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systems are capable of testing a full range of disk drive protocols and form factors that are currentlyavailable on the market. Protocols include high-speed Fibre Channel, low-cost SATA, ATA andenterprise-class SCSI protocol disk drives.Servo Track Writers. We design and manufacture both complete servo track writers and their keysubassemblies, using a modular approach. Servo track writers are required in the production of all diskdrives to write digitally generated magnetic reference patterns on the surface of the disks at a very highspeed. These reference patterns are used to precisely define the position of data on the disk. Ourproducts enable the two most significant methods of servo track writing: media writing and self servowriting. Media writing is a process in which a stack of disks is written with servo patterns and thenindividually assembled into a number of disk drives. In self servo writing, the pattern is written on thedisk within the drive without using special external hardware.Disk Automation Solutions. Our disk automation solutions cover all major aspects of magneticdisk media processing requirements, including product handling, cassette transport with intelligentrouting, product tracking disk stacking and process management software. Disk automation solutionsrequire precision technology and sophisticated techniques to provide the efficiencies that only anintegrated approach to process and system design can deliver. This is why we work closely withcustomers to ensure that our solutions are designed to integrate tightly with specific productionenvironments, yet remain modular and flexible enough to grow as needs change.Disk Cleaning Systems. Our range of precision disk cleaning systems represents the latest incleaning technology and performance for the disk drive industry. The precision cleaning systemarchitecture allows for the customization to a range of magnetic media process requirements by theintegration of a range of advanced technology modules. These include ultrasonics and megasonics,cassetteless handling, cascade scrubber and Hot IPA Vapor Assist Dryer modules which enable some ofthe most flexible systems configurations available.Our modular design approach enables us to provide a broad range of process equipment to a widevariety of segments of the disk drive markets, including the enterprise storage system, laptop and desktop personal computer, and the consumer electronics segments. Our product options provide solutionssupporting a range of disk drive physical shapes; high-speed disk drive interface connections; andhigh-density disk drive production process requirements. These options can be integrated with fullyautomated control and handling systems.These products provide disk drive manufacturers cost efficiencies, time-to-market advantages andenable them to prioritize their internal resources in order to achieve their strategic objectives.CustomersOur business is based on long-term strategic relationships with our customers. We have beensuccessful in cultivating these relationships and have historically experienced a stable customer base.Our major customers are the OEMs who supply storage systems and networking products to theeventual end-user, and large corporations who supply components to those OEMs. Our strategy is toprovide our products to leading OEMs and other companies that we anticipate will be future marketleaders.We have over 130 customers, of which the top three customers are Network Appliance, SeagateTechnology and Western Digital. In our 2005 fiscal year sales to these customers accounted for 48%,30% and 7% of our revenues, respectively. During our fiscal year ended 2004, our top three customersaccounted for 82% of our revenues. The loss of any of our top three customers could significantly harmour financial condition. We believe that since our separation from IBM in 1994, we have not lost a keycustomer to a competitor. Since 2004, we have established over fifteen new customer accounts.32