8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  March 16, 2005

INTERMAGNETICS GENERAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	001-11344	14-1537454
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)
450 Old Niskayuna Road Latham, New York  12110
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code:  (518) 782-1122
(Former Name or Former Address, if Changed Since Last Report)

          Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

	Written communicRations pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02  Results of Operations and Financial Condition.

          On March 16, 2005, Intermagnetics issued a press release announcing its financial performance for its third quarter period.  On March 17, 2005, Intermagnetics will conduct a conference call beginning at 11:00 a.m. EST concerning its performance for the period ended February 27, 2005.  A copy of the press release is attached to this Form 8-K as Exhibit 99.1.

          The information furnished in this Form 8-K and the Exhibits attached hereto shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. 

Item 9.01          Financial Statements and Exhibits.

(c)     Exhibits

Exhibit 99.1 Press release of Intermagnetics dated March 16, 2005 containing financial results for its third quarter period ended February 27, 2005 of fiscal year 2005.

SIGNATURES

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

	INTERMAGNETICS GENERAL CORPORATION
	By:	/s/ MICHAEL K. BURKE
		Michael K. Burke
		Executive Vice President
		and Chief Financial Officer
Dated:  March 17, 2005

EXHIBIT INDEX

Exhibit Number	Description
Exhibit 99.1	Press release of Intermagnetics dated March 16, 2005 containing financial results for its third quarter period ended February 27, 2005 of fiscal year 2005

EX-99

EXHIBIT 99.1

FOR IMMEDIATE RELEASE	Contact:	Michael Burke
NASDAQ: IMGC		Exec. VP & CFO
	Contact:	Cathy Yudzevich
		IR Manager
		(518) 782-1122

INTERMAGNETICS REPORTS STRONG Q3 NET INCOME

• Q3 Operating EPS $0.28 Before Gain On Polycold Sale, Acquisition-Related Charges, Certain Non-Cash Items

• Solid Performances By All Business Segments Push Quarterly Revenues Past $75 Million

• Healthy Cash Flow, Proceeds From Sale Of Division Facilitate Significant Reduction Of Acquisition-Related Debt During Quarter

• Strong Performance Reaffirms Outlook For Growth

LATHAM, NY, March 16, 2005—Intermagnetics General Corporation (NASDAQ: IMGC), today reported that third-quarter net income increased 55 percent to $8.0 million, or $0.28 per diluted share—excluding the gain on the sale of a division, acquisition- and integration-related expenses and certain non-cash items. That compares with normalized net income of $5.2 million, or $0.20 per diluted share, a year earlier. Reported net income for the quarter ended February 27, 2005, was $24.7 million, or $0.87 per diluted share. Third-quarter net sales were $75.1 million, compared with $43.1 million the prior year.

For the first nine months of fiscal 2005, normalized net income before items climbed to $21.5 million, or $0.77 per diluted share from $10 million, or $0.39 per diluted share, for the same normalized period in fiscal 2004. Reported net income for the nine months of fiscal 2005 was $34.2 million, or $1.22 per diluted share. Net sales for the nine-month period totaled $210 million, nearly double the $105.3 million of the year-earlier period.

“All of our business segments, both historical and those acquired in 2004, delivered outstanding results, contributing to a quarterly performance that exceeded our earlier expectations,” said Glenn H. Epstein, chairman and chief executive officer. “With the Polycold divestiture completed, we now have an established platform to continue growing our Medical Devices businesses. We have diversified our customer base by achieving a better balance in serving both OEMs and end users, added significant new product lines and strengthened a distribution channel that connects us directly with the marketplace.

“Our balance sheet also improved substantially as a result of strong cash flow which, coupled with the proceeds from the sale of Polycold, enabled us to pay down the entire ‘revolving’ portion of our existing $130 million credit facility, leaving about $21 million in long-term debt,” Epstein said. “Looking back, our financings related to the 2004 acquisitions of Invivo and MRI Devices totaled around $112 million, so in a little more than a year we have reduced that debt by more than 80 percent. Our interest expense will now be dramatically reduced, and we are extremely well positioned to pursue a range of strategic initiatives to augment the future growth prospects of Intermagnetics.”

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Businesses Deliver Solid Results

Epstein remarked that all of the company’s business segments had a strong third quarter, exceeding earlier projections of “seasonality” that were expected to affect Q3 revenues, with solid prospects for continued growth.

Magnet systems sales rose to $30.1 million, nearly 10 percent over the prior-year third quarter, and contributed a greater than 15 percent increase in operating profit.

“Our high-field 3.0 Tesla magnets continue to perform well and provide a clearly differentiated platform for our major magnet customer,” Epstein said. “The 1.0 Tesla high-field open magnet continues to draw significant end-user attention and remains on track to move into commercial production during our next fiscal year. We expect record results for this segment during the fourth quarter with year-over-year growth well in excess of 20 percent. In fact, the outlook and product mix for this business have resulted in our initiating a multi-stage capital and personnel expansion plan over the next two years to match production capacity with anticipated increases in demand.”

Medical Devices sales, boosted by the additional revenue from the former Invivo and MRI Devices businesses, were $35.3 million in the third quarter. Last year’s quarterly results included only about one month of Invivo sales and no results from MRID. For the nine months of fiscal 2005, Medical Devices sales were $94.8 million. Year-to-date results in fiscal 2005 include nine months of Invivo operations and slightly more than seven months of MRID operations.

“Consolidated segment-wide revenues were ahead of plan during the quarter, as our earlier discussion of seasonality did not diminish Q3 sales as expected,” Epstein stated. “We are still observing the yearly cycles in our new business model, but with the favorable Q3 revenue performance, we now expect a relatively modest ramp up of revenues for the balance of the fiscal year. Also, in view of the dynamics of our business model, we are examining the need to ‘rebalance’ our product portfolio and distribution priorities to maximize the efficiency of our sales and marketing infrastructure. Experience to date, as demonstrated by our above-target gross margin performance, has shown that the unique differentiation of our Diagnostic Imaging product lines have more leverage per incremental sale than typical Patient Care products. This was one of the potential benefits targeted when we created a comprehensive segment management structure within Medical Devices, now under the leadership of the newly appointed president, Mike Mainelli.”

The divested Polycold Systems subsidiary, formerly comprising the Instrumentation segment, contributed $6.1 million in revenue and about $1.5 million in operating profit during a partial quarter of operations as part of Intermagnetics. Year-to-date sales were $23.4 million, with an operating profit of $6.3 million.

“Polycold’s order rate and revenues slowed slightly during the quarter and accounted for about $0.03 in earnings per share for the third quarter of fiscal 2005 and nearly $0.15 year-to-date,” Epstein said. “By utilizing the proceeds from the divestiture to substantially reduce our debt, we will save approximately $0.05 to $0.07 in interest costs over the coming year. This brings the net effect of the Polycold sale to a reduction of ongoing annualized earnings in the range of $0.08 to $0.10 per share.”

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Intermagnetics’ Energy Technology subsidiary, SuperPower, Inc., continued to make substantial progress in developing commercially viable second-generation (2G) High Temperature Superconductor (HTS) wire and related devices. Third-quarter revenue was $3.6 million, compared with $1.5 million the prior year. Intermagnetics’ investment in their developmental operations decreased to $1.3 million from $1.7 million as revenue from third-party sources accelerated. SuperPower also recorded new orders during the quarter for ongoing development programs that are expected to support project activities at current run-rates through FY2006.

SuperPower is in the major construction and installation phase of the Albany HTS Cable Project, with significant milestones toward the physical demonstration of HTS technology in Niagara Mohawk’s power grid scheduled throughout the balance of calendar year 2005. SuperPower also has begun to make deliveries of 2G HTS wire to multiple third-party customers as it prepares to begin commercial operations during 2006.

Performance Measures Advance Against Goals

“Our overall margins were exceptionally strong during the third quarter due principally to favorable product mix,” Epstein said. “This higher-than-target performance had a beneficial impact on many of our operating metrics and resulted from conscious efforts to focus on our most profitable product opportunities. We view these key performance metrics on a normalized basis inclusive of partial-year contributions from Polycold.

“Gross margin was 49 percent, well ahead of our recently increased goal of 45 percent,” said Epstein. “We now believe that certain areas of our newly evolved business model are capable of sustained margin contributions above the current target, and we are actively reviewing this metric for fiscal year 2006 objectives. This may come with some modest tradeoffs in nearer-term revenue growth, but we believe that targeted investment in the somewhat longer sales cycle of higher margin business to be in the best long-term interest of shareholders.”

Third-quarter operating income as a percentage of sales was 18 percent, exceeding the company’s ongoing target of 15 percent. The company also is actively reviewing this metric, with the objective of raising the target next year as FY06 budgets are finalized.

“Return on operating assets reached 58 percent against a goal of 50 percent,” Epstein said. “The 50 percent level remains the long-term target for the company, as we currently plan to increase the asset base in our manufacturing infrastructure over the coming year to ensure that we can continue to meet the demands of our key customers.”

Return on equity continues a favorable trend, 13 percent, versus the recently raised goal of 15 percent.

“Our efficiency in utilizing working capital was 17 percent, as we strive for continued improvement toward the goal of requiring less than 15 cents for each dollar of sales,” Epstein stated. “One of our objectives remains to adjust the medical devices segment companies’ inventories and accounts receivable to the levels that we consider more appropriate for Intermagnetics.”

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Forecast For Fiscal Year 2005 Updated, Ongoing Growth Objectives Reiterated

“We remain confident that fiscal 2005 will be a record year across all business segments—with operating EPS in a tightened range of $1.04 to $1.06 per share, including the partial-year Polycold contribution,” Epstein said. “Revenues for the year are now anticipated to be about $285 million, versus the previous forecast of $290 million, as we fine-tune product rationalization plans within the Medical Devices business. MRI magnet revenue contributions are expected to be at above-market growth levels.

“We also believe that the new portfolio of Intermagnetics’ businesses is well positioned to provide 15 percent growth in revenues—based on fiscal year 2005 normalized levels, with Polycold contributions subtracted—of slightly more than $260 million,” Epstein said. “We also anticipate enhanced operating leverage from sales growth that should result in 15 to 20 percent growth in operating EPS—also based on fiscal year 2005 normalized levels, with Polycold contributions subtracted and interest savings credited—in the range of $0.94 to $0.98 per share.”

Operating EPS Reconciliation Information

Operating EPS excludes acquisition-related and non-cash performance-based stock compensation and other charges or benefits.

Acquisition charges related to Invivo have now been finalized at $0.06 for fiscal 2005, up from the prior estimate of $0.03 due to final inventory and warranty assessments on legacy products that were not attributable to goodwill.

Charges related to the acquisition of MRI Devices (MRID) are still expected to total about $0.12 to $0.14 for the year. MRID’s non-cash transaction expenses result from a change in accounting for stock distributed to the MRID employee base by the original owners of MRID and a modest write-down of acquired assets (value of MRID name) due to the re-branding of MRID to Invivo Diagnostic Imaging. Charges totaled about $0.09 in the second quarter (including the MRID employee-related stock distribution charge of about $0.04 and about $0.02 resulting from the asset write-down) and about $0.02 in the third quarter with the balance expected to be completed during the fourth quarter.

The net benefit of the Polycold divestiture was $0.69 resulting from the gain on the sale and $0.02 of charges not attributable to deal costs, all recognized in Q3.

The estimated non-cash charge for Intermagnetics’ performance-based restricted stock plan has declined from prior estimates—to about $3.2 million post-tax—based on the closing stock price on March 16, 2005. The company continues to plan charging this $0.12 annualized estimate as evenly as practical over the current fiscal year ($0.03 recognized in Q1, $0.04 in Q2 and $0.02 in Q3).

Operating EPS also excludes a non-cash gain of $0.03 resulting from a favorable adjustment to an environmental reserve recognized in Q1.

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Operating EPS for fiscal 2006 will exclude the estimated non-cash charge for performance-based restricted stock that is currently expected to vest if forecast performance is achieved. A current estimate for the non-cash charge, based on the closing stock price on March 16, 2005, is $5.1 million post-tax, or approximately $0.18 per share expected to be spread evenly over fiscal 2006.

Conference Call Tomorrow

The company will discuss its third-quarter results as well as other developments during a conference call Thursday, March 17th, beginning at 11 a.m. EST. The call will be broadcast live and archived over the Internet through the company’s web site www.intermagnetics.com under the Investor Relations section. The domestic dial-in number for the live call is (877) 407-8029. The international dial-in number is (201) 689-8029. No conference code is required for the live call. The company will also make available a digital replay beginning Thursday at 2 p.m. EST through midnight March 24, 2005, by dialing (201) 612-7415 - account number 249 and requesting conference 140539.

Intermagnetics (www.intermagnetics.com) draws on the financial strength, operational excellence and technical leadership in the market of Magnetic Resonance Imaging (MRI) as well as its expanding businesses within Medical Devices that encompass Invivo Diagnostic Imaging (focusing on MRI components & imaging sub-systems) and Invivo Patient Care (focusing on monitoring & other patient care devices). Intermagnetics is also a prominent participant in superconducting applications for Energy Technology. The company has a more than 30-year history as a successful developer, manufacturer and marketer of superconducting materials, high-field magnets, medical systems & components and other specialized high-value added devices.

Safe Harbor Statement: The statements contained in this press release that are not historical fact are “forward-looking statements” which involve various important assumptions, risks, uncertainties and other factors. These forward-looking statements are based on currently available competitive, financial and economic data and management’s views and assumptions regarding future events. Such forward-looking statements are inherently uncertain and are subject to risks, including but not limited to: the company’s ability to meet the performance, quality and price requirements of our customers, develop new products and maintain gross margin levels through continued production cost reductions and manufacturing efficiencies; the ability of the company’s largest customer to maintain and grow its share of the market for MRI systems; the company’s ability to successfully integrate acquisitions; and the company’s ability to invest sufficient resources in and obtain third-party funding for its HTS development efforts and avoid the potential adverse impact of competitive emerging patents; as well as other risks and uncertainties set forth herein and in the company’s Annual Report on Forms 10-K and 10-Q. Except for the company’s continuing obligation to disclose material information under federal securities law, the company is not obligated to update its forward-looking statements even though situations may change in the future. The company qualifies all of its forward-looking statements by these cautionary statements.

- Tables Follow -

INTERMAGNETICS GENERAL CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in Thousands, Except Per Share Amounts)

(Unaudited)

	Three Months Ended						Nine Months Ended
	February 27, 2005			February 22, 2004			February 27, 2005			February 22, 2004
Revenues	$	68,974		$	37,561		$	186,673		$	87,332
Cost of revenues		36,535			21,284			99,889			51,806
Gross margin		32,439			16,277			86,784			35,526
Product research and development		6,399			2,952			17,546			8,017
Selling, general and administrative:
Stock based compensation		1,064			201			3,757			442
Other selling, general and administrative		15,952			6,782			43,314			15,222
Amortization of intangible assets		1,661			774			4,718			1,671
Impairment of intangible assets								913
		25,076			10,709			70,248			25,352
Operating income		7,363			5,568			16,536			10,174
Interest and other income		74			176			486			695
Interest and other expense		(1,109	)		(294	)		(3,238	)		(519	)
Gain on prior period sale of division								1,094
Income from continuing operations before income taxes		6,328			5,450			14,878			10,350
Provision for income taxes		1,481			1,891			4,238			3,591
INCOME FROM CONTINUING OPERATIONS	$	4,847		$	3,559		$	10,640		$	6,759
Discontinued operations:
Income from operations of discontinued subsidiary including gain on sale of $33,375,000 in FY’05		35,133			1,105			40,725			3,360
Provision for income taxes		15,245			383			17,184			1,166
INCOME FROM DISCONTINUED OPERATIONS	$	19,888			722		$	23,541			2,194
NET INCOME	$	24,735		$	4,281		$	34,181		$	8,953
Basic Net Income per Common Share:
Continuing operations	$	0.17		$	0.14		$	0.39		$	0.27
Discontinued operations		0.71			0.03			0.85			0.09
Basic Net Income per Common Share	$	0.88		$	0.17		$	1.24		$	0.36
Diluted Net Income per Common Share:
Continuing operations	$	0.17		$	0.14		$	0.38		$	0.27
Discontinued operations		0.70			0.03			0.84			0.09
Diluted Net Income per Common Share	$	0.87		$	0.17		$	1.22		$	0.35
Shares:
Basic		28,020,094			25,120,424			27,563,179			24,971,697
Diluted		28,526,926			25,626,969			28,028,870			25,427,747

INTERMAGNETICS GENERAL CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS (INCL. POLYCOLD)*

(Dollars in Thousands, Except Per Share Amounts)

(Unaudited)

	Three Months Ended						Nine Months Ended
	February 27, 2005			February 22, 2004			February 27, 2005			February 22, 2004
Revenues	$	75,123		$	43,133		$	210,027		$	105,296
Cost of revenues		39,965			24,691			112,645			62,791
Gross margin		35,158			18,442			97,382			42,505
Product research and development		6,545			3,148			18,053			8,815
Selling, general and administrative:
Stock based compensation		1,064			201			3,757			442
Other selling, general and administrative		16,754			7,633			46,012			18,002
Amortization of intangible assets		1,671			786			4,752			1,707
Impairment of intangible assets								913
		26,034			11,768			73,487			28,966
Operating income		9,124			6,674			23,895			13,539
Interest and other income		74			176			487			695
Interest and other expense		(1,112	)		(295	)		(3,246	)		(524	)
Gain on sale of subsidiary		33,375						33,375
Gain on prior period sale of division								1,094
Income before income taxes		41,461			6,555			55,605			13,710
Provision for income taxes		16,726			2,274			21,424			4,757
NET INCOME	$	24,735		$	4,281		$	34,181		$	8,953
Earnings per Common Share:
Basic	$	0.88		$	0.17		$	1.24		$	0.36
Diluted	$	0.87		$	0.17		$	1.22		$	0.35
Shares:
Basic		28,020,094			25,120,424			27,563,179			24,971,697
Diluted		28,526,926			25,626,969			28,028,870			25,427,747

* We believe this measure provides shareholders and prospective shareholders with important information that is more representative of the Company’s  performance. This information is provided to allow the reader to understand the effectiveness or ineffectiveness of the Company by giving a more detailed explanation of revenues, cost of revenues, and expenses.

INTERMAGNETICS GENERAL CORPORATION

RECONCILING STATEMENTS OF OPERATIONS (INCL. POLYCOLD)*

(Dollars in Thousands, Except Per Share Amounts)

(Unaudited)

	Three Months Ended						Nine Months Ended
	February 27, 2005			February 22, 2004			February 27, 2005			February 22,
Operations without Acquisition, Integration, Sale and Non-cash items:
Revenues	$	75,123		$	43,133		$	210,027		$	105,296
Cost of revenues		38,140			24,691			110,608			62,791
Gross margin		36,983			18,442			99,419			42,505
Product research and development		6,545			3,148			18,035			8,815
Selling, general and administrative:		15,111			6,460			40,853			16,829
Amortization of intangible assets		1,671			786			4,752			1,707
		23,327			10,394			63,640			27,351
Operating income		13,656			8,048			35,779			15,154
Interest and other income		74			176			487			695
Interest and other expense		(1,112	)		(295	)		(3,246	)		(524	)
Income before income taxes		12,618			7,929			33,020			15,325
Provision for income taxes		4,614			2,751			11,484			5,319
NET INCOME	$	8,004		$	5,178		$	21,536		$	10,006
Earnings per Common Share:
Basic	$	0.29		$	0.21		$	0.78		$	0.40
Diluted	$	0.28		$	0.20		$	0.77		$	0.39
Shares:
Basic		28,020,094			25,120,424			27,563,179			24,971,697
Diluted		28,526,926			25,626,969			28,028,870			25,427,747

	Three Months Ended						Nine Months Ended
	February 27, 2005			February 22, 2004			February 27, 2005			February 22, 2004
Reconciliation of Financial Statements to GAAP Equivalent:
Pro-forma net income	$	8,004		$	5,178		$	21,536		$	10,006
Gain on sale of subsidiary		33,375						33,375
Acquisition and integration related charges		(3,468	)		(1,173	)		(7,214	)		(1,173	)
Non-cash Items:
Gain on prior period sale of division								1,094
Stock based compensation		(1,064	)		(201	)		(3,757	)		(442	)
Amortization of intangible assets								(913	)
Provision for taxes relating to pro-forma adjustments		(12,112	)		477			(9,940	)		562
As Reported Net Income	$	24,735		$	4,281		$	34,181		$	8,953

* We believe this measure provides shareholders and prospective shareholders with important information that is more representative of the Company’s  performance. This information is provided to allow the reader to understand the effectiveness or ineffectiveness of the Company by giving a more detailed explanation of revenues, cost of revenues, and expenses.

INTERMAGNETICS GENERAL CORPORATION
Condensed Consolidated Balance Sheets
(Dollars in Thousands)
(unaudited)

	February 27, 2005		May 30, 2004
ASSETS
CURRENT ASSETS
Cash and short-term investments	$	3,719	$	11,868
Trade accounts receivable		57,901		41,218
Costs and estimated earnings in excess of billings on uncompleted contracts		692		127
Inventories		39,541		27,037
Income tax receivable				4,285
Prepaid expenses and other		11,228		8,941
TOTAL CURRENT ASSETS		113,081		93,476
PROPERTY, PLANT AND EQUIPMENT, net		41,970		36,736
GOODWILL, INTANGIBLE AND OTHER ASSETS		226,885		154,723
	$	381,936	$	284,935
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Current portion of long-term debt	$	8,169	$	4,171
Accounts payable		14,874		10,242
Salaries, wages and related items		14,155		10,799
Customer advances and deposits		2,087		1,302
Product warranty reserve		4,276		3,189
Income tax payable		17,468
Other liabilities and accrued expenses		8,292		11,753
TOTAL CURRENT LIABILITIES		69,321		41,456
LONG-TERM DEBT, less current portion		21,202		57,635
NOTE PAYABLE		5,000
DEFERRED INCOME TAXES		19,450		10,050
DERIVATIVE LIABILITY		83		225
SHAREHOLDERS’ EQUITY		266,880		175,569
	$	381,936	$	284,935

INTERMAGNETICS GENERAL CORPORATION

SUMMARY OF PERFORMANCE AGAINST GOALS

	Three Months Ended
	February 27, 2005			February 22, 2004			Goal
Gross Margin (2)		49	%		43	%		45	%
Operating Income:
Percent of Sales (2)		18	%		19	%		15	%
Percent of Net Operating Assets (1) (2)		58	%		59	%		50	%
Return on Equity (1) (2)		13	%		12	%		15	%
Working Capital Efficiency (Working capital, less cash divided by net sales) (1)		17	%		13	%		15	%

(1)	Based on annualized data
(2)	Based on normalized data

SEGMENT DATA*

	Three Months Ended February 27, 2005
(Dollars in Thousands)	Magnetic Resonance Imaging		Medical Devices		Instrumentation		Energy Technology			Total
Net sales to external customers:
Magnet systems	$	30,128								$	30,128
Patient Monitors & RF Coils			$	35,290							35,290
Refrigeration equipment					$	6,149					6,149
Other							$	3,556			3,556
Total		30,128		35,290		6,149		3,556			75,123
Segment operating profit (loss)		8,496		4,977		1,510		(1,327	)		13,656
Total assets	$	290,642	$	79,804			$	11,490		$	381,936

`	February 22, 2004
	Magnetic Resonance Imaging		Medical Devices		Instrumentation		Energy Technology			Total
Net sales to external customers:
Magnet systems	$	27,514								$	27,514
Patient Monitors & RF Coils			$	8,527							8,527
Refrigeration equipment					$	5,573					5,573
Other							$	1,519			1,519
Total		27,514		8,527		5,573		1,519			43,133
Segment operating profit (loss)		8,416		576		760		(1,704	)		8,048
Total assets	$	209,861	$	44,102	$	9,575	$	9,324		$	272,862

	Nine Months Ended February 27, 2005
(Dollars in Thousands)	Magnetic Resonance Imaging		Medical Devices		Instrumentation		Energy Technology			Total
Net sales to external customers:
Magnet systems	$	83,736								$	83,736
Patient Monitors & RF Coils			$	94,806							94,806
Refrigeration equipment					$	23,354					23,354
Other							$	8,131			8,131
Total		83,736				23,354		8,131			210,027
Segment operating profit (loss)		19,872		14,746		6,333		(5,172	)		35,779
Total assets	$	290,642	$	79,804			$	11,490		$	381,936

	February 22, 2004
	Magnetic Resonance Imaging		Medical Devices		Instrumentation		Energy Technology			Total
Net sales to external customers:
Magnet systems	$	67,585								$	67,585
Patient Monitors & RF Coils			$	15,218							15,218
Refrigeration equipment					$	17,965					17,965
Other							$	4,528			4,528
Total		67,585		15,218		17,965		4,528			105,296
Segment operating profit (loss)		15,792		1,165		2,316		(4,141	)		15,132
Total assets	$	209,861	$	44,102	$	9,575	$	9,324		$	272,862

	Three Months Ended
	February 27, 2005			February 22, 2004
Reconciliation of income before income taxes:
Total profit from reportable segments	$	13,656		$	8,048
Acquisition / Integration / Sale related charges		(3,468	)		(1,173	)
Non-cash stock based compensation		(1,064	)		(201	)
Intercompany profit in ending inventory
Net Operating Profit		9,124			6,674
Interest and other income		74			176
Interest and other expense		(1,112	)		(295	)
Gain on sale of subsidiary		33,375
Adjustment to gain on prior period sale of division
Income before income taxes	$	41,461		$	6,555

	Nine Months Ended
	February 27, 2005			February 22, 2004
Reconciliation of income before income taxes:
Total profit from reportable segments	$	35,779		$	15,132
Acquisition / Integration / Sale related charges		(8,127	)		(1,173	)
Non-cash stock based compensation		(3,757	)		(442	)
Intercompany profit in ending inventory					22
Net Operating Profit		23,895			13,539
Interest and other income		487			695
Interest and other expense		(3,246	)		(524	)
Gain on sale of subsidiary		33,375
Adjustment to gain on prior period sale of division		1,094
Income before income taxes	$	55,605		$	13,710

* We believe this measure provides shareholders and prospective shareholders with important information that is more representative of the Company’s performance. This information is provided to allow the reader to understand the effectiveness or ineffectiveness of the Company by giving a more detailed explanation of revenues, cost of revenues, and expenses.

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