text: **R E V E N U E S**
  The Company recognizes revenue when its products are shipped to its customers and distributors, provided an arrangement exists, the fee is fixed and 
  determinable and collectibility is reasonably assured. Net sales represent gross sales invoiced to customers, less certain related charges, including 
  discounts, returns and other allowances. Returns, discounts and other allowances have been insignificant historically. 
  
  **S H I P P I N G A N D H A N D L I N G P O L I C Y**
  Shipping and handling fees charged to customers are reported as revenue and all shipping and handling costs incurred related to products sold are 
  reported as cost of goods sold. 
  
  **R E S E A R C H A N D D E V E L O P M E N T C O S T S**
  Research and development costs relating to the development of new products and improvements of existing products are expensed as incurred. 
  
  **S T O C K - B A S E D C O M P E N S A T I O N**
  At December 31, 2003, the Company had three stock-based employee compensation plans, which are described more fully in Note 8. The Company 
  accounts for those plans under the recognition and measurement principles of Accounting Principles Board (“APB”) Opinion No. 25, “Accounting for 
  Stock Issued to Employees,” and related interpretations. No stock-based employee compensation cost is reflected in net income, as all options granted 
  under those plans had an exercise price equal to the market value of the underlying common stock on the date of grant. The following table illustrates the 
  effect on net income and income per share if the Company had applied the fair value recognition provisions of SFAS No. 123, “Accounting for Stock-Based 
  Compensation,” to stock-based employee compensation: 