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Net cash used in investing activities was $5.3 million in our 2003 fiscal year, substantially all ofwhich related to capital expenditure.Our capital expenditures relate primarily to purchases of equipment such as tooling, productionlines, test equipment and computers and also includes the cost of expanding our facilities in Malaysiawhich in our 2005 fiscal year amounted to $1.9 million. In July 2005 we commenced a new project toreplace our Enterprise and Resource Planning (‘‘ERP’’) system. This will result in additional capitalexpenditure of approximately $6.0 million in our 2005 and 2006 fiscal years, of which $3.8 million isincluded in capital expenditure in our 2005 fiscal year. With this exception, we do not anticipate anysignificant changes in the nature or level of our capital expenditures and we would expect these togenerally increase in line with our revenues. With the exception of the new ERP system, we currentlyhave no material commitments for capital expenditures.Net cash used in our financing activities was $9.0 million in our 2005 fiscal year and $12.1 millionin our 2003 fiscal year. Net cash provided by our financing activities was $49.0 million in our 2004 fiscalyear.Net cash used in financing activities for our 2005 fiscal year includes repayments totaling$5.1 million of short-term borrowings assumed as part of our acquisition of nStor, the payment of a$2.0 million acquisition note payable related to our acquisition of ZT Automation and quarterlyrepayments totaling $4.0 million under our HSBC term loan. These were partially offset by proceeds of$2.2 million from the exercise of employee share options.Net cash provided by financing activities in our 2004 fiscal year includes the net proceeds of ourinitial public offering on June 29, 2004 in which we issued 4,000,000 common shares at $14.00 pershare. The total proceeds received by us were $56.0 million and net proceeds received by us afterdeducting underwriting discounts and other offering expenses was $48.1 million. In addition,$5.0 million related to the issuance of ordinary shares to employees and directors in respect of shareoptions and other share awards. These were partially offset by the four quarterly repayments of$1.0 million under our HSBC term loan.Net cash used in financing activities for our 2003 fiscal year principally related to payments of$18.9 million to repurchase ordinary shares associated with the private equity transaction withHgCapital and repayments of short-term and long-term borrowings under our HSBC credit facilitiestotaling $12.5 million using surplus cash from operating cash inflows. This was partially offset by newborrowings of $19.0 million under our HSBC term loan.LiquidityAs of November 30, 2005, our principal sources of liquidity consisted of cash and cash equivalentsof $41.2 million and our multi-currency credit facilities with HSBC. The HSBC credit facilities includethe remaining $11.0 million of a $19.0 million term loan. This loan is repayable in equal quarterlyinstallments over approximately five years. The facilities also include a revolving line of credit whichexpires in September 2008, and a short-term overdraft facility. The revolving line of credit is for anaggregate principal amount of up to $10.0 million and bears interest at a rate of 0.75% above LIBOR.The overdraft facility is for an aggregate principal amount of up to approximately $15.0 million andbears interest at a rate equal to 0.75% above LIBOR. As of November 30, 2005, we had no debtoutstanding under our revolving line of credit or our overdraft facility. The HSBC credit facilitiesprovide for a security interest on substantially all of our assets.Our future financing requirements will depend on many factors, but are particularly affected by therate at which our revenues and associated working capital requirements grow, changes in the paymentterms with our major customers and suppliers of disk drives, and quarterly fluctuations in our revenues.Additionally, our cash flow could be significantly affected by any acquisitions we have made or might57