TABLE>
14
<PAGE> 1
EXHIBIT (11)
WALL DATA INCORPORATED
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 9,021,868 9,287,404 9,007,820 9,279,454
Net effect of dilutive stock options based on the treasury
stock method using average market price 724,988 811,627 656,954 927,305
------------- -------------- ------------- --------------
Total weighted average shares outstanding 9,746,856 10,099,031 9,664,775 10,206,759
============= ============== ============= ==============
Net income $ 1,661,000 $ 4,982,000 $ 2,172,000 $ 5,003,000
============= ============== ============= ==============
Net income per share $ 0.17 $ 0.49 $ 0.22 $ 0.49
============= ============== ============= ==============
FULLY DILUTED
Average shares outstanding 9,021,868 9,287,404 9,007,820 9,279,454
Net effect of dilutive stock options based on the treasury
stock method using the period-end market price, if
higher than average market price 829,321 811,627 829,321 927,305
------------- -------------- ------------- --------------
Total weighted average shares outstanding 9,851,189 10,099,031 9,837,141 10,206,759
============= ============== ============= ==============
Net income $ 1,661,000 $ 4,982,000 $ 2,172,000 $ 5,003,000
============= ============== ============= ==============
Net income per share $ 0.17 $ 0.49 $ 0.22 $ 0.49
============= ============== ============= ==============
</TABLE>
15
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000722607
<NAME> N/A
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 59669
<SECURITIES> 0
<RECEIVABLES> 25692
<ALLOWANCES> 0
<INVENTORY> 902
<CURRENT-ASSETS> 91650
<PP&E> 26460
<DEPRECIATION> 12577
<TOTAL-ASSETS> 116347
<CURRENT-LIABILITIES> 29407
<BONDS> 0
0
0
<COMMON> 52568
<OTHER-SE> 34372
<TOTAL-LIABILITY-AND-EQUITY> 116347
<SALES> 64682
<TOTAL-REVENUES> 64682
<CGS> 14907
<TOTAL-COSTS> 14907
<OTHER-EXPENSES> 47107
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 68
<INCOME-PRETAX> 3503
<INCOME-TAX> 1331
<INCOME-CONTINUING> 2172
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2172
<EPS-PRIMARY> 0.22
<EPS-DILUTED> 0.22
</TABLE>
