CONSOLIDATED STATEMENTS OF INCOME
    

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) YEARS ENDED OCTOBER 31,
2000
1999
1998
Net sales
$
197,317 
$
165,328
$
147,192 
Cost of sales
68,100 
59,009
55,764 
Gross profit
129,217 
106,319
91,428 
Selling, general and administrative expense
75,424 
61,734
56,226 
Research and development expense
2,711 
1,977
1,944 
Amortization of intangibles
4,213 
3,797
3,558 
Operating income
46,869 
38,811
29,700 
Settlement of disputes, net
653 
-
1,250 
Other income, net
655 
231
890 
Interest expense
4,744 
6,330
6,253 
Income from continuing operations before income taxes
42,127 
32,712
23,087 
Provision for (benefit of ) income taxes
12,727 
10,711
(34,723)
Income from continuing operations
29,400 
22,001
57,810 
Discontinued operations, net of taxes:
   Income
- 
129
4,336 
   Gain (loss) from disposal
- 
2,970
(22,300)
 
- 
3,099
(17,964)
       
Income before cumulative effect of change in accounting principle
29,400 
25,100
39,846 
Cumulative effect of change in accounting principle
(432)
-
- 
Net income
$
28,968 
$
25,100
$
39,846 
       
Basic earnings per share:      
   Continuing operations
$
2.07 
$
1.56
$
3.90 
   Discontinued operations
- 
0.22
(1.21)
   Cumulative effect of change in accounting principle
(0.03)
-
- 
   Earnings per share
$
2.04 
$
1.78
$
2.69 
       
Diluted earnings per share:      
   Continuing operations
$
2.03 
$
1.54
$
3.79 
   Discontinued operations
- 
0.21
(1.18)
   Cumulative effect of change in accounting principle
(0.03)
-
- 
   Earnings per share
$
2.00 
$
1.75
$
2.61 
   Number of shares used to compute earnings per share:      
       Basic
14,188 
14,098
14,828 
       Diluted
14,510 
14,312
15,269 

See accompanying notes to consolidated financial statements.