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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 March 31, 1998 Commission file number: 0-25326
Ariel Corporation
(exact name of registrant as specified in its charter)
Delaware 13-3137699
(State of incorporation) (IRS employer identification number)
2540 Route 130
Cranbury, New Jersey 08512
(Address of principal executive offices)
609-860-2900
(Telephone number, including area code)
--------------------------------------------
Indicate by check mark whether the Issuer (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 ( )
State the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Common Stock, $.001 par value 9,673,125 shares outstanding
as of March 31, 1998
Documents Incorporated by Reference: None
</TABLE>
<PAGE>
Ariel Corporation
Index
Part I. Financial Information
- ------------------------------
Item 1. Financial Statements (Unaudited)
--------------------
A. Balance sheet - March 31, 1998 and December 31, 1997
B. Statements of operations for the three months ended
March 31, 1998 and 1997.
C. Statements of cash flows for the three months ended March
31, 1998 and 1997.
D. Notes to financial statements
Item 2. Management's Discussion and Analysis of Financial Condition and
---------------------------------------------------------------
Results of Operations.
----------------------
Part II. Other Information
- ---------------------------
<PAGE>
<TABLE>
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PART I. - FINANCIAL INFORMATION
ITEM 1. - FINANCIAL STATEMENTS
ARIEL CORPORATION
BALANCE SHEETS
(Unaudited)
March 31, December 31,
1998 1997
---------- ------------
ASSETS
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $986,513 $2,645,864
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE FOR DOUBTFUL
ACCOUNTS OF $202,446 IN 1998 AND $187,446 IN 1997 4,903,291 1,395,624
OTHER RECEIVABLES 72,889 73,311
INVENTORIES 5,134,936 3,536,190
PREPAID EXPENSES 506,760 299,336
----------- -----------
TOTAL CURRENT ASSETS 11,604,389 7,950,325
EQUIPMENT, NET OF ACCUMULATED DEPRECIATION
AND AMORTIZATION 2,264,651 2,382,645
OTHER ASSETS 767,271 788,697
------------ ------------
TOTAL ASSETS $14,636,311 $11,121,667
============ ============
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE $2,878,553 $1,186,876
ACCRUED EXPENSES 1,811,192 1,754,697
NOTES PAYABLE - CURRENT PORTION OF LONG-TERM DEBT 2,600,000 600,000
ROYALTIES PAYABLE 58,589 79,734
--------- ---------
TOTAL CURRENT LIABILITIES 7,348,334 3,621,307
NOTES PAYABLE - LONG TERM 2,297,437 2,367,147
STOCKHOLDERS' EQUITY
PREFERRED STOCK, $.001 PAR VALUE:
AUTHORIZED - 2,000,000 SHARES
ISSUED AND OUTSTANDING - NONE
COMMON STOCK, $.001 PAR VALUE:
AUTHORIZED - 20,000,000 SHARES
ISSUED AND OUTSTANDING - 9,673,125 AT MARCH 31, 1998
AND 9,234,250 AT DECEMBER 31, 1997 9,673 9,235
ADDITIONAL PAID-IN CAPITAL 32,577,294 30,949,180
UNEARNED COMPENSATION (83,114) (110,819)
ACCUMULATED DEFICIT (27,513,313) (25,714,383)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 4,990,540 5,133,213
------------ ------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $14,636,311 $11,121,667
============ ============
<FN>
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
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ARIEL CORPORATION
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
1998 1997
=================== =====================
SALES $6,276,617 $4,519,526
COST OF GOODS SOLD 3,758,124 2,392,892
------------------- ---------------------
GROSS PROFIT 2,518,493 2,126,634
EXPENSES:
SALES AND MARKETING 1,274,434 1,148,424
GENERAL AND ADMINISTRATIVE 869,348 943,645
RESEARCH AND DEVELOPMENT 2,085,737 2,665,376
------------------- ---------------------
TOTAL OPERATING EXPENSES 4,229,519 4,757,445
------------------- ---------------------
LOSS FROM OPERATIONS (1,711,026) (2,630,811)
INTEREST INCOME 16,803 118,356
INTEREST EXPENSE (97,163) (3,974)
OTHER INCOME (EXPENSE) (7,544) (1,468)
------------------- ---------------------
LOSS BEFORE INCOME TAXES (1,798,930) (2,517,897)
INCOME TAXES 0 0
=================== =====================
NET LOSS ($1,798,930) ($2,517,897)
=================== =====================
BASIC AND DILUTED PER SHARE DATA:
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 9,380,293 9,066,638
=================== =====================
NET LOSS PER SHARE ($0.19) ($0.28)
=================== =====================
<FN>
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
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ARIEL CORPORATION
STATEMENTS OF CASH FLOWS
(Unaudited)
For the three months ended March 31,
1998 1997
------------ ------------
Cash flows from operating activities:
Net loss ($1,798,930) ($2,517,897)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization 313,651 256,913
Amortization of discount on royalties payable 0 2,998
Amortization of non-cash financing costs 16,089 0
Amortization of discounts on investments 0 4,319
Provision for doubtful accounts 15,000 0
Provision for inventory obsolescence 55,000 15,000
Non-cash compensation expense 27,705 44,705
(Increase) decrease in assets:
Accounts receivable (3,522,246) 423,400
Inventories (1,653,746) (431,069)
Other assets (202,085) (192,578)
Increase (decrease) in liabilities:
Accounts payable and accrued expenses 1,775,887 (845,281)
Royalties payable (21,146) (20,320)
Notes payable-related parties 0 (117,764)
---------------- -----------------
Net cash used in operating activities (4,994,821) (3,377,573)
---------------- -----------------
Cash flows provided by investing activities:
Purchases of Investments 0 3,643,594
Purchase of equipment (223,372) (822,430)
--------------- -----------------
Net cash provided by investing activities (223,372) 2,821,164
--------------- -----------------
Cash flows provided by financing activities:
Proceeds from debt financing 2,000,000 0
Principal payments on Long-term debt (69,710) 0
Proceeds from exercise of common stock options and warrants 1,628,552 898,145
--------------- ----------------
Net cash provided by financing activities 3,558,842 898,145
--------------- ----------------
Net increase (decrease) in cash (1,659,351) 341,736
Cash and cash equivalents, beginning of period 2,645,864 4,626,583
=============== ================
Cash and cash equivalents, end of period $986,513 $4,968,319
=============== ================
<FN>
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
<PAGE>
Ariel Corporation
Notes to Financial Statements
(Unaudited)
1. Basis of Presentation
The financial statements included herein have been prepared by the Company,
pursuant to the Rules and Regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and regulations. The
Company believes, however, that the disclosure contained herein is adequate to
make the information presented not misleading. The financial statements should
be read in conjunction with the financial statements and notes thereto included
in the Company's Form 10-K for the year ended December 31, 1997. The year end
balance sheet data was derived from audited financial statements but does not
include all disclosures required by generally accepted accounting principles.
As of March 31, 1998, the Company had working capital of $4,256,055,
including cash and cash equivalents of $986,513. The financial statements have
been prepared on a going-concern basis, which contemplates realization of assets
and liquidation of liabilities in the ordinary course of business. The Company
expects to incur costs and expenses in excess of expected revenues during the
ensuing three months as the Company continues to execute its business strategy
in the Remote Access market. There is no assurance that the Company will
generate sufficient cash flow from product sales to liquidate liabilities as
they become due. Accordingly, the Company may require additional funds to meet
planned obligations through December 31, 1998 and will seek to raise such
amounts through a variety of options, including equity financing, proceeds from
the sale of the Horizon product and team, borrowings under the existing
Revolver, and the expected future cash flows from operations. In the event the
Company is unable to liquidate its liabilities, planned operations will need to
be scaled back. Continuance of the Company as a going concern is dependent upon
the Company's ability to generate capital and its attainment of profitable
operations. The financial statements do not include any adjustments that might
result from the outcome of these uncertainties.
In the opinion of the management of the Company, the accompanying unaudited
financial statements contain all adjustments, consisting of normal recurring
accruals, which are necessary to present fairly the financial position of the
Company as of March 31, 1998 and the results of operations for the three months
ended March 31, 1998 and 1997. The results for interim periods are not
necessarily indicative of results for the full year.
<PAGE>
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2. Inventories, net of allowance:
Inventories, net of allowance, consists of the following:
March 31, December 31,
1998 1997
----------- ------------
Component Materials................................................... $2,163,791 $2,077,866
Work-in process..................................................... 1,068,649 843,428
Finished Goods...................................................... 1,902,496 614,896
---------- ----------
$5,134,936 $3,536,190
========== ==========
</TABLE>
3. Debt
On February 19, 1998, the Company completed a $2 million bridge loan
("Bridge Loan") with Transamerica and provided for a single advance. This loan
matures on the earlier of: 1) December 31, 1998; 2) a public offering by the
Company of its equity securities which yields cash proceeds at least equivalent
to the amount of the Bridge Loan; 3) the closing of a sale by the Company of its
Horizon product line and team with net cash proceeds at least equivalent to the
amount of the Bridge Loan; or 4) the second advance to the Company of $3 million
under the Term Loan. The Bridge loan interest rate is the prime rate plus 2.5%,
including all terms and conditions and affirmative negative conenants.
As of March 31, 1998, $2,897,437 was outstanding of the Term Loan and there
were no outstanding advances on the Revolver; however, the Company could have
borrowed approximately $4 million under the Revolver as of March 31, 1998.
4. Adoption of Statements of Financial Accounting Standards
The Company adopted Statement of Financial Accounting Standards ("SFAS")
No. 130, "Reporting Comprehensive Income". SFAS No. 130 establishes standards
for reporting and displaying comprehensive income and its components in a
full-set of general purpose financial statements and requires reclassification
of prior-period financial statements. For the quarters ending March 31, 1998 and
1997, net income was equal to comprehensive income as there were no items
classified as other comprehensive income.
<PAGE>
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
--------------------------------------------------------------------------------------
COMPARISON OF RESULTS OF OPERATIONS
- -----------------------------------
The following table sets forth, for the periods indicated, the percentage
relationship that certain items of the Company's results of operations bear to
total sales.
Three months ended
March 31,
1998 1997
---------- ----------
Sales 100% 100%
Cost of goods sold 60 53
----------- -----------
Gross profit 40 47
Expenses
Sales and marketing 20 25
General and administrative 14 21
Research and development 33 59
----------- -----------
Total Operating Expenses 67 105
Loss from operations (27) (58)
Interest Income * 3
Interest Expense (2) *
Other (expense) Income * *
----------- -----------
Loss before income taxes (29) (55)
Income taxes - -
=========== ===========
Net Loss (29)% (55)%
=========== ===========
* Total is less than 1%
</TABLE>
<PAGE>
Three months ended March 31, 1998 as Compared to three months ended March
- --------------------------------------------------------------------------------
31,1997
- -------
Net Sales
Worldwide sales were $6,276,617 for the three months ended March 31, 1998,
an increase of $1,757,091 compared to net sales of $4,519,526 for the three
months ended March 31, 1997. Domestic sales were $5,592,581 for the three months
ended March 31, 1998 compared to $4,262,421 for the three months ended March 31,
1997. The increase of $1,330,160 in domestic sales is attributable to the
increase in T1-Modem+ sales to OEM customers. Export sales were $684,036 for the
first quarter of 1998 compared to $257,105 for the first quarter of 1997. The
increase in export sales is a result of an increase in T1 Modem+ sales to new
OEM customers.
Gross Profit
Gross profit increased by $391,859 or 18% to $2,518,493 for the three
months ended March 31, 1998 from $2,126,634 for the three months ended March 31,
1997. Gross profit margin was 40% for the three months ended March 31, 1998
compared to 47% for the three months ended March 31, 1997. The decrease in gross
profit margin as a percent of sales reflects the continued shift in product mix
from shipments of higher margin DSP OEM product in the first quarter of 1997 to
shipments of the Company's T1-Modem products to OEM customers which carry lower
gross margins.
Sales and marketing
Sales and marketing expenses were $1,274,434 or 20% of sales for the three
months ended March 31, 1998 compared to $1,148,424 or 25% of sales for the three
months ended March 31,1997. The increase of $126,010 or 11% reflects an increase
in salaries and related expenses as the Company hired a Vice President of Sales
and expanded its sales force to a more senior data communications group over the
last six months of 1997 and also an increase in the number of trade shows that
the Company participated in during the first quarter of 1998. Such increases
were offset by a reduction in advertising and marketing expenses related to the
Company's DSP OEM products.
General and administrative
General and administrative expenses were $869,348 for the three months
ended March 31, 1998 compared to $943,645 for the three months ended March 31,
1997. The decrease of $74,297 reflects a reduction in salaries and related
expenses related to the resignation of the Company's Vice Chairman in September
1997 and a reduction in recruiting and relocation expense.
<PAGE>
Research and Development
Research and development expenses were $2,085,737 or 33% of sales for the
three months ended March 31, 1998 compared to $2,665,376 or 59% of sales for the
three months ended March 31, 1997, a decrease of $579,639 or 22%. Salaries and
related expenses decreased by $123,000 reflecting a decrease in engineers
related to certain development projects. Additionally, expenses related to
outside contract labor decreased by approximately $361,000 reflecting the
discontinuance of certain research and development projects related to forward
looking technologies.
Liquidity and Capital Resources
On June 12, 1997, the Company announced it had completed a $10 million
credit facility with Transamerica Business Credit Corporation's Technology
Finance Division, of Farmington, Connecticut. This facility provides a
five-year, $6 million term loan and a three-year, $4 million revolving credit
facility ("Revolver"). Upon closing, the Company took down $3 million under the
term loan. Further advances of up to $4 million can be extended upon achievement
of any one of the following milestones: positive (greater than 0) operating
profit and net income from continuing operations for the most recently ended
fiscal quarter; receipt by the Company of at least $7 million from the issuance
and sale of shares of its capital stock; or the Company shall have received net
proceeds of at least $7 million from the sale of the Horizon product line and
team; or the Company shall have entered into a significant joint venture with TI
as a result of which, the Company's research and development expenses would be
reduced and the Company's revenues and profits increased as reasonably
determined by Transamerica; or the Company shall have entered into such other
agreement or consummated such other transaction and as a result thereof, the
Company's research and development costs will be materially reduced and the
Company's revenues and profits materially increased as reasonably determined by
Transamerica. As of March 31, 1998, the Company had not achieved any of the
above milestones, and it is unlikely that the Company will achieve the last
milestone in the foreseeable future. The Revolver provides for up to $4.0
million in advances based on a formula of eligible accounts receivable and
inventory. As of March 31, 1998, the Company could have borrowed approximately
$4.0 million under this Revolver. This Revolver can be increased to $7.0 million
in the event that the Company achieves one of the milestones, but elects not to
draw the second advance under the term loan. Additionally, the Revolver can be
extended for two additional one-year periods. As of March 31, 1998, there was
$2,897,437 outstanding under the term loan and there were no outstanding
advances under the Revolver. The Company does anticipate drawing against the
Revolver for working capital purposes during the second quarter of 1998.
Payments of principal and interest are due in arrears in twenty consecutive
quarterly installments, payable on the first day of each calendar quarter
commencing October 1, 1997. The interest rate under the term loan is based on
the weekly average of the interest rate on five year U.S. Treasury Securities
for stated periods plus an agreed upon number of additional basis points. At
March 31, 1998, the interest rate in effect was 11.66%. The interest rate in
effect under the Revolver is based on the prime rate plus 2.50%.
<PAGE>
In addition, the credit agreement includes a material adverse effect
clause, whereby Transamerica can accelerate the due date of the loan if certain
changes in conditions (financial or otherwise) are deemed to have a material
adverse effect on the Company or its ability to meet its obligations.
In anticipation of noncompliance of certain financial covenants at December
31, 1997, Transamerica gave the Company an unconditional waiver with respect to
each of these financial covenants for the fiscal year ended December 31, 1997,
with the exception of the accounts receivable collection period for which the
Company was in compliance as of December 31, 1997. Such waived covenants are as
follows: minimum tangible net worth of $10 million as of December 31, 1997;
minimum gross profit margin of 45% for the fiscal year ended December 31, 1997;
a maximum operating loss percentage of (30%) for the fiscal year ended December
31, 1997; and a net loss before taxes percentage of (30%) for the fiscal year
ended December 31, 1997. The Company was not in compliance with such covenants
as of December 31, 1997.
In anticipation of non-compliance with certain of the covenants, the
Company has obtained an additional waiver from Transamerica of selected
covenants and/or revised covenants for the terms of the debt agreement. The
covenants that were waived for fiscal year 1998 are as follows: tangible net
worth, operating profit percentage and net income before taxes percentage. In
addition, the credit agreement also amended some of the financial covenants as
follows: gross profit margin was amended to 35% from 50% for the fiscal years
ended December 31, 1998 and thereafter; operating profit percentage was amended
to 7.5% from 20% for the fiscal years ended December 31, 1999 and thereafter;
and net income before taxes was amended to 5% from 15% for the fiscal years
ended December 1999 and thereafter. Transamerica also amended the debt agreement
to delete the cash on hand covenant, which allows the Company to use all of its
cash, as needed. Transamerica has reviewed the Company's forecasted balance
sheets and statements of operations and cash flows dated March 20, 1998 for the
calendar years 1998 and 1999, and does not deem such information contained in
such documents as a material adverse event. Management believes such forecasted
balance sheets and statements of operations and cash flows are reasonable and
the likelihood of the occurrence of a material adverse event is remote.
On February 19, 1998, the Company announced it had completed a $2 million
bridge loan ("Loan") with Transamerica. This facility provided for a single
advance which was provided to the Company on February 19, 1998. This loan
matures on the earliest of: 1) December 31, 1998; 2) a public offering by the
Company of its equity securities which yields cash proceeds at least equivalent
to the amount of the Loan; 3) the closing of a sale by the Company of its
Horizon product line and team with net cash proceeds at least equivalent to the
amount of the Loan; or, 4) the second advance to the Company of $3.0 million
under the term loan. The interest rate under the Loan is the prime rate plus
2.5%. The Loan is subject to the existing $10 million credit facility loan and
security agreement, including all terms and conditions and affirmative and
negative covenants.
<PAGE>
During the three months ended March 31,1998, there was a net decrease in
cash and cash equivalents of $1,659,351. At March 31, 1998, cash and cash
equivalents amounted to $986,513. Working capital amounted to $4,256,055 at
March 31, 1998 compared to $4,329,018 at December 31, 1997.
Net cash used in operating activities for the three months ended March 31,
1998 amounted to $4,994,821. The negative cash flows from operations was
primarily the result of the Company's net loss of $1,798,930, as well as
increases in accounts receivable and inventory of $3,522,246 and $1,653,746,
respectively. The increase in accounts receivable is a result of approximately
$3.6 million in shipments occurring in the last month of the first quarter. The
increase in inventory occurred in finished goods in response to planned
shipments against open orders during the second quarter of 1998. Such working
capital increases were partially offset by an increase in accounts payable of
$1,775,887.
Net cash used in investing activities for the three months ended March 31,
1998 amounted to $223,372 for purchases of computer and peripheral equipment
related to engineering staff and final test and assembly in manufacturing.
Net cash provided by financing activities for the three months ended March
31, 1998 amounted to $3,558,842, reflecting proceeds of $2,000,000 received as a
result of the Transamerica bridge loan and $1,628,552 in proceeds from the
exercise of common stock options and warrants.
Other Matters
In January 1996 the Company formed a Communications Systems team to begin
development of an ADSL carrier class product targeting the needs of major
telecommunication and network service providers. To date, the team has developed
Horizon, a carrier class product which is currently in laboratory environments
at a certain network service provider. The Company's recent strategic decisions
to focus on the Remote Access Server ("RAS") marketplace has led to the
Company's announcing in November 1997 its intent to seek a buyer for the Horizon
product and team. The ADSL carrier class product does not fit well into the
Company's markets and customer base.
The Company has incurred approximately $7.0 million in costs and expenses
on a cumulative basis from January 1, 1996 through March 31, 1998, related to
this product effort. The Company expects to incur approximately $1.0 million of
costs and expenses in the second quarter of 1998 with respect to this product.
The Company is currently in discussion with two companies concerning a purchase
of the Horizon product and team, but no definitive sale agreement has been
reached as of May 4, 1998.
For the foregoing reasons, the Company incurred a net loss of $(1,798,930)
for the three months ended March 31, 1998 compared to a net loss of $(2,517,897)
for the three months ended March 31, 1997.
<PAGE>
Statements contained in this Form 10Q that are not historical facts are
forward looking statements that are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Forward looking
statements involve risks and uncertainties, including the timely development and
acceptance of new products, the impact of competitive products and pricing,
changing market conditions and the other risks detailed in the Company's
prospectus and from time to time in other filings. Actual results may differ
materially from those projected. These forward looking statements represent the
Company's judgement as of the date of this document. The Company disclaims,
however, any intent or obligation to update these forward looking statements.
Part II. Other Information
- -------------------------------
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
a) Exhibits -
Exhibit 27 - Financial Data Schedule (filed electronically)
b) Reports on Form 8-K - None.
<PAGE>
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Ariel Corporation
--------------------------
Registrant
/S/ GERARD E. DORSEY
--------------------------
Gerard E. Dorsey
Chief Financial Officer
and Principal Accounting
Officer
Date: May 13, 1998
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000911167
<NAME> ARIEL CORPORATION
<S> <C>
<PERIOD-TYPE> 3-MOS
<PERIOD-END> MAR-31-1998
<FISCAL-YEAR-END> DEC-31-1998
<CASH> 986,513
<SECURITIES> 0
<RECEIVABLES> 5,178,626
<ALLOWANCES> 202,446
<INVENTORY> 5,134,936
<CURRENT-ASSETS> 11,604,389
<PP&E> 5,261,753
<DEPRECIATION> 2,997,102
<TOTAL-ASSETS> 14,636,311
<CURRENT-LIABILITIES> 7,348,334
<BONDS> 0
0
0
<COMMON> 9,673,250
<OTHER-SE> 4,990,540
<TOTAL-LIABILITY-AND-EQUITY> 14,636,311
<SALES> 6,276,617
<TOTAL-REVENUES> 6,276,617
<CGS> 3,758,124
<TOTAL-COSTS> 3,758,124
<OTHER-EXPENSES> 4,229,519
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 97,163
<INCOME-PRETAX> (1,798,930)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,798,930)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,798,930)
<EPS-PRIMARY> (0.19)
<EPS-DILUTED> (0.17)
</TABLE>
