SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark one)
- ------
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
X EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED AUGUST 31, 1997.
- ------
OR
- ------
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO ______.
- ------
Commission file number: 1-12680
ORYX TECHNOLOGY CORP.
(Exact name of small business issuer as specified in its charter)
Delaware 22-2115841
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
47341 Bayside Parkway
Fremont, California 94538
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (510) 249-1144
Check 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 ___
The number of shares outstanding of the issuer's Common Stock as of
August 31, 1997 was 13,124,821.
<PAGE>
ORYX TECHNOLOGY CORP.
FORM 10-QSB
Table of Contents
PART I. FINANCIAL INFORMATION Page
Item 1. Condensed Consolidated Financial Statements and Notes
to Condensed Consolidated Financial Statements .................... 3
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations ............................... 8
PART II. OTHER INFORMATION
Item 3. Other information ................................................ 11
Item 4. Exhibits and Reports on Form 8-K ................................. 11
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ORYX TECHNOLOGY CORP.
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<S> <C> <C>
August 31, February 28,
1997 1997
------------------ ------------------
ASSETS
Current assets:
Cash and cash equivalents $ 45,000 $ 3,080,000
Accounts receivable,net 1,908,000 3,457,000
Inventories 4,037,000 4,795,000
Other current assets 282,000 171,000
--------- ----------
Total current assets 6,272,000 11,503,000
Property and equipment, net 2,576,000 2,674,000
Intangible assets, net 678,000 755,000
Other assets 334,000 380,000
--------- ----------
$9,860,000 $ 15,312,000
========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Borrowings $ 912,000 $ 215,000
Capital lease obligations 34,000 137,000
Accounts payable 1,774,000 2,686,000
Accrued liabilities 2,308,000 1,951,000
----------------- ---------
Total current liabilities 5,028,000 4,989,000
Capital lease obligations, less current portion
43,000 184,000
Borrowings, less current portion 262,000 705,000
--------- -------
Total liabilities 5,333,000 5,878,000
--------- ---------
Mandatorily redeemable securities 732,000 637,000
------- -------
Stockholders' equity:
Series A 2% Convertible Cumulative Preferred
Stock, 4,500 shares issued and outstanding 107,000 107,000
Common Stock, 13,124,821 and 12,968,581 shares
15,000 13,000
- ----------
issued and outstanding, respectively
Additional paid in capital 19,132,000 18,920,000
Accumulated deficit (15,459,000) (10,243,000)
------------ ------------
Total stockholders' equity 3,795,000 8,797,000
--------- ---------
$ 9,860,000 $ 15,312,000
============= ============
</TABLE>
See the accompanying notes to these condensed consolidated financial
statements.
ORYX TECHNOLOGY CORP.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<S> <C> <C> <C> <C>
Three Months Ended Six Months Ended
August 31, August 31,
-------------------------------- --------------------------------
1997 1996 1997 1996
--------------- -------------- --------------- --------------
Revenue $5,210,000 $6,973,000 $9,701,000 $13,778,000
Cost of sales 4,822,000 4,639,000 8,384,000 9,059,000
--------------- -------------- --------------- --------------
Gross profit 388,000 2,334,000 1,317,000 4,719,000
--------------- -------------- --------------- --------------
Operating expenses:
Marketing and selling 580,000 433,000 1,012,000 877,000
General and administrative 946,000 1,058,000 2,398,000 1,865,000
Research and development 1,403,000 471,000 2,933,000 1,311,000
--------------- -------------- --------------- --------------
Total operating expenses 2,929,000 1,962,000 6,343,000 4,053,000
--------------- -------------- --------------- --------------
Income (loss) from operations (2,541,000) 372,000 (5,026,000) 666,000
Interest (income) expense, net 64,000 (8,000) 72,000 8,000
Equity in losses of investee - - - 20,000
--------------- -------------- --------------- --------------
Income (loss) before income taxes (2,605,000) 380,000 (5,098,000) 638,000
Provision for income taxes 20,000 70,000 23,000 92,000
--------------- -------------- --------------- --------------
Net income (loss) (2,625,000) 310,000 (5,121,000) 546,000
Dividends and accretion 46,000 (2,000) 95,000 (7,000)
--------------- -------------- --------------- --------------
Net income (loss) attributable to
common shares ($2,671,000) $308,000 ($5,216,000) $539,000
=============== ============== =============== ==============
Net income (loss) per common share: ($0.21) $0.02 ($0.40) $0.04
=============== ============== =============== ==============
Weighted average common shares
and equivalents outstanding: 13,124,821 14,707,079 13,085,292 14,205,941
=============== ============== =============== ==============
</TABLE>
See the accompanying notes to these condensed consolidated financial statements.
ORYX TECHNOLOGY CORP.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW
(UNAUDITED)
<TABLE>
<S> <C> <C>
Six Months Ended August 31,
----------------------------------------
----------------- ------------------
1997 1996
----------------- ------------------
Cash flow from operating activities:
Net income (loss) ($5,121,000) $546,000
Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Equity in losses of investee - 20,000
Depreciation and amortization 469,000 236,000
Changes in assets and liabilities:
Accounts receivable, net 1,549,000 (535,000)
Inventories 758,000 (534,000)
Other current assets (111,000) 126,000
Other assets 46,000 (103,000)
Accounts payable (912,000) (1,662,000)
Accrued liabilities 357,000 612,000
----------------- ------------------
Net cash provided by (used in) operating activities (2,965,000) (1,294,000)
----------------- ------------------
Cash flows from investing activities:
Proceeds from disposition of assets 145,000 -
Capital expenditures (439,000) (952,000)
Investment in DAS Devices, Inc. - (27,000)
----------------- ------------------
Net cash used in investing activities (294,000) (979,000)
----------------- ------------------
Cash flows from financing activities:
Repayment of bank line of credit - (352,000)
Repayment of notes payable to stockholders - (400,000)
Proceeds from issuance of Common Stock/Warrants, net 208,000 1,069,000
Proceeds from inventory line of credit 767,000 -
Repayment of long-term debt and capital lease obligations (757,000) (923,000)
Other 6,000 -
----------------- ------------------
----------------- ------------------
Net cash provided by financing activities 224,000 (606,000)
----------------- ------------------
Net decrease in cash and cash equivalents (3,035,000) (2,879,000)
Cash and cash equivalents at beginning of period 3,080,000 3,939,000
================= ==================
Cash and cash equivalents at end of period $45,000 $1,060,000
================= ==================
</TABLE>
See the accompanying notes to these condensed consolidated financial statements.
ORYX TECHNOLOGY CORP.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - GENERAL
The information contained in the following Notes to Condensed Consolidated
Financial Statements is condensed from that which would appear in the annual
consolidated financial statements; accordingly, the financial statements
contained herein should be reviewed in conjunction with the Company's Form
10-KSB, as amended, for the year ended February 28, 1997.
The results of operations for the interim periods presented are not necessarily
indicative of the results expected for the entire year.
The financial information for the periods ended August 31, 1997, and 1996
included herein is unaudited but includes all adjustments which, in the opinion
of management of the Company, are necessary to present fairly the financial
position of the Company at August 31, 1997, and the results of its operations
and its cash flows for the three and six month periods ended August 31, 1997 and
1996.
NOTE 2 - INVENTORIES
The components of inventory were as follows:
August 31, February 28,
1997 1997
----------------- -------------------
Raw materials $2,448,000 $ 3,090,000
Work-in-process 163,000 153,000
Finished goods 1,426,000 1,552,000
================= ===================
$4,037,000 $ 4,795,000
================= ===================
NOTE 3 - NET INCOME (LOSS) PER SHARE
Shares used in the computation of net loss per share for the three and six month
periods ended August 31, 1997 was determined using the treasury stock method.
Under the treasury stock method, net income (loss) per common and common
equivalent share is computed using the weighted average number of shares and
equivalents outstanding during the respective period. Common stock equivalents
were excluded from the calculation of loss per share for the three and six
months ended August 31, 1997 as their effect was antidilutive.
Shares used in the computation of net income per share for the three and six
month periods ended August 31, 1996 was determined using the modified treasury
stock method. Under the modified treasury stock method, certain adjustments can
occur with respect to both weighted average shares and net income amounts
utilized in the calculations of earnings per share. The modified treasury stock
method can result in different earnings per share than those calculated using
the treasury stock method. Under the modified treasury stock method, all
weighted average common equivalents are assumed to be exercised, and the
resulting proceeds are applied in steps. First, stock is assumed to be
repurchased up to a maximum of 20% of the actual outstanding shares. Net income
is then adjusted to reflect the after tax effect of using the remaining proceeds
to acquire U.S. government securities. Common stock and common stock equivalents
for the three and six month periods ended August 31, 1996 included shares
issuable under stock options and warrants outstanding and shares issuable upon
conversion of preferred stock. Additionally, net income in the calculation of
earnings per share for the three and six month periods ended August 31, 1996
includes an adjustment to reflect the earnings attributable to holders of
dilutive securities in subsidiaries of the Company.
NOTE 4 - NEW ACCOUNTING STANDARD
In February 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 128, "Earnings Per Share." This
statement will be effective for the Company's fiscal year ending February 28,
1998. Under SFAS No. 128, primary earnings per share is replaced by basic
earnings per share and fully diluted earnings per share is replaced by diluted
earnings per share. SFAS No. 128 will require the retroactive restatement of all
previously reported amounts upon adoption. Had the Company applied the
provisions of SFAS No. 128 during the interim periods presented herein, basic
earnings per share for the three and six months ended August 31, 1996 would have
been $0.03 and $0.06, respectively, and dilutive earnings per share for those
periods would have been equivalent to primary earnings per share. Earnings per
share reported for the three and six months ended August 31, 1997 would not have
changed under SFAS No. 128.
NOTE 5 - BORROWINGS
Under the Company's Revolving Account Transfer and Purchase Agreement (the
"Facility") which was executed in May 1997 with a financial institution (the
"Lender"), the Company sells all trade accounts receivable and has the option to
draw advances up to 85% of eligible accounts up to $4,000,000. Accordingly,
accounts receivable at August 31, 1997 were due from the lender under the
Facility.
To the extent that advances are drawn against eligible outstanding accounts
receivable, the Company reduces the balance of accounts receivable. The Company
must pay interest on such advances in the form of a discount equal to the
lender's base rate plus 3.5% per annum. At August 31, 1997, advances drawn
against outstanding eligible accounts receivable under the Facility totaled
$1,714,000.
NOTE 6 - SUBSEQUENT EVENTS
In September 1997, the Company sold 2,000,000 Series A Preferred shares of DAS
Devices, Inc. for a total consideration of $1,400,000. The Company still holds
2,000,000 Series A Preferred shares and 800,000 shares of Common Stock of DAS
Devices, Inc.
In September 1997, the Company's SurgX subsidiary amended its License Agreement
with McGraw-Edison (Bussmann). This amendment extends the exclusive license for
SurgX liquid from ten to twenty years and adds a twenty year exclusive license
for SurgTape(TM). In consideration for this amendment, McGraw-Edison will make
five payments from October 1997 through February 1998 totaling $1,700,000,
representing non-refundable prepaid minimum royalties for years one through four
of the License Agreement.
<PAGE>
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of
Operations
This discussion and analysis is designed to be read in conjunction with the
Management's Discussion and Analysis set forth in the Company's Form 10-KSB, as
amended, for the fiscal year ended February 28, 1997.
Some of the information in this report, including the discussion of the
Company's strategy, and various statements concerning the Company's plans for
expansion and expectations for growth for the Company constitute forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
Actual results could differ materially from those projected in the
forward-looking statements as a result of the risks and uncertainties described
under the caption "Risk Factors" set forth in Part I of the Company's Form
10-KSB, as amended, and those identified by the Company from time to time in
other filings with the Securities and Exchange Commission (the "Commission"),
press releases and other communications.
In addition to an analysis of recent and historical financial results, the Form
10-KSB, as amended, includes an analysis of certain of the risks of the
Company's business, including risks relating to the competitive environment in
which the Company operates. Although the Company has sought to identify the most
significant risks to its business, the Company cannot predict whether or to what
extent any of such risks may be realized nor can there be any assurance that the
Company has identified all possible problems which the Company might face. All
investors should carefully read the Form 10-KSB, as amended, together with this
Form 10-QSB, and consider all such risks before making an investment decision
with respect to the Company's stock.
Business Segments
The Company has organized its operations into three operating segments: Power
Products, Instruments and Materials, and SurgX. In addition, a Corporate segment
includes certain activities that are not directly related to any other
operations. Three segments and related businesses are as follows:
Segment/Subsidiary Businesses
Oryx Power Products Corporation - Power Conversion Products
- Contract Manufacturing
Oryx Instruments and Materials - Material Analysis and Test Equipment
Corporation - Specialized Materials
- Contract R&D
SurgX Corporation - Surge Protection Components
Results of Operations
For the quarter ended August 31, 1997, revenues decreased by $1,763,000 or 25%
from $6,973,000 for the quarter ended August 31, 1996, to $5,210,000 for the
quarter ended August 31, 1997. Revenues for the six months ended August 31, 1997
decreased $4,077,000 or 30% from $13,778,000 for the six months ended August 31,
1996 to $9,701,000 for the six months ended August 31, 1997. The decrease in
revenues for both periods, partially offset by increases in sales of the
Company's test equipment and specialized materials, was primarily attributable
to the termination of shipments of a power supply product to Pitney Bowes, which
represented 47% and 48% of the Company's consolidated revenues for the quarter
ended and six month period ended August 31, 1996, respectively. The Company
anticipates quarterly revenues to increase, compared to the current quarter, by
the fourth quarter of fiscal year 1998 as the TTS 2000 process monitoring tool
continues to achieve market acceptance and Oryx Power Products successfully
ships to new OEM customers. However, there can be no assurances that any
increase in revenues will be realized or even that the current quarterly revenue
level will be maintained. The Company expects revenues for fiscal year 1998 to
be lower than those for fiscal year 1997 as any anticipated increases in
revenues will be insufficient to offset the Pitney Bowes revenue loss.
The Company's gross profit decreased from $2,334,000 for the quarter ended
August 31, 1996, to $388,000 for the quarter ended August 31, 1997, representing
a decrease of $1,946,000 or 83%. Gross profit decreased by $3,402,000 or 72%
from $4,719,000 for the six months ended August 31, 1996 to $1,317,000 for the
six months ended August 31, 1997. The decrease in gross profit for both periods
in 1997 as compared to 1996 was principally attributable to the reduction in
shipments to Pitney Bowes.
Marketing and selling expenses increased from $433,000 for the quarter ended
August 31, 1996, to $580,000 for the quarter ended August 31, 1997, representing
an increase of $147,000 or 34%. Marketing and selling expenses increased by
$135,000 or 15% from $877,000 for the six months ended August 31, 1996 to
$1,012,000 for the six months ended August 31, 1997. The increase in both
periods was primarily due to increased sales and marketing activities associated
with the Company's TTS 2000 Process Monitoring Tool. General and administrative
expenses decreased from $1,058,000 for the quarter ended August 31, 1996, to
$946,000 for the quarter ended August 31, 1997, representing a decrease of
$112,000 or 11%. General and administrative expenses increased by $533,000 or
29% from $1,865,000 for the six months ended August 31, 1996 to $2,398,000 for
the six months ended August 31, 1997. The decrease in general and administrative
expenses for the three months ended August 31,1997 was primarily attributable to
lower professional service fees. The increase in general and administrative
expenses for the six months ended August 31, 1997, was primarily due to
increases in costs associated with the Company's objective of developing an
infrastructure to support each of the subsidiaries and separation costs
associated with management changes.
Research and development expenses increased from $471,000 in the quarter ended
August 31, 1996, to $1,403,000 for the quarter ended August 31, 1997,
representing an increase of $932,000 or 198%. Research and development expenses
increased $1,622,000 or 124% from $1,311,000 for the six months ended August 31,
1996 to $2,933,000 for the six months ended August 31, 1997. Research and
development spending increased as a result of continued developmental efforts
with respect to diagnostic test equipment and surge protection devices being
undertaken primarily in the form of increased headcount, outside professional
services and prototype material cost. Also, during the six months ended August
31, 1996, SurgX received $355,000 in customer development payments compared to
$30,000 for the six months ended August 31, 1997. These development payments
were utilized to offset research and development costs.
Operating losses are anticipated to continue through at least the fourth quarter
of fiscal 1998 and there can be no assurance that any anticipated growth in
quarterly revenues and improvements in gross profits will be realized. The
provision for income taxes of $20,000 for the three months ended August 31, 1997
and $23,000 for the six months ended August 31, 1997 is based upon the annual
estimated state franchise taxes and foreign tax provisions. No provision for
federal income taxes was provided because of losses previously incurred and
anticipated losses for fiscal year 1998.
Liquidity and Capital Resources
The Company's working capital decreased by $5,270,000 from a surplus of
$6,514,000 at February 28, 1997 to a surplus of $1,244,000 at August 31, 1997,
primarily as a result of operating losses. The ratio of current assets to
current liabilities was 2.30:1 at February 28, 1997 and 1.25:1 at August 31,
1997.
Cash and cash equivalents decreased by $3,035,000 from $3,080,000 at February
28, 1997 to $45,000 at August 31, 1997. The decrease in cash was primarily
attributable to cash used in operations of $2,965,000 resulting from the
Company's net loss offset by non-cash items and working capital changes.
Specifically, the Company's liquidity position benefited from the utilization of
its Revolving Account Transfer and Purchase Agreement under which the Company
had received advances against eligible accounts receivable of approximately
$1,700,000. In addition to operating activities and investing activities, the
pay-down of certain loan agreements were financed by draws aggregating $767,000
against the Company's Inventory Line of Credit. Available borrowing capacity
under the Inventory Line of Credit and the Revolving Account transfer totaled
$1,087,050 at August 31, 1997.
In September 1997, the Company: (1) sold 42% of its investment in DAS Devices,
Inc. for a total sales price of $1,400,000, (2) amended the terms of an existing
license agreement between SurgX and McGraw-Edison (Bussmann) providing for
funding of $1,700,000 over the next five months, and, (3) was awarded a
$1,500,000 matching funds development contract, providing for $750,000 of
funding from the Ballistic Missile Defense Organization. Proceeds from these
activities will be used to support development projects and fund the Company's
continuing operations.
The Company anticipates operating losses to continue through the end of this
fiscal year and is currently exploring a number of alternatives to improve the
Company's liquidity position including, but not limited to, cost reduction
measures, asset or technology sales and potential debt or equity private
placement offerings. Although management believes that sufficient funding and/or
cost savings alternatives exist, there can be no assurance that such
transactions or measures can be effected in time to meet the Company's needs, or
at all, or that any funding transactions will be offered on terms acceptable to
the Company.
<PAGE>
PART II
OTHER INFORMATION
Item 3. Other Information
On August 7, 1997 Ronald Spaight resigned as President of Oryx Power
Products Corporation. Mitchel Underseth, the Company's Chief Financial Officer,
has been appointed to serve as President of Oryx Power Products
Corporation.
Item 4. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit No. Description of Document
11.1 Schedule of Computation of Earnings Per Share
27.1 Financial Data Schedule
(b) Reports on Form 8-K
During the quarter ended August 31, 1997, the Company filed no
Current Reports on Form 8-K.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
ORYX TECHNOLOGY CORP.
Dated: October 14 , 1997 By: /s/ Philip J. Micciche
----------------------
Philip J. Micciche
Principal Executive Officer
/s/ Mitchel Underseth
----------------------
Mitchel Underseth
Principal Financial and
Accounting Officer
<PAGE>
ORYX TECHNOLOGY CORP.
EXHIBIT 11.1
SCHEDULE OF COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<S> <C> <C> <C> <C>
Three months ended Six months ended
August 31, August 31, August 31, August 31,
1997 1996 1997 1996
--------------- --------------- ---------------- ----------------
Net Income (loss) attributable to common holders $(2,671,000) $308,000 $(5,216,000) $539,000
Deduct earnings attributable to holders of dilutive
subsidiary stock options (41,000) (83,000)
Add interest income on reinvested option and warrant
exercise proceeds (as determined by the modified
treasury stock method), net of tax - 47,000 - 118,000
---------------- ---------- --------------- ---------
As adjusted $(2,671,000) $314,000 $(5,216,000) $574,000
=============== =============== ============== ============
Shares:
Number of weighted average common shares outstanding 13,124,821 10,274,302 13,085,292 9,826,530
Add effect of dilutive convertible preferred stock,
options and warrants (as determined by the modified
treasury stock method) - 4,432,777 - 4,379,411
-------------- ------------ ------------- -----------
As adjusted 13,124,821 14,707,079 13,085,292 14,205,941
========== ========== ========== ==========
Primary earnings (loss) per share $(0.21) $0.02 $(0.40) $0.04
======= ===== ======= =====
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Financial Statements of Oryx Technology Corp. for the six months ended August
31, 1997, and is qualified in its entirety by reference to such Financial
Statements.
</LEGEND>
<CIK> 000915355
<NAME> ORYX TECHNOLOGY CORP.
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> FEB-28-1997
<PERIOD-START> MAR-01-1997
<PERIOD-END> AUG-31-1997
<EXCHANGE-RATE> 1.00
<CASH> 45,000
<SECURITIES> 0
<RECEIVABLES> 2,148,000
<ALLOWANCES> 240,000
<INVENTORY> 4,037,000
<CURRENT-ASSETS> 6,272,000
<PP&E> 4,390,000
<DEPRECIATION> 1,814,000
<TOTAL-ASSETS> 9,860,000
<CURRENT-LIABILITIES> 5,028,000
<BONDS> 0
732,000
107,000
<COMMON> 15,000
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 9,860,000
<SALES> 9,701,000
<TOTAL-REVENUES> 9,701,000
<CGS> 8,384,000
<TOTAL-COSTS> 8,384,000
<OTHER-EXPENSES> 6,438,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 72,000
<INCOME-PRETAX> (5,193,000)
<INCOME-TAX> 23,000
<INCOME-CONTINUING> (5,216,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,216,000)
<EPS-PRIMARY> (0.40)
<EPS-DILUTED> (0.40)
</TABLE>