x |
Quarterly
report pursuant to section 13 or 15(d) of the Securities Exchange Act of
1934 for the quarterly period ended July 31, 2008
or
|
Transition
report pursuant to section 13 or 15(d) of the Securities Exchange Act of
1934 for the transition period from _________ to
_________.
|
Indiana
|
35-1150732
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer Identification Number)
|
|
incorporation
or organization)
|
||
One
Technology Way
|
||
Indianapolis,
Indiana
|
46268
|
|
(Address
of principal executive offices)
|
(Zip
code)
|
Item
1.
|
Financial
Statements
|
|
Condensed
Consolidated Statement of Operations ………………………………………..
Three and
nine months ended July 31, 2008 and 2007
|
3
|
|
Condensed
Consolidated Balance Sheet …………………………………………………..
As of July
31, 2008 and October 31, 2007
|
4
|
|
Condensed
Consolidated Statement of Cash Flows………………………………………..
Three and
nine months ended July 31, 2008 and 2007
|
5
|
|
Condensed
Consolidated Statement of Changes in Shareholders'
Equity…………………
Nine months
ended July 31, 2008 and 2007
|
6
|
|
Notes
to Condensed Consolidated Financial
Statements…………………………………..
|
7
|
|
Item
2.
|
Management's
Discussion and Analysis of Financial ……………………………………..
Condition
and Results of Operations
|
13
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk …………………………….
|
20
|
Item
4.
|
Controls
and Procedures …………………………………………………………………...
|
22
|
Item
1.
|
Legal
Proceedings…………………………………...…………………………………...
|
23
|
Item
1A.
|
Risk
Factors…………..……………………………...…………………………………...
|
23
|
Item
5.
|
Other
Information…..…………… ………………………………………………………
|
23
|
Item
6.
|
Exhibits…..………………………
………………………………………………………
|
24
|
Signatures
|
…………………………………………………………………………………………….
|
25
|
Item
1.
|
FINANCIAL
STATEMENTS
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
July
31
|
July
31
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Sales
and service fees
|
$ | 57,318 | $ | 48,555 | $ | 176,526 | $ | 137,927 | ||||||||
Cost
of sales and service
|
36,439 | 30,138 | 110,459 | 85,838 | ||||||||||||
Gross
profit
|
20,879 | 18,417 | 66,067 | 52,089 | ||||||||||||
Selling,
general and administrative expenses
|
11,829 | 10,228 | 35,881 | 28,883 | ||||||||||||
Operating
income
|
9,050 | 8,189 | 30,186 | 23,206 | ||||||||||||
Interest
expense
|
25 | 11 | 46 | 165 | ||||||||||||
Interest
income
|
154 | 172 | 436 | 561 | ||||||||||||
Investment
income
|
72 | 113 | 363 | 191 | ||||||||||||
Other
(income) expense, net
|
471 | (359 | ) | 1,311 | (867 | ) | ||||||||||
Income
before taxes
|
8,780 | 8,822 | 29,628 | 24,660 | ||||||||||||
Provision
for income taxes
|
2,954 | 3,659 | 10,530 | 9,421 | ||||||||||||
Net
income
|
$ | 5,826 | $ | 5,163 | $ | 19,098 | $ | 15,239 | ||||||||
Earnings
per common share
|
||||||||||||||||
Basic
|
$ | 0.91 | $ | 0.81 | $ | 2.98 | $ | 2.39 | ||||||||
Diluted
|
$ | 0.90 | $ | 0.80 | $ | 2.96 | $ | 2.37 | ||||||||
Weighted
average common shares outstanding
|
||||||||||||||||
Basic
|
6,414 | 6,379 | 6,414 | 6,379 | ||||||||||||
Diluted
|
6,439 | 6,440 | 6,445 | 6,435 |
July
31
|
October
31
|
|||||||
2008
|
2007
|
|||||||
ASSETS
|
||||||||
Current
assets:
|
||||||||
Cash and
cash
equivalents
|
$ | 31,048 | $ | 29,760 | ||||
Short-term
investments
|
1,925 | 10,000 | ||||||
Accounts
receivable,
net
|
29,505 | 25,645 | ||||||
Inventories,
net
|
74,489 | 61,121 | ||||||
Deferred
tax assets,
net
|
9,108 | 8,258 | ||||||
Other
|
7,827 | 4,481 | ||||||
153,902 | 139,265 | |||||||
Property
and equipment:
|
||||||||
Land
|
782 | 776 | ||||||
Building
|
7,135 | 7,135 | ||||||
Machinery
and
equipment
|
15,674 | 13,629 | ||||||
Leasehold
improvements
|
1,935 | 1,473 | ||||||
25,526 | 23,013 | |||||||
Less
accumulated depreciation and
amortization
|
(12,067 | ) | (11,617 | ) | ||||
13,459 | 11,396 | |||||||
Non-current
assets:
|
||||||||
Software
development costs, less accumulated amortization
|
5,475 | 5,960 | ||||||
Long-term
investments
|
4,774 | - | ||||||
Other
assets
|
7,280 | 7,160 | ||||||
$ | 184,890 | $ | 163,781 | |||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$ | 36,926 | $ | 35,486 | ||||
Accrued
expenses
|
26,182 | 27,729 | ||||||
63,108 | 63,215 | |||||||
Non-current
liabilities:
|
||||||||
Deferred
tax liability,
net
|
1,878 | 1,956 | ||||||
Deferred
credits and other
obligations
|
962 | 1,007 | ||||||
Total
liabilities
|
65,948 | 66,178 | ||||||
Shareholders’
equity:
|
||||||||
Preferred
stock: no par value per share; 1,000,000 shares
|
||||||||
authorized;
no shares
issued
|
-- | -- | ||||||
Common
stock: no par value; $.10 stated value per
share;
|
||||||||
13,250,000
shares authorized, and 6,420,851 and 6,392,220
|
||||||||
shares
issued and outstanding,
respectively
|
642 | 639 | ||||||
Additional
paid-in
capital
|
51,633 | 50,971 | ||||||
Retained
earnings
|
68,467 | 49,369 | ||||||
Accumulated
other comprehensive
loss
|
(1,800 | ) | (3,376 | ) | ||||
Total
shareholders’
equity
|
118,942 | 97,603 | ||||||
$ | 184,890 | $ | 163,781 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
July
31
|
July
31
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Cash
flows from operating activities:
|
||||||||||||||||
Net
income
|
$ | 5,826 | $ | 5,163 | $ | 19,098 | $ | 15,239 | ||||||||
Adjustments
to reconcile net income to
Net cash provided by (used for) operating
activities:
|
||||||||||||||||
Provision
for doubtful accounts
|
(22 | ) | (83 | ) | (163 | ) | 160 | |||||||||
Deferred
tax provision
|
(310 | ) | 1,190 | (956 | ) | 694 | ||||||||||
Equity
in (income) loss of affiliates
|
(40 | ) | (352 | ) | (11 | ) | (972 | ) | ||||||||
Depreciation
and amortization
|
777 | 589 | 2,190 | 1,376 | ||||||||||||
Stock-based
compensation
|
364 | 56 | 478 | 422 | ||||||||||||
Change in
assets and liabilities:
|
||||||||||||||||
(Increase) decrease in accounts
receivable
|
3,742 | (2,641 | ) | (2,541 | ) | (3,858 | ) | |||||||||
(Increase) decrease in
inventories
|
(6,143 | ) | (8,679 | ) | (10,290 | ) | (9,203 | ) | ||||||||
Increase (decrease) in accounts
payable
|
(826 | ) | 7,798 | (1,559 | ) | 8,934 | ||||||||||
Increase (decrease) in accrued
expenses
|
2,144 | 5,180 | (1,826 | ) | 5,677 | |||||||||||
Other
|
44 | (4,550 | ) | (3,847 | ) | (5,836 | ) | |||||||||
Net cash
provided by (used for) operating activities
|
5,556 | 3,671 | 573 | 12,633 | ||||||||||||
Cash
flows from investing activities:
|
||||||||||||||||
Proceeds
from sale of property and equipment
|
-- | -- | 12 | -- | ||||||||||||
Purchase of
property and equipment
|
(1,306 | ) | (508 | ) | (3,061 | ) | (1,100 | ) | ||||||||
Purchase
of investments
|
-- | (8,175 | ) | (9,100 | ) | (20,175 | ) | |||||||||
Sale
of investments
|
1,725 | -- | 12,075 | 4,000 | ||||||||||||
Software
development costs
|
(236 | ) | (148 | ) | (395 | ) | (1,198 | ) | ||||||||
Other
investments
|
(334 | ) | (163 | ) | (73 | ) | (323 | ) | ||||||||
Net cash
provided by (used for) investing activities
|
(151 | ) | (8,994 | ) | (542 | ) | (18,796 | ) | ||||||||
Cash
flows from financing activities:
|
||||||||||||||||
Repayment on
first mortgage
|
-- | -- | -- | (4,010 | ) | |||||||||||
Tax
benefit from exercise of stock options
|
-- | 31 | 36 | 299 | ||||||||||||
Proceeds
from exercise of common stock options
|
-- | -- | 151 | 119 | ||||||||||||
Net cash
provided by (used for) financing activities
|
-- | 31 | 187 | (3,592 | ) | |||||||||||
Effect
of exchange rate changes on cash
|
34 | (121 | ) | 1,070 | 953 | |||||||||||
Net increase
(decrease) in cash and
cash
equivalents
|
5,439 | (5,413 | ) | 1,288 | (8,802 | ) | ||||||||||
Cash
and cash equivalents
at beginning
of period
|
25,609 | 26,457 | 29,760 | 29,846 | ||||||||||||
Cash
and cash equivalents
at end of
period
|
$ | 31,048 | $ | 21,044 | $ | 31,048 | $ | 21,044 |
(Dollars
in thousands, except
Shares
Issued and Outstanding)
|
Common
Stock
|
Additional
|
Accumulated
Other
Comprehensive
|
|||||||||||||||||||||
Shares
Issued
&
Outstanding
|
Amount
|
Paid-In
Capital
|
Retained
Earnings
|
Income
(Loss)
|
Total
|
|||||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||||||
Balances,
October 31, 2006
|
6,346,520 | $ | 635 | $ | 50,011 | $ | 28,480 | $ | (3,751 | ) | $ | 75,375 | ||||||||||||
Net
income
|
-- | -- | -- | 15,239 | -- | 15,239 | ||||||||||||||||||
Translation
of foreign currency financial statements
|
-- | -- | -- | -- | 1,702 | 1,702 | ||||||||||||||||||
Unrealized
loss on derivative instruments, net of tax
|
-- | -- | -- | -- | (1,176 | ) | (1,176 | ) | ||||||||||||||||
Comprehensive
income
|
-- | -- | -- | -- | -- | 15,765 | ||||||||||||||||||
Exercise
of common stock options
|
43,200 | 4 | 115 | -- | -- | 119 | ||||||||||||||||||
Tax
benefit from exercise of stock options
|
-- | -- | 299 | -- | -- | 299 | ||||||||||||||||||
Stock-based
compensation expense
|
-- | -- | 422 | -- | -- | 422 | ||||||||||||||||||
Balances,
July 31, 2007
|
6,389,720 | $ | 639 | $ | 50,847 | $ | 43,719 | $ | (3,225 | ) | $ | 91,980 | ||||||||||||
Balances,
October 31, 2007
|
6,392,220 | $ | 639 | $ | 50,971 | $ | 49,369 | $ | (3,376 | ) | $ | 97,603 | ||||||||||||
Net
income
|
-- | -- | -- | 19,098 | -- | 19,098 | ||||||||||||||||||
Translation
of foreign currency financial statements
|
-- | -- | -- | -- | 2,261 | 2,261 | ||||||||||||||||||
Unrealized
loss on derivative instruments, net of tax
|
-- | -- | -- | -- | (483 | ) | (483 | ) | ||||||||||||||||
Unrealized
loss on investments, net of tax
|
-- | -- | -- | -- | (202 | ) | (202 | ) | ||||||||||||||||
Comprehensive
income
|
-- | -- | -- | -- | -- | 20,674 | ||||||||||||||||||
Exercise
of common stock options
|
28,631 | 3 | 148 | -- | -- | 151 | ||||||||||||||||||
Tax
benefit from exercise of stock options
|
-- | -- | 36 | -- | -- | 36 | ||||||||||||||||||
Stock-based
compensation expense
|
-- | -- | 478 | -- | -- | 478 | ||||||||||||||||||
Balances,
July 31, 2008
|
6,420,851 | $ | 642 | $ | 51,633 | $ | 68,467 | $ | (1,800 | ) | $ | 118,942 | ||||||||||||
1.
|
GENERAL
|
2.
|
INVESTMENTS
|
Consolidated
Balance Sheet
|
October
31, 2007
|
|||||||
(in
thousands)
|
As
previously reported
|
As
reclassified
|
||||||
Cash
and cash equivalents
|
$ | 39,760 | $ | 29,760 | ||||
Short-term
investments
|
$ | - | $ | 10,000 | ||||
Consolidated
Statement of Cash Flows
|
||||||||
(in
thousands)
|
As
reported at October 31, 2007
|
As
reclassified January 31, 2008
|
||||||
Cash
and cash equivalents, at end of period
|
$ | 39,760 | ||||||
Cash
and cash equivalents, at beginning of period
|
$ | 29,760 |
3.
|
HEDGING
|
4.
|
STOCK
OPTIONS
|
Stock
Options
|
Weighted
Average Exercise Price
|
|||||||
Outstanding
at October 31,
2007
|
83,000 | $ | 13.24 | |||||
Options
granted
|
10,000 | $ | 35.83 | |||||
Options
exercised
|
(28,631 | ) | $ | 5.26 | ||||
Options
cancelled
|
-- | -- | ||||||
Outstanding
at July 31,
2008
|
64,369 | $ | 20.29 | |||||
Outstanding
Stock Options Already Vested and Expected to Vest
|
Options
Outstanding and Exercisable
|
|||||||
Number
of outstanding
options
|
64,369 | 44,369 | ||||||
Weighted
average remaining contractual life
|
7.75 | 7.08 | ||||||
Weighted
average exercise price per share
|
$ | 20.29 | $ | 17.41 | ||||
Intrinsic
value
|
$ | 572,000 | $ | 522,000 |
5.
|
EARNINGS
PER SHARE
|
6.
|
ACCOUNTS
RECEIVABLE
|
7.
|
INVENTORIES
|
July
31, 2008
|
October
31, 2007
|
|||||||
Purchased
parts and sub-assemblies
|
$ | 14,963 | $ | 10,956 | ||||
Work-in-process
|
11,275 | 11,692 | ||||||
Finished
goods
|
48,251 | 38,473 | ||||||
$ | 74,489 | $ | 61,121 |
8.
|
SEGMENT
INFORMATION
|
9.
|
GUARANTEES
|
Nine
months ended
|
||||||||
July
31, 2008
|
July
31, 2007
|
|||||||
Balance,
beginning of period
|
$ | 2,449 | $ | 1,926 | ||||
Provision
for warranties during the period
|
2,447 | 1,836 | ||||||
Charges
to the accrual
|
(2,020 | ) | (1,593 | ) | ||||
Impact
of foreign currency translation
|
135 | 82 | ||||||
Balance,
end of period
|
$ | 3,010 | $ | 2,251 |
10.
|
COMPREHENSIVE
INCOME
|
Three
months ended
|
||||||||
July
31, 2008
|
July
31, 2007
|
|||||||
Net
income
|
$ | 5,826 | $ | 5,163 | ||||
Translation
of foreign currency financial statements
|
(23 | ) | 337 | |||||
Unrealized
gain (loss) on derivative instruments, net of tax
|
212 | 193 | ||||||
Comprehensive
income
|
$ | 6,015 | $ | 5,693 |
11.
|
DEBT
AGREEMENTS
|
12.
|
INCOME
TAXES
|
Net
Sales and Service Fees by Geographic Region
|
||||||||||||||||||||||||
July
31,
|
Increase
(Decrease)
|
|||||||||||||||||||||||
2008
|
2007
|
Amount
|
%
|
|||||||||||||||||||||
North
America
|
$ | 10,643 | 18.6 | % | $ | 13,086 | 26.9 | % | $ | (2,443 | ) | (18.7 | %) | |||||||||||
Europe
|
43,071 | 75.1 | % | 33,044 | 68.1 | % | 10,027 | 30.3 | % | |||||||||||||||
Asia
Pacific
|
3,604 | 6.3 | % | 2,425 | 5.0 | % | 1,179 | 48.6 | % | |||||||||||||||
Total
|
$ | 57,318 | 100.0 | % | $ | 48,555 | 100.0 | % | $ | 8,763 | 18.0 | % |
Net
Sales and Service Fees by Product Category
|
||||||||||||||||||||||||
July
31,
|
Increase
|
|||||||||||||||||||||||
2008
|
2007
|
Amount
|
%
|
|||||||||||||||||||||
Computerized
Machine Tools
|
$ | 50,991 | 89.0 | % | $ | 42,959 | 88.5 | % | $ | 8,032 | 18.7 | % | ||||||||||||
Service
Fees, Parts and Other
|
6,327 | 11.0 | % | 5,596 | 11.5 | % | 731 | 13.1 | % | |||||||||||||||
Total
|
$ | 57,318 | 100.0 | % | $ | 48,555 | 100.0 | % | $ | 8,763 | 18.0 | % |
Net
Sales and Service Fees by Geographic Region
|
||||||||||||||||||||||||
July
31,
|
Increase
(Decrease)
|
|||||||||||||||||||||||
2008
|
2007
|
Amount
|
%
|
|||||||||||||||||||||
North
America
|
$ | 35,427 | 20.1 | % | $ | 37,890 | 27.5 | % | $ | (2,463 | ) | (6.5 | %) | |||||||||||
Europe
|
130,776 | 74.1 | % | 93,233 | 67.6 | % | 37,543 | 40.3 | % | |||||||||||||||
Asia
Pacific
|
10,323 | 5.8 | % | 6,804 | 4.9 | % | 3,519 | 51.7 | % | |||||||||||||||
Total
|
$ | 176,526 | 100.0 | % | $ | 137,927 | 100.0 | % | $ | 38,599 | 28.0 | % |
Net
Sales and Service Fees by Product Category
|
||||||||||||||||||||||||
July
31,
|
Increase
|
|||||||||||||||||||||||
2008
|
2007
|
Amount
|
%
|
|||||||||||||||||||||
Computerized
Machine Tools
|
$ | 157,977 | 89.5 | % | $ | 121,952 | 88.4 | % | $ | 36,025 | 29.5 | % | ||||||||||||
Service
Fees, Parts and Other
|
18,549 | 10.5 | % | 15,975 | 11.6 | % | 2,574 | 16.1 | % | |||||||||||||||
Total
|
$ | 176,526 | 100.0 | % | $ | 137,927 | 100.0 | % | $ | 38,599 | 28.0 | % |
·
|
The
cyclical nature of the machine tool
industry;
|
·
|
The
risks of our international
operations;
|
·
|
The
limited number of our manufacturing
sources;
|
·
|
The
effects of changes in currency exchange
rates;
|
·
|
Our
dependence on new product
development;
|
·
|
The
need to make technological
advances;
|
·
|
Competition
with larger companies that have greater financial
resources;
|
·
|
Changes
in the prices of raw materials, especially steel and iron
products;
|
·
|
Possible
obsolescence of our technology;
|
·
|
Acquisitions
that could disrupt our operations and affect operating
results;
|
·
|
Impairment
of our goodwill or other assets;
|
·
|
The
need to protect our intellectual property
assets;
|
·
|
The
impact of the continuing downturn in the U.S.
economy;
|
·
|
The
impact of ongoing disruptions in the credit markets on our investment
securities; and
|
·
|
The
effect of the loss of key
personnel.
|
Interest
Rate Risk
|
|
Notional
Amount
|
Weighted
Avg.
|
Contract
Amount at Forward Rates in
U.S.
Dollars
|
|||||||||||||||
Forward
Contracts
|
in
Foreign Currency
|
Forward Rate
|
Contract Date
|
July
31,
2008
|
Maturity
Dates
|
||||||||||||
Sale
Contracts:
|
|||||||||||||||||
Euro
|
39,450,000 | 1.4841 | 58,547,745 | 61,016,505 |
August
2008 – July 2009
|
||||||||||||
Pound
Sterling
|
5,105,000 | 1.9676 | 10,044,598 | 10,002,257 |
August
2008 – July 2009
|
||||||||||||
Purchase
Contracts:
|
|||||||||||||||||
New
Taiwan Dollar
|
1,112,000,000 | 30.42 | * | 36,553,696 | 36,572,448 |
August
2008 – July 2009
|
Contract
Amount at Forward Rates in
U.S.
Dollars
|
|||||||||||||||||
Forward
Contracts
|
Notional Amount in
Foreign Currency
|
Weighted Avg.
Forward Rate
|
Contract Date
|
July
31, 2008
|
Maturity
Dates
|
||||||||||||
Sale
Contracts:
|
|||||||||||||||||
Euro
|
16,619,350 | 1.5546 | 25,836,441 | 25,794,307 |
August
2008 – February 2009
|
||||||||||||
Pound
Sterling
|
1,215,575 | 1.9649 | 2,388,483 | 2,404,907 |
August
2008 – September 2008
|
||||||||||||
Singapore
Dollar
|
2,444,567 | 1.3568 | 1,801,715 | 1,793,464 |
August
2008 – November 2008
|
||||||||||||
Purchase
Contracts:
|
|||||||||||||||||
New
Taiwan Dollar
|
330,608,000 | 30.37 | * | 10,884,967 | 10,784,153 |
August
2008 – September 2008
|
Notional
Amount
|
Weighted
Avg.
|
Contract
Amount at Forward Rates in
U.S.
Dollars
|
|||||||||||||||
Forward
Contracts
|
in
Foreign Currency
|
Forward Rate
|
Contract Date
|
July
31, 2008
|
Maturity
Date
|
||||||||||||
Sale
Contracts:
|
|||||||||||||||||
Euro
|
3,000,000 | 1.4837 | 4,451,100 | 4,650,756 |
November
2008
|
Item
1.
|
LEGAL
PROCEEDINGS
|
Item
6.
|
EXHIBITS
|
11
|
Computation
of per share earnings.
|
|
31.1
|
Certification
by the Chief Executive Officer, pursuant to Rule 13a-15(b) under the
Securities and Exchange Act of 1934, as amended.
|
|
31.2
|
Certification
by the Chief Financial Officer, pursuant to Rule 13a-15(b) under the
Securities and Exchange Act of 1934, as amended.
|
|
32.1
|
Certification
by the Chief Executive Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
|
32.2
|
Certification
by the Chief Financial Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
Exhibit
11
|
||||||||||||
Computation
of Per Share Earnings
|
||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||
July
31,
|
July
31,
|
|||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||
(in
thousands, except per share data)
|
||||||||||||
Basic
|
Diluted
|
Basic
|
Diluted
|
Basic
|
Diluted
|
Basic
|
Diluted
|
|||||
Net
income
|
$5,826
|
$5,826
|
$5,163
|
$5,163
|
$19,098
|
$19,098
|
$15,239
|
$15,239
|
||||
Weighted-average
shares
|
||||||||||||
outstanding
|
6,414
|
6,414
|
6,379
|
6,379
|
6,414
|
6,414
|
6,379
|
6,379
|
||||
Dilutive
effect of stock options
|
--
|
25
|
--
|
61
|
--
|
31
|
--
|
56
|
||||
6,414
|
6,439
|
6,379
|
6,440
|
6,414
|
6,445
|
6,379
|
6,435
|
|||||
Income
per common share
|
$ 0.91
|
$ 0.90
|
$ 0.81
|
$ 0.80
|
$ 2.98
|
$ 2.96
|
$ 2.39
|
$ 2.37
|
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
|
4.
|
The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures [as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)] and internal
control over financial reporting [as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)] for the registrant and
have:
|
(a)
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
(b)
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles.
|
(c)
|
Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
(d)
|
Disclosed
in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal quarter (the registrant's first fiscal quarter) that has materially
affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting;
and
|
|
5.
|
The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent
functions):
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information;
and
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
|
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
|
4.
|
The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures [as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)] and internal
control over financial reporting [as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)] for the registrant and
have:
|
a.
|
Designed
such disclosure controls and procedures, or caused such disclosure
controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
b.
|
Designed
such internal control over financial reporting, or caused such internal
control over financial reporting to be designed under our supervision to
provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting
principles.
|
c.
|
Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and presented in this report our conclusions about the effectiveness of
the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation;
and
|
d.
|
Disclosed
in this report any change in the registrant's internal control over
financial reporting that occurred during the registrant's most recent
fiscal quarter (the registrant's first fiscal quarter) that has materially
affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting;
and
|
|
5.
|
The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent
functions):
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information;
and
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control
over financial reporting.
|
(1)
|
The
Report fully complies with the requirements of section 13(a) or 15(d)
of the Securities Exchange Act of 1934;
and
|
(2)
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
Company.
|
(1)
|
The
Report fully complies with the requirements of section 13(a) or 15(d)
of the Securities Exchange Act of 1934;
and
|
(2)
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the
Company.
|