-----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, TsNKR4ehu4I9di1emmZLOYAizuHuWE5riEf1fu5vLdkTsggAO8cW7yn8bEOr3Muf WeAJFv7al5EYffYdAMFdxw== 0000950117-02-001211.txt : 20020514 0000950117-02-001211.hdr.sgml : 20020514 ACCESSION NUMBER: 0000950117-02-001211 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020331 FILED AS OF DATE: 20020514 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WIRELESS TELECOM GROUP INC CENTRAL INDEX KEY: 0000878828 STANDARD INDUSTRIAL CLASSIFICATION: INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825] IRS NUMBER: 222582295 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-11916 FILM NUMBER: 02646502 BUSINESS ADDRESS: STREET 1: EAST 64 MIDLAND AVE CITY: PARAMUS STATE: NJ ZIP: 07652 BUSINESS PHONE: 2012618797 MAIL ADDRESS: STREET 1: EAST 64 MIDLAND AVE CITY: PARAMUS STATE: NJ ZIP: 07652 FORMER COMPANY: FORMER CONFORMED NAME: NOISE COM INC/NJ DATE OF NAME CHANGE: 19930328 10-Q 1 a32695.txt WIRELESS TELECOM GROUP, INC. 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended March 31, 2002 -------------- [ ] 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 1-11916 ------- WIRELESS TELECOM GROUP, INC. ---------------------------- (Exact name of registrant as specified in its charter) New Jersey 22-2582295 - ------------------------------------- ----------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) East 64 Midland Avenue Paramus, New Jersey 07652 - -------------------------------------------- ------ (Address of principal executive offices) (Zip Code)
(201) 261-8797 ------------------------------------------------------------------- Registrant's telephone number, including area code ------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report.) 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 most recent practicable date.
Common Stock - Par Value $.01 17,204,307 - ----------------------------- ------------------ Class Outstanding Shares At April 26, 2002
WIRELESS TELECOM GROUP, INC. Table of Contents
PART I. FINANCIAL INFORMATION Page(s) Item 1 -- Condensed Consolidated Financial Statements: Condensed Balance Sheets as of March 31, 2002 (unaudited) and December 31, 2001 3 Condensed Statements of Operations for the Three Months Ended March 31, 2002 and 2001 (unaudited) 4 Condensed Statements of Cash Flows for the Three Months Ended March 31, 2002 and 2001 (unaudited) 5 Notes to Interim Condensed Financial Statements (unaudited) 6 - 7 Item 2 -- Management's Discussion and Analysis of Financial Condition and Results of Operations 8 - 10 PART II. OTHER INFORMATION Item 1 -- Legal Proceedings 11 Item 2 -- Changes in Securities 11 Item 3 -- Defaults upon Senior Securities 11 Item 4 -- Submission of Matters to a Vote of Security Holders 11 Item 5 -- Other Information 11 Item 6 -- Exhibits and Reports on Form 8-K 11 Signatures 12 Exhibit 11.1 13
2 PART 1 - FINANCIAL INFORMATION Item 1 - Financial Statements WIRELESS TELECOM GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
-ASSETS- MARCH 31, DECEMBER 31, 2002 2001 ----------- ----------- (unaudited) CURRENT ASSETS: Cash and cash equivalents $14,617,505 $15,138,640 Accounts receivable -- net of allowance for doubtful accounts of $170,378 and $113,950, respectively 3,358,570 2,867,538 Inventories 6,194,269 6,316,085 Current portion of deferred tax benefit 140,000 140,000 Prepaid expenses and other current assets 549,376 476,454 ----------- ----------- TOTAL CURRENT ASSETS 24,859,720 24,938,717 ----------- ----------- PROPERTY, PLANT AND EQUIPMENT - NET 5,572,896 5,499,540 ----------- ----------- OTHER ASSETS: Goodwill 1,351,392 1,351,392 Deferred tax benefit 364,927 364,927 Other assets 743,675 750,682 ----------- ----------- TOTAL OTHER ASSETS 2,459,994 2,467,001 ----------- ----------- TOTAL ASSETS $32,892,610 $32,905,258 =========== =========== - LIABILITIES AND SHAREHOLDERS' EQUITY - CURRENT LIABILITIES: Accounts payable $687,936 $660,249 Accrued expenses and other current liabilities 519,056 760,868 Current portion of mortgage payable 35,346 34,686 Income taxes payable 292,050 164,650 ----------- ----------- TOTAL CURRENT LIABILITIES 1,534,388 1,620,453 ----------- ----------- LONG TERM LIABILITIES: Mortgage payable 3,157,522 3,166,609 Other long term liabilities -- 11,096 ----------- ----------- TOTAL LONG TERM LIABILITIES 3,157,522 3,177,705 ----------- ----------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY (Note 3): Preferred stock, $.01 par value, 2,000,000 shares authorized, none issued -- -- Common stock, $.01 par value, 75,000,000 shares authorized, 19,865,707 and 19,807,677 shares issued, in 2002 and 2001, respectively 198,657 198,077 Additional paid-in-capital 12,896,249 12,792,657 Retained earnings 22,004,870 21,979,416 Treasury stock at cost, -- 2,666,400 and 2,654,400, shares in 2002 and 2001, respectively (6,899,076) (6,863,050) ----------- ----------- TOTAL SHAREHOLDERS' EQUITY 28,200,700 28,107,100 ----------- ----------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $32,892,610 $32,905,258 =========== ===========
The accompanying notes are an integral part of these financial statements. 3 WIRELESS TELECOM GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
For the Three Months Ended March 31, --------------------------- 2002 2001 ---- ---- NET SALES $5,082,312 $5,779,552 ---------- ---------- COSTS AND EXPENSES: Cost of sales 2,837,892 2,604,625 Operating expenses 1,642,048 1,460,463 Interest and other income (67,954) (309,626) Interest expense 64,899 61,556 ---------- ---------- TOTAL COSTS AND EXPENSES 4,476,885 3,817,018 ---------- ---------- INCOME BEFORE INCOME TAXES 605,427 1,962,534 PROVISION FOR INCOME TAXES 236,775 738,659 ---------- ---------- NET INCOME $ 368,652 $1,223,875 ========== ========== NET INCOME PER COMMON SHARE (Note 2): BASIC $ 0.02 $ 0.07 ========== ========== DILUTED $ 0.02 $ 0.07 ========== ==========
The accompanying notes are an integral part of these financial statements. 4 WIRELESS TELECOM GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
For the Three Months Ended March 31, --------------------------- 2002 2001 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 368,652 $ 1,223,875 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 115,756 96,109 Provision for losses on accounts receivable 6,428 59,586 Loss on disposal of fixed assets 483 488 Other income (11,096) -- Changes in assets and liabilities: (Increase) in accounts receivable (497,459) (644,582) Decrease (increase) in inventories 121,816 (328,792) (Increase) in prepaid expenses and other current assets (63,548) (73,220) (Decrease) in accounts payable and accrued expenses (214,123) (37,857) Increase in income taxes payable 127,400 -- ----------- ----------- Net cash (used for) provided by operating activities (45,691) 295,607 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (189,598) (20,057) Proceeds from sale of fixed assets -- 900 Increase in real estate escrow (2,368) (2,368) ----------- ----------- Net cash (used for) investing activities (191,966) (21,525) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES Payments of mortgage note (8,427) (7,816) Acquisition of treasury stock (36,025) (2,667,055) Cash dividends paid (343,198) -- Proceeds from exercise of stock options/warrants 104,172 188 ----------- ----------- Net cash (used for) financing activities (283,478) (2,674,683) ----------- ----------- NET (DECREASE) IN CASH AND CASH EQUIVALENTS (521,135) (2,400,601) Cash and cash equivalents, at beginning of year 15,138,640 21,451,256 ----------- ----------- CASH AND CASH EQUIVALENTS, AT END OF PERIOD $14,617,505 $19,050,655 =========== =========== SUPPLEMENTAL INFORMATION: Cash paid during the period for: Taxes $ 32,000 $ 360,480 Interest $ 60,456 $ 61,067
The accompanying notes are an integral part of these financial statements. 5 WIRELESS TELECOM GROUP, INC. NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2002 (unaudited) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES AND POLICIES The condensed, consolidated balance sheet as of March 31, 2002 and the condensed, consolidated statements of operations and cash flows for the three month periods ended March 31, 2002 and 2001 have been prepared by the Company without audit. The consolidated financial statements include the accounts of Wireless Telecom Group, Inc. and its wholly-owned subsidiaries Boonton Electronics Corporation, Microlab/FXR, WTG Foreign Sales Corporation and NC Mahwah, Inc. In the opinion of management, the accompanying condensed consolidated financial statements referred to above contain all necessary adjustments, consisting of normal accruals and recurring entries only, which are necessary to present fairly the Company's results for the interim periods being presented. The accounting policies followed by the Company are set forth in Note 1 to the Company's financial statements included in its annual report on Form 10-K for the year ended December 31, 2001, which is incorporated herein by reference. Specific reference is made to this report for a description of the Company's securities and the notes to financial statements included therein, since certain information and footnote disclosures normally included in financial statements in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted from this report. The results of operations for the three month periods ended March 31, 2002 and 2001 are not necessarily indicative of the results to be expected for the full year. On December 21, 2001, the Company acquired Microlab/FXR, a private entity, for the net purchase price of $3,800,000. The acquisition of Microlab/FXR was recorded under the purchase method of accounting for financial statement purposes. Microlab/FXR's Balance Sheets are included in the Condensed Consolidated Balance Sheets at March 31, 2002 and December 31, 2001. Microlab/FXR's results of operations and cash flows for the three months ended March 31, 2002 are included in the Condensed Consolidated Statements of Operations and Cash Flows, but their results of operations and cash flows for the three months ended March 31, 2001 are not included. The following pro forma results were developed assuming the acquisition had occurred on January 1, 2001. Intercompany transactions would have been eliminated had there been any, but there were none.
Unaudited Pro Forma Information for the Three Months Ended March 31, 2001 Net Sales $7,770,232 Net Income $1,346,707 Earnings Per Share: Basic $0.07 Diluted $0.07
6 NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS March 31, 2002 (Continued) NOTE 2 - INCOME PER COMMON SHARE Income per common share is computed by dividing the net income by the weighted average number of common shares and common equivalent shares outstanding during each period. The Company utilizes SFAS 128 "Earnings Per Share" ("SFAS 128"), which has changed the method for calculating earnings per share. SFAS 128 requires the presentation of "basic" and "diluted" earnings per share on the face of the income statement. NOTE 3 - SHAREHOLDERS' EQUITY During the three months ended March 31, 2002, the Company repurchased 12,000 shares of its common stock, pursuant to a stock repurchase program authorized by the Board of Directors on November 27, 2000 and as amended on October 5, 2001. NOTE 4 - GOODWILL AND OTHER INTANGIBLE ASSETS Effective January 1, 2002, the Company adopted Statement of Financial Accounting Standards ("SFAS") No. 142, "Goodwill and Other Intangible Assets". In accordance with SFAS No. 142, intangible assets, including purchased goodwill, must be evaluated for impairment. Those intangible assets that will continue to be classified as goodwill or as other intangibles with indefinite lives are no longer amortized. During calendar 2002, the Company will perform the first of the required impairment tests of goodwill and indefinite lived intangible assets as of January 1, 2002 and has not yet determined what the effect of these tests will be on the earnings and financial position of the Company. The following table presents pro forma net income and earnings per share data restated to include the retroactive impact of the adoption of SFAS No. 142. Unaudited Pro Forma Information for the Three Months Ended March 31, 2001 Reported net income $1,223,875 Add back: goodwill amortization, net of tax 26,000 ---------- Pro forma net income $1,249,875 ========== Reported earnings per share - basic $0.07 SFAS No. 142 effect, net of tax -- ----- Pro forma earnings per share - basic $0.07 ===== Reported earnings per share - diluted $0.07 SFAS No. 142 effect, net of tax -- ----- Pro forma earnings per share - diluted $0.07 =====
7 ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS INTRODUCTION Wireless Telecom Group, Inc., and its operating subsidiaries Boonton Electronics Corporation and Microlab/FXR (collectively, the "Company"), develop, manufacture and market a wide variety of electronic noise sources and electronic testing and measuring instruments including power meters, voltmeters and modulation meters. The Company's products have historically been primarily used to test the performance and capability of cellular/PCS and satellite communication systems and to measure the power of RF and microwave systems. Other applications include radio, radar, wireless local area network (WLAN) and digital television. On December 21, 2001, the Company acquired Microlab/FXR. The acquisition of Microlab/FXR was recorded under the purchase method of accounting for financial statement purposes. Microlab/FXR designs and manufactures high-power, passive microwave components for the wireless infrastructure market and for other commercial, aerospace and military markets. The Company's products are used in microwave systems, Universal Mobile Telecommunications Systems (UMTS), Personal Communications Service (PCS) and cellular communications base stations, television transmitters, avionic systems and medical electronics. Microlab/FXR is one of the leaders in serving the needs of the in-building distributed antenna system market, which facilitates seamless wireless coverage throughout the insides of buildings and building complexes. On July 7, 2000, Wireless Telecom Group, Inc. and Boonton Electronics Corp. closed on a merger under an agreement dated March 2, 2000. A newly formed, wholly-owned subsidiary of the Company, WTT Acquisition Corp., merged with and into Boonton, a public entity. The merger was accounted for as a pooling of interests and accordingly, all periods prior to the merger were restated to include the results of operations and cash flows of Boonton. The financial information presented herein includes: (i) Condensed Consolidated Balance Sheets as of March 31, 2002 and as of December 31, 2001 (ii) Condensed Consolidated Statements of Operations for the three month periods ended March 31, 2002 and 2001 and (iii) Condensed Consolidated Statements of Cash Flows for the three month periods ended March 31, 2002 and 2001. Microlab/FXR's Balance Sheets are included in the Condensed Consolidated Balance Sheets at March 31, 2002 and December 31, 2001. Microlab/FXR's results of operations and cash flows for the three months ended March 31, 2002 are included in the Condensed Consolidated Statements of Operations and Cash Flows, but their results of operations and cash flows for the three months ended March 31, 2001 are not included. RESULTS OF OPERATIONS The following discussion of our financial condition and results of operations should be read in conjunction with our interim condensed consolidated financial statements and the notes to those statements included in Part I, Item I of this Quarterly Report on Form 10-Q and in conjunction with the consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2001. 8 ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) For the three months ended March 31, 2002 as compared to the corresponding period of the previous year, net sales decreased to $5,082,000 from $5,780,000, a decrease of $698,000 or 12.1%. The decrease for the quarter ended March 31, 2002 is reflective of an overall softness in the wireless telecommunications and power meter markets, despite the inclusion of Microlab/FXR's sales in the first quarter of 2002 of $1,702,000. The Company's gross profit on net sales for the quarter ended March 31, 2002 was $2,244,000 or 44.2% as compared to $3,175,000 or 54.9% for the three months ended March 31, 2001. The nature of Microlab's products and markets have historically commanded a lower gross profit percentage. As Microlab is a new addition to the Company's operations for 2002, the Company's overall gross margins will be lower than past reports. Additionally, the mixture and volume of products, which shipped in the first quarter of 2002, had lower gross profit percentages than those of the first quarter of 2001. The Company continues to rigidly monitor costs associated with material purchases, manufacturing and production. Operating expenses for the three months ended March 31, 2002 were $1,642,000 or 32.3% of net sales as compared to $1,460,000 or 25.3% of net sales for the three months ended March 31, 2001. For the three months ended March 31, 2002 as compared to the same period of the prior year, operating expenses increased in dollars by $182,000. This increase is primarily due to the additional expenses incurred by Microlab/FXR as a new subsidiary of Wireless Telecom Group, Inc. in 2002. Additionally, sales and marketing and research and development expenses increased in 2002 as compared to the same period in 2001. These increases were partially offset by the elimination of goodwill amortization in 2002 and a reduction of bad debt expense. Interest and other income decreased by $242,000 for the three months ended March 31, 2002. This decrease was primarily due to lower investment balances and interest rates on short-term investments in 2002. Interest expense increased by $3,000 for the three months ended March 31, 2002. Net income decreased to $369,000, or $.02 per share (diluted), for the three months ended March 31, 2002 as compared to $1,224,000, or $.07 per share (diluted) for the three months ended March 31, 2001. The explanation of these changes can be derived from the analysis given above of operations for the three month periods ending March 31, 2002 and 2001, respectively. LIQUIDITY AND CAPITAL RESOURCES: The Company's working capital increased by $7,000 to $23,325,000 at March 31, 2002, from $23,318,000 at December 31, 2001. At March 31, 2002 the Company had a current ratio of 16.2 to 1, and a ratio of debt to net worth of .17 to 1. At December 31, 2001 the Company had a current ratio of 15.4 to 1, and a ratio of debt to net worth of .17 to 1. The Company used cash for operations of $46,000 for the three month period ending March 31, 2002. This use was primarily due to an increase in accounts receivable of $497,000, a decrease in accounts payable and accrued expenses of $214,000, partially offset by net income of $369,000. 9 ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) The Company has historically been able to turn over its accounts receivable approximately every two months. This average collection period has been sufficient to provide the working capital and liquidity necessary to operate the Company. The Company continues to monitor production requirements and delivery times while maintaining manageable levels of goods on hand. Net cash provided by operating activities for the comparable period in 2001 was $296,000. Cash provided by net income of $1,224,000 was partially offset by increases in accounts receivable of $645,000 and inventories of $329,000. Net cash used for investing activities for the three months ended March 31, 2002 was $192,000. The primary use of these funds was capital expenditures of $190,000. For the three months ended March 31, 2001, net cash used for investing activities was $22,000. The primary use of these funds was capital expenditures. Net cash used for financing activities for the three months ended March 31, 2002 was $283,000. The primary use of these funds was for the payment of dividends of $343,000, partially offset by the proceeds from the exercise of stock options of $104,000. Net cash used for financing activities in the same period of 2001 was $2,675,000. The primary use of these funds was the acquisition of treasury stock in the amount of $2,667,000. The Company believes that its financial resources from working capital provided by operations are adequate to meet current requirements. INFLATION AND SEASONALITY The Company does not anticipate that inflation will significantly impact its business nor does it believe that its business is seasonal. CRITICAL ACCOUNTING POLICIES The Company has provided, through its Notes to Interim Condensed Consolidated Financial Statements above and the Notes to Consolidated Financial Statements included in its annual report on Form 10-K previously filed and incorporated herein by reference, all significant information addressing the accounting measurements that would have a material impact on the reported financial statements. The policies used, including accounting for uncollectible accounts under the allowance method and valuing raw material inventories at the lower of cost (first-in, first-out method) or market, are policies that the Company has used for many years and believes to be the appropriate methods for our business and in our industry. The Company continues to apply these policies fairly and consistently. National and global economic market conditions continue to present challenges to the technology sector, to our customers and to our Company. Despite some appearances that the markets for our products may be stabilizing, visibility remains difficult, as does their impact on our future sales and earnings. FORWARD LOOKING STATEMENTS The statements contained in this Quarterly Report on Form 10-Q that are not historical facts are forward-looking statements. Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believes," "expects," "intends," "plans," "may," "will," "should," or "anticipates," or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. These forward-looking statements involve predictions. Our actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. 10 PART II - OTHER INFORMATION Item 1. LEGAL PROCEEDINGS Not applicable. Item 2. CHANGES IN SECURITIES Not applicable. Item 3. DEFAULTS UPON SENIOR SECURITIES Not applicable. Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Not applicable. Item 5. OTHER INFORMATION Not applicable. Item 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits: 11.1 Computation of per share earnings (b) Reports on Form 8-K: Not applicable. 11 SIGNATURES 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. WIRELESS TELECOM GROUP, INC. ---------------------------- (Registrant) Date: May 13, 2002 /S/Edward Garcia -------------------------------------------- Edward Garcia Chairman and Chief Executive Officer Date: May 13, 2002 /S/Marc Wolfsohn -------------------------------------------- Marc Wolfsohn Chief Financial Officer 12 EX-11 3 ex11.txt EXHIBIT 11.1 Exhibit 11.1 WIRELESS TELECOM GROUP, INC. COMPUTATION OF PER SHARE EARNINGS (Unaudited)
For the Three Months Ended March 31, --------------- 2002 2001 ---- ---- Net income $ 368,652 $1,223,875 ========== ========== BASIC EARNINGS: Weighted average number of common shares Outstanding 17,167,437 18,311,628 ========== ========== Basic earnings per common share: $ 0.02 $ 0.07 DILUTED EARNINGS: Weighted average number of common shares Outstanding 17,167,437 18,311,628 Stock options 671,721 241,925 ----------- ----------- Weighted average number of common shares outstanding, as adjusted 17,839,158 18,553,553 ========== ========== Diluted earnings per common share: $ 0.02 $ 0.07
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