Investment in Morion, Inc.

3 Months Ended

Jul. 31, 2012

Investment in Morion, Inc.

Note F – Investment in Morion, Inc.

The Company has an investment in Morion, Inc., a privately-held Russian company, which manufactures high precision quartz resonators and crystal oscillators. The Company’s investment consists of 4.6% of Morion’s outstanding shares, accordingly, the Company accounts for its investment in Morion on the cost basis. This investment is included in investment in affiliates in the accompanying balance sheets.

During the three months ended July 31, 2012 and 2011, the Company acquired product from Morion in the aggregate amount of approximately $12,000 and $85,000, respectively, and the Company sold product to Morion in the aggregate amount of approximately $30,000 and $766,000, respectively. At July 31, 2012, accounts receivable included $56,000 due from Morion and $6,000 was payable to Morion.