Third Quarter												Vs Prior Quarter
(in millions, except share data)		2009				2008				Change				3Q'09				2Q'09				Change
Revenue		$	87.2			$	112.1				-22	%		$	87.2			$	101.0				-14	%
Operating Income			10.4				10.5				-1	%			10.4				13.5				-23	%
Net Income			5.4				2.5				116	%			5.4				9.0				-40	%
EPS		$	0.15			$	0.07				114	%		$	0.15			$	0.25				-40	%
Revenue by Product:
Instruments		$	41.3			$	48.7				-15	%		$	41.3			$	46.9				-12	%
Implants			24.2				31.5				-23	%			24.2				29.9				-19	%
Cases			16.4				23.0				-29	%			16.4				18.9				-13	%
Other			5.3				8.9				-40	%			5.3				5.3				0	%
Total Revenue		$	87.2			$	112.1				-22	%		$	87.2			$	101.0				-14	%

		Three Months Ended								Nine Month Ended
		October 3, 2009				October 4, 2008				October 3, 2009				October 4, 2008
		(In Thousands, Except Per Share Data)
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Revenue		$	87,164			$	112,095			$	289,540			$	323,744
Cost of Revenue			65,917				86,445				216,964				246,733
Gross Profit			21,247				25,650				72,576				77,011
Selling, general and administrative expenses			10,813				15,165				37,395				44,474
Operating Income			10,434				10,485				35,181				32,537
Other (income)/expense:
Interest expense			1,666				2,683				5,050				8,300
Derivatives valuation gain			(178	)			(972	)			(746	)			(1,041	)
Other			687				3,079				379				2,581
Income before income taxes			8,259				5,695				30,498				22,697
Income tax expense			2,851				3,162				9,268				9,995
Net income		$	5,408			$	2,533			$	21,230			$	12,702
Net income per share:
Basic		$	0.15			$	0.07			$	0.60			$	0.36
Diluted		$	0.15			$	0.07			$	0.59			$	0.36
Weighted average common shares and equivalent shares outstanding:
Basic			35,326				35,174				35,289				35,161
Diluted			35,620				35,402				35,486				35,354

 

		October 3, 2009				January 3, 2009
		(In Thousands)
		(unaudited)
Assets:
Current Assets:
Cash and cash equivalents		$	16,432			$	10,191
Accounts receivable, net			43,205				52,845
Inventories			65,697				61,111
Refundable income taxes			2,884				6,610
Deferred income taxes			5,493				3,993
Other current assets			2,710				3,154
Total current assets			136,421				137,904
Property and equipment, net			116,933				115,045
Goodwill			153,721				153,521
Intangible assets, net of accumulated amortization			43,387				45,039
Other assets			1,260				1,728
Total Assets		$	451,722			$	453,237
Liabilities and Shareholders' Equity:
Current Liabilities:
Accounts payable		$	20,074			$	26,929
Accrued wages and benefits			7,764				12,784
Other accrued expenses			4,808				5,186
Income tax payable			574				2,637
Deferred income taxes			115				-
Revolving line of credit			5,479				2,495
Current portion of capital lease obligations			558				1,034
Current portion of long-term debt			19,525				16,900
Total current liabilities			58,897				67,965
Deferred income taxes			23,848				18,131
Derivative valuation liability			3,458				3,771
Capital lease obligations, less current portion			2,983				3,356
Long-term debt, less current portion			81,678				107,600
Total Liabilities			170,864				200,823
Commitments and contingencies (Note 14)
Shareholders' Equity:
Common Stock, $.0001 par value; 75,000 shares authorized; shares issued October 3, 2009--35,806; January 3, 2009--35,801			4				4
Additional paid-in capital			278,031				275,890
Accumulated deficit			(277	)			(21,507	)
Accumulated other comprehensive income (loss)			3,100				(1,973	)
Total Shareholders' Equity			280,858				252,414
Total Liabilities and Shareholders' Equity		$	451,722			$	453,237

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