We've increased our Industrial forecast from $380 million to a range midpoint of $397 million plus or minus $10 million. The change is primarily the addition of Curlin Medical. Once again, based on current performance, we've increased our margin forecast from 10.4% to 12.3%.

In the Components Group, we've increased our sales forecast rather dramatically to $229 million and increased our margin forecast from 14.6% to 15.1%.

In terms of net earnings, we're now forecasting a range of $78.8 to $82.2 million. The midpoint of that range would be $80.5 million. As you know, we recently increased our share base and for '06 we'll have 41.250 million average shares outstanding. So, the $80.5 million would generate $1.95 a share. Year to date, we're at $.96 per share and we're now projecting $.49 for the third quarter and $.50 for the fourth. The $1.95 for the year would be an 18.9% increase over the reported $1.64 a share in fiscal '05. If we adjusted fiscal '05 to $1.60 to reflect the expensing of stock options, the increase in earnings per share would be 22%.

In addition to generating these financial results, there are a lot of exciting things happening in our Company.

In the Aircraft business, we're close to completion of the design and development of flight controls for the F-35. It'll fly very shortly. I've described the major effort on the 787. We're making good progress on the Airbus A400M and the Northrop Grumman X-47.

The Space and Defense business is in the midst of a major turnaround. It began with the improvement in the satellite product line. Defense Controls continues to build momentum. At the same time, there's extensive proposal activity underway for the Space Shuttle replacement programs.

Our Industrial business continues to grow and prosper. Europe is holding its own, in spite of economic difficulties in some of the European countries. Our Asian subsidiaries are riding the growth wave in China. Our Company in the US is transforming itself from a supplier of hydraulic servovalves and actuators to a manufacturer of electric systems for motion simulators.

And, last but by no means least, our Components Group, having recently acquired a major competitor, will have grown from the $130 million company we acquired at the beginning of fiscal '04 to a company doing close to $230 million only three years later. And, throughout this period of dramatic growth, the Components Group has maintained more than respectable profitability.

With that, I'll turn you over to Bob Banta, who will discuss cash, debt, pension funding and other financial details.

Our substantial increase in sales this quarter required more working capital. Accounts receivable increased by $16.3 million and inventories by $12.1 million from levels 90 days ago. After adjusting for the $85 million we received from our equity offering in February, our debt, net of cash balances, went up by $5 million. Cash flow from operations was $26 million in the first six months of '06 of which $9 million was generated in Q2.

Depreciation and amortization amounted to $11.2 million in the quarter while capital expenditures totaled $20.3 million in Q2. Capital expenditures have increased as we get ready for all the work we will be doing on the production of 787 flight controls. The Dreamliner production ramp up starts in 2007 for us. Specialized test rigs and tooling are critical and expensive items. We are also expanding our production capabilities in the Philippines where we'll produce our 787 hardware. Through six months, our capital expenditures were $37.2 million. For all of '06, we now see capital expenditures running about $65 million vs. depreciation and amortization of $44 million.