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    <titleOfClass>COM</titleOfClass>
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    <value>12585</value>
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      <None>175050</None>
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      <Sole>17290</Sole>
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      <None>59850</None>
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    <nameOfIssuer>Fifth &amp; Pacific Co. Inc.</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>316645100</cusip>
    <value>2777</value>
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    <votingAuthority>
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      <None>110500</None>
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    <nameOfIssuer>Five Below, Inc.</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>33829M101</cusip>
    <value>2728</value>
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    <votingAuthority>
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      <None>62400</None>
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    <nameOfIssuer>G-III Apparel Group, Ltd.</nameOfIssuer>
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      <None>50557</None>
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    <nameOfIssuer>Gencorp Inc.</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>368682100</cusip>
    <value>3586</value>
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      <sshPrnamt>223700</sshPrnamt>
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    <votingAuthority>
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      <None>223700</None>
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    <votingAuthority>
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      <None>129900</None>
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    <value>3638</value>
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      <sshPrnamt>43164</sshPrnamt>
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    <votingAuthority>
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      <None>43164</None>
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    <votingAuthority>
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      <None>71500</None>
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    <votingAuthority>
      <Sole>6419</Sole>
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      <None>10330</None>
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    <nameOfIssuer>Graham Corp.</nameOfIssuer>
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    <value>2732</value>
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      <None>75621</None>
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      <None>38100</None>
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      <None>127800</None>
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    <value>2677</value>
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      <sshPrnamt>144600</sshPrnamt>
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    <votingAuthority>
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      <None>144600</None>
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    <cusip>42805T105</cusip>
    <value>9111</value>
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      <sshPrnamt>411150</sshPrnamt>
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      <None>284100</None>
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    <nameOfIssuer>Hewlett Packard</nameOfIssuer>
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      <None>212100</None>
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    <nameOfIssuer>ITT Educational Services Inc.</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
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    <value>2833</value>
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    <nameOfIssuer>Invensense Inc.</nameOfIssuer>
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      <None>149300</None>
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    <cusip>46269C102</cusip>
    <value>1677</value>
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      <sshPrnamt>243700</sshPrnamt>
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    <nameOfIssuer>J &amp; J Snack Foods Corp.</nameOfIssuer>
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      <sshPrnamt>39600</sshPrnamt>
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      <None>39600</None>
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    <votingAuthority>
      <Sole>3400</Sole>
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      <None>111700</None>
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    <value>3640</value>
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      <sshPrnamt>546200</sshPrnamt>
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    <votingAuthority>
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      <None>546200</None>
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    <nameOfIssuer>Kronos Worldwide, Inc.</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
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    <value>1299</value>
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      <sshPrnamt>83847</sshPrnamt>
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      <None>83847</None>
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    <nameOfIssuer>Las Vegas Sands Corp</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
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    <value>5228</value>
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      <sshPrnamt>78710</sshPrnamt>
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    <votingAuthority>
      <Sole>2710</Sole>
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      <None>76000</None>
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    <nameOfIssuer>Lattice Semiconductor Corporat</nameOfIssuer>
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    <value>2435</value>
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    <votingAuthority>
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      <Shared>0</Shared>
      <None>545861</None>
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    <nameOfIssuer>Lincoln National Corp.</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>534187109</cusip>
    <value>5225</value>
    <shrsOrPrnAmt>
      <sshPrnamt>124430</sshPrnamt>
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    <investmentDiscretion>SOLE</investmentDiscretion>
    <votingAuthority>
      <Sole>4080</Sole>
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      <None>120350</None>
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    <nameOfIssuer>Marin Software Incorporated</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>56804T106</cusip>
    <value>1906</value>
    <shrsOrPrnAmt>
      <sshPrnamt>151858</sshPrnamt>
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      <None>151858</None>
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    <nameOfIssuer>Mastercard Inc-Class A</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>57636Q104</cusip>
    <value>11054</value>
    <shrsOrPrnAmt>
      <sshPrnamt>16430</sshPrnamt>
      <sshPrnamtType>SH</sshPrnamtType>
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    <votingAuthority>
      <Sole>5295</Sole>
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      <None>11135</None>
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    <nameOfIssuer>McDonald's Corp</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>580135101</cusip>
    <value>5051</value>
    <shrsOrPrnAmt>
      <sshPrnamt>52500</sshPrnamt>
      <sshPrnamtType>SH</sshPrnamtType>
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    <votingAuthority>
      <Sole>31300</Sole>
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      <None>21200</None>
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    <nameOfIssuer>Merck &amp; Company</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>58933Y105</cusip>
    <value>4799</value>
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      <sshPrnamt>100800</sshPrnamt>
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    <investmentDiscretion>SOLE</investmentDiscretion>
    <votingAuthority>
      <Sole>3100</Sole>
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      <None>97700</None>
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    <nameOfIssuer>Metlife Inc</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>59156R108</cusip>
    <value>6625</value>
    <shrsOrPrnAmt>
      <sshPrnamt>141102</sshPrnamt>
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    <votingAuthority>
      <Sole>4185</Sole>
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      <None>136917</None>
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    <nameOfIssuer>Microsoft Corp</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>594918104</cusip>
    <value>5195</value>
    <shrsOrPrnAmt>
      <sshPrnamt>156100</sshPrnamt>
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      <Sole>97300</Sole>
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      <None>58800</None>
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    <nameOfIssuer>Middleby Corp</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>596278101</cusip>
    <value>2820</value>
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      <sshPrnamt>13500</sshPrnamt>
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    <votingAuthority>
      <Sole>0</Sole>
      <Shared>0</Shared>
      <None>13500</None>
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    <nameOfIssuer>Mistras Group, Inc.</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>60649T107</cusip>
    <value>901</value>
    <shrsOrPrnAmt>
      <sshPrnamt>53026</sshPrnamt>
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      <None>53100</None>
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    <nameOfIssuer>Unilife Corp.</nameOfIssuer>
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      <sshPrnamt>478912</sshPrnamt>
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      <None>478912</None>
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      <None>79140</None>
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    <titleOfClass>COM</titleOfClass>
    <cusip>92335C106</cusip>
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      <Sole>43100</Sole>
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      <None>101200</None>
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    <nameOfIssuer>Walt Disney Co.</nameOfIssuer>
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    <cusip>254687106</cusip>
    <value>8542</value>
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      <Sole>40950</Sole>
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      <None>91500</None>
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    <nameOfIssuer>Western Refining Inc.</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>959319104</cusip>
    <value>1682</value>
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      <None>56000</None>
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    <nameOfIssuer>Willbros Group, Inc.</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>969203108</cusip>
    <value>1298</value>
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      <sshPrnamt>141344</sshPrnamt>
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      <None>141344</None>
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    <nameOfIssuer>Xylem Inc.</nameOfIssuer>
    <titleOfClass>COM</titleOfClass>
    <cusip>98419M100</cusip>
    <value>9379</value>
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      <sshPrnamt>335800</sshPrnamt>
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    <votingAuthority>
      <Sole>103700</Sole>
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      <None>232100</None>
    </votingAuthority>
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      <Sole>0</Sole>
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      <None>319500</None>
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