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<SEC-DOCUMENT>0000926236-07-000039.txt : 20070510
<SEC-HEADER>0000926236-07-000039.hdr.sgml : 20070510
<ACCEPTANCE-DATETIME>20070510144913
ACCESSION NUMBER:		0000926236-07-000039
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20070331
FILED AS OF DATE:		20070510
DATE AS OF CHANGE:		20070510

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HENRY JACK & ASSOCIATES INC
		CENTRAL INDEX KEY:			0000779152
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
		IRS NUMBER:				431128385
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-14112
		FILM NUMBER:		07837016

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 807
		STREET 2:		663 HWY 60
		CITY:			MONETT
		STATE:			MO
		ZIP:			65708-0807
		BUSINESS PHONE:		4172356652

	MAIL ADDRESS:	
		STREET 1:		PO BOX 807
		STREET 2:		663 HWY 60
		CITY:			MONETT
		STATE:			MO
		ZIP:			65708-0807
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>jha07q3.htm
<DESCRIPTION>FORM 10Q FOR QUARTERLY PERIOD ENDED MARCH 31, 2007
<TEXT>

<HTML>
<HEAD>
<TITLE>JKHY FORM 10-Q 07Q3 </TITLE>
</HEAD>
<BODY>

<B><FONT FACE="Arial" SIZE=3><P ALIGN="CENTER">UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
WASHINGTON, D.C. 20549<BR>
FORM 10-Q</P>
</B></FONT><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER"></P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH="100%">
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>(X)</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES<BR>
 EXCHANGE ACT OF 1934</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P> </FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>For the quarterly period ended March 31, 2007</FONT></TD>
</TR>
</TABLE>

<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">OR</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH="100%">
<TR><TD WIDTH="8%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>(   )</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>For the transition period from ______________ to ________________</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>Commission file number <U>0-14112</U></FONT></TD>
</TR>
</TABLE>

<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER"></P>
</FONT><B><U><FONT FACE="Arial"><P ALIGN="CENTER">JACK HENRY &amp; ASSOCIATES, INC.<BR>
</B></U></FONT><FONT FACE="Arial" SIZE=2>(Exact name of registrant as specified in its charter)</P>
<P ALIGN="CENTER"></P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH="100%">
<TR><TD WIDTH="51%" VALIGN="TOP">
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Delaware</U></FONT></TD>
<TD WIDTH="49%" VALIGN="TOP">
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">43-1128385</U></FONT></TD>
</TR>
<TR><TD WIDTH="51%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">State or Other Jurisdiction of Incorporation</FONT></TD>
<TD WIDTH="49%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">I.R.S Employer Identification No.</FONT></TD>
</TR>
</TABLE>

<B><U><FONT FACE="Arial" SIZE=3><P ALIGN="CENTER"></P>
<P ALIGN="CENTER">663 Highway 60, P.O. Box 807, Monett, MO 65708<BR>
</B></U></FONT><FONT FACE="Arial" SIZE=1>Address of Principle Executive Offices<BR>
(Zip Code)</P>
</FONT><FONT FACE="Arial" SIZE=1><P ALIGN="CENTER"></P>
</FONT><B><U><FONT FACE="Arial" SIZE=3><P ALIGN="CENTER">417-235-6652<BR>
</B></U></FONT><FONT FACE="Arial" SIZE=1>(Registrant's telephone number, including area code)</P>
</FONT><FONT FACE="Arial" SIZE=1><P ALIGN="CENTER"></P>
</FONT><B><U><FONT FACE="Arial" SIZE=3><P ALIGN="CENTER">N/A<BR>
</B></U></FONT><FONT FACE="Arial" SIZE=1>(Former name, former address and former fiscal year, if changed since last report)</P>
</FONT><FONT FACE="Arial" SIZE=1><P ALIGN="CENTER"></P>
<P>&nbsp;</P>
</FONT><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">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.
<BR>
Yes [X]    No [&nbsp;&nbsp;]</P>
</FONT><FONT FACE="Arial"><P ALIGN="JUSTIFY"></P>
</FONT><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).  Yes [X]   No [&nbsp;&nbsp;]</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Indicated by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes [&nbsp;&nbsp;]   No [X]</P>
<P ALIGN="JUSTIFY"></P>
</FONT>

<P ALIGN="CENTER"><B>APPLICABLE ONLY TO CORPORATE ISSUERS</B></P>
</B></FONT><FONT FACE="Arial" SIZE=2>
<P>Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.</P>
</FONT><FONT FACE="Arial" SIZE=3>
</FONT><FONT FACE="Arial" SIZE=2><P>As of May 1, 2007, Registrant has 89,666,463 shares of common stock outstanding ($0.01 par value)</P>
<P ALIGN="CENTER"></P>
<HR>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="97%" VALIGN="TOP" COLSPAN=3 HEIGHT=19>
<B><FONT FACE="Arial"><P ALIGN="CENTER">JACK HENRY &amp; ASSOCIATES, INC.</B></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="97%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=3><P ALIGN="CENTER">CONTENTS</B></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=29><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=29>
<B><FONT FACE="Arial" SIZE=2><P>PART I</B></FONT></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=29>
<FONT FACE="Arial" SIZE=2><P>FINANCIAL INFORMATION</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=29>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Page Reference</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>ITEM 1</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Financial Statements</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Condensed Consolidated Balance Sheets</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>March 31, 2007 and June 30, 2006  (Unaudited)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">3</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER"> </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P>Condensed Consolidated Statements of Income for the Three and</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P> Nine Months Ended March 31, 2007 and 2006 (Unaudited)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">4</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Condensed Consolidated Statements of Cash Flows for the Nine Months</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Ended March 31, 2007 and 2006 (Unaudited)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">5</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P>Notes to Condensed Consolidated Financial Statements (Unaudited)</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">6</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>ITEM 2</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Management's Discussion and Analysis of Financial Condition and</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Results of Operations</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">11</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>ITEM 3</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Quantitative and Qualitative Disclosures about Market Risk</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">17</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=21>
<FONT FACE="Arial" SIZE=2><P>ITEM 4</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=21>
<FONT FACE="Arial" SIZE=2><P>Controls and Procedures</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=21>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">17</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=10>
<FONT FACE="Arial" SIZE=2><P> </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=11><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P>PART II</B></FONT></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>OTHER INFORMATION</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>ITEM 2</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Unregistered Sales of Equity Securities and Use of Proceeds</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">18</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>ITEM 6</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Exhibits</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">18</FONT></TD>
</TR>
</TABLE>
<FONT SIZE=2></FONT>
<P ALIGN="JUSTIFY">&nbsp;</P>
<HR>

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH="100%">
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<B><FONT FACE="Arial" SIZE=2><P>PART 1.&nbsp;&nbsp;&nbsp;FINANCIAL INFORMATION</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14>
<FONT FACE="Arial" SIZE=2><P> </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=3 HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2 HEIGHT=14>
<B><FONT FACE="Arial" SIZE=2><P>ITEM 1.&nbsp;&nbsp;&nbsp; FINANCIAL STATEMENTS</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" COLSPAN=2 HEIGHT=14><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=3 HEIGHT=14><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" COLSPAN=2 HEIGHT=7><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" COLSPAN=3 HEIGHT=7><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=2 HEIGHT=7><P></P></TD>
</TR>
</TABLE>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="97%" VALIGN="TOP" COLSPAN=5 HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">JACK HENRY &amp; ASSOCIATES, INC.  AND SUBSIDIARIES</B></FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="97%" VALIGN="TOP" COLSPAN=5 HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">CONDENSED CONSOLIDATED BALANCE SHEETS</B></FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="97%" VALIGN="TOP" COLSPAN=5 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">(In Thousands, Except Share and Per Share Data)</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=7 HEIGHT=14>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">(Unaudited)</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=9>
<FONT FACE="Arial" SIZE=2><P> </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,<BR> 2007</B></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">June 30,<BR> 2006</B></FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P>ASSETS</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P>CURRENT ASSETS:</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Cash and cash equivalents</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   27,730 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 74,139 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Investments, at amortized cost</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                   1,064 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                   2,181 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Receivables</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">              114,499 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">              180,295 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Prepaid expenses and other</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                22,719 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                24,402 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Prepaid cost of product</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                20,621 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                22,228 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Deferred income taxes</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                   3,120 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                   3,165 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P>          Total current assets</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">189,753 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">306,410 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P>PROPERTY AND EQUIPMENT, net</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">246,201 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">251,632 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P>OTHER ASSETS:</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Prepaid cost of product</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">16,057 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">15,191 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Computer software, net of amortization</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">56,522 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">43,840 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Other non-current assets</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">10,056 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">9,285 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Customer relationships, net of amortization</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">62,983 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">63,162 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Trade names</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4,009 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4,009 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Goodwill</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">249,070 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">212,538 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P>          Total other assets</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">398,697 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">348,025 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P>          Total assets</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    834,651 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 906,067 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P>LIABILITIES AND STOCKHOLDERS' EQUITY</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P>CURRENT LIABILITIES:</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Accounts payable</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    4,480 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    14,525 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Accrued expenses</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                27,097 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                29,012 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Accrued income taxes</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                        63 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                   3,312 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Note payable and current maturities of capital leases</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                50,492 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                50,241 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Deferred revenues</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                79,743 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">              166,402 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P>          Total current liabilities</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">161,875 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">263,492 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P>LONG TERM LIABILITIES:</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Deferred revenues</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">18,637 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">19,317 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Deferred income taxes</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">61,715 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">47,430 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=11>
<FONT FACE="Arial" SIZE=2><P>   Other long-term liabilities, net of current maturities</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=11>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">391 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=11>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">616 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=11>
<B><FONT FACE="Arial" SIZE=2><P>          Total long term liabilities</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=11>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">80,743 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=11>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">67,363 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=11>
<B><FONT FACE="Arial" SIZE=2><P>          Total liabilities</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=11>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">242,618 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=11>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">330,855 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P>STOCKHOLDERS' EQUITY</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="69%" VALIGN="TOP" COLSPAN=3 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Preferred stock  -  $1 par value; 500,000 shares<BR>
&nbsp;&nbsp;&nbsp; authorized, none issued</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>                            - </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><BR>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                            - </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="82%" VALIGN="TOP" COLSPAN=4 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Common stock  -  $0.01 par value: 250,000,000 shares authorized;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>&nbsp;&nbsp;&nbsp;      Shares issued at 3/31/07 were 95,686,645</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>&nbsp;&nbsp;&nbsp;      Shares issued at 06/30/06 were 93,955,663</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">957 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">939 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Additional paid-in capital</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">252,642 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">224,195 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Retained earnings</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">461,574 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">401,849 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>   Less treasury stock at cost</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="69%" VALIGN="TOP" COLSPAN=3 HEIGHT=11>
<FONT FACE="Arial" SIZE=2><P>&nbsp;&nbsp;&nbsp;         6,029,141 shares at 3/31/07,  2,766,062 shares at 06/30/06</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=11>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(123,140)</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=11>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(51,771)</FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=11>
<B><FONT FACE="Arial" SIZE=2><P>          Total stockholders' equity</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=11>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">592,033 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=11>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">575,212 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=11><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=11>
<B><FONT FACE="Arial" SIZE=2><P>          Total liabilities and stockholders' equity</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=11>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=11>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   834,651 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=11>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=11>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  906,067 </FONT></TD>
</TR>
<TR><TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="63%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=7 HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P>See notes to condensed consolidated financial statements</P>
<P> </P>
<P> </FONT></TD>
</TR>
</TABLE>
<FONT SIZE=2></FONT>
<HR>
<P ALIGN="JUSTIFY"></P>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="93%" VALIGN="TOP" COLSPAN=9 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">JACK HENRY &amp; ASSOCIATES, INC. AND SUBSIDIARIES</B></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="93%" VALIGN="TOP" COLSPAN=9 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">CONDENSED CONSOLIDATED STATEMENTS OF INCOME</B></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="93%" VALIGN="TOP" COLSPAN=9 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">(In Thousands, Except Per Share Data)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="93%" VALIGN="TOP" COLSPAN=9 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">(Unaudited)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P> </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="24%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="24%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="24%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,</B>
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="24%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,</B>
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>REVENUE</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="42%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>   License</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 15,345 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 20,566 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  52,057 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  58,310 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="42%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>   Support and service</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  130,282 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  106,083 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   370,094 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   312,008 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="42%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>   Hardware </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   23,276 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   18,846 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    64,611 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    59,577 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>          Total </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  168,903 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  145,495 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   486,762 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   429,895 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>COST OF SALES</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="42%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>   Cost of license</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">        863 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">        222 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      2,197 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      2,134 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="42%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>   Cost of support and service</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   78,932 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   67,962 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   229,483 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   198,555 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="42%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>   Cost of hardware</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   17,424 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   13,629 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    47,103 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    43,486 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>          Total </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   97,219 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   81,813 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   278,783 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   244,175 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>GROSS PROFIT</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   71,684 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   63,682 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   207,979 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   185,720 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>OPERATING EXPENSES</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="42%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>   Selling and marketing</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   12,527 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   12,292 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    37,466 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    36,032 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="42%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>   Research and development</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     9,004 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     8,435 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    26,509 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    23,187 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="42%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>   General and administrative</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     9,378 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     8,239 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    30,691 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    27,174 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>          Total </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   30,909 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   28,966 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    94,666 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    86,393 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>OPERATING INCOME</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   40,775 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   34,716 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   113,313 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    99,327 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>INTEREST INCOME (EXPENSE)</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="42%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>   Interest income</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">        658 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">        731 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      2,620 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      1,599 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="42%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>   Interest expense</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">       (439)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">       (590)</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">        (954)</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">        (897)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>          Total </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">        219 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">        141 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      1,666 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">         702 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>INCOME BEFORE INCOME TAXES</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   40,994 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   34,857 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   114,979 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   100,029 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>PROVISION FOR INCOME TAXES</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   14,614 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   11,397 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    39,399 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    35,511 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P>NET INCOME</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 26,380 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 23,460 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  75,580 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  64,518 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P>Diluted net income per share</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    0.29 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    0.25 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     0.82 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     0.69 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Diluted weighted average shares outstanding</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   91,753 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   94,390 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    92,297 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    94,008 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P>Basic net income per share</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    0.29 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    0.26 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     0.84 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     0.70 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Basic weighted average shares outstanding</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   89,893 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   91,952 </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    90,387 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    91,622 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=14><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="39%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="62%" VALIGN="TOP" COLSPAN=6 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>See notes to condensed consolidated financial statements</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=2></FONT>
<P ALIGN="JUSTIFY"></P>
<HR>
<P ALIGN="JUSTIFY"></P>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="94%" VALIGN="TOP" COLSPAN=5 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">JACK HENRY &amp; ASSOCIATES, INC. AND SUBSIDIARIES</B></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="94%" VALIGN="TOP" COLSPAN=5 HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</B></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="94%" VALIGN="TOP" COLSPAN=5 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">(In Thousands)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="94%" VALIGN="TOP" COLSPAN=5 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">(Unaudited)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="36%" VALIGN="TOP" COLSPAN=3 HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="36%" VALIGN="TOP" COLSPAN=3 HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,</B>
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P>CASH FLOWS FROM OPERATING ACTIVITIES:</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>Net Income</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  75,580 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    64,518 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>Adjustments to reconcile net income from operations</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>&nbsp;&nbsp;&nbsp;to cash from operating activities:</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Depreciation </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            27,096 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            24,689 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Amortization</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            10,271 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">             7,843 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Deferred income taxes</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            12,169 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">             5,777 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Expense for stock-based compensation</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                897 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                364 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Loss on disposal of property and equipment</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                108 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                108 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Other, net</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">               (4)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">               -   </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="80%" VALIGN="TOP" COLSPAN=5 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>Changes in operating assets and liabilities, net of acquisitions:</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Receivables  </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            65,890 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">          110,872 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Prepaid expenses, prepaid cost of product, and other  </FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">             1,821 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">               (716)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Accounts payable</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     (10,051)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            (9,906)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Accrued expenses</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            (2,281)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            (4,105)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Income taxes </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">               (472)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            (2,905)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Deferred revenues</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      (89,599)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     (83,155)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P>        Net cash from operating activities</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            91,425 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">          113,384 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P>CASH FLOWS FROM INVESTING ACTIVITIES:</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P>   </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>   </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Payment for acquisitions, net of cash acquired</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    (39,389)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     (20,744)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Capital expenditures</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      (21,139)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     (32,228)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Computer software developed</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      (15,554)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     (11,908)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Proceeds from investments</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">             3,735 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">             3,327 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Purchase of investments</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            (2,614)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            (2,746)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Proceeds from sale of property and equipment</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                  -   </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                  29 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Other, net</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                101 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                223 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P>        Net cash from investing activities</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    (74,860)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   (64,047)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P>CASH FLOWS FROM FINANCING ACTIVITIES:</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Note payable, net</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">           (540)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     (20,000)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Purchase of treasury stock</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   (71,369)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     (12,576)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Dividends paid</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     (15,855)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     (13,285)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Excess tax benefits from stock-based compensation</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">             3,355 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">             6,471 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="77%" VALIGN="TOP" COLSPAN=4 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Proceeds from issuance of common stock upon exercise of </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>&nbsp;&nbsp;&nbsp;        stock options</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            20,999 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">            16,711 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=2 HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P>     Proceeds from sale of common stock,  net</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                436 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">                539 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P>        Net cash from financing activities</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     (62,974)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     (22,140)</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P>NET CHANGE IN CASH AND CASH EQUIVALENTS</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    (46,409)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    27,197 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P>CASH AND CASH EQUIVALENTS, BEGINNING<BR>&nbsp;&nbsp;&nbsp; OF PERIOD</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>$</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>    74,139 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>$</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=13>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>    11,608 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<B><FONT FACE="Arial" SIZE=2><P>CASH AND CASH EQUIVALENTS, END OF PERIOD</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     27,730 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=14>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=14>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    38,805 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>

<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=6><P></P></TD>
</TR>
</TABLE>
<FONT SIZE=2></FONT>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">Net cash paid for income taxes was $24,349 and $25,600 for the nine months ended March 31, 2007 and 2006, respectively.  The Company paid interest of $1,056 and $908 for the nine months ended March 31, 2007 and 2006, respectively.  </P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">See notes to condensed consolidated financial statements&#9;</P>
</FONT><P ALIGN="CENTER"></P>
<HR>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">JACK HENRY &amp; ASSOCIATES, INC. AND SUBSIDIARIES<BR>
<A NAME="notes"></A>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
(In Thousands, Except Per Share Amounts)<BR>
(Unaudited)</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">NOTE 1.      NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </P>
<P ALIGN="JUSTIFY">DESCRIPTION OF THE COMPANY </P>
<P ALIGN="JUSTIFY">Jack Henry &amp; Associates, Inc. and Subsidiaries (&quot;JHA&quot; or the &quot;Company&quot;) is a leading provider of integrated computer systems that has developed and acquired a number of banking and credit union software systems. The Company's revenues are predominately earned by marketing those systems to financial institutions nationwide together with computer equipment (&quot;hardware&quot;) and by providing the conversion and software implementation services for financial institutions to utilize JHA software systems. JHA provides continuing support and services to customers using in-house or outsourced systems.</P>
<P ALIGN="JUSTIFY">CONSOLIDATION </P>
<P ALIGN="JUSTIFY">The consolidated financial statements include the accounts of JHA and all of its subsidiaries, which are wholly-owned, and all significant intercompany accounts and transactions have been eliminated.</P>
<P ALIGN="JUSTIFY">STOCK-BASED COMPENSATION </P>
<P ALIGN="JUSTIFY">For the three months ended March 31, 2007 and 2006, there was $484 and $107, respectively, in compensation expense from equity-based awards.  For the first nine months of fiscal 2007 and 2006 compensation expense from equity-based awards was $897 and $364, respectively. </P>
<P ALIGN="JUSTIFY">Changes in stock options outstanding and exercisable are as follows:</P>
<P ALIGN="JUSTIFY"></P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH="100%">
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=44><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=44>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Number of<BR>
 Shares<BR>
(in thousands)</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2 HEIGHT=44>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Weighted<BR>
 Average Exercise<BR>
 Price</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=44>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER"> <BR>
Aggregate <BR>
Intrinsic Value </FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Outstanding July 1, 2006</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">         7,700 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$15.34 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>Granted</B></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">              30 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">             21.79 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>Forfeited or expired</B></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">           (126)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">             21.25 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>Exercised</B></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">        (1,710)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">             12.78 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P>Outstanding March 31, 2007</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">         5,894
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$15.98
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$49,109 </FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P>Exercisable  March 31, 2007</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">         5,802 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$15.93 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$48,668 </FONT></TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>
</TABLE>

</FONT><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">For the nine-months ended March 31, 2007 and 2006, the weighted average fair value of options granted was $10.43 and $10.13, respectively, using the Black-Scholes option pricing model.  In both years, all options were granted during the Company's second fiscal quarter.  All options grants in fiscal 2007 and 2006 were made to independent directors of the Company.</P>
<P ALIGN="JUSTIFY">The assumptions used in this model to estimate fair value and resulting values are as follows:</P>
<P ALIGN="JUSTIFY"></P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH="70%">
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="51%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="37%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER"> Nine  Months Ended </FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="51%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="37%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="51%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B>
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="51%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P>Weighted Average Assumptions:</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="51%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Expected life (years) </FONT></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7.41</B></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7.65</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="51%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Volatility </FONT></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">37%</B></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">42%</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="51%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Risk free interest rate </FONT></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4.7%</B></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4.4%</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="51%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Dividend yield </FONT></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.96%</B></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0.89%</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="51%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=9><P></P></TD>
</TR>
</TABLE>
<FONT SIZE=2></FONT>


<P ALIGN="JUSTIFY">As of March 31, 2007, there was $330 of total unrecognized compensation cost related to outstanding options that is expected to be recognized over a weighted-average period of 0.74 years.</P>
<P ALIGN="JUSTIFY">The Restricted Stock Plan was adopted by the Company on November 1, 2005, for its employees.  Up to 3,000 shares of common stock are available for issuance under the Plan.  Upon issuance, shares of restricted stock are subject to forfeiture and to restrictions which limit the sale or transfer of the shares during the restriction period.  As of March 31, 2007, no restricted stock has been issued.</P>
<P ALIGN="JUSTIFY">COMPREHENSIVE INCOME</P>
<P ALIGN="JUSTIFY">Comprehensive income for the three and nine-month periods ended March 31, 2007 and 2006 equals the Company's net income.</P>
<P ALIGN="JUSTIFY">COMMON STOCK</P>
<P ALIGN="JUSTIFY">The Board of Directors has authorized the Company to repurchase shares of its common stock.&nbsp; Under this authorization, the Company may finance its share repurchases with available cash reserves or short-term borrowings on its existing credit facility.&nbsp; The share repurchase program does not include specific price targets or timetables and may be suspended at any time.  At June 30, 2006, there were 2,766 shares in treasury stock and the Company had the remaining authority to repurchase up to 2,225 shares.  On August 25, 2006, the Company's Board of Directors approved a 5,000 increase to the stock repurchase authorization.  During the nine months ended March 31, 2007, the Company repurchased 3,263 treasury shares for $71,369.   The total cost of treasury shares at March 31, 2007 is $123,140.  At March 31, 2007, there were 6,029 shares in treasury stock and the Company had the authority to repurchase up to 3,961 additional shares.</P>
<P ALIGN="JUSTIFY">INTERIM FINANCIAL STATEMENTS&#9;</P>
<P ALIGN="JUSTIFY">The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America applicable to interim condensed consolidated financial statements, and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements.  The condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and accompanying notes, which are included in its Annual Report on Form 10-K  (&quot;Form 10-K&quot;) for the year ended June 30, 2006.  The accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements included in its Form 10-K for the year ended June 30, 2006.</P>
<P ALIGN="JUSTIFY">In the opinion of management of the Company, the accompanying condensed consolidated financial statements reflect all adjustments necessary (consisting solely of normal recurring adjustments) to present fairly the financial position of the Company as of March 31, 2007, and the results of its operations for the three and nine-month periods ended March 31, 2007 and 2006 and its cash flows for the nine-month periods ended March 31, 2007 and 2006.</P>
<P ALIGN="JUSTIFY">The results of operations for the three and nine-month periods ended March 31, 2007 are not necessarily indicative of the results to be expected for the entire year.</P>
<P ALIGN="JUSTIFY">NOTE 2.      ADDITIONAL INTERIM FOOTNOTE INFORMATION</P>
<P ALIGN="JUSTIFY">The following additional information is provided to update the notes to the Company's annual consolidated financial statements for the developments during the three and nine months ended March 31, 2007.</P>
<P ALIGN="JUSTIFY">ACQUISITIONS</P>
<P ALIGN="JUSTIFY">On November 1, 2006, the Company acquired all of the capital stock of Margin Maximizer Group, Inc., which does business as US Banking Alliance (&quot;USBA&quot;). USBA is a leading provider of loan and deposit pricing software and related consulting services to banks and credit unions.&nbsp; The purchase price for USBA, $34,006 paid in cash, was preliminarily allocated to the assets and liabilities acquired based on then estimated fair values at the acquisition date, resulting in an allocation of ($2,271) to working capital, $69 to property and equipment, $2,515 to capitalized software, $4,705 to customer relationships, and $28,988 to goodwill.<B><I>&nbsp; </B></I>The acquired goodwill has been allocated to the bank systems and services segment.  The Company and the former shareholders of Margin Maximizer Group, Inc. jointly made a Section 338(h)(10) election for this acquisition.  This election allows treatment of this acquisition as an asset acquisition, which permits the Company to amor
tize the capitalized software, customer relationships and goodwill for tax purposes.  Pro forma results of this acquisition were not material; therefore, they are not presented.</P>
<P ALIGN="JUSTIFY">On March 2, 2005, the Company acquired all of the membership interests in Tangent Analytics, LLC, (&quot;Tangent&quot;), a developer of business intelligence software systems.  As part of the purchase agreement, contingent purchase consideration may be due based on Tangent's earnings before interest, depreciation, amortization and taxes.  To date in fiscal 2007, $3,125 was paid to the former members of Tangent as part of this contingent consideration.  This amount was included in goodwill at March 31, 2007.  Remaining contingent purchase consideration of up to $917 may be paid over the next year based upon Tangent's earnings before interest, depreciation, taxes and amortization.    </P>
<P ALIGN="JUSTIFY">On September 1, 2004, the Company acquired Banc Insurance Services, Inc. (&quot;BIS&quot;) in Massachusetts.  BIS was a provider of turnkey outsourced insurance agency solutions for financial institutions.  Contingent purchase consideration may be paid over the next three years based upon BIS gross revenues which could result in additional allocations to goodwill of up to $12,931.  To date in fiscal 2007, $250 was paid to the former owners of BIS as part of this agreement.  This amount was included in goodwill at March 31, 2007.</P>
<P ALIGN="JUSTIFY">DEBT</P>
<P ALIGN="JUSTIFY">The Company renewed a bank credit line on March 7, 2007 which provides for funding of up to $8,000 and bears interest at the prime rate (8.25%</FONT><I><FONT FACE="Arial" SIZE=2 COLOR="#0000ff"> </I></FONT><FONT FACE="Arial" SIZE=2>at March 31, 2007).&nbsp; The credit line expires March 7, 2008 and is secured by $1,000 of investments.  At March 31, 2007, no amount was outstanding.</P>
<P ALIGN="JUSTIFY">The Company obtained an unsecured bank credit line on April 28, 2006 which provides for funding of up to $5,000 and bears interest at the prime rate less 1% (7.25% at March 31, 2007).  The credit line matures on April 30, 2008.  At March 31, no amount was outstanding.</FONT><FONT FACE="Arial" SIZE=2 COLOR="#ff0000"> </P>
</FONT><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">An unsecured revolving bank credit facility allows borrowing of up to $150,000 which may be increased by the Company at any time prior to April 20, 2008 to $225,000.  The unsecured revolving bank credit facility bears interest at a rate equal to (a) LIBOR or (b) an alternate base rate (the greater of (a) the Federal Funds
 Rate plus 1/2% or (b) the Prime Rate), plus an applicable percentage in each case determined by the Company's leverage ratio. The unsecured revolving credit line terminates April 19, 2010.  At June 30, 2006, the revolving bank credit facility balance was $50,000.  At March 31, 2007, the revolving bank credit facility balance was $50,000.</P>
<P ALIGN="JUSTIFY">During fiscal year 2006 and the first nine months of fiscal 2007, the Company has entered into various capital lease obligations totaling $1,303 for the use of certain computer equipment.  At June 30, 2006, $662 was outstanding, of which $241 was included in current maturities.  At March 31, 2007, $840 was outstanding, of which $492 is included in current maturities.</P>
<P ALIGN="JUSTIFY">COMMITMENTS AND CONTINGENCIES</P>
<P ALIGN="JUSTIFY">On August 31, 2006, the Board of Directors approved bonus plans for its executive officers and general managers for the current fiscal year.  Under the plans, cash bonuses will be paid following the end of the current fiscal year if earnings per share growth targets are achieved by the Company.  No bonus is payable under the plans unless earnings per share growth of at least 14% is achieved.  Beginning with 14% earnings per share growth, bonuses payable under the plans tier upward until earnings per share growth reaches 20%.  At each tier, a specified percentage of base salary is payable.  The tiers range upward from 7.5% up to a maximum of 45% of base salary.  For general managers, one-half of the prescribed bonus is contingent upon meeting departmental or other objectives as established by the executive officer to whom they report.</P>
<P ALIGN="JUSTIFY">NOTE 3.&#9;RECENT ACCOUNTING PRONOUNCEMENTS</P>
<P ALIGN="JUSTIFY">In May 2005, the Financial Accounting Standards Board (&quot;FASB&quot;) issued Statement on Financial Accounting Standards (&quot;SFAS&quot;) No. 154, &quot;<I>Accounting Changes and Error Corrections - a replacement of APB Opinion No. 20 and FASB Statement No.3</I>&quot;.  SFAS 154 changes the requirements for the accounting for, and reporting of, a change in accounting principle.  SFAS 154 requires that a voluntary change in accounting principle be applied retrospectively with all prior period financial statements presented using the accounting principle. SFAS 154 is effective for accounting changes and corrections of errors in fiscal years beginning after December 15, 2005.  The Company adopted SFAS 154 effective July 1, 2006.  Since there have been no material accounting changes or errors for the nine months ended March 31, 2007, the adoption did not have a material impact on the Company's results of operations or financial condition.</P>
<P ALIGN="JUSTIFY">In June 2006, the FASB issued FASB Interpretation No. 48, &quot;<I>Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109</I>&quot; (&quot;FIN 48&quot;).  FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  This Interpretation also provides related guidance on derecognition, classification, interest and penalties, accounting in interim periods and disclosure.  FIN 48 is effective for the Company beginning July 1, 2007.  The Company is currently evaluating the impact of this Interpretation.</P>
<P ALIGN="JUSTIFY">In September 2006, the SEC issued Staff Accounting Bulletin (&quot;SAB&quot;) No. 108, &quot;Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements&quot; (&quot;SAB 108&quot;).  SAB 108 provides guidance on how prior year misstatements should be considered when quantifying misstatements in current year financial statements for purposes of assessing materiality.  SAB 108 requires that a registrant assess the materiality of a current period misstatement by determining how the current period's balance sheet would be affected in correcting a misstatement without considering the year(s) in which the misstatement originated and how the current period's income statement is misstated, including the reversing effect of prior year misstatements.  SAB 108 is effective for fiscal years ending after November 15, 2006.  The cumulative effect of applying SAB 108 may be recorded by adjusting current year beginning balances of the affected as
sets and liabilities with a corresponding adjustment to the current year opening balance in retained earnings if certain criteria are met.  The Company is currently evaluating the impact of SAB 108 and does not expect that the bulletin will have a material impact on the Company's condensed consolidated financial statements.</P>
<P ALIGN="JUSTIFY">In September 2006, the FASB issued SFAS No. 157, &quot;Fair Value Measurements&quot; (&quot;SFAS 157&quot;).  SFAS 157 defines fair value, establishes a framework for measuring fair value in GAAP and requires enhanced disclosures about fair value measurements.  SFAS 157 does not require any new fair value measurements.  SFAS 157 is effective for the Company beginning July 1, 2007.  The Company is currently evaluating the impact of this pronouncement.</P>
<P ALIGN="JUSTIFY">In February 2007, the FASB issued SFAS No. 159, &quot;The Fair Value Option for Financial Assets and Financial Liabilities-Including and amendment of FASB Statement No. 115&quot; (&quot;SFAS 159&quot;).  SFAS 159 expands the use of fair value accounting but does not affect existing standards which require assets or liabilities to be carried at fair value.  Under SFAS 159, a company may elect to use fair value to measure its financial assets and liabilities.  If the use of fair value is elected, any upfront costs and fees related to the item must be recognized in earnings and cannot be deferred.  The fair value election is irrevocable and generally made on an instrument-by-instrument basis, even if a company has similar instruments that it elects not to measure based on fair value.  At the adoption date, unrealized gains and losses on existing items for which fair value has been elected are reported as a cumulative adjustment to retained earnings.  Subsequent to the adoption of SFAS 159, ch
anges in fair value are recognized in earnings.  SFAS is effective for the Company beginning July 1, 2008.  The Company is currently determining whether fair value accounting is appropriate for any of its eligible items and cannot estimate the impact, if any, which SFAS 159 will have on its financial statements.</P>
<P ALIGN="JUSTIFY">NOTE 4. &#9;SHARES USED IN COMPUTING NET INCOME PER SHARE</P>
<P ALIGN="JUSTIFY"></P>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months Ended</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Nine Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Weighted average number of common shares </FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>outstanding - basic</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   89,893 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  91,952 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  90,387 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 91,622 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Common stock equivalents</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    1,860 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   2,438 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   1,910 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   2,386 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Weighted average number of common and</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P>common equivalent shares outstanding - diluted</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   91,753 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  94,390 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  92,297 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 94,008 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
</TABLE>
<FONT SIZE=2></FONT>
<P ALIGN="JUSTIFY">Per share information is based on the weighted average number of common shares outstanding for the periods ended March 31, 2007 and 2006.  Stock options have been included in the calculation of income per share to the extent they are dilutive.  Anti-dilutive stock options to purchase approximately 661 and 994 shares and 919 and 1,577 shares for the three and nine-month periods ended March 31, 2007 and 2006, respectively, were not included in the computation of diluted income per common share. </P>
<P ALIGN="JUSTIFY"></P>
<P>NOTE 5.&#9;BUSINESS SEGMENT INFORMATION</P>
<P ALIGN="JUSTIFY">The Company is a leading provider of integrated computer systems that perform data processing (both in-house and outsourced) for banks and credit unions.  The Company's operations are classified into two business segments: bank systems and services and credit union systems and services.  The Company evaluates the performance of its segments and allocates resources to them based on various factors, including prospects for growth, return on investment, and return on revenue. <A NAME="MDA"></A></P>
<P ALIGN="JUSTIFY"></P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH="100%">
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=5 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months Ended</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=5 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months Ended </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P> </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=5 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31, 2007</B>
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=5 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31, 2006
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Bank</B></U></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Credit Union</B></U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Total</B></U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Bank</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Credit Union</U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Total</U></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P>REVENUE</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  License</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">13,311 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  2,034 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">15,345 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">17,360 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3,206 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 20,566 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Support and service</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   111,492 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     18,790 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   130,282 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    88,590 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   17,493 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  106,083 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Hardware </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     17,117 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      6,159 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     23,276 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    14,104 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     4,742 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    18,846 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P>          Total </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   141,920 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     26,983 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   168,903 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   120,054 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   25,441 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  145,495 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=7><P></P></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P>COST OF SALES</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Cost of license</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">         861 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">             2 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">         863 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">         209 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">         13 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">         222 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Cost of support and<BR>&nbsp;&nbsp;&nbsp; service</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>     65,373 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>     13,559 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>     78,932 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>    55,414 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>   12,548 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>    67,962 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Cost of hardware</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     12,817 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      4,607 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     17,424 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    10,046 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     3,583 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    13,629 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>

<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P>          Total </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     79,051 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     18,168 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     97,219 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    65,669 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   16,144 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    81,813 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P>GROSS PROFIT</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">62,869 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  8,815 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">71,684 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">54,385 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">9,297 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  63,682 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=10><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=9><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=9><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=7><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=5 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine Months Ended</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=5 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine Months Ended </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P> </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=5 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31, 2007</B>
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=5 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31, 2006
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Bank</B></U></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Credit Union</B></U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Total</B></U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Bank</U></FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Credit Union</U></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Total</U></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P>REVENUE</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  License</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">42,875 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  9,182 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">52,057 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">44,280 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 14,030 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 58,310 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Support and service</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   313,570 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     56,524 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   370,094 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   259,874 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   52,134 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  312,008 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Hardware </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     50,062 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     14,549 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     64,611 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    45,154 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   14,423 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    59,577 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P>          Total </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   406,507 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     80,255 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   486,762 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   349,308 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   80,587 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  429,895 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P>COST OF SALES</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Cost of license</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      2,182 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">           15 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      2,197 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      1,089 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     1,045 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      2,134 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Cost of support and<BR>&nbsp;&nbsp;&nbsp; service</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>   188,761 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>     40,722 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>   229,483 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>   161,254 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>   37,301 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>  198,555 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>  Cost of hardware</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     36,220 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     10,883 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     47,103 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    32,368 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   11,118 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    43,486 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P>          Total </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   227,163 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     51,620 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   278,783 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   194,711 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   49,464 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  244,175 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="29%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P>GROSS PROFIT</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> $179,344 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">28,635 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">207,979 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 154,597 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 31,123 </FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 185,720 </FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=10><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
</TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
</TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
</TABLE>
<P ALIGN="JUSTIFY"></P>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=70%>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">March 31,</B>
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER"> </FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">June 30,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=15>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>Property and equipment, net</B></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Bank systems and services</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  212,682 </B></FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  217,438 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Credit Union systems and services</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   33,519 </B></FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    34,194 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P>Total</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  246,201 </B></FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  251,632 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>Identified intangible assets, net</B></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Bank systems and services</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  321,075 </B></FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  271,259 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Credit Union systems and services</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   51,509 </B></FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   52,290 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=15><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P>Total</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  372,584 </B></FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  323,549 </FONT></TD>
</TR>
<TR><TD WIDTH="54%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=15><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>
</TABLE>
<FONT SIZE=2></FONT>


<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P>ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS </P>
<P>RESULTS OF OPERATIONS   </P>
</B><P>Background and Overview</P>
<P ALIGN="JUSTIFY">We provide integrated computer systems for in-house and outsourced data processing to commercial banks, credit unions and other financial institutions.  We have developed and acquired banking and credit union application software systems that we market, together with compatible computer hardware, to these financial institutions.  We also perform data conversion and software implementation services of our systems and provide continuing customer support services after the systems are implemented.  For our customers who prefer not to make an up-front capital investment in software and hardware, we provide our full range of products and services on an outsourced basis through our six data centers and 23 item-processing centers located throughout the United States.</P>
<P ALIGN="JUSTIFY">A detailed discussion of the major components of the results of operations for the three and nine-month periods ended March 31, 2007 follows.  All amounts are in thousands and discussions compare the current three and nine-month periods ended, March 31, 2007, to the prior year three and nine-month periods ended March 31, 2006.</P>
<B><P ALIGN="JUSTIFY">REVENUE </P>
</B><P ALIGN="JUSTIFY"></P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P>License Revenue</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>License</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">15,345 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">20,566 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P> </FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-25%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 52,057 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 58,310 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P> </FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-11%</B></FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Percentage of total revenue</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">9%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">11%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">13%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
</TABLE>

<P ALIGN="JUSTIFY">License revenue represents the delivery of application software systems contracted with us by the customer. We license our proprietary software products under standard license agreements that typically provide the customer with a non-exclusive, non-transferable right to use the software on a single computer and for a single financial institution location.</P>
<P ALIGN="JUSTIFY">The reduction in license revenue for the quarter and year to date can be attributed to decreases in the number of new license agreements and an overall decrease in the average agreement size in comparison to the same periods a year ago.  The decrease in new license agreements is partially a result of a decrease in sales for our Episys&reg; and Cruise&reg; products.  In addition, demand from banks and credit unions continues to shift to our outsourcing services which do not require software license agreements.</P>

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P>Support and Service Revenue</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Support and service </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">130,282 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">106,083 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">23%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">370,094 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">312,008 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">19%</B></FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Percentage of total revenue</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">77%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">73%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">76%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">73%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
</TABLE>
<P></P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=3 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Qtr over Qtr Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="30%" VALIGN="TOP" COLSPAN=3 HEIGHT=20>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Year over Year Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=20>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">$ Change</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=20>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">% Change</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=20>
<U><FONT FACE="Arial" SIZE=2><P>$ Change</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=20>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">% Change</U></FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=6><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=6><P></P></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>In-house support &amp; other services</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8,246 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">+17%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     16,679 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">+11%</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>EFT support</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7,104 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">+34%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">       21,720 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">+41%</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Outsourcing services</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4,446 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">+17%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      11,419 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">+9%</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Implementation services</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4,403
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">+41%</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">        8,268
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">+23%</FONT></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P>Total Increase</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> $ 24,199 </B>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> $ 58,086 </B>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>

</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="37%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
</TABLE>

<FONT SIZE=2></FONT>

<P ALIGN="JUSTIFY">Support and service fees are generated from implementation services (including conversion, installation, implementation, configuration and training), annual support to assist the customer in operating their systems and to enhance and update the software, outsourced data processing services and ATM and debit card processing (EFT Support) services.</P>
<P ALIGN="JUSTIFY">There was strong growth in all support and service revenue components for the third quarter and the first nine months of fiscal 2007. There is continuing growth in the demand for EFT support (ATM/debit card, bill pay, remote capture and Check 21 transaction processing services).  Outsourcing services continue to grow as we add new customers and increase volume.</FONT><FONT FACE="Arial" SIZE=2 COLOR="#ff0000">  </FONT><FONT FACE="Arial" SIZE=2>In-house support revenue increased partially as a result of increased installations of recently acquired products. Implementation services revenue increased for the quarter due to an increase in the number of license implementations, as well as an increase in merger conversions for existing customers.</P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=7><P></P></TD>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P>Hardware Revenue</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Hardware</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">23,276 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">18,846 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">24%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 64,611 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 59,577 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8%</B></FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Percentage of total revenue</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">13%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">13%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
</TABLE>

<P ALIGN="JUSTIFY">The Company has entered into remarketing agreements with several hardware manufacturers under which we sell computer hardware, hardware maintenance and related services to our customers.  Revenue related to hardware sales is recognized when the hardware is shipped to our customers.</P>
<P ALIGN="JUSTIFY">Hardware revenue increased mainly due to an increase in the number of hardware systems and components delivered for the current quarter and the first nine months of the current year as compared to the same periods last year.  In particular, there has been a significant increase in revenues from scanners used in our remote capture product. </A></A></P>
<B><P ALIGN="JUSTIFY">BACKLOG</P>
</B><P ALIGN="JUSTIFY">Our backlog increased 4% at March 31, 2007 to $221,200 ($61,400 in-house and $159,800 outsourcing) from $213,300 ($62,800 in-house and $150,500 outsourcing) at March 31, 2006.  The current quarter backlog decreased 2% compared to December 31, 2006, when backlog was $225,300 ($66,200 in-house and $159,100 outsourcing). </P>
<B><P ALIGN="JUSTIFY">COST OF SALES AND GROSS PROFIT </P>
</B><P ALIGN="JUSTIFY">Cost of license represents the cost of software from third party vendors through remarketing agreements.  These costs are recognized when license revenue is recognized. Cost of support and service represents costs associated with conversion and implementation efforts, ongoing support for our in-house customers, operation of our data and item processing centers providing services for our outsourced customers, ATM and debit card processing services and direct operating costs.  These costs are recognized as they are incurred.   Cost of hardware consists of the direct and related costs of purchasing the equipment from the manufacturers and delivery to our customers. These costs are recognized at the same time as the related hardware revenue is recognized.  Ongoing operating costs to provide support to our customers are recognized as they are incurred.</P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P>Cost of Sales and Gross Profit</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>Cost of License</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    863 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    222 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">289%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 2,197 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 2,134 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3%</B></FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Percentage of  total revenue</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">&lt;1%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">&lt;1%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">&lt;1%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>     License Gross Profit</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14,482 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">20,344 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-29%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 49,860 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 56,176 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-11%</B></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>     Gross Profit Margin</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">94%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">99%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">96%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">96%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=27><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>Cost of support and service </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">78,932 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">67,962 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">16%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">229,483 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">198,555 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">16%</B></FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Percentage of  total revenue</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">47%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">47%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">47%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">46%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P> Support and Service Gross<BR>&nbsp;&nbsp;&nbsp; Profit</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>51,350 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>38,121 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>35%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>140,611 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>113,453 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"><BR>24%</B></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P> Gross Profit Margin</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">39%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">36%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">38%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">36%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=27><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>Cost of hardware</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">17,424 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">13,629 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">28%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 47,103 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 43,486 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8%</B></FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Percentage of  total revenue</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">10%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">9%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">10%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">10%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>     Hardware Gross Profit</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 5,852 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 5,217 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">12%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 17,508 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 16,091 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">9%</B></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>     Gross Profit Margin</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">25%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">28%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">27%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">27%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=27><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=27><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>TOTAL COST OF SALES</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">97,219 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">81,813 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">19%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">278,783 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">244,175 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14%</B></FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Percentage of  total revenue</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">58%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">56%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">57%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">57%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=10><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=10><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>     TOTAL GROSS PROFIT</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">71,684 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">63,682 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">13%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">207,979 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">185,720 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">12%</B></FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>     Gross Profit Margin</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">42%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">44%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">43%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">43%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
</TABLE>

<P ALIGN="JUSTIFY">Cost of license increased for the current quarter and the first nine months of fiscal 2007 due to an
increase in the delivery of third party software compared to last year, particularly within the current quarter.  Cost of support and service increased for the quarter and year to date in fiscal 2007 commensurate with increases in revenue from the same periods a year ago.  Cost of hardware also increased due to an increase in hardware sales during the current quarter and the first nine months of fiscal 2007.  Hardware incentives and rebates received decreased during the quarter and nine months ended due to changing thresholds established by the vendors and related hardware sales.</P>
<P ALIGN="JUSTIFY">Gross margin on license revenue decreased to 94% compared to 99% for the same period last year due to an increase in third party software sales, where the gross margins on third party software is significantly lower than our owned products.  Gross margin on license revenue remained at 96% year-to-date for both years.  The gross profit increase for the third quarter and year to date in support and service is due to a continuing shift in sales mix toward services with slightly higher margins, such as our EFT Support services.  Hardware gross margin decreased from 28% in the third quarter last year to 25% in the third quarter of the current year, but remained flat for the nine months in both years; variations are primarily due to sales mix and vendor rebates on hardware delivered. </P>
<B><P ALIGN="JUSTIFY">OPERATING EXPENSES</P>

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P>Selling and Marketing</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Selling and marketing</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">12,527 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">12,292 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 37,466 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 36,032 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4%</B></FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Percentage of  total revenue</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
</TABLE>
</B><P ALIGN="JUSTIFY">Dedicated sales forces, inside sales teams, technical sales support teams and channel partners conduct our sales efforts for our two market segments, and are overseen by regional sales managers.  Our sales executives are responsible for pursuing lead generation activities for new core customers.  Our account executives nurture long-term relationships with our client base and cross-sell our many complementary products and services.  Our inside sales team is responsible for marketing and sales of specific complementary products and services to our existing core customers.</P>
<P ALIGN="JUSTIFY">For the three and nine months ended March 31, 2007, selling and marketing expenses increased due to additional headcount and related employee costs.  Selling and marketing expense decreased slightly as a percentage of total revenues to 7% of revenue for the current quarter as compared to 8% of revenue for the same period of last fiscal year; however, it remained at 8% year-to-date for both years.  </P>
<P ALIGN="JUSTIFY"></P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P>Research and Development</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Research and development</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 9,004 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 8,435 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 26,509 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 23,187 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14%</B></FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Percentage of  total revenue</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">6%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
</TABLE>
<P ALIGN="JUSTIFY">We devote significant effort and expense to develop new software, service products and continually upgrade and enhance our existing offerings.  Typically, we upgrade all of our core and complementary software applications once per year.  We believe our research and development efforts are highly efficient because of the extensive experience of our research and development staff and because our product development is highly customer-driven.  </P>
<P ALIGN="JUSTIFY">Research and development expenses increased primarily due to employee related costs from increased headcount for ongoing development of new products and enhancements to existing products.  Research and development expenses increased for the third quarter and the first nine months of 2007 by 7% and 14% respectively; however as a percentage of total revenue they decreased slightly from 6% to 5% for the third quarter of the current year compared to the prior year and remained at 5% for the nine months in both years.</P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P>General and Administrative</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine Months Ended</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">%</FONT></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2007</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=18>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2006</U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="32%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>General and administrative</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 9,378 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 8,239 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 30,691 </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 27,174 </FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">13%</B></FONT></TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Percentage of  total revenue</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">6%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">6%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">6%</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">6%</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
</TABLE>
<P ALIGN="JUSTIFY">General and administrative costs include all expenses related to finance, legal, human resources, plus all administrative costs.   General and administrative expenses increased for the third quarter and the first nine months of fiscal year 2007, due to increased headcount and related employee costs and increased professional fees for accounting services; however, they remained level at 6% of revenue across all periods.</P>
<B><P ALIGN="JUSTIFY">INTEREST INCOME (EXPENSE)</B> - Net interest income for the three months ended March 31, 2007 reflects an increase of $78 when compared to the same period last year.  Interest income decreased $73, while interest expense also decreased $151.  Net interest income for the current nine month period reflects a increase of $964, with interest income increasing $1,021 and interest expense increasing $57.  For both periods, the changes in interest income are a result of fluctuating cash and cash equivalent balances while changes in interest expense are primarily due to borrowings on the revolving bank credit facility.    </P>
<B><P ALIGN="JUSTIFY">PROVISION FOR INCOME TAXES</B> - The provision for income taxes was $14,614 and $39,399 for the three and nine-month periods ended March 31, 2007 compared with $11,397 and $35,511 for the same periods last year.  In the current third quarter, an income tax adjustment was made to 35.6% of income before income taxes to bring the income tax rate to 34.3% for the year.</FONT><FONT FACE="Arial" SIZE=2 COLOR="#ff0000"> </FONT><FONT FACE="Arial" SIZE=2>For the current fiscal year, the rate of income taxes is estimated at 34.3% of income before income taxes compared to 35.5% as reported for the prior fiscal year.  The decrease is primarily attributable to the renewal of the Research and Experimentation Credit retroactive to January 1, 2006.</P>
<B><P ALIGN="JUSTIFY">NET INCOME</B> - Net income increased 12% for the three months ended March 31, 2007.  Net income for the third quarter of fiscal 2007 was $26,380 or $0.29 per diluted share compared to $23,460 or $0.25 per diluted share in the same period last year.  Net income increased 17% for the nine-month period ended March 31, 2007 to $75,580 or $0.82 per diluted share compared to $64,518 or $0.69 per diluted share for the same nine month period last year.</P>
<B><P ALIGN="JUSTIFY">BUSINESS SEGMENT DISCUSSION</P>
</B><P ALIGN="JUSTIFY">The Company is a leading provider of integrated computer systems that perform data processing (available for in-house or outsourced installations) for banks and credit unions.  The Company's operations are classified into two business segments: bank systems and services (&quot;Bank&quot;) and credit union systems and services (&quot;Credit Union&quot;).  The Company evaluates the performance of its segments and allocates resources to them based on various factors, including prospects for growth, return on investment, and return on revenue.  </P>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="36%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>Bank Systems and Services</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months Ended</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Percent</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine Months Ended</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Percent</FONT></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</FONT></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Revenue</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">141,920 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">120,054 </FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">18%</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">406,507 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">349,308 </FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">16%</B></FONT></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Gross Profit</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  62,869 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  54,385 </FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">16%</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">179,344 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">154,597 </FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">16%</B></FONT></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Gross Profit Margin</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">44%</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">45%</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">44%</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">44%</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
</TABLE>
<P ALIGN="JUSTIFY">The bank systems and services segment experienced strong growth in both support and service revenue and hardware revenue, partially offset by a decrease in license revenue, for both the current quarter and year-to-date compared to the same periods in fiscal 2006.  ATM and debit card transaction processing revenue continues to represent the largest dollar growth; however, Remote Capture and Check 21 transaction processing have experienced the largest percentage growth, period-over-period, for both the current quarter and year-to-date. Bank segment gross profit increased from the last year. Gross profit margin decreased from 45% to 44% for the quarter, due to fluctuations in sales mix, but remained at 44% year-to-date for during both fiscal 2007 and fiscal 2006.</P>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="51%" VALIGN="TOP" COLSPAN=5 HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P>Credit Union Systems and Services</B></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months Ended</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Percent</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine Months Ended</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Percent</FONT></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=14><P></P></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=3 HEIGHT=14>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">March 31,</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=14>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Change</FONT></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=3 HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>

<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Revenue</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  26,983 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  25,441 </FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">6%</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  80,255 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  80,587 </FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0%</B></FONT></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Gross Profit</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   8,815 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">   9,297 </FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-5%</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  28,635 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  31,123 </FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-8%</B></FONT></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Gross Profit Margin</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">33%</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">37%</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">36%</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">39%</FONT></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="21%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
</TABLE>
<P ALIGN="JUSTIFY">The credit union system and services segment experienced revenue growth related to Outsourcing Services and EFT Support for both the quarter and year-to-date compared to a year ago. This growth in support and service was offset by a decrease in license revenue for both the quarter and year-to-date.  The decrease in license revenue is partially attributable to the expansion of our outsourcing options available to our credit union customers.  Outsourcing revenue in this segment continues to grow.  However, there has also been a decline in both the number of new license agreements and in the average size of those agreements in comparison to the prior year. For both the quarter and year-to-date, credit union gross profit decreased from the prior year and the gross margin decreased from 37% to 33% and from 39% to 36%, respectively, due mostly to the decrease in license revenue, which carries higher margins.</P>
<B><P ALIGN="JUSTIFY">FINANCIAL CONDITION</P>
<P ALIGN="JUSTIFY">Liquidity</P>
</B><P ALIGN="JUSTIFY">The Company's cash and cash equivalents decreased to $27,730 at March 31, 2007, from $74,139 at June 30, 2006 and from $38,805 at March 31, 2006.  The decrease in the cash balance from June 30, 2006 is primarily due to the acquisition of USBA and to the purchase of treasury shares.</P>
<P ALIGN="JUSTIFY">The following table summarizes net cash from operating activities in the statement of cash flows:</P>
<P ALIGN="JUSTIFY">
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=80%>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=30><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=30><P></P></TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=3 HEIGHT=30>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Nine months ended<BR>March 31,
<hr width="100%" color=black noshade size="1">
</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=15>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2007</B></U></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2006</U></FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Net income</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">75,580 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">64,518 </FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Non-cash expenses</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     50,537 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">      38,781 </FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Change in receivables</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     65,890 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    110,872 </FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Change in deferred revenue</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    (89,599)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     (83,155)</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P>Change in other assets and liabilities</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=15>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">    (10,983)</B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">     (17,632)</FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=8><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P>Net cash provided by operating activities</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">  91,425 </B></FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT"> 113,384 </FONT></TD>
</TR>
<TR><TD WIDTH="61%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=8><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=8><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>
</TABLE>
<P ALIGN="JUSTIFY">The decrease in cash provided by operating activities is primarily attributable to the timing of our 2007 annual maintenance billings, which occurred earlier within fiscal 2006 than was the case in the previous year.  As a result, a larger portion of the 2007 billings were collected in fiscal 2006 in comparison to the 2006 billings.</P>
<P ALIGN="JUSTIFY">Net cash used in investing activities for the current year is $74,860 and includes payments for acquisitions of $34,006, plus $5,383 paid on earn-outs and other acquisition adjustments.  During the first nine months of fiscal 2006, payments for acquisitions totaled $20,744.  Capital expenditures year-to-date are $21,139 compared to $32,228 during the first nine months of fiscal 2006.  Capital expenditures were higher in the prior fiscal year due primarily to a conversion to a new accounting software system and the acquisition of additional facilities, both of which were completed during that fiscal year.  Software development in the current fiscal year was $15,554 compared to $11,908 during the same period a year ago.</P>
<P ALIGN="JUSTIFY">Net cash used in financing activities for the current year is $62,974 and includes the repurchase of 3.3 million shares of our common stock for $71,369 and the payment of dividends of $15,855.  Cash used in financing activities was partially offset by proceeds of $21,435 from the exercise of stock options and the sale of common stock plus $3,355 from the excess tax benefits from stock option exercises.  For the first nine months of fiscal 2006, there were net cash payments on the revolving line of credit of $20,000, dividend payments of $13,285, and payments for the repurchase of our common stock of $12,576.  As in the current year, cash used in financing activities in year-to-date fiscal 2006 was partially offset by proceeds from the exercise of stock options and the sale of common stock of $17,250 and by $6,471 from the excess tax benefits from stock option exercises.</P>
<B><P ALIGN="JUSTIFY">Capital Requirements and Resources</P>
</B><P ALIGN="JUSTIFY">The Company generally uses existing resources and funds generated from operations to meet its capital requirements.  Capital expenditures totaling $21,139 and $32,228 for the nine-month periods ended March 31, 2007 and 2006, respectively, were made for facilities and additional equipment.  These additions were primarily funded from cash generated by operations.  Total consolidated capital expenditures for the Company are not expected to exceed <B>$</B>40,000 for fiscal year 2007.</P>
<P ALIGN="JUSTIFY">The Company renewed a bank credit line on March 7, 2007 which provides for funding of up to $8,000 and bears interest at the prime rate (8.25%</FONT><I><FONT FACE="Arial" SIZE=2 COLOR="#0000ff"> </I></FONT><FONT FACE="Arial" SIZE=2>at March 31, 2007).&nbsp; The credit line expires March 7, 2008 and is secured by $1,000 of investments.  At March 31, 2007, no amount was outstanding.</P>
<P ALIGN="JUSTIFY">The Company obtained an unsecured bank credit line on April 28, 2006 which provides for funding of up to $5,000 and bears interest at the prime rate less 1% (7.25% at March 31, 2007).  The credit line matures on April 30, 2008.  At March 31, no amount was outstanding.</FONT><FONT FACE="Arial" SIZE=2 COLOR="#ff0000"> </P>
</FONT><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">An unsecured revolving bank credit facility allows borrowing of up to $150,000 which may be increased by the Company at any time prior to April 20, 2008 to $225,000.  The unsecured revolving bank credit facility bears interest at a rate equal to (a) LIBOR or (b) an alternate base rate (the greater of (a) the Federal Funds Rate
 plus 1/2% or (b) the Prime Rate), plus an applicable percentage in each case determined by the Company's leverage ratio. The unsecured revolving credit line terminates April 19, 2010.  At June 30, 2006, the revolving bank credit facility balance was $50,000.  At March 31, 2007, the revolving bank credit facility balance was $50,000.</P>
<P ALIGN="JUSTIFY">During fiscal year 2006 and the first nine months of fiscal 2007, the Company has entered into various capital lease obligations totaling $1,303 for the use of certain computer equipment.  At June 30, 2006, $662 was outstanding, of which $241 was included in current maturities.  At March 31, 2007, $840 was outstanding, of which $492 is included in current maturities.</P>
<P ALIGN="JUSTIFY">The Board of Directors has authorized the Company to repurchase shares of its common stock.&nbsp; Under this authorization, the Company may finance its share repurchases with available cash reserves or short-term borrowings on its existing credit facility.&nbsp; The share repurchase program does not include specific price targets or timetables and may be suspended at any time.  At June 30, 2006, there were 2,766 shares in treasury stock and the Company had the remaining authority to repurchase up to 2,225 shares.  On August 25, 2006, the Company's Board of Directors approved a 5,000 increase to the stock repurchase authorization.  During the nine months ended March 31, 2007, the Company repurchased 3,263 treasury shares for $71,369.   The total cost of treasury shares at March 31, 2007 is $123,140.  At March 31, 2007, there were 6,029 shares in treasury stock and the Company had the authority to repurchase up to 3,961 additional shares.</P>
<B><P>Critical Accounting Policies</P>
</B><P ALIGN="JUSTIFY">The Company regularly reviews its selection and application of significant accounting policies and related financial disclosures.  The application of these accounting policies requires that management make estimates and judgments.  The estimates that affect the application of our most critical accounting policies and require our most significant judgments are outlined in Management's Discussion and Analysis of Financial Condition and Results of Operations - &quot;Critical Accounting Policies&quot; - contained in our annual report on Form 10-K for the year ended June 30, 2006.    </P>
<B><P ALIGN="JUSTIFY">Forward Looking Statements </P>
</B><P ALIGN="JUSTIFY">The Management's Discussion and Analysis of Results of Operations and Financial Condition and other portions of this report contain forward-looking statements within the meaning of federal securities laws.  Actual results are subject to risks and uncertainties, including both those specific to the Company and those specific to the industry, which could cause results to differ materially from those contemplated.  The risks and uncertainties include, but are not limited to, the matters detailed at Risk Factors in its Annual Report on Form 10-K for the fiscal year ended June 30, 2006.  Undue reliance should not be placed on the forward-looking statements.  The Company does not undertake any obligation to publicly update any forward-looking statements.</P>
<B><P ALIGN="JUSTIFY">CONCLUSION</P>
</B><P ALIGN="JUSTIFY">The Company's results of operations and its financial position continue to be strong with increased earnings and gross profit for the three and nine months ended March 31, 2007.  This reflects the continuing attitude of cooperation and commitment by each employee, management's ongoing cost control efforts and our commitment to deliver top quality products and services to the markets we serve.</P>
<B><P ALIGN="JUSTIFY">ITEM 3.&#9;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</P>
</B><P ALIGN="JUSTIFY">Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors such as liquidity, will result in losses for a certain financial instrument or group of financial instruments.  We are currently exposed to credit risk on credit extended to customers and interest risk on investments in U.S. government securities.  We actively monitor these risks through a variety of controlled procedures involving senior management.  We do not currently use any derivative financial instruments.  Based on the controls in place, credit worthiness of the customer base and the relative size of these financial instruments, we believe the risk associated with these exposures will not have a material adverse effect on our consolidated financial position or results of operations.</P>
<B><P>ITEM 4.&#9;CONTROLS AND PROCEDURES</P>
</B><P ALIGN="JUSTIFY">An evaluation was carried out under the supervision and with the participation of our management, including our Company's Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operations of our disclosure controls and procedures pursuant to Exchange Act Rules 13a-15 and 15d-15.  Based upon that evaluation as of the end of the period covered by this report, the CEO and CFO concluded that our disclosure controls and procedures are effective in timely alerting them to material information relating to us (including our consolidated subsidiaries) required to be included in our periodic SEC filings.  There was no change in the Company's internal control over financial reporting that occurred during the quarter ended March 31, 2007 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.</P>
<P ALIGN="JUSTIFY"></P>
<B><P ALIGN="JUSTIFY">PART II. &#9;OTHER INFORMATION</P>
<P ALIGN="JUSTIFY">ITEM 2.&#9;UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</P>
<P ALIGN="JUSTIFY">(c) Issuer Purchases of Equity Securities</P>
</B><P ALIGN="JUSTIFY">The following shares of the Company were repurchased for the three month period ended March, 31, 2007:</P>

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=656>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=80>
<B><FONT FACE="Arial" SIZE=1><P>
<BR>
<BR>
<BR>
Period</B>
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=80><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=80>
<B><FONT FACE="Arial" SIZE=1><P ALIGN="CENTER">Total<BR>
 Number of<BR>
 Shares<BR>
 Purchased</B>
<hr width="100%" color=black noshade size="1">
</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 HEIGHT=80>
<B><FONT FACE="Arial" SIZE=1><P ALIGN="CENTER"><BR>
Average<BR>
 Price of<BR>
 Share<BR>
<hr width="100%" color=black noshade size="1">
</B></FONT></TD>
<TD WIDTH="24%" VALIGN="TOP" COLSPAN=2 HEIGHT=80>
<B><FONT FACE="Arial" SIZE=1><P ALIGN="CENTER">Total Number of<BR>
 Shares Purchased<BR>
 as Part of Publicly<BR>
 Announced Plans</B>
<hr width="100%" color=black noshade size="1">
 </FONT></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=80>
<B><FONT FACE="Arial" SIZE=1><P ALIGN="CENTER">Maximum Number<BR>
 of Shares that May<BR>
 Yet Be Purchased<BR>
 Under the Plans (1)</B></SUP>
<hr width="100%" color=black noshade size="1">
 </FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=1><P>January 1-31, 2007</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=1><P>   </FONT></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT"> $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;       -   </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT">-</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT">4,964,875 </FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=1><P>February 1-28, 2007</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT">297,700 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT"> $  23.58 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT">297,700 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT">4,667,175 </FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=1><P>March 1-31, 2007</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT">705,700 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT"> $  23.12 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT">705,700 </FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT">3,961,475 </FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=18><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=18><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18><P></P>
<hr width="100%" color=black noshade size="1">
</TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=19>
<B><FONT FACE="Arial" SIZE=1><P>Total</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=19>
<B><FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT">1,003,400 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=19>
<B><FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT"> $  23.26 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=19>
<B><FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT">1,003,400 </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=19><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=19>
<B><FONT FACE="Arial" SIZE=1><P ALIGN="RIGHT">3,961,475 </B></FONT></TD>
</TR>
<TR><TD WIDTH="24%" VALIGN="TOP" HEIGHT=18><P></P>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=18><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=18><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="21%" VALIGN="TOP" HEIGHT=18><P></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-TOP: black 1pt solid"></DIV>
</TD>
</TR>
</TABLE>



<B><SUP><P>(1)</SUP> </B>Purchases made under the stock repurchase authorization approved by the Company's Board of Directors on October 4, 2002 with respect to 3.0 million shares, which was increased by 2.0 million shares on April 29, 2005.  On August 25, 2006, the Company's Board of Directors approved a 5.0 million share increase to the stock repurchase authorization.  These authorizations have no specific dollar or share price targets and no expiration dates.</P></FONT>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="12%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ITEM 6.</B></FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="84%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">EXHIBITS</B></FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="84%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>31.1 </FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="84%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>Certification of the Chief Executive Officer dated May 10, 2007.</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>31.2 </FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="84%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>Certification of the Chief Financial Officer dated May 10, 2007.</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>32.1 </FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="84%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>Written Statement of the Chief Executive Officer dated May 10, 2007.</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>32.2 </FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="84%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>Written Statement of the Chief Financial Officer dated May 10, 2007.</FONT></TD>
</TR>
</TABLE>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER"></P></FONT>
<HR>
<FONT FACE="Arial"><P ALIGN="CENTER">SIGNATURES</P>
</FONT><B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY"></P>
</B><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.</P>
<P ALIGN="JUSTIFY"></P>
<P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY"> JACK HENRY &amp; ASSOCIATES, INC.</FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Date: May 10, 2007</FONT></TD>
<TD WIDTH="47%" VALIGN="TOP">
<U><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">/s/ John F. Prim</U></FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">John F. Prim</FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Chief Executive Officer    </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Date: May 10, 2007</FONT></TD>
<TD WIDTH="47%" VALIGN="TOP">
<U><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">/s/ Kevin D. Williams</U></FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Kevin D. Williams</FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Chief Financial Officer and Treasurer </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="49%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>
<P></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>exh31-1.htm
<DESCRIPTION>CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER
<TEXT>
<HTML>
<HEAD>
<TITLE>JKHY CERTIFICATION</TITLE>
</HEAD>
<BODY>
<HR>

<P>EXHIBIT 31.1</P>

<P ALIGN="CENTER"><B><U>CERTIFICATION</P></B></U>
<P>I, John F. Prim, certify that:</P>
<P ALIGN="JUSTIFY">1. I have reviewed this quarterly report on Form 10-Q of Jack Henry &amp; Associates, Inc.;</P>
<P ALIGN="JUSTIFY">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; </P>
<P ALIGN="JUSTIFY">3. 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; </P>
<P ALIGN="JUSTIFY">4. The registrant'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:</P>
<P ALIGN="JUSTIFY">a) 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;</P>
<P ALIGN="JUSTIFY">b) 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;</P>
<P ALIGN="JUSTIFY">c) Evaluated the effectiveness of the registrant'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</P>
<P ALIGN="JUSTIFY">d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter, (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and</P>
<P ALIGN="JUSTIFY">5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the  registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):</P>
<P ALIGN="JUSTIFY">a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information ; and</P>
<P ALIGN="JUSTIFY">b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.</P>
<P>Date:</FONT><FONT SIZE=2> </FONT><FONT FACE="Arial" SIZE=2>May 10, 2007</P></FONT>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="53%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>/s/ John F. Prim</FONT></TD>
</TR>
<TR><TD WIDTH="53%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>------------------------------</FONT></TD>
</TR>
<TR><TD WIDTH="53%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>John F. Prim</FONT></TD>
</TR>
<TR><TD WIDTH="53%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
<P></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>exh31-2.htm
<DESCRIPTION>CERTIFICATION OF THE CHIEF FINANCIAL OFFICER
<TEXT>
<HTML>
<HEAD>
<TITLE>JKHY CERTIFICATION</TITLE>
</HEAD>
<BODY>
<HR>

<P>EXHIBIT 31.2</P>

<P ALIGN="CENTER"><B><U>CERTIFICATION</P></B></U>
<P>I, Kevin D. Williams, certify that:</P>
<P ALIGN="JUSTIFY">1. I have reviewed this quarterly report on Form 10-Q of Jack Henry &amp; Associates, Inc.;</P>
<P ALIGN="JUSTIFY">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; </P>
<P ALIGN="JUSTIFY">3. 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; </P>
<P ALIGN="JUSTIFY">4. The registrant'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:</P>
<P ALIGN="JUSTIFY">a) 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;</P>
<P ALIGN="JUSTIFY">b) 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;</P>
<P ALIGN="JUSTIFY">c) Evaluated the effectiveness of the registrant'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</P>
<P ALIGN="JUSTIFY">d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter, (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and</P>
<P ALIGN="JUSTIFY">5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the  registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):</P>
<P ALIGN="JUSTIFY">a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information ; and</P>
<P ALIGN="JUSTIFY">b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.</P>
<P>Date:</FONT><FONT SIZE=2> </FONT><FONT FACE="Arial" SIZE=2>May 10, 2007</P></FONT>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="52%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="48%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>/s/ Kevin D. Williams</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="48%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>-------------------------------</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="48%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>Kevin D. Williams</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="48%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>Chief Financial Officer</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="48%" VALIGN="TOP">&nbsp;</TD>
</TR>
</TABLE>
<P></P>
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>exh32-1.htm
<DESCRIPTION>WRITTEN STATEMENT OF THE CHIEF EXECUTIVE OFFICER
<TEXT>
<HTML>
<HEAD>
<TITLE>JKHY Written Statement of the Chief Executive Officer</TITLE>
</HEAD>
<BODY>
<HR>

<P>EXHIBIT 32.1</P>

<P ALIGN="CENTER">Written Statement of the Chief Executive Officer<BR>
Pursuant to 18 U.S.C. Section 1350</P>
<P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY">Solely for the purposes of complying with 18 U.S.C. Section 1350, I, the undersigned Chief Executive Officer of Jack Henry &amp; Associates, Inc. (the "Company"), hereby certify that the Quarterly Report on Form 10-Q of the Company for the three and nine months ended March 31, 2007 (the "Report") fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</P>
</FONT><FONT SIZE=2></FONT>
<FONT FACE="Arial"><P>&nbsp;</P>
</FONT><FONT FACE="Arial" SIZE=2><P>Dated:  May 10, 2007</P></FONT>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="53%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>*/s/ John F. Prim</FONT></TD>
</TR>
<TR><TD WIDTH="53%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>------------------------------</FONT></TD>
</TR>
<TR><TD WIDTH="53%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>John F. Prim</FONT></TD>
</TR>
<TR><TD WIDTH="53%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="47%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>Chief Executive Officer</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=2>
<P>&nbsp;</P>
</FONT><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">*A signed original of this written statement required by Section 906 has been provided to Jack Henry &amp; Associates, Inc. and will be retained by Jack Henry &amp; Associates, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.</P>
</FONT>
<P></P>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>exh32-2.htm
<DESCRIPTION>WRITTEN STATEMENT OF THE CHIEF FINANCIAL OFFICER
<TEXT>
<HTML>
<HEAD>
<TITLE>JKHY Written Statement of the Chief Financial Officer</TITLE>
</HEAD>
<BODY>
<HR>

<P>EXHIBIT 32.2</P>

<P ALIGN="CENTER">Written Statement of the Chief Financial Officer<BR>
Pursuant to 18 U.S.C. Section 1350</P>
<P ALIGN="CENTER"></P>
<P ALIGN="JUSTIFY">Solely for the purposes of complying with 18 U.S.C. Section 1350, I, the undersigned Chief Financial Officer of Jack Henry &amp; Associates, Inc. (the "Company"), hereby certify that the Quarterly Report on Form 10-Q of the Company for the three and nine months ended March 31, 2007 (the "Report") fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</P>
</FONT><FONT SIZE=2></FONT>
<FONT FACE="Arial"><P>&nbsp;</P>
</FONT><FONT FACE="Arial" SIZE=2><P>Dated: </FONT><FONT SIZE=2> </FONT><FONT FACE="Arial" SIZE=2>May 10, 2007</P></FONT>
<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR><TD WIDTH="52%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>  </FONT></TD>
<TD WIDTH="48%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>* /s/ Kevin D. Williams</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="48%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>-------------------------------</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="48%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P>Kevin D. Williams</FONT></TD>
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<FONT FACE="Arial" SIZE=2><P>Chief Financial Officer</FONT></TD>
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</FONT><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">*A signed original of this written statement required by Section 906 has been provided to Jack Henry &amp; Associates, Inc. and will be retained by Jack Henry &amp; Associates, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.</P></FONT>
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