A broad collection of other industrial applications generated sales of $11.8 million in this quarter, up 40% from a year ago. Our industrial products are used in a broad spectrum of applications ranging from electric motors used in oxygen concentrators to slip rings used in closed circuit TV systems.

Margins in the Components Group depend a lot on product mix. Last quarter, margins were 14.1% and it seemed sensible to project a continuation of that level. This quarter, margins came in at 16.4 %, up from last quarter and from the 14.6% of a year ago.

Components Update for '06

Our most recent guidance for the year was $229 million. Based on the last quarter's performance, we think it's reasonable to increase that to $234 million. Year-to-date margins average 16.2% and if the fourth quarter achieves 16.4% like the third quarter, we'll finish the year at 16.3%.

Components Forecast for '07

Like our Industrial business, sales forecasting in the Components Group may be more art than science. Nevertheless, we've made a projection of '07 sales at $258 million, an increase of 10% over this year. We're projecting continued increases in aircraft products and in controls for the Bradley and Abrams. In the industrial arena we're getting the benefit of using our international network to sell the Components Group product line. We're projecting a leveling off in '07 in marine and medical products.

We've done a bottoms-up cost and profit analysis, which suggests margins of 16.4%, up slightly from what we think we'll achieve in fiscal '06.

Medical Devices '06 and '07

I'm sure you're all aware that, at the beginning of this quarter, we acquired the assets of the Curlin Medical Corporation, a manufacturer of infusion pumps. This was the culmination of a study conducted over a two-year period to determine whether our Company 's capabilities in design and manufacturing and the disciplines that allow us to produce a reliable product will allow us to participate in the growing markets for healthcare and medical devices. This initiative led us to the acquisition of Curlin Medical. We completed the transaction one week into the start of the third quarter. We've decided to report the results of Curlin Medical as the beginning of a medical device's segment. It'll be a very small segment to start with, but we're hopeful, that before long, it will make a meaningful contribution to our overall results.

In the twelve weeks since the acquisition, Curlin generated $6.6 million in revenues on the sale of 3,100 pumps and associated administration sets. Although the profit contribution generated by those sales was well over 30%, the purchase accounting impact of inventory step-up and amortization of intangibles resulted in an operating loss of $239,000.