The Securities and Exchange Commission has not necessarily reviewed the information in this filing and has not determined if it is accurate and complete.
The reader should not assume that the information is accurate and complete.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 13F

FORM 13F INFORMATION TABLE
OMB APPROVAL
OMB Number: 3235-0006
Estimated average burden
hours per response: 23.8
COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 COLUMN 8
VALUE SHRS OR SH/ PUT/ INVESTMENT OTHER VOTING AUTHORITY
NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DISCRETION MANAGER SOLE SHARED NONE
3M COMPANY COM 88579Y101 365 3,340 SH   SOLE   2,520 0 820
AAON, INC COM 000360206 18,482 558,693 SH   SOLE   512,221 0 46,472
ADTRAN INC COM COM 00738A106 1,432 58,200 SH   SOLE   58,200 0 0
ADVANCED ENERGY INDS COM COM 007973100 13,990 803,565 SH   SOLE   745,415 0 58,150
AFLAC INC. COM 001055102 12,670 218,000 SH   SOLE   218,000 0 0
ALCOA INC COM COM 013817101 335 42,830 SH   SOLE   42,650 0 180
ALLEGHENY TECHNOLOGIES INC. COM 01741R102 388 14,750 SH   SOLE   14,750 0 0
AVON PRODUCTS INC COM 054303102 3,829 182,097 SH   SOLE   182,097 0 0
BANK NEW YORK MELLON CORP COM 064058100 535 19,065 SH   SOLE   18,810 0 255
BEBE STORES INC. COM 075571109 11,810 2,105,241 SH   SOLE   1,881,521 0 223,720
CA INC COM 12673P105 19,721 688,810 SH   SOLE   642,830 0 45,980
CAMBREX CORP COM 132011107 951 68,104 SH   SOLE   68,104 0 0
CHESAPEAKE ENERGY CORP COM 165167107 11,617 570,000 SH   SOLE   570,000 0 0
CHEVRONTEXACO CORP COM COM 166764100 538 4,550 SH   SOLE   3,725 0 825
CHICOS FAS INC COM COM 168615102 6,199 363,340 SH   SOLE   363,340 0 0
CHUBB CORP COM COM 171232101 590 6,975 SH   SOLE   5,675 0 1,300
CITY HOLDING COM 177835105 14,949 383,797 SH   SOLE   351,766 0 32,031
CLIFFS NATURAL RESOURCES INC COM 18683K101 12,464 767,000 SH   SOLE   767,000 0 0
CORNING INC COM 219350105 21,565 1,515,465 SH   SOLE   1,515,065 0 400
CROCS INC. COM 227046109 15,794 957,200 SH   SOLE   892,175 0 65,025
DIANA SHIPPING INC. COM Y2066G104 14,990 1,493,040 SH   SOLE   1,366,235 0 126,805
DIME COMMUNITY BANCSHARES COM 253922108 16,413 1,071,364 SH   SOLE   981,608 0 89,756
DOUBLE EAGLE PETROLEUM COM 258570209 236 59,809 SH   SOLE   59,809 0 0
DOVER CORPORATION COM 260003108 528 6,800 SH   SOLE   6,800 0 0
ENCORE WIRE CORP COM 292562105 16,560 485,623 SH   SOLE   444,769 0 40,854
ENNIS,INC COM COM 293389102 40,716 2,354,867 SH   SOLE   2,281,095 0 73,772
EVOLUTION PETROLEUM CORP COM 30049A107 2,126 194,888 SH   SOLE   173,023 0 21,865
EXELON CORP COM COM 30161N101 13,919 450,760 SH   SOLE   450,630 0 130
FLIR SYSTEMS INC COM 302445101 17,916 664,300 SH   SOLE   664,300 0 0
FORD MOTOR CO COM 345370860 16,411 1,060,815 SH   SOLE   952,060 0 108,755
GAP INC DEL COM COM 364760108 287 6,875 SH   SOLE   6,875 0 0
GENESCO INC COM COM 371532102 5,248 78,345 SH   SOLE   68,215 0 10,130
GLAXOSMITHKLINE PLC SPONSORED COM 37733W105 15,206 304,309 SH   SOLE   281,669 0 22,640
GRAHAM CORP COM COM 384556106 21,790 725,594 SH   SOLE   669,328 0 56,266
GRANITE CONSTRUCTION INC COM 387328107 14,106 474,008 SH   SOLE   435,770 0 38,238
GULF ISLAND FABRICATN COM COM 402307102 9,526 497,446 SH   SOLE   466,398 0 31,048
HALLMARK FINANCIAL SERVICES IN COM 40624Q203 14,521 1,588,688 SH   SOLE   1,437,454 0 151,234
HARMAN INTERNATIONAL COM 413086109 21,579 398,133 SH   SOLE   373,513 0 24,620
HARTFORD FINANCIAL SVCS GRP COM 416515104 17,624 570,000 SH   SOLE   570,000 0 0
HCC INSURANCE HOLDINGS INC COM 404132102 12,362 286,750 SH   SOLE   286,550 0 200
HELMERICH & PAYNE COM 423452101 501 8,025 SH   SOLE   8,025 0 0
HOOKER FURNITURE CORP. COM 439038100 15,648 962,363 SH   SOLE   851,685 0 110,678
HORACE MANN EDUCATORS COM 440327104 17,386 713,117 SH   SOLE   659,800 0 53,317
HOUSTON WIRE & CABLE CO COM 44244K109 11,956 863,877 SH   SOLE   774,457 0 89,420
HUNTINGTON BANCSHARES INC. COM 446150104 9,180 1,165,000 SH   SOLE   1,165,000 0 0
INTEL CORP COM COM 458140100 23,346 963,923 SH   SOLE   903,738 0 60,185
ITRON INC COM COM 465741106 444 10,475 SH   SOLE   10,475 0 0
J P MORGAN CHASE & CO COM COM 46625H100 13,929 263,850 SH   SOLE   238,260 0 25,590
JACOBS ENGINEERING GROUP, INC COM 469814107 551 10,000 SH   SOLE   10,000 0 0
JOHNSON & JOHNSON COM COM 478160104 3,395 39,540 SH   SOLE   21,895 0 17,645
JOS A BANK CLOTHIERS INC COM 480838101 9,545 230,992 SH   SOLE   210,727 0 20,265
JOY GLOBAL INC COM 481165108 11,647 240,000 SH   SOLE   240,000 0 0
KMG CHEMICALS INC. COM 482564101 17,161 813,315 SH   SOLE   750,926 0 62,389
KNOLL INC COM 498904200 12,102 851,632 SH   SOLE   792,249 0 59,383
LANDEC CORP COM 514766104 17,279 1,308,027 SH   SOLE   1,211,387 0 96,640
LEAPFROG ENTERPRISES INC. COM 52186N106 15,880 1,613,855 SH   SOLE   1,471,575 0 142,280
LINCOLN ELECTRIC HOLDINGS COM 533900106 326 5,700 SH   SOLE   5,700 0 0
LOWES COS INC COM COM 548661107 275 6,715 SH   SOLE   6,715 0 0
MCGRATH RENTCORP COM 580589109 16,512 483,383 SH   SOLE   444,413 0 38,970
MET PRO CORP COM 590876306 5,961 443,555 SH   SOLE   443,555 0 0
METHODE ELECTRS INC COM COM 591520200 45,177 2,655,884 SH   SOLE   2,554,818 0 101,066
MICREL INC. COM 594793101 14,411 1,458,605 SH   SOLE   1,334,705 0 123,900
MICROSOFT CORP COM COM 594918104 12,402 359,175 SH   SOLE   359,000 0 175
MOSIAC CO COM 61945C103 10,467 194,525 SH   SOLE   194,525 0 0
NEW YORK COMNTY BANCORP COM 649445103 539 38,510 SH   SOLE   38,510 0 0
NEWELL RUBBERMAID INC COM 651229106 15,750 600,000 SH   SOLE   600,000 0 0
NEWPARK RESOURCES INC. COM 651718504 18,919 1,721,465 SH   SOLE   1,571,975 0 149,490
NOKIA CORP SPONSORED ADR COM 654902204 22,985 6,145,845 SH   SOLE   5,956,410 0 189,435
NUCOR CORP COM COM 670346105 459 10,585 SH   SOLE   10,585 0 0
OLYMPIC STEEL INC COM 68162K106 6,815 278,161 SH   SOLE   252,716 0 25,445
OMNICARE INC COM 681904108 15,930 333,900 SH   SOLE   333,900 0 0
OSIRIS THERAPEUTICS INC COM 68827R108 201 20,000 SH   SOLE   20,000 0 0
PEABODY ENERGY CORP COM 704549104 8,579 586,000 SH   SOLE   586,000 0 0
PITNEY BOWES INC. COM 724479100 19,096 1,300,805 SH   SOLE   1,216,060 0 84,745
PLEXUS CORP COM COM 729132100 13,684 457,822 SH   SOLE   422,846 0 34,976
RELIANCE STEEL & ALUMINUM COM 759509102 282 4,300 SH   SOLE   4,300 0 0
RUDOLPH TECHNOLOGIES INC COM 781270103 15,905 1,420,082 SH   SOLE   1,264,418 0 155,664
RUTH'S HOSPITALITY GROUP INC COM 783332109 14,355 1,189,345 SH   SOLE   1,038,330 0 151,015
SANDERSON FARMS INC COM 800013104 14,099 212,270 SH   SOLE   195,520 0 16,750
SCANSOURCE INC. COM 806037107 15,051 470,341 SH   SOLE   438,101 0 32,240
SPARTAN MOTORS INC COM 846819100 16,426 2,684,000 SH   SOLE   2,479,475 0 204,525
SUNCOR ENERGY INC COM 867224107 444 15,050 SH   SOLE   15,050 0 0
SYNAPTICS INC. COM 87157D109 15,876 411,710 SH   SOLE   378,125 0 33,585
SYSCO CORPORTATION COM 871829107 8,126 237,890 SH   SOLE   235,585 0 2,305
TENNANT CO COM 880345103 11,587 240,051 SH   SOLE   219,632 0 20,419
THOR INDUSTRIES INC COM 885160101 653 13,270 SH   SOLE   13,270 0 0
TIDEWATER INC COM COM 886423102 16,274 285,665 SH   SOLE   285,355 0 310
UNISYS CORP COM 909214306 16,089 729,017 SH   SOLE   678,612 0 50,405
UNUM GROUP COM 91529Y106 4,151 141,330 SH   SOLE   87,895 0 53,435
US ECOLOGY INC COM 91732J102 35,478 1,292,926 SH   SOLE   1,240,349 0 52,577
VAALCO ENERGY INC COM 91851C201 11,824 2,067,071 SH   SOLE   1,881,523 0 185,548
VASCO DATA SECURITY COM 92230Y104 12,374 1,489,000 SH   SOLE   1,356,370 0 132,630
VONAGE HOLDINGS CORP COM 92886T201 12,353 4,364,875 SH   SOLE   3,907,575 0 457,300
WELLS FARGO & CO NEW COM COM 949746101 605 14,665 SH   SOLE   14,665 0 0
WESTMORELAND COAL CO COM COM 960878106 264 23,488 SH   SOLE   23,488 0 0
WINNEBAGO INDUSTRIES COM 974637100 16,334 778,164 SH   SOLE   702,244 0 75,920
WMS INDUSTRIES INC. COM 929297109 1,410 55,270 SH   SOLE   55,270 0 0
XEROX CORP COM 984121103 17,017 1,876,200 SH   SOLE   1,876,200 0 0
ARCHER DANIELS 0.875 02-15-14 CONV 039483AW2 47,886 47,500,000 PRN   SOLE   47,500,000 0 0
CADENCE DESIGN SYS INC 1.50 12 CONV 127387AF5 14,346 14,400,000 PRN   SOLE   14,400,000 0 0
CHESAPEAKE ENERGY 2.75 11-15-3 CONV 165167BW6 12,903 13,000,000 PRN   SOLE   13,000,000 0 0
GENERAL CABLE CORP 0.875 11-15 CONV 369300AD0 40,174 40,275,000 PRN   SOLE   40,275,000 0 0
ILLUMINA INC. 0.25 03-15-16 CONV 452327AC3 48,387 44,751,000 PRN   SOLE   44,751,000 0 0
L-3 COMMS 3.00 08-01-35 CONV 502413AW7 32,032 31,500,000 PRN   SOLE   31,500,000 0 0
LAM RESEARCH CORP 0.5 05-15-16 CONV 512807AJ7 29,316 27,887,000 PRN   SOLE   27,887,000 0 0
MOLSON COORS 2.50 07-30-13 CONV 60871RAA8 14,544 14,400,000 PRN   SOLE   14,400,000 0 0
OMNICARE INC 3.25 12-15-35 CONV 681904AL2 18 17,000 PRN   SOLE   0 0 17,000
PEABODY ENERGY CORP 4.75 12-15 CONV 704549AG9 15,469 22,277,000 PRN   SOLE   22,277,000 0 0
TIBCO SOFTWARE INC. 2.25 05-01 CONV 88632QAB9 41,961 43,175,000 PRN   SOLE   43,175,000 0 0