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<SEC-DOCUMENT>0001169232-06-004783.txt : 20061218
<SEC-HEADER>0001169232-06-004783.hdr.sgml : 20061218
<ACCEPTANCE-DATETIME>20061218115500
ACCESSION NUMBER:		0001169232-06-004783
CONFORMED SUBMISSION TYPE:	10-Q/A
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20061031
FILED AS OF DATE:		20061218
DATE AS OF CHANGE:		20061218

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/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-07928
		FILM NUMBER:		061282544

	BUSINESS ADDRESS:	
		STREET 1:		68 SOUTH SERVICE ROAD
		STREET 2:		SUITE 230
		CITY:			MELVILLE
		STATE:			NY
		ZIP:			11747
		BUSINESS PHONE:		6319627000

	MAIL ADDRESS:	
		STREET 1:		68 SOUTH SERVICE ROAD
		STREET 2:		SUITE 230
		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/A
<SEQUENCE>1
<FILENAME>d70159_10qa.htm
<DESCRIPTION>AMENDMENT TO QUARTERLY REPORT
<TEXT>
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    <TD align="center">&nbsp;</TD>
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    <TD align="center"><FONT face="Times New Roman, Times, serif" size=2><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B></FONT></TD>
  </TR>
  <TR>
    <TD><P align=center>    <FONT face="Times New Roman, Times, serif" size=2>Washington, D.C. 20549</FONT></P>
    </TD>
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<table width="600" border="0" cellspacing="0">
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    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
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    <td><hr align="center" width="120" size="1" noshade></td>
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    <td height="20" align="center" valign="bottom"><FONT face="Times New Roman, Times, serif" size=2><B>FORM 10-Q/A</B></FONT></td>
  </tr>
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    <td><hr align="center" width="120" size="1" noshade></td>
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<BR>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amendment No. 1 </FONT></H1>

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</TD>
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  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(Mark One)</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR valign="bottom">
    <TD width="2%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Wingdings">x</font><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="2" align="center"><FONT face="Times New Roman, Times, serif" size=2><B>For the quarterly period ended October 31, 2006</B></FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD width=2%><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Wingdings">o</font><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></TD>
  </TR>
  <TR valign="bottom">
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="2" align="center"><FONT face="Times New Roman, Times, serif" size=2>Commission File Number:&nbsp;&nbsp;&nbsp; 0-7928</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD height="21" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><P align=center><img src="comtech.jpg" width="256" height="62"></P>
    </TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0">
  <tr>
    <td height="25" align="center" valign="bottom"><FONT face="Times New Roman, Times, serif" size=2>(Exact name of registrant as specified in its charter)</FONT></td>
  </tr>
  <tr>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0">
  <tr>
    <td width="6%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="38%" align="center" valign="bottom" nowrap><font size="2" face="Times New Roman, Times, serif"><B>Delaware</B></font></td>
    <td width="5%" valign="bottom"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td width="32%" align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif"><B>11-2139466</B></font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="center"><hr size="1" noshade></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td align="center"><hr size="1" noshade></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="center" valign="top" nowrap><font size="2" face="Times New Roman, Times, serif">(State or other jurisdiction of incorporation /organization)</font></td>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td align="center" valign="top" nowrap><font size="2" face="Times New Roman, Times, serif">(I.R.S. Employer Identification Number)</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif"><B>68 South Service Road, Suite 230, Melville, NY</B></font></td>
    <td valign="bottom"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif"><B>11747</B></font></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align="center"><hr size="1" noshade></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td align="center"><hr size="1" noshade></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td align="center" valign="top"><font size="2" face="Times New Roman, Times, serif">(Address of principal executive offices)</font></td>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td align="center" valign="top"><font size="2" face="Times New Roman, Times, serif">(Zip Code)</font></td>
  </tr>
  <tr>
    <td><font size="2">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3" align="center" valign="bottom"><font size="2" face="Times New Roman, Times, serif"><B>(631) 962-7000</B></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3" align="center"><hr width="285" size="1" noshade></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3" align="center" valign="top"><font size="2" face="Times New Roman, Times, serif">(Registrant&#146;s telephone number, including area code)</font></td>
  </tr>
  <tr>
    <td colspan="4"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top width=3%><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" 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></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><font size="2" face="Wingdings">x</font><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Yes&nbsp;&nbsp;</FONT><font size="2" face="Wingdings">o</font><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;No</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD width="3%" vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TD>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top width=3%><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
    <TD colspan="3" vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of &#147;accelerated filer and large accelerated filer&#148; in Rule 12b-2 of the Exchange Act.</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
    <TD colspan="3" vAlign=top><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>Large accelerated filer </FONT><font size="2" face="Wingdings">x</font></TD>
    <TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>Accelerated filer </FONT><font size="2" face="Wingdings">o</font></TD>
    <TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>Non-accelerated filer </FONT><font size="2" face="Wingdings">o</font></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
    <TD vAlign=bottom>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="3" vAlign=bottom><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>Indicate by check mark whether registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD colspan="3" vAlign=bottom><font size="2" face="Wingdings">o</font><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;Yes&nbsp;&nbsp;</FONT><font size="2" face="Wingdings">x</font>&nbsp;<FONT face="Times New Roman, Times, Serif" size=2>No</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top><P align=center><FONT face="Times New Roman, Times, Serif" size=2>APPLICABLE ONLY TO CORPORATE ISSUERS:</FONT></P></TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top width=3%>&nbsp;</TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>As of November 30, 2006, the
number of outstanding shares of Common Stock, par value $.10 per share, of the registrant was 23,081,936 shares. </FONT></div></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600">
<P align=center>&nbsp;</P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>

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<TD>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><B><U>COMTECH TELECOMMUNICATIONS CORP.<br>
</U></B></FONT><FONT face="Times New Roman, Times, Serif" size=2><B><U>&nbsp;INDEX</U></B></FONT></P>
</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=700>
  <TR VALIGN=Bottom>
    <TH colspan="3"><FONT FACE="Times New Roman, Times, serif" SIZE=2></FONT></TH>
    <TH><FONT FACE="Times New Roman, Times, serif" SIZE=1>Page</FONT></TH>
  </TR>
  <TR>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>
      <hr size="1" noshade>
    </TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="2" ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif"><strong>PART
      I.</strong></font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif"><strong>FINANCIAL
      INFORMATION</strong></font></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD WIDTH=2% ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD WIDTH=9% ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">
      Item 1. </font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>Condensed
      Consolidated Financial Statements</FONT></TD>
    <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font>&nbsp;&nbsp;&nbsp;<a href="#a1"><FONT FACE="Times New Roman, Times, serif" SIZE=2>Condensed
      Consolidated Balance Sheets - October 31, 2006 (Unaudited) and July 31,
      2006</FONT></a></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;2</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;<a href="#a2">Condensed
      Consolidated Statements of Operations - Three Months Ended October 31, 2006 and 2005 (Unaudited)</a></FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;3</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;<a href="#a3">Condensed
      Consolidated Statements of Cash Flows - Three Months Ended October 31, 2006 and 2005 (Unaudited)</a></FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;4</FONT></TD>
  </TR>
  <TR>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font>&nbsp;&nbsp;&nbsp;<a href="#a4"><FONT FACE="Times New Roman, Times, serif" SIZE=2>Notes
      to Condensed Consolidated Financial Statements</FONT></a></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;5</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif"> Item 2.
      </font></TD>
    <TD ALIGN=LEFT><a href="#a5"><FONT FACE="Times New Roman, Times, serif" SIZE=2>Management&#146;s
      Discussion and Analysis of Financial Condition and Results of Operations</FONT></a></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, serif" SIZE=2>20</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif"> Item 3.
      </font></TD>
    <TD ALIGN=LEFT><a href="#a6"><FONT FACE="Times New Roman, Times, serif" SIZE=2>Quantitative
      and Qualitative Disclosures about Market Risk</FONT></a></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, serif" SIZE=2>27</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif"> Item 4.
      </font></TD>
    <TD ALIGN=LEFT><a href="#a7"><FONT FACE="Times New Roman, Times, serif" SIZE=2>Controls
      and Procedures</FONT></a></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, serif" SIZE=2>27</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="2" ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif"><strong>PART
      II.</strong></font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif"><strong>OTHER
      INFORMATION</strong></font></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif"> Item 1.
      </font></TD>
    <TD ALIGN=LEFT><a href="#a8"><FONT FACE="Times New Roman, Times, serif" SIZE=2>Legal
      Proceedings</FONT></a></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, serif" SIZE=2>27</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif"> Item 1A.</font></TD>
    <TD ALIGN=LEFT><a href="#a9"><FONT FACE="Times New Roman, Times, serif" SIZE=2>Risk
      Factors</FONT></a></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, serif" SIZE=2>27</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif"> Item 6.
      </font></TD>
    <TD ALIGN=LEFT><a href="#a10"><FONT FACE="Times New Roman, Times, serif" SIZE=2>Exhibits</FONT></a></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, serif" SIZE=2>28</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD colspan="3" ALIGN=LEFT><a href="#a11"><FONT FACE="Times New Roman, Times, serif" SIZE=2>Signature
      Page</FONT></a></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=2>&nbsp;&nbsp;29</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
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<TD>

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<p ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>EXPLANATORY NOTE</B></U> </FONT> </p>

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</TD>
</TR>
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<BR>

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<TR VALIGN=TOP>
<TD WIDTH=3%>&nbsp;</TD>
<TD WIDTH=97%><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Comtech
Telecommunications Corp. and Subsidiaries (the &#147;Company&#148;) is amending its
Quarterly Report on Form 10-Q for the quarter ended October 31, 2006, as filed on
December 4, 2006 (the &#147;Original Form 10-Q&#148;), to conform with Rule 10-01(d) of
Regulation S-X promulgated under the Securities Exchange Act of 1934, as amended. On
December 16, 2006, KPMG LLP (&#147;KPMG&#148;), the Company&#146;s independent registered
public accounting firm, completed its review of the Company&#146;s condensed consolidated
financial statements for the quarter ended October 31, 2006. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=3%>&nbsp;</TD>
<TD WIDTH=97%><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        The Original Form 10-Q included an explanatory paragraph in Part I, Item
        1 and a risk factor in Part II, Item 1A, which indicated that on November
        30, 2006, KPMG advised the Company that it believed that one of its staff
        accountants who worked on the engagement to audit the financial statements
        of the Company made an investment in the Company&#146;s common stock and
        that this matter raised a question as to whether KPMG&#146;s independence
        had been impaired. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=3%>&nbsp;</TD>
<TD WIDTH=97%><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        On December 16, 2006, KPMG concluded that its independence has not been
        compromised, and the Audit Committee of the Board of Directors of the
        Company (the &#147;Audit Committee&#148;), based on the information provided
        by KPMG, also concluded that KPMG&#146;s independence has not been compromised.
        In making this determination, the Audit Committee considered, among other
        factors, that (i) the investment by the staff accountant was believed
        to be de minimis (approximately $5,000); (ii) the staff accountant had
        a low-level of responsibility as compared to other members of the audit
        engagement team; (iii) all original work performed by the staff accountant
        that required agreeing amounts to source documents, performing analytical
        reviews and performing other significant procedures was re-performed and
        evaluated by other KPMG partners, managers and staff not previously associated
        with the audit of the Company&#146;s financial statements; and (iv) as
        a result of this re-performance, KPMG is unaware of any material changes
        or errors in any of the Company&#146;s consolidated financial statements
        or any required changes to Management&#146;s Reports on Internal Control
        Over Financial Reporting. In addition, the Audit Committee considered
        that all other members of the audit engagement team were interviewed by
        KPMG regarding this matter and that these interviews revealed no additional
        independence matters. </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=3%>&nbsp;</TD>
<TD WIDTH=97%><P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Except
for the removal of the explanatory paragraph in Part I, Item 1 and an update of the Risk
Factors in Part II, Item 1A, there are no other changes to the Original Form 10-Q. </FONT></P></TD>
</TR>
</TABLE>
<BR>

<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>1</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U>PART I<br>
</U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U>FINANCIAL INFORMATION<br>
</U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U>COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES<br>
</U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U><a name="a1"></a>CONDENSED CONSOLIDATED BALANCE SHEETS</U></FONT></P>
</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <td align="left"><font face="Times New Roman, Times, serif" size=2>Item 1. </font></td>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>October 31,<br>
      2006 </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>July 31,<br>
      2006</font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align="left">&nbsp;</td>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align="center" valign="top"><font size="2" face="Times New Roman, Times, serif">Assets</font></td>
    <th colspan=2 valign="top"><font face="Times New Roman, Times, Serif" size=1>(Unaudited)</font></th>
    <th>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Current assets:</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 245,560,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>251,587,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,003,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,003,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>69,300,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>70,047,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>72,046,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>61,043,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,949,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,178,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax asset - current</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,211,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,591,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align="left">&nbsp;</td>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>402,069,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>398,449,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Property, plant and equipment, net</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>25,755,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>24,732,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Goodwill</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>24,387,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>22,244,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Intangibles with finite lives, net</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,955,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,855,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Deferred financing costs, net</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,312,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,449,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other assets, net</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>364,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>537,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align="left">&nbsp;</td>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 461,842,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>455,266,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align="left">&nbsp;</td>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=center><font face="Times New Roman, Times, Serif" size=2>Liabilities and Stockholders&#146; Equity</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Current liabilities:</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 26,182,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>28,337,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>31,468,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>41,230,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Customer advances and deposits</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,393,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,544,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Deferred service revenue</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,360,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9,896,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Current installments of other obligations</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>138,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>154,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Interest payable</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>525,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,050,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>8,677,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,252,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align="left">&nbsp;</td>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>80,743,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>89,463,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Convertible senior notes</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>105,000,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>105,000,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other obligations, less current installments</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>210,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>243,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Deferred tax liability &#150; non-current</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,398,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,318,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align="left">&nbsp;</td>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>192,351,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>201,024,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Commitments and contingencies (See Note 14)</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Stockholders&#146; equity:</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, par value $.10 per share; shares authorized and unissued<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,000,000</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value $.10 per share; authorized 100,000,000 shares,<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issued 23,287,098 shares and 23,052,593 shares at October 31, 2006 and<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;July 31, 2006, respectively</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,329,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,305,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>143,885,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>139,487,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>123,462,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>112,635,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align="left">&nbsp;</td>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>269,676,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>254,427,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td align=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less:</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock (210,937 shares)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(185,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(185,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align="left">&nbsp;</td>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders&#146; equity</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>269,491,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>254,242,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align="left">&nbsp;</td>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders&#146; equity</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 461,842,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>455,266,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align="left">&nbsp;</td>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>See accompanying notes to condensed consolidated financial statements.</FONT></P>
</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>2</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U>COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES<br>
</U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U><a name="a2"></a>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS<br>
</U></FONT><FONT face="Times New Roman, Times, Serif" size=2>(Unaudited)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
    <th colspan=5><font size="1" face="Times New Roman, Times, serif"> Three months ended October 31,</font></th>
    <th><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=5><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th><font face="Times New Roman, Times, Serif" size=1>&nbsp;</font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2006</font></th>
    <th><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2005</font></th>
    <th><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th colspan="7"><font size="1" face="Times New Roman, Times, serif"></font><font size="1" face="Times New Roman, Times, serif"></font><font size="1" face="Times New Roman, Times, serif"></font><font size="1" face="Times New Roman, Times, serif"></font><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net sales</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 97,070,000</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>106,567,000</font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Cost of sales</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>57,695,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>66,363,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Gross profit</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>39,375,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>40,204,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Expenses:</font></td>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>16,587,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>16,048,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Research and development</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,157,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,749,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>649,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>596,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>24,393,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>23,393,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Operating income</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>14,982,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>16,811,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other expense (income):</font></td>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>695,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>674,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;Interest income</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(3,175,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,775,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Income before provision for income taxes</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>17,462,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>17,912,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Provision for income taxes</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,635,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,448,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net income</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 10,827,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>11,464,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net income per share:</font></td>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2>&nbsp;</th>
    <th>&nbsp;</th>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 0.47</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>0.51</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 0.41</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>0.43</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Weighted average number of common shares outstanding &#150; basic</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>22,948,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>22,646,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Weighted average number of common and common equivalent shares<br>
&nbsp;&nbsp;&nbsp;outstanding assuming dilution &#150; diluted</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>27,389,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>27,379,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>See accompanying notes to condensed consolidated financial statements.</FONT></P>
</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>3</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U>COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES<br>
</U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U><a name="a3"></a>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS<br>
</U></FONT><FONT face="Times New Roman, Times, Serif" size=2>(Unaudited)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<table width=600 border=0 cellpadding=0 cellspacing=0>
  <tr valign=Bottom>
    <th><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
    <th colspan=5><font size="1" face="Times New Roman, Times, serif"> Three months ended October 31,</font></th>
    <th><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=5><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th><font face="Times New Roman, Times, Serif" size=1>&nbsp;</font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2006</font></th>
    <th><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2005</font></th>
    <th><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Cash flows from operating activities:</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Net income</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 10,827,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>11,464,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash (used in) provided by<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operating activities:</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization of property, plant and equipment</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,768,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,371,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets with finite lives</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>649,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>596,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of stock-based compensation</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,810,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,296,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>137,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>137,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on disposal of property, plant and equipment</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(4,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for allowance for doubtful accounts</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>27,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>44,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for excess and obsolete inventory</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>550,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>469,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess income tax benefit from stock option exercises</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(295,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(397,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax expense (benefit)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>460,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(334,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities, net of effects of acquisition:</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash securing letter of credit obligations</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>31,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>720,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(13,523,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(11,235,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(4,648,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>229,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(645,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>173,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(2,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(2,155,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,215,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(10,798,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(2,319,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer advances and deposits</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,849,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>808,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred service revenue</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(2,536,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,668,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest payable</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(525,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(525,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,720,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,493,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by operating activities</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(3,629,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,204,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Cash flows from investing activities:</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Purchases of property, plant and equipment</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(2,773,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(2,913,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Purchases of other intangibles with finite lives</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(113,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Payments for business acquisition</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(2,191,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(4,964,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(3,026,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Cash flows from financing activities:</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Principal payments on other obligations</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(49,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(57,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Excess income tax benefit from stock option exercises</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>295,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>397,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Proceeds from exercises of stock options</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,140,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>958,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Proceeds from issuance of employee stock purchase plan shares</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>180,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>154,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,566,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,452,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;Net (decrease) increase in cash and cash equivalents</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(6,027,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,630,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;Cash and cash equivalents at beginning of period</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>251,587,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>214,413,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;Cash and cash equivalents at end of period</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 245,560,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>220,043,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><u>Supplemental cash flow disclosures:</u></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Cash paid during the period for:</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Interest</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1,083,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,062,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Income taxes</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2,455,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>308,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Noncash investing activities:</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Accrued business acquisition payments (See Note 5)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1,036,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR>
<TR>
<TD vAlign=top>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2>See accompanying notes to condensed consolidated financial statements.</FONT></P>
</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>4</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U>COMTECH TELECOMMUNICATIONS CORP. AND SUBSIDIARIES<br>
</U></FONT><FONT face="Times New Roman, Times, Serif" size=2><U><a name="a4"></a>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>
</U></FONT><FONT face="Times New Roman, Times, Serif" size=2>(Unaudited)</FONT></P>
</TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>

<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(1)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>General</U></I></FONT></TD>
</TR>

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>

<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The accompanying condensed consolidated financial statements of Comtech Telecommunications
Corp. and Subsidiaries (the &#147;Company&#148;) as of and for the three months ended
October 31, 2006 and 2005 are unaudited. In the opinion of management, the information
furnished reflects all material adjustments (which include 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 fiscal year. For the three months ended October
31, 2006 and 2005, comprehensive income was equal to net income.
 </FONT></div></TD></TR>

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The
preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities, and disclosure of
contingent assets and liabilities, at the date of the financial statements and the
reported amounts of revenues and expenses during the reported period. Actual results may
differ from those estimates. </FONT></div></TD></TR>

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>These
condensed consolidated financial statements should be read in conjunction with the
audited consolidated financial statements of the Company for the fiscal year ended July
31, 2006 and the notes thereto contained in the Company&#146;s Annual Report on Form
10-K, filed with the Securities and Exchange Commission (&#147;SEC&#148;), and all of the
Company&#146;s other filings with the SEC. </FONT></div></TD></TR></TABLE>

<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(2)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Reclassifications</U></I></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>Certain reclassifications have been made to previously reported financial statements to conform to
  the Company&#146;s current financial statement format.</FONT></div></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(3)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Stock-Based Compensation</U></I></FONT></TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The Company applies the provisions of Financial Accounting Standards Board (&#147;FASB&#148;) Statement
  of Financial Accounting Standards (&#147;SFAS&#148;)&nbsp;No. 123(R), &#147;Share-Based Payment,&#148; which establishes the accounting for employee stock-based awards. Under the provisions of SFAS No.
  123(R), stock-based compensation is measured at the grant date, based on the calculated fair value
  of the award, and is recognized as an expense over the requisite employee service period (generally
  the vesting period of the grant). The Company used the modified prospective method upon adopting
  SFAS No. 123(R). </FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The Company recognized stock-based compensation for awards issued under the Company&#146;s Stock Option
  Plans and the Company&#146;s 2001 Employee Stock Purchase Plan (the &#147;ESPP&#148;) in the following
  line items in the Condensed Consolidated Statements of Operations:</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th bgcolor="#FFFFFF">&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=5><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th bgcolor="#FFFFFF">&nbsp;</th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan=5><font size="1" face="Times New Roman, Times, serif">Three months ended <br>
      October 31, </font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th bgcolor="#FFFFFF">&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=5><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th bgcolor="#FFFFFF"><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
    <th><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></th>
    <th colspan=2><font face="Times New Roman, Times, serif" size=1>2006</font></th>
    <th><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
    <th colspan=2><font face="Times New Roman, Times, serif" size=1>2005</font></th>
    <th><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
  </tr>
  <tr valign=Bottom>
    <th bgcolor="#FFFFFF">&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td width=8% align=LEFT bgcolor="#FFFFFF">&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Cost of sales</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 140,000</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=11% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>76,000</font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#FFFFFF">&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Selling, general and administrative expenses</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,421,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,085,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT bgcolor="#FFFFFF">&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Research and development expenses</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>249,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>135,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th bgcolor="#FFFFFF">&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#FFFFFF">&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Stock-based compensation expense before income tax benefit</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,810,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,296,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT bgcolor="#FFFFFF">&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Income tax benefit</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(495,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(274,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)</font></td>
  </tr>
  <tr valign=Bottom>
    <th bgcolor="#FFFFFF">&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#FFFFFF">&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net stock-based compensation expense</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1,315,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,022,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <th bgcolor="#FFFFFF">&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
    <th colspan=2><hr size="2" noshade></th>
    <th>&nbsp;</th>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>5</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>Of the total stock-based compensation expense before income tax benefit recognized in the three months
  ended October 31, 2006 and 2005, $42,000 and $39,000, respectively, related to awards issued pursuant
  to the ESPP. Stock-based compensation that was capitalized and included in ending inventory at October
  31, 2006 and July 31, 2006 was $58,000 and $61,000, respectively.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>

<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The Company estimates the fair value of stock options using the Black-Scholes option pricing model.
  The Company believes that the valuation technique and the approach utilized to develop the underlying
  assumptions are appropriate in calculating the fair values of the Company&#146;s stock options granted
  during the three months ended October 31, 2006 and 2005. Estimates of fair value are not intended
  to predict actual future events or the value ultimately realized by the employees who receive equity
  awards.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The per share weighted average fair value of stock options granted during the three months ended October
  31, 2006 and 2005 was $10.58 and $14.18, respectively. In addition to the exercise and grant date
  prices of the awards, certain weighted average assumptions that were used to estimate the fair value
  of stock option grants in the respective periods are listed in the table below:</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th bgcolor="#FFFFFF">&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=3><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th bgcolor="#FFFFFF">&nbsp;</th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan=3><font size="1" face="Times New Roman, Times, serif">Three months ended <br>
      October 31, </font></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
  </tr>
  <tr valign=Bottom>
    <th bgcolor="#FFFFFF">&nbsp;</th>
    <th>&nbsp;</th>
    <th colspan=3><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th bgcolor="#FFFFFF"><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
    <th><font face="Times New Roman, Times, serif" size=1>&nbsp;</font></th>
    <th><font face="Times New Roman, Times, serif" size=1>2006</font></th>
    <th><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
    <th><font face="Times New Roman, Times, serif" size=1>2005</font></th>
    <th><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></th>
  </tr>
  <tr valign=Bottom>
    <th bgcolor="#FFFFFF">&nbsp;</th>
    <th>&nbsp;</th>
    <th><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td width=8% align=LEFT bgcolor="#FFFFFF">&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Expected dividend yield</font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>0</font></td>
    <td width=6% align=LEFT><font face="Times New Roman, Times, Serif" size=2>%</font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>0</font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>%</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#FFFFFF">&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Expected volatility</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>45.47</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>%</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>51.79</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>%</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT bgcolor="#FFFFFF">&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Risk-free interest rate</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4.91</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>%</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4.11</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>%</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT bgcolor="#FFFFFF">&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Expected term (years)</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3.63</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3.63</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>Options granted during the three months ended October 31, 2006 and 2005 had exercise prices equal to
  the fair market value of the stock on the date of grant, a contractual term of five years and a vesting
  period of three years. All options granted through July 31, 2005 had exercise prices equal to the
  fair market value of the stock on the date of grant and a contractual term of ten years and generally
  a vesting period of five years. As of October 31, 2006, the weighted average estimated forfeiture
  rate was 8.4%.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The Company estimates expected volatility by considering the historical volatility of the Company&#146;s
  stock, the implied volatility of publicly traded stock options in the Company&#146;s stock and the
  Company&#146;s expectations of volatility for the expected term of stock-based compensation awards.
  The risk-free interest rate is based on the United States (&#147;U.S.&#148;) treasury yield curve
  in effect at the time of grant. The expected option term is the number of years that the Company
  estimates that options will be outstanding prior to exercise. The expected term of the awards issued
  after July 31, 2005 was determined using the &#147;simplified method&#148;&nbsp;prescribed in SEC
  Staff Accounting Bulletin (&#147;SAB&#148;) No. 107. </FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The actual income tax benefit recorded relating to the exercise of stock option awards was $295,000
  and $397,000 for the three months ended October 31, 2006 and 2005, respectively, and is classified
  as a financing cash inflow in the Company&#146;s Condensed Consolidated Statements of Cash Flows.
  The Company settles employee stock option exercises with new shares.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>At
        October 31, 2006, total remaining unrecognized compensation cost related
        to unvested stock-based awards was $16,909,000, net of estimated forfeitures.
        That cost is expected to be recognized over a weighted average period
        of 2.4 years. </FONT></div></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR valign="bottom">
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD><FONT face="Times New Roman, Times, Serif" size=2>(4)</FONT></TD>
  <TD><FONT face="Times New Roman, Times, Serif" size=2><I><U>Earnings Per Share</U></I></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The Company calculates earnings per share (&#147;EPS&#148;) in accordance with SFAS No. 128, &#147;Earnings
  per Share.&#148;&nbsp;Basic EPS is computed based on the weighted average number of shares outstanding.
  Diluted EPS reflects the dilution from potential common stock issuable pursuant to the exercise of
  stock options and the conversion of convertible senior notes, if dilutive, outstanding during each
  period. Stock options to purchase 1,373,000 and 623,000 shares for the three months ended October
  31, 2006 and 2005, respectively, were not included in the diluted EPS calculation because their effect
  would have been anti-dilutive.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>In accordance with Emerging Issues Task Force (&#147;EITF&#148;) Issue No. 04-8, &#147;The Effect of
  Contingently Convertible Instruments on Diluted Earnings per Share,&#148; the Company includes the
  impact of the assumed conversion of its 2.0% convertible senior notes in calculating diluted EPS.</FONT></div></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>6</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The following table reconciles the numerators and denominators used in the basic and diluted EPS calculations:&nbsp;</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="5" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="8%" ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="5" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">Three months ended October 31,</font></strong></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="5" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">2006 <br>
    </font></strong></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">2005<br>
    </font></strong></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Numerator:</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=14% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=14% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=10% ALIGN=LEFT bgcolor="#FFFFFF"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Net income for basic calculation</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,827,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,464,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Effect of dilutive securities:</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense (net of tax) on<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;convertible senior notes</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>416,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>423,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Numerator for diluted calculation</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 11,243,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,887,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Denominator:</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Denominator for basic calculation</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22,948,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22,646,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;Effect of dilutive securities:</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,108,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,400,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conversion of convertible senior notes</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,333,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,333,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Denominator for diluted calculation</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27,389,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27,379,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(5)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Acquisition</U></I></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>In August 2006, the Company acquired certain assets and assumed certain liabilities of Insite Consulting,
  Inc. (&#147;Insite&#148;), a logistics application software company, for $3,227,000, including transaction
  costs of $256,000. To date, the Company has paid $2,191,000 and expects to make guaranteed payments
  of $1,036,000 through the first quarter of fiscal 2008. In addition to the guaranteed purchase price,
  the Company might be required to make certain earn-out payments based on the achievement of future
  sales targets. The first part of the earn-out cannot exceed $1,350,000 and is limited to a five-year
  period. The second part of the earn-out, which is for a ten-year period, is unlimited and based on
  a per unit future sales target primarily relating to new commercial satellite-based mobile data communication
  markets. Insite has developed the geoOps&#153; Enterprise Location Monitoring System, a software-based
  solution that allows customers to integrate legacy data systems with near-real time logistics and
  operational data systems. Sales and income relating to the Insite assets acquired would not have
  been material to the Company&#146;s results of operations for the three months ended October 31,
  2005 and were not material for the three months ended October 31, 2006. This operation was combined
  with the Company&#146;s existing business and is part of the mobile data communications segment.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>The Insite purchase price was allocated as follows:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TD width="8%" ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=20% ALIGN=center><strong><FONT FACE="Times New Roman, Times, serif" SIZE=1>Estimated Useful Lives<br>
    </FONT></strong></TD>
    <TD WIDTH=1% ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD WIDTH=10% ALIGN=LEFT bgcolor="#FFFFFF"><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fair value of net tangible<br>
&nbsp;&nbsp;&nbsp;assets acquired</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="14%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 335,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD width="10%" ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Adjustments to record<br>
&nbsp;&nbsp;intangible assets at fair value:</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Existing technology</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>447,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7 years</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other intangibles</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>302,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1 to 10 years</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,143,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indefinite</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,892,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Aggregate purchase price</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 3,227,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The valuation of existing technology was based primarily on the discounted capitalization of royalty
  expense saved because the Company now owns the asset. The valuation of other intangibles was primarily
  based on the value of the discounted cash flows that the related assets could be expected to generate
  in the future.</FONT></div></TD>
</TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>7</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(6)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Accounts Receivable</U></I></FONT></TD></TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top></TD>
  <TD vAlign=top> <font size="2" face="Times New Roman, Times, serif">Accounts receivable consist of the following: </font></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TD width="8%" ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD colspan="2" ALIGN=center><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;October 31, 2006</FONT></strong></TD>
    <TD width="3%" ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=center><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=1>July&nbsp;31, 2006</FONT></strong></TD>
    <TD width="1%" ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD width="3%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accounts receivable from commercial customers</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="13%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 36,228,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD width="13%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36,700,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Unbilled receivables on contracts-in-progress</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,154,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10,361,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amounts receivable from the U.S. government and its agencies</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32,310,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24,362,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>70,692,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>71,423,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Less allowance for doubtful accounts</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,392,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,376,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Accounts receivable, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 69,300,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>70,047,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>There was no retainage included in unbilled receivables at October 31, 2006 or July 31, 2006. In the
  opinion of management, substantially all of the unbilled balances will be billed and collected within
  one year. As of October 31, 2006 and July 31, 2006, a prime contractor represented 8.7% and 16.6%,
  respectively, of accounts receivable, net.</FONT></div></TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="8" ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT face="Times New Roman, Times, Serif" size=2>(7)</FONT></TD>
    <TD colspan="8" ALIGN=LEFT><FONT face="Times New Roman, Times, Serif" size=2><I><U>Inventories</U></I></FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="8" ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="8" ALIGN=LEFT><font size="2" face="Times New Roman, Times, serif">
      Inventories consist of the following: </font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD width="1%" ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD width="1%" ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD width="3%" ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD colspan="2" ALIGN=center><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=1>October 31, 2006</FONT></strong></TD>
    <TD width="3%" ALIGN=center><font size="1">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=center><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=1>July 31, 2006</FONT></strong></TD>
    <TD width="1%" ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="8%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Raw materials and components</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="14%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 43,703,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD width="14%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35,835,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Work-in-process and finished goods</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34,071,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31,331,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>77,774,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>67,166,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Less reserve for excess and obsolete inventories</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,728,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,123,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Inventories, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 72,046,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>61,043,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>Inventories directly related to long-term contracts were $17,636,000 and $8,349,000 at October 31,
  2006 and July 31, 2006, respectively. At October 31, 2006 and July 31, 2006, $3,146,000 and $3,406,000,
  respectively, of the inventory balance above related to a contract from a third party commercial
  customer to outsource its manufacturing. The decrease in the reserve relates primarily to the write-off
  of previously reserved for inventory, offset by a provision for excess and obsolete inventory.</FONT></div></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(8)</FONT></TD>
  <TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2><I><U>Accrued Expenses</U></I></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>Accrued expenses and other current liabilities consist of the following:</FONT></TD>
</TR>
</TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TD>
    <TD colspan="2" ALIGN=center><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=1>October 31, 2006</FONT></strong></TD>
    <TD WIDTH=3% ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=center><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=1>July 31, 2006 </FONT></strong></TD>
    <TD WIDTH=1% ALIGN=LEFT><font size="1">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD width="8%" ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="3%" ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accrued wages and benefits</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD width="14%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 9,030,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD width="1%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD width="14%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17,361,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="3%" ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accrued commissions</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,910,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,745,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="3%" ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accrued warranty</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,479,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10,468,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="3%" ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accrued hurricane related costs (See Note 14)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,240,000</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,240,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="3%" ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accrued business acquisition payments (See Note 5)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,036,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="3%" ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,773,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,416,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="3%" ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="3%" ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 31,468,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41,230,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD height="2" colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD height="2" colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The Company provides warranty coverage for most of its products for a period of at least one year from
  the date of shipment. The Company records a liability for estimated warranty expense based on historical
  claims, product failure rates and other factors. In the three months ended October 31, 2006, the
  Company recorded a reduction in its estimated reserve for warranty obligations of $517,000 due to
  lower than anticipated claims received to date on a large over-the-horizon microwave system contract
  whose warranty period is nearing expiration. Changes in the Company&#146;s product warranty liability
  during the three months ended October 31, 2006 and 2005 were as follows:</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="5" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="5" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">Three months ended October 31,</font></strong></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="5" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">2006</font></strong></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">2005</font></strong></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD width="8%" ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="3%" ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Balance at beginning of period</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=14% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 10,468,000</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=14% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7,910,000</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Provision for warranty obligations</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,282,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,939,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Reversal of warranty liability</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(517,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Charges incurred</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1,754,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(872,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Balance at end of period</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 9,479,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8,977,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT valign="Middle"><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>8</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(9)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>2.0% Convertible Senior Notes</U></I></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" 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 under 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 of $3,821,000.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" 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 $31.50 per share
  (a conversion rate of 31.7460 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. The notes have substantive conversion features
  as defined by EITF No. 05-1, &#147;Accounting for the Conversion of an Instrument that Becomes Convertible
  Upon the Issuer&#146;s Exercise of a Call Option.&#148; Accordingly, the Company will not recognize
  a gain or loss if it issues common stock upon the conversion and settlement of these notes.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" 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></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" 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. All of Comtech Telecommunications Corp.&#146;s (the
&#147;Parent&#148;) wholly-owned subsidiaries have issued full and unconditional guarantees in favor
  of the holders of the Company&#146;s 2.0% convertible senior notes (the &#147;Guarantor Subsidiaries&#148;),
  except for the subsidiary that purchased Memotec, Inc. in fiscal 2004 (the &#147;Non-Guarantor Subsidiary&#148;).
  Comtech Tolt Technologies, Inc. (&#147;Tolt&#148;), which was purchased in February 2005, became
  a guarantor in July 2005. These full and unconditional guarantees are joint and several. Other than
  supporting the operations of its subsidiaries, the Parent has no independent assets or operations
  and there are currently no significant restrictions on its ability, or the ability of the guarantors,
  to obtain funds from each other by dividend or loan. Consolidating financial information regarding
  the Parent, the Guarantor Subsidiaries and the Non-Guarantor Subsidiary can be found in Note 16 to
  the condensed consolidated financial statements.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The net proceeds of the offering are being used for working capital and general corporate purposes
  and potentially may be used 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></div></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(10)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Stock Option Plans and Employee Stock Purchase Plan</U></I></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>The Company has stock option and employee stock purchase plans as follows:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2><I>1993 Incentive Stock Option Plan</I> &#150; The 1993 Incentive Stock Option Plan, as amended, provided for the granting to key employees
  and officers of incentive and non-qualified stock options to purchase up to 2,345,625 shares of the
  Company&#146;s common stock at prices generally not less than the fair market value at the date of
  grant with the exception of anyone who, prior to the grant, owns more than 10% of the voting power,
  in which case the exercise price cannot be less than 110% of the fair market value. In addition,
  it provided formula grants to non-employee members of the Company&#146;s Board of Directors. The
  term of the options could be no more than ten years. However, for incentive stock options granted
  to any employee who, prior to the granting of the option, owns stock representing more than 10% of
  the voting power, the option term could be no more than five years. As of October 31, 2006, the Company
  had granted stock options representing the right to purchase an aggregate of 2,016,218 shares (net
  of 428,441 canceled options) at prices ranging between $0.67 - $5.31 per share, of which 151,962
  are outstanding at October 31, 2006. To date, 1,864,256 shares have been exercised. Outstanding awards
  have been transferred to the 2000 Stock Incentive Plan. The terms applicable to these awards prior
  to the transfer continue to apply. The plan was terminated by the Company&#146;s Board of Directors
  in December 1999 due to the approval by the shareholders of the 2000 Stock Incentive Plan. </FONT></div></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>9</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2><I>2000 Stock Incentive Plan</I> &#150; The 2000 Stock Incentive Plan, as amended, provides for the granting to all employees
  and consultants of the Company (including prospective employees and consultants) non-qualified stock
  options, stock appreciation rights, restricted stock, performance shares, performance units and other
  stock-based awards. In addition, employees of the Company are eligible to be granted incentive stock
  options. Non-employee directors of the Company are eligible to receive non-discretionary grants of
  nonqualified stock options subject to certain limitations. The aggregate number of shares of common
  stock which may be issued may not exceed 5,737,500 plus the shares that were transferred to the Plan
  relating to outstanding awards that were previously granted, or available for grant, under the 1982
  Incentive Stock Option Plan and the 1993 Incentive Stock Option Plan. The Stock Option Committee
  of the Company&#146;s Board of Directors, consistent with the terms of the Plan, will determine the
  types of awards to be granted, the terms and conditions of each award and the number of shares of
  common stock to be covered by each award. Grants of incentive and non-qualified stock options may
  not have a term exceeding ten years or no more than five years in the case of an incentive stock
  option granted to a stockholder who owns stock representing more than 10% of the voting power. As
  of October 31, 2006, the Company had granted stock options representing the right to purchase an
  aggregate of 4,850,185 shares (net of 487,615 canceled options) at prices ranging between $3.13
  - $41.51, of which 3,047,120 are outstanding at October 31, 2006. As of October 31, 2006, 1,803,065
  stock options have been exercised. All options granted through October 31, 2006 had exercise prices
  equal to the fair market value of the common stock on the date of grant. All options granted through
  July 31, 2005 have a term of ten years. All options granted since August 1, 2005 have a term of five years.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>The following table summarizes stock option activity during the three months ended October 31, 2006:</FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif"> Number <br>
      of Shares<br>
    </font></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">Weighted Average<br>
      Exercise Price <br>
    </font></strong></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">Weighted Average<br>
      Remaining <br>
      Contractual Term<br>
      (Years) <br>
    </font></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">Aggregate<br>
      Intrinsic<br>
      Value <br>
    </font></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD height="20" ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="11" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD WIDTH=8% ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Outstanding at July 31, 2006</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,919,242</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 15.99</FONT></TD>
    <TD WIDTH=3% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT>&nbsp;</TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.9</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 34,373,000</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Granted</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>645,100</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27.00</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Expired/canceled</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(138,025</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.91</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exercised</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(227,235</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.42</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Outstanding at October 31, 2006</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,199,082</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 18.94</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.5</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 53,671,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>


  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exercisable at October 31, 2006</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,035,282</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 13.25</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.9</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 23,223,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>




  <TR VALIGN=Middle>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>


  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Expected to vest at October&nbsp;31, 2006</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,091,159</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 21.67</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.2</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29,407,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>

  <TR VALIGN=Middle>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=RIGHT><hr align="center" size="2" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>



</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The total intrinsic value of stock options exercised during the three months ended October 31, 2006
  and 2005 was $5,223,000 and $3,897,000, respectively.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2><I>2001 Employee Stock Purchase Plan</I> &#150; The ESPP was approved by the shareholders on December 12, 2000 and 675,000 shares of
  the Company&#146;s common stock were reserved for issuance. The ESPP is intended to provide eligible
  employees of the Company the opportunity to acquire common stock in the Company at 85% of fair market
  value at date of issuance through participation in the payroll-deduction based ESPP. Through the
  first quarter of fiscal 2007, the Company issued 242,121 shares of its common stock to participating
  employees in connection with the ESPP. </FONT></div></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>10</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(11)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Customer and Geographic Information</U></I></FONT></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>Sales by geography and customer type, as a percentage of consolidated net sales, are as follows:</FONT></TD>
</TR>
</TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="5" ALIGN=center>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="5" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="5" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">Three months ended October 31,<br>
    </font></strong></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="5" ALIGN=RIGHT><hr align="center" size="1" noshade></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">2006</font></strong></TD>
    <TD ALIGN=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">2005</font></strong></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=left>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD width="8%" ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD width="5%" ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>United States</u></FONT></TD>
    <TD width="1%" ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=left>&nbsp;</TD>
    <TD WIDTH=1% ALIGN=LEFT>&nbsp;</TD>
    <TD WIDTH=12% ALIGN=RIGHT>&nbsp;</TD>
    <TD WIDTH=2% ALIGN=RIGHT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>U.S. government</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD width="12%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>56.3</FONT></TD>
    <TD width="4%" ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47.4</FONT></TD>
    <TD WIDTH=2% ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commercial customers</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.3</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.7</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=left>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=left>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total United States</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>70.6</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>61.1</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=left>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=left>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><u>International</u></FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=left>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=left>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>North African country</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.7</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15.3</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT bgcolor="#FFFFFF">&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other international customers</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25.7</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23.6</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=left>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=left>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total International</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29.4</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38.9</FONT></TD>
    <TD ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>%</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>International sales include sales to U.S. domestic companies for inclusion in products that will be
  sold to international customers. For the three months ended October 31, 2006, except for sales to
  the U.S. government, no other customer represented more than 10% of consolidated net sales. For the
  three months ended October 31, 2005, one customer, a prime contractor, represented 12.5% of consolidated
  net sales. </FONT></div></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(12)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Segment Information</U></I></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" 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 decisions about resources to be allocated
  and assessing their 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
  operating segments:&nbsp;(i) telecommunications transmission, (ii) mobile data communications and
  (iii) RF microwave amplifiers. Telecommunications transmission products include satellite earth station
  products (such as analog and digital modems, frequency converters, power amplifiers, and voice gateways)
  and over-the-horizon microwave communications products and systems. Mobile data communications products
  include satellite-based mobile location, tracking and messaging hardware and related services. RF
  microwave amplifier products include solid-state, high-power, broadband amplifier products that use
  the microwave and radio frequency spectrums. </FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>Unallocated expenses result from such corporate expenses as legal, accounting and executive compensation.
  In addition, for the three months ended October 31, 2006 and 2005, unallocated expenses include $1,810,000
  and $1,296,000, respectively, of stock-based compensation expense. Interest expense (which includes
  amortization of deferred financing costs) associated with the Company&#146;s 2.0% convertible senior
  notes is not allocated to the operating segments. Depreciation and amortization includes amortization
  of stock-based compensation. Unallocated assets consist principally of cash, deferred financing costs
  and deferred tax assets. Substantially all of the Company&#146;s long-lived assets are located in the U.S.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>Corporate management defines and reviews segment profitability based on the same allocation methodology
  as presented in the segment data tables below. </FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Middle>
    <TD ALIGN=left>&nbsp;</TD>
    <TD colspan="14" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="14" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">Three months ended October 31, 2006</font></strong></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Middle>
    <TD ALIGN=left>&nbsp;</TD>
    <TD colspan="14" ALIGN=center><hr align="center" size="1" noshade></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=left><strong><font size="1" face="Times New Roman, Times, serif">(in thousands)</font></strong></TD>
    <TD colspan="2" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">Telecommunications<br>
      Transmission <br>
    </font></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif"> Mobile Data <br>
      Communications<br>
    </font></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center nowrap><strong><font size="1" face="Times New Roman, Times, serif">RF Microwave<br>
      Amplifiers
    </font></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">Unallocated<br>
    </font></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD colspan="2" ALIGN=center><strong><font size="1" face="Times New Roman, Times, serif">Total<br>
    </font></strong></TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
  </TR>
  <TR VALIGN=Middle>
    <TD colspan="16" ALIGN=LEFT><hr align="center" size="1" noshade></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net sales</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 52,030</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35,655</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,385</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 97,070</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating income (expense)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12,900</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,109</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>849</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4,876</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14,982</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest income</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,144</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,175</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest expense</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>661</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>695</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Depreciation and amortization</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,690</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>342</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>339</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,856</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,227</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Expenditure for long-lived<br>&nbsp;&nbsp;&nbsp;assets, including intangibles</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,045</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,286</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>316</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,679</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total assets at October 31, 2006</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>141,832</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39,934</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26,711</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>253,365</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>461,842</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>11</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR align="center" VALIGN=bottom>
    <th nowrap>&nbsp;</th>
    <th colspan="14" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
  </TR>
  <TR align="center" VALIGN=bottom>
    <th nowrap><font size="1">&nbsp;</font></th>
    <th colspan="14"><b><font size="1" face="Times New Roman, Times, serif">Three months ended October 31, 2005</font></b></th>
    <th nowrap><font size="1">&nbsp;</font></th>
  </TR>
  <TR align="center" VALIGN=bottom>
    <th nowrap>&nbsp;</th>
    <th colspan="14" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
  </TR>
  <TR align="center" VALIGN=bottom>
    <th ALIGN=left nowrap><b><font size="1" face="Times New Roman, Times, serif">(in thousands)</font></b></th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">Telecommunications<br>
      Transmission </font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif"> Mobile Data <br>
      Communications</font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">RF Microwave<br>
      Amplifiers </font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">Unallocated</font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2"><b><font size="1" face="Times New Roman, Times, serif">Total</font></b></th>
    <th nowrap>&nbsp;</th>
  </TR>
  <TR align="center" VALIGN=bottom>
    <th colspan="15" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net sales</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 50,884</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39,434</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16,249</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 106,567</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating income (expense)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12,238</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,201</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4,208</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3,836</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16,811</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest income</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(31</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(13</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,819</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,775</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Interest expense</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>662</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>674</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Depreciation and amortization</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,430</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>242</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>270</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,321</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,263</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Expenditure for long-lived<br>&nbsp;&nbsp;&nbsp;assets,&nbsp;including intangibles</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,660</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>234</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>109</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,026</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total assets at October 31, 2005</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>115,348</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38,978</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22,096</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>230,863</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>407,285</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>Intersegment sales for the three months ended October 31, 2006 and 2005 by the telecommunications transmission
  segment to the RF microwave amplifiers segment were $1,841,000 and $845,000, respectively. For the
  three months ended October 31, 2006 and 2005, intersegment sales by the telecommunications transmission
  segment to the mobile data communications segment were $17,405,000 and $18,286,000, respectively.
  Intersegment sales have been eliminated from the tables above.</FONT></div></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR align="left" valign="bottom">
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR align="left" valign="bottom">
  <TD><FONT face="Times New Roman, Times, Serif" size=2>(13)</FONT></TD>
  <TD><FONT face="Times New Roman, Times, Serif" size=2><I><U>Intangible Assets</U></I></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=bottom>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>Intangible assets with finite lives as of October 31, 2006 and July 31, 2006 are as follows: </FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr align="center" valign=Bottom>
    <th><font size="1">&nbsp;</font></th>
    <th colspan="11"><b><font size="1" face="Times New Roman, Times, serif">October
      31, 2006</font></b></th>
    <th nowrap><font size="1">&nbsp;</font></th>
  </tr>
  <tr align="center" valign=Bottom>
    <th>&nbsp;</th>
    <th colspan="11" nowrap><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr align="center" valign=Bottom>
    <th>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">
      Weighted Average <br>
      Amortization Period</font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">Gross
      Carrying<br>
      Amount </font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">Accumulated
      <br>
      Amortization</font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">Net
      Carrying<br>
      Amount </font></b></th>
    <th nowrap>&nbsp;</th>
  </tr>
  <tr align="center" valign=Bottom>
    <th>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Existing
      technology</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=12% align=center><font face="Times New Roman, Times, Serif" size=2>7.22</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width=12% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      12,903,000</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=12% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9,943,000</font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width=12% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      2,960,000</font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Proprietary,
      core and licensed<br>
      &nbsp;&nbsp;&nbsp;technology</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=center><font face="Times New Roman, Times, Serif" size=2>8.57</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,145,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,723,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,422,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=center><font face="Times New Roman, Times, Serif" size=2>5.32</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,136,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>563,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>573,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr align="center" valign=Bottom>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap>&nbsp;</th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Total</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=center>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 19,184,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12,229,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 6,955,000</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr align="center" valign=Bottom>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap>&nbsp;</th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="2" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="2" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="2" noshade></th>
    <th nowrap>&nbsp;</th>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
</table>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR align="center" VALIGN=Bottom>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="11"><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th nowrap>&nbsp;</th>
    <th colspan="11" nowrap><b><font size="1" face="Times New Roman, Times, serif">July 31, 2006</font></b></th>
    <th nowrap>&nbsp;</th>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th nowrap>&nbsp;</th>
    <th colspan="11" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif"> Weighted Average <br>
      Amortization Period</font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">Gross Carrying<br>
      Amount </font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">Accumulated <br>
      Amortization</font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">Net Carrying<br>
      Amount </font></b></th>
    <th nowrap>&nbsp;</th>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Existing technology</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=12% ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.23</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 12,456,000</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9,494,000</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 2,962,000</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proprietary, core and licensed<br>
&nbsp;&nbsp;&nbsp;technology</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.57</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,145,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,554,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3,591,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.23</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>834,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>532,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>302,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap>&nbsp;</th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT>&nbsp;</TD>
    <TD ALIGN=LEFT>&nbsp;</TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 18,435,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11,580,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2> 6,855,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap>&nbsp;</th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="2" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="2" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="2" noshade></th>
    <th nowrap>&nbsp;</th>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>Amortization expense for the three months ended October 31, 2006 and 2005 was $649,000 and $596,000,
  respectively. The estimated amortization expense for the twelve months ending October 31, 2007, 2008,
  2009, 2010 and 2011 is $2,230,000, $1,304,000, $1,254,000, $1,121,000 and $843,000, respectively.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The changes in carrying amount of goodwill by segment for the three months ended October 31, 2006 is
  as follows:</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr align="center" valign=Bottom>
    <th>&nbsp;</th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><b><font size="1" face="Times New Roman, Times, serif">Telecommunications<br>
      Transmission </font></b></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><b><font size="1" face="Times New Roman, Times, serif"> Mobile
      Data <br>
      Communications</font></b></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">RF
      Microwave<br>
      Amplifiers </font></b></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><b><font size="1" face="Times New Roman, Times, serif">Total</font></b></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
  </tr>
  <tr align="center" valign=Bottom>
    <th>&nbsp;</th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
  </tr>
  <tr valign=Bottom>
    <td width="8%" align=LEFT>&nbsp;</td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>Balance
      at July 31, 2006</font></td>
    <td width=1% align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width=10% align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>
      8,817,000</font></td>
    <td width=3% align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=10% align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>5,005,000</font></td>
    <td width=3% align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=10% align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>8,422,000</font></td>
    <td width=3% align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width=10% align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>
      22,244,000</font></td>
    <td width=1% align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Acquisition
      of Insite (See Note 5)</font></td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,143,000</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,143,000</font></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="1" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="1" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="1" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="1" noshade></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>Balance
      at October 31, 2006</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>
      8,817,000</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>7,148,000</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>8,422,000</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>
      24,387,000</font></td>
    <td align=LEFT bgcolor="#eaf9e8"><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="2" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="2" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="2" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="2" noshade></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>12</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(14)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Legal Proceedings</U></I></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The Company is subject to certain legal actions, which arise in the normal course of business. Although
  the ultimate outcome of litigation is difficult to accurately predict, the Company believes that
  the outcome of these actions will not have a material effect on its consolidated financial position
  or results of operations.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>During fiscal 2005, two of the Company&#146;s leased facilities located in Florida experienced hurricane
  damage to both leasehold improvements and personal property. As of October 31, 2006, the Company
  has completed all restoration efforts relating to the hurricane damage and has recorded an $816,000
  insurance recovery receivable and accrued a total of $2,240,000 for hurricane related costs. Despite
  a written agreement with the general contractor that the Company believes limits its liability for
  the cost of the repairs to the amount of insurance proceeds ultimately received from its insurance
  company, a dispute has arisen with the general contractor and a certain subcontractor over the subcontractor&#146;s
  demand for payment directly from the Company (by virtue of a purported assignment of rights and other
  grounds) in an amount exceeding the insurance proceeds by $816,000, plus late charges, interest,
  fees, costs and certain treble damages. As a result of this dispute, the Company deposited $1,422,000,
  representing the balance of the insurance proceeds it has received, in its attorneys&#146; trust
  account and filed a complaint for declaratory judgment in the 9th Judicial Circuit Court for Orange
  County, Florida. The general contractor and the subcontractor have filed separate and independent
  actions against the Company and its insurance company, all of which have now been consolidated under
  the Company&#146;s original action. The Company has also filed a cross-claim against its insurance
  company. Discovery cutoff was December 1, 2006 and trial has been scheduled for February 13, 2007; however, it
  is likely that this date will change. The Company
  does not expect that the outcome of this matter will have a material effect on its consolidated financial position.</FONT></div></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(15)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Recent Accounting Pronouncements</U></I></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>In September 2006, the FASB issued SFAS No. 157, &#147;Fair Value Measurements&#148; (&#147;SFAS No.
  157&#148;) to clarify the definition of fair value, establish a framework for measuring fair value
  and expand the disclosures on fair value measurements. SFAS No. 157 defines fair value as the price
  that would be received to sell an asset or paid to transfer a liability in an orderly transaction
  between market participants at the measurement date. SFAS No. 157 also stipulates that, as a market-based
  measurement, fair value measurement should be determined based on the assumptions that market participants
  would use in pricing the asset or liability, and establishes a fair value hierarchy that distinguishes
  between (a) market participant assumptions developed based on market data obtained from sources independent
  of the reporting entity (observable inputs) and (b) the reporting entity&#146;s own assumptions about
  market participant assumptions developed based on the best information available in the circumstances
  (unobservable inputs). SFAS No. 157 will be effective for the Company&#146;s first quarter of fiscal
  2009. The Company is currently evaluating the impact SFAS No. 157 will have on its consolidated financial statements.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>In September 2006, the SEC issued SAB No. 108 (&#147;SAB No. 108&#148;) which provides interpretive
  guidance on how the effects of the carryover or reversal of prior year misstatements should be considered
  in quantifying a current year misstatement. SAB No. 108 must be applied prior to the end of the Company&#146;s fiscal year ending July 31, 2007.  The Company has commenced the process of evaluating the potential effects of SAB No. 108 on its consolidated
financial statements and is not yet in a position to determine what, if any, effect SAB No. 108 will have on its consolidated
financial statements.
</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>In July 2006, the FASB released FASB Interpretation No. 48, &#147;Accounting for Uncertainty in Income
  Taxes, an interpretation of FASB Statement No. 109&#148; (&#147;FIN 48&#148;). FIN 48 clarifies the
  accounting and reporting for uncertainties in income tax law and prescribes a comprehensive model
  for the financial statement recognition, measurement, presentation and disclosure of uncertain tax
  positions taken or expected to be taken in income tax returns. FIN 48 prescribes a two-step evaluation
  process for tax positions. The first step is recognition based on a determination of whether it is
  more-likely-than-not that a tax position will be sustained upon examination, including resolution
  of any related appeals or litigation processes, based on the technical merits of the position. The
  second step is to measure a tax position that meets the more-likely-than-not threshold. The tax position
  is measured at the largest amount of benefit that is greater than 50% likely of being realized upon
  ultimate settlement. If a tax position does not meet the more-likely-than-not recognition threshold,
  the benefit of that position is not recognized in the financial statements. FIN 48 is effective beginning
  in the Company&#146;s first quarter of fiscal 2008. The cumulative effects, if any, of applying FIN
  48 will be recorded as an adjustment to retained earnings as of the beginning of the period of adoption.
  The Company has commenced the process of evaluating the potential effects of FIN 48 on its consolidated
  financial statements and is not yet in a position to determine what, if any, effect FIN 48 will have
  on its consolidated financial statements.</FONT></div></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>13</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>In June 2006, the EITF reached a consensus on EITF No. 06-3, &#147;How Taxes Collected from Customers
  and Remitted to Governmental Authorities Should Be Presented in the Income Statement&#148; (&#147;EITF
  No. 06-3&#148;). EITF No. 06-3 provides that taxes imposed by a governmental authority on a revenue
  producing transaction between a seller and a customer should be shown in the income statement on
  either a gross or a net basis, based on the entity&#146;s accounting policy, which should be disclosed
  pursuant to Accounting Principles Board (&#147;APB&#148;) Opinion No. 22, &#147;Disclosure of Accounting
  Policies.&#148; The Company early adopted EITF No. 06-3 in the first quarter of fiscal 2007. The
  Company will continue to present taxes within the scope of EITF No. 06-3 on a net basis. As such,
  the adoption of EITF No. 06-3 did not have any effect on the Company&#146;s consolidated financial statements.</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>In May 2005, the FASB issued SFAS No. 154, &#147;Accounting Changes and Error Corrections&#148; (&#147;SFAS
  No. 154&#148;), which changes the requirements for the accounting and reporting of a change in accounting
  principle. SFAS No. 154 applies to all voluntary changes in accounting principles, as well as to
  changes required by an accounting pronouncement that does not include specific transition provisions.
  SFAS No. 154 eliminates the requirement to include the cumulative effect of changes in accounting
  principle in the income statement and instead requires that changes in accounting principle be retroactively
  applied. A change in accounting estimate continues to be accounted for in the period of change and
  future periods if necessary. A correction of an error continues to be reported by restating prior
  period financial statements. The Company adopted SFAS No. 154 in the Company&#146;s first quarter
  of fiscal 2007, and its adoption did not have any effect on the Company&#146;s consolidated financial statements.</FONT></div></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>14</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=48><FONT face="Times New Roman, Times, Serif" size=2>(16)</FONT></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Condensed Consolidating Financial Information</U></I></FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=bottom><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The consolidating financial information presented below reflects information regarding the Parent,
  the Guarantor Subsidiaries and the Non-Guarantor Subsidiary of the Company&#146;s 2.0% convertible
  senior notes. Tolt is included in the guarantor column for all periods presented and, in August 2006,
  its operations were combined with Comtech Mobile Datacom Corporation. In November 2006, Comtech Vipersat,
  Inc. was merged into Comtech EF Data Corp. The Parent&#146;s expenses associated with supporting
  the operations of its subsidiaries are allocated to the respective Guarantor Subsidiaries and the
  Non-Guarantor Subsidiary. The consolidating financial information presented herein is not utilized
  by the chief operating decision-maker in making operating decisions and assessing performance.</FONT></div></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=bottom><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The following reflects the condensed consolidating balance sheet as of October 31, 2006:</FONT></div></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR align="center" VALIGN=Bottom>
    <th WIDTH=36% nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">Parent</font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif"> Guarantor <br>
      Subsidiaries</font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">Non-Guarantor<br>
      Subsidiary </font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">Consolidating<br>
      Entries</font></b></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><b><font size="1" face="Times New Roman, Times, serif">Consolidated<br>
      Total</font></b></th>
    <th nowrap>&nbsp;</th>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
    <th colspan="2" nowrap><hr size="1" noshade></th>
    <th nowrap>&nbsp;</th>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Current assets:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 241,358,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,306,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,896,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 245,560,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,003,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,003,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>66,156,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,144,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>69,300,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>72,029,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>17,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>72,046,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,469,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>4,805,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>675,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,949,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax asset &#150; current</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>510,000</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,701,000</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>7,211,000</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>243,337,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>152,000,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,732,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>402,069,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Property, plant and equipment, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>902,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>24,143,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>710,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>25,755,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Investment in subsidiaries</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>200,307,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,854,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(206,161,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Goodwill</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>23,440,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>947,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>24,387,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Intangibles with finite lives, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,077,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>878,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,955,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Deferred tax asset &#150; non-current</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>174,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(174,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Deferred financing costs, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,312,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,312,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Other assets, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>56,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>287,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>21,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>364,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Intercompany receivables</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>56,489,000</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(56,489,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 446,914,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>268,290,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>9,462,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(262,824,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 461,842,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="2" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="2" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="2" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="2" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="2" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, serif" SIZE=1>Liabilities and Stockholders&#146; Equity</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Current liabilities:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 348,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>24,602,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,232,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 26,182,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,184,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>27,567,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>717,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>31,468,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer advances and deposits</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,286,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>107,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,393,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred service revenue</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>7,360,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>7,360,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current installments of other obligations</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>138,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>138,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest payable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>525,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>525,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>7,598,000</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,079,000</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>8,677,000</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>11,655,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>65,953,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,135,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>80,743,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Convertible senior notes</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>105,000,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>105,000,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Other obligations, less current installments</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>210,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>210,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Deferred tax liability &#150; non-current</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>4,752,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,820,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(174,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,398,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>

  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Intercompany payables</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>56,016,000</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>473,000</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(56,489,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>177,423,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>67,983,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,608,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(56,663,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>192,351,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Commitments and contingencies</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Stockholders&#146; equity:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,329,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>4,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(4,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,329,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>143,885,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>81,410,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,187,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(86,597,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>143,885,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>123,462,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>118,893,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>667,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(119,560,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>123,462,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>269,676,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>200,307,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,854,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(206,161,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>269,676,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Less:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(185,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(185,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders&#146; equity</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>269,491,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>200,307,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,854,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(206,161,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>269,491,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="1" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders&#146; equity</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 446,914,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>268,290,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>9,462,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(262,824,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 461,842,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR align="center" VALIGN=Bottom>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="2" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="2" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="2" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="2" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
    <th colspan="2"><hr size="2" noshade></th>
    <th><font size="1" face="Times New Roman, Times, serif"></font></th>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>15</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(16)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Condensed Consolidating Financial Information (continued)</U></I></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=bottom><FONT face="Times New Roman, Times, Serif" size=2>The following reflects the condensed consolidating balance sheet as of July 31, 2006:</FONT></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Parent</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Guarantor<BR>
      Subsidiaries</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Non-Guarantor<BR>
      Subsidiary</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Consolidating<BR>
      Entries</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Consolidated<BR>
      Total</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=center><FONT FACE="Times New Roman, Times, serif" SIZE=1>Assets</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Current assets:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 238,298,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>9,949,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,340,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 251,587,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,003,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,003,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>66,025,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>4,022,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>70,047,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>61,043,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>61,043,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,101,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,565,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>512,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>7,178,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax asset &#150; current</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>551,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>7,040,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>7,591,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>239,950,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>150,625,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>7,874,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>398,449,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Property, plant and equipment, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>914,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>23,295,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>523,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>24,732,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Investment in subsidiaries</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>191,046,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,496,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(196,542,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Goodwill</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>21,297,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>947,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>22,244,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Intangibles with finite lives, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,933,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>922,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,855,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Deferred tax asset &#150; non-current</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>174,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(174,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Deferred financing costs, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,449,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,449,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Other assets, net</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>56,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>459,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>22,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>537,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Intercompany receivables</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>59,824,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(59,824,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 434,415,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>266,929,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>10,462,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(256,540,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 455,266,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liabilities and Stockholders&#146; Equity</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Current liabilities:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT bgcolor="#eaf9e8"><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 390,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>27,497,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>450,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 28,337,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current<br>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;liabilities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,683,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>32,806,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,741,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>41,230,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Customer advances and deposits</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,502,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>42,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,544,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Deferred service revenue</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>9,896,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>9,896,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Current installments of other<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;obligations</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>154,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>154,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Interest payable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,050,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,050,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>4,428,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>824,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,252,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>12,551,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>73,855,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,057,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>89,463,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Convertible senior notes</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>105,000,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>105,000,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Other obligations, less current installments</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>243,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>243,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Deferred tax liability &#150; non-current</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>4,707,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,785,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(174,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,318,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Intercompany payables</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>57,915,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,908,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(59,823,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>180,173,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>75,883,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>4,965,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(59,997,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>201,024,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Commitments and contingencies</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Stockholders&#146; equity:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Common stock</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,305,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>4,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(4,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,305,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>139,487,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>81,410,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,187,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(86,597,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>139,487,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>112,635,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>109,632,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>310,000</FONT></TD>
    <TD ALIGN=LEFT><font size="1">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(109,942,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>112,635,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>254,427,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>191,046,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,497,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(196,543,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>254,427,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Less:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Treasury stock</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(185,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(185,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders&#146; equity</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>254,242,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>191,046,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,497,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(196,543,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>254,242,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders&#146;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;equity</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 434,415,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>266,929,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>10,462,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(256,540,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 455,266,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>16</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(16)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Condensed Consolidating Financial Information (continued)</U></I></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The following reflects the condensed consolidating statement of operations for the three months ended
  October 31, 2006:</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Parent</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Guarantor<BR>
      Subsidiaries</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Non-Guarantor<BR>
      Subsidiary</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Consolidating<BR>
      Entries</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Consolidated<BR>
      Total</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap>&nbsp;</TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap>&nbsp;</TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Net sales</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> &#151;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>93,300,000</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,925,000</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(155,000</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 97,070,000</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Cost of sales</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>55,916,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,934,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(155,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>57,695,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Gross profit</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>37,384,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,991,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>39,375,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Expenses:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>15,548,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,039,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>16,587,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Research and development</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,742,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>415,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>7,157,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>605,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>44,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>649,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>22,895,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,498,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>24,393,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Operating income</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>14,489,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>493,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>14,982,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Other expense (income):</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>661,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>34,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>695,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Interest (income) and other</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(3,145,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(18,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(12,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(3,175,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Income before provision for income taxes and <br>
&nbsp;&nbsp;&nbsp;&nbsp;equity in undistributed earnings of subsidiaries</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,484,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>14,473,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>505,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>17,462,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Provision for income taxes</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>919,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,569,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>147,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,635,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Net earnings before equity in undistributed<br>
&nbsp;&nbsp;&nbsp; earnings &nbsp;of subsidiaries</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,565,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>8,904,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>358,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>10,827,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Equity in undistributed earnings of subsidiaries</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>9,262,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>358,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(9,620,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Net income</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 10,827,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>9,262,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>358,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(9,620,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 10,827,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The following reflects the condensed consolidating statement of operations for the three months ended
  October 31, 2005:</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Parent</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Guarantor<BR>
      Subsidiaries</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Non-Guarantor<BR>
      Subsidiary</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Consolidating<BR>
      Entries</FONT></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Consolidated<BR>
      Total</FONT></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
    <TH COLSPAN=2 nowrap><hr size="1" noshade></TH>
    <TH>&nbsp;</TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Net sales</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> &#151;</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>105,059,000</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,551,000</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(43,000</FONT></TD>
    <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 106,567,000</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Cost of sales</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>65,802,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>604,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(43,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>66,363,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Gross profit</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>39,257,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>947,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>40,204,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Expenses:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>15,337,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>711,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>16,048,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Research and development</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,460,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>289,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,749,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangibles</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>552,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>44,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>596,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>22,349,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,044,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>23,393,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Operating income (loss)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>16,908,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(97,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>16,811,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Other expense (income):</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Interest expense</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>662,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>12,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>674,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Interest (income) and other</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(1,820,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>28,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>17,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(1,775,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Income (loss) before provision for (benefit) from income<br>
&nbsp;&nbsp;&nbsp;&nbsp;taxes and equity in undistributed earnings of<br>
&nbsp;&nbsp;&nbsp;&nbsp;subsidiaries</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,158,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>16,868,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(114,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>17,912,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Provision for (benefit) from income taxes</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>431,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,054,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(37,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,448,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Net earnings (loss) before equity in undistributed<br>
&nbsp;&nbsp;&nbsp;&nbsp;earnings of subsidiaries</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>727,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>10,814,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(77,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>11,464,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Equity in undistributed earnings (loss) of<br>
&nbsp;&nbsp;&nbsp;&nbsp;subsidiaries</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>10,737,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(77,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(10,660,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="1" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Net income (loss)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 11,464,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>10,737,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(77,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(10,660,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 11,464,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD colspan="2" ALIGN=RIGHT><hr size="2" noshade></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>17</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>

<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(16)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Condensed Consolidating Financial Information (continued)</U></I></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The following reflects the condensed consolidating statement of cash flows for the three months ended
  October 31, 2006:</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>Parent</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>Guarantor <br>
      Subsidiaries</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>Non-Guarantor<br>
      Subsidiary </FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>Consolidating<br>
      Entries </FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>Consolidated<br>
      Total </FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><HR NOSHADE SIZE=1></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><HR NOSHADE SIZE=1></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><HR NOSHADE SIZE=1></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><HR NOSHADE SIZE=1></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><HR NOSHADE SIZE=1></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=16><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Cash flows from operating activities:</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Net income</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 10,827,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>9,262,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>358,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(9,620,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 10,827,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided by (used in) operating&nbsp;activities: </FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization of property, plant<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and equipment</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>46,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,679,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>43,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,768,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets with finite lives</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>605,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>44,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>649,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of stock-based compensation</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>724,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,085,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,810,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>137,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>137,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of property, plant and equipment</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(4,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(4,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for (recovery of) allowance for doubtful<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;accounts</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>140,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(113,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>27,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for excess and obsolete inventory</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>579,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(29,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>550,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess income tax benefit from stock option&nbsp;exercises</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(295,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(295,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax expense</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>86,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>374,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>460,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in undistributed earnings of subsidiaries</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(9,262,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(358,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>9,620,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intercompany accounts</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(815,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,252,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(1,437,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities, net of effects of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;acquisition:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(271,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>991,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>720,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(11,247,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>12,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(11,235,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(368,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>760,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(163,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>229,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>172,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>173,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(42,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(2,895,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>782,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(2,155,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(3,499,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(6,275,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(1,024,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(10,798,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer advances and deposits</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,784,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>65,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,849,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred service revenue</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(2,536,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(2,536,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest payable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(525,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(525,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,465,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>255,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,720,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating&nbsp;activities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>479,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(3,894,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(214,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(3,629,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=16><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Cash flows from investing activities:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant and equipment</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(34,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(2,509,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(230,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(2,773,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Payments for business acquisition</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(2,191,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(2,191,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(34,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(4,700,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(230,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(4,964,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=16><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Cash flows from financing activities:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>

    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Principal payments on other obligations</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(49,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(49,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Excess income tax benefit from stock option&nbsp;exercises</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>295,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>295,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercises of stock options</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,140,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,140,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of employee stock purchase<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;plan shares</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>180,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>180,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing&nbsp;activities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,615,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(49,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,566,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=16><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash&nbsp;equivalents</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,060,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(8,643,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(444,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(6,027,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents at beginning of period</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>238,298,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>9,949,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,340,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>251,587,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents at end of period</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 241,358,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,306,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>2,896,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 245,560,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>18</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>(16)</FONT></TD>
  <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><I><U>Condensed Consolidating Financial Information (continued)</U></I></FONT></TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD vAlign=top width=48>&nbsp;</TD>
<TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The following reflects the condensed consolidating statement of cash flows for the three months ended
  October 31, 2005:</FONT></div></TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR></TABLE>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=600>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>Parent</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>Guarantor <br>
      Subsidiaries</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>Non-Guarantor<br>
      Subsidiary</FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>Consolidating<br>
      Entries </FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><FONT FACE="Times New Roman, Times, serif" SIZE=1>Consolidated<br>
      Total </FONT></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH><FONT FACE="Times New Roman, Times, serif" SIZE=1></FONT></TH>
    <TH COLSPAN=2><HR NOSHADE SIZE=1></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><HR NOSHADE SIZE=1></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><HR NOSHADE SIZE=1></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><HR NOSHADE SIZE=1></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
    <TH COLSPAN=2><HR NOSHADE SIZE=1></TH>
    <TH><font size="1" face="Times New Roman, Times, serif"></font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=16><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TH>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Cash flows from operating activities:</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Net income (loss)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 11,464,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>10,737,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(77,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(10,660,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 11,464,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income (loss) to net cash<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided by (used in) operating activities:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization of property, plant and<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; equipment</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>25,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,320,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>26,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,371,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets with finite lives</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>552,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>44,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>596,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of stock-based compensation</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>503,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>793,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,296,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>137,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>137,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of property, plant and equipment</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for allowance for doubtful accounts</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>44,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>44,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for excess and obsolete inventory</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>461,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>8,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>469,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess income tax benefit from stock option exercises</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(397,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(397,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax benefit</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(334,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(334,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity in undistributed (earnings) loss of subsidiaries</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(10,737,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>77,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>10,660,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intercompany accounts</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(221,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>72,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>149,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash securing letter of credit <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; obligations</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>31,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>31,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(13,119,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(404,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(13,523,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(4,633,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(15,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(4,648,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(385,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(186,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(74,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(645,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(3,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(2,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(141,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,392,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(36,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,215,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other current liabilities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(1,871,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(370,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(78,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(2,319,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer advances and deposits</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>655,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>153,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>808,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred service revenue</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,668,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,668,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest payable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(525,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(525,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,493,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>6,493,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>4,042,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>3,465,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(303,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>7,204,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=16><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Cash flows from investing activities:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant and equipment</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(23,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(2,842,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(48,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(2,913,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Purchase of other intangibles with finite lives</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(113,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(113,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(23,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(2,955,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(48,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(3,026,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=16><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>Cash flows from financing activities:</FONT></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=RIGHT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD ALIGN=LEFT><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Principal payments on other obligations</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(57,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(57,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Excess income tax benefit from stock option exercises</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>397,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>397,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercises of stock options</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>958,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>958,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of employee stock purchase <br>
&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;plan shares</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>154,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>154,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,509,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(57,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,452,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TH COLSPAN=16><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;</font></TH>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash equivalents</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,528,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>453,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>(351,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>)</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>5,630,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR VALIGN=Bottom bgcolor="#eaf9e8">
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents at beginning of period</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>212,579,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,111,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>723,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>214,413,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=1></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR VALIGN=Bottom>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents at end of period</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 218,107,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>1,564,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>372,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&#151;</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1>$</FONT></TD>
    <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, serif" SIZE=1> 220,043,000</FONT></TD>
    <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE=1>&nbsp;</FONT></TD>
  </TR>
  <TR>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE SIZE=2></TD>
    <TD><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>19</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD colspan="2"></TD></TR>
<TR>
<TD width="12%" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><a name="a5"></a>ITEM 2.</FONT></TD>
<TD align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND<br>
RESULTS OF OPERATIONS</U></FONT></TD>
</TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
<TD align="center">
<P align=left><br>
<FONT face="Times New Roman, Times, Serif" size=2><U>CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS</U></FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>

Certain information in this Quarterly Report on Form 10-Q contains forward-looking statements, including
but not limited to, information relating to our future performance and financial condition, our plans and
objectives and our assumptions regarding such future performance, financial condition, plans and objectives that involve
certain significant known and unknown risks and uncertainties and other factors not under our control which may cause
actual results, future performance and financial condition, and achievement of our plans and objectives to be materially
different from the results, performance or other expectations implied by these forward-looking statements. These factors
include the timing of receipt of, and our performance on, new orders that can cause significant fluctuations in net sales and operating results,
the timing and funding of government contracts, adjustments to gross profits on long-term contracts, risks associated with international
sales, rapid technological change, evolving industry standards, frequent new product announcements and enhancements, changing
customer demands, changes in prevailing economic and political conditions, and other factors described herein and in our
other filings with the Securities and Exchange Commission.</FONT></P>


<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><U>OVERVIEW</U></FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>We design, develop, produce and market innovative products, systems and services for advanced communications solutions. We believe many of our solutions play a vital role in providing or enhancing communication
capabilities when terrestrial communications infrastructure is unavailable or ineffective. </FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>We conduct our business through three complementary segments: telecommunications transmission, mobile data communications and RF microwave amplifiers. We sell our products to a diverse customer base
in the global commercial and government communications markets. We believe we are a leader in the
market segments that we serve.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Our telecommunications transmission segment, which is currently our largest business segment, provides sophisticated equipment and systems that are used to enhance satellite transmission efficiency and
that enable wireless communications in environments where terrestrial communications are unavailable,
inefficient or too expensive. Our mobile data communications segment provides customers with an integrated
solution including mobile satellite transceivers and satellite network support to enable global satellite-based
communications when mobile, real-time, secure transmission is required for applications including
logistics, support and battlefield command and control applications. Our RF microwave amplifiers
segment designs, manufactures and markets solid-state, high-power, broadband RF microwave amplifier products.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" 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 and period-to-period
sales and operating results may be significantly affected by one or more of such contracts. In addition,
our gross profit is affected by a variety of factors, including the mix of products, systems and
services sold, production efficiencies, estimates of warranty expense, price competition and general
economic conditions. Our gross profit may also be affected by the impact of any cumulative adjustments
to contracts that are accounted for under the percentage-of-completion method. 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 align=justify><FONT face="Times New Roman, Times, Serif" size=2>Revenue from the sale of our products is generally recognized when the earnings process is complete, upon shipment or customer acceptance. Revenue from contracts relating to the design, development
or manufacturing of complex electronic equipment to a buyer&#146;s specification or to provide services
relating to the performance of such contracts is recognized using the percentage-of-completion method.
Revenue from contracts that contain multiple elements that are not accounted for under the percentage-of-completion
method are accounted for in accordance with Emerging Issues Task Force (&#147;EITF&#148;) Issue No.
00-21, &#147;Accounting for Revenue Arrangements with Multiple Deliverables.&#148; Revenue from these
contracts is allocated to each respective element based on each element&#146;s relative fair value
and is recognized when the respective revenue recognition criteria for each element are met.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Our contract with the United States (&#147;U.S.&#148;) Army for the Movement Tracking System (&#147;MTS&#148;) is for an eight-year period ending in July 2007 and 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. We recognize service time revenue based on a network availability method which recognizes
prepaid service time on a straight-line basis from the date of shipment through the end of the contract
term in July 2007.</FONT></P></TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>20</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
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<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>In August 2006, we acquired certain assets and assumed certain liabilities of Insite Consulting, Inc. (&#147;Insite&#148;), a logistics application software company, for $3.2 million, including transaction
costs of $0.3 million, plus certain earn-out payments based on the achievement of future sales targets.
The first part of the earn-out cannot exceed $1.4 million and is limited to a five-year period. The
second part of the earn-out, which is for a ten-year period, is unlimited and based on a per unit
future sales target primarily relating to new commercial satellite-based mobile data communication
markets. Insite has developed the geoOps&#153; Enterprise Location Monitoring System, a software-based
solution that allows customers to integrate legacy data systems with near-real time logistics and
operational data systems. Sales and income relating to the Insite assets acquired would not have
been material to our results of operations for the three months ended October 31, 2005 and were not
material for the three months ended October 31, 2006. This operation was combined with our existing
business and is part of the mobile data communications segment.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><U>CRITICAL ACCOUNTING POLICIES</U></FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>We consider certain accounting policies to be critical due to the estimation process involved in each.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Revenue Recognition on Long-Term Contracts. </I></B>Revenues and related costs from long-term contracts relating to the design, development or manufacturing
of complex electronic equipment to a buyer&#146;s specification or to provide services relating to
the performance of such contracts are recognized using the percentage-of-completion method. Revenue
is recognized based on the relationship of total costs incurred to total projected costs, or, alternatively,
based on output measures, such as units delivered. Profits expected to be realized on such contracts
are based on total estimated sales for the contract compared to total estimated costs, including
warranty 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. The impact of any such adjustments discussed in &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations&#148; represents the cumulative
impact of the adjustment on the relevant financial statement amount as of the beginning of the period
being discussed. Estimated losses on long-term contracts are recorded in the period in which the
losses become evident.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Some
of our largest contracts, including our MTS contract with the U.S. Army, 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, expenses
and progress toward completion, particularly on larger or longer-term contracts. If we do not accurately
estimate the total sales, related costs and progress towards completion 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 align=justify><FONT face="Times New Roman, Times, Serif" 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 align=justify><FONT face="Times New Roman, Times, Serif" 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 align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Accounting for Stock-Based Compensation.</I></B> As discussed further in &#147;Notes to Condensed Consolidated Financial Statements &#150; Note (3) <I>Stock-Based Compensation,</I>&#148; we adopted Statement of Financial Accounting Standards (&#147;SFAS&#148;) No. 123(R) on August 1, 2005 using the modified prospective method.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>We have used and expect to continue to use the Black-Scholes option pricing model to compute the estimated fair value of stock-based awards. The Black-Scholes option pricing model includes assumptions regarding
dividend yields, expected volatility, expected option term and risk-free interest rates. The assumptions
used in computing the fair value of stock-based awards reflect our best estimates, but involve uncertainties
relating to market and other conditions, many of which are outside of our control. We estimate expected
volatility by considering the historical volatility of our stock, the implied volatility of publicly
traded stock options in our stock and our expectations of volatility for the expected term of stock-based
compensation awards. As a result, if other assumptions or estimates had been used for options granted
to date, the</FONT></P>
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<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>stock-based compensation expense that was recorded for the three months ended October 31, 2006 and
2005 could have been materially different. Furthermore, if different assumptions are used in future
periods, stock-based compensation expense could be materially impacted in the future.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Impairment of Goodwill and Other Intangible Assets.</I></B> As of October 31, 2006, our goodwill and other intangible assets, aggregated $31.3 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 align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Provision for Warranty Obligations. </I></B>We provide warranty coverage for most of our products, including products under long-term contracts,
for a period of at least one year from the date of shipment. We record a liability for estimated
warranty expense based on historical claims, product failure rates and other factors. There exist
inherent risks and uncertainties in estimating warranty expenses, particularly on larger or longer-term
contracts. As such, if we do not accurately estimate our warranty costs, any changes to our original
estimates could be material to our results of operations and financial position.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Accounting for Income Taxes. </I></B>Our deferred tax assets and liabilities are determined based on temporary differences between financial
reporting and tax bases of assets and liabilities, applying enacted tax rates expected to be in effect
for the year in which the differences are expected to reverse. The provision for income taxes is
based on domestic and international statutory income tax rates in the tax jurisdictions where we
operate, permanent differences between financial reporting and tax reporting and available credits
and incentives. Significant judgment is required in determining income tax provisions and tax positions.
We may be challenged upon review by the applicable taxing authority and positions taken by us may
not be sustained. We provide tax reserves for tax exposures relating to periods subject to audit.
The development of reserves for these exposures requires consideration of timing and judgments about
tax issues and potential outcomes, and is a subjective critical estimate. In certain circumstances,
the ultimate outcome of exposures and risks involves significant uncertainties. If actual outcomes
differ materially from these estimates, they could have a material impact on our results of operations
and our financial position.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Provisions for Excess and Obsolete Inventory. </I></B>We 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 align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Allowance for Doubtful Accounts. </I></B>We perform 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. We
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 the 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 align=justify><FONT face="Times New Roman, Times, Serif" size=2><U>COMPARISON OF THE RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED OCTOBER 31, 2006 AND OCTOBER 31,
2005</U></FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Net Sales. </I></B>Consolidated net sales were $97.1 million and $106.6 million for the three months ended October 31,
2006 and 2005, respectively, representing a decrease of $9.5 million, or 8.9%. The decrease in net
sales reflects growth in the telecommunications transmission segment offset by lower sales, as anticipated,
in the mobile data communications and RF microwave amplifiers segments.</FONT></P>
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<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Net sales in our telecommunications transmission segment were $52.0 million and $50.9 million for the
three months ended October 31, 2006 and 2005, respectively, an increase of $1.1 million, or 2.2%.
Sales in this segment reflect continued strong demand for our satellite earth station products, offset
by lower sales, as anticipated, of over-the-horizon microwave systems, both direct and indirect,
to a North African country who we believe is in between major phases of a large program. We anticipate
average quarterly sales of our over-the-horizon microwave systems products to increase for the remainder
of fiscal 2007 as we expect to begin large deliveries of our 16 Mbps troposcatter modem upgrade kits
for use on the U.S. Department of Defense&#146;s (&#147;DoD&#148;) AN/TRC-170 digital troposcatter
terminals. Sales in the over-the-horizon microwave systems product line can fluctuate dramatically
from period to period based on the receipt of large contracts and our performance thereon. Our telecommunications
transmission segment represented 53.6% and 47.7% of consolidated net sales for three months ended
October 31, 2006 and 2005, respectively.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Net sales in our mobile data communications segment were $35.7 million and $39.4 million for the three
months ended October 31, 2006 and 2005, respectively, a decrease of $3.7 million, or 9.4%. The decrease
in net sales was due to the impact of our decision, made in fiscal 2006, to significantly de-emphasize
stand-alone sales of low margin turnkey employee mobility solutions. Net sales during the three months
ended October 31, 2006 were positively impacted by $1.2 million relating to the MTS gross profit
adjustment discussed below. We expect average quarterly sales in our mobile data communications segment
to increase for the remainder of fiscal 2007 due to deliveries on actual and anticipated new orders
from the U.S. Army and Army National Guard for ongoing support of MTS program activities. Quarterly
sales and profitability in our mobile data communications segment can fluctuate dramatically due
to quarterly government funding fluctuations. In addition, if the MTS contract, which expires in July 2007, is not
renewed, extended or if we fail to succeed in a recompete process, it would have a material adverse impact
on our business and results of operations. Our mobile data communications segment represented 36.7% and 37.0%
of consolidated net sales for the three months ended October 31, 2006 and 2005, respectively.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Net sales in our RF microwave amplifiers segment were $9.4 million for the three months ended October
31, 2006, compared to $16.3 million for the three months ended October 31, 2005, a decrease of $6.9
million, or 42.3%. The decrease in net sales was due to lower sales, as anticipated, of our amplifiers
that are incorporated into improvised explosive device jamming systems. Our RF microwave amplifiers
segment represented 9.7% and 15.3% of consolidated net sales for the three months ended October 31,
2006 and 2005, respectively.</FONT></P>
      <P align=justify><FONT face="Times New Roman, Times, Serif" size=2>International
        sales (which include sales to U.S. companies for inclusion in products
        which are sold to international customers) represented 29.4% and 38.9%
        of consolidated net sales for the three months ended October 31, 2006
        and 2005, respectively. Domestic commercial sales represented 14.3% and
        13.7% of consolidated net sales for the three months ended October 31,
        2006 and 2005, respectively. Sales to the U.S. government (including sales
        to prime contractors to the U.S. government) represented 56.3% and 47.4%
        of consolidated net sales for the three months ended October 31, 2006
        and 2005, respectively.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>During the three months ended October 31, 2006 and 2005, one customer, a prime contractor, represented
6.4% and 12.5% of consolidated net sales. Direct and indirect sales to a North African country (including
certain sales to the prime contractor mentioned above) during the three months ended October 31,
2006 and 2005 represented 3.7% and 15.3% of consolidated net sales, respectively.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Gross Profit.</I></B> &nbsp;Gross profit was $39.4 million and $40.2 million for the three months ended October 31, 2006
and 2005, respectively, representing a decrease of $0.8 million, or 2.0%. The decrease in gross profit
was primarily attributable to the decrease in net sales discussed above, partially offset by an increase
in the gross profit percentage to 40.6% for the three months ended October 31, 2006 from 37.7% for
the three months ended October 31, 2005. </FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Excluding the impact of favorable cumulative gross profit adjustments in both periods, our gross profit
as a percentage of net sales for the three months ended October 31, 2006 and 2005 would have been
39.9% and 37.2%, respectively. The increase in the gross profit percentage noted above was primarily
due to: (i) a higher proportion of our consolidated net sales occurring in our telecommunications
transmission segment, which typically realizes higher margins than our other two segments, (ii) increased
operating efficiencies in our mobile data communications segment, including the benefit of our decision
to significantly de-emphasize stand-alone sales of low margin turnkey employee mobility solutions
to further focus our efforts on selling commercial satellite-based mobile data applications, and
(iii) the reduction in our estimated reserve for warranty obligations by $0.5 million due to lower
than anticipated claims received to date on a large over-the-horizon microwave system contract whose
warranty period is nearing expiration. As discussed in our &#147;Critical Accounting Policies &#150;
Provision for Warranty Obligations,&#148; we periodically review and update our estimate of future warranty expense.</FONT></P>
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<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>During the three months ended October 31, 2006, we recorded a favorable cumulative gross profit adjustment
of $1.1 million in our mobile data communications segment primarily as a result of our ongoing review
of total estimated contract revenues and costs, and the related gross profit at completion, on the
MTS contract. We continue to rollout our next
generation satellite transceiver, known as the MT 2012, and enhance our network and related software
to provide increased speed and performance. We are working closely with our customers and currently
expect to continue these initiatives. If the current funding levels of MTS and battlefield command
and control applications are maintained or increased, or if and when we receive additional orders
from the Army National Guard, we may experience additional increased operating efficiencies in fiscal
2007. Unrelated to the next generation MTS technology upgrade, we are also continuing to upgrade
certain of our firmware that needs to be modified. The ultimate amount of warranty expense relating
to this firmware upgrade could differ from our initial estimate and we may incur additional unanticipated
costs or delays.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>During the three months ended October 31, 2005, we increased the estimated gross profit at completion
on certain contracts in the RF microwave amplifiers segment. These adjustments resulted in an aggregate
$0.5 million cumulative increase to gross profit recognized on these contracts in prior years.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Included in cost of sales for the three months ended October 31, 2006 and 2005 are provisions for excess
and obsolete inventory of $0.6 million and $0.5 million, respectively. As discussed in our &#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 projected
usage assumptions.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Selling, General and Administrative Expenses.</I></B> &nbsp;Selling, general and administrative expenses were $16.6 million and $16.0 million for the three
months ended October 31, 2006 and 2005, respectively, representing an increase of $0.6 million, or
3.8%. The increase in expenses was primarily attributable to higher payroll-related expenses (including
increased amortization of stock-based compensation expense) recorded in the three months ended October
31, 2006 compared to the three months ended October 31, 2005, offset in part by lower expenses in
our mobile data communications segment as we continue to de-emphasize stand-alone sales of low margin
turnkey employee mobility solutions. The increase in payroll-related expenses is due, in part, to the increased
headcount associated with the anticipated increase in sales for fiscal 2007 compared to fiscal 2006.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Amortization of stock-based compensation expense recorded as selling, general and administrative expenses
increased to $1.4 million from $1.1 million for the three months ended October 31, 2006 and 2005,
respectively. As a percentage of consolidated net sales, selling, general and administrative expenses
were 17.1% and 15.0% for the three months ended October 31, 2006 and 2005, respectively.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Research and Development Expenses.</I></B> &nbsp;Research and development expenses were $7.2 million and $6.7 million for the three months ended October
31, 2006 and 2005, respectively. Approximately $4.9 million and $5.1 million of such amounts, respectively,
related to our telecommunications transmission segment, with the remaining expenses primarily related
to our mobile data communications segment and, to a lesser extent, our RF microwave amplifiers segment.
</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>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 October
31, 2006 and 2005, customers reimbursed us $1.8 million and $0.5 million, respectively, which is
not reflected in the reported research and development expenses, but is included in consolidated
net sales with the related costs included in cost of sales.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Amortization of stock-based compensation recorded as research and development expenses increased to
$0.2 million from $0.1 million for the three months ended October 31, 2006 and 2005, respectively.
As a percentage of consolidated net sales, research and development expenses were 7.4% and 6.3% for
the three months ended October 31, 2006 and 2005, respectively.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Amortization of Intangibles. </I></B>Amortization of intangibles for both the three months ended October 31, 2006 and 2005 was $0.6 million.
The amortization primarily relates to intangibles with finite lives that we acquired in connection
with various acquisitions (including our acquisition of Insite).</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Operating Income. &nbsp;</I></B> Operating income for the three months ended October 31, 2006 and 2005 was $15.0 million and $16.8
million, respectively. The $1.8 million, or 10.7% decrease, was primarily the result of lower sales
and increased operating expenses (including research and development), partially offset by a higher
gross profit percentage, as discussed above.</FONT></P>
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<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Operating income in our telecommunications transmission segment increased to $12.9 million for the
three months ended October 31, 2006 from $12.2 million for the three months ended October 31, 2005
as a result of increased net sales, partially offset by higher operating expenses. </FONT></P>


<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Our mobile data communications segment generated operating income of $6.1 million for the three months
ended October 31, 2006 compared to $4.2 million for the three months ended October 31, 2005. The
increase in operating income was due to operating efficiencies achieved, including the benefit of
lower operating expenses as we continue to de-emphasize stand-alone sales of low margin turnkey employee
mobility solutions. As discussed above under &#147;<I>Gross Profit</I>,&#148; included in the three months ended October 31, 2006, is a cumulative adjustment related to
our MTS contract with the U.S. Army which favorably impacted operating income by $1.0 million.</FONT></P>


<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Operating income in our RF microwave amplifier segment decreased to $0.9 million for the three months
ended October 31, 2006 from $4.2 million for the three months ended October 31, 2005, due primarily
to lower net sales during the three months ended October 31, 2006. As discussed above under &#147;<I>Gross Profit</I>,&#148; included
in the three months ended October 31, 2005, is a cumulative adjustment relating to certain contracts which favorably impacted operating income by $0.5&nbsp;million.
</FONT></P>




<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Unallocated operating expenses increased to $4.9 million for the three months ended October 31, 2006
from $3.8 million for the three months ended October 31, 2005 due primarily to higher payroll-related
expenses (including increased amortization of stock-based compensation expense). Amortization of
stock-based compensation expense increased to $1.8 million from $1.3 million, for the three months
ended October 31, 2006 and 2005, respectively. </FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Interest Expense. &nbsp;</I></B> Interest expense was $0.7 million for both the three months ended October 31, 2006 and 2005. Interest
expense primarily represents interest associated with our 2.0% convertible senior notes issued in
January 2004.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Interest Income. &nbsp;</I></B> Interest income for the three months ended October 31, 2006 was $3.2 million, as compared to $1.8
million for three months ended October 31, 2005. The $1.4 million increase was due primarily to an
increase in interest rates and additional investable cash since October 31, 2005. </FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><B><I>Provision for Income Taxes. </I></B>&nbsp;The provision for income taxes was $6.6 million and $6.4 million for the three months ended October
31, 2006 and 2005, respectively. Our effective tax rate was 38.0% and 36.0% for the three months
ended October 31, 2006 and 2005, respectively. The increase in the effective tax rate was primarily
attributable to the expiration, in December 2005, of the Federal research and experimentation credit
and the scheduled phase-out of the extraterritorial income exclusion in December 2006. The U.S. Congress
continues to discuss legislation relating to the Federal research and experimentation credit. Until
final legislation is signed into law, we currently expect our effective tax rate for fiscal 2007
to approximate 38.0%. In addition, at the 2006 Annual Meeting of Stockholders to be held on December&nbsp;5, 2006, our stockholders
will consider a proposal to amend our
2000 Stock Incentive Plan (the &#147;Plan&#148;) intended to permit us to claim tax deductions for
cash incentive awards earned and paid under the Plan without limitation under Section 162(m) of the
Internal Revenue Code. If the amendment is approved by our stockholders and we pay cash incentive awards under the Plan,
our effective tax rate for fiscal 2007 could be lower.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>In fiscal 2006, we were informed by the Internal Revenue Service that our Federal income tax return
for the fiscal year ended July 31, 2004 was selected for audit. The audit is ongoing and additional
income tax returns for other fiscal years may be examined. If the outcome of the audit differs materially
from our original income tax provisions, it could have a material adverse impact on our results of
operations and financial position.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><U>LIQUIDITY AND CAPITAL RESOURCES </U></FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Our unrestricted cash and cash equivalents decreased to $245.6 million at October 31, 2006 from $251.6
million at July 31, 2006. </FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Net cash used in operating activities was $3.6 million for the three months ended October 31, 2006.
Such amount reflects net income of $10.8 million, the impact of depreciation and amortization and
the provisions for doubtful accounts and inventory reserves aggregating $3.1 million and amortization
of stock-based compensation expense of $1.8 million, offset by changes in working capital balances,
most notably an increase in inventory that we currently anticipate to be delivered to our customers
(primarily the U.S. government) throughout fiscal 2007, as well as the timing of payments for accounts
payable and certain accrued expenses during the three months ended October 31, 2006.</FONT></P>
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<TD>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Net cash used in investing activities for the three months ended October 31, 2006 was $5.0 million,
of which $2.8 million was for purchases of property, plant and equipment including expenditures related
to the continued expansion of our high-volume technology manufacturing center located in Tempe, Arizona
and the continued enhancement of our network operations facility in Germantown, Maryland. During
the three months ended October 31, 2006, we also made payments of $2.2 million in connection with
the Insite acquisition.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Net cash provided by financing activities was $2.6 million for the three months ended October 31, 2006,
due primarily to proceeds from stock option exercises and employee stock purchase plan shares aggregating
$2.3 million and a $0.3 million excess tax benefit from the exercise of stock options.</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><U>FINANCING ARRANGEMENT</U></FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>On January 27, 2004, we issued $105.0 million of our 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 $101.2 million after deducting the initial purchaser&#146;s discount and other transaction costs.
For further information concerning this financing, see &#147;Notes to Condensed Consolidated Financial
Statements &#150; Note (9) <I>2.0% Convertible Senior Notes</I>.&#148;</FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2><U>COMMITMENTS</U></FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" 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. We do not expect that these
commitments as of October 31, 2006 will materially adversely affect our liquidity. </FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>At October 31, 2006, we had contractual cash obligations to repay our 2.0% convertible senior notes,
capital lease and operating lease obligations (including satellite lease expenditures relating to
our mobile data communications segment contracts) and the financing of a purchase of proprietary
technology. Payments due under these long-term obligations, excluding interest on the 2% convertible
senior notes, are as follows:</FONT></P></TD></TR>
<TR>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>&nbsp;</FONT></TD></TR></TABLE>
<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr>
    <td>&nbsp;</td>
    <td colspan="14"><hr size="1" noshade></td>
    <td>&nbsp;</td>
  </tr>
  <tr align="center" valign=Bottom>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <th colspan="14"><b><font size="1" face="Times New Roman, Times, serif">Obligations
      due by fiscal year (in thousands)</font></b></th>
    <td><font size="1" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="14"><hr size="1" noshade></td>
    <td>&nbsp;</td>
  </tr>
  <tr align="center" valign=Bottom>
    <th colspan="16"><font size="1" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></th>
  </tr>
  <tr align="center" valign=Bottom>
    <th>&nbsp;</th>
    <th colspan="2"><b><font size="1" face="Times New Roman, Times, serif">Total</font></b></th>
    <th>&nbsp;</th>
    <th colspan="2"><b><font size="1" face="Times New Roman, Times, serif">Remainder<br>
      of<br>
      2007 </font></b></th>
    <th>&nbsp;</th>
    <th colspan="2"><b><font size="1" face="Times New Roman, Times, serif">2008<br>
      and<br>
      2009</font></b></th>
    <th>&nbsp;</th>
    <th colspan="2"><b><font size="1" face="Times New Roman, Times, serif">2010
      <br>
      and <br>
      2011 </font></b></th>
    <th>&nbsp;</th>
    <th colspan="2"><b><font size="1" face="Times New Roman, Times, serif">After
      2011</font></b></th>
    <th>&nbsp;</th>
  </tr>
  <tr align="center" valign=Bottom>
    <th>&nbsp;</th>
    <th colspan="2"><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan="2"><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan="2"><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan="2"><hr size="1" noshade></th>
    <th>&nbsp;</th>
    <th colspan="2"><hr size="1" noshade></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>2.0% convertible
      senior notes</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td width=10% align=RIGHT nowrap><font face="Times New Roman, Times, Serif" size=2>
      105,000</font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=10% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=10% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=10% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td width=10% align=RIGHT nowrap><font face="Times New Roman, Times, Serif" size=2>105,000</font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Operating
      lease commitments</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>14,101</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,612</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,345</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,346</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>798</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr>
    <td></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=3></td>
  </tr>
  <tr valign=Bottom bgcolor="#eaf9e8">
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other obligations</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>387</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>124</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>150</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>113</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="1" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="1" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="1" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="1" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="1" noshade></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Total contractual
      cash obligations</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 119,488</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,736</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,495</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,459</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>105,798</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="2" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="2" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="2" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="2" noshade></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="2" align=RIGHT><hr size="2" noshade></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>As further discussed in &#147;Notes to Condensed Consolidated Financial Statements &#150; Note (9) <I>2.0% Convertible Senior Notes,</I>&#148; we may, at our option, redeem some or all of the notes on or after February 4, 2009.
      Holders of our 2% convertible senior notes will have the right to require us to repurchase some or all of
    the outstanding notes on February 1, 2011, February 1, 2014 and February 1, 2019 and upon certain events.</FONT></div></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><div align="justify"><FONT face="Times New Roman, Times, Serif" 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 October 31, 2006, the balance of these
      agreements was $2.8 million. Cash we have pledged against such agreements aggregating $1.0 million
    has been classified as restricted cash in the consolidated balance sheet as of October 31, 2006.</FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top>
<P align=justify><FONT face="Times New Roman, Times, Serif" size=2>We believe that our cash and cash equivalents will be sufficient to meet our operating cash requirements for 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>
</TD></TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>26</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>

<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="10%"><FONT face="Times New Roman, Times, Serif" size=2><a name="a6"></a>Item 3.</FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2><U>Quantitative and Qualitative Disclosures about Market Risk</U></FONT></td>
  </tr>
</table>

<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Our earnings and cash flows are subject to fluctuations due to changes in interest rates primarily
      from our investment of available cash balances. Under our current policies, we do not use interest
      rate derivative instruments to manage exposure to interest rate changes. If the interest rate we
      receive on our investment of available cash balances were to change by 10%, our annual interest income
      would be impacted by approximately $1.2 million.</FONT></P>
      <P align=justify><FONT face="Times New Roman, Times, Serif" size=2>Our 2.0% convertible senior notes bear a fixed rate of interest. As such, our earnings and cash flows
        are not sensitive to changes in interest rates on our long-term debt. As of October 31, 2006, we
        estimate the fair market value of our 2.0% convertible senior notes to be $130.1 million based on
    recent trading activity.</FONT></P></td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2><a name="a7"></a>Item 4.</FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2><U>Controls and Procedures </U></FONT></td>
  </tr>
</table>

<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD><P align=justify><FONT face="Times New Roman, Times, Serif" 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>
    <P align=center><FONT face="Times New Roman, Times, Serif" size=2><U>PART II</U></FONT><br>
        <FONT face="Times New Roman, Times, Serif" size=2><U>OTHER INFORMATION</U></FONT></P></TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
</TR></TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="10%"><FONT face="Times New Roman, Times, Serif" size=2><a name="a8"></a>Item 1. </FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2><U>Legal Proceedings</U></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>See Note (14) of the &#147;Notes to Condensed Consolidated Financial Statements&#148; in Part I, Item
1 of this Form 10-Q for information regarding legal proceedings. </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="10%"><FONT face="Times New Roman, Times, Serif" size=2><a name="a9"></a>Item 1A. </FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2><U>Risk Factors</U></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td><FONT face="Times New Roman, Times, Serif" size=2>There have been no material changes from the risk factors previously disclosed in the Company&#146;s
Form 10-K for the fiscal year ended July 31, 2006, except as discussed below.</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>

<!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
<TABLE WIDTH=600 CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>We could be adversely affected if
KPMG LLP (&#147;KPMG&#148;), our independent registered public accounting firm, is not
deemed independent with respect to our financial statements.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
      <P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On November
        30, 2006, KPMG, our independent registered public accounting firm, advised
        us that it believed that one of its staff accountants who worked on the
        engagement to audit our financial statements made an investment in our
        common stock. On December 16, 2006, both KPMG and the Audit Committee
        of our Board of Directors separately concluded that KPMG&#146;s independence
        has not been compromised. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company and KPMG have reported
their conclusions regarding this matter to the SEC. If the SEC or the Public Company
Accounting Oversight Board ultimately determines that KPMG is not independent with
respect to us, we would incur significant additional costs associated with changing
independent registered public accounting firms (including the re-auditing and
re-reviewing of previously issued financial statements). In addition, certain of our
earlier filings with the SEC would not be in compliance with Rule 10-01(d) and other
rules and regulations of the SEC and those filings would need to be amended. As a result,
there could be a material adverse effect on the Company and on the market price of our
stock.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" -->
</TD>
</TR>
</TABLE>


<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>27</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>


<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="10%"><FONT face="Times New Roman, Times, Serif" size=2><a name="a10"></a>Item 6.</FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2><U>Exhibits</U></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%"><FONT face="Times New Roman, Times, Serif" size=2>(a)</FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>Exhibits</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=5%></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><A HREF="d70159_ex31-1.htm">Exhibit 31.1 - Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</A></FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><A HREF="d70159_ex31-2.htm">Exhibit 31.2 - Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</A></FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><a href="d70159_ex32-1.htm">Exhibit 32.1 - Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the</a><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="d70159_ex32-1.htm">Sarbanes-Oxley Act of 2002</a></FONT></TD>
</TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top>&nbsp;</TD></TR>
<TR>
<TD vAlign=top></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><a href="d70159_ex32-2.htm">Exhibit 32.2 - Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of the</a><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a href="d70159_ex32-2.htm">Sarbanes-Oxley Act of 2002</a></FONT></TD>
</TR></TABLE>

<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>28</FONT></P>
<HR color=gray noShade SIZE=5>
</TD></TR></TABLE>
<P style="PAGE-BREAK-AFTER: always"></P><PAGE><BR>

<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD>
<P align=center><FONT face="Times New Roman, Times, Serif" size=2><U><a name="a11"></a>SIGNATURES</U></FONT></P>
<P align=justify><FONT face="Times New Roman, Times, Serif" 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></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
<TD align="center" vAlign=top><FONT face="Times New Roman, Times, Serif" size=2><U>COMTECH TELECOMMUNICATIONS CORP.</U></FONT><br>
  <FONT face="Times New Roman, Times, Serif" size=2>(Registrant)</FONT></TD></TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
<TR>
  <TD vAlign=top>&nbsp;</TD>
</TR>
</TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%"><FONT face="Times New Roman, Times, Serif" size=2>Date:&nbsp;&nbsp;December 18, 2006</FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By:<U> /s/ Fred Kornberg&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=55%><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Fred Kornberg</FONT></TD>
</TR>
<TR>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Chairman of the Board</FONT></TD>
</TR>
<TR>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Chief Executive Officer and President</FONT></TD>
</TR>
<TR>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(Principal Executive Officer)</FONT></TD>
</TR></TABLE>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="50%"><FONT face="Times New Roman, Times, Serif" size=2>Date:&nbsp;&nbsp;December 18, 2006</FONT></td>
    <td><FONT face="Times New Roman, Times, Serif" size=2>By:<U> /s/ Michael D. Porcelain&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR>
<TD vAlign=top width=55%><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Michael D. Porcelain</FONT></TD>
</TR>
<TR>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Senior Vice President and</FONT></TD>
</TR>
<TR>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>Chief Financial Officer</FONT></TD>
</TR>
<TR>
<TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
<TD vAlign=top><FONT face="Times New Roman, Times, serif" size=2>(Principal Financial and Accounting Officer)</FONT></TD>
</TR></TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">

<TR vAlign=top>
<TD width="600"><BR>
<P align=center><FONT face="TIMES NEW ROMAN, TIMES, SERIF" size=2>29</FONT></P>
<HR color=gray noShade SIZE=5>
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`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>3
<FILENAME>d70159_ex31-1.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<html>
<head>
<TITLE></TITLE>
</head>
<body>
<table width="600" border="0" cellspacing="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT face="Times New Roman, Times, serif" size=2><B>EXHIBIT 31.1</B></FONT></td>
  </tr>
  <tr>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>CERTIFICATION PURSUANT TO</B></FONT></td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</B></FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top><FONT face="Times New Roman, Times, Serif" size=2>I, Fred Kornberg, certify that:</FONT></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top width=24></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>1.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>I have reviewed this quarterly report on Form 10-Q/A of Comtech Telecommunications Corp.;</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=24></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>2.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>Based on my knowledge, this 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 report;</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=24></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>3.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>Based on my knowledge, the financial statements, and other financial information included in this 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 report;</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=24></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>4.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top width=72></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(a)</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" 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 report is being prepared;</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=72></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=72></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(c)</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=72></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(d)</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>disclosed in this 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></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top width=24></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>5.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" 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></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top width=72></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(a)</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" 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></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=72></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" 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></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0">
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>Date: December 18, 2006 </FONT></td>
    <td colspan="2" valign="bottom"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="50%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2" valign="bottom"><FONT face="Times New Roman, Times, serif" size=2>/s/ Fred Kornberg</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td colspan="2"><hr align="left" width="250" size="1"></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="1%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign="top"><FONT face="Times New Roman, Times, serif" size=2>Fred Kornberg</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign="top"><FONT face="Times New Roman, Times, serif" size=2>Chairman of the Board</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign="top"><FONT face="Times New Roman, Times, serif" size=2> Chief Executive Officer and President</FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR vAlign=top>
    <TD width="600"><BR>
        <P align=center><FONT face="Times New Roman, Times, Serif" size=2>30</FONT></P>
        <HR color=gray noShade SIZE=5>
    </TD>
  </TR>
</TABLE>
</body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>4
<FILENAME>d70159_ex31-2.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<html>
<head>
<TITLE></TITLE>
</head>

<body>
<table width="600" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT face="Times New Roman, Times, serif" size=2><B>EXHIBIT 31.2</B></FONT></td>
  </tr>
  <tr>
    <td align="center"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, serif" size=2><B>CERTIFICATION PURSUANT TO</B></FONT></td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, serif" size=2><B>SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</B></FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>I, Michael D. Porcelain, certify that:</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top width=24></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>1.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>I have reviewed this quarterly report on Form 10-Q/A of Comtech Telecommunications Corp.;</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=24></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, serif" size=2>2.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, serif" size=2>Based on my knowledge, this 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 report;</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width=24></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, serif" size=2>3.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, serif" size=2>Based on my knowledge, the financial statements, and other financial information included in this 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 report;</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width=24></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, serif" size=2>4.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, serif" 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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</FONT></div></TD>
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  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top width=72></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, serif" size=2>(a)</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, serif" 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 report is being prepared;</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width=72></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, serif" size=2>(b)</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, serif" size=2>designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width=72></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, serif" size=2>(c)</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, serif" size=2>evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width=72></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, serif" size=2>(d)</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, serif" size=2>disclosed in this 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></div></TD>
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  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top width=24><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, serif" size=2>5.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, serif" 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></div></TD>
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  <TR>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
    <TD vAlign=top><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></TD>
  </TR>
</TABLE>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top width=72></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(a)</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" 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></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top><font size="2">&nbsp;</font></TD>
    <TD vAlign=top><font size="2">&nbsp;</font></TD>
  </TR>
  <TR>
    <TD vAlign=top width=72></TD>
    <TD vAlign=top width=24><FONT face="Times New Roman, Times, Serif" size=2>(b)</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" 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></div></TD>
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</TABLE>
<table width="600" border="0" cellspacing="0">
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td><FONT face="Times New Roman, Times, serif" size=2>Date: December 18, 2006 &nbsp;</FONT></td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="50%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><FONT face="Times New Roman, Times, serif" size=2>/s/ Michael D. Porcelain</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;</font></td>
    <td colspan="2"><hr align="left" width="250" size="1"></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="1%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2>Michael D. Porcelain</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><FONT face="Times New Roman, Times, serif" size=2> Senior Vice President and Chief Financial Officer</FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR vAlign=top>
    <TD width="600"><BR>
        <P align=center><FONT face="Times New Roman, Times, Serif" size=2>31</FONT></P>
        <HR color=gray noShade SIZE=5>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>5
<FILENAME>d70159_ex32-1.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<html>
<head> <TITLE></TITLE>
</head>
<body>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT face="Times New Roman, Times, Serif" size=2><B>Exhibit 32.1</B></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO</B></FONT></td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>In connection with the Quarterly Report of Comtech Telecommunications Corp. (the &#147;Company&#148;) on Form 10-Q/A for the period ended October 31, 2006 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. &#167; 1350, as adopted pursuant to &#167; 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:</FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top width=25><FONT face="Times New Roman, Times, Serif" size=2>1.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The Report fully complies with requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=15><FONT face="Times New Roman, Times, Serif" size=2>2.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top>&nbsp;</TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0">
  <tr>
    <td width="50%"><FONT face="Times New Roman, Times, serif" size=2>Date: December 18, 2006 </FONT></td>
    <td colspan="2" valign="bottom"><FONT face="Times New Roman, Times, serif" size=2>/s/ Fred Kornberg</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><hr align="left" width="250" size="1"></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="1%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign="top"><FONT face="Times New Roman, Times, serif" size=2>Fred Kornberg</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign="top"><FONT face="Times New Roman, Times, serif" size=2>Chairman of the Board</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign="top"><FONT face="Times New Roman, Times, serif" size=2> Chief Executive Officer and President</FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR vAlign=top>
    <TD width="600"><BR>
        <P align=center><FONT face="Times New Roman, Times, Serif" size=2>32</FONT></P>
        <HR color=gray noShade SIZE=5>
    </TD>
  </TR>
</TABLE>
</body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>6
<FILENAME>d70159_ex32-2.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<html>
<head> <TITLE></TITLE>
</head>

<body>
<table width="600" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td align="right">&nbsp;</td>
  </tr>
  <tr>
    <td align="right"><FONT face="Times New Roman, Times, Serif" size=2><B>Exhibit 32.2</B></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO</B></FONT></td>
  </tr>
  <tr>
    <td align="center"><FONT face="Times New Roman, Times, Serif" size=2><B>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B></FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>In connection with the Quarterly Report of Comtech Telecommunications Corp. (the &#147;Company&#148;) on Form 10-Q/A for the period ended October 31, 2006 as filed with the Securities and Exchange Commission on the date hereof (the &#147;Report&#148;), I, Michael D. Porcelain, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. &#167; 1350, as adopted pursuant to &#167; 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:</FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR>
    <TD vAlign=top width=25><FONT face="Times New Roman, Times, Serif" size=2>1.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The Report fully complies with requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</FONT></div></TD>
  </TR>
  <TR>
    <TD vAlign=top></TD>
    <TD vAlign=top>&nbsp;</TD>
  </TR>
  <TR>
    <TD vAlign=top width=15><FONT face="Times New Roman, Times, Serif" size=2>2.</FONT></TD>
    <TD vAlign=top><div align="justify"><FONT face="Times New Roman, Times, Serif" size=2>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</FONT></div></TD>
  </TR>
</TABLE>
<table width="600" border="0" cellspacing="0">
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td width="50%"><FONT face="Times New Roman, Times, serif" size=2>Date: December 18, 2006 </FONT></td>
    <td colspan="2" valign="bottom"><FONT face="Times New Roman, Times, serif" size=2>/s/ Michael D. Porcelain</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td colspan="2"><hr align="left" width="250" size="1"></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td width="1%"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign="top"><FONT face="Times New Roman, Times, serif" size=2>Michael D. Porcelain</FONT></td>
  </tr>
  <tr>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td valign="top"><FONT face="Times New Roman, Times, serif" size=2> Senior Vice President and Chief Financial Officer</FONT></td>
  </tr>
</table>
<TABLE cellSpacing="0" cellPadding="0" width="600" border="0">
  <TR vAlign=top>
    <TD width="600"><BR>
        <P align=center><FONT face="Times New Roman, Times, Serif" size=2>33</FONT></P>
        <HR color=gray noShade SIZE=5>
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</TABLE>
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</DOCUMENT>
</SEC-DOCUMENT>
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