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<SEC-DOCUMENT>0001181431-06-057229.txt : 20061006
<SEC-HEADER>0001181431-06-057229.hdr.sgml : 20061006
<ACCEPTANCE-DATETIME>20061006125654
ACCESSION NUMBER:		0001181431-06-057229
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20061005
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20061006
DATE AS OF CHANGE:		20061006

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KOSS CORP
		CENTRAL INDEX KEY:			0000056701
		STANDARD INDUSTRIAL CLASSIFICATION:	HOUSEHOLD AUDIO & VIDEO EQUIPMENT [3651]
		IRS NUMBER:				391168275
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-03295
		FILM NUMBER:		061133113

	BUSINESS ADDRESS:	
		STREET 1:		4129 N PORT WASHINGTON AVE
		CITY:			MILWAUKEE
		STATE:			WI
		ZIP:			53212
		BUSINESS PHONE:		4149645000

	MAIL ADDRESS:	
		STREET 1:		4129 N PORT WASHINGTON AVE
		CITY:			MILWAUKEE
		STATE:			WI
		ZIP:			53212

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	KOSS ELECTRONICS INC
		DATE OF NAME CHANGE:	19721005

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	REK O KUT CO INC
		DATE OF NAME CHANGE:	19680124
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>rrd132755.htm
<DESCRIPTION>FORM 8-K REGARDING FIRST QUARTER EARNINGS RELEASE
<TEXT>


<html><head>
<title>Prepared By R.R. Donnelley Financial -- Form 8-K</title>
</head>
<body Bgcolor="white">

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<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>UNITED STATES </b></font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>SECURITIES AND EXCHANGE COMMISSION </b></font></div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Washington, D.C. 20549 </b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="5" Color="#000000">
<b>Form 8-K </b></font></div> <div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>Current Report </b></font></div>

<div Align="center"><font Face="times New Roman" Size="4" Color="#000000">
<b>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 </b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Date of Report (Date of earliest event reported):&nbsp;&nbsp;10/05/2006 </b></font></div>




<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="5" Color="#000000">
<b>Koss Corporation </b></font></div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Exact name of registrant as specified in its charter)</b></font></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Commission File Number:&nbsp;&nbsp;0-3295</b></font></div>

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<div Align="center"><table Cellspacing="0" Cellpadding="0" Width="100%" Border="0">
<tr>
<td Valign="bottom" Width="59%" Align="center">
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>DE</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Width="59%" Align="center">
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000"><b>39-1168275</b></font>
</div>
</td>
</tr>

<tr>
<td Valign="top" Align="center" Width="59%">
<div Style="margin-left:2%; Text-indent:-2%" Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(State or other jurisdiction of</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Align="center" Width="59%">
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000"><b>(IRS Employer</b></font>
</div>
</td>
</tr>

<tr>
<td Valign="top" Align="center" Width="59%">
<div Style="margin-left:2%; Text-indent:-2%" Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>incorporation)</b></font>
</div>
</td>
<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;&nbsp;</font>
</td>
<td Valign="bottom" Align="center" Width="59%">
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Identification No.)</b></font>
</div>
</td>
</tr>

</table></div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>4129 North Port Washington Avenue, Milwaukee, WI 53212</b></font></div>


<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Address of principal executive offices, including zip code)</b></font>
</div>

<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>(414) 964-5000 </b></font>
</div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Registrant&#146;s telephone number, including area code)</b></font>
</div>



<div><font Size="1">&nbsp;</font></div>

<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b> </b></font>
</div>

<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>(Former name or former address, if changed since last report) </b></font>
</div>


<div><font Size="1">&nbsp;</font>
</div>




<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:<BR><BR>
</b></font>


</div>



<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>[&nbsp;&nbsp;]&nbsp;&nbsp;
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>

[&nbsp;&nbsp;]&nbsp;&nbsp;
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>


[&nbsp;&nbsp;]&nbsp;&nbsp;
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</b>

</font>
</div>





<div><font Size="1">&nbsp;</font>
</div>

<hr Size="4" Noshade Color="#000000" Align="left">


<p Style='page-break-before:always'>
<p Align="center"><font Size="2">
Information to be included in the report</b>
</font>





<div><font Size="1">&nbsp;</font></div>

<div align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition</b></font>
</div>

<div><font Size="1">&nbsp;</font>
</div>

<div  align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
On October 5, 2006, Koss Corporation issued a press release announcing its financial results for the quarter ended September 30, 2006.  A copy of the press release is being furnished as Exhibit 99.1 to this Form 8-K.<p>The information in this report is being furnished pursuant to Item 2.02 Results of Operations and Financial Condition.  In accordance with General Instruction B.2 of Form 8-K, the information in this report shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1934, as amended.</font>
</div>

<div><font Size="1">&nbsp;</font></div>



<div><font Size="1">&nbsp;</font></div>

<div align="left"><font Face="times New Roman" Size="2" Color="#000000">
<b>Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits</b></font>
</div>

<div><font Size="1">&nbsp;</font>
</div>

<div  align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
Exhibit 99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Press Release dated October 5, 2006, announcing financial results for the quarter ended September 30, 2006</font>
</div>

<div><font Size="1">&nbsp;</font></div>



<hr  Size="3" Color="#cceeff" Width="100%" Align="center">
<p Align="center"><font Size="2">&nbsp;</font>
<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
<b>Signature(s) </b></font>
</div>

<div><font Size="1">&nbsp;</font></div>

<div align="left" Style="text-indent:4%"><font Face="times New Roman" Size="2" Color="#000000">
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. </font>
</div>

<div><font Size="1">&nbsp;</font></div>

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<tr>
	<td Valign="top" Colspan="3" Width="53%"> <div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000"></font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>
	<td> <font Size="1">&nbsp;</font>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>	<td Valign="top" Align="center" Width="3%">
	<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
	</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Koss Corporation</font>
	</div>	</td>
</tr>
<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>
<tr>
	<td Valign="top" Colspan="3" Width="53%"> <div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Date: October 06, 2006</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>
	<td> <font Size="1">&nbsp;</font>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font>
	</td>	<td Valign="top" Align="center" Width="3%">
	<div Align="center"><font Face="times New Roman" Size="2" Color="#000000">
	By:</font>
	</div>
	</td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="top" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	/s/&nbsp;&nbsp;&nbsp;&nbsp;Sujata Sachdeva</font>
	</div>
	<hr Noshade Align="left" Color="#000000">
	</td>
</tr>

<tr>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
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	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="53%">
	<div Style="margin-left:2%; Text-indent:-2%"><font Face="times New Roman" Size="2" Color="#000000">
	Sujata Sachdeva</font>
	</div>
	</td>
</tr>

<tr>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
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	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td> <font Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="3%"><font Face="times New Roman" Size="1">&nbsp;</font></td>
	<td Valign="bottom" Width="53%">
	<div><font Face="times New Roman" Size="2" Color="#000000">Vice President-Finance, Secretary</font>
	</div>
</td>
</tr>
<tr><td>&nbsp;</td></tr>
<tr><td>&nbsp;</td></tr>



</table></div>





<p Style='page-break-before:always'>
<hr  Size="3" Color="#cceeff" Width="100%" Align="center">

<p Align="center"><font Size="2">&nbsp;</font>
<div Align="center"><font Face="times New Roman" Size="3" Color="#000000">
<b>Exhibit Index </b></font>
</div>

<div><font Size="2">&nbsp;</font></div>

<div Align="center">
<table Cellspacing="0" Cellpadding="0" Width="100%" Border="0">




<tr>
	<td Valign="top" Align="left">
	<div Align="left"><font Face="times New Roman" Size="2" Color="#000000">
	<b>Exhibit&nbsp;No.</b></font>
	</div>
		<hr Size="2" Noshade Width="48" Color="#000000">
	</td>
	<td Valign="top" Width="3%" Align="left"><font Face="times New Roman" Size="2">&nbsp;&nbsp;</font></td>
	<td Valign="top" Width="100%" Align="left">
	<div><font Face="times New Roman" Size="2" Color="#000000">
	<b>Description</b></font>
	</div>
	<hr Size="2" Noshade Width="73" Align="left" Color="#000000">
	</td>
</tr>




<tr>
	<td Valign="top" Align="left">
	<div Align="top"><font Face="times New Roman" Size="1" Color="#000000">
	EX-99.1</font>
	</div>

	</td>
	<td Valign="top" Width="3%" Align="left"><font Face="times New Roman" Size="2">&nbsp;&nbsp;</font></td>
	<td Valign="top" Width="100%" Align="left">
	<div><font Face="times New Roman" Size="2" Color="#000000">
	Press Release dated October 5, 2006, announcing financial results for the quarter ended September 30, 2006</font>
	</div>
		</td>
</tr>





</div></table>



</body></html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>rrd132755_16207.htm
<DESCRIPTION>PRESS RELEASE DATED OCTOBER 5, 2006, ANNOUNCING FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2006
<TEXT>



<HTML>


<HEAD>








<TITLE>Exhibit 99</TITLE>


</HEAD>


<BODY>





<B><U><P ALIGN="RIGHT">Exhibit 99.1</P>


</U><FONT SIZE=3>


<P>FOR IMMEDIATE RELEASE:  October 5, 2006</P>





<P>CONTACT:&#9;MICHAEL J. KOSS (414) 964-5000</P>





</FONT><P ALIGN="CENTER">Koss Posts Record First Quarter on 12% Increase in Sales</P>


<P ALIGN="CENTER">Earnings up 18% as Net Income Increases by 18%</P>


<FONT SIZE=3>


<P ALIGN="JUSTIFY">Milwaukee, Wisconsin:</B>  Koss Corporation (NASDAQ SYMBOL: KOSS), the U.S. based high fidelity stereophone leader, has announced the results of its first quarter for the period ending September 30, 2006.  Net sales, operating income, and net income for the first quarter set new records with net sales for the first quarter increasing by 12% to</FONT><FONT SIZE=1> </FONT><FONT SIZE=3>$13,325,099 compared to $11,949,841 for the same period one year ago.  Net income for the three months rose by 18% to $1,693,680 </FONT>from <FONT SIZE=3>$1,441,218 for the same three month period one year ago.  First quarter diluted earnings per share increased by 18% to $0.45 compared to $0.38 for the same period one year ago.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">"Export sales, most notably to Europe, have been exceptionally strong in our first quarter," Michael J. Koss, President and CEO, told employees at a quarterly profit sharing meeting.  "In fact, shipments to Europe increased by 127% for the quarter compared with the same three month period one year ago."</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Michael Koss went on to explain that the increase in export shipments was in sharp contrast to the cooling in orders for Europe during the fourth quarter of the previous year, which ended June 30, 2006.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">"Europe is shining again as a bright spot for the company," Koss stated.  "We believe that this first quarter suggests a continuation of the increases in sales we have experienced during the last four fiscal years.  Last year Europe completed the fiscal year up by 43% compared with an increase of 82% in 2005, 72% in 2004, and 15% in 2003," Koss stated.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Michael Koss went on to explain that the record net income performance had been achieved despite increases in legal and professional fees relating to Intellectual Property protection.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">"Our concern for the balance of the year remains with domestic U.S. retail," Michael Koss said.  "Despite the recently reported improvements in the economy, the cessation of interest rate hikes, and reductions in oil prices, domestic U.S. retail appears to be quite soft.  It will be very interesting to see if retailers will take a chance on fully stocking their shelves for the holiday season in the coming quarter."  He continued, "thus far, replenishment of U.S. retail accounts has been softer than expected."</P>


<P ALIGN="JUSTIFY"></P>


</FONT><P ALIGN="JUSTIFY">Koss will pay a dividend of $0.13 cents per share on October 14, 2006, to shareholders of record September 29, 2006.</P>


<FONT SIZE=3><P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">Koss Corporation markets a complete line of high-fidelity stereophones, speaker-phones, computer headsets, telecommunications headsets, active noise canceling stereophones, wireless stereophones, and compact disc recordings of American Symphony Orchestras on the Koss Classics label.</P>


<P ALIGN="JUSTIFY"></P>


<P ALIGN="JUSTIFY">This press release contains forward looking statements.  These statements relate to future events or our future financial performance.  In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "forecasts," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of such terms and other comparable terminology.  These statements are only predictions.  Actual events or results may differ materially.  In evaluating forward-looking statements, you should specifically consider various factors that may cause actual results to vary from those contained in the forward-looking statements, such as general economic conditions, in particular, consumer demand for the Company's and its customers' products, competitive and technological developments, foreign currency fluctuations, and costs of operations.  Shareholders, potential investors and other readers are urged to consider these factors carefu
lly in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.  The forward-looking statements made herein are only made as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.  In addition, such uncertainties and other operational matters are discussed further in the Company's quarterly and annual filings with the Securities and Exchange Commission. </P>


<P ALIGN="JUSTIFY"></P>


<B><P ALIGN="CENTER">&nbsp;</P>


<P ALIGN="CENTER">KOSS CORPORATION AND SUBSIDIARIES</P>


<P ALIGN="CENTER">CONDENSED CONSOLIDATED STATEMENT OF INCOME</P>


</B><P ALIGN="CENTER">&#9;<B>(Unaudited)</P>


</B>


<P>&nbsp;</P></FONT>


<TABLE BORDER CELLSPACING=2 CELLPADDING=2 WIDTH=528>


<TR><TD WIDTH="61%" VALIGN="TOP">


<B><FONT SIZE=3><P>Three Months Ended September 30</B></FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<B><FONT SIZE=3><P ALIGN="CENTER">2006</B></FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<B><FONT SIZE=3><P ALIGN="CENTER">2005</B></FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>Net Sales</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$13,325,099</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$11,949,841</FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>Cost of goods sold</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">7,729,555</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">7,274,962</FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>Gross profit</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">5,595,544</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">4,674,879</FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>Selling, general and administrative expense</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">2,932,801</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">2,447,617</FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>Income from operations</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">2,662,743</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">2,227,262</FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>Other income (expense)</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>  Royalty income</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">81,249</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">101,611</FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>  Interest income</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">32,538</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">34,645</FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>  Interest expense</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">0</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">0</FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>Income before income tax provision</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">2,776,530</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">2,363,518</FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>Provision for income taxes</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">1,082,850</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">922,300</FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>  Net income</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$1,693,680</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$1,441,218</FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>Earnings per common share:</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>


<TD WIDTH="19%" VALIGN="TOP">&nbsp;</TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>  Basic </FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$0.46</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$0.39</FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>  Diluted</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$0.45</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$0.38</FONT></TD>


</TR>


<TR><TD WIDTH="61%" VALIGN="TOP">


<FONT SIZE=3><P>Dividends per common share</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$0.13</FONT></TD>


<TD WIDTH="19%" VALIGN="TOP">


<FONT SIZE=3><P ALIGN="RIGHT">$0.13</FONT></TD>


</TR>


</TABLE>





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