UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act Of 1934
Date of Report (Date of earliest event reported): May 20, 2015
Sutron Corporation
(Exact name of registrant as specified in its charter.)
Virginia |
0-12227 |
54-1006352 |
(State or other jurisdiction |
(Commission |
(I.R.S. Employer |
of incorporation or organization) |
File Number) |
Identification No.) |
22400 Davis Drive, Sterling, Virginia 20164
(Address of principal executive offices) (Zip Code)
(703) 406-2800
(Issuer’s telephone number)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
On May 15, 2015, Sutron Corporation (the “Company”) announced via press release the Company's results for its first quarter ended March 31, 2015. A copy of the Company's press release is attached hereto as Exhibit 99.1, and is incorporated herein by reference thereto. The information included in this Item 2.02 and the attached exhibit are provided under Item 2.02 of Form 8-K is being furnished and shall not be deemed filed with the Securities and Exchange Commission nor incorporated by reference in any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specified otherwise.
Item 5.07 of Matters to a Vote of Security Holders
On May 20, 2015, Sutron Corporation held its 2015 Annual Meeting of Stockholders. The following proposals were adopted by the votes specified below.
1. |
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To elect five (5) directors for the next year:
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For
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Withheld
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Broker
Non-Votes
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Raul S. McQuivey
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2,774,613 |
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33,545 |
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2,275,976 |
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John F. DePodesta
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2,643,130 |
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165,028 |
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2,275,976 |
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Larry C. Linton
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2,643,130 |
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165,028 |
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2,275,976 |
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Leland R. Phipps
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2,643,130 |
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165,028 |
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2,275,976 |
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Ashish H. Raval
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2,774,208 |
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33,950 |
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2,275,976 |
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2. |
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To ratify the appointment of Yount, Hyde & Barbour as the Company's independent
registered public accounting firm for fiscal year 2014
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For
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Against
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Abstain
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Broker
Non-Votes
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3,871,058 |
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0 |
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8,300
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1,204,776 |
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Item 9.01 Financial Statements and Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: May 26, 2015 Sutron Corporation
(Registrant)
By /s/ Glen E. Goold
Glen E. Goold
Chief Financial Officer and Secretary
Exhibit 99.1
SUTRON REPORTS FIRST QUARTER 2015 RESULTS
Sterling, VA - May 14, 2015 - Sutron Corporation (NASDAQ: STRN) today announced results for the first quarter ended March 31, 2015.
First Quarter 2015 Results
·
|
First Quarter 2014 Revenue of $4.5 million; down from $4.9 million Revenue First Quarter 2014
|
·
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First Quarter Net Loss of $735 thousand; increased from $540 thousand Net Loss in First Quarter 2014
|
·
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Backlog as of March 31, 2005 was $15.5 million, up 28% from Prior Year Quarter
|
Sutron reported revenue of $4.5 million for the first quarter of 2015, down $400 thousand, or 8% from the prior year first quarter. The lower revenue year over year is due to slower project activity being awarded in the first quarter than prior years. Standard product revenues for the first quarter of 2015 increased to $2.5 million as compared to $2.0 million for the first quarter of 2014. The increase in standard product revenue is attributed to increased orders from the federal, state and local sectors than compared to the previous year. Revenues for systems and services for the first quarter of 2015 was $2.0 million, a decrease from $2.9 million in 2014.
Net loss for the first quarter of fiscal year 2015 was $735 thousand, a decrease from a net loss of $540 thousand in the first quarter of fiscal year 2014. Loss per share was $(0.14) per basic and diluted share for the first quarter of 2015 as compared to loss per share of $(0.11) per share in the first quarter of 2014.
The Company’s backlog as of March 31, 2015 was approximately $15.5 million, up 28% from the backlog as of March 31, 2014. Of the $15.5 million in backlog, we expect to convert approximately two-thirds of that backlog to revenue within 2015.
Balance Sheet and Liquidity
Sutron ended the first quarter of 2015 with $6.3 million in cash and cash equivalents, down from $8.7 million at December 31, 2014 and from $9.2 million at March 31, 2014. Cash used by operating activities in the first quarter of 2015 was approximately $2.3 million compared to cash generated by operating activities in the first quarter of 2014 of $113 thousand. The principal components of the use of cash in the first quarter of 2015 were the recognition of net operating loss, decrease of accounts payable and the increase of vendor advance payments contrasted against uses of cash of increased prepayments to vendors and an increase in our inventory on hand as of March 31, 2015. Capital expenditures were $71 thousand in the first quarter of 2015 compared to $48 thousand in the first quarter of 2014.
Free Cash Flow in the first quarter of 2015 was approximately $(2.3) million compared to Free Cash Flow of $66 thousand for the first quarter of 2014. Sutron defines Free Cash Flow as net cash provided or used by operating activities less cash used in the purchase of property and equipment. The primary cause for the year over year variance was the low operating cash flow in the first quarter of 2014.
Management Commentary
“Although the first quarter is historically slow for Sutron, we are disappointed by these first quarter results,” stated Raul McQuivey, Chairman and Chief Executive Officer. “The low quarterly top line revenue was due to continuing delay for some projects and our inability to ship a couple of orders awaiting payment from customers. Our performance in the first quarter of 2015 is significantly below our budget. One note of optimism is a $15 million backlog at quarter’s end and our deep pipeline of opportunities that we are pursuing. Hopefully, this will position us to recover from our slow first quarter and to realize more acceptable performance for the remainder of 2015. Our focus for the remainder of 2015 will be to drive revenue growth and also to achieve steady improvement in our operating margins and net income. We are making progress in some of our new development initiatives that we believe will produce dividends for us later in 2015.”
Conference Call
The Company will host a conference call on May 20, 2014 at 1:45 p.m. Eastern Time during its Annual Shareholders Meeting to discuss its strategic direction and focus and to review the results for the first quarter of 2015. The on-line presentation can be accessed via the following webinar link and phone number:
On-line webinar/presentation:
https://global.gotomeeting.com/join/633561373
Audio Dial-in
Phone Number: +1 (626) 425-3113
Access Code: 633-561-373
About Sutron
Sutron Corporation, headquartered in Sterling, Virginia, is a project driven business. We provide hydrological, meteorological, air quality, oceanic and aviation real-time data collection products, systems, software and services to a diversified customer base of federal, state, local and foreign governments, engineering companies, universities, hydropower companies and other commercial entities. Our quarterly results may fluctuate substantially based upon contract awards that are difficult to project in terms of timing and may be delayed due to differing time frames in securing government approvals and funding.
Safe Harbor Statement
The statements in this press release that relate to future plans, events or performance are “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements include without limitation any statements regarding our expected future financial position, results of operations, cash flows, EBITDA, financing plans, business strategy, bookings, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," “should” and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. We are under no obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
SUTRON CORPORATION
CONSOLIDATED BALANCE SHEETS
|
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(Unaudited)
March 31,
2015
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(Audited)
December 31,
2014
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ASSETS
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Current Assets:
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Cash and cash equivalents
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$ |
5,545,940 |
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$ |
7,873,903 |
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Restricted cash and cash equivalents
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767,493 |
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809,509 |
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4,865,253 |
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4,693,260 |
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Costs in excess of billings
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1,446,800 |
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1,500,603 |
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4,997,806 |
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4,747,676 |
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Prepaid items and other assets
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634,708 |
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293,568 |
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243,163 |
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173,537 |
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1,450,643 |
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1,046,593 |
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19,951,806 |
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21,138,649 |
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Property and Equipment, Net
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1,870,789 |
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1,935,760 |
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4,452,152 |
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4,452,152 |
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Intangibles, net of amortization
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676,209 |
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722,466 |
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85,444 |
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102,514 |
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$ |
27,036,400 |
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$ |
28,351,541 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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$ |
721,791 |
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$ |
1,045,170 |
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1,042,594 |
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886,367 |
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929,792 |
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1,286,121 |
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151,584 |
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149,011 |
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688,665 |
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744,346 |
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Billings in excess of costs and estimated earnings
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157,831 |
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125,242 |
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Total Current Liabilities
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3,692,257 |
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4,236,257 |
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571,178 |
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608,568 |
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8,153 |
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30,871 |
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4,271,588 |
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4,875,696 |
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Common stock, 12,000,000 shares authorized;
5,084,134 issued and outstanding at March 31, 2015 and December 31, 2014
|
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50,842 |
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50,842 |
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Additional paid-in capital
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5,503,775 |
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5,465,723 |
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17,619,088 |
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18,354,164 |
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Accumulated other comprehensive loss
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(408,893 |
) |
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(394,884 |
) |
Total Stockholders’ Equity
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22,764,812 |
|
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23,475,845 |
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Total Liabilities and Stockholders’ Equity
|
|
$ |
27,036,400 |
|
|
$ |
28,351,541 |
|
See accompanying notes to consolidated financial statements.
SUTRON CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
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Three Months Ended March 31,
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Restated
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2015
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2014
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Selling, general and administrative expenses
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Research and development expenses
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(Loss) income before income taxes
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Income tax (benefit) expense
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Net (loss) income per share:
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Basic (loss) income per share
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Diluted (loss) income per share
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Foreign currency translation adjustments
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Comprehensive (loss) income
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SUTRON CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
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Three Months Ended
March 31,
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Restated
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2015
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2014
|
Cash Flows from Operating Activities:
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Noncash items included in net income:
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Amortization of intangibles
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Change in current assets and liabilities, net of the impact of acquisitions:
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Costs in excess of billings
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Prepaid expenses and other assets
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Billings in excess of costs and estimated earnings
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Net Cash (Used) Provided by Operating Activities
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Cash Flows from Investing Activities:
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Restricted cash and cash equivalents
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Purchase of property and equipment
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Net Cash Used by Investing Activities
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Effect of exchange rate changes on cash and cash equivalents
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Net (decrease) increase in cash and cash equivalents
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Cash and Cash Equivalents, beginning of period
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Cash and Cash Equivalents, end of period
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Company Contact: Glen Goold
+1 (703)406-2800
ggoold@sutron.com
www.sutron.com
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