-----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, NcOyNp6GhF86IS0bHVJQyL64B63ikvpQ13HOulpG4W/1dIpqfm5YlkZ8MvVCZ8OR 0acnKZK8DJaC4AzpYfj8Ug== 0000950135-96-004722.txt : 19961204 0000950135-96-004722.hdr.sgml : 19961204 ACCESSION NUMBER: 0000950135-96-004722 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19960929 FILED AS OF DATE: 19961108 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: COGNEX CORP CENTRAL INDEX KEY: 0000851205 STANDARD INDUSTRIAL CLASSIFICATION: 3823 IRS NUMBER: 042713778 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-17869 FILM NUMBER: 96656472 BUSINESS ADDRESS: STREET 1: ONE VISION DR CITY: NATICK STATE: MA ZIP: 01760 BUSINESS PHONE: 5086503000 MAIL ADDRESS: STREET 1: ONE VISION DRIVE CITY: NATICK STATE: MA ZIP: 01760 10-Q 1 COGNEX CORPORATION FORM 10-Q 1 =============================================================================== UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) X Quarterly Report pursuant to Section 13 or 15(d) of the Securities ----- Exchange Act of 1934 for the quarterly period ended SEPTEMBER 29, 1996 or __ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _________ to _________ COMMISSION FILE NUMBER 0-17869 ------- COGNEX CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) MASSACHUSETTS 04-2713778 ------------------------------- ------------------ (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) ONE VISION DRIVE NATICK, MASSACHUSETTS 01760-2059 (508) 650-3000 ----------------------------------------------------- (Address, including zip code, and telephone number, including area code, of principal executive offices) 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 ----- ----- As of October 27, 1996, there were 40,770,858 shares of Common Stock, $.002 par value, of the registrant outstanding. Total number of pages: 12 Exhibit index is located on page 10 =============================================================================== 2 INDEX PART I FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Statements of Income for the three and nine months ended September 29, 1996 and October 1, 1995 Consolidated Balance Sheets at September 29, 1996 and December 31, 1995 Consolidated Statement of Stockholders' Equity for the nine months ended September 29, 1996 Consolidated Statements of Cash Flows for the nine months ended September 29, 1996 and October 1, 1995 Notes to Consolidated Financial Statements Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations PART II OTHER INFORMATION Item 1. Legal Proceedings Item 2. Changes in Securities Item 3. Defaults Upon Senior Securities Item 4. Submission of Matters to a Vote of Security Holders Item 5. Other Information Item 6. Exhibits and Reports on Form 8-K Signatures 3 PART I: FINANCIAL INFORMATION ITEM 1: FINANCIAL STATEMENTS COGNEX CORPORATION CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 29, OCTOBER 1, SEPTEMBER 29, OCTOBER 1, 1996 1995 1996 1995 ------------- ---------- -------------- ---------- (UNAUDITED) (UNAUDITED) Revenue .......................................... $26,540 $29,784 $96,376 $72,943 Cost of revenue .................................. 12,297 6,535 31,094 15,723 ------- ------- ------- ------- Gross margin ..................................... 14,243 23,249 65,282 57,220 Research, development and engineering expenses ... 4,978 3,495 14,538 9,284 Selling, general and administrative expenses ..... 6,352 6,335 19,571 17,216 Charge for acquired in-process technology ........ 10,189 10,189 ------- ------- ------- ------- Income from operations ........................... 2,913 3,230 31,173 20,531 Other income ..................................... 1,314 598 3,657 1,898 ------- ------- ------- ------- Income before provision for income taxes ......... 4,227 3,828 34,830 22,429 Provision for income taxes ....................... 983 4,461 10,623 9,948 ------- ------- ------- ------- Net income/(loss) ................................ $ 3,244 $ (633) $24,207 $12,481 ======= ======= ======= ======= Net income/(loss) per share ...................... $ .08 $ (.02) $ .55 $ .30 ======= ======= ======= ======= Weighted average common and common equivalent shares outstanding ................. 43,203 38,192 43,854 41,576 ======= ======= ======= =======
The accompanying notes are an integral part of these consolidated financial statements. 1 4 COGNEX CORPORATION CONSOLIDATED BALANCE SHEETS (Dollars in thousands)
SEPTEMBER 29, DECEMBER 31, 1996 1995 ------------- ------------ (UNAUDITED) ASSETS Current assets: Cash and cash equivalents ................................ $ 44,420 $ 23,911 Investments .............................................. 81,395 66,729 Accounts receivable, less reserves of $928 and $709 in 1996 and 1995, respectively ................... 16,908 24,312 Inventories .............................................. 8,251 12,567 Deferred contract costs .................................. 3,471 Deferred income taxes .................................... 3,526 1,811 Prepaid expenses and other ............................... 4,902 6,463 -------- -------- Total current assets .................................. 162,873 135,793 -------- -------- Property, plant and equipment, net .......................... 26,260 22,133 Other assets ................................................ 3,748 4,169 Deferred income taxes ....................................... 55 77 -------- -------- $192,936 $162,172 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable ......................................... $ 1,617 $ 2,775 Accrued expenses ......................................... 7,759 9,333 Accrued income taxes ..................................... 2,530 3,111 Customer deposits ........................................ 2,353 867 Deferred revenue ......................................... 981 305 -------- -------- Total current liabilities ............................. 15,240 16,391 -------- -------- Other liabilities ........................................... 1,646 1,865 Stockholders' equity: Common stock, $.002 par value - Authorized: 120,000,000 shares, issued: 40,845,776 and 39,039,675 shares in 1996 and 1995, respectively .................................... 82 78 Additional paid-in capital ............................... 77,140 71,171 Cumulative translation adjustment ........................ 47 40 Retained earnings ........................................ 99,670 73,516 Treasury stock, at cost, 80,918 shares in 1996 and 1995 .. (889) (889) -------- -------- Total stockholders' equity ............................ 176,050 143,916 -------- -------- $192,936 $162,172 ======== ========
The accompanying notes are an integral part of these consolidated financial statements. 2 5 COGNEX CORPORATION CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Dollars in thousands)
COMMON STOCK ADDITIONAL CUMULATIVE TREASURY STOCK TOTAL --------------------- PAID-IN TRANSLATION RETAINED ---------------- STOCKHOLDERS' SHARES PAR VALUE CAPITAL ADJUSTMENT EARNINGS SHARES COST EQUITY ---------- --------- ---------- ----------- -------- ------ ----- ------------ Balance at December 31, 1995 .................... 39,039,675 $78 $71,171 $40 $73,516 80,918 $(889) $143,916 Acquisition of Isys Controls, Inc. ....... 1,331,927 3 2,469 1,947 4,419 Issuance of stock under stock option, stock purchase, and bonus plans . 474,174 1 2,028 2,029 Amortization of deferred compensation .............. 15 15 Tax benefit from exercise of stock options .......... 1,457 1,457 Translation adjustment ...... 7 7 Net income .................. 24,207 24,207 ---------- --- ------- --- ------- ------ ----- -------- Balance at September 29, 1996 (unaudited) ............ 40,845,776 $82 $77,140 $47 $99,670 80,918 $(889) $176,050 ========== === ======= === ======= ====== ===== ========
The accompanying notes are an integral part of these consolidated financial statements. 3 6 COGNEX CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands)
NINE MONTHS ENDED SEPTEMBER 29, OCTOBER 1, 1996 1995 ------------- ---------- (UNAUDITED) Cash flows from operating activities: Net income ................................................ $ 24,207 $ 12,481 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization ........................... 3,737 2,206 Loss on disposition of property, plant and equipment .... 97 56 Provision for inventory obsolescence .................... 3,380 Charge for acquired in-process technology ............... 10,189 Tax benefit from exercise of stock options .............. 1,457 6,317 Deferred income tax provision ........................... (1,717) (49) Change in other current assets and current liabilities .. 9,028 (15,776) -------- -------- Net cash provided by operating activities ................. 40,189 15,424 -------- -------- Cash flows from investing activities: Purchase of investments ................................... (46,256) (60,919) Maturity and sale of investments .......................... 31,590 23,131 Purchase of property, plant and equipment ................. (6,842) (8,436) Cash payments related to acquisition of Acumen, Inc., net of cash assumed in 1995 ............................. (1,277) (6,146) Cash assumed in acquisition of Isys Controls, Inc. ........ 918 Other ..................................................... (30) (46) -------- -------- Net cash used in investing activities ..................... (21,897) (52,416) -------- -------- Cash flows from financing activities: Issuance of stock under stock option, stock purchase, and bonus plans ............................... 2,029 3,301 -------- -------- Net cash provided by financing activities ................. 2,029 3,301 -------- -------- Effect of exchange rate changes on cash ...................... 188 104 -------- -------- Net increase/(decrease) in cash and cash equivalents ......... 20,509 (33,587) Cash and cash equivalents at beginning of period ............. 23,911 56,326 -------- -------- Cash and cash equivalents at end of period ................... $ 44,420 $ 22,739 ======== ========
The accompanying notes are an integral part of these consolidated financial statements. 4 7 COGNEX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ------------------------------------------ Basis of Presentation --------------------- As permitted by the rules of the Securities and Exchange Commission applicable to Quarterly Reports on Form 10-Q, these notes are condensed and do not contain all disclosures required by generally accepted accounting principles. Reference should be made to the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 1995, as filed with the Securities and Exchange Commission on March 28, 1996. In the opinion of the management of Cognex Corporation, the accompanying consolidated financial statements contain all adjustments necessary to present fairly the Company's financial position at September 29, 1996, and the results of operations for the three and nine months ended September 29, 1996, and changes in stockholders' equity and cash flows for the nine months ended September 29, 1996. The results disclosed in the Consolidated Statements of Income for the three and nine months ended September 29, 1996 are not necessarily indicative of the results to be expected for the full year. Certain amounts reported in prior periods have been reclassified to be consistent with the current period's presentation. Net Income/(Loss) per Share --------------------------- Net income per share is calculated based on the weighted average number of common and dilutive common equivalent shares outstanding during the period. Primary and fully diluted net income per share are not materially different for each of the periods presented. Dilutive common equivalent shares consist of stock options, calculated using the treasury stock method. Net loss per share is calculated based on the weighted average number of common shares outstanding during the period. Common equivalent shares of 3,892,794 have not been included in the loss period, as such amounts would be antidilutive. INVENTORIES ----------- Inventories consist of the following: (In thousands)
SEPTEMBER 29, DECEMBER 31, 1996 1995 ------------- ------------ (UNAUDITED) Raw materials...................................... $4,407 $ 6,340 Work-in-process.................................... 2,228 4,468 Finished goods..................................... 1,616 1,759 ------ ------- $8,251 $12,567 ====== =======
5 8 COGNEX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS INVENTORIES (continued) - - ----------------------- In the third quarter of 1996, the Company recorded a $4,231,000 inventory charge to "Cost of Goods Sold." The charge is due primarily to the slowdown in the semiconductor and electronics industries and reflects anticipated costs associated with excess inventories resulting from reduced production plans caused by the slowdown and product transition plans over the next year. 6 9 ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS In February 1996, the Company acquired Isys Controls, Inc. ("Isys"), a developer of machine vision systems for high-speed surface inspection. The acquisition was accounted for as a pooling of interests transaction. The results of operations of Isys for the full nine-month period ended September 29, 1996 are included in the Company's results. The results of operations of Isys for the three-month and nine-month periods ended October 1, 1995 were not material to the Company's previously reported results, and therefore, these prior periods have not been restated. Revenue for the three-month and nine-month periods ended September 29, 1996 totaled $26,540,000 and $96,376,000, respectively, compared to $29,784,000 and $72,943,000 for the same periods in 1995, representing an 11% decrease for the three-month period and a 32% increase for the nine-month period. Sales to customers based in the United States, which grew to 49% and 45% of revenue in the three-month and nine-month periods in 1996 compared to 41% of revenue in the same periods in 1995, increased $841,000 or 7% over the three-month period in 1995 and increased $13,144,000 or 44% over the nine-month period in 1995. Sales to customers based in Japan decreased $4,670,000 or 34% over the three-month period in 1995 and increased $5,763,000 or 17% over the nine-month period in 1995. Sales to customers based in Europe increased $457,000 or 13% over the three-month period in 1995 and increased $3,461,000 or 41% over the nine-month period in 1995. The decrease in worldwide revenue for the three-month period ended September 29, 1996 over the comparable period in 1995 is due primarily to decreased volume from Original Equipment Manufacturer ("OEM") customers serving the semiconductor and electronics industries and located principally in the United States and Japan. Sales to OEM customers decreased $5,388,000 or 24% over the three-month period in 1995. The decreased volume from OEM customers was partially offset by increased volume from factory floor customers. Sales to factory floor customers increased $2,144,000 or 28% over the three-month period in 1995 and grew to 36% of revenue in the third quarter of 1996 from 25% of revenue in the third quarter of 1995. The increase in worldwide revenue for the nine-month period ended September 29, 1996 over the comparable period in 1995 is due primarily to increased volume during the first half of 1996 from OEM customers and increased volume during the full nine-month period in 1996 from factory floor customers. Sales to OEM customers increased $8,117,000 or 14% over the nine-month period in 1995. Sales to factory floor customers increased $15,316,000 or 91% over the nine-month period in 1995 and grew to 33% of revenue in the first nine months of 1996 from 23% of revenue in the first nine months of 1995. The increased volume reflects sales of products totaling $3,020,000 or 11% of revenue and $9,446,000 or 10% of revenue in the three-month and nine-month periods ended September 29, 1996, respectively, resulting from the Company's acquisition of Isys in the first quarter of 1996. The declining revenue growth rate experienced in the third quarter of 1996 over the prior year is expected to continue over the next several quarters due to the slowdown in the semiconductor and electronics industries, from which the Company either directly or indirectly derives a significant amount of its revenue. 7 10 Gross margin for the three-month and nine-month periods ended September 29, 1996 was 54% and 68%, respectively, compared to 78% for the same periods in 1995. Gross margin for the third quarter of 1996 included a $4,231,000 inventory charge to "Cost of Goods Sold" which reduced the margin by 16% points for the quarter and 4% points for the year-to-date. The charge is due primarily to the slowdown in the semiconductor and electronics industries and reflects anticipated costs associated with excess inventories resulting from reduced production plans caused by the slowdown and product transition plans over the next year. Excluding the inventory charge, gross margin for the three-month and nine-month periods ended September 29, 1996 was 70% and 72%, respectively, compared to 78% for the same periods in 1995. The decrease in gross margin excluding the inventory charge is due primarily to a shift in product mix to lower margin products including products resulting from the Company's acquisition of Isys, price discounts to some of the Company's larger customers for attaining certain volume thresholds, underabsorbed manufacturing costs resulting from reduced production plans, and increased warranty reserves. Gross margins for the remainder of 1996 are expected to increase slightly from the third quarter's results, excluding the inventory charge. Research, development and engineering expenses for the three-month and nine-month periods ended September 29, 1996 totaled $4,978,000 and $14,538,000, respectively, compared to $3,495,000 and $9,284,000 for the same periods in 1995, representing a 42% increase for the three-month period and 57% increase for the nine-month period. Expenses as a percentage of revenue were 19% and 15% in the three-month and nine-month periods in 1996 compared to 12% and 13% in the same periods in 1995. The increase in aggregate expenses is due primarily to higher personnel-related costs to support the Company's investment in the research and development of new and existing products, in addition to costs associated with the discontinuance of a joint technology project with a manufacturer of specialized optics. The increase in expenses as a percentage of revenue is due primarily to the declining revenue base. Selling, general and administrative expenses for the three-month and nine-month periods ended September 29, 1996 totaled $6,352,000 and $19,571,000, respectively, compared to $6,335,000 and $17,216,000 for the same periods in 1995, representing no percentage increase for the three-month period and a 14% increase for the nine-month period. Expenses as a percentage of revenue were 24% and 20% in the three-month and nine-month periods in 1996 compared to 21% and 24% in the same periods in 1995. The increase in aggregate expenses is due primarily to higher personnel-related costs, both domestically and internationally, to support the Company's worldwide operations, in addition to increased bad debt reserves. Quarter-on-quarter, the increased expenses were offset by lower foreign exchange losses in the third quarter of 1996. In July 1995, the Company acquired Acumen, Inc. ("Acumen"), a developer of machine vision systems for semiconductor wafer identification, for approximately $14,000,000. The acquisition was accounted for as a purchase transaction. $10,189,000 of the purchase price was allocated to in-process technology which was expensed in the third quarter of 1995. Other income for the three-month and nine-month periods ended September 29, 1996 totaled $1,314,000 and $3,657,000, respectively, compared to $598,000 and $1,898,000 for the same periods in 1995, representing an 120% increase in the three-month period and a 93% increase in the nine-month period. The increase in other income is due primarily to an increase in interest income resulting from a higher investment base in 1996. 8 11 The Company's effective tax rate for the three-month and nine-month periods ended September 29, 1996 was 23.3% and 30.5%, respectively, compared to 31.8% and 30.5% for the same periods in 1995, excluding the impact of a $10,189,000 charge for acquired in-process technology in the third quarter of 1995 which had no associated tax benefit. The effective tax rate of 23.3% for the third quarter of 1996 reflects an adjustment to bring the year-to-date effective tax rate to 30.5% due primarily to the reinstatement of the federal research and experimentation credit. LIQUIDITY AND CAPITAL RESOURCES ------------------------------- The Company's cash requirements during the nine-month period ended September 29, 1996 were met through cash generated from operations. Working capital at September 29, 1996 was $147,633,000, an increase of $28,231,000 from the working capital balance at December 31, 1995. Cash and investments increased $35,175,000 from December 31, 1995 primarily as a result of $40,189,000 of cash generated from operations, offset by $6,842,000 of capital expenditures. Cash generated from operations consists of net income, adjusted primarily for the effects of depreciation and amortization, increased inventory obsolescence reserves, and changes in current assets and current liabilities, most notably a decrease in accounts receivable. Capital expenditures for the nine-month period ended September 29, 1996 totaled $6,842,000, all of which were funded from cash generated from operations. Capital requirements consist primarily of expenditures for computer hardware and software equipment, along with expenditures related to a 50,000 square-foot expansion of the Company's corporate headquarters. Future cash requirements related to the expansion are anticipated to approximate $3,000,000, the majority of which is expected to be paid out through the first quarter of 1997 with anticipated funding from cash generated from operations. However, since the Company's planned hiring over the next several quarters is substantially less than anticipated when construction commenced, occupancy of this additional space, along with the related operating costs, will be delayed until the additional space is needed, which is anticipated to be late 1997 or early 1998. In July 1995, the Company acquired Acumen for approximately $14,000,000. The purchase price included $8,452,000 in cash, $755,000 of which, at September 29, 1996, remains to be paid out through the year 2000. The Company believes that the existing cash and investment balances, together with cash generated from operations, will be sufficient to meet the Company's planned working capital and capital expenditure requirements through 1996, including potential business acquisitions. 9 12 PART II: OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS None ITEM 2. CHANGES IN SECURITIES None ITEM 3. DEFAULTS UPON SENIOR SECURITIES None ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None ITEM 5. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits Exhibit 11 - Calculation of Weighted Average Common and Common Equivalent Shares Outstanding Exhibit 27 - Financial Data Schedule (electronic filing only) (b) Reports on Form 8-K None 10 13 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. DATE: November 8, 1996 COGNEX CORPORATION /s/ John J. Rogers, Jr. -------------------------------------------------- John J. Rogers, Jr. Executive Vice President, Chief Financial Officer, and Treasurer (duly authorized officer, principal financial and accounting officer) 11 EX-11 2 CALCULATION OF WEIGHTED AVERAGE PER SHARE 1 EXHIBIT 11 COGNEX CORPORATION CALCULATION OF WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES OUTSTANDING Weighted average common and common share equivalents were computed as follows:
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 29, OCTOBER 1, SEPTEMBER 29, OCTOBER 1, 1996 1995 1996 1995 ------------- ---------- ------------- ---------- (UNAUDITED) (UNAUDITED) Weighted average common shares outstanding ................................ 40,688,502 38,192,058 40,527,250 37,949,954 Weighted average options outstanding ........ 7,210,332 7,488,828 6,940,062 7,601,822 Shares assumed to be purchased .............. (4,695,733) (3,596,034) (3,613,790) (3,975,692) ---------- ---------- ---------- ---------- Primary weighted average common and common equivalent shares outstanding .............. 43,203,101 42,084,852 43,853,522 41,576,084 Dilutive effect of weighted average shares .. 219,532 3,664 (3,236) 447,876 ---------- ---------- ---------- ---------- Fully diluted weighted average common and common equivalent shares outstanding ... 43,422,633 42,088,516 43,850,286 42,023,960 ========== ========== ========== ==========
12 EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF COGNEX CORPORATION FOR THE QUARTER ENDED SEPTEMBER 29, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH CONSOLIDATED FINANCIAL STATEMENTS. 1 U.S. DOLLARS 3-MOS DEC-31-1996 JUL-01-1996 SEP-29-1996 1 44,420,000 81,395,000 17,841,000 933,000 8,251,000 162,873,000 34,889,000 8,629,000 192,936,000 15,240,000 0 82,000 0 0 175,968,000 192,936,000 26,540,000 26,540,000 12,297,000 12,297,000 0 0 0 4,227,000 983,000 3,244,000 0 0 0 3,244,000 .08 .08
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