Sales in the marine market, which is primarily the Focal product line, added $23 million to our business. Medical equipment was up 30% to $47 million and industrial sales were up 38% to $46 million.

Components Margins

Margins in the Components Group are very strong. In the quarter, margins were 13.5%, up from 12.3% in the fourth quarter of last year. For the year, margins came in at a remarkable 15.5% up from 13.5% a year ago.

Components Fiscal '07

Our '07 forecast for the Components Group of $258 million will be a 9% increase over fiscal '06. Given the recent growth pattern, this may seem like a conservative estimate, and perhaps it is. However, we believe that sales growth in our military aircraft and defense controls products have been largely influenced by the conflict in the Mideast and it may be that the current level is a continuing level and not one that's going to grow at last year's rate. We feel the same way about the marine products. They've been driven to the '06 level by the resurgent interest in energy exploration and it may be that although the current level will be sustained, it won't grow in '07.

With respect to our components used in medical devices and industrial systems, we are projecting growth rates that reflect our long-term pattern as opposed to the 30+% increases of fiscal '06.

All in all, we consider our '07 forecast to be an achievable one. Our original guidance on margins for the Components Group was 16.4%. Given the performance of the last quarter, we think, it's sensible to moderate that projection and to project '07 at 15.6%, the same level achieved in fiscal '06.

Medical Devices Q4'06

You'll recall that we announced toward the end of our fourth quarter the acquisition of two disposable pump product lines from McKinley to complement our Curlin products. During the quarter, we transferred the production of the McKinley products from their former location in Denver to our Curlin plant in Huntington Beach. Our fourth quarter sales for Medical Devices came in at $6.4 million including about one month's sales for our new McKinley products. This compares to third quarter sales of $6.6 million and to our forecast for this quarter of $6.5 million. On a year-to-date basis, which really just began in the middle of our fiscal year, sales in our new Medical Devices group were $13 million, about what we were targeting.

Pump sales during the quarter came in at $4.1 million, the same as our third quarter level. We experienced the summer slowdown for pump sales that we were expecting, but lower Curlin pump sales were offset by the new McKinley product sales of about $500,000.

Sales of the administration sets were surprisingly soft in the quarter at $1.1 million. We learned that B. Braun, our major distributor in the U.S., had gotten overstocked on sets and, as a result, our sales were $800,000 below what we'd forecasted. The impact of the sales shortfall was a big whack on operating profit since administration sets are the more profitable part of our medical devices product line.