form10-q.htm

General and Administrative Expenses. Our general and administrative expenses for the three months ended June 30, 2010 were $8.9 million, a decrease of $1.6 million, or 14.9%, from $10.5 million in the corresponding prior year quarter. General and administrative expenses, as a percentage of net sales, decreased from 11.0% for the three months ended June 30, 2009 to 8.9% for the three months ended June 30, 2010. General and administrative expenses for the three months ended June 30, 2009 included $301,000 of transaction expenses in connection with our acquisition of the business and assets of Diaphorm Technologies, LLC and $1.25 million of expense to settle a class action lawsuit, which primarily caused the decrease when compared to the same period in the current year.

For the six months ended June 30, 2010, general and administrative expenses were $17.0 million, a decrease of $3.2 million, or 16.0%, from $20.2 million in the corresponding prior year period. General and administrative expenses, as a percentage of net sales, decreased from 10.4% for the six months ended June 30, 2009 to 8.1% in the six months ended June 30, 2010. Decreases in general and administrative expenses were generated by reductions in headcount, by a reduction in professional service fees and by a reduction in bonuses due to lower pre-tax income for the six months ended June 30, 2010 compared to the corresponding prior year period, as well as by $301,000 of transaction expenses in connection with our acquisition of the business and assets of Diaphorm Technologies, LLC, and $1.25 million of expense to settle a class action la wsuit which were incurred in six months ended June 30, 2009.

Restructuring – Plant Closure and Severance. Charges for plant closure and severance were not significant in the three and six months ended June 30, 2010. We recorded pre-tax restructuring and severance charges of $10.9 million for the three months ended June 30, 2009. Included in this amount are charges totaling $9.4 million due to the closing of the facility in Bazet, France owned by our ESK Ceramics France subsidiary and $1.5 million of severance charges in connection with headcount reductions in the United States and Germany during the three months ended June 30, 2009. Restructuring and severance charges for the six months ended June 30, 2009 totalled $11.8 million. Included in this amount are charges totaling $9.4 million due to the closing of the facility in Bazet, Franc e owned by our ESK Ceramics France subsidiary and $2.4 million of severance charges in connection with headcount reductions in the United States and Germany during six months ended June 30, 2009.

Goodwill Impairment. We are required to test annually whether the estimated fair value of our reporting units is sufficient to support the goodwill assigned to those reporting units; we perform the annual test in the fourth quarter. We are also required to test goodwill for impairment before the annual test if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, such as a significant adverse change in the business climate. At June 30, 2010, our market capitalization was less than our net book value. We consider this decline to be temporary and based on general economic conditions, therefore no interim test of goodwill is required. Based on the most recent annual impairment test performed in the f ourth quarter of 2009, none of our reporting units were at risk of failing step one of the annual impairment test.

We incurred a goodwill impairment charge of $3.8 million in the second quarter of 2009 for the goodwill associated with our Ceradyne Canada operating segment. We determined that the demand for our Boral® product line, which is a large part of the revenue of the Ceradyne Canada operating and reporting unit, continued to decline and that this condition required a goodwill impairment test before the annual test for this reporting unit. To complete the test for impairment, we utilized discounted cash flow methodology, which requires the forecasting of cash flows and requires the selection of discount rates. We used available information to make these fair value estimates, including discount rates, commensurate with the risks relevant to our business. Based on the goodwill impairment test performed on the Ceradyne Canada reporting unit, we recorded a $3.8 million impairment charge, which was recognized in the second quarter of 2009.

Acquisition Related Charge (Credit). We incurred an acquisition-related compensation charge of $9.8 million for the three months ended September 30, 2008 associated with a pre-closing commitment by SemEquip, Inc. for incentive compensation for several of its employees and advisors. This $9.8 million charge included $1.7 million of cash paid by Ceradyne at closing, and the balance represents the discounted present value of the portion of the estimated contingent consideration payable as incentive compensation to these employees and advisors over 15 years. We review the estimated liability each quarter and changes in estimated future sales and earnings of SemEquip will result in correlating changes in the estimated liability. For the three months ended June 30, 2010, the estimated lia bility was reduced by $31,000 with a corresponding credit to pre-tax earnings. For the six months ended June 30, 2010, the estimated liability was reduced by $119,000 with a corresponding credit to pre-tax earnings.

Research and Development Expenses. Our research and development expenses for the three months ended June 30, 2010 were $3.2 million, a decrease of $98,000, or 3.0%, from $3.3 million in the corresponding prior year quarter. Research and development expenses, as a percentage of net sales, decreased from 3.4% of net sales for the three months ended June 30, 2009 to 3.2% of net sales for the three months ended June 30, 2010. For the six months ended June 30, 2010, research and development expenses were $6.1 million, a decrease of $0.6 million, or 8.0%, from $6.7 million in the corresponding prior year period. Research and development expenses, as a percentage of net sales, decreased from 3.4% of net sales for the six months ended June 30, 2009 to 2.9% of net sales for the six mont hs ended June 30, 2010.

Other Income (Expense). Our net other income (expense) for the three months ended June 30, 2010 was $0.9 million of income, compared to $1.3 million of expense in the corresponding prior year quarter. During the three months ended June 30, 2009 we recognized a gain of $1.8 million from early extinguishment of debt associated with repurchases of convertible debt. There were no repurchases of convertible debt in the current quarter. Other significant reasons for the change were gains from foreign currency transactions of $1.7 million compared to a loss of $334,000 in the corresponding prior year quarter, a $0.9 million gain in the current quarter from our investments in auction rate securities compared to an other than temporary charge of $1.5 million in the prior year quarter, and a $255,000 reduction in interest expense due to the repurchases of convertible debt.

Our net other income (expense) for the six months ended June 30, 2010 was $1.1 million of expense, a decrease of $1.7 million, from $2.8 million of expense in the corresponding prior year period. During the six months ended June 30, 2009 we recognized a gain of $1.8 million from early extinguishment of debt associated with repurchases of convertible debt. There were no repurchases of convertible debt in the current year. Other significant reasons for the change were gains from foreign currency transactions of $2.3 million during the six months ended June 30, 2010 compared to a loss of $351,000 in the corresponding prior year period, a reduction of $0.8 million in interest expense as a result of the repurchases of convertible debt in 2009, and a decrease of $0.7 million in losses from auction rate securities.

Income before Provision for Income Taxes. Our income before provision for income taxes for the three months ended June 30, 2010 was $8.0 million, an increase of $21.7 million, from a loss before provision for income taxes of $13.7 million in the corresponding prior year quarter. For the six months ended June 30, 2010, income before provision for income taxes was $14.5 million, an increase of $27.0 million, from a loss before provision for income taxes of $12.5 million for the six months ended June 30, 2009.

The primary reason for the increase in the income before provision for income taxes for the three months ended June 30, 2010 was that we incurred $10.9 million in restructuring and severance expenses and a $3.8 million charge for goodwill impairment in the corresponding period of 2009 which we did not incur during the three months ended June 30, 2010. Other contributing factors were increases in the sales of ceramic crucibles to the solar industry, increase in sales of vehicle armor, an increase of sales of industrial and automotive products at our ESK Ceramics business segment, and a reduction in unabsorbed manufacturing overhead due to higher production volumes mainly at the ESK Ceramics and Thermo Materials business segments. The increase in the income before provision for income taxes for the six months ended June 30, 2010 are describ ed by the reasons above and that we incurred $11.8 million in restructuring and severance expenses and a $3.8 million charge for goodwill impairment in the corresponding period of 2009 which we did not incur during the six months ended June 30, 2010.

Our Advanced Ceramic Operations division incurred a loss before provision for income taxes for the three months ended June 30, 2010 of $0.6 million, a decrease of $5.5 million, from income before provision for income taxes of $4.8 million in the corresponding prior year quarter. For the six months ended June 30, 2010, income before provision for income taxes was $1.4 million, a decrease of $7.7 million, or 84.5%, from $9.1 million of income before provision for income taxes for the six months ended June 30, 2009. The decrease in income before provision for income taxes for both the three and six month periods ended June 30, 2010 was due to substantially lower sales of body armor, underabsorbed manufacturing overhead expense because of lower volumes of production of body armor and industrial products and higher scrap rates incurred in the production of body armor.

Our ESK Ceramics subsidiary’s income before provision for income taxes for the three months ended June 30, 2010 was $3.9 million, an increase of $19.6 million, from a loss before provision for income taxes of $15.7 million in the corresponding prior year quarter. For the three months ended June 30, 2010, the primary cause of the increase in income before provision for income taxes were that during the corresponding period of the previous year, we incurred a $10.0 million charge for the closure of our Bazet, France, manufacturing plant and severance expenses in Germany of $1.5 million due to a reduction in work force. For the six months ended June 30, 2010, this subsidiary earned income before provision for income taxes of $6.0 million, an increase of $26.1 million, from a loss before provision for income taxes of $20.1 million in the corresponding prior year period. For the six months ended June 30, 2010, the primary cause of the increase in income before provision for income taxes were that during the corresponding period of the previous year, we incurred a $10.0 million charge for the closure of our Bazet, France, manufacturing plant and severance expenses in Germany of $1.8 million due to a reduction in work force. For both periods, other causes of the increase in income before provision for income taxes were increased sales in this subsidiary’s industrial and automotive sectors due to an increase in demand as a result of recent economic growth compared to the corresponding periods last year, the closing of our costly production facility in Bazet, France during 2009, and a decrease in unabsorbed manufacturing overhead expenses caused by higher production volumes.

Our Semicon Associates division’s income before provision for income taxes for the three months ended June 30, 2010 was $448,000, an increase of $209,000, or 87.4%, from $239,000 of income before provision for income taxes in the corresponding prior year quarter. For the six months ended June 30, 2010, income before provision for income taxes was $0.7 million, an increase of $189,000, or 40.0%, from $473,000 of income before provision for income taxes in the corresponding prior year period. For both periods, a majority of the increase was due to the gain of $103,000 that we recognized when we sold our magnet product line.

Our Thermo Materials division’s income before provision for income taxes for the three months ended June 30, 2010 was $6.0 million, an increase of $2.4 million, or 68.2%, from $3.6 million of income before provision for income taxes in the corresponding prior year quarter. For the six months ended June 30, 2010, income before provision for income taxes was $10.3 million, an increase of $3.1 million, or 43.2%, from $7.2 million of income before provision for income taxes in the corresponding prior year period. The increases in income before provision for income taxes were due to higher shipments of crucibles when compared to the corresponding prior year periods, and an increase in sales of refractory and industrial products due to improved overall economic conditions whem compared to the corresponding prior year periods.

Our Ceradyne Canada subsidiary incurred a loss before provision for income taxes for the three months ended June 30, 2010 of $0.5 million, a decrease of $4.3 million, or 88.7%, from a loss before provision for income taxes of $4.8 million in the corresponding prior year quarter. For the six months ended June 30, 2010, this subsidiary recorded a loss before provision for income taxes of $1.4 million, a decrease of $4.2 million, or 74.5%, from a loss before provision for income taxes of $5.6 million in the corresponding prior year period. For the three and six months ended June 20, 2010, the decrease in the loss before provision for income taxes was due to a favorable comparison as a result of a charge of $3.8 million for goodwill impairment in the second quarter of 2009 that we did not incur in 2010.

Our Boron business segment’s loss before provision for income taxes for the three months ended June 30, 2010 was $1.0 million, a decrease of $0.9 million, or 48.8%, from a loss before provision for income taxes of $1.9 million in the corresponding prior year quarter. The improvement in the performance of this segment was attributable to an increase in income before provision for income taxes at our Ceradyne Boron Products subsidiary for the three months ended June 30, 2010 of $0.9 million due to a favorable sales mix as a result of sales to the semiconductor industry. For the six months ended June 30, 2010, the loss before provision for income taxes was $2.2 million, a decrease of $1.5 million, or 40.0%, from a loss before provision for income taxes of $3.7 million in the corresponding prior year period. The improvement in the perfo rmance of this segment was attributable to an increase of $0.6 million of income before provision for income taxes at our Ceradyne Boron Products subsidiary for the reasons stated above and a decrease of $0.8 million of loss before provision for income taxes at SemEquip, Inc. as a result of an expense reduction program and a reduction in work force.

Income Taxes. We had a combined federal and state effective tax rate of 18.2% for the three months ended June 30, 2010 resulting in a provision for income taxes of $1.5 million, an increase of $4.0 million, from a tax benefit of $2.5 million in the corresponding prior year quarter. Our provision for income taxes reflects a higher proportion of pre-tax income originating from our operations in China where we have a lower tax rate than in other countries. Our effective tax rate was 18.2% for the three months ended June 30, 2009. The effective tax rate for the six months ended June 30, 2010 was 20.5% resulting in a provision for income taxes of $3.0 million, an increase of $5.0 million, from a tax benefit of $2.0 million in the corresponding prior year period. Our effective tax rate was 16.2% for the six months ended June 30, 2009.

Liquidity and Capital Resources

We generally have met our operating and capital requirements with cash flow from operating activities and borrowings under our credit facility.

The following table presents selected financial information and statistics as of June 30, 2010 and December 31, 2009 and for the six months ended June 30, 2010 and 2009 (in thousands):

	June 30, 2010		December 31, 2009
Cash and cash equivalents	$	58,916	$	122,154
Short term investments		212,294		117,666
Accounts receivable, net		42,248		53,269
Inventories, net		80,070		100,976
Working capital		413,090		406,207

	For the Six Months Ended
	June 30, 2010		June 30, 2009
Operating cash flow	$	49,888	$	23,737

During the six months ended June 30, 2010, we generated $49.9 million of cash from operations compared to $23.7 million for the six months ended June 30, 2009. The $49.9 million of cash flow from operations during 2010 is primarily comprised of net income totaling $11.6 million, with $23.6 million of non cash charges included therein, and a decrease in inventories of $16.3 million as a result of a planned reduction program and improvements in our supply chain. Investing activities consumed $106.5 million of cash during the six months ended June 30, 2010. We invested $95.4 million for the purchase of marketable securities as we extended the maturities of our investments in an attempt to increase our return. We invested $19.2 million to expand manufacturing capacity in selected product lines. These expenditures for investing activities were partially offset by an increase of $3.1 million due to the release of the restrictions on certain cash. During the six months ended June 30, 2010, we repurchased and retired 159,000 shares of our common stock at an aggregate cost of $3.4 million under a stock repurchase program authorized in 2008 by our Board of Directors. As a result, our net cash at June 30, 2010 decreased by $63.2 million from our net cash at December 31, 2009, as compared to a $77.7 million decrease during the six months ended June 30, 2009.

During December 2005, we issued $121.0 million of 2.875% senior subordinated convertible notes (“Notes”) due December 15, 2035. We repurchased $27.9 million of the Notes during 2009 which reduced the outstanding principal amount to $93.1 million. Since the Notes are convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement), we separately account for the liability and equity components of the Notes in a manner that reflects nonconvertible debt borrowing rate as interest cost is recognized.

As of June 30, 2010 and December 31, 2009, long-term debt and the equity component (recorded in additional paid in capital, net of income tax benefit), determined in accordance with the accounting guidance for convertible debt, comprised the following (in thousands):

	June 30, 2010			December 31, 2009
Long-term debt
Principal amount	$	93,100		$	93,100
Unamortized discount		(9,267	)		(10,937	)
Net carrying amount	$	83,833		$	82,163
Equity component, net of income tax benefit	$	16,399		$	16,399

The discount on the liability component of long-term debt is being amortized using the effective interest method based on an annual effective rate of 7.5%, which represented the market interest rate for similar debt without a conversion option on the issuance date, through December 2012, which coincides with the first date that holders of the Notes can exercise their put option as discussed below.

Interest expense on the Notes for the three and six months ended June 30, 2010 and 2009 included the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2010		2009		2010		2009
Contractual interest coupon	$	669	$	837	$	1,330	$	1,697
Non-cash amortization of discount on the liability component		842		980		1,670		1,980
Non-cash amortization of debt issuance costs		90		108		179		219
	$	1,601	$	1,925	$	3,179	$	3,896

Interest on the Notes is payable on December 15 and June 15 of each year, commencing on June 15, 2006. The Notes are convertible into 17.1032 shares of Ceradyne’s common stock for each $1,000 principal amount of the Notes (which represents a conversion price of approximately $58.47 per share), subject to adjustment. The Notes are convertible only under certain circumstances, including if the price of our common stock reaches specified thresholds, if the Notes are called for redemption, if specified corporate transactions or fundamental changes occur, or during the 10 trading days prior to maturity of the Notes. We may redeem the Notes at any time after December 20, 2010, for a price equal to 100% of the principal amount plus accrued and unpaid interest, including contingent interest (as described below), if an y, up to but excluding the redemption date. As of June 30, 2010, the principal amount of the Notes exceeded the hypothetical if-converted value as the conversion price was higher than the average market price of our common stock.

With respect to each $1,000 principal amount of the Notes surrendered for conversion, we will deliver the conversion value to holders as follows: (1) an amount in cash equal to the lesser of (a) the aggregate conversion value of the Notes to be converted and (b) $1,000, and (2) if the aggregate conversion value of the Notes to be converted is greater than $1,000, an amount in shares or cash equal to such aggregate conversion value in excess of $1,000.

The Notes contain put options, which may require us to repurchase in cash all or a portion of the Notes on December 15, 2012, December 15, 2015, December 15, 2020, December 15, 2025, and December 15, 2030 at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased plus accrued and unpaid interest, including contingent interest (as described below), if any, up to but excluding the repurchase date.

We are obligated to pay contingent interest to the holders of the Notes during any six-month period from June 15 to December 14 and from December 15 to June 14, commencing with the six-month period beginning December 20, 2010 and ending on June 14, 2011, if the average trading price of the note for the five trading day period ending on the third trading day immediately preceding the first day of the relevant contingent interest period equals $1,200 (120% of the principal amount of a note) or more. The amount of contingent interest payable per note for any relevant contingent interest period shall equal 0.25% per annum of the average trading price of a note for the five trading day period ending on the third trading day immediately preceding the first day of the relevant contingent interest period. This c ontingent interest payment feature represents an embedded derivative. However, based on the de minimus value associated with this feature, no value has been assigned at issuance or at June 30, 2010.

On or prior to the maturity date of the Notes, upon the occurrence of a fundamental change, under certain circumstances, we will provide for a make whole amount by increasing, for the time period described herein, the conversion rate by a number of additional shares for any conversion of the Notes in connection with such fundamental change transactions. The amount of additional shares will be determined based on the price paid per share of Ceradyne’s common stock in the transaction constituting a fundamental change and the effective date of such transaction. This make whole premium feature represents an embedded derivative. Since this feature has no measurable impact on the fair value of the Notes and no separate trading market exists for this derivative, the value of the embedded derivative was determined to be de minimus. Accordin gly, no value has been assigned at issuance or at June 30, 2010.

The Company utilizes a convertible bond pricing model and a probability weighted valuation model, as applicable, to determine the fair values of the embedded derivatives noted above.

In December 2005, we established an unsecured $10.0 million line of credit. As of June 30, 2010, there were no outstanding amounts on the line of credit. However, the available line of credit at June 30, 2010 has been reduced by outstanding letters of credit in the aggregate amount of $5.0 million. The interest rate on the credit line was 1.35% as of June 30, 2010, which is based on the LIBOR rate for a period of one month, plus a margin of 1.0 percent.

Pursuant to the bank line of credit, we are subject to certain covenants, which include, among other things, the maintenance of specified minimum amounts of liquidity and profitability and annual net income. At June 30, 2010, we were in compliance with these covenants.

Our cash, cash equivalents, and short-term investments totaled $271.2 million at June 30, 2010, compared to $243.0 million at December 31, 2009. At June 30, 2010, we had working capital of $413.1 million, compared to $406.2 million at December 31, 2009. Our cash position includes amounts denominated in foreign currencies. The repatriation of cash balances from our ESK Ceramics subsidiary does not result in additional tax costs. We believe that our current cash and cash equivalents on hand and cash available from the sale of short-term investments and cash we expect to generate from operations will be sufficient to finance our anticipated capital and operating requirements for at least the next 12 months. Our anticipated capital requirements primarily relate to the expansion of our manufacturing facilities in China. The total exp ected capital expenditures for the new facility in China is approximately $34.0 million. The cumulative amount spent as of June 30, 2010 was $11.8 million, of which $7.1 million was spent during the six months ended June 30, 2010. We anticipate spending an additional $19.7 million during the remainder of fiscal year 2010 and $2.5 million in fiscal year 2011 to complete this capital expenditure. Funding for the new facility in China is being provided by cash flow generated from sales of ceramic crucibles in China, and any remaining funding requirement will be supported by available cash in the U.S. We also may utilize cash, and, to the extent necessary, borrowings from time to time to acquire other businesses, technologies or product lines that complement our current products, enhance our market coverage, technical capabilities or production capacity, or offer growth opportunities. From time to time, we may utilize cash to repurchase our common stock or our convertible debt.

Our material contractual obligations and commitments as of June 30, 2010 include a $1.2 million reserve for unrecognized tax benefits (included applicable accrued interest). The reserve is classified as long term liabilities on our Consolidated Balance Sheet as of June 30, 2010.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risks related to fluctuations in interest rates on our debt. We routinely monitor our risks associated with fluctuations in currency exchange rates and interest rates. We address these risks through controlled risk management that may, in the future, include the use of derivative financial instruments to economically hedge or reduce these exposures. We do not enter into foreign exchange contracts for speculative or trading purposes. Currently, we do not utilize interest rate swaps. Our investments in marketable securities consist primarily of high-grade corporate and government securities with maturities of less than two years. Investments purchased with an original maturity of three months or less are considered cash equivalents.

Our long term investments at June 30, 2010 included $15.7 million of auction rate securities. Cumulatively to date, the Company has incurred $9.3 million in pre-tax losses from its investments in auction rate securities, realized losses of $4.9 million from the sale of auction rate securites and pre-tax temporary impairment charges against other comprehensive income of $2.3 million. The Company’s investments in auction rate securities represent interests in insurance securitizations collateralized by pools of residential and commercial mortgages, asset backed securities and other structured credits relating to the credit risk of various bond guarantors that mature at various dates from June 2021 through July 2052. These auction rate securities were intended to provide liquidity via an auction process which is scheduled every 28 days, that resets the applicable interest rate, allowing investors to either roll over their holdings or gain immediate liquidity by selling such interests at par. Interest rates are capped at a floating rate of one month LIBOR plus additional spread ranging from 1.25% to 4.00% depending on prevailing rating. During the second half of the year 2007, through 2008, 2009 and through June 30, 2010, the auctions for these securities failed. As a result of current negative conditions in the global credit markets, auctions for the Company’s investment in these securities failed to settle on their respective settlement dates. Consequently, the investments are not currently liquid through the normal auction process and may be liquidated if a buyer is found outside the auction process. Although the auctions have failed, the Company continues to receive underlying cash flows in the form of interest income from the investments in auction rate securities. As of June 30, 2010, the fair value of the CompanyR 17;s investments in auction rate securities was below cost by approximately $11.6 million. The fair value of the auction rate securities has been below cost for more than one year.

Beginning in the third quarter of 2008 and at June 30, 2010, the Company determined that the market for its investments in auction rate securities and for similar securities continued to be inactive since there were few observable or recent transactions for these securities or similar securities. The Company’s investments in auction rate securities continued to be classified within Level 3 of the fair value hierarchy because the Company determined that significant adjustments using unobservable inputs were required to determine fair value as of June 30, 2010 and December 31, 2009.

An auction rate security is a type of structured financial instrument where its fair value can be estimated based on a valuation technique that includes the present value of future cash flows (principal and interest payments), review of the underlying collateral and considers relevant probability weighted and risk adjusted observable inputs and minimizes the use of unobservable inputs. Probability weighted inputs included the following:

●	Probability of earning maximum rate until maturity
●	Probability of passing auction at some point in the future
●	Probability of default at some point in the future (with appropriate loss severity assumptions)

The Company determined that the appropriate risk-free discount rate (before risk adjustments) used to discount the contractual cash flows of its auction rate securities ranged from 0.2% to 4.1%, based on the term structure of the auction rate security. Liquidity risk premiums are used to adjust the risk-free discount rate for each auction rate security to reflect uncertainty and observed volatility of the current market environment. This risk of nonperformance has been captured within the probability of default and loss severity assumptions noted above. The risk-adjusted discount rate, which incorporates liquidity risk, appropriately reflects the Company’s estimate of the assumptions that market participants would use (including probability weighted inputs noted above) to estimate the selling price of the asset at the measurement date.

In determining whether the decline in value of the ARS investments was other-than-temporary, the Company considered several factors including, but not limited to, the following: (1) the reasons for the decline in value (credit event, interest related or market fluctuations); (2) the Company’s ability and intent to hold the investments for a sufficient period of time to allow for recovery of value; (3) whether the decline is substantial; and (4) the historical and anticipated duration of the events causing the decline in value. The evaluation for other-than-temporary impairments is a quantitative and qualitative process, which is subject to various risks and uncertainties. The risks and uncertainties include changes in the credit quality of the securities, changes in liquidity as a result of normal market mechanis ms or issuer calls of the securities, and the effects of changes in interest rates.

We enter into foreign exchange forward contracts to reduce earnings and cash flow volatility associated with foreign exchange rate changes to allow our management team to focus its attention on its core business operations. Accordingly, we enter into contracts which change in value as foreign exchange rates change to economically offset the effect of changes in value of foreign currency assets and liabilities, commitments and anticipated foreign currency denominated sales and operating expenses. We enter into foreign exchange forward contracts in amounts between minimum and maximum anticipated foreign exchange exposures, generally for periods not to exceed one year. These derivative instruments are not designated as accounting hedges. We did not have any outstanding foreign exchange forward contracts at June 30, 2010.

Given the inherent limitations of forecasting and the anticipatory nature of the exposures intended to be hedged, there can be no assurance that such programs will offset more than a portion of the adverse financial impact resulting from unfavorable movements in either interest or foreign exchange rates. In addition, the timing of the accounting for recognition of gains and losses related to mark-to-market instruments for any given period may not coincide with the timing of gains and losses related to the underlying economic exposures and, therefore, may adversely affect our operating results and financial position and cash flows.

We measure the financial statements of our foreign subsidiaries using the local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the exchange rate on the balance sheet date. Revenues, costs and expenses are translated at the rates of exchange prevailing during the year. Translation adjustments resulting from this process are included in stockholders’ equity. Gains and losses from foreign currency transactions are included in other income, miscellaneous.

Our debt is comprised of $93.1 million of a convertible note with a fixed coupon rate of 2.875% (“Notes”). The fair value of long-term debt was $89.8 million and is based on quoted market prices at June 30, 2010.

Approximately 47.3% of our revenues for the six months ended June 30, 2010 were derived from operations outside the United States. Overall, we are a net recipient of currencies other than the U.S. dollar and, as such, we benefit from a weaker dollar and are adversely affected by a stronger dollar relative to major currencies worldwide. Accordingly, changes in exchange rates, and in particular a strengthening of the U.S. dollar, may negatively affect net sales, gross profit, and net income from our subsidiary, ESK Ceramics, as expressed in U.S. dollars. This would also negatively impact our consolidated reported results.

Item 4.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2010 (the end of the period covered by this report). Based on this evaluation, our principal executive officer and principal financial officer concluded that our current disclosure controls and procedures (as defined in Rules 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934) are effective.

Changes in Internal Control over Financial Reporting

Our management evaluated our internal control over financial reporting and there have been no changes during the fiscal quarter ended June 30, 2010 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II.

OTHER INFORMATION

Item 1.

Legal Proceedings

During the quarter ended March 31, 2010, Ceradyne reached an agreement in principle to settle a claim for $1.2 million pertaining to ballistic tests of armored wing assemblies subject to the negotiation and execution of a mutually acceptable settlement agreement and release. Ceradyne previously established a reserve of $1.0 million for this matter during the three months ended September 30, 2009 and increased it by $200,000, with a corresponding charge to general and administrative expenses, during the three months ended March 31, 2010. The settlement agreement was finalized and signed, and the Company funded this obligation during the quarter ended June 30, 2010.

Item 1A. Risk Factors

There have been no significant changes to the risk factors disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table sets forth information regarding shares of our common stock that we repurchased during the three months ended June 30, 2010.

Issuer Purchases of Equity Securities

Period	(a) Total Number of Shares Purchased		(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
April1 to April 30, 2010		-		-		2,145,237	$	45,541,877
May 1 to May 31, 2010		-		-		2,145,237	$	45,541,877
June 1 to June 30, 2010		159,000	$	21.25		2,304,237	$	42,162,388
Total		159,000	$	21.25		2,304,237	$	42,162,388

(1)

On March 4, 2008, we announced that our board of directors had authorized the repurchase and retirement of up to $100 million of our common stock in open market transactions, including block purchases, or in privately negotiated transactions. We did not set a time limit for completion of this repurchase program, and we may suspend or terminate it at any time.

Item 3.

Defaults Upon Senior Securities

Not applicable.

Item 4.

Not applicable.

Item 5.

Other Information

Item 6.

Exhibits

(a)

Exhibits:

31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Schema Document
101.CAL	XBRL Taxonomy Calculation Linkbase Document
101.LAB	XBRL Taxonomy Label Linkbase Document
101.PRE	XBRL Taxonomy Presentation Linkbase Document

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CERADYNE, INC.

Date: July 27, 2010	By:	/s/ JERROLD J. PELLIZZON
		Jerrold J. Pellizzon
		Vice President Chief Financial Officer (Principal Financial and Accounting Officer)

Index to Exhibits

Exhibit		Description

31.1		Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2		Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS		XBRL Instance Document

101.SCH		XBRL Taxonomy Schema Document

101.CAL		XBRL Taxonomy Calculation Linkbase Document

101.LAB		XBRL Taxonomy Label Linkbase Document

101.PRE		XBRL Taxonomy Presentation Linkbase Document

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EXHIBIT 31.1

Section 302 Certification of Principal Executive Officer

I, Joel P. Moskowitz certify that:

1. I have reviewed this quarterly report on Form 10-Q of Ceradyne, Inc.;

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 we have:

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;

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;

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

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 fourth fiscal quarter in the case of an annual report) 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):

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

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.

Date:	July 27, 2010	By:	/s/ JOEL P. MOSKOWITZ
			Joel P. Moskowitz
			Chief Executive Officer

EX-31.2 4 ex31-2.htm SECTION 302 CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER ex31-2.htm

EXHIBIT 31.2

Section 302 Certification of Principal Financial Officer

I, Jerrold J. Pellizzon certify that:

1. I have reviewed this quarterly report on Form 10-Q of Ceradyne, Inc.;

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 we have:

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):

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.


Date:	July 27, 2010	By:	/s/ JERROLD J. PELLIZZON
			Jerrold J. Pellizzon
			Chief Financial Officer

EX-32.1 5 ex32-1.htm SECTION 906 CERTIFICATION OF CEO ex32-1.htm

EXHIBIT 32.1

Section 906 Certification of Chief Executive Officer

I, Joel P. Moskowitz certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1)

the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 780(d)); and

(2)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date:	July 27, 2010	By:	/s/ JOEL P. MOSKOWITZ
			Joel P. Moskowitz
			Chief Executive Officer

EX-32.2 6 ex32-2.htm SECTION 906 CERTIFICATION OF CFO ex32-2.htm

EXHIBIT 32.2

Section 906 Certification of Chief Financial Officer

I, Jerrold J. Pellizzon certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

(1)

(2)

the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date:	July 27, 2010	By:	/s/ JERROLD J. PELLIZZON
			Jerrold J. Pellizzon
			Chief Financial Officer

EX-101.INS 7 crdn-20100630.xml XBRL INSTANCE DOCUMENT 0000018937 2009-06-30 0000018937 2008-12-31 0000018937 2009-01-01 2009-06-30 0000018937 2009-04-01 2009-06-30 0000018937 2009-01-01 2009-12-31 0000018937 2009-12-31 0000018937 2010-06-30 0000018937 2010-01-01 2010-06-30 0000018937 2010-03-31 2010-06-30 0000018937 2010-07-22 iso4217:USD xbrli:shares iso4217:USD xbrli:shares Q2 No

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CERADYNE INC --12-31

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<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div><table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%"><tr valign="top"><td style="TEXT-ALIGN: left; WIDTH: 27pt"><div style="TEXT-ALIGN: left">4.</div></td><td><div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">Composition of Certain Financial Statement Captions</div></td></tr></table></div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGH T: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The Company held certain cash balances as of December 31, 2009 that were restricted as to use. The restricted cash was used as collateral for the Company’s partially self insured workers compensation policy.  There are no restricted cash balances as of June 30, 2010.</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Inventories are valued at the lower of cost (first in, first out) or market. Inventory costs include the cost of material, labor and manufacturing overhead. The following is a summary of the inventory components as of June 30, 2010 and December 31, 2009 (in thousands):</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"> </div><div align="center"><table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="90%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" width="68%" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="14%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">June 30, 2010</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="14%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">December 31, 2009</div></td><td sty le="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="68%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Raw materials</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">6,588</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">12,219</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td valign="bottom" width="68%" align ="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Work-in-process</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">42,335</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"><f ont style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">46,334</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 2px" valign="bottom" width="68%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Finished goods</div></td>< td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="13%">31,147</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td>& lt;td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="13%">42,423</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 4px" valign="bottom" width="68%">  </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left">&# 160;</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="13%">80,070</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="13%">100,976</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr></table></div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Property, plant and equipment are recorded at cost and consist of the following (in thousands):</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="le ft"> </div><div align="center"><table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="90%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" width="68%" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="14%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">June 30, 2010</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="14%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">December 31, 2009</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr ><tr bgcolor="#cceeff"><td valign="bottom" width="68%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Land</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">17,877</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td>< ;td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">19,320</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td valign="bottom" width="68%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Buildings and improvements&l t;/div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">91,727</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">100,861</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="68%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Machinery and equipment</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">202,736</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">214,552</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td valign="bottom" width="68%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Leasehold improvements</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">9,497</td>< ;td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">9,473</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="68%" align="left"><div style="TEXT-INDE NT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Office equipment</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">28,684</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">29,807</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 2px" valign="bottom" width="68%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Construction in progress</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="13%">20,871</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM : black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="13%">6,083</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="68%"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width= "1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%"> </t d><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td valign="bottom" width="68%">  </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">371,392</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="13%">380,096</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 2px" valign="bottom" width="68%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="l eft">Less accumulated depreciation and amortization</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="13%">(145,799</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap">)</td><td style="PADDING-BOTT OM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="13%">(140,774</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap">)</td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 4px" valign="bottom" width="68%" align="left">  &l t;/td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="13%">225,593</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </ td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="13%">239,322</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr></table></div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The components of intangible assets ar e as follows (in thousands):</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div><div align="center"><table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="90%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" width="28%">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="34%" colspan="10"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">June 30, 2010</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="34%" colspan="10"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">December 31, 2009</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" width="28%" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 4.3pt" align="center">Gross</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 4.3pt" align="center">Amount</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 4.3pt" align="center">Accumulated</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 4.3pt" align="center">Amortization</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 4.3pt" align="center">Net</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 4.3pt" align="center">Amount</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 4.3pt" align="center">Gross</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 4.3pt" align="center">Amount</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 4.3pt" align="center">Accumulated</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 4.3pt" align="center">Amortization</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 4.3pt" align="center">Net</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 4.3pt" align="center">Amount</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr><td valign="bottom" width="28%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Amortizing Intangible Assets</div></td><td valign="bottom" width="1%"> </td><td valign="bottom" width="10%" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="10%" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="10%" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap">  </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="10%" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="10%" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="no wrap"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="10%" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="28%" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Backlog</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,779</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign=" bottom" width="9%">1,779</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">-</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> &l t;/td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,864</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,864</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">-</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td valign="bottom" width="28%" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Developed technology</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">49,951</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">4,835</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" w idth="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">45,116</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">50,752</td> <td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">4,378</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">46,374</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="28%" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Tradename</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,110</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="right"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9 %">508</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">602</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td&g t;<td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,110</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">445</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">665</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td valign="bottom" width="28%" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Customer relationships</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">47,604</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">9,866</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: l eft" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">37,738</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">47,604&l t;/font></td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">7,671</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">39,933</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="28%" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Non-compete agreement</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">500</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">500</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">-</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap">&am p;#160;</td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">500</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">500</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">-</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="now rap"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 2px" valign="bottom" width="28%" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">    Non-amortizing tradename</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%" >2,076</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">- </td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">2,076</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width=" 1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">2,437</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="right"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN : left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">- </td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px sol id; TEXT-ALIGN: right" valign="bottom" width="9%">2,437</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 4px" valign="bottom" width="28%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 63pt; MARGIN-RIGHT: 0pt" align="left">Total</div></td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"><f ont style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">103,020</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="right"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"> ;17,488</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">85,532</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap ="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">104,267</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align=" left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">14,858</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="b ottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">89,409</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr></table></div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 36pt; MARGIN-RIGHT: 0pt" align="left"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The estimated useful lives for intangible assets are:</div><div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div><div align="center"><table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="60%"><tr><td style="BORDER-BOTTOM: black 2px solid" valign="top" width="48%" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Identified Intangible Asset</div></td><td style="PADDING-BOTTOM: 2px" valign="top" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="top" width="48%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN - -RIGHT: 0pt" align="center">Estimated Useful Life in Years or Months</div></td></tr><tr bgcolor="#cceeff"><td valign="top" width="48%" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Developed technology</div></td><td valign="top" width="1%"> </td><td valign="top" width="48%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">10 years – 12.5 years</div></td& gt;</tr><tr bgcolor="white"><td valign="top" width="48%" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Tradename</div></td><td valign="top" width="1%"> </td><td valign="top" width="48%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">10 years</div></td></tr><tr bgcolor="#cceeff"><td valign="top" width="48%" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Customer relatio nships</div></td><td valign="top" width="1%"> </td><td valign="top" width="48%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">10 years – 12.5 years</div></td></tr><tr bgcolor="white"><td valign="top" width="48%" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Backlog</div></td><td valign="top" width="1%"> </td><td valign="top" width="48%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">1 month – 3 months</div></td></tr><tr bgcolor="#cceeff"><td valign="top" width="48%" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Non-compete agreement</div></td><td valign="top" width="1%"> </td><td valign="top" width="48%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">15 months</div></td></tr></table></div><div style="TEXT-INDENT: 0p t; DISPLAY: block"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Amortization of definite-lived intangible assets will be approximately (in thousands): $5,825 in fiscal year 2010, $7,183 in fiscal year 2011, $8,188 in fiscal year 2012, $9,729 in 2013 and $11,987 in fiscal year 2014.</div><div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The roll forward of the goodwill balance by segment during the six months ended June 30, 2010 is as follows (in thousands):</div><div style ="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div><div align="center"><table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="90%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" width="24%" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">ACO</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">Semicon</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">Thermo</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td styl e="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">ESK</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">Canada</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">Boron</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">Total</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="24%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align=" left">Balance at December 31, 2009</div></td><td valign="bottom" width="1%"> </td><td valign="bottom" width="8%" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="8%" colspan="2"> </td><td style="TEXT-ALIG N: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="8%" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="8%" colspan="2"> </td><td style="TE XT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="8%" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="8%" colspan="2"> </td><td st yle="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="8%" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td valign="bottom" width="24%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Goodwill</div></td>&l t;td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">4,708</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">603</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">10,331</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">9,987</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">3,832</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">18,251</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">47,712</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 2px" valign="bottom" width="24%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block ; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Accumulated Impairment Losses</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </ td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td& gt;<td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </fon t></td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">(3,8 32</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap">) </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">(3,832</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap">)</td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 2px" valign="bottom" width="24%">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">4,708</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">603</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">10,331</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">9,987</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"><f ont style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">18,251</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left">< ;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">43,880</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 2px" valign="bottom" width="24%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Translation</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">(1,459</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap">)</td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">(1,459</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap">)</td></tr><tr bgcolor="white"><td valign="bottom" width="24%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Balance at June 30, 2010</div></td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap "> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign= "bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%"> </t d><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="24%" align="left"><div style="TEXT-INDEN T: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Goodwill</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">4,708</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">603</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%"> 10,331</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">8,528</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td> ;<td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">3,832</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">18,251</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">46,253</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 2px" valign="bottom" width="24%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Accumulated Impairment Losses</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">(3,832</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap">)</td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">(3,832</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"><f ont style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">)</td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 4px" valign="bottom" width="24%">  </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%">4,708</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="now rap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%">603</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left">  </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%">10,331</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" wi dth="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%">8,528</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%">18,251</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1 %" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%">42,421</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr></table></div><div style="TEXT-INDE NT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">At December 31, 2009, the Company’s market capitalization was below its net book value. Based on a control factor that was considered and the discounted cash flows used in management’s assessment, management determined that an impairment to goodwill did not exist at December 31, 2009.</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LE FT: 0pt; MARGIN-RIGHT: 0pt" align="left">At June 30, 2010, the Company's market capitalization was less than its net book value. The Company considers this decline to be temporary and based on general economic conditions. The Company is required to test annually whether the estimated fair value of its reporting units is sufficient to support the goodwill assigned to those reporting units; the Company performs the annual test in the fourth quarter. The Company is also required to test goodwill for impairment before the annual test if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount, such as a significant adverse change in the business climate. The Company determined that a test of goodwill for impairment was not required as of June 30, 2010.</div>

49888000

23737000

795000

1627000

1523000

728000

38652000

39561000

83833000

82163000

85532000

89409000

16318000

19932000

453403000

454353000

42248000

53269000

17726000

598000 1224000

-9261000

758000

9069000

-3187000

-0.44

0.45

-0.41

0.26

-1305000

-1136000

-2769000

949000

2010-06-30

<div><table style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%"><tr valign="top"><td style="WIDTH: 27pt; TEXT-ALIGN: left"><div style="TEXT-ALIGN: left">9. </div></td><td><div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">Disclosure About Segments of an Enterprise and Related Information</div></td></tr></table></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MAR GIN-RIGHT: 0pt" align="left">The Company serves its markets and manages its business through six operating segments, each of which has its own manufacturing facilities and administrative and selling functions.</div> <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The financial information for all segments is presented below (in thousands):</div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div align="left"><table style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="6"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">Three Months Ended June 30,</div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="b ottom" colspan="6"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">Six Months Ended June 30,</div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td></tr><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="DISPLAY: block; MAR GIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2010</div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2009</div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2010</div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2009</div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Revenue from External Customers</div></td> <td valign="bottom" align="left"> </td><td valign="bottom" align="left" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td valign="bottom" align="left"> </td><td valign="bottom" align="left" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td valign="bottom" align="left"> </td><td valign="bottom" align="left" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td valign="bottom" align="left"> </td><td valign="bottom" align="left" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td></tr>< ;tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Advanced Ceramic Operations</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">39,054</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> & lt;/td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">52,612</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">90,883</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">108,862</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">ESK Ceramics</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">30,961</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">24,079</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left " valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">62,709</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">47,665</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Semicon Associates</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2,321</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,944</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">4,580</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right " valign="bottom" width="9%">4,020</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Thermo Materials</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td s tyle="TEXT-ALIGN: right" valign="bottom" width="9%">23,513</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">15,313</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">43,360</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">31,524</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Ceradyne Canada</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> ; </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,039</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">5</td><td style="TEXT - -ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,372</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"></td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">318</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Boron</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">6,401</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">7,403</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">12,587</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bo ttom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">13,452</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Inter-segment elimi nation</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">(2,874</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> ; </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">(6,089</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">(5,038</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">(10,802</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Total</div></td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER - -BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">100,415</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">95,267</td><td sty le="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">210,453</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> < /td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">195,039</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%">  </font& gt;</td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">&a mp;#160;</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Depreciation and Amortization</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"&g t; </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">  ;</td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Advanced Ceramic Operations</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2,314</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> ; </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2,669</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">4,662</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">5,268</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"><fon t style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">ESK Ceramics</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2,894</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" wi dth="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">3,949</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td styl e="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">6,259</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">7,087</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Semicon Associates</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">82</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">93</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">166</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALI GN: right" valign="bottom" width="9%">186</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Thermo Materials</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td>& lt;td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,690</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">903</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">3,036</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2,251</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Ceradyne Canada</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"&g t; </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">342</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">331</td><td style="TEX T-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">683</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"></td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">641</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Boron</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">1,674</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"&g t; </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">1,949</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bo ttom" width="9%">3,431</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">3,926</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="b ottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Total</div></td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">8,996</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">9,894</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">18,237</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">19,359</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%">  </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bo ttom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Segment Income (Loss) before Provision for Income Taxes</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIG N: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">  </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left " width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Advanced Ceramic Operations</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">(647</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">4,844</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" vali gn="bottom" width="9%">1,412</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">9,091</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </fo nt></td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">ESK Ceramics</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">3,941</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">  </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">(15,690</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">6,012</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">(20,079</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Semicon Associates</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">448</td><td style="TEXT-ALIGN: left" valign="bottom" no wrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">239</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td& gt;<td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">662</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">473</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Thermo Materials</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">5,998</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">3,566</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1% "> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">10,304</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><t d style="TEXT-ALIGN: right" valign="bottom" width="9%">7,198</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Ceradyne Canada</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </fo nt></td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">(545</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">(4,842</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">(1,431</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">(5,611</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Boron</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">(972</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">(1,899</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="now rap" width="1%">)</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">(2,192</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-AL IGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">(3,652</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Inter-segment elimination</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">(204</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">80</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">(227</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">55</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Total</div></td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">8,019</font&g t;</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">(13,702</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)< ;/font></td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">14,540</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </fon t></td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">(12,525</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">)</td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%">  </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Segment Assets</div></td><td valign ="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">&am p;#160;</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">< ;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Advanced Ceramic Operations</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">405,135</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td>< td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">386,754</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">40 5,135</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">386,754</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%">&l t;div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">ESK Ceramics</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">164,567</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">212,277</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: righ t" valign="bottom" width="9%">164,567</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">212,277</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"></td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Semicon Associates</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">5,852</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">5,830</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">5,852</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">5,830</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Thermo Materials</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">121,215</td><td s tyle="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">103,577</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">121,215</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">103,577</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Ceradyne Canada</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" widt h="9%">18,341</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">16,689</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">  ;</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">18,341</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">16,689</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Boron</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="b ottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">109,931</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALI GN: right" valign="bottom" width="9%">115,369</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">109,931</td><td style="PADDING-BOTTOM: 2px; TE XT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">115,369</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor= "#cceeff"><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Total</div></td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">825,041</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1% "> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">840,496</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> ; </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">825,041</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">840,496</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%">  </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width=" 1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valig n="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Expenditures for Property, Plant & Equipment</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" width="1%" > </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="9%"><fo nt style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">& lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Advanced Ceramic Operations</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,838</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap=" nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">948</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style ="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">3,150</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2,132</fo nt></td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">ESK Ceramics</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">380</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,500</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">836</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign=" bottom" width="9%">2,924</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Semicon Associates</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT - -ALIGN: right" valign="bottom" width="9%">253</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">24</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">441</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">75</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Thermo Materials</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">9,290</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,924</td><td style="TEXT-ALIGN: left" val ign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">12,678</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> < ;/font></td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">6,717</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Ceradyne Canada</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">74</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">63</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">120</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="le ft" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">163</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Boron</div></ td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">518</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </t d><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">161</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">1,947</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">320</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Total</div></td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: blac k 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">12,353</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">4,620</td><td style="PADDING-BOT TOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">19,172</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td st yle="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">12,331</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="52%">  </td><td valign= "bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td ><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr></table></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"> & ;#160;</div><div align="left"><table style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="6"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">Three Months Ended June 30,  </div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="6"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">Six Months Ended June 30,  </div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td></tr><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">2010  </div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">2009  </div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">2010  </div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">2009  </div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Percentage of U.S. net sales from external customers</div></td><td valign="bottom" align="left"> </td><td valign="bottom" align="left" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td valign="bottom" align="left"> </td><td valign="bottom" align="left" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"></td><td valign="bottom" align="left"> </td><td valign="bottom" align="left" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td valign="bottom" align="left"> </td><td valign="bottom" align="left" colspan="2"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap">& ;#160;</td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Advanced Ceramic Operations</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">31</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">54</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">39</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">54</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width= "1%">%</td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">ESK Ceramics</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">4</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">4</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">3</td>& lt;td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Semicon Associates</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2&l t;/td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Thermo Materials</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">5</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">6</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%">&l t;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">5</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">6</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Ceradyne Canada</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT- ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</f ont></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Boron</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">5</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">4</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">4</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">3</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="white"> ;<td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Total percentage of U.S. net sales from external customers</div></td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">47</td><td style="BORDER-BOTTOM: black 4px double; TE XT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">68</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING- BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">54</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDE R-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">68</td><td style="PADDING-BOTTOM: 2px; BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="52%">  </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valig n="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> < /td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Percentage of foreign net sales from external customers</di v></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap " width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RI GHT: 0pt" align="left">Advanced Ceramic Operations</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">9</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">5</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"& gt;<div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">ESK Ceramics</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">24</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">18</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" widt h="9%">24</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">18</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr>< ;tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Semicon Associates</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td>&l t;td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">  </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Thermo Materials</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">18</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">8</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">15</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">8</td><td style="TEXT-ALIGN: left" valign="bottom" nowr ap="nowrap" width="1%">%</td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Ceradyne Canada</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1</td><td style="TEXT-ALIGN: left" valign="bot tom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td sty le="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Boron</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" v align="bottom" width="9%">1</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">4</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: l eft" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">2</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 2px" va lign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">4</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Total percentage of foreign net sales from external customers</div></td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">53</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING- BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">32</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDE R-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">46</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td> ;<td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">32</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%">  </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%" > </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td> ;<td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left"> Percentage of total net sales from external customers</div></td><td valign="bottom" align="left" width="1%">  </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" ali gn="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Advanced Ceramic Operations</div> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">40</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">56</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">44</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">56</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">ESK Ceramics</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">28</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"><fo nt style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">20</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">28</td><td style="TEXT-ALIGN: left" vali gn="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">21</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGH T: 0pt" align="left">Semicon Associates</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> < ;/td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><di v style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Thermo Materials</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">23</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">14</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9% ">20</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">14</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr b gcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Ceradyne Canada</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valig n="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </font& gt;</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">0</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Boron</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">6</td><td style="BO RDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">8</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</ td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">6</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </t d><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">7</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Total percentage of total net sales from external customers</div&g t;</td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">100</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </fo nt></td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">100</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">100</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">100</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">%</td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="52%">  </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bot tom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td st yle="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"> ; </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr></table></div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The following is revenue by product line for ACO (in thousands):</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"> </div><div align="left"><table style="FONT-SIZE: 10pt; F ONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="6"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">Three Months Ended June 30,  </div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="6"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">Six Months Ended June 30,  </div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td></tr><tr&g t;<td style="PADDING-BOTTOM: 2px" valign="bottom" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2010  </div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap">& ;#160;</td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2009  </div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2010  </div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="DI SPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2009  </div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Armor</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">29,796</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">47,388</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">73,145</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1 %"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">97,200</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Automotive</div></td><td valign="bottom" align="left" w idth="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2,230</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td&g t;<td style="TEXT-ALIGN: right" valign="bottom" width="9%">855</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">4,758</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2,829</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Orthodontics</div></td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2,031</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" > </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2,589</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">4,203</td><td styl e="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">5,071</td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Industrial</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">4,997</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%">& amp;#160;</td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">1,780</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%">  </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">8,777</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">3,762</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="52%">  </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">39,054</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">52,612</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">90,883</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"><fon t style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">108,862</td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: left" valign="bottom" nowrap="nowrap" width="1%"> </td></tr></table></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEX T-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div>

-3275000

215000

-106515000

-79253000

-3130000

35461000

35535000

56407000

18775000

156847000

157679000

<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div><table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%"><tr valign="top"><td width="4%">2.</td><td width="96%"><div style="TEXT-INDENT: 0pt; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">Share Based Compensation</div></td></tr></table></div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0p t; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Share-based compensation expense for the three and six months ended June 30, 2010 was $1.0 million and $2.0 million, respectively, which was related to stock options and restricted stock units. This compared to $0.9 million and $1.8 million for the three and six months ended June 30, 2009, respectively.</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Share-based compensation expense is based on the value of the portion of share-based payment awards that is ultimately expected to vest. Forfeitures are estimated at the time of grant in order to estimate the amount of share-ba sed awards that will ultimately vest. The forfeiture rate is based on historical rates. Share-based compensation expense recognized in the Company’s Consolidated Statements of Income for the three and six month periods ended June 30, 2010 includes (i) compensation expense for share-based payment awards granted prior to, but not yet vested as of January 1, 2006, based on the estimated grant-date fair value and (ii) compensation expense for the share-based payment awards granted subsequent to December 31, 2005, based on the estimated grant-date fair value. Since share-based compensation expense recognized in the Consolidated Statements of Income for the three and six month periods ended June 30, 2010 is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures.</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-IND ENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The Company maintains the 1994 Stock Incentive Plan and 2003 Stock Incentive Plan.</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The Company was authorized to grant options for up to 2,362,500 shares under its 1994 Stock Incentive Plan. The Company has granted options for 2,691,225 shares and has had cancellations of 396,911 shares through June 30, 2010. There are no remaining stock options available to grant under this plan. The options granted under this plan generally became exercisable over a five-year period for incentive stock options and six months for nonqu alified stock options and have a maximum term of ten years.</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The 2003 Stock Incentive Plan was amended in 2005 to allow the issuance of Restricted Stock Units (the “Units”) to eligible employees and non-employee directors. The Units are payable in shares of the Company’s common stock upon vesting. For directors, the Units typically vest annually over three years following the date of their issuance. For officers and employees, Units granted prior to March 22, 2010 typically vest annually over five years following the date of their issuance, and Units granted on or after March 22, 2010 typically vest annually over three years following the date of the ir issuance.</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The Company may grant options and Units for up to 1,875,000 shares under the 2003 Stock Incentive Plan. The Company has granted options for 475,125  shares and Units for 713,986 shares under this plan through June 30, 2010. There have been cancellations of 101,675 shares associated with this plan through June 30, 2010. The options under this plan have a life of ten years.</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">During the three and six months ended June 30, 2010 and 2009, the Company issued Units to certain directors, officers and employees with weighted average grant date fair values and Units issued as indicated in the table below. The Company records compensation expense for the amount of the grant date fair value on a straight line basis over the vesting period. </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Share-based compensation expense reduced the Company’s results of operations as follows (dollars in thousands):</div><div style="TEXT-INDENT: 0pt; DISPLAY: bloc k"> </div><div align="left"><table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="6"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">Three Months Ended </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">June 30,</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="6"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">Six Months Ended </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">June 30,</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" nowrap="nowrap"> </td></tr><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2010</div></td ><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2009</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom">& lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2010</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARG IN-RIGHT: 5.05pt" align="center">2009</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Share-based compensation expense recognized:</div></td><td valign="bottom" align="left"> </td><td valign="bottom" colspan="2" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td valign="bottom" align="left"> </td><td valign="bottom" colspan="2" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td valign="bottom" align="left"> </td><td valign="bottom" colspan="2" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td><td valign="bottom" align="left"> </td><td valign="bottom" colspan="2" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td valign="bottom" width="52%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">General and a dministrative, options</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">12</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> & lt;/td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">69</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">41</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">140</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="52%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">General and administrative, restricted stock units</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,006</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">843</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap">&#16 0;</td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,941</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,636</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 2px" valign="bottom" width="52%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Related deferred income tax benefit</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">(406</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap">)</td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left">&#1 60;</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">(364</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap">)</td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">(790</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap">)</td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">(709</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap">)</td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 4px" valign="bottom" width="52%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Decrease in net income</div></td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left">&# 160;</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">612</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">548</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIG N: right" valign="bottom" width="9%">1,192</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">1,067</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr></table></div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The amounts above include the impact of recognizing compensation expense related to non-qualified stock options.</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"> </div><div style="TEX T-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">As of June 30, 2010, there was no unrecognized compensation cost related to non-vested outstanding stock options. The aggregate intrinsic value of stock options exercised was $130,000 and $32,000 for the six months ended June 30, 2010 and 2009.</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">As of June 30, 2010, there was approximately $10.0 million of total unrecognized compensation cost related to non-vested Units granted under the 2003 Stock Incentive Plan. That cost is expected to be recognized over a weighted average period of 2.9 years.</di v><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The following is a summary of stock option activity:</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"> </div><div align="center"><table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="80%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" width="76%" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> ; </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="22%" colspan="6"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">Six Months Ended</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 7.2pt" align="center"> June 30, 2010</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr><td style="PADDING-BOT TOM: 2px" valign="bottom" width="76%" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">Number of</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">Options</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">Weighted Average</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">Exercise</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RI GHT: 7.2pt" align="center">Price</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="76%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Outstanding, December 31, 2009</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">454,400</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">12.37</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowra p="nowrap"> </td></tr><tr bgcolor="white"><td valign="bottom" width="76%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Options granted</div></td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">-</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" no wrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">-</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="76%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align=" left">Options exercised</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">(6,350</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap">)</td><td valign="bottom" width="1%" align="left"> </td>< ;td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">3.47</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 2px" valign="bottom" width="76%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Options cancelled</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">-</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 4px" valign="bottom" width="76%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Outstanding, June 30, 2010</div></td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left">&# 160;</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">448,050</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">12.50</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td valign="bottom" width="76%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Exercisable, June 30, 2010</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width ="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">448,050</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">12.50</td><td style= "TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr></table></div><div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div><div style="TEXT-INDENT: 27pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The following is a summary of Unit activity:</div><div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div><div align="center"><table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="80%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" width="76%">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%">& lt;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="22%" colspan="6"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">Six Months Ended</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 7.2pt" align="center"> June 30, 2010</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr><td style="PADDING-BOTTO M: 2px" valign="bottom" width="76%" align="left">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Number of</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Units</div></td><td sty le="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">Weighted Average</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 7.2pt" align="center">Grant Date Fair Value</div></ td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="76%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Non-vested Units at December 31, 2009</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">363,924</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">32.47</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="wh ite"><td valign="bottom" width="76%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Granted</div></td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">120,160</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign=" bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">23.09</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" width="76%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Forfeited</div></td><td v align="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">(2,300</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap">)</td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</font& gt;</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">40.73</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 2px" valign="bottom" width="76%" align="left"><div style="TEXT-INDENT: -45pt; DISPLAY: block; MARGIN-LEFT: 45pt; MARGIN-RIGHT: 0pt" align="left">Vested</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">(76,310</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap">)</td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="9%">&l t;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt">35.09</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 4px" valign="bottom" width="76%" align="left"><div style="TEXT-INDENT: -18pt; DISPLAY: block; MARGIN-LEFT: 18pt; MARGIN-RIGHT: 0pt" align="left">Non-vested Units at June 30, 2010</div></td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">405,474</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%">29.15</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr></table></div><div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The following table summarizes information regarding options outstanding and options exercisable at June 30, 2010:</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left"> </div><div align="left"><table style="FONT-FAMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="100%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" width="10%" colspan="2" align="left"> </td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="38%" colspan="14"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" a lign="center">Outstanding</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="38%" colspan="14"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Exercisable</di v></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Range of Exercise Prices</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%">&a mp;#160;</td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Number of</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Options</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Average</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Remaining</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Contractual</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Life (Years)</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Weighted</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LE FT: 0pt; MARGIN-RIGHT: 0pt" align="center">Average</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Exercise</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Price</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width ="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Aggregate</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Intrinsic</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Value</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN- RIGHT: 0pt" align="center">(000s)</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Number of</div><div st yle="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Options</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Average</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Remaining</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Contractual</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Life (Years)</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Weighted</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Average</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Exercise</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Price</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="8%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Aggregate</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Intrinsic</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Value</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">(000s)</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">2.98 - 4.58</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">200,025</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">1.57</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">4.14</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bott om" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">3,447</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">200,025</td>< td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">1.57</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">4.14</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">3,447</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">10.53 - 16.89</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">122,025</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">3.20</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">16.89</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">547</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><t d style="TEXT-ALIGN: right" valign="bottom" width="7%">122,025</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">3.20</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">16.89</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td><td valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="7%">547</td><td style="TEXT-ALIGN: left" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2px" valign="bottom" width="9%">18.80 -  24.07</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">126,000</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align=" left"> </td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2px" valign="bottom" width="7%">4.22</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2px" valign="bottom" width="7%">21.51</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">38</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">126,000</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap">< ;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2px" valign="bottom" width="7%">4.22</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2px" valign="bottom" width="7%">21.51</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="7%">38</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 4px" valign="bottom" width="9%"> </td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"& gt; </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%">448,050</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"><f ont style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt"> </td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 4px" valign="bottom" width="7%">2.76</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 4px" valign="bottom" width="7%">12.50</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%">4,032</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%">448,050</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 4px" valign="bottom" width="7%">2.76</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 4px" valign="bottom" width="7%">12.50</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="1%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="7%">4,032</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="1%" nowrap="nowrap"> </td></tr></table></div><div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">The following table summarizes information regarding Units outstanding at June 30, 2010:</div><div style="TEXT-INDENT: 0pt; DISPLAY: block"> </div><div align="center"><table style="FONT-F AMILY: times new roman; FONT-SIZE: 10pt" cellspacing="0" cellpadding="0" width="44%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" width="18%" colspan="2" align="left"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="2%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="53%" colspan="6"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Outstanding</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="2%" nowrap="nowrap"> </td></tr><tr><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="18%" colspan="2" align="left"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">Range of Grant Prices</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="2%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="15%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Number of</div><div style="TEXT-IND ENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Units</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="2%" nowrap="nowrap"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="15%"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Average</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Remaining</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Contractual</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Life (Years)</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="2%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="19%" colspan="2"><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Weighted</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Average</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Grant Date</div><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="center">Fair Value</div></td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="2%" nowrap="nowrap">&l t;font style="DISPLAY: inline; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold"> </td></tr><tr bgcolor="#cceeff"><td style="TEXT-ALIGN: right" valign="bottom" width="2%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="16%">16.53 - 25.37</td><td valign="bottom" width="2%" align="left"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="15%">274,660</td><td style="TEXT-ALIGN: left" valign="bottom" width="2%" nowrap="nowrap"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="15%">3.23</td><td style="TEXT-ALIGN: right" valign="bottom" width="2%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="2%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="17%">21.13</td><td style="TEXT-ALIGN: left" valign="bottom" width="2%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td style="TEXT-ALIGN: right" valign="bot tom" width="2%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="16%">37.41 - 39.43</td><td valign="bottom" width="2%" align="left"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="15%">65,284</td><td style="TEXT-ALIGN: left" valign="bottom" width="2%" nowrap="nowrap"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="15%">2.74</td><td style="TEXT-ALIGN: right" valign="bottom" width="2%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="2%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="17%">38.61</td><td style="TEXT-ALIGN: left" valign="bottom" width="2%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td style="TEXT-ALIGN: right" valign="bottom" width="2%">$</td><td style="TEXT-ALIGN: right" valig n="bottom" width="16%">42.28 - 45.70</td><td valign="bottom" width="2%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="15%">36,600</td><td style="TEXT-ALIGN: left" valign="bottom" width="2%" nowrap="nowrap"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="15%">2.85</td><td style="TEXT-ALIGN: right" valign="bottom" width="2%"> </td ><td style="TEXT-ALIGN: right" valign="bottom" width="2%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="17%">44.50</td><td style="TEXT-ALIGN: left" valign="bottom" width="2%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td style="TEXT-ALIGN: right" valign="bottom" width="2%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="16%">52.47 - 62.07</td><td valign="bottom" width="2%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="15%">15,510</td><td style="TEXT-ALIGN: left" valign="bottom" width="2%" nowrap="nowrap"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="15%">1.31</td><td style="TEXT-ALIGN: right" valign="bottom" width="2%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="2%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width=" 17%">58.27</td><td style="TEXT-ALIGN: left" valign="bottom" width="2%" nowrap="nowrap"> </td></tr><tr bgcolor="#cceeff"><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2px" valign="bottom" width="2%">$</td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2px" valign="bottom" width="16%">66.35 - 81.18</td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="2%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="15 %">13,420</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="2%" nowrap="nowrap"> </td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2px" valign="bottom" width="15%">1.94</td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2px" valign="bottom" width="2%"> </td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2px" valign="bottom" width="2%">$</td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 2px" valign="bottom" width="17%">71.69</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 2px" valign="bottom" width="2%" nowrap="nowrap"> </td></tr><tr bgcolor="white"><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="2%"> </td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 4px" valign="bottom" width="16%"> </td><td style="PADDING-BOTTOM: 4px" valign="bottom" width="2%" align="left"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="b ottom" width="15%">405,474</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="2%" nowrap="nowrap"> </td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 4px" valign="bottom" width="15%">3.00</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="2%"> </td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 4px" valign="bottom" width="2%">$</td><td style="TEXT-ALIGN: right; PADDING-BOTTOM: 4px" valign="bottom" width="17%"&g t;29.15</td><td style="TEXT-ALIGN: left; PADDING-BOTTOM: 4px" valign="bottom" width="2%" nowrap="nowrap"> </td></tr></table></div>

9655000

10904000

7000

11843000

95267000

210453000

195039000

100415000

2010

100000000

0.01

-4667000

8655000

1864000

3195000

3949000

1609000

15746000

20019000

11261000

12006000

3130000

6563000

-11210000

11553000

-10502000

406000

72000

-13702000

14540000

-12525000

8019000

49000

-219000

825041000

849704000

1785000

18237000

19359000

6978000

12573000

13885000

6718000

825041000

849704000

2346000

2721000

80070000

100976000

Accelerated Filer 25372891

<div><table style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%"><tr valign="top"><td style="WIDTH: 29px; TEXT-ALIGN: left"><div style="TEXT-ALIGN: left">6. </div></td><td width="813"><div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">Fair Value Measurements</div></td></tr></table></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT - -INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">The Company measures fair value and provides required disclosures about fair value measurements as it relates to financial and nonfinancial assets and liabilities in accordance with a framework specified by GAAP. This framework addresses how companies should measure fair value when they are required to use a fair value measure for recognition or disclosure purposes under GAAP. On April 1, 2009, the Company adopted new recognition principles which provided additional guidance to provide greater clarity about the credit and noncredit component of an other-than-temporary impairment event.</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="DISPLAY: block; TEXT-INDENT: 0pt">The fair value framework requires that assets and liabilities carried at fair value be classified and disclosed in one of the following three categories:</div></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left">Level 1:  quoted market prices in active markets for identical assets and liabilities</div></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left">Level 2:  observable market based inputs or unobservable inputs that are corroborated by market data</div></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; MARGIN-RIGHT: 0pt" align="left"></div></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><div style="DISPLAY: block; TEXT-INDENT: 0pt">The carrying value of cash and cash equivalents, accounts receivable and trade payables approximates the fair value due to their short-term maturities.</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">For recognition purposes, on a recurring basis, the Company measures available for sale short-term and long-term investments at fair value. Short-term investments had an aggregate fair value of $212.3 million at June 30, 2010 and $117.7 million at December 31, 2009. The fair value of these investments is determined using quoted prices in active markets. Long-term investments, comprising auction rate securities, had an aggregate fair value of $15.7 million at June 30, 2010 and $20.0 million at December 31, 2009. The fair value of long-term investments is based on a valuation technique that includes the present value of future cash flows (principal and interest payments), review of the underlying collateral and considers relevant probability weighted and risk adjusted observable inputs and minimizes the use of unobservable inputs. </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MAR GIN-RIGHT: 0pt" align="justify"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">During the three months ended June 30, 2010 the Company recognized a pre-tax gain of $0.9 million, net of realized losses of $2.6 million, primarily due to sales of certain investments in auction rate securities. During the three months ended June 30, 2009 the Company recognized a pre-tax loss of $1.5 million due to other-than-temporary reductions in the fair value of its investments in auction rate securities. The Company also recognized a pre-tax decrease of $1.4 million in other comprehensive income during the three months ended June 30, 2010 and a pre-tax increase of $3.9 million in other comprehensive income during the three months ended June 30, 2009, due to temporary changes in the fair value of its investments in auction rate securities.</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">During the six months ended June 30, 2010 the Company recognized a net pre-tax loss of $1.0 million from sales of its investments in auction rate securities, partially offset by the net gain recognized during the second quarter. During the six months ended June 30, 2009 the Company recognized a pre-tax loss of $1.6 million due to other-than-temporary reductions in the value of its investments in auction rate securities. The Company also recognized a net pre-tax increase of $168,000 in other comprehensive income during the six months ended June 30, 2010 and a pre-tax increase of $2.6 million which increased other comprehensive income during the six months ended June 30, 2009, due to temporary changes in the fair value of its investments in auction rate securities.</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="DISPLAY: block; TEXT-INDENT: 0pt">Cumulatively to date, the Company has incurred $9.3 million in pre-tax charges due to other-than-temporary reductions in the value of its investments in auction rate securities, realized losses of $4.9 mi llion from sales of auction rate securites and pre-tax temporary impairment charges of $2.3 million reflected in other comprehensive income. The Company’s investments in auction rate securities represent interests in insurance securitizations collateralized by pools of residential and commercial mortgages, asset backed securities and other structured credits relating to the credit risk of various bond guarantors that mature at various dates from June 2021 through July 2052. These auction rate securities were intended to provide liquidity via an auction process which is scheduled every 28 days, that resets the applicable interest rate, allowing investors to either roll over their holdings or gain immediate liquidity by selling such interests at par. Interest rates are capped at a floating rate of one month LIBOR plus additional spread ranging from 1.25% to 4.00% depending on prevailing rating. During the second half of the year 2007, through 2008, 2009 and through June 30, 2010, the auction s for these securities failed. As a result of current negative conditions in the global credit markets, auctions for the Company’s investment in these securities have recently failed to settle on their respective settlement dates. Consequently, the investments are not currently liquid through the normal auction process and may be liquidated if a buyer is found outside the auction process. Although the auctions have failed, the Company continues to receive underlying cash flows in the form of interest income from the investments in auction rate securities. As of June 30, 2010, the fair value of the Company’s investments in auction rate securities was below cost by approximately $11.6 million. The fair value of the auction rate securities has been below cost for more than one year.</div></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div&g t;<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">Beginning in the third quarter of 2008 and at June 30, 2010, the Company determined that the market for its investments in auction rate securities and for similar securities continued to be inactive since there were few observable or recent transactions for these securities or similar securities. The Company’s investments in auction rate securities were classified within Level 3 of the fair value hierarchy because the Company determined that significant adjustments using unobservable inputs were required to determine fair value as of June 30, 2010 and December 31, 2009. </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div></div>& lt;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">An auction rate security is a type of structured financial instrument where its fair value can be estimated based on a valuation technique that includes the present value of future cash flows (principal and interest payments), review of the underlying collateral and considers relevant probability weighted and risk adjusted observable inputs and minimizes the use of unobservable inputs. Probability weighted inputs included the following:</div></div><ul><li><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">·</fon t> Probability of earning maximum rate until maturity</div></li><li><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">· Probability of passing auction at some point in the future</div></li><li><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">·</fon t> Probability of default at some point in the future (with appropriate loss severity assumptions)</div></li></ul><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">The Company determined that the appropriate risk-free discount rate (before risk adjustments) used to discount the contractual cash flows of its auction rate securities ranged from 0.2% to 4.1%, based on the term structure of the auction rate security. Liquidity risk premiums are used to adjust the risk-free discount rate for each auction rate security to reflect uncertainty and observed volatility of the current market environment. This risk of nonper formance has been captured within the probability of default and loss severity assumptions noted above. The risk-adjusted discount rate, which incorporates liquidity risk, appropriately reflects the Company’s estimate of the assumptions that market participants would use (including probability weighted inputs noted above) to estimate the selling price of the asset at the measurement date. </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">In determining whether the decline in value of the ARS investments was other-than-temporary, the Company considered several factors including, but not limited to, the following: (1) the reasons for the decline in value (credit event, interest related or market fluctuations); (2) the Company’s ability and intent to hold the investments for a sufficient period of time to allow for recovery of value; (3) whether the decline is substantial; and (4) the historical and anticipated duration of the events causing the decline in value. The evaluation for other-than-temporary impairments is a quantitative and qualitative process, which is subject to various risks and uncertainties. The risks and uncertainties include changes in the credit quality of the securities, changes in liquidity as a result of normal market mechanisms or issuer calls of the securities, and the effects of changes in interest rates.  </div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div style="DISPLAY: block; TEXT-INDENT: 0pt">Assets measured at fair value on a recurring basis include the following as of June 30, 2010 and December 31, 2009 (in thousands):</div></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div><div align="left"><table style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="52%">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%">  </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="34%" colspan="10"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Fair Value Measurements at</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"> June 30, 2010 Using</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%">  </td>< ;td style="PADDING-BOTTOM: 2px" valign="bottom" width="10%" colspan="2"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%">  </td></tr><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" width="52%">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%">  </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Quoted Prices in Active Markets</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"> (Level 1)</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%">  </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Significant Oth er Observable Inputs</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">(Level 2)</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%">  </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Significant Unobservable Inputs</div><div style="DISPLAY : block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">(Level 3)</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%">  </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Total Carrying Value at</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="cent er"> June 30, 2010</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="1%">  </td></tr><tr bgcolor="#cceeff"><td style="LINE-HEIGHT: 1.25" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">Cash and cash equivalents (including restricted cash)</div></td><td valign="bottom" align="right" width="1%">  </td><td valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">58,916</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="1%">  </td><td valign="bottom" width="1%">$</td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">-</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="1%">  </td><td valign="bottom" width="1%">$</td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">-</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" al ign="right" width="1%">  </td><td valign="bottom" align="left" width="1%">$</td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">58,916</div></td><td valign="bottom" align="left" width="1%">  </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">S hort term investments</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" width="1%">  </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">  212,294</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="1%">  </td><td valign="bottom" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"> -</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"> -</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="1%">  </td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">212,294</div></td><td valign="bottom" align="left" width="1%">  </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Long term investments</div></td><td valign="bottom" width="1%">  </td><td valign="bottom" width="1%">  </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">             -</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="1%">  </td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"> -</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">15,746</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="1%">  &l t;/font></td><td valign="bottom" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">15,746</div></td><td valign="bottom" align="left" width="1%">  </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Other long term financial assets</div></td><td valign="bottom" width="1%">  </td><td valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">1,765</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="1%">  </td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"> -</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">-</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="1%">  </td><td valign="bottom" width="1%">$</td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">1,765</div></td><td valign="bottom" width="1%">  </td></tr></table></div><div style="DISPLAY: bl ock; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div><div style="DISPLAY: block; TEXT-INDENT: 0pt"><div><div align="left"><table style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%"><tr><td valign="bottom" align="left" width="52%">  </td><td valign="bottom" align="left" width="1%">  </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="34%" colspan="10"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Fair Value Measurements at</div><div styl e="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"> December 31, 2009 Using</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" width="10%" colspan="2">  </td><td valign="bottom" align="left" width="1%">  </td></tr><tr><td valign="bottom" width="52%">  </td><td valign="bottom" align="left" width="1%">  </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Quoted Prices in Active Markets</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"> (Level 1)</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="left" width=" 1%">  </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Significant Other Observable Inputs</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">(Level 2)</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="left" width="1%">  </ td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Significant Unobservable Inputs</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">(Level 3)</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="left" width="1%">  </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="10%" colspan="2"><div style="DISPLAY: bloc k; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">Total Carrying Value at</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"> December 31, 2009</div></td><td valign="bottom" align="left" width="1%">  </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%">Cash and cash equivalents (including restricted cash)</td><td valign="bottom" align="left" width="1%"> </td><td valign="bottom" width="1%"> $</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">125,284</td><td valign="bottom" align="left" width="1%"> </td><td valign="bottom" align="right" width="1%"> </td><td valign="bottom" width="1%">$ </td><td valign="bottom" align="right" width="9%">-</td><td valign="bottom" align="left" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td valign="bottom" width="1%">$</td><td valign="bottom" align="right" width="9%">-</td><td valign="bottom" align="left" width="1%"> </td><td valign="bottom" align="right" width="1%"> </td><td valign="bottom" align="left" width="1%">$ </td><td valign="bottom" align="right" width="9%">125,284</td><td valign="bottom" align="left" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Short term investments</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" width="1%">  </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right"> 117,666</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="1%">  </td><td valign="bottom" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"> -</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"> -</div></td><td valign="bottom" align="left" width="1%"></td><td valign="bottom" align="right" width="1%">  </td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">117,666</div></td><td valign="bottom" align="left" width="1%">  </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Long term investments</div></td><td valign="bottom" width="1%">  </td><td valign="bottom" width="1%">  </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">             -</div></td><td valign="bottom" align="left" width="1%">  < ;/td><td valign="bottom" align="right" width="1%">  </td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"> -</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">20,019</div></td><td valign="bottom" align="left" width="1%">  </td><td valign="bottom" align="right" width="1%">  </td><td valign="bottom" width="1%">  </td><td valign="bottom" align="right" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">& lt;font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">20,019</div></td><td valign="bottom" align="left" width="1%">  </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%">Other long term financial assets</td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%"> $</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">1,962</td><td valign="botto m" width="1%"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" align="right" width="9%">-</td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%"> </td><td valign="bottom" align="right" width="9%"><f ont style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">-</td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">$</td><td valign="bottom" align="right" width="9%">1,962</td><td valign="bottom" width="1%"> </td></tr></table></div><div align="left"> </div></div></div><div style="DIS PLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">Activity in long term investments (Level 3) was as follows (in thousands):</div><div style="DISPLAY: block; TEXT-INDENT: 0pt"> </div></div><div align="left"><table style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman" cellspacing="0" cellpadding="0" width="100%"><tr><td style="PADDING-BOTTOM: 2px" valign="bottom">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" colspan="5"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">Three Months Ended June 30,</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="b ottom" colspan="5"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">Six Months Ended June 30,</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom"> </td></tr><tr><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="52%">  </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2010</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="1%"> </ td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2009</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%">&l t;div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05pt" align="center">2010</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 5.05p t" align="center">2009</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Balance at beginning of period</div></td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: left" valign="bottom" width="1%"> $</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">           19,612</div></td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%">< div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">          23,039</div></td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: ri ght">          20,019</div></td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%">$</td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">& #160;         24,434</div></td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Sale of auction rate securities</div></td><td valign="bottom" align="left" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-ALIGN: rig ht" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">             (3,463</div></td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">)</td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MA RGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">           -</div></td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right"><fon t style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">           (3,463</div></td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">)</td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right"> & amp;#160;         -</div></td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td></tr><tr bgcolor="#cceeff"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Realized loss included in net earnings</div></td><td valign="bottom" align="left" width="1%"> </td><td valign="bottom" align="left" width="1%"> </td><td style="TEXT-AL IGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">             (2,637</div></td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">)</td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: b lock; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">           -</div></td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right"> ;           (2,637</div></td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">)</td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">&am p;#160;          -</div></td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td></tr><tr bgcolor="white"><td valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Unrealized gain (loss) included in net earnings</div></td><td valign="bottom" width="1%"> </td><td valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">         3,587</div></td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">       (1,527</div></td><td style="TEXT-ALIGN: left" valign="bottom" width="1%">)</td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">&am p;#160;       1,659</div></td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">       (1,631</div></td> ;<td style="TEXT-ALIGN: left" valign="bottom" width="1%">)</td></tr><tr bgcolor="#cceeff"><td style="PADDING-BOTTOM: 2px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Unrealized gain (loss) included in other comprehensive income</div></td><td style="PADDING-BOTTOM: 2px" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="b ottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">         (1,353</div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: left" valign="bottom" width="1%">)</td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bo ttom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">       3,871</div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width= "9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">           168</div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 2px solid; TEXT-ALIGN: rig ht" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">       2,580</div></td><td style="PADDING-BOTTOM: 2px; TEXT-ALIGN: right" valign="bottom" width="1%"> </td></tr><tr bgcolor="white"><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="52%"><div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; MARGIN-RIGHT: 0pt" align="left">Balance at end of period</div></td><td style="PADDING-BOTTOM: 4px" valign="bottom" align="left" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double" valign="bottom" align="left" width="1%"> $</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">        15,746</div></td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">      25,383</div></td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">        15,746</div></td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: right" valign="bottom" width="1%"> </td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: right" valign="bottom" width="1%">& amp;#160;</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="1%">$</td><td style="BORDER-BOTTOM: black 4px double; TEXT-ALIGN: right" valign="bottom" width="9%"><div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: right">     25,383</div></td><td style="PADDING-BOTTOM: 4px; TEXT-ALIGN: right" valign="bottom" width="1%"> </td></tr></table></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><div style="DISPLAY: block; TEXT-INDENT: 0pt"><div style="DISPLAY: bloc k; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">  </div></div></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">The Company is also required to test goodwill for impairment before the annual test if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount, such as a significant adverse change in the business climate.</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">& #160;</div></div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">For disclosure purposes, the Company is required to measure the fair value of outstanding debt on a recurring basis. The fair value of outstanding debt is determined using quoted prices in active markets. The fair value of long-term debt, based on quoted market prices, was $89.8 million at June 30, 2010 and $87.5 million at December 31, 2009.</div><div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"> </div></div>

1670000

1981000

-2492000

2987000

-2023000

1456000

-4284000

21528000

8429000

8348000

40313000

48146000

Delaware	33-0055414
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3169 Red Hill Avenue, Costa Mesa, CA	92626
(Address of principal executive)	(Zip Code)

Class		Outstanding as of July 22, 2010
Common Stock, $0.01 par value		25,372,891 Shares

CURRENT LIABILITIES
Accounts payable	$	20,065		$	24,683
Accrued expenses		20,248			23,463
TOTAL CURRENT LIABILITIES		40,313			48,146
LONG-TERM DEBT		83,833			82,163
EMPLOYEE BENEFITS		19,188			21,769
OTHER LONG TERM LIABILITY		38,652			39,561
DEFERRED TAX LIABILITY		8,429			8,348
TOTAL LIABILITIES		190,415			199,987
COMMITMENTS AND CONTINGENCIES (Note 13)
SHAREHOLDERS’ EQUITY
Common stock, $0.01 par value, 100,000,000 authorized, 25,357,047 and 25,401,005 shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively		254			254
Additional paid-in capital		156,847			157,679
Retained earnings		481,809			470,256
Accumulated other comprehensive income (loss)		(4,284	)		21,528
TOTAL SHAREHOLDERS’ EQUITY		634,626			649,717
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	825,041		$	849,704

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
Advanced Ceramic Operations	$	39.1		$	52.7		$	90.9		$	108.9
ESK Ceramics		31.0			24.1			62.7			47.7
Semicon Associates		2.3			1.9			4.6			4.0
Thermo Materials		23.5			15.3			43.4			31.5
Ceradyne Canada		1.0			-			1.4			0.3
Boron		6.4			7.4			12.6			13.5
Inter-segment elimination		(2.9	)		(6.1	)		(5.1	)		(10.9	)
Total	$	100.4		$	95.3		$	210.5		$	195.0

		PAGE NO.
PART I.	FINANCIAL INFORMATION

Item 1.	Unaudited Consolidated Financial Statements		3

	Consolidated Balance Sheets – June 30, 2010 and December 31, 2009		3

	Consolidated Statements of Income – Three and Six Months Ended June 30, 2010 and 2009		4

	Consolidated Statements of Cash Flows – Six Months Ended June 30, 2010 and 2009		5

	Notes to Consolidated Financial Statements		6-19

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		20-32

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		33-34

Item 4.	Controls and Procedures		34

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings		35

Item 1A.	Risk Factors		35

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		35

Item 3.	Not applicable		35

Item 4.	Not applicable		35

Item 5.	Not applicable		35

Item 6.	Exhibits		35

SIGNATURE			36

	June 30, 2010		December 31, 2009
	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	58,916	$	122,154
Restricted cash		-		3,130
Short-term investments		212,294		117,666
Accounts receivable, net of allowances for doubtful accounts of $802
and $851 at June 30, 2010 and December 31, 2009, respectively		42,248		53,269
Other receivables		20,220		11,424
Inventories, net		80,070		100,976
Production tooling, net		11,261		12,006
Prepaid expenses and other		16,318		19,932
Deferred tax asset		12,076		13,796
TOTAL CURRENT ASSETS		453,403		454,353

PROPERTY, PLANT AND EQUIPMENT, net		225,593		239,322
LONG TERM INVESTMENTS		15,746		20,019
INTANGIBLE ASSETS, net		85,532		89,409
GOODWILL		42,421		43,880
OTHER ASSETS		2,346		2,721
TOTAL ASSETS	$	825,041	$	849,704

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
	(Unaudited)						(Unaudited)
NET SALES	$	100,415		$	95,267		$	210,453		$	195,039
COST OF GOODS SOLD		74,570			72,203			159,242			148,388
Gross profit		25,845			23,064			51,211			46,651
OPERATING EXPENSES
Selling		6,718			6,978			12,573			13,885
General and administrative		8,914			10,475			16,956			20,197
Acquisition related credit		(31	)		-			(119	)		-
Research and development		3,174			3,272			6,118			6,650
Restructuring - plant closure and severance		-			10,904			7			11,843
Goodwill impairment		-			3,832			-			3,832
		18,775			35,461			35,535			56,407
INCOME (LOSS) FROM OPERATIONS		7,070			(12,397	)		15,676			(9,756	)
OTHER INCOME (EXPENSE):
Interest income		728			795			1,627			1,523
Interest expense		(1,609	)		(1,864	)		(3,195	)		(3,949	)
Gain on early extinguishment of debt		-			1,785			-			1,785
Gain (loss) on auction rate securities		949			(1,527	)		(978	)		(1,631	)
Miscellaneous		881			(494	)		1,410			(497	)
		949			(1,305	)		(1,136	)		(2,769	)
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES		8,019			(13,702	)		14,540			(12,525	)
PROVISION (BENEFIT) FOR INCOME TAXES		1,456			(2,492	)		2,987			(2,023	)
NET INCOME (LOSS)	$	6,563		$	(11,210	)	$	11,553		$	(10,502	)
BASIC INCOME (LOSS) PER SHARE	$	0.26		$	(0.44	)	$	0.45		$	(0.41	)
DILUTED INCOME (LOSS) PER SHARE	$	0.26		$	(0.44	)	$	0.45		$	(0.41	)
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC		25,431			25,711			25,421			25,766
DILUTED		25,597			25,711			25,576			25,766

	Six Months Ended June 30, 2010
	Number of Options			Weighted Average Exercise Price
Outstanding, December 31, 2009		454,400		$	12.37
Options granted		-		$	-
Options exercised		(6,350	)	$	3.47
Options cancelled		-		$	-
Outstanding, June 30, 2010		448,050		$	12.50
Exercisable, June 30, 2010		448,050		$	12.50

	Six Months Ended June 30, 2010
	Number of Units			Weighted Average Grant Date Fair Value
Non-vested Units at December 31, 2009		363,924		$	32.47
Granted		120,160		$	23.09
Forfeited		(2,300	)	$	40.73
Vested		(76,310	)	$	35.09
Non-vested Units at June 30, 2010		405,474		$	29.15

		Outstanding								Exercisable
Range of Exercise Prices		Number of Options		Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Aggregate Intrinsic Value (000s)		Number of Options		Average Remaining Contractual Life (Years)		Weighted Average Exercise Price		Aggregate Intrinsic Value (000s)
$	2.98 - 4.58		200,025		1.57	$	4.14	$	3,447		200,025		1.57	$	4.14	$	3,447
$	10.53 - 16.89		122,025		3.20	$	16.89	$	547		122,025		3.20	$	16.89	$	547
$	18.80 - 24.07		126,000		4.22	$	21.51	$	38		126,000		4.22	$	21.51	$	38
			448,050		2.76	$	12.50	$	4,032		448,050		2.76	$	12.50	$	4,032

		Outstanding
Range of Grant Prices		Number of Units	Average Remaining Contractual Life (Years)	Weighted Average Grant Date Fair Value
$	16.53 - 25.37	274,660	3.23	$	21.13
$	37.41 - 39.43	65,284	2.74	$	38.61
$	42.28 - 45.70	36,600	2.85	$	44.50
$	52.47 - 62.07	15,510	1.31	$	58.27
$	66.35 - 81.18	13,420	1.94	$	71.69
		405,474	3.00	$	29.15

	June 30, 2010		December 31, 2009
Raw materials	$	6,588	$	12,219
Work-in-process		42,335		46,334
Finished goods		31,147		42,423
	$	80,070	$	100,976

	June 30, 2010			December 31, 2009
Land	$	17,877		$	19,320
Buildings and improvements		91,727			100,861
Machinery and equipment		202,736			214,552
Leasehold improvements		9,497			9,473
Office equipment		28,684			29,807
Construction in progress		20,871			6,083

		371,392			380,096
Less accumulated depreciation and amortization		(145,799	)		(140,774	)
	$	225,593		$	239,322

	June 30, 2010						December 31, 2009
	Gross Amount		Accumulated Amortization		Net Amount		Gross Amount		Accumulated Amortization		Net Amount
Amortizing Intangible Assets
Backlog	$	1,779	$	1,779	$	-	$	1,864	$	1,864	$	-
Developed technology		49,951		4,835		45,116		50,752		4,378		46,374
Tradename		1,110		508		602		1,110		445		665
Customer relationships		47,604		9,866		37,738		47,604		7,671		39,933
Non-compete agreement		500		500		-		500		500		-
Non-amortizing tradename		2,076		-		2,076		2,437		-		2,437
Total	$	103,020	$	17,488	$	85,532	$	104,267	$	14,858	$	89,409

	ACO		Semicon		Thermo		ESK			Canada			Boron		Total
Balance at December 31, 2009
Goodwill	$	4,708	$	603	$	10,331	$	9,987		$	3,832		$	18,251	$	47,712
Accumulated Impairment Losses		-		-		-		-			(3,832	)		-		(3,832	)
		4,708		603		10,331		9,987			-			18,251		43,880
Translation		-		-		-		(1,459	)		-			-		(1,459	)
Balance at June 30, 2010
Goodwill		4,708		603		10,331		8,528			3,832			18,251		46,253
Accumulated Impairment Losses		-		-		-		-			(3,832	)		-		(3,832	)
	$	4,708	$	603	$	10,331	$	8,528		$	-		$	18,251	$	42,421

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
Revenue from External Customers
Advanced Ceramic Operations	$	39,054		$	52,612		$	90,883		$	108,862
ESK Ceramics		30,961			24,079			62,709			47,665
Semicon Associates		2,321			1,944			4,580			4,020
Thermo Materials		23,513			15,313			43,360			31,524
Ceradyne Canada		1,039			5			1,372			318
Boron		6,401			7,403			12,587			13,452
Inter-segment elimination		(2,874	)		(6,089	)		(5,038	)		(10,802	)
Total	$	100,415		$	95,267		$	210,453		$	195,039

Depreciation and Amortization
Advanced Ceramic Operations	$	2,314		$	2,669		$	4,662		$	5,268
ESK Ceramics		2,894			3,949			6,259			7,087
Semicon Associates		82			93			166			186
Thermo Materials		1,690			903			3,036			2,251
Ceradyne Canada		342			331			683			641
Boron		1,674			1,949			3,431			3,926
Total	$	8,996		$	9,894		$	18,237		$	19,359

Segment Income (Loss) before Provision for Income Taxes
Advanced Ceramic Operations	$	(647	)	$	4,844		$	1,412		$	9,091
ESK Ceramics		3,941			(15,690	)		6,012			(20,079	)
Semicon Associates		448			239			662			473
Thermo Materials		5,998			3,566			10,304			7,198
Ceradyne Canada		(545	)		(4,842	)		(1,431	)		(5,611	)
Boron		(972	)		(1,899	)		(2,192	)		(3,652	)
Inter-segment elimination		(204	)		80			(227	)		55
Total	$	8,019		$	(13,702	)	$	14,540		$	(12,525	)

Segment Assets
Advanced Ceramic Operations	$	405,135		$	386,754		$	405,135		$	386,754
ESK Ceramics		164,567			212,277			164,567			212,277
Semicon Associates		5,852			5,830			5,852			5,830
Thermo Materials		121,215			103,577			121,215			103,577
Ceradyne Canada		18,341			16,689			18,341			16,689
Boron		109,931			115,369			109,931			115,369
Total	$	825,041		$	840,496		$	825,041		$	840,496

	Three Months Ended June 30,				Six Months Ended June 30,
	2010		2009		2010		2009
Armor	$	29,796	$	47,388	$	73,145	$	97,200
Automotive		2,230		855		4,758		2,829
Orthodontics		2,031		2,589		4,203		5,071
Industrial		4,997		1,780		8,777		3,762
	$	39,054	$	52,612	$	90,883	$	108,862

Identified Intangible Asset		Estimated Useful Life in Years or Months
Developed technology		10 years – 12.5 years
Tradename		10 years
Customer relationships		10 years – 12.5 years
Backlog		1 month – 3 months
Non-compete agreement		15 months

	Fair Value Measurements at June 30, 2010 Using
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Carrying Value at June 30, 2010
Cash and cash equivalents (including restricted cash)	$	58,916	$	-	$	-	$	58,916
Short term investments		212,294		-		-		212,294
Long term investments		-		-		15,746		15,746
Other long term financial assets	$	1,765		-		-	$	1,765

	Fair Value Measurements at December 31, 2009 Using
	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Carrying Value at December 31, 2009
Cash and cash equivalents (including restricted cash)	$	125,284	$	-	$	-	$	125,284
Short term investments		117,666		-		-		117,666
Long term investments		-		-		20,019		20,019
Other long term financial assets	$	1,962		-		-	$	1,962

	June 30, 2010			December 31, 2009
Federal, state and foreign unrecognized tax benefits (“UTBs”)	$	1,072		$	1,817
Interest		146			216
Federal/State Benefit of Interest		(58	)		(85	)
Total reserve for UTBs	$	1,160		$	1,948

2010	$	1,808
2011		1,908
2012		1,433
2013		1,019
2014		909
Thereafter		266
	$	7,343

	Balance at December 31, 2009		Costs Incurred		Cash Payments			Non-Cash Adjustments			Balance at June 30, 2010
Severance, retention bonuses and other one-time termination benefits	$	5,525	$	7	$	(3,968	)	$	(475	)	$	1,089
Termination of redundant supplier contracts		110		-		(31	)		(36	)		43
Legal fees and other shutdown costs		608		-		(301	)		(55	)		252
	$	6,243	$	7	$	(4,300	)	$	(566	)	$	1,384

Advanced Ceramic Operations	$	(0.6	)	$	4.8		$	1.4		$	9.1
ESK Ceramics		3.9			(15.6	)		6.0			(20.1	)
Semicon Associates		0.4			0.2			0.6			0.5
Thermo Materials		6.0			3.6			10.3			7.2
Ceradyne Canada		(0.5	)		(4.9	)		(1.4	)		(5.6	)
Boron		(1.0	)		(1.9	)		(2.2	)		(3.6	)
Inter-segment elimination		(0.2	)		0.1			(0.2	)		-
Total	$	8.0		$	(13.7	)	$	14.5		$	(12.5	)