(

)

Shareholders’ Equity

Preferred Stock

April 1998,

the Company issued

250,000

shares of its

$.001

par value preferred stock at a price of

$4.00

per share, less issuance costs of

$112,187.

Each share of the preferred stock is convertible into approximately

4.05

shares of common stock at the election of the shareholder. The shares have a liquidation value of

$4.00

per share and

may

pay dividends at the sole discretion of the Company. The Company does

not

anticipate paying dividends to the preferred shareholders in the foreseeable future. Each share of preferred stock is entitled to

one

vote on all matters submitted to a vote of shareholders of the Company. At

March 31, 2018

and

2017,

2,500

shares of the convertible preferred stock remained unconverted and outstanding.

Share Repurchase Plan

November 8, 2006,

the Company's Board of Directors approved a share repurchase plan of up to

$20.0

million. On

October 31, 2008,

November 1, 2010,

and

August 1, 2011,

the Company’s Board of Directors approved an increase under the repurchase plan each for an additional

$20.0

million. The repurchase plan is intended to be implemented through purchases made from time to time in either the open market or through private transactions at the Company's discretion, subject to market conditions and other factors, in accordance with Securities and Exchange Commission requirements.

There can be

assurances as to the precise number of shares that will be repurchased under the share repurchase plan, and the Company

may

discontinue the share repurchase plan at any time subject to compliance with applicable regulatory requirements. Shares purchased pursuant to the share repurchase plan will either be cancelled or held in the Company's treasury. During both fiscal

2018

and

2017

the Company had

share repurchases. At

March 31, 2018

the Company had approximately

$10.2

million remaining under the Company’s share repurchase plan.

Dividends

May 9, 2016,

the Company’s Board of Directors increased the quarterly dividend to

$0.19

per share, then on

May 8, 2017

the Company’s Board of Directors increased the quarterly dividend to

$0.20

per share, and then on

January 22, 2018

the Company’s Board of Directors increased the quarterly dividend to

$0.25

per share, on its common stock. The Company intends to continue to pay regular quarterly dividends; however the declaration and payment of future dividends is discretionary and will be subject to a determination by the Board of Directors each quarter following its review of the Company’s financial performance.

During fiscal

2018,

our Board of Directors declared the following dividends:

Declaration Date	Per Share Dividend		Record Date	Total Amount (In thousands)		Payment Date

May 8, 2017		$0.20	May 19, 2017	$	4,105	May 26, 2017
July 24, 2017		$0.20	August 7, 2017	$	4,121	August 18, 2017
October 23, 2017		$0.20	November 6, 2017	$	4,121	November 17, 2017
January 22, 2018		$0.25	February 5, 2018	$	5,150	February 16, 2018