================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________
QUARTERLY REPORT FOR SMALL BUSINESS ISSUERS SUBJECT
TO THE 1934 ACT REPORTING REQUIREMENTS
FORM 10-QSB
___________________
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE REPORT OF 1934
For the transition period from ___________ to ____________
Commission file number 000-27548
___________________
LIGHTPATH TECHNOLOGIES, INC.
___________________
(Exact name of registrant as specified in its charter)
DELAWARE 86-0708398
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6820 Academy Parkway East, N.E. http://www.light.net 87109
Albuquerque, New Mexico (ZIP Code)
(Address of principal executive offices)
Registrant's telephone number, including area code:
(505)342-1100
___________________
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 and 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 ____
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date:
Common Stock, Class A, $.01 par value 2,763,096 shares
Common Stock, Class E-1, $.01 par value 1,449,942 shares
Common Stock, Class E-2, $.01 par value 1,449,942 shares
Common Stock, Class E-3, $.01 par value 966,621 shares
- ---------------------------------------- --------------
Class Outstanding at January 31, 1997
================================================================================
<PAGE>
LightPath Technologies, Inc.
( A Development Stage Company)
Form 10-Q
Index
Item Page
- ---- ----
Part I Financial information
Balance Sheet 2
Statements of Operations 3
Statements of Cash Flows 4
Notes to Financial Statements 5
Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II Other information
Legal Proceedings 10
Changes in Securities 10
Defaults Upon Senior Securities 10
Submission of Matters to Vote of Security Holders 10
Other Items 10
Exhibits and Reports on Form 8-K 10
Signatures 11
1
<PAGE>
LightPath Technologies, Inc.
(A Development Stage Company)
Balance Sheet
<TABLE>
<CAPTION>
December 31, June 30,
1996 1996
-------------------------------------
Unaudited
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 2,277,189 $ 4,335,133
Trade accounts receivable 84,328 23,500
Inventories 179,572 66,186
Advances to employees 2,156 14,445
Prepaid expenses and other 42,479 82,608
-------------------------------------
Total current assets 2,585,724 4,521,872
Property and equipment - net 717,749 438,726
Intangible assets - net 309,625 250,206
=====================================
Total assets $ 3,613,098 $ 5,210,804
=====================================
Liabilities and Stockholders' Equity Current liabilities:
Accounts payable and accrued liabilities $ 316,349 $ 362,206
Accrued payroll and benefits 267,629 274,237
-------------------------------------
Total current liabilities 583,978 636,443
Note payable to related parties 30,000 30,000
Redeemable common stock:
Class E-1 - performance based and redeemable common stock
1,449,942 and 1,454,547, shares issued and outstanding at
December 31, 1996 and June 30, 1996, respectively 14,499 14,545
Class E-2 - performance based and redeemable common stock
1,449,942 and 1,454,547 shares issued and outstanding at
December 31, 1996 and June 30, 1996, respectively 14,499 14,545
Class E-3 - performance based and redeemable common stock
966,621 and 969,691, issued and outstanding at December 31, 1996
and June 30, 1996, respectively 9,666 9,697
Stockholders' equity:
Preferred stock, $.01 par value; 5,000,000 shares authorized; none
issued and outstanding at December 31, 1996 or June 30, 1996 - -
Common stock:
Class A, $.01 par value; 34,500,000 shares authorized, voting
2,763,096 and 2,722,191, shares issued and outstanding at
December 31, 1996 and June 30, 1996, respectively 27,632 27,222
Additional paid-in capital 18,837,300 18,692,578
Deficit accumulated during the development stage (15,904,476) (14,214,226)
-------------------------------------
Total stockholders' equity 2,960,456 4,505,574
=====================================
Total liabilities and stockholders' equity $ 3,613,098 $ 5,210,804
=====================================
</TABLE>
See accompanying notes.
2
<PAGE>
LightPath Technologies, Inc.
(A Development Stage Company)
Statements of Operations
<TABLE>
<CAPTION>
Inception
August 23,
Three Months Ended Six Months Ended 1985 through
Unaudited December 31, December 31, December 31,
1996 1995 1996 1995 1996
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenues:
Product development fees $ 1,806 $ 45,000 $ 113,153 $ 75,000 $ 382,153
Lenses and other 26,358 9,466 38,481 9,594 158,869
-----------------------------------------------------------------------------------
Total revenues 28,164 $ 54,466 151,634 84,594 541,022
Costs and expenses:
Cost of goods sold 17,636 5,478 30,323 5,478 237,178
Selling, general and
administrative 683,530 295,396 1,346,280 589,270 12,492,716
Research and development 292,364 7,751 539,307 20,321 7,213,761
Amortization of unearned
compensation - - - 867,642 2,076,217
-----------------------------------------------------------------------------------
Total costs and expenses 993,530 308,625 1,885,587 1,482,711 22,019,872
-----------------------------------------------------------------------------------
Operating loss (965,366) (254,159) (1,764,276) (1,398,117) (21,478,850)
Other income(expense):
Investment income 33,041 - 75,599 - 169,050
Interest expense (796) (104,526) (1,573) (195,406) (1,851,940)
-----------------------------------------------------------------------------------
Net loss $ (933,121) $ (358,685) $(1,690,250) $(1,593,523) $(23,161,740)
===================================================================================
Net loss per share $(.34) $(.47) $(.62) $(2.12) -
===================================================================================
Number of shares used in per
share calculation 2,755,520 763,160 2,745,404 752,262 -
===================================================================================
</TABLE>
See accompanying notes.
3
<PAGE>
LightPath Technologies, Inc.
(A Development Stage Company)
Statements of Cash Flows
<TABLE>
<CAPTION>
Inception
August 23,
1985
Six Months Ended through
Unaudited December 31 December 31
------------------------------------------------------
1996 1995 1996
------------------------------------------------------
<S> <C> <C> <C>
Operating activities
Net loss $ (1,690,250) $(1,234,838) $(23,161,740)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization 92,070 20,216 548,125
Accretion of bridge notes - 38,623 244,808
Services provided for common stock 245,009 5,000 1,385,822
Write-off abandoned patent applications - - 111,059
Amortization of unearned compensation - 867,642 2,076,217
Changes in operating assets and liabilities:
Receivable, advances to employees (48,539) 41,374 (86,484)
Inventories (113,386) - (179,572)
Prepaid expenses and other 40,129 (240,274) (42,479)
Accounts payable and accrued expenses (52,465) 445,502 1,869,642
------------------------------------------------------
Net cash used in operating activities (1,527,432) (56,755) (17,234,602)
Cash flows from investing activities
Property and equipment additions (365,427) - (1,231,913)
Costs incurred in acquiring patents (65,085) (2,392) (454,643)
------------------------------------------------------
Net cash used in investing activities (430,512) (2,392) (1,686,556)
Cash flows from financing activities
Proceeds from notes payable - 14,489 4,398,606
Payments on notes payable - - (1,097,350)
Proceeds from convertible notes payable - - 1,465,529
Repayments of convertible notes payable - - (212,500)
Proceeds from bridge loans - 35,433 1,765,748
Repayments of bridge loans - - (1,250,000)
Proceeds from sales of common stock - 9,567 9,189,443
Repurchase of common stock (100,000) - (669,512)
Proceeds from sales of treasury stock - - 351,119
Proceeds from sales of limited partnership units - - 7,257,264
------------------------------------------------------
Net cash provided by financing activities (100,000) 59,489 21,198,347
------------------------------------------------------
Net increase (decrease) in cash and cash equivalents (2,057,944) 342 2,277,189
Cash and cash equivalents at beginning period 4,335,133 11,177 -
------------------------------------------------------
Cash and cash equivalents at end of period $2,277,189 $ 11,519 $ 2,277,189
======================================================
Supplemental disclosure of cash flow information:
Class A common stock issued for services $ 245,009 $ 4,904 $ 1,356,626
Debt and accrued interest converted into Class A
common stock - 16,877 6,281,164
Stock options granted for services - - 98,500
Class E common stock issued - 96 38,801
</TABLE>
See accompanying notes.
4
<PAGE>
LightPath Technologies, Inc.
(A Development Stage Company)
Notes to Financial Statements - Unaudited
Organization and Purpose
LightPath Technologies, Inc. (the Company) was incorporated in Delaware on June
15, 1992 as the successor to LightPath Technologies Limited Partnership formed
in 1989, and its predecessor, Integrated Solar Technologies Corporation formed
on August 23, 1985. The Company is a development stage enterprise engaged in the
research, development and production of GRADIUM(TM) lenses. GRADIUM is an
optical quality glass material with varying refractive indices, capable of
reducing optical aberrations inherent in conventional lenses and performing with
a single lens, or fewer lenses, tasks performed by multi-element conventional
lens systems. Since its inception in 1985, the Company has been engaged in basic
research and development. With the proceeds from the initial public offering
(IPO) on February 22, 1996, the Company began to focus on product development
and sales.
1. Summary of Significant Accounting Matters
The accompanying unaudited financial statements have been prepared in accordance
with the instructions to Article 10 of Regulation S-X and, therefore, do not
include all information and footnotes necessary for a fair presentation of
financial position, results of operations, and cash flows in conformity with
generally accepted accounting principles. These financial statements should be
read in conjunction with the Company's financial statements and related notes
included in the Form 10-KSB as filed with the Securities and Exchange Commission
on August 28, 1996.
The information furnished, in the opinion of management, reflects all
adjustments, which include normal recurring adjustments, necessary to present
fairly the results of operations of the Company for the three month and six
month periods ended December 31, 1996 and 1995. Results of operations for
interim periods are not necessarily indicative of results which may be expected
for the year as a whole.
Cash and cash equivalents consist of cash in the bank and temporary investments
with maturities of ninety days or less when purchased.
Inventories which consist principally of raw materials, lenses and components
are stated at the lower of cost, on a first-in, first-out basis, or market.
Inventory costs include material, labor and manufacturing overhead.
Property and equipment are stated at cost and depreciated using the
straight-line method over the estimated useful lives of the related assets from
three to seven years.
Intangible assets consisting of patents and trademarks, are recorded at cost.
These assets are being amortized on the straight-line basis over the estimated
useful lives of the related assets from ten to seventeen years.
Income taxes are accounted for under the provisions of Statement of Financial
Accounting Standards No. 109, Accounting for Income Taxes, which requires an
asset and liability approach to financial accounting and reporting for income
taxes.
Deferred income tax assets and liabilities are computed for differences between
the financial statement and tax bases of assets and liabilities that will result
in taxable or deductible amounts in the future based upon enacted tax laws and
rates applicable to the periods in which the differences are expected to affect
taxable income. Valuation allowances are established when necessary to reduce
deferred tax assets to the amount expected to be realized. Income tax expense is
the tax payable or refundable for the period plus or minus the change in
deferred tax assets and liabilities during the period.
Revenue recognition occurs from sales of product upon shipment.
5
<PAGE>
LightPath Technologies, Inc.
(A Development Stage Company)
Notes to Financial Statements - Unaudited
Research and development costs are expensed as incurred.
Stock based employee compensation is accounted for under the provisions of APB
Opinion No. 25, Accounting for Stock Issued to Employees, which requires no
recognition of compensation expense when the exercise price of the employees
stock option equals the market price of the underlying stock on the date of
grant.
Per share data is computed using the weighted average number of common shares
and common equivalent shares outstanding during each period after giving
retroactive effect to the recapitalization. Restricted Class E common shares and
stock options for the purchase of Class E common shares are considered
contingently issuable and, accordingly, are excluded from the weighted average
number of common and common equivalent shares outstanding.
Net loss per share for the period from inception through December 31, 1996 is
not presented as the Company's predecessor was a limited partnership and no
common shares were outstanding.
Management uses estimates and makes assumptions during the preparation of the
Company's financial statements that affect amounts reported in the financial
statements and accompanying notes. Such estimates and assumptions could change
in the future as more information becomes known, which in turn could impact the
amounts reported and disclosed herein.
2. Inventories
The components of inventories include the following at December 31, 1996:
Finished goods and work in process $ 122,812
Raw materials 56,760
-----------
Total inventories $179,572
===========
6
<PAGE>
LightPath Technologies, Inc.
(A Development Stage Company)
Management's Discussion and Analysis of Financial Condition
and Results of Operations
Results of Operations
- ---------------------
The Private Securities Litigation Reform Act of 1995 ("the Act")
provides a safe harbor for forward looking statements made by or on behalf of
the Company. All statements, other than statements of historical facts, which
address activities, events or developments that the Company expects or
anticipates will or may occur in the future, including such things as future
capital expenditures, growth, product development, sales, business strategy and
other such matters are forward-looking statements. These forward-looking
statements are based largely on the Company's expectations and assumptions and
are subject to a number of risks and uncertainties, many of which are beyond the
Company's control. Actual results could differ materially from the
forward-looking statements as a result of a number of factors, including, but
not limited to, the Company's early state of development, the need for
additional financing, and intense competition in various aspects of its
business. In light of these risks and uncertainties, all of the forward-looking
statements made are qualified by these cautionary statements and there can be no
assurance that the actual results or developments anticipated by the Company
will be realized.
Three months ended December 31, 1996 compared with three months ended December
31,1995
Revenue totaled $28,164 for the three months ended December 31, 1996, a
decrease of approximately $26,000 over the comparable period last year. The
change was attributable to an additional $17,000 in lens sales and a reduction
of $43,000 in product development fees. The lens sales included approximately
twenty new customers representing a variety of industrial and government
accounts. The Company's increase in lens sales is primarily due to its efforts
in targeting laser market applications, an area where GRADIUM's lenses ability
to increase the quality of YAG laser beams and reduce the focal spot size is
beginning to receive market acceptance. The Company continues to witness a
multi-step sales cycle. New customers are first purchasing one or two lenses for
testing, then after a period of several months a more significant sale occurs.
At the end of the reporting period, a backlog of $60,000 existed for lens sales.
The Company's backlog on its two current government projects remained at
$125,000. During the quarter the Company derived no additional government
revenue from the subcontracts awarded during the first quarter of fiscal 1997.
Although the Company did not enter into any new OEM projects during the quarter
a number of potential OEM projects are in process.
Cost of sales was 67% of product sales due to outside finishing
expenses, and the low volume of inventory production. It is anticipated that
with increased volume and the increased utilization of off-shore lens finishers,
the cost of production will decrease. Administrative costs increased $388,134,
or 131% over the corresponding 1995 period, primarily due to the addition of
personnel in sales and marketing, administration and operations along with
increased overhead in these areas as a result of an expected scale-up of
operations to the levels planned in the Company's IPO in February 1996. The
Company's public awareness campaign, through print advertising, web site and
trade shows has generated approximately 2,000 inquiries since September 1996.
Research and development costs increased from $7,751 to $292,364. The research
department staff has increased to 4.5 full time equivalents since the IPO. The
focus of the development efforts has been to expand GRADIUM product lines to the
areas of multiplexers and interconnects for the telecommunications field, the
addition of the crown glass product line to supplement its existing flint
products, to extend the product range, to upgrade the proprietary material
design software and optical design tools to facilitate product design.
Investment income increased $33,041 due to the interest earned on
temporary investments. Interest expense decreased approximately $104,000 due
primarily to the conversion of debt to equity in conjunction with the completion
of the IPO.
Net loss of $933,121 was an increase of $574,436 from the comparable
period last year due to the decreased gross margin of $38,460, increases in
selling, general and administrative costs $388,134 and research and development
$284,613, offset by the increase in other income of $136,771. Net loss
7
<PAGE>
LightPath Technologies, Inc.
(A Development Stage Company)
Management's Discussion and Analysis of Financial Condition
and Results of Operations
per share of $.34 was an improvement of $.13 due to an increased in other income
of $.05, offset by the decrease in gross margin of $.01, increase in selling,
general and administrative costs of $.14 and research and development expenses
of $.10. The remaining $.33 gain was due to the increase in weighted average
common shares due to the IPO.
Six months ended December 31, 1996 compared with the six months ended December
31,1995
Revenue totaled $151,634 for the six months ended December 31, 1996, an
increase of approximately $67,000 over the comparable period last year. The new
sales were in two areas, government funded subcontracts in the area of solar
energy to allow satellites to produce their own power and the next generation of
multiplexing devices used in conjunction with optical fiber, which two areas
accounted for an aggregate of $112,000 of development fees. The Company
anticipates an additional $125,000 of revenue in the third quarter from these
contracts from the corresponding period last year. The Company also experienced
$29,000 growth in lens sales to industrial and government accounts. At December
31, 1996 the Company had approximately $60,000 in lens back orders which it
intends to ship during the third quarter. In addition, the Company announced in
January 1997 that it has formalized relationships with four industrial,
optoelectronic and medical component distributors based in Japan, the United
Kingdom, Germany and Israel. The Company believes these distributors will create
new markets for GRADIUM in their countries primarily in the area of sales into
the YAG laser market.
For the six months the cost of sales was 79%. It is anticipated that
with increased volume the cost of production will continue to decrease.
Administrative costs increased $757,010 or 128% over the corresponding period in
1995, primarily due to the addition of personnel in sales and marketing,
administration and operations, along with increased overhead in these areas as a
result of an expected scale-up of operations. Research and development costs
increased from $20,321 to $539,307. In January 1997, the research department
staff added an additional staff member to continue the Company's research and
development efforts in the area of new glass families and opto-electronic
applications. There were no costs related to unearned compensation from
incentive stock options during the six months representing a decrease of
$867,642 for the period.
Investment income increased $75,599 due to the interest earned on
temporary investments. Interest expense decreased approximately $194,000 due
primarily to the conversion of debt to equity in conjunction with the completion
of the IPO.
Net loss of $1,690,250 was an increase of $96,727 from the comparable
period last year due to, increases in selling, general and administrative costs
$757,010 and research and development $518,986, offset by the increased gross
margin of $42,195, decrease of $867,642 in unearned compensation and the
increase in other income of $269,432. Net loss per share of $.62 was an
improvement of $1.50 due to increased gross margin of $.02, decrease in unearned
compensation of $.32 and the increase in other income of $.10, offset by the
increase in selling, general and administrative costs of $.28 and research and
development other expenses of $.19. The remaining $1.53 gain was due to the
increase in weighted average common shares due to the IPO.
Financial Resources and Liquidity
- ---------------------------------
LightPath has financed its operations through private placements of
equity and debt, borrowings, and the IPO which generated net proceeds of
approximately, $7.452 million in February 1996. The Company expects to continue
to incur losses until such time, if ever, as it obtains market acceptance for
its product at selling prices and volumes which provide adequate gross profit to
cover operating costs. The Company has budgeted its cash requirements for fiscal
1997 at $3,700,000, a substantial increase from fiscal 1996 due to the
implementation of a sales program, additional personnel and overhead costs.
8
<PAGE>
LightPath Technologies, Inc.
(A Development Stage Company)
Management's Discussion and Analysis of Financial Condition
and Results of Operations
During the second quarter, the Company's actual cash requirements were
approximately $3,000 under the quarterly budget. In addition, the Company
budgeted $700,000 for fiscal 1997 to continue its research and development
efforts. During the second quarter, the Company's actual cash requirements for
research and development exceeded the quarterly budget by $27,000. During the
six months ended December 31, 1996 the Company's actual cash requirements were
approximately $256,000 under budget.
The Company also budgeted $800,000 primarily to be used for equipment
to expand its manufacturing facilities during fiscal year 1997. During the six
month period ended December 31, 1996, the Company incurred approximately
$430,000 in capital equipment and patent costs. The Company anticipates
expending approximately $100,000 in capital equipment and patent costs by March
31, 1997.
The Company has initiated discussions about a number of financing
options to generate sufficient capital to meet its liquidity needs in fiscal
1998 and beyond. The Company's capital requirements after fiscal 1997 will
depend on the extent that GRADIUM glass becomes commercially accepted and the
Company's sales program is successful in generating sales sufficient to sustain
its operations. There can be no assurance that the Company will generate
sufficient revenues to fund its operations or that the Company will successfully
commercialize its GRADIUM products. In addition, the Company may be required to
seek additional financing or alter its business plan in the event of delays,
cost overruns or unanticipated expenses associated with a company in the
development stage. The Company currently has no credit facility with a bank or
other financial institution. There also can be no assurance that any additional
financing will be available if needed, or, if available, will be on terms
acceptable to the Company. In the event necessary financing is not obtained, the
Company will be materially adversely affected and have to cease or substantially
reduce operations.
Since the Company has principally been engaged in basic research and
development of its products, it has not been significantly impacted by
inflation. The Company does not believe that seasonality will have a significant
impact on its business.
9
<PAGE>
LightPath Technologies, Inc.
(A Development Stage Company)
PART II
-------
Item 1. Legal Proceedings
In October 1996, the Company was informed that a lawsuit filed in the
U.S. District Court, Tucson, by a former employee had been terminated by the
employee following the discovery phase.
In December 1996, the Company was informed that a lawsuit filed in
Arizona Superior Court, County of Pima, by a former consultant had been
terminated by the consultant following the discovery phase.
There have been no material developments in any other legal actions
since the Company's Form 10-KSB for the year ended June 30, 1996. LightPath is
subject to various claims and lawsuits in the ordinary course of business, none
of which are considered material to the Company's financial condition and
results of operations.
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Items
None
Item 6. Exhibits and Reports on Form 8-K
a) The following document is filed as an exhibit to this Form 10-QSB:
Exhibit 27 - Financial Data Schedule
b) No reports on Form 8-K were filed under the Securities and Exchange
Act of 1934 during the quarter ended December 31, 1996.
10
<PAGE>
LightPath Technologies, Inc.
(A Development Stage Company)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report to be signed in its behalf by the
undersigned, thereunto duly authorized.
LIGHTPATH TECHNOLOGIES, INC.
By: /s/ Donald Lawson February 5, 1997
----------------------------------------
Donald Lawson Date
Executive Vice President and Treasurer
11
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial
information extracted from the Form 10-QSB for the
six month period ended December 31, 1996 and is
qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> DEC-31-1996
<EXCHANGE-RATE> 1
<CASH> 2,277,189
<SECURITIES> 0
<RECEIVABLES> 84,328
<ALLOWANCES> 0
<INVENTORY> 179,572
<CURRENT-ASSETS> 2,585,724
<PP&E> 1,210,149
<DEPRECIATION> 492,400
<TOTAL-ASSETS> 3,613,098
<CURRENT-LIABILITIES> 583,978
<BONDS> 0
0
0
<COMMON> 27,632
<OTHER-SE> 18,837,300
<TOTAL-LIABILITY-AND-EQUITY> 3,613,098
<SALES> 38,481
<TOTAL-REVENUES> 151,634
<CGS> 30,323
<TOTAL-COSTS> 30,323
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,573
<INCOME-PRETAX> (1,690,250)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,690,250)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,690,250)
<EPS-PRIMARY> (.62)
<EPS-DILUTED> 0
</TABLE>
