-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GLwAYf1+RLMDriVId8keijRhAvFpeLuRfrCHu48NEGR4Ebbv51hkw7tv4FZKZ8k9 4t3X8slPJeZ44kU9TR0MCw== 0000950123-09-006412.txt : 20090410 0000950123-09-006412.hdr.sgml : 20090410 20090410165133 ACCESSION NUMBER: 0000950123-09-006412 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20090409 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090410 DATE AS OF CHANGE: 20090410 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BOWNE & CO INC CENTRAL INDEX KEY: 0000013610 STANDARD INDUSTRIAL CLASSIFICATION: COMMERCIAL PRINTING [2750] IRS NUMBER: 132618477 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-05842 FILM NUMBER: 09745370 BUSINESS ADDRESS: STREET 1: 55 WATER STREET CITY: NEW YORK STATE: NY ZIP: 10041-0006 BUSINESS PHONE: 2129245500 MAIL ADDRESS: STREET 1: 55 WATER STREET CITY: NEW YORK STATE: NY ZIP: 10041-0006 8-K/A 1 y76074ae8vkza.htm 8-K/A 8-K/A
Table of Contents

 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): April 9, 2009
Bowne & Co., Inc.
(Exact name of registrant as specified in its charter)
         
Delaware   1-05842   13-2618477
         
(State or other jurisdiction   (Commission   (I.R.S. Employer
of incorporation)   File Number)   Identification No.)
     
55 Water Street, New York, New York   10041
     
(Address of principal executive offices)   (Zip Code)
Registrant’s telephone number, including area code: 212-924-5500
Not Applicable
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:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


TABLE OF CONTENTS

Item 8.01 Other Events
Item 9.01 Financial Statements and Exhibits
SIGNATURES
INSTANCE DOCUMENT
SCHEMA DOCUMENT
CALCULATION LINKBASE DOCUMENT
LABELS LINKBASE DOCUMENT
PRESENTATION LINKBASE DOCUMENT
DEFINITION LINKBASE DOCUMENT


Table of Contents

Item 8.01 Other Events.
Attached as Exhibit 100 to this Current Report on Form 8-K are the following materials from Bowne & Co., Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, filed on May 12, 2008, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Operations, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text.
The XBRL files included in this current report on Form 8-K/A are being refiled due to underlying issues with the attachments included in the 8-K filed on April 9, 2009.
Users of this data are advised pursuant to Rule 401 of Regulation S-T that the information contained in the XBRL Related Documents (as defined in Regulation S-T) is unaudited, and that these documents are not the official financial statements the Company filed with the SEC. The purpose of submitting these XBRL Related Documents is to test the format and technology, and, as a result investors should not rely on the information in this report, including the attached files, when making investment decisions.
In accordance with Rule 402 of Regulation S-T, the information in this Current Report on Form 8-K, including each of the exhibits listed below, shall not be deemed “filed” for purposes of Section 11 of the Securities Act of 1933, as amended (the “Securities Act”) or Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of those sections, and is not part of any registration statement to which it may relate, and shall not be incorporated by reference into any registration or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing or document.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
     The following exhibits are included herewith:
     
Exhibit    
Number   Description
 
   
100
  The following materials from Bowne & Co., Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008, filed on May 12, 2008, formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Operations, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text.
Exhibit 100.INS XBRL Instance Document
Exhibit 100.SCH XBRL Taxonomy Extension Schema Document
Exhibit 100.CAL XBRL Taxonomy Extension Calculation Linkbase Document
Exhibit 100.LAB XBRL Taxonomy Extension Label Linkbase Document
Exhibit 100.PRE XBRL Taxonomy Extension Presentation Linkbase Document
Exhibit 100.DEF XBRL Taxonomy Extension Definition Linkbase Document

 


Table of Contents

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.
             
    Bowne & Co., Inc.    
 
           
April 10, 2009
  By:   /s/ John J. Walker    
 
           
 
      Name: John J. Walker    
 
      Title: Senior Vice President and Chief Financial Officer    

 

EX-100.INS 2 bne-20080331.xml INSTANCE DOCUMENT 0000013610 bne:Unaudited 2007-12-31 0000013610 bne:Unaudited 2007-03-31 0000013610 bne:Unaudited 2006-12-31 0000013610 2008-01-01 2008-03-31 0000013610 bne:Unaudited 2008-01-01 2008-03-31 0000013610 bne:Unaudited 2007-01-01 2007-03-31 0000013610 bne:Unaudited 2008-03-31 0000013610 2007-12-31 0000013610 2008-05-01 iso4217:USD xbrli:shares xbrli:shares iso4217:USD <html> <!-- NOTE 10 --> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000;background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;10.&#160;&#160;Accrued Restructuring, Integration and Asset Impairment Charges</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company continually reviews its business, manages costs and aligns its resources with market demand, especially in light of the volatility of the capital markets and the resulting variability in capital markets revenue. The Company took several steps over the past several years to reduce fixed costs, eliminate redundancies and better position the Company to respond to market pressures or unfavorable economic conditions. As a result of these steps, the Company incurred restructuring charges for severance and personnel-related costs related to headcount reductions and costs associated with closing down and consolidating facilities. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During the first quarter of 2007, the Company recorded restructuring, integration, and asset impairment charges totaling $2,110. These charges included (i)&#160;severance and integration costs related to the integration of the St Ives Financial business, (ii)&#160;additional workforce reductions, (iii)&#160;facility exit costs related to the consolidation of the Company&#146;s facility in Philadelphia with the Philadelphia facility previously occupied by St Ives Financial, and (iv)&#160;an asset impairment charge related to vacating the Company&#146;s Philadelphia facility. Restructuring, integration, and asset impairment charges totaled $17,001 for the year ended December&#160;31, 2007. The charges for the year ended December&#160;31, 2007 included costs of approximately $2.2&#160;million associated with the consolidation of the Company&#146;s digital print facility in Milwaukee, WI with its existing facility in South Bend, IN, $6.0&#160;million related to facility exit costs and asset impairment charges related to the reduction of leased space at the Company&#146;s New York City facility, and an asset impairment charge of $2.1&#160;million related to the goodwill associated with the Company&#146;s JFS business. </DIV> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During the first quarter of 2008, the Company continued to implement further cost reductions and incurred additional integration costs related to its recent acquisitions. The charges incurred during the three months ended March&#160;31, 2008 primarily represent (i)&#160;integration costs of approximately $1.1&#160;million related primarily to the acquisition of Alliance Data Mail Services, which was acquired in November 2007, (ii)&#160;costs associated with the consolidation of the Company&#146;s digital print facility in Milwaukee, WI with its existing facility in South Bend, IN, and (iii)&#160;additional workforce reductions. These actions resulted in restructuring, integration, and asset impairment charges totaling $2,555 for the three months ended March&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following information summarizes the costs incurred with respect to restructuring, integration and asset impairment charges during the three months ended March&#160;31, 2008: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="92%">&nbsp;</TD> <!-- colindex=01 type=maindata - --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter - --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Total</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Severance and personnel-related costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 659 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Occupancy related costs </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 202 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other (primarily integration costs) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,694 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Total </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,555 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The activity pertaining to the Company&#146;s accruals related to restructuring and integration charges (excluding non-cash asset impairment charges) since December&#160;31, 2006, including additions and payments made are summarized below: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="54%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Severance<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>and<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Personnel-<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Occupancy<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Related Costs</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Costs</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Other</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Total</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Balance at December&#160;31, 2006 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,651 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,205 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 210 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4,066 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> 2007 expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4,686 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,548 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,179 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 10,413 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Paid in 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (4,655 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (4,424 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,389 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (11,468 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Balance at December&#160;31, 2007 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,682 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,329 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,011 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> 2008 expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 659 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 202 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,694 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,555 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Paid in 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (642 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (481 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (1,650 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,773 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Balance at March&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,699 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,050 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 44 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,793 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The majority of the remaining accrued severance and personnel-related costs are expected to be paid by the end of 2008. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </html> <html> <!-- NOTE 11 --> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;11.&#160;&#160;Debt</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The components of debt at March&#160;31, 2008 and December&#160;31, 2007 are as follows: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="76%">&nbsp;</TD> <!-- colindex=01 type=maindata - --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter - --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="9%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>March&#160;31,<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>December&#160;31,<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Convertible subordinated debentures </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 75,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 75,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revolving credit facility </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 21,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,590 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,758 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 98,590 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 77,758 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As of March&#160;31, 2008, the Company had $21.0&#160;million of borrowings outstanding under its $150&#160;million <FONT style="white-space: nowrap">five-year</FONT> senior, unsecured revolving credit facility. During the three months ended March&#160;31, 2008, the average interest rate on this line of credit approximated 5.61%. There were no borrowings outstanding as of December&#160;31, 2007. The terms of the revolving credit agreement provide certain limitations on additional indebtedness, liens, restricted payments, asset sales and certain other transactions. Additionally, the Company is subject to certain financial covenants based on its results of operations. The Company was in compliance with all loan covenants as of March&#160;31, 2008 and based upon its current projections, the Company believes it will be in compliance with the quarterly loan covenants for the remainder of fiscal year 2008. Amounts outstanding under this facility are classified as long-term debt since the facility expires in May 2010. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company&#146;s $75&#160;million Convertible Subordinated Debentures are classified as current debt as of March&#160;31, 2008 and December&#160;31, 2007, as a result of the redemption/repurchase features in October 2008, which is described in more detail in Note&#160;11 to the Consolidated Financial Statements in the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December&#160;31, 2007. The Company is not subject to any financial covenants under the convertible subordinated debentures. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company also has various capital lease obligations which are included in long-term debt. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </html> <html> <!-- NOTE 6 --> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;6.&#160;&#160;Stock-Based Compensation</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In accordance with SFAS&#160;No.&#160;123 (revised 2004 &#147;Share-Based Payment&#148; (&#147;SFAS&#160;123(R)&#148;), the Company measures share-based compensation expense for stock options granted based upon the estimated fair value of the award on the date of grant and recognizes the compensation expense over the award&#146;s requisite service period. The Company has not granted stock options with market or performance conditions. There were no stock options granted during the three months ended March&#160;31, 2008. The weighted-average fair value of stock options granted during the three months ended March&#160;31, 2007 was $4.23. The weighted-average fair value was calculated using the Black-Scholes-Merton option pricing model. The following weighted-average assumptions were used to determine the fair value of the stock options granted during the three months ended March&#160;31, 2007: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="81%">&nbsp;</TD> <!-- colindex=01 type=maindata - --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter - --> <TD width="17%">&nbsp;</TD> <!-- colindex=02 type=maindata - --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom"> <B>Three Months Ended<BR> </B> </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>March&#160;31, 2007</B> </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Expected dividend yield </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom"> 1.4% </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Expected stock price volatility </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom"> 30.9% </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Risk-free interest rate </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom"> 4.5% </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Expected life of options </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="center" valign="bottom"> 4&#160;years </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company uses historical data to estimate the expected dividend yield and expected volatility of the Company&#146;s stock in determining the fair value of the stock options. The risk-free interest rate is based on the U.S.&#160;Treasury yield in effect at the time of grant and the expected life of the options represents the estimated length of time the options are expected to remain outstanding, which is based on the history of exercises and cancellations of past grants made by the Company. In accordance with SFAS&#160;123(R), the Company recorded compensation expense for the three months ended March&#160;31, 2008 and 2007, net of pre-vesting forfeitures for the options granted, which was based on the historical experience of the vesting and forfeitures of stock options granted in prior years. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company recorded compensation expense related to stock options of $212 and $302 for the three months ended March&#160;31, 2008 and 2007, respectively, which is included in selling and administrative expenses in the Condensed Consolidated Statement of Operations. As of March&#160;31, 2008, there was approximately $896 of total unrecognized compensation cost related to non-vested stock option awards which is expected to be recognized over a weighted-average period of 1.6&#160;years. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Stock Option Plans</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company has the following stock incentive plans: a 1997 Plan, a 1999 Plan (which was amended in May 2006)&#160;and a 2000 Plan, which are described more fully in Note&#160;17 to the Consolidated Financial Statements in the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December&#160;31, 2007. All of the plans except the 2000 Plan have been approved by shareholders. The 2000 Plan did not require shareholder approval. The Company uses treasury shares to satisfy stock option exercises from the 2000 Plan, deferred stock units and restricted stock awards. To the extent treasury shares are not used, shares are issued from the Company&#146;s authorized and unissued shares. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The details of the stock option activity for the three months ended March&#160;31, 2008 is as follows: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="67%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Weighted-<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Average<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Aggregate<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Number of<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Exercise<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Intrinsic<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Options</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Price</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Value</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Outstanding as of January&#160;1, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,362,230 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 13.88 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Granted </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Exercised </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (750 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 16.94 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Forfeited/Cancelled </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (71,000 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 18.17 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Outstanding as of March&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,290,480 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 13.75 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,763 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Exercisable as of March&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,803,664 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 13.32 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 3,659 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The total intrinsic value of the stock options exercised during the three months ended March&#160;31, 2008 and 2007 was $3 and $101, respectively. The amount of cash received from the exercise of stock options during the three months ended March&#160;31, 2008 and 2007 was $10 and $666, respectively. The tax benefit recognized related to compensation expense for stock options amounted to $23 and $19 for the three months ended March&#160;31, 2008 and 2007, respectively. The actual tax benefit realized for the tax deductions from stock option exercises was $1 and $35 for the three months ended March&#160;31, 2008 and 2007, respectively. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table summarizes weighted-average option exercise price information as of March&#160;31, 2008: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="44%">&nbsp;</TD> <!-- colindex=01 type=maindata - --> <TD width="1%">&nbsp;</TD> <!-- colindex=02 type=gutter - --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=06 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=06 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=06 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=06 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Options Outstanding</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Options Exercisable</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Weighted-<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Weighted-<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Weighted-<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Average<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Average<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Average<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <B>Range of<BR> </B> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Number<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Remaining<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Exercise<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Number<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Exercise<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="left" valign="bottom"> <DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px"> <B>Exercise Prices</B> </DIV> </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Outstanding</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Life</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Price</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Exercisable</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Price</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="center" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> $&#160;8.84 <FONT style="white-space: nowrap">-</FONT> $10.31 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 195,614 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3&#160;years </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 9.36 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 195,614 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 9.36 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="center" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> $10.32 <FONT style="white-space: nowrap">-</FONT> $11.99 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 163,782 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3&#160;years </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 10.61 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 163,782 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 10.61 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="center" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> $12.00 <FONT style="white-space: nowrap">-</FONT> $14.00 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 946,494 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3&#160;years </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 13.28 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 909,494 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 13.26 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="center" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> $14.01 <FONT style="white-space: nowrap">-</FONT> $15.77 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 909,670 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6&#160;years </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 15.23 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 484,920 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 15.15 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="center" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> $15.78 <FONT style="white-space: nowrap">-</FONT> $22.50 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 74,920 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5&#160;years </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 19.99 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 49,854 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 21.13 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,290,480 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 4&#160;years </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 13.75 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,803,664 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 13.32 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table summarizes information about nonvested stock option awards as of March&#160;31, 2008: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="78%">&nbsp;</TD> <!-- colindex=01 type=maindata - --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter - --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Weighted-<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Average<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Number of<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Grant-Date<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Options</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Fair Value</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Nonvested stock options as of January&#160;1, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 509,275 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4.99 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Granted </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Vested </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (22,459 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4.91 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Forfeited </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Nonvested stock options as of March&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 486,816 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4.99 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Total compensation expense recognized for stock options that vested during the three months ended March&#160;31, 2008 and 2007 amounted to $20 and $8, respectively. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">Deferred Stock Awards</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company maintains a program for certain key executives and directors that provides for the conversion of a portion of their cash bonuses or directors&#146; fees into deferred stock units. These units are convertible into the Company&#146;s common stock on a one-for-one basis, generally at the time of retirement or earlier under certain specific circumstances and are included as shares outstanding in computing the Company&#146;s basic and diluted earnings per share. As of March&#160;31, 2008 and December&#160;31, 2007, the amounts included in stockholders&#146; equity for these units were $5,485 and $5,199, respectively. As of March&#160;31, 2008 and December&#160;31, 2007, there were 491,138 and 471,340&#160;units outstanding, respectively. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Additionally, the Company has a Deferred Sales Compensation Plan for certain sales personnel. This plan allows a salesperson to defer payment of commissions to a future date. Participants may elect to defer commissions to be paid in either cash, a deferred stock equivalent (the value of which is based upon the value of the Company&#146;s common stock), or a combination of cash or deferred stock equivalents. The amounts deferred, plus any matching contribution made by the Company, will be paid upon retirement, termination or in certain hardship situations. Amounts accrued which the employees participating in the plan have elected to be paid in deferred stock equivalents amounted to $2,241 and $2,221 as of March&#160;31, 2008 and December&#160;31, 2007, respectively. In January 2004, the Plan was amended to require that the amounts to be paid in deferred stock equivalents would be paid solely in the Company&#146;s common stock. As of March&#160;31, 2008 and December&#160;31, 2007, these amounts are a component of additional paid in capital in stockholders&#146; equity. In the event of a change of control or if the Company&#146;s net worth, as defined, falls below $100&#160;million, then the payment of certain vested employer matching amounts due under the plan may be accelerated. As of March&#160;31, 2008 and December&#160;31, 2007, there were 181,524 and 179,862 deferred stock equivalents, respectively, outstanding under this Plan. These awards are included as shares outstanding in computing the Company&#146;s basic and diluted earnings per share. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Compensation expense related to deferred stock awards amounted to $295 and $259 for the three months ended March&#160;31, 2008 and 2007, respectively. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">Restricted Stock and Restricted Stock Units (excluding awards under the Long-Term Equity Incentive Plan)</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In accordance with the 1999 Incentive Compensation Plan, the Company has granted certain senior executives restricted stock and restricted stock units. These awards have various vesting conditions and are subject to certain terms and restrictions in accordance with the agreements. The fair value of the awards is determined based on the fair value of the Company&#146;s stock at the date of grant and is charged to compensation expense over the requisite service periods. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> A summary of the restricted stock activity as of March&#160;31, 2008 is as follows: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="78%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Weighted-<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Average<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Number of<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Grant-Date<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Awards</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Fair Value</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Nonvested restricted stock and restricted stock awards as of January&#160;1, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 24,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 15.22 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Granted </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 69,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 12.77 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Vested </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Forfeited </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Nonvested restricted stock and restricted stock awards as of March&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 93,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 13.40 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Compensation expense related to restricted stock and restricted stock units amounted to $123 and $109 for the three months ended March&#160;31, 2008 and 2007, respectively. As of March&#160;31, 2008, unrecognized compensation expense related to restricted stock grants amounted to $982, which will be recognized over a weighted-average period of 1.6&#160;years. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">Long-Term Equity Incentive Plan</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company&#146;s Board of Directors approved a Long-Term Equity Incentive Plan (&#147;LTEIP&#148;) which became effective retroactive to January&#160;1, 2006 upon the approval of the 1999 Amended Incentive Compensation Plan on May&#160;25, 2006. In accordance with the 1999 Amended Incentive Plan, certain officers and key employees were granted restricted stock units (&#147;RSUs&#148;) at a target level based on certain criteria. The actual amount of RSUs earned is based on the level of performance achieved relative to established goals for the three-year performance cycle beginning January&#160;1, 2006 through December&#160;31, 2008 and range from 0% to 200% of the target RSUs granted. The performance goal is based on the average return on invested capital (&#147;ROIC&#148;) for the three-year performance cycle. The LTEIP provides for accelerated payout if the maximum average ROIC performance target is attained within the initial two-years of the three-year performance cycle. The awards are subject to certain terms and restrictions in accordance with the agreements. The fair value of the RSUs granted is determined based on the fair value of the Company&#146;s stock at the date of grant and is being charged to compensation expense for most employees based on the date of grant through the payment date. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As discussed in further detail in Note&#160;17 to the Consolidated Financial Statements in the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December&#160;31, 2007, the maximum average ROIC performance target was attained in 2007, and as such, the Company recognized compensation expense reflecting the accelerated payout at 200%. The Company recorded compensation expense of $1,122 and $1,262 related to the LTEIP for the three months ended March&#160;31, 2008 and 2007, respectively. The compensation expense recognized under the LTEIP for the three months ended March&#160;31, 2008, represents the remaining compensation through the payment date of the awards, which occurred in March 2008. The total amount of shares awarded in March 2008 related to the settlement of the LTEIP was approximately 938,000. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">2008 Equity Incentive Plan</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In April 2008, the Company&#146;s Compensation and Management Development Committee of the Board of Directors approved the 2008 Equity Incentive Plan (&#147;EIP&#148;). In accordance with the EIP, certain officers and key employees were granted RSUs at a target level during the second quarter of 2008. The actual amount of RSUs earned is based on the level of performance achieved relative to established goals for the one-year performance period beginning January&#160;1, 2008 through December&#160;31, 2008 and range from 0% to 200% of the target RSUs granted. The performance goal is based on the Company&#146;s ROIC for the one-year performance period. The Company granted 205,000 RSUs in accordance with the EIP during the second quarter of 2008 and will begin recognizing compensation expense related to these grants in April 2008. The awards are subject to certain terms and restrictions in accordance with the agreements. </DIV> </html> <html> <!-- NOTE 3 --> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;3.&#160;&#160;Discontinued Operations</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As described in more detail in Note&#160;3 to the Consolidated Financial Statements in the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December, 31, 2007, the Company determined during the fourth quarter of 2007 that the assets of its JFS Litigators&#146; Notebook<SUP style="font-size: 85%; vertical-align: text-top">&#174;</SUP> (&#147;JFS&#148;) business no longer met the criteria of being classified as held for sale and therefore the assets and liabilities related to this business were reclassified as held and used and the results of operations for the JFS business have been reclassified and are included in the results from continuing operations. The results for the three months ended March&#160;31, 2007 have been reclassified to reflect the current presentation of the JFS business. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Condensed Consolidated Balance Sheets as of March&#160;31, 2008 and December&#160;31, 2007 include $5,334 and $5,681, respectively, related to an accrual for the present value of deferred rent for facilities formerly occupied by the Company&#146;s discontinued businesses, as described further in Note&#160;3 to the Consolidated Financial Statements in the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December, 31, 2007. As of March&#160;31, 2008 and December&#160;31, 2007, $938 and $913, respectively, are included in accrued expenses and other obligations and $4,396 and $4,768, respectively, are included in deferred rent. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Condensed Consolidated Balance Sheets as of March&#160;31, 2008 and December&#160;31, 2007 also include $3,119 and $3,678, respectively, in accrued expenses and other obligations related primarily to estimated indemnification liabilities associated with the sale of the Company&#146;s discontinued globalization and outsourcing businesses, which are described more fully in Note&#160;3 of the Notes to the Consolidated Financial Statements in the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December&#160;31, 2007. The total accrual related to the discontinued globalization business amounted to $2,571 and $3,130 as of March&#160;31, 2008 and December&#160;31, 2007, respectively, and the total accrual related to the discontinued outsourcing business amounted to $548 as of March&#160;31, 2008 and December&#160;31, 2007. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The loss from discontinued operations before income taxes for the three months ended March&#160;31, 2008 was $200, which includes adjustments related to the estimated indemnification liabilities associated with the discontinued businesses and interest expense related to deferred rent associated with leased facilities formerly occupied by discontinued businesses. Income from discontinued operations before income taxes for the three months ended March&#160;31, 2007 was $806. </DIV> </html> <html> <!-- NOTE 7 --> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;7.&#160;&#160;Earnings Per Share</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Shares used in the calculation of basic earnings per share are based on the weighted-average number of shares outstanding. Shares used in the calculation of diluted earnings per share are based on the weighted-average number of shares outstanding adjusted for the assumed exercise of all potentially dilutive stock-based awards. Basic and diluted earnings per share are calculated by dividing the net income by the weighted-average number of shares outstanding during each period. The weighted-average diluted shares outstanding for the three months ended March&#160;31, 2008 and 2007 excludes the dilutive effect of 1,474,109 and 627,137 stock options, respectively, since such options have an exercise price in excess of the average market value of the Company&#146;s common stock during the respective periods. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In accordance with EITF Issue <FONT style="white-space: nowrap">No.&#160;04-08,</FONT> &#147;The Effect of Contingently Convertible Instruments on Diluted Earnings per Share&#148; <FONT style="white-space: nowrap">(&#147;EITF&#160;04-08&#148;),</FONT> the weighted-average diluted shares outstanding for the three months ended March&#160;31, 2007 includes the effect of 4,058,445&#160;shares that could be issued upon the conversion of the Company&#146;s convertible subordinated debentures under certain circumstances, and the numerator used in the calculation of diluted earnings per share was increased by an amount equal to the interest cost, net of tax, on the convertible subordinate debentures of $577, since the effects are dilutive to the earnings per share calculation for this period. The weighted-average diluted earnings per share for the three months ended March&#160;31, 2008 excludes the effect of the 4,058,445&#160;shares that could be issued upon the conversion of the Company&#146;s convertible subordinated debentures under certain circumstances, since the effects are anti-dilutive to the earnings per share calculation for this period. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table sets forth the basic and diluted average share amounts: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="77%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter - --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="4%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="4%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="7" nowrap align="center" valign="bottom"> <B>Three Months Ended<BR> </B> </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="7" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>March&#160;31,</B> </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Basic shares </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 27,051,175 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 28,756,996 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Diluted shares </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 27,819,570 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 33,252,896 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> </TABLE> </html> <html> <!-- NOTE 5 --> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;5.&#160;&#160;Fair Value of Financial Instruments</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company adopted Statement of Financial Accounting Standards (&#147;SFAS&#148;) No.&#160;157, &#147;Fair Value Measurements&#148;, (&#147;SFAS&#160;157&#148;) for financial assets and liabilities during the first quarter of 2008. This standard defines fair value, provides guidance for measuring fair value and requires certain disclosures. This standard does not require any new fair value measurements, however, it applies to all other accounting pronouncements that require or permit fair value measurements. This standard does not apply to measurements related to share-based payments, nor does it apply to measurements related to inventory. The Company elected not to adopt the provisions of SFAS&#160;No.&#160;159 &#147;The Fair Value Option for Financial Assets and Financial Liabilities,&#148; for its financial instruments that are not required to be measured at fair value. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company defines the fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. The fair value estimates presented in the table below are based on information available to the Company as of March&#160;31, 2008 and December&#160;31, 2007. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> SFAS&#160;157 discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The standard utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0"> <TR> <TD width="4%"></TD> <TD width="2%"></TD> <TD width="94%"></TD> </TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> <I>Level&#160;1:</I>&#160;&#160;Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> <I>Level&#160;2:</I>&#160;&#160;Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. </TD> </TR> <TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TD>&nbsp;</TD> <TD> &#149;&#160; </TD> <TD align="left"> <I>Level&#160;3:</I>&#160;&#160;Unobservable inputs that reflect the reporting entity&#146;s own assumptions. </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The carrying value and fair value of the Company&#146;s significant financial assets and liabilities and the necessary disclosures for the periods are presented as follows: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="40%">&nbsp;</TD> <!-- colindex=01 type=maindata - --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter - --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="2%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="2%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="2%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> <TD width="2%">&nbsp;</TD> <!-- colindex=06 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=06 type=lead --> <TD width="6%" align="right">&nbsp;</TD> <!-- colindex=06 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=06 type=hang1 --> <TD width="2%">&nbsp;</TD> <!-- colindex=07 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=07 type=lead --> <TD width="10%" align="right">&nbsp;</TD> <!-- colindex=07 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=07 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="14" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>March&#160;31, 2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31, 2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Carrying<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="10" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Fair Value Measurements</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Carrying<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Estimated Fair<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Value</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Total</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Level 1</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Level 2</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Value</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Value</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Financial Assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Cash and cash equivalents(1) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 23,566 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 23,566 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 23,566 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 64,941 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 64,941 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Marketable securities(2) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 11,987 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 11,987 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,062 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,925 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 38,805 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 38,805 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total financial assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 35,553 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 35,553 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 26,628 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 8,925 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 103,746 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 103,746 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Financial Liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Convertible subordinated debentures(3) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 75,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 77,063 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 77,063 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 75,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 77,387 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Senior revolving credit facility(4) </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 21,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 21,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 21,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 30pt"> Total financial liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 96,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 98,063 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 77,063 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 21,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 75,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 77,387 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV style="font-size: 1pt; margin-left: 0%; width: 13%; align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 --> <DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <TR> <TD width="4%"></TD> <TD width="1%"></TD> <TD width="95%"></TD> </TR> <TR> <TD align="right" valign="top"> (1) </TD> <TD></TD> <TD valign="bottom"> Included in cash and cash equivalents are money market funds of $4,409 and $17,498 as of March&#160;31, 2008 and December&#160;31, 2007, respectively.</TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR> <TD align="right" valign="top"> (2) </TD> <TD></TD> <TD valign="bottom"> Included in marketable securities are auction rate securities of $11,875 and $38,700 as of March&#160;31, 2008 and December&#160;31, 2007, respectively.</TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR> <TD align="right" valign="top"> (3) </TD> <TD></TD> <TD valign="bottom"> Included in the current portion of long-term debt and other short term borrowings in the Company&#146;s Condensed Consolidated Balance Sheets as of March&#160;31, 2008 and December&#160;31, 2007, respectively.</TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR> <TR> <TD align="right" valign="top"> (4) </TD> <TD></TD> <TD valign="bottom"> Included in long-term debt, net of current portion in the Company&#146;s Condensed Consolidated Balance Sheets as of March&#160;31, 2008 and December&#160;31, 2007, respectively.</TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following assumptions were used by the Company in order to measure the estimated fair value of its financial assets and liabilities as of March&#160;31, 2008: (i)&#160;the carrying value of cash and cash equivalents approximates fair value because of the short term maturity of those instruments; (ii)&#160;the Company&#146;s marketable securities are carried at estimated fair value as described further in Note&#160;4 to the Condensed Consolidated Financial Statements; (iii)&#160;the carrying value of the liability under the revolving credit agreement, which is described in more detail in Note&#160;11 to the Consolidated Financial Statements in the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December&#160;31, 2007, approximates fair value since this facility has a variable interest rate similar to those that are currently available to the Company and is reflective of current market conditions; and (iv)&#160;the carrying value of the Company&#146;s convertible debentures are carried at historical cost, the fair value disclosed is based on publicly listed dealer prices. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Due to current market conditions related to auction rate securities, the Company has reclassified a portion of its auction rate securities held as of March&#160;31, 2008 to a Level&#160;2 fair value measurement classification from a Level&#160;1 classification as of December&#160;31, 2007. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </html> <html> <!-- NOTE 9 --> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;9.&#160;&#160;Goodwill and Intangible Assets</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The changes in the carrying amount of goodwill as of March&#160;31, 2008 are as follows: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="91%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Balance at January&#160;1, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 35,835 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Goodwill associated with the acquisition of GCom </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 7,238 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Purchase price adjustments for prior acquisitions </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (73 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Foreign currency translation adjustment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (140 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Balance at March&#160;31, 2008 </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 42,860 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The gross amounts and accumulated amortization of identifiable intangible assets are as follows: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="55%">&nbsp;</TD> <!-- colindex=01 type=maindata - --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter - --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="8%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>March&#160;31, 2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>December&#160;31, 2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Gross<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Accumulated<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Gross<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom"> <B>Accumulated<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Amount</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Amortization</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Amount</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>Amortization</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Indefinite lived intangible assets: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Trade names </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,700 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Amortizable intangible assets: </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Customer relationships </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 37,275 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,772 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 11,794 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,190 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Covenants not-to-compete </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 25 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 14 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 25 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 13 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 40,000 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,786 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 11,819 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,203 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The increase in customer relationships and trade names as of March&#160;31, 2008 is primarily attributable to the preliminary allocation of the purchase price related to the acquisition of GCom as described in more detail in Note&#160;2. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </html> <html> <!-- NOTE 13 --> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;13.&#160;&#160;Income Taxes</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Income tax expense for the three months ended March&#160;31, 2008 was $313 on pre-tax income from continuing operations of $2,126 compared to $1,253 on pre-tax income from continuing operations of $11,437 for the same period in 2007. The effective tax rate for the three months ended March&#160;31, 2008 was 15%, as compared to the effective tax rate of 11% in 2007. The effective tax rate in 2008 includes the net tax benefit of $497 resulting from the recognition of previously unrecognized tax benefits and tax benefits associated with the finalization of the Company&#146;s 2006&#160;state income tax returns. The effective tax rate in 2007 resulted from tax benefits of $3,594 related to a refund of federal income taxes and interest as a result of the completion of an Internal Revenue Service (&#147;IRS&#148;) audit and the amendment of our 2001 federal income tax return, and the related recognition of previously unrecognized tax benefits. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The total gross amount of unrecognized tax benefits included in the Condensed Consolidated Balance Sheets as of March&#160;31, 2008 and December&#160;31, 2007 is $8,986 and $9,283, respectively, which includes estimated interest and penalties of $1,443 and $1,550, respectively. Except for the tax benefit discussed above, there were no significant changes to the Company&#146;s unrecognized tax benefits during the three months ended March&#160;31, 2008. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Audits of the Company&#146;s U.S.&#160;federal income tax returns for 2001 through 2004 were completed in 2007, and are described in more detail in Note&#160;10 to the Consolidated Financial Statements in the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December&#160;31, 2007. The Company&#146;s 2005 U.S.&#160;federal income tax return is in the process of being audited by the IRS. We do not anticipate that the resolution of this audit will significantly impact our financial statements. The Company&#146;s income tax returns filed in state and local jurisdictions have been audited at various times. Our affiliates in foreign jurisdictions do not have any active income tax audits in process as of March&#160;31, 2008. </DIV> </html> <html> <!-- NOTE 8 --> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;8.&#160;&#160;Inventories</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Inventories of $37,296 as of March&#160;31, 2008 included raw materials of $8,645 and <FONT style="white-space: nowrap">work-in-process</FONT> and finished goods of $28,651. As of December&#160;31, 2007, inventories of $28,789 included raw materials of $11,641 and <FONT style="white-space: nowrap">work-in-process</FONT> and finished goods of $17,148. </DIV> </html> <html> <!-- NOTE 4 --> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%;margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;4.&#160;&#160;Marketable Securities</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company classifies its investments in marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported as a separate component of stockholders&#146; equity. Marketable securities as of March&#160;31, 2008 and December&#160;31, 2007 consist primarily of investments in auction rate securities of approximately $11.9&#160;million and $38.7&#160;million, respectively. These securities are municipal debt obligations issued with a variable interest rate that was preset every 7, 28, or 35&#160;days via a Dutch auction. Recent uncertainties in the credit markets have prevented the Company and other investors from liquidating some holdings of auction rate securities in recent auctions because the amount of securities submitted for sale has exceeded the amount of purchase orders. Accordingly, the Company still holds a portion of these auction rate securities and is receiving interest at a higher rate than similar securities for which auctions have cleared. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> During the three months ended March&#160;31, 2008, the Company liquidated approximately $26.5&#160;million of its auction rate securities at par and received all of its principal. Subsequent to March&#160;31, 2008, the Company liquidated an additional $7.1&#160;million of these securities at par. The remaining investments in auction rate securities had a par value of approximately $5.1&#160;million as of May&#160;7, 2008, and are insured against loss of principal and interest. Due to the uncertainty in the market as to when these auction rate securities will be refinanced or the auctions will resume, the Company has classified the portion of auction rate securities that have not been subsequently liquidated as noncurrent assets as of March&#160;31, 2008. The Company has recorded an unrealized loss related to its auction rate securities of $300 ($185 after tax) for the three months ended March&#160;31, 2008. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </html> <html> <!-- NOTE 1 --> <TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <TR> <TD width="8%"></TD> <TD width="92%"></TD> </TR> <TR valign="top"> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;1.&#160;&#160;</FONT></B> </TD> <TD> <B><FONT style="font-family: 'Times New Roman', Times">Basis of Presentation</FONT></B> </TD> </TR> </TABLE> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The financial information as of March&#160;31, 2008 and for the three month periods ended March&#160;31, 2008 and 2007 has been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the consolidated financial position, results of operations and of cash flows for each period presented have been made on a consistent basis. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These financial statements should be read in conjunction with the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> and consolidated financial statements for the year ended December&#160;31, 2007. Operating results for the three months ended March&#160;31, 2008&#160;may not be indicative of the results that may be expected for the full year. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As discussed further in Note&#160;14, during the three months ended March&#160;31, 2008, the Company changed the way it reports and evaluates segment information. The Company had previously reported two reportable segments: Financial Communications and Marketing&#160;&#038; Business Communications. The Company now has one reportable segment, which is consistent with how the Company is structured and managed. The Company&#146;s previous years&#146; segment information has been restated to conform to the current year&#146;s presentation. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </html> <html> <!-- NOTE 12 --> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;12.&#160;&#160;Postretirement Benefits</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">Pension Plans</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company sponsors a defined benefit pension plan (the &#147;Plan&#148;) which covers certain United States employees not covered by union agreements. In September 2007, the Company amended its Plan, which is described in more detail in Note&#160;12 to the Consolidated Financial Statements in the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December&#160;31, 2007. The Plan was amended to change the plan to a cash balance plan (the &#147;Amended Plan&#148;) effective January&#160;1, 2008. The Plan benefits were frozen effective December&#160;31, 2007 and no further benefits are currently accrued under the pre-existing benefit calculation. The provisions of the Amended Plan allow for all eligible employees that were previously not able to participate in the Plan to participate in the Amended Plan after the completion of one year of eligible service. Under the Amended Plan, the participants will accrue monthly benefits equal to 3% of their eligible compensation, as defined by the Amended Plan. In addition, each participant account will be credited interest at the <FONT style="white-space: nowrap">10-year</FONT> Treasury Rate. The participants&#146; accrued benefits will vest over three years of credited service. The Company will continue to contribute an amount necessary to meet the ERISA minimum funding requirements. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company also has an unfunded supplemental executive retirement plan (&#147;SERP&#148;) for certain executive management employees. The SERP is described more fully in Note&#160;12 to the Consolidated Financial Statements in the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December&#160;31, 2007. Also, certain non-union international employees are covered by other retirement plans. </DIV> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The components of the net periodic (benefit) cost are as follows: </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="60%">&nbsp;</TD> <!-- colindex=01 type=maindata - --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter - --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=04 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=04 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=04 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=04 type=hang1 --> <TD width="6%">&nbsp;</TD> <!-- colindex=05 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=05 type=lead --> <TD width="4%" align="right">&nbsp;</TD> <!-- colindex=05 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=05 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom"> <B>Pension Plan<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom"> <B>SERP<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom"> <B>Three Months Ended<BR> </B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom"> <B>Three Months Ended<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>March&#160;31,</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>March&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Service cost </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 839 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,705 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 146 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 160 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Interest cost </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,810 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 2,026 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 322 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 266 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Expected return on plan assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,504 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,379 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Amortization of transition (asset) liability </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (80 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (80 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Amortization of prior service (credit) cost </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (413 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 95 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 232 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 430 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Amortization of actuarial loss </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 156 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 88 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 449 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 249 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net periodic (benefit) cost of defined benefit plans </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (192 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,455 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,149 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 1,113 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Union plans </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 123 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 102 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other retirement plans </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 657 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 521 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> &#151; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Total cost </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 588 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 2,078 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,149 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 1,113 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The amortization of the transition (asset)/liability, prior service (credit)/cost and actuarial loss for the three months ended March&#160;31, 2008, included in the above tables, have been recognized in the net periodic benefit cost and included in other comprehensive income, net of tax. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company will remeasure and record the plans&#146; funded status as of December&#160;31, 2008, the measurement date, and will adjust the balance in accumulated comprehensive income during the fourth quarter of 2008. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> </html> <html> <!-- NOTE 2 --> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;2.&#160;&#160;Acquisitions</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">GCom<SUP style="font-size: 85%; vertical-align: text-top">2</SUP> Solutions, Inc.</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On February&#160;29, 2008, the Company acquired GCom<SUP style="font-size: 85%; vertical-align: text-top">2</SUP> Solutions, Inc. (&#147;GCom&#148;) for $46,057 in cash, which included working capital valued at $3,557. The net cash outlay for the acquisition as of March&#160;31, 2008 was $47,134 which includes acquisition costs of $1,077. Based upon preliminary estimates, the excess purchase price over identifiable net tangible assets of $43,338 is reflected as part of goodwill, intangible assets, and property, plant, and equipment in the Condensed Consolidated Balance Sheet as of March&#160;31, 2008. A total of $7,238 has been allocated to goodwill, $2,700 has been allocated to trade names, $25,500 has been allocated to customer relationships and is being amortized over a weighted average estimated useful life of 13&#160;years, and $7,900 has been allocated to computer software and is being depreciated over 5&#160;years. Further refinements to the purchase price allocation are possible. The final purchase price allocation is not expected to have a material effect on the Company&#146;s financial statements. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In accordance with EITF Issue <FONT style="white-space: nowrap">No.&#160;95-03,</FONT> &#147;Recognition of Liabilities in Connection with a Purchase Business Combination&#148; <FONT style="white-space: nowrap">(&#147;EITF&#160;95-03&#148;),</FONT> the Company accrued $1.0&#160;million as of the acquisition date related to integration costs associated with the acquisition of this business. These costs include estimated severance related to the elimination of redundant functions associated with GCom&#146;s operations. This amount is included in the preliminary purchase price allocation. As of March&#160;31, 2008, the total balance remains accrued. </DIV> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table summarizes the estimated preliminary fair values of the assets acquired and liabilities assumed as of the date of acquisition. The allocation of the purchase price is subject to refinement. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="91%">&nbsp;</TD> <!-- colindex=01 type=maindata - --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter - --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accounts receivable, net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 4,996 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Inventory </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 97 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Prepaid and other current assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 442 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total current assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 5,535 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Property, plant and equipment, net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 8,568 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Goodwill </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 7,238 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Intangible assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 28,200 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other noncurrent assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 69 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total assets acquired </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 49,610 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Current liabilities </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (3,553 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total liabilities assumed </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (3,553 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Net assets acquired </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 46,057 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> Pro forma financial information related to this acquisition has not been provided, as it is not material to the Company&#146;s results of operations. </DIV> <DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><I><FONT style="font-family: 'Times New Roman', Times">Alliance Data Mail Services</FONT></I></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As described in more detail in Note&#160;2 to the Consolidated Financial Statements in the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December&#160;31, 2007, in November 2007, the Company acquired ADS MB Corporation (&#147;Alliance Data Mail Services&#148;), an affiliate of Alliance Data Systems Corporation, for $3.0&#160;million in cash, plus the purchase of working capital for an estimated $9.3&#160;million, for total consideration of $12.3&#160;million. The balance of the purchased working capital is preliminary and is pending finalization. The Company estimates that the final working capital calculation could result in a reduction of the purchase consideration in the range of $2.0&#160;million to $4.0&#160;million. The net cash outlay as of March&#160;31, 2008 for this acquisition was approximately $12.9&#160;million, which includes acquisition costs of approximately $0.6&#160;million. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> In accordance with <FONT style="white-space: nowrap">EITF&#160;95-03,</FONT> the Company accrued $2.5&#160;million as of the acquisition date related to integration costs associated with the acquisition of this business. These costs include estimated severance related to the elimination of redundant functions associated with the Alliance Data Mail Services operations. This amount is included in the preliminary purchase price allocation. As of March&#160;31, 2008, the remaining balance accrued was approximately $2.4&#160;million which is expected to be paid during 2008. </DIV> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the date of acquisition. The allocation of the purchase price is subject to refinement. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="91%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter - --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="5%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> </TR> <!-- Table Width Row END --> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accounts receivable, net </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 6,688 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Inventory </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 3,155 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other current assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 6,675 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total current assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 16,518 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Property, plant and equipment </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 346 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Deferred tax assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 963 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Other noncurrent assets </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 330 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total assets acquired </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 18,157 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Accrued expenses and other current obligations </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (5,810 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 20pt"> Total liabilities assumed </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (5,810 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Net assets acquired </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 12,347 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD style="border-top: 3px double #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> </TABLE> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The unaudited pro forma financial information related to this acquisition for the years ended December&#160;31, 2007 and 2006 was presented in Note&#160;2 to the Consolidated Financial Statements in the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December&#160;31, 2007. </DIV> </html> <html> <!-- NOTE 15 --> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;15.&#160;&#160;Subsequent Event</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> On April&#160;9, 2008, the Company acquired the digital print business of Rapid Solutions Group (&#147;RSG Digital&#148;), a subsidiary of Janus Capital Group Inc., for $14.5&#160;million in cash. The acquisition included working capital valued at approximately $5.0&#160;million. RSG Digital is a provider of end-to-end solutions for marketing and business communications clients in the financial services and healthcare industries. </DIV> </html> <html> <!-- NOTE 14 --> <DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF"> <B><FONT style="font-family: 'Times New Roman', Times">Note&#160;14.&#160;&#160;Segment Information</FONT></B> </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> As discussed in further detail in the Company&#146;s annual report on <FONT style="white-space: nowrap">Form&#160;10-K</FONT> for the year ended December&#160;31, 2007, during 2007 the Company announced several significant changes to its organizational structure to support the consolidation of its divisions into a unified model that supports Bowne&#146;s full range of service offerings, from services related to capital markets and compliance reporting to investment management solutions and personalized, digital marketing and business communications. These modifications were made in response to the evolving needs of our clients, who are increasingly asking for services that span Bowne&#146;s full range of offerings. As a result of these changes, we evaluated the impact on segment reporting and made certain changes to our segment reporting during the first quarter of 2008. As such, the Company now has one reportable segment, which is consistent with how the Company is structured and managed. The Company had previously reported two reportable segments: Financial Communications and Marketing&#160;&#038; Business Communications. The condensed consolidated financial statements for the three months ended March&#160;31, 2008 and 2007 have been presented to reflect one reportable segment in accordance with SFAS&#160;No.&#160;131. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> The Company&#146;s performance is evaluated based on several factors, of which the primary financial measure is segment profit. Segment profit is defined as gross margin (revenue less cost of revenue) less selling and administrative expenses. Segment performance is evaluated exclusive of interest, income taxes, depreciation, amortization, restructuring, integration and asset impairment charges, and other expenses and other income. Segment profit is measured because management believes that such information is useful in evaluating the Company&#146;s results relative to other entities that operate within our industry. Segment profit is also used as the primary financial measure for purposes of evaluating financial performance under the Company&#146;s annual incentive plan. The information presented below reconciles segment profit to income from continuing operations before income taxes. </DIV> <DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV> <TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF"> <!-- Table Width Row BEGIN --> <TR style="font-size: 1pt" valign="bottom"> <TD width="77%">&nbsp;</TD> <!-- colindex=01 type=maindata --> <TD width="2%">&nbsp;</TD> <!-- colindex=02 type=gutter - --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=02 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=02 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=02 type=hang1 --> <TD width="3%">&nbsp;</TD> <!-- colindex=03 type=gutter --> <TD width="1%" align="right">&nbsp;</TD> <!-- colindex=03 type=lead --> <TD width="7%" align="right">&nbsp;</TD> <!-- colindex=03 type=body --> <TD width="1%" align="left">&nbsp;</TD> <!-- colindex=03 type=hang1 --> </TR> <!-- Table Width Row END --> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom"> <B>Three Months Ended<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>March&#160;31,</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2008</B> </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000"> <B>2007</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom"> <B>(Unaudited)<BR> </B> </TD> <TD> &nbsp; </TD> </TR> <TR style="font-size: 8pt" valign="bottom" align="center"> <TD nowrap align="center" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD colspan="6" nowrap align="center" valign="bottom"> <B>(In thousands)</B> </TD> <TD> &nbsp; </TD> </TR> <TR style="line-height: 3pt; font-size: 1pt"> <TD>&nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 208,767 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> $ </TD> <TD nowrap align="right" valign="bottom"> 212,022 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Cost of revenue </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (138,163 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (129,898 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: - -10pt; margin-left: 10pt"> Gross margin </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 70,604 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 82,124 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Selling and administrative expenses </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (57,962 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (60,194 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="font-size: 1pt"> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> <TD> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD style="border-top: 1px solid #000000"> &nbsp; </TD> <TD> &nbsp; </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Segment profit </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 12,642 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> 21,930 </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> </TR> <TR valign="bottom"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Depreciation expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (6,630 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (7,007 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Amortization expense </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (588 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (333 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom"> <TD align="left" valign="bottom"> <DIV style="text-indent: -10pt; margin-left: 10pt"> Restructuring, integration and asset impairment charges </DIV> </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,555 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> <TD> &nbsp; </TD> <TD nowrap align="left" valign="bottom"> &nbsp; </TD> <TD nowrap align="right" valign="bottom"> (2,110 </TD> <TD nowrap align="left" valign="bottom"> ) </TD> </TR> <TR valign="bottom" style="background: #CCEEFF"> <TD nowrap align="left" valign="bottom"> <DIV style="text-indent: -10pt; 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