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		Three Months Ended September 30,
		2007				2006
Revenue:
Products		$	45,222			$	39,847
Services			6,776				5,397
Total revenue			51,998				45,244
Cost of products and services:
Products			37,335				33,215
Services			5,110				3,880
Total cost of products and services			42,445				37,095
Gross profit			9,553				8,149
Selling, general and administrative expenses			8,543				7,432
Operating income			1,010				717
Interest and other income (expense), net			(17	)			(112	)
Income from continuing operations before income taxes			993				605
Income tax expense			7				43
Net income from continuing operations			986				562
Income (loss) from discontinued operations, net of income taxes			38				(291	)
Net income		$	1,024			$	271
Net income per share:
Basic:
Income from continuing operations		$	0.14			$	0.09
Income (loss) from discontinued operations, net of income taxes			—				(0.05	)
Net income per share		$	0.14			$	0.04
Diluted:
Income from continuing operations		$	0.12			$	0.08
Income (loss) from discontinued operations, net of income taxes			0.01				(0.04	)
Net income per share		$	0.13			$	0.04
Shares used in computing net income per share:
Basic			7,081,511				6,419,501
Diluted			8,037,221				7,284,261

 

 

		Nine Months Ended September 30,
		2007				2006
Revenue:
Products		$	131,690			$	95,480
Services			19,678				14,718
Total revenue			151,368				110,198
Cost of products and services:
Products			108,696				78,070
Services			14,567				10,940
Total cost of products and services			123,263				89,010
Gross profit			28,105				21,188
Selling, general and administrative expenses			25,757				20,278
Operating income			2,348				910
Interest and other income (expense), net			—				(215	)
Income from continuing operations before income taxes			2,348				695
Income tax expense			21				44
Net income from continuing operations			2,327				651
Income (loss) from discontinued operations, net of income taxes			97				(152	)
Net income		$	2,424			$	499
Net income per share:
Basic:
Income from continuing operations		$	0.34			$	0.10
Income (loss) from discontinued operations, net of income taxes			0.01				(0.02	)
Net income per share		$	0.35			$	0.08
Diluted:
Income from continuing operations		$	0.30			$	0.09
Income (loss) from discontinued operations, net of income taxes			0.01				(0.02	)
Net income per share		$	0.31			$	0.07
Shares used in computing net income per share:
Basic			6,870,521				6,233,674
Diluted			7,853,269				7,191,431

 

		September 30, 2007				December 31, 2006
		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents		$	8,514			$	1,795
Accounts receivable, net of allowance of $224 and $299			42,058				42,424
Inventory			1,573				1,157
Other current assets			2,301				2,086
Total current assets			54,446				47,462
Property and equipment, net of accumulated depreciation of $3,349 and $2,414			4,345				3,854
Goodwill			16,044				10,891
Intangible and other assets, net of accumulated amortization of $1,449 and $1,264			3,667				313
Total assets		$	78,502			$	62,520
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Notes payable		$	6,472			$	4,609
Accounts payable			34,312				28,798
Accrued expenses			5,918				5,038
Other current liabilities			1,550				1,385
Total current liabilities			48,252				39,830
Other long-term liabilities			526				306
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $.01 par value, 5,000,000 shares authorized, no shares issued			—				—
Common stock, $.01 par value, 15,000,000 shares authorized, 7,393,582 and 6,603,070 shares issued			74				66
Additional paid-in capital			35,506				30,598
Retained deficit			(5,856	)			(8,280	)
Total stockholders’ equity			29,724				22,384
Total liabilities and stockholders’ equity		$	78,502			$	62,520