-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 QCTDi866LSu6iXiGQKp1u5JEVn7F+sdBTC66NgFgW++l6gBVfboRIKulh69wSAAk
 aBTTsYnrKbcH36gleSpMrw==

<SEC-DOCUMENT>0000950117-04-002116.txt : 20040608
<SEC-HEADER>0000950117-04-002116.hdr.sgml : 20040608
<ACCEPTANCE-DATETIME>20040608090645
ACCESSION NUMBER:		0000950117-04-002116
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20040430
FILED AS OF DATE:		20040608

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COMTECH TELECOMMUNICATIONS CORP /DE/
		CENTRAL INDEX KEY:			0000023197
		STANDARD INDUSTRIAL CLASSIFICATION:	RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
		IRS NUMBER:				112139466
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0731

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-07928
		FILM NUMBER:		04852946

	BUSINESS ADDRESS:	
		STREET 1:		105 BAYLIS RD
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
		BUSINESS PHONE:		6317778900

	MAIL ADDRESS:	
		STREET 1:		105 BAYLIS ROAD
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	COMTECH INC
		DATE OF NAME CHANGE:	19870503

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	COMTECH TELECOMMUNICATIONS CORP
		DATE OF NAME CHANGE:	19831215

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	COMTECH LABORATORIES INC
		DATE OF NAME CHANGE:	19780425
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>a37807.htm
<DESCRIPTION>COMTECH TELECOMMUNICATIONS CORP.
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff">
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font SIZE=2>UNITED STATES</font><br><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2>Washington, D.C. 20459</font></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:12pt;'><font size=2>Form 10-Q</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>(Mark One)</font></p>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="8%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(X)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="8%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>For the quarterly period ended April 30, 2004</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="8%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(&nbsp;&nbsp;)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="8%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top">
      <p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>For the transition
        period from _________________________ to __________________________</font>
    </td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="8%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Commission File Number: 0-7928</font></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><font size=2><img src="image002.jpg"><br> </font></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:12pt;'><font size=2>(Exact name of registrant as specified in its charter)</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;&nbsp;</font></p>
<table width="75%" border="0" cellspacing=0 cellpadding=0 style='margin-left:41.85pt; border-collapse:collapse'>
  <tr >
<td valign=bottom > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Delaware</font></p> </td>
    <td valign=bottom >
      <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:right;'><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
    </td>
<td valign=bottom > <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:center;'><font size=2>11-2139466</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>(State&nbsp;or&nbsp;other&nbsp;jurisdiction&nbsp;of&nbsp;incorporation&nbsp;/organization)</font></p> </td>
    <td valign=bottom >
      <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:right;'><font size=2>&nbsp;&nbsp;&nbsp;</font></p> </td>
<td valign=bottom > <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:center;'><font size=2>(I.R.S.&nbsp;Employer&nbsp;Identification&nbsp;Number)</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
    <td valign=bottom >
      <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:center;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>105 Baylis Road, Melville, New York</font></p> </td>
    <td valign=bottom >
      <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:center;'><font size=2>11747</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>(Address of principal executive offices)</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>
    <td valign=bottom >
      <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:center;'><font size=2>(Zip Code)</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
    <td valign=bottom >
      <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:center;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>(631) 777-8900</font></p> </td>
    <td valign=bottom >
      <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:center;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>(Registrant&#146;s telephone number, including area code)</font></p> </td>
    <td valign=bottom >
      <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:right;'><font size=2>&nbsp;&nbsp;</font></p> </td>
<td valign=bottom > <p style='margin-left:0;margin-top:0pt;margin-bottom:0pt;text-align:center;'><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. </font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>(X) Yes (&nbsp;&nbsp;) No</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Indicate by check mark whether registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>(X) Yes (&nbsp;&nbsp;) No</font></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:12pt;'><font SIZE=2>APPLICABLE ONLY TO CORPORATE ISSUERS:</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>As of June 3, 2004,
  the number of outstanding shares of Common Stock, par value $.10 per share,
  of the Registrant was 14,222,945 shares. </font></p>

<br><p style='margin-bottom:0pt;text-align:left'><font size=2>
</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><u><b><font SIZE=2>COMTECH TELECOMMUNICATIONS CORP.</font></b></u></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:8pt;'><u><b><font SIZE=2>INDEX</font></b></u></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="100%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr >
    <td width="10%" valign=bottom >
      <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p>
    </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;text-align:center;'><u><b><font size=2>Page</font></b></u><b><u></u></b></p> </td> </tr> <tr >
<td colspan="3" valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><b><font SIZE=2>PART I.  FINANCIAL INFORMATION</font></b></p> </td>
<td width="6%" valign=bottom > <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-align:right; text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="7%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style=' height:.05in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-align:right; text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="7%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=2>Item 1.</font></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Financial Statements</font></p> </td>
<td width="6%" valign=bottom > <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-align:right; text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="7%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style=' height:.05in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-align:right; text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="7%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><a href="#s1"><u><font size=2>Consolidated Balance Sheets &#150; April 30, 2004 (Unaudited) and July 31, 2003</font></u></a></p> </td>
<td width="6%" valign=bottom > <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>2</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="7%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style=' height:.05in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-align:right; text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="7%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><a href="#s2"><u><font size=2>Consolidated Statements of Operations  - Three Months and Nine Months Ended April 30, 2004 and 2003 (Unaudited)</font></u></a></p> </td>
<td width="6%" valign=bottom > <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>3</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="7%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style=' height:.05in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-align:right; text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="7%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><a href="#s3"><u><font size=2>Consolidated Statements of Cash Flows - Nine Months Ended April 30, 2004 and 2003 (Unaudited)</font></u></a></p> </td>
<td width="6%" valign=bottom > <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>4</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="7%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style=' height:.05in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-align:right; text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="7%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><a href="#s4"><u><font size=2>Notes to Consolidated Financial Statements</font></u></a></p> </td>
    <td width="6%" valign=bottom nowrap >
      <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>5&nbsp;-&nbsp;10</font></p>
    </td> </tr> <tr  style='height:.05in'>
<td width="7%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style=' height:.05in'> <p style='margin-top:0in;margin-left:17.3pt;margin-bottom:.0001pt;text-align:right; text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="7%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><a href="#s5"><u><font size=2>Item 2.</font></u></a></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><a href="#s5"><u><font size=2>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</font></u></a></p> </td>
    <td width="6%" valign=bottom nowrap >
      <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>11&nbsp;-&nbsp;18</font></p>
    </td> </tr> <tr  style='height:.05in'>
<td width="7%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style=' height:.05in'> <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="7%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><a href="#s6"><u><font size=2>Item 3.</font></u></a></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><a href="#s6"><u><font size=2>Quantitative and Qualitative Disclosures about Market Risk</font></u></a></p> </td>
<td width="6%" valign=bottom > <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>18</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="7%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style=' height:.05in'> <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="7%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><a href="#s7"><u><font size=2>Item 4.</font></u></a></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><a href="#s7"><u><font size=2>Controls and Procedures</font></u></a></p> </td>
<td width="6%" valign=bottom > <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>18</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="7%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style=' height:.05in'> <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td colspan="3" valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><b><font SIZE=2>PART II.  OTHER INFORMATION</font></b></p> </td>
<td width="6%" valign=bottom > <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="7%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style=' height:.05in'> <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="7%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><a href="#s8"><u><font size=2>Item 6.</font></u></a></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><a href="#s8"><u><font size=2>Exhibits and Reports on Form 8-K</font></u></a></p> </td>
<td width="6%" valign=bottom > <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>19</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="7%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style=' height:.05in'> <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td colspan="3" valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><a href="#s9"><u><font size=2>Signature Page</font></u></a></p> </td>
<td width="6%" valign=bottom > <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>20</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="7%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;text-align:right;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style=' height:.05in'> <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td colspan="3" valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><a href="#s10"><u><font size=2>Certifications</font></u></a></p> </td>
    <td width="6%" valign=bottom nowrap >
      <p style='margin-top:0in; margin-left:17.3pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>21&nbsp;-&nbsp;24</font></p>
    </td> </tr> </table>
<br>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>1</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><u><font size=2><a name="s1">PART I</a></font></u><br><u><font SIZE=2>FINANCIAL INFORMATION</font></u><br><u><font SIZE=2>COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES</font></u><br><u><font SIZE=2>CONSOLIDATED BALANCE SHEETS</font></u></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="100%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr >
<td width="42%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>Item 1.</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>April 30,</font><br> <font size=2>2004</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>July 31,</font><br> <font size=2>2003</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="42%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="42%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Assets</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>(Unaudited)</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=2>Current assets:</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Cash and cash equivalents</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>152,818,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>48,617,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Restricted cash</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,196,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,288,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Accounts receivable, net</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>48,565,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>26,696,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Inventories, net</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>36,626,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>34,048,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Prepaid expenses and other current assets</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,155,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,742,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Deferred tax asset &#150; current</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,699,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,699,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Total current assets</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>250,059,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>121,090,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.6in;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Property, plant and equipment, net</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>13,351,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>12,328,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Goodwill and other intangibles with indefinite lives </font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>17,726,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>17,726,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Intangibles with definite lives, net</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9,855,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11,353,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Deferred financing costs, net</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,677,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Other assets</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>370,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>390,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Deferred tax asset &#150; non-current</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,363,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,363,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>296,401,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>164,250,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Total assets</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt; text-align:center;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;text-align:center;'><font size=2>Liabilities and Stockholders&#146; Equity</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=2>Current liabilities:</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Current installments of capital lease obligations </font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>343,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>899,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Accounts payable</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11,154,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11,527,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Accrued expenses and other current liabilities</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>17,301,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>13,267,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Customer advances and deposits</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,855,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,491,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Deferred service revenue</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>13,439,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11,160,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Interest payable</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>554,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Income taxes payable</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,414,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,945,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Total current liabilities</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>55,060,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>46,289,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.6in;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Convertible senior notes</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>105,000,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Capital lease obligations, less current installments </font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>194,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>393,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Total liabilities</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>160,254,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>46,682,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.6in;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=2>Stockholders&#146; equity:</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Preferred stock, par value $.10 per share; shares authorized and unissued 2,000,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Common stock, par value $.10 per share; authorized 30,000,000 shares; issued 14,363,570 shares at April 30, 2004 and 14,020,769 shares at July 31, 2003</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,436,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,402,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Additional paid-in capital</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>110,321,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>107,573,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Retained earnings </font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>24,623,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>8,884,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>136,380,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>117,859,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Less:</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Treasury stock (140,625 shares) </font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(185,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=2>)</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(185,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Deferred compensation</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(48,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=2>)</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(106,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Total stockholders&#146; equity</font></p> </td>
<td valign=bottom style='background:#EAF9E8;'> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>136,147,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>117,568,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Total&nbsp;liabilities&nbsp;and&nbsp;stockholders&#146;&nbsp;equity</font></p> </td>
<td valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>296,401,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>164,250,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=2>Commitments and contingencies</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt;text-align:center; margin-top:18pt;'><font size=2>See accompanying notes to consolidated financial statements.</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>2</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><u><font size=2><a name="s2">COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES</a></font></u><br><u><font SIZE=2>CONSOLIDATED STATEMENTS OF OPERATIONS</font></u><br><font size=2>(Unaudited)</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="100%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '>
  <tr >
    <td valign=bottom >
      <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="23%" colspan="4" valign=bottom >
      <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Three
        months ended</font><br>
        <font size=2>April 30,</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="24%" colspan="3" valign=bottom >
      <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Nine
        months ended</font><br>
        <font size=2>April 30,</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td colspan="4" valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td colspan="3" valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="11%" colspan="2" valign=bottom >
      <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2><u>2004</u></font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2><u>2003</u></font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2><u>2004</u></font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2><u>2003</u></font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >&nbsp;</td>
    <td valign=top >&nbsp;</td>
    <td width="2%" valign=top >&nbsp;</td>
    <td valign=top >&nbsp;</td>
    <td width="2%" valign=top >&nbsp;</td>
    <td valign=top >&nbsp;</td>
    <td width="2%" valign=top >&nbsp;</td>
    <td valign=top >&nbsp;</td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom style='background:#EAF9E8; '>
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Net
        sales</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>51,244,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>48,753,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>164,334,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>122,352,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Cost
        of sales</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>30,635,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>32,262,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>102,132,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>80,641,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Gross
        profit</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>20,609,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>16,491,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>62,202,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>41,711,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Expenses:</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Selling,
        general and administrative</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>8,775,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>7,270,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>26,153,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>19,970,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Research
        and development</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,993,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,014,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11,198,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9,326,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Amortization
        of intangibles</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>499,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>488,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,498,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,540,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>13,267,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10,772,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>38,849,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>30,836,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom style='background:#EAF9E8; '>
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Operating
        income </font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>7,342,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,719,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>23,353,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10,875,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom style='background:#EAF9E8; '>
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Other
        expense (income):</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Interest
        expense</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>675,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>682,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>750,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,059,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Interest
        income</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(324,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=2>)</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(66,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=2>)</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(543,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=2>)</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(187,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=2>)</font></p>
    </td>
  </tr>
  <tr >
    <td valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom style='background:#EAF9E8; '>
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Income
        before provision for income taxes</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,991,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,103,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>23,146,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>9,003,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Provision
        for income taxes</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,238,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,633,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>7,407,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,881,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom style='background:#EAF9E8; '>
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Net
        income </font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,753,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,470,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>15,739,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,122,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Net
        income per share:</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Basic</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.33</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.31</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1.12</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.54</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Diluted
        </font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.31</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.29</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1.02</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.52</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Weighted
        average number of common shares outstanding &#150; basic</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>14,217,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11,351,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>14,083,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11,307,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom >
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Potential
        dilutive common shares</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom >
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,187,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>711,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,354,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom >
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>563,000</font></p>
    </td>
    <td width="2%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="1">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Weighted
        average number of common and common equivalent shares outstanding assuming
        dilution &#150; diluted </font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="1%" valign=bottom style='background:#EAF9E8; '>
      <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>15,404,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="9%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>12,062,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>15,437,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
    <td width="10%" valign=bottom style='background:#EAF9E8; '>
      <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11,870,000</font></p>
    </td>
    <td width="2%" valign=bottom style='background:#EAF9E8; '>
      <p ><font size=1>&nbsp;</font></p>
    </td>
  </tr>
  <tr >
    <td valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
    <td valign=top >
      <hr noshade width="100%"  color="gray" size="3">
    </td>
    <td width="2%" valign=top >
      <p><font size=1>&nbsp;</font></p>
    </td>
  </tr>
</table>
<br>
<p style=' margin-bottom:0pt;text-align:center; margin-top:18pt;'><font size=2>See accompanying notes to consolidated financial statements</font><i><font size=2>.</font></i></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>3</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><u><font size=2><a name="s3">COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES</a></font></u><br><u><font SIZE=2>CONSOLIDATED STATEMENTS OF CASH FLOWS</font></u><br><font size=2>(Unaudited)</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="100%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '>
  <tr >
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="15%" colspan="4" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Nine months ended</font><br> <font size=2>April 30,</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="4" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2004</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2003</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
    <td width="3%" valign=top >
      <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Cash flows from operating activities:</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Net income</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>15,739,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,122,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Adjustments to reconcile net income to net cash provided by operating activities:</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Depreciation of property, plant and equipment and amortization of intangibles</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,738,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,617,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Amortization of deferred financing costs</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>144,000</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Provision for doubtful accounts</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>123,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>170,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Provision for inventory reserves</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>956,000</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,749,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Income tax benefit from stock option exercises</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,001,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Loss on disposal of property, plant and equipment</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>90,000</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Changes in operating assets and liabilities, net of effect of acquisitions:</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Restricted cash </font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>92,000</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(4,247,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Accounts receivable</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(21,992,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=2>)</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(4,410,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Inventories</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(3,534,000</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=2>)</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(209,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Prepaid expenses and other current assets</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(413,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=2>)</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(637,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Other assets</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>20,000</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(78,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Accounts payable</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(373,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=2>)</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,197,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Accrued expenses and other current liabilities</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,034,000</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,981,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Customer advances and deposits</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,364,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,610,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Deferred service revenue</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,279,000</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,332,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Interest payable</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>554,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:34.55pt;text-indent:-8.65pt;'><font size=2>Income taxes payable</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(531,000</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=2>)</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,961,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
    <td width="3%" valign=top >
      <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Net cash provided by operating activities</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,291,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>19,158,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
    <td width="3%" valign=top >
      <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Cash flows from investing activities:</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Purchases of property, plant and equipment</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(4,295,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=2>)</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(3,057,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Purchase of technology license</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(75,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Payment for business acquisitions</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(440,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Cash received in connection with business acquisitions</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>551,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
    <td width="3%" valign=top >
      <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=2>Net cash used in investing activities</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(4,295,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=2>)</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(3,021,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
    <td width="3%" valign=top >
      <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Cash flows from financing activities:</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Principal payments on capital lease obligations</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(755,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=2>)</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(802,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Proceeds from issuance of convertible senior notes, net of related costs of $3,821,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>101,179,000</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Proceeds from exercises of stock options, warrants and employee stock purchase plan shares</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,781,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>452,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
    <td width="3%" valign=top >
      <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:.6in;text-indent:-8.65pt;'><font size=2>Net cash provided by (used in) financing activities</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>102,205,000</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(350,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
    <td width="3%" valign=top >
      <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Net increase in cash and cash equivalents</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>104,201,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>15,787,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Cash and cash equivalents at beginning of period</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>48,617,000</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>15,510,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
    <td width="3%" valign=top >
      <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Cash and cash equivalents at end of period</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>152,818,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>31,297,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
    <td width="3%" valign=top >
      <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><u><font size=2>Supplemental cash flow disclosure:</font></u><u></u></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Cash paid during the period for:</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Interest</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>52,000</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,415,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Income taxes</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,937,000</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt;text-align:center; margin-top:18pt;'><font size=2>See accompanying notes to consolidated financial statements.</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>4</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt;text-align:center; margin-top:0pt;'><u><font size=2><a name="s4">COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES</a></font></u><br><u><font SIZE=2>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</font></u><br><font size=2>(Unaudited)</font></p>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(1)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><u><i><font size=2>General</font></i></u></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The accompanying consolidated financial statements at and for the three and nine months ended April 30, 2004 and 2003 are unaudited. In the opinion of management, the information furnished reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the unaudited interim periods. The results of operations for such periods are not necessarily indicative of the results of operations to be expected for the full year.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>These consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the fiscal year ended July 31, 2003 and the notes thereto contained in the Company&#146;s Annual Report on Form 10-K, filed with the Securities and Exchange Commission, and the Company&#146;s other filings with the Securities and Exchange Commission.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(2)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><u><i><font size=2>Reclassifications</font></i></u></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Certain reclassifications have been made to previously reported statements to conform to the Company&#146;s current financial statement format.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(3)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><u><i><font size=2>Accounts Receivable</font></i></u></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="88%" border="0" cellspacing=0 cellpadding=0 style='margin-left:20.9pt; border-collapse:collapse'>
  <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>Accounts receivable consist of the following:</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>April&nbsp;30,&nbsp;2004</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>July&nbsp;31,&nbsp;2003</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=top >
      <p><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Accounts receivable from commercial customers</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>17,378,000</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10,952,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Unbilled receivables (including retainages) on contracts-in-progress</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>20,443,000 </font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10,084,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Amounts receivable from the U.S. government and its agencies</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11,465,000</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,572,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=top >
      <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>49,286,000</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>27,608,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Less allowance for doubtful accounts</font></p> </td>
    <td width="3%" valign=bottom style='background:#EAF9E8;'>
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>721,000</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>912,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=top >
      <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Accounts receivable, net</font></p> </td>
    <td width="3%" valign=bottom >
      <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>48,565,000</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>26,696,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
    <td width="3%" valign=top >
      <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The amount of retainage included in unbilled receivables was $20,000 at April 30, 2004. In the opinion of management, substantially all of the unbilled balances will be billed and collected within one year.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>As of April 30, 2004, a prime contractor and a North African country represented 15.6% and 21.5%, respectively, of total net accounts receivable.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(4)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><u><i><font size=2>Inventories</font></i></u></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="88%" border="0" cellspacing=0 cellpadding=0 style='margin-left:20.9pt; border-collapse:collapse'> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>Inventories consist of the following:</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>April&nbsp;30,&nbsp;2004</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>July&nbsp;31,&nbsp;2003</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Raw materials and components</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>18,524,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>16,431,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Work-in-process and finished goods</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>23,668,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>22,716,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>42,192,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>39,147,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Less:</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Reserve for anticipated losses on contracts and inventory reserves</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,566,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,099,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:25.9pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:17.3pt;text-indent:-8.65pt;'><font size=2>Inventories, net</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>36,626,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>34,048,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Inventories directly related to long-term contracts were $9,946,000 and $13,742,000 at April 30, 2004 and July 31, 2003, respectively.</font></td></tr></table>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>5</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>

<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>(5)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:0pt;'><u><i><font size=2>Accrued Expenses and Other Current Liabilities</font></i></u></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Accrued expenses and other current liabilities consist of the following:</font></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="88%" border="0" cellspacing=0 cellpadding=0 style='margin-left:20.9pt; border-collapse:collapse'> <tr >
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>April&nbsp;30,&nbsp;2004</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>July&nbsp;31,&nbsp;2003</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Accrued wages and benefits</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>7,767,000</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,724,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Accrued commissions</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,925,000</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,993,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Accrued warranty</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,127,000</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,139,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Other</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,482,000</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,411,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>17,301,000</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>13,267,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Changes in the Company&#146;s product warranty liability during the nine months ended April 30, 2004 and 2003 were as follows:</font></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="88%" border="0" cellspacing=0 cellpadding=0 style='margin-left:20.9pt; border-collapse:collapse'> <tr >
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="17%" colspan="4" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Nine&nbsp;months&nbsp;ended&nbsp;April&nbsp;30,</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="4" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2004</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2003</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Balance at beginning of period</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,139,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,975,000 </font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Provision for warranty obligations</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,865,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,761,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Charges incurred</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1,877,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=2>)</font></p> </td>
<td width="9%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1,816,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=2>)</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Balance at end of period</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="6%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,127,000</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,920,000 </font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(6)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><u><i><font size=2>2.0% Convertible Senior Notes due 2024</font></i></u></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>On January 27, 2004, the Company issued $105,000,000 of its 2.0% convertible senior notes in a private offering pursuant to Rule 144A of the Securities Act of 1933, as amended. The net proceeds from this transaction were $101,179,000 after deducting the initial purchaser&#146;s discount and other transaction costs.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The notes bear interest at an annual rate of 2.0% and, during certain periods, the notes are convertible into shares of the Company&#146;s common stock at an initial conversion price of $47.25 per share (a conversion rate of 21.1640 shares per $1,000 original principal amount of notes), subject to adjustment in certain circumstances. The notes may be converted if, during a conversion period on each of at least 20 trading days, the closing sale price of the Company&#146;s common stock exceeds 120% of the conversion price in effect. Upon conversion of the notes, in lieu of delivering common stock, the Company may, in its discretion, deliver cash or a combination of cash and common stock. The Company may, at its option, redeem
some or all of the notes on or after February 4, 2009. Holders of the notes will have the right to require the Company to repurchase some or all of the outstanding notes on February 1, 2011, February 1, 2014 and February 1, 2019 and upon certain events, including a change in control. If not redeemed by the Company or repaid pursuant to the holders&#146; right to require repurchase, the notes mature on February 1, 2024.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The 2.0% interest is payable in cash, semi-annually, through February 1, 2011. After such date, the 2.0% interest will be accreted into the principal amount of the notes. Also, commencing with the six month period beginning February 1, 2009, if the average note price for the applicable trading period equals 120% or more of the accreted principal amount of such notes, the Company will pay contingent interest at an annual rate of 0.25%. </font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The notes are general unsecured obligations of the Company, ranking equally in right of payment with all of its other existing and future unsecured senior indebtedness and senior in right of payment to any of its future subordinated indebtedness. The notes are fully and unconditionally guaranteed on a senior subordinated basis by certain of the Company&#146;s subsidiaries.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The Company intends to use the net proceeds of the offering for working capital and general corporate purposes and potentially for future acquisitions of businesses or technologies or repurchases of the Company&#146;s common stock. The Company filed a registration statement with the SEC, which has become effective, for the resale of the notes and the shares of common stock issuable upon conversion of the notes.</font></td></tr></table>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>6</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>

<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>(7)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:0pt;'><u><i><font size=2>Earnings Per Share</font></i></u></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The Company calculates earnings per share (&#147;EPS&#148;) in accordance with Statement of Financial Accounting Standards (&#147;SFAS&#148;) No. 128, &#147;Earnings per Share&#148;. Basic EPS is computed based on the weighted average number of shares outstanding. Diluted EPS reflects the maximum dilution from potential common stock issuable pursuant to the exercise of stock options and warrants, if dilutive, outstanding during each period. Since the conditions required for conversion of the convertible senior notes have not been met, the Company did not assume conversion of the notes in calculating diluted EPS for the three and nine months ended April 30, 2004. All share and per share amounts have been restated to reflect a
three-for-two stock split effective July 2003.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>For the three and nine months ended April 30, 2004, 99,500 and 33,833 options, respectively, were not included in the calculation of diluted EPS, as their effect would have been antidilutive. For the three and nine months ended April 30, 2003, 347,500 and 893,333 options, respectively, were not included in the calculation of diluted EPS, as their effect would have been antidilutive.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(8)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><u><i><font size=2>Stock-Based Compensation Plans</font></i></u></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The Company accounts for its stock option plans under the intrinsic value method of APB Opinion No. 25, and as a result, no compensation cost has been recognized. Had compensation cost for these plans been determined consistent with SFAS No. 123, the Company&#146;s net income and income per share would have been reduced to the following pro forma amounts:</font></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;&nbsp;</font></p>
<table width="88%" border="0" cellspacing=0 cellpadding=0 style='margin-left:20.9pt; border-collapse:collapse'> <tr >
<td colspan="4" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="24%" colspan="4" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Three months ended</font><br> <font size=2>April 30,</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="24%" colspan="3" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Nine months ended</font><br> <font size=2>April 30,</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td colspan="4" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="4" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="3" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td colspan="4" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="11%" colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2004</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2003</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="11%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2004</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2003</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td colspan="4" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td colspan="4" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="11%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td colspan="4" valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Net income, as reported</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,753,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,470,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="11%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>15,739,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,122,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td colspan="4" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Less: Stock-based employee compensation expense based on fair value method, net of related tax</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(384,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=2>)</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(158,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=2>)</font></p> </td>
<td width="11%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1,088,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=2>)</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(468,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=2>)</font></p> </td> </tr> <tr >
<td colspan="4" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td colspan="4" valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Pro forma net income </font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,369,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,312,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="11%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>14,651,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,654,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td colspan="4" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td colspan="4" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Net income per share:</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="11%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
    <td width="11%" valign=bottom style='background:#EAF9E8; '>
      <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=2>As&nbsp;reported</font></p>
    </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=2>Basic</font></p> </td>
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.33</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.31</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="11%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1.12</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.54</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="11%" valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=2>Diluted</font></p> </td>
<td valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.31</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.29</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="11%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1.02</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.52</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="11%" valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=2>Pro forma</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=2>Basic</font></p> </td>
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.31</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.29</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="11%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1.04</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.50</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="11%" valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=2>Diluted</font></p> </td>
<td valign=bottom > <p style='margin-left:0.12in;text-indent:-0.12in;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.28</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.27</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="11%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.95</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>0.48</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The per share weighted average fair value of stock options granted during the three months ended April 30, 2004 and 2003 was $17.81 and $4.14, respectively, on the date of grant. These fair values were determined using the Black Scholes option-pricing model with the following weighted average assumptions:  2004 &#150; expected dividend yield of 0%, risk free interest rate of 2.68%, expected volatility of 77.04%, and an expected life of 5 years; 2003 &#150; expected dividend yield of 0%, risk free interest rate of 2.54%, expected volatility of 62.15%, and an expected life of 5 years. </font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The per share weighted average fair value of stock options granted during the nine months ended April 30, 2004 and 2003 was $9.52 and $2.80, respectively, on the date of grant. These fair values were determined using the Black Scholes option-pricing model with the following weighted average assumptions:  2004 &#150; expected dividend yield of 0%, risk free interest rate of 3.22%, expected volatility of 50.66% and an expected option life of 5 years; 2003 &#150; expected dividend yield of 0%, risk free interest rate of 3.32%, expected volatility of 56.52%, and an expected option life of 5 years.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(9)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><u><i><font size=2>Segment and Principal Customer Information</font></i></u></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Reportable operating segments are determined based on the Company&#146;s management approach. The management approach, as defined by SFAS No. 131, is based on the way that the chief operating decision-maker organizes the segments within an enterprise for making operating decisions and assessing performance. While the Company&#146;s results of operations are primarily reviewed on a consolidated basis, the chief operating decision-maker also manages the enterprise in three segments:  (i) telecommunications transmission, (ii) RF microwave amplifiers and (iii) mobile data communications. Telecommunications transmission products include modems, frequency converters, satellite VSAT transceivers and antennas and over-the-horizon
microwave communications products</font></td></tr></table>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>7</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>

<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>and systems. RF microwave amplifier products include high-power amplifier products that use the microwave and radio frequency spectrums. Mobile data communications provide satellite-based mobile tracking and messaging hardware and related services. Unallocated assets consist principally of cash, deferred financing costs and deferred tax assets. Unallocated expenses result from such corporate expenses as legal, accounting and executive. Interest expense associated with the Company&#146;s 2% convertible senior notes is not allocated to the operating segments. Corporate management defines and reviews segment profitability based on the same allocation methodology as presented in the segment data tables. Substantially all of the
Company&#146;s long-lived assets are located in the United States. </font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Intersegment sales for the three and nine months ended April 30, 2004 by the telecommunications transmission segment to the RF microwave amplifiers segment were $908,000 and $1,989,000, respectively. Intersegment sales for the three and nine months ended April 30, 2004 by the telecommunications transmission segment to the mobile data communications segment were $2,775,000 and $9,686,000, respectively. Intersegment sales have been eliminated from the tables below.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Intersegment sales for the three and nine months ended April 30, 2003 by the telecommunications transmission segment to the RF microwave amplifiers segment were $920,000 and $2,868,000, respectively. Intersegment sales for the three and nine months ended April 30, 2003 by the telecommunications transmission segment to the mobile data communications segment were $6,758,000 and $7,668,000, respectively. </font></td></tr></table>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><b><font size=2>Three months ended</font></b><br><u><b><font size=2>April </font><font size=2>30, 2004</font></b></u><br><font size=2>(in thousands)</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<table width="88%" border="0" cellspacing=0 cellpadding=0 style='margin-left:20.9pt; border-collapse:collapse'> <tr >
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="4" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Telecommunications</font><br> <u><font size=2>Transmission</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>RF&nbsp;Microwave</font><br> <u><font size=2>Amplifiers</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Mobile Data</font><br> <u><font size=2>Communications</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><u><font size=2>Unallocated</font></u><u></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><u><font size=2>Total</font></u><u></u></p> </td>
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Net sales</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=2>$</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>34,754</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,751</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>11,739</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>51,244</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Operating income (loss)</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>7,834</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>131</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>962</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1,585</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=2>)</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>7,342</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Interest income</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>323</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>324</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Interest expense</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>8</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>661</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>675</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Depreciation of property, plant and equipment and amortization of intangibles</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,189</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>271</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>96</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>58</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,614</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Expenditures for long-lived assets, including intangibles</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,393</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>345</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>117</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>20</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,875</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Total assets</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>85,577</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>22,711</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>24,995</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>163,118</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>296,401</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><b><font size=2>Three months ended</font></b><br><u><b><font size=2>April </font><font size=2>30, 2003</font></b></u><br><font size=2>(in thousands)</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="88%" border="0" cellspacing=0 cellpadding=0 style='margin-left:20.9pt; border-collapse:collapse'> <tr >
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="4" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Telecommunications</font><br> <u><font size=2>Transmission</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>RF&nbsp;Microwave</font><br> <u><font size=2>Amplifiers</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Mobile Data</font><br> <u><font size=2>Communications</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><u><font size=2>Unallocated</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><u><font size=2>Total</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Net sales</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;' ><font size=2>26,762</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,729</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>16,262</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="4%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>48,753</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Operating income (loss)</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,286</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>429</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,149</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(1,145</font></p> </td>
<td width="4%" valign=bottom > <p ><font size=2>)</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>5,719</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Interest income</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>65</font></p> </td>
<td width="4%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>66</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Interest expense</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>461</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>221</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="4%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>682</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2.0pt;margin-right:7.8pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>Depreciation of property, plant and equipment and amortization of intangibles</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,097</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>318</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>67</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>27</font></p> </td>
<td width="4%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,509</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Expenditures for long-lived assets, including intangibles</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,386</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>29</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>175</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>7</font></p> </td>
<td width="4%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,597</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Total assets</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>59,035</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>21,640</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>30,611</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>37,356</font></p> </td>
<td width="4%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>148,642</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>8</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><b><font size=2>Nine months ended</font></b><br><u><b><font size=2>April 30, 2004</font></b></u><br><font size=2>(in thousands)</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="88%" border="0" cellspacing=0 cellpadding=0 style='margin-left:20.9pt; border-collapse:collapse'> <tr >
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan="4" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Telecommunications</font><br> <u><font size=2>Transmission</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan="3" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>RF&nbsp;Microwave</font><br> <u><font size=2>Amplifiers</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Mobile Data</font><br> <u><font size=2>Communications</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td colspan="3" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><u><font size=2>Unallocated</font></u><u></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><u><font size=2>Total</font></u><u></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Net sales</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>103,547</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>14,371</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>46,416</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>164,334</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Operating income (loss)</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>21,625</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>618</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,086</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;text-indent:7.4pt;'><font size=2>(4,976</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=2>)</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>23,353</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Interest income</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>22</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>518</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>543</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Interest expense</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>34</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>18</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>698</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>750</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Depreciation of property, plant and equipment and amortization of intangibles</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,502</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>814</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>308</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>114</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,738</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Expenditures for long-lived assets, including intangibles</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,531</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>433</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>292</font></p> </td>
<td width="6%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>39</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,295</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Total assets</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>85,577</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>22,711</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>24,995</font></p> </td>
<td width="6%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>163,118</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>296,401</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><b><font size=2>Nine months ended</font></b><br><u><b><font size=2>April 30, 2003</font></b></u><br><font size=2>(in thousands)</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="88%" border="0" cellspacing=0 cellpadding=0 style='margin-left:20.9pt; border-collapse:collapse'> <tr >
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="4" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Telecommunications</font><br> <u><font size=2>Transmission</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="3" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>RF&nbsp;Microwave</font><br> <u><font size=2>Amplifiers</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Mobile Data</font><br> <u><font size=2>Communications</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="3" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><u><font size=2>Unallocated</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><u><font size=2>Total</font></u></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Net sales</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>70,863 </font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>18,560</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>32,929</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>122,352</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Operating income (loss)</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>8,847</font></p> </td>
<td width="7%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,721</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,348</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>(3,041</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=2>)</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>10,875</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Interest income</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>8</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>178</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>187</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Interest expense</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,393</font></p> </td>
<td width="7%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>666</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,059</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Depreciation of property, plant and equipment and amortization of intangibles</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,362</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>858</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>226</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>171</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,617</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Expenditures for long-lived assets, including intangibles</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,700</font></p> </td>
<td width="7%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>252</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>573</font></p> </td>
<td width="5%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>22</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,547</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Total assets</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>59,035</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="0%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>21,640</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="10%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>30,611</font></p> </td>
<td width="5%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>37,356</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>148,642</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>During the three months ended April 30, 2004 and 2003, approximately 36.5% and 50.1%, respectively, of the Company&#146;s net sales resulted from contracts with the U.S. government or prime contractors to the U.S. government. During the nine months ended April 30, 2004 and 2003, approximately 40.3% and 44.9%, respectively, of the Company&#146;s net sales resulted from contracts with the U.S. government and prime contractors to the U.S. government.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>International sales comprised 46.6% and 34.4% of net sales during the three months ended April 30, 2004 and 2003, respectively. International sales comprised 44.5% and 38.3% of net sales during the nine months ended April 30, 2004 and 2003, respectively. International sales include sales to domestic companies for inclusion in products which will be sold to international customers.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>During the three months ended April 30, 2004 and 2003, sales to one customer, a prime contractor, represented 10.9% and 22.1% of net sales, respectively. Sales to the same customer for the nine months ended April 30, 2004 and 2003 were 15.2% and 15.5% of net sales, respectively.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Direct and indirect sales to a North African country, including certain sales to the prime contractor mentioned above, during the three and nine months ended April 30, 2004 represented 15.9% of total net sales in both periods. No foreign country represented 10% or more of net sales in the three and nine months ended April 30, 2003.</font></td></tr></table>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>9</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p>
<PAGE>
<table width="100%" cellspacing=0 cellpadding=0>
  <tr>
    <td width="0%" ></td>
    <td width="4%" nowrap valign="top">
      <p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(10)</font>
    </td>
    <td valign="top">
      <p style=' margin-bottom:0pt; margin-top:8pt;'><u><i><font size=2>Accounting
        for Business Combinations, Goodwill and Other Intangible Assets</font></i></u></p>
    </td>
  </tr>
</table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Intangibles with definite lives arising from acquisitions as of April 30, 2004 and July 31, 2003 are as follows:</font></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="75%" border="0" cellspacing=0 cellpadding=0 style='margin-left:51.85pt; border-collapse:collapse'> <tr >
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="7" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>April 30, 2004</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="4" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>July 31, 2003</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="7" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="4" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="4" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Gross&nbsp;Carrying</font><br> <font size=2>Amount</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Accumulated</font><br> <font size=2>Amortization</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Gross&nbsp;Carrying</font><br> <font size=2>Amount</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=2>Accumulated</font><br> <font size=2>Amortization</font></p> </td>
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="4" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Existing technology</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="13%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>12,266,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="13%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'> <font size=2>5,553,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="15%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'> <font size=2>12,266,000 </font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="15%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'> <font size=2>4,261,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Core technology</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="13%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,315,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="13%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>256,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="15%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,315,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="15%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>146,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Technology license</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="13%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,229,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="13%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>287,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="15%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,229,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="15%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>206,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Trade name</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="13%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>175,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="13%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>34,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="15%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>175,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="15%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>19,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Order backlog</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="13%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>88,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="13%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>88,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="15%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>88,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="15%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>88,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Total</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="13%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>16,073,000 </font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="13%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>6,218,000 </font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="15%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>16,073,000 </font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="15%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>4,720,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The aggregate amortization expense for the nine months ended April 30, 2004 and 2003 was $1,498,000 and $1,540,000, respectively. The estimated amortization expense for the twelve months ending April 30, 2005, 2006, 2007, 2008 and 2009 is $2,012,000, $2,012,000, $2,012,000, $846,000, and $634,000, respectively.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Intangibles with indefinite lives by reporting unit as of April 30, 2004 are as follows:</font></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="75%" border="0" cellspacing=0 cellpadding=0 style='margin-left:51.85pt; border-collapse:collapse'> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Telecommunications transmission</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>7,870,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2.0pt;margin-right:2.25pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=2>RF microwave amplifiers</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>8,422,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Mobile data communications</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="8%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,434,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8;'> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="8%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>17,726,000</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The Company performed its annual required impairment test for goodwill and other intangibles with indefinite lives as of August 1, 2003 and determined that no impairment existed as of such date.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0>
  <tr>
    <td width="0%" ></td>
    <td width="4%" nowrap valign="top">
      <p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(11)</font>
    </td>
    <td valign="top">
      <p style=' margin-bottom:0pt; margin-top:8pt;'><u><i><font size=2>Recent
        Accounting Pronouncement</font></i></u></p>
    </td>
  </tr>
</table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>On March 31, 2004, the Financial Accounting Standards Board issued a proposed statement, &#147;Share-Based Payment - An Amendment to Statement Nos. 123 and 95,&#148; that addresses the accounting for share-based payment transactions in which an enterprise receives employee services in exchange for (a) equity instruments of the enterprise or (b) liabilities that are based on the fair value of the enterprise&#146;s equity instruments or that may be settled by the issuance of such equity instruments. The proposed statement would eliminate the ability to account for share-based compensation transactions using APB Opinion No. 25, &#147;Accounting for Stock Issued to Employees,&#148; and generally would require instead that such
transactions be accounted for using a fair-value-based method. As proposed, this standard would be applied prospectively for fiscal years beginning after December 15, 2004 (the Company&#146;s 2006 fiscal year), as if all share-based compensation awards granted, modified or settled after December 15, 1994 had been accounted for using the fair value based method of accounting.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0>
  <tr>
    <td width="0%" ></td>
    <td width="4%" nowrap valign="top">
      <p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(12)</font>
    </td>
    <td valign="top">
      <p style=' margin-bottom:0pt; margin-top:8pt;'><u><i><font size=2>Subsequent
        Event</font></i></u></p>
    </td>
  </tr>
</table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>In May 2004, the Company acquired certain assets and assumed certain liabilities of Memotec, Inc. (&#147;Memotec&#148;), a subsidiary of Kontron AG, and at the same time, purchased inventory owned by Kontron Canada Inc., which currently manufactures Memotec&#146;s products, for an aggregate purchase price of approximately $5,100,000.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>&nbsp;</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The Memotec business, located in St. Laurent, Quebec, Canada, develops a comprehensive range of multi-service platforms capable of optimizing communication networks. Memotec, which is part of the Company&#146;s telecommunications transmission segment, has annual revenues of approximately $6,000,000. The manufacturing of Memotec&#146;s products will eventually be transferred to our manufacturing facility in Tempe, Arizona.</font></td></tr></table>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>10</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="100%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr >
<td valign=bottom > <p style='margin-top:2.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td valign=bottom > <p style='margin-left:0;margin-bottom:0pt;margin-top:2.0pt; text-align:center;'><u><font SIZE=2><a name=s5>COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES</a></font></u></p> </td>
<td valign=top > <p style='margin-left:0;margin-bottom:0pt;margin-top:2.0pt; text-align:center;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p style='margin-top:2.0pt;margin-left:8.65pt;margin-bottom:.0001pt;text-indent:-8.65pt;'><font SIZE=2>ITEM 2.</font></p> </td>
<td valign=top > <p style='margin-left:0;margin-bottom:0pt;margin-top:2.0pt; text-align:center;'><u><font size=2>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION</font></u><br> <u><font SIZE=2>AND RESULTS OF OPERATIONS</font></u><u></u></p> </td>
<td valign=top > <p style='margin-left:0;margin-bottom:0pt;margin-top:2.0pt; text-align:center;'><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt; margin-top:12pt;'><u><font SIZE=2>OVERVIEW</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>We design, develop, produce and market innovative products, systems and services for advanced communications solutions addressing commercial and government markets. We conduct our business through three complementary segments: telecommunications transmission, mobile data communications and RF microwave amplifiers. We sell our products into markets where we believe we have technological, engineering, systems design or other expertise that differentiate our product offerings. We believe we are leaders in the market segments that we serve.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Our telecommunications transmission segment, our largest business segment, provides specialized products and systems for satellite, over-the-horizon microwave and line-of-sight microwave telecommunications systems. Our mobile data communications segment provides satellite-based mobile location, tracking and messaging services and mobile satellite transceivers primarily for defense applications, including logistics, support and battlefield command and control. Our RF microwave amplifier segment designs, manufactures and markets solid-state, high power, broadband RF microwave amplifier products. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>A substantial portion of our sales may be derived from a limited number of relatively large customer contracts, the timing of revenues from which cannot be predicted. Quarterly sales and operating results may be significantly affected by one or more of such contracts. Accordingly, we can experience significant fluctuations in sales and operating results from quarter to quarter and period-to-period comparisons may not be indicative of future performance.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>We generally recognize income on contracts only when the products are shipped. However, when the performance of a contract will extend beyond a 12-month period, revenue is recognized on the percentage-of-completion method. Profits expected to be realized on contracts are based on total estimated sales value as compared to total estimated costs at completion. These estimates are reviewed and revised periodically throughout the lives of the contracts, and adjustments to profits resulting from such revisions are made cumulative to the date of the change. Estimated losses on long-term contracts-in-progress are recorded in the period in which such losses become known.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Since our contract with the U.S. Army for the Movement Tracking System is for an eight-year period, revenue recognition is based on the percentage-of-completion method. The gross margin is based on the estimated sales and expenses for the entire eight-year contract. The amount of revenue recognized has been limited to the amount of funded orders received from the U.S. Army. The portion of such orders representing prepaid service time revenue is being deferred until the service time is used by the customer. Significant changes in the estimates used to derive the gross profit margin can materially impact our operating results and financial condition in future periods (see Critical Accounting Policies below for more information).</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Our gross profit is affected by a variety of factors, including the mix of products, systems and services sold, production efficiency, price competition and general economic conditions.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Selling, general and administrative expenses consist primarily of salaries and benefits for marketing, sales and administrative employees, advertising and trade show costs, professional fees and other administrative costs.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Our research and development expenses relate to both existing product enhancement and new product development. A portion of our research and development effort is related to specific contracts and is recoverable under those contracts because they are funded by the customers. Such customer-funded expenditures are not included in research and development expenses for financial reporting purposes, but are reflected in cost of sales.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;'><u><font SIZE=2>CRITICAL ACCOUNTING POLICIES</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>We consider the following accounting policies to be critical due to the estimation process involved in each.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Revenue Recognition on Long-Term Contracts.</font></b></i><font size=2> As discussed above, when the performance of a contract will extend beyond a 12-month period, revenue and related costs are recognized on the percentage-of-completion method of accounting. Profits expected to be realized on such contracts are based on total estimated sales for the contract compared to total estimated costs at completion of the contract. These estimates are reviewed and revised periodically throughout the lives of the contracts, and adjustments to profits resulting from such revisions are made cumulative to the date of the change. Estimated losses on long-term contracts are recorded in the period in which the losses become known.</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>11</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Some of our largest contracts, including our contract with the U.S. Army for the Movement Tracking System, are accounted for using the percentage-of-completion method. We have been engaged in the production and delivery of goods and services on a continual basis under contractual arrangements for many years. Historically, we have demonstrated an ability to accurately estimate revenues and expenses relating to our long-term contracts. However, there exist inherent risks and uncertainties in estimating revenues and expenses, particularly on larger or longer-term contracts. If we do not accurately estimate the total sales and related costs on such contracts, the estimated gross margins may be significantly impacted or losses may need to be recognized in future periods. Any such resulting changes in margins or contract losses could be material to our results of operations and financial position.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>In addition, most government contracts have termination for convenience clauses that provide the customer with the right to terminate the contract at any time. Such terminations could impact the assumptions regarding total contract revenues and expenses utilized in recognizing profit under the percentage-of-completion method of accounting. Changes to these assumptions could materially impact our results of operations and financial position. Historically, we have not experienced material terminations of our long-term contracts.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>We also address customer acceptance provisions in assessing our ability to perform our contractual obligations under long-term contracts. Our inability to perform on our long-term contracts could materially impact our results of operations and financial position. Historically, we have been able to perform on our long-term contracts.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Impairment of Intangible Assets</font></b></i><b><font size=2>. </font></b><font size=2>As of April 30, 2004, our company&#146;s intangible assets, including goodwill, aggregated $27.6 million. In assessing the recoverability of goodwill and other intangibles, we must make various assumptions regarding estimated future cash flows and other factors in determining the fair values of the respective assets. If these estimates or their related assumptions change in the future, we may be required to record impairment charges for these assets in future periods. Any such resulting impairment charges could be material to our results of operations.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Provisions for Excess and Obsolete Inventory. </font></b></i><font size=2>We regularly review inventory quantities on hand and record a provision for excess and obsolete inventory based on historical and future usage trends. Several factors may influence the sale and use of our inventories, including decisions to exit a product line, technological change and new product development. These factors could result in a change in the amount of excess and obsolete inventory on hand. Additionally, our estimates of future product demand may prove to be inaccurate, in which case we may have understated or overstated the provision required for excess and obsolete inventory. In the future, if we determine that our inventory was overvalued, we would be required to recognize such costs in our financial statements at the time of such determination. Any such charges could be material to our results of operations and financial position. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Allowance for Doubtful Accounts. </font></b></i><font size=2>We perform ongoing credit evaluations of our customers and adjust credit limits based upon customer payment history and current creditworthiness, as determined by our review of our customers&#146; current credit information. Generally, we will require cash in advance or payment secured by irrevocable letters of credit before an order is accepted from an international customer that we do not do business with regularly. In addition, we seek to obtain insurance for certain international customers that we have determined could be a credit risk. However, we are not able to obtain irrevocable letters of credit or credit insurance in all instances. We continuously monitor collections and payments from our customers and maintain an allowance for doubtful accounts based upon our historical experience and any specific customer collection issues that we have identified.
While such credit losses have historically been within our expectations and the allowances established, we cannot guarantee that we will continue to experience the same credit loss rates that we have in the past. Measurement of such losses requires consideration of historical loss experience, including the need to adjust for current conditions, and judgments about the probable effects of relevant observable data, including present economic conditions such as delinquency rates and financial health of specific customers. Changes to the estimated allowance for doubtful accounts could be material to our results of operations and financial position.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;'><u><font SIZE=2>COMPARISON OF THE RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED APRIL 30, 2004 AND APRIL 30, 2003</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Net Sales. </font></b></i><font size=2>Consolidated net sales were $51.2 million and $48.8 million for the three months ended April 30, 2004 and 2003, respectively, representing an increase of $2.4 million, or 4.9%. The increase was driven by significant growth in our telecommunications transmission segment partially offset by decreased sales in our mobile data communications and RF microwave amplifier segments, as described below.</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>12</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Sales from our telecommunications transmission segment were $34.8 million for the three months ended April 30, 2004, as compared to sales of $26.8 million for the three months ended April 30, 2003, an increase of $8.0 million, or 29.9%. The sales growth in this segment resulted primarily from (i) strong sales of our satellite earth station products and (ii) incremental over-the-horizon microwave systems sales relating to two large contract awards received in fiscal 2003, including the impact of the cumulative gross margin adjustments discussed below under &#147;</font><i><font size=2>Gross Profit</font></i><font size=2>.&#148; Our telecommunications transmission segment represented 67.8% of total net sales for the three months ended April 30, 2004, as compared to 54.9% for the prior year period. We continue to expect that the timing of our performance on large contracts in our over-the-horizon microwave systems product line
can cause sales to fluctuate significantly from quarter-to-quarter. In addition, as most of our satellite earth station products are booked and shipped in the same quarter, fluctuations in market demand and the receipt of orders from our customers can cause sales of these products to fluctuate significantly from quarter-to-quarter.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Mobile data communications segment sales decreased $4.6 million, or 28.2%, from $16.3 million for the three months ended April 30, 2003 to $11.7 million for the three months ended April 30, 2004. The sales decrease in this segment was primarily the result of (i) lower sales of our Movement Tracking System to the U.S. Army and (ii) lower sales relating to a battle command application for the U.S. Army. Since most of our current activity in this segment relates to the U.S. Army, funding levels and the timing of the receipt of orders can significantly impact our sales from quarter-to-quarter. Quarterly net sales in this segment were expected, and are still expected, to be lower during the second half of fiscal 2004 as compared to the first half of fiscal 2004 due to the timing of orders received to date in fiscal 2004. Our mobile data communications segment represented 22.9% of total net sales for the three months ended April
30, 2004 as compared to 33.4% for the three months ended April 30, 2003.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Sales from our RF microwave amplifier segment were $4.7 million for the three months ended April 30, 2004 compared to $5.7 million for the three months ended April 30, 2003, representing a decrease of $1.0 million, or 17.5%. The decrease was the result of continued softness in certain commercial product lines, including our commercial aviation product line. Our RF microwave amplifier segment represented 9.3% of total net sales for the three months ended April 30, 2004 as compared to 11.7% for the three months ended April 30, 2003. Although we continue to be impacted by continued softness in certain commercial product lines, we have recently experienced an increase in demand for our amplifiers that are used in defense-related applications. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>International sales (including sales to domestic companies for inclusion in products which are sold to international customers) represented 46.6% and 34.4% of total net sales for the three months ended April 30, 2004 and 2003, respectively. Domestic commercial sales represented 16.9% and 15.5% of total net sales for the three months ended April 30, 2004 and 2003, respectively. Sales to the U.S. government (including sales to prime contractors to the U.S. government) represented 36.5% and 50.1% of total net sales for the three months ended April 30, 2004 and 2003, respectively.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>During the three months ended April 30, 2004 and 2003, sales to one customer, a prime contractor, represented 10.9% and 22.1% of total net sales, respectively. Direct and indirect sales to a North African country, including certain sales to the prime contractor mentioned above, during the three months ended April 30, 2004 represented 15.9% of total net sales. No foreign country represented 10% or more of total net sales in the three months ended April 30, 2003. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Gross Profit.</font></b></i><font size=2>
  Gross profit was $20.6 million and $16.5 million for the three months ended
  April 30, 2004 and 2003, respectively, representing an increase of $4.1 million,
  or 24.8%. The increase in gross profit was due primarily to the higher proportion
  of our sales being in the telecommunications transmission segment, which typically
  realize higher margins than sales in our other two segments, as well as increased
  operating efficiencies and overhead absorption resulting from the increase in
  this segment&#146;s sales. The margins in the telecommunications transmission
  segment were favorably impacted during the three months ended April 30, 2004
  by adjustments to the estimated gross margins due to lower than anticipated
  costs on two large over-the-horizon microwave system contracts as they draw
  nearer to completion. These adjustments resulted from our periodic review of
  total estimated sales and costs on long-term contracts, as discussed above under
  &#147;Critical Accounting Policies-Revenue Recognition on Long-term Contracts.&#148;
  These adjustments resulted in a cumulative increase to the gross margins recognized
  on such contracts of $1.8 million, which was recorded in the three months ended
  April 30, 2004. Further adjustments to the estimated gross margins are possible
  in future periods as these contracts are completed. <font size=2>Included in
  cost of sales for the three months ended April 30, 2004 and 2003, respectively,
  are provisions for excess and obsolete inventory of $0.1 million and $0.9 million.
  As discussed above under &#147;Critical Accounting Policies &#150; Provisions
  for Excess and Obsolete Inventory,&#148; we regularly review our inventory and
  record a provision for excess and obsolete inventory based on historical and
  future usage assumptions.</font></font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Gross margin, as a percentage of net sales, was 40.2% for the three months ended April 30, 2004, as compared to 33.8% for the three months ended April 30, 2003 primarily for the reasons discussed in the preceding paragraph.</font></p>
<br><p style='margin-bottom:0pt;text-align:center'><font size=2>13</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Selling, General and Administrative Expenses. </font></b></i><font size=2>Selling, general and administrative expenses were $8.8 million and $7.3 million for the three months ended April 30, 2004 and 2003, respectively, representing an increase of $1.5 million, or 20.5%. The increase was due to higher expenses relating to the increase in sales and profitability during the fiscal 2004 period, as well as compliance costs in connection with recently enacted corporate governance regulations and higher insurance costs. As a percentage of net sales, selling, general and administrative expenses were 17.2% and 15.0% for the three months ended April 30, 2004 and 2003, respectively.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Research and
  Development Expenses. </font></b></i><font size=2>Research and development expenses
  were $4.0 million and $3.0 million for the three months ended April 30, 2004
  and 2003, respectively. Approximately $3.6 million and $2.8 million of such
  amounts, respectively, related to our telecommunications transmission segment.
  As an investment for the future, we are continually enhancing our existing products
  and developing new products and technologies. Whenever possible, we seek customer
  funding for research and development to adapt our products to specialized customer
  requirements. During the three months ended April 30, 2004 and 2003, customers
  reimbursed us $1.4 million and $1.5 million, respectively, which amounts are
  not reflected in the reported research and development expenses, but are included
  in sales with the related costs included in cost of sales.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Amortization of Intangibles. </font></b></i><font size=2>Amortization of intangibles of $0.5 million in both periods represents the amortization of intangibles with definite lives which we acquired in connection with various acquisitions.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Operating Income. </font></b></i><font size=2>Operating income for the three months ended April 30, 2004 and 2003, respectively, was $7.3 million and $5.7 million. The $1.6 million, or 28.1%, increase was the result of the higher sales and gross profit, discussed above, partially offset by higher operating expenses.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Operating income in our telecommunications transmission segment increased to $7.8 million for the three months ended April 30, 2004 from $4.3 million for the three months ended April 30, 2003 as a result of significantly higher sales combined with the related increased operating efficiencies and overhead absorption, as well as the impact of the gross margin adjustments, approximately $1.6 million net of related operating expenses, on two large over-the-horizon microwave system contracts discussed above. Our mobile data communications segment generated operating income of $1.0 million for the three months ended April 30, 2004 compared to $2.1 million for the three months ended April 30, 2003, a $1.1 million decrease due primarily to the decrease in sales and a change in product mix. Operating income in our RF microwave amplifier segment decreased to $0.1 million for the three months ended April 30, 2004 from $0.4 million for
the three months ended April 30, 2003 as a result of the decrease in sales. Unallocated expenses increased to $1.6 million for the three months ended April 30, 2004 from $1.1 million for the three months ended April 30, 2003 due primarily to higher incentive compensation expense, increased costs associated with recent corporate governance regulations and higher insurance costs.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Interest Expense. </font></b></i><font size=2>Interest expense for the three months ended April 30, 2004 was $0.7 million, which primarily represented interest expense associated with our 2% convertible senior notes issued in January 2004. Interest expense for the three months ended April 30, 2003 was also $0.7 million, which related primarily to our long-term debt that we repaid in full in the fourth quarter of fiscal 2003.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Interest Income. </font></b></i><font size=2>Interest income for the three months ended April 30, 2004 was $0.3 million, as compared to $0.1 million for the three months ended April 30, 2003. The $0.2 million increase was due primarily to a higher average cash position resulting from our private placement of common stock in July 2003 and issuance of our 2% convertible senior notes in January 2004.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Provision for Income Taxes. </font></b></i><font size=2>The provision for income taxes was $2.2 million and $1.6 million for the three months ended April 30, 2004 and 2003, respectively. The effective tax rate was 32.0% in both periods.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;'><u><font SIZE=2>COMPARISON OF THE RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED APRIL 30, 2004 AND APRIL 30, 2003</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Net Sales. </font></b></i><font size=2>Consolidated net sales were $164.3 million and $122.4 million for the nine months ended April 30, 2004 and 2003, respectively, representing an increase of $41.9 million, or 34.2%. The increase was driven by significant growth in our telecommunications transmission and mobile data communications segments, as described below.</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>14</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Sales from our telecommunications transmission segment were $103.5 million for the nine months ended April 30, 2004, as compared to sales of $70.9 million for the nine months ended April 30, 2003, an increase of $32.6 million, or 46.0%. The significant sales growth in this segment resulted primarily from (i) incremental sales of our over-the-horizon microwave systems relating to two large contract awards received in fiscal 2003, including the impact of the cumulative gross margin adjustments discussed in the comparison of the three months&#146; results, and (ii) strong sales of our satellite earth station products. Our telecommunications transmission segment represented 63.0% of total net sales for the nine months ended April 30, 2004 as compared to 57.9% for the prior year period. We continue to expect that the timing of our performance on large contracts in our over-the-horizon microwave systems product line can cause sales
to fluctuate significantly from quarter-to-quarter. In addition, as most of our satellite earth station products are booked and shipped in the same quarter, fluctuations in market demand and the receipt of orders from our customers can cause sales of these products to fluctuate significantly from quarter-to-quarter.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Mobile data communications segment sales increased $13.5 million, or 41.0%, from $32.9 million for the nine months ended April 30, 2003 to $46.4 million for the nine months ended April 30, 2004. The significant sales growth in this segment was primarily the result of (i) higher sales of our Movement Tracking System to the U.S. Army and (ii) higher sales relating to a battle command application for the U.S. Army. Since most of our current activity in this segment relates to the U.S. Army, funding levels and the timing of the receipt of orders can significantly impact our sales from quarter-to-quarter. Quarterly net sales in this segment were expected, and are still expected, to be lower during the second half of fiscal 2004 as compared to the first half of fiscal 2004 due to the timing of orders received to date in fiscal 2004. Our mobile data communications segment represented 28.2% of total net sales for the nine months
ended April 30, 2004 as compared to 26.9% for the nine months ended April 30, 2003.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Sales from our RF microwave amplifier segment were $14.4 million for the nine months ended April 30, 2004 compared to $18.6 million for the nine months ended April 30, 2003, representing a decrease of $4.2 million, or 22.6%. The decrease was the result of continued softness in certain commercial product lines, including our commercial aviation product line. Our RF microwave amplifier segment represented 8.8% of total net sales for the nine months ended April 30, 2004 as compared to 15.2% for the nine months ended April 30, 2003. Although we continue to be impacted by continued softness in certain commercial product lines, we have recently experienced an increase in demand for our amplifiers that are used in defense-related applications.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>International sales
  (including sales to domestic companies for inclusion in products which are sold
  to international customers) represented 44.5% and 38.3% of total net sales for
  the nine months ended April 30, 2004 and 2003, respectively. Domestic commercial
  sales represented 15.2% and 16.8% of total net sales for the nine months ended
  April 30, 2004 and 2003, respectively. Sales to the U.S. government (including
  sales to prime contractors to the U.S. government) represented 40.3% and 44.9%
  of total net sales for the three months ended April 30, 2004 and 2003, respectively.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>During the nine months ended April 30, 2004 and 2003, sales to one customer, a prime contractor, represented 15.2% and 15.5% of total net sales, respectively. Direct and indirect sales to a North African country, including certain sales to the prime contractor mentioned above, during the nine months ended April 30, 2004 represented 15.9% of total net sales. No foreign country represented 10% or more of total net sales in the nine months ended April 30, 2003. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Gross Profit.
  </font></b></i><font size=2>Gross profit was $62.2 million and $41.7 million
  for the nine months ended April 30, 2004 and 2003, respectively, representing
  an increase of $20.5 million, or 49.2%. The increase was primarily due to the
  higher total sales and associated increased operating efficiencies and overhead
  absorption, the greater proportion of higher margin telecommunications transmission
  segment sales and the impact of the gross margin adjustments on two large over-the-horizon
  microwave system contracts discussed in the comparison of the three months&#146;
  results. <font size=2>Included in cost of sales for the nine months ended April 30, 2004 and 2003, respectively, are provisions for excess and obsolete inventory of $1.0 million and $1.7 million. As discussed above under &#147;Critical Accounting Policies &#150; Provisions for Excess and Obsolete Inventory,&#148; we regularly review our inventory and record a provision for excess and obsolete inventory based on historical and future usage assumptions.</font></font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Gross margin, as a percentage of net sales, was 37.9% for the nine months ended April 30, 2004, as compared to 34.1% for the nine months ended April 30, 2003, primarily for the reasons discussed in the preceding paragraph.</font></p>

<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Selling, General and Administrative Expenses. </font></b></i><font size=2>Selling, general and administrative expenses were $26.2 million and $20.0 million for the nine months ended April 30, 2004 and 2003, respectively, representing an increase of $6.2 million, or 31.0%. The increase was due to higher expenses relating to the significant increase in sales and profitability during the fiscal 2004 period, as well as compliance costs in connection with recently enacted corporate governance regulations and </font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>15</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>higher insurance costs. As a percentage of net sales, selling, general and administrative expenses were 15.9% and 16.3% for the nine months ended April 30, 2004 and 2003, respectively.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Research and
  Development Expenses. </font></b></i><font size=2>Research and development expenses
  were $11.2 million and $9.3 million for the nine months ended April 30, 2004
  and 2003, respectively. Approximately $10.3 million and $8.4 million of such
  amounts, respectively, related to our telecommunications transmission segment.
  As an investment for the future, we are continually enhancing our existing products
  and developing new products and technologies. Whenever possible, we seek customer
  funding for research and development to adapt our products to specialized customer
  requirements. During the nine months ended April 30, 2004 and 2003, customers
  reimbursed us $3.8 million and $2.7 million, respectively, which amounts are
  not reflected in the reported research and development expenses, but are included
  in sales with the related costs included in cost of sales.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Amortization of Intangibles. </font></b></i><font size=2>Amortization of intangibles for the nine months ended April 30, 2004 and 2003 was $1.5 million. The amortization relates to intangibles with definite lives which we acquired in connection with various acquisitions.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Operating Income. </font></b></i><font size=2>Operating income for the nine months ended April 30, 2004 and 2003, respectively, was $23.4 million and $10.9 million. The $12.5 million increase was the result of the higher sales and gross profit, discussed above, partially offset by higher operating expenses.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Operating income in our telecommunications transmission segment increased to $21.6 million for the nine months ended April 30, 2004 from $8.8 million for the nine months ended April 30, 2003 as a result of significantly higher sales combined with the related increased operating efficiencies and overhead absorption, as well as the impact of the gross margin adjustments on two large over-the-horizon microwave system contracts discussed above. Our mobile data communications segment generated operating income of $6.1 million for the nine months ended April 30, 2004 compared to $3.3 million for the nine months ended April 30, 2003 due primarily to the increase in sales and more favorable product mix. Operating income in our RF microwave amplifier segment decreased to $0.6 million for the nine months ended April 30, 2004 from $1.7 million for the nine months ended April 30, 2003 as a result of the decrease in sales. Unallocated
expenses increased to $5.0 million for the nine months ended April 30, 2004 from $3.0 million for the nine months ended April 30, 2003 due primarily to higher incentive compensation expense, increased costs associated with recent corporate governance regulations and higher insurance costs.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Interest Expense. </font></b></i><font size=2>Interest expense decreased from $2.1 million for the nine months ended April 30, 2003 to $0.8 million for the nine months ended April 30, 2004. The decrease was due to the prepayment of our long-term debt in July 2003. Interest expense for the nine months ended April 30, 2004 primarily represents interest expense associated with our 2% convertible senior notes issued in January 2004.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Interest Income. </font></b></i><font size=2>Interest income for the nine months ended April 30, 2004 was $0.5 million, as compared to $0.2 million for the nine months ended April 30, 2003. The $0.3 million increase was due primarily to a higher average cash position resulting from our private placement of common stock in July 2003 and issuance of our 2% convertible senior notes in January 2004.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><i><b><font size=2>Provision for Income Taxes. </font></b></i><font size=2>The provision for income taxes was $7.4 million and $2.9 million for the nine months ended April 30, 2004 and 2003, respectively, as a result of the significant increase in pre-tax profit. The effective tax rate was 32.0% in both periods.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;'><u><font SIZE=2>LIQUIDITY AND CAPITAL RESOURCES</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Our cash and cash equivalents increased to $152.8 million at April 30, 2004 from $48.6 million at July 31, 2003. </font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Net cash provided
  by operating activities was $6.3 million for the nine months ended April 30,
  2004. Such amount reflects (i) net income of $15.7 million plus the impact of
  depreciation, amortization, the provisions for doubtful accounts and inventory
  reserves, and the income tax benefit from stock-related transactions aggregating
  $7.0 million and (ii) changes in working capital balances, most notably increases
  in accounts receivable of $22.0 million and inventory of $3.5 million. Also
  impacting net cash provided by operating activities were increases in accrued
  expenses, customer advances and deposits and deferred service revenue aggregating
  $9.7 million. The increase in billed receivables is the result of the increase
  in sales during the nine months ended April 30, 2004 and the timing of related
  cash receipts. The increase in unbilled receivables reflects additional work
  performed on our long-term contracts, including a large contract with a North
  African country for which we have recently obtained credit insurance covering
  a significant portion of the credit risk associated with this contract.</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>16</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Net cash used in investing activities for the nine months ended April 30, 2004 was $4.3 million, representing capital expenditures.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>During the third quarter of fiscal 2004, as a result of recent growth in our mobile data communications segment, we entered into a new lease agreement for approximately 32,000 square feet of office space located near our current facility in Germantown, Maryland. It is our intention to move to this new facility by December 31, 2004. As part of this relocation, we will build a state-of-the-art network operations center in the new facility. We also anticipate implementing a company-wide information reporting system. In connection with these activities, we expect to incur total capital expenditures of approximately $3.0 million, a substantial portion of which we believe will be incurred in the fourth quarter of fiscal 2004 and first quarter of fiscal 2005.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Net cash provided by financing activities was $102.2 million, due primarily to the net proceeds of $101.2 million from the sale of our 2% convertible senior notes in January 2004, as well as the proceeds from stock option exercises and employee stock purchase plan shares aggregating $1.8 million. These amounts were partially offset by principal payments on capital lease obligations of $0.8 million.</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;'><u><font SIZE=2>FINANCING ARRANGEMENT</font></u></p>
<p style=' margin-bottom:0pt;text-align:justify; margin-top:8pt;'><font size=2>On January 27, 2004, we issued $105.0 million of our 2% convertible senior notes in a private offering pursuant to Rule 144A of the Securities Act of 1933, as amended. The net proceeds from this transaction were $101.2 million after deducting the initial purchaser&#146;s discount and other transaction costs. For further information concerning this financing, see &#147;Notes to Consolidated Financial Statements &#150; Note (6) </font><i><font size=2>2.0% Convertible Senior Notes due 2024</font></i><font size=2>.&#148;</font></p>
<p style=' margin-bottom:0pt; margin-top:12pt;'><u><font SIZE=2>COMMITMENTS</font></u></p>
<p style=' margin-bottom:0pt;text-align:justify; margin-top:8pt;'><font size=2>In the normal course of business, we routinely enter into binding and non-binding purchase obligations primarily covering anticipated purchases of inventory and equipment, and from time to time, technology licenses. We do not expect that these commitments as of April 30, 2004 will materially adversely affect our liquidity.</font></p>
<p style=' margin-bottom:0pt;text-align:justify; margin-top:8pt;'><font size=2>At April 30, 2004, we had contractual cash obligations to repay our 2% convertible senior notes, capital lease and operating lease obligations. Payments due under these long-term obligations are as follows:</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="100%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr >
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="43%" colspan="10" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Obligations due by fiscal year (in thousands)</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="10" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;' ><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Total</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>Remainder</font><br> <font size=2>of </font><br> <font size=2>2004</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2005</font><br> <font size=2>and</font><br> <font size=2>2006</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>2007</font><br> <font size=2>and</font><br> <font size=2>2008</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:center;margin-top:2pt;margin-bottom:0pt;'><font size=2>After</font><br> <font size=2>2008</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td colspan="2" valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>2% convertible senior notes</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>105,000</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>105,000</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Capital lease obligations</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>537</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>144</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>364</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>29</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>&#151;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Operating lease commitments</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>15,359</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,433</font></p> </td>
<td width="1%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>7,797</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom style='background:#EAF9E8; '> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,296</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom style='background:#EAF9E8;'> <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>1,833</font></p> </td>
<td width="2%" valign=bottom style='background:#EAF9E8; '> <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Total contractual cash obligations</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;'><font size=2>$</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>120,896</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="9%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>3,577</font></p> </td>
<td width="1%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>8,161</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="4%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>2,325</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td>
<td width="7%" valign=bottom > <p style='text-align:right;margin-top:2pt;margin-bottom:0pt;'><font size=2>106,833</font></p> </td>
<td width="2%" valign=bottom > <p ><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="3"> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td> </tr> </table>
<br>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>We have entered into standby letter of credit agreements with financial institutions relating to the guarantee of our future performance on certain contracts. At April 30, 2004, the balance of these agreements was $4.2 million. Cash we have pledged against such agreements aggregating $4.2 million has been classified as restricted cash in the consolidated balance sheet.</font></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>We believe that our cash and cash equivalents will be sufficient to meet our operating cash requirements for at least the foreseeable future. In the event that we identify a significant acquisition that requires additional cash, we would seek to borrow funds or raise additional equity capital.</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>17</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt; margin-top:12pt;'><u><font SIZE=2>FORWARD-LOOKING STATEMENTS</font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>Certain information in this Quarterly Report on Form 10-Q contains forward-looking statements, including but not limited to, information relating to the future performance and financial condition of the Company, the plans and objectives of the Company&#146;s management and the Company&#146;s assumptions regarding such performance and plans that are forward-looking in nature and involve certain significant risks and uncertainties. Actual results could differ materially from such forward-looking information. The Company&#146;s filings with the Securities and Exchange Commission identify many of such risks and uncertainties, which include the following: </font></p>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Our operating results being difficult to forecast and subject to volatility;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Our inability to maintain our government business;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Our inability to keep pace with technological changes;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Our dependence on international sales;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The impact of a continued domestic and foreign economic slow-down and reduction in telecommunications equipment and systems spending on the demand for our products, systems and services;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Our mobile data communications business being in an early stage;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Our backlog being subject to cancellation or modification;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Our dependence on component availability, subcontractor availability and performance by key suppliers; </font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Our fixed price contracts being subject to risk;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The impact of adverse regulatory changes on our ability to sell products, systems and services;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The impact of prevailing economic and political conditions on our businesses;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Whether we can successfully integrate and assimilate the operations of acquired businesses;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The impact of the loss of key technical or management personnel;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The highly competitive nature of our markets;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Our inability to protect our proprietary technology;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Our operations being subject to environmental regulation;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The impact of recently enacted and proposed changes in securities laws and regulations on our costs;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The impact of terrorist attacks and threats, and government responses thereto, and threats of war on our businesses; and</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2><b><font size=2>&#149;</font></b></font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Our inability to satisfy our debt obligations, including the recently issued convertible senior notes.</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="8.33%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:12pt;'><a name="s6"></a><font SIZE=2>I</font><u><font size=2></font></u><font size=2>tem 3.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:12pt;'><u><font size=2>Quantitative and Qualitative Disclosures about Market Risk</font></u></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>The Company&#146;s earnings and cash flows are subject to fluctuations due to changes in interest rates primarily from its investment of available cash balances. Under its current policies, the Company does not use interest rate derivative instruments to manage exposure to interest rate changes. If the interest rate the Company receives on its investment of available cash balances were to change by 10%, the effect would be immaterial.</font></p>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="8.33%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:12pt;'><a name="s7"></a><font SIZE=2>I</font><u><font size=2></font></u><font size=2>tem 4.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:12pt;'><u><font size=2>Controls and Procedures</font></u></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>As of the end of the period covered by this Quarterly Report on Form 10-Q, an evaluation of the effectiveness of the design and operation of the Company&#146;s disclosure controls and procedures was carried out by the Company under the supervision and with the participation of the Company&#146;s management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company&#146;s disclosure controls and procedures have been designed and are being operated in a manner that provides reasonable assurance that the information required to be disclosed by the Company in reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC&#146;s rules and forms. A system of controls, no matter how well designed and operated, cannot
provide absolute assurance that the objectives of the system of controls are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. There have been no changes in the Company&#146;s internal controls over financial reporting that occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company&#146;s internal controls over financial reporting.</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>18</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><u><font SIZE=2>PART II</font></u><br><u><font SIZE=2>OTHER INFORMATION</font></u></p>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="8.33%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:12pt;'><a name="s8"></a><font SIZE=2>I</font><u><font size=2></font></u><font size=2>tem 6.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:12pt;'><u><font size=2>Exhibits and Reports on Form 8-K</font></u></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="100%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '> <tr >
<td width="4%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>(a)</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Exhibits</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="4%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="4%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Exhibit 31.1 - Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="4%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="4%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Exhibit 31.2 - Certifications Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="4%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="4%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>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</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="4%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="4%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>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</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="4%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="4%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>(b)</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Reports on Form 8-K</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="4%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="4%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Form 8-K, dated March 10, 2004 - Item 7 - Press release announcing the Company&#146;s results of operations for the second quarter of fiscal year 2004.</font></p> </td> </tr> <tr  style='height:.05in'>
<td width="4%" valign=top style=' height:.05in'> <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top style=' height:.05in'> <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=1>&nbsp;</font></p> </td> </tr> <tr >
<td width="4%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td valign=top > <p style='margin-top:0pt;margin-bottom:0pt;margin-left:8.65pt;text-indent:-8.65pt;'><font size=2>Form 8-K, dated April 19, 2004 - Item 5 - Press release announcing agreement to acquire Memotec, Inc.</font></p> </td> </tr> </table>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>19</font></p><br><HR noshade align="center" width="100%" size="2"><p style='page-break-before:always'></p><PAGE>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><u><font size=2><a name="s9">SIGNATURES</a></font></u></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>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 thereunto duly authorized.</font></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><u><font SIZE=2>COMTECH TELECOMMUNICATIONS CORP.</font></u><br><font size=2>(Registrant)</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="100%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '>
  <tr >
<td width="29%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>Date: June 8, 2004</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>&nbsp;By:&nbsp;&nbsp;</font></p> </td>
<td width="27%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>/s/ Fred Kornberg</font></p> </td> </tr> <tr >
<td width="29%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td> </tr> <tr >
<td width="29%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
    <td width="27%" valign=top nowrap >
      <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>Fred Kornberg</font><br> <font size=2>Chairman of the Board</font><br>
        <font size=2>Chief&nbsp;Executive&nbsp;Officer&nbsp;and&nbsp;President</font><br>
         <font size=2>(Principal Executive Officer)</font></p> </td> </tr> </table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="100%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '>
  <tr >
<td width="29%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>Date: June 8, 2004</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>&nbsp;By:&nbsp;&nbsp;</font></p> </td>
<td width="27%" valign=bottom > <p style='margin-top:2pt;margin-bottom:0pt;' ><br> <font size=2>/s/ Robert G. Rouse</font></p> </td> </tr> <tr >
<td width="29%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td> </tr> <tr >
<td width="29%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="2%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
    <td width="27%" valign=top nowrap >
      <p style='margin-top:2pt;margin-bottom:0pt;' ><font size=2>Robert G. Rouse</font><br>
         <font size=2>Senior Vice President and</font><br> <font size=2>Chief Financial Officer</font><br> <font size=2>(Principal&nbsp;Financial&nbsp;and&nbsp;Accounting&nbsp;Officer)</font></p> </td> </tr> </table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>20</font></p>
</BODY>
</HTML>

































































</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>image002.jpg
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 image002.jpg
M_]C_X``02D9)1@`!`0$`8`!@``#__@`<4V]F='=A<F4Z($UI8W)O<V]F="!/
M9F9I8V7_VP!#``H'!P@'!@H("`@+"@H+#A@0#@T-#AT5%A$8(Q\E)"(?(B$F
M*S<O)BDT*2$B,$$Q-#D[/CX^)2Y$24,\2#<]/CO_VP!#`0H+"PX-#AP0$!P[
M*"(H.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[.SL[
M.SL[.SL[.SO_P``1"``]`0`#`2(``A$!`Q$!_\0`'````@,!`0$!````````
M``````@%!@<$`0,"_\0`01```0,#`@,$"`,$"`<``````0(#!``%$082!R$Q
M$Q1!42)487&!D9*A(S*Q%4)BH@@60U)R@K+")#-35I7!P__$`!@!`0$!`0$`
M```````````````$`P4"_\0`'1$!``,!``,!`0````````````$"`Q$$$B%!
M,?_=``0`*/_:``P#`0`"$0,1`#\`V:BBHV_7^W:;M;EQN;X:91R`ZJ6KP2D>
M)H)&JI?N)NE-/K4U(N29#Z>K,4=HH'R)'(?$UBVL^*=ZU4XY&CN+M]M/(1VE
M84L?QJ'7W=/UJKV>PW6_R^ZVJ"]+=\=B>2?:3T'QH-=F_P!("*E1$&P.N)\%
M//A&?@`?UKE:_I!/;_QM.HV_P2CG[IJ*@<"[X\@*N%S@PE'^SW%Q0^6!]Z^U
MPX"WQADN0+I$EJ`SV:@6R?<>8^>*"[V+C1I>[.I9EEZV.JY`R`"WG_$.GQQ5
M_;=;>:2ZTM+C:QE*DG(4/,&E`N=KG6:>Y!N,5R-(;/I-K&#[_:/;5TX9\196
ME[DU;I[ZG+.^K:I*CGNY/[Z?(>8^/6@8ZBO$J"DA22"",@CQKV@****`HHHH
M"BBB@****`HHHH"BBB@****`HHHH"BBB@****`HHHH/F^^U&CN2'UI;::25K
M6HX"4@9)-*_K_6DG65^7(W*1!9)1%9/[J?[Q']X]3\O"MCXTWARV:%7'95M7
M/>2P2.NS!4K],?&EV:;6\ZAIM)4M:@E('B3TH+7H+0KVKICC\AQ4:U1/2DR,
M<SX[4^W]/D#IK%Q=C);M6FH#ENA(.$AE!W.?Q+);//XU*7:Q)TQPZB66$VI0
M2I/>%(23O."I2CA*N61XCRJN6J[1([6U^$`O.T*#2.8]OX)JWQ\HFOOSKG^3
MM,7].\ATS8+D5A3C\5*G3S"EI22?AV/.N>!?;[:%M=G*<#0YAEQ)V*'NV?I7
M=>+<_/4TN*AII*4G/H=?DR*K"R^A:D*!!2<'\/'_`,ZLI$6K]17F:6[#0+EI
MRP\4+;%D3^UC2HQ(*HRTA8!Z@[DG*<\QD5$+X#Z6;0I:[G=$I2,J476@`//\
ME=VAXZX]R:=2IT)?:(6E6`.F>FP'J*X^.&HWK7IR/:8RRA=R6H.J!Y]FG&1\
M21\`:Y>U(I?D.OA>;T[/]5^^<67K:PQIO1O:2Q&0F.F?(2'''<<AL2!@^\CG
MY>-1AT_Q>NS??''+F,^D$KFI:/P1N&/E5OX+:/B0K"C4<EI+DV85=BI0SV38
M)'+R)P>?EBM2K)L7:U<2=9Z,N_<KX9$IML@.Q9N=^/-*SS]W45>N)NN5(T%;
M+EI^>ZPJY/I*'&U;5A`22H<NA!P#7+Q]A1#8;;/*4B8F5V258YELI43\B!\Z
MQZ9<WG[!;;:M1+<5;SB`?#>4Y_T_>@O'#37-_DZ\M\2YWF7*C2"MM3;SI4G)
M2=O(^W%,%2OSK>K1FJK!)P4GL(DP^\X*ON#6W<3-8ITII92X[@[_`#06HH!Y
MCES7\`?F109UQ1XE7)6I3;;!<GHL>#EMQQA93VKG[W,>`Z>_-<EAG\0[_I:3
M(M5PN4QXS4-[TR,%M*4**ADD=2M'TU4KK8UVK3-MGRP>]W9:WD)5U2RG`!/^
M(J)]P%;MPEA)M7#:(^X-O;ER2LGR).#]*108P[JC7K-W-H<O=S$X.ADLB02=
M^<;>N.M3TN;Q&TW99\Z^W"Y1PXA#$8N2<_B%8)(P3^ZE7SJ.T"VK4G%N/+<&
MX*E.3%^S&5#[XJW_`-("XX9L]K2K\RG'UCW82G]54%3LLOBAJ&&J9:9]UE,)
M66RM,G`W``D<R/,59=-.ZZL%Y1=M:3[A&LL5"UO%^0%)6=I"4[03DDD<JB-%
M<6F-'Z;:M`L2I*D+6M;PE;-Y4?+8?#`Z^%<G$_6TK5;]LB)85%83'0^J/OW?
MB.#().!GT2G'+Q-!*W;BGJW5US-NTG$>C-'\J64;WE#S4KHGX=/.N*5I+BQ&
M:,]QVYK4!N(;N&]8_P`H5D_"MAT/I*'I'3S$1EM/>G$!<I['I.+QSY^0Z`59
M*#"="\7[K"NC5KU,Z9,5Q?9]X<&'6%9QZ7F,]<\Q]JYW]7:AO7%<VV#>IC4)
MRYAE+33Q">S2K!P/:`3\:UN_Z>TTU!N%XFV2`ZZVRM]QQQA)*B$D\SCGTI<-
M*ZB_JUJ5B]&(F6MC<4MJ7M&2",YP?.@;*L!A:MU%?N+"8,6]3$07;F0EE#I"
M.Q2HG&/+:FN]WC_,6RM"+"TA2DD!7>2=I\_RU$\$+>9NNES%C(AQEKS_`!*P
MD?8F@86BBB@****`HHHH,FX_I4;#:5@':)2@?>4\OT-8M:I2(-XA3'!N1'D-
MN*'F$J!/Z4R_$G33FJ-&RH<=.Z4R0_'']Y2?#X@D?$4KZDJ0HH6DI4DX((P0
M:!N+G$9OEFPR6W4N)#K*B$J2KED'TDJ','KCQK-5:<[O>F4+;48Q.5>BO*2!
MT/X8JH:&XLW'2D=%NFLF?;D?D3NPXT/))\1[#]JOLGB9H*^Q0J1,EV]TG*BF
M/ASW9`4#5&.TT^?B;?"-/OZF"S%5U:'P#@_VU`OZ99DW%]YQ0#2CE(&_/Q]"
MHN1J72).(VKI"$<OSQ'"?GC],5WVS66AXJ@N?J1^:H'(1W)3:/LG)^=;QK6L
M=BR><;WGEJKOIJU!A?>NS"4I3L;QN_W`51./EG??@6R\-(*FHRELO$?N[L%)
M]V01\15F3Q>T,A(2BYJ2D#``C.`#^6OE+XJZ`GQ'8DN?V[#R2EQM<5PA0/@?
M1J*]IM/974K%(Y""X3<0[.WIYBP766U"D1"4M+>5M0X@DD>D>0(SC!J^737&
MF+/&4_+O43`&0AIT.+5[DIR:PR]67AS)D*=L^JGX:%'/8O0W'$I]QP#CWYKF
MM]@T*ET*N6LG5MCJB/`<23_F.<?*O+VZ]2WV[<6=71H-KBK3';RF.T?W$D^D
MXL^'A\@/?#W:S,G7K>G8:M[;4AJ$%8_,H$)4KXJW&M9T[K;A?I:&8UHDED*Q
MVCACN*6X?-2L9/Z55+0G0%MU<WJ)[6+LIU$A4@M*@K2%*.3UY]"<_"@ZN/EM
M2Q*LLUM.$EE<?EX!)!`_F-0=E:N'%C6\)$X*$*#';#P!Y);0!GXK5^OLJXZZ
MU/H'7%KCPGM2+B%A[M4N)B+6?RD$8P/,?*O=$:FX=Z(M;L2-?E2'GW-[KZHJ
MTE7D,8Z#_P!F@IW&>4F3KI%NCI`;@Q6F$(2.0)]+`^H#X5K6I%#2W"B2T@[3
M&MR8Z3_$4A`^YK-IZ=`7+6"]12=8NJ*Y29!8[BO&`00G/E@`59]9:UT1J^P*
MM"M2KAH6XE:UIB.+)">>,8'CCY4'_]#AX!6[M;Y=+D4\H\=+0/M6K/Z(^]0W
M&>X=_P"(;L<+&V&PVP"3R!(W'[K^U7+0NI=`:'MTF(SJ-<M4A[M%.*B+0<``
M`8P?;\ZJU\M^@K[?)EU>UN\A<MY3A0+>LA.3R&?8.5!H$(\*H\&.RXY8'%MM
M)2I:@@E1`P23YUF/%:WLQ]3LWFUJ;7;)[*%176/^6"V`@I&/+:/G7G]6N'O_
M`'T__P".75_&I^&+VD(NF9UR$J+':2@*5'<2K<!^<$#D<Y/QH)_1_$RPZ@M+
M!E7"/"GH0$O,R'`C*L<RDGD0:]U/Q4TUIZ,HLS&KE+QZ#$5P*&?XE#(`^_LK
M'9^F]!J?*K=K9;;1/)#\%Q1'Q&,_*NZRV/AC$>2[=M4OS]O/LFXKC2#[S@D_
M`B@FK_Q3N&I=#74-6$Q(BPF.J49&1N41Z(&T9.,^X5^^!FG84^)=;A<(,>4G
MM$,M!]I*P"`2K&1[4UU:KO?#S4>GXECBZ@%JAQ7>T2AB"L@\B`,8'F37=HO6
M&@=&6']EL:A5)RZIU3JHKB2HG`Z8/@!0=/%R#9;/H.0N-:8+#\AUMEM;<9"5
M#GDX(&>B34;P!MW9VFZW,IYO/I92?8D9/^L5YKK4NAM<0HL-S52X3<=TN';#
M6O><8'@.G/YU(:/UAH+2&GV[0QJ,2`A:EJ=5&<25%1\L>6!\*#3:*IZ>*VB5
MJ"4WI)).`.Q<Y_RUT7#B3I&USWH,R[I:D,*V.([)9VGRR!B@M%%5F5Q%TI#A
MQ)<B[)0S-0I;"BTOTTI5M)QC(Y@]:)/$72D2#$G/W5*(\T*+"^R7Z82=JCC&
M1S\Z"S45"+UC8&[N_:5STB9':+SK6Q7H("=Y).,?EYUW6B\0+[;F[A;7^WC.
M$A#FTIS@X/(C/44';6;Z]X1P]2ON7.TN(@W%?-Q*A^$\?,X_*?:.OEXUI%%`
MJ5YT+J>PK4)UGD!"?[5I/:(/^9.14"I*D'"DE)\B,4Y=?)46.LY4PVH^90#0
M)Q13C=SB^K-?0*.YQ?5FOH%`G-%.-W.+ZLU]`H[G%]6:^@4"<T4XW<XOJS7T
M"CN<7U9KZ!0)S13C=SB^K-?0*.YQ?5FOH%`G-66WW6QCL438R0EF%MWHC-Y4
M^5_F.0<@(Y<P>8SC/.FA[G%]6:^@4=SB^K-?0*!7(LK3J9T*1("BA$9Q+S8C
MCFZ=Q"O(@%0\,>B.5'[1L)CMA<<*R[E]L1DA;@[7.4K!&T=F`,``9SRYY#1]
MSB^K-?0*.YQ?5FOH%`LJ+GI0O.=\AJ?"H_9[V&`T-V]2@4I!Y$`(1GR*CX<_
MVJ\:0+4M?[(/;*<?7'2$80G<%!`//HG:@CVJ/ES9?N<7U9KZ!1W.+ZLU]`H%
MB;N.E6)#:S`5);()6V6]N/PTH"<YZYWK)\]M'[2TR)+@8B]FG\3L7G8X<V^D
M@)W()P?00H^Q2S3.]SB^K-?0*.YQ?5FOH%`KB9^G$PD(3%6)1F)?6\604AO<
M06PDD\@G!YYR?<*]9NMD<6MQV(TR\M;RD+$9*D-9*`V-G(*`2%]?%0/.FB[G
M%]6:^@4=SB^K-?0*!8G+GI1<22A%M<0\MU:V7-F=B5+`VD;O!`R.?(DC/C7-
M.N%B>U+&DM1<0$)`=0EH)!5S.=HQD#*?:0,$GJ6F[G%]6:^@4=SB^K-?0*!8
M&KG8$F0I]AMU1QDIAI2'DAO&$C.&SOY[ASQSY=#^_P!L:80B/MM:EF.VI)RE
M`+JNR2D'.T]5[E'<%=!CERIG.YQ?5FOH%'<XOJS7T"@5NPQX]ZU];6X[*6F9
M,QM192.3:=V5)]N`#SY>X5&WZ6NYZ@N,_"CWF4XZ.7@I1--NF+'0H*2PVE0Z
M$(`-'=F/^@W](H%CUXE3$BS6P)/_``%ICH6,=%J3VBONNI*]0%2M0:/T\$$A
MJ%%0XG'13JMZ_P#53%J894<J:03YE(KWL6MP5V:-PZ':,T"_O35/WSB!?>9"
M6'(K2O/M'`V/Y4FK99-3W'2NG[-:H\!E3;<)+RTN;M[I6GM,)P>62K:.1]($
;5J?8M8([)&%=?1'.O2TV2DE"24_E..GNH/_9
`
end

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>3
<FILENAME>ex31-1.htm
<DESCRIPTION>EXHIBIT 31.1
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff">
<p style=' margin-bottom:0pt;text-align:right; margin-top:8pt;'><b><font size=2>Exhibit 31.1</font></b></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><b><font size=2><a name="s10">CERTIFICATIONS PURSUANT TO SECTION 302</a></font></b></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:8pt;'><b><font SIZE=2>OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>I, Fred Kornberg, certify that:</font></p>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>1.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>I have reviewed this quarterly report on Form 10-Q of Comtech Telecommunications Corp.;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>2.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>3.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>4.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(a)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(b)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(c)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Disclosed in this quarterly report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>5.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(a)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(b)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</font></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="70%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '>
  <tr >
<td width="29%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>Date: June 8, 2004</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>&nbsp;</font></p> </td>
<td width="26%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>/s/ Fred Kornberg</font></p> </td> </tr> <tr >
<td width="29%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td> </tr> <tr >
<td width="29%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
    <td width="26%" valign=top nowrap >
      <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>Fred Kornberg</font><br>
        <font size=2>Chairman of the Board</font><br>
         <font size=2>Chief&nbsp;Executive&nbsp;Officer&nbsp;and&nbsp;President</font></p> </td> </tr> </table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>21</font></p>
</BODY>
</HTML>

































































</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>4
<FILENAME>ex31-2.htm
<DESCRIPTION>EXHIBIT 31.2
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff">
<p style=' margin-bottom:0pt;text-align:right; margin-top:8pt;'><b><font size=2>Exhibit 31.2</font></b></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><b><font SIZE=2>CERTIFICATIONS PURSUANT TO SECTION 302</font></b></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:8pt;'><b><font SIZE=2>OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>I, Robert G. Rouse, certify that:</font></p>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>1.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2> I have reviewed this quarterly report on Form 10-Q of Comtech Telecommunications Corp.;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>2.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; </font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>3.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>4.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(a)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(b)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(c)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Disclosed in this quarterly report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>5.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(a)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="4%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>(b)</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</font></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="80%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse; '>
  <tr >
<td width="29%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>Date: June 8, 2004</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>&nbsp;</font></p> </td>
<td width="26%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>/s/ Robert G. Rouse</font></p> </td> </tr> <tr >
<td width="29%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td> </tr> <tr >
<td width="29%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
    <td width="26%" valign=top nowrap >
      <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>Robert G. Rouse</font><br>
        <font size=2>Senior&nbsp;Vice&nbsp;President&nbsp;and&nbsp;Chief&nbsp;Financial&nbsp;Officer</font></p>
    </td> </tr> </table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>22</font></p>
</BODY>
</HTML>

































































</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>5
<FILENAME>ex32-1.htm
<DESCRIPTION>EXHIBIT 32.1
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff">
<p style=' margin-bottom:0pt;text-align:right; margin-top:8pt;'><b><font size=2>Exhibit 32.1</font></b></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><b><font SIZE=2>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO</font></b><br><b><font SIZE=2>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>In connection with the Quarterly Report of Comtech Telecommunications Corp. (the &#147;Company&#148;) on Form 10-Q for the period ended April 30, 2004 as filed with the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), I, Fred Kornberg, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. &sect; 1350, as adopted pursuant to &sect; 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:</font></p>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>1.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The Report fully complies with requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>2.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.</font></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="70%" border="0" cellspacing=0 cellpadding=0 style='margin-left:-.4pt; border-collapse:collapse'>
  <tr >
<td width="29%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>Date: June 8, 2004</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>&nbsp;</font></p> </td>
<td width="26%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>/s/ Fred Kornberg</font></p> </td> </tr> <tr >
<td width="29%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td> </tr> <tr >
<td width="29%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="26%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>Fred Kornberg</font><br> <font size=2>Chairman of the Board</font><br> <font size=2>Chief&nbsp;Executive&nbsp;Officer&nbsp;and&nbsp;President</font></p> </td> </tr> </table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>

<br><p style='margin-bottom:0pt;text-align:center'><font size=2>23</font></p>
</BODY>
</HTML>

































































</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>6
<FILENAME>ex32-2.htm
<DESCRIPTION>EXHIBIT 32.2
<TEXT>
<HTML>
<HEAD>
<TITLE> </TITLE>
</HEAD>
<BODY bgcolor="#ffffff">
<p style=' margin-bottom:0pt;text-align:right; margin-top:8pt;'><b><font size=2>Exhibit 32.2</font></b></p>
<p style=' margin-bottom:0pt;text-align:center; margin-top:16pt;'><b><font SIZE=2>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO</font></b><br><b><font SIZE=2>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</font></b></p>
<p style=' margin-bottom:0pt; margin-top:8pt;'><font size=2>In connection with the Quarterly Report of Comtech Telecommunications Corp. (the &#147;Company&#148;) on Form 10-Q for the period ended April 30, 2004 as filed with the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), I, Robert G. Rouse, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. &sect; 1350, as adopted pursuant to &sect; 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:</font></p>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>1.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The Report fully complies with requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></td></tr></table>
<table width="100%" cellspacing=0 cellpadding=0><tr><td width="0%" ></td><td width="4%" nowrap valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>2.</font></td><td valign="top"><p style=' margin-bottom:0pt; margin-top:6pt;'><font size=2>The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.</font></td></tr></table>
<p style=' margin-bottom:0pt; margin-top:0pt;'>&nbsp;</p>
<table width="80%" border="0" cellspacing=0 cellpadding=0 style='margin-left:-.8pt; border-collapse:collapse'>
  <tr >
<td width="29%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>Date: June 8, 2004</font></p> </td>
<td width="1%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>&nbsp;</font></p> </td>
<td width="26%" valign=bottom > <p style='margin-bottom:0pt;margin-top:0in;'><br> <font size=2>/s/ Robert G. Rouse</font></p> </td> </tr> <tr >
<td width="29%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p><font size=1>&nbsp;</font></p> </td>
<td valign=top > <hr noshade width="100%"  color="gray" size="1"> </td> </tr> <tr >
<td width="29%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="1%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="3%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=1>&nbsp;</font></p> </td>
<td width="26%" valign=top > <p style='margin-bottom:0pt;margin-top:0in;'><font size=2>Robert G. Rouse</font><br> <font size=2>Senior&nbsp;Vice&nbsp;President&nbsp;and&nbsp;Chief&nbsp;Financial&nbsp;Officer</font></p> </td> </tr> </table>
<p style=' margin-bottom:0pt; margin-top:0pt;'><font size=2>&nbsp;</font></p>
<br><p style='margin-bottom:0pt;text-align:center'><font size=2>24</font></p>



</BODY>
</HTML>

































































</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
