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I Federal Supporting Statements Name s as shown on return FEIN Form 990EZ Part I Line 16 Other Expenses Schedule 2 Description Amount marketing conferences and seminar expense depreciation insurance office expense obsolete inventory adjustment 17 579 11 852 24 598 Total 64 322 Other Assets Schedule 3 Beginning of Year End of Year net accounts receivable inventory net equipment 174 903 156 746 178 557 159 979 Other Liabilities Schedule 3 accounts payable other STATMENT.
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Note 8. Summary of Significant Accounting Policies. The accompanying Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Actual results could differ from these estimates under different assumptions or conditions. Results of Operations Year Ended March 31, 2 2007 Revenues 26,071 23,882 20,624 Cost of revenues 2,873 2,853 2,756 Gross profit 16,025 15,852 15,907 Operating expenses: Research and development 9,908 8,832 8,096 Sales and marketing 2,823 2,859 2,822 General and administrative 3,131 2,932 2,797 Impairment of intangible assets 713 834 718 Total operating expenses 23,912 22,719 20,567 Operating earnings 5,058 2,933 2,895 Interest expenses (822) (944) (944) Other income (expense), net 586 619 617 Interest expense (net) associated with short-term investments in unconsolidated entities (2,061) 468 755 Income before provision for income taxes 5,041 2,937 2,864 Provision for income taxes 2,859 2,913 2,521 Income tax expense (422) (397) (391) Net earnings 4,743 2,936 2,871 Earnings per share Basic 1.43 1.38 1.29 Diluted 1.41 1.37 1.
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