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<SEC-DOCUMENT>0001206774-10-001797.txt : 20100805
<SEC-HEADER>0001206774-10-001797.hdr.sgml : 20100805
<ACCEPTANCE-DATETIME>20100805160040
ACCESSION NUMBER:		0001206774-10-001797
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20100630
FILED AS OF DATE:		20100805
DATE AS OF CHANGE:		20100805

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMTECH SYSTEMS INC
		CENTRAL INDEX KEY:			0000720500
		STANDARD INDUSTRIAL CLASSIFICATION:	SPECIAL INDUSTRY MACHINERY, NEC [3559]
		IRS NUMBER:				860411215
		STATE OF INCORPORATION:			AZ
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11412
		FILM NUMBER:		10994431

	BUSINESS ADDRESS:	
		STREET 1:		131 S CLARK DR
		CITY:			TEMPE
		STATE:			AZ
		ZIP:			85281
		BUSINESS PHONE:		6029675146

	MAIL ADDRESS:	
		STREET 1:		131 SOUTH CLARK DRIVE
		CITY:			TEMPE
		STATE:			AZ
		ZIP:			85281

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	QUARTZ ENGINEERING & MATERIALS INC
		DATE OF NAME CHANGE:	19870715
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>amtech_10q.htm
<DESCRIPTION>QUARTERLY REPORT
<TEXT>
<html>
<head>
    <title>amtech_10q.htm</title>
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    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="4" style="FONT-FAMILY: serif">UNITED STATES<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="4" style="FONT-FAMILY: serif">SECURITIES AND EXCHANGE COMMISSION</font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: serif"><br>Washington, D.C. 20549<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="5" style="FONT-FAMILY: serif">__________<br>FORM 10-Q</font></font></div>
    <div>&#160;</div>
    <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">(Mark One) </font></font></div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" style="BORDER-COLLAPSE: collapse; ">
<tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">[X]</font></td>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160; </td>
            <td valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
      EXCHANGE ACT OF 1934</font></td>
          </tr><tr style="LINE-HEIGHT: 6pt;">
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">&#160;</font></td>
            <td nowrap valign="top">&#160;</td>
            <td valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">&#160;
      </font></td>
          </tr></table>
    </div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">For the quarterly
period ended: June 30, 2010 </font></div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">OR </font></div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap valign="top" width="1%"><font size="2" style="FONT-FAMILY: serif">[&#160;&#160;&#160; ]</font></td>
            <td align="left" nowrap valign="top" width="1%">&#160;&#160;&#160;&#160; </td>
            <td align="left" nowrap valign="top" width="98%"><font size="2" style="FONT-FAMILY: serif">TRANSITION REPORT PURSUANT </font><font size="2" style="FONT-FAMILY: serif">TO </font><font size="2" style="FONT-FAMILY: serif">SECTION </font><font size="2" style="FONT-FAMILY: serif">13 </font><font size="2" style="FONT-FAMILY: serif">OR </font><font size="2" style="FONT-FAMILY: serif">15</font><font size="2" style="FONT-FAMILY: serif">(d) </font><font size="2" style="FONT-FAMILY: serif">OF </font><font size="2" style="FONT-FAMILY: serif">THE </font><font size="2" style="FONT-FAMILY: serif">SECURITIES EXCHANGE ACT OF 1934
    </font></td>
          </tr></table>
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">For the transition
period from ________________ to ________________<br></font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">Commission File
Number: </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">0-11412</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="100%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="5" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC.</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="100%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(Exact name of registrant as specified
      in its charter)</font></td>
          </tr></table>
    </div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="50%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Arizona</font></td>
            <td nowrap width="49%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">86-0411215</font></td>
          </tr><tr valign="bottom">
            <td nowrap width="50%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(State or other jurisdiction
of</font></td>
            <td nowrap width="49%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(I.R.S. Employer</font></td>
          </tr><tr valign="bottom">
            <td nowrap width="50%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">incorporation or organization)</font></td>
            <td nowrap width="49%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">Identification No.)</font></td>
          </tr><tr style="LINE-HEIGHT: 6pt;">
            <td colspan="2" width="99%">&#160;</td>
          </tr><tr valign="bottom">
            <td nowrap width="50%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">131 South Clark Drive,
      Tempe, Arizona</font></td>
            <td nowrap width="49%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">85281</font></td>
          </tr><tr valign="bottom">
            <td nowrap width="50%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(Address of principal executive
      offices)</font></td>
            <td nowrap width="49%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">(Zip
Code)</font></td>
          </tr></table>
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Registrant&#8217;s
telephone number, including area code: </font><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="2" style="FONT-FAMILY: serif">480-967-5146</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Indicate by a 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. [X] Yes [&#160;&#160; ] No</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Indicate by check
mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every Interactive Data File required to be submitted
and posted pursuant to Rule 405 of Regulation S-T (<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#167;</font>232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit and post such files). [&#160;&#160; ] Yes
[&#160;&#160;&#160;] No.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Indicate by check
mark whether the registrant is a large accelerated filer, an accelerated filer,
a non-accelerated filer, or a smaller reporting company. See the definitions of
&#8220;large accelerated filer,&#8221; &#8220;accelerated filer&#8221; and &#8220;smaller reporting company&#8221;
in Rule 12b-2 of the Exchange Act. (Check one):</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="67%"><font size="2" style="FONT-FAMILY: serif">Large accelerated filer [&#160;&#160; ]</font></td>
            <td nowrap width="32%" style="TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">Accelerated filer [&#160;&#160;
    ]</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="67%"><font size="2" style="FONT-FAMILY: serif">Non-accelerated filer [&#160;&#160; ] (Do not check if a smaller
      reporting company)</font></td>
            <td nowrap width="32%" style="TEXT-ALIGN: left"><font size="2" style="FONT-FAMILY: serif">Smaller Reporting Company
  [X]</font></td>
          </tr></table>
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Indicate by check
mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act). Yes [&#160;&#160; ] No [X]</font></div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">Shares of Common Stock
outstanding as of&#160;July 27, 2010: 9,021,727 </font></div><br>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC. AND SUBSIDIARIES<br>TABLE
OF CONTENTS </font></font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="97%">
            </td>
            <td align="right" nowrap width="2%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">Page</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">PART I. FINANCIAL
      INFORMATION</font></font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-WEIGHT: bold">Item 1. Condensed Consolidated
      Financial Statements</font></font></td>
            <td align="right" nowrap width="2%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Condensed Consolidated Balance Sheets</font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      June 30, 2010 (Unaudited) and September 30, 2009</font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">3</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Condensed Consolidated Statements of Operations (Unaudited)</font></td>
            <td align="right" nowrap width="2%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Three and Nine Months Ended June 30, 2010 and 2009</font></td>
            <td align="right" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">5</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Condensed Consolidated Statements of Cash Flows (Unaudited)</font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Nine Months Ended June 30, 2010 and 2009</font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">6</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Notes to Condensed Consolidated Financial Statements (Unaudited)</font></td>
            <td align="right" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">7</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      <font style="DISPLAY: inline; FONT-WEIGHT: bold">Item 2. Management&#8217;s
      Discussion and Analysis of Financial Condition and Results of
      Operations</font></font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%">
              <div><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="2" style="FONT-FAMILY: serif">Caution Regarding
      Forward-Looking Statements</font></div>
            </td>
            <td align="right" nowrap width="2%"><font size="2">19</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#cceeff">
              <div><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="2" style="FONT-FAMILY: serif">Overview</font></div>
            </td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">20</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%">
              <div><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="2" style="FONT-FAMILY: serif">Results of
      Operations</font></div>
            </td>
            <td align="right" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">20</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#cceeff">
              <div><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="2" style="FONT-FAMILY: serif">Liquidity and Capital
      Resources</font></div>
            </td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">24</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%">
              <div><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="2" style="FONT-FAMILY: serif">Off-Balance Sheet
      Arrangements</font></div>
            </td>
            <td align="right" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">25</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#cceeff">
              <div><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="2" style="FONT-FAMILY: serif">Contractual
      Obligations</font></div>
            </td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="2">25</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%">
              <div><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="2" style="FONT-FAMILY: serif">Critical Accounting
      Policies</font></div>
            </td>
            <td align="right" nowrap width="2%"><font size="2">26</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#cceeff">
              <div><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="2" style="FONT-FAMILY: serif">Impact of Recently Issued
      Accounting Pronouncements</font></div>
            </td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="2">26</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-WEIGHT: bold">Item 3. Quantitative and
      Qualitative Disclosures About Market Risk</font></font></td>
            <td align="right" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">27</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#cceeff"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-WEIGHT: bold">Item 4. Controls and
      Procedures</font></font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">27</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2">PART II. OTHER
      INFORMATION</font></font></td>
            <td align="right" nowrap width="2%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#cceeff"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-WEIGHT: bold">Item 1A. Risk
      Factors</font></font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">28</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#ffffff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      <font style="DISPLAY: inline; FONT-WEIGHT: bold">Item 6.
      Exhibits</font></font></td>
            <td align="right" nowrap width="2%" bgcolor="#ffffff"><font size="2" style="FONT-FAMILY: serif">28</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">SIGNATURES</font></font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">29</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="97%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">EXHIBIT INDEX</font></font></td>
            <td align="right" nowrap width="2%"><font size="2" style="FONT-FAMILY: serif">30</font></td>
          </tr></table>
    </div><br>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">2</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">PART I FINANCIAL
INFORMATION</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 1. Condensed Consolidated Financial
Statements</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC. AND
SUBSIDIARIES<br>Condensed Consolidated Balance Sheets<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">(in thousands except share data)</font></font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; TEXT-ALIGN: center; ">
<tr valign="bottom">
            <td align="left" nowrap width="90%">
            </td>
            <td nowrap width="1%">
            </td>
            <td colspan="2" nowrap width="4%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%">
            </td>
            <td colspan="2" nowrap width="4%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">September 30,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%">
            </td>
            <td nowrap width="1%">
            </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%">
            </td>
            <td nowrap width="1%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td colspan="2" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">(Unaudited)</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Assets</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Current Assets</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Cash and cash
      equivalents</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">42,664</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">42,298</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Restricted cash</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">4,927</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">1,496</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Accounts receivable</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Trade (less allowance for doubtful accounts of $229 and $465 at</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      June 30, 2010 and September 30, 2009, respectively)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2">13,290</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2">8,409</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Unbilled and other</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">10,926</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">5,156</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Inventories</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">20,514</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">13,455</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Deferred income
taxes</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">2,900</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">2,290</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Note receivable, net</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">500</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">-</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Prepaid expenses and
      other</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">2,659</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">841</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Total current assets</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">98,380</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">73,945</font></td>
          </tr><tr>
            <td colspan="7" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Property, Plant and Equipment -
      Net</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">9,145</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">8,477</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Deferred Income Taxes - Long
      Term</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">1,670</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">1,140</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Intangible Assets - Net</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">2,391</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">3,828</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Goodwill</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">4,416</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">5,136</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Other Assets</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">24</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">-</font></td>
          </tr><tr>
            <td align="left" nowrap width="90%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-WEIGHT: bold">Total Assets</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2">$&#160;&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2">116,026</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2">$&#160;&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2">92,526</font></td>
          </tr></table>
    </div>
    <div style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">&#160;</font></div>
    <div style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">The
accompanying notes are an integral part of these condensed consolidated
financial statements.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">3 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC. AND
SUBSIDIARIES<br>Condensed Consolidated Balance Sheets <br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">(in thousands except share data)</font></font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; TEXT-ALIGN: center; ">
<tr valign="bottom">
            <td align="left" nowrap width="87%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td colspan="3" nowrap width="7%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%">
            </td>
            <td colspan="2" nowrap width="4%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">September 30,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td colspan="3" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%">
            </td>
            <td align="left" nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="7%"><font size="2" style="FONT-FAMILY: serif">(Unaudited)</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="3%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Liabilities and Stockholders'
      Equity</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Current Liabilities</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Accounts payable</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">10,933</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">4,181</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Current maturities of long-term debt</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">119</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">121</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Accrued compensation and
      related taxes</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">5,287</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">2,877</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Accrued warranty expense</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">1,491</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">1,429</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Deferred profit</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">7,480</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">4,727</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Customer deposits</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">12,498</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">2,861</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Other accrued
      liabilities</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">1,802</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">1,721</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Income taxes payable</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">3,240</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">160</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%">
              <div><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="2" style="FONT-FAMILY: serif">Total current
      liabilities</font></div>
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">42,850</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">18,077</font></td>
          </tr><tr>
            <td colspan="8" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Income Taxes Payable
      Long-term</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">660</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">480</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Other Long-Term
    Obligations</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">60</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">164</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff">
              <div><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="2" style="FONT-FAMILY: serif">Total
      liabilities</font></div>
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">43,570</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">18,721</font></td>
          </tr><tr>
            <td colspan="8" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Commitments and
      Contingencies</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
          </tr><tr>
            <td colspan="8" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Stockholders' Equity</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Preferred stock; 100,000,000
      shares authorized; none issued</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">-</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">-</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Common stock; $0.01 par value; 100,000,000 shares authorized;</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      shares issued and outstanding: 9,020,727 and 8,961,494</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      at June 30, 2010 and September 30, 2009, respectively</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">90</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">90</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Additional paid-in
      capital</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">71,334</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">70,403</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Accumulated other comprehensive income (loss)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(5,779</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">661</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Retained Earnings</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">6,811</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">2,651</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Total stockholders' equity</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">72,456</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">73,805</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Total Liabilities and Stockholders'
      Equity</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">116,026</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">92,526</font></td>
          </tr><tr>
            <td align="left" nowrap width="87%">&#160; </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
          </tr></table>
    </div>
    <div style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">The
accompanying notes are an integral part of these condensed consolidated
financial statements.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">4 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC. AND
SUBSIDIARIES<br>Condensed Consolidated Statements of
Operations<br></font></font><font size="2" style="FONT-FAMILY: serif">(Unaudited)<br></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">(in thousands, except per share data)</font></font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; TEXT-ALIGN: center; ">
<tr valign="bottom">
            <td align="left" nowrap width="69%">
            </td>
            <td colspan="7" nowrap width="15%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Three Months Ended June
    30,</font></font></td>
            <td nowrap width="1%">
            </td>
            <td colspan="7" nowrap width="15%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Nine Months Ended June
    30,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%">
            </td>
            <td colspan="3" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Revenues, net of returns and
      allowances</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">43,072</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">12,528</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">74,606</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">41,304</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%"><font size="2" style="FONT-FAMILY: serif">Cost of sales</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">27,320</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">8,946</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">49,546</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">29,279</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Gross profit</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">15,752</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">3,582</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">25,060</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">12,025</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%"><font size="2" style="FONT-FAMILY: serif">Selling, general and administrative</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">8,179</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">3,733</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">16,217</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">11,318</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Impairment and restructuring
      charges</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">610</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2">-</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">610</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2">1,682</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%"><font size="2" style="FONT-FAMILY: serif">Research and development, net of grants earned</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">538</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">151</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">1,260</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2">527</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Operating income (loss)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">6,425</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(302</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">6,973</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(1,502</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%"><font size="2" style="FONT-FAMILY: serif">Interest and other income (expense), net</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(219</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(33</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(293</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2">14</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Income (loss) before income
    taxes</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">6,206</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(335</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">6,680</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(1,488</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%"><font size="2" style="FONT-FAMILY: serif">Income tax expense (benefit)</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">2,330</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(100</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">2,520</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2">(100</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      <font style="DISPLAY: inline; FONT-WEIGHT: bold">Net income
      (loss)</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">3,876</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(235</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">4,160</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(1,388</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr>
            <td align="left" nowrap width="69%">&#160; </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Earnings (Loss) Per
    Share:</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%"><font size="2" style="FONT-FAMILY: serif">Basic earnings (loss) per share</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">0.43</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">(0.03</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">0.46</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2">$</font></td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">(0.15</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Weighted average shares
      outstanding</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">9,021</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">8,960</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">9,004</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2">9,038</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr>
            <td align="left" nowrap width="69%">&#160; </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Diluted earnings (loss) per
    share</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">0.42</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(0.03</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">0.45</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(0.15</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="69%"><font size="2" style="FONT-FAMILY: serif">Weighted average shares outstanding</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">9,231</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">8,960</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">9,184</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2">9,038</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr></table>
    </div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#160;</font></div>
    <div style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">The
accompanying notes are an integral part of these condensed consolidated
financial statements.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">5 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div>
    <div><font size="1" style="FONT-FAMILY: serif">&#160;</font></div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC. AND
SUBSIDIARIES<br>Condensed Consolidated Statements Of Cash
Flows<br></font></font><font size="2" style="FONT-FAMILY: serif">(Unaudited)<br></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">(in thousands)</font></font></div>
    <div><font size="1" style="FONT-FAMILY: serif">&#160;</font></div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="FONT-SIZE: 8pt; LINE-HEIGHT: 11pt; BORDER-COLLAPSE: collapse; TEXT-ALIGN: center; ">
<tr valign="bottom">
            <td align="left" nowrap width="87%">
            </td>
            <td colspan="7" nowrap width="13%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Nine Months Ended June
    30,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%">
            </td>
            <td colspan="3" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Operating Activities</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Net income (loss)</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">4,160</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">(1,388</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Adjustments to reconcile net income (loss) to net cash provided by
      operating activities:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Depreciation and
      amortization</font></div>
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">1,283</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">1,138</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Write-down of
      inventory</font></div>
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">509</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">392</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Deferred income
      taxes</font></div>
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">(1,242</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">1,374</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Impairment of long-lived
      assets</font></div>
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">610</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">1,062</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Non-cash share based
      compensation expense</font></div>
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">757</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">498</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Provision for allowance for
      doubtful accounts</font></div>
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">450</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">129</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Changes in operating
      assets and liabilities:</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Restricted
    cash</font></div>
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(4,108</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">1,773</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Accounts
      receivable</font></div>
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">(14,359</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">6,683</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Inventories</font></div>
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(10,419</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">2,618</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Accrued income
      taxes</font></div>
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">2,982</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">(659</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Prepaid expenses and other
      assets</font></div>
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(1,649</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(458</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Accounts
      payable</font></div>
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">8,079</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">(4,161</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Accrued liabilities and
      customer deposits</font></div>
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">14,931</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(3,920</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%">
              <div><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font size="1" style="FONT-FAMILY: serif">Deferred
    profit</font></div>
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">3,881</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">(309</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Net cash provided by
      operating activities</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">5,865</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">4,772</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Investing Activities</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Purchases of property,
      plant and equipment</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(3,094</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(1,046</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Decrease in restricted
      cash long-term</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">-</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">184</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Payment for licensing
      agreement</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">-</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(800</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Investment in note
      receivable</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">(1,000</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">-</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Investment in
    R2D</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">-</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">(167</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Net cash used in
      investing activities</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">(4,094</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">(1,829</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Financing Activities</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Proceeds from issuance of
      common stock</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">155</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">-</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Purchase of common stock
      under repurchase program</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">-</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(448</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Payments on long-term
      obligations</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">(88</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">(117</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Excess tax benefit of
      stock options</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">19</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">-</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Net cash provided by
      (used in) financing activities</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">86</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">(565</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Effect of Exchange Rate Changes on
      Cash</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">(1,491</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">26</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Net Increase (Decrease) in Cash and Cash
      Equivalents</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">366</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">2,404</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Cash and Cash Equivalents, Beginning of
      Period</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">42,298</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">37,501</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Cash and Cash Equivalents, End of
      Period</font></font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">42,664</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">39,905</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Supplemental Cash Flow
      Information:</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Interest paid</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">50</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">20</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Income tax
    refunds</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">370</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">1,473</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Income tax
    payments</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">1,074</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">550</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Supplemental Non-cash Financing
      Activities:</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="4%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="87%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;Transfer inventory to
      capital equipment</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">-</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%"><font size="1" style="FONT-FAMILY: serif">116</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr></table>
    </div>
    <div><font size="1" style="FONT-FAMILY: serif">&#160;</font></div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">The accompanying notes
are an integral part of these condensed consolidated financial
statements.</font></div>
    <div><font size="1" style="FONT-FAMILY: serif">&#160;</font></div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">6 </font></div>
    <div><font size="1" style="FONT-FAMILY: serif">&#160;</font></div>
    <hr align="center" noshade size="1" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC. AND
SUBSIDIARIES<br></font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<br>THREE AND NINE
MONTHS ENDED June 30, 2010 AND 2009<br>(UNAUDITED) </font></font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">1. Basis of Presentation</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Nature of Operations and Basis of
Presentation</font></font><font size="2" style="FONT-FAMILY: serif"> &#8211; Amtech
Systems, Inc. (the &#8220;Company&#8221;) designs, assembles, sells and installs capital
equipment and related consumables used in the manufacture of solar cells,
semiconductors and wafers of various materials, primarily for the solar and
semiconductor industries. The Company sells these products worldwide, primarily
in Asia, the United States and Europe. In addition, the Company provides
semiconductor manufacturing support services.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The Company serves
niche markets in industries that are experiencing rapid technological advances,
and which historically have been very cyclical. Therefore, future profitability
and growth depend on the Company&#8217;s ability to develop or acquire and market
profitable new products, and on its ability to adapt to cyclical
trends.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The accompanying
unaudited condensed consolidated financial statements have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission
(the &#8220;SEC&#8221;), and consequently do not include all disclosures normally required
by U.S. generally accepted accounting principles. In the opinion of management,
the accompanying unaudited interim condensed consolidated financial statements
contain all adjustments necessary, all of which are normal and recurring in
nature, to present fairly our financial position, results of operations and cash
flows. Certain information and note disclosures normally included in financial
statements have been condensed or omitted pursuant to the rules and regulations
of the SEC. These condensed consolidated financial statements should be read in
conjunction with the audited consolidated financial statements and notes thereto
included in our Annual Report on Form 10-K for the fiscal year ended September
30, 2009.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The consolidated
results of operations for the three and nine month periods ended June 30, 2010,
are not necessarily indicative of the results to be expected for the full
year.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Use of Estimates &#8211; </font></font><font size="2" style="FONT-FAMILY: serif">The preparation of financial statements in
conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results could
differ from those estimates.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Revenue Recognition</font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif"> &#8211; </font></font></font><font size="2" style="FONT-FAMILY: serif">Revenue
is recognized upon shipment of the Company&#8217;s proven technology equal to the
sales price less the greater of (i) the fair value of undelivered services and
(ii) the contingent portion of the sales price, which is generally 10-20% of the
total contract price. The entire cost of the equipment relating to proven
technology is recorded upon shipment. The remaining contractual revenue,
deferred costs and installation costs are recorded upon successful installation
of the product.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">For purposes of
revenue recognition, proven technology means the Company has a history of at
least two successful installations. New technology systems are those systems
with respect to which the Company cannot demonstrate that it can meet the
provisions of customer acceptance at the time of shipment</font><font size="2" style="FONT-FAMILY: sans-serif">. </font><font size="2" style="FONT-FAMILY: serif">The full amount of revenue and costs of new technology shipments is
recognized upon the completion of installation at the customers&#8217; premises and
acceptance of the product by the customer.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Revenue from services
is recognized as the services are performed. Revenue from prepaid service
contracts is recognized ratably over the life of the contract. Revenue from
spare parts is recorded upon shipment.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">7 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Deferred Profit</font> </font><font size="2" style="FONT-FAMILY: serif">&#8211; Revenue deferred pursuant to the Company&#8217;s
revenue recognition policy, net of the related deferred costs, if any, is
recorded as deferred profit in current liabilities. The components of deferred
profit are as follows: </font></div>
    <div><font size="1" style="FONT-FAMILY: serif">&#160;</font></div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="80%" style="LINE-HEIGHT: 13pt; BORDER-COLLAPSE: collapse; TEXT-ALIGN: center; ">
<tr valign="bottom">
            <td align="left" nowrap width="90%">
            </td>
            <td colspan="2" nowrap width="4%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%">
            </td>
            <td colspan="2" nowrap width="4%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">September 30,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%">
            </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%"><font size="2">&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%">
            </td>
            <td colspan="5" nowrap width="9%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in
  thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Deferred revenues</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">8,329</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">6,904</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%"><font size="2" style="FONT-FAMILY: serif">Deferred costs</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">849</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">2,177</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="90%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Deferred profit</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">7,480</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">4,727</font></td>
          </tr><tr>
            <td align="left" nowrap width="90%">&#160;</td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="3%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
          </tr></table>
    </div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Concentrations of Credit Risk &#8211;
</font></font><font size="2" style="FONT-FAMILY: serif">Financial instruments that
potentially subject the Company to significant concentrations of credit risk
consist principally of trade accounts receivable. The Company&#8217;s customers,
located throughout the world, consist of manufacturers of solar cells,
semiconductors, semiconductor wafers, and MEMS. Credit risk is managed by
performing ongoing credit evaluations of the customers&#8217; financial condition, by
requiring significant deposits where appropriate, and by actively monitoring
collections. Letters of credit are required of certain customers depending on
the size of the order, type of customer or its creditworthiness, and its country
of domicile. Reserves for potentially uncollectible receivables are maintained
based on an assessment of collectability.</font></div>
    <div><font size="1" style="FONT-FAMILY: serif">&#160;</font></div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">As of June 30, 2010,
two customers accounted for 21% and 21% of accounts receivable,
individually.</font></div>
    <div><font size="1" style="FONT-FAMILY: serif">&#160;</font></div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Restricted Cash</font> </font><font size="2" style="FONT-FAMILY: serif">&#8211; </font><font size="2" style="FONT-FAMILY: serif">Restricted cash of $4.9 million and $1.5 million as of June 30, 2010 and
September 30, 2009, consists of collateral for bank guarantees required by
certain customers from whom deposits have been received in advance of shipment
and $0.5 million of cash in an escrow account related to contingent payments to
be paid to the sellers of R2D due to the fulfillment of certain
requirements.</font></div>
    <div><font size="1" style="FONT-FAMILY: serif">&#160;</font></div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Accounts Receivable &#8211; Unbilled and
Other</font> </font><font size="2" style="FONT-FAMILY: serif">&#8211; Unbilled and other
accounts receivable consist mainly of the contingent portion of the sales price
that is not collectible until successful installation of the product. These
amounts are generally billed upon final customer acceptance. The majority of
these amounts are offset by balances included in deferred profit. As of June 30,
2010, the unbilled and other includes $2.3 million of Value Added Tax (VAT)
receivables at our Netherlands operations. These are taxes that we have paid to
our vendors that will be refunded to the Company by the government.</font></div>
    <div><font size="1" style="FONT-FAMILY: serif">&#160;</font></div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Inventories</font> </font><font size="2" style="FONT-FAMILY: serif">&#8211; Inventories are stated at the lower of cost
or net realizable value. Costs for approximately 90% of inventory are determined
on an average cost basis with the remainder determined on a first-in, first-out
(FIFO) basis. The components of inventories are as follows:</font></div>
    <div><font size="1" style="FONT-FAMILY: serif">&#160;</font></div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 13pt; BORDER-COLLAPSE: collapse; TEXT-ALIGN: center; ">
<tr valign="bottom">
            <td align="left" nowrap width="89%">
            </td>
            <td colspan="2" nowrap width="5%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%">
            </td>
            <td colspan="2" nowrap width="5%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">September 30,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%">
            </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%">
            </td>
            <td colspan="5" nowrap width="11%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in
  thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Purchased parts and raw
    materials</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">9,083</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">7,550</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%"><font size="2" style="FONT-FAMILY: serif">Work-in-process</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">8,479</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">3,277</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Finished goods</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">2,952</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">2,628</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="89%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">20,514</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">13,455</font></td>
          </tr><tr>
            <td align="left" nowrap width="89%">&#160;&#160; </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%">
            </td>
          </tr></table>
    </div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Note Receivable</font> </font><font size="2" style="FONT-FAMILY: serif">&#8211; Note Receivable consists of a short-term
note receivable from one of the Company&#8217;s technology partners. The note is
collateralized by the intellectual property of the technology partner and is
personally guaranteed by the CEO of the technology partner. As additional
security, for the guarantee,&#160;the CEO of&#160;the technology partner has
pledged a portion of his ownership interest in the company. Interest accrues at
4.5% annually. All interest payments are current as of June 30, 2010. The loan
was issued on January 15, 2010, matured on June 30, 2010 and is currently in
default. The technology partner has requested a three month extension for the
principal repayment. The Company recorded a valuation allowance of $0.5 million
and is working with the technology partner to remedy the default. Interest will
continue to accrue at 4.5% annually.</font></div>
    <div><font size="1" style="FONT-FAMILY: serif">&#160;</font></div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">8 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Property, Plant and Equipment</font>
</font><font size="2" style="FONT-FAMILY: serif">&#8211; Property, plant and equipment
are recorded at cost. Maintenance and repairs are charged to expense as
incurred. The cost of property retired or sold and the related accumulated
depreciation are removed from the applicable accounts when disposition occurs
and any gain or loss is recognized. Depreciation is </font><font size="2" style="FONT-FAMILY: serif">computed using the straight-line method.
Useful lives for equipment, machinery and leasehold improvements range from
three to seven years; for furniture and fixtures from five to 10 years; and for
buildings 20 years.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The following is a
summary of property, plant and equipment: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="98%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; TEXT-ALIGN: center; ">
<tr valign="bottom">
            <td align="left" nowrap width="86%">
            </td>
            <td colspan="3" nowrap width="6%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="7%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">September 30,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%">
            </td>
            <td colspan="3" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">
            </td>
            <td colspan="3" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%">
            </td>
            <td colspan="7" nowrap width="14%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in
  thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Land, building and leasehold
      improvements</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">7,309</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">7,124</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%"><font size="2" style="FONT-FAMILY: serif">Equipment and machinery</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">4,890</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">4,295</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Furniture and fixtures</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">3,578</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">3,404</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">15,777</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">14,823</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Accumulated depreciation and
      amortization</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(6,632</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(6,346</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%">&#160;</td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">9,145</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">8,477</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
          </tr><tr>
            <td align="left" nowrap width="86%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr></table>
    </div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Goodwill </font>&#8211;<font style="DISPLAY: inline; FONT-WEIGHT: bold"> </font></font><font size="2" style="FONT-FAMILY: serif">Goodwill is not subject to amortization, but
is tested for impairment at least annually. Goodwill is reviewed for impairment
on an annual basis, typically at the end of the fiscal year, or more frequently
if circumstances dictate.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Intangibles</font> </font><font size="2" style="FONT-FAMILY: serif">&#8211; Intangible assets are capitalized and
amortized over two to 10 years.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Long-lived assets are
reviewed for impairment when events or changes in circumstances indicate that
the carrying amount of an asset may not be recoverable. Circumstances in the
quarter ended June 30, 2010 required the Company to review a license with one of
our technology partners for recoverability and impairment. Recoverability is
based upon the Company&#8217;s judgments and estimates of undiscounted cash flows
during the estimated remaining useful life of the assets.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">In April 2007, the
Company entered into a license agreement with one of the Company&#8217;s technology
partners to market, sell, install, service and manufacture machinery and
equipment for the manufacturing of photovoltaic cells that employs PECVD
Technology (Licensed Product) developed by the technology partner. Under the
terms of this agreement the Company paid $1.0 million to the technology partner.
The license agreement expires in January 2019. These payments are being
amortized over the life of the agreement. Recently, several new competitors have
entered the market and management has determined that the market opportunity for
the licensed product has decreased. This recent development and the extended
amount of time to develop the licensed product caused management to review the
licensed product for impairment and recoverability.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">It was determined
that the carrying value of the license subject to amortization was not fully
recoverable; therefore, an impairment charge of $0.6 million was recorded for
the excess of carrying value over the fair value of the license. The fair value
of the license was determined through estimates of the present value of future
cash flows based upon the anticipated future use of the license. The material
estimates and assumptions used in the discounted cash flows method of
determining fair value include (i) the appropriate discount rate, given the
risk-free rate of return and various risk premiums, (ii) projected revenues and
(iii) projected material cost as a percentage of revenue. These inputs are
unobservable and are considered Level 3 within the fair value
hierarchy.</font></div>
    <div align="justify"><font size="2">&#160;</font></div>
    <div align="justify">
      <div align="center"><font size="2" style="FONT-FAMILY: serif">9 </font></div>
    </div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The following is a
summary of intangibles: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; TEXT-ALIGN: center; ">
<tr valign="bottom">
            <td align="left" nowrap width="80%">
            </td>
            <td nowrap width="5%">
            </td>
            <td nowrap width="1%">
            </td>
            <td colspan="3" nowrap width="6%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%">
            </td>
            <td colspan="3" nowrap width="6%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">September 30,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="80%">
            </td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Useful Life</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="80%">
            </td>
            <td nowrap width="5%">
            </td>
            <td nowrap width="1%">
            </td>
            <td colspan="7" nowrap width="13%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in
  thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="80%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Non-compete agreements</font></td>
            <td nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">8 years</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">149</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">178</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="80%"><font size="2" style="FONT-FAMILY: serif">Customer lists</font></td>
            <td nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">10
      years</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">786</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">940</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="80%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Technology</font></td>
            <td nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">10 years</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">1,559</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">1,863</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="80%"><font size="2" style="FONT-FAMILY: serif">Licenses</font></td>
            <td nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">10
      years</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">690</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">1,500</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="80%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Other</font></td>
            <td nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">2-10 years</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">80</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">96</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="80%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">3,264</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%"><font size="2" style="FONT-FAMILY: serif">4,577</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="80%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Accumulated amortization</font></td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(873</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="4%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(749</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="80%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">2,391</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="4%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">3,828</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
          </tr><tr>
            <td align="left" nowrap width="80%">&#160;</td>
            <td align="left" nowrap width="5%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="4%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr></table>
    </div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Warranty &#8211; </font></font><font size="2" style="FONT-FAMILY: serif">A limited warranty is provided free of charge,
generally for periods of 12 to 24 months, for all purchasers of the Company&#8217;s
new products and systems. Accruals are recorded for estimated warranty costs at
the time revenue is recognized.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The following is a
summary of activity in accrued warranty expense: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="98%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; TEXT-ALIGN: center; ">
<tr valign="bottom">
            <td align="left" nowrap width="85%">
            </td>
            <td colspan="7" nowrap width="15%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Nine Months Ended June
    30,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%">
            </td>
            <td colspan="3" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%">
            </td>
            <td colspan="7" nowrap width="15%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in
  thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Beginning balance</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">1,429</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">1,155</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">Warranty expenditures</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">(386</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">(433</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Provision</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">448</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">645</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">Ending balance</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">1,491</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">1,367</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
          </tr><tr>
            <td align="left" nowrap width="85%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr></table>
    </div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">10 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Stock-Based Compensation &#8211; </font></font><font size="2" style="FONT-FAMILY: serif">The Company measures compensation costs
relating to share-based payment transactions based upon the grant-date fair
value of the award. Those costs are recognized as expense over the requisite
service period, which is generally the vesting period. The benefits of tax
deductions in excess of recognized compensation cost are reported as cash flow
from financing activities rather than as cash flow from operating activities. In
the second quarter of fiscal 2009, the Company&#8217;s shareholders approved an
amendment to our 2007 Employee Stock Incentive Plan and our Non-Employee
Directors Stock Option Plan to authorize an additional 900,000 and 150,000,
shares respectively. Our stock-based compensation plans are summarized in the
table below: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; TEXT-ALIGN: center; ">
<tr valign="bottom">
            <td align="left" nowrap width="75%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td nowrap width="5%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Shares</font></font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="5%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Shares</font></font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="5%">&#160;</td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="5%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Plan</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="75%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Name of Plan</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Authorized</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Available</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Options Outstanding</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Expiration</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="75%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">2007 Employee Stock Incentive
    Plan</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">1,400,000</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">901,987</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">342,838</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Apr. 2017</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="75%"><font size="1" style="FONT-FAMILY: serif">1998 Employee Stock Option Plan</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="1" style="FONT-FAMILY: serif">500,000</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="1" style="FONT-FAMILY: serif">-</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="1" style="FONT-FAMILY: serif">308,432</font></td>
            <td align="right" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="5%"><font size="1" style="FONT-FAMILY: serif">Jan. 2008</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="75%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Non-Employee Directors Stock Option
      Plan</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">350,000</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">151,600</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">110,000</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Jul. 2015</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="75%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double; TEXT-ALIGN: right"><font size="1" style="FONT-FAMILY: serif">1,053,587</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double; TEXT-ALIGN: right"><font size="1" style="FONT-FAMILY: serif">761,270</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
          </tr></table>
    </div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">&#160;</font></div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Share-based
compensation expense reduced the Company&#8217;s results of operations by the
following amounts: </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; TEXT-ALIGN: center; ">
<tr valign="bottom">
            <td align="left" nowrap width="77%">
            </td>
            <td colspan="7" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended June
    30,</font></font></td>
            <td nowrap width="1%">
            </td>
            <td colspan="7" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Nine Months Ended June
    30,</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%">
            </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%">
            </td>
            <td colspan="15" nowrap width="23%"><font size="1" style="FONT-FAMILY: serif">(dollars in thousands, except per share amounts)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Effect on income (loss) before income
      taxes (1)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(187</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(165</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(757</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(498</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">Effect on income taxes</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">44</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">37</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">215</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">107</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Effect on net income (loss)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">(143</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">(128</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">(542</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: 4px; TEXT-ALIGN: left">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">(391</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr>
            <td align="left" nowrap width="77%">&#160; </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr></table>
    </div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" style="FONT-SIZE: 10pt; LINE-HEIGHT: 13pt; BORDER-COLLAPSE: collapse; ">
<tr>
            <td nowrap valign="top"><font size="1">&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td nowrap valign="top">
              <div align="justify"><font size="1" style="FONT-FAMILY: serif">(1)</font></div>
            </td>
            <td nowrap valign="top"><font size="1">&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td valign="top" width="100%">
              <div><font size="1" style="FONT-FAMILY: serif">Share based compensation
      expense is included in selling, general and administrative
      expenses</font><font size="1" style="FONT-FAMILY: serif">.</font></div>
            </td>
          </tr></table>
    </div>
    <div><font size="2" style="FONT-FAMILY: serif">&#160;</font></div>
    <div style="TEXT-ALIGN: justify"><font size="2" style="FONT-FAMILY: serif">Stock
options issued under the terms of the plans have, or will have, an exercise
price equal to or greater than the fair market value of the common stock at the
date of the option grant and expire no later than 10 years from the date of
grant, with the most recent grant expiring in 2019. Options issued by the
Company vest over 1 to 5 years.</font></div>
    <div style="TEXT-ALIGN: justify"><font size="2">&#160;</font></div>
    <div><font size="2">&#160;</font></div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">11 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%"><!-- Part B -->

    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div style="TEXT-ALIGN: justify"><font size="2">Stock option transactions and the
options outstanding are summarized as follows: </font></div><br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="13" nowrap width="21%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Nine Months Ended June
    30,</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="6" nowrap width="10%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="6" nowrap width="10%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="3%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Weighted</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="3%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Weighted</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="3%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Average</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="3%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Average</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="3%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Exercise</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="3%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Exercise</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="77%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Options</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Price</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Options</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Price</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Outstanding at beginning of
    period</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">691,403</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">7.03</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">486,803</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">8.39</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%"><font size="2" style="FONT-FAMILY: serif">Granted</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">102,000</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">6.44</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">189,000</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">3.79</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Exercised</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(25,608</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">6.04</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2">-</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">-</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%"><font size="2" style="FONT-FAMILY: serif">Forfeited</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(6,525</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">5.55</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(12,200</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">7.41</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Outstanding at end of period</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">761,270</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">6.99</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">663,603</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">7.10</font></td>
          </tr><tr>
            <td colspan="15" width="99%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Exercisable at end of period</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">448,081</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">7.23</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">319,877</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">7.27</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%"><font size="2" style="FONT-FAMILY: serif">Weighted average fair value of options</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="77%"><font size="2" style="FONT-FAMILY: serif">granted during the period</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">3.97</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">2.27</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
          </tr></table>
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The fair value of
options was estimated at the grant date using the Black-Scholes option pricing
model with the following assumptions:</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="88%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Nine Months Ended June
    30,</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="88%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Risk free interest rate</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td nowrap width="5%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">2.57%</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td nowrap width="5%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">1.86%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%"><font size="2" style="FONT-FAMILY: serif">Expected life</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="5%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">6 years</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="5%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">6 years</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Dividend rate</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td nowrap width="5%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">0%</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td nowrap width="5%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">0%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%"><font size="2" style="FONT-FAMILY: serif">Volatility</font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="5%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">68%</font></td>
            <td nowrap width="1%">&#160;</td>
            <td nowrap width="5%" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">66%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="88%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Forfeiture rate</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td nowrap width="5%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">6%</font></td>
            <td nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td nowrap width="5%" bgcolor="#cceeff" style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">7%</font></td>
          </tr></table>
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">To estimate expected
lives for this valuation, it was assumed that options will be exercised at
varying schedules after becoming fully vested. Forfeitures have been estimated
at the time of grant and will be revised, if necessary, in subsequent periods if
actual forfeitures differ from those estimates. Forfeitures were estimated based
upon historical experience. Fair value computations are highly sensitive to the
volatility factor assumed; the greater the volatility, the higher the computed
fair value of the options granted.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">There were 6,000
options granted during the three months ended June 30, 2009 and no options
granted for the three months ended June 30, 2010; and 102,000 and 189,000
options granted for the nine months ended June 30, 2010 and 2009, respectively.
Total fair value of options granted was approximately $405,000 for the nine
months ended June 30, 2010. Total fair value of options granted for the three
and nine months ended June 30, 2009 were $18,000 and $429,000,
respectively.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The Company awards
restricted shares under the existing share-based compensation plans. Our
restricted share-awards vest in equal annual installments over a four-year
period. The total value of these awards is expensed on a ratable basis over the
service period of the employees receiving the grants. The &#8220;service period&#8221; is
the time during which the employees receiving grants must remain employees for
the shares granted to fully vest.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">12 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Restricted stock
transactions and awards outstanding are summarized as follows:</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="80%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="75%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="11" nowrap width="23%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Nine Months Ended June
    30,</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="75%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="5" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td colspan="5" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="75%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="5%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Weighted</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="5%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Weighted</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="75%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="5%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Average</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="5%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Average</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="75%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="5%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Grant Date</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="5%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Grant Date</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="75%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Awards</font></font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Fair Value</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Awards</font></font></td>
            <td nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Fair Value</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="75%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Beginning Outstanding</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;
    122,875</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">5.85</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">30,500</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">14.79</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="75%"><font size="2" style="FONT-FAMILY: serif">Awarded</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">24,000</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">6.15</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">100,000</font></td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">3.80</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="75%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Released</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(33,625</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">6.46</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(7,625</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">14.79</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="75%"><font size="2" style="FONT-FAMILY: serif">Forfeited</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(1,250</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">8.20</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2">-</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2">-</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="75%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Ending Outstanding</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">112,000</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">5.70</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160; 122,875</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">5.85</font></td>
          </tr><tr style="LINE-HEIGHT: 4pt;">
            <td align="left" nowrap width="75%">&#160;</td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
          </tr></table>
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">There were zero
restricted shares awarded during the three months ended June 30, 2010 and 2009,
respectively. There were 24,000 and 100,000 restricted shares awarded during the
nine months ended June 30, 2010 and 2009, respectively. Total fair value of
restricted shares awarded was approximately $0.1 million and $0.4 million for
the nine months ended June 30, 2010 and 2009, respectively.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Fair Value of Financial
Instruments</font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: serif"> </font></font><font style="FONT-FAMILY: serif">&#8211;
</font><font size="2" style="FONT-FAMILY: serif">The carrying values of the
Company&#8217;s current financial instruments approximate fair value due to the short
term in which these instruments mature.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Shipping expense</font></font><font size="2" style="FONT-FAMILY: serif"> &#8211; Shipping expenses of $0.9 million and $0.2
million for the three months ended June 30, 2010 and 2009, respectively, are
included in selling, general and administrative expenses. Shipping expenses of
$1.4 million and $0.5 million for the nine months ended June 30, 2010 and 2009,
respectively, are included in selling, general and administrative
expenses.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Research and development
expense</font></font><font size="2" style="FONT-FAMILY: serif"> &#8211; Research and
development expenses consist of the cost of employees, consultants and
contractors who design, engineer and develop new products and processes;
materials and supplies used in those activities; and product prototyping. The
Company receives reimbursements through governmental research and development
grants which are netted against these expenses. The table below shows gross
research and development expenses and grants earned:</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Three Months Ended</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Nine Months Ended</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">June 30,</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-WEIGHT: bold; FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in thousands)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in
  thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Research and development</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$&#160; &#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">814</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$ &#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">199</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$ &#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">2,018</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$ &#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">739</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">Grants earned</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(276</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(48</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(758</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(212</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Net research and development</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">538</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">151</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">1,260</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">527</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
          </tr><tr style="LINE-HEIGHT: 4pt;">
            <td align="left" nowrap width="76%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr></table>
    </div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">13 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Impact of Recently Issued Accounting
Pronouncements</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">In October 2009, the
Financial Accounting Standards Board (FASB) issued Accounting Standards Update
(ASU) No. 2009-13, Revenue Recognition&#8211;Multiple Deliverable Revenue
Arrangements. This guidance updates the existing multiple-element revenue
arrangements guidance currently included in FASB ASC 605-25, Revenue
Recognition&#8211;Multiple&#8211;Element Arrangements. The revised guidance provides for two
significant changes to the existing multiple element revenue arrangements
guidance. The first change relates to the determination of when the individual
deliverables included in a multiple-element arrangement may be treated as
separate units of accounting. The second change modifies the manner in which the
transaction consideration is allocated across the separately identified
deliverables. This guidance also significantly expands the disclosures required
for multiple-element revenue arrangements. The revised multiple-element revenue
arrangements guidance will be effective for the fiscal year ending September 30,
2011, however, early adoption is permitted, provided that the revised guidance
is retroactively applied to the beginning of the year of adoption. The Company
has not yet determined the impact, if any, the adoption of this guidance will
have on its consolidated financial statements, but expects the primary effect
will be expanded disclosures.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2. Income Taxes</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The quarterly income
tax provision is calculated using an estimated annual effective tax rate, based
upon expected annual income, permanent items, statutory tax rates and planned
tax strategies in the various jurisdictions in which the Company
operates.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Deferred tax assets
and liabilities reflect the tax effects of temporary differences between the
carrying value of assets and liabilities for financial reporting purposes and
the amounts used for income tax purposes. The Company records a valuation
allowance if, based on the weight of available evidence, it is more likely than
not that some portion or all of the deferred tax asset will not be realized. Our
expectations regarding realization of our deferred tax assets is based upon the
weight of all available evidence, including such factors as our recent earnings
history and expected future taxable income. The company maintains a valuation
allowance with respect to certain state and foreign net operating losses that
may not be recovered. Each quarter the valuation allowance is re-evaluated.
During the quarter ended June 30, 2010, no significant changes were made to the
valuation allowance.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The Company
classifies uncertain tax positions as non-current income taxes payable unless
expected to be paid within one year. At June 30, 2010, and September 30, 2009,
the total amount of unrecognized tax benefits was $0.5 million. If recognized,
these amounts would favorably impact the effective tax rate.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The Company
classifies interest and penalties related to unrecognized tax benefits in income
tax expense. As of June 30, 2010 and September 30, 2009, the Company accrued
less than $0.1 million for potential interest and penalties.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">3. Earnings Per Share</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Basic earnings per
share (EPS) is computed by dividing net income (loss) by the weighted average
number of common shares outstanding for the period. Diluted EPS is computed
similarly to basic EPS except that the denominator is increased to include the
number of additional common shares that would have been outstanding if
potentially dilutive common shares had been issued. In the case of a net loss,
diluted earnings per share is calculated in the same manner as basic
EPS.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Common shares
relating to stock options where the exercise prices exceeded the average market
price of our common shares during the period were excluded from the diluted
earnings per share calculation as the related impact was anti-dilutive. For the
three and nine months ended June 30, 2010, options for 157,000 and 235,000
shares, respectively, and 14,000 and 4,000 restricted stock award shares,
respectively, are excluded from the diluted EPS calculations because they are
anti-dilutive. For the three and nine months ended June 30, 2009, options for
665,000 and 666,000 shares, respectively, and 23,000 and 31,000 restricted stock
award shares, respectively, are excluded from the diluted EPS calculations
because they are anti-dilutive.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">14 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="68%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="6" nowrap width="15%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="6" nowrap width="15%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Nine Months Ended</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="68%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="6" nowrap width="15%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="6" nowrap width="15%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="68%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="68%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="6" nowrap width="15%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(in thousands, except per share
      amounts)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="6" nowrap width="15%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(in thousands, except per share
      amounts)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="68%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="1" style="FONT-FAMILY: serif">Basic Earnings Per Share
      Computation</font></font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="68%"><font size="1" style="FONT-FAMILY: serif">Net income (loss) available to</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="6%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="6%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="68%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; common stockholders</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">3,876</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">(235</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">4,160</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">(1,388</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr>
            <td colspan="15" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="68%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Weighted Average Shares
      Outstanding:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="68%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Common stock</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">9,021</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">8,960</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">9,004</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">9,038</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
          </tr><tr>
            <td colspan="15" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="68%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Basic earnings (loss) per
share</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">0.43</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">(0.03</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">0.46</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">(0.15</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr>
            <td colspan="15" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="68%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; TEXT-DECORATION: underline"><font size="1" style="FONT-FAMILY: serif">Diluted Earnings Per Share
      Computation</font></font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="68%"><font size="1" style="FONT-FAMILY: serif">Net income (loss)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">3,876</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">(235</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">4,160</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">(1,388</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr>
            <td colspan="15" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="68%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Weighted Average Shares
      Outstanding:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="6%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="68%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Common stock</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="1" style="FONT-FAMILY: serif">9,021</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="1" style="FONT-FAMILY: serif">8,960</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%"><font size="1" style="FONT-FAMILY: serif">9,004</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="1" style="FONT-FAMILY: serif">9,038</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="68%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Common stock equivalents (1)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">210</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">-</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="6%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">180</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">-</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="68%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Diluted shares</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; &#160;&#160;
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 9,231</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160;
      &#160;&#160;&#160;&#160;&#160;&#160;&#160; 8,960</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="right" nowrap width="6%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      &#160;&#160;&#160; &#160;&#160;&#160;&#160;&#160; 9,184</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160; &#160;&#160;&#160;
      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; 9,038</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
          </tr><tr>
            <td colspan="15" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="68%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Diluted earnings (loss) per
    share</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">0.42</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">(0.03</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="6%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">0.45</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">(0.15</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr style="LINE-HEIGHT: 4pt;">
            <td align="left" nowrap width="68%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="6%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr></table>
    </div><br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" style="TEXT-ALIGN: justify; ">
<tr>
            <td nowrap valign="top"><font size="1" style="FONT-FAMILY: serif">(1)</font></td>
            <td align="left" nowrap valign="top"><font size="1">&#160;&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="left" valign="top" width="100%">
              <div align="justify"><font size="1" style="FONT-FAMILY: serif">The number of
      common stock equivalents is calculated using the treasury stock method and
      the average market price during the
period.</font></div>
            </td>
          </tr></table>
    </div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">4. Comprehensive Income
(Loss)</font></font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Three Months Ended</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Nine Months Ended</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">June 30,</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in thousands)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in
  thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Net income (loss), as reported</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">3,876</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(235</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">4,160</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(1,388</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">Foreign currency translation adjustment</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(3,619</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">2,005</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(6,440</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(723</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Comprehensive income (loss)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">257</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">1,770</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(2,280</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(2,111</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr style="LINE-HEIGHT: 4pt;">
            <td align="left" nowrap width="76%">&#160;</td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr></table>
    </div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">15 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">5. Business Segment
Information</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The Company&#8217;s
products are classified into two core business segments; the solar and
semiconductor equipment segment and the polishing supplies segment. The solar
and semiconductor equipment segment designs, manufactures and markets
semiconductor wafer processing and handling equipment used in the fabrication of
solar cells, integrated circuits, and MEMS. Also included in the solar and
semiconductor equipment segment are the manufacturing support service operations
and corporate expenses, except for a small portion that is allocated to the
polishing supplies segment. The polishing supplies segment designs, manufactures
and markets carriers, templates and equipment used in the lapping and polishing
of wafer-thin materials, including silicon wafers used in the production of
semiconductors.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Information
concerning our business segments is as follows:</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Three Months Ended</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Nine Months Ended</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">June 30,</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="76%" style="TEXT-ALIGN: center">&#160;</td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in thousands)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="7" nowrap width="11%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in
  thousands)</font></font></td>
          </tr><tr>
            <td align="left" nowrap width="76%" bgcolor="#cceeff"><font size="2">Net
      Revenues:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Solar and semiconductor
      equipment</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">40,600</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">11,458</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">69,116</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$
      &#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">36,931</font></td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Polishing supplies</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">2,472</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">1,070</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">5,490</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">4,373</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">43,072</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">12,528</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">74,606</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">41,304</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
          </tr><tr>
            <td colspan="17" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Operating income (loss):</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Solar and semiconductor
      equipment (1)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">5,857</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">(300</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">6,043</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">(1,430</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Polishing supplies</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">568</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(2</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">930</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">(72</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">6,425</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">(302</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">6,973</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">(1,502</font></td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr>
            <td colspan="17" width="100%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Interest and other income (expense),
      net</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(219</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(33</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">(293</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">14</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr>
            <td colspan="17" width="100%">&#160; </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="76%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Income (loss) before income taxes</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">6,206</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(335</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">6,680</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">(1,488</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">)</font></td>
          </tr><tr style="LINE-HEIGHT: 4pt;">
            <td align="left" nowrap width="76%" bgcolor="#ffffff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
          </tr></table>
    </div><br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="">
<tr valign="bottom">
            <td align="left" nowrap valign="top" width="1%"><font size="2">(1)</font></td>
            <td align="left" nowrap valign="top" width="1%">&#160;&#160;&#160;&#160;&#160;
    </td>
            <td align="left" valign="top" width="98%">
              <div align="justify"><font size="2" style="FONT-FAMILY: serif">Includes the
      impairment losses of $1.7 million in Fiscal 2009 and $0.6 million in
      Fiscal 2010.</font></div>
            </td>
          </tr></table>
    </div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">16 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="85%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">September 30,</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="85%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="85%" style="TEXT-ALIGN: center">&#160;</td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="5" nowrap width="13%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in
  thousands)</font></font></td>
          </tr><tr>
            <td align="left" nowrap width="85%" bgcolor="#cceeff"><font size="2">Identifiable Assets:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Solar and semiconductor
      equipment</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">111,688</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">88,617</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Polishing supplies</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">4,338</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">3,909</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">116,026</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">92,526</font></td>
          </tr><tr>
            <td colspan="7" width="99%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Goodwill:</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="5%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Solar and semiconductor
      equipment</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">3,688</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%"><font size="2" style="FONT-FAMILY: serif">4,408</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Polishing supplies</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">728</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">728</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="85%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      4,416</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 2pt double"><font size="2" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      5,136</font></td>
          </tr><tr style="LINE-HEIGHT: 4pt;">
            <td align="left" nowrap width="85%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
          </tr></table>
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">6. Major Customers and Foreign
Sales</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">During the three
months ended June 30, 2010, two customers, individually, represented 41% and 10%
of net revenues. During the nine months ended June 30, 2010, three customers,
individually, represented 24%, 15% and 10% of net revenues. During the three
months ended June 30, 2009, three customers, individually, represented 30%, 17%
and 15% of net revenues. During the nine months ended June 30, 2009, one
customer represented 19% of net revenues.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Our net revenues were
to customers in the following geographic regions:</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="80%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="86%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="5" nowrap width="13%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Nine Months Ended June
    30,</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="86%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      North America</font></font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">8</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">%</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">20</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">%</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%"><font size="1" style="FONT-FAMILY: serif">China</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="1" style="FONT-FAMILY: serif">66</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="1" style="FONT-FAMILY: serif">32</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Taiwan</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">13</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">27</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%"><font size="1" style="FONT-FAMILY: serif">Other</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">4</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">5</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Asia</font></font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">83</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">%</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">64</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">%</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Europe</font></font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">9</font></font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">%</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">16</font></font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">%</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="86%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">100</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">%</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">100</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">%</font></font></td>
          </tr><tr style="LINE-HEIGHT: 4pt;">
            <td align="left" nowrap width="86%">&#160;</td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr></table>
    </div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">17 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">7. Commitments and
Contingencies</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Purchase Obligations</font></font><font size="2" style="FONT-FAMILY: serif"> &#8211; As of June 30, 2010, we had purchase
obligations in the amount of $20.4 million compared to $4.7 million as of
September 30, 2009. These purchase obligations consist of outstanding purchase
orders for goods and services. While the amount represents purchase agreements,
the actual amounts to be paid may be less in the event that any agreements are
renegotiated, cancelled or terminated.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Leases</font></font><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="FONT-FAMILY: serif">
</font></font><font style="FONT-FAMILY: serif">&#8211; </font><font size="2" style="FONT-FAMILY: serif">On, April 1, 2010, the Company entered into a
new operating lease for a building located in Vaassen, The Netherlands. The
lease is for two years and the Company is required to make quarterly lease
payments of $30,000. This building is being used as manufacturing facilities for
our Tempress operations.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">In fiscal 2010, the
Company extended the lease of warehouse space in Vaassen, the Netherlands, and
expanded the space. The original lease was to expire on October 31, 2011 and was
extended to March 31, 2013. The lease payments increased from $20,000 per
quarter to $30,000 per quarter due to the expansion.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">License agreement</font></font><font size="2" style="FONT-FAMILY: serif"> - The Company entered into amendments with
one of our technology partners to both the PSG license and the PECVD license to
expand the licenses to include one future model of the PSG dry etch systems and
three future models of the PECVD system. These amendments to the licenses
require the Company to pay additional license fees upon successful achievement
of the agreed upon specifications of each of the four new models. The four
payments range from three hundred million South Korean Won (KRW), approximately
$230,000, to one billion KRW, approximately $780,000, for maximum total payments
of approximately $1,420,000. Such payments will be recorded as additional
intangibles, the cost of which will be amortized over the life of the license.
Due to the extended amount of time to reach the agreed upon specifications it is
uncertain whether these commitments will materialize.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Litigation</font></font><font style="FONT-FAMILY: serif"> &#8211; </font><font size="2" style="FONT-FAMILY: serif">The
Company is a party to various claims arising in the normal course of business.
Management believes the resolution of these matters will not have a material
impact on the Company&#8217;s results of operations or financial
condition.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">18 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 2. MANAGEMENT&#8217;S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The following
discussion and analysis of our financial condition and results of operations
should be read in conjunction with our condensed consolidated financial
statements and the related notes included in Item 1, &#8220;Condensed Financial
Statement&#8221; in this quarterly report on Form 10-Q and our consolidated financial
statements and related notes included in Item 8, &#8220;Financial Statements and
Supplementary Data&#8221; in our Annual Report on Form 10-K for the fiscal year ended
September 30, 2009.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Cautionary Statement Regarding Forward-Looking
Statements</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">The statements in this report include
forward-looking statements. These forward-looking statements are based on our
management&#8217;s current expectations and beliefs and involve numerous risks and
uncertainties that could cause actual results to differ materially from
expectations. You should not rely upon these forward-looking statements as
predictions of future events because we cannot assure you that the events or
circumstances reflected in these statements will be achieved or will occur. You
can identify forward-looking statements by the use of forward-looking
terminology, including the words &#8220;believes,&#8221; &#8220;expects,&#8221; &#8220;may,&#8221; &#8220;will,&#8221; &#8220;should,&#8221;
&#8220;seeks,&#8221; &#8220;intends,&#8221; &#8220;plans,&#8221; &#8220;estimates&#8221; or &#8220;anticipates&#8221; or the negative of
these words and phrases or other variations of these words and phrases or
comparable terminology. These forward-looking statements relate to, among other
things: our sales, results of operations and anticipated cash flows; capital
expenditures; depreciation and amortization expenses; research and development
expenses; selling, general and administrative expenses; the development and
timing of the introduction of new products and technologies; our ability to
maintain and develop relationships with our existing and potential future
customers and our ability to maintain the level of investment in research and
development and capacity that is required to remain competitive. Many factors
could cause our actual results to differ materially from those projected in
these forward-looking statements, including, but not limited to: whether we will
be able to complete acquisitions and integrate such businesses successfully and
achieve anticipated synergies; variability of our revenues and financial
performance; risks associated with product development and technological
changes; the acceptance of our products in the marketplace by existing and
potential future customers; disruption of operations or increases in expenses
caused by civil or political unrest or other catastrophic events; general
economic conditions and conditions in the solar and semiconductor industries in
particular; the continued employment of our key personnel and risks associated
with competition.</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">For a discussion of the factors that could
cause actual results to differ materially from the forward-looking statements,
see the &#8220;Risk Factors&#8221; set forth in Item 1A of Part I of Amtech Systems, Inc.&#8217;s
Annual Report on Form 10-K for the fiscal year ended September 30, 2009, the
&#8220;Liquidity and Capital Resources&#8221; section under &#8220;Management&#8217;s Discussion and
Analysis of Financial Condition and Results of Operations&#8221; in this item of this
report and the other risks and uncertainties that are set forth elsewhere in
this report or detailed in our other Securities and Exchange Commission reports
and filings. We assume no obligation to update these forward-looking
statements.</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Introduction</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Management&#8217;s
Discussion and Analysis (&#8220;MD&amp;A&#8221;) is intended to facilitate an understanding
of our business and results of operations. MD&amp;A consists of the following
sections:</font></div>
    <ul style="FONT-SIZE: 10pt; TEXT-ALIGN: justify">
      <li><font size="2" style="FONT-FAMILY: serif">Overview<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">Results of
  Operations<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">Liquidity and Capital
  Resources<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">Off &#8211; Balance Sheet
  Arrangements&#160;</font> </li>
    </ul>
    <div style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">19
</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <ul style="FONT-SIZE: 10pt; TEXT-ALIGN: justify">
      <li><font size="2" style="FONT-FAMILY: serif">Contractual
  Obligations<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">Critical Accounting
  Policies<br>&#160;</font>
        </li>
      <li><font size="2" style="FONT-FAMILY: serif">Impact of Recently Issued
  Accounting Pronouncements</font> </li>
    </ul>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Overview</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">We operate in two
segments: the solar and semiconductor equipment segment and the polishing
supplies segment. Our solar and semiconductor equipment segment is a leading
supplier of thermal processing systems, including related automation, parts and
services, to the solar/photovoltaic, semiconductor, silicon wafer and MEMS
industries and also offers PECVD (plasma enhanced chemical vapor deposition) and
PSG (phosphosilcate glass) equipment.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Our polishing
supplies and equipment segment is a leading supplier of wafer polishing carriers
to manufacturers of silicon wafers. The polishing segment also manufactures
polishing templates, steel carriers and double-sided polishing and lapping
machines for fabricators of LED, optics, quartz, ceramics and metal parts, and
for manufacturers of medical equipment components.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Our customers are
primarily manufacturers of solar cells and integrated circuits. The solar cell
and semiconductor industries are cyclical and historically have experienced
significant fluctuations. Our revenue is impacted by these broad industry
trends.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Due to the nature of
the capital equipment markets that we serve, our revenues, gross margins and
operating results have historically fluctuated on a quarterly basis. Our
contracts typically include holdbacks of 10-20% of revenue, which are recognized
at the time of customer acceptance.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Results of Operations</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The following table
sets forth certain operational data as a percentage of net revenue for the
periods indicated:</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="72%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="5" nowrap width="13%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="5" nowrap width="13%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Nine Months Ended</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="72%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="6%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="72%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="6%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="72%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Net revenue</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">100</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">100</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">100</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">100</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="72%"><font size="1" style="FONT-FAMILY: serif">Cost of goods sold</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">63</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">71</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">66</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">71</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="72%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Gross margin</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">37</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">29</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">34</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">29</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="72%"><font size="1" style="FONT-FAMILY: serif">Operating expenses:</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="72%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Selling, general and administrative</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">20</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">30</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">22</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">28</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="72%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Restructuring charge</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="1" style="FONT-FAMILY: serif">1</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="1" style="FONT-FAMILY: serif">0</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="1" style="FONT-FAMILY: serif">1</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%"><font size="1" style="FONT-FAMILY: serif">4</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="72%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Research and Development</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">1</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">1</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">2</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">1</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="72%"><font size="1" style="FONT-FAMILY: serif">Total operating expenses</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">22</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">31</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">25</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">33</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="72%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Income (loss) from operations</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">15</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">-2</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">9</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">-4</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="72%"><font size="1" style="FONT-FAMILY: serif">Interest income (expense), net</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">0</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">-1</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">0</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">0</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="72%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Income (loss) before income
    taxes</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">15</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">-3</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">9</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">-4</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="72%"><font size="1" style="FONT-FAMILY: serif">Income tax expense (benefit)</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">6</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">-1</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">3</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">-1</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="72%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Net Income (loss)</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">9</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">-2</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">6</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="5%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">-3</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr style="LINE-HEIGHT: 4pt;">
            <td align="left" nowrap width="72%">&#160;</td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="5%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr></table>
    </div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">20 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Net Revenue</font></font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Net revenue consists
of revenue recognized upon shipment or installation of products using proven
technology and upon acceptance of products using new technology. In addition,
spare parts sales are recognized upon shipment. Service revenue is recognized
upon completion of the service activity or ratably over the term of the service
contract. The majority of our revenue is generated from large furnace system
sales which, depending on the timing of shipment and installation, can have a
significant impact on our revenue and earnings in any given period. </font><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">See</font></font><font size="2" style="FONT-FAMILY: serif"> Critical
Accounting Policies &#8211; Revenue Recognition.</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="60%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="11" nowrap width="19%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="11" nowrap width="19%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Nine Months Ended</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="60%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Inc.</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="3%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Inc.</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="3%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="60%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: left"><font size="1"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Segment</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(Dec.)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="1" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">%</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(Dec.)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="1" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">%</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="60%" style="TEXT-ALIGN: center">&#160;</td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="11" nowrap width="19%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in thousands)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="11" nowrap width="19%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in
  thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="60%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Solar and Semiconductor</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="60%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Equipment Segment</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;
    </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">40,600</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;
    </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">11,458</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;
    </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1">29,142</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160; 254</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;
    </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">69,116</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;
    </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">36,931</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$ &#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1">32,185</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;87</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="60%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">Polishing Supplies Segment</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">2,472</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">1,070</font></td>
            <td align="right" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1">1,402</font></td>
            <td align="right" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">131</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">5,490</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">4,373</font></td>
            <td align="right" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1">1,117</font></td>
            <td align="right" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">26</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="60%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      <font style="DISPLAY: inline; FONT-WEIGHT: bold">Total Net
      Revenue</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">43,072</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">12,528</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1">30,544</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">244</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">74,606</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">41,304</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1">33,302</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">81</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr style="LINE-HEIGHT: 4pt;">
            <td align="left" nowrap width="60%">&#160;</td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr></table>
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Net revenue for the
quarter ended June 30, 2010 increased $30.5 million, or 244%, compared to the
quarter ended June 30, 2009. Revenue from the solar and semiconductor equipment
segment increased $29.1 million, or 254%, due to significantly higher shipments
to the solar industry, as well as higher shipments to the semiconductor
industry, partially offset by an increase in deferred revenue. Within the solar
and semiconductor equipment segment, net revenue from the solar market was $37.6
million for the three months ended June 30, 2010, a $27.5 million or 272%
increase from the three months ended June 30, 2009.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Net revenue for the
nine months ended June 30, 2010 increased by $33.3 million, or 81%, compared to
the nine months ended June 30, 2009. Revenue from the Solar and Semiconductor
Equipment Segment increased $32.2 million, or 87% due to significantly higher
shipments to the solar industry, as well as higher shipments to the
semiconductor industry. The increase of $1.1 million, or 26%, in net revenue
from the Polishing Supplies Segment is due to increased demand for polishing
templates and carriers.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Backlog and Orders</font></font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Our order backlog as
of June 30, 2010 and 2009 was $81.1 million and $29.7 million, respectively. Our
backlog as of June 30, 2010 includes approximately $73.8 million of orders from
our solar industry customers, compared to $27.1 million at June 30, 2009. New
orders booked in the quarter ended June 30, 2010 were $44.7 million compared to
$5.3 million in the third quarter of fiscal 2009. New orders booked in the
nine-month periods ended June 30, 2010 and 2009 were $138.0 million and $22.1
million, respectively. As the majority of the backlog is denominated in Euros,
the strengthening of the dollar during the nine months of fiscal 2010 and 2009
resulted in a reduction in backlog of approximately $13.4 million and $2.0
million, respectively.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The orders included
in our backlog are generally credit approved customer purchase orders expected
to ship within the next twelve months. Because our orders are typically subject
to cancellation or delay by the customer, our backlog at any particular point in
time is not necessarily representative of actual sales for succeeding periods,
nor is backlog any assurance that we will realize profit from completing these
orders. Our backlog also includes revenue deferred pursuant to our revenue
recognition policy, derived from orders that have already been shipped, but
which have not met the criteria for revenue recognition.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">As of June 30, 2010,
three customers account for 22%, 11% and 11% of our order backlog,
individually.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">21 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Gross Profit and Gross Margin</font></font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Gross profit is the
difference between net revenue and cost of goods sold. Cost of goods sold
consists of purchased material, labor and overhead to manufacture equipment and
spare parts and the cost of service and support to customers for installation,
warranty and paid service calls. Gross margin is gross profit as a percent of
net revenue.</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="56%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="13" nowrap width="21%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="13" nowrap width="21%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Nine Months Ended</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="56%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Inc.</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="3%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Inc.</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="3%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="56%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: left"><font size="1"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Segment</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(Dec.)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="1" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">%</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(Dec.)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="1" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">%</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="56%" style="TEXT-ALIGN: center">&#160;</td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="13" nowrap width="21%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in thousands)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="13" nowrap width="21%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in
  thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="56%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Solar and Semiconductor</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="56%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Equipment Segment</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;
    </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">14,855</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;
    </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">3,283</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;
    </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1">11,572</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;352</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;
    </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">23,166</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;
    </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">11,127</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$ &#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1">12,039</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;108</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="56%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">Polishing Supplies Segment</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">897</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">299</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1">598</font></td>
            <td align="right" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">200</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">1,894</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">898</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1">996</font></td>
            <td align="right" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">111</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="56%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      <font style="DISPLAY: inline; FONT-WEIGHT: bold">Total Gross
      Profit</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">15,752</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">3,582</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1">12,170</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;
    340</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">25,060</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">12,025</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1">13,035</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;
    108</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="56%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Gross Margin</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">37</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">29</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">34</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">29</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#ffffff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#ffffff">&#160;
</td>
          </tr></table>
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Gross profit for the
three months ended June 30, 2010 increased $12.2 million or 340% versus the
three months ended June 30, 2009. The increase was driven by higher volumes
which resulted in significantly more efficient </font><font size="2" style="FONT-FAMILY: serif">capacity utilization, partially offset by
higher deferred profit. We deferred $4.3 million of profit, net of recognition
of previously deferred profit, for the quarter ended June 30, 2010, compared to
a net recognition of $0.6 million of profit for the quarter ended June 30, 2009.
Gross profit and gross margins in the Polishing Supplies Segment were positively
impacted by improved capacity utilization with significantly higher sales
volumes in all product lines.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Gross profit for the
nine months ended June 30, 2010 increased $13.0 million or 108% versus the nine
months ended June 30, 2009. We deferred $3.8 million of profit, net of
recognition of previously deferred profit, for the nine months ended June 30,
2010, compared to a net recognition of $0.3 million of profit for the nine
months ended June 30, 2009.</font></div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Selling, General and Administrative</font></font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Selling, general and
administrative expenses consist of the cost of employees, consultants and
contractors, facility costs, sales commissions, promotional marketing expenses,
legal and accounting expenses.</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="55%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="13" nowrap width="21%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="14" nowrap width="22%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Nine Months Ended</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="55%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Inc.</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="3%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="5%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Inc.</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="3%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="55%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: left"><font size="1"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Segment</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(Dec.)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="1" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">%</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(Dec.)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="1" style="FONT-FAMILY: serif"><font style="DISPLAY: inline; FONT-WEIGHT: bold">%</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="55%" style="TEXT-ALIGN: center">&#160;</td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="13" nowrap width="21%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in thousands)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="14" nowrap width="22%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in
  thousands)</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="55%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Solar and Semiconductor</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="55%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      Equipment Segment</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">7,849</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">3,432</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">4,417</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      129</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">15,253</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">10,348</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160; </font></td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">4,905</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;
      47</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="55%"><font size="1" style="FONT-FAMILY: serif">Polishing Supplies</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">&#160;</td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">&#160;</td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">&#160;</td>
            <td align="left" nowrap width="1%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="55%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Segment</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">330</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">301</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">29</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">10</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">964</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">&#160;</td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">970</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">(6</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">(1</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%)</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="55%"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; <font style="DISPLAY: inline; FONT-WEIGHT: bold">Total SG&amp;A</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">8,179</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">3,733</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">4,446</font></td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="1" style="FONT-FAMILY: serif">119</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">16,217</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">11,318</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="3%" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">4,899</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="right" nowrap width="3%"><font size="1" style="FONT-FAMILY: serif">43</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="55%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      Percent of net revenue</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">20</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">30</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">22</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="3%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">28</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="3%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr></table>
    </div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">22 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Selling, general and
administrative (SG&amp;A) expenses for the three months ended June 30, 2010
increased $4.4 million, or 119% compared to the three months ended June 30,
2009. SG&amp;A expenses include $0.2 million of stock-based compensation expense
in the three months ended June 30, 2010 and 2009. The increase in SG&amp;A
expenses was due primarily to increases in commissions related to higher
revenues and higher compensation expense. SG&amp;A for the three months ended
June 30, 2010 includes an expense of $0.5 million related to a valuation
allowance for the note receivable due from one of our technology
partners.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">For the nine months
ended June 30, 2010, SG&amp;A increased $4.9 million or 43% compared to the nine
month period ended June 30, 2009. SG&amp;A expenses include $0.8 million and
$0.5 million of stock-based compensation expense for the nine months ended June
30, 2010 and 2009, respectively. The increase in SG&amp;A is due primarily to
increased commissions, compensation expense and the valuation allowance on the
note receivable.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Impairment and Restructuring Charge</font></font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">In April 2007, the
Company entered into a license agreement with one of the Company&#8217;s technology
partners to market, sell, install, service and manufacture machinery and
equipment for the manufacturing of photovoltaic cells that employs PECVD
Technology (Licensed Product) developed by the technology partner. Under the
terms of this agreement the Company paid $1.0 million to the technology partner.
The license agreement expires in January 2019. These payments are being
amortized over the life of the agreement. Recently, several new competitors have
entered the market and management has determined that the market opportunity for
the licensed product has decreased. This recent development and the extended
amount of time to develop the licensed product caused management to review the
licensed product for impairment and recoverability.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">It was determined
that the carrying value of the license subject to amortization was not fully
recoverable; therefore, an impairment charge of $0.6 million was recorded for
the excess of carrying value over the fair value of the license. The fair value
of the license was determined through estimates of the present value of future
cash flows based upon the anticipated future use of the license.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The Bruce operations
were restructured in the second quarter of fiscal 2009 to focus primarily on a
parts supply business versus furnace systems sales. The restructuring resulted
in a charge of $620,000 in the second quarter of fiscal 2009. We conducted an
assessment of the ability to recover the carrying amount of long-lived assets of
the Bruce operations. It was determined that the carrying value of the net
assets was not fully recoverable; therefore, an impairment charge of $373,000
was recorded in the second quarter of fiscal 2009 for the excess of carrying
value over the fair value of the customer list and non-compete agreement. The
carrying values of goodwill ($89,000) and the Bruce trademark ($592,000) were
also recorded as an impairment charge in the second quarter of fiscal 2009.
</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">23 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%"><!-- Part C -->

    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div style="MARGIN-TOP: -5pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Research and Development</font></font></font></div>
    <div align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2" style="FONT-FAMILY: serif">Research and development expenses consist of the cost of employees,
consultants and contractors who design, engineer and develop new products and
processes; materials and supplies used in those activities; and product
prototyping.</font></div>
    <div align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify">
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 12pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td nowrap width="64%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="14" nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Three Months Ended</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="14" nowrap width="17%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Nine Months Ended</font></font></td>
          </tr><tr valign="bottom">
            <td nowrap width="64%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Inc.</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="2%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">June 30,</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="3" nowrap width="4%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">Inc.</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="2" nowrap width="2%" style="TEXT-ALIGN: center">
            </td>
          </tr><tr valign="bottom">
            <td nowrap width="64%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(Dec.)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="2%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2010</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">2009</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="3" nowrap width="4%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(Dec.)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">&#160;&#160;&#160;&#160;&#160; </td>
            <td colspan="2" nowrap width="2%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td nowrap width="64%" style="BORDER-BOTTOM: #000000 1pt solid; TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="11" nowrap width="14%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in thousands)</font></font></td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td nowrap width="1%" style="TEXT-ALIGN: center">
            </td>
            <td colspan="11" nowrap width="14%" style="TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">(dollars in thousands)</font></font></td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="1%">
            </td>
            <td nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="64%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Research and</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="64%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">Development Expense</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">814</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">199</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">615</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">309</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">2,018</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">739</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">$&#160;&#160;&#160;&#160;&#160;&#160;
      </font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">1,279</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">173</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="64%"><font size="1" style="FONT-FAMILY: serif">Grants Earned</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="2%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">(276</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="2%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">(48</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="2%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">(228</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">472</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="2%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">(758</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="2%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">(212</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid">
            </td>
            <td align="right" nowrap width="2%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">(546</font></td>
            <td align="left" nowrap width="1%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="1" style="FONT-FAMILY: serif">)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">257</font></td>
            <td align="left" nowrap width="1%"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="64%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160; Net
      Research and</font></font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="2%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
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            <td align="left" nowrap width="64%" bgcolor="#cceeff"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="1" style="FONT-FAMILY: serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
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            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">538</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">151</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">387</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">256</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">1,260</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">527</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">$</font></td>
            <td align="right" nowrap width="2%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double"><font size="1" style="FONT-FAMILY: serif">733</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff" style="BORDER-BOTTOM: #000000 2pt double">
            </td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff">
            </td>
            <td align="right" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">139</font></td>
            <td align="left" nowrap width="1%" bgcolor="#cceeff"><font size="1" style="FONT-FAMILY: serif">%</font></td>
          </tr><tr style="LINE-HEIGHT: 3pt;">
            <td align="left" nowrap width="64%">&#160;</td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="2%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="2%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="2%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="2%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="2%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="2%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="right" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
          </tr></table>
    </div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2" style="FONT-FAMILY: serif">&#160;</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2" style="FONT-FAMILY: serif">&#160;</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2" style="FONT-FAMILY: serif">Research and development spending in fiscal 2010 has increased
significantly from spending in fiscal 2009 due to increased research in the
technology of solar (photovoltaic) cell manufacturing to increase cell
efficiency. We receive reimbursements through governmental research and
development grants which are netted against these expenses. As we have increased
our research and development activity, we have also increased our efforts to
receive grants to fund this research. As a result, the amount of grants earned
in fiscal 2010 has significantly increased. </font></div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Income Taxes</font></font></font></div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2" style="FONT-FAMILY: serif">For the three months ended June 30, 2010 and 2009, we recorded income tax
expense (benefit) of $2.3 million and ($0.1 million), for effective tax rates of
38% and 30%, respectively. During the nine months ended June 30, 2010 and 2009,
we recorded income tax expense (benefit) of $2.5 million and ($0.1 million),
respectively. The effective tax rates used in calculating the income tax
provision for the nine months ended June 30 2010 and 2009 were 38% and 30%,
respectively, based upon estimates of annual income, annual permanent
differences, changes in the valuation allowance and statutory tax rates for
fiscal 2010 and 2009 for the various jurisdictions in which we operate. The
effective tax rate for the nine months ended June 30, 2009 was negatively
impacted by an increase in the valuation allowance and permanent differences
between financial income and taxable income, which were higher in relation to
the pre-tax loss. Without these adjustments a greater tax benefit would have
been recorded for the period.</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Liquidity and Capital Resources</font></font><font size="2" style="FONT-FAMILY: serif"> </font></div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2" style="FONT-FAMILY: serif">At June 30, 2010 and September 30, 2009, cash and cash equivalents were
$42.7 million and $42.3 million, respectively. Restricted cash increased $3.4
million due to receipt of customer deposits requiring bank guarantees
collateralized by cash. Our working capital was $55.5 million as of June 30,
2010 and $55.9 million as of September 30, 2009. The increase in cash was
primarily provided by cash from operating activities of $5.9 million, discussed
below. This was offset by purchases of property, plant and equipment of $3.1
million and an investment in a short term note receivable of $1.0 million. Our
ratio of current assets to current liabilities decreased to 2.3:1 as of June 30,
2010 from 4.1:1 as of September 30, 2009. The decline in our current ratio was
due to the simultaneous increase in our current assets and current liabilities
as we ramped up inventory purchases to meet the growing order backlog. Current
assets increased $24.4 million while current liabilities increased $24.8
million. The increase in customer orders is expected to result in higher
operating levels and a significant reduction in cash due to increases in
inventories and receivables and potential capital expenditures. We have never
paid dividends on our Common Stock. Our present policy is to apply cash to
investments in product development, acquisitions or expansion; consequently, we
do not expect to pay dividends on Common Stock in the foreseeable future. We
continue to have minimal long-term obligations to service.</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="TEXT-ALIGN: center"><font size="2" style="FONT-FAMILY: serif">24</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The success of our
growth strategy is dependent upon the availability of additional capital
resources on terms satisfactory to management. Our sources of capital in the
past have included the sale of equity securities, which include common and
preferred stock sold in private transactions and public offerings, capital
leases and long-term debt. There can be no assurance that we can raise such
additional capital resources on satisfactory terms. We believe that our
principal sources of liquidity discussed above are sufficient to support
operations.</font></div>
    <div align="justify">
      <div align="justify"><font size="2">&#160;</font></div>
      <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Cash Flows from <font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Operating Activities</font></font></font></font></font></font></div>
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        <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
        <div style="MARGIN-TOP: -5pt" align="justify"><font size="2" style="FONT-FAMILY: serif">&#160;</font></div>
      </div>
    </div>
    <div style="MARGIN-TOP: -5pt; TEXT-ALIGN: justify"><font size="2" style="FONT-FAMILY: serif">Cash provided by our operating activities was
$5.9 million for the nine months ended June 30, 2010, compared to $4.8 million
provided by such activities for the nine months ended June 30, 2009. During the
nine months ended June 30, 2010 cash was primarily generated by earnings from
operations, adjusted for non-cash charges. Additional cash was generated by
increases in current liabilities, such as customer deposits received with sales
orders, accounts payable, accrued compensation and deferred profit. These
increases were offset by an increase in restricted cash due to customers
requiring bank guarantees for their deposits; an increase in inventory necessary
to fulfill our backlog of orders; an increase in account receivable due to the
record volumes of shipments during the quarter; as well as an increase in
prepayments to vendors to take advantage of available discounts. In the first
nine months of fiscal 2009, cash was generated primarily by earnings from
operations, adjusted for non-cash charges. Cash was also generated by
collections of accounts receivable and decreases in current restricted cash and
inventory, partially offset by decreases in accounts payable, accrued
liabilities and customer deposits. </font></div>
    <div align="justify"><font size="2">&#160;</font></div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Cash Flows from Investing Activities</font></font></font></div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2" style="FONT-FAMILY: serif">&#160;</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2" style="FONT-FAMILY: serif">Our investing activities for the nine months ended June 30, 2010 and 2009
used $4.1 million and $1.8 million respectively. In the first nine months of
fiscal 2010 the company made capital expenditures of $3.1 million, including
land in the Netherlands adjacent to our current manufacturing facilities for
$1.0 million. We plan to use this land to expand our current facilities due to
our rapid growth. We also invested in machinery and equipment and infrastructure
due to our capacity expansion, primarily at our Netherlands location. In the
second quarter of fiscal 2010, we provided a $1.0 million short-term loan to one
of our technology partners. The note is collateralized by the intellectual
property of the technology partner and is personally guaranteed by the CEO of
the technology partner. As additional security, for the guarantee, the CEO
of&#160;the technology partner has pledged a portion of his ownership interest
in the company. Interest accrues at 4.5% annually. All interest payments are
current as of June 30, 2010. The loan was issued on January 15, 2010, matured on
June 30, 2010 and is currently in default. The technology partner has requested
a three month extension for the principal repayment. The Company recorded an
allowance of $0.5 million and is working with the technology partner to remedy
the default. For the nine months ended June 30, 2009, capital expenditures
amounted to $1.0 million primarily for machinery and equipment and paid $0.8
million for our licensing agreements with PST.</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Cash Flows from Financing Activities</font></font></font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2" style="FONT-FAMILY: serif">&#160;</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2">&#160;</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2">&#160;</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2" style="FONT-FAMILY: serif">For the nine months ended June 30, 2010, $0.1 million of cash was
provided by financing activities. The primary source of cash received was
proceeds from the issuance of common stock through the exercise of stock
options. This compares to $0.6 million of cash used in the first nine months of
fiscal 2009 primarily due to the purchase of commons stock under our stock
repurchase program.</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Off-Balance Sheet Arrangements</font></font></div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2">&#160;</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2" style="FONT-FAMILY: serif">As of June 30, 2010, Amtech had no off-balance sheet arrangements as
defined in Item 303(a)(4) of Regulation S-K promulgated by the Securities and
Exchange Commission. </font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold">&#160;</font></div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Contractual Obligations</font></font></div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify">&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="justify"><font size="2" style="FONT-FAMILY: serif">The only significant changes in contractual obligations since September
30, 2009 have been changes in purchase obligations, new building lease
obligations&#160;and additional obligations related to newly licensed products
(See Note 7 of the Condensed Consolidated Financial Statements). Refer to
Amtech&#8217;s annual report on Form 10-K for the year ended September 30, 2009, for
information on the Company&#8217;s other contractual obligations.</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="center"><font size="2" style="FONT-FAMILY: serif">25</font></div>
    <div>&#160;</div>
    <hr style="MARGIN-TOP: -5pt" align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Critical Accounting
Policies</font></font><font style="FONT-FAMILY: serif"> </font></div>
    <div>&#160;</div>
    <div align="justify"><font style="FONT-FAMILY: serif">&#8220;</font><font size="2" style="FONT-FAMILY: serif">Management&#8217;s Discussion and Analysis of
Financial Condition and Results of Operations&#8221; discusses our condensed
consolidated financial statements that have been prepared in accordance with
accounting principles generally accepted in the United States of America. The
preparation of these condensed consolidated financial statements requires us to
make estimates and assumptions that affect the reported amount of assets and
liabilities at the date of the condensed consolidated financial statements, the
disclosure of contingent assets and liabilities at the date of the condensed
consolidated financial statements and the reported amounts of revenue and
expenses during the reporting period.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">On an on-going basis,
we evaluate our estimates and judgments, including those related to revenue
recognition, inventory valuation, accounts and notes receivable collectability,
warranty and impairment of long-lived assets. We base our estimates and
judgments on historical experience and on various other factors that we believe
to be reasonable under the circumstances. The results of these estimates and
judgments form the basis for making conclusions about the carrying value of
assets and liabilities that are not readily apparent from other sources. Actual
results may differ from these estimates under different assumptions or
conditions.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">A critical accounting
policy is one that is both important to the presentation of our financial
position and results of operations, and requires management&#8217;s most difficult,
subjective or complex judgments, often as a result of the need to make estimates
about the effect of matters that are inherently uncertain. These uncertainties
are discussed in Part I, Item 1A of our Annual Report on Form 10-K for the year
ended September 30, 2009. We believe our critical accounting policies affect the
more significant judgments and estimates used in the preparation of our
consolidated financial statements.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">We believe the
critical accounting policies discussed in the section entitled &#8220;Item 7:
Management&#8217;s Discussion and Analysis of Financial Condition and Results of
Operations &#8211; Critical Accounting Policies&#8221; in our Annual Report on Form 10-K for
the fiscal year ended September 30, 2009 represent the most significant
judgments and estimates used in the preparation of our consolidated financial
statements. There have been no significant changes in our critical accounting
policies during the nine months ended June 30, 2010.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Impact of Recently Issued Accounting
Pronouncements</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">For discussion of the
impact of recently issued accounting pronouncements, see &#8220;Item 1: Financial
Information&#8221; under &#8220;Impact of Recently Issued Accounting
Pronouncements&#8221;.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">26 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 3. QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">We are exposed to
financial market risks, including changes in foreign currency exchange rates.
Our operations in the United States are conducted in U.S. dollars. Our
operations in Europe, the primary component of the solar and semiconductor
equipment segment, conduct business primarily in the Euro. The functional
currency of our European operation is the Euro. Nearly all of the transactions,
assets and liabilities of all other operating units are denominated in U.S.
dollars, their functional currency. The following disclosures about market risk
should be read in conjunction with the more in depth discussion in Item 7A,
Quantitative and Qualitative Disclosures About Market Risk in our Annual Report
on Form 10-K for the fiscal year ended September 30, 2009.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">As of June 30, 2010,
we did not hold any stand-alone or separate derivative instruments. We incurred
net foreign currency transaction losses of $0.4 million and less than $0.1
million respectively during the nine months ended June 30, 2010 and 2009. As of
June 30, 2010, our foreign subsidiaries had $5.5 million of assets (cash,
receivables and prepaid assets) denominated in currencies other than their
functional currency. A 10% change in the value of the functional currency
relative to the non-functional currency would result in a gain or loss of $0.6
million. As of June 30, 2010, we had $5.2 million of accounts payable,
consisting primarily of amounts owed by our foreign subsidiaries to our U.S.
companies, denominated in U.S. dollars. Although the intercompany accounts are
eliminated in consolidation, a 10% change in the value of the euro relative to
the U.S. dollar would result in a gain or loss of $0.5 million. </font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">We incurred foreign
currency translation losses of $6.4 million and $0.7 million during the nine
months ended June 30, 2010 and 2009, a type of other comprehensive income
(loss), which is a direct adjustment to stockholders&#8217; equity. The foreign
currency translation losses are due to the strengthening of the U.S. dollar
relative to the Euro during these periods. Our net investment in and advances to
our foreign operations totaled $45.6 million as of June 30, 2010. A 10% change
in the value of the euro relative to the U.S. dollar would cause approximately a
$4.6 million foreign currency translation adjustment,.</font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">During nine months
ended June 30, 2010 and 2009, our European operations transacted U.S. dollar
denominated sales and purchases of $1.0 million and $0.6 million, respectively.
As of June 30, 2010, sales commitments denominated in a currency other than the
functional currency of our transacting operation totaled $1.0 million. Our
lead-times to fulfill these commitments generally range between 13 and 26 weeks.
A 10% change in the relevant exchange rates between the time the order was taken
and the time of shipment would cause our gross profit on such orders to be $0.1
million greater than or less than expected on the date the order was taken. As
of June 30, 2010, purchase commitments denominated in a currency other than the
function currency of our transacting operation totaled $2.2 million. A 10%
change in the relevant exchange rates between the time the purchase order was
placed and the time the order is received would cause our cost of such items to
be $0.2 million greater than or less than expected on the date the purchase
order was placed.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">ITEM 4. CONTROLS AND
PROCEDURES</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Disclosure Controls and Procedures</font></font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">Our management,
including the Chief Executive Officer (&#8220;CEO&#8221;) and the Chief Financial Officer
(&#8220;CFO&#8221;), has carried out an evaluation of the effectiveness of our disclosure
controls and procedures as of June 30, 2010, pursuant to Exchange Act Rules
13a-15(e) and 15(d)-15(e). Based upon that evaluation, our CEO and CFO have
concluded that as of such date, our disclosure controls and procedures in place
are effective.</font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font style="DISPLAY: inline; FONT-STYLE: italic"><font size="2" style="FONT-FAMILY: serif">Changes in Internal Control Over Financial
Reporting</font></font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">There has been no
change in Amtech&#8217;s internal control over financial reporting during the three
months ended June 30, 2010 that has materially affected, or is reasonably likely
to materially affect, its internal control over financial
reporting.</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">27</font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">PART II. OTHER INFORMATION
</font></font></div>
    <div>&#160;</div>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Item 1A. Risk Factors </font></font></div>
    <div>&#160;</div>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">The most significant
risk factors applicable to Amtech are described in Part I, Item 1A (Risk
Factors) of Amtech&#8217;s Annual Report on Form 10-K for the fiscal year ended
September 30, 2009 (our &#8220;2009 Form 10-K&#8221;). There have been no material changes
to the risk factors previously disclosed on our 2009 Form 10-K. </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="70%" style="FONT-SIZE: 10pt; LINE-HEIGHT: 12pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom" style="LINE-HEIGHT: 14pt;">
            <td align="left" nowrap width="3%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Item 6.</font></font></td>
            <td align="left" nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td align="left" nowrap width="94%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Exhibits</font></font></td>
            <td align="right" nowrap width="1%">&#160;&#160;&#160;&#160; </td>
            <td align="right" nowrap width="1%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%"><font size="2">31.1</font></td>
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" valign="top" width="94%"><font size="2" style="FONT-FAMILY: serif">Certification of Chief Executive Officer Pursuant to Rule
      13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as
      Amended</font></td>
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" nowrap valign="top" width="1%"><font size="2">*</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%"><font size="2">31.2</font></td>
            <td align="left" nowrap valign="top" width="1%">&#160;</td>
            <td align="left" valign="top" width="94%"><font size="2" style="FONT-FAMILY: serif">Certification of Chief Financial Officer Pursuant to Rule
      13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as
      Amended</font></td>
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" nowrap valign="top" width="1%"><font size="2">*</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%"><font size="2">32.1</font></td>
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" valign="top" width="94%"><font size="2" style="FONT-FAMILY: serif">Certification of Chief Executive Officer Pursuant to 18 U.S.C.
      Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act
      of 2002</font></td>
            <td align="left" nowrap valign="top" width="1%">&#160;</td>
            <td align="left" nowrap valign="top" width="1%"><font size="2">*</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%"><font size="2">32.2</font></td>
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" valign="top" width="94%"><font size="2" style="FONT-FAMILY: serif">Certification of Chief Financial Officer Pursuant to 18 U.S.C.
      Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act
      of 2002</font></td>
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" nowrap valign="top" width="1%"><font size="2">*</font></td>
          </tr></table>
    </div>____________________<br>&#160;<br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" style="">
<tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">*</font></td>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160; </td>
            <td valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">Filed
      herewith.</font></td>
          </tr></table>
    </div>
    <div align="center"><font style="FONT-FAMILY: serif">&#160;</font></div>
    <div align="center"><font style="FONT-FAMILY: serif"><font size="2">28</font></font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font size="2" style="FONT-FAMILY: serif">SIGNATURES
</font></div>
    <div>&#160;</div>
    <div align="justify">&#160;&#160;&#160;&#160; <font size="2" style="FONT-FAMILY: serif">Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized. </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="2" nowrap width="48%"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC.</font></td>
            <td align="left" nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td align="left" colspan="3" nowrap width="50%">
            </td>
          </tr><tr>
            <td align="left" nowrap width="1%">&#160;&#160;&#160; &#160; </td>
            <td align="left" colspan="2" nowrap width="48%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="3" nowrap width="50%">
            </td>
          </tr><tr>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="2" nowrap width="48%">&#160;</td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="3" nowrap width="50%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%"><font size="2">By&#160; </font></td>
            <td align="left" nowrap width="47%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">/s/ Robert T.
      Hass</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="3%"><font size="2" style="FONT-FAMILY: serif">Dated:&#160;&#160; </font></td>
            <td align="left" nowrap width="7%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2">August 5, 2010</font></td>
            <td align="left" nowrap width="40%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="47%"><font size="2" style="FONT-FAMILY: serif">Robert T. Hass</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="3" nowrap width="50%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="47%"><font size="2" style="FONT-FAMILY: serif">Chief Accounting Officer</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="3" nowrap width="50%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="47%"><font size="2" style="FONT-FAMILY: serif">(Principal Accounting Officer)</font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="3" nowrap width="50%">
            </td>
          </tr></table>
    </div><br>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">29 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
    <div id="PN" style="PAGE-BREAK-BEFORE: always">
    </div><br>
    <div align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">EXHIBIT INDEX </font></font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="100%" style="LINE-HEIGHT: normal; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom" style="LINE-HEIGHT: 14pt;">
            <td align="left" nowrap width="3%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Exhibit</font></font></td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" colspan="2" nowrap width="89%">
            </td>
            <td align="left" nowrap width="1%">
            </td>
            <td align="left" nowrap width="5%"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Page or</font></font></td>
          </tr><tr valign="bottom" style="LINE-HEIGHT: 14pt;">
            <td align="left" nowrap width="3%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Number</font></font></td>
            <td align="left" nowrap width="1%">&#160; &#160;&#160;&#160; </td>
            <td align="left" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Description</font></font></td>
            <td align="left" nowrap width="84%">&#160;</td>
            <td align="left" nowrap width="1%">&#160;&#160;&#160;&#160;&#160; </td>
            <td align="left" nowrap width="5%" style="BORDER-BOTTOM: #000000 1pt solid"><font style="DISPLAY: inline; FONT-WEIGHT: bold"><font size="2" style="FONT-FAMILY: serif">Method of Filing</font></font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%" bgcolor="#cceeff"><font size="2">31.1</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" colspan="2" valign="top" width="89%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Certification of Chief Executive Officer
      Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of
      1934, as Amended</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap valign="top" width="5%" bgcolor="#cceeff"><font size="2">*</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%">&#160;</td>
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" colspan="2" valign="top" width="89%">
            </td>
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" nowrap valign="middle" width="5%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%" bgcolor="#cceeff"><font size="2">31.2</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" colspan="2" valign="top" width="89%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Certification of Chief Financial Officer
      Pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of
      1934, as Amended</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="#cceeff">&#160;</td>
            <td align="left" nowrap valign="top" width="5%" bgcolor="#cceeff"><font size="2">*</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%">&#160;</td>
            <td align="left" nowrap valign="top" width="1%">&#160;</td>
            <td align="left" colspan="2" valign="top" width="89%">
            </td>
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" nowrap valign="middle" width="5%">
            </td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%" bgcolor="#cceeff"><font size="2">32.1</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" colspan="2" valign="top" width="89%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Certification of Chief Executive Officer
      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
      the Sarbanes-Oxley Act of 2002</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap valign="top" width="5%" bgcolor="#cceeff"><font size="2">*</font></td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%">&#160;</td>
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" colspan="2" valign="top" width="89%">
            </td>
            <td align="left" nowrap valign="top" width="1%">
            </td>
            <td align="left" nowrap valign="middle" width="5%">&#160;</td>
          </tr><tr valign="bottom">
            <td align="left" nowrap valign="top" width="3%" bgcolor="#cceeff"><font size="2">32.2</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" colspan="2" valign="top" width="89%" bgcolor="#cceeff"><font size="2" style="FONT-FAMILY: serif">Certification of Chief Financial Officer
      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
      the Sarbanes-Oxley Act of 2002</font></td>
            <td align="left" nowrap valign="top" width="1%" bgcolor="#cceeff">
            </td>
            <td align="left" nowrap valign="top" width="5%" bgcolor="#cceeff"><font size="2">*</font></td>
          </tr></table>
    </div>____________________<br>&#160;<br>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" style="">
<tr>
            <td nowrap valign="top"><font size="2" style="FONT-FAMILY: serif">*</font></td>
            <td nowrap valign="top">&#160;&#160;&#160;&#160;&#160; </td>
            <td valign="top" width="100%"><font size="2" style="FONT-FAMILY: serif">Filed
      herewith.</font></td>
          </tr></table>
    </div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">&#160;</font></div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">30 </font></div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
  </body>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>exhibit31-1.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO RULE 13A-14(A)/15D-14(A)
<TEXT>
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    <title>exhibit31-1.htm</title>
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    <div style="MARGIN-TOP: -5pt" align="center"><font size="2" style="FONT-FAMILY: serif">Exhibit 31.1 </font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="center"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC. AND ITS SUBSIDIARIES<br>CERTIFICATION PURSUANT TO
RULE 13a-14(a)/15d-14(a)<br>OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif">I, Jong S. Whang, certify that: </font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif">1. I have reviewed this Quarterly Report on Form 10-Q of Amtech Systems,
Inc. (the &#8220;registrant&#8221;), </font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif">2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;
</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif">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; </font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif">4.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">The registrant&#8217;s other certifying officer and
I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(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;</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(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;</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(c) Evaluated the effectiveness of the
registrant&#8217;s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures,
as of the end of the period covered by this report based on such evaluation;
and</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(d) Disclosed in this report any change in the
registrant&#8217;s internal control over financial reporting that occurred during the
registrant&#8217;s most recent fiscal quarter that has materially affected, or is
reasonably likely to materially affect, the registrant&#8217;s internal control over
financial reporting; and</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif">5. The registrant&#8217;s other certifying officer and I have disclosed, based
on our most recent evaluation of internal control over financial reporting, to
the registrant&#8217;s auditors and the audit committee of the registrant&#8217;s board of
directors (or persons performing the equivalent functions): </font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>(a) All significant
deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely affect
the registrant&#8217;s ability to record, process, summarize and report financial
information; and </font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>(b) Any fraud, whether
or not material, that involves management or other employees who have a
significant role in the registrant&#8217;s internal control over financial reporting.
</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="30%" style="LINE-HEIGHT: 12pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="1%"><font size="2">By&#160; </font></td>
            <td align="left" nowrap width="99%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">/s/ Jong S.
      Whang</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">Jong S. Whang</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">Chief Executive Officer</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">Amtech Systems, Inc.</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">Date: August 5,
2010</font></td>
          </tr></table>
    </div>
    <div style="MARGIN-TOP: -5pt" align="justify">
    </div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
  </body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>exhibit31-2.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO RULE 13A-14(A)/15D-14(A)
<TEXT>
<html>
<head>
    <title>exhibit31-2.htm</title>
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    <div style="MARGIN-TOP: -5pt" align="center"><font size="2" style="FONT-FAMILY: serif">Exhibit 31.2 </font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="center"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC. AND ITS SUBSIDIARIES<br>CERTIFICATION PURSUANT TO
RULE 13a-14(a)/15d-14(a)<br>OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED
</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif">I, Bradley C. Anderson, certify that: </font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif">1. I have reviewed this Quarterly Report on Form 10-Q of Amtech Systems,
Inc. (the &#8220;registrant&#8221;), </font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif">2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;
</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif">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; </font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif">4.</font><font size="2" style="FONT-FAMILY: sans-serif"> </font><font size="2" style="FONT-FAMILY: serif">The registrant&#8217;s other certifying officer and
I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
internal control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and have:</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(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;</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(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;</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(c) Evaluated the effectiveness of the
registrant&#8217;s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures,
as of the end of the period covered by this report based on such evaluation;
and</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(d) Disclosed in this report any change in the
registrant&#8217;s internal control over financial reporting that occurred during the
registrant&#8217;s most recent fiscal quarter that has materially affected, or is
reasonably likely to materially affect, the registrant&#8217;s internal control over
financial reporting; and</font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif">5. The registrant&#8217;s other certifying officer and I have disclosed, based
on our most recent evaluation of internal control over financial reporting, to
the registrant&#8217;s auditors and the audit committee of the registrant&#8217;s board of
directors (or persons performing the equivalent functions): </font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>(a) All significant
deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely affect
the registrant&#8217;s ability to record, process, summarize and report financial
information; and </font></div>
    <div>&#160;</div>
    <div style="MARGIN-TOP: -5pt" align="left"><font size="2" style="FONT-FAMILY: serif"><font size="3">&#160;&#160;&#160;&#160;&#160;</font>(b) Any fraud, whether
or not material, that involves management or other employees who have a
significant role in the registrant&#8217;s internal control over financial reporting.
</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="30%" style="LINE-HEIGHT: 12pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="1%"><font size="2">By&#160; </font></td>
            <td align="left" nowrap width="99%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">      </font>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, serif">/s/
      Bradley C. Anderson</font></div>
            </td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">Bradley C. Anderson</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">      </font>
              <div style="DISPLAY: block; TEXT-INDENT: 0pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, serif">Chief
      Financial Officer</font></div>
            </td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">Amtech Systems, Inc.</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">Date: August 5,
2010</font></td>
          </tr></table>
    </div>
    <div style="MARGIN-TOP: -5pt" align="justify">
    </div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>exhibit32-1.htm
<DESCRIPTION>CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO 18 U.S.C. SECTION 1350
<TEXT>
<html>
<head>
    <title>exhibit32-1.htm</title>
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<body bgcolor="#ffffff"><br>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">Exhibit 32.1
</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC.
AND ITS SUBSIDIARIES </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">CERTIFICATION PURSUANT
TO<br>18 U.S.C. SECTION 1350,<br>AS ADOPTED PURSUANT TO<br></font><font size="2" style="FONT-FAMILY: serif">SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In connection with the Quarterly Report of Amtech Systems, Inc. (the
&#8220;Company&#8221;) on Form 10-Q for the period ended June 30, 2010, as filed with the
Securities and Exchange Commission on the date hereof (the &#8220;Report&#8221;), I, Jong S.
Whang, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C.
ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002,
that: </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(1) The Report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Company.&#160;&#160;</font><font size="2" style="FONT-FAMILY: serif">&#160;
</font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="30%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="1%"><font size="2">By&#160; </font></td>
            <td align="left" nowrap width="99%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">/s/ Jong S.
      Whang</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">Jong S. Whang</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">Chief Executive Officer</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">Date: August 5,
2010</font></td>
          </tr></table>
    </div><br>
    <hr align="center" noshade size="2" width="100%">
  </body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>exhibit32-2.htm
<DESCRIPTION>CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350
<TEXT>
<html>
<head>
    <title>exhibit32-2.htm</title>
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<body bgcolor="#ffffff"><br>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">Exhibit 32.2
</font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">AMTECH SYSTEMS, INC.
AND ITS SUBSIDIARIES </font></div>
    <div>&#160;</div>
    <div align="center"><font size="2" style="FONT-FAMILY: serif">CERTIFICATION PURSUANT
TO<br>18 U.S.C. SECTION 1350,<br>AS ADOPTED PURSUANT TO<br></font><font size="2" style="FONT-FAMILY: serif">SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
</font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">In connection with the Quarterly Report of Amtech Systems, Inc. (the
&#8220;Company&#8221;) on Form 10-Q for the period ended June 30, 2010, as filed with the
Securities and Exchange Commission on the date hereof (the &#8220;Report&#8221;), I, Bradley
C. Anderson, Chief Financial Officer of the Company, certify, pursuant to 18
U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of
2002, that: </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(1) The Report fully complies with the requirements of Section 13(a) or
15(d) of the Securities Exchange Act of 1934; and </font></div>
    <div>&#160;</div>
    <div align="left">&#160;&#160;&#160;&#160;&#160;<font size="2" style="FONT-FAMILY: serif">(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Company. </font></div>
    <div>&#160;</div>
    <div>
      <table border="0" cellpadding="0" cellspacing="0" width="30%" style="LINE-HEIGHT: 14pt; BORDER-COLLAPSE: collapse; ">
<tr valign="bottom">
            <td align="left" nowrap width="1%"><font size="2">By&#160; </font></td>
            <td align="left" nowrap width="99%" style="BORDER-BOTTOM: #000000 1pt solid"><font size="2" style="FONT-FAMILY: serif">/s/ Bradley C.
      Anderson</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">Bradley C. Anderson</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">Chief Financial Officer</font></td>
          </tr><tr valign="bottom">
            <td align="left" colspan="2" nowrap width="100%"><font size="2" style="FONT-FAMILY: serif">Date: August 5,
2010</font></td>
          </tr></table>
    </div>
    <div>&#160;</div>
    <hr align="center" noshade size="2" width="100%">
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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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