MANAGEMENT’S DISCUSSION
The following discussion of the Company’s financial condition and results of operations should be read together with the other financial
information and consolidated financial statements included in this Annual Report. This discussion contains forward-looking statements that
involve risks and uncertainties. The Company’s actual results could differ materially from the results anticipated in the forward-looking statements
as a result of a variety of factors, including those discussed in “Forward Looking Statements” and elsewhere in this Annual Report. 
OVERVIEW 
The Company designs, develops, manufactures, markets, sells and distributes products and components, primarily for the medical and health care industry.
The Company markets components to other equipment manufacturers for incorporation in their products and sells finished devices to physicians, hospitals,
clinics and other treatment centers. The Company’s products and services primarily range from ophthalmology and cardiovascular products to fluid delivery
devices, contract manufacturing and kitting services. In 2003 approximately 26 percent of the Company’s sales were outside the U.S.
The Company’s products are used in a wide variety of applications by numerous customers, the largest of which accounted for approximately 14 percent
of net sales in 2003. The Company encounters competition in all of its markets and competes primarily on the basis of product quality, price, engineering,
customer service and delivery time. 
The Company’s strategy is to provide a broad selection of products and a high level of service in the areas in which it competes. The Company focuses its
research and development efforts to improve current products and develop highly-engineered products that meet customer needs and have the potential
for broad market applications and significant sales. Proposed new products may be subject to regulatory clearance or approval prior to commercialization
and the time period for introducing a new product to the marketplace can be unpredictable. The Company is also focused on controlling costs. 
The Company does this by investing in modern manufacturing technologies and controlling purchasing processes. Over the past three years, the Company
has continued to be faced with increasing costs associated with all lines of insurance, including group health benefits. The Company has been successful
in consistently generating cash from operations and uses that cash to reduce indebtedness, to fund capital expenditures, to repurchase stock and, starting
in 2003, to pay dividends. During 2003, the Company reduced debt by approximately $6.0 million.
The Company’s strategic objective is to further enhance its position in its served markets by: 
• Focusing on customer needs 
• Expanding existing product lines and developing new products
• Maintaining a culture of controlling cost 
• Preserving and fostering a collaborative, entrepreneurial management structure 
For the year ended December 31, 2003, the Company reported revenues of $62.8 million, income from continuing operations of $4.9 million and net
income of $5.1 million, up 5 percent, 20 percent and 95 percent, respectively, from 2002.
RESULTS OF OPERATIONS
The Company’s income from continuing operations was $4.9 million, or $2.86 per basic and $2.66 per diluted share, in 2003, compared to income from
continuing operations of $4.1 million, or $2.37 per basic and $2.18 per diluted share, in 2002 and $4.3 million, or $2.10 per basic and $1.88 per diluted
share, in 2001. Net income, including discontinued operations and cumulative effect of accounting change, totaled $5.1 million, or $2.96 per basic and
$2.75 per diluted share, in 2003, compared with $2.6 million, or $1.51 per basic and $1.39 per diluted share, in 2002 and $9.8 million, or $4.80 per
basic and $4.30 per diluted share, in 2001. The Company adopted Statement of Financial Accounting Standards (“SFAS”) No. 142 effective January 1, 2002.