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Wiki	Wiki Summary
Company	A company, abbreviated as co., is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective. Company members share a common purpose and unite to achieve specific, declared goals.
The Walt Disney Company	The Walt Disney Company, commonly known as Disney (), is an American multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California.\nDisney was originally founded on October 16, 1923, by brothers Walt and Roy O. Disney as the Disney Brothers Cartoon Studio; it also operated under the names the Walt Disney Studio and Walt Disney Productions before changing its name to the Walt Disney Company in 1986.
East India Company	The East India Company (EIC) was an English, and later British, joint-stock company founded in 1600. It was formed to trade in the Indian Ocean region, initially with the East Indies (the Indian subcontinent and Southeast Asia), and later with East Asia.
The Longaberger Company	The Longaberger Company is an American manufacturer and distributor of handcrafted maple wood baskets and other home and lifestyle products. The company opened in 1973, was acquired in 2013 by CVSL, Inc., and closed in 2018.
Bitwise operation	In computer programming, a bitwise operation operates on a bit string, a bit array or a binary numeral (considered as a bit string) at the level of its individual bits. It is a fast and simple action, basic to the higher-level arithmetic operations and directly supported by the processor.
Operations management	Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements.
Emergency operations center	An emergency operations center (EOC) is a central command and control facility responsible for carrying out the principles of emergency preparedness and emergency management, or disaster management functions at a strategic level during an emergency, and ensuring the continuity of operation of a company, political subdivision or other organization.\nAn EOC is responsible for strategic direction and operational decisions and does not normally directly control field assets, instead leaving tactical decisions to lower commands.
Surgical instrument	A surgical instrument is a tool or device for performing specific actions or carrying out desired effects during a surgery or operation, such as modifying biological tissue, or to provide access for viewing it. Over time, many different kinds of surgical instruments and tools have been invented.
E-commerce	Commerce is the exchange of goods and services, especially on a large scale.\n\n\n== Etymology ==\nThe English-language word commerce has been derived from the Latin word commercium, from com ("together") and merx ("merchandise").
Profit (economics)	An economic profit is the difference between the revenue a commercial entity has received from its outputs and the opportunity costs of its inputs. It equals to total revenue minus total cost, including both explicit and implicit costs.
SAP ERP	SAP ERP is an enterprise resource planning software developed by the German company SAP SE. SAP ERP incorporates the key business functions of an organization. The latest version of SAP ERP (V.6.0) was made available in 2006.
Small Is Profitable	Small Is Profitable: The Hidden Economic Benefits of Making Electrical Resources the Right Size is a 2002 book by energy analyst Amory Lovins and others. The book describes 207 ways in which the size of "electrical resources"—devices that make, save, or store electricity—affects their economic value.
Customer relationship management	Customer relationship management (CRM) is a process in which a business or other organization administers its interactions with customers, typically using data analysis to study large amounts of information.CRM systems compile data from a range of different communication channels, including a company's website, telephone, email, live chat, marketing materials and more recently, social media. They allow businesses to learn more about their target audiences and how to best cater for their needs, thus retaining customers and driving sales growth.
Development/For!	Development/For! (Latvian: Attīstībai/Par!, AP!) is a liberal political alliance in Latvia.
Personal development	Personal development or self improvement consists of activities that develop a person's capabilities and potential, build human capital, facilitate employability, and enhance quality of life and the realization of dreams and aspirations. Personal development may take place over the course of an individual's entire lifespan and is not limited to one stage of a person's life.
Semiconductor device fabrication	Semiconductor device fabrication is the process used to manufacture semiconductor devices, typically the metal–oxide–semiconductor (MOS) devices used in the integrated circuit (IC) chips such as modern computer processors, microcontrollers, and memory chips such as NAND flash and DRAM that are present in everyday electrical and electronic devices. It is a multiple-step sequence of photolithographic and chemical processing steps (such as surface passivation, thermal oxidation, planar diffusion and junction isolation) during which electronic circuits are gradually created on a wafer made of pure semiconducting material.
4–4–5 calendar	The 4–4–5 calendar is a method of managing accounting periods, and is a common calendar structure for some industries such as retail and manufacturing. It divides a year into four quarters of 13 weeks, each grouped into two 4-week "months" and one 5-week "month".
Semiconductor fabrication plant	In the microelectronics industry, a semiconductor fabrication plant (commonly called a fab; sometimes foundry) is a factory where devices such as integrated circuits are manufactured.Fabs require many expensive devices to function. Estimates put the cost of building a new fab over one billion U.S. dollars with values as high as $3–4 billion not being uncommon.
Applied Materials	Applied Materials, Inc. is an American corporation that supplies equipment, services and software for the manufacture of semiconductor (integrated circuit) chips for electronics, flat panel displays for computers, smartphones, televisions, and solar products.
Income tax in the United States	Income taxes in the United States are imposed by the federal government, and most states. The income taxes are determined by applying a tax rate, which may increase as income increases, to taxable income, which is the total income less allowable deductions.
Free cash flow	In corporate finance, free cash flow (FCF) or free cash flow to firm (FCFF) is the amount by which a business's operating cash flow exceeds its working capital needs and expenditures on fixed assets (known as capital expenditures). It is that portion of cash flow that can be extracted from a company and distributed to creditors and securities holders without causing issues in its operations.
Expenses versus capital expenditures	Under the U.S. tax code, businesses expenditures can be deducted from the total taxable income when filing income taxes if a taxpayer can show the funds were used for business-related activities, not personal or capital expenses (i.e., long-term, tangible assets, such as property). Capital expenditures either create cost basis or add to a preexisting cost basis and cannot be deducted in the year the taxpayer pays or incurs the expenditure.In terms of its accounting treatment, an expense is recorded immediately and impacts directly the income statement of the company, reducing its net profit.
Global saving glut	A global saving glut (also GSG, cash hoarding, dead cash, dead money, glut of excess intended saving, or shortfall of investment intentions) is a situation in which desired saving exceeds desired investment. By 2005 Ben Bernanke, chairman of the Federal Reserve, the central bank of the United States, expressed concern about the "significant increase in the global supply of saving" and its implications for monetary policies, particularly in the United States.
Gross fixed capital formation	Gross fixed capital formation (GFCF) is a macroeconomic concept used in official national accounts such as the United Nations System of National Accounts (UNSNA), National Income and Product Accounts (NIPA) and the European System of Accounts (ESA). The concept dates back to the National Bureau of Economic Research (NBER) studies of Simon Kuznets of capital formation in the 1930s, and standard measures for it were adopted in the 1950s.
WorldCom scandal	The WorldCom scandal was a major accounting scandal that came to light in the summer of 2002 at WorldCom, the USA's second-largest long-distance telephone company at the time. From 1999 to 2002, senior executives at WorldCom led by founder and CEO Bernard Ebbers orchestrated a scheme to inflate earnings in order to maintain WorldCom's stock price.
June 1	June 1 is the 152nd day of the year (153rd in leap years) in the Gregorian calendar; 213 days remain until the end of the year.\n\n\n== Events ==\n\n\n=== Pre-1600 ===\n1215 – Zhongdu (now Beijing), then under the control of the Jurchen ruler Emperor Xuanzong of Jin, is captured by the Mongols under Genghis Khan, ending the Battle of Zhongdu.
June Preston	June Preston (December 29, 1928 – May 11, 2022) was an American child actress in the 1930s and early 1940s, who began her film career at RKO Pictures, with a minor role as Mrs. Blewett's daughter in the 1934 film Anne of Green Gables.
June 6	June 6 is the 157th day of the year (158th in leap years) in the Gregorian calendar; 208 days remain until the end of the year.\n\n\n== Events ==\n\n\n=== Pre-1600 ===\n\n913 – Constantine VII, the eight-year-old illegitimate son of Leo VI the Wise, becomes nominal ruler of the Byzantine Empire under the regency of a seven-man council headed by Patriarch Nicholas Mystikos, appointed by Constantine's uncle Alexander III on his deathbed.
Of June	Of June is the first EP by American electronic music project Owl City. It was uploaded by Adam Young to his Myspace page on August 29, 2007.Following the surprise success of Owl City's second studio album, Ocean Eyes, Of June was pressed and re-released by Universal Republic on March 30, 2010.
Ames (department store)	Ames Department Stores Inc. was an American chain of discount stores based in Rocky Hill, Connecticut, United States.
International Public Sector Accounting Standards	International Public Sector Accounting Standards (IPSAS) are a set of accounting standards issued by the IPSAS Board for use by public sector entities around the world in the preparation of financial statements. These standards are based on International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB).
Blue Star (company)	Blue Star Ltd, is an Indian multinational home appliances company, headquartered in Mumbai, India. This company manufacturer, air conditioning, commercial refrigeration and MEP (Mechanical, Electrical, Plumbing and Fire-fighting) with over 78 years of experience.
Attributable risk	In epidemiology, attributable risk or excess risk is a term synonymous to risk difference, that has also been used to denote attributable fraction among the exposed and attributable fraction for the population.
Iran	Iran (Persian: ایران Irân [ʔiːˈɾɒːn] (listen)), also called Persia, and officially the Islamic Republic of Iran, is a country in Western Asia. It is bordered by Iraq and Turkey to the west, by Azerbaijan and Armenia to the northwest, by the Caspian Sea and Turkmenistan to the north, by Afghanistan and Pakistan to the east, and by the Gulf of Oman and the Persian Gulf to the south.
Flowering plant	Flowering plants are plants that bear flowers and fruits, and form the clade Angiospermae (), commonly called angiosperms. The term "angiosperm" is derived from the Greek words angeion ('container, vessel') and sperma ('seed'), and refers to those plants that produce their seeds enclosed within a fruit.
Income tax in Australia	Income tax in Australia is imposed by the federal government on the taxable income of individuals and corporations. State governments have not imposed income taxes since World War II. On individuals, income tax is levied at progressive rates, and at one of two rates for corporations.
Corporation tax in the Republic of Ireland	Ireland's Corporate Tax System is a central component of Ireland's economy. In 2016–17, foreign firms paid 80% of Irish corporate tax, employed 25% of the Irish labour force (paid 50% of Irish salary tax), and created 57% of Irish OECD non-farm value-add.

Risk Factors
AMERICAN TECHNICAL CERAMICS CORP &quote Item 1A RISK FACTORS &quote identify certain factors that could cause such differences
In addition to statements which explicitly describe risks and uncertainties, readers are urged to consider statements labeled with terms such as &quote believes &quote , &quote belief &quote , &quote expects &quote , &quote plans &quote , &quote anticipates &quote , or &quote intends &quote to be uncertain and forward-looking
All cautionary statements made and risk factors contained in this Annual Report on Form 10-K should be read as being applicable to all related forward-looking statements wherever they appear
Any forward-looking statement represents the Companyapstas expectations or forecasts only as of the date it was made and should not be relied upon as representing its expectations or forecasts as of any subsequent date
The Company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise, even if its expectations or forecasts change
ITEM 1A RISK FACTORS The Companyapstas business, operations, and financial condition are subject to various risks
This section does not describe all risks that may be applicable to the Company, the Companyapstas industry, or the Companyapstas business, and it is intended only as a summary of certain material risk factors
The Companyapstas products are used in the production of a variety of highly complex electronic products manufactured for the military and for commercial use
Accordingly, demand for the Companyapstas products is highly dependent upon demand for the products in which they are used
From time to time, including th e first half of fiscal year 2004, the Companyapstas results have been negatively impacted by a general decrease in demand for technology and electronic products in the United States and abroad
There can be no assurance that, if demand for such products declines, it will increase again or that, even if it does increase, the demand for the Companyapstas products will increase
In addition, there can be no assurance that the Company will not receive order cancellations after orders are booked into backlog
Moreover, a majority of the Companyapstas costs are fixed, and the Company may not be able to reduce costs if sales volumes were to decline
The Company produces and ships product based upon orders received from its customers
If these orders are cancelled prior to shipment, it could affect the Companyapstas profitability
The Company offers a broad variety of products to its customers
Gross margins can vary significantly from product to product and across product lines
Accordingly, a change in the mix of products sold by the Company during a particular period could lead to distinctly different financial results for that period as compared to other periods
The Company expects that international sales will continue to constitute a substantial portion of its total sales
These sales expose the Company to certain risks, including, without limitation, barriers to trade, fluctuations i n foreign currency exchange rates (which may make the Companyapstas products less price competitive), political and economic instability, changes in monetary policy, tariff regulations and other United States and foreign laws and regulations that may apply to the export of the Companyapstas products, as well as the generally greater difficulties of doing business abroad
10 During fiscal year 2006, the Companyapstas ten largest customers accounted for approximately 25prca of net sales
The Company expects that sales to a relatively small number of customers will continue to account for a significant portion of its net sales for the foreseeable future
A loss of one or more of such key customers could affect the Companyapstas profitability
Moreover, an increasing amount of the Companyapstas sales are to contract manufacturers
Several contract manufacturers to whom the Company sells parts could be selling their products t o the same end customer
The discontinued use of these contract manufacturers &apos products (or of their products which incorporate the Companyapstas parts) by the en d customer could affect the Companyapstas profitability
The technology upon which the Companyapstas products are based is subject to continuous development of materials and processes
The Companyapstas business is in large part contingent upon the continuous refinement of its technological and engineering expertise and the development of new or enhanced products and technologies to meet the rapidly developing demands of new applications and increased competition
There can be no assurance that the Company will continue to be successful in its efforts to develop new or refine existing products, tha t such new products will meet with anticipated levels of market acceptance or tha t the Company will otherwise be able to timely identify and respond to technological improvements made by its competitors
Significant technological breakthroughs by others could also have a material adverse effect on the Companyapstas business
The Companyapstas business may be adversely affected by difficulties in obtaining raw materials and other items needed for the production of its products, the effects of quality deviations in raw materials and fluctuations i n prices of such materials
Palladium, a precious metal used in the production of the Companyapstas capacitors, is currently available from a limited number of metal dealers who obtain product from the Republic of South Africa or the Russian Federation
A prolonged cessation or reduction of exports of palladium by the Republic of South Africa or the Russian Federation, or a significant increase i n the price of palladium, could have a material adverse effect on the Companyapstas business
MANAGEMENT &apos S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS &quote
Certain raw materials used by the Company may fluctuate in price
To the extent that the Company is unable to pass on increases in the costs of such materials to its customers, this may adversely affect the gross profit margins of those products using such materials
At times, the Company will enter into contracts to purchase certain raw materials in the future at agreed upon prices in order to protect against shortages and rising prices
If the Company were to do so and prices were to decline, the Company would be required to purchase suc h raw materials at or above market prices which would also negatively impact gros s profit margins
Competition in the MLC industry is intense and, in general, is based primarily on price
In the RF/Microwave market segments, where price has historically been less important, competition has been based primarily on high performance product specifications, achieving consistent product reliability, fast deliveries and high levels of customer service
The Company competes with a number of large MLC manufacturers who have broader product lines and greater financial, marketing and technical resources than the Company
Growth of some commercial market applications has increased, and is expected to continue to increase, the competitive importance of price
There can be no assurance that the Company will be able to improve the productivity and efficiency of its manufacturing processes in order to respond to pricing pressures, or to successfully design new processes and products; and the failure to do so could have a material adverse effect on the Companyapstas business
The Company produces hazardous wastes in the production of its capacitors
Accordingly, the inherent risks of environmental liability and remediation cost s associated with the Companyapstas manufacturing operations may result in substantia l unforeseen liabilities
The Company is also subject to various federal, state, local and foreign laws regulating or prohibiting the use of certain materials in the manufacture of its products
As part of its research and development efforts, the Company continues to develop and test new materials and products designed to comply wit h these laws
However, there can be no assurance that the Company will be able to develop replacement materials or products for those which may become prohibited in the future, or that competitors will not develop superior compliant products
11 The Company has not received any claims that its products or the technologies upon which they are based infringe the intellectual property right s of others
Any such claims in the future may result in the Company being required to enter into royalty arrangements, cease manufacturing the infringing products or utilizing the infringing technologies, pay damages or defend litigation, any of which could have a material adverse effect on the Companyapstas business
The Companyapstas business may also be adversely affected by matters and event s affecting businesses generally, including, without limitation, political and economic events, labor unrest, acts of God, war, acts of terrorism and other events outside of the Companyapstas control
REGARDING FORWARD-LOOKING STATEMENTS &quote and &quote Item 1A RISK FACTORS &quote in Part I of this Report
GENERAL Bookings reached record levels and sales were near record levels for the fiscal year ended June 30, 2006
The Company experienced increased sales and bookings to customers in most of the Companyapstas major markets, particularly the wireless infrastructure, fiber optic and semiconductor equipment markets
Management believes that these increases resulted from improved market conditions, increased market share and the growth in sales of new products
Sales growth was exceptionally strong in Asia
In order to improve service to our Asian customers and further foster sales growth in that region, the Company began stocking inventory in China late in fiscal year 2006
The Company believes maintaining inventory in the Far East will help it develop a competitive advantage in terms of delivery
Net income increased from the prior fiscal year due to the increased sales volume
However, profits were adversely impacted in the first quarter of fiscal year 2006 by difficulties encountered while converting certain of the Companyapstas operations to its Enterprise Resource Planning ( &quote ERP &quote ) system
As the Company began to implement the conversion, it encountered a series of unanticipated problems beyond the planned closure period that disrupted its ability to book orders, manufacture and ship product
As a result, the Company decided to rever t to its legacy systems for these functions so that it could resume shipping products and restore the high level of service its customers have grown to expect
The Company incurred substantial costs related to these efforts, thereb y tempering profit improvement
The Companyapstas preliminary analysis of the problem s encountered indicates that they can be successfully overcome, and the Company i s reformulating its ERP implementation plans accordingly
The Company continues to develop new products and processes
A considerabl e portion of the capital expenditures for the fiscal year ended June 30, 2006 wer e for equipment related to new processes or new product manufacturing
During fiscal year 2006, the Company purchased dlra2dtta8 million of equipment from CTS Corporation
The equipment will be used to increase overall capacity and add additional capabilities to the Companyapstas co-fired ceramic packaging product line
The Company is in the process of qualifying the equipment
The Company funded its capital expenditures through cash flow from operations and its credit facility with General Electric Capital Corporation ( &quote GECC &quote )
During the fiscal year ended June 30, 2006, the Company borrowed approximately dlra2dtta5 million under its credit facility with GECC, and the Companyapstas Swedish subsidiary borrowed an additional dlra1dtta5 million from Svenska Handelsbanken, AB ( &quote Handelsbanken &quote )
The funds borrowed by the Companyapstas Swedis h subsidiary were used to pay a dividend to the Company, a portion of which was made under the repatriation provisions of the American Jobs Creation Act of 2004
16 RESULTS OF OPERATIONS KEY COMPARATIVE PERFORMANCE INDICATORS Fiscal Year Ended --------------------------------------------- June 30, 2006 June 30, 2005 June 30, 2004 ------------- ------------- ------------- Sales dlra84cmam131cmam000 dlra72cmam965cmam000 dlra61cmam183cmam000 Bookings dlra89cmam163cmam000 dlra73cmam419cmam000 dlra65cmam517cmam000 Gross Margin dlra29cmam097cmam000 dlra24cmam582cmam000 dlra20cmam437cmam000 Gross Margin 34dtta6prca 33dtta7prca 33dtta4prca Operating Expenses dlra20cmam144cmam000 dlra18cmam115cmam000 dlra17cmam909cmam000 Operating Expenses 23dtta9prca 24dtta8prca 29dtta3prca SIGNIFICANT HIGHLIGHTS Sales and bookings for the fiscal year ended June 30, 2006 increased 15prca and 21prca, respectively, over the prior fiscal year
FISCAL YEAR 2006 COMPARED WITH FISCAL YEAR 2005 Net sales for the fiscal year ended June 30, 2006 were dlra84cmam131cmam000, an increase of 15prca from the dlra72cmam965cmam000 recorded in the fiscal year ended June 30, 2005
International sales increased by 21prca to dlra41cmam387cmam000 in fiscal year 2006 from dlra34cmam146cmam000 in fiscal year 2005
The increase in sales is due to the improved business climate in a majority of the markets the Company serves, increased market penetration and growth in sales of newer product lines
Sales growth has been particularly robust in the wireless infrastructure and semiconductor equipment markets since the second half of fiscal year 2005
Bookings have improved significantly from the levels experienced in fiscal year 2005
Growth has come from a majority of the markets the Company serves, but was particularly strong in the wireless infrastructure, semiconductor equipment and fiber optic markets
The increase in gross margins is attributable to higher sales volume and the economics associated with higher production volumes, offset in part by increased precious metal costs and difficulties encountered while converting certain of the Companyapstas operations to its ERP system during the first quarter of fiscal year 2006
Operating expenses totaled dlra20cmam144cmam000, or 24prca of net sales, in fiscal yea r 2006, compared to dlra18cmam115cmam000, or 25prca of net sales, in fiscal year 2005
The increase in operating expenses in absolute terms compared to the prior fiscal year is attributable to increased commissions as a result of increased sales an d bookings, increased bonus expense as a result of increased profit levels, increased stock related compensation due to the adoption of a new accounting standard on share-based payments, increased professional fees (in part related to the adoption of the new accounting standard), increased depreciation and increased costs relating to the Companyapstas sales office in China
The trend toward customers moving production offshore has continued
Accordingly, a growing portion of the Companyapstas sales are to customers in Asia
Consequently, the Company continues to expand its sales offices in China to better service it s customers in that region
17 Research and development expenses for the fiscal year ended June 30, 2006 decreased 8prca to dlra1cmam986cmam000, compared to dlra2cmam161cmam000 in the prior fiscal year
Th e decrease was primarily the result of decreased headcount and decreased supply consumption
The effective income tax rate for both fiscal year 2006 and 2005 was approximately 29prca
In fiscal year 2006, the Companyapstas effective tax rate was favorably impacted by an approximately dlra500cmam000 reduction of tax reserves primarily due to the expiration of a statute of limitations and audit settlements for less than the amounts reserved
In fiscal year 2005, the Companyapstas effective tax rate was favorably impacted by Extraterritorial Income Exclusion benefits and benefits from state tax law changes
As a result of the foregoing, the Company reported net income of dlra5cmam988cmam000, or dlra0dtta70 per common share and dlra0dtta67 per common share assuming dilution, for fiscal year 2006, compared to net income of dlra4cmam268cmam000, or dlra0dtta51 per common share and dlra0dtta49 per common share assuming dilution, for fiscal year 2005
FISCAL YEAR 2005 COMPARED WITH FISCAL YEAR 2004 Net sales for the fiscal year ended June 30, 2005 were dlra72cmam965cmam000, an increase of 19prca from the dlra61cmam183cmam000 recorded in the fiscal year ended June 30, 2004
International sales increased by 18prca to dlra34cmam146cmam000 in fiscal year 2005 from dlra28cmam949cmam000 in fiscal year 2004
The increase in sales was due to the improved business climate in a majority of the markets the Company serves, increased market penetration and growth in sales of newer product lines
Sales growth was particularly significant in the wireless infrastructure and semiconductor equipment markets in the second half of fiscal year 2005
Bookings improved significantly in fiscal year 2005 from the levels experienced in fiscal year 2004
Growth has come from a majority of the markets the Company serves, but was particularly strong in the wireless infrastructure and semiconductor equipment markets
The increase in gross margins was attributable to higher sale s volume and the economics associated with higher production volumes, offset in part by increased fixed overhead and increased levels of scrap
During fiscal year 2005, the Company continued to expand its capacity in order to meet the increased demand for its products and to accommodate expected future growth resulting in increased fixed costs
Operating expenses totaled dlra18cmam115cmam000, or 25prca of net sales, in fiscal yea r 2005, compared to dlra17cmam909cmam000, or 29prca of net sales, in fiscal year 2004
The increase in operating expenses in absolute terms compared to the prior fiscal year is attributable to increased sales staff in response to increased booking and quoting activity and increased commissions, partially offset by lower research and development expense
The trend toward customers moving production offshore has continued
Accordingly, a growing portion of the Companyapstas sales are to customers in Asia and Europe
Consequently, the Company continues to expand its foreign sales offices in China and Europe to better service its customers
Research and development expenses for the fiscal year ended June 30, 2005 decreased 30prca to dlra2cmam161cmam000, compared to dlra3cmam067cmam000 in the prior fiscal year
The decrease was primarily the result of redesignation of certain research and development personnel to production support in connection with the maturation o f certain new products from the development stage to commercial acceptance
18 The effective income tax rate for fiscal year 2005 was approximately 29prca, as compared to 2prca for fiscal year 2004
In fiscal year 2005, the Companyapstas effective tax rate was favorably impacted primarily by Extraterritorial Income Exclusion benefits and benefits from State tax law changes
In fiscal year 2004 , the Company benefited from the reduction of tax reserves due to audit settlements and updated evaluations and the impact of foreign tax benefits in relation to the lower level of pre-tax income
As a result of the foregoing, the Company reported net income of dlra4cmam268cmam000, or dlra0dtta51 per common share and dlra0dtta49 per common share assuming dilution, for fiscal year 2005, compared to net income of dlra2cmam176cmam000, or dlra0dtta27 per common share and dlra0dtta25 per common share assuming dilution, for fiscal year 2004
LIQUIDITY AND CAPITAL RESOURCES June 30, 2006 June 30, 2005 ------------- ------------- Cash and Investments $ 8cmam324cmam000 $ 6cmam950cmam000 Working Capital dlra46cmam649cmam000 dlra39cmam032cmam000 Operating Cash Flow $ 5cmam668cmam000 $ 4cmam526cmam000 Capital Expenditures $ 8cmam309cmam000 $ 8cmam784cmam000 Depreciation and Amortization $ 6cmam207cmam000 $ 5cmam383cmam000 Current Ratio 4dtta8:1 5dtta3:1 Quick Ratio 1dtta7:1 1dtta9:1 The Companyapstas financial position at June 30, 2006 remains strong as evidenced by working capital of dlra46cmam649cmam000, compared to working capital of dlra39cmam032cmam000 at June 30, 2005
The Companyapstas current ratio and quick ratio at June 30, 2006 remain strong although slightly lower than at June 30, 2005
Cash and investments increased to dlra8cmam324cmam000 at June 30, 2006, compared to dlra6cmam950cmam000 at June 30, 2005
The increase in cash and investments is primarily the result of positive cash flow from operations, cash from stock option exercises and loan proceeds in excess of capital expenditures
Accounts receivable increased by dlra2cmam711cmam000 to dlra12cmam719cmam000 at June 30 2006, compared to dlra10cmam008cmam000 at June 30, 2005
The increase is primarily due to improved sales i n the fourth quarter of fiscal year 2006 compared to the fourth quarter of fiscal year 2005
Inventories increased by dlra5cmam715cmam000 to dlra33cmam255cmam000 at June 30, 2006, compared to dlra27cmam540cmam000 at June 30, 2005, primarily as a result of precious metal purchases during the year, higher precious metal costs, increases to finished goods inventories to support higher sales levels and increases in inventory levels of newer product lines
The precious metal purchases were made in anticipation of future production requirements and potential price increases
The Company continues to maintain high finished goods inventory levels to keep customer lead times to a minimum and maintain good customer service
Current portion of long-term debt increased due to borrowings under the GECC line of credit and borrowings at the Companyapstas Swedish subsidiary
Account s payable increased by dlra556cmam000, to dlra3cmam005cmam000 at June 30, 2006 compared to dlra2cmam449cmam000 at June 30, 2005, due in part to increased purchasing activity to keep pace with higher production levels and in part to capital expenditures
Accrued expenses increased by dlra603cmam000 to dlra6cmam192cmam000 at June 30, 2006, compared to dlra5cmam589cmam000 at June 30, 2005, due to increased commission accruals as the result of increased bookings and sales, increased bonus accruals as a result of improved profits and increased payroll related accruals
Income taxes payable increased dlra1cmam002cmam000 to dlra1cmam002cmam000 at June 30, 2006 compared to dlra14cmam000 income tax receivable at June 30, 2005, primarily due to increased taxable income, partially offset by tax reserve reductions
The Company leases its facilities in Jacksonville, Florida from a partnership controlled by the Companyapstas President, Chief Executive Officer and principal stockholder under a capital lease
The rental payments under this lease have been adjusted several times, primarily to reflect certain additions to the facilities and market value adjustments as 19 required by the terms of the lease based upon independent appraisals and for