<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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 September 30, 1997
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-27024
METRO ONE TELECOMMUNICATIONS, INC.
(Incorporated under the laws of the State of Oregon)
8405 S.W. Nimbus Avenue, Beaverton, Oregon 97008
I.R.S. employer Identification Number 93-0995165
Telephone - Area Code (503) 643-9500
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 __
At November 7, 1997, 10,879,074 common shares were outstanding.
Transitional Small Business Disclosure Format (check one): Yes No X
--- ---
<PAGE>
METRO ONE TELECOMMUNICATIONS, INC.
INDEX TO FORM 10-QSB
Part I Financial Information Page No.
Condensed Statements of Operations (Unaudited)
Three and nine months ended September 30, 1997 and 1996 1
Condensed Balance Sheets
September 30, 1997 (Unaudited) and December 31, 1996 2
Condensed Statements of Cash Flows (Unaudited)
Nine months ended September 30, 1997 and 1996 3
Notes to Condensed Financial Statements 4-5
Management's Discussion and Analysis of Financial
Condition and Results of Operations 6-9
Part II Other Information
Item 6 Exhibits and Reports on Form 8-K 9
<PAGE>
METRO ONE TELECOMMUNICATIONS, INC.
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30, NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------- -------------------------------
1997 1996 1997 1996
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
Revenues $ 7,054,748 $ 4,416,820 $ 17,008,742 $ 13,161,256
Costs and expenses:
Direct operating 3,419,412 2,080,405 8,549,814 6,051,144
General and administrative 2,952,458 1,886,266 8,158,878 5,441,637
------------ ------------ ------------- -------------
6,371,870 3,966,671 16,708,692 11,492,781
------------ ------------ ------------- -------------
Income from operations 682,878 450,149 300,050 1,668,475
Other income (expense) 138,856 (56,275) 332,513 (214,797)
Interest and loan fees (77,405) (147,437) (262,324) (457,121)
------------ ------------ ------------- -------------
Income before income taxes 744,329 246,437 370,239 996,557
Income tax expense - 4,373 - 27,124
------------ ------------ ------------- -------------
Net income $ 744,329 $ 242,064 $ 370,239 $ 969,433
------------ ------------ ------------- -------------
------------ ------------ ------------- -------------
Net income per common and
common equivalent share $ .07 $ .03 $ .03 $ .11
------------ ------------ ------------- -------------
------------ ------------ ------------- -------------
</TABLE>
The accompanying notes are an integral part of this statement.
1
<PAGE>
METRO ONE TELECOMMUNICATIONS, INC.
CONDENSED BALANCE SHEETS
- -------------------------------------------------------------------------------
SEPTEMBER 30, DECEMBER 31,
-------------- -------------
1997 1996
(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents $ 11,373,101 $ 14,136,574
Accounts receivable 3,660,128 2,722,544
Other current assets 527,368 537,077
-------------- -------------
Total current assets 15,560,597 17,396,195
Furniture, fixtures and equipment, net 10,160,193 6,759,759
Other assets 740,237 373,391
-------------- -------------
$ 26,461,027 $ 24,529,345
-------------- -------------
-------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of capital
lease obligations $ 694,465 $ 736,941
Accounts payable and accrued
expenses 1,724,443 1,062,440
Other current liabilities 1,069,303 581,108
-------------- -------------
Total current liabilities 3,488,211 2,380,489
Capital lease obligations,
less current portion 671,565 1,168,204
-------------- -------------
4,159,776 3,548,693
-------------- -------------
Commitments and contingencies - -
Shareholders' equity:
Preferred stock, no par value;
10,000,000 shares authorized,
no shares issued or outstanding - -
Common stock, no par value;
50,000,000 shares authorized,
10,865,914 and 10,692,887 shares,
respectively, issued and
outstanding 37,201,800 36,251,440
Accumulated deficit (14,900,549) (15,270,788)
-------------- -------------
Net shareholders' equity 22,301,251 20,980,652
-------------- -------------
$ 26,461,027 $ 24,529,345
-------------- -------------
-------------- -------------
The accompanying notes are an integral part of this statement.
2
<PAGE>
METRO ONE TELECOMMUNICATIONS, INC.
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
- ------------------------------------------------------------------------------
NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------
1997 1996
------------ -----------
Cash flows from operating activities:
Net income $ 370,239 $ 969,433
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 1,555,820 898,800
Loss on disposal of fixed asset 84,692 3,544
Changes in certain assets and liabilities:
Accounts receivable (937,584) 422,285
Prepaid expenses and other assets (179,929) (22,462)
Accounts payable and accrued expenses 1,144,198 1,345,930
------------ -----------
Net cash provided by operating
activities 2,037,436 3,617,530
------------ -----------
Cash flows from investing activities:
Capital expenditures (4,944,546) (2,482,930)
Collections on notes receivable 2,392 2,371
------------ -----------
Net cash used in investing activities (4,942,154) (2,480,559)
------------ -----------
Cash flows from financing activities:
Repayment of capital lease obligations (539,115) (704,264)
Proceeds from issuance of bank debt - 550,000
Repayment of debt - (1,867,133)
Proceeds from issuance of long-term debt - 571,236
Proceeds from initial public offering,
net of expenses - 12,465,875
Proceeds from issuance of common stock
and exercise of warrants and stock options 680,360 2,611,454
------------ -----------
Net cash provided by financing
activities 141,245 13,627,168
------------ -----------
Net increase (decrease) in cash and
cash equivalents (2,763,473) 14,764,139
Cash and cash equivalents, beginning of period 14,136,574 1,148,822
------------ -----------
Cash and cash equivalents, end of period $ 11,373,101 $15,912,961
------------ -----------
------------ -----------
The accompanying notes are an integral part of this statement.
3
<PAGE>
METRO ONE TELECOMMUNICATIONS, INC.
NOTES TO CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
- ------------------------------------------------------------------------------
1. BASIS OF PRESENTATION
The interim financial data are unaudited, however, in the opinion of management,
the interim data include all adjustments, consisting only of normal recurring
adjustments, necessary for a fair statement of the results for the interim
periods. 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, although the Company believes that the disclosures included herein
are adequate to ensure that the information presented is not misleading.
The organization and business of the Company, accounting policies followed by
the Company and other information are contained in the notes to the Company's
audited financial statements contained in and filed as part of the Form 10-KSB,
filed with the Securities and Exchange Commission. This quarterly report should
be read in conjunction with the audited financial statements.
RECLASSIFICATION. Certain balances in the 1996 financial statements have been
reclassified to conform with 1997 presentation. Such reclassifications have no
effect on results of operations or shareholders' equity.
2. NET INCOME PER COMMON AND COMMON EQUIVALENT SHARE
Net income per common and common equivalent share is computed using the
weighted average number of common and dilutive common equivalent shares assumed
to be outstanding during the period. Common equivalent shares consist primarily
of options and warrants to purchase common stock.
3. COMMITMENTS AND CONTINGENCIES
The Company is party to various legal actions and administrative proceedings
arising in the ordinary course of business. The Company believes that the
disposition of these matters will not have a material adverse effect on its
financial position, results of operations or net cash flows.
4. BANK LINE OF CREDIT
The Company has a $3,000,000 Secured Operating Line of Credit with a commercial
bank. Under the terms of the agreement, outstanding borrowings bear interest at
prime rate plus 0.25 percent and all assets of the Company are pledged as
collateral. The agreement contains minimum net worth and working capital
requirements as well as certain other restrictive covenants, as defined by the
agreement, and prohibits the payment of cash dividends. Availability of the
unused portion of the line of credit is subject to borrowing base requirements
and compliance with loan covenants. At September 30, 1997, the Company had no
borrowings against this line of credit.
5. SUPPLEMENTAL CASH FLOW INFORMATION
Nine months ended September 30,
-------------------------------
1997 1996
----------- ------------
Cash paid for interest expense $ 250,706 $ 468,795
Conversion of debt into common stock - 1,400,000
Cash paid for equipment acquired by
capital lease - 678,877
Income taxes paid 1,300 -
Common stock issued in settlement
of litigation 270,000 -
4
<PAGE>
METRO ONE TELECOMMUNICATIONS, INC.
NOTES TO CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
- ------------------------------------------------------------------------------
6. ACCOUNTING PRONOUNCEMENTS
In February 1997, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 128, "Earnings Per Share," which established new standards for computing and
presenting earnings per share ("EPS"). SFAS No. 128 replaced the presentation
of a primary EPS with a basic EPS on the face of the income statement for
entities with complex capital structures, and additional disclosures regarding
the computation of EPS.
SFAS No. 128 will require changes in the computation and presentation of the
Company's EPS commencing with the financial statements for the year ending
December 31, 1997. Earlier application of this statement is not permitted.
However, if the Company computed its EPS for the three months ended September
30, 1997 and 1996 in a manner consistent with SFAS No. 128, the pro forma
amounts would have been as follows:
<TABLE>
<CAPTION>
For the Three Months Ended September 30, For the Nine Months Ended September 30,
---------------------------------------------- ----------------------------------------------
1997 1996 1997 1996
---------------------- --------------------- ----------------------- --------------------
Per Share Per Share Per Share Per Share
Shares Amount Shares Amount Shares Amount Shares Amount
---------- --------- --------- --------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Basic earnings per share 10,822,233 $0.07 9,256,941 $0.03 10,789,337 $0.03 8,631,764 $0.11
Diluted earnings per share 10,964,349 $0.07 9,528,021 $0.03 10,926,099 $0.03 8,868,641 $0.11
</TABLE>
In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive Income" and
SFAS No. 131, "Disclosures about Segments of an Enterprise and Related
Information." SFAS No. 130 establishes requirements for disclosure of
comprehensive income and becomes effective for the Company's fiscal year ending
December 31, 1998. SFAS No.131 establishes standards for disclosure about
operating segments in annual financial statements and selected standards for
related disclosures about products and services, geographic areas and major
customers. The Company believes the adoption of SFAS No. 130 and No. 131 will
have no material impact on current disclosures.
5
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
All statements and trend analyses contained in this item and elsewhere in
this report on Form 10-QSB relative to the future constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are subject to the business
and economic risks faced by the Company and the Company's actual results of
operations may differ materially from those contained in the forward looking
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The
Company undertakes no obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
Results of operations for the periods discussed below should not be
considered indicative of the results to be expected in any future period and
fluctuations in operating results may also result in fluctuations in the market
price of the Company's Common Stock. The Company's quarterly and annual
operating results have in the past and may in the future vary significantly
depending on factors such as increased competition and expiration of Enhanced
Directory Assistance ("EDA") contracts, the rapidly changing telecommunications
market, changes in pricing policies by the Company or its competitors, lengthy
sales cycles, lack of market acceptance or delays in the introduction of new
versions of the Company's product or features, the timing of the initiation of
wireless services in new market areas by telecommunications customers, and
general economic conditions.
OVERVIEW
The Company's revenue growth in the quarter primarily reflected the
ramp-up in call volume from PCS carriers that initiated service over the past
year. Net income for the quarter reflected this increased revenue and limited
activity related to the rollout of new call centers. Revenue and expenses in
the fourth quarter will be affected by, among other things, the timing of
the opening of new call centers and the initiation of service by carrier
customers under existing contracts.
The Company continues to expand its presence into new geographic markets
through existing call centers and the opening of new call centers. Call
centers located in the Sacramento and Dallas areas are in start-up phase and
projected to open in the fourth quarter of 1997. The Company expects to open
additional new call centers during 1998 as it continues to build out its
nationwide call center network. During the quarter, the company acquired
certain proprietary database technology from Microlytics, Inc. Further, the
Company expects that it will continue to devote resources to develop
technology, to provide for system redundancies and to upgrade its computer
and telephone switching equipment to implement technological improvements in
all of its call centers.
In the fourth quarter of 1997 and the first quarter of 1998, the
Company's two contracts with Bell Atlantic Nynex Mobile are scheduled to
conclude. Management believes that it is unlikely that its contracts with
Bell Atlantic Nynex Mobile will be extended or that new contracts will be
entered into. These two contracts accounted for 15.6 and 20.4 percent of
revenues in the third quarters of 1997 and 1996, respectively, and 18.3 and
21.7 for the nine months ended September 30, 1997 and 1996, respectively.
RESULTS OF OPERATION
The following table sets forth selected items of the Company's statements
of operations as a percentage of its revenues.
<TABLE>
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- -------------------------------
1997 1996 1997 1996
--------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues 100.0% 100.0% 100.0% 100.0%
Direct operating costs 48.5 47.1 50.3 46.0
General and administrative costs 41.9 42.7 48.0 41.4
Operating profit 9.7 10.2 1.8 12.7
</TABLE>
6
<PAGE>
COMPARISON OF THIRD QUARTER OF 1997 TO THIRD QUARTER OF 1996
Due exclusively to increased call volume, revenues increased 59.7% to $7.1
million from $4.4 million. Revenues from existing call centers, excluding new
and concluded contracts, grew approximately 22.2% and accounted for $0.9 million
of this increase while revenues from two new call centers accounted for $0.5
million of revenues in the third quarter of 1997.
Direct operating costs increased 64.4% to $3.4 million from $2.1 million.
The increase in direct operating costs was due primarily to increased call
volumes and the cost of opening and operating two additional call centers in
1997. In addition, due to the continuing build-out of the Company's national
call center network and introduction of its Enhanced Directory
Assistance-Registered Trademark- ("EDA") service into new markets, the
Company anticipates direct operating costs as a percentage of revenue to
increase from 1996 levels. The Company expects to open additional call
centers and enter into new markets during the remainder of 1997 and during
the year 1998. The costs associated with the start-up of a new call center
increase overall direct operating costs as a percentage of revenue as the
call center prepares to launch service and, once open, prior to efficient
utilization of data and personnel. In conjunction with the introduction of
service in a new market, regardless of whether a new call center is opened,
the Company may acquire additional listings and other data resources to serve
that market, often in advance of carrier customer service. Accordingly, the
Company may experience increased data costs without a corresponding increase
in revenue.
General and administrative costs increased 56.5% to $3.0 million from $1.9
million. As a percentage of revenues, general and administrative costs
decreased to 41.9% from 42.7% of revenues. This decrease resulted primarily
from increased call volumes in 1997 and associated improved operating
efficiencies. Depreciation and amortization increased by 67.6% to $579,719 from
$345,324 due primarily to the acquisition of new equipment for one of the two
new call centers and additional equipment for existing call centers.
Interest expense declined 47.5% to $77,405 from $147,437. This decline was
attributable solely to the reduction in average debt outstanding to $1.4 million
from $2.9 million.
Other income for the three months ended September 30, 1997 was $138,856 and
was substantially all interest income. Other expense for the three months ended
September 30, 1996 was $56,275, and consisted primarily of estimated litigation
settlement expenses of $125,400, offset by interest income of approximately
$72,180.
During the third quarter of 1997, the Company has recognized no tax expense
as it continues to reduce the deferred tax valuation allowance.
COMPARISON OF THE FIRST NINE MONTHS OF 1997 TO THE FIRST NINE MONTHS OF 1996
Due exclusively to increased call volumes, revenues increased 29.2% to
$17.0 million from $13.2 million. Revenues from existing call centers,
excluding new and concluded contracts, grew approximately 18.4% and accounted
for $2.1 million of this increase while revenues from two new call centers
accounted for $0.6 million.
Direct operating costs increased 41.3% to $8.5 million from $6.1 million.
As a percentage of revenues, direct operating costs increased to 50.3% from
46.0%. These increases were primarily due to increased personnel and data costs
required to serve PCS customers with recently initiated service and relatively
small call volumes. In addition, due to the continuing build-out of the
Company's national call center network and introduction of its EDA service into
new markets, the Company anticipates direct operating costs as a percentage of
revenue to increase from 1996 levels. The Company expects to open additional
new call centers and enter into new markets during the remainder of 1997 and
during 1998. The costs associated with the start-up of a new call center
increase overall direct operating costs as a percentage of revenue for a period
of time as the call center prepares to launch service and, once open, prior to
efficient utilization of data and personnel. In conjunction with the
introduction of service in a new market, regardless of whether a new call center
is opened, the Company may acquire additional listings and other data resources
to serve that market, often in advance of carrier customer service.
Accordingly, the Company may experience increased data costs without a
corresponding increase in revenue.
7
<PAGE>
General and administrative costs increased 49.9% to $8.2 million from $5.4
million. As a percentage of revenues, general and administrative costs
increased to 48.0% from 41.4%. These increases resulted primarily from
increased depreciation and amortization expense, expansion of technical and
support staff, the support of increased operational activity overall and costs
associated with the opening and operation of two additional call centers during
1997. Depreciation and amortization increased by 72.8% to $1,555,820 from
$898,800 due primarily to the acquisition of new equipment for one of the two
new call centers and additional equipment for existing call centers.
Interest expense declined 42.6% to $262,324 from $457,121. This decline
was attributable solely to the reduction in average debt outstanding to $1.6
million from $3.3 million for the nine months ended September 30, 1997 and 1996,
respectively.
Other income for the nine months ended September 30, 1997 was $332,513 and
consisted primarily of interest income of $450,981, offset by $84,692 of losses
on disposal of fixed assets and $20,950 of expenses for the early termination of
a facility lease upon relocation of a call center. Other expense for the nine
months ended September 30, 1996 was $214,797 and consisted primarily of
estimated litigation settlement expenses of approximately $280,323 and $33,195
related to the write-off of the remaining value of certain miscellaneous assets,
offset by interest income of $101,890.
During the nine months ended September 30, 1997, the Company has recognized
no tax expense as it continues to reduce the deferred tax valuation allowance.
LIQUIDITY AND CAPITAL RESOURCES
The Company's cash and cash equivalents are recorded at cost which
approximates their fair market value. As of September 30, 1997, the Company had
$11.4 million in cash and cash equivalents compared to $14.1 million at December
31, 1996, a decrease of $2.7 million primarily from the acquisition of
equipment.
Working capital was $12.1 million at September 30, 1997, compared to $15.0
at December 31, 1996. The decline was primarily due to the use of cash for
capital equipment acquisitions.
The Company has a $3.0 million secured operating line of credit with a
commercial bank. Availability of the unused portion of the line of credit is
subject to borrowing base requirements and compliance with loan covenants. At
September 30, 1997, the Company had no borrowing against the line of credit.
CASH FLOW FROM OPERATIONS. Net cash provided by operating activities for
the nine months ended September 30, 1997 was $2.0 million, resulting primarily
from net income and the effect of the noncash item, depreciation and
amortization. Two call centers, opened in 1997, primarily serve PCS customers
that have recently initiated service in some of their respective markets. Due
to the relatively small call volumes in these markets, the related call centers
were net users of cash, while most existing call centers contributed to cash
flow from operations during the nine months ended September 30, 1997.
CASH FLOW FROM INVESTING ACTIVITIES. Net cash used in investing activities
was $4.9 million and was primarily related to capital expenditures for system
redundancy capabilities, equipment upgrades to implement technological
improvements for certain locations, acquisitions for a new call center in the
New York area and relocation of two existing call centers.
CASH FLOW FROM FINANCING ACTIVITIES. Net cash provided by financing
activities was $141,245 which was primarily from the exercise of stock options
and warrants, offset by principal payments on existing capital leases.
FUTURE CAPITAL NEEDS AND RESOURCES. The Company's future needs for
financial resources include amounts for the purchase of equipment for the
technological and other upgrading of existing call centers, for the
establishment of new call centers and the funding of start-up losses for newly
opened call centers. The Company believes its existing capital resources and
cash generated from operations will be sufficient to meet its working capital
and capital expenditure requirements for the next twelve months.
8
<PAGE>
EFFECT OF INFLATION. Inflation was not a material factor affecting the
Company's business during the nine months ended September 30, 1997.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
There are no exhibits to this report.
(b) Reports filed on Form 8-K
There were no reports filed on Form 8-K in the third quarter ended
September 30, 1997.
9
<PAGE>
SIGNATURE
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.
METRO ONE TELECOMMUNICATIONS, INC.
Registrant
Date: November 13, 1997
Stebbins B. Chandor, Jr.
----------------------------
Stebbins B. Chandor, Jr.
Senior Vice President
Chief Financial Officer
Karen L. Johnson
----------------------------
Karen L. Johnson
Vice President
Controller
10
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
SEPTEMBER 30, 1997 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 11,373
<SECURITIES> 0
<RECEIVABLES> 3,660
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 15,561
<PP&E> 14,572
<DEPRECIATION> 4,412
<TOTAL-ASSETS> 26,461
<CURRENT-LIABILITIES> 3,488
<BONDS> 0
0
0
<COMMON> 37,202
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 22,301
<SALES> 17,009
<TOTAL-REVENUES> 17,009
<CGS> 0
<TOTAL-COSTS> 16,709
<OTHER-EXPENSES> (333)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 262
<INCOME-PRETAX> 370
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 370
<EPS-PRIMARY> 0.03
<EPS-DILUTED> 0.03
</TABLE>
