-----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, GDCyY2Gqk9ZpbCULtZv7QRCZLhEluOqNmnsctYG/YnSBakGiIzV0KMDvmTCSNdKa /ty1soQ920XSmUjUfeBafg== 0001104659-07-031099.txt : 20070425 0001104659-07-031099.hdr.sgml : 20070425 20070425081651 ACCESSION NUMBER: 0001104659-07-031099 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070425 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070425 DATE AS OF CHANGE: 20070425 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SILICON LABORATORIES INC CENTRAL INDEX KEY: 0001038074 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] IRS NUMBER: 742793174 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-29823 FILM NUMBER: 07786106 BUSINESS ADDRESS: STREET 1: 400 W CESAR CHAVEZ CITY: AUSTIN STATE: TX ZIP: 78701 BUSINESS PHONE: 5124168500 MAIL ADDRESS: STREET 1: 400 W CESAR CHAVEZ CITY: AUSTIN STATE: TX ZIP: 78701 8-K 1 a07-12284_18k.htm CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported): April 25, 2007

 

SILICON LABORATORIES INC.

(Exact Name of Registrant as Specified in Charter)

Delaware

 

000-29823

 

74-2793174

(State or Other Jurisdiction

 

(Commission File Number)

 

(IRS Employer

of Incorporation)

 

Identification No.)

 

 

 

400 West Cesar Chavez, Austin, TX          78701

(Address of Principal Executive Offices) (Zip Code)

 

Registrant’s telephone number, including area code: (512) 416-8500

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨               Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨               Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨               Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨               Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 




Item 2.02. Results of Operations and Financial Condition

On April 25, 2007, Silicon Laboratories Inc. (“Silicon Laboratories”) issued a press release describing its results of operations for its fiscal quarter ended March 30, 2007. A copy of the press release is attached as Exhibit 99 to this report.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

99 Press Release of Silicon Laboratories Inc. dated April 25, 2007.

Use of Non-GAAP Financial Information

From time to time, Silicon Laboratories provides certain non-GAAP financial measures as additional information relating to its operating results.  The non-GAAP financial measurements provided in the press release furnished herewith do not replace the presentation of Silicon Laboratories’ GAAP financial results. These additional measurements merely provide supplemental information to assist investors in analyzing Silicon Laboratories’ financial position and results of operations; however, these measures are not in accordance with, or an alternative to, GAAP and may be different from non-GAAP measures used by other companies. Silicon Laboratories has chosen to provide this information to investors because it believes that such supplemental information enables them to perform meaningful comparisons of past, present and future operating results, and as a means to highlight the results of core ongoing operations.

Pursuant to the requirements of Regulation G, we have provided in the press release furnished with this report a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section.  The information contained therein and in the accompanying exhibit shall not be incorporated by reference into any filing with the U.S. Securities and Exchange Commission made by Silicon Laboratories, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

2




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 hereunto duly authorized.

 

 

 

 

SILICON LABORATORIES INC.

 

 

 

 

 

 

April 25, 2007

 

/s/ Paul V. Walsh, Jr.

Date

 

Paul V. Walsh, Jr
Vice President of Finance
(Principal Accounting Officer)

 

3




EXHIBIT INDEX

 

 

Exhibit No.

 

Description

 

99

 

Press release dated April 25, 2007 of the Registrant

 

4



EX-99 2 a07-12284_1ex99.htm EX-99

Exhibit 99

SILICON LABORATORIES ANNOUNCES FIRST QUARTER RESULTS

Company Delivers Revenue and EPS Upside—

AUSTIN, Texas — April 25, 2007 — Silicon Laboratories Inc. (Nasdaq: SLAB), a leader in high-performance, analog-intensive, mixed-signal integrated circuits (ICs), today reported strong first quarter results that exceeded the company’s guidance on the top and bottom line.

First Quarter Financial Highlights

First quarter results have almost a full quarter of operations inclusive of the Aero® products sold on March 23rd, which are now classified as discontinued operations. During the first quarter of 2007 (on a non-GAAP basis and including the results from discontinued operations), total revenue increased sequentially to $111.8 million, gross margin was 52 percent, and operating income was $11.4 million, or 10 percent of revenue. Net income on a non-GAAP basis, excluding the gain on the sale of the Aero products, was $10.8 million, or $0.19 per fully diluted share, exceeding the high-end of the guidance range by two cents.

The company’s continuing operations made up of its core, mixed-signal business delivered 11 percent year over year revenue growth and totaled $73.8 million. GAAP gross margin for the mixed-signal business increased to 61.5 percent. GAAP operating loss was $3.7 million. Excluding an $11.8 million charge for stock compensation expense, non-GAAP operating income was $8 million or 11 percent of revenue. The GAAP income statement includes income from discontinued operations of $156.3 million, which includes the after-tax gain on the sale of the business, resulting in GAAP net income of $155.6 million and GAAP diluted earnings per share of $2.84. The reconciling charges are set forth in the financial measures table included below.




The company ended the quarter with approximately $666 million in cash, cash equivalents and short-term investments. The company repurchased $13 million of its common stock under its repurchase program during the quarter.

“We executed well this quarter on several strategic objectives, and I believe the progress we made to improve efficiencies and scale our infrastructure appropriately demonstrates our commitment to our target operating model,” said Necip Sayiner, president and chief executive officer of Silicon Laboratories. “As a company, we are at a positive inflection point strategically, and we have a business with a profile that is now in sync with the growth and profitability targets we have established.”

Mixed-Signal Business Summary

Silicon Laboratories’ continuing operations are made up of the mixed-signal business which includes a diverse set of innovative products addressing broadcast, embedded modems, voice over broadband, microcontrollers (MCUs), and timing. During the first quarter, the broadcast, microcontroller, embedded modems and timing product lines increased revenue sequentially while voice products declined.

The company announced several strategic MCU and broadcast products in the first quarter. Silicon Laboratories’ new additions to the small form factor MCU family enable the company to address cost sensitive applications such as white goods and toys. New broadcast products, including a fully integrated AM/FM receiver, offer additional features and further differentiation in the company’s tuner family, improving average selling prices and boosting the company’s penetration into portable audio applications.

Business Outlook

For the second quarter of 2007, the company anticipates revenue from continuing operations to be in the range of $74 to $77 million. GAAP net income per fully diluted share is expected to be in the range of $0.10 to $0.13. Non-GAAP net income per fully diluted share, excluding a non-cash charge for stock compensation, is expected to be in the range of $0.22 to $0.25.




Webcast and Conference Call

A conference call discussing the first quarter results will follow this press release today at 7:30 a.m. Central Time. An audio webcast will be available simultaneously on Silicon Laboratories’ website under Investor Relations (www.silabs.com). A replay will be available after the call at the same website listed above or by calling 800-677-5199 or +1 203-369-3133 (international). Replays will be available through May 9, 2007.

About Silicon Laboratories Inc.

Silicon Laboratories Inc. is a leading designer of high-performance, analog-intensive, mixed-signal integrated circuits (ICs) for a broad range of applications. Silicon Laboratories’ diverse portfolio of highly integrated, patented solutions is developed by a world-class engineering team with expertise in cutting-edge mixed-signal design. The company has design, engineering, marketing, sales and applications offices throughout North America, Europe and Asia. For more information about Silicon Laboratories, please visit www.silabs.com.

Forward Looking Statements

This press release contains forward-looking statements based on Silicon Laboratories’ current expectations. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan,” “project,” “will” and similar phrases as they relate to Silicon Laboratories are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Laboratories and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: risks that Silicon Laboratories may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; volatile stock price; average selling prices of products may decrease significantly and rapidly, dependence on a limited number of products and customers; difficulties developing new products that achieve market acceptance; risks that Silicon Laboratories may not be able to manage strains associated with its growth; dependence on key personnel; difficulties managing our manufacturers and subcontractors; difficulties managing international activities; credit risks associated with our accounts receivable;




geographic concentration of manufacturers, assemblers, test service providers and customers in the Pacific Rim that subjects Silicon Laboratories’ business and results of operations to risks of natural disasters, epidemics, war and political unrest; product development risks; inventory-related risks; intellectual property litigation risks; risks associated with acquisitions; the competitive and cyclical nature of the semiconductor industry and other factors that are detailed in Silicon Laboratories’ filings with the SEC. Silicon Laboratories disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Note to editors: Silicon Laboratories, Silicon Labs and the Silicon Labs logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.

CONTACT: Silicon Laboratories Inc., Shannon Pleasant, (512) 464 9254, shannon.pleasant@silabs.com




Silicon Laboratories Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

 

 

Three Months Ended

 

 

 

March 31,
2007

 

April 1,
2006

 

Revenues

 

$73,814

 

$66,652

 

Cost of revenues

 

28,439

 

21,127

 

Gross profit

 

45,375

 

45,525

 

Operating expenses:

 

 

 

 

 

Research and development

 

24,807

 

21,069

 

Selling, general and administrative

 

24,292

 

20,731

 

Operating expenses

 

49,099

 

41,800

 

Operating income (loss)

 

(3,724

)

3,725

 

Other income (expense):

 

 

 

 

 

Interest income

 

3,835

 

3,202

 

Interest expense

 

(231

)

(175

)

Other income (expense), net

 

(119

)

247

 

Income (loss) from continuing operations before income taxes

 

(239

)

6,999

 

Provision for income taxes

 

507

 

1,801

 

Income (loss) from continuing operations

 

(746

)

5,198

 

Income from discontinued operations, net of income taxes

 

156,359

 

5,866

 

Net income

 

$155,613

 

$11,064

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

Income (loss) from continuing operations

 

$(0.01

)

$0.09

 

Net income

 

$2.84

 

$0.20

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

Income (loss) from continuing operations

 

$(0.01

)

$0.09

 

Net income

 

$2.84

 

$0.19

 

 

 

 

 

 

 

Weighted-average common shares outstanding:

 

 

 

 

 

Basic

 

54,806

 

55,066

 

Diluted

 

54,806

 

57,656

 

 




Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)

Total Operations

 

Three Months Ended
March 31, 2007

 

 

 

GAAP
Measure

 

Discontinued
Operations

 

Stock
Compensation
Expense

 

Non-GAAP
Measure

 

Non-GAAP
Percent of
Revenue

 

Revenues

 

$73,814

 

$37,988

 

$—

 

$111,802

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

45,375

 

12,592

 

307

 

58,274

 

52

%

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(3,724

)

3,376

(1)

11,770

(2)

11,422

 

10

%

 

Net Income Per Share —
Total Operations

 

Three Months Ended
March 31, 2007

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

GAAP
Measure

 

Income

 

Aero Products
Operations

 

Stock
Compensation
Expense

 

Non-GAAP
Measure

 

Net income (expense)

 

$155,613

 

$156,359

 

$(1,893) (1)

 

$(9,702) (2)

 

$10,849

 

 

 

 

GAAP
Measure

 

Stock Options
 and Awards

 

Non-GAAP
Measure

 

Diluted shares outstanding

 

54,806

 

1,505

 

56,301

 

 

 

 

 

 

 

 

 

Diluted net income per share

 

$2.84

 

 

 

$0.19

 

 

 

 

 

 

 

 

 

 

Continuing Operations

 

Three Months Ended
 March 31, 2007

 

 

 

 

 

GAAP
Measure

 

Stock
Compensation
Expense

 

Non-GAAP
Measure

 

Non-GAAP
Percent of
Revenue

 

 

 

 Revenues

 

$73,814

 

$—

 

$73,814

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

(3,724

)

11,770

 

8,046

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 


(1)             Represents the operating income of the discontinued operations, excluding $2.1 million of stock compensation expense for employees in the discontinued operations. The net income adjustment is net of estimated tax. The charges were not associated with the sale of our Aero product lines.

(2)             Includes $3.3 million of stock compensation expense for equity awards to employees retained in our continuing operations after the sale of our Aero product lines. The net income adjustment is net of estimated tax.




 

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
(In thousands, except per share data)
(Continued)

Net Income Per Share —
Continuing Operations

 

Three Months Ended
March 31, 2007

 

 

 

 

 

GAAP
Measure

 

Discontinued
Operations

 

Stock
Compensation
Expense

 

Non-GAAP
Measure

 

 

 

Net income (expense)

 

$155,613

 

$156,359

 

$(9,702) (3)

 

$8,956

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP
Measure

 

Stock Options
and Awards

 

Non-GAAP
Measure

 

 

 

Diluted shares outstanding

 

54,806

 

1,505

 

56,301

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per share

 

$2.84

 

 

 

$0.16

 

 

 


(3)             Includes $3.3 million of stock compensation expense for equity awards to employees retained in our continuing operations after the sale of our Aero product lines. The net income adjustment is net of estimated tax.

Unaudited Forward-Looking Statements Regarding Business Outlook*
(In thousands, except per share information)

Business Outlook

 

Three Months Ending
June 30, 2007

 

 

 

High

 

Low

 

Estimated GAAP diluted net income per share

 

$

0.13

 

$

0.10

 

Estimated non-cash charges for stock compensation

 

0.12

 

0.12

 

Estimated non-GAAP diluted net income per share

 

$

0.25

 

$

0.22

 


*                    These financial schedules contain forward-looking statements based on Silicon Laboratories’ current expectations. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “plan,” “project,” “will” and similar phrases as they relate to Silicon Laboratories are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Laboratories and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: risks that Silicon Laboratories may not be able to maintain its historical growth; quarterly fluctuations in revenues and operating results; volatile stock price; average selling prices of products may decrease significantly and rapidly, dependence on a limited number of products and customers; difficulties developing new products that achieve market acceptance; risks that Silicon Laboratories may not be able to manage strains associated with its growth (including risks associated with the implementation of its enterprise resource planning system); dependence on key personnel; difficulties managing our manufacturers and subcontractors; difficulties managing international activities; credit risks associated with our accounts receivable; geographic concentration of manufacturers, assemblers, test service providers and customers in the Pacific Rim that subjects Silicon Laboratories’ business and results of operations to risks of natural disasters, epidemics, war and political unrest; product development risks; inventory-related risks; intellectual property litigation risks; risks associated with acquisitions and divestitures; the competitive and cyclical nature of the semiconductor industry and other factors that are detailed in Silicon Laboratories’ filings with the SEC. Silicon Laboratories disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.




Silicon Laboratories Inc.
Condensed Consolidated Balance Sheets
(In thousands, except per share data)
(Unaudited)

 

 

March 31,
2007

 

December 30,
2006

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

213,594

 

$

68,188

 

Short-term investments

 

452,686

 

318,104

 

Accounts receivable, net of allowance for doubtful accounts of $617 at March 31, 2007 and $421 at December 30, 2006

 

33,311

 

36,657

 

Inventories

 

21,465

 

22,016

 

Deferred income taxes

 

8,263

 

12,118

 

Prepaid expenses and other

 

27,552

 

12,944

 

Current assets of discontinued operations

 

21,346

 

33,680

 

Total current assets

 

778,217

 

503,707

 

Property, equipment and software, net

 

32,669

 

34,070

 

Goodwill

 

65,840

 

65,680

 

Other intangible assets, net

 

19,206

 

20,271

 

Other assets, net

 

25,929

 

24,528

 

Non-current assets of discontinued operations

 

 

38,739

 

Total assets

 

$

921,861

 

$

686,995

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

29,997

 

$

26,438

 

Accrued expenses

 

20,716

 

23,051

 

Deferred income on shipments to distributors

 

23,825

 

20,568

 

Income taxes

 

42,907

 

15,063

 

Current liabilities of discontinued operations

 

21,611

 

16,502

 

Total current liabilities

 

139,056

 

101,622

 

Long-term obligations and other liabilities

 

53,045

 

15,641

 

Non-current liabilities of discontinued operations

 

 

1,050

 

Total liabilities

 

192,101

 

118,313

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Preferred stock—$0.0001 par value; 10,000 shares authorized; no shares issued and outstanding

 

 

 

Common stock—$0.0001 par value; 250,000 shares authorized; 54,716 and 54,802 shares issued and outstanding at March 31, 2007 and December 30, 2006, respectively

 

5

 

5

 

Additional paid-in capital

 

379,120

 

373,655

 

Retained earnings

 

350,635

 

195,022

 

Total stockholders’ equity

 

729,760

 

568,682

 

Total liabilities and stockholders’ equity

 

$

921,861

 

$

686,995

 

 

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