Given the current depressed conditions the earnings report was quite respectable. The service sector is expanding and there is substantial additional growth potential.

The deal with Fresia looks exciting and adds a new dimension to the company. Look at Fresia's web site and you will be impressed.

The company has (1) NO debt; (2) over $5m in cash;(3)a $14m backlog; (4) is trading at a low p/e; (5) is doing a fine job effecting a plan to diversity operations and (6) has competent management that has shown real integrity. Top it off with a healthy (and growing dividend) and you have a very solid micro cap investment.

You can't expect the company to be operating on all cylinders in such a difficult economic environment. To be more then marginally profitable is quite a feat for small companies in the manufacturing and equipment sales sector.

I am satisfied with the earnings and feel confident that the company's business model is sound and its future bright. At $9-$10 share the stock is still real cheap.