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
AAON INC cs 000360206 487 21,772 SH   SOLE   15,825 0 5,947
ACCO BRANDS CORP cs 00081T108 703 78,000 SH   SOLE   78,000 0 0
ADTRAN INC cs 00738A106 578 26,500 SH   SOLE   26,500 0 0
ADVANCED ENERGY INDS INC cs 007973100 18,585 784,172 SH   SOLE   731,937 0 52,235
AFLAC INC. cs 001055102 14,051 230,000 SH   SOLE   230,000 0 0
ALCOA INC cs 013817101 503 31,830 SH   SOLE   31,650 0 180
ALLEGHENY TECHNOLOGIES INC. cs 01741R102 360 10,350 SH   SOLE   10,350 0 0
ASSURED GUARANTY LTD cs G0585R106 541 20,800 SH   SOLE   20,800 0 0
BANK OF NY MELLON cs 064058100 810 19,965 SH   SOLE   19,710 0 255
BEBE STORES INC cs 075571109 8,071 3,685,334 SH   SOLE   3,432,014 0 253,320
BLACKBERRY LTD cs 09228F103 220 20,000 SH   SOLE   20,000 0 0
BROCADE COMMUNICATIONS SYS cs 111621306 26,264 2,218,252 SH   SOLE   2,218,252 0 0
CA INC cs 12673p105 25,569 839,700 SH   SOLE   793,580 0 46,120
CALLAWAY GOLF CO cs 131193104 16,545 2,148,708 SH   SOLE   1,955,818 0 192,890
CARNIVAL CORP cs 143658300 38,583 851,165 SH   SOLE   820,705 0 30,460
CEDAR REALTY TRUST INC cs 150602209 18,968 2,584,153 SH   SOLE   2,340,033 0 244,120
CHESAPEAKE ENERGY CORP cs 165167107 19,922 1,018,000 SH   SOLE   1,018,000 0 0
CHEVRON CORPORATION cs 166764100 510 4,550 SH   SOLE   3,725 0 825
CHRISTOPHER & BANKS CORP cs 171046105 6,852 1,199,984 SH   SOLE   1,080,949 0 119,035
CLIFFS NATURAL RESOURCES INC cs 18683K101 9,625 1,348,000 SH   SOLE   1,348,000 0 0
CORNING INC cs 219350105 24,092 1,050,665 SH   SOLE   1,050,265 0 400
CROCS INC cs 227046109 12,750 1,020,840 SH   SOLE   953,895 0 66,945
CRYOLIFE INC COM cs 228903100 13,591 1,199,578 SH   SOLE   1,199,578 0 0
DELTIC TIMBER CORP cs 247850100 14,880 217,544 SH   SOLE   193,984 0 23,560
DEVON ENERGY CORPORATION cs 25179M103 628 10,260 SH   SOLE   10,160 0 100
DIANA SHIPPING INC cs y2066g104 11,305 1,684,780 SH   SOLE   1,568,090 0 116,690
DIME COMMUNITY BANCSHRS cs 253922108 16,362 1,005,039 SH   SOLE   919,268 0 85,771
ENCORE WIRE CORP cs 292562105 11,048 295,947 SH   SOLE   270,162 0 25,785
ENNIS INC cs 293389102 40,108 2,977,566 SH   SOLE   2,905,029 0 72,537
EXELON CORPORATION cs 30161n101 32,647 880,440 SH   SOLE   880,210 0 230
FIRSTENERGY CORP cs 337932107 32,621 836,660 SH   SOLE   836,475 0 185
FLIR SYSTEMS INC cs 302445101 24,996 773,625 SH   SOLE   773,625 0 0
FREIGHTCAR AMERICA cs 357023100 17,341 659,106 SH   SOLE   598,296 0 60,810
FUEL TECH INC cs 359523107 96 25,000 SH   SOLE   25,000 0 0
GAP INC cs 364760108 290 6,875 SH   SOLE   6,875 0 0
GLAXOSMITHKLINE cs 37733w105 21,493 502,873 SH   SOLE   482,073 0 20,800
GOLD RESOURCE CORPORATION cs 38068T105 5,305 1,569,394 SH   SOLE   1,569,394 0 0
GRAHAM CORP cs 384556106 11,091 385,489 SH   SOLE   353,374 0 32,115
GRANITE CONST INC cs 387328107 20,529 539,953 SH   SOLE   503,205 0 36,748
GULF ISLAND FABRICATION cs 402307102 9,851 508,057 SH   SOLE   479,509 0 28,548
HALLADOR ENERGY CO cs 40609P105 9,832 893,000 SH   SOLE   780,820 0 112,180
HALLMARK FINL SVCS INC cs 40624q203 20,793 1,719,860 SH   SOLE   1,569,576 0 150,284
HARMAN INTERNATIONAL cs 413086109 5,121 47,993 SH   SOLE   25,703 0 22,290
HARTFORD FINANCIAL SVCS GRP cs 416515104 30,726 737,000 SH   SOLE   737,000 0 0
HELMERICH & PAYNE cs 423452101 258 3,825 SH   SOLE   3,825 0 0
HEWLETT-PACKARD COMPANY cs 428236103 311 7,740 SH   SOLE   7,740 0 0
HOOKER FURNITURE CORP cs 439038100 14,053 818,479 SH   SOLE   714,799 0 103,680
HOUSTON WIRE AND CABLE cs 44244k109 869 72,710 SH   SOLE   72,710 0 0
HUNTINGTON BANCSHARES INC. cs 446150104 25,511 2,425,000 SH   SOLE   2,425,000 0 0
INTEL CORP cs 458140100 14,308 394,257 SH   SOLE   338,797 0 55,460
INTREPID POTASH cs 46121Y102 14,569 1,049,646 SH   SOLE   953,606 0 96,040
ITRON INC cs 465741106 620 14,650 SH   SOLE   14,650 0 0
JACOBS ENGINEERING GROUP, INC cs 469814107 469 10,500 SH   SOLE   10,500 0 0
JPMORGAN CHASE & CO cs 46625h100 3,411 54,510 SH   SOLE   31,030 0 23,480
KMG INC cs 482564101 19,711 985,563 SH   SOLE   925,104 0 60,459
KNOLL INC cs 498904200 18,110 855,443 SH   SOLE   796,195 0 59,248
LANDEC CORP cs 514766104 17,813 1,289,847 SH   SOLE   1,198,932 0 90,915
LEAPFROG ENTERPRISES cs 52186n106 9,420 1,995,685 SH   SOLE   1,860,925 0 134,760
MACK CALI REALTY CORP cs 554489104 15,164 795,599 SH   SOLE   795,324 0 275
MCGRATH RENTCORP cs 580589109 15,846 441,883 SH   SOLE   404,918 0 36,965
MERCURY SYSTEMS INC cs 589378108 13,478 968,253 SH   SOLE   886,413 0 81,840
METHODE ELECTRNCS INC cs 591520200 26,820 734,593 SH   SOLE   699,328 0 35,265
MICREL INC cs 594793101 20,029 1,380,330 SH   SOLE   1,263,575 0 116,755
MICROSOFT CORP cs 594918104 9,980 214,854 SH   SOLE   214,570 0 284
MOSAIC CO cs 61945c103 365 8,000 SH   SOLE   8,000 0 0
MYRIAD GENETICS INC cs 62855j104 20,549 603,305 SH   SOLE   549,695 0 53,610
NEWELL RUBBERMAID INC cs 651229106 24,949 655,000 SH   SOLE   655,000 0 0
NEWPARK RESOURCES INC cs 651718504 13,520 1,417,234 SH   SOLE   1,303,164 0 114,070
NOKIA CORP ADR cs 654902204 3,144 400,000 SH   SOLE   400,000 0 0
NUCOR CORP cs 670346105 544 11,085 SH   SOLE   11,085 0 0
OFFICE DEPOT INC. cs 676220106 446 52,000 SH   SOLE   52,000 0 0
OLYMPIC STEEL INC cs 68162k106 11,927 670,801 SH   SOLE   620,536 0 50,265
OSIRIS THERAPEUTICS INC cs 68827R108 553 34,600 SH   SOLE   34,600 0 0
PC-TEL INC cs 69325Q105 20,468 2,363,512 SH   SOLE   2,363,512 0 0
PEABODY ENERGY CORP cs 704549104 9,274 1,198,135 SH   SOLE   1,120,640 0 77,495
PITNEY BOWES INC cs 724479100 32,304 1,325,580 SH   SOLE   1,242,495 0 83,085
PLEXUS CORP cs 729132100 10,179 247,005 SH   SOLE   226,995 0 20,010
PPL CORP cs 69351T106 29,955 824,520 SH   SOLE   824,335 0 185
QUEST DIAGNOSTICS INC cs 74834L100 33,373 497,655 SH   SOLE   497,655 0 0
RELIANCE STEEL & ALUMINUM cs 759509102 263 4,300 SH   SOLE   4,300 0 0
RUDOLPH TECHNOLOGIES INC cs 781270103 12,927 1,263,675 SH   SOLE   1,130,261 0 133,414
RUTH'S HOSPITALITY GROUP INC cs 783332109 417 27,775 SH   SOLE   2,750 0 25,025
SCANSOURCE INC cs 806037107 14,205 353,715 SH   SOLE   323,655 0 30,060
SILICON IMAGE INC cs 82705T102 14,942 2,706,828 SH   SOLE   2,470,348 0 236,480
SONY CORP ADR cs 835699307 32,363 1,581,000 SH   SOLE   1,581,000 0 0
SPARTAN MOTORS INC cs 846819100 12,029 2,286,897 SH   SOLE   2,154,582 0 132,315
STILLWATER MINING CO cs 86074Q102 17,357 1,177,575 SH   SOLE   1,064,745 0 112,830
SUNCOR ENERGY INC cs 867224107 494 15,550 SH   SOLE   15,550 0 0
SUPERIOR INDUSTRIES cs 868168105 29,206 1,475,806 SH   SOLE   1,475,806 0 0
SYMANTEC CORP cs 871503108 19,549 762,000 SH   SOLE   762,000 0 0
SYNAPTICS INC cs 87157d109 11,036 160,319 SH   SOLE   144,144 0 16,175
TESSERA TECHNOLOGIES INC cs 88164L100 32,446 907,334 SH   SOLE   907,334 0 0
THOR INDUSTRIES INC cs 885160101 350 6,270 SH   SOLE   6,270 0 0
UNISYS CORP cs 909214306 21,595 732,547 SH   SOLE   686,337 0 46,210
UNUM GROUP cs 91529y106 1,748 50,105 SH   SOLE   29,835 0 20,270
US ECOLOGY INC cs 91732j102 5,660 141,079 SH   SOLE   123,724 0 17,355
VAALCO ENERGY INC cs 91851c201 7,365 1,615,229 SH   SOLE   1,564,761 0 50,468
VONAGE HOLDINGS CORP cs 92886t201 18,073 4,743,475 SH   SOLE   4,282,525 0 460,950
WARREN RESOURCES INC cs 93564A100 3,384 2,101,623 SH   SOLE   1,866,103 0 235,520
WELLS FARGO & CO cs 949746101 376 6,865 SH   SOLE   6,865 0 0
WESTMORELAND COAL CO cs 960878106 897 27,000 SH   SOLE   27,000 0 0
WINNEBAGO INDUSTRIES cs 974637100 7,249 333,156 SH   SOLE   305,936 0 27,220
CHESAPEAKE ENERGY 2.75 11-15-3 cv 165167BW6 12,984 13,000,000 PRN   SOLE   13,000,000 0 0
CHESAPEAKE ENERGY CORP 2.5 05- cv 165167BZ9 7,284 7,500,000 PRN   SOLE   7,500,000 0 0
CHESAPEAKE ENERGY CORP 2.5 05- cv 165167CA3 6,268 6,500,000 PRN   SOLE   6,500,000 0 0
NUANCE COMMUNICATIONS 2.75 11- cv 67020YAF7 63,777 63,977,000 PRN   SOLE   63,977,000 0 0
PEABODY ENERGY CORP 4.75 12-15 cv 704549AG9 36,978 70,434,000 PRN   SOLE   70,434,000 0 0
ALEXANDRIA REAL ESTATE PFD cp 015271505 11,643 418,817 SH   SOLE   418,817 0 0
CHESAPEAKE ENERGY PFD CONV 5.0 cp 165167826 13,105 133,031 SH   SOLE   132,701 0 330
CLIFFS NATURAL CONV PFD 7.0% cp 18683K408 22,212 3,315,268 SH   SOLE   3,315,268 0 0
EXELON CORP PFD CONV 6.50% cp 30161N127 5,701 108,600 SH   SOLE   108,600 0 0
FELCOR LODGING TRUST INC SERIE cp 31430F200 24,512 959,755 SH   SOLE   959,755 0 0
NY COMMUNITY CAP TRUST PFD cp 64944P307 16,898 339,661 SH   SOLE   339,661 0 0