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<SEC-DOCUMENT>0000315374-04-000068.txt : 20040818
<SEC-HEADER>0000315374-04-000068.hdr.sgml : 20040818
<ACCEPTANCE-DATETIME>20040818120514
ACCESSION NUMBER:		0000315374-04-000068
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040731
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20040818

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HURCO COMPANIES INC
		CENTRAL INDEX KEY:			0000315374
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823]
		IRS NUMBER:				351150732
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-09143
		FILM NUMBER:		04983494

	BUSINESS ADDRESS:	
		STREET 1:		ONE TECHNOLOGY WAY
		CITY:			INDIANAPOLIS
		STATE:			IN
		ZIP:			46268
		BUSINESS PHONE:		3172935309

	MAIL ADDRESS:	
		STREET 1:		ONE TECHNOLOGY WAY
		CITY:			INDIANAPOLIS
		STATE:			IN
		ZIP:			46268

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HURCO MANUFACTURING CO INC
		DATE OF NAME CHANGE:	19850324
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k.htm
<DESCRIPTION>Q3_2004_EARNINGS
<TEXT>
<HTML><HEAD><TITLE>q3_2004_earnings</TITLE><!-- Licensed to: Hurco Companies, Inc--><!-- Document Created using EDGARIZER HTML --><!-- Copy Right 2003 EDGARfilings, Ltd., an IEC company.--><!-- All rights reserved EDGARfilings.com -->
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<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=right>&nbsp;</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>SECURITIES AND EXCHANGE COMMISSION</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>Washington, D.C. 20549</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>FORM 8-K</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>CURRENT REPORT</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>&nbsp;</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>Pursuant to Section 13 or 15(d) of the</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>Securities Exchange Act of 1934</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>Date of Report (Date of earliest event reported): February 18, 2004</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=left><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=left><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=left><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>HURCO COMPANIES, INC.</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>(Exact name of registrant as specified in its charter)</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>INDIANA<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT> <FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT> <FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT> <FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT>0-9143<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp;</FONT>35-1150732</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>(State or other jurisdiction<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT> <FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT>(Commission File No.)<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT> <FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT>(I.R.S. Employer </DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>of incorporation or organization)<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT> <FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT> <FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT> <FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT> <FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT> <FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT> Identification No.)</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=left><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=left><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>ONE TECHNOLOGY WAY</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>INDIANAPOLIS, INDIANA<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp;</FONT> 46268</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>(Address of principal executive offices and zip code)</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>(317) 293-5309</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>(Registrants' telephone number, including area code)</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>NOT APPLICABLE</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center>(Former name or former address, if changed since last report)</DIV>
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<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center><B>ITEM 12.</B><FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp; &nbsp;</FONT><B>RESULTS OF OPERATION AND FINANCIAL CONDITION</B></DIV>
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<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=left>On August 18, 2004, Hurco Companies, Inc. (the "Registrant") reported its results of operations for the&nbsp;third quarter ended July 31, 2004. The Registrant's earnings release for the quarter is attached as Exhibit 99 and the information set forth therein is incorporated herein by reference and constitutes a part of this report. The attached Exhibit is furnished pursuant to Item&nbsp;12 of Form 8-K.</DIV>
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<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center><STRONG>SIGNATURE</STRONG></DIV>
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<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=left>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 hereunto duly authorized.</DIV>
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<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=left><FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp;&nbsp;&nbsp;
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<TD colSpan=2><STRONG>HURCO COMPANIES, INC<FONT id=TAB2 style="LETTER-SPACING: 9pt">&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT id=TAB2 style="LETTER-SPACING: 9pt">&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT id=TAB2 style="LETTER-SPACING: 9pt">&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT id=TAB2 style="LETTER-SPACING: 9pt">&nbsp;&nbsp;&nbsp;</FONT>&nbsp;</STRONG></TD></TR>
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<TD>Date:&nbsp;August 18, 2004</TD>
<TD>By:&nbsp;&nbsp;</TD>
<TD>/s/&nbsp;Roger J. Wolf</TD></TR>
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Senior Vice President and Chief Financial Officer</TD></TR>
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<TD>Title&nbsp;</TD></TR></TABLE></FONT>&nbsp;<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp;&nbsp;&nbsp;</FONT>&nbsp;<FONT id=TAB1 style="LETTER-SPACING: 9pt">&nbsp;&nbsp;</FONT><BR></DIV>
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<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=center><FONT face=Courier size=2></FONT><FONT face="Times Roman" size=3><STRONG>EXHIBIT INDEX</STRONG></FONT></DIV><STRONG>
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<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=left><FONT face="Times Roman" size=3><STRONG><A href="exhibit99.htm">Exhibit 99 Press Release of Hurco Companies, Inc. dated August 18, 2004</A></STRONG></FONT></DIV></FONT></DIV></DIV></BODY></HTML>

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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>exhibit99.htm
<DESCRIPTION>Q3_2004_EARNINGS
<TEXT>
<HTML><HEAD><TITLE>q3_2004_earnings</TITLE><!-- Licensed to: Hurco Companies, Inc--><!-- Document Created using EDGARIZER HTML --><!-- Copy Right 2003 EDGARfilings, Ltd., an IEC company.--><!-- All rights reserved EDGARfilings.com -->
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<DIV><STRONG><A name="q3 earnings ex 99">EXHIBIT 99</A></STRONG></DIV><BR>
<DIV></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify><B>FOR IMMEDIATE RELEASE</B></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify><B>WEDNESDAY</B><B>, </B><B>AUGUST</B><B> </B><B>18</B><B>, 200</B><B>4</B></DIV>
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<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify><B>HURCO REPORTS </B><B>THIRD</B><B> QUARTER 200</B><B>4</B><B> RESULTS</B></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify><B>INDIANAPOLIS, INDIANA</B><B>, </B><B>&#151;</B><B> </B><B>August&nbsp;</B><B>18</B><B>, </B><B>2004&#151;Hurco Companies, Inc. (Nasdaq:HURC) </B>today announced that for its third fiscal quarter, which ended July 31, 2004, it recorded net income of $1,582,000, or $.25 per share, compared to $331,000, or $.06 per share, for the corresponding quarter of 2003. For the first nine months of fiscal 2004, Hurco recorded net income of $3,988,000, or $.67 per share, compared to a net loss of $112,000, or $.02 per share, for the corresponding 2003 period.</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify>The Company attributed the dramatic improvement in its operating results to a substantial increase in its sales of computerized machine tools, due primarily to strong demand for its new machine tool models introduced over the past two years and improving market conditions, particularly in the United States and Southeast Asia. The improved results also reflected the favorable effects of stronger European currencies during the 2004 period, which resulted in a more favorable average exchange rate when translating foreign currencies into U.S. dollars for financial reporting purposes.</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify>Sales and service fees for the third quarter of fiscal 2004 were $23,748,000, an increase of $5,394,000, or 29%, over the corresponding quarter of 2003. Approximately 67% of Hurco&#146;s sales during the 2004 period were made outside the United States and were denominated in local currencies (primarily the Euro and Pound Sterling). As a result, approximately $1,000,000 of the increase was attributable to the favorable effects of currency translation. </DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify>New order bookings for the third quarter of fiscal 2004 were $27,448,000, an increase of $8,539,000, or 45%, over the third quarter of 2003. Approximately $1,200,000 of the increase was attributable to the favorable effects of currency translation. Orders increased 54% in the United States, 33% in Europe and 244% in Asia. For the nine months ended July 31, 2004, new orders increased $19,995,000, or 38%, over the 2003 period. Backlog was $11,104,000 at July 31, 2004, compared to $7,392,000 at April 30, 2004., and $8,153,000 at October 31, 2003.</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify>Hurco&#146;s gross margin for the third quarter of fiscal 2004 was 30.8% compared to 27.6% for the prior year period. The improvement reflected the benefits of higher unit sales and stronger European currencies. Selling, general and administrative expenses were $5,241,000 for the 2004 period, an increase of $909,000 over the amount recorded for the corresponding 2003 period. </DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify>Total debt was $4,953,000 at July 31, 2004, and represented 12% of the Company&#146;s total capitalization, which aggregated $40,859,000. As of July 31, 2004, the Company had unutilized credit facilities of&nbsp; $12,211,000 available for direct borrowing or commercial letters of credit.</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify>Michael Doar, Chief Executive Officer, stated, "We are encouraged by the financial results achieved in the third quarter. Order intake in the United States and Asia continues to be strong while order rates in Europe improved considerably in the third quarter. Our lower-priced VM product line introduced nearly two years ago continues to generate significant orders. To meet customer demand, we have increased our inventories of finished products and are increasing our production capacity. We look forward to introducing new machine tool models at the International Manufacturing Technology Show in September, including a series of turning centers (lathes), a first for Hurco, that will broaden our product lines and the markets we can serve. &#148; </DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify>Hurco Companies, Inc. is an industrial technology company that designs and produces interactive computer controls, software and computerized machine tools for the worldwide metal cutting and metal forming industry. The end market for the Company's products consists primarily of independent job shops and short-run manufacturing operations within large corporations in industries such as the aerospace, defense, medical equipment, energy, transportation and computer equipment. The Company is based in Indianapolis, Indiana, and has sales, application engineering and service subsidiaries in High Wycombe, England; Munich, Germany; Paris, France; Milan, Italy; Shanghai, China and Singapore, along with manufacturing operations in Taiwan. Products are sold through independent agents and distributors in the United States, Europe and Asia. The Company also has direct sales forces in the United Kingdom, Ger
many, France, Italy, and Asia. </DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify>Web Site: <FONT color=#0000ff><U>www.hurco.com</U></FONT></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: -18pt" align=justify><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: -18pt" align=justify><FONT color=#000000><I>This news release contains forward looking statements which involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors include, among others, changes in general economic and business conditions that affect demand for computerized machine systems, computer numerical control systems and software products, changes in manufacturing markets, innovations by competitors, quality and delivery performance by our contract manufacturers and governmental actions and initiatives including import and export restrictions and tariffs.</I></FONT></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify><BR></DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify>Contact: Roger J. Wolf</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify>Sr. Vice President &amp; CFO</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify>317-293-5319</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify>&nbsp;</DIV>
<DIV>
<TABLE id=PGBRK cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR vAlign=top>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD align=left width="33%">&nbsp;</TD>
<TD align=middle width="33%">&nbsp;</TD>
<TD align=right width="34%">&nbsp;</TD></TR>
<TR vAlign=top>
<TD width="100%" colSpan=3>
<HR style="PAGE-BREAK-AFTER: always" noShade SIZE=1>
</TD></TR>
<TR vAlign=top>
<TD width="100%" colSpan=3>&nbsp;</TD></TR></TABLE></DIV>
<DIV>&nbsp;</DIV>
<DIV style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align=justify><BR>
<DIV></DIV>
<TABLE id=10001 cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR>
<TD vAlign=bottom align=middle width="100%" colSpan=14>
<DIV align=center><FONT color=#000000><B>Hurco Companies, Inc.</B></FONT></DIV></TD></TR>
<TR>
<TD vAlign=bottom align=middle width="100%" colSpan=14>
<DIV align=center><FONT color=#000000><B>CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS</B></FONT></DIV></TD></TR>
<TR>
<TD vAlign=bottom align=middle width="100%" colSpan=14>
<DIV align=center><FONT color=#000000>(In thousands, except per-share data)</FONT></DIV></TD></TR>
<TR>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="14%" colSpan=3>
<DIV align=right>&nbsp;</DIV></TD>
<TD vAlign=bottom align=right width="14%" colSpan=3>
<DIV align=right>&nbsp;</DIV></TD>
<TD vAlign=bottom align=right width="14%" colSpan=3>
<DIV align=right>&nbsp;</DIV></TD>
<TD vAlign=bottom align=right width="13%" colSpan=3>
<DIV align=right>&nbsp;</DIV></TD></TR>
<TR>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=middle width="28%" colSpan=6>
<DIV align=center><FONT color=#000000>Three Months Ended July 31,</FONT></DIV></TD>
<TD vAlign=bottom align=middle width="27%" colSpan=6>
<DIV align=center><FONT color=#000000>Nine Months Ended July 31, </FONT></DIV></TD></TR>
<TR>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=middle width="14%" colSpan=3>
<DIV align=center>&nbsp;</DIV></TD>
<TD vAlign=bottom align=middle width="14%" colSpan=3>
<DIV align=center>&nbsp;</DIV></TD>
<TD vAlign=bottom align=middle width="14%" colSpan=3>
<DIV align=center>&nbsp;</DIV></TD>
<TD vAlign=bottom align=middle width="13%" colSpan=3>
<DIV align=center>&nbsp;</DIV></TD></TR>
<TR>
<TD vAlign=bottom width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom width="14%" colSpan=3>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom width="14%" colSpan=3>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom width="14%" colSpan=3>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom width="13%" colSpan=3>
<HR width="100%" noShade SIZE=2>
</TD></TR>
<TR>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=middle width="14%" colSpan=3>
<DIV align=center><FONT color=#000000>2004</FONT></DIV></TD>
<TD vAlign=bottom align=middle width="14%" colSpan=3>
<DIV align=center><FONT color=#000000>2003</FONT></DIV></TD>
<TD vAlign=bottom align=middle width="14%" colSpan=3>
<DIV align=center><FONT color=#000000>2004</FONT></DIV></TD>
<TD vAlign=bottom align=middle width="13%" colSpan=3>
<DIV align=center><FONT color=#000000>2003</FONT></DIV></TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="43%">
<HR width="100%" noShade SIZE=2>
</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR>
<TD vAlign=bottom align=right width="43%">
<DIV style="MARGIN-LEFT: 9pt" align=center><FONT color=#000000></FONT>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="25%" colSpan=4>
<DIV style="MARGIN-LEFT: 9pt" align=center><FONT color=#000000>(unaudited)&nbsp;</FONT>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="25%" colSpan=4>
<DIV align=center><FONT color=#000000>(unaudited</FONT><FONT color=#000000>)</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000><B>Sales and service fees</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>23,748 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>18,354 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>70,721 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>51,760 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Cost of sales and service</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>16,435 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>13,280 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>49,464 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>37,564 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000><B>Gross profit</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>7,313 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,074 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>21,257 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>14,196 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Selling, general and administrative expenses</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,241 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>4,332 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>15,295 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>13,323 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000><B>Operating income </B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>2,072 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>742 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,962 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>873 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Interest expense</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>113 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>167 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>374 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>476 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Variable Option Expense</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>- </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>- </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>322 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>- </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Other income (expense), net</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>28 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>(43</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>)</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>(119</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>)</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Income before taxes</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>1,987 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>532 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,147 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>402 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Provision for income taxes</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>405 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>201 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>1,159 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>514 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000><B>Net income (loss)</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>1,582 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>331 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>3,988 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>(112</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>)</FONT></DIV></TD></TR>
<TR vAlign=bottom bgColor=#ffffff>
<TD width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000><B>Earnings (loss) per common share</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000><B>Basic</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>0.27 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>0.06 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>0.70 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>(0.02</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>)</FONT></DIV></TD></TR>
<TR vAlign=bottom bgColor=#ffffff>
<TD width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000><B>Diluted</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>0.25 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>0.06 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>0.67 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>(0.02</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>)</FONT></DIV></TD></TR>
<TR vAlign=bottom bgColor=#ffffff>
<TD width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000><B>Weighted average common shares outstanding</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000><B>Basic</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,882 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,583 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,722 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,583 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#ffffff>
<TD width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000><B>Diluted</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>6,204 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,630 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,964 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,583 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#ffffff>
<TD width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD>
<TD align=right width="10%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000><B>OTHER CONSOLIDATED FINANCIAL DATA</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="25%" colSpan=4>
<DIV align=center><FONT color=#000000>Three Months Ended July 31,</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="25%" colSpan=4>
<DIV align=center><FONT color=#000000>Nine Months Ended July 31,</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000><B>Operating Data:</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV align=center><FONT color=#000000>2004</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<P align=center>&nbsp;</P></TD>
<TD vAlign=bottom align=left width="1%">
<P align=center>&nbsp;</P></TD>
<TD vAlign=bottom align=right width="11%">
<DIV align=center><FONT color=#000000>2003</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<P align=center>&nbsp;</P></TD>
<TD vAlign=bottom align=left width="1%">
<P align=center>&nbsp;</P></TD>
<TD vAlign=bottom align=right width="11%">
<DIV align=center><FONT color=#000000>2004</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<P align=center>&nbsp;</P></TD>
<TD vAlign=bottom align=left width="1%">
<P align=center>&nbsp;</P></TD>
<TD vAlign=bottom align=right width="11%">
<DIV align=center><FONT color=#000000>2003</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV style="MARGIN-LEFT: 9pt" align=center><FONT color=#000000></FONT>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="25%" colSpan=4>
<DIV style="MARGIN-LEFT: 9pt" align=center><FONT color=#000000>(unaudited)&nbsp;</FONT>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="25%" colSpan=4>
<DIV align=center><FONT color=#000000>(unaudited </FONT><FONT color=#000000>)</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Gross margin</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>30.8</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>%</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>27.6</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>%</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>30.1</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>%</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>27.4</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>%</FONT></DIV></TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>SG&amp;A expense as a percentage of sales</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>22.1</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>%</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>23.6</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>%</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>21.6</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>%</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>25.7</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>%</FONT></DIV></TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Operating income as a percentage of sales</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>8.7</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>%</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>4.0</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>%</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>8.4</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>%</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>1.7</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>%</FONT></DIV></TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Income before taxes as a percentage of sales </FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>8.4</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>%</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>2.9</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>%</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>7.3</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>%</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>0.8</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>%</FONT></DIV></TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Depreciation</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>291 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>358 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>932 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>1,073 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Capital expenditures</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>742 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>338 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>1,732 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>835 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000></FONT>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000><B>Balance Sheet Data:</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>7/31/2004</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>7/31/2003</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">&nbsp;</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Working capital (excluding short term debt)</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>24,698 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>23,448 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Days sales outstanding</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>45 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>45 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Inventory turns</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>2.5 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>1.9 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="43%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Capitalization</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Total debt</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>4,953 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>10,334 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Shareholders' equity</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>35,906 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>27,986 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="43%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">&nbsp;</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="43%">
<DIV align=left><FONT color=#000000>Total</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>40,859 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>38,320 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR></TABLE></DIV></DIV>
<P>&nbsp;</P>
<DIV>
<TABLE id=PGBRK cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR vAlign=top>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD align=left width="33%">&nbsp;</TD>
<TD align=middle width="33%">&nbsp;</TD>
<TD align=right width="34%">&nbsp;</TD></TR>
<TR vAlign=top>
<TD width="100%" colSpan=3>
<HR style="PAGE-BREAK-AFTER: always" noShade SIZE=1>
</TD></TR>
<TR vAlign=top>
<TD width="100%" colSpan=3>&nbsp;</TD></TR></TABLE></DIV>
<DIV>&nbsp;</DIV>
<P>&nbsp;</P>
<TABLE id=10001 cellSpacing=0 cellPadding=0 width="100%" align=center border=0>
<TR>
<TD vAlign=bottom align=middle width="100%" colSpan=8>
<DIV align=center><FONT color=#000000><B>Hurco Companies, Inc.</B></FONT></DIV></TD></TR>
<TR>
<TD vAlign=bottom align=middle width="100%" colSpan=8>
<DIV align=center><FONT color=#000000><B>CONDENSED CONSOLIDATED BALANCE SHEET</B></FONT></DIV></TD></TR>
<TR>
<TD vAlign=bottom align=middle width="100%" colSpan=8>
<DIV align=center><FONT color=#000000>(In thousands, except per-share data)</FONT></DIV></TD></TR>
<TR>
<TD vAlign=bottom align=right width="71%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="14%" colSpan=3>
<DIV align=right>&nbsp;</DIV></TD>
<TD vAlign=bottom align=right width="13%" colSpan=3>
<DIV align=right>&nbsp;</DIV></TD></TR>
<TR>
<TD vAlign=bottom align=right width="71%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=middle width="14%" colSpan=3>
<DIV align=center>&nbsp;</DIV></TD>
<TD vAlign=bottom align=middle width="13%" colSpan=3>
<DIV align=center>&nbsp;</DIV></TD></TR>
<TR>
<TD vAlign=bottom align=right width="71%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=middle width="14%" colSpan=3>
<DIV align=center><FONT color=#000000>July 31,</FONT></DIV></TD>
<TD vAlign=bottom align=middle width="13%" colSpan=3>
<DIV align=center><FONT color=#000000>October 31,</FONT></DIV></TD></TR>
<TR>
<TD vAlign=bottom align=right width="71%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=middle width="14%" colSpan=3>
<DIV align=center><FONT color=#000000>2004</FONT></DIV></TD>
<TD vAlign=bottom align=middle width="13%" colSpan=3>
<DIV align=center><FONT color=#000000>2003</FONT></DIV></TD></TR>
<TR>
<TD vAlign=bottom width="71%">
<HR width="100%" noShade SIZE=2>
</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="71%"></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV style="MARGIN-LEFT: 9pt" align=center><FONT color=#000000>(unaudited)&nbsp;</FONT>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV align=center><FONT color=#000000>(audited)</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">
<DIV>&nbsp;</DIV></TD></TR>
<TR>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000><B>ASSETS</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000><B>Current assets:</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Cash and cash equivalents</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>6,564 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,289 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Cash - restricted</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>- </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>622 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Accounts receivable</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>14,351 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>12,823 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Inventories</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>27,393 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>22,247 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Other</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>2,171 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>1,409 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="71%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Total current assets</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>50,479 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>42,390 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="71%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="71%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000><B>Property and equipment:</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Land</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>761 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>761 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Building</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>7,242 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>7,239 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Machinery and equipment</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>10,908 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>10,568 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Leasehold improvements</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>648 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>544 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="71%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="71%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>19,559 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>19,112 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Less accumulated depreciation and amortization</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>(11,131</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>)</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>(10,730</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>)</FONT></DIV></TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="71%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="71%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>8,428 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>8,382 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="71%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000><B>Software development costs, less amortization</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>2,686 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>1,922 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000><B>Investments and other assets</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,599 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>5,264 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="71%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="71%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>67,192 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>57,958 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#ffffff>
<TD width="57%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD align=right width="12%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="2%">&nbsp;</TD>
<TD align=right width="12%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="2%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="71%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000><B>LIABILITIES AND SHAREHOLDERS' EQUITY</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000><B>Current liabilities:</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Accounts payable</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>16,746 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>9,461 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Accrued expenses</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>9,035 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>10,048 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Current portion of long-term debt</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>315 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>645 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="71%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Total current liabilities</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>26,096 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>20,154 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="71%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="71%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000><B>Non-current liabilities:</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Long-term debt</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>4,638 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>8,577 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Deferred credits and other obligations</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>552 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>486 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="71%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Total liabilities</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>31,286 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>29,217 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="71%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="71%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000><B>Shareholders' equity:</B></FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Preferred stock: no par value per share; 1,000,000 shares</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>- </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>- </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>authorized; no shares issued</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Common stock: no par value; $.10 stated value per share;</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>12,500,000 shares authorized; and 5,953,694 and</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV>&nbsp;</DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>5,575,987 shares issued, respectively</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>595 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>557 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Additional paid-in capital</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>46,495 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>44,695 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Accumulated deficit</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>(5,723</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>)</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>(9,711</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>)</FONT></DIV></TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Accumulated other comprehensive income</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>(5,461</FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">
<DIV><FONT color=#000000>)</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>(6,800</FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>)</FONT></DIV></TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="71%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=left width="71%">
<DIV align=left><FONT color=#000000>Total shareholders' equity</FONT></DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>35,906 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>28,741 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom width="71%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=right width="12%" colSpan=2>
<HR width="100%" noShade SIZE=2>
</TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR bgColor=#ffffff>
<TD vAlign=bottom align=right width="71%">
<DIV align=right>&nbsp;</DIV></TD>
<TD width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>67,192 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="2%">&nbsp;</TD>
<TD vAlign=bottom align=left width="1%">
<DIV><FONT color=#000000>$</FONT></DIV></TD>
<TD vAlign=bottom align=right width="11%">
<DIV><FONT color=#000000>57,958 </FONT></DIV></TD>
<TD vAlign=bottom align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom bgColor=#ffffff>
<TD width="57%">&nbsp;</TD>
<TD width="2%">&nbsp;</TD>
<TD align=right width="12%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="2%">&nbsp;</TD>
<TD align=right width="12%" colSpan=2>
<HR noShade SIZE=4>
</TD>
<TD width="2%">&nbsp;</TD></TR></TABLE></BODY></HTML>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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