2017 Q3 Form 10-K Financial Statement

#000119312517310969 Filed on October 16, 2017

View on sec.gov

Income Statement

Concept 2017 Q3 2016 Q3 2016 Q2
Revenue $99.78M $101.5M $96.46M
YoY Change -1.71% -15.19% -9.2%
Cost Of Revenue $92.49M $95.03M $94.29M
YoY Change -2.68% -13.33% -3.02%
Gross Profit $7.292M $6.477M $2.174M
YoY Change 12.58% -35.49% -75.88%
Gross Profit Margin 7.31% 6.38% 2.25%
Selling, General & Admin $14.60M $14.10M $14.49M
YoY Change 3.55% -6.62% 0.35%
% of Gross Profit 200.22% 217.69% 666.47%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $2.240M $2.300M $1.950M
YoY Change -2.61% 12.75% -3.94%
% of Gross Profit 30.72% 35.51% 89.7%
Operating Expenses $14.66M $21.32M $14.67M
YoY Change -31.22% 14.49% -11.43%
Operating Profit -$7.372M -$14.84M -$12.50M
YoY Change -50.33% 73.0% 65.48%
Interest Expense -$1.900M -$1.900M $2.833M
YoY Change 0.0% -136.54% 8.42%
% of Operating Profit
Other Income/Expense, Net -$1.984M -$1.103M -$260.0K
YoY Change 79.87% -131.75% -93.26%
Pretax Income -$9.400M -$15.90M -$12.76M
YoY Change -40.88% 211.76% 11.79%
Income Tax $105.0K $3.979M $408.0K
% Of Pretax Income
Net Earnings -$9.311M -$19.71M -$12.85M
YoY Change -52.76% 295.09% 6.14%
Net Earnings / Revenue -9.33% -19.42% -13.32%
Basic Earnings Per Share -$0.17 -$0.25
Diluted Earnings Per Share -$0.17 -$378.1K -$0.25
COMMON SHARES
Basic Shares Outstanding 52.20M shares
Diluted Shares Outstanding 52.20M shares

Balance Sheet

Concept 2017 Q3 2016 Q3 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $122.6M $147.6M $166.6M
YoY Change -16.94% -25.49% -26.38%
Cash & Equivalents $110.7M $130.8M $149.6M
Short-Term Investments $11.90M $16.80M $16.90M
Other Short-Term Assets $19.50M $20.70M $35.50M
YoY Change -5.8% -41.69% 40.87%
Inventory $34.37M $40.27M $40.71M
Prepaid Expenses
Receivables $81.45M $111.3M $121.5M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $257.8M $319.9M $364.3M
YoY Change -19.4% -22.66% -16.99%
LONG-TERM ASSETS
Property, Plant & Equipment $18.56M $22.27M $22.65M
YoY Change -16.69% -2.05% -4.68%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $4.897M $5.770M $9.954M
YoY Change -15.13% -43.01% 30.97%
Total Long-Term Assets $23.45M $28.04M $32.61M
YoY Change -16.37% -14.67% -11.16%
TOTAL ASSETS
Total Short-Term Assets $257.8M $319.9M $364.3M
Total Long-Term Assets $23.45M $28.04M $32.61M
Total Assets $281.3M $347.9M $396.9M
YoY Change -19.15% -22.08% -16.54%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $71.48M $114.4M $113.5M
YoY Change -37.54% -4.73% -29.93%
Accrued Expenses $37.90M $37.74M $34.36M
YoY Change 0.42% -3.16% -8.63%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $149.2M $194.8M $198.7M
YoY Change -23.42% -7.85% -16.8%
LONG-TERM LIABILITIES
Long-Term Debt $59.80M $57.20M $81.20M
YoY Change 4.55% -26.57% 5.87%
Other Long-Term Liabilities $9.414M $9.964M $13.11M
YoY Change -5.52% -21.44% 63.45%
Total Long-Term Liabilities $69.17M $67.23M $94.34M
YoY Change 2.89% -25.76% 11.36%
TOTAL LIABILITIES
Total Short-Term Liabilities $149.2M $194.8M $198.7M
Total Long-Term Liabilities $69.17M $67.23M $94.34M
Total Liabilities $218.3M $262.0M $293.0M
YoY Change -16.67% -13.22% -9.43%
SHAREHOLDERS EQUITY
Retained Earnings -$7.399B -$7.373B -$7.353B
YoY Change 0.35% 0.84% 0.64%
Common Stock $556.0K $553.0K $526.0K
YoY Change 0.54% 5.94% 0.77%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $62.97M $85.94M $103.9M
YoY Change
Total Liabilities & Shareholders Equity $281.3M $347.9M $396.9M
YoY Change -19.15% -22.08% -16.54%

Cashflow Statement

Concept 2017 Q3 2016 Q3 2016 Q2
OPERATING ACTIVITIES
Net Income -$9.311M -$19.71M -$12.85M
YoY Change -52.76% 295.09% 6.14%
Depreciation, Depletion And Amortization $2.240M $2.300M $1.950M
YoY Change -2.61% 12.75% -3.94%
Cash From Operating Activities -$3.090M $2.510M -$3.350M
YoY Change -223.11% -107.81% -110.52%
INVESTING ACTIVITIES
Capital Expenditures -$840.0K -$2.140M -$2.570M
YoY Change -60.75% 31.29% -16.29%
Acquisitions
YoY Change
Other Investing Activities $1.240M $1.260M $13.68M
YoY Change -1.59% -45.92% -12536.36%
Cash From Investing Activities $400.0K -$870.0K $11.11M
YoY Change -145.98% -224.29% -449.37%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 -19.94M -430.0K
YoY Change -100.0% 975.0%
NET CHANGE
Cash From Operating Activities -3.090M 2.510M -3.350M
Cash From Investing Activities 400.0K -870.0K 11.11M
Cash From Financing Activities 0.000 -19.94M -430.0K
Net Change In Cash -2.690M -18.30M 7.330M
YoY Change -85.3% -41.78% -74.38%
FREE CASH FLOW
Cash From Operating Activities -$3.090M $2.510M -$3.350M
Capital Expenditures -$840.0K -$2.140M -$2.570M
Free Cash Flow -$2.250M $4.650M -$780.0K
YoY Change -148.39% -115.25% -102.23%

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CY2015 mlnk Restructuring Charges Related To Asset Write Offs And Closed Facilities
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200000
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0.0169 pure
CY2017 dei Document Fiscal Period Focus
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FY
CY2017 dei Document Fiscal Year Focus
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2017
CY2017 dei Document Type
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10-K
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0.35 pure
CY2017 dei Entity Central Index Key
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0000914712
CY2017 dei Entity Well Known Seasoned Issuer
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No
CY2017 us-gaap Nature Of Operations
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<div> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr style="page-break-inside:avoid"> <td width="4%" valign="top" align="left"><font style="font-family:Times New Roman" size="2"><b>(1)</b></font></td> <td align="left" valign="top"><font style="font-family:Times New Roman" size="2"><b>NATURE OF OPERATIONS</b></font></td> </tr> </table> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">ModusLink Global Solutions, Inc. (together with its consolidated subsidiaries, &#x201C;ModusLink Global Solutions&#x201D; or the &#x201C;Company&#x201D;), through its wholly owned subsidiaries, ModusLink Corporation (&#x201C;ModusLink&#x201D;) and ModusLink PTS, Inc. (&#x201C;ModusLink PTS&#x201D;), is a leader in global supply chain business process management serving clients in markets such as consumer electronics, communications, computing, medical devices, software, and retail. The Company designs and executes critical elements in its clients&#x2019; global supply chains to improve speed to market, product customization, flexibility, cost, quality and service. These benefits are delivered through a combination of industry expertise, innovative service solutions, integrated operations, proven business processes, expansive global footprint and world-class technology.</font></p> <p style="margin-top:12px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">The Company has an integrated network of strategically located facilities in various countries, including numerous sites throughout North America, Europe and Asia. The Company previously operated under the names CMGI, Inc. and CMG Information Services, Inc. and was incorporated in Delaware in 1986.</font></p> </div>
CY2017 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod
795000 shares
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
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P2Y8M12D
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0
CY2017 dei Trading Symbol
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MLNK
CY2017 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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55134000 shares
CY2017 us-gaap Weighted Average Number Of Shares Outstanding Basic
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55134000 shares
CY2017 dei Amendment Flag
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false
CY2017 us-gaap Concentration Risk Credit Risk
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<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%; MARGIN-TOP: 18px"> <font style="FONT-FAMILY: Times New Roman" size="2"><i>Major Clients and Concentration of Credit Risk</i></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">For the fiscal year ended July&#xA0;31, 2017, 2016 and 2015, the Company&#x2019;s 10 largest clients accounted for approximately 70%, 71% and 76% of consolidated net revenue, respectively. Sales to a consumer electronics client (&#x201C;Client A&#x201D;) accounted for approximately 15%, 13%, and 10% of the Company&#x2019;s consolidated net revenue for the fiscal years ended July&#xA0;31, 2017, 2016 and 2015, respectively. Sales to another consumer electronics client (&#x201C;Client B&#x201D;) accounted for approximately 10%, 13%, and 19% of the Company&#x2019;s consolidated net revenue for the fiscal years ended July&#xA0;31, 2017, 2016 and 2015, respectively. The Europe reportable segment reports revenue associated with Client A. All four reportable segments report revenues associated with Client B. A computing market client accounted for approximately 13% and 3% of the Company&#x2019;s Net Accounts Receivable balance as of July 31, 2017 and 2016, respectively. A consumer electronics client accounted for approximately 11% and 16% of the Company&#x2019;s Net Accounts Receivable balance as of July 31, 2017 and 2016, respectively. To manage risk, the Company performs ongoing credit evaluations of its clients&#x2019; financial condition. The Company generally does not require collateral on accounts receivable. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable.</font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 12px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">Financial instruments which potentially subject the Company to concentrations of credit risk are cash, cash equivalents and accounts receivable. The Company&#x2019;s cash equivalent portfolio is diversified and consists primarily of short-term investment grade securities placed with high credit quality financial institutions. Cash and cash equivalents are maintained at accredited financial institutions, and those and the balances associated with Funds Held for Clients are at times without and in excess of federally insured limits. The Company has never experienced any losses related to these balances and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with financial institutions.</font></p> </div>
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0.0191 pure
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78 Employee
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13000 shares
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0
CY2017 dei Document Period End Date
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2017-07-31
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P2Y7M6D
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-168000
CY2017 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
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55134000 shares
CY2017 dei Current Fiscal Year End Date
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--07-31
CY2017 dei Entity Current Reporting Status
EntityCurrentReportingStatus
Yes
CY2017 dei Entity Filer Category
EntityFilerCategory
Accelerated Filer
CY2017 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 shares
CY2017 us-gaap Number Of Operating Segments
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4 Segment
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0 shares
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeitures Weighted Average Grant Date Fair Value
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3.05
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Weighted Average Grant Date Fair Value
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0
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<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%; MARGIN-TOP: 18px"> <font style="FONT-FAMILY: Times New Roman" size="2"><i>Use of Estimates</i></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">The preparation of the Company&#x2019;s consolidated financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates including those related to revenue recognition, allowance for doubtful accounts, inventories, fair value of its trading and available-for-sale securities, intangible assets, income taxes, restructuring, valuation of long-lived assets, impairments, contingencies, restructuring charges, litigation, pension obligations and the fair value of stock options and share bonus awards granted under the Company&#x2019;s stock based compensation plans. Accounting estimates are based on historical experience and various assumptions that are considered reasonable under the circumstances. However, because these estimates inherently involve judgments and uncertainties, actual results could differ materially from those estimated.</font></p> </div>
CY2017 us-gaap Conversion Of Stock Shares Issued1
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300000 shares
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P19M
CY2017 us-gaap Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Expected Long Term Return On Assets
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0.0169 pure
CY2017 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.47
CY2017 dei Entity Voluntary Filers
EntityVoluntaryFilers
No
CY2017 dei Entity Registrant Name
EntityRegistrantName
MODUSLINK GLOBAL SOLUTIONS INC
CY2017 us-gaap Number Of Reportable Segments
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4 Segment
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ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriodWeightedAverageGrantDateFairValue
2.45
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4.37
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsGrantsInPeriod
296000 shares
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P2Y8M16D
CY2017 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod
245000 shares
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11000000
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1763000
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4730000
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200000
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18000
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3128000
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73000
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3783000
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971000
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1410000
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157000
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681000
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3200000
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1391000
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399000
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2500000
CY2017 us-gaap Gross Profit
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36365000
CY2017 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Transfers Out Of Level3
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0
CY2017 us-gaap Defined Benefit Plan Settlements Plan Assets
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CY2017 us-gaap Defined Benefit Plan Expected Return On Plan Assets
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457000
CY2017 us-gaap Defined Benefit Plan Foreign Currency Exchange Rate Changes Benefit Obligation
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2294000
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199000
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500000
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CY2017 us-gaap Deferred State And Local Income Tax Expense Benefit
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5638000
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331000
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279000
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300000
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CY2017 mlnk Amortization Of Pension Plan Gain Or Losses Excess Of Benefit Obligation Or Market Value Percentage
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0.10 pure
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1967000
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481000
CY2017 mlnk Common Stock Equity Distribution Agreement Description
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The Company is required to keep the resale registration statement effective for three years following the date it is declared effective. Steel Partners also has the right, until such time as it owns less than one-third of the common stock originally issued to it under the investment agreement, to require that the Company file a prospectus supplement or amendment to cover sales of common stock through a firm commitment underwritten public offering.
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41100000
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1278000
CY2017 mlnk Investment Maturity Period Below Which Investment Is Considered Cash Equivalent
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P3M
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239000
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P4Y4M28D
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0.0183 pure
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