Vicor Corporation (NASDAQ: VICR) today reported financial results
for the second quarter ended June 30, 2020. These results
will be discussed later today at 5:00 p.m. Eastern Time, during
management’s quarterly investor conference call. The details
for the call are presented below.
Revenues for the second quarter ended June 30,
2020 totaled $70.7 million, an 11.7% increase from $63.4 million
for the corresponding period a year ago, and an 11.6% sequential
increase from $63.4 million for the first quarter of
2020.
Gross margin increased to $30.3 million for the
second quarter of 2020, compared to $29.1 million for the
corresponding period a year ago, and increased sequentially from
$27.3 million for the first quarter of 2020. Gross margin, as
a percentage of revenue, decreased to 42.8% for the second quarter
of 2020, compared to 46.0% for the corresponding period a year ago,
and decreased from 43.1% for the first quarter of 2020.
Net income for the second quarter was $2.7
million, or $0.06 per diluted share, compared to net income of $2.6
million or $0.06 per diluted share, for the corresponding period a
year ago and a net loss of ($1.7) million, or ($0.04) per basic
share, for the first quarter of 2020.
Results for the second quarter of 2020 included
a non-cash charge of $1.2 million associated with the accelerated
recognition of equity-based compensation expenses resulting from
stock option awards made during the period.
Cash and cash equivalents sequentially
increased by $114.0 million to approximately $196.7 million at the
end of the second quarter of 2020, from $82.7 million at the end of
the first quarter of 2020. The Company completed an
underwritten public offering of its common stock in June, resulting
in net proceeds of approximately $109.7 million. Incremental
capital expenditures for the second quarter of 2020 totaled $5.7
million, as compared with $2.5 million for the corresponding period
a year ago and $3.0 million for the first quarter of 2020.
Second quarter bookings increased 45.4% to $87.5
million, from $60.2 million for the corresponding period a year
ago, and increased sequentially 24.9% from $70.1 million for the
first quarter of 2020. Total backlog at the end of the second
quarter of 2020 was $127.5 million, representing an increase of
15.1% from backlog of $110.8 million at the end of the first
quarter of 2020 and 22.4 % from $104.2 million at the end of
2019.
Commenting on the second quarter, Dr. Patrizio
Vinciarelli, Chief Executive Officer, stated, “Second quarter
bookings reflected accelerating demand for Advanced Products.
Second quarter revenue recovered sequentially reflecting ramping
shipments of lateral power system solutions for AI accelerators and
recovery of Asian demand, which had been impacted during the first
quarter by COVID-19. For the second quarter, the impact of
the pandemic shifted from Asia to other regions, notably the United
States, which experienced a 16% sequential decline in shipments, as
non-essential manufacturing slowed considerably. COVID-19 continued
to have an influence on our supply chain during the second quarter,
causing production inefficiencies.”
Dr. Vinciarelli concluded, “Despite the
continuing effects of COVID-19 on the global economy, Vicor’s
outlook remains positive, and our confidence in our long-term
opportunity is high. Expansion of our manufacturing
facilities is underway, and we have placed substantial orders for
additional equipment to expand manufacturing capacity and enable us
to manufacture high volume products with high efficiency. Our
outlook for the third quarter is for a sequential increase in
revenue and earnings per share.”
For more information on Vicor and its products,
please visit the Company’s website at www.vicorpower.com.
Earnings Conference Call
Vicor will be holding its investor conference
call today, Thursday, July 23, 2020 at 5:00 p.m. Eastern
Time. Shareholders interested in participating in the call
who have not pre-registered should call 800-219-3192 at
approximately 4:30 p.m. and use the Passcode 25071226.
Internet users may listen to a real-time audio broadcast of the
conference call on the Investor Relations section of Vicor’s
website at www.vicorpower.com. Please go to the website at
least 15 minutes prior to the call to register, download and
install any necessary software. For those who cannot
participate in the conference call, a replay will be available,
shortly after the conclusion of the call, through August 7,
2020. The replay dial-in number is 888-286-8010 and the
Passcode is 41685203. In addition, a webcast replay of the
conference call will also be available on the Investor Relations
section of Vicor’s website at www.vicorpower.com beginning shortly
after the conclusion of the call.
This press release contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Any statement in
this press release that is not a statement of historical fact is a
forward-looking statement, and, the words “believes,” “expects,”
“anticipates,” “intends,” “estimates,” “plans,” “assumes,” “may,”
“will,” “would,” “should,” “continue,” “prospective,” “project,”
and other similar expressions identify forward-looking
statements. Forward-looking statements also include
statements regarding bookings, shipments, revenue, profitability,
targeted markets, increase in manufacturing capacity and
utilization thereof, future products and capital resources. These
statements are based upon management’s current expectations and
estimates as to the prospective events and circumstances that may
or may not be within the company’s control and as to which there
can be no assurance. Actual results could differ materially
from those projected in the forward-looking statements as a result
of various factors, including those economic, business, operational
and financial considerations set forth in Vicor’s Annual Report on
Form 10-K for the year ended December 31, 2019, under Part I, Item
I — “Business,” under Part I, Item 1A — “Risk Factors,” under
Part I, Item 3 — “Legal Proceedings,” and under
Part II, Item 7 — “Management’s Discussion and Analysis
of Financial Condition and Results of Operations.” The risk
factors set forth in the Annual Report on Form 10-K may not be
exhaustive. Therefore, the information contained in the
Annual Report on Form 10-K should be read together with other
reports and documents filed with the Securities and Exchange
Commission from time to time, including Forms 10-Q, 8-K and 10-K,
which may supplement, modify, supersede or update those risk
factors. Vicor does not undertake any obligation to update
any forward-looking statements as a result of future events or
developments.
Vicor Corporation designs, develops,
manufactures and markets modular power components and complete
power systems based upon a portfolio of patented
technologies. Headquartered in Andover, Massachusetts, Vicor
sells its products primarily to customers in the
higher-performance, higher-power segments of the power systems
market, including aerospace and defense electronics, enterprise and
high performance computing, industrial equipment and automation,
telecommunications and network infrastructure, and vehicles and
transportation markets.
For further information
contact:
James A. Simms, Chief Financial OfficerVoice:
978-470-2900Facsimile: 978-749-3439invrel@vicorpower.com
VICOR CORPORATION |
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CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS |
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(Thousands except for per share amounts) |
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QUARTER
ENDED |
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SIX MONTHS
ENDED |
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(Unaudited) |
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(Unaudited) |
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JUNE
30, |
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JUNE
30, |
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JUNE
30, |
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JUNE 30, |
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2020 |
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2019 |
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2020 |
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2019 |
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Net revenues |
$ 70,761 |
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$ 63,355 |
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$ 134,162 |
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$ 129,080 |
Cost
of revenues |
40,443 |
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34,238 |
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76,513 |
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68,877 |
Gross margin |
30,318 |
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29,117 |
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57,649 |
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60,203 |
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Operating expenses: |
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Selling, general and administrative |
15,455 |
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15,030 |
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31,824 |
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30,403 |
Research and development |
12,830 |
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11,706 |
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26,165 |
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22,926 |
Total operating expenses |
28,285 |
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26,736 |
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57,989 |
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53,329 |
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Income (loss) from operations |
2,033 |
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2,381 |
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(340 |
) |
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6,874 |
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Other income (expense), net |
233 |
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288 |
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|
381 |
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|
527 |
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Income before income taxes |
2,266 |
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2,669 |
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41 |
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7,401 |
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Less: (Benefit) provision for income taxes |
(406 |
) |
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113 |
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(900 |
) |
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539 |
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Consolidated net income |
2,672 |
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2,556 |
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941 |
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6,862 |
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Less: Net income (loss) attributable to noncontrolling
interest |
5 |
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(7 |
) |
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9 |
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13 |
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Net
income attributable to Vicor Corporation |
$2,667 |
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$2,563 |
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$932 |
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$6,849 |
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Net
income per share attributable to Vicor Corporation: |
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Basic |
$0.06 |
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$0.06 |
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$0.02 |
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$0.17 |
Diluted |
$0.06 |
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$0.06 |
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$0.02 |
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$0.17 |
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Shares outstanding: |
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Basic |
41,643 |
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40,275 |
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41,140 |
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40,252 |
Diluted |
43,385 |
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41,081 |
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42,980 |
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41,055 |
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VICOR CORPORATION |
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CONDENSED CONSOLIDATED BALANCE SHEET |
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(Thousands) |
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JUNE
30, |
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DEC
31, |
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2020 |
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2019 |
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(Unaudited) |
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(Unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
$ 196,704 |
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$ 84,668 |
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Accounts receivable, net |
48,502 |
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38,115 |
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Inventories, net |
55,630 |
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49,187 |
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Other current assets |
7,842 |
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7,096 |
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Total current assets |
308,678 |
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179,066 |
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Long-term deferred tax assets |
188 |
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205 |
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Long-term investment, net |
2,555 |
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2,510 |
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Property, plant and equipment, net |
59,475 |
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56,952 |
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Other assets |
1,838 |
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|
1,994 |
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Total assets |
$ 372,734 |
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$ 240,727 |
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Liabilities and Equity |
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Current liabilities: |
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Accounts payable |
$ 15,647 |
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$ 9,005 |
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Accrued compensation and benefits |
13,687 |
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|
10,410 |
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Accrued expenses |
2,689 |
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2,690 |
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Sales allowances |
867 |
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|
741 |
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Short-term lease liabilities |
1,156 |
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1,520 |
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Income taxes payable |
56 |
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57 |
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Short-term deferred revenue and customer
prepayments |
7,817 |
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|
5,507 |
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Total current liabilities |
41,919 |
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29,930 |
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Long-term deferred revenue |
894 |
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|
1,054 |
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Contingent consideration obligations |
307 |
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451 |
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Long-term income taxes payable |
571 |
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|
567 |
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Long-term lease liabilities |
2,400 |
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|
2,855 |
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Total liabilities |
46,091 |
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34,857 |
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Equity: |
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Vicor Corporation stockholders' equity: |
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Capital stock |
321,537 |
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|
201,774 |
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Retained earnings |
144,030 |
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|
143,098 |
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Accumulated other comprehensive loss |
(316 |
) |
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(383 |
) |
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Treasury stock |
(138,927 |
) |
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(138,927 |
) |
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Total Vicor Corporation stockholders' equity |
326,324 |
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|
205,562 |
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Noncontrolling interest |
319 |
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|
308 |
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Total equity |
326,643 |
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|
205,870 |
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Total liabilities and equity |
$ 372,734 |
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$ 240,727 |
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