-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SpmXcxoCwXIZETfdk37eENgPEOwab69BE1E/WCqsXdUvDM/Fvp2bRCTgRD54BFlG sUYVOFGUtPOE3MxRm1ICGg== 0001047469-97-005021.txt : 19971117 0001047469-97-005021.hdr.sgml : 19971117 ACCESSION NUMBER: 0001047469-97-005021 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: APPLIED MICROSYSTEMS CORP /WA/ CENTRAL INDEX KEY: 0001000787 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 911074996 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-26778 FILM NUMBER: 97721627 BUSINESS ADDRESS: STREET 1: 5020 148TH AVE NE STREET 2: P O BOX 97002 CITY: REDMOND STATE: WA ZIP: 98073-9702 BUSINESS PHONE: 2068822000 MAIL ADDRESS: STREET 1: 5020 148TH AVE NE CITY: REDMOND STATE: WA ZIP: 98073-9702 10-Q 1 FORM 10-Q ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q --------- (Mark One) [ 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. For the transition period from ______ to ______ COMMISSION FILE NUMBER 0-26778 --------- APPLIED MICROSYSTEMS CORPORATION (Exact name of registrant as specified in its charter) --------- WASHINGTON 91-1074996 (State of incorporation) (I.R.S. Employer Identification Number) 5020 148TH AVENUE N.E. , REDMOND, WASHINGTON 98052-5119 (425) 882-2000 (Address, including zip code, of Registrant's principal executive offices and telephone number, including area code) --------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such 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 practicable date. Common stock: 6,807,876 shares outstanding as of October 31, 1997 This report including exhibits consists of 15 pages. The exhibit index appears on page 14. ================================================================================ APPLIED MICROSYSTEMS CORPORATION FORM 10-Q QUARTER ENDED SEPTEMBER 30, 1997 INDEX
PAGE ---- PART I: FINANCIAL INFORMATION Item 1. Financial Statements: Consolidated Statements of Income for the quarter and nine months ended September 30, 1997 and 1996 . . . . . . . . . . . . . . . . . . . . .3 Consolidated Balance Sheets as of September 30, 1997 and December 31, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 Consolidated Statements of Cash Flows for the nine months ended September 30, 1997 and 1996 . . . . . . . . . . . . . . . . . . . . . . . .5 Notes to Consolidated Financial Statements. . . . . . . . . . . . . . . . .6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . .7 PART II: OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . . . . . . . . 12 Signatures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Exhibit Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Exhibit 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
-2- PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS APPLIED MICROSYSTEMS CORPORATION CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED SEPTEMBER 30 NINE MONTHS ENDED SEPTEMBER 30 ------------------------------- ------------------------------ 1997 1996 1997 1996 -------------- --------------- ---------------- ------------ (IN THOUSANDS , EXCEPT PER SHARE AMOUNT) (UNAUDITED) Net sales.................................. $10,758 $9,711 $29,669 $28,166 Cost of sales.............................. 2,861 2,610 8,015 7,974 ------- ------ ------- ------- Gross profit............................... 7,897 7,101 21,654 20,192 Operating expenses: Sales, general and administrative........ 4,870 3,794 13,838 10,957 Research and development................. 2,010 2,056 6,300 5,863 ------- ------ ------- ------- Total operating expenses................... 6,880 5,850 20,138 16,820 ------- ------ ------- ------- Income from operations..................... 1,017 1,251 1,516 3,372 Interest income and other.................. 178 151 509 444 Interest expense........................... (3) (9) (11) (36) ------- ------ ------- ------- Income before income taxes................. 1,192 1,393 2,014 3,780 Income taxes............................... 180 426 313 1,115 ------- ------ ------- ------- Net income................................. $ 1,012 $ 967 $ 1,701 $ 2,665 ======= ====== ======= ======= Net income per share....................... $0.14 $0.14 $0.23 $0.38 Shares used in per share calculation....... 7,393 7,128 7,273 7,097
The accompanying notes are an integral part of these consolidated financial statements. -3- APPLIED MICROSYSTEMS CORPORATION CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) SEPTEMBER 30, DECEMBER 31, 1997 1996 ------------- ------------ (UNAUDITED) ASSETS Current assets: Cash and cash equivalents........................ $ 6,127 $7,208 Short term investments........................... 8,704 5,931 Accounts receivable.............................. 10,032 10,261 Inventories...................................... 3,414 3,197 Prepaid and other current assets................. 789 1,020 ------- ------- Total current assets........................... 29,066 27,617 Property and equipment, net........................ 2,885 2,441 Other assets....................................... 798 766 ------- ------- Total assets................................... $32,749 $30,824 ======= ======= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable................................. $2,460 $2,394 Accrued payroll.................................. 2,033 1,839 Other accrued expenses........................... 808 1,220 Deferred revenue................................. 3,028 2,696 Current portion of long-term obligations......... 29 53 ------- ------- Total current liabilities...................... 8,358 8,202 Long-term obligations, less current portion........ -- 15 Shareholders' equity: Preferred stock, par value $.01 Authorized - 5,000,000 shares.................. -- -- Common stock, par value $.01 Authorized - 25,000,000 shares Issued - 6,807,000 and 6,634,000 shares at September 30, 1997 and December 31, 1996, respectively................................... 26,321 26,068 Cumulative translation adjustment................ (502) (332) Accumulated deficit.............................. (1,428) (3,129) ------- ------- Total shareholders' equity..................... 24,391 22,607 ------- ------- Total liabilities and shareholders' equity..... $32,749 $30,824 ======= ======= The accompanying notes are an integral part of these consolidated financial statements. -4- APPLIED MICROSYSTEMS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 1997 1996 --------------- -------------- (IN THOUSANDS) (UNAUDITED) Cash flows from operating activities: Net income....................................... $ 1,701 $ 2,665 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization................ 858 852 Changes in operating assets and liabilities: Accounts receivable.......................... 229 (1,372) Inventories.................................. (217) 132 Prepaid expenses............................. 231 (478) Other assets................................. (133) 12 Deferred revenue............................. 332 601 Accounts payable and accrued expenses........ (97) (1,061) ------- ------- Net cash provided by operating activities.. 2,904 1,351 Cash flows from investing activities: Purchase of short-term investments........... (2,773) (5,943) Property and equipment additions............. (1,201) (1,065) ------- ------- Net cash used in investing activities...... (3,974) (7,008) Cash flows from financing activities: Stock options exercised...................... 198 134 Repayment of long-term obligations........... (39) (54) ------- ------- Net cash provided by financing activities.. 159 80 Effects of foreign exchange rate changes on cash. (170) (141) ------- ------- Increase (decrease) in cash and cash equivalents. (1,081) (5,718) Cash and cash equivalents at beginning of period. 7,208 12,771 ------- ------- Cash and cash equivalents at end of period....... $ 6,127 $ 7,053 ======= ======= Supplemental disclosures of cash paid: Interest..................................... $11 $36 Income Taxes................................. $729 $1,125 The accompanying notes are an integral part of these consolidated financial statements. -5- APPLIED MICROSYSTEMS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION The consolidated financial statements for the three month periods and the nine month periods ended September 30, 1997 and 1996 and the related footnote information are unaudited and have been prepared on a basis substantially consistent with the 1996 audited consolidated financial statements. In the opinion of management, the financial statements include all adjustments (consisting of only normal recurring adjustments) necessary for fair presentation of the results of this interim period. These statements should be read in conjunction with the consolidated financial statements and related notes included in the Company's 1996 Annual Report to Shareholders. The results of operations for the nine months ended September 30, 1997 are not necessarily indicative of the results to be expected for the entire year. Certain prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications have no effect on previously reported results of operations. 2. COMPUTATION OF EARNINGS PER SHARE Net income per share is based on the weighted average number of common and common equivalent shares outstanding during each period. Common equivalent shares include the effect of all outstanding stock options and warrants. Common equivalent shares are not included in the per share calculations where the effect of their inclusion would be antidilutive using the treasury stock method. In February 1997, the Financial Accounting Standards Board issued Statement No. 128, Earnings per Share, which is required to be adopted on December 31, 1997. At that time, the Company will be required to change the method currently used to compute earnings per share and to restate all prior periods. Under the new requirements for calculating primary earnings per share, the dilutive effect of stock options will be excluded. Earnings per common share computed under the new pronouncement would have been $0.15 for both of the third quarters ended September 30, 1997 and 1996. 3. INVENTORIES Inventories consist of: SEPTEMBER 30, DECEMBER 31, 1997 1996 ------------- ------------ (IN THOUSANDS) Finished goods $1,409 $1,282 Work in process 50 168 Purchased parts 1,955 1,747 ------ ------ $3,414 $3,197 ====== ====== -6- ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management's Discussion and Analysis of Financial Conditions and Results of Operations should be read in conjunction with the accompanying financial statements for the periods specified and the associated notes. Further reference should be made to the Company's 1996 Annual Report to Shareholders. RESULTS OF OPERATIONS The following table sets forth for the period indicated the percentage of total revenue represented by each line item in the Company's condensed consolidated statements of income and the percentage change from comparative prior period in each line item.
Percent of Period-to-Period Net Sales Percentage Change ---------------------------- -------------------- Three months Ended Three months Ended September 30, September 30, 1997 1997 1996 Compared to 1996 --------- -------- ------------------ Net sales..................... 100.0% 100.0% 10.8% Cost of sales................. 26.6 26.9 9.6 ----- ----- Gross profit.................. 73.4 73.1 11.2 Operating expenses: Sales, general and administrative............ 45.3 39.1 28.4 Research and development.... 18.7 21.2 (2.2) ----- ----- Total operating expenses...... 64.0 60.3 17.6 ----- ----- Income from operations........ 9.4 12.8 (18.7) Interest income and other..... 1.7 1.6 17.9 Interest expense.............. -- (0.1) -- ----- ----- Income before income taxes.... 11.1 14.3 (14.4) Income taxes.................. 1.7 4.3 (57.7) ----- ----- Net income.................... 9.4% 10.0% 4.7% ===== =====
-7-
Percent of Period-to-Period Net Sales Percentage Change ---------------------------- -------------------- Nine months Ended Nine months Ended September 30, September 30, 1997 1997 1996 Compared to 1996 --------- -------- ------------------ Net sales..................... 100.0% 100.0% 5.3% Cost of sales................. 27.0 28.3 0.5 ----- ----- Gross profit.................. 73.0 71.7 7.2 Operating expenses: Sales, general and administrative............ 46.6 38.9 26.3 Research and development.... 21.2 20.8 7.5 ----- ----- Total operating expenses...... 67.8 59.7 19.7 ----- ----- Income from operations........ 5.2 12.0 (55.1) Interest income and other..... 1.6 1.6 14.6 Interest expense.............. -- (0.1) -- ----- ----- Income before income taxes.... 6.8 13.5 (46.7) Income taxes.................. 1.1 4.0 (71.9) ----- ----- Net income.................... 5.7% 9.5% (36.2)% ===== =====
NET SALES Net sales increased by 10.8% to $10.8 million from $9.7 million for the quarters ended September 30, 1997 and 1996, respectively. For the first nine months of 1997, revenue increased by 5.3% to $29.7 million from $28.2 million for the same period of 1996. These increases were primarily attributable to the growth in sales of low cost debug and CodeTEST-TM- tools and service revenues. The increases were partially offset by a decline in unit sales of higher priced debug tools and to a lesser extent currency exchange rate fluctuations affecting international sales. The Company's net sales are presently derived predominantly from sales of software design, debugging, and testing tools and product support revenues. The Company generally recognizes revenues from product sales upon shipment. Product support revenues increased by 46.8% and 53.1% over the prior three month and nine month periods, respectively, and increased as a percentage of sales to 11.2% from 8.5% of net sales for the quarters ended September 30, 1997 and 1996, respectively, and to 11.5% from 7.9% of net sales for the nine months ended September 30, 1997 and 1996, respectively. These increases result from higher revenue levels in prior quarters being accompanied by higher sales of associated service contracts from which support revenues are recognized ratably over the contract life, as well as the Company's recently expanded focus on support and service sales. International sales expressed in U.S. dollars increased by 28.1% for the quarter ended September 30, 1997 over the comparable period of 1996, to 56.2% of net sales as compared to 48.7% of net sales in the prior comparable quarter. For the nine months ending September 30, 1997, international sales increased 15.0% over the same period in 1996, representing 52.1% of total sales versus 47.7% in the prior comparable period. The growth rate for international sales as expressed in U.S. dollars is attributable to increased unit sales, due primarily to increased sales and marketing efforts. The Company's sales through its foreign subsidiaries are generally denominated in local currencies, and as a result, fluctuations in currency exchange rates can have a significant effect on the Company's reported net sales. Had the exchange rates remained the same from the prior comparable periods, especially in -8- Japan, overall sales would have increased an additional 4.5 percentage points for the quarter ended September 30, 1997 and increased an additional 4.2 percentage points for the nine months ended September 30, 1997. The Company is unable to predict currency exchange rate fluctuations and anticipates that such fluctuations will continue to affect its net sales to varying degrees in the future. The Company expects international sales, especially in Japan, to continue to account for a significant percentage of its net sales. GROSS PROFIT The Company's gross profit increased to $7.9 million, or 73.4% of net sales, from $7.1 million, or 73.1% of net sales, in the quarters ended September 30, 1997 and 1996, respectively. For the nine months ending September 30, 1997, the Company's gross profit increased to $21.7 million from $20.2 million in the prior comparable period, representing 73.0% and 71.7% of net sales, respectively. The increases in gross profit as a percentage of net sales were primarily attributable to an increase in the higher margin product support revenues, an increase in net sales of newer test and debug products that have lower material and labor costs, and to a lesser extent, favorable cost reductions on certain hardware components. These margin improvements were partially offset by declines in sales revenue due to unfavorable currency exchange rate fluctuations. SALES, GENERAL AND ADMINISTRATIVE Sales, general and administrative expenses were $4.9 million or 45.3% of net sales, and $3.8 million, or 39.1% of net sales, for the quarters ended September 30, 1997 and 1996, respectively. For the nine month periods ended September 30, 1997 and 1996, sales, general and administrative expenses were $13.8 million or 46.6% of net sales, and $11.0 million or 38.9% of net sales, respectively. The dollar amount increase between comparable periods was primarily attributable to increased compensation-related expenses and costs related to increased headcount, and to a lesser extent, increased promotional and travel related expenses and foreign exchange losses. The percentage increase between comparable periods was primarily attributable to lower than anticipated revenues for the quarter ending September 30, 1997. Sales are difficult to predict and the majority occur late in the quarter, at which time budgets are already committed. The Company expects its sales and marketing expenditures to continue to increase in absolute dollars in the future as it introduces and markets new products, and continues to expand its sales, general and administrative organization. Foreign exchange gains and losses are included in sales, general and administrative expenses. In order to mitigate certain intercompany risks associated with exchange rate fluctuations, the Company, does from time to time, hedge a portion of its foreign exchange risk in Japan as it relates to the trade debt the Company's Japanese subsidiary owes to the Company. Although the Company generally plans to continue to engage in exchange rate hedging activities with respect to certain exchange rate risks, there can be no assurance that it will do so or that any such activities will successfully protect the Company against such risks. RESEARCH AND DEVELOPMENT Research and development expenses were $2.0 million, or 18.7% of net sales, and $2.1 million, or 21.2% of net sales, for the quarters ended September 30, 1997 and 1996, respectively. The 2.2% decrease in the dollar amount between comparable periods was primarily attributable to a decrease in hardware prototype related costs and in external development funding received from third parties that offsets expenses. For the nine month periods ending September 30, 1997 and September 30, 1996, research and development expenses were $6.3 million, or 21.2% of net sales, and $5.9 million, or 20.8% -9- of net sales, respectively. The 7.5% increase in the dollar amount between comparable periods was primarily attributable to a decrease in external development funding received from third parties that offsets expenses. The Company intends to continue to make substantial investments in product development, including development of software design, debugging and test tools for additional embedded microprocessors as well as continued advanced development in future directions. As a result, the Company anticipates that net research and development expenses are likely to increase for the foreseeable future. OTHER The Company's interest (net) and other income increased by $33,000 between the comparable three month periods and $90,000 between the comparable nine month periods due primarily to an increase in cash and marketable securities generated from operations. TAXES The Company's estimated annualized 1997 effective tax rate was reduced from 31% to 15% (1996 actual rate was 30%.) in the second quarter of 1997 due to a new tax code regulation that allows for a restructuring, for tax purposes only, of some of its foreign subsidiaries so as to enable the Company to recognize a portion of the net operating losses and loss carryfowards of certain foreign operations. The Company anticipates this lower rate will be sustained through 1997. LIQUIDITY AND CAPITAL RESOURCES The Company requires capital principally for the financing of inventory, capital equipment and accounts receivable, and for investment in product development activities, new technologies and potential company or product line acquisitions. The Company's net assets changed considerably as a result of the initial public offering in November 1995, which resulted in net proceeds to the Company of $13.0 million. Among other things, these proceeds were used to pay off certain debts, purchase equipment and short-term investments. For the nine months ended September 30, 1997 and 1996, the Company generated $2.9 million and $1.4 million, respectively, of cash from operations, and utilized $4.0 and $7.0 million, respectively, of cash for purchases of short-term investments and equipment. As of September 30, 1997, the Company had working capital of $20.7 million, including $14.8 million of cash, cash equivalents and short-term investments The Company believes that its existing working capital, together with funds from operations and available revolving credit line, will provide the Company with sufficient funds to finance its operations for at least the next 12 months. The Company's future capital requirements will, however, depend on a number of factors, including costs associated with product development efforts, the success of the commercial introduction of the Company's new products and the acquisition of complementary businesses, products or technologies. To the extent additional capital is required, the Company may sell additional equity, debt or convertible securities, or obtain additional credit facilities. CERTAIN FACTORS THAT MAY AFFECT FUTURE RESULTS OF OPERATIONS Statements in this report concerning sales, costs, expenses, adequacy of working capital and other matters which are not historical facts, constitute forward-looking statements which are subject to a number of risks and uncertainties which might cause actual results to differ materially from stated expectations. Such risks and uncertainties include delays in shipments of the Company's new products, declining product prices and margins, ability of its suppliers to provide components and assemblies, -10- uncertain market acceptance of new products, growth in the marketplace in which the Company operates, competitive product offerings, unfavorable foreign currency fluctuations and adverse changes in general economic conditions in any of the countries in which the Company does business, and other risks set forth in the Company's filings with the Securities and Exchange Commission, including its annual report for the year ended December 31, 1996 on Form 10-K. During the last twelve months, the Company's competitors have continued to make a variety of product announcements and offerings. The Company continues to release new versions of its product lines and the successful acceptance of these products will be a key determinant of future growth. The impact of any of these factors is difficult to predict or forecast. The Company's future earnings and stock price may be subject to significant volatility, particularly on a quarterly basis, due to a variety of factors, including factors noted above. Any shortfall in revenue or earnings from levels expected by securities analysts could have an immediate and significant adverse effect on the trading price of the Company's common stock in any given period. Additionally, the Company often does not learn of such shortfalls until late in the fiscal quarter, or even after the quarter is over, at which time budgeted expenses have already been committed, which could result in an even more immediate and adverse effect on the trading price of the Company's common stock. The Company participates in a highly dynamic industry, which often results in significant volatility of the Company's common stock price. Consequently, purchasing or holding of the Company's stock involves a high degree of risk. -11- PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (A) The following exhibits are filed as part of this report. 11 Computation of Earnings Per Share. (B) Report on Form 8-K The registrant did not file any reports on Form 8-K during the quarter ended September 30, 1997. -12- 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, in the City of Redmond, State of Washington, on November 10, 1997. APPLIED MICROSYSTEMS CORPORATION (Registrant) By /s/ A. James Beach --------------------------------------------- A. James Beach VICE PRESIDENT, CHIEF FINANCIAL OFFICER, SECRETARY AND TREASURER (PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER) -13- EXHIBIT INDEX Exhibit No. Description Page No. - ---------- ----------- -------- 11 Computation of Earnings Per Share. 15 -14- EX-11 2 EXHIBIT 11 EXHIBIT 11 APPLIED MICROSYSTEMS CORPORATION COMPUTATION OF EARNINGS PER SHARE (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED SEPTEMBER 30, 1997 1996 -------------- ---------------- Average shares outstanding 6,798 6,523 Net effect of dilutive stock warrants and options based on the treasury stock method using average market price 595 605 ------ ------ Total 7,393 7,128 ====== ====== Net Income $1,012 $967 ====== ====== Per share amount $0.14 $0.14 ====== ====== NINE MONTHS ENDED SEPTEMBER 30, 1997 1996 -------------- ---------------- Average shares outstanding 6,749 6,468 Net effect of dilutive stock warrants and options based on the treasury stock method using average market price 524 629 ------ ------ Total 7,273 7,097 ====== ====== Net Income $1,701 $2,665 ====== ====== Per share amount $0.23 $0.38 ====== ======
-15- EX-27 3 EXHIBIT 27
5 1,000 3-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 6127 8704 10032 0 3414 29066 2885 0 32749 8358 0 0 0 26321 (1930) 32749 10758 10758 2861 6880 (178) 0 3 1192 180 1012 0 0 0 1012 .14 .14
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