SUBSCRIBE TO TMCnet
TMCnet - World's Largest Communications and Technology Community

TMCNet:  CDW CORP - 10-Q - Management's Discussion and Analysis of Financial Condition and Results of Operations

[May 12, 2014]

CDW CORP - 10-Q - Management's Discussion and Analysis of Financial Condition and Results of Operations

(Edgar Glimpses Via Acquire Media NewsEdge) Unless otherwise indicated or the context otherwise requires, as used in this "Management's Discussion and Analysis of Financial Condition and Results of Operations," the terms "we," "us," "the Company," "our," "CDW" and similar terms refer to CDW Corporation and its subsidiaries. "Management's Discussion and Analysis of Financial Condition and Results of Operations" should be read in conjunction with the unaudited interim consolidated financial statements and the related notes included elsewhere in this report and with the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013. This discussion contains forward-looking statements that are subject to numerous risks and uncertainties.


Actual results may differ materially from those contained in any forward-looking statements. See "Forward-Looking Statements" at the end of this discussion.

Overview CDW is a Fortune 500 company and a leading provider of integrated information technology ("IT") solutions in the U.S. and Canada. We help our customer base of approximately 250,000 small, medium and large business, government, education and healthcare customers by delivering critical solutions to their increasingly complex IT needs. Our broad array of offerings ranges from discrete hardware and software products to integrated IT solutions such as mobility, security, data center optimization, cloud computing, virtualization and collaboration. We are technology "agnostic," with a product portfolio that includes more than 100,000 products from more than 1,000 brands. We provide our products and solutions through sales force and service delivery teams consisting of more than 4,400 coworkers, including nearly 1,800 field sellers, highly-skilled technology specialists and advanced service delivery engineers.

We are a leading U.S. sales channel partner for many original equipment manufacturers ("OEMs") and software publishers (collectively, our "vendor partners"), whose products we sell or include in the solutions we offer. We believe we are an important extension of our vendor partners' sales and marketing capabilities, providing them with a cost-effective way to reach customers and deliver a consistent brand experience through our established end-market coverage and extensive customer access.

We have two reportable segments: Corporate, which is comprised primarily of private sector business customers, and Public, which is comprised of government agencies and education and healthcare institutions. Our Corporate segment is divided into a medium/large business customer channel, primarily serving customers with more than 100 employees, and a small business customer channel, primarily serving customers with up to 100 employees. We also have two other operating segments, CDW Advanced Services and Canada, which do not meet the reportable segment quantitative thresholds and, accordingly, are combined together as "Other." The CDW Advanced Services business consists primarily of customized engineering services delivered by technology specialists and engineers, and managed services that include Infrastructure as a Service ("IaaS") offerings. Revenues from the sale of hardware, software, custom configuration and third-party provided services are recorded within our Corporate and Public segments.

We may sell all or only select products that our vendor partners offer. Each vendor partner agreement provides for specific terms and conditions, which may include one or more of the following: product return privileges, price protection policies, purchase discounts and vendor incentive programs, such as purchase or sales rebates and cooperative advertising reimbursements. We also resell software for major software publishers. Our agreements with software publishers allow the end-user customer to acquire software or licensed products and services. In addition to helping our customers determine the best software solutions for their needs, we help them manage their software agreements, including warranties and renewals. A significant portion of our advertising and marketing expenses is reimbursed through cooperative advertising reimbursement programs with our vendor partners. These programs are at the discretion of our vendor partners and are typically tied to sales or purchasing volumes or other commitments to be met by us within a specified period of time.

Trends and key factors affecting our financial performance We believe the following trends may have an important impact on our financial performance: • Our Public segment sales are impacted by government spending policies, budget priorities and revenue levels. An adverse change in any of these factors could cause our Public segment customers to reduce their purchases or to terminate or not renew contracts with us, which could adversely affect our business, results of operations or cash flows. Although our sales to the federal government are diversified across multiple agencies and departments, they collectively accounted for approximately 7%, 10% and 10% of our net sales for the years ended December 31, 2013, 2012 and 2011, respectively. In 2013, Public segment results were negatively impacted by sequestration, the partial shutdown of the federal government and federal government budget uncertainty. First quarter 2014 Public segment results were negatively impacted by ongoing federal government uncertainty as budget allocations continued to be refined.

28-------------------------------------------------------------------------------- Table of Contents • An important factor affecting our ability to generate sales and achieve our targeted operating results is the impact of general economic conditions on our customers' willingness to spend on information technology. While macroeconomic uncertainty drove a more cautious approach to customer spending in 2012 and the early part of 2013, uncertainty began to dissipate in the back half of 2013 and this trend continued in the first quarter of 2014. We will continue to closely monitor macroeconomic conditions during the remainder of 2014. Uncertainties related to potential reductions in government spending, requirements associated with implementation of the Affordable Care Act, potential changes in tax and regulatory policy, weakening consumer and business confidence or increased unemployment could result in reduced or deferred spending on information technology products and services by our customers and result in increased competitive pricing pressures.

• We believe that our customers' transition to more complex technology solutions will continue to be an important growth area for us in the future. However, because the market for technology products and services is highly competitive, our success at capitalizing on this transition will be based on our ability to tailor specific solutions to customer needs, the quality and breadth of our product and service offerings, the knowledge and expertise of our sales force, price, product availability and speed of delivery.

Key business metrics Our management monitors a number of financial and non-financial measures and ratios on a regular basis in order to track the progress of our business and make adjustments as necessary. We believe that the most important of these measures and ratios include average daily sales, gross margin, operating margin, net income, Non-GAAP net income, net income per common share, Non-GAAP net income per diluted share, EBITDA and Adjusted EBITDA, free cash flow, return on invested capital, cash and cash equivalents, net working capital, cash conversion cycle (defined to be days of sales outstanding in accounts receivable plus days of supply in inventory minus days of purchases outstanding in accounts payable, based on a rolling three-month average), debt levels including available credit and leverage ratios, sales per coworker and coworker turnover.

These measures and ratios are compared to standards or objectives set by management, so that actions can be taken, as necessary, in order to achieve the standards and objectives. Non-GAAP net income and Adjusted EBITDA are non-GAAP financial measures. We believe these measures provide helpful information with respect to our operating performance and cash flows including our ability to meet our future debt service, capital expenditures and working capital requirements. Adjusted EBITDA also provides helpful information as it is the primary measure used in certain financial covenants contained in our senior credit facilities. See "Results of Operations" for the definitions of Non-GAAP net income and Adjusted EBITDA and reconciliations to net income.

The results of certain of our key business metrics are as follows: (dollars in millions) Three Months Ended March 31, 2014 2013 Net sales $ 2,652.3 $ 2,411.7 Gross profit 425.2 402.0 Income from operations 135.8 120.1 Net income 50.9 28.3 Non-GAAP net income 81.1 56.3 Adjusted EBITDA 193.7 178.6 Average daily sales 42.1 38.3Net debt (defined as long-term debt minus cash and cash equivalents) 2,865.7 3,533.7 Cash conversion cycle (in days) (1) 22 22 (1) Cash conversion cycle is defined as days of sales outstanding in accounts receivable plus days of supply in inventory minus days of purchases outstanding in accounts payable, based on a rolling three-month average.

The prior period has been revised to conform to the current definition.

29 -------------------------------------------------------------------------------- Table of Contents Results of Operations Three Months Ended March 31, 2014 Compared to Three Months Ended March 31, 2013 The following table presents our results of operations, in dollars and as a percentage of net sales, for the three months ended March 31, 2014 and 2013: Three Months Ended Three Months Ended March 31, 2014 March 31, 2013 Dollars in Percentage of Dollars in Percentage of Millions Net Sales Millions Net Sales Net sales $ 2,652.3 100.0 % $ 2,411.7 100.0 % Cost of sales 2,227.1 84.0 2,009.7 83.3 Gross profit 425.2 16.0 402.0 16.7 Selling and administrative expenses 260.9 9.8 251.5 10.4 Advertising expense 28.5 1.1 30.4 1.3 Income from operations 135.8 5.1 120.1 5.0 Interest expense, net (50.1 ) (1.9 ) (72.1 ) (3.0 ) Net loss on extinguishments of long-term debt (5.4 ) (0.2 ) (3.9 ) (0.2 ) Other income, net 0.5 - 0.4 - Income before income taxes 80.8 3.0 44.5 1.8 Income tax expense (29.9 ) (1.1 ) (16.2 ) (0.7 ) Net income $ 50.9 1.9 % $ 28.3 1.1 % Net sales The following table presents our net sales by segment, in dollars and as a percentage of total net sales, and the year-over-year dollar and percentage change in net sales for the three months ended March 31, 2014 and 2013: Three Months Ended March 31, 2014 2013 Percentage Percentage of Total of Total Dollar Percent (dollars in millions) Net Sales Net Sales Net Sales Net Sales Change Change (1) Corporate $ 1,505.6 56.8 % $ 1,403.9 58.2 % $ 101.7 7.2 % Public 969.9 36.6 846.8 35.1 123.1 14.5 Other 176.8 6.7 161.0 6.7 15.8 9.8Total net sales $ 2,652.3 100.1 % $ 2,411.7 100.0 % $ 240.6 10.0 % (1) There were 63 selling days for both the three months ended March 31, 2014 and 2013.

30-------------------------------------------------------------------------------- Table of Contents The following table presents our net sales by customer channel for our Corporate and Public segments and the year-over-year dollar and percentage change in net sales for the three months ended March 31, 2014 and 2013. Net sales of $34.3 million for the three months ended March 31, 2013 have been reclassified from the Small Business customer channel to the Medium / Large customer channel to conform to the current period presentation.

Three Months Ended March 31, Dollar Percent (dollars in millions) 2014 2013 Change Change Corporate: Medium / Large $ 1,274.8 $ 1,180.5 $ 94.3 8.0 % Small Business 230.8 223.4 7.4 3.3 Total Corporate $ 1,505.6 $ 1,403.9 $ 101.7 7.2 % Public: Government $ 254.2 $ 252.3 $ 1.9 0.7 % Education 321.6 232.2 89.4 38.5 Healthcare 394.1 362.3 31.8 8.8 Total Public $ 969.9 $ 846.8 $ 123.1 14.5 % Total net sales for the three months ended March 31, 2014 increased $240.6 million, or 10.0%, to $2,652.3 million, compared to $2,411.7 million for the three months ended March 31, 2013. There were 63 selling days for both the three months ended March 31, 2014 and 2013. The increase in total net sales was primarily the result of growth in hardware as certain customers refreshed their client devices, a more tenured sales force, a continued focus on seller productivity across all areas of the organization and the addition of almost 190 customer-facing coworkers, the majority in pre- and post-sale technical positions such as technical specialists and service delivery roles. Our total net sales growth for the three months ended March 31, 2014 reflected growth in notebooks/mobile devices and desktop computers.

Corporate segment net sales for the three months ended March 31, 2014 increased $101.7 million, or 7.2%, compared to the three months ended March 31, 2013, driven by sales growth in the medium/large customer channel. Within our Corporate segment, net sales to medium/large customers increased 8.0% between periods due to certain of these customers refreshing their client devices, a more tenured sales force, a continued focus on seller productivity and additional customer-facing coworkers, the majority in pre- and post-sale technical positions such as technical specialists and service delivery roles.

This increase was led by growth in notebooks/mobile devices and unit volume growth in desktop computers. Net sales to small business customers increased $7.4 million, or 3.3%, between periods, driven by unit volume growth in notebooks/mobile devices.

Public segment net sales for the three months ended March 31, 2014 increased $123.1 million, or 14.5%, between periods, driven by continued strong performance in the education customer channel. Net sales to education customers increased $89.4 million, or 38.5%, between periods, led by growth in net sales to K-12 customers, reflecting increased sales of notebooks/mobile devices to support standardized digital testing requirements. Net sales to healthcare customers increased $31.8 million, or 8.8%, between periods, driven by unit volume growth in desktop computers and growth in netcomm products. Net sales to government customers increased $1.9 million, or 0.7%, between periods, driven by growth in sales to state/local government customers, partially offset by declines in sales to the federal government, as federal government budget allocations continued to be refined following sequestration, the partial shutdown of the federal government and federal government budget uncertainty in 2013. The increase in net sales to state/local government customers was led by growth in sales of notebooks/mobile devices, desktop computers and software. The decline in net sales to the federal government was led by decreases in sales of software and notebooks/mobile devices, partially offset by growth in sales of enterprise storage.

Gross profit Gross profit increased $23.2 million, or 5.8%, to $425.2 million for the three months ended March 31, 2014, compared to $402.0 million for the three months ended March 31, 2013. As a percentage of total net sales, gross profit decreased 70 basis points to 16.0% for the three months ended March 31, 2014, down from 16.7% for the three months ended March 31, 2013. Gross profit margin was negatively impacted 20 basis points by unfavorable price/mix changes within product margin, as transactional product categories such as desktops and notebooks experienced a higher rate of net sales growth than our overall net sales growth, accompanied by continuing product margin compression in these product categories. Further, gross product margin was negatively impacted 20 basis points by cooperative advertising funding and 10 basis points by inventory adjustments.

31-------------------------------------------------------------------------------- Table of Contents The gross profit margin may fluctuate based on various factors, including vendor incentive and inventory price protection programs, cooperative advertising funds classified as a reduction of cost of sales, product mix, net service contract revenue, commission revenue, pricing strategies, market conditions and other factors, any of which could result in changes in gross profit margins.

Selling and administrative expenses Selling and administrative expenses increased $9.4 million, or 3.7%, to $260.9 million for the three months ended March 31, 2014, compared to $251.5 million for the three months ended March 31, 2013. As a percentage of total net sales, selling and administrative expenses decreased 60 basis points to 9.8% in the first quarter of 2014, down from 10.4% in the first quarter of 2013. Sales payroll, including sales commissions and other variable compensation costs, increased $5.4 million, or 4.7%, between years, consistent with higher sales and gross profit. The remaining increase in selling and administrative expenses was primarily due to higher total coworker count, which increased by 261 coworkers, from 6,779 at March 31, 2013 to 7,040 at March 31, 2014. Total coworker count was 6,967 at December 31, 2013.

Advertising expense Advertising expense decreased $1.9 million, or 5.9%, to $28.5 million for the three months ended March 31, 2014, compared to $30.4 million for the three months ended March 31, 2013. As a percentage of total net sales, advertising expense decreased 20 basis points to 1.1% in the first quarter of 2014, down from 1.3% in the first quarter of 2013. The decrease in advertising expense was due to a more integrated media campaign in the first quarter of 2014 compared to the first quarter of 2013, which was designed to result in comparable impressions at a lower cost.

Income from operations The following table presents income (loss) from operations by segment, in dollars and as a percentage of net sales, and the year-over-year percentage change in income (loss) from operations for the three months ended March 31, 2014 and 2013: Three Months Ended Three Months Ended March 31, 2014 March 31, 2013 Operating Operating Percent Change Dollars in Margin Dollars in Margin in Income (loss) Millions Percentage Millions Percentage from Operations Segments: (1) Corporate $ 101.1 6.7 % $ 94.1 6.7 % 7.3 % Public 54.1 5.6 45.6 5.4 18.6 Other 6.5 3.7 6.1 3.8 7.4 Headquarters (2) (25.9 ) nm* (25.7 ) nm* 0.5 Total income from operations $ 135.8 5.1 % $ 120.1 5.0 % 13.1 % * Not meaningful (1) Segment income (loss) from operations includes the segment's direct operating income (loss) and allocations for Headquarters' costs, allocations for logistics services, certain inventory adjustments and volume rebates and cooperative advertising from vendors.

(2) Includes certain Headquarters' function costs that are not allocated to the segments.

Income from operations was $135.8 million for the three months ended March 31, 2014, an increase of $15.7 million, or 13.1%, compared to $120.1 million for the three months ended March 31, 2013. The results for the three months ended March 31, 2014 were driven by higher net sales and gross profit, partially offset by higher selling and administrative expenses. Total operating margin percentage increased 10 basis points to 5.1% for the three months ended March 31, 2014, from 5.0% for the three months ended March 31, 2013. Operating margin percentage benefited from the decrease in selling and administrative expenses and advertising expense as a percentage of net sales, partially offset by a decrease in gross profit margin.

Corporate segment income from operations was $101.1 million for the three months ended March 31, 2014, an increase of $7.0 million, or 7.3%, compared to $94.1 million for the three months ended March 31, 2013. This increase was primarily driven by higher net sales and gross profit, partially offset by higher selling and administrative expenses. Corporate segment operating margin percentage was 6.7% in both the three months ended March 31, 2014 and 2013.

32-------------------------------------------------------------------------------- Table of Contents Public segment income from operations was $54.1 million for the three months ended March 31, 2014, an increase of $8.5 million, or 18.6%, compared to $45.6 million for the three months ended March 31, 2013. This increase was primarily driven by higher net sales and gross profit, partially offset by higher selling and administrative expenses. Public segment operating margin percentage increased 20 basis points to 5.6% in the three months ended March 31, 2014, from 5.4% in the three months ended March 31, 2013. Operating margin percentage benefited from the decrease in selling and administrative expenses as a percentage of net sales.

Interest expense, net At March 31, 2014, our outstanding long-term debt totaled $3,172.4 million compared to $3,680.8 million at March 31, 2013. Net interest expense for the three months ended March 31, 2014 was $50.1 million, a decrease of $22.0 million compared to $72.1 million for the three months ended March 31, 2013. Net interest expense decreased $19.0 million due to lower debt balances for the three months ended March 31, 2014 compared to the same period of the prior year as a result of debt repayments and refinancing activities completed during 2013 and 2014. The remaining decrease was primarily attributable to lower effective interest rates and reduced amortization of deferred financing costs for the three months ended March 31, 2014.

Net loss on extinguishments of long-term debt During the three months ended March 31, 2014, we recorded a net loss on extinguishment of long-term debt of $5.4 million compared to $3.9 million for the same period in 2013.

In March 2014, we repurchased $25.0 million aggregate principal amount of senior notes. We recorded a loss on extinguishment of long-term debt of $2.7 million, representing the difference between the repurchase price and the net carrying amount of the purchased debt, adjusted for a portion of the unamortized deferred financing costs.

In January and February 2014, we redeemed $50.0 million aggregate principal amount of senior subordinated notes. We recorded a loss on extinguishment of long-term debt of $2.7 million, representing the difference between the redemption price and the net carrying amount of the purchased debt, adjusted for a portion of the unamortized deferred financing costs.

In March 2013, we redeemed $50.0 million aggregate principal amount of senior subordinated notes. We recorded a loss on extinguishment of long-term debt of $3.9 million, representing the difference between the redemption price and the net carrying amount of the purchased debt, adjusted for a portion of the unamortized deferred financing costs. A higher contractual redemption premium percentage was in effect during the three months ended March 31, 2013, resulting in a larger loss on extinguishment for the March 2013 redemption compared to the January and February 2014 redemptions discussed above.

Income tax expense Income tax expense was $29.9 million for the three months ended March 31, 2014, compared to $16.2 million for the same period of the prior year. The effective income tax rate, expressed by calculating the income tax expense as a percentage of income before income taxes, was 37.0% for the three months ended March 31, 2014, compared to 36.4% for the same period of the prior year. The increase in the 2014 effective income tax rate is primarily attributable to a lower benefit realized on state tax credits due to the increase in income before income taxes.

Net income Net income was $50.9 million for the three months ended March 31, 2014, compared to $28.3 million for the three months ended March 31, 2013. Significant factors and events causing the net changes between the periods are discussed above.

Non-GAAP net income Non-GAAP net income was $81.1 million for the three months ended March 31, 2014, an increase of $24.8 million, or 44.1%, compared to $56.3 million for the three months ended March 31, 2013.

33-------------------------------------------------------------------------------- Table of Contents We have included a reconciliation of Non-GAAP net income for the three months ended March 31, 2014 and 2013 below. Non-GAAP net income excludes, among other things, charges related to the amortization of acquisition-related intangibles, non-cash equity-based compensation, secondary-offering related expenses and gains and losses from the early extinguishment of debt. Non-GAAP net income is considered a non-GAAP financial measure. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. We believe that Non-GAAP net income provides helpful information with respect to our operating performance and cash flows including our ability to meet our future debt service, capital expenditures and working capital requirements.

(in millions) Three Months Ended March 31, 2014 2013 Net income $ 50.9 $ 28.3 Amortization of intangibles (1) 40.3 40.3 Non-cash equity-based compensation 3.3 1.9 Net loss on extinguishments of long-term debt 5.4 3.9 Interest expense adjustment related to extinguishments of long-term debt (2) (0.6 ) (0.8 ) Secondary-offering related expenses 0.4 - Aggregate adjustment for income taxes (3) (18.6 ) (17.3 ) Non-GAAP net income $ 81.1 $ 56.3 (1) Includes amortization expense for acquisition-related intangible assets, primarily customer relationships and trade names.

(2) Reflects adjustments to interest expense resulting from debt extinguishments. Represents the difference between interest expense previously recognized under the effective interest method and actual interest paid.

(3) Based on a normalized effective tax rate of 39.0%.

Adjusted EBITDA Adjusted EBITDA was $193.7 million for the three months ended March 31, 2014, an increase of $15.1 million, or 8.5%, compared to $178.6 million for the three months ended March 31, 2013. As a percentage of net sales, Adjusted EBITDA was 7.3% for the three months ended March 31, 2014 compared to 7.4% for the three months ended March 31, 2013.

We have included reconciliations of EBITDA and Adjusted EBITDA for the three months ended March 31, 2014 and 2013 in the tables below. EBITDA is defined as consolidated net income before interest expense, income tax expense, depreciation and amortization. Adjusted EBITDA, which is a measure defined in our credit agreements, means EBITDA adjusted for certain items which are described in the table below. Both EBITDA and Adjusted EBITDA are considered non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures. We believe that EBITDA and Adjusted EBITDA provide helpful information with respect to our operating performance and cash flows including our ability to meet our future debt service, capital expenditures and working capital requirements. Adjusted EBITDA also provides helpful information as it is the primary measure used in certain financial covenants contained in our credit agreements.

34-------------------------------------------------------------------------------- Table of Contents (in millions) Three Months Ended March 31, 2014 2013 Net income $ 50.9 $ 28.3 Depreciation and amortization 52.0 52.0 Income tax expense 29.9 16.2 Interest expense, net 50.1 72.1 EBITDA 182.9 168.6 Adjustments: Non-cash equity-based compensation 3.3 1.9 Sponsor fee - 1.3 Net loss on extinguishments of long-term debt 5.4 3.9 Litigation, net (1) (0.3 ) - Secondary-offering related expenses 0.4 - Other adjustments (2) 2.0 2.9 Total adjustments 10.8 10.0 Adjusted EBITDA $ 193.7 $ 178.6 (1) Relates to unusual, non-recurring litigation matters.

(2) Other adjustments primarily include certain retention costs and equity investment income.

The following table sets forth a reconciliation of EBITDA to net cash provided by operating activities for the three months ended March 31, 2014 and 2013.

Three Months Ended March 31, (in millions) 2014 2013 EBITDA $ 182.9 $ 168.6 Depreciation and amortization (52.0 ) (52.0 ) Income tax expense (29.9 ) (16.2 ) Interest expense, net (50.1 ) (72.1 ) Net income 50.9 28.3 Depreciation and amortization 52.0 52.0 Equity-based compensation expense 3.3 1.9 Deferred income taxes (22.1 ) (14.1 ) Amortization of deferred financing costs, debt premium and debt discount, net 1.6 3.0 Net loss on extinguishments of long-term debt 5.4 3.9 Changes in assets and liabilities 155.2 133.0 Net cash provided by operating activities $ 246.3 $ 208.0 Seasonality While we have not historically experienced significant seasonality throughout the year, sales in our Corporate segment, which primarily serves private sector business customers, are typically higher in the fourth quarter than in other quarters due to customers spending their remaining technology budget dollars at the end of the year. Additionally, sales in our Public segment have historically been higher in the third quarter than in other quarters primarily due to the buying patterns of the federal government and education customers.

Liquidity and Capital Resources Overview We finance our operations and capital expenditures through a combination of internally generated cash from operations and from borrowings under our senior secured asset-based revolving credit facility. We believe that our current sources of funds will be sufficient to fund our cash operating requirements for the next year. In addition, we believe that we 35-------------------------------------------------------------------------------- Table of Contents have adequate sources of liquidity and funding available to meet our longer-term needs. However, there are a number of factors that may negatively impact our available sources of funds. The amount of cash generated from operations will be dependent upon factors such as the successful execution of our business plan and general economic conditions.

Cash Flows Cash flows from operating, investing and financing activities were as follows:

[ Back To Technology News's Homepage ]

OTHER NEWS PROVIDERS







Technology Marketing Corporation

800 Connecticut Ave, 1st Floor East, Norwalk, CT 06854 USA
Ph: 800-243-6002, 203-852-6800
Fx: 203-866-3326

General comments: tmc@tmcnet.com.
Comments about this site: webmaster@tmcnet.com.

STAY CURRENT YOUR WAY

© 2014 Technology Marketing Corporation. All rights reserved.