0000883984 2009-03-31 0000883984 2008-12-31 0000883984 2009-01-01 2009-03-31 0000883984 2008-01-01 2008-03-31 0000883984 2007-12-31 0000883984 2008-03-31 0000883984 2009-04-10 0000883984 2008-06-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares ICU MEDICAL INC 0000883984 10-Q 2009-03-31 false --12-31 Yes Yes Accelerated Filer 68029000 55696000 64788000 56093000 132817000 111789000 30297000 38423000 21696000 17930000 271000 4544000 4334000 3471000 3771000 3231000 193186000 179388000 68787000 69897000 940000 940000 6014000 9050000 11350000 16987000 10780000 3855000 3855000 1210000 1210000 294015000 283434000 8717000 7879000 14385000 14081000 23102000 21960000 5383000 4007000 4436000 4436000 1478000 1478000 51440000 50970000 205000 1623000 208366000 201304000 15000 902000 261094000 253031000 294015000 283434000 321000 320000 1.00 1.00 500000 500000 0 0 0 0 0.10 0.10 80000000 80000000 14784000 14784000 14778000 14731000 6000 53000 54195000 43671000 140000 983000 54335000 44654000 27769000 26883000 26566000 17771000 15112000 13108000 738000 2019000 15850000 15127000 10716000 2644000 318000 1556000 11034000 4200000 3972000 1302000 7062000 2898000 0.48 0.21 0.47 0.20 14869000 14376000 14735000 13752000 3564000 3410000 16000 -38000 599000 416000 -20000 -7777000 -172000 2273000 1646000 1340000 -566000 748000 -699000 -276000 -568000 3872000 152000 19769000 4663000 2144000 3592000 5663000 -6014000 -24000 20936000 9027000 14541000 34622000 -8188000 22027000 1207000 1071000 623000 744000 19000 954000 560000 1289000 2769000 -537000 263000 12333000 29722000 -887000 736000 6175000 3634000 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD> <BODY> <P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note 1:&nbsp; Basis of Presentation:</FONT></B></P> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and pursuant to the rules&nbsp;and regulations of the Securities and Exchange Commission (&#147;SEC&#148;) and reflect all adjustments, consisting of only normal recurring adjustments, which are, in the opinion of management, necessary for a fair statement of the consolidated results for the interim periods presented. Results for the interim period are not necessarily indicative of results for the full year. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules&nbsp;and regulations. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company&#146;s </FONT><FONT style="FONT-SIZE: 10pt" size=2>Annual Report on Form&nbsp;10-K filed with the SEC for the year ended December&nbsp;31, 2008</FONT><FONT style="FONT-SIZE: 10pt" size=2>.</FONT></P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>ICU Medical,&nbsp;Inc. (the &#147;Company&#148;), a Delaware corporation, operates principally in one business segment engaged in the development, manufacturing and marketing of disposable medical devices. The Company&#146;s devices are sold principally to distributors and medical product manufacturers throughout the United States and internationally. All subsidiaries are wholly or majority owned and included in the consolidated financial statements. All intercompany balances and transactions have been eliminated.</FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD> <BODY> <P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note 4:</FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" size=2>&nbsp; </FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" size=2>Fair Value Measurement</FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" size=2>:</FONT></B></P> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 24.5pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>The Company&#146;s investment securities, which are considered &#147;available for sale&#148; and trading consist principally of corporate preferred stocks and federal-tax-exempt state and municipal government debt.&nbsp; The Company has $61.7&nbsp;million of its investment securities as Level 2 assets, which are pre-refunded municipal securities and have observable inputs. The Company has $11.7 million invested in &#147;auction rate securities&#148; and $0.4 million in put option assets related to the auction rate securities as Level 3 assets due to the unobservable inputs caused by the lack of liquidity in the recent auctions. The valuation of these securities was based on quotes received from our brokers which were derived from their internal models combined with internally developed discount factors.&nbsp; In determining a discount factor for each auction rate security, the model weights various factors, including assessments of credit quality, duration, insurance wraps, discount rates, overall capital market liquidity and comparable securities, if any.&nbsp; They are carried at fair value.</FONT></P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 24.5pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 24.5pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of March&nbsp;31, 2009:</FONT></P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 24.5pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <DIV align=center> <TABLE style="WIDTH: 90.02%; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="90%" border=0> <TBODY> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 28.7%; PADDING-TOP: 0in" vAlign=bottom width="28%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.78%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 67.76%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="67%" colSpan=11> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman" size=1>Fair&nbsp;value&nbsp;measurements&nbsp;at&nbsp;March&nbsp;31, 2009&nbsp;using</FONT></B></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 28.7%; PADDING-TOP: 0in" vAlign=bottom width="28%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.78%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.6%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="15%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman" size=1>Total&nbsp;carrying<BR>value&nbsp;at<BR>March&nbsp;31, 2009</FONT></B></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.76%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.6%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="15%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman" size=1>Quoted&nbsp;prices<BR>in&nbsp;active<BR>markets&nbsp;for<BR>identical<BR>assets&nbsp;(level&nbsp;1)</FONT></B></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.76%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.6%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="15%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman" size=1>Significant<BR>other<BR>observable<BR>inputs&nbsp;(level&nbsp;2)</FONT></B></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.76%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.68%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="15%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman" size=1>Significant<BR>unobservable<BR>inputs&nbsp;(level&nbsp;3)</FONT></B></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 28.7%; PADDING-TOP: 0in" vAlign=bottom width="28%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Available for sale securities</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.78%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.44%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.16%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="14%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>61,738</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.44%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 14.16%; PADDING-TOP: 0in" vAlign=bottom width="14%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>&#151;</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.44%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 14.16%; PADDING-TOP: 0in" vAlign=bottom width="14%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>61,738</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.44%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 14.24%; PADDING-TOP: 0in" vAlign=bottom width="14%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>&#151;</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 28.7%; PADDING-TOP: 0in" vAlign=bottom width="28%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Trading securities</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.78%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.6%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="15%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>12,100</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.6%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="15%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>&#151;</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.6%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="15%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>&#151;</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 15.68%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="15%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>12,100</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 28.7%; PADDING-TOP: 0in" vAlign=bottom width="28%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.78%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.16%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="14%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>73,838</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.16%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="14%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>&#151;</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.16%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="14%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>61,738</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.24%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="14%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>12,100</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.76%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR></TBODY></TABLE></DIV> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>The following tables summarize the change in the fair values for Level 3 items for the quarter ended March&nbsp;31, 2009:</FONT></P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.75in"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Level&nbsp;3&nbsp;changes&nbsp;in&nbsp;fair&nbsp;value&nbsp;(pre-tax):</FONT></B></P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <TABLE style="MARGIN-LEFT: 0.75in; WIDTH: 85.74%; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="85%" border=0> <TBODY> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.46%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="16%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman" size=1>Quarter&nbsp;ended<BR>March&nbsp;31, 2009</FONT></B></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in" vAlign=bottom width="18%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.94%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Beginning balance</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.96%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="14%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>15,925</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.5%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.92%; PADDING-TOP: 0in" vAlign=bottom width="16%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.94%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Transfer into Level 3</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.46%; PADDING-TOP: 0in" vAlign=bottom width="16%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>&#151;</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in" vAlign=bottom width="18%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.94%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Sales</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 16.46%; PADDING-TOP: 0in" vAlign=bottom width="16%" bgColor=#cceeff colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>(3,825</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>)</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in" vAlign=bottom width="18%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.94%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Unrealized holding loss, included in other comprehensive income</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.46%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="16%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>&#151;</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in" vAlign=bottom width="18%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.94%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Ending balance</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.96%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="14%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>12,100</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.5%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.92%; PADDING-TOP: 0in" vAlign=bottom width="16%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.94%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR></TBODY></TABLE> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>The Company has agreements in place with Morgan Stanley&nbsp;&amp; Co. (&#147;Morgan&#148;) and UBS AG (&#147;UBS&#148;) that permit the Company to require Morgan and UBS to purchase the Company&#146;s auction rate securities at par value plus accrued interest.&nbsp; As of March&nbsp;31, 2009, the Company has $11.7 million in auction rate securities.&nbsp; There was less than $0.1 million in declines in the market values of the Company&#146;s auction rate securities in the quarter ended March&nbsp;31, 2009.</FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD> <BODY> <P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note 5:&nbsp; Inventories:</FONT></B></P> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Inventories consisted of the following:</FONT></P> <P style="MARGIN: 0in 0in 0pt 45pt; TEXT-INDENT: -45pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <TABLE style="MARGIN-LEFT: 0.75in; WIDTH: 85.74%; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="85%" border=0> <TBODY> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="16%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman" size=1>Marc h 31, 2009</FONT></B></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="18%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman" size=1>December&nbsp;31, 2008</FONT></B></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Raw material</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.96%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="14%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>14,696</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.92%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="16%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>12,531</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0% bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Work in process</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.44%; PADDING-TOP: 0in" vAlign=bottom width="16%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>2,449</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in" vAlign=bottom width="18%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>2,577</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Finished goods</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="16%" bgColor=#cceeff colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>4,551</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="18%" bgColor=#cceeff colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>2,822</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0% bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Total</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.96%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="14%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>21,696</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.92%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="16%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>17,930</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR></TBODY></TABLE></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD> <BODY> <P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note 6:&nbsp; Property and Equipment:</FONT></B></P> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Property and equipment consisted of the following:</FONT></P> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <TABLE style="MARGIN-LEFT: 0.75in; WIDTH: 85.74%; BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="85%" border=0> <TBODY> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="16%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman" size=1>March&nbsp;31, 2009</FONT></B></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 1pt" face="Times New Roman" size=1></FONT></B>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="18%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 8pt" face="Times New Roman" size=1>December&nbsp;31, 2008</FONT></B></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Machinery and equipment</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.96%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="14%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>51,147</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.92%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="16%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>50,337</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0% bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Land, building and building improvements</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.44%; PADDING-TOP: 0in" vAlign=bottom width="16%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>48,547</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in" vAlign=bottom width="18%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>48,715</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Molds</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 16.44%; PADDING-TOP: 0in" vAlign=bottom width="16%" bgColor=#cceeff colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>18,300</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in" vAlign=bottom width="18%" bgColor=#cceeff colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>16,791</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0% bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Computer equipment and software</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.44%; PADDING-TOP: 0in" vAlign=bottom width="16%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>9,973</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in" vAlign=bottom width="18%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>9,890</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Furniture and fixtures</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 16.44%; PADDING-TOP: 0in" vAlign=bottom width="16%" bgColor=#cceeff colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>1,972</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in" vAlign=bottom width="18%" bgColor=#cceeff colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>1,983</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0% bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Construction in progress</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="16%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>2,917</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="18%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>3,479</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="16%" bgColor=#cceeff colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="18%" bgColor=#cceeff colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0% bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Total property and equipment, cost</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 16.44%; PADDING-TOP: 0in" vAlign=bottom width="16%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>132,856</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 18.42%; PADDING-TOP: 0in" vAlign=bottom width="18%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>131,195</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Accumulated depreciation</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="16%" bgColor=#cceeff colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>(64,069</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0.375pt; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>)</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 1pt solid" vAlign=bottom width="18%" bgColor=#cceeff colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>(61,298</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0.375pt; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0% bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>)</FONT></P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%"> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.44%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="16%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%"> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 18.42%; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" vAlign=bottom width="18%" colSpan=2> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0%> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR> <TR> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 59.3%; PADDING-TOP: 0in" vAlign=bottom width="59%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt 10pt; TEXT-INDENT: -10pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Net property and equipment</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 1.96%; PADDING-TOP: 0in" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 14.96%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="14%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>68,787</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 2.92%; PADDING-TOP: 0in" vAlign=bottom width="2%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 1.5%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="1%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>$</FONT></P></TD> <TD style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.7pt; BORDER-TOP: medium none; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; WIDTH: 16.92%; PADDING-TOP: 0in; BORDER-BOTTOM: windowtext 2.25pt double" vAlign=bottom width="16%" bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: right" align=right><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>69,897</FONT></P></TD> <TD style="PADDING-RIGHT: 0.7pt; PADDING-LEFT: 0.7pt; BACKGROUND: #cceeff; PADDING-BOTTOM: 0in; WIDTH: 0.96%; PADDING-TOP: 0in" vAlign=bottom width=0% bgColor=#cceeff> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 1pt" face="Times New Roman" size=2></FONT>&nbsp;</P></TD></TR></TBODY></TABLE></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD> <BODY> <P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note 8:</FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" size=2>&nbsp; </FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" size=2>Income Taxes:</FONT></B></P> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Income taxes were acc</FONT><FONT style="FONT-SIZE: 10pt" size=2>rued at an estimated annual effective tax rate of 36% in the first quarter of 2009 compared to 34% in the first quarter of 2008. The effective tax rate differs from that computed at the federal statutory rate of 35% principally because of the effect of foreign and state income taxes, tax credits, tax exempt income and deductions for domestic production activities.</FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD> <BODY> <P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note 9:&nbsp; Major Customer:</FONT></B></P> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>The Company had revenues equal to 10% or more of total revenues from one customer, Hospira,&nbsp;Inc. Such revenues were 71% and 66% of total revenue for the quarters ended March&nbsp;31, 2009 and 2008, respectively.&nbsp; As of March&nbsp;31, 2009 and December&nbsp;31, 2008, the Company had accounts receivable from Hospira of 62% and 66%, of consolidated accounts receivable, respectively.</FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-FAMILY: Times New Roman"> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align=left><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note 10: &nbsp;Commitments and Contingencies:</FONT></B></P> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align=left><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left" align=left><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>In an action filed July&nbsp;6, 2006 entitled <U>Medegen MMS,&nbsp;Inc. v. ICU Medical,&nbsp;Inc.</U> filed in the United States District Court for the Central District of California, Medegen alleged that ICU Medical infringed one of its patents by offering for sale and selling the CLC2000 and TEGO. Medegen sought monetary damages and injunctive relief. In March&nbsp;2007, Medegen withdrew its action as to the TEGO. On June&nbsp;21, 2007, the Court issued an order interpreting certain terms and phrases of Medegen&#146;s patent in a manner that we believe supported our position. On September&nbsp;14, 2007, the Court issued an order granting our summary judgment motion of non-infringement and On October&nbsp;19, 2007, entered judgment of non-infringement, dismissing Medegen&#146;s case with prejudice. On October&nbsp;19, 2007, the Court also dismissed, without prejudice, our counterclaims that the asserted patent is invalid and unenforceable due to inequitable conduct by Medegen before the United States Patent and Trademark Office. Medegen has appealed the Court&#146;s claim construction and summary judgment orders. By decision issued in November&nbsp;2008, the Federal Circuit reversed the order granting summary judgment and remanded the case to the District Court. The Company intends to defend itself against Medegen&#146;s claims in this action. The outcome of this action is uncertain, therefore no accrual has been recorded.</FONT></P> <P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P></DIV> <DIV> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left" align=left><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>The Company is from time to time involved in various other legal proceedings, most of which are routine litigation, in the normal course of business.&nbsp; In the opinion of management, the resolution of the other legal proceedings in which the Company is involved will not likely have a material adverse impact on the Company&#146;s financial position or results of operations.</FONT></P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left" align=left><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>In the normal course of business, the Company has agreed to indemnify officers and directors of the Company to the maximum extent permitted under Delaware law and to indemnify customers as to certain intellectual property matters related to sales of the Company&#146;s products.&nbsp; There is no maximum limit on the indemnification that may be required under these agreements.&nbsp; Although we can provide no assurances, the Company has never incurred, nor do we expect to incur, any liability for indemnification.&nbsp; Except for indemnification agreements, the Company does not have any &#147;off balance sheet arrangements&#148;.</FONT></P></DIV></BODY></HTML> 7873000 37595000 14777612 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD> <BODY> <P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note 2:</FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" size=2>&nbsp; </FONT></B><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" size=2>New Accounting Pronouncements:</FONT></B></P> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>In April&nbsp;2009, the Financial Accounting Standards Board (&#147;FASB&#148;) issued FSP SFAS 141(R)-1, &#147;Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies&#148;, to amend the provisions related to the initial recognition and measurement, subsequent measurement and disclosure of assets and liabilities arising from contingencies in a business combination under SFAS 141(R). Under the new guidance, assets acquired and liabilities assumed in a business combination that arise from contingencies should be recognized at fair value on the acquisition date if fair value can be determined during the measurement period. If fair value cannot be determined, companies should typically account for the acquired contingencies using existing guidance.&nbsp; The Company adopted FAS 141(R) and FSP SFAS 141(R)-1 on January 1, 2009.&nbsp; The adoption did not have a material effect on the Company&#146;s financial position or results of operations.</FONT></P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>In April&nbsp;2009, the FASB issued FSP SFAS 157-4, &#147;Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly&#148; which provides additional guidance for estimating fair value in accordance with FASB Statement No.&nbsp;157, &#147;Fair Value Measurements&#148;, when the volume and level of activity for the asset or liability have significantly decreased. This FSP also includes guidance on identifying circumstances that indicate a transaction is not orderly</FONT><FONT style="FONT-SIZE: 10pt" size=2>. </FONT><FONT style="FONT-SIZE: 10pt" size=2>This pronouncement is effective for periods ending after June&nbsp;15, 2009.&nbsp; The Company&#146;s management does not expect this pronouncement to have a material effect on the Company&#146;s financial position and results of operations.</FONT></P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>In April&nbsp;2009, the FASB issued FSP SFAS 115-2 and SFAS 124-2, &#147;Recognition and Presentation of Other-Than-Temporary Impairments&#148;, to amend the other-than-temporary impairment guidance in debt securities </FONT><FONT style="FONT-SIZE: 10pt" size=2>to be based on intent to sell instead of ability to hold the security</FONT><FONT style="FONT-SIZE: 10pt" size=2> and to improve the presentation and disclosure of other-than-temporary impairments on debt and equity securities in the financial statements.&nbsp; This pronouncement is effective for periods ending after June&nbsp;15, 2009.&nbsp; The Company&#146;s management does not expect this pronouncement to have a material effect on the Company&#146;s financial position and results of operations.</FONT></P></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD> <BODY> <P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note 7:&nbsp; Net Income Per Share:</FONT></B></P> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>Net income per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share is computed by dividing net income by the weighted average number of common shares outstanding plus dilutive securities. Dilutive securities are outstanding common stock options (excluding stock options with an exercise price in excess of the average market value for the period), less the number of shares that could have been purchased with the proceeds from the exercise of the options, using the treasury stock method, and were 133,463 and 624,129 for the quarters ended March&nbsp;31, 2009 and 2008, respectively. Options that are anti-dilutive because their exercise price exceeded the average market price of the common stock for the period approximated 1,135,000 and 1,397,000 for the quarters ended March&nbsp;31, 2009 and 2008, respectively.</FONT></P></BODY></HTML> No 279719052 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.6000.16788" name=GENERATOR></HEAD> <BODY> <P style="MARGIN: 0in 0in 0pt"><B><FONT style="FONT-WEIGHT: bold; FONT-SIZE: 10pt" face="Times New Roman" size=2>Note 3:&nbsp; Restricted Cash / Intangible Assets</FONT></B></P> <P style="MARGIN: 0in 0in 0pt"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2></FONT>&nbsp;</P> <P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT style="FONT-SIZE: 10pt" face="Times New Roman" size=2>In February&nbsp;2009, the Company acquired a small manufacturing and distribution company based in Germany for approximately $5.7 million, which was reflected as restricted cash of $6.0 million at December&nbsp;31, 2008.&nbsp; The Company recorded $6.1 million in intangible assets, which includes $3.8 million for customer contracts, $0.4 million for trademarks and $1.9 million of goodwill.&nbsp; Of the total amount of goodwill, $1.4&nbsp;million is expected to be deductible for tax purposes.&nbsp; The Company also recorded a deferred tax liability of $1.4 million as a result of this transaction.</FONT></P></BODY></HTML>