##### 



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the quarterly period ended April 30, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File No. 0-24015
 STEELCLOUD, INC.
  VIRGINIA
(State or other jurisdiction of incorporation or 
organization)
    
    54-1890464
(I.R.S. Employer Identification No.)14040 Park Center Road, Herndon, VA
(Address of principal executive offices)
    
    20171
(Zip code)
     þ o
  o o þ
  o þ




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##### 



Description
    
    
    
    PagePart I.
    
    Financial InformationItem 1.
    
    Financial Statements
    
    
    1Condensed Consolidated Balance Sheets as of October 31, 2006 and
April 30, 2007 (unaudited)
    
    
    1Unaudited Condensed Consolidated Statements of Operations for the
three and six month periods ended April 30, 2006 and 2007
    
    
    2Unaudited Condensed Consolidated Statements of Cash Flows for the
six month periods ended April 30, 2006 and 2007
    
    
    3Notes to the Unaudited Condensed Consolidated Financial Statements
    
    
    4Item 2.
    
    Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    8Item 3.
    
    Quantitative and Qualitative Disclosures About Market Risks
    
    
    20Item 4.
    
    Controls and Procedures
    
    
    20Part II.
    
    Other Information
    
    
    20Item 1.
    
    Legal Proceedings
    
    
    20Item 1A.
    
    Risk Factors
    
    
    20Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    21Item 3.
    
    Defaults Upon Senior Securities
    
    
    21Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    21Item 5.
    
    Other Information
    
    
    21Item 6.
    
    Exhibits
    
    
    21




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##### 



PART I. FINANCIAL INFORMATION
 ITEM 1. FINANCIAL STATEMENTS
 STEELCLOUD, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
 October 31,
    
    
    April 30,2006
    
    
    2007(unaudited)ASSETSCurrent assetsCash and cash equivalents
    
    $
    3,655,163
    
    
    $
    2,851,892Accounts receivable, net
    
    
    3,840,583
    
    
    
    2,920,498Inventory, net
    
    
    1,144,820
    
    
    
    1,267,368Prepaid expenses and other current assets
    
    
    206,287
    
    
    
    332,229Deferred contract costs
    
    
    217,494
    
    
    
    211,276Total current assets
    
    
    9,064,347
    
    
    
    7,583,263Property and equipment, net
    
    
    1,039,752
    
    
    
    917,484Equipment on lease, net
    
    
    441,866
    
    
    
    474,444Other assets
    
    
    57,092
    
    
    
    37,786Total assets
    
    $
    10,603,057
    
    
    $
    9,012,977LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilitiesAccounts payable
    
    $
    2,639,346
    
    
    $
    2,159,229Accrued expenses
    
    
    1,198,283
    
    
    
    1,145,135Notes payable, current
    
    
    14,629
    
    
    
    14,793Unearned revenue
    
    
    141,903
    
    
    
    455,399Total current liabilities
    
    
    3,994,161
    
    
    
    3,774,556Long-term liabilitiesNotes payable, long-term
    
    
    28,991
    
    
    
    21,199Other, including severance obligations
    
    
    367,741
    
    
    
    179,460Total long-term liabilities
    
    
    396,732
    
    
    
    200,659Stockholders equityPreferred stock, $.001 par value: 2,000,000 shares authorized, no
shares issued and outstanding at
October 31, 2006 and April 30, 2007
    
    
    
    
    
    
    Common stock, $.001 par value: 50,000,000 shares authorized,
14,662,176 and 14,683,680 shares
issued at October 31, 2006 and April
30, 2007, respectively
    
    
    14,662
    
    
    
    14,684Additional paid in capital
    
    
    49,834,658
    
    
    
    50,089,388Treasury stock, 400,000 shares at
October 31, 2006 and April 30, 2007
    
    
    (3,432,500
    )
    
    
    (3,432,500
    )Accumulated deficit
    
    
    (40,204,656
    )
    
    
    (41,633,810
    )Total stockholders equity
    
    
    6,212,164
    
    
    
    5,037,762Total liabilities and stockholders equity
    
    $
    10,603,057
    
    
    $
    9,012,977
 .
 1




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##### 



STEELCLOUD, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 Three Months Ended
    
    
    Six Months EndedApril 30,
    
    
    April 30,2006
    
    
    2007
    
    
    2006
    
    
    2007RevenuesProducts
    
    $
    5,988,443
    
    
    $
    4,395,910
    
    
    $
    11,490,851
    
    
    $
    8,286,071Services
    
    
    674,607
    
    
    
    440,933
    
    
    
    1,349,224
    
    
    
    973,839Total revenues
    
    
    6,663,050
    
    
    
    4,836,843
    
    
    
    12,840,075
    
    
    
    9,259,910Cost of revenuesProducts
    
    
    5,046,894
    
    
    
    3,035,531
    
    
    
    9,386,968
    
    
    
    6,301,505Services
    
    
    583,734
    
    
    
    283,443
    
    
    
    1,057,648
    
    
    
    654,521Total cost of revenues
    
    
    5,630,628
    
    
    
    3,318,974
    
    
    
    10,444,616
    
    
    
    6,956,026Gross profit
    
    
    1,032,422
    
    
    
    1,517,869
    
    
    
    2,395,459
    
    
    
    2,303,884Selling and marketing
    
    
    711,978
    
    
    
    336,645
    
    
    
    1,212,152
    
    
    
    754,754Research and product development
    
    
    127,443
    
    
    
    151,770
    
    
    
    305,806
    
    
    
    294,597General and administrative
    
    
    1,704,362
    
    
    
    1,333,920
    
    
    
    3,208,398
    
    
    
    2,709,377Amortization of other intangible
assets
    
    
    28,779
    
    
    
    
    
    
    
    57,557
    
    
    
    (Loss) from operations
    
    
    (1,540,140
    )
    
    
    (304,466
    )
    
    
    (2,388,454
    )
    
    
    (1,454,844
    )Interest income, net
    
    
    11,827
    
    
    
    11,467
    
    
    
    29,257
    
    
    
    25,690(Loss) before income taxes
    
    
    (1,528,313
    )
    
    
    (292,999
    )
    
    
    (2,359,197
    )
    
    
    (1,429,154
    )Provision for income taxes
    
    
    400,000
    
    
    
    
    
    
    
    400,000
    
    
    
    Net (loss)
    
    
    (1,928,313
    )
    
    
    (292,999
    )
    
    
    (2,759,197
    )
    
    
    (1,429,154
    )(Loss) per share (basic and
diluted):Basic and diluted (loss) per share
    
    $
    (0.14
    )
    
    $
    (0.02
    )
    
    $
    (0.20
    )
    
    $
    (0.10
    )Weighted-average shares
outstanding, basic and diluted
    
    
    14,098,542
    
    
    
    14,275,372
    
    
    
    14,073,747
    
    
    
    14,268,627
  2




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##### 



STEELCLOUD, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 Six Months EndedApril 30,2006
    
    2007Operating activitiesNet (loss)
    
    $
    (2,759,197
    )
    
    $
    (1,429,154
    )Adjustments to reconcile net (loss) to net cash
provided by (used in) operating activities:Depreciation and amortization
    
    
    381,426
    
    
    
    299,850Stock-based compensation
    
    
    62,378
    
    
    
    214,752Deferred tax expense
    
    
    400,000
    
    
    
    Warrant-based expense
    
    
    
    
    
    
    40,000Changes in operating assets and liabilities:Accounts receivable
    
    
    (695,802
    )
    
    
    920,085Inventory
    
    
    (468,321
    )
    
    
    (122,548
    )Prepaid expenses and other assets
    
    
    1,789
    
    
    
    (106,636
    )Deferred contract costs
    
    
    (195,333
    )
    
    
    6,218Accounts payable
    
    
    (245,624
    )
    
    
    (480,117
    )Unearned revenue
    
    
    (38,660
    )
    
    
    292,853Accrued expenses and other liabilities
    
    
    763,809
    
    
    
    (220,786
    )Net cash (used in) operating activities
    
    
    (2,793,535
    )
    
    
    (585,483
    )Investing activitiesPurchase of property and equipment
    
    
    (90,897
    )
    
    
    (210,160
    )Net cash (used in) investing activities
    
    
    (90,897
    )
    
    
    (210,160
    )Financing activitiesProceeds from exercise of common stock options
    
    
    116,467
    
    
    
    Payments on notes payable
    
    
    (35,611
    )
    
    
    (7,628
    )Net cash provided by (used in) financing activities
    
    
    80,856
    
    
    
    (7,628
    )Net (decrease) in cash and cash equivalents
    
    
    (2,803,576
    )
    
    
    (803,271
    )Cash and cash equivalents at beginning of period
    
    
    6,657,367
    
    
    
    3,655,163Cash and cash equivalents at end of period
    
    $
    3,853,791
    
    
    $
    2,851,892Supplemental cash flow informationInterest paid
    
    $
    2,137
    
    
    $
    665Income taxes paid
    
    $
    
    
    
    $
    
 .
 3




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##### 



STEELCLOUD, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 1. Nature of Business and Basis of Presentation
    TM
   2. Reclassification
 Reporting Revenue Gross as a Principal versus Net as an Agent.
 4




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##### 



3. Recently Issued Accounting Pronouncements
 How Sales Taxes Collected From Customers and Remitted to
Governmental Authorities Should Be Presented in the Income Statement
 Fair Value
Measurements
 The Fair Value Option
for Financial Assets and Financial Liabilities
 4. Stock-based Compensation
 Share-Based Payment
  5




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##### 



Stock Option Plans
  Employee Stock Purchase Plan
  5. Equity
 Issuance of unregistered common stock
  Warrants
  Additional paid in capital
  6. Debt
  7. Inventories
  October 31,
    
    
    April 30,2006
    
    
    2007Raw materials
    
    $
    814,000
    
    
    $
    788,912Work in process
    
    
    68,247
    
    
    
    18,926Finished goods
    
    
    262,573
    
    
    
    459,530$
    1,144,820
    
    
    $
    1,267,368
 6




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##### 



8. Earnings Per Share
  9. Significant Customers
  7




---



##### 



ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   8




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##### 



OVERVIEW
    TM
 Federal Integrator and ISV Business
    TM
   9




---



##### 



IT Services
  Research and Development
  TM TM
 Significant Customer Contracts
  Notices from Nasdaq
  10




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##### 



CRITICAL ACCOUNTING POLICIES AND ESTIMATES
  Recently Issued Accounting Pronouncements
 Fair Value
Measurements
 The Fair Value Option
for Financial Assets and Financial Liabilities
 11




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##### 



For the three months ended April 30, 2007 compared to the three months ended April 30, 2006
 Net Revenue Discussion:
  Three Months Ended April 30,2006
    
    2007
    
    Increase (decrease)% of Net
    
    
    
    
    
    % of NetDollars
    
    Revenues
    
    Dollars
    
    Revenues
    
    Dollars
    
    PercentageProducts
    
    $
    5,988,443
    
    
    
    89.88
    %
    
    $
    4,395,910
    
    
    
    90.88
    %
    
    $
    (1,592,533
    )
    
    
    (26.59
    )%Services
    
    
    674,607
    
    
    
    10.12
    %
    
    
    440,933
    
    
    
    9.12
    %
    
    
    (233,674
    )
    
    
    (34.64
    )%Total net revenues
    
    $
    6,663,050
    
    
    
    100.00
    %
    
    $
    4,836,843
    
    
    
    100.00
    %
    
    $
    (1,826,207
    )
    
    
    (27.41
    )%
   Gross Margin Discussion:
  Three Months Ended April 30,2006
    
    2007
    
    Increase (decrease)% of Gross
    
    
    
    
    
    % of GrossDollars
    
    Margin
    
    Dollars
    
    Margin
    
    Dollars
    
    PercentageProducts
    
    $
    941,549
    
    
    
    91.20
    %
    
    $
    1,360,379
    
    
    
    89.62
    %
    
    $
    418,830
    
    
    
    44.48
    %Products  GM%
    
    
    15.72
    %
    
    
    
    
    
    
    30.95
    %Services
    
    $
    90,873
    
    
    
    8.80
    %
    
    
    157,490
    
    
    
    10.38
    %
    
    $
    66,617
    
    
    
    73.31
    %Services  GM%
    
    
    13.47
    %
    
    
    
    
    
    
    35.72
    %Total gross margin
    
    $
    1,032,422
    
    
    
    100.00
    %
    
    $
    1,517,869
    
    
    
    100.00
    %
    
    $
    485,447
    
    
    
    47.02
    %Total  GM%
    
    
    15.49
    %
    
    
    
    
    
    
    31.38
    %
 12




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##### 



Operating Expense Discussion:
  Three Months Ended April 30,2006
    
    2007
    
    Increase (decrease)% of Net
    
    
    
    
    
    % of NetDollars
    
    Revenues
    
    Dollars
    
    Revenues
    
    Dollars
    
    PercentageSelling and marketing
    
    $
    711,978
    
    
    
    10.69
    %
    
    $
    336,645
    
    
    
    6.96
    %
    
    $
    (375,333
    )
    
    
    (52.72
    )%Research and product
development
    
    
    127,443
    
    
    
    1.91
    %
    
    
    151,770
    
    
    
    3.14
    %
    
    
    24,327
    
    
    
    19.09
    %General and
administrative
    
    
    1,704,362
    
    
    
    25.58
    %
    
    
    1,333,920
    
    
    
    27.58
    %
    
    
    (370,442
    )
    
    
    (21.73
    )%Amortization of other
intangible assets
    
    
    28,779
    
    
    
    0.43
    %
    
    
    
    
    
    
    0.00
    %
    
    
    (28,779
    )
    
    
    (100.00
    )%Total operating expenses
    
    $
    2,572,562
    
    
    
    38.61
    %
    
    $
    1,822,335
    
    
    
    37.68
    %
    
    $
    (750,227
    )
    
    
    (29.16
    )%
   13




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##### 



Other Income Discussion:
  Three Months Ended April 30,2006
    
    2007
    
    Increase (decrease)% of Net
    
    
    
    
    
    % of NetDollars
    
    Revenues
    
    Dollars
    
    Revenues
    
    Dollars
    
    PercentageInterest income,
net
    
    $
    11,827
    
    
    
    0.18
    %
    
    $
    11,467
    
    
    
    0.24
    %
    
    $
    (360
    )
    
    
    (3.04
    )%Total other income
    
    $
    11,827
    
    
    
    0.18
    %
    
    $
    11,467
    
    
    
    0.24
    %
    
    $
    (360
    )
    
    
    (3.04
    )%
  Provision for Income Tax Discussion:
  Three Months Ended April 30,2006
    
    2007
    
    Increase (decrease)% of Net
    
    
    
    
    
    % of NetDollars
    
    Revenues
    
    Dollars
    
    Revenues
    
    Dollars
    
    PercentageProvision for
income tax
    
    $
    400,000
    
    
    
    6.00
    %
    
    $
    
    
    
    
    0.00
    %
    
    $
    (400,000
    )
    
    
    (100.00
    )%
  Net (Loss) Discussion:
  Three Months Ended April 30,2006
    
    2007
    
    Increase (decrease)% of Net
    
    
    
    
    
    % of NetDollars
    
    Revenues
    
    Dollars
    
    Revenues
    
    Dollars
    
    PercentageNet (loss)
    
    $
    (1,928,313
    )
    
    
    (28.94
    )%
    
    $
    (292,999
    )
    
    
    (6.06
    )%
    
    $
    (1,635,314
    )
    
    
    (84.81
    )%
 14




---



##### 



For the six months ended April 30, 2007 compared to the six months ended April 30, 2006
 Net Revenue Discussion:
  Six Months Ended April 30,2006
    
    2007
    
    Increase (decrease)% of Net
    
    
    
    
    
    % of NetDollars
    
    Revenues
    
    Dollars
    
    Revenues
    
    Dollars
    
    PercentageProducts
    
    $
    11,490,851
    
    
    
    89.49
    %
    
    $
    8,286,071
    
    
    
    89.48
    %
    
    $
    (3,204,780
    )
    
    
    (27.89
    )%Services
    
    
    1,349,224
    
    
    
    10.51
    %
    
    
    973,839
    
    
    
    10.52
    %
    
    
    (375,385
    )
    
    
    (27.82
    )%Total net revenues
    
    $
    12,840,075
    
    
    
    100.00
    %
    
    $
    9,259,910
    
    
    
    100.00
    %
    
    $
    (3,580,165
    )
    
    
    (27.88
    )%
   15




---



##### 



Gross Margin Discussion:
  Six Months Ended April 30,2006
    
    2007
    
    Increase (decrease)% of Gross
    
    
    
    
    
    % of GrossDollars
    
    Margin
    
    Dollars
    
    Margin
    
    Dollars
    
    PercentageProducts
    
    $
    2,103,883
    
    
    
    87.83
    %
    
    $
    1,984,566
    
    
    
    86.14
    %
    
    $
    (119,317
    )
    
    
    (5.67
    )%Products  GM%
    
    
    18.31
    %
    
    
    
    
    
    
    23.95
    %Services
    
    $
    291,576
    
    
    
    12.17
    %
    
    $
    319,318
    
    
    
    13.86
    %
    
    $
    27,742
    
    
    
    9.51
    %Services  GM%
    
    
    21.61
    %
    
    
    
    
    
    
    32.79
    %Total gross margin
    
    $
    2,395,459
    
    
    
    100.00
    %
    
    $
    2,303,884
    
    
    
    100.00
    %
    
    $
    (91,575
    )
    
    
    (3.82
    )%Total  GM%
    
    
    18.66
    %
    
    
    
    
    
    
    24.88
    %
   Operating Expense Discussion:
  Six Months Ended April 30,2006
    
    2007
    
    Increase (decrease)% of Net
    
    
    
    
    
    % of NetDollars
    
    Revenues
    
    Dollars
    
    Revenues
    
    Dollars
    
    PercentageSelling and marketing
    
    $
    1,212,152
    
    
    
    9.44
    %
    
    $
    754,754
    
    
    
    8.15
    %
    
    $
    (457,398
    )
    
    
    (37.73
    )%Research and product
development
    
    
    305,806
    
    
    
    2.38
    %
    
    
    294,597
    
    
    
    3.18
    %
    
    
    (11,209
    )
    
    
    (3.67
    )%General and
administrative
    
    
    3,208,398
    
    
    
    24.99
    %
    
    
    2,709,377
    
    
    
    29.26
    %
    
    
    (499,021
    )
    
    
    (15.55
    )%Amortization of other
intangible assets
    
    
    57,557
    
    
    
    0.45
    %
    
    
    
    
    
    
    0.00
    %
    
    
    (57,557
    )
    
    
    (100.00
    )%Total operating expenses
    
    $
    4,783,913
    
    
    
    37.26
    %
    
    $
    3,758,728
    
    
    
    40.59
    %
    
    $
    (1,025,185
    )
    
    
    (21.43
    )%
 16




---



##### 



Other Income Discussion:
  Six Months Ended April 30,2006
    
    2007
    
    Increase (decrease)% of Net
    
    
    
    
    
    % of NetDollars
    
    Revenues
    
    Dollars
    
    Revenues
    
    Dollars
    
    PercentageInterest income,
net
    
    $
    29,257
    
    
    
    0.23
    %
    
    $
    25,690
    
    
    
    0.28
    %
    
    $
    (3,567
    )
    
    
    (12.19
    )%Total other income
    
    $
    29,257
    
    
    
    0.23
    %
    
    $
    25,690
    
    
    
    0.28
    %
    
    $
    (3,567
    )
    
    
    (12.19
    )%
  17




---



##### 



Provision for Income Tax Discussion:
  Six Months Ended April 30,2006
    
    2007
    
    Increase (decrease)% of Net
    
    
    
    
    
    % of NetDollars
    
    Revenues
    
    Dollars
    
    Revenues
    
    Dollars
    
    PercentageProvision for
income tax
    
    $
    400,000
    
    
    
    3.12
    %
    
    $
    
    
    
    
    0.00
    %
    
    $
    (400,000
    )
    
    
    (100.00
    )%
  Net (Loss) Discussion:
  Six Months Ended April 30,2006
    
    2007
    
    Increase (decrease)% of Net
    
    
    
    
    
    % of NetDollars
    
    Revenues
    
    Dollars
    
    Revenues
    
    Dollars
    
    PercentageNet (loss)
    
    $
    (2,759,197
    )
    
    
    (21.49
    )%
    
    $
    (1,429,154
    )
    
    
    (15.43
    )%
    
    $
    (1,330,043
    )
    
    
    (48.20
    )%
  18




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##### 



LIQUIDITY AND CAPITAL RESOURCES
        Contractual Obligations and Commercial Commitments:
  Contractual Obligations
    
    Payments Due by PeriodTotal
    
    
    Less than 1 year
    
    
    1-3 years
    
    
    4-5 years
    
    
    After 5 yearsNotes payable
    
    $
    35,992
    
    
    $
    14,793
    
    
    $
    17,201
    
    
    $
    3,998
    
    
    
    Operating leases
    
    
    2,621,678
    
    
    
    564,196
    
    
    
    891,854
    
    
    
    537,982
    
    
    
    627,646Employment
agreements
    
    
    595,625
    
    
    
    318,542
    
    
    
    277,083
    
    
    
    
    
    
    
    Total
    
    $
    3,253,295
    
    
    $
    897,531
    
    
    $
    1,186,138
    
    
    $
    541,980
    
    
    $
    627,646
  19




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##### 



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  ITEM 4. CONTROLS AND PROCEDURES
 Evaluation the Companys Disclosure Controls and Internal Controls
  Limitations
  Changes in Internal Controls Over Financial Reporting
  PART II. OTHER INFORMATION
 ITEM 1. LEGAL PROCEEDINGS
   ITEM 1A. RISK FACTORS
  20




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##### 



ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
  ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  ITEM 5. OTHER INFORMATION
  ITEM 6. EXHIBITS
 Exhibit 11.1
    
    Statement of computation of earnings per share.Exhibit 31.1
    
    Certification of Chief Executive Officer and President
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.Exhibit 31.2
    
    Certification of Chief Operating Officer Pursuant to Section
302 of the Sarbanes-Oxley Act of 2002.Exhibit 31.3
    
    Certification of Chief Financial Officer Pursuant to Section
302 of the Sarbanes-Oxley Act of 2002.Exhibit 32.1
    
    Certification Pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes  Oxley Act of 2002.Exhibit 32.2
    
    Certification Pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes  Oxley Act of 2002.Exhibit 32.3
    
    Certification Pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes  Oxley Act of 2002.
 21




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##### 



SIGNATURES
  June 13, 2007
    STEELCLOUD, INC.By:
    /s/ Clifton W. Sink, Jr.Name:
    Clifton W. Sink, Jr.Title:
    Chief Executive Officer and PresidentBy:
    /s/ Robert RichmondName:
    Robert RichmondTitle:
    Chief Operating OfficerBy:
    /s/ Kevin MurphyName:
    Kevin MurphyTitle:
    Chief Financial Officer 22