The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation.

Fiscal Year

The Company's fiscal year is the 52 or 53 weeks ending on the Sunday falling on or between March 26 and April 1 to allow the financial year to better reflect the Company's natural weekly accounting and business cycle. The fiscal year ended April 1, 2001 contained 53 weeks and the fiscal years ended March 26, 2000 and March 28,1999 contained 52 weeks. The effect of the extra week in fiscal 2001 does not materially affect the Consolidated Financial Statements of the Company.

Cash and Cash Equivalents

Cash and cash equivalents include cash and highly liquid investments with an original maturity of 90 days or less.

Product Inventory

Product inventory is stated at the lower of cost or market. Cost is determined using the first-in, first-out (FIFO) method and includes certain charges directly and indirectly incurred in bringing product inventories to the point of sale.

Property and Equipment

Property and equipment is stated at cost. Depreciation is provided using the straight-line method over the estimated useful lives of the assets as follows:

	USEFUL LIVES
Information technology equipment and software	3-5 years
Furniture, equipment and tooling	5-10 years
Building and improvements	10-30 years

Depreciation and amortization of property and equipment was $3,320,400, $2,419,400 and $1,806,300 for fiscal years 2001, 2000 and 1999, respectively (see Note 3).

Goodwill

Goodwill is being amortized using the straight-line method over 15 years. Amortization expense was $332,400, $327,000 and $331,800 for fiscal years 2001, 2000 and 1999, respectively. Accumulated amortization as of April 1, 2001 and March 26, 2000 was approximately $1,852,300 and $1,519,900, respectively.

The Company continually monitors events and changes in circumstances which could indicate that carrying amounts of intangible assets may not be recoverable. When events or changes in circumstances are present that indicate the carrying amount of intangible assets may not be recoverable, the Company assesses the recoverability of intangible assets by determining whether the carrying value of such intangible assets will be recovered through the future cash flows expected from the use of the asset and its eventual disposition.

Revenue Recognition

The Company records sales when product is shipped to the customers or when services are provided.

Supplemental Cash Flow Information

Cash paid for interest during fiscal years 2001, 2000 and 1999 totaled $1,035,200, $604,200 and $584,100, respectively. Cash paid for income taxes for fiscal years 2001, 2000 and 1999 totaled $3,450,700, $3,566,900 and $1,124,600, respectively. The Company had non-cash transactions during fiscal years 2001, 2000 and 1999 as follows:

	2001	2000	1999
Exercise of options in exchange for treasury stock	$82,000	$603,000	$264,100
Tax benefit from exercise of stock options	50,700	7,600	3,000

Fair Value of Financial Instruments

The carrying amounts of cash and cash equivalents, trade accounts receivable, product inventory, prepaid expenses and other current assets, trade accounts payable and accrued expenses and other current liabilities, borrowings under revolving credit facility and the note payable to a bank approximate their fair value as of April 1, 2001 and March 26, 2000.

Fair value of long-term debt, excluding the note payable to a bank, as of April 1, 2001 and March 26, 2000 is as follows:

	2001		2000
Note payable to Baltimore County, Maryland	$	144,300	$	148,300
Note payable to the Maryland Economic
Development Corporation		1,169,600		1,192,200
	$	1,313,900	$	1,340,500

Concentration of Risk

The Company is dependent on third-party equipment manufacturers, distributors and dealers for all of its supply of wireless communications equipment. For fiscal years 2001, 2000 and 1999 sales of products purchased from the Company's top ten vendors accounted for 31%, 38% and 46% of total revenues, respectively, with sales of products purchased from the Company's largest vendor generating approximately 6%, 8% and 14% of total revenues, respectively. The Company is dependent on the ability of its vendors to provide products on a timely basis and on favorable pricing terms. Although the Company believes that alternative sources of supply are available for many of the product types it carries, the loss of certain principal suppliers could have a material adverse effect on the Company.

The Company's future results could also be negatively impacted by the potential loss of certain customers. For fiscal years 2001, 2000 and 1999, sales of products to the Company's top ten customers accounted for 25%, 14% and 18% of total revenues, respectively, with sales to the Company's largest customer generating approximately 6%, 3% and 6% of total revenues, respectively.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could significantly differ from those estimates.

Recent Accounting Pronouncements

In June 1998, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standard No. 133 "Accounting for Derivative Instruments and Hedging Activities" (FAS No. 133). FAS No. 133 establishes accounting and reporting standards for derivative instruments and derivative instruments embedded in other contracts, (collectively referred to as derivatives) and for hedging activities. It requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. If certain conditions are met, a derivative may be specifically designated as (a) a hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment, (b) a hedge of the exposure to variability in cash flows attributable to a particular risk, or (c) a hedge of the foreign currency exposure of a net investment on a foreign operation, an unrecognized firm commitment, an available for sale security and a forecasted transaction. FAS No. 137, "Accounting for Derivative Instruments and Hedging Activities—Deferral of the Effective Date of FASB Statement No. 133" was issued in June 1999 and deferred the effective date of FAS No. 133 to fiscal years beginning after June 15, 2000. FAS No. 138, "Accounting for Certain Derivative Instruments and Certain Hedging Activities", was issued on June 2000 and also amends FAS No. 133. FAS No. 138 addresses a limited number of issues causing implementation difficulties. Consequently, the Company will be required to implement FAS No. 133 for all fiscal quarters for the fiscal year beginning April 2, 2001. The Company has no derivative instruments and therefore expects the adoption of this pronouncement will not have a material effect on the Company's financial statements.

Reclassifications

Certain rectifications have been made to the prior year consolidated financial statements to conform with the current year presentation.