0001122904-13-000006.txt : 20130212 0001122904-13-000006.hdr.sgml : 20130212 20130212160510 ACCESSION NUMBER: 0001122904-13-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20130212 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130212 DATE AS OF CHANGE: 20130212 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NETGEAR, INC CENTRAL INDEX KEY: 0001122904 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE & TELEGRAPH APPARATUS [3661] IRS NUMBER: 770419172 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-50350 FILM NUMBER: 13597204 BUSINESS ADDRESS: STREET 1: 350 EAST PLUMERIA DRIVE CITY: SAN JOSE STATE: CA ZIP: 95134 BUSINESS PHONE: 4089078000 MAIL ADDRESS: STREET 1: 350 EAST PLUMERIA DRIVE CITY: SAN JOSE STATE: CA ZIP: 95134 FORMER COMPANY: FORMER CONFORMED NAME: NETGEAR INC DATE OF NAME CHANGE: 20000828 8-K 1 ntgr20130212-8k.htm FORM 8-K NTGR 2013.02.12 - 8K
          
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): February 12, 2013
 
 NETGEAR, INC.
(Exact name of Registrant as specified in its charter)  
 
 
 
 
 
 
Delaware
 
000-50350
 
77-0419172
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(I.R.S. Employer
Identification Number)
 
 
 
 
 
350 East Plumeria Drive
San Jose, CA 95134
(Address, including zip code, of principal executive offices)
 
 
 
 
 
(408) 907-8000
(Registrant's telephone number, including area code)  
 
 
 
 
 

 
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):
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o
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 February 12, 2013, NETGEAR, Inc. (the “Company”) issued a press release announcing its financial results for its fourth fiscal quarter and fiscal year ended December 31, 2012, the text of which is furnished herewith as Exhibit 99.1.

The information furnished pursuant to this Item 2.02 and the exhibit to this Current Report are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section. The information furnished pursuant to this Item 2.02 and the exhibit to this Current Report shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.


Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number        Description

99.1             Press Release, dated February 12, 2013.




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 hereunto duly authorized.

NETGEAR, INC.
Dated: February 12, 2013    By: /s/ Christine M. Gorjanc    
Christine M. Gorjanc
Chief Financial Officer




EXHIBIT INDEX


Exhibit Number        Description

99.1            Press Release, dated February 12, 2013.
            




 EX-99.1 2 exhibit99112q4earningsrele.htm PRESS RELEASE Exhibit 99.1 12Q4 Earnings Release


NEWS RELEASE



NETGEAR® REPORTS FOURTH QUARTER AND FULL YEAR 2012 RESULTS

•
Fourth quarter 2012 net revenue of $310.4 million, as compared to $309.2 million in the comparable prior year quarter
•
Fourth quarter 2012 non-GAAP net income of $21.5 million, as compared to $26.5 million in the comparable prior year quarter, decrease of 18.9% year-over-year
•
Fourth quarter 2012 non-GAAP diluted earnings per share of $0.55, as compared to $0.69 in the comparable prior year quarter, decrease of 20.3% year-over-year
•
2012 net revenue was $1.27 billion, as compared to $1.18 billion in 2011, 7.7% year-over-year growth
•
2012 non-GAAP net income of $99.4 million, as compared to $105.2 million in 2011, decrease of 5.5% year-over-year
•
2012 non-GAAP diluted earnings per share of $2.57, as compared to $2.77 in 2011, decrease of 7.2% year-over-year
•
Company expects first quarter 2013 net revenue to be in the range of $290 million to $305 million, with non-GAAP operating margin in the range of 11% to 12%

SAN JOSE, California - February 12, 2013 - NETGEAR, Inc. (NASDAQGM: NTGR), a global networking company that delivers innovative products to consumers, businesses and service providers, today reported financial results for the fourth quarter and full year ended December 31, 2012.

Net revenue for the fourth quarter ended December 31, 2012 was $310.4 million, as compared to $309.2 million for the fourth quarter ended December 31, 2011, and $315.2 million in the third quarter ended September 30, 2012. Net income, computed in accordance with GAAP, for the fourth quarter of 2012 was $16.1 million, or $0.41 per diluted share. This compared to GAAP net income of $22.8 million, or $0.60 per diluted share, for the fourth quarter of 2011, and GAAP net income of $23.8 million, or 0.61 per diluted share, in the third quarter of 2012.

Gross margin on a non-GAAP basis in the fourth quarter of 2012 was 30.0%, as compared to 31.1% in the year ago comparable quarter, and 31.6% in the third quarter of 2012. Non-GAAP operating margin was 11.4% in the fourth quarter of 2012, as compared to 12.4% in the fourth quarter of 2011, and 11.5% in the third quarter of 2012. Non-GAAP net income was $0.55 per diluted share in the fourth quarter of 2012, as compared to non-GAAP net income of $0.69 per diluted share in the fourth quarter of 2011, and non-GAAP net income of $0.65 per diluted share in the third quarter of 2012.

Our non-GAAP tax rate was 39.4% in the fourth quarter 2012, as compared to 30.5% in the fourth quarter of 2011, and 30.3% in the third quarter of 2012. The higher fourth quarter 2012 tax rate reflects a shift in revenues and profits, to the Americas where tax rates are higher. The fourth quarter 2012 non-GAAP tax rate also did not include any one-time tax rate benefit which was included in the tax rate for the third quarter of 2012, and which accounted for an incremental $0.05 per diluted share of earnings for the third quarter of 2012.

Net revenue for the full year 2012 was $1.27 billion, a 7.7% increase as compared to $1.18 billion for 2011. Non-GAAP income from operations for the full year 2012 was $147.7 million, as compared to non-GAAP income from operations of $145.8 million for the full year 2011. Net income, computed in accordance with GAAP, for 2012 was $86.5 million, or $2.23 per diluted share. This net income was a 5.4% decrease compared to net income of $91.4 million, for 2011. Earnings per share, computed in accordance with GAAP, was $2.41 per diluted share for the full year 2011.

Page 1



The differences between GAAP and non-GAAP financial measures include adjustments, net of any tax effect, for amortization of purchased intangibles, stock-based compensation, restructuring and other charges, acquisition related compensation and expense, impact to cost of sales from acquisition accounting adjustments to inventory, litigation reserves, and gain on sale of cost method investment. The accompanying schedules provide a reconciliation of financial measures computed on a GAAP basis to financial measures computed on a non-GAAP basis.

Patrick Lo, Chairman and Chief Executive Officer of NETGEAR commented, “The worldwide macroeconomic environment proved challenging for us during the second half of 2012. In the fourth quarter, we witnessed reduced spending among our service provider customers and Commercial Business Unit customers. Despite this, our Retail Business Unit experienced the best fourth quarter sequential growth in the last three years. We are very pleased with the share gain against our retail competitors worldwide. We introduced 32 new products in the fourth quarter of 2012 and once again, we were a double honoree this year in the CES Innovations Design and Engineering Awards competition.”

“Our fourth quarter 2012 Retail Business Unit net revenue was up 12% sequentially, and up 5% for the full year. The fourth quarter was a record quarter in terms of net revenue for our Retail Business Unit driven by strong share gain in the U.S. and other international markets. Our fourth quarter 2012 Service Provider Business Unit net revenue was down 12% sequentially, but up an impressive 25% year-over-year for the full year of 2012. Upon closing, we expect our recently announced acquisition of the Sierra Wireless, Inc. AirCard business to drive global growth for our Service Provider Business Unit by combining a world-class LTE engineering team with our world-class Wi-Fi engineering team. We believe that fixed mobile broadband gateways will be the internet access device of choice for the estimated four and a half billion people currently not connected to high speed broadband internet because of poor wireline telecommunications infrastructure. The AirCard acquisition is a significant step forward in addressing this nascent market. Our fourth quarter 2012 Commercial Business Unit net revenue was down 7% sequentially and down 7% for the full year due to cautious spending for information technology in the uncertain business climate, especially in Europe.”

Christine Gorjanc, Chief Financial Officer of NETGEAR, said, “While the slowdown faced in the second half of 2012 has been challenging, we remain committed to pursuing the growth opportunities we see in Smart Homes, Next Generation Service Providers and 21st Century SMBs. We are maintaining financial discipline while continuing to drive innovation with historically higher expenditures in research and development. Our research and development expenditure allows us to execute our first-to-market strategy and consistently meet the demand for next generation wireless connectivity products within the markets that we serve. We maintain a strong balance sheet and continue to closely manage our expenses, inventory and cash.”

Mr. Lo added, “Looking forward, our plan for 2013 calls for organic growth in revenue and profits with further incremental growth once the AirCard acquisition is complete.  We expect the first half of 2013 to be tempered by reduced spending from our service provider customers and macroeconomic uncertainty with growth in the second half of the year.  Specifically, we expect first quarter 2013 net revenue to be in the range of $290 to $305 million and non-GAAP operating margin between 11% and 12%, which does not include revenues or costs associated with the AirCard acquisition. For the full year 2013, we expect our annualized non-GAAP tax rate to be approximately 33%.”

“In 2013, we expect to continue to drive growth via aggressive new product introductions. We currently expect our 802.11ac WiFi equipment, 4G LTE fixed mobile gateways, Home Automation and Monitoring systems, 10Gigabit Ethernet switches, and Unified Storage to be key new revenue drivers. From a long-term perspective, we are confident in the growth prospects we see in providing Internet connectivity devices for homes, and small and medium businesses. As the number of connected devices worldwide grows at an increasing rate, we expect to expand our business to meet the demands of our customers in each of the markets that we serve.”

Investor Conference Call / Webcast Details
NETGEAR will review the fourth quarter and full year 2012 results and discuss management's expectations for the first quarter of 2013 today, Tuesday, February 12, 2013 at 5 p.m. EDT (2 p.m. PDT). The dial-in number for the live audio call is (201) 689-8560. A live webcast of the conference call will be available on NETGEAR's website at http://

Page 2


investor.netgear.com. A replay of the call will be available 2 hours following the call through midnight EDT (9 p.m. PDT) on Tuesday, February 19, 2013 by telephone at (858) 384-5517 and via the web at http://investor.netgear.com. The account number to access the phone replay is 407607.

About NETGEAR, Inc.
NETGEAR (NASDAQGM: NTGR) is a global networking company that delivers innovative products to consumers, businesses and service providers. For consumers, the company makes high performance, dependable and easy to use home networking, storage and digital media products to connect people with the Internet and their content and devices. For businesses, NETGEAR provides networking, storage and security solutions without the cost and complexity of Big IT. The company also supplies top service providers with retail proven, whole home solutions for their customers. NETGEAR products are built on a variety of proven technologies such as wireless, Ethernet and powerline, with a focus on reliability and ease-of-use. NETGEAR products are sold in approximately 35,000 retail locations around the globe, and through over 41,000 value-added resellers. The company's headquarters are in San Jose, Calif., with additional offices in over 25 countries. NETGEAR is an ENERGY STAR partner. More information is available at http://investor.netgear.com or by calling (408) 907-8000. Connect with NETGEAR at http://twitter.com/NETGEAR and http://www.facebook.com/NETGEAR.

© 2013 NETGEAR, Inc. NETGEAR and the NETGEAR logo are trademarks or registered trademarks of NETGEAR, Inc. and its affiliates in the United States and/or other countries. Other brand and product names are trademarks or registered trademarks of their respective holders. The information contained herein is subject to change without notice. NETGEAR shall not be liable for technical or editorial errors or omissions contained herein. All rights reserved.

Contact:
NETGEAR Investor Relations
Christopher Genualdi
netgearIR@netgear.com
(408) 890-3520

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for NETGEAR, Inc.:
This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words "anticipate", "expect", "believe", "will", "may", "should", "estimate", "project", "outlook", "forecast" or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements represent NETGEAR, Inc.'s expectations or beliefs concerning future events based on information available at the time such statements were made and include statements, among others, regarding expectations on continuing to drive growth via aggressive new product introductions and the key new revenue drivers, expectations regarding our recent acquisition of the Sierra Wireless AirCard business driving global growth for our Service Provider Business Unit, expectations on fixed mobile broadband gateways, our commitment to pursuing growth opportunities, higher research and development expenditures, expectations on the 2013 non-GAAP tax rate, further reductions in spending among our existing service provider customers in the first half of 2013, growth in our Commercial Business Unit, expectations on our Retail Business Unit, our plans for 2013, expected net revenue and non-GAAP operating margin, and the expected expansion of our business to meet customer needs. These statements are based on management's current expectations and are subject to certain risks and uncertainties, including, without limitation, the following: future demand for the Company's products may be lower than anticipated; consumers may choose not to adopt the Company's new product offerings or adopt competing products; product performance may be adversely affected by real world operating conditions; the Company may be unsuccessful or experience delays in manufacturing and distributing its new and existing products; telecommunications service providers may choose to slow their deployment of the Company's products or utilize competing products; the Company may be unable to collect receivables as they become due; the Company may fail to manage costs, including the cost of developing new products and manufacturing and distribution of its existing offerings; the Company may fail to successfully continue to effect operating expense savings; channel inventory information reported is estimated based on the average number of weeks of inventory on hand on the last Saturday of the quarter, as reported by certain of NETGEAR's customers; changes in the level of NETGEAR's cash resources and the Company's planned usage of such resources; changes in the Company's stock price and developments in the business that could increase the Company's cash needs, fluctuations in foreign exchange rates, and the actions and financial health of the Company's customers. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Further information on potential risk factors that could affect NETGEAR and its business are detailed in the Company's periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the

Page 3


section entitled “Part II - Item 1A. Risk Factors,” pages 46 through 65, in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2012, filed with the Securities and Exchange Commission on November 6, 2012. NETGEAR undertakes no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Use of Non-GAAP Financial Information:
To supplement our consolidated financial statements presented on a GAAP basis, NETGEAR uses non-GAAP financial measures, which are adjusted to exclude certain expenses and tax benefits, where applicable. We believe non-GAAP financial measures are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of NETGEAR's underlying operational results and trends and our marketplace performance. For example, the non-GAAP results are an indication of our baseline performance before charges that are considered by management to be outside of our core operating results. In addition, these adjusted non-GAAP results are among the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial measures prepared in accordance with generally accepted accounting principles in the United States.    

-Financial Tables Attached-


Page 4



NETGEAR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

 
December 31,
2012
 
December 31,
2011
 
 
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
149,032

 
$
208,898

Short-term investments
227,845

 
144,797

Accounts receivable, net
256,014

 
261,307

Inventories
174,903

 
163,724

Deferred income taxes
22,691

 
23,088

Prepaid expenses and other current assets
33,724

 
32,415

Total current assets
864,209

 
834,229

Property and equipment, net
19,025

 
15,884

Intangibles, net
27,621

 
20,956

Goodwill
100,880

 
85,944

Other non-current assets
22,834

 
14,357

Total assets
$
1,034,569

 
$
971,370

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
87,310

 
$
117,285

Accrued employee compensation
18,338

 
26,896

Other accrued liabilities
126,255

 
120,480

Deferred revenue
27,645

 
40,093

Income taxes payable
1,382

 
4,207

Total current liabilities
260,930

 
308,961

Non-current income taxes payable
13,735

 
18,657

Other non-current liabilities
5,293

 
4,995

Total liabilities
279,958

 
332,613

Stockholders' equity:
 
 
 
Common stock
38

 
38

Additional paid-in capital
394,427

 
364,243

Cumulative other comprehensive income
4

 
23

Retained earnings
360,142

 
274,453

Total stockholders' equity
754,611

 
638,757

Total liabilities and stockholders' equity
$
1,034,569

 
$
971,370



Page 5



NETGEAR, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

 
Three Months Ended
 
Year Ended
 
December 31,
2012
 
September 30,
2012
 
December 31,
2011
 
December 31,
2012
 
December 31,
2011
 
 
 
 
 
 
 
 
 
 
Net revenue
$
310,436

 
$
315,210

 
$
309,155

 
$
1,271,921

 
$
1,181,018

Cost of revenue
219,058

 
217,522

 
214,182

 
888,368

 
811,572

Gross profit
91,378

 
97,688

 
94,973

 
383,553

 
369,446

Operating expenses:
 
 
 
 
 
 
 
 
 
Research and development
14,789

 
17,399

 
13,597

 
61,066

 
48,699

Sales and marketing
35,519

 
37,600

 
39,278

 
149,766

 
154,562

General and administrative
11,507

 
11,888

 
8,379

 
45,027

 
39,423

Restructuring and other charges
1,190

 
—

 
—

 
1,190

 
2,094

Litigation reserves, net
(30
)
 
269

 
33

 
390

 
(201
)
Total operating expenses
62,975

 
67,156

 
61,287

 
257,439

 
244,577

Income from operations
28,403

 
30,532

 
33,686

 
126,114

 
124,869

Interest income
154

 
109

 
127

 
498

 
477

Other income (expense), net
(153
)
 
3,070

 
(198
)
 
2,670

 
(1,136
)
Income before income taxes
28,404

 
33,711

 
33,615

 
129,282

 
124,210

Provision for income taxes
12,325

 
9,920

 
10,780

 
42,743

 
32,842

Net income
$
16,079

 
$
23,791

 
$
22,835

 
$
86,539

 
$
91,368

 
 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
 
Basic
$
0.42

 
$
0.62

 
$
0.61

 
$
2.27

 
$
2.46

Diluted
$
0.41

 
$
0.61

 
$
0.60

 
$
2.23

 
$
2.41

 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding used to compute net income per share:
 
 
 
 
 
 
 
 
 
Basic
38,293

 
38,162

 
37,590

 
38,057

 
37,121

Diluted
38,924

 
38,802

 
38,260

 
38,747

 
37,932

 
 
 
 
 
 
 
 
 
 
Stock-based compensation expense was allocated as follows:
 
 
 
 
 
 
 
 
 
Cost of revenue
$
326

 
$
473

 
$
262

 
$
1,347

 
$
999

Research and development
721

 
778

 
603

 
2,787

 
2,476

Sales and marketing
1,128

 
1,238

 
1,187

 
4,751

 
5,136

General and administrative
1,391

 
1,530

 
1,376

 
5,487

 
5,151



Page 6





NETGEAR, INC.
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Excluding amortization of purchased intangibles, stock-based compensation, restructuring and other charges, acquisition related compensation and expense, impact to cost of sales from acquisition accounting adjustments to inventory, litigation reserves, and gain on sale of cost method investment, net of tax.
(In thousands, except per share data)
(Unaudited)

 
Three Months Ended
 
Year Ended
 
December 31,
2012
 
September 30,
2012
 
December 31,
2011
 
December 31,
2012
 
December 31,
2011
 
 
 
 
 
 
 
 
 
 
Net revenue
$
310,436

 
$
315,210

 
$
309,155

 
$
1,271,921

 
$
1,181,018

Cost of revenue
217,286

 
215,695

 
212,872

 
882,258

 
805,306

Gross profit
93,150

 
99,515

 
96,283

 
389,663

 
375,712

 
 
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
 
 
Research and development
14,068

 
16,621

 
12,994

 
58,279

 
46,183

Sales and marketing
34,391

 
36,362

 
38,091

 
145,015

 
149,426

General and administrative
9,283

 
10,358

 
7,003

 
38,707

 
34,272

Total operating expenses
57,742

 
63,341

 
58,088

 
242,001

 
229,881

Income from operations
35,408

 
36,174

 
38,195

 
147,662

 
145,831

Interest income
154

 
109

 
127

 
498

 
477

Other income (expense), net
(153
)
 
(56
)
 
(198
)
 
(456
)
 
(1,136
)
Income before income taxes
35,409

 
36,227

 
38,124

 
147,704

 
145,172

Provision for income taxes
13,951

 
10,959

 
11,635

 
48,266

 
39,935

Net income
$
21,458

 
$
25,268

 
$
26,489

 
$
99,438

 
$
105,237

 
 
 
 
 
 
 
 
 
 
Net income per share:
 
 
 
 
 
 
 
 
 
Basic
$
0.56

 
$
0.66

 
$
0.70

 
$
2.61

 
$
2.83

Diluted
$
0.55

 
$
0.65

 
$
0.69

 
$
2.57

 
$
2.77

 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding used to compute net income per share:
 
 
 
 
 
 
 
 
 
Basic
38,293

 
38,162

 
37,590

 
38,057

 
37,121

Diluted
38,924

 
38,802

 
38,260

 
38,747

 
37,932



Page 7



NETGEAR, INC.
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES
(In thousands, except per share data)
(Unaudited)

STATEMENT OF OPERATIONS DATA:
 
Three Months Ended
 
Year Ended
 
December 31,
2012
 
September 30,
2012
 
December 31,
2011
 
December 31,
2012
 
December 31,
2011
 
 
 
 
 
 
 
 
 
 
GAAP gross profit
$
91,378

 
$
97,688

 
$
94,973

 
$
383,553

 
$
369,446

Amortization of intangible assets
1,446

 
1,354

 
1,048

 
4,763

 
4,658

Stock-based compensation expense
326

 
473

 
262

 
1,347

 
999

Impact to cost of sales from acquisition accounting adjustments to inventory
—

 
—

 
—

 
—

 
609

Non-GAAP gross profit
$
93,150

 
$
99,515

 
$
96,283

 
$
389,663

 
$
375,712

Non-GAAP gross margin
30.0
%
 
31.6
%
 
31.1
%
 
30.6
%
 
31.8
%
 
 
 
 
 
 
 
 
 
 
GAAP research and development
$
14,789

 
$
17,399

 
$
13,597

 
$
61,066

 
$
48,699

Stock-based compensation expense
(721
)
 
(778
)
 
(603
)
 
(2,787
)
 
(2,476
)
Acquisition related compensation and expense
—

 
—

 
—

 
—

 
(40
)
Non-GAAP research and development
$
14,068

 
$
16,621

 
$
12,994

 
$
58,279

 
$
46,183

 
 
 
 
 
 
 
 
 
 
GAAP sales and marketing
$
35,519

 
$
37,600

 
$
39,278

 
$
149,766

 
$
154,562

Stock-based compensation expense
(1,128
)
 
(1,238
)
 
(1,187
)
 
(4,751
)
 
(5,136
)
Non-GAAP sales and marketing
$
34,391

 
$
36,362

 
$
38,091

 
$
145,015

 
$
149,426

 
 
 
 
 
 
 
 
 
 
GAAP general and administrative
$
11,507

 
$
11,888

 
$
8,379

 
$
45,027

 
$
39,423

Stock-based compensation expense
(1,391
)
 
(1,530
)
 
(1,376
)
 
(5,487
)
 
(5,151
)
Acquisition related compensation and expense
(833
)
 
—

 
—

 
(833
)
 
—

Non-GAAP general and administrative
$
9,283

 
$
10,358

 
$
7,003

 
$
38,707

 
$
34,272

 
 
 
 
 
 
 
 
 
 
GAAP total operating expenses
$
62,975

 
$
67,156

 
$
61,287

 
$
257,439

 
$
244,577

Stock-based compensation expense
(3,240
)
 
(3,546
)
 
(3,166
)
 
(13,025
)
 
(12,763
)
Restructuring and other charges
(1,190
)
 
—

 
—

 
(1,190
)
 
(2,094
)
Acquisition related compensation and expense
(833
)
 
—

 
—

 
(833
)
 
(40
)
Litigation reserves, net
30

 
(269
)
 
(33
)
 
(390
)
 
201

Non-GAAP total operating expenses
$
57,742

 
$
63,341

 
$
58,088

 
$
242,001

 
$
229,881


Page 8


NETGEAR, INC.
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)
(In thousands, except per share data)
(Unaudited)

STATEMENT OF OPERATIONS DATA (CONTINUED):

 
Three Months Ended
 
Year Ended
 
December 31,
2012
 
September 30,
2012
 
December 31,
2011
 
December 31,
2012
 
December 31,
2011
 
 
 
 
 
 
 
 
 
 
GAAP operating income
$
28,403

 
$
30,532

 
$
33,686

 
$
126,114

 
$
124,869

Amortization of intangible assets
1,446

 
1,354

 
1,048

 
4,763

 
4,658

Stock-based compensation expense
3,566

 
4,019

 
3,428

 
14,372

 
13,762

Restructuring and other charges
1,190

 
—

 
—

 
1,190

 
2,094

Acquisition related compensation and expense
833

 
—

 
—

 
833

 
40

Impact to cost of sales from acquisition accounting adjustments to inventory
—

 
—

 
—

 
—

 
609

Litigation reserves, net
(30
)
 
269

 
33

 
390

 
(201
)
Non-GAAP operating income
$
35,408

 
$
36,174

 
$
38,195

 
$
147,662

 
$
145,831

Non-GAAP operating margin
11.4
%
 
11.5
%
 
12.4
%
 
11.6
%
 
12.3
%
 
 
 
 
 
 
 
 
 
 
GAAP other income (expense),net
$
(153
)
 
$
3,070

 
$
(198
)
 
$
2,670

 
$
(1,136
)
Gain on sale of cost method investment
—

 
(3,126
)
 
—

 
(3,126
)
 
—

Non-GAAP other income (expense), net
$
(153
)
 
$
(56
)
 
$
(198
)
 
$
(456
)
 
$
(1,136
)
 
 
 
 
 
 
 
 
 
 
GAAP net income
$
16,079

 
$
23,791

 
$
22,835

 
$
86,539

 
$
91,368

Amortization of intangible assets
1,446

 
1,354

 
1,048

 
4,763

 
4,658

Stock-based compensation expense
3,566

 
4,019

 
3,428

 
14,372

 
13,762

Restructuring and other charges
1,190

 
—

 
—

 
1,190

 
2,094

Acquisition related compensation and expense
833

 
—

 
—

 
833

 
40

Impact to cost of sales from acquisition accounting adjustments to inventory
—

 
—

 
—

 
—

 
609

Litigation reserves, net
(30
)
 
269

 
33

 
390

 
(201
)
Gain on sale of cost method investment
—

 
(3,126
)
 
—

 
(3,126
)
 
—

Tax effect
(1,626
)
 
(1,039
)
 
(855
)
 
(5,523
)
 
(7,093
)
Non-GAAP net income
$
21,458

 
$
25,268

 
$
26,489

 
$
99,438

 
$
105,237


Page 9


NETGEAR, INC.
RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)
(In thousands, except per share data)
(Unaudited)

STATEMENT OF OPERATIONS DATA (CONTINUED):

 
Three Months Ended
 
Year Ended
 
December 31,
2012
 
September 30,
2012
 
December 31,
2011
 
December 31,
2012
 
December 31,
2011
 
 
 
 
 
 
 
 
 
 
NET INCOME PER DILUTED SHARE:
 
 
 
 
 
 
 
 
GAAP net income per diluted share
$
0.41

 
$
0.61

 
$
0.60

 
$
2.23

 
$
2.41

Amortization of intangible assets
0.04

 
0.03

 
0.03

 
0.12

 
0.12

Stock-based compensation expense
0.09

 
0.10

 
0.09

 
0.37

 
0.36

Restructuring and other charges
0.03

 
—

 
—

 
0.03

 
0.06

Acquisition related compensation and expense
0.02

 
—

 
—

 
0.02

 
0.00

Impact to cost of sales from acquisition accounting adjustments to inventory
—

 
—

 
—

 
—

 
0.02

Litigation reserves, net
0.00

 
0.01

 
0.00

 
0.01

 
(0.01
)
Gain on sale of cost method investment
—

 
(0.08
)
 
—

 
(0.08
)
 
—

Tax effect
(0.04
)
 
(0.02
)
 
(0.03
)
 
(0.13
)
 
(0.19
)
Non-GAAP net income per diluted share
$
0.55

 
$
0.65

 
$
0.69

 
$
2.57

 
$
2.77



Page 10


SUPPLEMENTAL FINANCIAL INFORMATION
(In thousands, except per share data, DSO, inventory turns, weeks of channel inventory and headcount)
(Unaudited)

 
Three Months Ended
 
December 31,
2012
 
September 30,
2012
 
July 1,
2012
 
April 1,
2012
 
December 31,
2011
 
 
 
 
 
 
 
 
 
 
Cash, cash equivalents and short-term investments
$
376,877

 
$
362,420

 
$
360,428

 
$
369,420

 
$
353,695

Cash, cash equivalents and short-term investments per diluted share
$
9.68

 
$
9.34

 
$
9.34

 
$
9.58

 
$
9.24

 
 
 
 
 
 
 
 
 
 
Accounts receivable, net
$
256,014

 
$
248,862

 
$
271,769

 
$
249,208

 
$
261,307

Days sales outstanding (DSO)
76

 
72

 
77

 
70

 
76

 
 
 
 
 
 
 
 
 
 
Inventories
$
174,903

 
$
178,916

 
$
152,820

 
$
134,314

 
$
163,724

Ending inventory turns
5.0

 
4.9

 
5.9

 
6.7

 
5.2

 
 
 
 
 
 
 
 
 
 
Weeks of channel inventory:
 
 
 
 
 
 
 
 
 
U.S. retail channel
8.8

 
9.8

 
12.3

 
9.8

 
7.3

U.S. distribution channel
10.2

 
8.4

 
8.6

 
8.6

 
9.0

EMEA distribution channel
4.4

 
4.4

 
4.1

 
5.0

 
5.4

APAC distribution channel
7.2

 
4.7

 
5.7

 
5.6

 
6.7

 
 
 
 
 
 
 
 
 
 
Deferred revenue
$
27,645

 
$
28,205

 
$
25,478

 
$
25,156

 
$
40,093

 
 
 
 
 
 
 
 
 
 
Headcount
850

 
854

 
818

 
810

 
791

Non-GAAP diluted shares
38,924

 
38,802

 
38,595

 
38,576

 
38,260


NET REVENUE BY GEOGRAPHY
 
Three Months Ended
 
Year Ended
 
December 31,
2012
 
 
 
September 30,
2012
 
 
 
December 31,
2011
 
 
 
December 31,
2012
 
 
 
December 31,
2011
 
 
Americas
$
169,979

 
54
%
 
$
177,647

 
56
%
 
$
156,574

 
51
%
 
$
679,419

 
53
%
 
$
587,056

 
50
%
EMEA
110,460

 
36
%
 
104,368

 
33
%
 
125,027

 
40
%
 
457,724

 
36
%
 
477,713

 
40
%
APAC
29,997

 
10
%
 
33,195

 
11
%
 
27,554

 
9
%
 
134,778

 
11
%
 
116,249

 
10
%
Total
$
310,436

 
100
%
 
$
315,210

 
100
%
 
$
309,155

 
100
%
 
$
1,271,921

 
100
%
 
$
1,181,018

 
100
%

NET REVENUE BY SEGMENT
 
Three Months Ended
 
Year Ended
 
December 31,
2012
 
 
 
September 30,
2012
 
 
 
December 31,
2011
 
 
 
December 31,
2012
 
 
 
December 31,
2011
 
 
Retail
$
138,539

 
44
%
 
$
123,457

 
39
%
 
$
129,719

 
42
%
 
$
504,797

 
40
%
 
$
481,795

 
41
%
Commercial
73,447

 
24
%
 
79,240

 
25
%
 
83,646

 
27
%
 
307,945

 
24
%
 
331,439

 
28
%
Service Provider
98,450

 
32
%
 
112,513

 
36
%
 
95,790

 
31
%
 
459,179

 
36
%
 
367,784

 
31
%
Total
$
310,436

 
100
%
 
$
315,210

 
100
%
 
$
309,155

 
100
%
 
$
1,271,921

 
100
%
 
$
1,181,018

 
100
%


Page 11
 GRAPHIC 3 netgearweb.jpg GRAPHIC begin 644 netgearweb.jpg M_]C_X``02D9)1@`!`@``9`!D``#_[``11'5C:WD``0`$````9```_^X`#D%D M;V)E`&3``````?_;`(0``0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$!`0$! M`0$!`0$!`0$!`0$!`0("`@("`@("`@("`P,#`P,#`P,#`P$!`0$!`0$"`0$" M`@(!`@(#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,#`P,# M`P,#`P,#`P,#_\``$0@`<`)=`P$1``(1`0,1`?_$`-X``0`#``(#`0$````` M```````)"@L'"`0%!@(#`0$``P`#`0$!````````````!@<(`P0%`@D!$``` M!@(!`@$$#@0+!P,%```!`@,$!08`!P@1"1(A$Q0*(M055G:6UA>7MU@9.1HQ MM19W0=,VMC<8.$AXB,@R(]57:*CH44(S820E)I@1``$#`@($!0P,"0H%!0$` M``$``@,1!`4&(3$2!T%181,7<=$B,E*24W.3LQ0V@9&Q8K+2(]-4=!55H4)R MPS2$-446\(*B,T,DI,1E"*/CY'48P<)CE"7Q_]H`#`,!``(1`Q$`/P"_QA$P MB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3 M")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81 M,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A M$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F M$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB M81,(F$3")A$PB81,(F$3")A$PB81,(J`GYB/N2>^;4?T4Q7M[-B="V1_!W/E MCUEI[HJREW$_E#UD_,1]R3WS:C^BF*]O8Z%LC^#N?+'K)T592[B?RAZR[4\, M?6*>09^0-,AN8CNB2.B;0N:MV:=JU+1KTQ0G4FJB2*O!CL'*YY.'AGA`+(MA M(8_H"RJR('71324C^:-RN##!I9T MD$$4((U@C@(X0L^N:YCBQX(>#0@Z""-8(XUY6?*^4PBX`Y8[$LNH.+/);;-, M59H7#5^@-R;$JBT@T(_8(V6DZZL=E@E7S%0Q2/6:SE MVR@Q+,%CAUU4VUQ>0QOH:'9?(UKJ'@-":'@7J8):0W^-6=C<5YB:ZBC=0T.R M^1K30\!H3I5(/\Q'W)/?-J/Z*8KV]FJ^A;(_@[GRQZRT5T592[B?RAZR?F(^ MY)[YM1_13%>WL="V1_!W/ECUDZ*LI=Q/Y0]96'NQUW`.1//.J\B9?D%)521> M:UL&N(ZL#5JNUK*:3:S1UP7:6E@%*ZNV*JO>-E?"LLSVD>%AX;,R0NVG;7:EH%.+65.[E M1JM4PB@"[YW<2Y)@>DKH^@ M^;_;%[YWP]?.^(G7IX`RXMTV2L#SA]H?;39'>C\QL;#RS^LY[:K37VC:<6E6 M?NXRIA&9_3?M02'F.9V=EVSV_.[5>/M!10`_F(^Y)[YM1_13%>WLN+H6R/X. MY\L>LK/Z*LI=Q/Y0]9/S$?LGY MB/N2>^;4?T4Q7M['0MD?P=SY8]9.BK*7<3^4/63\Q'W)/?-J/Z*8KV]CH6R/ MX.Y\L>LG15E+N)_*'K)^8C[DGOFU']%,5[>QT+9'\'<^6/63HJREW$_E#UEV M?X4]\[GOO/EQQRTY?;#K%Q2MF;?H],M"$7K>-C9%6$GIMJPD$V3]-X=1FY,W M5$"J``B4?+G@YIW39/PG+E]B=FR<74%M(]E921M-:2*BFD5X%XV8=V^6<-P* M[O[5LPN(8'O;60D5`J*BFE77,RRL]*$'O><\.0'!#5FC[;H"1J\=,7S8%BKM M@/:*RVLK=2-C:ZG)-2M4'*R)6RP.C")C@(B)?)EK;JW,&*!YCBB:YNR[9TEU-/L*N%^8C[DGOFU']% M,5[>R[NA;(_@[GRQZRMGHJREW$_E#UD_,1]R3WS:C^BF*]O8Z%LC^#N?+'K) MT592[B?RAZR?F(^Y)[YM1_13%>WL="V1_!W/ECUDZ*LI=Q/Y0]9/S$?LGYB/N2>^;4?T4Q7M['0MD?P=SY8]9 M.BK*7<3^4/63\Q'W)/?-J/Z*8KV]CH6R/X.Y\L>LG15E+N)_*'K)^8C[DGOF MU']%,5[>QT+9'\'<^6/63HJREW$_E#UE<<[;V^-@+1`MA:1J)U$FI`CXI$!`!'J8!-_#F9L\819X#FJ\PC#PX M6<+VAH<=HT,;'&IX=)*H/-F&VN#YBNL-L@X6L3VAM34Z6-.D\.DE=W\BBCJ8 M117\\>[UQ1X(@]JMEFG.TMVIHE,WTQKURS6,>&H;%9-9(P M$<>?E%$5BJH,5TO$8M@Y1W;9BS=2X@:+?"JZ9Y`0TZ:'FV]M(=>JC`10O!4T MRUD7&\RTFA:(<.\*^M#^0W6\Z]5&U%"X%59.1OK#7/'<;F18:M?T_C;3W"BR M;1A089I9+H:/.H2UE>1C"-'(YS^JHGK_ M`,K>3^U5U7&RN16[[V=81$R=KVG=YQJ0HJHK^:092$VNS:H%6;)F*FFF1,HI MEZ`'A#I8EGE[`,/`%C96D-.XBC:?;#:G6=)XU-[7!,&LA2TM+:(#N8V`^V!4 MKA$TM*FDO=@TG(&EP7*Z"5,]E$$!(Y].%3TKSY1*'0_B\0=/TYZO-Q[' M-;+>;I2E!2G%34O1YMFQS>R.;I2E-%.IJ7.&ON5_*#5#E!UK3D3NZB*-SE.1 M*K;1NL,S.!%EG'FG+!E-),7C8RSA0QDEDSI'%0WB*/B-U\J\R[@&(M+;^RM) M@>[B8X^P2VH.@:0:Z%YUU@F#7H+;RTMI`>ZC83[9%1U0I?.,GK%'-G3[UC'; MN2JO)JDIBW16-YK[#'L`XE!,8W59=OVE^';=G<>])>RO*QQKW MKF@<2MH\'^Y3Q>Y[UXSC3]L4BM@1<>D]MNH+B1"(V!7"]$R.':3(JZS*S0*2 MZA2A(QBSEN7QD*OYA8WF0SIFO(V/Y/FV<2CVK-SJ,F9IC=Q"NMKO>N`.NE1I M5'YCRCC.69:7[-JU<:-E9I8[DKK:[WK@#Q5&E=_!$8@'&SF>X.#3LF@C>X4/!I`4BRGAMKC&8K7#;T.-K*]P=0T M.ACCH/!I`5./\Q'W)/?-J/Z*8KV]FF>A;(_@[GRQZROSHJREW$_E#UD_,1]R M3WS:C^BF*]O8Z%LC^#N?+'K)T592[B?RAZR?F(^Y)[YM1_13%>WL="V1_!W/ MECUDZ*LI=Q/Y0]9/S$?LGYB/N M2>^;4?T4Q7M['0MD?P=SY8]9.BK*7<3^4/63\Q'W)/?-J/Z*8KV]CH6R/X.Y M\L>LG15E+N)_*'K*[YQ.V)9=O\6>-.V;FJS7N&T-`:;V):UH]H1@P6LMVUU7 M++.JL6*9C$9,U)235%)(HB"9!`H#Y,RIF*R@PW,%]AUK46UO>31LJ:G99(YK M:GA-`*GA6=<;M(;#&KRQMZ\Q#=2QMJ:G99(YHJ>$T`TKG_/&7EIA$PB^9NEO M@-?4ZV7VUOB1=6I%9GK?99-0.J<=`5J+=3,P^4#J'4C2.9**#_\`0N<]K;37 MMS'9VXVKB61K&CCR2J(MF]8N[A# MZR6![6)+54%6GDW+.J]".M;1TDYAX-P_<+1,4XD57WG7Z\>P.FB=8WLE3$$P M^4SEZ%LC^#N?+'K+EZ*LI=Q/Y0]9/S$?< MD]\VH_HIBO;V.A;(_@[GRQZR=%64NXG\H>LK@7;+Y=..;7#;5>\)Q2+"_K(R ME.VDRB$B-FK'8-0?*1LJJ5BFJL2-)8H[T.91;@801;2290``Z`&:\]Y;;E7, M]QA,6UZ&"'Q$Z28WBHT\.R=IA/"6E41G#`AEW'Y\.CVO111\9.LL<*C3P[)J MPGA+2N_.0]1A,(F$3"*F'S[[WO.WCQS)Y":3UO/ZT;477&P'E=K+>7US'2LD ME&HL6#@A7DBJ[34=K><<&ZG$`$0S4&3]U.4<:RQ98K?,G-W/"'.I(0*U.H4T M:EH#+&[K+6*X!:XC=MF-S+$'.I(0*U.H4T+J!^8C[DGOFU']%,5[>R2="V1_ M!W/ECUE[W15E+N)_*'K)^8C[DGOFU']%,5[>QT+9'\'<^6/63HJREW$_E#UD M_,1]R3WS:C^BF*]O8Z%LC^#N?+'K)T592[B?RAZR]Y">L<]Q6*6,H_\`F'LI M#*-S@WF]8OT$2%0,F1G M3I;*/_E;`A+J&'Q&314L+(`#H451_VLBN*[@[-39V!P/$#)'LTZHC=U%'<1W-P%I=A-X\/X&S-!!XJO9LTZNP>HK'O M$7GSQ;YOUQ>;T#LEE-S$8U2=677TXD-?V-4R+'%(IYRJO%!>#P`^9G=Q MRA_8D<&-U`*1S)D_,&5)Q%C$!9$XT;(WLHG_`)+QHK[UU'<;54V.Y8QG+LHC MQ2$MC)HUX[*-W4<.'D-'D;/:9U MV"BA&47&HBJH"#9`BCI_(.U/"@U:H$4<.W*B:*1#J'*4>[AV'W>*WT6&V##) M>3/#&-'"3RZ@!K).@`$D@!=JQLKG$;N.QLVE]U*\-:!PD^X!K).@"I.@*OOL M#NB0VQ=93,K*1M;V1*5>LF_8ZG M5RT'K[L6S5?Q/2@4PE,N@*+I2Y+/(&`6S'1-M\2QN^AD,<[K4LCMHY6@%T0> M[LWN9M"I'8]0U:+0M6".AKCKO?MB/1-"J`F1N")5G"'AXYD.Q=9W%[ETWD5[9LYRXLKM@;<,BX9H MW-`;+&-))&IHJ75(:?)Q?)]HZUGNL$])CN[5FW-:7+0V9D?#*QS0&R1CC&H: M:UH#-QE5*NTPB81,(LC7/T=6YDPB817#_5]NYP6P145P,WC8A-/0C5<>.%GF M'0":5KS%L9R\U"X=+F\9GM>;(J.8$#F-XV`*,B"0K5HD?-.^3(?,R.S?A+/D M7G^\L:-3B:"8#B<:"3WU'FNTXBA=Z.3^:>[,V',^2;7^$;DE]3=SR29.];\*_P"Y6WGF+W+E]U MBM;9GE4HF$51KUI_^XG_`)GO]/.:/_V_?O?]5_S*O/IF*?4I?@%1K./JKB'U23X)6G%F#EC MY5=_6AOZ!N+G[W+C_,U++]W!_M?$/JS/AJY-S?[3O?$-^&J7N:@6@DPB81,( MF$3")A%I#=EO\,+B7\$+?]:-ZS$.]'U]Q'QC/-1K)>\'UQOO&-\VQ2B9`%#5 M6L[U_>(DN-0O^*?%NQ-4=ZR4>7YT=D1YT7;C3L3)-TUFMX! M8[DPF-",U"'3+Z8LDJSO/=9NT9CM,PY@83A+7?)1'1SQ!TN=P\TTBE/QW5![ M$$.MS=YD)F+TQO&6'[-!^3C.CG2/QG?_`!@Z*?CG7V((=25DI*1F9%_+R[][ M*RTJ]=24I*23I=](R4B^74=/7[]ZZ45HKQ6=E:SM4S2;W3I9K-UJSP+LS.2BY%H<#IJIG`#)KH*AU M3605*H@X1,9)4ATSF*/5OK&TQ*TDL;^-LMI*TMD_#"Y:?!"H?6C1$O\`A&XV_4W3,P-G'UOQ7_N5SYYZQMFC MUEQ'Z]<>=>NW.1M>$F$3"*"'UA3DV&C^##S5D-(^B73DS9FNO&B:)R%>)4*" M,VLNQY!(IP,51FNU18PKD.@F\W-]0Z#[(+R"MO9L+SQ;9[&,=6M7C\A4$\V"M.)A$PBM*>K+< MFQK>UMT<3YU^1KP0.614QO@P?GK*WQN,=G"[FG_D M/TM)Y&N!'5>KFV9A5`)A$PB819I?=N_$DY@?O=D?U5$YNC=SZCX9]6'NE:ZR M-ZI6'B![I4=.352Q,(F$3")A%R)J?;.Q]&[!K&U-36^9HU^ITFA+5^QP;GS# MMJY0.!C(+I&!1K(QCU/JDZ9N4U6KMN(RGF M2.#M1555;*FS$6>\IRY/Q^3#:EUD\[ M5%NJY\]IYML^%"PE523/X!1]UU(_Q><(J3_U+UZ&+ZNZLG^*2V$@8BZRN1;G M5\L8G;/X-KB7H[NR?XA+8C2]=:SB'QO-G9_!M*(/NX26Q`[O7&:R\>ZWK'9% MTB>`UHNE,K%_@&MXUU;X.N0W,*TS#$L`BL1C8',C2XYV,(0%`0/)BT-XO`'7 M+)W<1V71M?P8S)<06KL88Q[XW&.1CG.LV-.UK:`\C;X=G:X5.\C,M/X$O(<5 M?-#;NQ-K'N8XLD:7&U:#M:VT>1M\.SM+AG4E,U)!^K][)L%:N"EPV]O/E'2W ME0J["+CH28H_)AGLJ@P5>H-'CVCAVB66+KVNJS15BF147A9`X$21`"IYZF)7 M6(R[XX(9XN:PVTP]X>\DN;):F*1SI)"::.<<&4TT>T:3K7?OKB^DWH0Q31\W M86UD\.<22'VYC>YSWDTT;;@RFFCVZSK5U?,M+/:81,(F$61KGZ.K7D("R5N6CYV`G(ETJQE(>9B7:3Z-DXYX@8BS5ZQ>($524((& M()T,S0Z%[2'`BH((H01 MQ$+1=[3/<7K_`'`./K9].N8^-Y`:P0C*]N>K("FAZ:[.@9.)V+!LRCU+6[J5 MJH<4P`/09%)PV$!3(@JMBC>+DF;)V,ED(<[!K@ET#^(<,;CW3*C\II:[62!E M+.^5)[E?UEP[Z];^=8LN[-\K9*817%/5;/Y!M/_`-Q/_,]_IYS1_P#M M^_>_ZK_F5>>Y?]Y?J_Y]5<\%PCD6@GE-*KFG\KSH;[4>W/B=3?XW/+Z?,7^[[;OWKS^F3$_H4'?/3\KSH;[4>W M/B=3?XW'3YB_W?;=^].F3$_H4'?/7,O'?U=[3/'?>NI=Z0W(K9UBEM37VN7R M.@I2K55K'2[NN2*,B@P>N6BHN4&SDZ(%,8GL@`?)GEXUOIQ3&L)N<)ELH&1W M,+HRX/>2`X4J`=%0O/Q7>IB&*X;/ALEI"QD\3F%P;+C*=Q+<6\3)72L#2'$B ME#6HHHD_RO.AOM1[<^)U-_CIQTR8G]"@[YZ?E>=#?:CVY\3 MJ;_&XZ?,7^[[;OWITR8G]"@[YZIX[(J[>C[$OM*:.EGS6H72TU=L]<$(FX>- MZ_./HE%TNFG_`+M-9PFT`Y@+[$#"(!Y,TM8W!N[*&Z<`'2Q,>0.#::#3V*J^ M;28W-I%<.%'21M=3BV@#3\*^+SM+LKO7VW^)-=YO\LJ-QUM5NFJ/"VR%N\HX ML=?8L9&4:*52HRUC;I(M9$Q6AR.UXXJ9Q,/4I#"(>7(EG?,<^5,NS8W;QMEE MC=&`UQ(!VWAITC3HK51K-N.2Y=# M?:CVY\3J;_&Y1G3YB_W?;=^]5%TR8G]"@[YZ?E>=#?:CVY\3J;_&XZ?,7^[[ M;OWITR8G]"@[YZGZXC\-CW'@,!NF=_)>7'YJS';X M0*BW<[:EZ+/8KG;YF0L=KMLW*V2RV"6<'=RDW/3;Y>2EY:1=*")W#V0?N5%5 M3CY3'.(YNZWMX+2!EK;-:RWC8&M:!0-:T4``X``*!:_AABMH66\#0R!C0UK1 MH`:!0`<@&A>@SE7*N;>/''C;/*?;=4TEI6KKVJ]VYT9-HV`X-HV)CFQ?/2MB ML4FH46\/7H5H`K.G*G^R4`(0IU3IIG\O&L:P[+^&R8KBD@CM(QI.LDG4UH_& M9;S'OJS+B4SH\$V;&PK04#7RN'&YS@6M/(QH(U;3M:SYCF]7';^5S,)V; M2SX*`.D(XW.<"!U&@4U;1UJ0R2[4_;EE8@(1UPZT@DR!`K<%HVJ)PTOYLC%U1WIJ/P/VKE8P%.Z:%ZGRT\H;[KQL[++-S M6R6[B!Z0QH:YM>&1C1LN;QE@:0-37:E8>6=[%TV9MIF5K7PN-.>8T-Q(XRP-('XKE3\GH&;JTW+UJRQ$G7[%7Y-]"SL%-,7,9+PTO&.5&&5 M2LR+2US7HP5K64_3'K@L?>*?/7VQJQ=.)[HPPKE*D+E5V@Z33711,LB3I7V\ M._RB_`;C!\QW4,3Y(ZL;7:E:\"L;VQMJ_0ZFF@!!()H2H5G:\RT[!YL,QRXB MC=(RK1VTC7C2QS6-J[0:::4(J":$K1TS$:RD_#"Y:?!"H?6C16M$PBGO[3?:`UOW%-,['V?=-PW?7+^ MD;./0VL76(*!E6CYH6JUZP@_<+2IRK)N16F3)^$OL?"0!_2(Y4&\7>5?9*Q2 M"PM;:*=DMOSA+W.!!VW-H*<'8U599WSW=Y4Q"&SMX(Y6R0[9+BX$':=#?:CVY\3J;_&XZ?,7^[[;OWITR8G]"@[Y MZL;Z/U3D7J#5VO]71LW((HMW\PPH%3B:FSE'S=L(MT'D@WB M2K*D3]@4YQ`OD`,I+%L0?BV*7.*2-#)+FXDE+1I#3(\O(!.F@)H%5&(WCL1Q M"?$'M#7SS/D(&H%[BX@<@K1F4GC17V MNKHY)!4YV*MX>"G8-ER)$S*'!.1;S+M"$="!4P$8(@=!Z>,VQ=S>`_9&467T MK:75\\RGCYL=C$.H6@R#QAZBT]NOP?[-RTV[D%+B\<9#Q[`[&,=2@+Q^6H,\ MMA60O-1C9%PQ>R;=@]7C8U1HC(R"+5=5BP6D!7!@D]=D3,@U4>BU5!$IS%%7 MS9O#U\(]/DO8UXC)`>ZM!72::Z#AI45XJKY+V!P82`\UH*Z3370<-.%>%GTO MI=B.)6_)CBYR6TGR`A?23K:OV!!V&39M!(5Q+U<5QCKG7TS*"!"?M'47SY@) MNH>$KD1`0$.N>+F/!XL?P*ZP:6E+B%S03J:_6QW\UX:[V%Y..89'C.$7&%R4 MI-$6@G@=K8[^:X!WL+4KK\_#6J!A+179%M+U^R1$;/P4LS.)VDI#3#)&1C)% MJ<0*)VSUDX(J0>@=2F#,`30RV\S[>=I;,QQ:X'6'--"#R@BBQG+%)!*Z&4%L MK'%I!U@@T(/4*]OG&N-,(F$6:7W;OQ).8'[W9']51.;HW<^H^&?5A[I6NLC> MJ5AX@>Z5'3DU4L7?WM;ZCUUO?GQQSU+MJL-;GKNYV2RLK-67KJ29-99JRH%M MEVJ*SJ(>Q\BB",C'HJ@*2R8B*8`(B`B`P_/^)7N$9/O<1PZ0Q7L3&EK@`2"9 M&`Z""-1(TA1C.=]=X;EF[OK%YCNHV-+7"A()>T<((U$\"N^2'9,[74,U!K6@%^<+^JROZLEMN2KO*O=FF3KG+7MGZ7"WBW\X'@-:]8VJ(;Q! M@1.(?[5?O4OXC$$3=2$`2B'LB49OXPV.?+UKB@'RUO=;%?>2L)=_2C9_+746 M^"Q9+@MOB`_K8;C9_FR--?Z3&JZ+?J%3MI4FU:XV%78ZV4>[04C6K56Y9(RT M?,PDLV.T?,G`$.FLGYQ%0?`HFL[RZP^ZCOK)[H[N)X'%JTPRW M$/:'$'=]+IT>ZKNGR\ZM:V][MS0E'64F?1Z#1MWZH9K7JP5A@TG7;5NW>K-6 MS=F[5120(03>.T)@2L$-Q)V-9)()CS;7DM!):"2 MX`DDZK`DS-EK&H7#'8;^VN)#M2^AR-$4S]'9OAE.PUQ(!)`))`)*Y!XV]L.Q M1NXJKR*Y;VK4%IN6O9=:SZHT/QTU9':IXU:LNJZ+=`VP4(<&C:U4MCC-3M M,8:.J=575ZN+YQB?8/PG`V3LMY6[,LT\ADN)&=Q6I#&&NEK=!J=5368S*S4" M3")A$PBR-<_1U;F3")A$PB[5\+N7.RN$?(.E;[UHN==S`N?WE!UBHVFES2:$KQ,P8%:9BPN3#+P:'"K74J6/':O'4X1HJTEIT%:6O' M??\`K/E%IJB;TU%-EG*-?H9*4CU%`23DHIZF<[68KD\T257+'V&N2J*S-Z@! MSE3<(F\!SD$IS86QK![_``#$YL)Q)FQ=PNH>(C6US3PM<*.:>(Z0#H61,5PN M\P;$)<-OF[-S$ZAXB.!S3PM<*$'B*XP[@/\`8-YM?X1N27U-W//0R=ZWX5_W M*V\\Q=W*_K+AWUZW\ZQ9=V;Y6R4PBN*>JV?R"YC_``OTQ^IMBYFC?_\`I>&> M+G^%$J$WS?I5AXN7W6*UMF>52B815&O6G_[B?^9[_3SFC_\`;]^]_P!5_P`R MKSW+_O+]7_/JHUFCE>:81:='`:\TIIP5X6-'=PJS9TVXF<LGS@T+W[U#XRPWMW'H=WX*3O7=9/1;KPGK+SXZV568<@RB+-7Y1X8 MAU`:1TS'/G(II@`J'!!LY55$A`'RCTZ!GP^WN(V[4D;VMXRT@?A"^'P3QC:D M8]K>,@CW5]!G"N),(F$3"+*2Y`?T\[M_>YLG^>4SGZ&8-^R+7ZM%\!JVOA?[ M,MO$1_`"XBST5WU-#V`/Q/=,_!#H5UXR'SK%7V\_U.N/&1><: MM"G,9++281,(J?7K06]'JUJXS\:&+LZ4='5^P;TL[`.OFWSV:D7]`HKLW\`' MBT("Q$+T\H@\'K^@.NE=P>$M%O?XZ\=FY[8&GB#0))![.U'WJOC8N MX=F7-A:>(`![Q[.U'[2J=9HA7OAG"Z-XEM^1T_&(FVKR:\Y,HOG+ MU+#23IE38!FJH0QT$;.Y:*SSDZ)P([1=,"J%\;0@AD7?-F>7%LQG!(7 M'[/L.QH#H=,X`O6HKU1M.,[;`JQW(*0F8R9EY)_-P M/N>RJMOJM6C"-6,_/2L$0][+7=I#U\+CH(AGB9@WN9OQRL5O*+&S/XL%6N(Y935] M?R2P'N5Y6-;RLS8M6.&06EJ?Q8JAWLR'LZ_DEH/$IE8^/81+%G%Q3%G&1L>V M19L(Z/;(LV+%HW3*DW:LVC8B;=LV02*!2$(4I2E````#*Q>]\CS)(2Z1QJ23 M4DG623K*@#GN>XO>27DU).DD\9*\S/E?*811=]Z3\,+EI\$*A]:-%R?[KO7W M#O&/\U(IEN^]<;'QCO-O6;SFWEK1,(KJGJS5FK<'Q0WVWFK#!Q"ZW(959)"4 MEF$>LJC\VU&)YU--VX2.=/QD$/$`"'4!#,M[]H)Y_>H?&6&]NY1_H=WX*3O7=95+Z+=># MD[T]9/G!H7OWJ'QEAO;N/0[OP4G>NZR>BW7@Y.]/67Z+?Z("(B(CY`QZ'=C^RD[UW67\]%NO!R=Z>LOKR=U&MJX\@7I8-ALF+XK;X9%V\TK6 MUX@3V3OYK:N/(%EF6RT3MXM5ENMH?K2MEM]@F;18I1P(F7DIVP2+F6EGZYA$ M1,L\?NU%##_"8PY^@%M;Q6EO':VX#8(F-8T#@:T``>P``MGP0QVT++>$;,,; M0UHX@T4`]@!?/YS+E5ICMO=N4=S]F_F5:W4"+K8O(M1[-:@/Z(4SYPAQJ7=2 MU)0B':Q14:FMNS&TW$NO-`!5&X%\0FZ`!*`SQG;[+WFX9;M?2RLJ-FTZ!Z50 M/J.'8B+'BNH_AIC-N;/L_/V'P-=2TM*"73H_O%`^H]['L.'*JL^7^KG3"+09 M[!O)L>0'`:GTV9D`=77CA+.=,RY%52F=*U*.;HRVLW_F"D+YB/;U!^E#HCU, M*AX54PCU\F8UWP8#]C9PENHFTM;YHG'%MDTE'5VP7G\L++F\W!_LO,\EQ&*6 M]VWG1Q;1T2#J[0VC^6%-CE6*O$PB819I?=N_$DY@?O=D?U5$YNC=SZCX9]6' MNE:ZR-ZI6'B![I4=.352Q2B=EO\`$]XE_"^W_5=>L@.]'U"Q'Q;/.QJ&[P?4 MZ^\6WSC%I#9B!9+7C/'C2.:.I"0=-F+!BV7>/7KQ=)JT9M&J1EW+ITY7,1%N MV;HD,X,8"7DT`&DDG4`.$E?UK7/<&M!+B:`#63Q!9/ M>U)>%L&S]CSU;*0E=F[[<)>!(FW*T3+"R5AD7L64C0@%*U(5BLF`)@``0/)_ M!GZ(8?'+#800S_US(6!VFO9!H!T\.GA6V[*.2*RABF_K6Q,#N'2&@'3U5\%G M;7:4^7JX59D)SN'N)=J0_HE-T-LJ>DU`3\296[Z3I]5;IF4$Y`3.H]L28EZ` M8Q@(/L>G4Q:@WW3LBR6(G=M+>1-'5`>_W&E5CO9F;'E41N[:2YC`]@.=[C5? M8S(*S.F$3")A$PB81,(LC7/T=6YDPBFT[*7$O6W->Z-2SVKV M=%JBZEJ)=H_8U*-7+C"@J)!%U%N51*ND!TP>,E5VQS%(L8GF.^RM:X=C M%B:N9?4>RM!(PQ/VF.Y"-1T[+@'#2%7>\/'+O+UO8XG9GLF7='-KH>PQOVF' MD/`>`@'6%%UR.X][,XL;HOFB=MPPP]UH4RK&NS)@J>,FXU0`<0MHK[I5)$SZ MO62*52>,UA(0XHJ@"A$U2G3+/L$QJPS!A<.+X:[:M9FU'&TZG,<.!S35KAQC M02*%3+"<4L\:P^+$K%VU;RMJ.,'A:X<#FFH(XQHJ-*X0SU5Z2G$[)_(7;(IL;`!/`8[$B#H1. M9@FBI5&]/(@S5A?VCAS`<>M6G9IKECTDQ'E`9BP_TVR; M_P#L6[3LTUR,UF/J\+.6K?QB1=(Y]K(N.`_-5PW53707X@\CED%T3E51615T MQR>"W.&%M=H(Q*V\^Q9\RP",S8>#H(OX/. ML67GF^%LE,(KBGJMG\@N8_POTQ^IMBYFC?\`_I>&>+G^%$J$WS?I5AXN7W6* MUMF>52B815&O6G_[B?\`F>_T\YH__;]^]_U7_,J\]R_[R_5_SZJ-9HY7FF$3 M")A$PBG/]7<_$DK/[H]K?JICE3;Z?4>3ZS#[I5;[U?5)_CX_=*O]YCM9A3") MA$PBRDN0']/.[?WN;)_GE,Y^AF#?LBU^K1?`:MKX7^S+;Q$?P`N(L]%=]30] M@#\3W3/P0W']5UHRK]\7J%=>,A\ZQ5]O/]3KCQD7G&K0IS&2RTF$3"+/S]86 MGWLSW+;]'.AZH5/6FI("-]D)NC)S5$;2H'00#P?_`)&RN!Z!U_3U_AS9&YB% ML6187MUR3S./5#]CW&A:@W61-CRA$]NM\TKCU=K9]QH4(.6JK&7Z*4QS%(0H MF.80*4I0$QC&,/0I2E#J(B(CY`QJ7\6L;JVBQVKM8ZYUG#III1&NJ)4*+%I( M]/,I1U1K\?7V*:71)`/-D;1Y0+[`GD#_`&0_1GYVXA=OQ"_GOY=,D\SY#U7N M+C^$K$=[65SSU7.+C[J^[SJ+K*'7ND]V7[M6>TW!_,%\]/SM1% MSE?2OG4^;G]G_P!D'M<:>8\S\W%[]U?=#W?\7B\;;S7FNG0_BZELS(&[K^.8 M;J7TST7T9S!3FN6M>!3W)F2/XNBN)/2O1^8I3NUSW;77 M()12ZP+`HX`W@$HE+U`1K[/^[EN1K:VG-[Z4^X>YH;S/-T#0"37G9*ZP*4"A M>GJ3M`Q3")5:\;J``(=;ZW$X#Z3BU MSF&9OR5M'S7..:6.WB=/,0V%C2YQ.H`"I)Z@%5QRR1PQNFE(;$QI))X`!4GV`M3K MBYH^)XU\=-+:&AA14:ZLUU6*DZ>(!X22LXPC41LLZ8`(F'GK!8E73U3H4H>< M<#T``\@?G[C^+28[C=UB\M=JXG<\#B:3V+?YK:-'46,,9Q%^+XK<8G)VTTKG M4X@3V(_FMH/86=+W/>//]6#G9R,U6SCB1M9+?7UUHK9!/P,4J-L5-*[5IC'B M!$RG;03&<"--T#H59D5Q;M=1 MP*U9D[%?MG+5I>N-9N:#'\>W'V#B>J1M=0A=";?1D@]@[#SQ!A58[U<'^T,NC$(Q6>S?MZ5KK(WJE8>('NE1 MTY-5+%VLX0&6KYF9E5ZHRED8)U,%E:I/ULJ*,LNPE$F M8HGF@5$QD%/$"8EZ!UZA'LUX&_,F7[G!&2")UPUHVR-H-H]KM517M::QK7B9 MBPEV.X+/A+'B-TS0-HBH%'-=JJ*ZJ:U9F-ZTG1`*82<-[:8_0?"4VZ(G_H.43T`7?WG'Y!WSJI_H9NOI\?DC\XHS.X[:ON#)6+MS>MV&4MNP;'!N>I'U;?7M=C6FC2O2C?_=/$642T6=H MF.BJL9NJJB>=Y3W/X%ER\9B=W*^]OXC5A0#0@;0!$P MRYNRPC`KIE_K&T4/$YSVD5:LZ;VK#?VM=_\`^'17ZRZ)E&;^O5RS^N_FI%4.^+]AVOUO\V]3:=ZOMFH\ MWM,!M'5D,F?DWI>&>N*DBV3*1SL^DIJ*R,QK)VH7H966(J95Y7SG\14Y`RK; M_=D?JKI57NMSVT=I+`#7F[W.!R[B'H5 MZ[_\>X<-K_XWZA(.3@?[VATEH!S]W#=PT<+M':"S9TV65;N6SA(Z+ANX1.9- M9!=%0I5$EDE"B4Q3`!BF`0$.N;&:X.`&')96?*?DO/;<3]/XVBKWE^*Y$PBN*>JV M?R"YC_"_3'ZFV+F:-_\`^EX9XN?X42H3?-^E6'BY?=8K6V9Y5*)A%4:]:?\` M[B?^9[_3SFC_`/;]^]_U7_,J\]R_[R_5_P`^JC6:.5YIA$PB81,(IS_5W/Q) M*S^Z/:WZJ8Y4V^GU'D^LP^Z56^]7U2?X^/W2K_>8[684PB81,(LI+D!_3SNW M][FR?YY3.?H9@W[(M?JT7P&K:^%_LRV\1'\`+B+/17?4T/8`_$]TS\$-Q_5= M:,J_?%ZA77C(?.L5?;S_`%.N/&1><:M"G,9++281,(L]WU@6#/$]SG;C\[1- ML6S4G3TXDL0">*0(WUO7ZV+M;P^R%0BE?,@'B]EX$"_P=,V9N; MEF;U/E7.I_2K[*U)NODV\GP-K78DE'4^49\$FB1C MBT]4&A_"%[[.%<2IU^M)_P`O>''P0W/^N==9ICJI.:%5V)A$PB816WO5:*XJ+KFI;E04(@FAH6N,C`H@**ZJRFVY.3`Z0"+ MDBC0B#3P&$"D,"Q@#Q"4?#G+_WI]I6[,S>J+47?>D_#"Y:?!"H?6C16M$PB81,(F$7U^OOY>TCX7UK]?G4L0IA$PBS9>[SR;'E3SWW==8^1]T:52)<-.ZY.0YU&H5#6Z[N)4>L# MG`IA862UJ2DPGU`O0)']&;CW;8#_``]D^TM7MV;J5O/2\>W+0T/*UFPP_DK6 M^1<'^Q4]_=Q+5#N48^FU M;1S25WM8"G0*HB5W2CLFE&$5%!\TFLCL:;B'!0Z',1BIPO*L[6&DUR1"WJ/J7_`/##A[*T1LQ8 MLK*HGZSUQS$CCCQRPAV(^%9.3T/?'A"%`A541DKUK8YP('B,HLFI9$U%#_\` MM20)U_0&:0W"XW5M[EV4ZJ7$8]J.7\T0.4E7IN=Q;1=8)(=5)F#VF2?F_;*J M0YHU7DOL==WRR:MO]'V;37GN=;M>6ZMWBKO_`/>"#.P5289SL.Y,"2J*AB(R M#%,Q@*VLEG<"L$ ML;F.'&UP(/X"M3_0VX*WR`TKJK=U1-_^N[4H58O,:@95-9>/)88EM(.(=Z=( M1(61A7:RC1R3]*;A`Y1\H#GY^8OAL^#8I<85<_U]O,^,\NR2`XJ5AX@>Z5'3DU4L3")A$PBY>TSH#=W(BSFINC-57O:UD131 M;BF,85@MOZ5BU MQ#;P'0#(X-J1IHT'2XTX&@GD70Q#%,.PJ'TC$IXH(>`O<&U/$T'2X\@!/(K, MW;R]75MA[%`;5YZJ1D/`1+IM)L./%%1TVZ&34HG.F^NV$#\/RAM.F<"#^1YDD)=(XDDDU M))TDDG223K*HESG/<7O)+R:DG223K)/"2O,SY7RF$3")A$PB81,(LC7/T=6Y MDPBLM>K#?VM=_P#^'17ZRZ)E&;^O5RS^N_FI%4.^+]AVOUO\V]7<,RJL[JF- MZP'VQB:ZL4ASHT=7_-4:Z2Z2?("KQ+001J=XEW`IM=FM$&Y/--Z_=GJA497J M!00FE"+B93W0."&G]SF?/38&Y2Q9_P#>XF_W=Y/;Q@:8C76Y@TLXV`C1L"N@ M-U^V8/[,^^8-+>-FC1LZ:MV7\KF7]4EED#"=!51$YD MUD3'2.9,PHN$3MW"0F(("*:Z"IB'+^@Q#"`]0$0P0#H.D=;2%_"`=!7\L+^I MA%<4]5L_D%S'^%^F/U-L7,T;_P#]+PSQ<_PHE0F^;]*L/%R^ZQ6MLSRJ43"* MHUZT_P#W$_\`,]_IYS1_^W[][_JO^95Y[E_WE^K_`)]5<(,9/,&"]G``>X``2NH`*Z`%VM_J_:&_Y):B^C:F_P#!8(BJW)+5VFUR$DB-UP`JZ!7T9&MG145B@`'*!_"8`\ MH9PSXCB%S'S5S/-)%6M'/T20N.6^O9VYLG^>4SGZ&8-^R+7ZM%\!JVOA?[,MO$1_`"XBST5WU-#V` M/Q/=,_!#H5UXR'SK%7V\_U.N/&1><:M"G,9++281,(J8GK/6E M'\3NKCMR%:,A&%NVN)?4\P\03-YIO8*!87UHB_3U`#P%=3$/?%B(=1$QTXQ0 M/T)AFG]PN*LDPN]P5Q^5BG$S1QMD:&&G(TQBO*X<:T!N=Q%K\/N\*-S",TY=(KSW_ M`-[^SD&T,WUA8O1SB986$M2VB+,5S"(+2$8[Z=.G0,8[V2:<#7-4S&5 M@H`HINY!VJ-?]Q^;U1-W;:]QUNKJB+ML7'H5:%A)9.63MKN!=N%7AI8Y3(': M&@2`0">0P*#U_0&6%D?>%>9(BN(K6WBG%PYA.VYPIL!P%*<>TIKE/.MUE..> M.W@CF$[FD[1(ILAPT4XZJ-#\KSH;[4>W/B=3?XW)WT^8O]WVW?O4OZ9,3^A0 M=\]09]V[MW:I[=%YTYKZ@[:M>S+%L"J6:Y6AK:8J$BE*_"M9=A"51PS3B#F. MJ2;?-)UC2TD[1()=6O$"W5QJ(G+'4Z3"*^+ZM_IMYK[@=, M[(E&YDG>]-PVRT1"IB'3%2H4]I%Z^C"F*<.IQ"S5Z:4*3(?Z+F#JA9IWLW[;K,K;1A[&VMVM/Y3B7G^BYGM*P M+E-JKU%WWI/PPN6GP0J'UHT7)_NN]?<.\8_S4BF6[[UQL?&.\V]9O.;>6M$P MBN<^K7:SUO=^*N]Y"Z:^I%O?M.02K-J]M%4@9]VV:?-S2%O16[F58.UD6WGE M3'\!3`7Q&$>G41S,&_*_OK3,-HRUFEB8;*I#'N:">=DTD`C2L_[W+R[M\:MF MV\LD;3:U(:YS17G'Z=!"L:?U?M#?\DM1?1M3?^"Y2?VSB_TNY\J_XRJ?[4Q+ MZ1/Y1_73^K]H;_DEJ+Z-J;_P7'VSB_TNY\J_XR?:F)?2)_*/ZZ_:>@M%(J$5 M2TKJ5)5(Y5$U$]<4XBB:A#`8AR'+#`8AR&`!`0'J`Y_#C&+D4-UGC'==*VW.;X;AV(M:S$+> M&=C34"1C7@$ZR`X&AZBYF^\!YY?;:Y<__P!);D^6>>7_``=E#[JPW_ZT/Q%Y M_P#"^6ONZQ_^O%\1?";&Y7\I=P5L]-VWR4W]M*H*/6LDI5=C;CV)=ZV>18B< M6+\\'9K')QAGK,53>:5%+SB?B'PB'4<[=EEW+^&3^E8;8V=OJPMI^259*RCE4B819I?=N_$DY@?O=D?U5$YNC=SZCX9]6'NE:ZR M-ZI6'B![I4=.352Q2'=J'6]#V[W".->N-G5.$O-$M5DM3*Q52QL4I&%F&J&N M;D_01>LU@$BH(/FB2Q!_215,I@$!`!R%[Q+Z\PW)E]?6$CX;N-C"U[31S3SK M!H/4)'4*BN=KNYL9W0N"-@X#! MVP'P2SS!ADF&7H^3>*APUL>.U>WE'X02TZ"5I6\6^2^K^7 M>CJ-OK4K#?VM=_P#^'17ZRZ)E&;^O5RS^N_FI%4.^+]AVOUO\V]7<,RJL[KYRWU&L M7^JV.CW6#CK-4;="R5=LM>EVY'<9-0DNT58R4:^;G]BJV=M5C$,'D'H/4!`> M@YSVUS/9W#+NU>Z.YC>'-<#0MZ-1F'@$!(UKH[EV1LZ M#KXG#4[9YX2`Y!,FV]W^D(]9IRD8J"2I0`%"`!@#RYE3,6 MZ/..)9@OL1M66YMKB\FD964`[+Y'.;44T&A%1P+.F-[MSQNA7/'@[;RPZR\OHJS;W$'E M!UD_,2=MOWS;=^BF5]O8Z%<\>#MO+#K)T59M[B#R@ZRY(T]WSN!.\]J:_P!. M4*P;.<779EKAJ95T)/6\C&QRLW//$F$>1Z_4>'39MC.%0\:@@(%#RYT<3W39 MOPG#YL3O&6XM8(W/?24$[+14T%-)IP+J7^[C,V&V4M_=,A%O"PO=20$T`J:" MFE3#Y6B@:81,(F$64ER`_IYW;^]S9/\`/*9S]#,&_9%K]6B^`U;7PO\`9EMX MB/X`7$6>BN^IH>P!^)[IGX(;C^JZT95^^+U"NO&0^=8J^WG^IUQXR+SC5H4Y MC)9:3")A%'3W4.'!>;O#79&JHAFBXV37B);)T^JIYHAPV+46CX["(*NL)4VY M+?#O'L*90QBD1"0!4W_QADVW?9F_A3,\&(2$BQ?\E-XMY%3_`#'!KZ<.S3A4 MKR7C_P##N/PWKS2T?\G+XMQ%3_-(#^79IPK-7D(]_$OWT5*L7D9*1CQS'R4; M(-EF3^/?LECMGC%\S$%>'GTOI=P^#W-C;G`[>,3NC5*Z# M],S52"O-%E5UTJWL*H.E4UG&1#^4CJ&6>$!,Y//E05,9$N/LS;O%E6F9'9NTJ]-WQFU>>X>G:3*L+)LFP2R!!]'C582.7Q,_ES M,F1/"8`4.H`)&F.6LB9DS3<-986[V69(VIG@MB:./:--L^]9M.Y`-*D^`Y0Q MW,$S66<+VVQ(K*\%L;1QU/;'WK:GDII6>IS*Y6[`YJ<1BXY,!76`B8O'RB[HQ"G7.&;-RQEZSRM@L.# M653'&*N<=;WNTO>>J=0T[+0&UH%J7`,$MSP'"I\7OC2U@C+CQDZFM'OGN(:T<)(7 MGXKB5M@^'38E>&EO"PN/&3P-'*XT:.4A:B6DM1U/0FH-:Z6HK;T6I:OI=?I4 M&4Q0*NX:0,<@Q-(O1\1Q5D95=([ERH8QC*N%CG,(B81'`N*XE65H>$-2ZO!@HX=MG*)$'/I\2L'FQ`1\(` M/\.47O4R!F'-N,6][@[8G01VVP[;>&G:VWNT`C50C2JAWB9-QO,F)P76&-C, M4<&P=IX::[;CJ/(0IGOS$G;;]\VW?HIE?;V5?T*YX\';>6'65?=%6;>X@\H. MLGYB3MM^^;;OT4ROM['0KGCP=MY8=9.BK-O<0>4'63\Q)VV_?-MWZ*97V]CH M5SQX.V\L.LG15FWN(/*#K*975^Q*UM_6>N]LTQ5XO3]H46I;$JBT@T.P?K5J M[0$?98)5\Q4,<[)XI%R:0JI&$13.(E$?)E8W]E/AM_/AUU07-O,^-]#4;3'% MKJ'A%0:'A4!O+2:PO);&XH)X9'1NH:C:8XM-#PBH.E?=9U%UE3J]9OY.!+W+ M1O$:`D3'95&/<[JV,U17,=`]BGR/:SKU@Z2(8I$I"%KZ,NZ,4X&,*$R@8OA` M1\6F-P^`\W:W>9)F]E(X01GWK:.D(Y'.V!U6%7UN?P?8M[G'91V4AYJ,^];1 MSSU"[9'5855*S0JNQ,(F$3")A$PB812O=E?DV/&/N`Z?D).1]`I&WW"NC+SY MPYR-O0=A.63:JO7!^ADFZ,3L-G#N5ESE\*;1-8!,0IC'"O-Z6`_;V3;ED;:W M=L.?CXZQ@EX''6,O`'"::]2A&\+!_MC*\[6"MQ`.>9U65VA[+"X`<=%HV9B5 M903"+-+[MWXDG,#][LC^JHG-T;N?4?#/JP]TK761O5*P\0/=*CIR:J6*43LM M_B>\2_A?;_JNO60'>CZA8CXMGG8U#=X/J=?>+;YQBNS=T?@9!<^^,4_KQNFR M8[;I@N[II*RN?,HA'W1JS,12N2#Q3PF0K=X9D]`>]3>;14%N[$IS-"%'+&0, MWS9/QYEZZIPV6C)VCA83VP'=1GLF\8JW1M%9WR;F:7+&,-NC4V,E&3-XV$]L M!W3#V0X]+=&T5FV6"`FZI/3=6LL4^@K'6I>2@+!"2C95G)PTW#/5HZ5BI%HL M4JS5]'OVRB*R9P`Q%""40ZAFX89HKB%EQ`X/@D:'-<#4.:X5!!X00:@\2UM% M+'/$V:%P=$]HHSD7(IA.SYW+);@1O`("\R+YWQHVS(L6& MT8,7S- MQSX7PF$3")A$PB81,(LC7/T=6YDPBLM>K#?VM=__ M`.'17ZRZ)E&;^O5RS^N_FI%4.^+]AVOUO\V]7<,RJL[IA%TYYV\,]=\Z^.UO MT;?"(,)%TF:R:>7A:>!P!TZEFI;RTIL;CGMJ]:3VS`K5O8&O)UQ!6"-4$QT#G M(1-RQE8MT9-,LC!3L8X1>L'1`!-TR<)*D]B<,W/A.*V6-X=#BN'/#[.=FTT_ M@((X'-(+7#@<"#J6N<-Q&TQ:QBQ&Q=MVLK=II]T$@N\F$5Q M3U6S^07,?X7Z8_4VQ>Y?\`>7ZO^?51K-'*\TPB81,(F$7> MCMC_`(A?#+_$7J[^<['(GGSU,Q3ZE+\`J-9Q]5<0^J2?!*TXLPBN^IH>P!^) M[IGX(;C^JZT95^^+U"NO&0^=8J^WG^IUQXR+SC5H4YC)9:3")A$PBJ:=\;L] MS]NFK-S4XJU5S-SCU%-10[L5LPR!D3:-MYG'0!P1/)U`?V;CH`[`D`-5W[N<^ M101LR]C3PV,4$$CM0'!&\\`'XA.@#L20-E5`C%,0QB'*)3E$2F*8!*8IBCT, M4Q1Z"`@(>4,TGK5[+\X7]3"+Z9.Z7%%H2/2MEF28)-BLTV2<]*$:)M")`@1J M1L5T")&Q$0`@$`OA`ODZ=,X#:VQ=MF./;K6NR*UXZTUK@-O;EVV8V;5:UV16 MO'J7S.3=S60,:7.U('!NDN]R[H:1[[D]LN$28O6*! MT'S/4-,=F;/S4:/?I&50?6>2=()*S;U`PH`=%-HV,=)%1P[R#O0WA_Q9=##, M++A@,#Z@ZC,\5'.$<#`*B-ITZ2YU"0UN9MX&=OXCN!A^'DC!X75!U&5XJ-LC M@:!V@.G27'20&SK94BK9,(HN^])^&%RT^"%0^M&BY/\`==Z^X=XQ_FI%,MWW MKC8^,=YMZS>MHV)B&+N3E)%XJ1!HPCF#=1V]>NEU M!`B+9JV2,6_P!^JX.UV'?99[66[KSH+QM%BS)P-!B%2+'.8BT5 M3(MB@H`>$HJD,8"E`?"&^\K8*S+N7K3!V4VH80'$<,A[*0^R\N(Y%LK+V%,P M3!;;"VTVHH@'4X7GLGGV7DE=7<]]>TI9NR9QN0Y)=PK3["8C4I.FZB+([TN3 M==))=L=GK]1E^RR+ENN4Z#IJ[V/+0B*Z1P,51N=0!`0ZY7>]3'#@>3+E\3MF MZN:0,/#62NW0\!$0>0>`T4'WAXL<(RM.Z,TN)Z0LZKZ[7LB,/(/'1:&OS?4+ MWD5#XM0WM+,7^F7?A9.^=UUEGTJZ\))WQZZ?-]0O>14/BU#>TL>F7?A9.^=U MT]*NO"2=\>NGS?4+WD5#XM0WM+'IEWX63OG==/2KKPDG?'KJHGZS-Q>BZM8N M/?*"H0$?$1=BCY725Y]RF*,SJ2BI@*KYF,1+ MU.4H>#2&XG'Y+B"]P"Y>YTC'">.IJ=EU&2#3IH"(S355QU<-Y[H,9?-%=8-. MXN>PB9E34T-&/UZ:`AGLN*JH9H176OZHK+-UDG#=51!=!0BR"Z)S)+(K)&`Z M:J2A!*=-1,Y0$I@$!`0ZA@@.&R[2"OX0"*'2"M/SM]\E$.7'#K0^]CND'-AM M-)9QU\(@9(!;;%JBJU6O29VR8^)DFZLL0X=-TC@!O0W")PZE.4PX)SE@1RYF M:\P@`B&.4F/EC?V<>GAHT@$]T".!8YS1A!P/'KG#0"(F2$L\6[LF=6C2`>4% M=R M#FDN>NI8$A(.>6BJYR)B8MN"9(VQ*&1BZKM$S=(G@*WL0"C%2R@>``?E:+B4 MZCMRJ&EMRN=>=B_A#$7_`"K`76Q)UMUOBZK=+V>]VAH#6A7SNJS5SD?\,WSO ME&U=`3PMUNC_`)NES?>[0U-`54+-#J[4PBMF>K_=T48MS!\"=]6(31T@Z.AQ MIN$PY*`1\@[4477TS)/ES@)VLFZ4,M6A4$3$R?$3[EON>_9+M_QOU=\NL=*.0OO&/O)?FTZ0<3.1VX[GR'TI.:RK%DTFI6(26E)RGRB+^>->ZC*A')HURQ3+I-08^.65\1T MRI]$Q#Q=1`!J3>_G#+>8\$MK7!;ID]PRZVW`->*-YMXKV36C60%6N\W,V!8Y MA-O;X5<-FF9<;1`#A1NPX5[)HX2%:OS/:I5,(F$4#O>R[6;OFSKV,W/HZ":K M\GM7QY8UM%D<,(P=M:_]*.Y6I[M_(N&;%&PUMPZ6>PRZRJ9#@JY:*"/GT#M[ M=W5[P&Y5O787BSR,!N'5)H3S,E*;8`!.RX`->`#J:X:B'67N\SFW+MTR?$5F? MU?SAUR5XB4_DY',?>2_-IT@Y.^G1][)\1/N6^Y[]DNW_&_5WRZQTHY"^\8^\E^;3I!R=].C[V M3XB[:\"^T[W"]3\T>+^S-A\:+/6:-1=V4"SVRP.K/KMTWAH&(GVCN1D5F\=< M7C]9-JW3,82HI**"`>0HCY,CF;]XF2\1RO?V%E?QR7#N3 MLZ]RFR;>VK8H3BO;)"%G]D7F:B'Z=LUFFF]BY6SRCZ/=D37NR2Y".6BY#@!R ME,`&Z"`#Y,VCAF\S(T&&V\$N(1B5D$;2-B700T`C^KX"M48?GW*,-A!%)>QB M1L+`1LR:"&@$=IQKC?[EON>_9+M_QOU=\NL[W2CD+[QC[R7YM=SI!R=].C[V M3XBE&[-_;1YR<;N?&K]M;MX_6&@Z[@JWLUE+6:0L5%D&K-U.4"?B(I$[6#M4 MI(G%Y(NTTBB1$P%$W4P@'40@&\W/64\^(AH;("0V1I.ES`- M`!.M0S/V;LN8MEF:QPZZ9+=.?&0T->"0'M)UM`T`<:N@9E]9^3")A$PB810? M<^^Q;QEYB2,WLK7;C^KOO.5.Y?R-FJL,W?4.ZRJQU7*SR[T1->-2]UY!R<16 ME8UPS='.H99RF].!2Y:V3][6/998RQO1Z;A+:`->XB1@U4CDTZ`-3'!PT4:6 M!6-EC>1C&`L;:70]+PUN@-<:/8.)C].@<#7`C@!:JIG([LN=POC>ZD%W^CI? M;E29G4%&[Z)!SLR-=-TS&\X[4K46T2V'$-D$@!155]#-D4R"(^,0*<2Z&P3> MCDS'&M#+MMM+:)YLGB#7D\BNO"=X.5L6`#;EL$Y_$F^3(Y-HG8/ M)1Y/(HOYN!G*U(N(>QPTM`2[0?"ZBIN.>14BV-U$/"X8OD4'*(]0'R&*'Z,G ML4T4[!+`YKXSJ+2"#[(T*8QRQS,$D3FNC.H@@CVPO4YR+D7MX*OSUHDVT)6H M27L4R].";.(@HUY+R;M01`H$;,(]%PZ7.)C`'0A!'J.<0JWOV].S_QM MX#I-+@S34V[OQ1EYA_N&W1C5LI"F7;';2#37%9*L_:TF/>)K'(HKY]Y)K)', MFH[,B/F@S;G/>5CF<";9W]VP>NB%A)VM-097:#(1P"@:#I#:Z51.:<]XOF8F MW=\AAE=$32=/$9':"\CJ!HUAM=*EERNE"$PB81=`NZ1J/8N]^`_(S4NI:PZN M>Q+G6ZTRK-99.HUDZEG3*_U*7=(HNI=['QR(HQT>LJ(JK)@()B`"(B`#,<@8 ME981G"RQ'$9!%91/<7.()`!C>!H`)UD#0%)\F7UIAN9K2^OGB.UC>XN<:D`% MCAP`G61P*CM]RWW/?LEV_P"-^KOEUFKNE'(7WC'WDOS:T;T@Y.^G1][)\1/N M6^Y[]DNW_&_5WRZQTHY"^\8^\E^;3I!R=].C[V3XB?GDQ^%0YBM[O&96Q64!YRI!-7-[0=B">WH[52C2 MJ07W+?<]^R7;_C?J[Y=9JSI1R%]XQ]Y+\VM%](.3OIT?>R?$3[EON>_9+M_Q MOU=\NL=*.0OO&/O)?FTZ0FW>']2WQLGD5KY?7VU=BS] M?IE<@).1@Y63C]?55B::=RB;FNR*G9^U8?REU5:81,(H\.ZGQ,?>2_-K172#D[Z='WLG MQ$^Y;[GOV2[?\;]7?+K'2CD+[QC[R7YM.D')WTZ/O9/B*SCV#]%\S^*](W;H MSDYI>S:[H[VP0^RM8S,M/5*99!.R3,*_>H`B4!9)IRS]*;144\;E\VFB)R.C M"/C/[*A]\&+97S#=VF+8#=1SW88Z*5H:]IV0=J-W9-:#0EX.FO:\"I[>;B67 M\:N;?$L'N&2W(:8Y`&N!V0=ICNR:*TJX'A[56%[57<"W1SDY+; M3UCQMLULH-WV0]FJM8V=FUZT;2\6K'QR*;M%M*6]C((D,HB8.BJ*9_)^C-:Y M(WA9-PO*=CA]_?1QWD4`:]I9(2#4Z*AA'M%:2REG3*^'Y;L[*\NV,NHX0'-+ M7D@U.C0TCVBNDWW+?<]^R7;_`(WZN^762KI1R%]XQ]Y+\VI%T@Y.^G1][)\1 M=_>UOVM^?&B.?''/;6VN.=DIFNZ99+*]LUF>V6@/6L2U>T"VQ#599K$6V0D5 M@6D9!%(`214$!4`1```1"'9_S_D_%\GWN'8=>LEO96-#6AL@)(D83I+`-0)T ME1C.><\LXEEF[L;&[9)=2,:&M#7@DA[3PM`U`\*O$YE%9R7Q^P:#3]J4:W:V MV!!,K/2+U7I:JVJOR!3&:2T%-LEF$BS5,F9-9$56ZQO`JF8BJ1^AR&*8[N%X>QPUAS34'V^`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`3_/>D^F^F?LYZ1Z7Z1_O/.^+Q^/V M77KY<]+^(LP;'-^G7G-TI3GI*4U4IM4I3@7>^V\9V=CTNZV*4ISKZ4XJ;6I< MN5NGU&FM#,*A5JY56)^GC95N$C(-H?PJ+K%\3>,:M43>%9TJ<.H>0RAA_28> MOFSW-S=.V[F1\C^-SBX^V2>(>TNC-<3W#MJ=[WNXW$D_AKQ+Z/.!<281,(F$ M3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB8 M1,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3") MA$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,( MF$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A$PB81,(F$3")A%_ "_]D_ ` end